California New Car Dealers Are Turning to Apprenticeships for Auto Technicians

California’s new car dealers are engaging an apprenticeship solution to recruit and develop individuals who aspire to become automotive service technicians. The California New Car Dealers Association (CNCDA) Foundation is partnering with Automotive Apprenticeship Group (AAG) to provide a path to in-depth instruction and training to career-minded individuals, then matching them with California auto dealerships for employment. Though the apprenticeships are for anyone with an interest, they have been especially attractive to people 18 to 30 years old for whom college was not an option or a preference.

The apprenticeship available through the CNCDA Foundation is a two-year program where apprentices are compensated at a competitive wage and with no out-of-pocket expenses. They learn and develop skills through on-the-job training at local dealerships, discovery-based e-learning, and hands-on technical training and practice. Upon completion of the program, the apprentices earn a national certification from the U.S. Department of Labor. Access to all necessary tools and a computer are provided to all apprentices. And each apprentice is supported by a dedicated AAG career manager who provides guidance and support during their apprenticeship journey.

Overcoming Misconceptions of Low Wages & Opportunities for Auto Technicians

A recent CNCDA survey indicates there is a statewide shortage of about 5,000 technicians among California dealerships. The technician shortage is the result of an aging workforce with many technicians retiring and a lack of young people entering the field, often due to a misperception that technicians earn low wages and have limited opportunity for advancement. Experienced technicians, according to the survey, earn $100,000 to more than $200,000 annually once fully certified.

CNCDA reports that California dealerships completed 33.8 million repairs on customer vehicles in 2024. California is not alone with this shortage. Nationally, there are nearly 400,000 job openings for service technicians.

AAG Manages Entire Program for Dealerships

For participating auto dealerships, the solution is completely turnkey—AAG manages apprentice recruitment, conducting of candidate interviews, orientation, pre-apprenticeship training, payroll and compensation, insurance, mentoring and ongoing career coaching, as well as the education and training for each apprentice.

“For a young adult or anyone who is career-minded, being an auto technician is a career that can support a person for the rest of their life,” said Kim McPhaul, president of the Foundation. “Our apprenticeship program will connect career-minded people, such as recent high school graduates or those currently working in unrewarding jobs, with opportunity to work in a field where motivated, skilled people are sorely needed. The key to addressing the technician shortage is to take a holistic approach to the challenges of identifying, vetting, teaching, hiring, and retaining good, long-term, committed career technicians.”

While just ramping up in California, several apprentices have already enrolled in the program and are paired with dealerships.

Tech Shortage Creates Opportunity

AAG was founded by David Peterson, who previously owned auto dealerships around the nation for more than 40 years. He has witnessed firsthand the critical need for the next generation of skilled service technicians.

“The technician shortage is an industrywide, nationwide challenge,” said AAG president Joe Atkinson, a longtime executive in Peterson’s dealership operations. “With 27 million drivers on the road in California, it’s a particularly serious problem here. But with this problem comes opportunity. We see opportunity for people who aspire for a career where they will be in demand, and where they will be part of the new wave of talent for auto dealerships.”

McPhaul notes that the apprenticeships through the Foundation and AAG set a high standard. Only a portion of those who apply and are interviewed are accepted into the program. “Thus, while the AAG offerings and its related high standards may not be for everyone, for those who are vetted and accepted—and for the dealerships that hire them—it is a win-win with promising long-term dividends.”

“Dealers throughout the state have service bays that are unused because of the tech shortage,” said K.C. Heidler, chair of the Foundation. “It puts a strain on their businesses. And customers find it difficult to schedule repair and maintenance visits. The apprenticeship program is a strategic, long-term solution to this challenge.”