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‘Don’t sacrifice car dealers for WMMI’

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PLAYERS in the motoring industry have voiced concern over proposals by some legislators to compel the government to purchase vehicles from Willowvale Mazda

PLAYERS in the motoring industry have voiced concern over proposals by some legislators to compel the government to purchase vehicles from Willowvale Mazda Motor Industries (WMMI), a move they say will cripple other companies.

BUSINESS REPORTER

The development follows comments by Hurungwe West MP Temba Mliswa (Zanu PF) that government was empowering foreign countries through the importation of vehicles when the local industry was in doldrums.

Sources said while it would be good to support the revival of WMMI, this should not be done in a manner that would jeopardise other indigenous car dealers.

“The notion that government institutions must be instructed to buy from WMMI in order to support local production and local companies is misguided,” said a source who refused to be named for fear of losing government tenders.

“The implication, therefore, is that Mazdas are being assembled locally or are coming from South African Motor Company (Samco). All the Mazdas are being imported wholly assembled from Ford Motor Company in South Africa.”

Sources said all brand vehicles on offer on the local market were being imported the same way as the Mazdas which are then retailed by WMMI. Industry and Commerce minister Mike Bimha told local media last week that government was in the process of reviewing factors affecting the local motor industry.

“We will not just look at Willowvale alone, but the motor industry as a whole because the problems are very similar. As a sector, the issues that are prevailing are similar due to the economic conditions in the country,” Bimha was quoted as having said.

The motor industry players said while it was critical to save the over 200 jobs at WMMI, it should be noted that other car dealers in the country employed more than 4 500 people combined.

“The problems of WMMI must be tackled without necessarily jeopardising the entire industry comprising of 4 712 employees registered with the Motor Trade Association. Suffice it to say that there are several other downstream and unregistered enterprises and employees.

“Simply saddling it with an exclusive order for government cars will not solve the myriad of problems it is mired in,” the source said. Figures availed to NewsDay show that from 2010 to date, WMMI had an average market of below 15%.