JSE-listed retail giant faces staff revolt

South African automotive retail giant Motus is facing strong backlash from employees after it announced plans to cut some jobs and slash salaries by up to 30%. 

The company has said this is in response to a generational shift in South Africa’s new car market due to the rise in popularity of Chinese vehicles. 

Motus has been a laggard in adapting to the surge in popularity of Chinese vehicles, with it being a late mover in opening dealerships for brands from the Asian company. 

Now, it has implemented an overhaul of some of its dealerships, creating multi-franchise outlets with Chinese brands. This has resulted in the potential to create some efficiencies, it said. 

Motus’ SA Retail CEO Gideon Jansen van Rensburg explained that the local automotive sector has come under immense pressure in recent years. 

“The South African automotive retail sector has experienced significant disruption in recent years and, as a business operating at scale, had to respond to ensure the long-term sustainability of the business,” Jansen van Rensburg told 702. 

“The shift towards multi-franchise and combined dealerships brought efficiencies and the duplication of back office and support functions that are no longer sustainable.” 

This has pushed Motus to consider job cuts for these various positions as part of its rationalisation plan. 

“At the same time, the market has become more competitive, with new entrants, particularly Chinese brands, that have intensified the pricing pressures Motus faces,” Jansen van Rensburg said. 

Motus has been a victim of the hunt for value from South African consumers, with many moving into lower-priced vehicles with slimmer margins for dealerships. 

As a result, while sales volumes of new cars have risen, the average value of the vehicles sold has declined. This means that the average selling price of a vehicle has risen below inflation in recent years. 

Some consumers have also completely shifted into the used car market and no longer buy new cars to save money. 

“This is placing pressure on the margins of the business. In response, we were required to rationalise our business by implementing back office synergies,” Jansen van Rensburg said. 

He explained that this restructuring has also included changes to the incentive structure of back office employees and administrative staff. 

Motus has so far retrenched 67 employees who it could not find other positions within its business, with some others taking up to a 30% salary cut to remain employed. 

“Our senior staff took salary cuts of up to 30% in our retail division and now we are seeking to realign the incentive structures and company car benefits of our admin staff,” Jansen van Rensburg said. 

Staff pushback

These rationalisation efforts have resulted in immense pushback from Motus employees, who have pointed to the CEO’s R35 million pay package and record sales as reasons why jobs and salaries should not be cut. 

The Motor Industry Staff Association (MISA) has declared a dispute with Motus regarding the job cuts and reduced salaries, saying they are unfair. 

There are also claims that workers are bearing the brunt of the mistakes made by the management team in failing to adapt to the rise in Chinese brands sooner. 

“Motus has informed 532 of our members that they will be implementing salary cuts as of the end of January, up to 30%,” MISA spokesperson Sonja Carstens told 702. 

Carstens explained that there are three groups of employees, with some getting a 10% cut, while others get 20% and 30% cuts. 

This is coupled with the return of all company vehicles by the 31st of January, with employees no longer entitled to fuel, car, or cellphone allowances. 

In some cases, the sales incentives and commission for staff members are being taken away as Motus reworks its incentive structures. 

The consultation process began in July 2025, when Motus first informed workers that it wanted to take away some of their benefits. It has since expanded to include job cuts and salary reductions. 

Carstens explained that Motus initially said that 900 people would be affected and around 250 jobs would be lost. After negotiations with MISA, the job cuts were reduced to 86.

Despite further consultations, Motus decided to proceed with the job cuts and salary reductions, with MISA responding with a letter of demand. 

“MISA will approach the High Court to get an interdict if Motus continues down this path, as this should never have been an option,” Carstens said. 

“We believe that Motus could have tried alternative methods to job cuts. For instance, halting benefits for new appointments, rather than taking away something that is already in my conditions of employment.” 

Carstens explained that Motus’ SA Retail division had record sales for October, November, and December, indicating that the company is doing better than ever. 

“We are not convinced that this drastic measure that has a significant impact on the lives of individuals is really necessary,” she said.