Vehicle technology is rapidly evolving and independent garages that end up isolated may struggle to survive, fears Neil Gibbs, Head of the Eurorepar Car Service (ERCS) Network.
"The long-standing divide between OEMs and independent garages must therefore shift towards greater collaboration if the industry is to remain competitive," he told CAT.
"The aftermarket is fragmented and has been for quite some time. OEMs and independent garages often operate either in fierce competition or in some cases, complete isolation. While new cars typically remain the domain of franchised workshops, once warranties expire these vehicles quickly find their way into independent workshops. This has been the status quo for decades. But what if the relationship between main dealers and independents was more synergistic and supportive?"
Today's automotive aftermarket faces unprecedented complexity as electric vehicles, connected systems, and advanced driver assistance technologies transform servicing into a highly specialised field. "Modern vehicles increasingly rely on manufacturer-controlled features and over-the-air updates, often locking independent workshops out of certain repairs that require proprietary tools or subscriptions as a result".
What's more, said Gibbs, manufacturers further divert business from independents by offering extended warranties and bundled service packages directly to consumers. "For independent garages to survive this technological shift, the long-standing divide between OEMs and independents must evolve from competition and isolation toward genuine collaboration; a transformation essential for the entire industry's competitiveness." The road ahead isn't going to be easy as EVs come to the fore, he said.
"The shift toward electrification and software-driven vehicles creates a widening training gap between OEMs and independents, particularly around safety-critical systems. Independent workshops require significant investment in specialist tools and training to remain competitive and often these are available through OEMs themselves. The Eurorepar Car Service (ERCS) Network for example, addresses this through comprehensive training and workshop assessments.”
Collaboration also offers OEMs a strategic opportunity to expand their aftermarket influence, he said. "By working directly with independent garages, manufacturers can streamline parts access, build loyalty and drive parts sales, while ensuring their own manufactured vehicles receive the very best aftermarket care post warranty. Distrigo, – Stellantis's parts brand – demonstrates this model through ERCS by supplying members with a complete range including genuine Stellantis parts". This single-source supply chain benefits both parties, insisted Gibbs: OEMs ensure genuine parts are fitted to their vehicles, while independents gain the competitive edge of efficient, direct access to high quality parts.
“Collaboration on data access is essential to preventing a two-tier system that fragments the market and ultimately limits options for consumers. However, data sharing, such as diagnostics information, enables OEMs to maintain vehicle performance and protect brand reputation while keeping independents competitive and preserving consumer choice."
A unified ecosystem benefits all stakeholders, Gibbs said. "As vehicle complexity increases, independents need support, tools, and training, while OEMs gain brand preservation, maintained vehicle performance, and expanded consumer choice. Numerous successful partnerships already demonstrate how independents and OEMs can work together to mutual advantage. Rather than viewing each other as competitors, both sides should recognise their interdependence; collaboration creates a more technically capable, competitive industry that serves manufacturers, workshops, and consumers alike."
Go to comments