Hacker News new | ask | show | jobs
by bluGill 3270 days ago
Car makers make essentially nothing from ICE maintenance. The labor goes to the independent shops, even if you have a dealer do the labor the car maker gets nothing for it. The fluids are from a third party (you can buy manufacture fluid in a few cases - but that is someone else's fluid with their sticker on the bottle). Rebuilds are mostly done by independent shops. Sometimes the manufacturer supplies parts, but this isn't a large source of income for any of them (though it is significant enough to keep doing it)

The complicated mechanical are a negative for the most part. They have to spend massive sums of money to keep meeting the latest emissions standards, along with more money on efficiency. The only silver lining in this is the side effect that it costs so much you won't see more competition as only a few companies can afford to design an engine.
1 comments
njarboe 3270 days ago
In the US these "independent shops" are called car dealerships and they sell all of the new cars in the US. Manufacturers don't sell cars directly to customers and this is enforced by law in many states. Tesla is the only company doing it. The independent shops usually sell only one brand of car and their profits come mainly from service not sales. Think of them as sales floors subsidized by the money brought in when the product breaks or need service you can't do your self. Not a feedback loop that is good for customers, I think.
link
bluGill 3269 days ago
By independent shops I mean fully independent - no business relationship with the manufacture. Dealers are a mix: they are independently owned, but they get things from the manufacturer that the fully independent shops do not.

The typically model is you take the car to the dealer while it is under warranty and then go to a cheaper shop afterwards. Which means that the dealer gets some maintenance revenue (enough that as you say they are sales floors subsidized by the maintenance shop).

link
njarboe 3269 days ago
It would be interesting to know what the total revenue of independent auto repair shops is in comparison to total dealership revenue from repairs. A quick google did not get any good hits for me.
link