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Car dealers important employers: RMI

Johannesburg - The Retail Motor Industry Organisation (RMI), which represents dealerships, said on Friday that vehicle dealers created jobs and were "very important in the larger economic picture".

Jeff Osborne, CEO of the RMI, said the South African motor industry is a formidable employer with about 33 000 people working at seven vehicle manufacturing plants and 250 000 more that were employed by importers of vehicles, component manufacturers and after-market suppliers and service providers.

Speaking at the RMI conference at Automechanika SA, Osborne said that, collectively speaking, the retail motor sector - or network of dealerships - is massive in terms of the number of companies involved, as it is made up of 14 000 employers, most of them of small to medium-sized.

This made the sector important in the larger economic picture in SA, he said.

"It is a global trend that small and medium businesses are the largest creators of employment and SA is no exception in this regard," he said.

The RMI membership is made up of about 85% small to medium-sized enterprises, which means they hire up to 20 employees.

"In the automotive aftermarket we have the fortunate situation that there is a healthy relationship between the large companies and the small and medium employers," Osborne said.

"The larger employers fulfil a crucial role in many ways as trendsetters and investors, leading the way and creating opportunities for smaller employers to service many of their needs and to grow in this environment," he said.

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