Representatives of the motor trade industry are discussing an empowerment guideline, possibly a charter, to transform the sector.

Representatives of the motor trade industry are discussing an empowerment guideline, possibly a charter, to bring about transformation in the sector.


Brand Pretorius, the president of the Retail Motor Industry organisation (RMI), which is said to represent 16 000 businesses and 180 000 employees, said it had not been decided whether to formulate an empowerment guideline or a fully-fledged charter, but a new framework would govern the ownership and management of dealerships, fuel stations, panelbeaters and repair shops among other businesses in the wide-ranging motor retail sector.


According to , a retail motor industry empowerment summit will take place on Wednesday and the debate over the preference of guideline over a charter will be influenced by government's recommendations.


Lionel October, deputy director-general of the trade and industry department, will attend the summit.


October was quoted as saying it would be difficult to develop a charter for the complex and fragmented industry. He said 80 per cent of the 16 000 businesses represented by the association had fewer than 20 employees and many were family-owned.


“An integrated approach is necessary to bring about empowerment in the sector, which will not happen on its own,” Pretorius said.


Little is known about empowerment levels in the motor retail industry, but Pretorius speculated that they were low. He added, “Every aspect of government's balanced scorecard approach, and not just ownership, will enjoy attention”.


Jeff Osborne, executive head of the RMI, will call for the formation of a black economic empowerment steering committee at the summit. The committee would lead the development of the guideline or charter.

Original article from Car