The days of car companies voiding your warranty if you use an independent repair shop may soon be a thing of the past.South Africa’s car manufacturers and importers will meet other industry stakeholders on Thursday July 18 to discuss a way forward for the controversial automotive code of conduct, which proposes that in-warranty cars may be serviced at independent dealerships.
The code also promoted greater ownership of dealerships and other automotive businesses by historically disadvantaged individuals. Both sides claim to be championing consumer interests but it’s really about who gets the consumer’s money, as most franchised dealerships make the bulk of their profits from their workshops rather than from selling cars.
The National Automobile Dealers' Association said the code as it stands would have a catastrophic effect on investment and employment in this important sector of our economy, saying that SA has 1,600 franchised automotive dealerships worth R48bn and employs 60,000 people.