While drivers may be jubilant about the possibility of having their cars serviced far more cheaply, multinational vehicle manufacturers have slammed the Competition Commission proposals as dangerous, counterproductive and a threat to economic growth
While draft guidelines favour consumers and independent service providers, they’ve infuriated dealerships and OEMs, which have slammed the proposals as dangerous, counterproductive and a threat to economic growth
The Motor Industry Workshop Association and the SA Motor Body Repairers’ Association are thrilled about the additional choices consumers will have, as well as the opportunity that this will open for independent service providers. In Europe, about 60% of vehicles sold at dealers are sold without a service plan, and owners can have them serviced at independent workshops.
Michael Mabasa, the CEO of Naamsa, said the way in which the concept guidelines were published made a mockery of the conversations about transformation and reform that the association had conducted with the commission over the past seven months. The industry echoed Mabasa’s sentiments, saying the commission now wanted to force its hand and penalise it for transformation commitments it had already made and which were to be gradually implemented for the benefit of all stakeholders.
. Vehicle and service plans may not be part of the transaction at the point of sale, but must be determined separately from the price of the vehicle; Naamsa regards the enforceable guidelines as a dangerous, counterproductive step that will damage the economy.
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