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News Article - Automotive
DaimlerChrysler says state must help empowerment
Posted on: Wednesday, 21 April 2004. Article source: Business Report
DaimlerChrysler (DCSA), one of the Eastern Cape’s top four automotive manufacturers, says special dispensation is required to facilitate black economic empowerment (BEE) transactions.
Chairman of DCSA Christoph Kopke explained the company has R200 million in a fund to facilitate BEE partnerships within its dealer network.
These funds are generated by DCSA and its dealer network which pays 0,25 per cent of turnover into the fund.
This entity’s funds are being used to subsidise the interest of BEE partners, buying equity into dealerships so that only capital was repaid.
However, he said that the challenge is to get the funds into BEE partners’ hands tax free and the current process is cumbersome.
DCSA dealerships with a BEE partnership currently receive 2,5 per cent more margin. This initiative is part of DCSA’s BEE initiative which will result in a 25,1 per cent black shareholding in all local Mercedes Benz, Chrysler and Mitsubishi dealerships over the next three years.
Chairman of DCSA Christoph Kopke explained the company has R200 million in a fund to facilitate BEE partnerships within its dealer network.
These funds are generated by DCSA and its dealer network which pays 0,25 per cent of turnover into the fund.
This entity’s funds are being used to subsidise the interest of BEE partners, buying equity into dealerships so that only capital was repaid.
However, he said that the challenge is to get the funds into BEE partners’ hands tax free and the current process is cumbersome.
DCSA dealerships with a BEE partnership currently receive 2,5 per cent more margin. This initiative is part of DCSA’s BEE initiative which will result in a 25,1 per cent black shareholding in all local Mercedes Benz, Chrysler and Mitsubishi dealerships over the next three years.
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