New road for Merc engines
MIWA IN PERSPECTIVE
Benefitting from consumer trends
The automotive year in review
MOBILITY AS A SERVICE
The next step in transport options
Vehicle Testing Association
VTA: Focusing on road safety
RMI UPDATE: RMI CONDUCTS SUCCESSFUL ROUND OF REGIONAL AND ASSOCIATIONAL
AGMS; SA'S www.automobil.co.za TOP MOTORING JOURNALISTS CROWNED; MISA'S WOMAN OF THE YEAR; MUTUALDECEMBER/JANUARY 2016/2017 AND FEDERAL WINS A SAMBRA AWARD; PRE-CHRISTMAS SAFETY CHECK; PARTINFORM VISITS KZN
22 -DECEMBER/JANUARY NOVEMBER 2014 2016/2017
CONTENTS – DECEMBER/JANUARY 2016/2017 COLUMNS DECEMBER/JANUARY 2016/2017
Driver’s Seat: Jakkie Olivier, CEO of the RMI Editor’s Letter: Wynter Murdoch 9 Hot Stuff: New product showcase 60 Frequently Asked Questions: Answers from experts 66 Tailpiece: The Gremlin Test
New road for Merc engines
MIWA IN PERSPECTIVE
Benefitting from consumer trends
The automotive year in review
MOBILITY AS A SERVICE
The next step in transport options TA
Vehicle Testing Association
VTA: Focusing on road safety
RMI UPDATE: RMI CONDUCTS SUCCESSFUL ROUND OF REGIONAL AND ASSOCIATIONAL
AGMS; SA'S www.automobil.co.za TOP MOTORING JOURNALISTS CROWNED; MISA'S WOMAN OF THE YEAR; MUTUALDECEMBER/JANUARY 2016/2017 AND FEDERAL WINSA SAMBRA AWARD; PRE-CHRISTMAS SAFETY CHECK; PARTINFORM VISITS KZN
Editor: Wynter Murdoch email@example.com
Focusing on road safety
Sub-editor: Peggy Lendrum firstname.lastname@example.org Design and layout: Heinz Bawa email@example.com Reporters: Ryan de Smidt firstname.lastname@example.org
Publisher: Richard Lendrum email@example.com Production: Mabel Ramafoko firstname.lastname@example.org Advertising Sales Executives: Enver Lawangi, Greg Surgeon, email@example.com firstname.lastname@example.org Future Publishing (Pty) Ltd 247 Jan Smuts Avenue, Dunkeld West, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 803-2040
Mobility as a service
How the automotive industry is gearing itself for the next step in transport options based on sustainability, safety, low pollution levels and congestion-free roads
24 26 28
RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Denice Grobler Shamika Singh, Danelle Van Der Merwe, Marwaan Davids, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman
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).
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.
Next step in tech convenience
Volvo is testing a smartphone app that aims to make the lives of its customers easier
2016 in review
Half full or half empty? Are the contents of the motor industry glass rising or disappearing inexorably through a hole in the bottom?
Look back, then look forward
It is the end of the year – again. Businesses tend to always plan at the beginning of the year – but what about looking back at the past year?
Measuring fuel consumption
How much fuel does a vehicle really use? Getting the same answer twice is not easy, says Jake Venter
New road for Merc engines
Matters of resignation
What is POPI
Customer satisfaction and social media
Ford introduces the gremlin test
Automobil is available to purchase from the publishers at R25 a copy.
Successful round of AGMs; Spotlight on associations, SA’s top motoring journalists crowned; MISA’s Woman of the Year; Mutual & Federal scores hat-trick in SAMBRA Awards; What a win for M&P; Partinform visits KZN
COVER STORY 20
Reuben Van Niekerk email@example.com
Joy Oldale, director of the Vehicle Testing Association (VTA), reports on the fifth Global Road Safety Partnership (GRSP) Road Safety event to be held on the continent since 2012
From next year, Mercedes-Benz plans to introduce a new family of engines across its passenger car line-up – among them four-and six-cylinder units that incorporate 48-volt electrical systems When dealing with resignations and concomitant issues, it is critical to consult the Basic Conditions of Employment Act or the relevant Bargaining Council’s Main Agreement, says Douw Breed, a director at Barnard Incorporated Attorneys With enactment looming of the Protection of Personal Information (POPI) Act, Barnard Incorporated Attorneys offers an easy, five-step guide to ensure compliance
Sometimes customer complaints are deserved, and at other times not. Regardless, it is important to address all types of complaints in a way that mitigates relational damage, says Fergus Ferguson Ford employees are tasked with secretly planting wrong and faulty parts onto the assembly line as part of a process to ensure all new vehicles built at a plant in Valencia meet rigorous quality standards
DECEMBER/JANUARY 2016/2017 -
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 â€“ 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 8 of this issue for all the contact details
New road for Merc engines
MIWA IN PERSPECTIVE
Benefitting from consumer trends
The automotive year in review
MOBILITY AS A SERVICE
The next step in transport options TA
Vehicle Testing Association
VTA: Focusing on road safety
RMI UPDATE: RMI CONDUCTS SUCCESSFUL ROUND OF REGIONAL AND ASSOCIATIONAL
AGMS; SA'S www.automobil.co.za TOP MOTORING JOURNALISTS CROWNED; MISA'S WOMAN OF THE YEAR; MUTUALDECEMBER/JANUARY 2016/2017 AND FEDERAL WINSA SAMBRA AWARD; PRE-CHRISTMAS SAFETY CHECK; PARTINFORM VISITS KZN
4 DECEMBER/JANUARY 2016/2017
Toasting success! With 2016 drawing to a close, Jakkie Olivier, CEO of the RMI, looks back on what has been the Organisationâ€™s most successful financial year since 1999, marked by significant achievements in terms of a rise in membership, a strengthening of relationships with stakeholders and the securing of a three-year wage agreement with labour unions Of even more significance is the duration of the agreement, which has been secured for three years and will expire only on August 31, 2019. This achievement, with its much needed peace and stability over the next three years, alone makes 2016 a remarkable year because businesses can now plan for 2017 and beyond with more certainty.
his past year has taken us on a challenging journey in many respects and will be remembered as meaningful in general terms. This issue of Automobil is the last for 2016 and it is only appropriate to reflect on our many successes. First, the RMI as the single largest representative body in the automotive aftermarket has not only increased its membership to be even more representative on behalf of its members and the industry, it has also recorded the best audited financial results since 1999. We achieved this despite a struggling economy and a roller coaster political environment.
Second, the RMI, without doubt, strengthened its relationship with all stakeholders and, in the process, not only improved its value proposition to the RMI members, but once again established the credibility and recognition it has earned over many years with Government, big business, stakeholders and consumers. Lastly, and perhaps more importantly, a couple of days ago the RMI successfully concluded an agreement with labour unions after long and protracted negotiations. The significance of this agreement is that it has been achieved without industrial action or work interruption in the industry whatsoever.
The end of 2016 is fast approaching and we would like to thank all of our members for their loyal support during the year. Our gratitude goes to all RMI Committee Members, RMI Council and Board representatives and staff for serving the industry so diligently and selflessly over the past 12 months. I would also like to say thank you to all our stakeholders, service providers and clients who have assisted in making the RMI successful. May your 2016 festive season be a blessed one; filled with happiness, good health and safe travel. Until 2017 â€“ be good and stay safe.
For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300
DECEMBER/JANUARY 2016/2017 -
CONSTITUENT ASSOCIATIONS Who do they represent and what are their objectives?
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.
6 - DECEMBER/JANUARY 2016/2017
Closing one year, opening another
he close of one year and the opening of another always brings with it reflections of the past and predictions for the future. Given that standpoint, reports in this edition of Automobil – a combined December/January publication – tend to mirror that approach. One of the most significant highlights is CEO Jakkie Olivier’s Driver’s Seat column, which not only looks at the RMI’s major achievements in its most successful financial year since 1999, but also at the implications of the Organisation’s latest wage agreement with labour unions, which was recently signed after months of protracted negotiation. And, if you want to know what was discussed at a host of Annual General Meetings held by the RMI’s regional and
associational committees at centres around South Africa over the past three months, our extensive report beginning on P34 will help to bring you up to date. Further, in his Inside Line column on P26, David Furlonger debates the state of South Africa’s motor industry and its prospects for the future, while the magazine’s cover story, which begins on P20, looks at trends that are developing globally as auto manufacturers and their associates gear up for the next step in transport options based on sustainability, safety, low pollution levels and congestionfree roads. On that tack, Jake Venter (P46) examines fuel consumption issues and
engine downsizing while, still on the tech front, Mercedes-Benz (P50) announces what it considers to be the engine family for the future – a range of four-, six- and eight-cylinder in-line units that incorporate 48-volt electrical systems and which are due to be introduced globally over the coming year. As we move into the holiday period, I’d like to take this opportunity to wish you and your families a restful and peaceful festive season. Please note that Automobil’s first edition of 2017 will be published in February. Wynter Murdoch Editor
SPEAK TO US RMI EXECUTIVES
hief Executive Officer: C Jakkie Olivier firstname.lastname@example.org Chief Operations Officer & Human Resources Director: Jan Schoeman email@example.com Financial Director: Renee Coetsee firstname.lastname@example.org Company Secretary: Gary McCraw email@example.com
RMI BOARD MEMBERS
Jeánne Esterhuizen (President) Barry Canning (Vice-President) Ferose Oaten Jakkie Olivier Bruce Allen Lindsay Bouchier Les McMaster
SAPRA Viv Corinaldi firstname.lastname@example.org TDAFA, ACRA Hedley Judd email@example.com TRAINING, TRANSFORMATION & ENTERPRISE DEVELOPMENT Marwaan Davids firstname.lastname@example.org
SADFIA Louis van Huyssteen email@example.com ERA Pieter Niemand firstname.lastname@example.org NAZA Julian Pillay email@example.com
MPEA, MIMA Erwin Stroebel firstname.lastname@example.org MDA Jeff Molefe email@example.com
RMI HEAD RMI HEADOFFICE OFFICE
RMI4Sure 0860-104-202 RMI4Law 0861-668-677 RMI4BEE 0861-764-233 RMI4OHS 012-998-7139
Danelle van der Merwe Brand and Communication Manager firstname.lastname@example.org Neo Bokaba Transformation Manager email@example.com
Q&S, SAVABA Vacant
011-789-2542 | www.rmi.org.za
MIWA Vishal Premlall firstname.lastname@example.org
Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194
NADA Gary McCraw email@example.com VTA Joy Oldale firstname.lastname@example.org
RMI REGIONAL OFFICES Highveld: Jeff Molefe email@example.com Randburg: 011-886-6300
SAMBRA Edwin Martin firstname.lastname@example.org
8 - MAY 2015
Vehicle Testing Association
Northern: Pieter Niemand email@example.com Pretoria: 012-348-9311 KwaZulu-Natal: Julian Pillay firstname.lastname@example.org Durban: 031-266-7031 Eastern Cape/Border: Erwin Stroebel email@example.com Port Elizabeth: 041-364-0070 Western Cape: Joy Oldale firstname.lastname@example.org Cape Town: 021-939-9440 Free State/Northern Cape: Louis van Huyssteen email@example.com Bloemfontein: 051-430-3294
Aston Martin spreads its wings Aston Martin has unveiled a limited edition set of winged badges to commemorate the performance of its racing V8 Vantage GTEs in the 2016 FIA World Endurance Championship (WEC). Only 250 sets of the framed emblems will be sold worldwide, mounted on a white background. To ensure their authenticity, each set has been individually numbered. Incorporating the national colours of the countries in which Aston Martin Racing has competed during the 2016 season, the badges have been handcrafted by Birmingham jeweler Vaughtons. The collectibles are available via Aston Martin’s online shop, accessible at www. astonmartin.com
Delving into Porsche’s pedigree Within US comedian Jerry Seinfeld’s world-renowned Porsche collection resides an unassuming yet extraordinary piece of automotive history: the Porsche Gmünd coupe 356/2-040.
Tuning in Festool has introduced the Sysrock, a batterypowered radio – described as suitable for workshops – that is said to deliver high-quality sound. The compact, lightweight device has a Bluetooth interface with an integrated, hands-free function, making it compatible with a wide range of smartphones and other electronic devices. Features include a digital signal processor and dynamic range control, plus a specially designed resonance chamber which is said to deliver excellent quality sound through a powerful 2,5-inch neodymium loudspeaker. The radio’s housing is described as sturdy with an impact resistant and non-slip rubber surround. The design looks modern and incorporates an easy to read LCD display. A mains adapter is supplied. Equipped with Bluetooth as well as an auxiliary input, the Sysrock can be paired with MP3 players, tablets or smartphones. For more information log on to www.festool-powertools.co.za
Captured exclusively for this book in a series of evocative portraits by acclaimed automotive photographer Michael Furman, the Gmünd’s unsullied originality conveys with startling immediacy the combination of artistry, innovation and determination that went into its improbable creation. This cornerstone of the Seinfeld collection serves as the inspiration for Porsche: Origin of the Species (Bentley Publishers), an in-depth exploration by the eminent automotive historian, Karl Ludvigsen, into the specific influences and circumstances that brought forth the first Porsche-badged sports cars. The book is on sale at www.amazon.com
On a charge Battery Sense is a Bluetooth-enabled battery monitor that can track the health of vehicle batteries, helping to prevent frustrating breakdowns and maximising battery performance. The product, recently introduced to South Africa, has been designed by CTek, a Swedish company that specialises in the care and maintenance of vehicle batteries. Easy to install, data is delivered to your smartphone via a free-to-download app. Battery Sense allows several vehicle batteries to be monitored simultaneously, which means no more worrying about charge levels or when to charge, especially for batteries not used daily. The device carries a two-year warranty and is suitable for all 12-volt car and motorcycle batteries. For more information log on to www.ctek.co.za
DECEMBER/JANUARY 2016/2017 -
10 DECEMBER/JANUARY 2016/2017
SEPTEMBER 2016 -
FIA honours Northern Cape community
year before next October’s World Land Speed Record attempt at Hakskeen Pan in the Northern Cape, the Federation Internationale de l’Automobile (FIA) has presented certificates of recognition to over 300 members of the province’s Mier community for their work in removing 16 000 tons of rock from the dry lake bed. Covering 22-million square metres, the area is the largest piece of land ever cleared by hand for a motorsports activity. “The community’s work has been a vital part of building the world’s fastest race track and means that next year Andy Green can drive Bloodhound SSC at the venue without worrying about a single stray rock damaging the car,” says a statement issued by the project’s organisers. Green joined Bloodhound’s chief engineer, Mark Chapman, and the Premier of the Northern Cape, Sylvia Lucas, to formally acknowledge the Mier community’s achievements. Dennis Dean, President of the Land Speed Records Commission at the FIA, presented the certificates. In an address, Dean said: “It is only when you stand on the vast expanse of Hakskeen Pan and see the piles of rock stacked at the side of the track that you understand the scale of the work done. It is an epic achievement.” Lucas said youth development and education had played a fundamental role in the community’s involvement with the Bloodhound project. “The excitement of building a vehicle capable of breaking the 1 600km/h record is serving as inspiration to an entire generation of
12 - DECEMBER/JANUARY 2016/2017
Members of the Mier community at the presentation ceremony to honour their work in preparing Hakskeen Pan for October’s World Land Speed Record attempt by Andy Green in Bloodhound SSC
youngsters and reigniting an interest in science and technology,” she said. In a recorded message, the President of the FIA, Jean Todt, thanked the community for their work and dedication in readying Hakskeen Pan for the land speed attempt. “The work you have done has made a real contribution to this endeavour and I’m sure, should it prove to be successful, the credit will be shared with you as an essential part of the Project.”
Work to prepare the track – which measures 19km long and 500 metres wide – began in 2010. “Hakskeen Pan is as important to the process of setting a record as the engineering in the car. Without this place, without the support of the local community and Northern Cape Government, we would have nowhere to run Bloodhound SSC,” said Green. The project’s Chief Engineer, Mark Chapman, said he was delighted with the condition of the track and in awe at the achievement of the community who created it.
New Golf revealed
olkswagen has taken the wraps off its updated Golf range, revealing a mildly refreshed design and a significant amount of engineering work under the vehicle’s skin. The exterior’s visual upgrades extend to front and rear bumpers, front wings as well as headlight and all-LED tail-light designs. Lower specification variants are equipped with halogen headlights and LED daytime running lights, while the previous model’s Xenon system has been replaced by full LED technology in higherspecification models. The GTI gets a red flash that extends from the grille to inside the headlight lenses, while the rear of the Golf R features a new twin exhaust system that integrates with the re-sculpted bumper. The update brings a new 1,5-litre, petrol-fuelled, four-cylinder engine to the line-up. In Evo TSI form it produces 110kW and features Active Cylinder Management for improved efficiency and lower emissions.
Though Volkswagen has retained the choice of six speed manual or six-speed DSG dualclutch transmission, a new seven-speed DSG auto ’box will gradually be introduced across the range to provide tighter, sportier ratios and improved efficiency. The updates continue on the inside, headlined by a 9,2-inch central display screen for access to a new generation of extended applications and services. Gesture control forms part of the system. Following in the wheel tracks of sister brand Audi, Volkswagen has introduced
fully digital virtual cockpits, with instruments configured to offer a range of vehicle and navigational data. Semi-automated driving features are also part of the update, notably a Traffic Jam Assistant – said to be the first of its kind in the segment – that autonomously accelerates, steers and brakes the car in high traffic situations up to 60km/h. Exact engine and specification details are expected to be confirmed next year closer to the car’s South African launch.
Brembo expands manufacturing operations Italian brake systems manufacturer Brembo, which is looking to become a global supplier of brake components, has opened a new plant in Mexico.
vehicles built by American, European and Asian manufacturers.
Bombassei said the plant – which took less than a year to build – would be capable of producing up to two million aluminum brake calipers annually for a variety of
In making the announcement, Bombassei reiterated that Brembo’s expanding presence in Mexico marked a significant turning point for the company’s operations globally.
Also, he revealed that Brembo had acquired an adjoining site where it planned to establish an iron Company president Alberto Bombassei said foundry which would produce cast iron discs. the factory – established in Escobedo at a cost of $36-million (about R486-million) Bombassei said the foundry – which represented an – would employ more than 500 people additional investment of $93-million (about R1,2when fully operational. It was expected to billion) – was expected to be operational by the end generate about $100-million (about R135- of next year and would have a smelting capacity of million) in annual sales. about 100 000 tons annually.
T-Systems extends BMW partnership
MW South Africa and T-Systems SA have agreed to continue to develop the automaker’s ConnectedDrive service. Since 2014, all BMW models have been fitted with an integrated SIM card embedded within the car’s chassis, enabling the ConnectedDrive suite of services. Since July this year, the SIM card has been linked to T-Systems Connected Car platform.
Michael Frans, Head of Automotive at T-Systems
Michael Frans, Head of Automotive at T-Systems, says reaffirmation of the partnership opens up an array of opportunities for future innovations. “Globally speaking, the number of connected cars on the road is forecast to
grow from about 23 million today, to 152 million by 2020. “For this to become a reality, automotive players are partnering with technology firms to provide the underlying infrastructure.” BMW SA’s ConnectedDrive Manager, Claycia Johnson, describes the partnership as a fusion of expertise in the areas of in-car technology platforms and automotive innovation. “In 2002, we launched our first connected car. We have since delivered 8,5 million connected vehicles to customers worldwide. We want to continue evolving and begin offering an even faster network to local customers.”
Authorities raid SEMA show
aw enforcement authorities in the United States last month raided the booths of two Chinese companies at the annual Specialty Equipment Market Association (SEMA) convention in Las Vegas. They seized parts, displays and communications equipment after allegations of copyright infringement. A day later the booths of six other Chinese aftermarket parts manufacturers were shut down at the nearby Automotive Aftermarket Products Expo (AAPEX). The raids took place after a US manufacturer of aftermarket Jeep parts, Omix-Ada, had lodged an urgent application in a Nevada court alleging that the Chinese companies were displaying and selling copies of several of its patented aftermarket parts, which included replacement bonnet latches, mountings for light assemblies and front grilles for Jeep’s Wrangler. Judge Gloria Navarro issued a preliminary injunction and seizure order. The Chinese companies were identified as Changzhou Jiulong Auto Lamps; Guangzhou Electronic Technology; Maxgrand Limited; Sanmak
14 - DECEMBER/JANUARY 2016/2017
Robots rule VW roost
Lighting; Shenzen Unisun Technology and Unity 4WD Accessories. Omix-ADA said in a statement that, in bringing its court order, it had worked with SEMA’s and AAPEX’s management teams, following guidelines designed to help combat counterfeit products at the shows. “Counterfeit products and infringement of copyrights is in direct violation of SEMA and AAPEX policies and the managing parties have taken appropriate action to remove violating exhibitors from the premises,” the statement said. The statement added that Omix-ADA was also pursuing litigation involving several companies that it alleged were selling infringing product through various online retailers. “The company views counterfeiting and infringement as a serious and widespread problem in the aftermarket industry and one that can be combatted through proper legal channels, and we encourage other members of the aftermarket industry to follow a similar path.”
ajor investments in Volkswagen’s Uitenhage factory have seen the addition of 320 new robots. The estimated R4,5billion investment announced last year has been allocated to the upgrade and refurbishment of production facilities and quality (R3-billion), development of local supplier capacity (R1,5billion) as well as development and training of employees (R29-million). The 320 new Kuka robots installed at the body shop form an integral part of the Modular Transverse Matrix (MQB) platform which will be used in the Uitenhage factory. The new robots are energy-efficient and faster. Additionally, they have advanced sensory capabilities, which improve safety. The technology currently being installed at the plant will enable Volkswagen to produce more than one model on one single assembly line.
Vehicle Scissor Lift VLS 5235 PN: 1 697 000 935
New Lift Range From Bosch
In or above ground vehicle scissor lift. Loading capacity 4 tons, 4.3m length platform, 1.85m max. lifting height. High safety: Mechanical and hydraulic safety device for first & second lifting platform. Suitable for wheel alignment usage. Power supply: 220v/50Hz Small Scissor Lift VLS 3330H PN: 1 697 000 928 Low profile scissor lift. Loading capacity 3 tons, 1.85 meters maximum lifting height.
VLH 2240H Two Post Lift PN: 1 697 000 950
Rated loading capacity 4.0 tons Asymmetrical posts and clear floor design Electronic safety lock release device Standard four 3-stage extension arms Standard SUV extension support sleeve Power supply: 220v/50hz Also available with rated loading capacity 5.0 tons Model VLH 2245. PN: 1 697 000 980 For more information contact: Nhlanhla Maseko firstname.lastname@example.org
NOVEMBER 2016 -
hroughout the world, the MAHLE brand name stands for expertise in and on combustion engines. Founded in 1920 in the southern German town of Stuttgart, MAHLE quickly established a good name for itself – initially as an innovative piston forge, and subsequently as the driving force behind components such as aluminium engine blocks and assembled camshafts or environmentally friendly oil filter solutions. With its three business units – Engine Systems and Components, Filtration and Engine Peripherals – as well as Thermal Management, MAHLE ranks among the top three automotive systems
All the Ipsos winners A udi won the annual Ipsos Passenger Car Product Survey with seven gold awards ahead of Toyota on five, Volkswagen, Mercedes-Benz and Nissan (two golds each) and Volvo (one gold). Audi took the honours as the Best Luxury Car Brand Overall, as well as Best Top Hatch (A1 and A3 Sportback), Best Medium Sedan (A4 and A5 Sportback), Best Top Sedan (A3) and Best Sports Coupé (A5 coupé). Toyota won its five Passenger Car gold awards for the Best Small Hatch (Yaris), Best Top Hatch (Auris), Best Small Sedan (Corolla Quest), Best New Volume Passenger Car (Corolla Quest) and Best Volume Passenger Car Brand. Volkswagen won two golds for Best Small Sedan (Polo) and Best New Volume Passenger Car model (Up!) while Nissan’s two golds came from the Best Entry Level
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Car (Micra) and Best Volume Passenger Car Brand overall. In addition, the Nissan Micra, with an index of 49, was also the highest-rated passenger car overall in the extensive survey.
Mercedes-Benz collected gold for the Best Top Executive (E-Class) and Best MultiPurpose Vehicle (B-Class). Volvo earned gold for the Best New Luxury Passenger Car (V40), while the General Motors SA plant in Port Elizabeth won gold for the Best Passenger Car Plant in the country in terms of the quality of its products. Volvo also won two gold awards in the Recreational Vehicle Category, being for Best Small Recreational Vehicle (XC60) and Best New Recreational Vehicle (XC60), while Audi won gold in the Small RV category (Q5). Volkswagen took gold for the Best Large Recreational Vehicle (Touareg). The Touareg, with an index score of 22, was also the vehicle with the highest product quality rating overall.
Toyota made a virtual clean sweep of gold awards in the Light Commercial Vehicle Category with seven, including the Best Light Commercial Vehicle Plant gold award for the quality of its products from its factory in Prospecton. The Hilux collected golds for the Best Petrol Single Cab, Best Diesel Single Cab and Best Diesel Double Cab. The model was also scored as the best One-Ton Single Cab Commercial Vehicle Brand and the Best Double Cab Commercial Vehicle Brand, while Toyota was the Best Light Commercial Vehicle Brand overall. The best quality rating for LCVs overall was achieved by the Hilux single cab petrol with an index figure of 37. Nissan won gold for the Best Half-Ton Pick-up (NP200) and the Best New Light Commercial Vehicle (Hardbody petrol single cab). GMSA took gold for the Best Diesel Single Cab with its Isuzu KB.
Training the unemployed
olkswagen Group South Africa (VWSA) and the Office of the Premier of the Eastern Cape have jointly initiated a programme intended to train 100 unemployed people annually in the Nelson Mandela Bay Metro. In December last year a R20-million funding agreement was signed to support VWSA’s training initiatives. The funding is being used to provide training for specialist skills such as advanced PLC and robotics, vehicle electronics, applications and product development. The fund will also be utilised to upgrade training facilities and equipment.
The programme is linked to four unit standards within the Automotive Manufacturing Qualification and gives trainees 28 credits towards a future qualification. “We are delighted to partner with the Office of the Premier of the Eastern Cape to train some of the unemployed people in our metro. Training and the upskilling is vitally important to give people a chance to enter the formal job market,” said Thomas Schaefer, Chairman and Managing Director: Volkswagen Group South Africa.
Training is coordinated by VWSA’s Learning Academy under project leader, Simphelo Peter, who says trainees undergo a 13-week programme that covers fundamental skills such as the correct use of hand tools and lean manufacturing. Thereafter, they take part in on the job production training.
analyst, Sundar Shankarnarayanan. He says the entry of cheap imports into South Africa’s independent aftermarket affects the reputation of all participants.
The study points out that the lack of standardisation and control over imports hinders competitive manufacturing of filters locally, since shipped filters are priced 20% to 30% lower than local filters and original equipment (OE) filters.
In terms of sales volumes, Shankarnarayanan says air filters (34,5%) and oil filters (42,4%) are rated the bestselling products in the local aftermarket. Fuel filters account for a further 17,8% of total filter sales, with cabin filters logging 5,2% percent.
“The drop in filter prices encourages commodity pricing in the domestic market. This is a significant challenge as local manufacturers account for 80% of the market with imported brands holding the remaining 20%,” says a statement issued by Frost & Sullivan’s mobility research
He adds that OEMs are fitting filters in passenger vehicles in greater numbers, raising the penetration rate of filters. He says demand is expected to reach 50,3 million units by 2022, of which passenger vehicles will account for 93% and commercial vehicles, the remainder.
omputer chip maker Intel Corp is entering the fast-growing self-drive automotive market. Speaking at the recent Los Angeles Auto Show, CEO Brian Krzanich said the company would invest more than $250-million (about R3,5-billion) over the next two years to develop technology for autonomously driven vehicles. In a keynote speech, Krzanich said Intel would focus on vision processing, 5G connectivity, cloud computing, machine learning and cyber security. His announcement followed an earlier statement which said the company would team up with BMW and Israeli technology specialist MobilEye to develop a self-drive system for BMW’s iNext, billed as the replacement flagship sedan in the auto manufacturer’s line-up.
Samsung to buy Harmon
Cheap imports flood filter aftermarket outh Africa’s automotive filters aftermarket is being flooded with lowquality, low-cost imports, according to a recent study by research house Frost & Sullivan.
Intel enters self-drive race
amsung Electronics has agreed to pay $8-billion (about R114-billion) for in-car audio and technology specialist Harman International Industries. Observers believe the move is aimed at bolstering Samsung’s presence in the connected- and autonomousvehicle space. The deal, which is expected to be concluded in mid-2017, will position Samsung as a rival to other technology companies such as Apple and Google in the automotive sphere. About 65% of Harman’s sales this year have been to the auto industry. While the company has become legendary for developing high-end audio equipment, in recent years its focus has shifted to in-car electronic systems. Observers say the deal will give Samsung access to the in-car head unit, where Apple and Google have already staked claims through Apple CarPlay and Android Auto. It will also serve to accelerate the Korean company’s plans to introduce 5G LTE connectivity, currently planned to go into a trial stage in 2018.
New NEC for SAVRALA
he South African Vehicle and Leasing Association (SAVRALA) has announced the appointment of a new executive council headed by Bidvest’s Winston Guriah. Outgoing president Marc Corcoran (Avis Budget), will take the role of vice-president. Additional NEC members include Pieter Jacobs (Imperial/Europcar), Benita van Eyk (Hertz), Theshnee Sinan (ABSA) and Denise Fairhurst (Eqstra). Guriah described the new NEC as a good mix of solid industry experience and fresh thinking. The appointment of the NEC followed the successful hosting of the industry’s Manufacturer of the Year Award (MOTY), which saw Volkswagen South Africa walk away with top honours for the seventh year in a row.
Goodyear representatives celebrate their third consecutive Top Employer certification. From left to right: Guillaume Delacour, Tascha Olivier, Ria Bronkhorst, Sally Leach, Nonkosi Dyantyi and Wojtek Janaszek
Top employer certification for Goodyear South Africa
oodyear South Africa has been awarded certification as one of the country’s top employers after winning certification from the global Top Employers Institute for three consecutive years. The annual international research undertaken by the institute recognises leading employers around the world – those which provide excellent employee conditions, nurture and develop talent throughout all levels of the organisation, and which strive to continuously optimise employment practices. In a statement, Samantha Crous, regional director for the Top Employers Institute, said Goodyear offered a wide range of creative initiatives in the workplace, from secondary benefits and working conditions to performance-management programmes
that were well thought out and aligned with the company’s culture. “Optimal employee conditions ensure that people can develop personally and professionally. Our comprehensive research concluded that Goodyear South Africa provides an outstanding employment environment,” she said. The company’s managing director, JeanJacques Wiroth, said public recognition by the Top Employer Institute strengthened Goodyear’s ability to attract, develop and retain top talent. “The award is testament of the years of work that have gone into continuously improving our employee value proposition. We strive to invest in our people to constantly develop their skills,” he said.
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Mobility as a service
How the automotive industry is gearing itself for the next step in transport options based on sustainability, safety, low pollution levels and congestion-free roads. Siegfried Mortkowitz reports
he question of whether autonomous cars will ever become reality appears to have been resolved – almost all of the 850 mobility experts who attended last month’s TU-Automotive Europe conference in Munich, Germany, believe that it will.
today. The development was put into sharp focus during a presentation entitled Changing the Face of the Modern City, by Michael Hurwitz, director of Transport Innovation at Transport for London (TFL).
The message from the conference was clear: Companies which operate in the broad and expanding automobile ecosystem are now focusing on how rapidly evolving digital technology will change how individuals journey from one place to another.
He said London’s population was currently the highest it had ever been – 8,8-million people – which was expected to grow to 10-million by 2030. “To put that in a transport context, every week the population of London grows by the passenger capacity of two double-decker buses,” he said.
The phrase heard almost everywhere at the conference was “mobility as a service,” a vision of a future world in which vehicles will be just one link in a broad network of transport options based on sustainability, safety, low pollution and congestion-free roads.
“However, we have constrained road space. Cars, trucks and buses currently make 31 million journeys on our road networks every day – but there is less and less space available to them.”
In a sense, it seems as if recent technological innovations in mobility have been created in direct response to an on-going demographic shift that is altering the way we live. According to a forecast by the UN’s Population Division cited by several presenters at the conference, 66% of the world’s population will be living in urban centres by the year 2050, compared to 30% in 1950 and 54% in 2014. Unless there is a radical transformation of how people move around, this means that in future, cities will be far more congested and polluted than they are
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Hurwitz said 55% of all of motorised trips was by private car, of which about 60% involved one occupant. “We want to know how we can make that more efficient,” he said. In an earlier presentation, Michael Knudsen, a strategist at BMW iVentures, offered additional data on how private car ownership affected urban congestion and pollution. “In high-density areas of a city, at peak time about 30% of traffic comprises motorists looking for a parking space.” In addition, he said a great deal of urban parking was “wasted” because, on average, people in cities used their cars
for little more than an hour a day, “so the car is parked for 23 hours a day.” Or, as Christoph Weigler, general manager of Uber Germany, put it: “In many cities around the world, 30% of the landmass is dedicated to storing hunks of steel that are not in use.” According to Hurwitz, one way the city of London was attempting to reduce the number of cars on its roads was “to bear down on car ownership” by creating a mobility hierarchy that put private car use at the bottom of the list and walking and cycling at the top. He noted, however, that the rise of ridesharing services such as Uber had not reduced the number of cars in the city centre. “If you look at central London, the number of private cars is stable. Though we’ve seen a reduction in individually driven cars, that’s been replaced by the rise of minicabs, Uber and private-hire vehicles. The fact is we don’t have less traffic.” Weigler suggested that carpooling could be a solution to reducing inner-city traffic congestion. Uber launched its Uber Pool service more than a year ago and it is now active in 35 cities around the globe. “Already, 20% of global Uber trips are pool trips and, in some West Coast cities in the US, about half of the trips are pool trips, the attraction being the low cost of sharing a ride,” he said. Other positive
consequences included a reduction in congestion and lower pollution levels. Hurwitz said autonomous cars would be an important part of London’s future mobility scheme – but he did not regard the advent of shared, self-drive vehicles as a cure-all. “If it will take people out of private cars but not out of buses, if it will make people travel in a more efficient way, in a lower-emission way, those are positive opportunities. However, we need to shape regulations and policy to make sure it happens in that way.” Hurwitz noted that Volvo Group would be testing its autonomous prototypes in London next year and that the city was open to other carmakers to test their technology on its roads. “What we’re doing at the moment is engaging constructively with anyone who wants to work on our streets.
carmaker’s Centre of Urban Mobility Competence in Munich was aimed at encouraging dialogue with municipal authorities about transportation issues. “Our services and partners are involved, other car-sharing providers are involved, public transportation is involved, all necessary stakeholders are involved. The aim is find best possible solutions for cities, to create ideas to make the urban environment much more liveable for residents.” A first pilot based on these discussions, to convince people to rely more on public transport and car-sharing, was run for two weeks in the German capital Berlin and proved successful. Another successful project, rolled out in Copenhagen, Denmark, involved the integration of BMW’s car-sharing DriveNow concept within Arriva, the city’s public transport system, making use of 400 electrically driven i3s.
“If they’re going through our junctions, we need to know. We want to have an honest discussion about what’s safe operation, what useful data can be exchanged and how we can utilise services to complement our objectives. In the next two or three years you’re going to see lots of trials.”
“BMW’s solutions for the city,” said Knudsen, “is all about electric mobility, electric cars.” However, while their introduction had helped to solve problems of noise and emission pollution, “it does not solve the problem of congestion, parking pressure and all the other problems we are faced with in daily mobility.”
Knudsen said it was BMW’s view that transport solutions brought by private enterprise would have to be deployed in partnership with public authorities. He pointed out that the
To help ease those pressures, Knudsen said, “the main focus for BMW is on car-related services, such as ride-sharing solutions like DriveNow or ReachNow, as well as parking solutions such as Park Now.”
In the view of Thomas Beermann, CEO of car-sharing company Car2Go Europe, cities would need a system of free-floating, autonomous-drive shared car pools to help solve their transportation problems. “Autonomous drive, shared cars will reduce the number of vehicles required in cities,” he said. “In Berlin, we could fulfil the same demand with half the vehicles.” He said another enabler of car-sharing would be the changing attitudes of people regarding car ownership. “People still like cars, people still like to drive cars – but not all people still want to have the asset with all the obligations linked to it,” he said. That was one of the reasons, he said, that car-sharing would continue to grow massively. “The growth will come not only from adding city by city by city, but the change will also come from the changing mobility patterns within a city.” Beermann cited forecasts from several well-known consultancies which predicted that car-sharing users and vehicle growth would result in a sevenfold increase in revenues in the sector by 2021. “We are at the beginning,” he said. “The growth is still to come.” Whatever future mobility will look like, a fundamental aspect of the automobile will not change – the importance of the customer experience. It’s a definite plus if the mobility solution helps to make life safer, healthier and
less stressful – but if it isn’t easy or pleasurable to use no one will buy it. This is why a number of conference presentations also focused on the present, such as the panel discussion on Winning the Hearts and Minds of the Connected Consumer. As one of the panel members, George Parthimos, CEO of Connexion, pointed out: “The HMI of a lot of the delivery and usage of infotainment features remains cumbersome. Then you transition that to the sharing economy. How does that work when you need three hours to learn how to use a vehicle?” His solution to this lack of seamlessness is the use of artificial intelligence, voice recognition and pre-emptive decision-making for the driver. Reimund Schmald, a business development manager at EMEA, suggested that infotainment products would become more attractive as cars become increasingly autonomous.
“Infotainment features will make a greater difference in the future than today as we shift to autonomous driving and to a shared economy,” he said. “The task we all have is to educate users about the advantages of those services and to make them accessible. Today, there are a lot of services in the car that are difficult to access.”
According to Dieter May, Senior VicePresident, Digital Business Models at BMW, benchmarks were evolving in terms of digital experiences within the car. “The race is on and there is a new phase coming where digital needs to become mainstream and on par with what we are used to from our consumer experiences,” he said.
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We will: • Clear any vehicle within 12 to 16 weeks so that these vehicles may be removed from your premises, processed and sold by ourselves as salvage. To defray some of the “sunk cost” already incurred by the dealer.
Abandoned Solutions is a company focused on addressing the issues associated with the salvage and recovery of vehicles abandoned at dealerships and workshop outlets. South Africa’s precarious economic and socioeconomic environment, coupled with high household debt-to-income ratios has left mass SA households in poor financial health. Many businesses are seeing significant changes in consumer buying behaviour; among these is a growing trend to abandon vehicles at dealer workshops. In many instances the cost of repairs, vehicle debt and any other related charges exceeds the value of the vehicle consequently fueling the “abandoned vehicle” phenomena.
Because of this increasing “Abandoned vehicle” phenomena, dealerships are facing the following issues: • Vehicle floor and or yard space is being consumed by an ever increasing inventory of unproductive abandoned vehicles. • Abandoned vehicles are being stripped for spare parts, as well intended mechanics look to reduce maintenance costs and improve turnaround times on vehicle repairs. This in itself has the potential to introduce quality issues because of the practice of using “used parts”. Similarly the dealership is exposed to increased liability should the original owner collect or request that their car be returned in the same condition as when originally left at the dealership. • Abandoned, stripped, damaged vehicles detract from overall dealership standards and place pressure on relationships between dealers, dealer principles and the OEM. •In many instances the time and associated legal costs required to hold abandoned vehicle owners accountable exceeds the value of repairs 2016 and or the value of the vehicle. NOVEMBER
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We will: – Cover the legal costs associated with clearing any vehicle slated for salvage. – Indemnify the dealer against any legal claims arising from any salvage activity. (A written report supported by appropriate clearance documentation will be provided to the dealership prior to final removal and salvage of any said vehicle.) – Return a minimum of 15% of the salvage value, (net of legal and clearing costs), to the dealer. • As an additional service, Abandoned Solutions can offer FREE temporary storage for abandoned vehicle should this be required during the clearing / salvage process. Contact Robert Henderson on 011 450 0550/0004 or 073 016 8424 Fax: 086 662 1148 / E Mail: firstname.lastname@example.org Address: Office A1 Mediterranian Conference Centre, 72 Concorde Road East, Bedfordview
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Next step in tech convenience Volvo is testing a smartphone app that aims to make the lives of its customers easier
olvo has announced the roll-out of a pilot concierge service programme which targets owners driving the brand’s new XC90 SUV and S90 sedan, which due for launch here in January. The Swedish carmaker has dug deep into consumer research to deliver on the perceived unmet needs of its customers. The pilot project began on a small scale in November in the United States but will be ramped up in coming months. While Volvo On Call is still under review for introduction in South Africa, the announcement of the concierge service pilot programme shows how, globally, Volvo is looking to make the lives of its customers easier. “Imagine parking your car in the morning at work and, when you head home, the vehicle has been serviced, cleaned and re-fuelled. These are the kind of services we want to deliver to our customers,” says Björn Annwall, Senior Vice-President, Global Consumer Experience, at the Volvo Car Group.
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“Our research shows that people spend hours every week carrying out these small errands – we want to give that time back to Volvo drivers, so they can do something more valuable instead.” Research by Volvo has shown that over 70% of its customers want fuelling services at their fingertips, while 56% want their car picked up for routine maintenance, and 49% would like to be able to have their car moved to another location when desired. “Our approach is a simple one – we aim to make life easier by employing the latest connected technology in an easy-to-use smartphone app. We are taking an open and agile approach to the programme and welcome collaboration with partners with new and innovative service offers. This is just the beginning,” says Anders Tylman-Mikiewicz, Vice-President of Consumer Connectivity Services. Volvo owners participating in the pilot can use the pilot app to identify concierge services available in the immediate vicinity and order them via their smartphone. Requests are then sent to an authorised Volvo service provider, who will refuel the vehicle, perform scheduled maintenance, or whatever additional service the owner has requested. The app provides a one-time-use digital key, which is location and time-specific, and sends it out to the authorised service provider. When services are complete, the car is locked and the digital key expires. The car can also be returned to where the customer left it or delivered to a new location at the customer’s request. According to a statement released by the company, Volvo Cars’ network of digital innovation laboratories in the United States, China and Sweden are focusing on understanding the needs of the company's growing customer base in an effort to expand the range of services on offer. Due to the scalable nature of the Volvo On Call platform, new services can be easily added to ultimately offer a whole range of time-saving services around the brand’s cars.
Half full or half empty? Are the contents of the motor industry glass rising or disappearing inexorably through a hole in the bottom? David Furlonger investigates
s we approach the end of 2016, it’s worth asking what sort of a year it’s been for South Africa’s motor industry. For many people, the answer is easy: It sucks! The local new-vehicle market is down for the third year in a row, by around 12%. Political paralysis, economic uncertainty, shrinking household disposable income, galloping fuel prices – think of something negative and it’s probably happened in 2016. So no question, most people would say, it’s been a dreadful year. A half-full glass would actually be a luxury. But wait a minute. What about exports? And policy? And investment? Don’t they all count? Let’s start from the bottom of the glass. Local new vehicle sales have been horrible. The number of cars sold is down, so are the figures for light commercials, trucks and buses. Since 2013, the market has fallen by more than 20%. For 2017, the view of most analysts is that the downward trend will continue, albeit at a slower pace. Only from 2018 might we see the seeds of recovery.
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Still, it could be worse. The collapse in oil and commodities prices has wrecked the spending potential of multiple markets in Africa. Nowhere is this more evident than in oil-rich Nigeria and Angola. In the latter, a part-built Chinese vehicle manufacturing plant and proposed supplier park lie abandoned after oil revenues, foreign exchange and consumer-goods spending power all dried up. Motor companies that used to send in regular shipments of new vehicles now do so months apart.
It’s a message that’s being heard. Just as cynics like myself were starting to wonder if Chinese carmaker BAIC would make good on its promise to build an R11-billion greenfield car plant in the Eastern Cape, it finally started to develop a site at the Coega industrial development zone, near Port Elizabeth. Whether its longterm growth plans are feasible is a matter of doubt for some people – but at least we have seen a start.
In Nigeria, not only is no one buying but no one’s building much, either. Plans to develop a local motor industry are falling behind schedule. South African companies that trumpeted exports of locally-made vehicle kits for Nigerian reassembly have seen numbers drop precipitously.
Meanwhile Toyota SA, Ford SA and BMW SA are among companies that have moved forward with significant plans. Toyota launched its new local Hilux and Fortuner following an investment of R6,1-billion, and Ford recently started building the Everest sports utility off its Ranger bakkie base – accounting for another R2,5-billion worth of investment.
Across most of the rest of the continent, sales have plunged. That’s why, says Nissan SA’s Jimmy Dando, foreign motor companies with African ambitions should invest in South Africa. We’re still the only country with a significant domestic market.
BMW, meanwhile, has begun preparing the ground in the rest of Africa for the 2019 introduction of the locally-made X3. More than most, BMW will be praying that markets north will have recovered by then.
Go beyond Africa and short-tomedium-term export prospects remain positive. Among major markets, the only potential cloud is Britain, following the Brexit referendum vote this year to leave the European Union. As the main foreign market for their vehicles, South Africa’s motor companies are naturally concerned about whether Britain will continue to offer the import-duty benefits it does now. Nissan’s recent decision to invest more in the UK, following trade guarantees, is a positive sign and should give local companies hope that the relationship will be unaffected.
Overall – despite a couple of bumps in the road – exports have grown this year. The upshot is that South Africa’s vehicle production will reach record levels in 2016, with the forecast of further growth in 2017. Then there’s policy. Trade and Industry Minister Rob Davies began the process this year of creating a successor to the Automotive Production and Development Programme (APDP), which expires in 2020. He asked planners to look as far ahead as 2035. That’s nearly 20 years hence. Anything that can give multinationals long-time certainty about the
investment climate can only be a stimulus. So yes, the 2016 local market is bad. So are those in many parts of Africa. But throw in the other ingredients listed above and maybe, just maybe, we shouldn’t be completely suicidal. Half empty or half full? You decide.
David Furlonger is the industrial editor of Business Day and Financial Mail
DECEMBER/JANUARY 2016/2017 -
Look back, then look forward It is the end of the year – again. Businesses tend to always plan at the beginning of the year – but what about the past year? Ross van Reenen stresses the importance of looking back before looking forward
here is a big difference between reflecting and looking back. Reflection is more about considering events as a whole in terms of the Ross van Reenen past year, whereas looking back is much more direct – taking a step back to review the past year, the good and the bad, the highs and the lows. Every business reviews its strategy early in a new year, assessing risks associated with whether all components within the organisation are streamlined, right down to the risk if sales targets are not met. In the Harvard Business Review (July – August 2015), a very interesting article, How to Live with Risk, showed that most companies look for risk in the wrong places. This diagram in HBR showed some very interesting facts.
So, the question is? On what areas did you focus as strategic objectives at the beginning of 2016, and when things did go a little wrong, where did you look for the reasons?
networking and training company and winner of the Xciting New Business Award in 2014: 1. What did I achieve? If you’re an auto dealer, how many units did you sell? If you provide services, how many clients did you retain? 2. Did you meet your targets and goals? Revisit In The Strategy-focused Organisation by the goals you set for your organisation at Kaplan & Norton (who also wrote The the beginning of the year. What about the Balanced Scorecard), they pointed out that: performance of your team? Make sure you 1. 60% of organisations do not link rewarded everyone for their achievements strategies to budgets. and celebrate their successes. 2. 95% of the typical workforce do 3. What are customers saying about you? not understand the strategy of the Taking feedback at this time of the year organisation, and is a good benchmark on how well you 3. 85% of executive teams spend less than performed and what you have done. one hour per month discussing strategy. 4. Know your numbers – did you or did you not make money? Why? The bottom line has to Their findings correlate with those be profitable, otherwise there is no business. contained in the HBR’s diagram. 5. What went well? You should identify every single thing that went well over the past Let us get back to looking back over the year. What did you enjoy doing, what made past year. What are the fundamentals on you proud, what was fun, and what would which to look back before looking forward you like to do more of? to take your organisation to the next level? 6. What went badly? Be honest with yourself and admit your mistakes. According to Emma, founder of the Farnham Hub, an innovative business Now you need to decide where you want to go in 2017. 1. What kind of customers do you want? Who out of your existing customers do you want more of? What products or services would you like to sell more of? 2. Redefine your goals – what goals did you not achieve this year? 3. Vision and values – your review is a good opportunity to think about your organisation, where you want to go and how to get there. Focus on where to find the risk in your organisation, and do not make the mistake of looking for problems and risk in the wrong places …
28 DECEMBER/JANUARY 2016/2017
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Gasoline Direct Injection: New Opportunities for Turnovers
NOVEMBER 2016 -
Joy Oldale, director of the Vehicle Testing Association (VTA), reports on the fifth Global Road Safety Partnership (GRSP) Road Safety Africa event to be held on the continent since 2012 She said the Department of Transport (DoT), as the custodian of road entities, had set out key milestones for South Africa to achieve the UN’s aims, but reductions in road deaths had not decreased at the rate required to realistically meet aspirations.
Joy Oldale, director of the Vehicle Testing Association (VTA)
nder the banner Challenges for Communities, Cities, Companies and Countries, the GRSP event – held this year in Durban – brought together 120 stakeholders from more than 20 countries representing government, civil society, research bodies and the private sector. Over two days, the comprehensive programme encompassed a range of stimulating capability building workshops, keynote addresses, high level panel discussions and plenary sessions. South Africa’s Minister of Transport, Dipuo Peters – who also attended the 2014 event when it was last held in the country – gave a rousing address in the opening plenary session. Peters’ speech focused on South Africa’s response to road safety challenges and opportunities which could contribute to meeting the goals of the United Nation’s Decade of Action for Road Safety.
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However, she said the DoT was in the final stages of completing a National Road Safety Strategy which would form a blueprint for the implementation of the country’s road safety interventions. “There is a refreshed willingness among stakeholders – law enforcement authorities, provincial and local government, road management agencies, educational authorities and communities – to treat this as a national priority, working together to implement the strategy,” she said. According to Peters, targeting road user behaviour through education, legislation and enforcement had formed a cornerstone of South Africa’s improved road safety record. “Clearly, we are on the right track in following an integrated response to road crashes and addressing each of the elements of the global action plan on road safety, law enforcement, education and awareness, safer vehicles and safer roads,” she said. However, Peters said humans were fallible and even the most safety-conscious individual could make a mistake or commit an error of judgement that might
lead to a crash. “Our road management authorities and the construction sector are increasingly taking this into account in the planning, design, building and maintenance of road networks. “Best global practices in design and engineering are increasingly being implemented in developing countries and South Africa is, indeed, fortunate to draw on the experience and expertise available at an organisation such as SANRAL – which is widely-respected among its peers in the industry.” According to Peters, the main contributory factors to fatal accidents, as submitted over a number of years by the South African Police Services (SAPS) and the Road Traffic Management Corporation (RTMS), were categorised as human factors (82%); vehicle factors (10%) and road environmental factors (8%). She said the higher the speed at which accidents happened the more deaths were recorded, while the wearing of seat belts helped to reduce fatalities and injuries. In her view, severity ratings of accidents were influenced by the type of crash – higher for vehicles which collided head-on, often a result of illegal or unsafe overtaking, and lower for vehicles travelling in the same direction, depending on following distance and speed differential; as well as the types of vehicles involved, such as high occupancy buses or minibuses.
“As a country we reported a road death rate of 23,5 people per 100 000 in 2014, when the global average was 17,4 fatalities per 100 000 people. Middle income countries like ours record an average of 18,4 fatalities per 100 000 people,” she maintained. Peters said the importance of road safety to the economy and society at large provided a convincing case for the implementation of decisive policies and strategies to address issues. “People injured or killed on our roads are often breadwinners in their families and important contributors to the economy at large. Therefore it is not an exaggeration to say that road crashes deny our people a right to pursue economic activities and deny their children the right to education. “An economic and financial analysis of road crashes points to the need to improve road safety, enabling South Africans to live long productive lives and freeing fiscal resources to focus on the important business of socioeconomic development,” she said. Peters added that the DoT continued to put in place measures aimed at reducing road risk factors, including: • Installation of railway level crossing units, the aim of which was to ensure road and rail safety at level crossings; • Introduction of the Administrative Adjudication of Road Traffic Offences Act (AARTO Act) to promote road traffic quality by discouraging road traffic contraventions and facilitating the adjudication of road traffic infringements; • Development of a centralised reporting and monitoring programme by traffic authorities countrywide to enable strategic law enforcement; • Establishment within the RTMC of the National Traffic Anti-Fraud and Corruption Unit; • Establishment of the Cross Border Road Transport Agency (CBRTA) to facilitate unimpeded movement of passengers and goods within the SADC region. Additionally, the DoT had encouraged a mass community movement of road safety activism through the establishment of Road
Safety Community Councils which had been launched at national level in 2010. “These consist of ordinary community members who are committed to working very closely with provincial governments to promote safety on our roads through a zero-tolerance message. They are often the first to arrive at any scene of a crash.”
South Africa’s Minister of Transport, Dipuo Peters
Peters said the DoT had facilitated training for members so that they were empowered and knowledgeable about what to do at the scene of an accident while waiting for traffic officials and emergency services to arrive.
“Road safety is in every citizen’s interest and, given that safety starts with an individual road user – whether motorist, passenger or pedestrian – the involvement of the entire civil society on an on-going basis can never be overstated.
“Also, the department, through the Road Traffic Infringement Agency (RTIA), has established an interfaith based organisation which preaches the road safety gospel in church on a weekly basis.”
“The fight against road crashes is yet to be won – but we envision a future where our people will feel safe and secure on our roads,” she said. “We will continue to engage robustly, honestly and come up with a diagnosis that will help us to stop the body count and contribute to increasing the life expectancy of our people.”
Peters said the country’s commitment to the reduction of road fatalities by 50% by 2020 – as outlined in the UN’s Decade of Action for Road Safety – would see a significant shift in the implementation of various provisions and models for the acceleration of sustainable road safety initiatives. “Key to these is an increase in educational road safety programmes to ensure our road users know how to stay safe, and keep others around them safe. That initiative will be supported by intensified law enforcement to deal with those who put the lives of other road users in danger. Eventually, we want to see a culture of voluntary compliance in South Africa – and we will get there,” she promised. As a recommendation going forward, Peters added that a multi-disciplinary approach would be undertaken in order to create a safer road environment by fostering partnerships and increasing the participation of all strata of society to enable a drastic reduction in the number of road fatalities.
Reinforcing the Minister’s words, United Nations Special Envoy for Road Safety, Jean Todt, said in a video message screened at the event that greater coordination of efforts was needed in Africa in order to reach the ambitious road safety targets as set out in the UN’s Decade of Road Safety sustainable development goals. Delegates left the event feeling connected with like-minded peers, enriched with ideas and examples of good road safety practice and motivated to take what they had learned back to their communities, companies, cities or countries and strive for real change. Africa Road Safety 2016 was made possible through sponsorship by Shell, Total and Toyota and event supporters Alcolizer and Ethekwini Municipality.
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The list of safety critical items to be tested includes: • All lights • Seat belts • Wipers • All tyres • All foot brakes • Hand brake • Steering mechanism • Suspension • Exhaust • Wheel alignment
Pre-Christmas Safety Check The RMI’s Pre-Christmas Free Safety Campaign will run from December 1 to 10. To locate a participating testing station in your area, please call your regional RMI office. The safety test is not a roadworthy test, but a safety critical test to ensure vehicles are free from defects. The RMI’s aim in conducting the check is to reduce the number of road deaths this festive season.
Telephone numbers of RMI offices: Pretoria 012 348 9311 KZN 031 266 7031 Western Cape 021 939 9440 Gauteng 011 886 6300
Please note, there are no participating testing stations in Limpopo, Mpumalanga, Free State or Eastern Cape.
he end of October marked the conclusion of the Department of Transport’s successful Transport Month, which aimed at raising awareness of the role of transport infrastructure in the country’s economy.
implementation of new infrastructural projects, road safety education programmes and traffic law enforcement operations.
Civic society and business joined forces to share a common understanding of the DoT’s commitment to providing a safe, affordable, accessible and reliable transport system through
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‘Successful round of AGMs’ Healthy support from members across the country made the RMI’s latest round of regional and associational AGMs a resounding success, the sessions marking a year of record growth for the Organisation
he RMI’s regional and associational Annual General Meetings took place across the country in August, September and October, the agendas lending themselves to healthy, positive and entertaining discussions, and offering insights into developments within South Africa’s automotive aftermarket. In the Free State and Northern Cape, the Windmill Casino & Conference Centre in Bloemfontein hosted 92 members who, on the day, also attended associational meetings at the venue involving MPEA, NADA, SAMBRA and SAPRA. The RMI’s President, Jeánne Esterhuizen, who is a former Free State and Northern Cape regional chairperson, welcomed those present while Gadija Brown, Deputy Director General in the Department of Economic Development in the Free State, delivered the keynote speech. In his address, Jakkie Olivier, CEO of the RMI, outlined developments regarding 2016’s on-going wage negotiations with labour unions, after which regional chairperson Danie Fourie presented his annual report. Members noted the re-affirmation of elected officials for the 2017 term. An awards ceremony followed, with Fourie presenting framed certificates to a number of RMI members in recognition of their services and their achievements. In the Eastern Province, about 70 members attended the AGM at Port Elizabeth’s Walmer Golf Club. Regional chairman Alistair Dyer, who has held the seat for more than eight years, saddened many by standing down. In the
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neighbouring Border region the AGM – held at the East London Golf Club – also had good attendance with about 50 members present. The Highveld Region’s AGM drew a capacity crowd to the RMI’s headquarters in Randburg. General Manager Jeff Molefe and Regional Chairman BR Naidu presented members with an update regarding the Organisation’s activities during the 2015/2016 financial year, pointing out that membership had enjoyed steady growth. The keynote address was delivered by CEO Jakkie Olivier, who gave members an overview of key developments within the automotive aftermarket, also outlining the RMI’s vision for the future. Wesley Warren from the Jozi Small and Medium Enterprise Hub delivered a product presentation which showcased the way in which RMI members could benefit from their valuable, tangible and
meaningful services, while Muhamad Sayed from Mahle spoke informatively about the company’s latest products and service offerings. Formal proceedings were followed by dinner, creating a relaxed platform for members to meet, interact and network. In KwaZulu-Natal, the AGM took place at Southern Sun’s Maharani Hotel with 135 members attending. Regional Manager Julian Pillay reviewed the RMI’s activities in the province over the year, listing myriad events and meetings with which the Organisation had been associated. The keynote address was delivered by Dr Peter Munns, a social entrepreneur who is dedicated to finding practical solutions to problems which face communities – among them crime, poverty, food security and unemployment. Vishal Premlall, Director of MIWA, gave members an update regarding the RMI’s future strategy, while a lucky draw for a year’s free subscription to the RMI was
won by the KZN Auto Centre. Various other prizes were awarded to members. The evening was deemed to be a significant success, with positive feedback received from those who attended. Ratanga Junction hosted the Western Cape region’s 108th AGM, attracting about 250 members – about 80 more than last year. The theme was festive, with a carnival vibe, enhanced by live entertainment and a special welcome from two carnival girls. Exhibitors at the event included Nedbank, which promoted its Market Edge business product, and Moto Health Care. In attendance were two special guests from the Department of Trade and Industry. Utilising various break-away rooms, many RMI associations held their AGMs prior to the RMI’s – and all were well attended. In the Northern Region, the AGM took place at Union Caterers in Pretoria East. Theme for the evening was Formula One and many of the 160 members who
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BULLETIN attended went out of their way to dressup as race fans, drivers or paddock girls. In his address, Jakkie Olivier, CEO of the RMI, highlighted the Organisation’s operational performance for the year and outlined future strategy. He said that in the 100-year plus existence of the RMI, 2016 had proved to have been its most successful year, both financially and in terms of membership growth. “The RMI has spent more time on the value proposition for members and the addition of member benefits. This change was not forced – it was done from a very solid base,” he said. Olivier thanked members for their loyal support over the years, reminding them the Organisation could help them achieve what they could not do on their own. He was followed at the podium by Les McMaster, Chairman of MIWA, who reported back on behalf of the association. He pointed out that though 2016 had seen the Northern Region yield a three percent growth in membership, the year had also seen 66 businesses shut their doors. The evening ended with an interesting interactive session with well-known South African race driver and promoter, Gary Formato, who shared many of his experiences and opinions about Formula One and motor racing in general. Also, Formato elaborated on the new Sasol GTC series that he helped to launch in South Africa. In keeping with the theme, a fun element involving slot car racing proved to be a hit. Contestants competed in heats and, thereafter, fastest competitors battled it out in a tight final race around the tight and twisty circuit. Winners earned themselves envious prizes from generous sponsors Mercedes-Benz Menlyn, Caelex, Jonnesway, Moto Health Care, BeeDynamix, Mahle and Power Brake.
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dynamic, SO IS MISA
With MISA you have a dynamic trade union at your side. Whether it’s a career glitch, a new baby, illness, or an unfair labour practice, with the Motor Industry Staff Association (MISA) you are covered. MISA is also one of the fastest growing and most active trade unions of its kind, which holds many benefits for new and existing members alike.
WHAT IS IN STORE FOR 2017?
OTHER IMPROVED MISA BENEFITS
In 2017, MISA will be launching three new initiatives to encourage and assist members with their personal and professional development and to live healthy, balanced lives.
The MISA Benefit Fund, to which all active MISA members automatically belong, provides a payout on the death of the principal member. In 2017, the payout will increase to R31 000.
Educated MISA Members – Educational Assistance • The MISA Study Assistance Programme gives 70 young members (under 35) the opportunity to further their tertiary studies or complete their Matric certificate through a recognised institution between January and December 2017. • The Educated MISA Members Programme: MISA will pay 200 eligible MISA members who obtain a Matric or Matric equivalent qualification between 1 January to 31 December 2017 a benefit of R2 500 per qualifying member. • The MISA Bursary Fund annually offers 50 bursaries of R10 000 each to help fund the tertiary studies of children of MISA members.
The MISA Funeral Fund covers R9 000 of the funeral expenses of principal members, their spouses and children up to the age of 18, and R6 000 for children under 14.
Healthy MISA Members Subject to specified criteria, MISA shall pay an amount of R2 500 per member per annum to 200 eligible MISA members who, during the period 1 January to 31 December 2017, were off sick from work for a period of two days or less and who have attended at least one medical examination or participated in at least one wellness campaign. Healthy MISA Women Subject to specified criteria, MISA shall pay an amount of R2 500 (per female member) per annum to 200 eligible female members who attended to their health by doing a mammogram and pap smear during the period 1 January to 31 December.
The MISA Maternity, Retrenchment and Ill-Health/ Disability benefits all increase to R2 500 from 1 January 2017.
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Who to contact at MISA MISA Bursary Fund & Healthy Woman Programmes: Karen Schoonraad (011) 476 3920 MISA Educated Member Programme: Thandeka Phiri (011) 476 3920 Legal & Labour: (011) 476 3920 Email: firstname.lastname@example.org Website: www.misa.org.za
MAY 2016 -
Spotlight on associations A number of RMI-affiliated associations recently held their regional AGMs. Here’s a brief summary SAMBRA The South African Motor Body Repairers’ Association (SAMBRA) chose to host its Highveld Region AGM at the RMI’s offices in Randburg, members filling the main boardroom almost to capacity. In presenting his annual report, the association’s national director, Edwin Martin, said member unity had never been more important, given increased demands which were being made on the motor body repair industry. “The challenges can only be addressed as a collective and, therefore, it is imperative that members attend SAMBRA meetings to stay abreast of developments,” he said. “My call for the year to come is for more active member participation with a view to building a better and stronger industry going forward.” Using an analogy, he said it took a bamboo seed five years to shoot, where after it grew up to 90 feet tall in six weeks. “The reason being it takes five years to develop the roots in order to grow rapidly thereafter. “The seed planted by the SAMBRA NEC through the development of new strategic objectives, I believe, is currently growing a strong root system that will result in rapid growth. “I chose to stick to the analogy of the bamboo tree, in order to measure the growth of the roots on a year on year basis. I believe this will keep us focused until we see the fruits.”
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However, he added that some fruit had already been borne. “A SAMBRA grading is now the accepted minimum insurance approval requirement nationwide,” he said. Graeme Reid, representing Lightstone Consumer, and John Killian, of Safety Solutions Africa, delivered presentations which focused on new products perceived to be of benefit to motor body repairers, which the audience found valuable.
Those in attendance received presentation packs which contained useful brochures from various industry suppliers, as well as an information booklet from the RMI. The AGM ended with a lucky draw which saw Sandra Marxer of Chameleon Panel and Paint win a set of tools from Hurricane and polish products from Gondolier; with Thembie Sithole of G&T Autobody and Marco Wilro of Mustang Autobody each taking home a hamper of wine.
At the Free State and Northern Cape Region’s AGM, Chairperson Jeánne Esterhuizen welcomed members. Graeme Reid from Lightstone Consumer delivered a presentation on the benefits of the company’s Echo System, following which SAMBRA’s National Director, Edwin Martin, delivered his annual report. BASF sponsored a number of lucky draw prizes which were won by Louis Smith of Trek In Paneelkloppers, De Aar, and Lefa Mthala of Superior Auto Repairs, Welkom. Following the meeting, members were invited to attend the RMI’s Free State AGM.
Repairs, The Bodyman, Boucher’s Auto Body Repairs, Paramount Bodyworks and V&R Auto Collision Repair Specialists. At the Border AGM – which took place at the Stutterheim Golf Club – the question of B-BBEE codes was again raised, with Martin again explaining SAMBRA’s standpoint in finding the best possible solutions to ensure member businesses were sustainable but compliant. As it was at the Eastern Cape AGM, delivery of his annual report was well received.
Reid was also in attendance at SAMBRA’s Eastern Cape AGM, delivering his Echo System presentation following a welcome to members by the region’s chairman, Mark Lippstreu.
A lucky draw sponsored by Bulldog Abrasives saw Bruce Cumming from Gordon Cumming Body Repairs win a spray gun and Corrie from Image Panelbeaters walk away with two SAMBRA embossed shirts. A late lunch and refreshments were enjoyed by all after the meeting.
An agenda item which led to heated debate concerned revised B-BBEE codes. National Director Martin re-assured members that SAMBRA, alongside the RMI, was committed to finding the best possible solutions to their concerns.
The Southern Cape Region’s AGM was held at the Pine Lodge Conference Centre in George. Martin provided feedback regarding SAMBRA’s standpoint on B-BBEE codes and presented his annual report which was well received by members.
Concluding proceedings, Boet van den Berg of Auto and Home Paint sponsored five lucky draw prizes which were won by representatives from Auto Trust Body
Jan Kachelhoffer was elected to represent the region at NEC meetings with Fanie Fourie as an alternative should Jan not be able to attend. Lucky draw prizes given
away at the conclusion of the meeting were won by representatives from Auto Magic George, Willie’s Panelbeaters and CBS Body Works.
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SAPRA During September, the South African Petroleum Retailers’ Association (SAPRA) held a series of 10 Regional AGMs and workshops across the country. According to Acting Director Viv Corinaldi, all of the events were well attended. The following matters were on the agenda: • An overview of SAPRA and its key objectives; • Current topical industry issues; • Challenges facing petroleum retailers; • An update on the Regulatory Accounting System (RAS); • An update on wage negotiations; • Agreements and goodwill; • The status of B-BBEE in the petroleum industry; • Safety and compliance. “Lively and constructive discussions took place – and feedback from members was very positive,” says Corinaldi, who has forwarded his AGM presentation to all members of SAPRA.
MIWA From August through to October, the RMI’s Motor Industry Workshop Association (MIWA) held a number of well-attended regional AGMs at venues throughout the country, the first taking place in the Eastern Cape at the RMI’s offices in Port Elizabeth, where 26 businesses were represented. The association’s director, Vishal Premlall, and regional chairperson Jack Finn, addressed the meeting, while Richard Clark from Mahle and Ken Hardwick from HaynesPro conducted product presentations and presented prizes. The next day Premlall, Clark and Hardwick moved on to East London where they joined forces with MIWA’s Border Region chairperson, Leon Schmidt, to conduct their presentations. About 15 MIWA associated businesses were represented at
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the meeting – a good turnout, according to Premlall.
awards and prizes, the latter courtesy of HaynesPro.
“We want to thank everyone who attended,” he told delegates. “We value the input you’ve given us and, like you, we believe meetings such as these provide a valuable platform to network and keep abreast of industry developments.”
In KwaZulu-Natal, more than 60 MIWA members attended the AGM at the Jaipur Palace in Durban North. Keynote speaker, Dr Sagie Naicker, delivered a powerful address on leadership in the aftermarket workshop environment.
MIWA’s Western Cape AGM took place at the Oakdale Sports Club in Bellville with about 40 members in attendance, while the Free State and Northern Cape meeting at the Windmill Casino and Conference Centre in Bloemfontein drew a similar number, members travelling from as far afield as Katoe, some 350km away, to attend.
There was a similarly strong turnout of members at MIWA’s Northern Region AGM, held at the RMI’s Pretoria offices. Again, Ken Harwick from HaynesPro offered insights into the company’s products and service offerings.
The agenda included a detailed presentation by MIWA stalwart Frank MacNicol on engine clearances while, on the awards front, Lenox Thebele took home two certificates for his newly graded workshops.
Said Premlall: “Across the country we have seen attendance numbers double at MIWA’s AGMs. We believe this is a clear indication that members are getting more involved and are deriving benefit from these events. If you missed out, make sure you attend the next meeting scheduled for your area.”
About 60 members representing MIWA Highveld got together in September at the RMI Offices in Randburg. Chairman BR Naidu delivered an address in which he spoke about the steady growth of the association’s membership and how the brand had earned the trust of consumers with regard to quality and affordability. In his presentation, Ken Harwick, from HaynesPro, spotlighted a number of the company’s newest products and service offerings, while Naidu handed out several
TDAFA The RMI’s Tyre Dealers’ and Fitment Association (TDAFA) held its national AGM over two days. According to National Director Hedley Judd, the event was a resounding success with a number of keynote speakers addressing topics of specific interest to members. These
included training, OHS, insurance, the SABS, hand tools and B-BBEE. The RMI’s CEO, Jakkie Olivier, its Chief Operating Officer, Jan Schoeman and its Financial Director, Renee Coetsee, also delivered presentations. According to Judd: “The AGM was well supported and included a number of representatives from SupaQuick, Hi-Q, Point-S and Best Drive. The inclusion of franchisors is an ongoing approach
ulian Pillay, newly appointed director of NAZA
from the TDAFA to be transparent and consultative in all dealings and decision making.” Judd said the TDAFA’s National Executive Committee, along with members and guests, enjoyed an informal braai and networking evening, where two long standing ex-chairpersons, Jay Patel and Ian Vrey, were honoured for their contribution to South Africa’s tyre industry and to the association.
SA’s top motoring journalists crowned
t took 17 judges across 24 categories several weeks of marking to decide that the coveted title of the Toyota Financial Services SAGMJ Motoring Journalist of the Year for 2016 belonged to Ferdi de Vos was joined on the podium by Seagram Pearce, the Photographer of the Year, and Gavin Forster, the Motorcycle Journalist of the Year for 2016. It is de Vos’s fourth title as Journalist of the Year. Seagram won the event in 2012
Derek Leach (TFS), Ferdi de Vos; Bernard Hellberg
MISA’s Woman of the Year
he Motor Industry Staff Association (MISA) in partnership with AON, recently announced that Hanlie Strauss of Henred Fruehauf had been judged its Woman of the Year. The award recognises the vital role women play in South Africa’s motor industry. Hanlie won a trip to the United States, where she will attend next year’s NADA Convention in New Orleans. Speaking at the event, MISA CEO’s of Operations, Martlé Keyter, said women within the industry deserved recognition not only for the contribution they made in the workplace, but also for their influence in the communities they served.
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and 2014, while Foster won the inaugural Motorcyclist of the Year category last year. Winner of the RMI sponsored Business, Industry and Technology Award was Egmont Sippel. “We are emboldened by the number of entries in this year’s competition, which scored high enough to win a prize or receive a commendation and by the diverse content we received. “From local and global motorsport, insight into new vehicle technologies and
Jan Schoeman (RMI), Egmont Sippel (Bus. Ind. & Tech Award Winner), Bernard Hellberg (SAGMJ)
SAMBRA recognises insurers, OEMs, and paint and equipment suppliers
hort-term insurer, Mutual & Federal, has won the prestigious SA Motor Body Repair Association (SAMBRA) Insurer of the Year award for the third consecutive year. Ford received the top honours for all-round best OEM. The awards ceremony took place recently in Johannesburg, and honoured top vehicle insurers and OEMs, as well as paint and equipment suppliers for their contribution to the sustainability of motor body repairers in South Africa.
manufacturing techniques to coverage of global scandals in the auto industry, it is clear that South African motoring enthusiasts are spoilt for choice with good quality journalism on all media platforms,” said Bernard Hellberg, chairman of the SAGMJ. At the prize giving, motor racing veteran Sarel van der Merwe received the Guild’s Lifetime Achievement Award for his accomplishments in local and international motorsport.
What a win!
MI member M&P Bodies has won a silver certificate in the manufacturing category of the First National Bank sponsored Roodepoort Chamber of Commerce and Industry (ROCCI) Business of the Year Awards. Following presentation of the certificate last month at a glittering black-tie function at the Silverstar Casino in Roodepoort, M&P Bodies’ George Leathem said he and his team had clearly underestimated themselves as a business. “As we sat through the various categories we were obviously hopeful that we would take an award but, with the high level of nominees, we were not overly confident.
Sarel van der Merwe, Bernard Hellberg
SAMBRA represents a large majority of motor body repairers in the country, and focuses on creating and maintaining industry sustainability and development. The SAMBRA Awards is one such exercise. “The SAMBRA Survey which precedes these awards has been conducted annually since 2011 in an effort to gauge the business relationship between the insurance and motor body repair industry,” says Edwin Martin, SAMBRA’s national director. “Last year we extended the survey to include OEMs and suppliers, as they make a vital contribution to the motor body repair industry.” The survey is independently managed and audited, and targets SAMBRA members nation-wide to rate insurers, OEMs and
“After what seemed to be an eternity the manufacturing category was reached. The company that won the
suppliers on a number of factors including fair business practices, relationship satisfaction, quality of vehicle damage assessment and repairers’ interaction with claims staff, payment speed, customer service, green practices, training programmes, product support and more. The survey – and its outcome – has become an important yard-stick against which all partners evaluate themselves and their services to panel shops – and ultimately, the consumer. “In understanding how insurers, OEMs and suppliers relate to and collaborate with the motor body repair industry, we are able
Bronze Award was called and our hearts dropped since we thought if we had had any chance, it would have been for Bronze. “M&P Bodies was then called as the winner of the Silver Award. We were both surprised and overwhelmed,” he said. In a letter to Leathem, the CEO of the RMI, Jakkie Olivier, congratulated M&P Bodies on winning the award. “Well done. We are proud to have you as a member of the RMI,” he said.
to assist all parties to re-evaluate and streamline their processes and procedures, improve skill levels and regulatory compliance whilst ultimately developing best practice models,” says Martin. Sean Pheiffer, Head of Motor Operations at Mutual & Federal, expressed his delight at clinching this prestigious award for the third year. “It was such a privilege to accept this award on behalf of Mutual & Federal. As a team we are delighted that our partners and customers are satisfied with what we stand for and the service that they receive." Mutual & Federal also received the “Most Efficient Insurer” award.
Partinform visits KZN
he last Partinform show for 2016 was held on the Kwa-Zulu Natal North Coast at the Riverside Hotel. The event was well-attended by members of automotive related businesses from the greater Durban area, as well as by members of the RMI. Local manufacturers and suppliers to RMI workshops exhibited existing products and also took the opportunity to introduce new products to the market. Visitors gained valuable information and new perspectives on premium branded quality spare parts, new technologies and latest trends in the industry. But there were some fun events, too, and the big winner on the night was Thevan Naidoo from All Parts Durban, who took home a grand prize. Look out for Partinform in your area during 2017 as the events provide a great opportunity to network with fellow RMI members and business owners; communicate with parts suppliers and ensure that you stay up to date with the latest technology as it rolls out into the aftermarket arena.
Partinform Dates, 2017
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How much fuel does a vehicle really use? Getting the same answer twice is not easy, says Jake Venter
great deal of automotive research is focused on finding ways to improve a vehicle’s fuel consumption. Not only is most fuel refined from diminishing hydrocarbon sources, but there is a direct link between fuel consumption and carbon dioxide emissions. Heavy fuel consumption is high on the list of complaints that workshops have to deal with – but how do you accurately measure a vehicle’s fuel usage while it is on the road? The tankful to tankful distance method is not precise enough – there are too many variables that cannot be controlled. Motoring journalists have the same problem. They’re often under attack for using unreasonable or incorrect measuring techniques. The truth is that
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neither service industry personnel nor automotive magazine staff is in a position to measure fuel consumption scientifically. This has led to many countries developing their own test cycles. Most cars sold in South Africa have been tested according to the New European Driving Cycle (NEDC) – and most drivers find it impossible to match the favourable fuel consumption figures promised by manufacturers. The disappointment has been particularly severe amongst buyers of cars with downsized engines. The NEDC test was initiated in the late 1950s and updated in 1970 and 1997 to provide a scientific way of measuring fuel consumption. It is administered by a UN subsidiary body called the
World Forum for Harmonisation of Vehicle Regulations. The test is usually done from a cold start in a room where the temperature is between 20˚C and 30˚C (typically 25˚C) with air pressure kept close to sea-level values. The car is driven onto a chassis dynamometer that is able to provide an adjustable resistance to the engine so that aerodynamic drag and friction elements can be factored in. The values are supplied by the vehicle manufacturer in the form of look-up tables for each model undergoing test as well as for each body style. A large fan supplies an appropriate amount of air to the intakes to simulate the speed at which the vehicle is supposedly travelling. All ancillary loads such as the compressor for the air-conditioner, the radiator fan, lights and heated rear window are turned off.
The NEDC is composed of two parts: ECE-15 (Urban Driving Cycle), repeated four times, is plotted from 0 seconds to 780 seconds; EUDC (Extra-Urban Driving Cycle) is plotted from 780 seconds to 1 180 seconds
Exhaust gasses are captured and analysed to determine measurements for carbon dioxide, carbon monoxide, unburnt hydrocarbons, nitrogen oxides and particulate matter. Figures publically available for every vehicle tested include: • Urban fuel economy, measured in the first 780 seconds of the test; • Extra-urban fuel economy, measured from 780 seconds to 1 180 seconds of the test; • Overall fuel economy (complete cycle). Downsizing Downsizing refers to the process of either reducing an engine’s cubic capacity or reducing its number of cylinders. Most manufacturers combine both techniques in order to reduce fuel consumption, which in turn reduces CO2 emissions. The amount of CO2 emitted in grams/km is calculated by multiplying the amount of fuel consumed in litres/100km by 23,3 for petrol engines and 26,2 for diesel engines. Accordingly, many naturally aspirated four-cylinder engines with capacities of between 1,4 litres and 1,6 litres have been replaced by three-cylinder engines that displace between 1,0-litre and 1,2 litres, many of them turbocharged or supercharged to restore the power and torque lost due to their smaller displacement.
Herein lies a problem: Small turbocharged engines tend to suffer from turbo-lag. Such systems need time to spool up to the high revs/min mark (up to 250 000 rpm) where they deliver high boost. BMW overcomes the problem by employing a small, low inertia turbo for low-speed boost and a larger turbo for high-speed boost, while Volkswagen employs a combination of an enginedriven supercharger and a turbocharger. However, the UK-based Transport and Environment Campaign group has found that official fuel consumption figures cited by manufacturers is on average 25% lower than that achieved under real world conditions. In addition, road tests by magazines and motoring organisations have shown that most downsized engines, and especially the smaller ones, find it difficult to achieve claimed fuel consumption figures. Some of the reasons include: • During full-throttle acceleration, a turbocharged or supercharged engine runs the risk of damage due to harmful detonation. The control unit mitigates the risk by retarding ignition timing or by supplying a rich fuel mixture, or both. In the first case the engine deviates from its ideal timing and, in the second, more fuel enters the combustion chamber. In both cases, fuel consumption suffers.
• Blown engines usually run at significantly reduced compression ratios than unblown engines, which in turn mean that their levels of efficiency are lowered. • Driving sedately is difficult with a turbo because it’s natural to use extra power if it is available. While it is possible to get good fuel consumption from turbocharged engines, to achieve the aim large throttle openings must be avoided. • Official fuel consumption figures which have been measured according to NEDC test are considered to be an unrealistic. The driving schedule is based on a typical trip in Paris during the late 1950s, and this makes it completely out of sync with modern motoring habits. Criticisms of the NEDC • One can see from the graph that the speed of the vehicle being tested is running mostly below 120km/h and that acceleration is leisurely. This means that, for the most part, the engine’s turbo is idling, masking the unit’s inherent disadvantages. • The drag data supplied by the manufacturer in order to set up the dyno is not subject to any form of control. Rules are lax enough to allow the manufacturer to use any number of methods to get a very low drag figure. • The official body does not police the tests and the rules allow car companies to reduce their results by 4% at the end of the test cycle. • Similar tests are used to assess diesels, hybrids and even electric cars. In the latter case the electrical energy being used is measured. • Speeds are so low that many hybrids manage to almost complete the test on battery power only, giving some fairly large vehicles fuel consumption averages of less than 3,0 litres/100km. European, Japanese and American lawmakers have been tightening the screws on pollution control to such an extent that the motor industry is finding it difficult to cope. Every new pollution limit can be reached only by making cars more complicated and more expensive.
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The recent Volkswagen debacle involving NOX reduction cheating shows just how tempted engineers have been to exploit regulations.
There have been suggestions that the new test will kill the development of small, turbocharged engines due to the fuel consumption penalty (for petrol engines) and NOX penalty (for diesel engines) when vehicle are assessed at real-world speeds.
A new test cycle The European Union intends to introduce the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) for new-model onthe-road testing for NOX pollution from September 2017 and for fuel consumption and CO2 emissions from September 2018. The announcement has forced a handful of automotive engineers to admit that their cars emit far more pollutants on the road than on a NEDC dynamometer test. The surprising consequence is that some manufacturers are having second thoughts about extreme downsizing and fitting turbos. At the recent Paris Motor Show, Thomas Weber, head of research and development at Daimler, was quoted as saying: “It becomes apparent that a small engine is not an advantage. That’s why we didn’t jump on the three-cylinder engine trend.”
For example, there is speculation that Volkswagen will replace its 1,4-litre, three-cylinder diesel unit with a revamped version of its four-cylinder 1,6-litre plant. And, from next year, Mercedes-Benz will introduce a new, fuel-efficient family of four- and sixcylinder petrol and diesel engines that incorporate 48-volt electrical systems – all in the name of reducing fuel consumption. (See report on P50.) Plug-in electric cars Many people buy plug-ins in order to reduce their carbon footprint, but there is something the electric car industry is not telling you. In an electric car the carbon footprint is determined by the way electricity is generated in the part of the country you’re travelling through.
In Cape Town, where most of the electricity comes from atomic power, your footprint is very low. In Gauteng, and most of the rest of SA, where coal-powered power stations are the norm, your carbon footprint is about the same as that for a 1,6-litre, petrol-engined car. Conclusion Modern engines are not designed for the real world; they’re designed for the NEDC test as well as similar Japanese and American test cycles. Proof comes from an independent laboratory in the UK, which found that older models perform on average 19% worse in real world conditions that the official test results while, for latest models, the average difference was 37%! Volkswagen’s emission debacle has put a lot of pressure on the industry to adopt a more realistic on-the-road test cycle and the new WLTP programme is a step in the right direction.
Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.
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From next year, Mercedes-Benz plans to introduce a new family of engines across its passenger car line-up – among them four- and six-cylinder units that incorporate 48-volt electrical systems. Wynter Murdoch reports
ercedes-Benz has launched what spokesmen for the brand call the biggest strategic engine initiative in the company’s history – a return to in-line six-cylinder engines for petrol and diesel units; the introduction of 48-volt electrical systems for four- and sixcylinder plants; and the launch of a small, bi-turbocharged, petrol-fuelled V8 that’s more powerful than its predecessor. The swing towards the new engine lineup began this year with the introduction of a four-cylinder 2,0-litre diesel unit developed for the E-Class. It will continue in 2017 when S-Class derivatives will be equipped with a V8 that displaces just 4,0 litres – 700cc less than the capacity of the current unit. Other models across the Mercedes-Benz passenger car line-up will be fitted with four- or six-cylinder, petrol- or dieselpowered units that feature 48-volt technology. The change has been driven by pending legislation which requires vehicle
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manufacturers to meet ever-tightening global emission laws. According to Prof Thomas Weber, who is responsible for group research at Daimler, the new units have been designed with a view to conforming to current and future legislative requirements. “More powerful, more economical and cleaner – the new modular family of engines from Mercedes-Benz is right-sized for every vehicle,” he maintains. “The systematic optimisation of the units plays a crucial role in the road map towards sustainable mobility. A key success factor is the extensive electrification of the powertrain.” Though the V8, which produces around 350kW and 700Nm, eschews a higher voltage electrical system, the engine’s abridged size – coupled with integrated turbochargers between its cylinder banks as well as cylinder deactivation to turn it into a V4 under light loads – is said to have boosted fuel efficiency by about 10% compared with its larger capacity predecessor. What’s more, the unit is
about 15kW more powerful than the forerunner. Says Weber: “Instead of trimming the number of cylinders – thereby foregoing refinement and output – there are much more intelligent solutions. The M 176 engine uses cylinder shut off; at part-load up to 3 600 rpm it is especially efficient.” That said, the S-Class will also be sold in hybrid form equipped with an in-line, six-cylinder, turbocharged, 3,0-litre, petrol-fuelled unit coupled with a 48-volt electrical system. The engine – designated M 256 – produces 300kW and 500Nm and, in tandem with an electric drivetrain, it is said to offer performance akin to that of the V8. The unit’s turbo technology relies on an electric auxiliary compressor (eZV) to force air into the intake system. It is supplemented by an Integrated StarterAlternator (ISG), which is responsible for hybrid functions such as boost for the powertrain or energy recovery.
bowl shape, air movement and injector is its very efficient utilisation of the fuel mixture, which means that particulate emissions can be reduced to an exceptionally low level.” The engine’s block is cast from aluminium. What is described as an improved Nanoslide coating has been used for the cylinders, while the unit also features a near-engine exhaust treatment resource. Power output is said to be 230kW, making it Mercedes-Benz’s most powerful ever diesel engine for a passenger car, while maximum torque is quoted at 650Nm.
“The M 256 is the first engine that we have systematically designed for electrification from the outset. The bottom line is that the engine offers the same kind of performance as an eightcylinder machine while being much more fuel-efficient,” Weber reiterates. He adds that incorporation of the 48-volt electrical system has dispensed with the need for belt drives for ancillary components at the front of the engine, reducing the plant’s dimensions and resulting in meaningful packaging advantages.
ISG, which in turn supplies power to the battery. “This allows fuel savings that were previously reserved for vehicles equipped with high-voltage hybrid technology,” he says. “In comparison with our superseded V6, CO2 emissions from this engine have been reduced by around 15%.” On the diesel front, an equivalent six-cylinder plant – the OM 656 – incorporates two-stage turbocharging, variable valve timing, reshaped combustion chambers and steel, steppedbowl pistons.
He points out that the unit’s narrow construction, together with physical separation of intake and exhaust systems, has created space for a near-engine exhaust after-treatment resource to further lower emissions.
According to Mercedes-Benz’s engineers, the stepped bowl design has a positive effect on the combustion process in terms of thermal loading of the pistons and the introduction of soot into the engine oil.
In terms of design features, he says the 48-volt system serves not only high load items such as the water pump and airconditioning compressor but, through highly efficient energy recovery, also the
“Efficiency is increased by a higher burn rate in comparison with the previous engine’s omega-shaped combustion bowl. The characteristic feature of the specifically configured combination of
Less glamorous than the six-cylinder units and the V8 – but significant for the brand’s higher volume models – is the new M 264, 2,0-litre petrol-fuelled plant. Also known as the Toptype, the four-cylinder unit follows Weber’s rightsizing philosophy by offering output of 100kW – territory previously reserved for higher displacement engines – thanks to turbocharging, variable valve timing, a belt-driven 48-volt starter-alternator (BSA) and a 48-volt water pump. Like the ISG, the BSA is responsible for hybrid functions that include supplementing the engine’s turbo-boost up to 2 500 rpm and recovering energy to help recharge the battery. In addition, the powertrain system allows the load point in the engine map to continually shift to favourable areas and, when coasting, to turn off the unit. In the interests of high power output and spontaneous engine response, Mercedes-Benz has opted for twin-scroll turbocharging maintaining that, unlike conventional systems, systematic cylinder flow separation produces high torque in the low revs/min range, together with high specific output. Further efficiency measures include a friction loss reduction package and, for petrol engines across the line-up, the staggered introduction of particulate filters to improve environmental compatibility.
7 differentiating between Division B employees and their colleagues. It sets out the following notice periods: Division B: • Weekly-paid employees will be required to give not less than one week’s notice; • Monthly-paid employees will need to give not less than two weeks’ notice; All other Employees: • The employee will not give less than one day’s notice in the first week of employment; • After the first week of employment, not less than one week’s notice for weekly paid employees and two weeks in the case of monthly paid employees.
When dealing with resignations and concomitant issues, it is critical to consult the Basic Conditions of Employment Act or the relevant Bargaining Council’s Main Agreement, says Douw Breed, a director at Barnard Incorporated Attorneys
hen an employee tenders his or her resignation, the Basic Conditions of Employment Act or the Main Agreement prescribes certain notice periods by which the parties are bound. Employers are urged to familiarise themselves with the content of the specific sector’s Main Agreement. The Basic Conditions of Employment Act, Section 37, requires the following notice periods: • If the employee has worked less than
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six months, he or she is required to tender one week’s notice; • If the employee has worked more than six months but less than one year, he or she is required to tender two weeks’ notice; • If the employee has been in employment for longer than one year, the notice period requirement is four weeks. The Main Agreement of the Motor Industry Bargaining Council (MIBCO) has different requirements, with Clause
Though minimum requirements pertaining to notice periods that need to be adhered to are set out by either the Act or the Main Agreement, contractually agreeing to extended notice periods is not prohibited. However, employers are cautioned against introducing extended notice periods as they might pose a number of risks. For example, if an employer’s financial position deteriorates to the extent that he or she is required to retrench employees who have been given extended notice the impact on finances will be even greater. Similarly, if an employee wishes to resign due to a better offer, an extended notice period that has been contractually agreed upon may prevent him or her from taking up the new position.
LABOUR That said, it is not uncommon for employees to tender longer notice periods than what has been agreed upon or what the Act or Main Agreement prescribes. Often it is troublesome employees who elect to give longer notice periods – and this begs the question: Is an employer obliged to accept a notice period as tendered by an employee? In addressing this contentious issue, Uthingo Management (Pty) Ltd v Shear NO and Others ( 6 BLLR 590 (LC); (2009) 30 ILJ 2152 (LC))  ZALC 263;  ZALC 9 (15 January 2009) offers some clarity. The facts of the matter: In terms of their employment contracts, the applicants were entitled to a bonus if they remained in the employ of the company until a stipulated date – March 31. Though both had resigned – each had accepted positions at their employer’s direct competitor – they had tendered longer notice periods than what was required and would therefore be in the employ of the company on March 31. However, the employer invoked the notice clause contained in the employment contract and indicated that he would accept the resignations of the employees on that basis. Their services would therefore be terminated before March 31, making them ineligible to receive bonuses. Both applicants referred a matter of unfair dismissal to the CCMA – they contended that, by enforcing a shorter notice period, the employer had effectively dismissed them. At the arbitration, the employer argued “that the employees had unilaterally and voluntarily terminated their services” and, even if Clause 24 of their employment contracts had been
incorrectly interpreted, this could not in itself constitute unfair dismissal. The employer further argued that the employees had failed to discharge the onus of proving the existence of unfair dismissal. The employees countered that Clause 24 of their employment contracts provided only for a minimum notice period and that they were each entitled to give written notice in which they could indicate the date on which they wished terminate their services. They further argued that by requiring them to leave the company before the date they had stipulated, the employer had effectively unfairly dismissed them. The commissioner at the arbitration found that the employer unfairly dismissed the employees and the matter was taken on review. The Evolution An employment contract can be terminated by either an employer or an employee by providing written notice in terms of Section 37 of the Basic Conditions of Employment Act. What the commissioner in the arbitration did not take cognisance of is that, once an employee has resigned, the employer can either elect to keep the employee working in the notice period or pay the employee in lieu of notice.
(LAC), Farlam J said at 772C-D with regard to the test for resignation that an employee has to either by words or conduct evidence a clear and unambiguous intention not to go on with a contract of employment. What is of paramount importance in the above matter – referred to by Spoelstra J in Humphries & Jewell (Pty) Ltd v Federal Council of Retail & Allied Workers Union & others (1991) 12 ILJ 1032 (LAC) at 1037G)) – “it should not be left to an employee to dictate the terms on which his employer should accept his repudiation.” In the case of Uthingo Management (Pty) Ltd v Shear NO and Others, the appeal court found that the resignations of each of the employees had been unambiguous and clear. It further held that the commissioner had erred in finding that the dismissals were unfair. In the court’s view, the CCMA lacked jurisdiction to entertain the dispute. It was a clear matter of resignation. In conclusion, it appears that an employer is not obliged to accept extended notice periods tendered by employees which have not been consented to or agreed. Employers are well within their rights to rely on the notice period agreed upon at the commencement of the employment contract, or as prescribed by the Act or Main Agreement.
It is imperative however, that the resignation of the employee is unambiguous and unequivocal and that his or her intention is clear. Similarly, the appeal court held that the intention of the employer in its acceptance of any resignation should also be clear. In Fijen v Council for Scientific & Industrial Research (1994) 15 ILJ 759
Douw Breed (BCom (NWU) LLB (NWU)) is a director at Barnard Incorporated Attorneys , Centurion www.automobil.co.za
What is POPI?
With enactment looming of the Protection of Personal Information (POPI) Act, Barnard Incorporated Attorneys offers an easy, five-step guide to ensure compliance
he Protection of Personal Information Act 4 of 2013 is designed to regulate the processing of personal information by private and public bodies. The Act has been formulated to protect both individuals and business entities â€“ known as data subjects â€“ to whom the personal information relates. The Act sets out how personal information must be processed, how such information must be stored by a responsible party and how the information must be deleted or destroyed at the end of its useful life cycle. It also regulates how a responsible party should conduct itself when a breach of personal information belonging to a data subject occurs. Personal information means information relating to an identifiable, living, natural person and, where it is applicable, an identifiable, existing juristic person, including, but not limited to: (a) Information relating to the race, gender, sex, pregnancy, marital status, national, ethnic or social origin, colour, sexual orientation, age, physical or mental health, well-being, disability, religion, conscience, belief, culture, language and birth of the person; (b) Information relating to the education or the medical, financial, criminal or employment history of the person; (c) Any identifying number, symbol, e-mail address, physical address, telephone number, location information, online identifier or other particular assignment to the person; (d) The biometric information of the person; (e) The personal opinions, views or preferences of the person; (f) Correspondence sent by the person that is implicitly or explicitly of a private or confidential nature or further correspondence that would reveal the contents of the original correspondence; (g) The views or opinions of another individual about the person; and (h) The name of the person if it appears with
other personal information relating to the person or if the disclosure of the name itself would reveal information about the person. Processing of personal information means any operation or activity or any set of operations, whether or not by automatic means, concerning personal information, including: (a) The collection, receipt, recording, organisation, collation, storage, updating or modification, retrieval, alteration, consultation or use; (b) Dissemination by means of transmission, distribution or making available in any other form; or (c) Merging, linking, as well as restriction, degradation, erasure or destruction of information. A responsible party is defined as a public or private body or any other person who, alone or in conjunction with others, determines the purpose of and means for processing personal information. To whom does the Act apply and how will its implementation affect you? The Act applies to any person or business entity as well as a Government body which processes personal information relating to a data subject. When looking at the definitions of personal information and processing as stated above, we can deduce that the Act applies to most individuals and business entities. Any responsible party needs to implement measures to make sure any personal information it processes is kept secure, is used only for the purpose it was initially given, is processed in a responsible manner and is returned to the data subject and/or deleted and destroyed once the mandatory storage period has lapsed. Is the Act necessary? Many international traders are prohibited from trading with countries without the same or similar information protection legislation as
their own. The South African legislature has stepped in and formulated the Act to ensure international trade and commerce continues and grows within our country. With this in mind, the Act should be welcomed by the public. Sanctions under the Act Non-compliance with provisions of the Act is severe. Sanctions for offences committed range from a fine and/or imprisonment of 12 months for minor offences to a fine of up to an amount of R10-million and imprisonment of up to 10 years for major offences. Get ready! With enactment of the Act looming, many businesses may be worrying about compliance. From the date of commencement of the Act all responsible parties will have a grace period of one year to comply with provisions, but that does not mean that parties should delay their processes. It is recommended that a five-step plan be utilised to ensure compliance: 1. Conduct an internal audit to determine how personal information is currently processed; 2. Perform a gap analysis that compares how the current system of processing personal information meets the requirements of the Act; 3. Ensure that awareness training be given to all staff members within an organisation or company; 4. Identify an internal team to implement processes adopted; 5. Implement procedures and processes to ensure compliance. Even though the provisions of the Act may seem onerous, compliance can be achieved relatively easily by any individual or business entity by implementing the five-step plan. The Act will broaden opportunities for all entrepreneurs in South Africa to do business abroad and, for this reason, should be embraced.
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Customer satisfaction and social media Sometimes customer complaints are deserved, and at other times not. Regardless, it is important to address all types of complaints in a way that mitigates relational damage, says Fergus Ferguson
he adage that there is no second chance to make a good first impression is quite true in business. Dealing with customers with honesty and integrity is an essential business principle. It is imperative that customers have a sense of trust when interacting with a business. Ensuring that customers are treated with kindness and respect and that they are satisfied with their product or service is what cultivates their sense of trust. A good customer base is a company’s most valuable asset. Knowing who customers are and staying in touch with them is important. It’s best to view every customer transaction from a relationship point of view and not from a transaction perspective. Studies show that it costs less to keep and maintain a current customer base than to get a new customer – in most cases up to six times less. The key to sustained profits is repeat customers, and happy customers become repeat customers – who also refer others to the company. But when customers do complain, they no longer do so through traditional routes. A multitude of websites inviting people to post their negative experiences with a business are easily
accessible. While the internet has opened up a new frontier of business opportunities for the enterprising professional, it has also given everybody a voice. Sometimes complaints are deserved, and at other times not. Regardless, it is important to address all types of complaints in a way that mitigates relational damage. The key to responding well to online complaints is to try and have a conversation with communities, and respond to complaints or concerns, in an area where you have some control. While it may be tempting to post a reply in defence of your business on every site that has something negative to say, remember that, if you post to a site that is run by the person who is upset, you are putting your voice in their control. What they post becomes their choice and they control the (very public) conversation. An alternative way to address their concerns may be to send a private e-mail asking if the person can be contacted by phone to address their concerns.
axe to grind, or who are logging illegitimate complaints, because logical responses have little effect on purely emotional public outbursts. A business’ voice is powerful and, because of that, can be subject to interpretation. Those who are emotional may have other motives for posting beyond simply hoping for a resolution. Learning when to protect your business’s voice is just as important as knowing when and what to say. Minimise the amount of online complaints by having a good customer service department that responds quickly and transparently. People are becoming increasingly intolerant of excuses and a swift apology and quick resolution of their complaint is often the best way to preserve customer relations. If you’re in business long enough people will complain about you. Knowing when and how to respond can be the difference between deepening the wound and bringing about resolution, and diplomatic handling of a complaint will keep your customer relationships healthy.
It’s important to know when to respond and when to stay silent. It is fruitless to engage people who are obviously venting or have a proverbial
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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Managing HIV/AIDS The second in a series of reports which answers frequently asked questions about HIV/AIDS Q Does sexual contact with many partners increase the risk of HIV infection? A Yes. Unprotected sex with many partners increases the risk of coming into contact with someone who is infected with HIV, as well as someone who may have other sexually transmitted infections, such as syphilis, gonorrhoea, chlamydia and herpes.
Q Do STIs (sexually transmitted infections) increase the risk of getting HIV? A Yes. They increase the risk of getting HIV and of transmitting HIV. Any inflammation or sore caused by an STI such as herpes, gonorrhoea, chlamydia or syphilis makes it easier for HIV to H COLLEGE AD the MAYbloodstream 2015 5/8/15 10:11 AM Page 1 enter during sexual contact, so people with STIs are more
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susceptible to getting HIV infection. Because many STIs do not produce symptoms at all, particularly among women, it is extremely important for sexually active women to be tested for STIs, even if there are no apparent symptoms. Studies have also shown that STIs increase the amount of HIV in the semen and vaginal fluids of people infected with HIV. These increased levels of HIV may make it more likely that sex partners will become infected during unprotected sex. Studies have also shown that treatment for STIs may reduce the likelihood of HIV transmission. Q Can HIV be transmitted by having oral to genital sex? A Yes. People have become infected with HIV by performing oral sex on a partner with M Y CM MY CY CMY HIV, though this is less riskyC than anal or
vaginal sex. Since the mouth is lined with mucous membranes, contact with infectious blood, pre-ejaculation fluid, semen or vaginal fluids may make it easier for HIV to enter the body. Cuts such as those caused by tooth brushing, flossing, canker sores, blisters or other open areas in or around the mouth may further increase the risk of HIV infection.
Contact Redpeg for accredited HIV/AIDS workplace training, consulting and research. email@example.com | 0861 REDPEG or (011) 794 5173 | www.redpeg.co.za)
HOW TO REGISTER WITH THE FIC INFORMATION FOR MOTOR VEHICLE DEALERS NEW REGISTRATIONS MOTOR VEHICLE DEALERS REGISTERED WITH THE FIC
otor Vehicle Dealers (MVDs) not yet registered with the FIC cannot file required reports with the FIC. Unregistered MVDs can register successfully with the FIC by doing the following:
INFORMATION FOR MOTOR VEHICLE DEALERS REGISTERED ON THE PREVIOUS FIC SYSTEM
otor vehicle dealers (MVDs) that were registered with the FIC on the previous system need to update their details on the new system, called goAML. MVDs will not be able to file reports with the FIC unless their registration details are updated on the new FIC system and the FIC approves their registration. The FIC has e-mailed a new entity registration identity to MVDs, called an “ORG ID”. This was sent to the Reporting Officer of registered MVDs from the address firstname.lastname@example.org. The ORG ID replaces the “RI” registration number previously issued to registered MVDs. All MVDs must first register a Reporting Officer on goAML. They then need to update their MVD registration details to file reports with the FIC.
The MVD’s Reporting Officer must be the first person to register and access the goAML website using the following link: https://goweb.fic.gov.za/goAMLWeb_PRD. Click on “Register as an organisation”. Complete all required fields for the MVD and the Reporting Officer and attach the following documents: o Copy of ID/Passport document certified by a Commissioner of Oaths o Signed authorisation letter containing the details of the Compliance Officer o Click “submit”. The details will be submitted to the FIC for approval Once the registration form has been submitted a registration reference number (SHREG number) will be provided to the Reporting Officer. The Reporting Officer will receive an e-mail from the FIC confirming the approval or rejection of the registration and will confirm the entity’s ORG ID. Once the registration has been approved by the FIC, the Reporting Officer is required to communicate the ORG ID to further delegated users (if any) within their MVD who are permitted to use the system. All other delegated users must also register as users on the system by clicking on “Register as a person” and inserting the ORG ID of their entity, to add themselves as a user of their MVD. All delegated users must also attach a certified copy of an ID/passport and a signed authorisation letter from the MVD when registering.
PUBLICATIONS The FIC has published documents to assist institutions with the registration process. Feel free to download the following documents from www.fic.gov.za: Process flow diagram Registration guideline for accountable and reporting institutions Public Compliance Communication 05A on Registration
To add the Reporting Officer to your institution profile on goAML, and to update institution information please follow this process:
The MVD’s Reporting Officer is the first person to access goAML through the FIC website or using the following link: https://goweb.fic.gov.za/goAMLWeb_PRD. The Reporting Officer must keep the ORG ID handy. Click on “Register as a person”. Do not click on “Register as an organisation” as this will create a duplicate registration which will be rejected by the FIC. Insert the ORG ID and complete the registration form for the Reporting Officer, attach the following documents: o Copy of ID/Passport document of the Reporting Officer certified by a Commissioner of Oaths o Signed authorisation letter containing the details of the Reporting Officer. If this is not attached the registration will be rejected by the FIC Click “Submit”. The details will be submitted to the FIC for approval. The FIC will send an e-mail to the Reporting Officer confirming successful account registration. The Reporting Officer must then access the system by logging on to goAML and update the MVD’s details by making changes where necessary. Once confirmation has been sent by the FIC confirming the successful updating of the MVD’s details, the registration is complete. The Reporting Officer will now be able to file reports with the FIC. If the MVD requires the registration of further delegated users, then the Reporting Officer must communicate the ORG ID to these delegated users, so they can commence their user registration.
Consult the FAQ on the FIC’s website for more information on how to add delegated users. To confirm your ORG ID number, kindly contact the FIC. www.automobil.co.za 2016/2017 For more information on registering you business with the FIC contact the Compliance Contact Centre on 0860 222DECEMBER/JANUARY 200. For regular news on the registration and reporting platform and other developments affecting your industry visit the FIC’s website at www.fic.gov.za.
RMI UPDATE Answers by experts to questions received recently by the RMI! Q: What is the purpose of a cam belt and how often should it be changed? A: The cam belt synchronises the rotation of the crankshaft and the camshaft(s) so that the engine's valves open and close at the proper times during each cylinder's intake and exhaust strokes. The lifespan of cam belts vary depending on the manufacturer. It is best to refer to your vehicle handbook for a guide on when the cam belt should be changed. Q: When should my vehicle’s brake pads be changed? A: Brake pads should be replaced at 70% of total wear to ensure the safety of the driver. It’s also important that your mechanic inspects the brake discs for wear, so ensure you suggest that this is done.
Q: What fluids need to be changed during a service? A: Apart from the engine and gearbox oil, it is also important to change the vehicle’s brake fluid and radiator coolant at the correct intervals. Ask your mechanic how often this should be done and whether it was done when your car was last serviced. Q: What is the usual procedure regarding the carrying out of work that was not initially requested by a customer? A: It is a good idea to ask your mechanic to contact you with a quote, should he find any other work that needs to be done. The quote should include an approximate cost for the parts and labour. Remember that preventative maintenance through early detection can prove more cost effective in the long term.
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Together www.automobil.co.zamoving Gauteng City Region forward 61 DECEMBER/JANUARY 16/2017
62 DECEMBER/JANUARY 2016/2017
The RMI welcomes these new businesses into membership Member’s Trading Name
Member’s Trading Name
Automotive Service Centre Discovery
I Boost Service & Repair Centre
Imperial Mitsubishi Paarden Eiland
Member’s Trading Name
HVK Mini Worx
Romark Service Centre
Rudia Autobody & Paint
S S&J Benoni Auto
Sigopolo & Sons
Barnett Auto Electric & Spares
Jaschke Metal Engineering
SJ Mechanical Specialist
Beat Boyz Exhaust & Service Centre
Jolenhla Executive Auto Services
Stoney’s Wheel & Tyre
Bryanston Auto Tech – Bosch
Supa Quick Riverside
Kolbim Auto Spares
Car Care Clinic Little Falls
Car Care Clinic Pretoria West
Car Service City Randburg
Carserv Auto Repairs
The Vehicle Inspector
Total Motor Maintenance
Mag Auto Centre D
Dent Doctor Autobody Secunda
Unique Tune Up
Upsolute Gearbox & Diff Image
N F Fed Auto Bethlehem
Nevil’s Tractor & Auto
Ngamla Auto Clinic
V&R Auto Collision Repair Specialist
George Supa Quick
Phondus Maintenance & Towing
Pulse Auto Electrical
ADVERTISERS AUTOMOBIL – DECEMBER/JANUARY 16/2017 EDITION
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.
-www.automobil.co.za DECEMBER/JANUARY 16/2017
073 016 8424
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011 444 6454
Africa Automotive Aftermarket Solutions
011 879 6000
19, 33 & 57
Alert Engine Parts
011 870 0300
Autocosmos Biz (Electrolog)
012 327 6210
011 799 1068
012 327 5404
012 450 2222
011 609 4484
Financial Intellegence Centre
012 641 6000
Kigima Auto electrical Training Centre
012 327 2586
Moto Health Care
0861 000 300
10 & 11
Motor Industry Staff Association
011 476 3920
0861 101 475
Precision Power Components
011 392 2012
011 453 0924
011 651 9600
Silver Falcon Trading
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62 & 63
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011 706 7184
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Ford introduces the gremlin test Ford employees are tasked with secretly planting wrong and faulty parts onto the assembly line as part of a process to ensure all new vehicles built at a plant in Valencia meet rigorous quality standards Ford’s industry-first Vision System is designed to photograph, check and track every single part of each of the 400 000 cars and vans assembled each year at the company’s plant in Valencia, Spain – and each of the 330 000 engines that are built there. According to a Garciandia, gremlin tests are an innovative way of ensuring that each process works correctly. “The Vision System is crucial to ensuring every single part of each vehicle is just right,” he says. “The gremlin test means we can ensure the system is working perfectly. It is a game with a very serious point – we are making incorrect parts harder to spot all the time.” Ford produces more models at its state-ofthe-art mega-plant than it does anywhere else in Europe, including passenger cars, SUVs, MPVs and light commercial vans. On the engine side, the plant produces 2,0-litre and 2,3-litre Ecoboost units.
pecial technician Xabier Garciandia’s working day involves literally trying to put a spanner into the works of one of the world’s most advanced auto plants – by making sure wrong parts and faulty components are secretly placed on the assembly line.
66 DECEMBER/JANUARY 2016/2017
The Vision System captures more than a billion digital photographs every 14 days, generating a composite image – comprised of 3 150 different pictures – of each part. The composite is used as the master against which each new photographed part is compared, allowing engineers to pick out discrepancies on the spot.
Faulty engine parts, wrong steering wheels, and even incorrect dashboards have been sent down the line, with the test now extended to all 34 stages of assembly. “The way in which we all use digital cameras has totally changed the way we record our daily way of life, and is now transforming the way we build engines and cars,” says Garciandia. “But we also have to test the tests, and we are doing this in a way that is very simple, but which we believe is unique in the auto industry.” Ford has introduced a range of rigorous and in some instances unusual quality processes at the plant, where a new vehicle rolls off the production line every 40 seconds. These include: • Ultra-sensitive microphones that are used to register engine connectors; • Engine listeners to ensure that each new Focus RS is running flawlessly; • Ostrich feathers that are used to dust models before painting to enhance quality; • An industry-first digital camera system that identifies defects in paint work; • Vehicle audio testing that reflects customer use of audio streamed via Bluetooth; • A virtual rolling road test to evaluate advanced driver technologies.
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and we’ll keep it on track! MiWay Business Insurance is installing Ctrack devices to all its insured heavy commercial vehicles to support stolen vehicle tracking and recovery. We are in the business of keeping vehicles, fleets and their occupants ‘Always Visible’ by providing you with an online fleet management portal free of charge. We cover business vehicles and trailers, goods in transit and business all risks - with a great range of other benefits too. Isn’t it time you experienced a little more #insurancefreedom? For a quote, SMS “Business” to 37185 or visit our website.
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Tel: +27 11 444 6454 Fax: +27 11 444 5677 e-Mail: firstname.lastname@example.org www.automobil.co.za * Product / Colour may vary from image provided, subject to stock availability. (E&OE)
Published on Nov 30, 2016