Automobil September 2016

SEPTEMBER 2016

SPECIAL REPORT Are all fuels the same?

STATE VEHICLE MAINTENANCE

RMI signs agreement

CONVERTING POTHOLES TO POWER How automakers plan to save the planet

SADFIA: Offering professional solutions for diesel vehicles RMI UPDATE: NEW EXECUTIVE DIRECTOR FOR NAACAM; MEET SAPRA’S NEW ACTING DIRECTOR; www.automobil.co.za RMI RAISES FUNDS FOR WHEEL WELL; ENTERPRISE DEVELOPMENT PROGRAMME EXTENDED; VTA'S JOY OLDALE WINS AWARD; WORKSHOPS FOR REPAIR SPECIALISTS; PARTINFORM IN UPINGTON

SEPTEMBER 2016

1

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44 -SEPTEMBER NOVEMBER 2014 2016

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CONTENTS – SEPTEMBER 2016 COLUMNS 7 Driver’s Seat: Jakkie Olivier, CEO of the RMI 9 Editor’s Letter: Wynter Murdoch 11 Hot Stuff: New product showcase 58 Frequently Asked Questions: Answers from the experts 66 Tailpiece UPDATES 10 News

Volkswagen looks to clean up emissions; Continental strengthens West African operation; Lots to learn at Automechanika Frankfurt; VRE a key part of Volvo’s future; New CEO for Bridgestone SA; ZF to buy Haldex?; Rolls-Royce announces bespoke carbon fibre programme; Reducing weight remains top priority for automakers

Editor: Wynter Murdoch wynter@thefuture.co.za Sub-editor: Peggy Lendrum peggy@thefuture.co.za Design and layout: Heinz Bawa heinz@thefuture.co.za Reporters: Ryan de Smidt ryan@thefuture.co.za

P22

Reuben Van Niekerk reuben@thefuture.co.za

34

Call the professionals

38

RMI seals State vehicle maintenance agreement

39

RMI Update

Publisher: Richard Lendrum richard@thefuture.co.za Production: Mabel Ramafoko mabel@thefuture.co.za

P38

Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za Future Publishing (Pty) Ltd 1 Cecil Avenue, Melrose Estate, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 268-6297 RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Shamika Singh, Danelle Van Der Merwe, Marwaan Davids, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman

An agreement signed recently with Transit Solutions regarding the maintenance and repair of State vehicles represents another quality RMI value offering to members New Executive Director for NAACAM; Meet SAPRA’s new Acting Director; RMI raises funds for Wheel Well; Joy Oldale wins award; Enterprise development programme extended; Workshops for repair specialists; Partinform visits Upington

COVER STORY 22

Converting potholes to power

Aim for bumps in the road – it may help you to save the planet, according to Audi, which is developing a new electromechanical rotary damper that turns kinetic energy into fuel-saving power

FEATURES

P46

Automobil is the official journal of the Retail Motor Industry Organisation (RMI) which hosts 14 constituent associations: ACRA (component remanufacturers); ERA (engine re-builders and automotive engineers); MDA (motorcycle, scooter, quad and jet-ski/outboard engine dealers); MIMA (Motor Industry Manufacturers’ Association); MIWA (the full spectrum of workshop operators); MPEA (wholesale and retail part dealers); NADA (new and used car and truck dealers); NAZA (number plate association); VTA (vehicle testing); SADFIA (diesel pumproom operators); SAPRA (Fuel resellers, convenience store and car wash operators); SAMBRA (collision repairers and automotive refinishers); SAVABA (vehicle body builders) and TDAFA (tyre dealers and fitment centres).

27

Mercedes-Benz tops NADA DSI Awards

31

Taking the pain

32

Time is of the essence

46

The diesel story

50

Secondary strikes

52

Enforcement of CCMA awards

56

Business management

60

Ensuring fairness

Automobil is available to purchase from the publishers at R25 a copy.

Automobil is published by Future Publishing (Pty) Ltd and produced for the Retail Motor Industry Organisation. Opinions expressed in Automobil are not necessarily those of the publishers or the Retail Motor Industry Organisation. Permission to republish any article or image or part thereof must be obtained in writing from the publisher. © Future Publishing (Pty) Ltd.

www.automobil.co.za

Problems with your diesel engine's fuel injection system?

Members of SADFIA are the specialists to call

Gold was struck at the most recent WesBank-sponsored National Automobile Dealers Association (NADA) Dealer Satisfication Index awards Economic recovery may still be a couple of years away but there is no reason to think that South Africa’s motor manufacturers will not come out of the downturn stronger and better prepared When companies are doing badly and the possibility of failure seems imminent, time becomes a critical factor In the concluding report in his series that celebrates 120 years of motoring history, Jake Venter profiles Rudolf Diesel, the engineer who perfected the art of spark less ignition Employees who do not have a direct grievance against an employer – but who strike in sympathy with those who do – have to comply with provisions stipulated in the Labour Relations Act An award issued by the CCMA may now be directly presented to a sheriff for execution if payment is not made in terms thereof Without systems your business is managing you Managing HIV/AIDS in your workplace

SEPTEMBER 2016 -

5

BENEFITS OF BELONGING A short summary of the benefits of RMI membership

The RMI has represented the retail motor industry and its members for more than 100 years.

With more than 7 500 member businesses, our unity is our strength.

RMI representation at often volatile and disruptive centralised wage negotiations.

Professional industrial relations advice by expert specialists, ensuring procedural and substantive fairness when disciplining staff.

Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses.

Chairing of disciplinary hearings and AUTOMATIC entry and representation at the CCMA, DRC and Labour Court.

Representation at various MIBCO and Industry-related Boards and committee structures.

Affiliation to reputable organisations recognised by Government, big business, consumers and relevant stakeholders like Business Unity SA (BUSA).

Protection against one-sided legislative changes or new laws and regulations.

Exceptional CPA support and member assistance during defence cases at the National Consumer Commission (NCC) and the Motor Industry Ombudsman of South Africa (MIOSA).

Facilitation of a business-to-business complaint where both parties are RMI members, with a complaint resolution rate in excess of 95%.

Quality and Standards function – representing the retail industry at various South African Bureau of Standards (SABS) committees and working groups.

Representation at the National Regulator for Compulsory Specifications (NRCS), defending our industry when compulsory specifications and standards are compromised.

The informative Automobil magazine and weekly web letters that facilitate two-way communication and create consumer and industry awareness.

The RMI is regularly invited to comment on industry topics by both print and broadcast media, and participates in and hosts numerous conventions and shows.

Associational accreditation ensures ongoing development and implementation of commercial value propositions specific to the association.

Training needs and representation via merSETA and W&RSETA. We actively drive industry-wide training and apprenticeship issues through our position on the merSETA Board and our involvement with the Technica manuals.

Representation at the Moto Health Care Fund, Industry Provident Funds and the Sick, Accident and Maternity Pay Fund.

The RMI offers industry-specific products like RMI4BEE / RMI4LAW / RMI4OHS /RMI4SURE.

Need to get hold of the RMI? Turn to Page 10 of this issue for all the contact details

6 SEPTEMBER 2016

www.automobil.co.za

DRIVER’S SEAT

Preparing for the future Proper planning and new thinking will see the RMI succeed at their goal of becoming the member organisation of choice in the retail motor industry, says CEO Jakkie Olivier to benefit tremendously from the New Thinking Model (NTM) as recently adopted by the RMI governance structures.

A

t the time of writing this month’s Driver’s Seat, the brilliant news of Wayde van Niekerk’s world record Olympic gold medal in the 400m event was barely a couple of hours old.

The fact that Wayde won gold at the Rio Olympics was not a fluke or a stroke of luck. It all came down to the star athlete and the planning by his training squad, commitment to hard work, perseverance and dedication to excellence. These are the same qualities that the RMI and its constituent associations strive to emulate.

Over the past couple of years we have continually been reporting on changes within the RMI’s product and service delivery model – all of which was aimed at achieving the status of “member organisation of choice in the retail motor industry”.

To be the organisation of choice or to be the preferred supplier does not come easily and is normally earned over time and against the very strict delivery of superior products and services. The character of the value proposition for members should be of such a nature that businesses would want to belong.

The RMI and its 14 constituent associations have been working on the “Organisation/Association of choice” over the past couple of years and have shown promising results in this respect.

The RMI’s Project Renewal, implemented on 1 June 2013, was designed to provide better and improved services and products.

Project Renewal was very successful based on what the Organisation and its Associations have collectively achieved at the end of the 2016 financial year – the date that is effectively seen as Project Renewal’s culmination.

Among the many achievements worth noting is the fact that the RMI and its Associations have increased its membership for the third consecutive year – and coupled with potentially the best-ever year from a financial point of view, it truly is a very exciting achievement. Along with these sterling performances, we are equally excited to share the news of further renewal and change within the RMI. I am pleased to announce that the RMI and all its associations are well-positioned

The New Thinking Model, which is geared for implementation over the next two years, simply means a more focused associational business model, where the commercial value proposition of the Associations would benefit the future financial sustainability of business. With this renewal, we envisage a greater RMI and Associational footprint as the Organisation moves forward towards creating virtual offices for a number of shared services.

Included in the renewal objective is to have trained specialists dedicated to the RMI Associations at various levels.

This dedicated focus will reach a wider network of our members, with specialised services like training and regulatory compliance processes being of greater value to our members.

Improving on the status of being the “Organisation/Association of choice” is all about trusting the RMI brand, which is critical in the eyes of the motoring public. Assisting our members in growing their businesses with the quality support and high standards of the RMI is our driving force.

With this in mind, it is very exciting for us to enter the next phase of excellence and professionalism in the retail motor industry. Watch this space for regular feedback and information on the refreshing approach of the New Thinking Model.

For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300

www.automobil.co.za

SEPTEMBER 2016 -

7

CONSTITUENT ASSOCIATIONS Who do they represent and what are their objectives?

T

he RMI is a proactive, relevant, retail and associated motor industry organisation recognised as the leading voice in South Africa’s automotive aftermarket, serving the daily needs of its members and playing a key role in enabling motor traders to deliver top class service to motoring consumers.

Here are the associations which fall under its umbrella…

ACRA (Automotive Component Remanufacturers’ Association) ACRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, an ever-growing industry in which keeping abreast of change is crucial for business owners.

ERA (Engine Remanufacturers’ Association) ERA represents motor engineers who re-machine, rebuild and remanufacture engines in South Africa. ERA members promote the reuse of engines, parts and components in a manner that is green and sustainable. ERA members create employment and skills development opportunities, directly in their own machine shops and indirectly through suppliers to the industry and component manufacturers.

MDA (Motorcycle Dealers’ Association) MDA represents members who are motorcycle dealers – these members benefit from an extensive array of value-add services and products such as commercial insurance, labour legal assistance and representation, consumer dispute resolution, and a strong relationship with the Association of Motorcycle Importers and Distributors.

MIMA (Motor Industry Manufacturers’ Association) MIMA members are Parts, Equipment and Component Manufacturers and suppliers to Original Equipment Manufacturers and the automotive aftermarket that exports into Africa and other countries in the world.

MIWA (Motor Industry Workshop Association) MIWA, the largest association within the RMI, strives to keep its members informed about the ever-changing auto repair industry, thereby ensuring that vehicles are repaired to acceptable standards designed to make them perform better and safely on South African roads.

NAZA (Number Plate Association of South Africa) NAZA supports the imposition of a national standard for number plates, as well as for legislation to govern their manufacture, embossing practice and protocol. NAZA members adhere to a strict code of ethics in ensuring their part in eradicating corruption within the sector.

TA

Vehicle Testing Association

VTA (Vehicle Testing Association) The VTA represents private vehicle testing stations that are committed to operating within the law in accordance with the Road Traffic Act and the relevant SANS standards. In this highly regulated environment, the association represents the interests of its members at government working groups and is committed to enhancing the reputation of the industry in all the spheres.

SADFIA (South African Diesel Fuel Injection Association) SADFIA members operate fully equipped pump rooms aimed at providing cost-effective service solutions for owners of diesel powered vehicles seeking fuel injection system testing, repair or replacement.

SAMBRA (South African Motor Body Repairers’ Association) SAMBRA is an active leader in the motor body repair industry and consolidates, communicates and regulates repair standards in the motor body repair industry. SAMBRA ensures the provision of technical and business skills training that meets the demands of the industry and instils confidence in consumers and industry stakeholders.

SAPRA (South African Petroleum Retailers’ Association) SAPRA represents and promotes the interests of petroleum retailers in South Africa and fosters strong relationships with the Department of Energy, oil companies, banks, financial institutions and other stakeholders that have an impact on the sustainability of the service station industry.

MPEA (Motor Parts and Equipment Association) MPEA represents South Africa’s auto part traders, including wholesalers, retailers and independent operators in the replacement motor parts industry. Genuine replacement parts are available at accredited MPEA spares outlets at affordable prices, backed by the manufacturer’s warranty.

SAVABA (South African Vehicle and Bodybuilders’ Association) SAVABA members are professional, certified and regulated vehicle body builders in South Africa who manufacture commercial vehicle body applications (tanker, coal, refrigerated trucks and trailers) and bus bodies (commuter and tourist type). Members manufacture using the latest equipment and highly trained staff to ensure strict compliance with SABS standards and other legal specifications.

NADA (National Automobile Dealers’ Association) NADA represents the interests of business people who own or operate new vehicle franchise dealerships and qualifying used vehicle outlets. NADA is committed to the image enhancement of the retail motor business, facilitating the interface between dealers and OEMs/ distributors, building relationships between dealers and customers and bringing relevant industry issues to the attention of government.

TDAFA (Tyre Dealers' and Fitment Association) The TDAFA is the only representative body for tyre dealers nationally. The association works on all issues relevant to tyres and the fitment industry. Strategically, the TDAFA is positioned as an intermediary between government, the tyre industry and consumers and is recognised by government and industry leaders as the legitimate voice representing tyre dealers.

8 - SEPTEMBER 2016

www.automobil.co.za

EDITOR’S LETTER

The next new thing

T

he cover story of this edition of Automobil offers another pointer to the fast pace at which the automotive industry is changing. When a manufacturer such as Audi reveals details of a groundbreaking suspension system that, in turn, demands a re-think of a vehicle’s electrical system, you can bet your boots that rival manufacturers are working on similar projects.

Implications for the aftermarket are vast. If we think we’ve got problems now in terms of developing, training and up-skilling technicians to cope with current demands, from as early as next year we might find ourselves faced with additional challenges. South Africa is not immune to wheels of progress that turn elsewhere in the world – as David Furlonger points out in his Taking the Pain assessment on page 30.

Other topics of significance covered in this edition include the signing of an agreement between the RMI and Transit Solutions relating to the maintenance and repair of State vehicles – which represents another quality value offering from the Organisation to its members – to the number of gold certificates gleaned in this year’s WesBanksponsored NADA DSI Awards, which give an indication of the esteem in which motor manufacturers are held by their dealership networks.

At a time when the local motor industry is battling the ill-winds of an economic downturn, it’s good to know that significant elements of respect have been retained between dealers and their principals.

I trust that you will enjoy this edition.

Wynter Murdoch, Editor

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And, when an automotive supplier such as Delphi indicates that, by the year 2025, 11-million vehicles worldwide could be equipped with 48-volt electrical systems, the writing is on the wall – old tech is rapidly being overhauled.

Fuel-saving has long been billed as the savior of the planet. The fact that higher powered electrical systems could help to save billions of litres of fuel a year tends to indicate that decisions have already been made – motor manufacturers are in agreement that 48-volt systems represent the way forward.

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SEPTEMBER 2016 Superior Vehicle Tracking | Stolen Vehicle Response | Insurance Telematics | Fleet Management Solutions

9

NEWS

SPEAK TO US RMI EXECUTIVES

hief Executive Officer: C Jakkie Olivier jakkie.olivier@rmi.org.za Chief Operations Officer & Human Resources Director: Jan Schoeman jan.schoeman@rmi.org.za Financial Director: Renee Coetsee renee.coetsee@rmi.org.za Company Secretary: Gary McCraw gary.mccraw@rmi.org.za

RMI BOARD MEMBERS

Jeánne Esterhuizen (President) Barry Canning (Vice-President) Ferose Oaten Jakkie Olivier Bruce Allen Lindsay Bouchier Pumza Gcanga Les McMaster George Nyabadza

RMI PARTNERS

SAMBRA Edwin Martin edwin.martin@rmi.org.za SAPRA Viv Corinaldi viv.corinaldi@sapra.co.za TDAFA, ACRA Hedley Judd hedley.judd@rmi.org.za

@AutomobilSA

TRAINING, TRANSFORMATION & ENTERPRISE DEVELOPMENT Marwaan Davids marwaan.davids@rmi.org.za SADFIA Louis van Huyssteen louis.vanhuyssteen@rmi.org.za ERA Pieter Niemand pieter.niemand@rmi.org.za

www.rmi.org.za

NAZA Julian Pillay julian.pillay@rmi.org.za MPEA, MIMA Erwin Stroebel erwin.stroebel@rmi.org.za MDA Jeff Molefe jeffrey.molefe@rmi.org.za

RMI4Sure 0860-104-202 RMI4Law 0861-668-677 RMI4BEE 0861-764-233 RMI4OHS 012-998-7139

RMI HEAD RMI HEADOFFICE OFFICE Danelle van der Merwe Brand and Communication Manager danelle.vandermerwe@rmi.org.za

DIRECTORS

Q&S, SAVABA, FRICTION STANDARDS Vacant

Neo Bokaba Transformation Manager neo.bokaba@rmi.org.za

MIWA Vishal Premlall vishal.premlall@rmi.org.za

011-789-2542 | www.rmi.org.za

NAAASP EMPOWERMENT Marwaan Davids marwaan.davids@rmi.org.za

Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194

NADA Gary McCraw gary.mccraw@rmi.org.za

RMI REGIONAL OFFICES

VTA Joy Oldale joy.oldale@rmi.org.za

10 - MAY 2015

Facebook.com/AutomobilSA

Highveld: Jeff Molefe jeffrey.molefe@rmi.org.za Randburg: 011-886-6300

TA

Vehicle Testing Association

Northern: Pieter Niemand pieter.niemand@rmi.org.za Pretoria: 012-348-9311 KwaZulu-Natal: Julian Pillay julian.pillay@rmi.org.za Durban: 031-266-7031 Eastern Cape/Border: Erwin Stroebel erwin.stroebel@rmi.org.za Port Elizabeth: 041-364-0070 Western Cape: Joy Oldale joy.oldale@rmi.org.za Cape Town: 021-939-9440 Free State/Northern Cape: Louis van Huyssteen louis.vanhuyssteen@rmi.org.za Bloemfontein: 051-430-3294

www.automobil.co.za

HOT STUFF

NEW PRODUCTS

Diagnostic software upgrade

Motorcycle dealer Fire It Up has announced that an update of TEXA Version 26 diagnostic software is available for Aprilia, Bajaj, Benelli, Ducati, Kawasaki, KTM, MV Agusta, Piaggio, Triumph, Vespa, Yamaha, Artic Cat and Harley Davidson motorcycles.

According to Fire It Up’s Craig Langton, the update includes the best of TEXA’s multi-brand diagnostic capabilities and offers technical data and additional support functions. “The software is a concentration of new features and improvements,” he says.

For information call Craig Langton at 011 467 0737.

Heavy duty Chevron South Africa has announced the launch of its latest premium diesel engine oil – Caltex Delo 400 MGX SAE 15W40. The oil, produced at the brand’s manufacturing plant in Durban, is described as being specially designed to meet local market requirements.

The oil can be used in a range of diesel engines and has been developed to help reduce exhaust emissions.

It adheres to OEM requirements and performance specifications.

Delo spokesman Leonard Badal says the new oil provides excellent soot dispersal, as well as offering wear protection and sludge control to guard against loss of engine life. It also helps to reduce oil consumption. “The improved formulation benefits new and older diesel engines, thereby helping customers to utilise just one heavy duty engine oil that operates efficiently in both high- and lowsulphur fuel environments,” he says.

According to Fabian Magerman, area sales manager for Southern Africa, the Delo product range includes lubricants and coolants that provide premium protection, performance and bottom-line value for on- and off-road diesel-powered equipment.

“The brand has improved significantly with the introduction of Delo 400 MGX, which is geared towards building confidence in our South African lubricants offering,” he says.

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AUGUST 2016 -

11

NEWS

Volkswagen looks to clean up emissions

Volkswagen’s all-electric concept vehicle… setting benchmarks for environmentally compatible motoring

T

o curb the emission of fine soot particles from its TSI and TSFI direct injection petrol engines, the Volkswagen Group has decided to incorporate particulate filters as standard features for the units. Roll out is scheduled to begin from June next year, the Group anticipating that the number of models equipped with the filters could reach seven million annually by 2022.

“Particulate filters for diesel engines are already proven and established,” said Ulrich Eichhorn, head of Group Research and Development at Volkswagen. “Following increases in efficiency and lower CO2 output, we are now looking to bring about a sustained reduction in the emission levels of our modern petrol engines by fitting GPFs as standard features.”

In a statement, a company spokesman said the addition of Gasoline Particulate Filters (GPFs) was expected to reduce fine soot emissions from the engines by up to 90%.

The German manufacturer, caught in a global diesel emissions scandal, had also revised its emissions technology for oilburners. According to Eichhorn, complex exhaust gas treatment systems would be fitted to diesel-powered models.

The initial units to receive the filters would be the 1,4-litre TSI plant fitted to the new Tiguan and the 2,0-litre TFSI engine fitted to the Audi A5.

Implementation would follow in other models and engine generations.

“Volkswagen is determined to reduce pollutant emissions from diesel vehicles,” he says. “In future, all diesel driven models will be equipped with the latest and most efficient Selective Catalytic Reduction (SCR) technology.”

12 - SEPTEMBER 2016

SCR is an advanced active emissions control system that injects a liquidreductant agent – usually urea – into the exhaust stream via a special catalyst that sets off a chemical reaction that converts nitrogen oxides into nitrogen and water for expulsion through the vehicle’s tailpipe.

In another development that indicates that Volkswagen is serious about cleaning up its emissions act, the Group’s all-electric BUDD-e vehicle was recently named Concept Truck of the Year at the North American Concept Vehicle of the Year Awards.

In making the award, the jury pointed out that the model was environmentally compatible and met vehicle utility requirements for the 21st century in terms of design, styling, materials, technologies and marketability.

www.automobil.co.za

Continental strengthens West African operation

C

ontinental Tyre is looking to expand its retail concept in West Africa by enlisting the aid of Ghanaian partner, Rainbow Motor Workshop and Engineering, in relaunching its ContiPartner brand.

Simultaneously, the company has opened its first warehouse in Ghana, situated at Accra’s Tema Harbour, to facilitate its development in the region. As part of the initial phase of expansion, the Rainbow Motor’s owned ContiPartner store in Accra has received a facelift and enlarged its product ranges. Continental will use the outlet to showcase what the company has to offer within its partnership programme.

Ian Langlands, general sales manager at Continental Tyre SA, says the company prides itself on setting benchmarks in the premium tyre segment and will launch new passenger and commercial

vehicle tyre families into the West African network.

“The logical step for us is to grow strategic partnerships through our ContiPartner operation, allowing us to build relationships with stakeholders and also have a better understanding of the market environment,” he says.

Continental Tyre’s new Ghanaian warehouse at Tema Harbour, Accra

Shaun Uys, managing director of Continental Tyre Sub-Saharan Africa, says the company’s customer focused technologies are at the core of expansion plans. “We are excited to be able to use this platform to showcase our expertise and build relationships in the market,” he maintains.

“We expect delivery within 24 to 48 hours in Ghana and also a significant reduction in time to service surrounding countries,” says Johann Liebenberg, marketing manager for Continental Tire West Africa.

Continental’s new warehouse – which is situated within the Bolloré Africa Logistics facility in Tema Harbour – offers flexible storage capacity and is aimed at facilitating a quick and

efficient distribution service throughout West Africa.

The targeted markets are estimated to be worth in the region of eight million tyres this year, growing to over 12 million in 2025. According to Liebenberg, tyres will be supplied via Continental’s plants in South Africa, Europe, Malaysia and America.

Lots to learn at Automechanika visitors to choose which to attend, the programme has been split into two.

In Hall 2, topics covered will centre on digitalised and networked vehicles – including servicing and repairs.

V

isitors to this month’s Automechanika Frankfurt can look forward to a line-up of lectures, seminars and practical courses unrivalled in terms of both quality and quantity.

According to a statement released by the organisers, the Automechanika Academy programme is now of a size and scope that could easily provide material for several professional qualifications.

To structure the large number of lectures and events, and to make it easier for

www.automobil.co.za

The programme runs on September 13, 14 and 16. In Hall 11 and the adjoining Portalhaus, programmes will cover everyday challenges in modern workshops and will run from September 13 to 17.

Attendance is free of charge and advance registration is not necessary.

Further details of the programme can be found at automechanika.com/events.

should register for one of 12 sessions which will be held daily from 13 to 17 September.

The three-hour sessions will be held in German in the mornings and repeated in English in the afternoons. The programme ranges from calibrating methods, new bonding and joining techniques, damage-cost calculations and digital communication.

All workshops will be held in the Galleria. Participation is free of charge but, due to high demand, visitors are asked to register in advance online at training.automechanika.com.

Body and paint repair specialists who want to roll up their sleeves and combine their visit to the fair with free professional development opportunities

SEPTEMBER 2016 -

13

NEWS

‘VRE a key part of Volvo’s future’

V

olvo Cars Bedfordview has become the first of the brand’s dealerships in South Africa to meet international Volvo Retail Experience (VRE) standards.

“The concept is aimed at bringing all Volvo dealerships across the globe together from a look, feel and experience point-of-view,” says Greg Maruszewski, managing director of Volvo Car South Africa. He maintains that the allencompassing nature of VRE means that Volvo Cars Bedfordview will be more than just a place to buy or service a Volvo.

“Throughout the world VRE dealerships are becoming places people want to visit even if it’s just for a cup of delicious coffee and a chat with a dealer while enjoying the peaceful ambience and Scandinavian design.”

According to a statement issued by the company, striking exterior features – which sees translucent glass paneling complementing distinctive blue Volvo insignia – is a front to an inviting interior

B

ridgestone SA has announced the appointment of Gavin Young as its new CEO following the decision by former incumbent Mike Halforty to take early retirement.

where attention to detail is paid to every element of the environment.

“Light plays a major role, alongside open space and the freedom to move around with ease. Vehicles on the floor are positioned optimally and their arrangement allows any prospective buyer to view the entire Volvo product portfolio in the same room – with the opportunity to experience Swedish luxury too.”

The dealership incorporates a special Fika area – named for the Swedish ritual of taking time out to socialise with a friend or take a break from the fast-paced working world – which features a coffee and food station supported by a bistrostyle bar, a comfortable lounge and a children’s play zone.

“Naturally, VRE extends to the servicing and parts departments as well, and even the workshop environment is designed to be an attractive part of the building where light and clean surfaces help to uplift the environment,” the statement says.

Bruce Allen, dealer principal at Volvo Cars Bedfordview, says the dealership has been built from scratch. “We have been able to fully embrace VRE by ensuring that absolutely every part of the facility meets the expectations set by Volvo Car Group in Sweden,” he says.

According to Maruszewski, other Volvo dealerships will be undergoing extensive VRE upgrades. “The future of Volvo ownership revolves around what we call VPS – Volvo Personal Service – whereby our customers are treated to fast, efficient and personalised service. VRE is a key part of that future,” he says.

Bridgestone family for that dedication,” Bayman said. “Mike will support Gavin in the transition over the next three months.”

Making the announcement, Hakan Bayman, Bridgestone’s senior vicepresident for the CMA region – which includes Russia, Turkey, the Middle East and Africa – paid tribute to Halforty's 19 years of service, many of them spent at the Port Elizabeth and Brits plants.

Young, 57, is a process engineer who has more than 30 years of industrial experience, having held senior leadership roles in South Africa, the United Kingdom and the United States. He is a keen soccer and squash player, and enjoys reading and breakaways to the bush with his family.

“Mike has put his life and soul into the company and the Bridgestone brand, and I thank him on behalf of the global

Bayman said that Young's role would be to engage the entire organisation to drive growth and profitability in the

14 - SEPTEMBER 2016

First in South Africa… Volvo’s VRE dealership in Bedfordview

Gavin Young, new CEO of Bridgestone SA

South African market over the next few years. “I wish Gavin and Mike all the very best in the future,” he concluded.

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Haldex’s HQ in Sweden… the brand’s Board has recommended that it be acquired by ZF

ZF to buy Haldex?

T

he Board of Swedish brake systems supplier Haldex has recommended that shareholders approve a $515-million (about R7-billion) cash offer by ZF Friedrichshafen to buy the company and reject a lower-priced takeover bid made earlier by rival SAF-Holland.

In a statement, a spokesman for Haldex said that ZF’s offer was “clearly superior” to the SAF-Holland bid. The acceptance period commenced on August 22 and will expire on September 30, subject to any extensions.

ZF has said that it plans to invest in Haldex, not cut costs. “It is ZF’s intention to develop and expand Haldex technologically and regionally as part of the worldwide activities of ZF Group, especially in its commercial vehicles business,” a company spokesman said in a statement.

According to ZF’s CEO, Stefan Sommer, Haldex’s brakes and air suspension businesses would fit well into the Netherlands headquartered company’s portfolio. “We believe that our businesses are truly complementary and that a combination will offer unique value for all stakeholders.

“We are confident that we will be able to continue to develop Haldex’s market position under ZF ownership.”

Haldex said in its statement that it had appointed Magnus Johansson as acting chairman to handle negotiations following notification by the chairman, Göran Carlson – one of the largest single shareholders in the company with about 5,7% – to withdraw.

Carlson had recommended that the

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Haldex’s HQ in Sweden… the brand’s Board has recommended that it be acquired by ZF

ZF offer be accepted “unless a higher offer comes along.”

ZF, which supplies technological solutions to the automotive sector, has a global workforce of around 138 300 people in 40 countries. It reported sales of $32,38-billion (about R443-billion) in 2015. By contrast Haldex employs 2 200 people in 18 countries.

According to the Haldex statement, in assessing the merits of the ZF offer, the Board considered risks facing the company, including those associated with a highly competitive automotive market with tight margins.

“Haldex has significantly lower sales than the two largest players in the market. Furthermore, demands from users and regulators for increased safety and improved environmental

and vehicle dynamic performance are leading to new demands on, and requests regarding, the products offered

by Haldex.

“Haldex is therefore dependent on continuously developing new products or improving existing products that meet these demands, to avoid losing market shares to competitors. Because of its relatively small size, Haldex is more exposed to these risks than other larger players in the market.”

It said ZF’s cash offer represented a premium of approximately 34,4% per share compared with Haldex’s volumeweighted average price during the three months prior to the announcement of SAF-Holland’s bid on July 14. The premium was said to be largely in line with recent takeover offers for listed Swedish manufacturing companies.

SEPTEMBER 2016

15

NEWS

In celebration of the fairer sex

I

n celebration of the contributions women have made to South Africa, a number of the country’s automotive related companies initiated projects throughout August to honour members of the fairer sex.

While August 9 was officially designated Women’s Day, Tiger Wheel & Tyre dedicated the month to its female customers, reserving August 20 for a series of free road safety workshops which it held at stores across the country.

The wheel and tyre company teamed up with MasterDrive, Discovery, General Tire, Yokohama, Dermalogica, Wiesenhof and the Isuzu Off-Road Academy to treat female customers to an afternoon of learning, eats, treats and a chance to win a grand prize.

At Volkswagen South Africa, the spotlight fell on women employees who not only contribute to the success of the company but also to the success of their families and the communities in which they live.

For example, Noncedo Johnson operates a 63-ton crane at the automaker’s assembly plant – the only woman to do so – but she is also a mother and a brown belt karate champion.

Nonkqubela Maliza is the company’s longest serving director, while Tarryn Knight, marketing communications manager of Volkswagen Commercial Vehicles, is a wife, a classically trained dancer and a fitness instructor. Adidi Ndjoka-Makake is a product engineer, a mother and a linguist who speaks five languages.

“Madiba said that freedom cannot be achieved unless women have been emancipated from all forms of oppression. We hope our campaign will encourage young women to be doctors, engineers, company directors and crane

drivers,” said Thomas Schaefer, chairman and managing director of Volkswagen South Africa.

Schaefer added: “The skills, jobs, abilities and interests of these women show the diversity and talent of our female employees. They are strong and capable and represent the very best of South African women.”

Petroleum company Engen, too, celebrated Women’s Day by highlighting the role played by female drivers from its Langlaagte, Johannesburg, depot.

Looking to the future, Snyman said he believed that as traditional family roles were redefined, many more women would take up the challenge of transporting dangerous goods.

“Soon we will see more female faces behind the wheels as they drive day and night between depots and service stations. After all, our women drivers have proven themselves and shown that they can compete well with the guys. They embrace our company values and are dedicated to Engen,” he said.

The company’s national transport manager, Llewelyn Snyman, said there was nothing to stop women from making their marks in an environment previously dominated by men.

Palesa Modiselle, 37, agreed. She began driving large rigs for Fast ’n Fresh before joining Engen in 2006. She described her job as challenging and a big responsibility and, though she enjoyed her work, she had her sights set on becoming a transport analyst.

Also from Langlaagte, Tebogo Sekowe completed her Professional Driver Learnership Programme in 2009 and was employed on a permanent basis in 2010.

The 38-year-old said though she worked within a predominantly male team, she enjoyed the solitude offered by life on the road.

Palesa Modiselle, Tebogo Sekowe and Nomagugu Dlamini… achieving in a man’s world

Her colleague Nomagugu Dhlamini, 42, commended the company for its employee benefits such as medical aid, pension and school, car and housing support. “Also, the amazing quality of Engen’s Professional Driver Learnership meant I quickly got a Code 14 and opportunity to drive dangerous goods, which is very challenging and rewarding,” she said.

Crane operator Noncedo Johnson is also karate champion

16 - SEPTEMBER 2016

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Rolls-Royce announces bespoke carbon fibre programme

E

uropean design house Bengala Automotive and US-based Vitesse AuDessus have announced the launch of a bespoke carbon fibre programme for current Rolls-Royce models.

The programme offers carbon fibre options for the Rolls-Royce Phantom, Phantom Coupé, Phantom Drophead Coupé, Wraith, Dawn, and Ghost. The featured material is a compressed carbon matrix that is similar to the Forged Carbon Fibre developed by Lamborghini and Callaway. The use of this material as an aesthetic offering is a first in the automotive industry.

“Forged carbon fibre marks an extraordinary development for the automotive industry. To the casual observer the material serves a purely utilitarian purpose. As a designer I was inspired by the mosaic-like motifs and felt that the aesthetic could be elevated,” says Shoghi Saeidnia, owner of Bengala.

He says he visualised a material with the look of honed granite that would communicate the antithesis of current perceptions – opulent luxury as opposed to ascetic utilitarianism. “The product that Vitesse AuDessus was able to develop exceeded my highest

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expectations; and, when thinking of the appropriate application for the material’s debut as a luxury finish, no pairing was better suited than the handmade rolling masterpieces by Rolls-Royce.”

The programme also offers another first in the industry – forged carbon fibre wheels. Lighter and denser than titanium, forged carbon fibre wheels are said to exhibit a clear engineering advantage over their metal alloy counterparts.

“Forged wheels offer a marked improvement in manufacturing leadtime compared with traditional carbon fibre layup. The availability of fast-curing resins makes it possible to produce a set in minutes, as opposed to days,” says Saeidnia.

Aside from the forged offering and true to Vitesse AuDessus’s bespoke commitment, every removable body panel can be replaced by carbon equivalents that bear a weave, tint and finish specified by the client. For parts attached to the chassis, the brand offers lightweight veneers.

All original parts are removed and stored in their original condition.

The parts come with a five-year warranty against defect or yellowing. OEM quality fit and finish are also guaranteed.

Lead-time for the parts is 3-4 weeks, and 4-6 weeks for the wheels, depending upon specification. Vitesse Audessus ships worldwide.

Each wheel design is tested to meet or exceed manufacturer standards and includes a proprietary coating to protect against heat. “Carbon fibre wheels are the clearest and best performance choice as they dramatically lower unsprung weight. The only failing is in the complicated production process and long manufacturing lead-times. Forged carbon wheels solve this problem and open the doors to a wide range of future applications," says Vitesse AuDessus CEO Stefany Sanchez.

SEPTEMBER 2016 -

17

NEWS

Reducing weight remains top priority for automakers

T

aking weight out of vehicles and engine efficiency programmes continue to top the list of strategies for automakers as the industry looks for ways to meet 2025 Corporate Average Fuel Economy (CAFE) standards.

The recent findings were part of the annual WardsAuto survey, sponsored

by DuPont Automotive. The survey also showed electrification as an increasingly mentioned technology focus by respondents.

“It’s no surprise to learn that lightweighting and the use of light-weighting structural materials continue to top the list of strategies the industry remains focused on,” said Brian Fish, automotive marketing manager for DuPont Performance Materials.

“Light-weighting can be applied to virtually every component and part and we continue to work with the industry to look for opportunities to reduce weight across systems.”

With the mid-term review of the 2025 CAFE Standards scheduled for next year, 87% of respondents to the survey say they expect standards for fuel economy and emissions to become more stringent or remain the same. At the same time, 90% say low fuel prices in combination with slow sales of fuel efficient, lowemissions vehicles, will continue to impact programmes aimed at meeting CAFE regulations.

The 600-plus respondents work for system, component or parts manufacturers, automakers, engine or engine service companies or in automotive-related industries. Most represent engineering, design, manufacturing, marketing, sales and corporate management.

Among the questions in the survey, respondents were asked to identify

18 - SEPTEMBER 2016

technologies that their companies were focusing on to help meet the 2025 standards. A majority of respondents (63%) said they were focused on lightweighting and the use of light-weight structural materials, while nearly half (49%) said they were focused on engine efficiency programmes.

While light-weighting was at the top of the technology focus area, powertrain and chassis development remained the top two vehicle systems that automakers had targeted for lightweighting. Of the respondents, 44% mentioned powertrain and chassis as the primary areas for light-weighting.

The light-duty vehicle CAFE and GHG (greenhouse gas) emissions rate standards require, on an average industry fleet wide basis, 101g/km of CO2 emissions in model year 2025, which would be equivalent to 4,3 litres/100km

if the level were to be achieved solely through improvements in fuel efficiency.

However, the figure is a non-adjusted theoretical laboratory compliance value that does not include special credits for such things as high-efficiency air-conditioning systems and active grille shutters that improve vehicle aerodynamics. Most experts believe 4,3litres/100km will translate to about 7,1 litres/100km in real-world fuel economy.

Respondents indicated that they were moderately confident that the current portfolio of light-weight materials would help the industry meet the looming standards. Most cited were aluminum and multi-material solutions, while advanced composites, engineered plastics and advanced high-strength steel topped choices among second tier suppliers.

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COVER STORY

Converting potholes to power

Aim for bumps in the road – it may help you to save the planet, according to Audi, which is developing a new electromechanical rotary damper that turns kinetic energy in fuel-saving power

A

udi is working on a new suspension system called eROT – short for electromechanical rotary damper – that turns the kinetic energy produced by shock absorbers into usable, fuel-saving power.

The innovative, new technology system – in which horizontally arranged electric motors replace familiar, upright telescopic dampers – is said to not only save fuel, but also to enhance comfort while it recuperates energy from the suspension.

According to a statement released by the company: “In the mobility of the future, the recuperation of energy from a vehicle – including the suspension system – will play an increasingly important role.

“Audi is working on a prototype called eROT, in which electromechanical rotary dampers replace the hydraulic dampers used today for an even more comfortable ride.”

The principle behind eROT is easily explained: “Every pothole, every bump, every curve induces kinetic energy in the car. Today’s dampers absorb this energy, which is lost in the form of heat,” says Stefan Knirsch, the company’s board member for technical development.

He maintains that, with the new electromechanical damper system coupled to a 48-volt electrical sub-system, the energy generated can be put to use. “It also presents us and our customers with entirely new possibilities for adjusting the suspension,” he says.

According to Knirsch, the eROT system responds quickly to even the smallest

22 - SEPTEMBER 2016

undulations in the road and with minimal inertia. As an actively controlled suspension, it is able to adapt ideally to irregularities in the road surface and to the driver’s driving style.

The eROT system enables a second function besides the freely programmable damper characteristic: It can convert the kinetic energy during compression and rebound into electricity.

“A damper characteristic that is virtually freely definable via software increases functional scope. It eliminates the mutual dependence of the rebound and compression strokes that limit conventional hydraulic dampers. With eROT, Audi configures the compression stroke to be comfortably soft without compromising the taut damping of the rebound stroke,” says Knirsch.

To do this, a lever arm absorbs the motion of the wheel carrier. The arm transmits the force of the motion via a series of gears to an electric motor, which converts the energy generated into electricity.

He adds that another advantage of the new damper system is its geometry.

The horizontally arranged electric motors in the rear axle area replace vertical telescopic shock absorbers, which frees up additional space in the luggage compartment. Additionally, the elimination of traditional shock absorber towers at the front of vehicles will allow for more creative styling.

According to Knirsch, testing of the system on German roads has resulted in an average recuperation output of 100 to 150 Watts – from three Watts on a freshly paved freeway to 613 Watts on a rough secondary road.

“Under customer driving conditions, the average recuperation rate corresponds to a CO2 saving of up to three grams per kilometre,” he says.

The new eROT technology is based on a high-output 48-volt electrical system.

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As currently configured, its lithium-ion battery offers an energy capacity of 0,5kW hours and peak output of 13kW. A DC converter connects the 48-volt electrical sub-system to the 12-volt primary electrical system, which includes a high-efficiency output generator.

Initial test results for the eROT technology are promising, thus its use in future Audi production models is certainly plausible. A prerequisite for this is the 48-volt electrical system, which is a central component of Audi’s electrification strategy.

The rise of 48-volt electrical systems

COVER STORY

While Audi’s new suspension system relies on 48-volt power, architecture that generates the additional voltage will be common-place in vehicles from next year

In the next version of the system – planned for 2017 – a 48-volt network will serve as the primary electrical system in what Knirsch describes as “a new Audi model.” The network will feed a high-performance mild hybrid drive and will offer potential fuel savings of up to 0,7 litres/100km.

According to a report in Automotive News which quoted Audi powertrain development engineer Alexander Kruse, traditional damping units can heat up to 1250C on bad country roads.

“Normally the damper shaft moves up and down, and that generates heat and that heat is lost to the environment – and that’s just a straight loss of energy,” he said. “Using a rotational damper generates energy.

“It’s like a drop-link that links a generator of kinetic energy to a generator of electrical energy. We can use that in other parts of the car – in the powertrain, for example – or we can use it in the suspension going the other way, making that electrical generator force work as a damping force on the wheel movement.”

As Automotive News attested: “Though all of the tech is still being tested, if it does what Audi says it does – and advances as fast as traditional suspension did – this could be a big breakthrough for sports cars and hybrids alike, regardless of ever-changing environmental regulations.”

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A

utomotive supplier Delphi reckons the impending switch to 48-volt vehicle architectures will come sooner than expected, predicting that as many as 11-million vehicles equipped with higher-voltage systems will be produced worldwide by 2025.

Executives say moving to 48-volts is the most likely path forward as motor manufacturers seek to meet upcoming fuel-economy and emissions requirements around the world, and they say that the company’s higher-volt technology will be fitted to new cars from as early as next year.

According to a statement, commitments have already been received from two automakers to use new system. Though Delphi hasn’t named the brands, earlier this year at the Consumer Electronics

Show in Las Vegas, the company displayed a Honda Civic 1,6-litre diesel fitted with the architecture.

The high-voltage battery system, which offers considerably more power than a standard 12-volt system, is expected to be used to enhance the fuel economy of mild hybrid powertrains by taking away the strain of running accessories, such as air conditioning.

Delphi officials believe the system will offer 70% of the fuel-economy benefit of higher-voltage mild-hybrid systems at 30% of the cost.

According to Jeff Owens, executive vice president and chief technical officer at Delphi, 48-volt systems are “becoming an extremely attractive lever we think that OEs will be pulling around the

SEPTEMBER 2016 -

23

COVER STORY

world. It will be a lever we think will be pulled very, very hard.”

Mary Gustanski, the company’s vicepresident for engineering and programme management, says the European market will lead the move to 48-volt systems, driven by new emissions requirements that take effect in 2021.

She expects China, which is dealing with severe smog issues, to be close behind though the United States market – where mandated fuel-economy requirements don’t reach their peak until 2025 – will lag slightly. She adds that the Delphi system is scheduled to go into production from next year, though orders are expected to pick up considerably only from 2020.

Other suppliers – including Continental and Valeo – are also developing 48-volt systems but Gustanski says there is unlikely to be a big difference between what component makers have to offer in the initial development phase. She believes that fuel-economy of vehicles fitted with 48-volt systems will improve by as much as 15% – over and above the 15% that comes from downsizing to a direct-injected petrol engine with turbocharging and variable valve timing.

According to her assessment most – if not all – initial 48-volt systems will be designed around the powertrain, leaving the rest of electrically driven components to continue to operate on 12-volt architecture and conventional lead-acid battery technology.

However, once that dual-voltage system is in place, motor manufacturers can begin moving more and more components to 48-volt systems, with prime targets being high power draw items such as coolant pumps, air-conditioning compressors and adjustable suspensions.

“The base 48-volt systems offered by suppliers will be near identical, with e-chargers – electrically powered

24 - SEPTEMBER 2016

turbochargers – and a 10% to 15% gain in fuel economy,” she says. “The next step is where you’ll see differentiation, where we optimise the electrical architecture.”

The future for 48-volt systems is much more near-term in the eyes of Delphi executives than is the fully autonomous car, although the supplier sees strong demand for the technological building blocks ultimately needed for self-driving vehicles over the next few years.

• As part of a big green push announced recently, Mercedes-Benz will launch a new family of efficient petrol-fuelled engines next year and will begin rolling out 48volt systems with it, most likely in its more expensive models.

According to a statement released earlier this year, the company intends to use 48-volt systems to power mild-hybrid functions like energy recuperation (commonly called brake regeneration), engine stop-start and electric boost.

These features will be enabled through either an integrated starter-generator or a belt-driven generator (RSG).

Interestingly, Audi already has 48-volt systems in production – the threecompressor engine used in the SQ7 makes use of an electrically powered supercharger that draws 48 volts, and there’s a new SQ5 diesel model on the horizon that will use a similar setup.

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SEPTEMBER 2015 -

25

In first place… Este Campher, dealer network manager for Mercedes-Benz Cars, accepts the brand’s Gold DSI Award from WesBank’s Simphiwe Nghona (left) and NADA’s Bruce Allen

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FEATURE

Mercedes-Benz tops NADA DSI Awards

In first place… Este Campher, dealer network manager for Mercedes-Benz Cars, accepts the brand’s Gold DSI Award from WesBank’s Simphiwe Nghona (left) and NADA’s Bruce Allen

G

old was struck at the most recent WesBank-sponsored National Automobile Dealers' Association (NADA) Dealer Satisfaction Index awards, with nine brands achieving the honour and Mercedes-Benz coming out tops with score of 83,5%. The overall average of 72,7% was the highest achieved in 14 years.

The survey measured dealers’ perceptions of the brands they represented, including their satisfaction levels with regard to communication and relationships; customer focus; CSI programmes; vehicle range; media support; vehicle distribution; parts availability; goodwill, policy claims and warranties; franchise compliance audits; dealer support and labour rates.

Brands that achieved 75% or more were classified in the top category.

“It is encouraging to see we have regained our number one position,” said Este Campher, dealer network manager

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for Mercedes-Benz Cars. “The overall increase of 3,4% over the score we achieved in 2015 – when we were edged into second position with 80,1% compared with the first place manufacturer’s score of 80,5% – is a clear indication that close collaboration with our dealer network and the significant investment our dealers have put into their operations, are bearing fruit."

and will continue our relentless efforts to enhance their dealings with us – because there is always room for improvement.”

Toyota South Africa was another recipient of a gold award. Calvyn Hamman, senior vice-president for sales and marketing, said the company’s partnership with dealers formed a critical part of its business.

Campher said the insight provided by the results motivated the entire Mercedes-Benz organisation to inspire their respective teams to reach even greater heights.

“An immense amount of effort is put in to ensure our relationship with dealers is solid. Our shared value system means we are constantly communicating and continuously improving. In this spirit, we are proud of our performance this year.”

Volvo Car South Africa also achieved gold at the awards. Aftersales director Jeff Hudson said he was delighted by the achievement. “As the manufacturer, to be rewarded with this honour by our dealer network is really fantastic. We respect that they hold us in high regard

Hamman said numerous interactions with dealers – together with an analysis of the 2015 report – meant Toyota had been able to pinpoint areas of concern and put measures in place to facilitate improvement. “I believe this is the reason for the increase in our score,” he said.

SEPTEMBER 2016

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INSIDE LINE

Taking the pain

Economic recovery may still be a couple of years away but there is no reason to think that South Africa’s motor manufacturers will not come out of the downturn stronger and better prepared.

David Furlonger reports

T

oo often, we live in a private bubble in South Africa. We think that everything that happens here is unique; that no one else is going through what we are going through.

In a globalised world, that’s nonsense, of course. Economies, continents and individual countries are all interlinked.

What happens in one, affects the rest.

We are not alone.

Every so often, however, our solo paranoia is justified. We really do go through something different. Take the current South African new vehicle market, for instance. It is horrible. Sales are expected to drop 12% this year – if we're lucky.

At the start of 2016, almost every commentator predicted a third successive year of market decline but,

30 - SEPTEMBER 2016

when WesBank suggested the drop could be as bad as 12%, some thought the finance house was over-reacting.

No one thinks so now. The way the market has been performing in recent months, 12% could almost be a relief.

And, since no one thinks we’re likely to see recovery until 2018 at the earliest, the pain looks set to continue.

Last time we had a dismal run like this was in the second half of the last decade, when the world was in economic turmoil. Almost every newvehicle market around the globe was in trouble.

This time, the pain is largely selfinflicted. South Africa's political uncertainty, weak rand, rising interest rates, escalating household debt, shrinking private disposable income

and plunging business confidence have holed the market below the water-line.

And no one's sure if the lifeboats are seaworthy.

As conditions have become tougher since 2013, we’ve been assured that two factors will underpin production: consumer demand and exports. Even as sales have declined, the number of people trying to buy vehicles has remained strong.

Banks have reported record numbers of finance applications. But recently, that has changed. Applications have started to fall. According to one banker, it’s almost as if consumers are losing heart.

And then there are exports. They have grown remarkably in the last few years.

Multinational motor companies have been queueing up to take advantage of

www.automobil.co.za

INSIDE LINE

with workers to reduce its 1 800-strong labour force because of lower production.

Admittedly, GMSA is not in the same position as most other major local vehicle manufacturers. Where exports from rival manufacturers are counted in fives of thousands every month, the Port Elizabeth-based company shipped just 3 000 units in the whole of 2015 – and the number won’t be much better, if at all, in 2016. The company’s total production for this year is expected to drop by about 10% to around 40 000 units.

South Africa’s incentives-driven motor industry investment programmes, plus win the benefits of duty-free trade deals with Europe and North America.

So, even if South Africans haven’t been able to buy cars produced here, foreign buyers have been lapping them up. Ford Southern Africa alone boasts 148 export markets for its Ranger bakkie, produced in Pretoria.

The consequence has been that, even as local sales have slowed, total production has grown because of exports. In 2015, the South African motor industry boasted its best production figures ever. Further improvement has been confidently forecast for 2016.

Perhaps gains in production will still happen but, suddenly, confidence isn’t quite as high as it was before.

www.automobil.co.za

Exports will almost certainly set a new record but will they compensate for the downturn in local demand?

Early in August, the National Association of Automobile Manufacturers of South Africa (Naamsa) said full-year export numbers were expected to reach about 351 000 units compared with 333 802 in 2015.

However, that number is 25 000 units down on an earlier forecast – and, since total South African vehicle production was previously projected to beat last year's 615 658 total by just under 20 000 units, it must cast doubt on predictions of a new annual record.

Nowhere is this uncertainty demonstrated more clearly than in the reaction of General Motors South Africa (GMSA), which is negotiating

Nissan South Africa is in a similar predicament but, despite some shorttime working, it appears to have been better prepared for the downturn. The export strategies of both Nissan SA and GMSA are based on increasing sales of bakkies in countries north but, with many potential high-volume SubSaharan markets in the doldrums for reasons of their own, this is not a good time to be dependent on Africa.

The good news amidst all this gloom, of course, is that the situation will get better. Demand is cyclical and markets – both local and export – will improve.

The recovery may still be a couple of years away but there is no reason to think that, once the necessary structural changes are made, South Africa’s motor companies will not come out stronger and better prepared. To think otherwise would be, well, unthinkable.

David Furlonger is the industrial editor of Business Day and Financial Mail

SEPTEMBER 2016 -

31

BUSINESS

'Time is of the essence' When companies are doing badly and the possibility of failure seems imminent, time becomes a critical factor. Ross van Reenen looks at basic strategies necessary to ensure the turnaround does not end up at the undertakers…

W

hen things go wrong in a business, time becomes the most sought-after commodity. Banks and creditors ruthlessly put time limits on the organisation to honour its commitments. Most of the time, there Ross van Reenen is no time when a company is hemorrhaging debt and there is a minimum period left to survive.

It is also of utmost importance for the company to somehow develop a competitive advantage, or profits will become uninspiring and it will become highly vulnerable to any crisis situation.

The most basic key fundamentals in any turnaround situation include: • Being very clear what the strategy is going to be; • Focusing on the core assets and generators of income streams; • Taking control of the immediate crisis and managing it; • Rebuilding stakeholder support; • Fixing the business by cutting costs and reviving sales to ensure revenue; • Resolving issues regarding future funding.

Successful turnarounds must be based on a holistic strategy – one that is both operational and strategic. However, the strategic direction of the company is the most important start. The well-known business model, McKinsey 7s, deals with the following crucial elements of a company:

32 - SEPTEMBER 2016

• Strategy – the plan devised to build a competitive advantage over the competition. This also creates the time required to fix things; • Structure – how is the organisation structured and how quickly can the desired structure be in place?

• Systems – how do employees get the job done?

• Shared values – what are the core values of the organisation?

• Style – all about the leadership adopted; • Staff – their general capabilities; • Skills – competencies of employees.

This model is crucial in a turnaround strategy as these 7s become the compass that guides the organisation. The theory in a business model is always the easy part – the challenging part is the application.

For example, why did the strategy fail to turn around Yahoo, an Internet company, when Google, AOL and others were doing so well?

Yahoo was a mess by the end of 2011 and in July 2012, Marissa Mayer, a superstar from Google became, at 38, the youngest woman to lead a Fortune 500 company. Mayer had been a star executive at Google and was hailed widely as a brilliant hire to reverse the fortunes of the troubled Yahoo.

So, what was the first thing Mayer did?

She changed strategic direction. The big problem at the time, was, that if you asked 10 executives at Yahoo what the company’s strategy was, you would probably get 10 different answers.

When Mayer then decided to sell off Alibaba, with a market cap of $39-billion,

Yahoo's CEO, Marissa Mayer... ran out of time

she sold off Yahoo’s single biggest core asset – which was making huge amounts of money – and therefore left herself and the company vulnerable to the first fundamental of turnaround strategies.

Today, the rest is history. After three years of failure and failed strategies, Yahoo – a previous behemoth worth $125-billion dollars which, in its time, was the equal of Google and Facebook – was sold on July 25 this year to Verizon in the saddest $5-billion deal in tech history. Marissa Mayer, CEO of Yahoo, simply ran out of time …

• Ross van Reenen is an academic, writer and businessman. His bestselling business book From Locker Room to Boardroom – Converting Rugby Talent into Business Success, became an immediate best seller; jumping to Number 1 on Exclusive Books' Bestseller List within 19 days of its release.

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MAY 2016 -

33

RMI ASSOCIATION

Call the professionals Problems with your diesel engine’s fuel injection system? Members of the South African Diesel Fuel Injection Association (SADFIA) are the specialists to call Clients are usually offered on- or off-site troubleshooting and, depending on the make and model of the diesel engine’s fuel injection system, highly specialised on-board diagnostic tools are used to determine faults.

T

he diesel fuel injection industry in South Africa is a small, highly specialised sector of the motor industry whose main function is to repair and service fuel injection systems fitted to diesel engines which power not only passenger vehicles, trucks and earth movers, but also generators and other fixed equipment.

SADFIA has played a key role in the establishment of high standards of workmanship in the industry and was the motivating force behind the formulation of SABS Code 0166 for the reconditioning of diesel fuel pumps.

Members operate fully-equipped pump rooms which are aimed at providing cost-effective service solutions. Generally, technicians are well-trained in both German and Japanese fuel injection equipment which enables the pump rooms to diagnose problems or render repairs or services on most systems.

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Members of SADFIA participate in an inter-industry warranty system regarding repair work and they subscribe to a Code of Ethics and repair classification system which governs warranties. Accredited membership of SADFIA allows proprietors to display the RMI’s Code of Conduct through which the association undertakes to provide products and services at a reasonable price, and to honour both the letter and spirit of any guarantees which accompany the sale of those products or services.

SADFIA fulfils its myriad roles by offering a variety of products and services. These include: • Communicating effectively with national and provincial government authorities, and the SABS, on matters that impact the activities of member businesses; • Networking with local and overseas bodies on various issues with a view to improving conditions and efficiencies in the local market; • Interacting with fellow diesel fuel injection workshop entrepreneurs through regular meetings; • Arranging national inter-associational conventions for purposes of member networking and product/service education; • Driving the development of engine management and fuel systems mechanics and technicians via training and skills programmes;

• Through the RMI, negotiating wage and substantive issues with trade unions; • Offering members to access medical aid and retirement funding.

The association is administered by a National Executive Committee which is served by Regional Executive Committees, an Associational Director, Regional Managers and the RMI’s CEO and support staff.

Through its various committees, director and network of regional and branch offices, SADFIA seeks to: • Render quality services and benefits to all members; • Recognise and affirm the right of the customer to courteous, prompt and honest dealings at fair and reasonable prices; • Provide dynamic input regarding training of the current and future manpower needs within the diesel fuel injection industry; • Ensure high standards of ethics through the accreditation of member businesses.

Dedicated SADFIA website The introduction of the SADFIA website (www.sadfia.org.za) was made possible through the kind assistance of Robert Bosch South Africa and Africa Automotive Aftermarket Solutions, a division of the Imperial Group Limited.

The site is aimed at increasing the association’s value proposition to members. The dedicated, interactive portal allows paid-up members to: • Communicate with other members and suppliers and source parts and information;

www.automobil.co.za

TECHNICAL INSIGHT

Are all fuels the same?

A special report on fuels brought to you by SADFIA, written by CAR magazine’s technical editor, Nicol Louw • Advertise obsolete parts and specialised services; • Access a monthly newsletter; • View supplier specials and technical information; • Share and request technical, repair and related industry information.

Commitment SADFIA is fully committed to the RMI’s vision and also concurs with the overview of the Organisation. The association’s mission is to maintain stability and integrity in the diesel fuel injection industry, ensuring that its members provide excellent service carried out by qualified technicians at a fair and reasonable price.

RMI Business Solutions RMI Business Solutions was established in 2013 as a commercial extension of the Retail Motor Industry Organisation, collectively representing trade- and business products tailor-made for businesses in the motor industry. The products are promoted and sold through a network of approved agents who bear the approval of the RMI and the Financial Services Board.

SADFIA members who have an interest in being introduced to the product offering can contact info@rmibs.co.za.

More information If you would like more information on what SADFIA can offer you, please contact the association’s director, Louis van Huyssteen, at (tel) 051 430 3294, (fax) 051 430 4363 or e-mail louis.vanhuyssteen@rmi.org.za.

The RMI’s website can be accessed at www.rmi.org.za, and SADFIA’s website at www.sadfia.org.za.

www.automobil.co.za

W

hat is your main consideration when deciding where to fill up? Convenient location, brand loyalty, advertising campaigns, or the special additive packages a particular brand of fuel offers?

I’ll bet the latter point is probably the last reason why you turn in at a certain forecourt but, as an informed motorist, it should be high on your priority list. You wouldn’t, for example, use any old oil in your engine. You’d insist on the best, right? The additive packages included in pump fuel are therefore also worthy of your attention.

Base fuel Local refineries produce fuel according to the South African National Standards (SANS); SANS1598 for petrol and SANS 342 for diesel. These represent the minimum specifications to which fuel must comply and are called base fuels.

Base fuels are sold in bulk to oil companies and fuel distributors. It is up to these companies to modify the properties of the fuels through additives (fuel differentiation) before it is offered to the public.

Though running a base fuel in a modern engine is feasible, it is far from ideal. And here’s why…

Additives used in petrol Petrol or gasoline is a collective term for a range of fuels that are used in sparkignition engines. The following additives are typically used.

Detergents These are one of the most popular additives used in advertising campaigns because the general public easily understands the concept of “cleanliness.” Base petrol will result in deposits forming in the intake system and combustion chambers of engines.

The actual forming of deposits is due to a chemical interaction between the fuel, air, lubricating oil, blow by gasses, exhaust-gas recirculation (EGR) and hot metallic surfaces. This is especially true in port-injection engines where injectors spray the fuel on the back of the intake valve during the intake stroke before it enters the combustion chamber.

The international-standard test for measuring inlet-valve deposits (IVD) was developed specifically for this and it entails running an old Mercedes-Benz M102E 2,3-litre, fourcylinder engine on a dyno according to a prescribed cycle for 60 hours.

Before each test, the combustion chambers and intake system are cleaned and the new valves that are used for every test are weighed.

After the test, the valves are weighed again to determine the accumulated mass of the deposits.

A decent detergent additive will reduce the deposit level compared to the base fuel by up to 97% and aid the reliability of an engine.

SEPTEMBER 2016 -

35

TECHNICAL INSIGHT

Friction modifiers Friction modifiers are also known as a petrol fuel-economy additive. The economy benefit compared with a base fuel is achieved by reducing the internal friction of the engine. The moving parts that are in contact with the fuel are coated with a low-friction material (at microscopic level) that results in a measureable (albeit small) fuel-economy benefit.

Friction additives are also beneficial for high-pressure fuel pumps and injectors because their service lives are prolonged because of the reduction in friction.

Combustion improvers The main aim of a combustion-improver additive is to lower the harmful emissions produced by the engine. As incomplete or partial combustion leads to a sharp increase in emissions, it is important to increase the chance of complete combustion by chemically modifying the base fuel.

Corrosion inhibitors The SANS corrosion test for base fuel requires a standard of protection against copper corrosion, but does not account for silver and ferrous metal corrosion. It is up to oil companies to enhance the corrosion-protection quality of base fuel.

This is beneficial to the customer, as components in contact with petrol will last longer.

Fuel stabilisers Petrol quality degrades over time (have you ever smelled stale fuel?) and is measured in gum formation, acid number and oxidation stability. The SANS stability

36 - SEPTEMBER 2016

requirement does not cover fuel stability over prolonged storage periods and, again, oil companies have to expand the fuel’s shelf life with additives. This is especially needed in classic cars or vehicles that keep petrol in the fuel system for a long time.

Additives used in diesel Diesel is a collective term for a range of fuels that are used in compression ignition engines. The following additives are typically used: Detergents Even more critical than petrol, it is important to have good detergent qualities in diesel. The reason is that modern high-pressure injection systems (over 2 000 bar) deliver diesel to the combustion chamber via a number of tiny diameter holes (up to eight with a diameter of about 120 microns) in the injector tip (not visible to the naked eye).

Any deposits in these holes would clog the flow of diesel, disrupt the spray pattern and lower the performance of the engine by up to 6%. A clogged injector also negatively influences fuel economy and emissions.

Cetane-number enhancers The cetane number of diesel denotes its ignition quality; a higher number denotes a greater tendency to ignite.

SANS 342 specifies a minimum number of 45 for diesel in South Africa.

Increasing the cetane number of diesel results in better cold starting, smoother combustion and lower fuel consumption compared with base diesel.

The latter point was proved in Sasol’s Fuel Application centre by running the New European Drive Cycle (NEDC) on a test bed fitted with a modern 1,6 turbodiesel engine.

Anti-foaming Base diesel tends to produce foam when dispensed through a pump nozzle into the tank of a vehicle. This slows down the refuelling process dramatically and may lead to diesel spillage if the fuel pump’s stop mechanism fails to identify the foam passing the nozzle.

SANS 342 unfortunately does not include a foaming specification and only reputable oil companies will add an antifoaming additive to the benefit of the customer.

Corrosion inhibiter Similar to the characteristics of a corrosion inhibiter in petrol, the diesel equivalent fulfils the same role of protecting components from corrosion damage when they come into contact with diesel.

Dyes There are several reasons for adding a dye to a fuel, including brand identification or differentiation of fuel for tax purposes (for example, diesel used for agricultural purposes in Europe is dyed for easy detection). Of course, it is vital that the dye does not impact on the performance of the diesel.

Key take-outs Oil companies spend vast amounts of money and engineering resources to develop a specific additive-fuel package and therefore not all fuels are the same.

www.automobil.co.za

You should be wary of buying fuel with an unknown origin or brand. Worse still is to add your own additive, as this upsets the fine additive balance and might be very costly in the long run.

In fact, two-stroke oil contains metallic compounds that are known to cause injector fouling in modern common rail diesel engines. Engine test results showed significant injector fouling and an associated engine power loss when two-stroke oil was added to diesel. This practise is therefore best avoided.

Two-stroke oil in diesel?

A rumour doing the rounds claims that adding two-stroke oil to diesel improves the lubrication properties of the fuel and prolongs the life of diesel injectors and other fuel system components. Sasol performed testing on diesel containing two-stroke oil at its Fuels Application Centre in Cape Town and showed that there is no measurable increase in lubricity when two-stroke oil is added to diesel.

PETROL

KEEPING THE WHEELS TURNING PERFORMANCE ADDITIVES Detergent Friction

Brand

Sasol’s Fuel Application Centre This state-of-the-art fuel research facility located close to Cape Town opened in June 2009. It consists of six engine test cells that are used to research the impact of Sasol’s range of synthetic and crudeoil-derived fuels on vehicle emissions and performance at sea level.

Combustion Corrosion Fuel

Volatility

MEMBERSHIP ACCREDITATION not only gives members full access to all SADFIA and RMI trade and labour services, but modifier improver inhibiter stabiliser it also facilitates the use of corporate branding within member establishments and on stationery items.adjuster Accreditation ensures your customers peace of mind.

Three of the advanced test cells are fitted with AC dynamometers that can replicate real-world drive cycles. This facility is also used to fine-tune the additive packages specifically for our local environment. Visit www.sasol.com for more info. Thanks to the company for allowing us access to its resources for this article and the accompanying photographs.

Additives in local fuel It is impossible to know the exact additive-package content of fuel brands without chemically analysing samples.

Instead, we perused the marketing material of local fuel brands to see which additives are promoted.

KEEPING THE WHEELS TURNING

BP Ultimate SADFIA membership x is probably onex of the most important x to, through marketing x tools which you’ll ever have access which to make your business grow and build your company’s image. In the intensely competitive modern business

environment, today’s Caltex Techron x motor industry entrepreneur has to be able to rely on professional and efficient support and

infrastructures, which meet and even anticipate his or her needs. SADFIA can fill that role today through a variety of

products and services that include: Engen Primax x x •

x

Networking with various local and overseas bodies various issues Sasol Turbo on x with the view to improving the

local market.

• Interaction with fellow diesel fuel injection Shell V-Power Nitro + entrepreneurs x x meetings. workshop through • SABS representation – Participate in discussions Total Evolutionwith SABS to xensure that member x interests are x protected and that onerous specifications and practices are not unilaterally implemented.

• Differentiation from non-members through Accreditation and the Code of Conduct we promote DIESEL ADDITIVES the prominentPERFORMANCE display of aforementioned insignia.

• Timeous participation in media publications to Detergent Cetane Antienhance the position of RMI/SADFIA in the marketplace. enhancer foamer • National inter association conventions for purposes Brand of member networking and product/service education.

BP Ultimate • Disseminationxof information onxRMI products and services to member network.

Caltex Techron of members andx • Support in thexmediation process consumers in upholding the Code of Conduct.

• Ongoing dissemination of information to members Engen Dynamic x

x through the website and email database.

• Support in industrial relations networking, Sasol TurboDiesel ULS x x

representation at DRC, CCMA and labour court.

• Negotiation of wages and substantive issues with Shell V-Power Nitro + xby the RMI.

Trade Unions • Access to health and retirement funds.

Total Evolution x your feedback • Website: We would love to hear as to your requirements to include member benefit areas such as buy/sell/source, find a member, member discount, commercial collective arrange• This report was originally publishedopportunities, in the September ments, advertising online 2013 news-issue of letters, industry news with archives, feedback and more.

www.automobil.co.za

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Lubricity

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CONSUMER PROTECTION ACT makes the South amongst the best protected African consumer in the world. How does this effect your business?

Just one of the reasons to become a member or participate in the road shows held by SADFIA to support you in industry.

CAR magazine.

It has with permission See our website forbeen more used information.

SEPTEMBER 2016 -

37

RMI UPDATE

RMI seals State vehicle maintenance agreement An agreement signed recently with Transit Solutions regarding the maintenance and repair of State vehicles represents another quality RMI value offering to members – proving that belonging is better business

A

fter months of negotiation, the RMI has announced that it has secured a partnership agreement with Transit Solutions (Pty) Ltd in connection with the maintenance and repair of State vehicles in terms of the RT46 Fleet Management contract.

Transit Solutions is a principal service provider to the State, operating a managed maintenance programme for in excess of 114 000 vehicles, including national, provincial, South African Police Services, Correctional Services and Emergency Medical Response Services units. The five-year tender expires on March 31, 2019.

In providing the service to the State, Transit Solutions and the company’s outsourced partners are required to deliver services through a merchant network. This is great news for RMI member businesses which belong to MIWA, SAMBRA, ERA, SADFIA, TDAFA, ACRA and the MDA which, if not already participating, can register as RT46 merchants.

Though all members registered on the RT46 database will be considered for the maintenance and repair of government vehicles, the work allocation process is dependent on a number of criteria that will be extrapolated from the member’s merchant registration status.

However, Transit Solutions will provide guidance to associations regarding transformation requirements.

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The RMI's CEO, Jakkie Olivier and Transit Solutions' Jackee Khumalo at the signing of the agreement

One of the benefits of the working relationship with Transit Solutions to individual members is that negotiations, value-added activities, dispute resolutions and communications can be driven by RMI associations with a view to ensuring better governance and structure.

For members who have not registered and would like to be on the merchant database, kindly complete the applicable forms by following the internet links below to download the documents, or contact your respective associations to get the forms: 1) https://mail2.rmi.org.za/ReadMore/RT46/Form00076050MerchantApplication.pdf.

2) https://mail2.rmi.org.za/ReadMore/RT46/Form00076144MerchantAgreement.pdf 3) https://mail2.rmi.org.za/ReadMore/RT46/Form00159663RelatedPartyInformation.pdf 4) https://mail2.rmi.org.za/ReadMore/RT46/Form00168214MerchantAddendum.pdf 5) https://mail2.rmi.org.za/ReadMore/RT46/FormBusinessInformation.pdf; Checklist: https://mail2.rmi.org.za/ReadMore/RT46/MerchantChecklist.doc Invoicing Guide: https://mail2.rmi.org.za/ReadMore/RT46/InvoiceProcedures.doc Submissions can be sent to:

Fax: (011) 547 0268/ 0269/ 0270 Email: Merchants.RT46@standardbank.co.za

The agreement with Transit Solutions represents another quality RMI value offering to members – proving that belonging is better business.

www.automobil.co.za

New Executive Director for NAACAM

T

he National Association of Automotive Component and Allied Manufacturers (NAACAM) has announced the appointment of Renai Moothilal as its new Executive Director.

The association has been without a full time leader since last year. Retired Executive Director Roger Pitot has been advising in a part-time capacity.

A University of KwaZulu-Natal trained development economist, Moothilal joins NAACAM after spending the last decade at the Department of Trade and Industry (DTI), most recently as a senior official in the automotive policy unit.

During this time he has been instrumental in managing various policy and programme related issues including the transition from the MIDP to the APDP, institutionalising the Automotive Supply Chain Competitiveness Initiative (ASCCI), as well as laying the groundwork for the development of the country’s Automotive Masterplan for the period 2020 to 2035.

Outside of core policy issues Moothilal has been part of several incentive adjudication committees as well as being an advisor to automotive companies on issues related to investment and production in South Africa. His earlier years at the DTI were spent in the Investment Promotion unit.

He previously worked at the National Treasury as well as at FNB Corporate and the Liberty Group.

Moothilal’s appointment comes at a time when NAACAM is looking to enhance its positioning and role within South Africa’s automotive environment. The association is looking to deliver greater value for members. In welcoming him, NAACAM’s president, Dave Coffey, said “We are truly pleased at Renai’s appointment.

“He brings a unique set of skills and experience and has, in a fairly short

time, made his mark in the automotive manufacturing sector. Renai is respected by its key stakeholders and has a deep and holistic appreciation of the challenges and opportunities faced by different sector players.”

Coffey said the automotive sector as a whole was operating in an always changing, highly competitive and challenging environment and that NAACAM had to adapt and grow accordingly.

“We are entering an exciting phase of operations. Under leadership of the DTI, preparations are firmly underway to develop an Automotive Masterplan and supporting policy framework to optimise growth and economic outcomes from the sector up to 2035. NAACAM wants to ensure that the automotive component supplier base in SA both contributes to and benefits from this growth” To that extent NAACAM aims to work towards a vision that maximises localisation opportunities associated with automotive manufacturing for its members while actively promoting and implementing activities to support the government’s push to increase broadbased black participation in the country’s industrial landscape.

Moothilal noted that “sustainable transformation is an absolute imperative in South Africa’s business environment.

It is logical that the country’s future economic and industrial policy results will, amongst others, be viewed through its ability to deliver an economic landscape that suits its demographic profile.”

pollination between the public and private sectors, and follows international trends in this respect.

“Furthermore, NAACAM is to be commended for committing itself to a path that delivers outcomes which are both economy enriching and developmental in nature,” October said.

NAACAM represents approximately 150 automotive component manufacturing and related service provision companies, spread across more than 220 production sites across South Africa. In 2015, there were approximately 82 000 direct jobs associated with component manufacturing. In the same year companies in this sub-sector invested more than R2,7-billion while generating sales in excess of R82-billion.

According to Coffey, though the role of vehicle assemblers as value chain drivers is undisputed, the components subsector is globally recognised for its ability to generate significant levels of added value, employment, skills development and other cross cutting economic benefits.

Director-General at the DTI, Lionel October, supported Moothilal’s appointment in a role that he considers key in terms of the department’s automotive sector stakeholder framework.

“This is a great example of skills cross-

New Executive Director, Renai Moothilal

www.automobil.co.za

SEPTEMBER 2016

39

RMI UPDATE

Meet SAPRA’s new Acting Director

V

ivian Corinaldi, 57, the new Acting Director at of the South African Petroleum Retailers’ Association (SAPRA), Vivian Corinaldi, taking has 34 years’ charge at SAPRA experience in the petroleum industry, encompassing retail and commercial sales and marketing as well as service station development.

His career began at Mobil, where he worked for seven years in the retail marketing and property development divisions, during which time he won the company’s Retail Salesman of the Year award twice. He commissioned his first retail site in Pretoria in 1983.

Later he joined Sasol Oil, where he worked for almost 27 years. For the major portion of the time he worked in retail sales and marketing and in property development. He also served as retail manager and was operations manager for the retail network from 2010 onwards.

Vivian was instrumental in acquiring and converting the BP networks in Lesotho and Swaziland in 2006/7 to Exel Petroleum, a subsidiary of Sasol Oil. He spent a year in Maputo in 2008 on an expat assignment, during which time he successfully completed a turnaround project in a fuels marketing joint venture company, Petromoc e Sasol.

He also served Sasol Oil in a number of other roles including a host of

various business right-sizing and restructuring projects.

He is well known in the petroleum industry and has had dealings with all the oil companies as well as a large number of service station dealers and property developers in South Africa.

According to Jan Schoeman, COO of the RMI: “Viv has decades of experience in the liquid fuels industry which we believe will aid him in continuing to foster sound relations with other stakeholders in industry, whilst delivering on the key strategic objectives of the Association.”

Corinaldi is based at the RMI’s offices in Randburg. He can be contacted at 082 554 3501 or via e-mail at viv.corinaldi@sapra.co.za.

Members are encouraged to contact Viv, not only to make acquaintance but also to air their views as regards the key issues confronting the retail petroleum industry.

RMI raises funds for Wheel Well Wheel Well’s director, Peggy Mars, described the event as ideal for golfing, having fun and raising funds. She thanked all participants who had helped to raise more than R35 000 on the day.

W

heel Well, in association with Bakwena N1N4, recently held its second Charity Golf Day in perfect winter sunshine at the Irene Country Club – and the RMI was there to help to raise funds for the road safety charity.

40 - SEPTEMBER 2016

The Organisation had a stand at the ninth hole – manned by Brand and Communications Manager Danelle van der Merwe and Attie Serfontein of the RMI’s Northern Region – and also entered a fourball in the competition.

“With your support, we hope to make this an annual event that will bring the road safety community together and raise funds for this important organisation every year. Your participation means a lot to us,” she said.

“Our four-ball had a little bit of luck on their side,” said Danelle. “Tom Hannay and his partner came second in the competition, and Scott Wardle and his partner, third. Tom also won a prize for closest to the hole on a par there.

The RMI was one of a number of organisations and companies that took up Wheel Well’s Hole of Gold challenge, the aim of which was to raise funds by providing fun activities for golfers as they made their way around the course.

“Scott put a R3 500 winning auction bid on what he thought was an empty box – inside was a week for eight people at Pinnacle Point Golf Resort in the Eastern Cape, valued at R20 000. So, all in all it was a good day all round!”

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Joy Oldale wins award

J

oy Oldale, Regional Manager of the RMI in the Western Cape and VTA National Associational Director, was one of five winners selected from 17 finalists in the Businesswomen’s Association Regional Business Achiever Awards which were held recently in Cape Town.

The presentation was made at a gala dinner – sponsored by Sanlam and Glacier by Sanlam – at The Kelvin Grove. Joy won the Association’s Corporate Category.

Robyn Hey, chair of the Businesswomen’s Association (BWA), congratulated the winners who, she

Joy Oldale, centre, with co-winners in the BWA’s Regional Business Achiever Awards held recently in Cape Town

said, had undergone a rigorous, independent judging process.

their own business, or excelling in the corporate world.

“The BWA is honoured to acknowledge the achievement and leadership of South African women in business through our annual Regional Business Achiever Awards. Finalists and winners are women who lead the way, showing great perseverance and skill in running

“Each of them is committed to making a difference and being a role model for other women in business, and also to serving society in empowering others to follow suit.”

The RMI congratulates Joy on her win.

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41

RMI UPDATE

Enterprise development programme extended

Jus

Benefitting from enterprise development… some of the 106 Eastern Cape mechanics who have been selected to take part in the Filpro programme

F

ilpro has launched an automotive enterprise development programme to 106 informal motor mechanics in the Eastern Cape. The company has partnered with the Uitenhage Despatch Development Initiative (UDDI), a socioeconomic development agency based in Nelson Mandela Bay, for the roll out of the programme over a three-year period.

“We are excited that the programme has been introduced,” says Mboneni Magada, Filpro’s general manager. “The mechanics work in the Kwanobuhle,

In training… lectures form part of the Filpro programme

Kwalanga and Despatch townships. We are confident that the training they receive will transform their lives as well as those of the communities which they serve.”

Project coordinators from the company visited the three townships during July to meet the mechanics and conduct a needs assessment. The programme commenced with product training on automotive filters, brake pads, lubricants and spark plugs.

This month sees the start of soft skills training, which includes basic business management and bookkeeping courses.

The Filpro enterprise development programme is largely funded by GUD Filters. Targeted beneficiaries of the programme are divided into three categories – businesses which operate from the side of the road; home-based businesses and those with established structures in need of some interventions.

Similar programmes have already been introduced in Gauteng, KwaZuluNatal, Free State, Mpumalanga, Northern Cape, Western Cape Probe, with and the North West.

its Comp now caters for Asian, Euro

The affordable option

T

Enter the universal alternator, a cost-effective solution produced locally by Probe, an importer, wholesaler and distributor of rotating electrics and batteries for the automotive industry.

But what happens if an older-make vehicle requires a new part, such as the all-important alternator that can come at a ridiculously high price?

“As an essential part of a vehicle, the alternator’s job in the automotive system is two-fold: it supplies the power to run a vehicle’s electronics – including ignition – and it charges the battery,” says Probe’s CEO, Frank Rovelli.

he evolution of the modern automotive system is largely driven by specifics: parts, such as starters, batteries and alternators, are manufactured for particular makes of vehicles and engines.

42 SEPTEMBER 2016

www.automobil.co.za

Workshops for repair specialists

R

epair specialists who attend this year’s Automechanika Frankfurt trade fair – to be held from September 13 to 17 – will be able to choose from 12 professional development workshops which will be offered free of charge.

Organisers have st one look will Messe get Frankfurt you started! worked closely with exhibitors and trade associations to create an interesting programme in which experts from the repair industry will hold three-hour courses in German during the mornings and in English during the afternoons.

Topics include: Repairing Tomorrow’s Technology Today, which incorporates three focal points – damage assessment and cost calculation; working on hybrid and fuel-cell vehicles; and taking account of driver assistance systems when calculating, repairing and re-commissioning damaged vehicles.

Systematic Damage Assessment, which covers the challenges – and amount of extra work – that must be taken into account when assessing and calculating collision damage to modern vehicles.

Calibration of Driver Assistance Systems, which focuses on technology to which Power Package, repair specialists must pay special

plete opean and American trucks.

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Range includes starters, alternators, autoelectrical components, engine cooling fans Having extended its manufacturing and viscous fan clutches and remanufacturing services, Probe New, re-manufactured, genuine and specialises in producing the Lucas approved replacement parts Highest quality approved repair facility universal alternator. “With over 50 years Handle warranties on behalf of OEMs of experience in the automotive industry, sales@probegroup.co.za ourE-Mail: infrastructure, technical capabilities Tel +27 (0) 11 453 0924 Web: www.probegroup.co.za

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attention during the repair process – for example, camera and radar systems.

The programme also includes workshops on new body sealing technology, innovative materials and composites in automobile manufacturing and new repainting techniques.

Companies which have cooperated with Messe Frankfurt to lend their expertise to the workshops include Adam Opel, BASF, Beissbarth, BMW, Car-o-Liner, Dekra, Festool, Henkel, Robert Bosch, Toyota and the Technical Academy of the Automobile Trade (TAK).

and know-how enable us to undertake large-scale local manufacture at our Meadowdale facility,” says Rovelli.

“The Lucas type universal alternator is just the first of many products that Probe will proudly manufacture in South Africa.”

The alternator, an equivalent unit to the American brand Prestolite, is assembled using high quality parts. Each alternator goes through a stringent quality check, which includes testing on a worldrenowned D&V Electronics test bench.

Participation in the courses, all of which will be held in the Galleria between Halls 8, 9 and 10, is free of charge.

“This means that quality is guaranteed and we are able to offer a comprehensive warranty on the product,” says Rovelli.

He adds: “By minimising cost through local assembly, Probe can pass on the cost benefit to the customer.”

According to Rovelli, the Lucas alternator is ideally positioned in the market as a competitive option to some imported units. “It offers great replacement value for a range of vehicles, including the older make of heavy-duty vehicle,” he says.

SEPTEMBER 2016

43

RMI UPDATE

Partinform visits Upington

P

artinform’s trade show held on the 20th July 2016 in Upington was well attended by local companies and the public. Partinform is aimed at providing a platform for local companies which supply quality brands to the SA Automotive aftermarket.

According to Mark Erasmus, the RMI’s Office Administrator for the Free State and Northern Cape Region, the event provided the companies with much needed information and new and improved automotive products. The event also allowed RMI representatives to promote

the organisation to potential new members and assist the existing membership base.

The RMI is proud to be associated with Partinform. The sponsors and the organisers have surely made this an exciting event to attend.

Paying attention... Delegates at Partinform Upington

Louis van Huyssteen, Regional Manager, RMI Bloemfontein, Charmaine Innes, Organiser Partinform along with Mark Erasmus, Office Administrator, RMI Bloemfontein

Mark Erasmus, Office Administrator, RMI Bloemfontein, Eric Walker, Walker Midas Upington and Louis van Huyssteen, Regional Manager, RMI Bloemfontein

Hostesses for the evening representing sponsors Schaeffler, Holts, GUD and Monroe

The most impressive show stand on the evening

Naba Lodge was the perfect venue in Upington, which saw an excellent turnout of guests

44 SEPTEMBER 2016

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www.automobil.co.za

SEPTEMBER 2016

45

TECH TALK

The Diesel story

In the concluding report in his series that celebrates 120 years of motoring history, Jake Venter profiles Rudolf Diesel, the engineer who perfected the art of spark-less ignition

R

udolf Christian Karl Diesel (March 18, 1858 – September 29, 1913) was born in Paris of Bavarian parents.

When he was 12 a war broke out between Germany and France, and the family decided to leave their home.

They moved to London, but sent their son to his uncle in Augsburg, Germany, where he went to school. Three years later he left with top marks and enrolled at an industrial school in Augsburg, where he earned a merit scholarship to the Royal Bavarian Polytechnic of Munich, which later became a university. In January, 1880, he was awarded a doctorate in mechanical engineering.

46 - SEPTEMBER 2016

During his student days Diesel gained practical experience by working at an engineering works in Winterthur, Switzerland, later moving to Paris where he assisted his former Munich thermodynamics professor, Dr Carl von Linde, who was involved in the design and construction of a modern refrigeration and ice plant. One year after joining, Diesel became a director of the plant.

powered by ammonia vapour. During tests, however, the engine exploded and almost killed him.

In 1883 he married Martha Flasche. In 1890 the family moved to Berlin where Diesel managed Von Linde's corporate research and development department. He began to conduct research into thermal efficiency and built a steam engine

He needed a proper workshop to build his engine and approached Heinrich von Buz, a director at MAN, to ask for help. Von Buz offered Diesel employment and research support at a MAN workshop in Augsburg, where he spent a number of happy years.

In the early 1890s, Diesel published a treatise entitled Theory and Construction of a Rational Heat-Engine to Replace the Steam Engine and Combustion Engines Known Today. The work formed the basis for his invention of the diesel engine.

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Rudolf Christian Karl Diesel

Diesel’s favourite subject was thermodynamics – the study of heat and temperature and their relation to energy and work. He knew that 90% of the energy in coal was wasted in steam engines and nearly 80% of the energy in gasoline was wasted in petrol engines.

His treatise developed ideas for a new kind of engine that utilised heat generated at the end of a compression stroke to ignite injected fuel droplets. He calculated that a 20:1 compression ratio would raise the temperature of air from 30˚C to 592˚ C but, for a long time, remained unconvinced that for the few milliseconds that a piston was in the correct position for combustion, the temperature would be high enough to set the fuel alight.

A gift from Von Linde helped him to affirm his theory. The doctor visited Pinang Island in South-East Asia, brought back some fire-pistols, and gave Diesel one as a present. He told Diesel that the inhabitants of the island had been using similar devices to start cooking fires for more than 2 000 years.

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The pistol consisted of a small wooden piston that fitted closely into a bamboo tube. A shaft was attached to the piston and, when repeatedly forced up and down by hand to compress the air in the cylinder, enough heat was generated to ignite tinder that had been placed at the foot of the tube.

The moment he saw how effective the crude device was, Diesel knew his idea was sound. He obtained patents for the design of his engine and started to build a prototype. On August 10, 1893, the unit ran on its own power for the first time.

Diesel spent two more years making improvements and, in 1896, publically demonstrated a prototype that was production-ready. At the time the British press claimed that Herbert Akroyd-Stuart had patented a compression-ignition engine two years earlier, and therefore Diesel’s patent was null and void.

Akroyd-Stuart’s engines employed what is known as a hot bulb that projected out of the side of the combustion chamber. Fuel was sprayed into the bulb, which then had to be heated by an outside flame to get the engine going. After a few revolutions, the bulb was hot enough to ignite the fuel without outside assistance.

Original patent document However, the essential difference between the two engines was low internal pressure – Akroyd-Stuart’s unit utilising only six bar against Diesel’s 34 bar.

Diesel’s first experimental engine was supposed to run on coal dust, but it never fired. Instead, he was forced to use oil to get the engine going, but what he really wanted to utilise was a fuel made from plant material.

At the 1900 World Exhibition in Paris he demonstrated that his engine could run on peanut oil, but the thought of using biofuel was snuffed out by the increasing availability of cheap fossil fuels driven by a rapidly expanding oil industry.

SEPTEMBER 2016

47

Diesel combustion Diesel engines have been refined over the years and have been built for many applications. However, in their initial stages of development they were not suitable for cars or trucks, the problem being bulk associated with air compressors and storage tanks which formed part of the fuel injection system, which would have made the vehicles big and heavy.

A famous quote that has been attributed to Diesel is: “The automobile engine will come, and then I will consider my life’s work complete.” After World War I, Robert Bosch developed a fuel-pressure based injection system for diesel engines that made them suitable for cars and trucks. The first diesel driven models – manufactured by MAN and Benz – appeared in 1922.

Diesel never lived to see his dream come true. On September 29, 1913, he boarded the Dresden, a steamer which was sailing from Antwerp to England.

The next morning he could not be found on board the ship and, 10 days later, a body presumed to be his was recovered in the English Channel.

At the time newspapers printed all sorts of theories related to his death. He may have fallen overboard, or he may have committed suicide. His bed had not been slept in and his overcoat and hat had been found neatly folded beneath an afterdeck railing. He was known to have been suffering from bouts of depression, and he had lost control over some of his patents. He had also lost a lot of money speculating on the stock market.

The most popular theory was that a German agent had pushed him overboard. It was only nine months before the outbreak of World War I, and he was a German engineer on his way to negotiate with the Royal Navy…

Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.

48 - SEPTEMBER 2016

Diesel combustion consists of a lot of smaller separate flames, unlike petrol engine combustion that usually proceeds as a single flame. Sir Harry Ricardo, who spent a lifetime researching combustion, was a superb communicator. He described diesel combustion this way in a lecture he gave to the Royal Society of Arts on November 23, 1931: ‘I am going to take the rather unconventional course of asking you to accompany me, in imagination, inside the cylinder of a diesel engine. Let us imagine ourselves seated comfortably on the top of the piston, at or near the end of the compression stroke.

We are in complete darkness, the atmosphere is a trifle oppressive, for the shade temperature is well over 500˚C – almost a dull red heat – and the density of the air is such that the air inside an average sitting-room would weigh about a ton.

Also, it is very draughty – in fact, the draught is such that, in reality, we should be blown off our perch and hurled about like autumn leaves in a gale. Suddenly, above our heads, a valve opens and a rainstorm of fuel begins to descend. I have called it a rainstorm, but the velocity of droplets approaches much more nearly that of rifle bullets than of raindrops.

For a while nothing startling happens, the rain continues to fall, the darkness remains intense. Then suddenly, away to our right perhaps, a brilliant gleam of light appears, moving swiftly and purposefully; in an instant this is followed by myriad others all around us, some large and some small, until on all sides of us the space is filled with a merry blaze of moving lights.

From time to time the smaller lights wink and go out, while the larger ones develop fiery tails like comets; occasionally these strike the walls, but, being surrounded by an envelope of burning vapour, they merely bounce off like drops of water spilt on a red hot plate.

Right overhead all is darkness still, the rainstorm continues, and the heat is becoming intense; and now we shall notice that a change is taking place. Many of the smaller lights around us have gone out, but new ones are beginning to appear, more overhead, and to form themselves into definite streams shooting rapidly downwards or outwards from the direction of the injector nozzles.

Looking round again we see that the lights around are growing yellower; they no longer move in a definite direction, but appear to be drifting listlessly hither and thither; here and there they are crowding together in dense nebulae, and these are burning now with a sickly, smoky flame, half suffocated for want of oxygen.

Now we are attracted by a dazzle, and looking up we see that what at first was cold rain falling through utter darkness, has given place to a cascade of fire as from a rocket.

For a little while this continues, then ceases abruptly as the fuel valve closes.

Above and all around us are still some lingering fire balls, now trailing long tails of sparks and smoke and wandering aimlessly in search of the last dregs of oxygen which will consume them finally and set their souls at rest. If so, well and good; if not, some unromantic engineer outside will merely grumble that the exhaust is dirty and will set the fuel valve to close a trifle earlier.

So ends the scene, or rather my conception of the scene, and I will ask you to realise that what has taken me nearly five minutes to describe may all be enacted in one five hundredth of a second or even less…’

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AUGUST 2016 -

49

LABOUR

SECONDARY strikes

I

n a previous article emphasis was placed on strikes – a term that most employers are unfortunately too familiar with and a concept that has far-reaching consequences on day to day operations, the economy, effective service delivery and consumers.

Our Constitution and the Labour Relations Act recognise the right of every worker to strike and the recourse of each employer to lock out striking employees. The previous article focused on primary strikes which can either be classified as protected or unprotected, depending on whether or not they have complied with requirements as set out in the Labour Relations Act. In the wake of the recent strike in the petroleum sector, however, it would be prudent to focus on secondary strikes for purposes of this article. This term might be a more unfamiliar than the term, sympathy strikes.

Employees who do not have a direct grievance against an employer – but who strike in sympathy with those who do – have to comply with provisions stipulated in the Labour Relations Act. Douw Breed, a director at Barnard Inc Attorneys, explains

50 - SEPTEMBER 2016

Secondary strikes usually occur when a group of employees who do not have a direct grievance against their employer participate in strike action as a form of support for striking employees – in short, they purely strike out of sympathy.

The industry from which the secondary strike originates will be related to the industry from which the primary strike originated.

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LABOUR Section 66 of the Labour Relations Act regulates the aspects surrounding secondary strikes. It states: 1 In this section "secondary strike" means a strike, or conduct in contemplation or furtherance of a strike, that is in support of a strike by other employees against their employer but does not include a strike in pursuit of a demand that has been referred to a council if the striking employees, employed within the registered scope of that council, have a material interest in that demand.

2 No person may take part in a secondary strike unless: (a) The strike that is to be supported complies with the provisions of Sections 64 and 65; (b) The employer of the employees taking part in the secondary strike or, where appropriate, the employers' organisation of which that employer is a member, has received written notice of the proposed secondary strike at least seven days prior to its commencement; and (c) The nature and extent of the secondary strike is reasonable in relation to the possible direct or indirect effect that the secondary strike may have on the business of the primary employer.

3 Subject to Section 68(2) and (3), a secondary employer may apply to the Labour Court for an interdict to prohibit or limit a secondary strike that contravenes subsection (2).

4 Any person who is a party to proceedings in terms of subsection (3), or the Labour Court, may request the Commission to conduct an urgent investigation to assist the Court to determine whether the requirements of subsection (2)(c) have been met.

5 On receipt of a request made in terms of subsection (4), the Commission must

appoint a suitably qualified person to conduct the investigation, and then submit, as soon as possible, a report to the Labour Court.

6 The Labour Court must take account of the Commission's report in terms of subsection (5) before making an order.

What is of great importance is the fact that no secondary strike may occur if the primary strike does not conform with the requirements set out in Section 64 and 65 of the Labour Relations Act. Section 64 sets out the requirements for a strike to be regarded as a protected strike – to so qualify a dispute is referred and a certificate indicating that the aggrieved employees may embark on a strike is issued by the relevant forum.

Section 65 indicates the limitations on the right to strike, should the dispute fall within one of the limitations the employees will not be permitted to strike over the issue at hand which, in turn, has the effect that no sympathy strike can exist.

Should the employees elect to participate in a sympathy strike where the primary strike does not conform to Sections 64 and 65 of the Labour Relations Act, those employees will not enjoy any protection for their participation in the strike.

Should the strike be unprotected in nature, no sympathy strike will be permitted as the strike does not conform to Section 64 which, if adhered to, renders a strike protected.

The Labour Court may then request the Commission to conduct an urgent investigation to establish whether the requirements of section 66 (2) (c) have been met. The Labour Court must in turn take the Commission’s report before making an order.

Employees contemplating embarking on a sympathy strike need to give written notice of their intention to embark on the sympathy strike at least seven days prior to the strike. The notice may be given to either the employer or, if applicable, to the employers’ organisation of the employer.

As example, the recent strike in the petroleum sector would find relevance in the context of a secondary strike in the event that petrol attendants elect to embark on a secondary strike out of sympathy for colleagues in petroleum industry. These two industries are closely related in the nature of operations.

Strikes, whether protected, unprotected, primary or secondary, wreak havoc not only in a specific industry but also on the economy as a whole, on day to day business operations and on the lives of consumers.

Knowing different forms of strikes will enable employers to deal with each situation as effectively as possible.

Strikes will be around for years to come and will be a common phenomenon in the lives of employers and employees.

The recourse available to the secondary employer enables the secondary employer to approach the Labour Court for an interdict, prohibiting or limiting the secondary strike action which does not comply with Section 64 and 65 of the Labour Relations Act.

Douw Breed (BCom (NWU) LLB (NWU)) is a director at Barnard Incorporated Attorneys www.automobil.co.za

SEPTEMBER 2016 -

51

LEGAL EAGLE

Enforcement of CCMA awards An award issued by the CCMA may now be directly presented to a sheriff for execution if payment is not made in terms thereof, says Gerhard Truter, a director at Barnard Inc Attorneys

E

mployees seeking relief at the CCMA will most certainly be relieved by the judgement of the Labour Appeal Court in the matter of the CCMA vs MBS TRANSPORT CC and Five Others [J1807/2015] / [JA94/2015] delivered on 28 June 2016. In this judgement the court confirms that an award issued by the CCMA may be directly presented to a sheriff for execution if payment is not made in terms thereof.

Prior to the above a party was required to approach the Labour Court to issue a writ in terms of a CCMA award.

The CCMA was thus not regarded as competent to issue a writ in terms of such an award. These cumbersome enforcement provisions of the Act were often exploited by employers who simply refrained from making payment in terms of such awards until the writ was eventually issued.

Section 143 Section 143(1) of the Act determines

52 SEPTEMBER 2016

that an arbitration award issued by a commissioner is final and binding and it may be enforced as if it were an order of the Labour Court in respect of which a writ has been issued, unless it is an advisory arbitration award.

If a party fails to comply with an arbitration award that orders the performance of an act, other than the payment of an amount of money, any other party to the award may, without a further order, enforce it by way of contempt proceedings instituted in the Labour Court. (S143(4)) An arbitration award in terms of which a party is required to pay an amount of money must be treated for the purpose of enforcing or executing that award as if it were an order of the Magistrate’s Court. (S143(5)) The legislature considered the confusing nature of the Act and endeavoured to clarify the position with the enactment of the Labour Relations Amendment Act 2014 which came into effect on

1 January 2015. To provide even further clarity an explanatory memorandum was tabled with the Labour Relations Bill, 2012, in the following terms: ‘Amendments to this section are intended to further streamline the mechanisms for enforcing arbitration awards of the commission and to make these mechanisms more effective and accessible. Firstly, an award which has been certified by the Commission can be presented to the Deputy-Sheriff for execution if payment is not made. This removes the need for the current practice in terms of which parties have a writ issued by the Labour Court…’

The legislature’s intention to uplift the constraints for the issuing of writs was made abundantly clear with the various amendments to section 143. The procedure created by the amendments

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to section 143 makes it easier, inexpensive, effective and accessible for a person to enforce a certified arbitration award.

The practical effect of the amended sections 143(1) and 143(3) which the Court in the MBS matter confirmed, is that a certified arbitration award for the payment of an amount of money may be enforced without the need for a writ to be issued by any court or the CCMA. Practical Implications Section 145(3) of the Act clearly provides that the Labour Court may stay the enforcement of an award pending its decision and this position was confirmed

by the learned judge who was of the opinion that the section has no qualification or limitation. Therefore, the enforcement of a certified award by the CCMA may be stayed by the Labour Court pending its decision.

What does this mean for employers who intend to stay such a process pending an appeal of an award by the CCMA? Employers who dread an unfavourable award should immediately prepare their urgent application to stay execution steps in terms of section 145(3) of the Act as there may be less warning with the newly adopted condensed execution process.

Gerhard Truter is a director at Barnard Incorporated Attorneys in Centurion. RMI4law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4law, call 0861 668 677.

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BUSINESS MANAGEMENT

Secrets of systems

Without systems your business is managing you, says Fergus Ferguson

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ystems might be the most misunderstood area of business.

Yet we know it is paramount to the success of any organisation. Having the right systems in place empowers you with the confidence that your business will run smoothly in your absence.

Systems will dramatically increase your business’s productivity and profits.

Our definition of a business is ‘a commercial, profitable enterprise that works without its owner.’ To many of you this might make little to no sense, but think about it – why build a job for yourself when you can build an income stream that keeps on growing whether you’re there or not?

Wouldn’t you like to say to your staff: “You guys look after things, I am taking a month off!” Simply put, systems allow you to extricate yourself from the business so you can strategise further growth, pursue other ventures or just play golf.

The three biggest blockages we’ve discovered whilst coaching businesses to success are: • Working overtime. Or to put it another way – your business isn’t working, you are. You might not feel

comfortable assigning new tasks to employees, which means you retain everything about the business and ’how to do it’ in your head. You believe you can do the job quicker and more efficiently.

• Business growth will be limited if the business owner personally has to train every new employee.

Without systems, most owners would most likely not remember what they set out to teach an employee or what they last taught him or her.

• You did not start a business to become a slave to it. There's only so much you can add to your to-do list before your time and your health runs out. Just because you think you can do the job quicker and more efficiently does not mean you have to.

If you recognise yourself in one or more of these scenarios, then it’s safe to assume you work ‘IN’ your business and not ‘ON’ your business.

So what is the solution? It’s simple – systems, learning to divide and trust.

At ActionCOACH, we teach a principle called divide to multiply, which in essence is systemising your business.

There’s much to be said about the Industrial Age. Business owners had to introduce systems to cope with the speed with which their factories began producing products. Henry Ford discovered that if he introduced a systemised production line in his factory, he could produce cars at a much faster than normal rate.

Industrialists knew the power of the systems approach and they made good use of it.

The four major areas to systemise your business are: • People and education systems; • Operations and distribution systems; • Improvement testing and measuring systems; • IT systems and technology.

Over the years we have assisted many hundreds of small to medium-sized businesses to introduce systems and the results have been nothing short of stunning. So, start by identifying which areas to systemise and you will ultimately transform your business from a job to a growing enterprise that makes you a leader in your field.

All you need are the right systems to run your business and the right people to run your systems.

Fergus Ferguson is a franchisee of the global business coaching company, ActionCOACH. He is an accredited business coach who assists business owners to significantly grow their profits and develop their entrepreneurial skills. To find out more about business coaching or to receive a complimentary consult and a business health check, call 082 650 0867 or visit actioncoach.com/fergusferguson

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FAQs

RMI UPDATE

Answers by experts to questions received by the RMI regarding the merSETA learning programmess agreement Q: Could you please explain what the disciplinary procedure entails?

A: The first step is to appeal to the SETA and thereafter to the CCMA. merSETA are to be informed when the company suspends a learner. A Request for learning programme termination should then be submitted to the merSETA for authorisation. Termination of agreement may only be approved by the merSETA and only then the learner can leave his/ her employment. The company or skills development provider are to provide all the credits or log books that the learners have accumulated.

Q: Could you please explain when the learning programme agreement can be terminated?

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A: Termination of agreement needs to be by written agreement between the employer and the learner as per section. The agreements can be terminated where the employer or the learner has requested on good cause. The agreement terminates when it lapses.

Q: Could you please explain the Appeals Procedures relating to the termination of the agreement?

A: Appeals should be as per the Labour Relations Act and Internal process are to be followed first. If the learner/employer feel aggrieved against the decision of the merSETA they may appeal to the CCMA within 30 days of the decision.

Q: Is it possible to transfer the learning programme agreement?

A: The learner, skills development provider or the employer can request for the learning programme agreement transfer. This is dependant on whether the prospective company is workplace approved, the prospective skills development provider is accredited and all parties must be in agreement to the transfer. merSETA will register the agreement and inform parties accordingly and learners will only move to the new employer on notification of the merSETA .merSETA may approve the transfer even if the other party is not in agreement subject to evaluation of the motivation.

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SEPTEMBER 2016

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RMI UPDATE

Ensuring fairness Managing HIV/AIDS in your workplace

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uccessful HIV/AIDS management programmes have a number of common components. The last article discussed the benefits of a step-by-step action plan. In this article, we look at the need for fair and transparent HIV/AIDS-related policies.

There are numerous elements in HIV/ AIDS strategic plans that relate to policy and procedures within the organisation: 1. Policy and practice audit: It’s essential to undertake a comprehensive review of all workplace policies, employment practices and employment conditions to ensure compliance with existing employment legislation.

The types of policies to be reviewed could include the company’s HIV/ AIDS workplace policy, dismissal policy, disciplinary code and/or procedure, grievance policy, leave policy, recruitment and selection policy, and more. Some policies may simply require an update, but in some cases a more extensive review and re-drafting may be required.

2. Development or review of HIV/AIDS policy: The underlying principle in HIV/AIDS policy development is to ensure that there is no arbitrary or unfair discrimination in the workplace relating to HIV status.

Principles to be followed in policy development include:

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• Participation and scrutiny of a draft policy; • Ensuring that the policy is comprehensive enough to withstand scrutiny and practical application; • Alignment with existing legislation; • The policy must be supported and consistently applied by management.

3. Communication of policy: The finalised HIV/AIDS policy needs to be communicated to all employees.

There are a number of opportunities to ensure that as many employees as possible have exposure to this document: • Make employees aware of the policy at the company induction; • Display the HIV/AIDS policy prominently in the workplace; • Insert an overview of the policy in employees’ payslips; • Supervisors and managers should be familiar enough with the HIV/AIDS policy to be able to discuss it with employees.

4. Regular review and compliance with legislation: A formal review of the HIV/ AIDS policy as well as all other policies that are linked to it should take place on a regular basis. This is to ensure that the policies remain compliant with: • The changing legislative and constitutional landscape; • The industry-specific HIV/AIDS codes, practices and recommendations.

Contact Redpeg for accredited HIV/AIDS workplace training, consulting and research. tim@redpeg.co.za | 0861 REDPEG or (011) 794 5173 | www.redpeg.co.za)

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MEMBERUPDATE

The RMI welcomes these new businesses into membership Member's Trading Name City / Town A ACS Truck & Car Autobody Pretoria Aim Auto Investments Pietermaritzburg Alignment Masters Newcastle Andrew T Construction Soshanguve Autofanatics Motorsport Ficksburg Auto-Mate Service Centre Greenstone Edenvale Auto-Torque Pietermaritzburg Auto Works Vaal Vanderbijlpark B Bidvest McCarthy Pre-Owned Port Elizabeth Port Elizabeth BMT Auto Randburg Botex Panelbeaters Piet Retief Boucher’s Auto Body Repairers Despatch BS Tech Witbank C C Chris Towing Mokopane Car Care Clinic Bryanston Randburg Car Inn Auto Services Durban Car Service City Boksburg Boksburg Car Service City Craighall Johannesburg Commando Tyres Sasolburg E Enkay Automotive Engineering Germiston Era Fitment Centre Thohoyandou Extreme Repair Solutions Johannesburg G G-Force Tyres Durban GCF Forklifts & Truck Centre Rustenburg Gcwemaci Auto Repairs Umhlanga H Harties Auto Tyre Hartebeespoort Hartley Bande Mokopane Hi-Q Ballito Ballito Hi-Q Clairwood Durban Hi-Q East Coast Tyres Pinetown Hi-Q Middestad Polokwane

BENEFITS OF BELONGING With a membership of 7 500, the RMI provides a very effective collective voice that gives members considerable clout in negotiating better trading conditions. As the lead voice in the motor industry, the RMI is a member-driven organisation that constantly seeks solutions to concerns raised by members in the day-to-day running of their businesses.

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- SEPTEMBER 2016

Member's Trading Name Hi-Q Midstream Hi-Q Roodepoort Hi-Q Umhlanga Ridge Hi-Q Vredenburg Hibiscus Propshaft & Cv Engineering I Isiqalo Auto Centre J Jodash’s Auto & Tractors JRW Autocare Juleo’s Tyres K KLT Automotive & Tubular Products L Lat Wiel Bande Lobzen Trading & Projects M M & M Kasi Auto Engineering Mahle Aftermarket Mega Tyres Million Auto Repairs Motor Tech Motorcity MR & RM Auto Services MWA Auto Spa N N4 Wheel And Tyre Nigel Panel & Paint O Oranje Depot Outline Autobody P Phillip’s Auto Q-Fit Hartenbos Q Quik Fitt Service Centre

City / Town Centurion Roodepoort Umhlanga Vredenburg Marburg Durban Umzinto Boksburg Howick Hammanskraal Marble Hall Kwamhlanga Benoni Port Elizabeth Belfast Nigel Ladysmith Johannesburg Pretoria Pretoria Ngodwana Nigel Kakamas Germiston Cape Town Hartenbos Matatiele

Member's Trading Name R RD Winners Auto Centre Remmone Trading Enterprise Ritz Tyres Rob’s Tyres Centurion-Dunlop S Samuel’s Service Centre Schencktech Diesel Selex Auto Workshop Silverton Radiators Knysna Simunye Clutch & Brake Smith Capital Equipment Solly’s Spares & Accessories Spectra Tyres Naboomspruit Spectra Tyres Pretoria Speedy Tyre & Fitment SS Wheels Standard Auto Repairs Star Services At Wheel & Cars Supa Quick Bizana Supa Quick Joubertina Supa Quick Lichtenburg North T The Garage Motor Service Turbo Tyres Turning Point Motors Tyre Xpress Tyre Station U Unbridled Trading V Vallei Auto Herstewerke Village Service Station VL Diesel Services W Westside Trading

City / Town Ixopo Rustenburg Bela-Bela Centurion Durban Wellington Edenvale Knysna Port Shepstone Germiston Springs Mookgophong Pretoria Cape Town Benoni Durban Bethlehem Bizana Joubertina Lichtenburg Polokwane Polokwane Kabokweni Tzaneen Polokwane Pietermaritzburg Worcester Durbanville Kimberley Pretoria

ADVERTISERS AUTOMOBIL - SEPTEMBER 2016 EDITION CLIENTS

CONTACT WEBSITE PAGE

Aer O Cure 011 444 6454 www.aerocure.co.za OBC Africa Automotive Aftermarket Solutions 011 879 6000 www.aaas.co.za 19 & 49 Automotive Industry Development Centre 012 564 5078 www.aidc.co.za 57 Audi Parts 0860 434 838 www.audi.co.za 54 & 55

Autocosmos Biz (Electrolog) 012 327 6210 www.autocosmos.co.za 64 Caelex Chris Auto Electrical 012 327 5404 www.caelex.co.za 41 Ctrack 012 450 2222 www.ctrack.co./za 9 Executive Transmissions 011 609 4484 www.executivetransmissions.co.za 11 Kigima Auto Electrical Training Centre 012 327 2586 www.kigima.co.za 53 Moto Health Care 0861 000 300 www.motohealthcare.co.za 20 & 21 Probe Corporation 011 453 0924 www.probegroup.co.za 61 Robert Bosch 011 651 9600 www.bosch.co.za 33 Sammitr NA www.sammitr.co.za 58 Silver Falcon Trading 083 628 2288 www.hurricaneauto.co.za 62 & 63 Snap On Africa 0861 762766 www.snapon.co.za IBC Torre Parts & Components 011 627 2500 www.textarsa.co.za 45 Toyota South Africa Motors (Pty) Ltd 011 809 9111 www.toyota.co.za IFC & 3 Trysome Automotive 011 823 5650 www.trysome.co.za 59 Volkswagen Parts 0860 434 737 www.vw.co.za 28 & 29 Willard Batteries 011 706 7184 www.willard.co.za 25 Wolf Oil www.wolfoil.com 4 ZF Services South Africa 011 457 0000 www.zfsa.co.za 26

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TALKING POINT

OEM turns to tequila In an effort to reduce the weight of its vehicles, Ford is looking to the plant from which tequila is made to help it lower energy consumption

F

ord has teamed up with tequila producer Jose Cuervo to explore the use of the agave plant in creating sustainable bioplastics for use in vehicles. The motor manufacturer is looking to develop components such as wiring harnesses, storage bins and items for heating, ventilation and airconditioning (HVAC) units.

Initial assessments suggest the agave plant holds promise due to its durability and aesthetic qualities. Success in developing a sustainable composite would be aimed at reducing vehicle weight and lowering energy consumption.

“The main aim is to reduce our impact on the environment,” says Debbie Mielewski, senior technical leader in Ford’s sustainability research department.

She says the new material will utilise fibres discarded from the agave plant after it has been processed for tequila production, thereby reducing the company’s dependence on petrochemicals in favour of biomaterials.

The growth cycle of the agave plant is a minimum seven-year process. Once harvested, the heart of the plant is

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roasted before being ground so that its juices can be extracted for distillation.

Jose Cuervo uses a portion of the remaining fibres as compost for its farms, and local artisans make crafts and agave paper from the remnants.

Now, as part of the tequila manufacturer’s broader sustainability plan, it is looking at new ways to use the plant’s discarded fibres. In the view of Sonia Espinola, director of heritage for the Cuervo Foundation, the collaboration has brought together two great companies to develop innovative, earth-conscious materials.

The tequila brand is family-owned and operated. Founded in 1795, it has been making tequila for more than 220 years using recipes that have been handed down from generation to generation.

In a statement, Ford says the initiative represents the latest example of the company’s innovative approach to product and environmental stewardship through the use of biomaterials.

“Ford began researching the use of sustainable materials in its vehicles in 2000. Today, we use eight sustainable-

based materials in our vehicles including soy foam, castor oil, wheat straw, kenaf fibre, cellulose, wood, coconut fibre and rice hulls,” says Mielewski.

According to the United Nations Environment Programme, five billion metric tons of agricultural biomass waste is produced annually. A by-product of agriculture, the supply of materials is abundant and often under utilised. The materials can be obtained at relatively low cost, and can help manufacturers to offset the use of glass-fibre and talc for more sustainable, lightweight products.

Ford already has experience using fibres, following production of a prototype glove box made from sisal, a fibre from a specific type of agave. It was through this project that the company decided to go a step further by using sustainable sourcing of Jose Cuervo’s remnant material.

“There is about 181kg of plastic in a typical car,” says Mielewski. “Our job is to find the right place for a green composite like this to help to reduce our carbon footprint. It is work that I’m really proud of, and it could have broad impact across numerous industries.”

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