Competition Commission's probe into the automotive industry's unfair practices

The Competition Commission is probing the automotive industry for unfair practices relating to car servicing and car part after-markets as well as seeking clarification into how motor plan benefits the consumer.

The claims being investigated are that the industry is involved in price fixing, market division, and collusive tendering in the market for the manufacture and supply of automotive components supplied to original equipment manufacturers.

Jeff Osborn, head of automotive at Gumtree and former CEO of the Retail Motor Industry Organisation says the car manufacturers are in a way protecting the customers interest by giving them warranties and ensuring that when the vehicle is repaired the work is done by trained and skilled personal and the equipment used meets the manufacturers specifications.

In case of a claim, the manufacturer should be able to determine the source of the part and the standard and quality of the part that's fitted on their car.

Jeff Osborn, head of automotive at Gumtree and former CEO of Retail Motor Industry Organisation

As you can see the manufacturers are subjected to recalls of 7 - 8 years old cars cannot just give you a 6 months warranty but gives 3 - 5 years warranty. To support that warranty there's a whole lot of things to he has to go around.

Jeff Osborn, head of automotive at Gumtree and former CEO of Retail Motor Industry Organisation

Wendy Knowler, Consumer Journalist says if the manufacturer is going to offer warranties they have to make sure that the car is serviced and maintained properly.

On the other hand, the model should not create a situation where the customer has no choice and when you've got no choice you have an issue where prices can be competed.

Wendy Knowler, Consumer Journalist

Emphasis should rather be placed on policing the mark ups on the pricing...

Wendy Knowler, Consumer Journalist

To hear more on this subject, listen below:


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Citibank fined almost R70m for colluding to fix currency #BanksCollusion

Citibank fined almost R70m for colluding to fix currency #BanksCollusion

The forex trading cartel involving 17 banks is being investigated by the Competition Commission and fines are being meted out.

 Banks in collusion scandal may face criminal charges - Competition Commission

Banks in collusion scandal may face criminal charges - Competition Commission

17 local and international banks implicated in manipulating the currency are being investigated by the Competition Commission.

Gauteng ANC throws weight behind Gordhan, questions Molefe's appointment

Gauteng ANC throws weight behind Gordhan, questions Molefe's appointment

ANCYL wants Finance Minister Pravin Gordhan fired following bank collusion scandal.

Bank collusion may have made rand stronger - financial analyst

Bank collusion may have made rand stronger - financial analyst

Intellidex financial analyst, Stuart Theobald, says it's difficult to measure the impact of currency manipulation by 17 banks.

Treasury labels bank's collusion as "unbridled greed"

Treasury labels bank's collusion as "unbridled greed"

17 banks, accused of collusion and insider trading could be fined 10% of their revenue should they be found guilty.

Confused about collusion case vs banks? You’re not alone! An analyst explains…

Confused about collusion case vs banks? You’re not alone! An analyst explains…

Intellidex Financial Analyst Stuart Theobald explains what banks actually did wrong.

Three of SA's big banks accused of collusion

Three of SA's big banks accused of collusion

Competition Commission referred a collusion case to the Tribunal for prosecution against 17 banks.

Popular articles
[WATCH] Teen shoved off bridge by pal into river

[WATCH] Teen shoved off bridge by pal into river

A Washington teenager was badly hurt when her friend pushed her off the bridge after she said she didn't want to jump.

I've always known what space I wanted to be in - Trevor Stuurman, visual artist

I've always known what space I wanted to be in - Trevor Stuurman, visual artist

#NightTalk host Gugu Mhlungu chats to entrepreneur & multimedia visual artist Trevor Stuurman about his accolades and inspiration

Africa State of Mind: ''They call me the real Makoya' - Femi Koya, musician

Africa State of Mind: ''They call me the real Makoya' - Femi Koya, musician

In this episode of Africa State of Mind, musician Femi Koya chats to Lee Kasumba about leaving Nigeria to come to South Africa.

I've always said that stories are the mothers of all disciplines - Gcina Mhlophe

I've always said that stories are the mothers of all disciplines - Gcina Mhlophe

Phemelo Motene chats to the mother of storytelling & a poet to the masses, Gcina Mhlophe about what it means to share your stories

This is how the Pebbles Project is protecting kids that live in the Winelands!

This is how the Pebbles Project is protecting kids that live in the Winelands!

Fundraising and Outreach Manager at the Pebbles Project, Charmaine Gola, chats about the work they do & their focus on the youth

The nutritional, environmental & socio-cultural benefits of indigenous foods

The nutritional, environmental & socio-cultural benefits of indigenous foods

'You need to look outside your traditional shopping centers to actually eat traditional food in the city' - Mpho Tshukudu, author

ProKid described as a true family man who loved his mom

ProKid described as a true family man who loved his mom

His brother Sandile Mkhize says he promised ProKid that he will continue where he left off.

'The Suzuki Dzire is the perfect day-to-day runaround car' - Jacob Moshokoa

'The Suzuki Dzire is the perfect day-to-day runaround car' - Jacob Moshokoa

In the car feature, automotive journalist Jacob Moshokoa chats about his experience driving around with the Suzuki Dzire.

[LISTEN] Codeine addiction and abuse

[LISTEN] Codeine addiction and abuse

Member of the SASOP, Dr Eugene Allers chats about the causes behind addiction to over the counter medication.

Phemelo responds after listener congratulates her for speaking wonderful English

Phemelo responds after listener congratulates her for speaking wonderful English

'To congratulate me, and to make it seem like this is an accolade is extremely offensive because of our history' - Phemelo Motene