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MINIMUM CUSTOMERS CARSON MOTORS SHUTS DOWN

19/05/2023 06:21:00 Mhlengi Magongo

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MBABANE – One of the prominent dealerships in Eswatini shut it’s doors due to a decrease in the number of customers.

Carson Motors (Pty) Ltd operated at Moneni in Manzini and they specialised on BMW, Mazda Suzuki, Honda, and STHL Swaziland among other activities, seized operations in April. The dealership has been operational for more than a decade and its business was hit hard by COVID-19, and the increase in interest rates post COVID-19.

According to management who preferred to comment anonymously, they started losing customers during COVID-19, as most customers were defaulting in loans and could not afford repayments and services for their vehicles. The other reason availed to the business desk was that, the increase in interest rates post COVID-19 affect their business as it was becoming more expensive to provide service and most customers could not afford the new stipulated prices.

“The cost of purchasing a new vehicle escalated exponentially and it was extremely difficult for most of our customers to afford the stipulation,” mentions the management. They further revealed that the increase in the repo rate resulted in an increase in the buying price of motor vehicles and car parts for customers and retailers. They said most of their customers purchased the motor vehicles on instalments which increase with the interest rate.
When ask about the employees, the management said they were still undergoing a process of retrenchment which would be communicated and the business desk discovered that some of the employees have open their own motor spares.

Meanwhile, a total of 48 Carson Wheels employees have reportedly been retrenched as the company has ceased operations and they now want their packages. The employees are decrying that they have not received their packages two months after the car dealership’s closure on April 3. The employees who were working in sales, service, technicians, as well as administration were retrenched after they received letters from management informing them about the closure of the company.

Packages

The thorny issue, according to the employees, was that they were served with the letters without prior notice on the closure. As a result, they said they were now left without jobs and were failing to pay rent and other basic necessities. According to staff members, the main reason for the closure was that the business was no longer generating enough revenue to keep the company afloat. They disclosed that before the closure of the company, they had been experiencing delays in receiving their salaries. However, the employees mentioned that they would get their full salaries eventually.

The staff revealed that they were only engaged by the Ministry of Labour and Social Security last Friday, who told them what was meant to happen and also engage management on the matter. The employees said they were supposed to be notified about the closure and further be given their packages before they let them go. However, the employees disclosed that the ministry told them that they were not able to get hold of the director.

What really saddens us is that no due process was taken in engaging us prior and informing us about the imminent closure before we were served with the letters. As it is, we are left jobless and can’t even seem to pay rent, school fees for our children and afford our basic livelihood,” the employees lamented.