DaimlerChrysler South Africa’s new dealer strategy has prompted the Retail Motor Industry (RMI) organisation to investigate the possibility of taking the matter before the country’s competition authorities.
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The new strategy will see changes in ownership, franchise territories realigned and importantly, a single brand ownership in the major urban areas.
Instead of general DC dealers selling Mercedes Benz, Chrysler and Mitsubishi (which Daimler owns in South Africa), one dealership will sell one of these brands only. There would also be a different system for rural areas, where the general DC dealers would be retained, selling all the company’s local brands.
Jeff Osborne chief executive at RMI said that the implications of the strategy were wider than the car dealerships and could affect other sectors of the industry.
“We need to consider the effect on consumer’s rights and the freedom of competition, while not limiting our concern to DaimlerChrysler,” added Osborne.
The chairman and chief executive of Daimler Chrysler SA, Christopher Köpke, said that the new strategy would take roughly 18 months to implement.
The strategy will also focus on improving customer service and the development of a ‘black empowerment’ programme, favouring the promotion of black South African workers and businesses.
