eNatis disaster costing dealers millions

Published Apr 23, 2007

Share

Problems with the introduction of eNatis, a computerised vehicle registration system, have caused major disruptions in the motor industry, cost dealers millions in stockholding costs and could delay the release of important economic data on new vehicle sales.

Jeff Osborne, chief executive of the Retail Motor Industry Organisation, appealed to the government's transport department to address the problems urgently, warning that financial losses being incurred because of the new system "could have far-reaching negative economic consequences".

Osborne told City Press that the eNatis's flaws meant automakers could not deliver to buyers, leading to the loss of "thousands of deals".

Nico Vermeulen, executive director of the National Association of Automobile Manufacturers of SA (Naamsa), said there was a possibility the release of April sales figures would be delayed.

"There is little purpose in reporting sales that significantly understate the market, are patently inaccurate and are misleading," he said.

"One option… is to defer the April sales report until later in May when eNatis has stabilised, or report sales for April and May in early June," he said.

A decision would probably be taken by Wednesday.

Vermeulen said Naamsa recognised the importance of new vehicle sales data for planning and monitoring for many institutions. It might release indicative market sales figures based on projections by two leading econometric firms.

Tony Twine, a motor industry analyst and director of Econometrix, said new-vehicle sales figures were "crucial" for internal industry planning.

They were also an important indicator of overall economic activity as they appeared the day after the reporting month closed.

Twine said the general disruption could lead to stock shortages.

Osborne said dealers were severely affected because banks did not settle on deals before presentation of original registration documentation and, with the number of unresolved registrations increasing, the stockholding costs of dealers were soaring.

The transport department reported that the system was now performing well and upgrades made to the data centre on Wednesday had stabilised the platform with almost a third of its one-million transactions processed on Thursday.

Related Topics: