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Slow compliance among automotive dealers in upholding warranties following new guidelines

10th November 2021

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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Following the initial publication of the Guidelines to Competition in the South African Automotive Aftermarket in December 2020 and its subsequent implementation in July this year, the slow rate of dealer compliance has been flagged as an ongoing concern.

Right to Repair South Africa (R2RSA) CE Kate Elliott says that, three months ago, only Volkswagen was compliant in the Western Cape, but that Ford has this week publicly announced its support for the guidelines and confirmed that it has unbundled its value-added products from the price of its vehicles.

Ford Motor Company Africa president Neale Hill reiterated the company’s commitment to “delivering the very best products, services and customer experiences, and focusing on treating each customer as part of the Ford family”.

He noted that Ford was “acutely aware of consumers' growing desire and right to choose where they wish to service, maintain or repair their vehicles".

Right to Repair applauded Ford’s decision to honour warranties where customers choose to take their vehicles to an independent service provider (ISP) for services.

However, Elliott noted that, while manufacturers are entitled to void a section of a warranty where a customer brings in a vehicle with a fault and it is clear that the fault has been caused by low-quality parts or poor workmanship on the part of an ISP, “they are not entitled to void your warranty for the simple act of choosing to use an ISP instead of the dealer workshop”.

The same goes for the fitment of accessories, she said.

“For example, the manufacturer is not entitled to void your warranty if you elect to fit a matching quality non-original towbar or bulbar. There has to be a causal link between the action of the customer and the fault. So if your engine blows up after fitting a non-original towbar, the manufacturer can hardly turn around and void your warranty,” she explained.

R2RSA is of the firm belief that the guidelines can be of benefit to all role-players in the market if implemented correctly. 

It is encouraging an even playing field and service excellence from all parties which ultimately benefits the consumer, Elliott noted, adding that R2RSA is also extending the scope of work for dealers.

“Dealer workshops are now, for example, also permitted to service vehicles from manufactures other than their own. This will be of particular benefit to dealers who operate in smaller towns where they may not have enough of a consumer base of their own brand to operate at maximum profitability.” 

At the end of the day, a free competitive market always uplifts standards right across the market and improves cost competitiveness, Elliott highlighted.

“We would love to see more of the manufacturers follow Ford’s lead and voluntarily embrace the guidelines and make the best of the opportunities they provide. The guidelines were not drafted to force anyone out of business. They aim to simply ensure that competition in the market is driven by price and quality rather than restrictive contract clauses,” she concluded. 

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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