Motor dealers to open, but with uncertainty

Motor dealers will start reopening their doors to customers on Monday, still unsure of the conditions under which they will be allowed to operate.

On Thursday, the government added dealers to the list of business sectors allowed to trade from May 1 at level four of the risk-adjusted Covid-19 strategy. However, the latest gazetted regulations refer only to “car sales”. Dealer groups hope this includes bakkies and commercial vehicles, but by Sunday afternoon they were still awaiting government clarification.

The same applied to the rule that sales may take place “under specific directions”.    

There are about 1,600 franchised new-vehicle dealers in SA, employing about 60,000 people. National Automobile Dealers Association chair Mark Dommisse has warned that dealers will start to close and jobs will be lost if the sector is not allowed to return to work this week.

According to a leading dealer: “We don’t know what these directions are. We hope we will find out on Monday what we can and can’t do, so we can make our business plans accordingly.”

The directions are certain to include social distancing and other Covid-19 health rules. Many dealers spent the weekend preparing for what they think may be necessary. It is believed at least one motor brand wants to conduct its own on-site checks at franchised dealers.

Vehicle licensing offices are open from Monday, so dealers say buyers of new vehicles will be able to complete registration and ownership formalities. Testing centres won’t be, however, so buyers of used vehicles may have to wait for their vehicles to undergo roadworthy certification.

Dealers are allowed to undertake emergency repairs on vehicles. This does not include routine work under warranties and service plans.

Dealers were originally near the back of the queue for Covid-19 reopening before fierce motor industry lobbying brought them to the front. Vehicle and components manufacturers, who will also return to work on Monday, argued that it made no sense to build vehicles for the local market if there was no- one to sell them.