SA: eNatis causes backlog of 150 000 new cars

source: IOL

Babalo Ndenze
April 25 2007 at 08:40AM

The implementation of the Electronic National Traffic Information System (eNatis) has caused a backlog of at least 150 000 unregistered vehicles, which are idle in showrooms, said the Retail Motor Industry Organisation (RMI).

Some Cape Town car dealers have had potential buyers cancel vehicle orders because of the delays.

Banks are also refusing to pay dealers because the vehicles are not registered and have not been tested as roadworthy, a prerequisite for a sale.

RMI chief executive Jeff Osborne said eNatis had also affected the truck and motorcycle industry negatively.

‘It’s been an absolute disaster’
“Most have run out of temporary permits. They last for 21 days. It’s affecting a combination of things (because) roadworthiness testing centres are also linked to eNatis.

“It’s causing a knock-on effect.”

He said the costs of holding vehicles already bought caused cash flow problems for dealers.

“Volumes are significantly down this month. Commission reliant on sales are also affected. It’s been an absolute disaster,” said Osborne.

He said the industry would quantify the financial damage caused by eNatis when [continue reading]

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