Push for vehicle service ‘open’ field gains momentum
Over the past few years there have been institutions calling for the ‘opening up’ of the car service and repair business.
One such is Right to Repair, which was founded by the Motor Industry Workshop Association (MIWA) representing 2 500 independent workshops and automotive aftermarket distributors and parts manufacturers.
What Right to Repair wants is a relaxation of the stronghold car manufacturer’s have over owners of recently purchased vehicles still under warranty and with active service plans, so owners are able to choose whether to have their cars serviced or repaired by the original equipment manufacturer (OEM) or an independent service provider (ISP) without it affecting the warranty.
The Competition Commission has now announced it will put a plan into action that aims to level the playing field between OEMs and ISPs.
If accepted the drafts in the gazette will be accepted this year and force OEMs to comply with the new rules.
Small business
An important factor regarding the amendments is the benefit it holds for small businesses which are hamstrung by the limitations placed on them.
The amendments will allow for small businesses to offer their services to consumers.
However, ISPs have to be cleared by the OEM.
The proposed draft by the Competition Commission notes under point 6.1.1:
‘OEMs must approve any service providers that meet their standards and specifications, to undertake service and maintenance work, motor body repairs, non-structural repairs and mechanical repairs on motor vehicles during the warranty period, including applicants who seek approval for service and maintenance only workshops.’
By approving an ISP, the OEM protects itself, its products and, importantly, the consumer.
This will go a long way in aiding economic growth in SA, while at the same time maintaining reputability among consumers.
OEMs, however, are not allowed ‘to enter into exclusive arrangements’ with ISPs, according to point 6.1.8.
Original parts
ISPs are often limited by not stocking original parts.
The amended draft now allows for pirate parts to be fitted to new vehicles.
It remains the responsibility of both the OEM and ISP to fully inform the consumer about the risks involved with fitting non-original spare parts (9.1.3).
If the consumer decides to continue with the fitment of a nonoriginal part, the OEM has to respect such a decision.
According to point 9.1.1: ‘OEMs and/or approved dealers must allow consumers to fit non-original spare parts where the specific part’s warranty has expired, without voiding the balance of the motor vehicle’s warranty.’
Anyone who wishes to comment on the proposed drafts, has until 16 March to do so.
Written comments must be submitted to Advocacy@compcom.co.za.