industry news
Taking the Automotive
Aftermarket to a New Level
The South African aftermarket comprises a wide ranging and diverse variety of activities. Whether it is an
organisation employing thousands of people, or a one man business occupying a small space on the corner, all
are important in the big scheme of things. However, it could be argued that the most critical component of the
automotive aftermarket consists of the small, medium and micro enterprises that collectively add up to the most
significant segment of an industry that effectively keeps the wheels of the economy turning.
F
rom a micro economic level, a small
motor trader provides a service to
its immediate geographical area,
with an economic impact concomitant
to its size. But collectively, these small
enterprises literally carry the country’s
transport needs on its shoulders, and
contribute massively to the economic
well-being of a significant proportion of
the South African population.
It is estimated that these small,
medium and micro enterprises employ
approximately 660 000 people in various
sectors of the motor trade. Extrapolate
this by estimating that each breadwinner
in this country has four to five
dependants, and you are looking at the
welfare of between three to four million
people.
In addition, these enterprises provide the
aforementioned automotive and related
services to a large swathe of companies
and motorists, reliant on these services
to keep their vehicles on the road. Once
again, we are talking about additional tens
of thousands of businesses, hundreds
of thousands of employees, and millions
of dependants. Add all of this up, and
one soon realises that well over 10% of
the country’s economy and population
depend on this vital sub-sector of the
automotive industry.
The Motor Traders Organisation (MTO)
has been set up to address the various
issues relating to the welfare of this
industry.
The MTO is an employers’ body geared
to represent the employers in this industry
with various sectors of government on the
well-being of these SMMEs.
It has also developed plans to advance the
Collision Repair Association (CRA) to act as
an umbrella body within the motor industry.
With the latest protracted NUMSA strike
inflicting unnecessary hardship on these
small traders and negatively affecting profits
within the trade, a big thrust from the MTO
will be the establishment of a specialised
legal team to guide members through the
maze of existing laws and regulations, and
to assist in the interpretation of new laws
such as the Consumer Protection Act.
MTO chairman Noel de Robillard says,
“It is very important to seek to fight the
good fight on gaining ground for small
business owners. We will be on record
as striving to keep MTO membership
fees at low levels, with the prospect of
delivering a more comprehensive offering
and greater service delivery levels. As the
MTO develops, one of the main functions
will be to engage and negotiate with trade
unions on labour matters. The MTO aims
to gain ground in the various areas of
vehicle dealerships, forecourts, franchise
workshops and motor body repairers; and
a dedicated call centre will handle member
queries.”
•
Affordable association fees, ranging
from R300 per month
•
BEE Certification assistance at
preferential rates
•
A panel of lawyers available 24/7 at
the lowest rates
•
The imminent announcement of
an affordable medical aid for all
members
•
The endorsement of the MTO by
Motorite, which ensures that warranty
work is covered; and the impending
endorsement from the other warranty
companies
•
A marketing campaign to drive
consumers to MTO members
de Robillard is clearly passionate about his
mandate and he adds enthusiastically, “the
MTO understands the value of belonging
to an association and what an association
needs to do for its members. We are
striving to ensure that our members’
benefits are taken seriously. Our vision
at the MTO is ‘More for Less’ and this
translates into ensuring that our members
get value for membership and that we
deliver on our services.”
de Robillard reveals that close to 300
members have already signed onto the
MTO, and emphasises that “this fantastic
response shows that our drive to lift MTO
membership to 1 000 companies and
individual suppliers is totally achievable.
As an alternative organisation in the industry
we distinguish ourselves because we care
and are dynamic and forward thinking in our
approach.”
In the short lifespan of the fledgling MTO,
the following benefits have already been
negotiated:
| words in action
68
october 2014
For more information on the
MTO, give them a call on
0861 298 009. Or send them an
e-mail to members@mto.org.za.
Their website is www.mto.org.za