The National Automobile Dealers’ Association (NADA) and Absa Bank Limited have formalised a strategic collaboration agreement aimed at strengthening South Africa's motor dealership sector. The agreement, signed last week, builds on the existing relationship between the two organisations and outlines joint initiatives focused on professional development, transformation, and operational standards.
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Key areas of cooperation defined in the agreement include:
- Elevating F&I Standards: The partners will establish a joint Finance & Insurance (F&I) awards programme designed to recognise high levels of performance and professionalism in dealership F&I departments.
- Investing in Skills Development: Continued Professional Development (CPD) programmes will be supported to help F&I managers and dealership staff keep their skills current with industry trends and enhance service delivery.
- Driving Transformation and Inclusion: The partnership will actively support initiatives aimed at increasing transformation within the sector, focusing on empowering historically disadvantaged persons and fostering inclusive growth.
Signing on the dotted line to formalise the collaboration are - from left to right: Ipeleng Mabusela, CEO, Retail Motor Industry Organisation (RMI); Charl Potgieter, Managing Executive Absa Vehicle and Asset Finance (AVAF).
Speaking at the signing, Charl Potgieter, Managing Executive of Absa Vehicle and Asset Finance, described the agreement as a formal step reinforcing a long-standing relationship. "This marks a renewed commitment to strengthening our partnership with NADA," Potgieter stated. "Our objective is to support the growth and sustainability of the motor industry, particularly through robust dealer partnerships."
Potgieter highlighted the dealership sector's vital economic contribution, noting the broader motor industry contributed over 5% to national GDP in 2024. He pointed to increasing industry challenges, such as the need for customer education, dealer training, and fraud prevention, where collaboration is essential. "When we come together as an industry to tackle shared challenges, we are more effective. Partnerships are part of our DNA," he added.
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NADA Chairperson Brandon Cohen welcomed the agreement, aligning it with NADA's objective of working inclusively with all financial institutions. "This collaboration with Absa is a step in our ongoing mission to foster cross-sector partnerships benefiting the entire dealer network," Cohen said. "NADA engages with all major banks, recognising their critical role in supporting customers buying new or pre-owned vehicles."
Cohen noted the agreement responds to modern pressures: "Increased fraud and changing consumer behaviour necessitate updated methods and deeper collaboration. Dealers frequently represent the bank at the point of sale, so stronger alignment improves outcomes for the customer, the dealer, and the financial industry."
He also expressed support for the planned F&I awards: "We welcome the opportunity to jointly recognise the high standards present across our dealer networks, particularly in F&I. This partnership allows us to acknowledge that performance while investing in our people and the sector's resilience."
Cohen concluded: "The Collaboration Agreement with Absa is a milestone in our relationship and holds potential for advancing the South African motor dealership sector. We are confident this partnership will create value for NADA, Absa, and our stakeholders, contributing to a more progressive industry."
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