Did you know that throughout level 5 lockdown, all automotive movement came to a legendary standstill? Most employers and employees across all occupations were urged to stay home and to work remotely from home.
The National Association of Automobile Manufacturers of South Africa investigated data where they found that the sales of motor vehicles dropped with 98,4%. This affected the year-to-date volumes downwards with 32,1%. This had a ripple effect on all traders where they were under immense pressure and it also placed thousands of employees’ positions on the line. Luckily, when level 4 lockdown was announced, the automotive industry experienced a sigh of relief.
The Department of Trade and Industry and Competition of South Africa published detailed information with regards to sales of vehicles and emergency automobile repairs in the Government Gazette on 12 May 2020. Minister Ebrahim Patel divided the return to full operation in the Motor Industry in three phases.
Phase 1 is valid from 12 May 2020 to 26 May 2020. During this phase, only 30% of staff capacity is allowed to return to work. Vehicle sales have to be performed remotely (internet and telephonically). Where possible, electronic signatures have to be used during the financing process. Test-driving of vehicles is possible where it has to occur on an appointment basis. It is allowed to deliver a fully sanitized vehicle to the client’s home address.
Phase 2 is valid form 26 May 2020 to 08 June 2020. During this phase, 60% of staff members are allowed to return to work. Clients may only visit dealerships under extreme hygiene conditions and restrictions where they also have to consult on an appointment basis. Vehicles may be delivered and picked up if it is fully sanitized.
Phase 3 is valid from 08 June until level 4 lockdown is lifted. 100% of staff members are allowed to return to work. Clients will be allowed to visit the dealership, but it will be limited to a minimum. Strict hygiene conditions and social distancing will still have to be implemented. During the final phase 3, vehicle auctions have to be conducted online, roadworthy testing centres will open and the National Regulator for Compulsory Specifications will provide services in terms of approving cars for sale.
During all three phases, all staff and clients are obligated to wear facemasks. It is also compulsory that the premises have to be fully sanitized.
ABOUT THE AUTHOR
Altus de Wet, Legal Advisor, SEESA Bloemfontein, Consumer Protection & POPI