Are you having trouble getting repair work done on your vehicle? You are not alone.
Car owners are reporting on social media that, too often, certain repair needs are unmet by garages because the repairs are profit killers for the garage and/or they lack technicians and mechanics to do the work, according to a recent Wrenching with Kenny YouTube channel video titled "Flat Rate Has Killed The Automotive Industry."
FLAT RATE IS A FLAT LINE FOR THE ECONOMIC AND PHYSICAL HEALTH OF MECHANICS
"I belong to several different mechanics pages and several different dealership type pages, and it is amazing how many people every day on videos saying, 'I've had it. I'm done. I'm never coming back to this anymore. I'm done with mechanic life.'"
Finding a good qualified, good quality technician can be difficult, especially nowadays…Mechanics need to be paid more." ―Wrenching with Kenny
In a flat-rate system, mechanics are paid a predetermined amount based on the assigned number of hours for each job. For example, if a repair "books" for 2.5 hours, the mechanic earns pay for 2.5 hours of work—regardless of whether the job takes one hour or four.
On the surface, it might sound like a merit-based model that rewards productivity. But in practice, flat rate pay often leaves technicians overworked, underpaid, and constantly stressed. It turns a skilled profession into a gamble, where your paycheck depends not just on your ability, but on factors you can't control: vehicle condition, part availability, customer approval delays, and how many cars come through the door on any given day.
Related article: "Why I Left Toyota" ―Former Toyota Mechanic Shares What It Is Like Drinking the Dealership Kool-Aid
"Wrenching with Kenny Host" Shares His Experience
Here’s the video posted by the host about his experiences with flat-rate pay. However, the key points are summarized below the video for your convenience in case you do not have the time to watch the entire video.
Flat Rate Has Killed The Automotive Industry
"Wrenching with Kenny" Video Summary
"Now, almost every dealership I know of is flat-rate, and there's benefits and there's downsides to flat-rate. As far as I'm concerned, flat-rate breeds crappy technicians. Why do I say that? I was flat-rate. I was flat-rate for over 21 years.
The reason being is because if a job pays five hours and I can get it done in three, I'm still getting paid five. Okay? You follow?
So, as a mechanic, as a technician, we're crafty people. We have a tendency to look at something and say, I can shortcut this in a certain way to get the job done. The "Book" tells you that you got to do this, this, this, and this to do the job.
Well, you know what? I don't have to do this, this, this, and this. I can kind of go this way a little bit, and I can get the end result accomplished.
Some people, and I've seen this many times, some people will take shortcuts that are so drastic and so extreme, it hurts something else in the process." ―Wrenching with Kenny
The host tells us that while flat-rate technicians have it bad, believe it or not, flat-rate mechanics with the highest level of training are actually paid less!
Here's how that works: Flat-rate technicians, as we mentioned earlier, are paid based on the assigned number of hours for each job.
However, the higher-level mechanics are assigned to more complex jobs appropriate to their skill level.
The problem with this is that complex repairs often exceed the allotted book time for the repair. For example, diagnostics (which are not usually included in the mechanic's pay), a complicated disassembly and reassembly where any number of things can slow down the repair, and numerous little details involved in a repair such as test driving the vehicle, putting it on a lift, draining the fluid, getting parts, etc. take up a lot of time that the trained mechanic winds up not being compensated for.
By the end of the day, the flat-rate beginning tech can put in a 10-12 hour day and be paid the full price they earned. The flat-rate experienced mechanic, however, has put in more hours than the book rate pays for and winds up making less by the end of the day.
Warranty Work is the Worst for a Mechanic
Additionally, the complex work assigned to experienced mechanics often involves warranty work, resulting in significantly lower pay for the mechanic.
Essentially, experienced mechanics work longer hours for less pay because the system is rigged to save money.
I have two son-in-laws. One was with Chrysler and one was with Ford. Same exact thing happened to them. Once they reach the pinnacle, the highest point they could be, all they got was warranty work. And warranty work doesn't pay squat.
So it hurts the industry when you're paying a flat rate. The flat rate is the absolute worst thing that has ever happened to the automotive industry. And basically, if you think about it, all it does is boil down to greed on the part of the owner of the company. You know, whoever is setting up these pay scales." ―Wrenching with Kenny
Lack of Respect for Mechanics
Another factor is the lack of respect for mechanics by both their managers and their customers.
If anything goes wrong during the repair, the experienced mechanic is held responsible, regardless of the cause or circumstances. In short, experienced mechanics are often undervalued by their managers, who are more focused on the clock and the progress of every repair.
Do a thousand things right. Nobody says a word. Crickets. There's crickets. But do that one thing wrong and you are the worst person on earth." ―Wrenching with Kenny
Respect from customers is also a problem: When a customer sees an itemized work order or bill and notices that labor is $150 per hour, the automatic assumption is that that is what the mechanic earns.
The truth is that the mechanic only receives a small portion of that labor charge, with the rest going toward the business's overhead: salaries, insurance, rent, etc.
You know, rent for a six-bay shop, you're talking upwards of $8,000 to $10,000 a month. So, you know, it's like people, for some reason, hear $150 an hour and they think you're just taking that money and just shoving it in your pocket. You're not. You're not doing that. Mechanics are not doing that." ―Wrenching with Kenny
Where Are The Mechanics Going?
The host tells us that experienced mechanics are going where the grass is slightly greener for them:
- Fleet jobs
- Diesel mechanic jobs
- Mobile mechanic services/side jobs
- Independent garages
- Profession switching as Electricians and Plumbers
And the shortage of qualified, experienced mechanics will only grow worse, unless things change in the dealerships,
What Can Be Done to Keep Mechanics in the Garage
The automotive repair industry is facing a quiet crisis. Across the country, skilled mechanics are walking away from their profession—not because they've lost passion for the trade, but because the system they work under is breaking them down primarily due to an outdated, unfair, and unsustainable flat-rate pay system.
As a result, many experienced mechanics are leaving the industry, and fewer young people are entering the trade. The industry's talent pipeline is drying up, not due to a lack of interest in cars, but due to the instability of the work environment.
Can this problem be fixed?
It could, and some states are beginning to create laws against some of the worst aspects of the flat-rate system. But more needs to be done.
For example:
- Shifting toward hourly or hybrid pay structures, combining a base hourly wage with bonuses for efficiency or performance.
- Dealerships investing in their mechanics by offering paid training, health benefits, tool stipends, and better work-life balance.
- Industry-wide reforms through union efforts, legislation, or a cultural shift in how dealership service department managers view and value their technicians and mechanics.
One Important Point Not Mentioned: The Human Cost
Mechanics aren't just quitting over money—they're quitting because of what flat-rate work does to their bodies.
To "make hours," technicians and mechanics often work through lunch, skip breaks, and hustle to squeeze in as many jobs as possible. This results in repetitive stress injuries, exhaustion, and mental burnout.
Many mechanics are expected to provide their own tools—sometimes investing over $50,000 out-of-pocket—while receiving no benefits, no sick leave, and no guarantee of a livable income if the shop slows down.
A comment from a follow-up video from the Wrenching with Kenny YouTube channel titled "Multiple Reasons Made Me Leave Dealer Life" summed up the human cost by one mechanic with this profound statement:
I am a recently retired master mechanic of 40 years and one thing that nobody mentions is how much of a toll it takes on our bodies. My body is done. My brain is 17 but my body is 80. And I'm only 64 ―@johnrpizzaguy
For example, my brother worked as a fleet mechanic for many years and had to have shoulder surgery from all of those years wrenching AFTER he was able to retire―just one of several common ailments shared by working mechanics.
And finally…
Flat-rate pay may have once been a solution for driving productivity in the shop, but it's become a liability in today's world of complex vehicles and rising expectations. Mechanics aren't quitting because they don't love the work—they're quitting because the system doesn't love them back.
If the industry wants to survive and thrive, it's time to move past flat-rate and toward a model that values the mechanic as much as the machine.
If You Have Worked Flat Rate Let Us Know How You Felt About It: Share your story and thoughts with us in the comments section below.
For additional "It's a Mechanic's Life" type of articles, here are two for your consideration:
- Car Repair Horrors Mechanics Face Every Day
- Six Things You Should Never Say or Do to Your Car Mechanic
COMING UP NEXT: I Intentionally Ran Out of Gas in My 2025 RAV4 PHEV
Timothy Boyer is an automotive reporter based in Cincinnati who currently researches and works on restoring older vehicles with engine modifications for improved performance. He also reports on modern cars (including EVs) with a focus on DIY mechanics, buying and using tools, and other related topical automotive repair news. Follow Tim on Twitter at @TimBoyerWrites as well as on Facebook and his automotive blog "Zen and the Art of DIY Car Repair" for useful daily news and topics related to new and used cars and trucks.
Image Source: Deposit Photos
Comments
The only people that…
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In reply to I worked as a tech in dealer… by Dave G (not verified)
The only people that remember all the overtime and extra days you put in are your family.
I have been a mechanic for…
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I have been a mechanic for over 40 years 30 flat rate i was forced into retirement after being told I was too old and too slow I'm 68 now I agree with every thing said in this article I too have a mind of 30 and the body of 80 it is nice to hear techs speaking up the trade is no good
I cannot think of any reason…
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In reply to I have been a mechanic for… by Mitch molnar (not verified)
I cannot think of any reason why anyone would encourage a young person to choose this career today. Except maybe out of their passion interest. Can't the industry see the handwriting on the wall?!
Thank you for sharing.
I'm now 66,and still working…
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I'm now 66,and still working
I've been on flat rate for most of my life. I'm both Michigan and ASE master certified. You can't ever really set up a monthly budget, because you never know how much you'll end up making. Some weeks thousands, some weeks hundreds. Hopefully I'll be retiring later this year.
Funny how you hear about…
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In reply to I'm now 66,and still working… by Frank Hodges (not verified)
Funny how you hear about Life-Balance in white collar workplaces, but I have never heard it in the context of a mechanic.
Go figure.
Good luck with retirement!
I worked flat rate for a few…
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I worked flat rate for a few years and experienced all of the evils stated in the article. What I was able to do was move to RV service. Warranty work still paid nothing, (and cause a lot of arguments with the service manger). However, non warranty work paid well and I was lucky enough to have the skillset that allowed me to repair everything from brakes to turbochargers as well as A/C, (both dash and roof air) Hydraulics, (leveling systems) 120/240 VAC Electrical problems, L/P Gas systems (furnace, cooking -, etc.) so I did well for a number of years. I would recommend anyone with these skills or the ability to learn them to check into this field.
Sounds like a good…
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In reply to I worked flat rate for a few… by Gene Bramblett (not verified)
Sounds like a good recommendation.
Thank you for telling your success story.
kenny i have followed you…
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kenny i have followed you for years and always respected your views and once again!!!! you did a GREAT JOB revealing the reality of the situation!!!! i did 50 years in the business and am retired.perfect explanation of how the good guys get punished in a flat rate system!! needed to mention 2 sets of flat rate times. customer pay flat rate and manufacturer flat rate which is generally 30%! less!! same car same repair one 100 k miles one with 99k under powertrain warranty which pays 25-30% less labor!! was going to write a book after i retired to expose the theivery i saw in my career but out of FEAR for my loved one declined a publishers offer!!! was always ironical to me that the union business agents got brand new cars right at contract time!!! it is a horrible industry full of liars and thieves!! you have hit the nail on the head!! greedy manufacturers and owners have created this situation and they deserve to struggle now!! you have once again told it like it is !!! unlike scotty who has NO clue!! keep up the good work!!! i very much hope this gets published!!?? thank you Tom
I can totally relate to this…
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I can totally relate to this article. I've been wrenching flat rate for 30 years. I've been there done that. Many skipped lunches, coming in early working late, constantly stressing about turning hours. Us master techs take the brunt of the undesirable jobs. I've always like working on cars and it came naturally, but I hate the pay structure. B 0Kecause of flat rate and the way work is dispatched, the more you know the less you basically are paid. If I'd be younger I'd run. I tell the younger kids to get out. Once they become factory trained master techs, you'll be stuck doing all the warranty crap, and will take a pay cut.
Yes, this! Things really do…
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In reply to I can totally relate to this… by Kevin Hoover (not verified)
Yes, this!
Things really do need to change before encouraging a young person to choose this career.
Thanks for the input.
Yep, I recently retired…
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Yep, I recently retired after turning wrenches for 35 yrs and have the same issues. People don't realize the physical stress and chemicals we're exposed to. Then dealers wonder why no one wants to be a tech anymore. I can't recommend the career to anyone.
I worked flat rate for 15…
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I worked flat rate for 15 years before hiring into a major auto company at an hourly rate. Had i sayayed flat rate I'd be in a wheel chair now. Many disc issues in my back, and neck and of course hands. I also have had a finger removed because of skin cancer ( hydro carbon exposure). Don't forget we have the same retirement age as a desk worker.
I wonder why OSHA has not…
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In reply to I worked flat rate for 15… by Mark (not verified)
I wonder why OSHA has not addressed the health issues of mechanics like you discussed? Seems like they've missed a problem that has been long coming.
Thank you for the input. I hope your back has good days---there's nothing worse than forever trying to find a position of comfort without pain meds.
GM pays .3 for diagnosis. …
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GM pays .3 for diagnosis. Replacing a part is the only way to get paid. Lots of shotgunning parts to get paid. Retired GM and Ford master tech.
Robber Barons alive and well…
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In reply to GM pays .3 for diagnosis. … by James Eddy (not verified)
Robber Barons alive and well, even today.
Congrats on retiring!
I am a retired mechanic,…
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I am a retired mechanic, after 50+ years working on cars. I have worked flat rate, I have worked as hourly paid also. My preference was to be paid an hourly wage that actually reflects my skills, ability, and knowledge. The hourly pay at least means that each pay period you receive a set amount in your check, depending on hours worked. This makes for a little more simplicity and less stress each month as you pay your bills.
I have trained quite a few mechanics over the years and I always share with them that if you get a shot at a dealership mechanic position, take it if you can. The level of specific brand instruction, and training you receive is incredible, and usually all it requires of you is some extra time. The pay it seems in this industry is based on how many certifications you can put on your bosses wall, the more certifications you hold will determine how high your salary goes. As a flat rate mechanic you reach a high point in pay that is usually 40% of labor charged. Increases after that point usually come in the form of a percentage of the parts side of each invoice. I have seen abuses of this on both sides, from the mechanic, and from the shop.
The truly bad side of all of this is the cost to each mechanic for the tools they need to do their respective jobs. That cost is theirs alone to shoulder. I inventoried my complete tool collection when I bought the shop I had been working at, to my surprise I had amassed almost $250,000 in tools during my career. The IRS does allow deductions for the tools each person needs to accomplish the work they perform, but it’s a far cry from monies actually spent acquiring these tools. And it becomes even more expensive when, as a mechanic, you need diagnostic equipment. Just one of my scan tools cost just over $12,000, and that scan tool only worked on ONE manufacturer. The cheaper scan tools can be had for a few thousand dollars, and are sold as being able to function properly on ALL makes and models yet very, very few actually live up to their hype of allowing complete bi-lateral communication with the vehicle. This is another expense that most mechanics have not had to shoulder. Most shops, and all dealers have decent scan tools for the vehicles they work on but to truly start to make money in this field a mechanic will find that purchasing their own scan tool does increase their bottom line, but how long it takes before they finally see a profit from their purchase is widely variable.
I also worked at a car…
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I also worked at a car dealership for 28 years, at a union shop. I worked at the dealership body shop on hourly pay and union benefits. Car Insurance set the hours you were expected to get the job done. It was a good shop, but when the dealer moved later they closed my department. That was my last union job! Independent shops, flat rate, pressure to work faster and no benefits. After 7 years of that I quit and became a union bus driver!!
At the turn of the century …
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At the turn of the century (the 19th to the 20th…), when an attempt to force “flat rate”on the industry was attempted , auto mechanics went on strike nationwide. In the early 20th century however, society wasn’t nearly as dependent on the automobile as we are in the 21st, and the level of mechanical complexity, training, specialized training, tools and skills, paled in comparison to those needed by a 21st century auto mechanic - so unfortunately for all of us, the strike was ultimately broken. There are good reasons we call these craftsmen “technicians” today, as what they do, requires far more training, tools, specialized skills (and patience) than virtually EVERY other trade. These folks contribute far more than their common title suggests and in reality are some of our societies most important, skilled and resourceful craftsmen.
I have been in dealers for a…
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I have been in dealers for a little over 10 years now. One thing I can say is that it's hard to find a good fit but if you put in some years with one place you will become valuable to your boss and he will do anything to keep you because good techs are hard to find. At the same time though I'm only 32 and my body is wrecked already so I know I can't do this forever. New guys should be warned to stay away from dealers owned by a huge parent company like Hendricks for example because these massive dealer groups often have policies against paying techs more than like $35 /hr.
Great article! I sold new…
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Great article! I sold new Mopar for 30 years. Another problem with new car stealerships is the service advisors worked on commission and made more money than the technicians doing they real work.
I have worked as a heavy…
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I have worked as a heavy duty diesel mechanic since 1986. I worked oilfield as a motorman for 7 yrs with a good set pay but ended up getting a job on shore at a Freightliner dealership working flat rate and loved it. I started the job in 1993 and learned how to beat the system of flat rate and warranty work and after a few years was earning over 80,000 thousand a year on ward to over 100,000 plus commissions . I worked as technician bidding my own jobs and performing them. I too had to take off from work several times to have surgery for rotator cuff two separate times being off work for months at a time on worker’s compensation. Yes it’s brutal on the body like any other skilled job in life but was more money I ever made. I worked hard several more years until I was off for another chronic disability of an ankle deformity ending in surgery and being off work for a year. The dealership I work for started paying technicians hourly in 2022. I took the service managers job in 2023. The technicians now are paid hourly working 45 hrs a week with 5 hrs overtime.If they flag over 45 hrs they get 10 dollars more an hour an increases the same every more 10 hours. They love it. Some technicians have 2 helpers adding what the helpers flag added to their flag hours. The helpers just get paid hourly 40 hrs a week. They are paid to take on line training an then advance. The difference when I was flat rate is I would make 18 hrs in 9 hrs daily is why I loved flat rate where they mostly fail but they get paid hourly at over 35 an hour. All dealerships here pay technicians hourly. No more flat rate. Some liked it and some hated it. The time has changed here in Louisiana from flat rate to hourly pay every dealer here car, truck or heavy truck dealers. We have sick leave, paid holidays, paid training online and (ILT). It’s a change for the better.
I've worked for dealerships…
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I've worked for dealerships and independent garages that based my pay on the flat rate system. And I agree, I will NEVER work for a dealership again. Back in 1997, I worked in a GM dealer that was charging $90/hr and I was getting paid $12/hr (flat rate). However, I've also worked for independent garages where my pay was 50% of the labor rate. Early 2000's I was getting paid $32.50/hr (flat rate). That was really good pay at the time. I would consider working at an independent again but I've been self employed in my home based shop for 10 years now. Hopefully I won't have to go to work for someone else ever again.
I have been in the auto…
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I have been in the auto industry for over 45 years. I started at an independent auto parts store and then a tech for 20+ years, eventually becoming a master tech. Flat rate is one of the worst ways to get paid and can be unfair if work is not distributed equally. However if the shop is busy with enough customer pay jobs you can make a very good living. I too got some of the more difficult diagnosis but had a couple of decent service managers that would take care of your time.
I had the fortunate opportunity to replace my auto shop teacher at my old high school. I was able to make that career change at 40 years old. It was the one of the best career choices I could have made. I recently retired after 20+ years of teaching and I tell my wife every day that change saved my body. I taught the fundamentals and the entry level needs. I always told my students that I was just a foundation that they need to complete the building. Some (very few) took advantage of what I taught and were appreciative later on after high school. It was hard at times trying to convince some of them that this is a good career choice for them. But the ones that gave me full effort and I thought they may have what it takes, I would try and convince to pursue it by either finding them a job and help them get into a trade school. I have had several students work at various repair facilities, after about 5 years they tapped out.
Also, try unloading your tool box and tools after you retire, no body wants to buy used tools or tool boxes.
I did save a hell of a lot of money keeping cars going for myself and my kids by being a tech.
The problem as a consumer…
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The problem as a consumer that I see is that if we get away from flat rate the exorbitant prices of vehicle repair will grow even more which the normal middle class family cannot do! Don't you guys see?? The dealerships want to get rid of most of you and keep only a skeleton crew. Soon they are going to say ok, you win we're doing away with flat rates, but you KNOW they aren't going to take the hit! They will pass that right on toothed consumer. Now it truly becomes easier financially for people who have to have that car to eat to buy a brand new vehicle! That may sound far fetched but I have seen folks have to go this route. If n it becomes more common to ditch the car and get something new, the pressing need for shop mechanics drops, so all of us little guys loses.
I'm a retired CMAT+L1 &…
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I'm a retired CMAT+L1 & P2 who worked flat-rate early in my career. I was blessed with an understanding of mechanical devices (I knew why the front sprocket on my bicycle was larger than the one in the back before junior high) and worked at Dodd's Flying "A" in San Pedro, CA for free while in high school. I learned a lot from Larry and Cecil Dodd, which they provided at no charge.
After almost six years in the Army as a wheeled vehicle mechanic (infantry units also have tracked personnel carriers) I worked in a VW dealership under the flat-rate system. When I understood how it worked, I liked if very well. I had a wife and baby to support and the opportunities flat-rate provides kept food on our table and a roof over our heads. And better than most hourly programs would have. During a 46-hour workweek, I would typically turn 50+ billable hours. Sometimes less, sometimes more, but always better than hourly would have paid.
After three years with VW, I worked in a Uniroyal Tire store, a K-Mart garage, and a Chrysler dealership. I then worked in a Pontiac-Cadillac dealership as a Service Advisor. After a couple of years, I was offered a position as Service Manager for a Ford dealership but after a year I returned to the GM store.
A few years later I accepted a position with ACDelco in Field Sales, then after five years taught at the GMTC in Fairfax, VA for three years. I was then promoted to Lead Instructor where I assisted in technical course design and mentored new instructors.
The last few years before I retired, I served as a Fixed Operations Analyst for GM Parts, and dealer Service and Parts representative for Chevrolet.
I've worked both sides of the wall between independent shops and dealerships (GM, Ford, and Chrysler) and been paid under the flat-rate system, hourly, and salary. The flat-rate program allows the employee to earn more $$$ if he or she is good and is interested in making more money. The hourly and salaried programs are for folks who are satisfied with their current pay but appreciate annual or merit raises.
IMHO, the major difference between independent and dealership technicians is their opportunity for product training. My students at the Fairfax GMTC were exclusively independent techs who used ACDelco products to repair vehicles. We had five instructors for the dealer techs and one for independents.
Not all independents choose to attend formal training, and employers don't always require it. Dealers are required to employ trained technicians and manufacturers set training requirements for them. My experience has been that the quality of technicians is about the same regardless of which side of the wall one is employed by, but dealer techs have more knowledge of their brand's diagnostic procedures, tools and equipment, and how the vehicle's systems really work, both independently and as a complete system.
In closing, it was found years ago that the average independent auto shop will close within five to seven years of opening. Not because they cannot fix cars, but because the owner doesn't know how to run a business. To be successful in our chosen profession technicians and management will both need to know what they are doing and thoroughly understand how the system they are inspecting really works. Whether it's accounting or recruiting, or fuel injection and electronics.
I wish you success, Dave Casey
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