NATIONAL NEWS - The retail motor industry bears the brunt of the ongoing dire economic situation, with dealerships and retail stores announcing that they must restructure, which could lead to retrenchments to ensure sustainable profitability and growth.
The Motor Industry Staff Association (MISA) was given notice of the proposed closure of eleven retail stores of an international tyre producer.
The producer believes it is no longer viable to keep its doors open in South Africa, due to the cost of doing business and the shrinking economy that has taken a toll on the tyre industry.
Martlé Keyter, MISA’s Chief Executive Officer: Operations, says this notice comes after 53 MISA members were retrenched last week, due to the closure of three dealerships in Gauteng.
“A third large dealership group also gave notice of restructuring at eleven dealerships nationwide. It is unsure at this stage how many employees will be affected,” says Keyter.
According to Keyter the industry simply can’t survive with the daily load shedding, skyrocketing fuel prices, and an interest rate at 8,25%, its highest in 14 years.
New vehicle sales slumped again in September with 46,021 vehicles sold, a 4.1% drop compared to the 47,984 of September 2022.
“The impact is not only limited to vehicle sales, but includes the rest of the value chain in the industry. Economists describe the situation as the perfect storm. Households, businesses and industries are struggling under considerable pressure. Buyers are not qualifying for finance due to negative credit records,” says Keyter.
A recent survey indicated that 30% of middle-class consumers have bought a car in the past year. 82% of these consumers indicated that fuel consumption was the most important feature when buying a car.
From 4 October motorists had to adjust to a higher than expected fuel price increase. Petrol increased by between R1.08 (for 93 Unleaded) and R1.14 (95 Unleaded) and diesel prices between R1.93 (low-sulphur 50ppm) and R1.96 (500ppm).
“The high cost of living and the declining take-home pay, has a severe negative impact on mental health, especially in a male dominated industry that is performance driven”, says Keyter.
In recent months there have been a few suicides in the retail motor industry that came to MISA’s attention.
Keyter says mental health in general, specifically suicide, remains largely hidden from the public eye. There are no accurate statistics due to underreporting, stigma and limited data collection.
The World Health Organisation (WHO) estimates a 90% increase in the global suicide rate in 2023. South Africa’s suicide rate ranking third highest in Africa.
According to the South African Depression and Anxiety Group (SADAG), an average of 23 suicides and 230 serious attempts are recorded per day.
“Whether or not you have trouble at work, financial distress or can’t cope with overwhelming emotions. With MISA help is just a phone call away. The Union uses the networks our Women’s Forum and Young Workers’ Forum have built over the years to connect members to non-profit organisations who can help them,” says Keyter.
Suicide is never an option.
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