MIWA welcomes probe

The Motor Industry Workshop Association (MIWA) welcomes the Competition Commission’s probe into, among others, exclusionary conduct in the car repair industry. “Consumers have been facing tough economic times for a considerable period, so we welcome the Commission’s efforts to investigate finding a workable solution for the greater motor industry that will not only relieve the burden of consumers but will also facilitate discussion between industry stakeholders,” said Vishal Premlall, Director of MIWA.

For several years through its Right to Repair Campaign, MIWA has been campaigning to allow consumers the right to select where their vehicles are serviced, maintained and repaired, at competitive prices and in the workshops of their choice. The Association has regularly attempted, without success, to engage industry stakeholders to assist it in realising this shift in what it views as prejudicial market behaviour.

“Currently consumers are locked into restrictive warranties that are of long duration and they cannot choose where they service their vehicles during this time,” says Premlall. “Consumers are similarly com- pelled to pay a much higher rate for repairs and parts for their vehicles under warranty when compared to the rates charged by independent workshops.” The parts price issue has already received wide and concerted international coverage through various territories’ Competition Commissions, the most recent being in India where the Competition Commission ruled against 14 car companies engaging in price manipulation.

While 70% of vehicles in South Africa are out of warranty and the consumer can choose aftermarket workshops, 30% of the market remains locked due to restrictive warranty provisions.

“This is a lucrative part of the market that could aid in the growth and expansion of the independent workshop sector if it was granted access.”

At the end of 2016 MIWA formed an external, non-profit company, Right to Repair South Africa, tasked with taking the Right to Repair Campaign to fruition. The company’s steering committee includes key industry role players such as aftermarket parts suppliers, workshops and associations, as well as consumer rights organisations.