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:


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
Fund manager lays criminal charges against former Steinhoff CEO Markus Jooste

Fund manager lays criminal charges against former Steinhoff CEO Markus Jooste

The Money Show’s Bruce Whitfield interviews Benguela Global Fund Managers Chief Investment Officer Zwelakhe Mnguni.

France exploring ways to assist City of Cape Town with water crisis

France exploring ways to assist City of Cape Town with water crisis

Xanthea Limberg says no formal agreement has been reached but it looks forward to talks and learning more from France.

'ANC may split if Dlamini-Zuma is elected leader'

'ANC may split if Dlamini-Zuma is elected leader'

Political analyst Dr Somadoda Fikeni sat down with Ray White to discuss the future of the ANC.

'This puts pressure on Jacob Zuma to vacate office earlier'

'This puts pressure on Jacob Zuma to vacate office earlier'

The Money Show’s Bruce Whitfield interviews Daniel Silke, Political Economy Analyst at Political Futures Consultancy.

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Watch the Guptas pack their bags and run in Nando's inspiring new advertisement.