BODY: A simple car wash
turned into a nightmare for Matt Olson of Port Hadlock, Wash.
High-pressure water got under the hood of his 1993 BMW
318is, ruining the computer that controls the engine.
The car was towed to Circle & Square Global Car
Service, where owner Reto Filli installed another computer. But Filli couldn't
program the new computer to run the engine. He had to send it to a BMW dealer
for that.
Problem is, the nearest BMW
dealer to Port Hadlock, on a remote peninsula, is in Seattle, a ferry boat ride
and another 60 miles away. Getting the car to Seattle and back added $ 200 to
the $ 100 the dealer charged to program the computer. The total bill was $
2,900.
"Customers choose us to do the work
because it's too much hassle to go to Seattle," Filli says. But "BMW and
Mercedes have gotten to the point where their cars are so technical, I have to
turn customers away."
Programming
engine-control computers is a complicated task that BMW prefers to have its
dealers handle, says spokeswoman Martha McKinley, who also say BMW will pick up
the $ 200 transportation charge for Olson's car.
The question of who ought to be able to repair today's high-tech cars
-- the average vehicle has 15 computers managing everything from engine, brakes
and shocks to the radio -- has exacerbated the already-tense relationship
between automakers and their dealers on one side and independent repair shops on
the other.
Caught in the middle are U.S.
car owners who spend close to $ 38 billion annually on automotive repair,
according to the Commerce Department. Being driven to a dealership for service
over an independent can be costly. Dealer labor rates tend to run from $ 10 to $
20 per hour higher than independent shops, according to AAA. The standard dealer
markup on parts from the manufacturer is 30%, according to J.D. Power and
Associates, a research and marketing firm.
That means a major repair can wind up costing hundreds of dollars more
at a dealership than the garage down the street. For example, asked to estimate
the cost of replacing the transmission in a 1997 Ford Taurus, a Chicago-area
Ford dealer gave an estimate of $ 2,200-$ 2,500. A Chicago-area independent
repair shop gave an estimate of $ 1,600-$ 1,800.
Manufacturers say their dealers are best equipped to handle today's
technology-driven repairs. Independent repair shops argue that they can do the
work just fine if they can get the latest diagnostic tools and computer
information at a reasonable cost.
Now
Congress has gotten involved. In early August, five members introduced The Motor
Vehicle Owner's Right to Repair Act, which would require
automakers to provide all vehicle repair information to independent shops.
Automakers oppose the bill.
Manufacturers
admit that purchasing the diagnostic tools and getting all the repair updates is
expensive. McKinley says that independent shops can get the information Filli
would have needed to program the BMW. But it costs $ 12,000, and that's too much
for a lot of small shops.
"We do make it
available, but they would likely have to have enough BMW business to warrant
that kind of expense," McKinley says.
Automakers also admit that they prefer to have their dealers do the
work. "We want to maintain our customers in our dealerships as much as possible"
says Tony Fujita, vice president of customer service of Lexus. "We firmly
believe that we can do the very best job."
"If a part fails, it is likely to require someone with more training.
An independent shop or technician may not be able to handle it because of the
electronics involved," says Fred Heiler, a Mercedes-Benz spokesman.
Dealers argue that they handle warranty
repair work for the manufacturers and safety recalls from the government. They
say they can link directly to the factory for advice and that they are required
by the automakers to provide ongoing training for their service technicians.
Ken Roberts, a spokesman for the Automotive
Service Association, which represents independent repair shops, says the
independents have to do good work because they rely on "repeat business and word
of mouth that you are repairing cars correctly, and you are diagnosing
correctly."
Roberts also says
manufacturers should encourage independents to fix cars. "There are more cars on
the road than dealerships can service," he says.
The number of registered vehicles in the USA climbed to 205 million in
2000 from 130 million in 1980, according to R.L. Polk. Over the same time
period, the number of dealerships fell to 22,150 from 27,900, according to the
National Automobile Dealers Association.
Follow the money
For dealers, selling service
and parts is often more profitable than selling new cars. In 2000, about 53% of
dealership profits came from service and parts sales, according to the National
Automobile Dealers Association. Last year, dealers sold a record $ 73 billion in
service and parts, a 9% increase from 1999.
Two issues fueling the feud:
*
Some parts and technology are only available at a dealership.
In some cases, an automaker will ask a supplier to build a
certain number of a part for production and just enough extras for dealers but
not the aftermarket.
Automakers say they
do that when the dealer is best trained to properly install the part. But that
means dealers, faced with less competition, can price the part almost anywhere
they want.
Ed Cushman of C&H Foreign
Auto Repair in Spokane, Wash., specializes in Volvo repairs and has to get parts
from dealers.
Cushman says that when it
comes to Volvo parts, the local dealer, Camp Imports, doesn't follow the usual
practice of selling parts to repair shops at wholesale prices, about 20% below
retail. Camp does sell parts for Chevrolets, BMWs and Subarus at wholesale.
"It's frustrating," Cushman says. "If they
have a part that we need, we'll buy it, even though we have to pay a high
price." But he gets most of his Volvo parts from a dealership in Seattle, 350
miles away.
Ralph Plaster, parts manager
at Camp Imports, says the dealership averages only two Volvo repairs a month, so
it doesn't stock a lot of parts. He says with such little work, it's not worth
the hassle of selling wholesale. "I don't stock the inventory," Plaster says. "I
don't have the return capability. It is not profitable."
Some technology is only available from the dealer, too.
And it may not be for major items, such as Olson's engine computer.
Need a new car key? A visit to your local
hardware store probably isn't going to get it done. Daniel Scott of Huntsville,
Ala., was given just one key when he bought a used 2001 Mitsubishi Galant. He
could get a duplicate only from the dealer. And although the dealer didn't
charge Scott for a second key, he was told the cost would have been $ 20 for the
key and $ 60 to program the anti-theft chip to work with his car. Anti-theft
keys for luxury cars can cost more than $ 200 to replace.
Automakers argue that some technology, mainly the computer
systems that keep engines running smoothly, is proprietary and shouldn't be
released for competitive reasons. "Automakers spend millions of dollars
developing this technology," says Gloria Bergquist, a spokeswoman for the
Alliance of Automobile Manufacturers, a Washington-based lobbying group.
* Highly skilled labor is in short supply.
About 60,000 additional automotive
technicians are needed in the next 5 years, according to industry experts. And
working on complex vehicles requires more skills, which limits the pool of
qualified candidates, forcing dealers and independent shops to compete for good
technicians.
The best prospects should be
comfortable with computers, understand electronics and know the basics of how a
car works. But the best-suited candidate is likely to seek something more
glamorous and less grimy in the computer technology field. And older mechanics
may not warm up to computer technology. The ASA says one technician enters the
job market for every 10 who leave.
"Our
biggest problem is finding trained technicians," says dealer Robert Maguire,
chairman of the National Automobile Dealers Association. "Young people who can
work with both their mind and hands are in high demand in the computer industry
and other jobs."
Training ground
To counter the problem, General Motors, DaimlerChrysler,
Toyota, Honda, BMW, Subaru, Volkswagen and Audi have joined with dealers to fund
Automotive Youth Educational Systems (AYES). The partnership works with state
education departments to attract and train high school students for jobs as
service technicians.
More than 3,000
technicians have gone through the program, which is now in 40 states and expects
to be in all 50 by the end of 2002, says Don Gray, president of AYES. In a few
states, independent repair shops sponsor the students, but most go to
dealerships.
The independents are pinning
their hopes for help in competing with the dealers on Congress.
Currently, automakers are required to share only
information about emissions systems with independent repair shops. That's the
result of a law that required automakers, beginning in 1994, to install computer
systems in vehicles to monitor emissions.
One of the bill's sponsors says that law gave automakers an opening to
not share other information.
"This law had
the unintended consequence of making the vehicle manufacturer the gatekeeper on
who can repair, or produce, replacement parts for the vehicle," says Rep. Joe
Barton, R-Texas, one of the sponsors of the Right to Repair bill.
"This bill will preserve a vehicle owner's
freedom to choose where, how and by whom to repair their vehicles, as well as
their choice in car parts," he says.
Bergquist says the bill would force automakers to turn over proprietary
information. "We oppose any legislation that would force automakers to do that.
We have to find some way for providing some of the information short of giving
it away," she says.
Barton is chairman of
a subcommittee that will consider the bill, giving it a chance of at least
getting out of committee. But the auto industry, with a well-honed lobbying
apparatus, is a formidable force in Washington.
Calls rack up range of prices
USA TODAY called dealerships, independent dealers and
aftermarket service franchise chains in three parts of the country to get
estimates for repairs on three popular car models.
Replace brake rotors
1998 Toyota Camry in Los
Angeles area
Dealer
Mike Miller Toyota, Los Angeles, $ 101.35 per rotor.
Independent
General Auto Repair, Hollywood, Calif., $ 65 per rotor.
Franchise
Midas, Los
Angeles, $ 83.95 per rotor.
Replace
transmission
1997 Ford Taurus in Chicago area
Dealer
Al Piemonte Ford Sales, Melrose Park, Ill.
$ 2,200-$ 2,500 (estimate).
Independent
Automotive Tech
Center, Oak Park, Ill.
$ 1,600-$ 1,800
(estimate).
Franchise
Aamco Transmissions, Oak Park, Ill.
$ 1,700-$ 1,900 (average).
60,000-mile scheduled maintenance
1997 Honda
Accord in Miami area
Dealer
Maroone Hollywood Honda, Hollywood, Fla.
Total Cost: $ 229.95 (4 cylinder), $ 299.94
(6 cylinder).
* Includes: Replace oil and
oil filter, replace air cleaner, replace spark plugs, rotate tires, replace
transmission fluid.
No need to replace
spark plugs until 100,000 miles.
Need to
see car to determine if tires should be rotated.
Source: Research by Darryl Haralson, USA TODAY
Inquiring minds save big bucks
How informed consumers prepare before visiting an auto repair shop
Sometimes it pays to question a mechanic.
Bob Brooks of Waukegan, Ill., took his son's 1996
Volkswagen Golf to a VW dealer because it was running rough and the check-engine
light was on. After connecting the Golf to a diagnostic computer, the service
manager told Brooks the car needed a new throttle body unit for $ 450, including
labor.
Brooks, a self-taught engineer,
decided to do his own analysis. But several months later, with the Golf running
worse, Brooks returned to the dealer for another diagnosis. This time, he was
told the Golf needed a new engine-control unit for $ 900.
Even more distraught, Brooks dived deeper into his own
analysis, including calling engineers at VW's U.S. arm for help.
"One day, the engineer said, 'Did you check the ground
wire?' " Brooks says.
Brooks checked the
wire, which, when corroded and frayed, as the Golf's was, can cause electrical
problems, computer misreadings and a host of other ills. Brooks spent $ 8 on a
cleaning solution, got the ground wire in good shape and hasn't had a problem
since.
Here are some other tips on keeping
down the costs of maintenance and repairs. They come from the National Institute
for Automotive Service Excellence, which certifies skills of service
technicians.
Do your homework before
taking your vehicle in for repairs or service by:
* Reading the owner's manual to learn about your vehicle's systems and
components.
* Following the recommended
service schedule.
* Keeping a log of all
repairs and service.
Use all of your
senses to inspect your car frequently. Check for:
Be specific, even taking notes if necessary, so that you can best
explain the problem to the repair technician. Note:
* When the problem occurs.
* If
it is constant or periodic.
* If it
happens when the vehicle is cold or after it has warmed up.
* If it happens at all speeds, only under acceleration,
during braking, when shifting.
* When it
first started.
And stay involved smartly
by:
* Asking as many questions as you
need. Don't be embarrassed to request lay definitions.
* Not pushing for an on-the-spot diagnosis. Ask to be
called and told the problem, course of action and costs before work begins.
* Understanding before you leave the shop all
policies regarding labor rates, guarantees and acceptable methods of payment.
Here are some Web sites that can help you
learn how to select and deal with a repair shop and how to understand the
function and costs of some automotive parts: www.napaonline.com;
www.autozone.com; www.asashop.org; and www.asecert.org.
GRAPHIC: PHOTO, Color, Tim Dillon, USA TODAY;
PHOTO, B/W, Toyota; PHOTO, B/W, Wieck; PHOTO, B/W, Wieck; Taking a look: Jeff
McArthur, an automotive technician with Fitzgerald Dodge in Rockville, Md.,
checks an Intrepid's engine.
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