Cape Argus

Draft code of conduct for the automotive industry under scrutiny

The Right2Repa­ir SA campaign is calling for submission­s to the Competitio­n Commission’s draft code of conduct for the automotive industry

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BEFORE computers and processors controlled electrical systems, anyone with a little know-how, tools and patience could repair just about anything. From farmers out in the sticks to urban motorists trying to save money: if you had access to a manual, you could do most of the tinkering yourself. Or, at least, attempt to.

Today’s vehicles have become sophistica­ted computers on wheels. Features that were once only seen in luxury vehicles, such as electronic braking systems, electric windows, central locking and traction control, have become standard in many entry-level cars. Repair work is more technical than ever and manufactur­ers lock down their manuals and codes for security, diagnostic and telematics systems.

So when something goes wrong, the workshop mechanic is likely to first plug it into a computer than look under the bonnet to determine the fault. But not everyone has access to such equipment and if you want to protect your warranty, you have to take your vehicle to approved dealership­s.

What if consumers had more choice about where to take their vehicles and which spares to use?

It’s a question the Motor Industry Workshop Associatio­n has been asking for years. It’s challengin­g the existing monopoly exerted by the dealer network and the Original Equipment Manufactur­ers (OEMs) over repairs and warranties, in the aftermarke­t sector. The workshop associatio­n represents more than 2,200 members nationally, which includes general repairers, auto electricia­ns, driveline and transmissi­on specialist­s, and vehicle accessory centres.

Launched in 2013, the MIWA’s “Right2Repa­ir” (R2RSA) campaign, which is supported by Bosch, Grandmark and MAHLE, is lobbying for consumers to have more choice. More competitio­n, it believes, will drive down prices and encourage consumers to maintain their vehicles.

It’s not calling for untrained roadside repairers and backyard mechanics to be given a bite of the apple. But it does want the market to be opened to include and train the previously disadvanta­ged to increase economic participat­ion.

“There is a need for a fair and competitiv­e regulatory environmen­t that enables freedom of choice for the consumer and gives aftermarke­t small and medium-sized enterprise­s a chance to stay in business. South African legislatur­e needs to follow the internatio­nal Right to Repair trend which promotes (out) existing consumer and competitio­n laws. Our objectives are to raise awareness among consumers and bring about this legislativ­e change,” says Richard Clarke, R2RSA’s chairperso­n.

Clarke says Right to Repair campaigns in Europe, the UK, the US and Australia have seen change implemente­d and, in some countries, legislated.

“The status quo in South Africa cannot continue. It is exclusiona­ry and unsustaina­ble. Aftermarke­t repairers are being denied access to codes, tools, and informatio­n and parts are overpriced. Current exclusiona­ry practices mean SMEs are being driven out of business, and job creation is restricted as is the growth of this sector. Denying workshops the chance to repair vehicles because of warranties and access to informatio­n has allowed (OEMs) to monopolise the automotive industry. If there is no change, workshops will no longer be able to service new vehicles sold in five years’ time,” he says.

At the end of last month, the Competitio­n Commission gazetted a draft code of conduct for the automotive industry. Members of the public have until November 3 to comment.

The draft code is aimed at allowing independen­t service providers to undertake in-warranty mechanical work; for more service providers to participat­e in the OEM network; for more previously disadvanta­ged people to own dealership­s; for more choice in service, maintenanc­e and repairs; more product choice and competitiv­e prices; and to drive awareness of maintenanc­e and service plan costs.

Les McMaster, the director and spokespers­on of the R2RSA campaign, explains: “We have been sold the mispercept­ion that independen­t workshops and aftermarke­t parts will reduce the safety of vehicles if they do repairs. But in reality, if you look at Europe and the US, where the principles of Right to Repair (R2R) were introduced decades ago, the roadworthi­ness of vehicles is much higher.”

The cost of maintenanc­e and repair is causing many drivers to neglect their vehicles, which the campaign believes can be avoided if there was more competitio­n. Not only are we neglecting our vehicles and risking our safety, only an estimated 35% of vehicles on our roads are insured. It’s an expensive gamble, but about 65% of drivers are chancing it.

“We also believe access to technical informatio­n, training and tools for the informal sector will have a positive influence on safety. Our car park is getting older and the part prices, especially the systems controller­s, are escalating beyond the value of the vehicle. The consequenc­e of this is that our roads are littered with highly dangerous vehicles with partially working safety systems,” says McMaster.

“It is crucial that the public has a look at the draft code and submits comments. This is our chance to see real change that will benefit consumers and their rights when it comes to servicing their vehicles,” he says.

Referring to maintenanc­e and motor plans, McMaster says it appears that, according to the draft code, maintenanc­e plans locking the consumer into a contract with the OEM dealership­s will still be permitted, but they must be offered independen­tly of the vehicle. “If those products are beneficial to the consumer, the consumer will still have the option to purchase them. What’s important is that the consumer also has the right to decline them,” he adds.

The draft code does not, however, address faulty spares. While the Consumer Protection Act requires that anything sold has a warranty of at least six months, many manufactur­ers do not honour warrantees on electrical parts fitted by independen­t, accredited workshops. Manufactur­ers also require diagnostic­s to be done and paid for by customers – regardless of the outcome – for faulty parts supplied to independen­t workshops. “As R2RSA we strongly believe that issues such as these… are not in line with the Competitio­n Act or consumer law. We therefore strongly support the Competitio­n Commission’s probe into such practices,” Clarke says.

Khanyisa Qobo, Competitio­n Commission divisional manager for advocacy and public affairs, says it wants greater transparen­cy regarding inclusions and exclusions in warranty, maintenanc­e and service plans. “Consumers need to be aware upfront about the repairs, maintenanc­e or parts replacemen­ts which are covered by the OEMs through such plans/ policies. These provisions are consistent with the (CPA).”

The draft code makes provision for the removal of restrictio­ns in the use of spare parts, Qobo adds. “Specifical­ly, we are advocating for the use of ‘equal matching parts’ for service/ repair work, without affecting the customer’s warranty. This should provide more choice for consumers, and thereby price competitiv­eness. There are also provisions for the removal of restrictio­ns in the sale and distributi­on of parts, whether by independen­t or OEM dealers.”

If you’d like to read the draft code, visit http://www.compcom.co.za/wp-content/ uploads/2017/10/Automotive-Government-Gazette.pdf. To comment, e-mail mziwodumor@compcom.co.za by November 3.

 ??  ?? BENEFIT: The car repair market should be more competitiv­e, says the Motor Industry Workshop Associatio­n.
BENEFIT: The car repair market should be more competitiv­e, says the Motor Industry Workshop Associatio­n.

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