Auto industry must urgently address lack of transformation at dealership level
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GUEST – Edward Makwana, General Manager of Legacy Motor Group
The pace of transformation within vehicle dealerships remains woefully slow, and urgent action is needed if the automotive industry is to achieve true transformation, warns Mpho Dipela, chair and shareholder of the Legacy Motor Group (LMG).
“A lack of diversity and representation in dealerships has become an increasingly pressing issue within the automotive industry. There are still only a few major black dealer principals within this space rather than achieving broad-based transformation and empowerment, and there is a particular lack of black and female employees at the middle to senior management level,” he says.
“Given the importance of the sector as an economic driver and job creator, industry stakeholders and particularly manufacturers urgently need to increase focus on skills development, job creation and ownership throughout supply chains.”
Demonstrating the significance of the sector, the National Association of Automobile Manufacturers of South Africa (Naamsa) notes the automotive industry currently accounts for about 4.3% of South Africa’s GDP, 17.3% of the country’s total manufacturing output and represents the fifth-largest export sector.
The pace of transformation within vehicle dealerships remains woefully slow, and urgent action is needed if the automotive industry is to achieve true transformation, warns Mpho Dipela, chair and shareholder of the Legacy Motor Group (LMG).
“A lack of diversity and representation in dealerships has become an increasingly pressing issue within the automotive industry. There are still only a few major black dealer principals within this space rather than achieving broad-based transformation and empowerment, and there is a particular lack of black and female employees at the middle to senior management level,” he says.
“Given the importance of the sector as an economic driver and job creator, industry stakeholders and particularly manufacturers urgently need to increase focus on skills development, job creation and ownership throughout supply chains.”
Demonstrating the significance of the sector, the National Association of Automobile Manufacturers of South Africa (Naamsa) notes the automotive industry currently accounts for about 4.3% of South Africa’s GDP, 17.3% of the country’s total manufacturing output and represents the fifth-largest export sector.
