THE body representing the country’s motor vehicle manufacturers expressed support for changes aimed at transforming and enabling greater inclusivity, especially, of previously disadvantaged individuals, in the industry.
The National Association of Automobile Manufacturers of South Africa (Naamsa) released a statement, this week, confirming their support for the Guidelines for Competition in the South African Automotive Aftermarket.
The guidelines were initially drafted by the Competition Commission after consulting various role-players in the industry.
In December the commission released their finalised version of the guidelines before it was gazetted last month, and due to take effect on July 1.
To put the brakes on anti-competitive tendencies, transforming the industry and enabling greater inclusivity of historically disadvantaged individuals (HDIs) into the marketplace is what drove the commission to formulate the guideline.
Previously, independent service providers (ISPs) were blocked from servicing, maintaining or repairing cars.
This is due to original equipment manufacturers (OEMs) pinning certain warranty stipulations on vehicles, which favoured dealerships with the inside track to the sale of parts, service and repairs on cars and excluded ISPs.
ISPs were also overlooked by insurance companies that opted to direct work to their list of preferred service providers to do repair work.
From July, customers purchasing vehicles from dealerships are no longer be compelled to accept service plans as part of their purchase package.
Instead, they could use the services of accredited ISPs for those purposes.
ISPs are accredited by Retail Motor Industry Organisation (RMI), the body that promotes and protects the interests of its members and consumers.
Previously, Naamsa asked for a gradual introduction of the guidelines as they believed the changes were rightfully aimed at historically disadvantaged individuals but white owned businesses would benefit the most because of their state of readiness.
Mikel Mabasa, Naamsa’s chief executive, said in the statement that while they still had some reservations, they supported the guidelines mainly because it was intended for the good of South Africans.
“We may not entirely agree with the manner in which the commission has pronounced itself on some of the key substantive issues contained within the guidelines, but the spirit and the letter of what we should collectively work towards, as part of our transformation journey, is something Naamsa and the industry supports.”
Mabasa acknowledged that in spite of the country’s economic successes and a number of government policies and plans to overcome economic disparities, the automotive industry recognised that entrenched inequalities continued to prevail in certain sectors of economic activity, and that the automotive value chain was no exception.
He said it was disingenuous for anyone to conclude that the automotive industry had not taken prudent steps to promote inclusion and to encourage competition through greater participation of small businesses as well as historically disadvantaged groups.
“We do this in many other areas of our work and have committed ourselves to include the automotive after market value chain as reflected on the guidelines.
“Our engagement with the commission before the finalisation of the Guidelines has been inclusive, open, transparent and robust.
“Our commitment towards transformation is well-documented,” said Mabasa.
SUNDAY TRUBUNE