Legacy questions lack of transformation at dealership level

The Legacy Motoring Group has taken aim at it what calls the slow rate of transformation of the country’s dealership chains in lieu of its size and standing as one of the key job creating sectors.

Time to change

In a statement, the principal BMW and Mini retailer’s chairman, Mpho Dipela, said diversity remains low and that the time has come for the industry to create awareness by upping skills training, development and introducing programmes aimed at black professionals.

“The barriers to entry for smaller black businessmen to secure partnership agreements with OEMs and take ownership of dealerships is extremely high, and OEMs have also tended to favour a few larger players rather than consider smaller players,” Dipela said.

“While the investments made by OEMs in skills and development programs has yielded numerous benefits for employees entering the industry and working within manufacturing, there has not been a sufficient level of change at the management tier within the dealer network”.

What needs to be done?

According to Dipela, the automotive industry’s contribution of 4.3% to the country’s gross domestic product (GDP), in addition to it accounting for 17.3% of South Africa’s entire manufacturing output, should be incentive enough for the “acceptance” and accommodating of black individuals into the dealership and manufacturing sector.

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“Leadership and development programmes that specifically focus on upskilling black individuals and promoting the development of more female and black dealer principals could play a significant role in achieving the goal of greater economic inclusion as well as small and medium enterprise development,” Dipela said.

“By investing in these programmes, and supporting small players seeking to own successful dealerships, OEMs can help to create a more inclusive and diverse supply chain, while also contributing to the overall growth and economic impact of the industry”.

The up-side

He also added that the flip-side for dealers and manufactures amounts to better acceptance and seeing as a principle driver of job creation while adhering to inclusivity for all.

“It is important that we continue to see and support initiatives like these in order to promote greater equality, and maximise the socio-economic impact of the industry,” Diplea concluded.

“Majority black-owned companies have already proven themselves as economic powerhouses, producing and selling high-quality vehicles to the local and international markets, and demonstrating their acumen within the industry.”

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