MERCEDES-Benz South Africa (MBSA) co-chief executive officer Mark Raine has resigned from his position after allegations of nepotism against him.
Raine is set to take an opportunity to oversee direct sales, omni-channel commerce and data management in Stuttgart, Germany.
This new role would be effective from September 1.
However, his resignation came after the Sunday Independent exposed how Raine allegedly closed doors on qualified black women.
The allegations came after MBSA allegedly appointed unqualified white males for positions previously designated for black female employees.
It was reported that the car manufacturer allegedly hired two white males in roles previously set aside for black female South Africans.
The changes allegedly came after Raine was appointed in 2021.
It was also alleged that one of the appointed white males was known not to have the requisite qualifications and was handpicked without the position being advertised. He was allegedly recruited based on his friendship with the managing director.
However, MBSA general manager of corporate affairs, Thato Mntambo, said Raine’s departure was not abrupt. He said the resignation was also unrelated to the recent article published by this paper.
“From the onset, his employment agreement with Mercedes-Benz South Africa was for three years, commencing September 2021,” Mntambo said.
He said Raine was long appointed to a role in Germany and his term in South Africa would come to an end on August 31.
“His departure was internally communicated on May 8, 2024 and forms part of the normal course of business in terms of rotating senior or executive management roles at the company,” Mntambo said.
He further refuted the allegations and insisted that the company is an equal opportunity employer and adheres to sound recruitment and labour practices.
“Our internal investigation revealed that the referenced appointment was in line with the advertised vacancy requirements and specifications of the media specialist role for Mercedes-Benz Cars.
“With a rich heritage that spans over six decades in South Africa and our commitment to social responsibility, we are proud of the visionary approach to the transformation journey we have embarked on,” he said.
Meanwhile, MBSA announced that Claudius Steinhoff would replace Raine in the role of co-chief executive officer and head of marketing and sales. The company said the appointment was made according to the policy dealing with the nomination of directors of the issuer.
Steinhoff started his career with Mercedes-Benz in 2008 as a student at Baden-Wuerttermberg Co-operative State University in Germany. He has also held positions in treasury and product management and as an executive assistant to the head of region overseas.
It remains to be seen if Steinhoff will come up with positive changes as the company is in the process of retrenching more than 700 workers in its manufacturing plant in East London.
The company said the job cuts were due to declining global demand for its C-Class sedan and other challenges including a weak economy.