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
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