by Filum Ho Motor dealership bodies have recently presented some highly debatable views regarding the Competition Commission’s new draft guidelines for the automotive industry. On 14 February 2020, the Commission published guidelines which stipulate that consumers will no longer be compelled to conduct in-warranty service, maintenance or repair work only at approved dealers or approved […]
After hearing over 80 stakeholders’ viewpoints regarding what might be viewed as anti-competitive behaviour in the automotive industry, the Competition Commission has decided to take a draft motor code one step further by seeking to implement it in law.
Since 2017, the Competition Commission has consulted widely in the automotive industry with a view, at first, of creating a single, voluntary Automotive Code of Conduct to help open up the market, promote greater transformation and encourage increased economic participation of SMEs and black South Africans.
Car owners in South Africa are often locked into using a vehicle manufacturers repair shop and parts because it is embedded in the motor and service plan.
Apart from deciding on which car suits your personal needs and style, you also need to bear in mind critical issues such as your maintenance and warranty plans.
As it stands, local car owners are unique in the world because they are typically locked into using a vehicle manufacturer’s service centres, repair shops and parts in what are dubbed ‘embedded’ motor or service plans.
The days of vehicle manufacturers threatening to void your warranty if you use an independent service centre or repair shop will soon be a thing of the past.
The proposed code is expected to empower car owners with the right to repair or service their vehicles at a provider of their choice, without voiding their warranties, he said.
The proposed Code is expected to empower car owners with the right to repair or service their vehicles at a provider of their choice‚ without voiding their warranties.
“The new code of conduct will be voluntary, but participants will be monitored by organisations such as Right to Repair South Africa (R2RSA) and even the public at large.”