Changing Oil and Changing Times – The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops near you then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is the auto repair and service market has been shrinking in the last ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty so that you can the independent will get little chance to work on that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep on top of the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers constantly competed for skilled labor and already have become even more aggressive. With fewer individuals entering automobile repair profession and opting instead for careers like health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to utilize and retain these competent employees. As an automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician actually make $100,000 twelve months with benefits while wages shop owner would to be able to gross within a $1,000,000 1 yr to make that and have absolutely to reimburse their own benefits and social basic safety.
Because of these economic realities many independent owners are currently closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, in the event the diagnosis is comprised and a part of needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding increase the repair period and increasing customer care. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and there’s a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical data is proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
