BREXIT REACTION: ‘UK needs to strengthen trade ties with SA’
AFTERMARKET START-UPS Global growth on the rise
AUTOMECHANIKA JOHANNESBURG 2017
The search is on for SA's top automotive products NADA: THE MOTOR DEALER'S VOICE RMI UPDATE: TORRE BUYS TOP CLASS AUTOMOTIVE; TENNECO SETS TRAINING MILESTONE; MIWA SETS THE
www.automobil.co.za FASHION PACE; WIN A TOOL CHEST FROM JONNESWAY; PARTINFORM WOWS TZANEEN; GOLF DAY SUCCESS; SAPRA PUTS RAS INTO FOCUS; DOE HOLDS TRANSFORMATION WORKSHOP; MOTORSPORT SKILLS PROGRAMME LAUNCHED
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22 -JUNE NOVEMBER 2014 2017
CONTENTS – JUNE 2017 COLUMNS
5 Driver’s Seat: Jakkie Olivier, CEO of the RMI 7 Editor’s Letter: Wynter Murdoch 9 Hot Stuff! New product showcase 56 Frequently Asked Questions: Answers from RMI experts 58 Dealing with AIDS/HIV in the workplace 74 Tailpiece: Weird jobs in the car industry UPDATES
Editor: Wynter Murdoch firstname.lastname@example.org
12 News 28 The Motor Dealer’s Voice
Sub-editor: Peggy Lendrum email@example.com Design and layout: Heinz Bawa firstname.lastname@example.org
Reporters: Ryan de Smidt email@example.com
Reuben Van Niekerk 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) 327-6107
Gary McCraw, National Director of NADA, explains some of the association’s key objectives and activities
Torre acquires Top Class Automotive; Tenneco sets training milestone; MIWA sets the fashion pace; Engen launches driver wellness programme; Win a tool chest from Jonnesway!; Partinform wows Tzaneen; Annual golf day success; SAPRA puts RAS into focus; DoE holds transformation workshop; Motorsport skills programme launched
COVER STORY 20
Rewarding the Best
Entries open for Automechanika Johannesburg 2017’s Innovation Awards.
RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Denice Grobler, Shamika Singh, Danelle Van Der Merwe, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman
Maintaining Forecourt Profitability
Further insights into the factors that attract customers to service stations
The Chinese are Coming!
There’ll be no stopping BIAC once it begins to produce vehicles at its Coega plant
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).
Jake Venter examines new and smart ways to cut energy wastage
Tomorrow’s Technologies Today
In developing its GT supercar, Ford used the model as a technology test bed
Automobil is available to purchase from the publishers at R25 a copy.
Protecting Intellectual Property
Automobil is produced and published monthly by Future Publishing (Pty) Ltd for the Retail Motor Industry Organisation. The views and opinions expressed in the publication are not necessarily those of the publishers or the Retail Motor Industry Organistion. While precautions have been taken to ensure the accuracy of advice and information contained in editorial and advertisements, neither the publishers nor the Retail Motor Industry Organisation can accept responsibility for errors, misrepresentations or omissions, or for any effect or consequence arising therefrom. Permission to republish any article or image or part thereof must be obtained in writing from the publishers.
Why it’s important to register your design
Jurisdiction of the CCMA
Before you refer a dispute to the CCMA, establish whether or not the forum is entitled to hear the matter
Sales practices in the second hand car market
© Future Publishing (Pty) Ltd
JUNE 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
4 JUNE 2017
Transforming the workplace
Following the release of government’s latest Annual Employment Equity Report, Jakkie Olivier, CEO of the RMI, outlines some of the enablers the Organisation has identified in support of achieving broad-based transformation in the workplace
he Minister of Labour last month launched the 2016 Annual Employment Equity Report which clearly demonstrates that progress has been made at junior, middle management and professional levels over the last couple of years. However, the trajectory to achieve broad demographic representation at top management level is regarded as insufficient. The statistics have been calculated from a total of 26 255 reports received by the Department of Labour (DOL), primarily from the private sector and covering more than 5,2-million employees economically active in South Africa across the manufacturing, wholesale, finance, agriculture, construction and other business sectors. At top management level, 68,5% of the positions are occupied by Whites, compared to 14,4% by Africans, 8,9% by Indians, 4,9% by Coloureds and 3,4% by foreign nationals. At the professionally qualified level, the African group represents 41,5%, compared to the White group with 37,5%, Coloured 9,7%, Indian 9,5% and foreign nationals 2,8%. Another statistic is that of gender representation – males occupy 78% of all positions at top management level, 66,7% at senior management level and 54,4% at the professionally qualified level. Persons with disabilities represent only around 1% across the different employment levels. The RMI has identified transformation within the automotive industry as one of its strategic objectives and considers employment equity and skills development in particular as enablers of
broad-based transformation that could substantially support our government’s objectives to achieve a well-balanced workforce according to the South African demographic profile. By means of its regional presence, the RMI is able and equipped to assist members through various initiatives in the areas of skills development and employment equity, projects and on-site assistance. A further strategic objective of the RMI is that of monitoring any government initiative or pending legislation that may impact on members and the way in which they conduct their businesses. The RMI, therefore, has a duty and responsibility to not only monitor and influence such initiatives and legislation, but to inform and assist the industry of the possible changes. A current development that needs the attention of industry relates to a change in the legislated employment equity arena. The Employment Equity Commission announced that the DOL has commenced a process of bringing Section 53 of the Employment Equity Act into operation – this would require Employment Equity compliance certification as a basis for doing business with the State. The Commission is also exploring the possibility of establishing employment equity sector targets, which would require businesses in a particular sector to achieve such targets over a period of time. In anticipation of these sector codes and on the advice of the Commission of Employment Equity, the Minister of Labour has published a Code of Good Practice on the preparation, implementation and monitoring of the
Employment Equity Plan, which was issued and published in the Government Gazette on April 26. Members can use this Code to prepare and submit their business Employment Equity Plan and compile and submit the periodic reports associated with it. Access to highly skilled industrial relations specialists deployed in the various RMI regional offices is but one of the many benefits of being a member of the RMI. These IR specialists are able to provide practical, on-site assistance at a very competitive rate with the preparation and submission of Employment Equity plans. Members who are unable to implement the Code of Good Practice on the preparation, implementation and monitoring of the Employment Equity plans can contact their nearest RMI office for assistance and guidance. Employment Equity is essentially internal business transformation and, as part of the broader industry transformation initiatives of the RMI, members are encouraged to not only scrutinise the Code of Good Practice on the preparation, implementation and monitoring of the Employment Equity plans but also to apply this Code to their businesses. We don’t know yet whether the Minister of Labour will publish sector targets for the retail motor industry, but we remain convinced that it would not be an imperative in the event that our industry displays satisfactory internal transformation. * A copy of the Code can be downloaded at: http://bit.ly/2r7iHUn
For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300
JUNE 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 - JUNE 2017
beyond expectation, that are innovative and promote efficiency, are perceived to represent good value for money, are of excellent quality and bring fresh perspectives to the segments in which they compete.
he cover story of this month’s edition reflects a topic for which the RMI has extended strong support over the years – Automechanika Johannesburg’s Innovation Awards.
Expo Centre at Nasrec – serves as a gateway to the African automotive aftermarket, targeting trade visitors from sub-Saharan Africa. It is the largest trade fair of its type on the African continent.
For the fifth time in a decade, Automobil – the RMI’s official journal – will again be promoting the initiative, the aim of which is find as many pioneering aftermarket products as possible within South Africa’s automotive industry.
The purpose of the Innovation Awards is to celebrate the attributes of products judged to be the best in the aftermarket – whether locally manufactured or imported. Entries will be assessed by an independent jury of automotive experts who will score products considered ground breaking from a variety of perspectives.
Winning products will receive winning treatment at Automechanika Johannesburg 2017 when the trade fair opens on September 27. The event – which will be held at the Johannesburg
Functionality, practicality, styling, benefits to users, environmental friendliness and other perceived pioneering qualities are among the specifics that jury members will be searching for. The experts will come from the ranks of local aftermarket and automotive focused organisations, including the RMI, NAACAM, NAAMSA and the automotive media. If you manufacture, distribute or supply cutting edge products in any of these categories, consider entering the Awards – the accolades are significant. You’ll find more details on how to enter on P20 of this edition.
Jury members will look to uncover items that hold the promise of performing
Wynter Murdoch Editor
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SPEAK TO US RMI EXECUTIVES
hief Executive Officer: C Jakkie Olivier email@example.com Chief Operations Officer & Human Resources Director: Jan Schoeman firstname.lastname@example.org Financial Director: Renee Coetsee email@example.com Company Secretary: Gary McCraw firstname.lastname@example.org
RMI BOARD MEMBERS
Jeánne Esterhuizen (President) Barry Canning (Vice-President) Ferose Oaten Jakkie Olivier Bruce Allen Lindsay Bouchier
TDAFA, ACRA Hedley Judd email@example.com
TRAINING, TRANSFORMATION & ENTERPRISE DEVELOPMENT Vacant SADFIA Louis van Huyssteen firstname.lastname@example.org
ERA Pieter Niemand email@example.com NAZA Julian Pillay firstname.lastname@example.org
MPEA, MIMA Erwin Stroebel email@example.com MDA Jeff Molefe firstname.lastname@example.org
RMI PARTNERS RMI4Sure 0860-104-202 RMI4Law 0861-668-677 RMI4BEE 0861-764-233 RMI4OHS 012-998-7139
RMI HEAD RMI HEADOFFICE OFFICE Danelle van der Merwe Brand and Communication Manager email@example.com
Q&S, SAVABA Vacant
Neo Bokaba Transformation Manager firstname.lastname@example.org
MIWA Vishal Premlall email@example.com
011-789-2542 | www.rmi.org.za Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194
NADA Gary McCraw firstname.lastname@example.org VTA Joy Oldale email@example.com
RMI REGIONAL OFFICES
SAMBRA Edwin Martin firstname.lastname@example.org
Highveld: Jeff Molefe email@example.com Randburg: 011-886-6300
Northern: Pieter Niemand firstname.lastname@example.org Pretoria: 012-348-9311 KwaZulu-Natal: Julian Pillay email@example.com Durban: 031-266-7031 Eastern Cape/Border: Erwin Stroebel firstname.lastname@example.org Port Elizabeth: 041-364-0070 Western Cape: Joy Oldale email@example.com Cape Town: 021-939-9440 Free State/Northern Cape: Louis van Huyssteen firstname.lastname@example.org Bloemfontein: 051-430-3294
SAPRA Viv Corinaldi email@example.com
8 - MAY 2015
Vehicle Testing Association
HOT STUFF AMAGflexTwist clean set of wheels! RIL3600HP
Awesome Products Corporation of the United States has announced what it claims to be an 6000K UV effective, cost efficient product with which to clean wheels using only soap and water.
3 Torch function
Ultra-bright inspection lamps Inspection Lamps
Ultra Bright LED Inspection Lamps
UK-based Ring Automotive has introduced to the South African market a selection of ultra-bright, LED inspection lamps. The MAGflex range comprises rechargeable and cordless twist, flex, and flex UV lamps that provide up to 440 lumens of light output.
The Better Than A Brush Wheel Scrubber is 4.5 said to clean rims quickly and easily thanks to 4 100% contact with the surfaces with which it comes into contact. The company has applied 3.5 for a patent for the device.
Designed for multi-positioning to allow ultimate directional lighting, the lamps include magnets for hands-free use, integral hanging hooks, anti-slip grips and Li-ion batteries for fast, consistent recharging.
Whether you are looking for an inspection lamp that can rotate through 360˚, ratchet through 180˚, or one that can identify fluorescent dyes used for leak detection, the MAGflex range offers a solution.
• Rechargeable and cordless • New technology COB LED provides 250 lumens light output • Lamp can rotate 360º with a 180º ratcheting design to allow ultimate directional lighting • White light output simulates daylight • Wide angle of light output that has uniform intensity • Magnet for hands free use • Integral hanging hook • High power LED torch function • Anti slip comfortable grip • Li-ion battery for faster consistent recharging • Includes AC mains charger and 12v DC charging lead
In a statement, Don Meyns, the company’s president, says most wheels can be cleaned using only water. “Wheels that have been neglected may need to be cleaned with chemicals initially, but water or soap and water are all that is needed for subsequent cleanings,” he maintains. Meyns says the Better than a Brush Wheel Scrubber is safe for all surfaces, including Specifications aluminum, magnesium, chrome, steel and RIL3600HP Part number painted “Detailers who tested the 250 Lumens Lightwheels. output 3.7v Li-ion 2200mAh Battery product during development stated that it 8.14Wh Input 230v AC-50/60Hz Mains adaptor cleaned ‘better than a brush’ – which is why Output 5v DC-500mA L90 x H400 x D58mm Pack dimensions we chose the name.” 10 x1 Case qty Barcode
For information log on to www.ringautomotive.com or contact 082 652 1357 Key 1 2 3 4 5 6 7 8 9
High power 1W torch Robust polycarbonate lens Integral hanging hook 3W COB LED Magnet Charging indicator Charging socket Power button 360º Rotating mechanism Anti slip comfortable grip Ratchet mechanism Magnetic base
Identify the thread 10 11 12
Awesome Products has extensive experience firstname.lastname@example.org www.ringautomotive.co.uk in the field of effective, eco-friendly cleaners. The company manufactures Bugs Off Pads, BOSS Interior Cleaning Pads and BOSS Aircraft Cleaning Pads. For information log on to www. betterthanabrush.com
Gates Corporation has introduced an international thread identification kit with expanded thread sizes for both metric and British fittings.
Along with Gates’ pocket thread ID guide and measuring tools, the kit helps users to determine the correct couplings for hydraulic assemblies. In a statement, a company spokesman says equipment with metric and British threads is becoming more and more prevalent and the new, improved kit is aimed at making thread identity easy. The kit includes: 21 metric thread sizes, male and female; 10 British thread sizes, male and female; Gates’ Pocket Thread ID guide with measuring tools. For information, log on to www.gates.com
Celebrating Nürburgring’s 90th The Nordschleife circuit of the Nürburgring racetrack in Germany has earned a reputation as the world’s most challenging racetrack. The 20,832km-long circuit – nicknamed the Green Hell – celebrates its 90th anniversary this year and, to commemorate the occasion, has released a special edition t-shirt. Bearing the legend: Nordschleife – you’ll never race alone, the high quality t-shirt, which is available in sizes S to 3XL, can be ordered online through the Nordschleife shop, accessible at www.nordschleife.us. The cost excluding shipping is about R340.
JUNE 2017 -
YOU DO LIFE.
WE CARE FOR IT.
10 - SEPTEMBER 2016
Nothing can replace the role of a father. Our options cater to your healthcare needs.
Happy Fathers Day! Call 0861 000 300 to arrange a face-toface consultation to discuss the healthcare needs of you, your family and staff members; or visit www.motohealthcare.org.za.
SEPTEMBER 2016 -
Gordhan urges ownership of SA’s future an enormous amount of potential and hope, but he urged business leaders to take collective ownership and “board the transformation train” for the long-term economic sustainability of the country. He said business leaders should educate not only themselves, but also their staff members on what the longterm implications of state capture and any further credit rating downgrades would mean to the man in the street – especially the poor.
ormer Finance Minister Pravin Gordhan has urged business leaders in the retail motor industry to take collective ownership of the country’s economic future by educating their staff members about the scourge of state capture, fighting corruption, promoting integrity, and driving transformation. Speaking last month at a top-level industry brunch hosted by the Motor Industry Staff Association (MISA) – a trade union that represents well over 42 000 workers in the motor retail sector – Gordhan said South Africa held
to work together with government to rid the country of economic and social hindrance to growth.” He said large pockets of the population were excluded from economic participation. “We cannot continue decade after decade of having South Africans who are not able to collect any assets for future generations,” he noted. “This will lead to a toxic economy and society.”
“State capture is unacceptable and it is a matter of national importance that we must rid our country of this disease. It is undermining not only our sovereignty, but also our fiscal sovereignty,” he warned.
Curbing youth unemployment levels was another urgent priority and Gordhan urged business leaders to support the Youth Employment Scheme, which aims to give employment opportunities to one million young workers.
Gordhan highlighted transformation as one of the key elements to the future success of South Africa’s economy and cited inequality, exclusion and youth unemployment as focus areas where businesses could make a difference.
Hermann Köstens, MISA’s CEO of Strategy and Development, said that a meeting such as that hosted by MISA was but one of the initiatives developed by the organisation to bring business and labour closer together.
“South Africa is still one of the countries with the highest inequality in the world,” he said. “Business leaders must continue
MISA is affiliated to the Federation of Unions of South Africa (FEDUSA), a nonpolitically aligned trade union.
Electric speed record at Nürburgring
new speed record for electrically powered cars has been set at the Nürburgring Nordschleife in Germany, where a NIO EP9 last month achieved a lap time of six minutes 45,90 seconds, shaving 19,22 seconds off the previous benchmark. Gerry Hughes, head of the EP9’s performance programme, said the car’s motor delivered one megawatt of power – equivalent to 1 342 horsepower – to give the vehicle a top speed of 313km/h and a zero to 200km/h time of 7,1 seconds.
12 - JUNE 2017
He said the EP9 had held the previous lap record at the Nordschleife, which was set in October 2016. “The car was already the fastest electric vehicle around the track, but the original record was set in inclement weather and we knew we could better it,” he said.
that it was aiming to have autonomous electric vehicles in the US market in 2020. Last month it unveiled a full size seven-seat all-electric SUV in China, where it will go on sale later this year.
Following the record achievement, Hughes said NIO would be marketing a production run of 10 EP9s, each one made to order with a price tag of $1,48-million (about R19,4-million). The company announced recently
‘Brexit: UK needs to strengthen trade ties with SA’
o keep the United Kingdom vehicle industry’s wheels turning, the country would need to strike postBrexit trade deals with partners such as Turkey and South Africa, as well as those in the European Union. That’s the view of Jim Farley, CEO of Ford Europe, Britain’s biggest manufacturer of vehicle engines. In the past Farley has warned that any trade restrictions after the country severs ties with the EU could add to vehicle costs and endanger production. The company sends some of its UK-built engines to Turkey, where it assembles its range of Transit vans, and then exports many completed vehicles to Britain,
benefiting from the barrier-free trade guaranteed by the EU’s customs deal. And all of Ford’s Ranger bakkies sold in Britain are made in South Africa, reflecting the interconnected supply and sales chain made easy by EU trade agreements with other countries which Britain will now need to renegotiate as it leaves the bloc. “For Ford, it’s not only important for the UK to renegotiate agreements with EU countries – equally important are places like Turkey and South Africa,” Farley said in an address last month at a conference in London. The company’s UK-built engines face tariffs of up to 2,7%, while vehicle imports could be hit by tariffs of up to 10% if Britain has to fall back on World Trade Organisation trading rules. Farley suggested it would be hard for politicians to complete a full Brexit deal between now and March 2019, the
end of a two-year period set out in EU legislation, and there needed to be time to adjust to the new terms. “There should be a transition period, which would be critical for the future of our investments in the UK,” he said. “We are spending a lot of time thinking and talking about how we need to change our operations and what support we need from government and other entities – not only in the UK – to make sure trade friction doesn’t get created.” In 2008, Ford invested R3,4-billion to build the Ranger at its Silverton assembly plant near Pretoria. Last year, it invested a further R2,5-billion to add production of the Everest to the mix. Meanwhile, Ford has announced that, in an effort to boost sagging profits, it intends to cut its global salaried workers by 10% by October 1. The company is targeting $3-billion (about R39,4-billion) in cost reductions this year to enhance its earnings in 2018.
BMW to relaunch 8-Series “We are refreshing our entire product portfolio and strengthening the performance side. Our strategy will focus on the luxury segment, where there are high margins to be earned. We want to make BMW the strongest brand in this segment and increase sales and revenues in the luxury class significantly by 2020,” he said.
arald Krueger, CEO of BMW, says the company will relaunch an 8-Series model in 2018, reviving the upmarket coupé as part of a broad strategic shift to focus on luxury, highmargin performance cars.
Addressing shareholders at the company’s annual general meeting in Europe, Krueger said the new car would debut next year in hard top form and be followed in 2019 by a convertible.
Krueger described the new 8-Series as a genuine sports coupé that would reinforce the brand’s claim to leadership in the luxury class. The model would be based on a 7-Series platform. BMW last marketed an 8-Series model between 1989 and 1999.
Stamp of approval
o commemorate the 50th anniversary of the Canadian Grand Prix, the country’s post office has issued stamps honouring five winning drivers – one for each decade the race has been held. The stamps feature Sir Jackie Stewart (Scotland), Gilles Villeneuve (Canada), Ayrton Senna (Brazil), Michael Schumacher (Germany) and Lewis Hamilton (England). As a group, the five have won 220 Grand Prix races – 17 of them in Canada – taken 216 pole positions, 399 podiums and 16 World Championships. Between 1994 and 2004, Schumacher won an unrivalled seven Formula 1 Grand Prix Du Canada races. Hamilton, who is still racing, has won five. He hopes to make it six at the 38th Grand Prix on Île Notre-Dame on June 11. Stewart and Senna both won two Canadian races – Stewart at Mosport in 1971 and 1972 and Senna in Montréal in 1988 and 1990. Villeneuve recorded his first Grand Prix victory at the island track that now bears his name and remains the only Canadian to win an F1 race in Canada. He died in a racing accident in 1982 while practicing for the Belgian Grand Prix. The stamps – which feature head and shoulders images of the drivers – were unveiled last month in Montreal at a ceremony attended by Villeneuve’s widow, Joann, and Sir Jackie. First day covers of the set can be obtained from Canada Post at www.canadapost.ca/shop.
14 - JUNE 2017
Volvo teams up with Google
olvo Cars has announced a partnership with Google to develop its next generation infotainment and connectivity solution based on Android. The system, which will offer access to a variety of apps and services, will launch in new Volvo models within two years. The Swedish car company says in a statement that the partnership promises to revolutionise how its customers engage and interact with their vehicles. A large catalogue of popular Android apps – developed by Google, Volvo or third-parties – will offer connected and predictive services in and around the car. “We are making an important strategic step with the Google partnership. Google’s platform and services will enhance the user experience by enabling more personalisation possibilities, while Android will offer increased flexibility from a development perspective,” says Volvo spokesman Henrik Green. The partnership reflects ongoing convergence between the automotive and technology sectors as cars become increasingly connected. Volvo believes smart partnerships are the future for the car industry. Google spokesman Patrick Brady says the agreement, which covers a rich ecosystem of Android applications and Google services, aims at enhancing the seamless interactive, in-car experience. The company is also collaborating with Volvo on another initiative to upgrade recent models by adding Google Local Search, a location-based service application, which will be released through a software update to customers whose cars are equipped with Sensus Navigation.
Driven by VARIETY
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General Motors quits SA B y the end of the year, General Motors intends to have ceased making and marketing Chevrolet vehicles in South Africa, the company having taken a decision to sell its Port Elizabeth assembly plant to Japanese manufacturer Isuzu. Making the announcement last month, Stefan Jacoby, GM’s president of international operations, said after a thorough assessment, he believed that it would be best if Isuzu – in which GM held a 30% stake – integrated manufacture of its light commercial KB range into its African business. “We determined that GM’s continued or increased investment in manufacturing in South Africa would not provide us with the expected returns of other global investment opportunities,” he said. In response, Isuzu’s senior executive officer for the sales division, Haruyasu Tanishige, said the Japanese company intended to buy the plant – which is located at Struandale – as well as GM’s shareholding in Isuzu Truck South Africa (Pty) Limited. Subject to regulatory approval, it would take over production of the Isuzu KB light commercial range at Struandale. Further, the deal would give Isuzu control of GM’s Parts Distribution Centre and Vehicle Conversion and Distribution Centre. The company already produces medium and heavy commercial trucks in South Africa, using Port Elizabeth as one of its bases. Tanishige said Isuzu’s intention was to set up a dedicated dealer network to market, distribute and service light commercial vehicles for existing and new Isuzu customers. “We are committed to the South African market,” he said. “Integration of our light commercial and medium- and heavy-duty commercial business will strengthen our base to grow here.”
16 JUNE 2017
Tanishige said Isuzu’s long term aim was to build a strong base in Africa. “Evidence of this is our recent buy-out of GM’s 57,7% shareholding our joint venture in Kenya, which has given us management control of the company. “Integrating the South African light commercial vehicle operations into our business is the next step in laying the foundation for our growth plans in the future.” Ian Nicholls, president of GM South Africa, said subject to consultation with employees and unions, the company would cease to manufacture and supply Chevrolet vehicles to the domestic market by the end of 2017. “Following the recent announcement of the sale of Opel/Vauxhall to the PSA Group, GM continues to work with PSA to evaluate future opportunity for the Opel brand in South Africa. Importantly, existing Chevrolet and Opel customers will continue to be supported in the market,” he said. Nicholls emphasised that the decision to sell had not been made lightly. “We appreciate the support that our employees, customers, dealers, suppliers, the government and other key stakeholders have given us over the many years that we have operated in this country. We will manage the changeover as smoothly as possible.”
According to Nicholls, GMSA would work closely with affected dealers on a robust transition plan. “Customer support center resources will be expanded and all warranties and service agreements, as well as ongoing service and parts requirements for all vehicles, will continue to be honoured,” he said. GM’s decision followed announcement of the company’s evolving strategy to focus investment and engineering efforts on profitable markets. Along with its pull-out from South Africa, the company planned to stop selling vehicles in India by the end of the year, which it said would save it about $100 million annually. According to Dan Ammann, GM’s president, the latest restructuring moves – and a series of earlier decisions to quit unprofitable markets – would allow the company to focus more money, engineering expertise and senior management time on expanding in markets such as China and North America. “What are we spending our time doing?” Ammann said in an interview with Reuters. “Are we spending time pursuing opportunities or all of our time fixing problems?” According a report in Automotive News, GM sold just 49 000 vehicles in India and South Africa combined last year.
Component bidrigging under scrutiny
anada’s Competition Commission has released details of an ongoing investigation into an automotive component bid-rigging conspiracy. In a statement, the commission says it learned of cartel activity in the motor vehicle components industry in 2009 and began investigating a series of alleged conspiracies and bid-rigging agreements among suppliers in December that year. The components were used in the manufacture of motor vehicles in Canada and elsewhere. “Since April 2013, the investigation has resulted in 11 guilty pleas and over $84-million (about R1,1-billion) in fines imposed by Canadian courts. The investigation continues. We are cooperating closely with international partners to ensure cartel participants are brought to justice.”
Engen retains GenNext title
ngen has again been voted the country’s Coolest Petroleum Brand in the Sunday Times Generation Next awards – the eighth consecutive year that the country’s youth has backed the brand.
is important for Engen to move into exciting, innovative spaces where it can engage customers and interact with them.” Looking ahead, Naidoo says Engen will continue to focus on the roll-out of signature convenience offerings across its network, including fast food and restaurant partnerships, Wi-Fi, alternate payment partnerships and a range of other innovations.
Seelan Naidoo, the company’s general manager for retail, says the results validate Engen’s presence, investments and marketing focus. “We are honoured to once again receive the award and we want to thank our young The Sunday Times Generation Next customers for choosing us.” survey is an annual youth brand Naidoo says while Engen has the largest preference and consumer behaviour service station footprint in South Africa, indicator. It tracks consumer behaviour and preferences of South Africans it has been the company’s innovation aged eight to 23 – a highly influential and customer service focus that has segment of the market. placed it ahead of the pack in terms of brand recognition and loyalty. “Staying relevant is a priority and we continue to focus on consistently reinvigorating the brand and investing much effort into remaining an attractive stop-over for youth. As a brand, it
V2V technology on the up
just released report from UK-based research house Juniper reveals that, by 2022, 50% of new cars are expected to be equipped with Vehicleto-Vehicle (V2V) hardware – a technology that enables real-time short-range communication between vehicles. The research indicates that the total number of V2V-enabled consumer vehicles on the world’s roads will reach 35-million by 2022, up from less than 150 000 vehicles now. The strong growth rate reflects the early stages of roll-out for V2V, but will still only represent 2,7% off all vehicles. According to the report, the technology
is set to play an important role in the advancement of autonomous-drive vehicles alongside GPS, Light-Detection and Ranging (LiDAR) and road mapping.
new services such as in-vehicle audio streaming and Vehicle-to-Infrastructure (V2I) services, such as safety and weather warnings for drivers.
However, in order for V2V to be successful, the research says that OEMs would have to include cellular connectivity to provide Over-The-Air (OTA) firmware updates. It recommends that OEMs implement 5G technology at the earliest opportunity to benefit from the newly enabled services, since the technology will play a pivotal role in the future of Vehicleto-Everything (V2X) communications.
As the complexity of these services increases, Juniper estimates that future automotive technologies, including autonomous systems, could each consume up to 1 terabyte of data a day.
Low latency, high bandwidth and wide coverage will be the key enablers of
Research author Sam Barker adds: “For V2X to meet future expectations, development must continue on the premise that 5G will be the underlying connection. This will be underpinned by increasing cross-industry collaborations such as the 5G Automotive Association.”
Messe Frankfurt plans Hypermotion expo
esse Frankfurt, organisers of Automechanika events around the world, has engaged global transport consultancy Frost & Sullivan to help it devise a new mobility trade fair – Hypermotion. The agreement was signed last month. The consultants have been brought in to address topics pertinent to all forms of transportation, the idea of Hypermotion being to provide a platform to highlight requirements and opportunities for the 21st Century mobility industry. In a statement, a Frost & Sullivan spokesman says the company will offer industry knowledge as well as conceptual approaches to ensure the programme reflects the needs of new mobility challenges. “With Hypermotion, Messe Frankfurt will be able to unite key stakeholders such as traditional OEMs, start-ups, transportation providers, technology
developers and governmental players to facilitate productive exchange and the exploration of potential collaborations,” the statement says. According to Arunprasad Nandakumar, team leader for Frost & Sullivan’s Autonomous Driving Division: “With the fair and conference evolving around digitalisation, decarbonisation and disruption, we feel right in our element and are glad to contribute to what we believe will emerge as a major industry event, setting cutting edge standards and bringing people together to shape the future of mobility.” Michael Johannes, Vice President of Mobility & Logistics at Messe Frankfurt, said: “Convergence between industries – for example bringing healthcare and wellbeing into the connected car – is a major driver behind our collaboration. Frost & Sullivan is excellently positioned to add value to our overall concept.” Michael Johannes
Aftermarket start-ups witness global growth
he global automotive aftermarket startup ecosystem was witnessing rapid growth, according to a recent study by mobility consultancy Frost & Sullivan. The study found that original equipment manufacturers (OEMs) such as Toyota, BMW, General Motors and Mahindra were constantly scouting, investing in, and acquiring startups that enabled speed to market, long-term business sustainability and the development of end-to-end automotive solutions for customers. Startups that focused on service aggregators, ecommerce platforms and telematics were driving growth
18 JUNE 2017
and technological penetration globally. Titled Competitive Benchmarking of Select Startups in the Global Automotive Aftermarket, the study analysed the startup ecosystem for the passenger vehicle aftermarket, sharing insights into product and service channel stakeholders. In addition, key funding patterns, OEM interests, partnerships, product capabilities, business strategies and future investment avenues were also discussed and assessed. Research analyst Benson Augustine said developments and trends driving aftermarket startup growth included: Service aggregators and aftermarket
telematics suppliers which acted as innovation partners for existing parts retailers in targeting do-it-for-me (DIFM) customers; Telematics-focused startups which triggered application developments for the mobility segment, while insights and real-time monitoring opened up channels for connected maintenance and repair services. Benson said established e-platforms such as US-based Your Mechanic and Click Mechanic – which provided mobile mechanics on demand to service and repair vehicles – and connected car platforms such as that operated by Mojio in Europe, had garnered the greatest number of investors.
Arrow HT Leads
With ever increasing demands placed on todayâ€™s technological advanced engines, Arrow HT Ignition Leads, more than delivers, with their wire wound filament inductive cable and their double layered silicone polymer based covering. With over 95 part numbers and growing, the ARROW range covers almost 90% of the passenger vehicle car park. Arrow HT Leads ever-growing market acceptance, is largely due to OE quality, competitive pricing, proven reliability and a 12 month warranty, which renders Arrow the ultimate value for money brand.
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REWARDING the best Entries are open for Automechanika Johannesburg’s 2017 Innovation Awards. Winning products will receive winning treatment at the automotive aftermarket’s event of the year
The top three products in Automechanika Johannesburg’s 2015 Innovation Awards competition… Car-O-Liner’s Vision2 Software which won a gold award; AI Vision’s Mobileye Collision Avoidance System which took silver, and Bosch’s Start/Stop System, the bronze award winner
roduct innovation is what helps to drive the 15 Automechanika automotive trade fairs which take place around the world – and what better way to celebrate the fact in South Africa than by honouring the best of the best in a special display at this year’s Automechanika Johannesburg 2017 event. Automobil, official journal of the Retail Motor Industry Organisation (RMI), has once again been tasked by the organisers to find the top automotive aftermarket products in South Africa – whether locally produced or not – with a view to showcasing their pioneering prowess in a special display at the trade fair.
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The event – which will be held from September 27 to September 30 at the Johannesburg Expo Centre at Nasrec – serves as a gateway to the African automotive aftermarket, targeting trade visitors from sub-Saharan Africa. It is the largest trade fair of its type on the African continent. The format for Automechanika Johannesburg 2017 is different to that of its forerunners in that it is co-located with a tyre show, REIFEN; a Futuroad Expo (Trucks/Buses/Commercial Vehicles); and Scalex Johannesburg (Logistics and Materials Handling). The new concept presents fourshows-in-one which, according to the Carl Icahn makes participation by organisers,
Finalists at Automechanika Johannesburgâ€™s last Innovation Awards competition, held in 2015
exhibitors and trade visitors a no-brainer imperative since this is where the industry will meet and engage! The aim of the Innovation Awards competition is to find the best aftermarket products in South Africa and utilise Automechanika Johannesburg 2017 as the platform to honour the winning items. Entries will be judged by an independent jury of automotive experts who, in defined categories, will score products considered ground breaking from a variety of perspectives. The jury will look to uncover items that hold the promise of performing beyond expectation, that are innovative and promote efficiency, are perceived to represent good value for money, are of excellent quality and bring fresh perspectives to the OE or aftermarket segments in which they compete.
Functionality, practicality, styling, benefits to users, environmental friendliness and other perceived pioneering qualities are among the specifics that jury members will be searching for. The experts will come from the ranks of local aftermarket and automotive focused organisations, including the RMI, NAACAM, NAAMSA and the automotive media. For the 2017 competition, the jury will evaluate entries across a variety of automotive categories: Parts; Accessories; Automotive Systems; Diagnostics; Tuning; Repair and Maintenance; OE Products & Services; IT and Management; and Service Station & Car Wash. If you manufacture, distribute or supply cutting edge products in any of these categories, consider entering the Awards â€“ the accolades are significant.
COVER STORY Prospective entrants are invited to submit by noon on Wednesday, July 26, photographs and a detailed description of any automotive aftermarket or OE product they have developed, manufactured, imported or distributed in South Africa, which they deem worthy of entry into the Automechanika Johannesburg 2017 Innovation Awards. Based on the photographs and descriptions – which must include information relating to the technical characteristics and aftermarket relevance of each product – jury members will individually rank each item. From the returned scores, products which achieve the highest marks on a collective basis will be deemed to be finalists. Representatives of the companies whose products have been selected will be asked to submit by Wednesday, August 30, two examples of the items for physical scrutiny by jury members. Following that evaluation, the winners will be determined on the basis of highest marks scored on a collective basis. The organisers of Automechanika Johannesburg 2017 have arranged for exhibits of the winning products – along with those selected as runners up – to be highlighted in a separate display at the show under an Innovation Awards banner. Presentations will be made to winners at a prize-giving ceremony which will form part of the trade fair’s official opening on September 27. If you would like to enter the Automechanika Johannesburg 2017 Innovation Awards Competition,, submit by e-mail your product motivations, along with hi-resolution pictures of the items at least 1Mb in size, to email@example.com. The description of each product must include its country of origin, when it was introduced to the South African market, the category of the aftermarket at which it is aimed – Parts; Accessories; Automotive Systems; Diagnostics; Tuning; Repair and Maintenance; OE Products & Services; IT and Management; Service Station & Car Wash – as well as the following: • Perceived innovative quality; • The solution the product aims to provide; • Its functionality and user benefits; • Perceived economic efficiency; • Safety aspects it promotes; • Environmental aspects it promotes; • Its relevance to the aftermarket or OE sectors; Don’t forget to include with your entry your name, e-mail address and telephone numbers, along with details of the company you represent. The names of jury members and the organisations they represent will be made public once the panel has been finalised. If you have any queries or require more information regarding the initiative, please contact Automobil’s editor, Wynter Murdoch, at 011 803 2040 or via e-mail at firstname.lastname@example.org.
22 JUNE 2017
Service and repair tips from Bosch: Things to look out for with brake pads
As a strong partner with extensive expertise in brakes, we offer your workshop everything you need for the efficient maintenance and repair of brake systems: first-class products, reliable service offerings and efficient diagnostic technology.
Identifying and solving the most common problems with brake pads: There are many causes of vibration and noise during braking. These are not always the result of worn brake pads. You should therefore always check the brake pads regularly to better identify the actual causes of braking problems.
Grooves and scoring in the friction material Cause: Dust or metal particles on the contact surface of the brake pad or brake disc Scratches on the surface of the brake disc
Wear on one side only
Conical wear - vertical or horizontal
Brake caliper and/or brake caliper piston is blocked
Worn brake caliper seals and/or spring
Guiding of the caliper does not work properly
Excessive operating clearance of the caliper
Vehicle pulls to one side during braking
Premature brake pad wear
Faster and/or uneven brake pad wear
Check the brake caliper and replace if necessary
Check the brake caliper and replace if necessary
Replace the brake pads
Replace the brake pads
Cracks or broken edges in the friction material
Count on Bosch:
High market coverage: over 95%
Extreme heat buildup due to constant contact between the brake pad and brake disc Bending of the brake pad backing plate
Matching solutions for all current vehicles Precise fit and easy assembly Reliable and fast delivery service
Brake caliper or brake caliper piston is blocked
Effect: Braking noise Vibration during braking Improper braking efficiency Recommendation: Check the brake disc and replace if necessary Replace the brake pads
Effect: Braking noise Vehicle pulls to one side during braking Overheating on one wheel Uneven brake pad wear
For more information, visit: www.bosch.com
Recommendation: Check the brake caliper and replace if necessary
Replace the brake pads
To see the disc brake installation video:
JUNE 2017 -
In part two of his assessment of what sells petrol, Viv Corinaldi, Acting Director of the South African Petroleum Retailers’ Association (SAPRA), offers further insights into the factors that attract customers to service stations at a service station: • Location – up to 70% of the establishment’s volumes; • Brand – 10% of the volume; • Facilities – 10% of the volume; • Operations – 10% of the volume.
he current economic climate and lack of economic growth in South Africa is having a major negative impact on liquid fuel volume growth. This is particularly true of petrol which is sold though forecourts around the country at about 4 600 service stations. When lack of volume growth is coupled with relatively flat margins and continuous increases in operating costs, it is not hard to see the problem that retailers have to maintain profitability. The issue necessitates a focussed look at how volumes can be increased given all the factors in the trading area that impact the site and its ability to attract motoring and convenience store (c-store) customers. CALCULATING POTENTIAL VOLUME In my previous article I considered the four major contributors to the volume
24 JUNE 2017
I also considered how the potential volume of a service station is calculated using a tried and tested industry model where a number of facts and assumptions are combined to project potential. The projected fuel volumetric throughput of a new site is calculated as follows: • The number of vehicles passing the site per day (VPD) multiplied by • The assumed capture rate (CR) or % of vehicles that will drive onto the site and buy petrol multiplied by • The assumed average transaction value in litres or average fill (AF) multiplied by • The number of trading days (TD) in a month given the site’s location and trading area.
fill and the number of trading days are assumed or given, the only element that a retailer can use to increase volumes is the capture rate. The capture rate is influenced and determined by location, brand, facilities and operations. For a retailer to sway the capture rate, he or she has to address ways to improve the factors that impact the location, brand, facilities and operations – collectively called the retail factors. RETAIL FACTORS Retail factors must be managed and can be changed or improved to ensure that that maximum opportunity is created for motorists to drive onto the forecourt and purchase petrol or c-store products.
Thus: 15 000VPD x 3%CR x 30ltAF x 30TD = 405 000lpm projected volume.
Some of these aspects may appear to be elementary and even self-evident, but the reality is that the lack of dedicated attention to secure 100% efficiency negatively impacts a service station’s volume. These are all on-site factors and exclude other tactics to attract customers such as an oil company’s national advertising, promotions or loyalty programmes.
Given the fact that the number of vehicles passing the site, the average
Retail factors encompass aspects related to the establishment criteria of
the site – that is, factors which were considered and implemented when the site was originally built. On-site retail factors include visibility; accessibility; appearance and housekeeping; equipment and systems; staff; onsite marketing; safety, health and competitiveness. VISIBILITY Visibility of a service station to approaching and passing traffic is a vital, influencing factor. In many cases the purchase decision is made some distance before the motorist reaches the entrance to a service station so, if forecourt visibility is poor, he or she may miss the site and drive on to the next one. Key elements relating to visibility include signage; a main identification device (MID) on the forecourt’s canopy or on the building; no obstructions to the site or visibility of signage; and, at night, signage illumination, entrance lights and canopy and building lights. Retailers, in collaboration with suppliers, should constantly maintain and, where possible, upgrade levels of signage to ensure maximum visibility. This may include repositioning the MID and installing more luminous lighting.
ACCESSIBILITY Accessibility – the ease and convenience of entering and exiting a service station property – is probably the most important of all retail factors. Many service stations succeed or fail based on this one aspect. Retailers should not only ensure that entrances and exits are in good condition and free of obstructions, but also explore opportunities to improve the access and egress where road regulations allow. Accessibility includes no parked vehicles at the entrance or exit, entrance lights at night, directional and traffic signage, road markings and pump attendants who direct traffic. APPEARANCE AND HOUSEKEEPING This vital part of operating a retail service station is, unfortunately, often neglected. Motorists are becoming more and more discerning in their choice of service station, which is invariably influenced by the quality of service and the attractiveness of the forecourt and buildings. Key elements are: • Clean and inviting forecourt and buildings; • Forecourt free of litter and other unnecessary items; • Canopy painted and clean; • Clean and fresh ablutions that are
accessible, clean and hygienic, with no locked doors, clean floors, hot water, soap and paper towels and bins for rubbish; • Neat and washed pump islands; • Pumps clean with no broken pieces; • Pump attendants in neat and clean uniforms; • Gardens neat and tidy; • Perimeter fences and wall neat and tidy; • Signage clean and in good order, with no broken pieces hanging off; • Buildings and canopy supports free of untidy decals or posters. EQUIPMENT AND SYSTEMS The quality and condition of equipment and systems can play a role in attracting (or deterring) customers. All equipment should be in proper working order and point of sale and payment systems whether on the forecourt or in the c-store must be user friendly and allow for quick and efficient transacting. Equipment and systems include fuel pumps and related equipment such as air hoses, gauges and compressors – even effective windscreen and window washing tools. C-store and bakery equipment includes fridges that are neat, clean and in good working order; effective airconditioning and generator back-up.
JUNE 2017 -
RMI UPDATE STAFF All staff members at a service station should be trained and directed towards achieving the same common goal – happy customers. To accomplish this, the retailer must create a working environment where employees are motivated and encouraged to provide the best possible customer service at all times. The following basic – yet often absent – steps are essential: a smiling and friendly attitude; a courteous and professional approach; confidence and product knowledge. As a guide, service steps for pump attendants should include a welcome; a request to fill up the vehicle’s tank or, alternatively, to clearly take the customer’s order to prevent an incorrect transaction; an offer to clean the windscreen and check the oil and, on request, to check the battery or pump the tyres. Once the service has been delivered the attendant should confirm the purchase, process the payment speedily and efficiently and, with a smile and a wave, thank the customer and ask him or her to call again. ON SITE MARKETING There are many value-add actions that a retailer can take to improve the overall marketability of the service station and its products and services. Many of these require the retailer to interact with customers and potential customers. Some of these include: • Community involvement, including free coffee for security services and a water point for runners or cyclists; • Business collaboration including a courtesy visit to all businesses in the immediate trading area and membership of local business associations and forums to raise personal visibility; • A delivery service of bakery and
26 JUNE 2017
c-store goods to selected customers; • The installation of additional ATMs; • Visits to schools, churches and other societies to find ways to collaborate and support neighbourhood initiatives; • Meet and greet every single customer and get on first name terms with all of them; • Become a community hero – the most respected and trusted service station business in the area. SAFETY AND HEALTH This retail factor is included because the safety and health of both customers and staff is not negotiable but, in many cases, is not tested or investigated until there is an incident. It is thus imperative that the retailer and members apply 100% adherence to all aspects of the site operation where safety and health is concerned. This includes having functional firefighting and related equipment on site; ensuring staff safety training is up to date; clearly indicating a designated assembly area and having an evacuation route mapped out; and making sure all emergency numbers are clearly visible. In relation to the c-store, food safety rules and hygiene inspections must be carried out daily.
COMPETITIVENESS The one area that many retailers neglect is measuring the competitiveness of their service station in relation to others in the trading area. Retailers should at regular intervals visit the competitor to gauge how rival sites stack-up. Areas that can be compared include: • How good are competitors in relation to all the retail factors? • What do they offer that we do not have? • Benchmark their standards against ours; • Are we competitive and are they looking at us to compare? • Are we leaders or followers in product and service offerings? CONCLUSION After 37 years in petroleum retailing in South Africa, I can categorically state that focussed and dedicated attention by service station owners in ensuring complete adherence to retail factors not only improves site efficiency but will, over time, increase capture rates, volumes and turnovers. When all factors are properly in place and aligned, they achieve the retailer’s volume and profit goals through application of excellent customer service provided by valued employees.
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MARCH 2017 -
ASSOCIATION OF THE MONTH
The motor dealer’s voice The National Automobile Dealers’ Association (NADA) is a wellknown and well-respected voice for motor vehicle dealers in South Africa. Gary McCraw, the National Director, explains some of the association’s key objectives and activities
he National Automobile Dealers’ Association (NADA) represents and promotes the interest of almost 1 360 franchise and pre-owned motor vehicle dealers in South Africa. The association’s priorities and objectives are identified and set via a well-established operational structure consisting of regional committees, sub-committees and task teams which report into the NADA Motor Retailers’ Forum and NADA National Executive Committee. Many dedicated motor vehicle dealers and executives give up their valuable time to serve on the NADA structures, thereby ensuring that key critical issues which impact the retail motor vehicle dealership business environment are proactively addressed for the collective benefit of all members. NADA would like to take this opportunity to sincerely thank all these individuals for their ongoing service to the association and the industry in general – their contributions are much appreciated. Dealer business conditions The motor vehicle retail business in South Africa is dynamic and highly complex, and business conditions are constantly evolving – made even more challenging given the increase in regulatory compliance which dealers have had to factor into their daily operations.
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Unfortunately, over regulation has added unnecessary additional costs – which can no longer be absorbed – to motor vehicle dealers’ financial operating models. Regrettably, those costs have been passed on to the consumer, thus making motoring more expensive for the man in the street. Given the recent political uncertainty and its negative impact on the South African economy, motor vehicle dealers are finding trading conditions extremely tight. They are having to maximise every opportunity to ensure that they remain financially viable and in a positive position to service a customer base whose expectations are ever increasing. NADA is of the view that motor vehicle dealers are resilient and, by managing their costs and capitalising on every business opportunity over the next 12 to 18 months, they will emerge from
this difficult period both stronger and leaner – just as they did during the 2009 economic crisis. The NADA vision and role is to contribute to the growth, sustainability and profitability of motor vehicle dealer members by addressing non-competitive collective critical issues on their behalf, thus ensuring that the economic environment remains conducive to carrying out business. Stakeholder relationship NADA, over many years, has established extremely good working relationships not only with key industry stakeholders in business and labour, but with various government departments. In this regard, the association has been successful in influencing changes to various pieces of legislation, thus reducing the potential impact on dealer operations. For example, the association has:
NADA is currently involved in on-going workshops with the Department of Trade and Industry to try to find amicable solutions in respect of ownership, procurement and other key elements with which members are finding compliance difficult. Further engagements are scheduled for June 14. Second-hand Goods Act: Exemptions Following formal applications by NADA to the SAPS on behalf of its members for exemption from certain sections of the Second-hand Goods Act, 2009 (Act No. 6 of 2009) in terms of Section 42(2) of the Act, the association has been advised that exemptions will be published shortly in the Government Gazette. The exemptions deal with clauses such as the seven-day holding period, storage of stock on a second premises and record keeping. More detail will be given once the exemptions have been published.
1. Motivated the extension in the Learnership / Apprenticeship Tax Allowance for an additional five years with National Treasury; 2. Negotiated with SARS, which reconfirmed and issued an additional opinion by which motor vehicle dealers were granted special dispensation whereby the determined value for fringe benefit tax calculation purposes could be based on the average cost of all stock in trade; 3. Participated in the drafting of the Automotive Code of Conduct in terms of the CPA under the direction of DTI. B-BBEE: Codes of Good Practice NADA, together with other role players from the automotive industry, met with senior officials from the Department of Trade and Industry to highlight the key interdependencies within the automotive sector concerning compliance with new B-BBEE Codes and their impact on the dealer network.
Competition Commission NADA participated in the Competition Commission Aftermarket Workshop which was held in March, in terms of which the Commission presented its views on perceived exclusionary practises within the South African motor industry. The Commission also offered views regarding the drafting and implementation of a proposed Code of Conduct for the automotive industry. At the workshop, NADA’s chairman, Bruce Allen, took the opportunity to present the association’s standpoint. His presentation was covered in the May edition of Automobil. Following the workshop, NADA was invited by the Competition Commission to participate in the first meeting of the Drafting Steering Committee, which took place on May 17. NADA is acutely aware that the final outcome of Competition Commission process will have a direct impact on how business will be done in the dealer environment following implementation of the proposed Code of Conduct. Therefore,
the association has been actively liaising with members and researching the matter with a view to finding the best possible outcome. Financial Intelligence Act The FIC recently advised NADA that that it was its intention to remove the category of Reporting Institutions from Schedule 3 and convert them to that of Accountable Institutions. The revision implied that the status of motor vehicle dealers would change from “Reporting Institutions” to “Accountable Institutions” and the impact on the industry would be significant. Therefore, there was an urgent need to find common understanding on how to address the matter with the FIC. NADA formally appoint Prof Angela Itzikowitz of Edward Nathan Sonnenbergs to provide legal guidance and an opinion dealing with the following: • The extent of the compliance requirements for motor vehicle dealers as Accountable Institutions; • Drafting of representations to FIC to retain the General Exemption Notice 1, Clause 4; and • Submission of a request for exemptions to certain elements in the FICAA for motor vehicle dealers. Legal opinion is being finalised and NADA will in due course engage with the FIC on this extremely important matter. 2017 NADA DSI Survey Fieldwork for the 2017 NADA Dealer Satisfaction Survey – the 22nd organised by the association – began in March and member dealers are encouraged to complete the research questionnaire. Results of the NADA DSI are used as management tools by various dealer councils, OEMs and importers to address areas of concern in the value chain and business relationship matters. Due to high response rate of over 80%, results of the NADA DSI are seen as being extremely credible by all stakeholders.
ASSOCIATION OF THE MONTH The NADA DSI Awards evening will be held on Thursday, July 13 at WesBank’s offices in Fairlands. NADA/Sewells MSX International Business of the Year Awards During March, NADA and Sewells honoured franchise dealer businesses in various dealership categories, with results covered extensively in the May 2017 edition of Automobil. The NADA/Sewells Businesses of the Year Roadshows will continue to take place later in the year, details of which will be communicated to members in due course. Members are encouraged to attend as valuable information and industry trends are shared during these sessions.
Communication NADA has been at the forefront of keeping abreast of both local and international industry trends and has kept its members informed of important developments that CH COLLEGE AD 210x130 2/15/17 8:30 AM Page 3 may affect their businesses.
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A NADA Newsflash is sent to members on a regular basis regarding matters of importance, while other articles and news items are published regularly in Automobil and are broadcast weekly via the RMI’s web letter. Conclusion During the process of addressing various key objectives, NADA has engaged with – and held productive discussions with – senior representatives from the following government and business related institutions: • South African Insurance Association; • National Association of Automobile Manufacturers of South Africa; • Motor Industry Workshop Association; • TransUnion Auto; • Lightstone Consumer; • South African Bureau of Standards; • Motor Industry Ombudsman of South Africa; • National Treasury and the South African Revenue Services; • The South African National Roads C
Agency SOC Limited and Electronic Toll Collection (Pty) Ltd; • Department of Trade and Industry; • Department of Transport; • Road Transport Management Corporation; • Department of Higher Education and Training; • Financial Services Board; • National Motor Finance Association; • South African Police Services. There are many other matters and issues with which NADA deals on an ongoing or ad hoc basis. Through collective efforts of full time paid officials and elected office bearers, dealers’ best interests are being preserved. NADA will, through its ongoing endeavors and achievements, continue to pursue its vision of contributing to the long terms sustainability and growth of South Africa’s retail motor vehicle dealer businesses. CY CMY
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Torre acquires Top Class Automotive
orre Parts and Components has bought Top Class Automotive, a company which owns or represents a selection of brands including Gabriel, Autocom, Echlin, VDO, ACSA-Mag, Textar, MagBrakes, Warn, Hi-Lift, Vision-X, Truck-Lite, Piusi, Pneumax and Raasm. Kevin Rogers, managing director Torre Parts and Components, said the acquisition was aimed at enhancing Torre’s growth in the automotive aftermarket sector, expanding the company’s product range and offering
reach into the commercial and offhighway segments. “The acquisition will allow the group to continue to leverage its infrastructure and associated resources, and will help to grow the business of Top Class Automotive and its associated brands,” he said. As a result of the acquisition, Torre has also been appointed SKF’s official automotive distributor for South and Southern Africa. “We see this new
association as a great opportunity to extend our reach into target markets and to further improve the support and service levels currently provided to customers,” said SKF spokesman Gary Czapski. Rogers added: “The acquisition brings additional opportunities to our business. We will keep customers informed of any changes or improvements that are made, and assure them that throughout the process customers will continue to always be put first.”
Tenneco sets training milestone
enneco’s 4T training programme has turned out its 360 000th graduate in a decade. Introduced in 2007, the programme he majority is aimed of at RMI automotive Regional service professionals Executive members across theinglobe. the Western Cape – as well as “The 4T programme retired Executive has grown members – substantially recently attended as more aand special moreRegional parts distributors Executiveand Meeting workshop at which professionals they areenjoyed introduced lunch to and the value exchanged provided through storiesour of broad years gone curriculum by. of technical workshops,” says Bruce Ronning, viceTaken at and the gathering, picture shows: president generalthe manager for Back, left to right; Johan du Toit, Rayin Europe. Tenneco’s aftermarket division Matthews, Eduann Naude, Eric van der “This newPieter milestone theNicky value Merwe, du Plessis,illustrates Willem Burger, thatThorpe, our trade derive fromPieter 4T Johnnypartners van Niekerk, Chris Blom, andClaassen, other Tenneco Charles Canning, training Charles initiatives.” Baxter,
Johan van der Merwe, Abe Dunn and Michael Front:Middle Jakkie Olivier, Oaten, Roy TheMeyer. Europe, East Ferose and Africa region Bastick, Rod Hulley, Jock Wood and Joy Oldale
served 11 363 trainees in 2016, providing them with a combined 35 216 hours of
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training delivered during 557 sessions. The Latin America region added 13 674 trainees, while India added another 2 018. The most popular training programmes across all regions were primarily technical, with ride performance sessions topping the list. According to Ronning, the 4T programme is just one way in which Tenneco helps to keep its customers up to date on diagnostic and repair information, providing aftermarket support in the form of TADIS (Technician’s Advanced Digital Information System), fitting instructions and technical bulletins, techline telephone-based technical support and comprehensive product catalogues for its Monroe and Walker brands.
Take great pictures – win a tool chest! Calling all photographers – the AutObarn Jonnesway Super Hatch Racing Series photographic competition is underway! A Jonnesway six drawer Black Edition 196-piece professional tool chest, valued at R28 000, is up for grabs
n exciting photographic competition focused on the AutObarn Jonnesway Super Hatch Racing Series has been announced. The competition is open to all photographers and runs until January 31, 2018. To enter is simple – all you have to do is shoot some great pictures of the AutObarn Jonnesway Super Hatch Racing Series and send them to Damian at firstname.lastname@example.org. Mark the subject line AutObarn Jonnesway Photographic Competition. The pictures can be of anything related to the racing series – single car shots or group shots, on track or behind the scenes action, and can be taken during the race or during official practice sessions at any of the AutObarn Jonnesway races held around the country. All images will be accepted provided they are of a minimum of 300KBs and a maximum of 500KBs. Up to four pictures can be e-mailed at one time. Photographers need to include their names, addresses and landline and mobile telephone numbers on their e-mails. The name of the winner will be announced in the first quarter of 2018.
Judges will also announce the Top 10 entries every three months, with images posted on Facebook, web sites and in the motoring media. The Top 10 shots for each three-month period will go into the finals for the overall judging and the overall prize, where one winner will be awarded a Jonnesway tool chest valued at R28 000 compliments of Jonnesway Professional Tools and AutObarn SA. AutObarn will also select some of the top shots during the competition for use in pre-and-post Super Hatch media releases. Photographers can enter as many times as they wish over the period. The last race in the series will be held at Zwartkops on November 25. The official closing date for entries is January 31, 2018. A selection of the top images will be used in the AutObarn Super Hatch Pre-andPost race publicity for the full duration
of the series and all images selected will have the photographer’s name included in the copy. All images entered in the competition become the property of AutObarn, Jonnesway, as well as Super Hatch, and will be used in their marketing programmes. For more information call Damian at Automotive Brands SA / AutObarn SA on 011 477 3612, or e-mail him at damian@ automotivebrandssa.co.za AutObarn Super Hatch Calendar of Events June 15/16/17
Red Star Raceway
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member of MIWA’s Executive Committee, Hansie Peens from H & S Motorherstelwerke in Bloemfontein, recently visited the RMI’s Randburg offices where he showed off the association’s newest shirt. The shirts can be ordered from MIWA’s Giselle Schoeman at cost of R240 each. Contact Giselle at 011 886 6300 or e-mail her at email@example.com
Engen launches driver wellness programme
ngen Petroleum has launched its annual Driver Wellness programme, with commercial vehicle drivers around the country invited to receive free voluntary health screenings at designated sites from now until the end of October. The mobile health awareness initiative, now in its sixth year, is run by Thubelihle Occupational Health & Wellness and operates nationwide from Engen Truck Stops and retail service stations. Free voluntary screenings are conducted in mobile clinics by qualified nurses and councilors and include checks for cholesterol levels, diabetes, tuberculosis and HIV/AIDS. Engen’s Corporate Social Investment Manager, Mntu Nduvane, says the aim of the initiative is to improve health through awareness. “Education helps to remind drivers and our employees why their health is important and how life choices impact on their well-being. Ultimately this increases their health, safety and productivity.” Nduvane says there has been a marked increase in the number of drivers using the service. “As testing is voluntary, the incremental acceptance of health management as a path to longevity and wellbeing are important indicators that health empowerment is gaining traction,” he says.
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“Our most recent statistics show how cholesterol screening jumped by 63% from 2014 to 2015. Glucose testing went up by 18,5% and 16% more drivers tested their Body Mass Index (BMI), while blood pressure screening also realised an increase of 16% for 2015.” Dates and times Kimberly Truck Stop, Cape Town Road, Kimberly
17:00 - 22:00
Springfontein Truck Stop, N1 Highway, Springfontein
07:00 - 17:00
Progress Service Station, Thompson Avenue, Bizana
10:00 - 15:00
Upington Truck Stop, De Drift Plaza, Louisvale
07:00 - 17:00
Mossel Bay 1 Stop, N2 Mossel Bay
10:00 - 17:00
Engen Swartland 1 Stop, N7, Philadelphia
11:00 - 15:00
Engen Winelands 1 Stop North, N1, Joostenbergvlakte
10:00 - 13:00
Engen Winelands 1 Stop South, N1, Joostenbergvlakte
14:00 - 17:00
Engen Kempston Truck Stop, Epping Industria
07:00 - 12:00
Gateway Truck Stop, N1 Highway, Musina
Oct 5 & 6
06:00 - 15:00
Highveld 1 Stop N & S Bound, R21 Highway
07:00 - 15:00
Market Gateway, Marjorie Street, City Deep
09:00 - 15:00
Gone South Engen Truck Stop, Old Grahamstown Rd, Swartkops
17:00 - 22:00
East London Engen Truckstop, Settlers Way, East London
17:00 - 22:00
Airport Motors, 9 Breezyvale Rd, Orange Grove
10:00 - 17:00
BG Truck Stop, Main Road, Kokstad
10:00 - 17:00
Pegasus wheel bearing kits are manufactured from high quality bearing steel and are packaged in a new design, user friendly, high quality box. They are tested with “state of the art”, precision equipment that measures: • Roundness • Hardness • Metallographic composition • Contact angle • Roughness profile • ABS measuring In order to ensure that these bearings all perform to reduce rotational friction, and to support radial and axial loads. These bearings are manufactured for OEM use
APRIL 2017 -
Annual golf day success O ne of the highlights on the RMI’s existing members and also allows potential calendar is the Organisation’s members to understand a little more about Highveld Region Golf Day. Held what the RMI has to offer. In turn, this last month at the spectacular Kyalami enables our continued growth and success Country Club, the event gave the RMI an within the retail motor industry,” says opportunity to interact with members and Jeffrey Molefe, Regional Manager of the potential new members in a friendly and RMI’s Highveld Region. All theenvironment. fun of Partinform fairs in Stellenbosch beautiful and Bloemfontein. Greg Surgeon reports Warm weather ensured that the day To get the day off on the right foot, a was enjoyed immensely by all the golfers. great goodie bag with caps, pens, The course buzzed with enthusiasm, with mints, water bottles, lanyards and many a total of 124 players taking part. “The more gifts were presented to golfers as day is always enjoyable and the golfers registration took place. truly battle it out for some great prizes – and the glory of being the regional top Turnout was excellent, with strong support four-ball. from sponsors who had participated previously, as well as new sponsors who “There certainly was no shortage of showed a high level of interest in the fun and laughter along the course, event. Participants in the golf day included and the various sponsors pulled out all a mix of clients and guests from all areas the stops,” says Molefe. of business within the Highveld region. After completing 18 holes, scorecards “Our golf day is an excellent opportunity were in and players made their way to the for us to strengthen relationships with clubhouse for the evening function, which
included a prize-giving dinner. Participants were thanked for their support and attendance, and rewarded with some stunning gifts. The popular MC and auctioneer, Thys Neetling from Pro Fans, spoke before dinner and ensured his razor sharp wit and exuberance kept his audience entertained. Money raised from the auction will be donated to a charity, details of which will be released next month Congratulations to the first three four-balls: 3rd: MERSETA with 90 points – Bar fridges: Wayne, Adam, Raymond and Wendy 2nd: TMS TEAMWORK with 93 points – DSTV Explorers: Juan Van Der Merwe, Donovan Soobramoney, Mujaheed Gaffoor and Cyril Soobramoney 1st: TRACKER CONNECT with 94 points – TV Sets: Richard, Daniel, Brad and Ruan The RMI wishes to thank all the companies that took part and sponsored the event, making the day a “swinging” success. We hope to see you again next year at our annual golf day.
Partinform wows Tzaneen Owners of automotive businesses in Tzaneen turned out in force to support Partinform’s trade show. Greg Surgeon reports
artinform’s most recent trade show was held last month at the Fairview Hotel & Village in Tzaneen. The event was well attended by about 80 visitors from automotive businesses in the area. Great interest was shown in all displays with many questions asked about the brands being exhibited. There was excitement as finalists chosen to take part in a quiz – a popular highlight at Partinform shows – answered a series of questions about the line-up of automotive
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products. Fritz van der Merwe of Auto Quest Spares in Tzaneen took top honours. He said he was looking forward to participating in Partinform’s end of year celebration, at which winners of each of the quizzes will take part in a go-kart race organised by MCP Rental Karts.
Organisation supports Partinform’s standpoint regarding the use of quality products and recognises the hard work that goes into each event. The next Partinform show takes place in Port Elizabeth on June 7 at the Pine Lodge & Conference Centre in Marine Drive, Summerstrand.
The evening’s prizes were sponsored by Jonnesway, Precision Power Components, Denso and Quick Brake. Best stand for the event was judged to be that of Jonnesway. Partinform’s shows – which move to venues around the country to promote the advantages of utilising quality automotive brands – have proved popular among business owners in the aftermarket, and the Tzaneen event was no exception. The RMI display attracted attention throughout the evening with staff members engaging with visitors to outline the benefits of belonging. The
JUNE 2017 -
DoE holds transformation workshop
RAS in focus A
well-attended Regulatory Accounting System (RAS) workshop was held last month in the MIBCO Boardroom in Bloemfontein. Viv Corinaldi, Acting Director of SAPRA, presented the workshop and the following topics were discussed: • RAS analysis 2013 to 2016; • Description and definitions of both Opex and Capex items; • Discrepancy in oil company/RORO/COCO margin adjustment over time; • Incongruity in item increases and decreases; • Opex study and 12/6 months lag undertaking; • KPMG study and its December 2016 implementation; • Inventory and professional fee issues. Time was also given to members to attend a “one on one discussion” with Corinaldi after the workshop.
he Department of Energy (DoE) held a one-day workshop last month at the St George’s Hotel and Conference Centre at Centurion to discuss transformation in the petroleum industry. The workshop was facilitated by Portia Tau-Sekati and included representation from a number of associations aligned to the DoE’s transformation process. Viv Corninaldi, Acting Director of SAPRA, delivered a 20-minute presentation which was well received by delegates, who numbered in excess of 400 and comprised of mostly licensed and prospective petroleum wholesalers.
From left to right: Frikkie van Niekerk (Green Street Motors & Jet Set Motors in Kimberley), Jacques Viljoen IR Specialist (RMI Bloemfontein), Stephan van Niekerk (Green Street Motors & Jet Set Motors in Kimberley), Freddie Botha (Wentzel Motors in Bloemfontein) and Viv Corinaldi, Acting Director, SAPRA
One of the purposes of the workshop was to provide an update on current transformation processes and to discussion solutions to problems. The SAPRA presentation was designed to: Introduce SAPRA to delegates; Reveal some current industry dynamics and realties; Give the SAPRA view of transformation challenges and potential solutions. According to Corinaldi, other items covered by the workshop included corporate governance, the structure of commissions and barriers to liquid fuels distribution in South Africa.
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From left to right: Mark Erasmus, Administrator (RMI Bloemfontein), Jacques Viljoen, IR Specialist (RMI Bloemfontein), Viv Corinaldi, Acting Director SAPRA and Herman Steyn, Vice-Chairman SAPRA (Free State & Northern Cape Region)
JUNE 2017 -
The Chinese are coming Investors are agreed: There’ll be no stopping the Beijing Automotive Industrial Company once it begins to produce vehicles at its Coega plant. However, the question remains, when will assembly start? David Furlonger reports
on’t be fooled by the absence of activity – the Chinese are definitely coming. That’s the message from Geoffrey Qhena, CEO of the Industrial Development Corporation (IDC), which is staking billions of its own money on Chinese investment in South Africa. In September last year, a small army of Chinese and local officials broke ground at what is meant to become the first greenfield mass-manufacturing vehicle assembly plant in the country for over 40 years. Beijing Automotive Industrial Co (BAIC) says the plant, expected to cost R11billion, will eventually have capacity to build 100 000 vehicles a year. The question is: What does “eventually” mean?
THE BAIC D20
The first vehicles are due to roll off production lines in the first half of next year but, in the nine months since VIPs turned the soil at the Coega Industrial Development Zone near Port Elizabeth, very little work seems to have been done. By mid-May, there were no obvious signs of a major factory in the making. Hardly surprising, therefore, that the cynics are having a field-day. Some doubt the plant will ever happen. Others suggest it will be a budget version of the planned original. In both cases, they ask why anyone would want to build a factory to produce something the market doesn’t know exists. “Oh ye of little faith,” responds Qhena, whose parastatal is a 35% partner in the project. Construction of buildings will start
Qhena’s one concession is that the 100 000 unit target may be achieved only after 2027, the scheduled date. The first phase, to reach a production run of 50 000 units by 2022, remains the intention. His confidence is shared by Abel Malinga, the IDC’s manufacturing and mining industries executive. He confirms that start of construction is three or four months behind schedule but he adds that the plant – which will ultimately build cars, bakkies and sports utility vehicles – will be ready on time in 2018. It’s certainly possible. BMW SA’s rapid reconstruction of its Rosslyn assembly
he D20 hatchback and sedan are the first car models from BAIC to be launched in South Africa. They comprise built-up units imported from China, based on a platform derived from Mercedes-Benz’s Smart ForFour, with product development and suspension tuning taking place at the MIRA research and development facility in the United Kingdom.
feature lines and Fashion models are fitted with 10-spoke alloy wheels.
The cars are about four metres long, with the hatch being 282mm shorter than its sibling. Both models offer seating for five occupants. Overall styling of the hatchback is reminiscent of the first-generation Mercedes-Benz B-Class model.
The speedometer and rev counter in front of the driver are split by a panel that displays read-outs for time, fuel consumption and trip meter. Fashion models include a 6,5inch touchscreen with a navigation system and a comprehensive audio system with six speakers.
The bold frontal appearance of the D20 is highlighted by a grille which features a flying wing design. Slim headlight pods flank the grille. The side view has strong
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in July, he says, and the plant will definitely begin to produce cars early next year.
The interior has a modern, integrated appearance. The sports-style front bucket seats and bench rear seat are fabric-trimmed. The rear seat of the hatch is split 60:40 and the backrest can be folded forward to provide 1 190 litres of load space, while the sedan’s boot capacity is 450 litres.
Power for the D20 comes from a choice of four-cylinder petrol engines – a 1,3-litre plant that produces 75kW and a 1,5-litre unit that
facility to prepare for the new X3 shows what can be done with proper planning – though the project was not started from scratch on a bare piece of earth open to the elements. What a lot of people don’t know is that the Coega site is not BAIC’s first assembly venture in South Africa. Since 2012, its BAW subsidiary has been building minibus taxis from imported kits at a small facility in Springs on the East Rand. Here, too, the IDC is a shareholder. Last month, the partners announced a R250-million plan to increase local content, with the addition of a paint shop and body shop. According to consultant Tony Godycki, some Chinese kit parts have already been substituted with locally-made alternatives.
electric buses to come off the assembly line. For the Springs facility, at least, there is an existing market for its products. Coega has no such advantage. The first BAIC-branded cars for sale in South Africa were launched in late April – barely a year before the proposed new plant is scheduled to start churning out vehicles. The factory is also intended to build for export: mainly to Africa, the Middle East and South America. In the short term, it may have to rely on the last two. The brand is unknown in South Africa and the new-vehicle market to the north is almost non-existent.
Truck-maker FAW has invested substantial sums in its Coega assembly plant – where it makes vehicles for local consumption and export, the facility winning awards from its parent for its achievements in working to a coordinated strategy with a single unified vision – but imported car and bakkie brands have found the going difficult. In the 10 years since the first Chinese cars arrived, none have gained much traction in the consumer market. And, like many of them, BAIC has arrived at a time when local vehicle sales are in decline. Unlike them, it is investing.
Used vehicles dominate and low oil and commodities prices have slashed consumer and government spending power.
Malinga says: “A lot of thought has gone into this venture. Delays so far are the result of making sure we are on top of new challenges before we go ahead. Once we are under way, there will be no stopping us.”
Expansion will also allow BAW to grow its product line – besides standard minibus taxis, there is potential for panel vans and
But Malinga says it would be wrong to under-estimate BAIC’s commitment to its South African venture. The company has experience in other emerging markets and has learned lessons from the problems faced by other Chinese motor companies operating here.
David Furlonger is the industrial editor of Business Day and Financial Mail
makes 85kW. Power goes to the front wheels via a five-speed manual gearbox or four-speed automatic transmission.
headlights, child safety door locks, auto on headlights and two ISOFIX mountings in the rear seats.
Suspension is by means of MacPherson struts in front and a torsion beam at the rear. Disc brakes are fitted to all four wheels with ABS and EBD systems supplied by Bosch. Reversing radar with audible and visible warnings is standard on all models.
The BAIC D20 is covered by a fiveyear/120 000km warranty. Service intervals are 10 000km. There is a free service at 3 000km. Optional service and maintenance plans are available through BAIC dealers.
The expanded facility will allow for the introduction of locally manufactured glass, wheels, tyres “and whatever other components become feasible with economies of scale.”
Features exclusive to Fashion models include climate control air-conditioning, an electric sunroof, day-time running lights and external mirrors which fold automatically when the engine is switched off. On the safety front the D20 includes airbags for driver and front seat passenger, high-mounted stop lamps, rear foglamps, automatic fuel cut-off, height-adjustable
PRICES: D20 Hatch 1,3M/T (Comfort)
D20 Hatch 1,5M/T (Comfort)
D20 Hatch 1,5M/T (Fashion)
D20 Hatch 1,5A/T (Fashion)
D20 Sedan 1,5A/T (Fashion)
Motorsport skills programme launched The merSETA joins forces with Bateleur Motorsport to give prospective auto engineers an opportunity to experience the thrills of motorsport – and perhaps carve for themselves a career on the race tack
n partnership with Bateleur Motorsport, the merSETA has announced its backing of a unique mechanical engineering and auto mechanics programme designed to expose students from within the TVET College system to the possibilities of a career within motorsport. The programme follows the South African Endurance Championship and incorporates TVET colleges in each of the regions where races are run. The aim of the programme is to provide as many motor mechanic students as possible with an overview and understanding of the skills required to work in the complex and demanding world of motorsports. In addition to spending a day with each of the participating TVET colleges, the programme will also see the five top students from each institution spending a weekend as a part of the Bateleur Motorsport team. They will be integrated into the team under the mentorship and guidance of regular crew and will be given the opportunity to experience firsthand, the pressures of working in this highly charged and adrenaline fuelled environment. The merSETA’s CEO, Raymond Patel, says since motorsport lacks participation of individuals from previously disadvantaged backgrounds, the programme is aimed at creating an opportunity from which young mechanics can build a future. “The merSETA is proud to be a part of this initiative with Bateleur Motorsport,” he says. Bateleur Motorsports team principal Mike Schmidt says for most of the youngsters participating in the programme, the ability to work in a motorsport environment will be a dream come true. “Opportunities to
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College of Cape Town staff and students who took part in last month’s inaugural Young Motorsport Skills Awareness Programme at Killarney race track
get hands-on experience in motorsport are very hard to come by given the costs involved. Being able to expose these kids to this world is something that I’m really passionate about,” he says. According to Schmidt, the partnership with the merSETA and the funding provided will give an opportunity to students from different parts of South Africa to gain a real insight into the career opportunities that exist in motorsport both nationally and internationally. Schmidt, whose involvement in motorsport both as a driver and team owner extends back to the mid-1980s, says it is important that students realise the programme is not designed to find the next South African Formula One champion. “To be honest, I believe that unless you have a bottomless pit of cash all you are doing is creating an unrealistic expectation in the minds of youngsters wanting to go that route,” he says. “Our programme is all about exposing youngsters to the
Student Wisaal Davidson gets to try out a race car for the first time
realistic opportunities that exist for them in motorsport if they are prepared to work hard and apply themselves. “This is not an easy career and it demands long hours and dedication to succeed – but it is something that is definitely within the realms of possibility irrespective of background or personal wealth.” Schmidt says that since there is a real shortage of qualified racing engineers in South Africa, the merSETA partnership offers real and tangible opportunities to all students who take part in the programme. The car being used for the programme is a NASH MVW3 and coincidentally, was designed and built by a TVET and merSETA graduate Matt Nash. After qualifying as a motor mechanic, Matt, 34, spent time in the United Kingdom working as a race engineer for various top motorsport teams. His car is an example of what can be achieved by the students taking part in this programme if they decide on a career in motorsport.
The Young Motorsport Skills Awareness Programme was launched last month at Killarney Race Track in Cape Town. Upcoming programme dates and participating colleges are as follows: June 24 East London GP Circuit East London Buffalo City College August 19 Dezzi Raceway Port Shepstone Esayidi College October 14 Aldo Scribante Port Elizabeth East Cape Midlands College October 29 Phakisa Freeway Welkom Motheo College December 2 Kyalami Gauteng Tshwane College
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Jake Venter examines some new and smart ways employed by vehicle engineers to reduce energy wastage
ust about every human action and every human invention wastes energy. The amount of wastage is evaluated by efficiency, defined as usable energy output divided by energy input. This will always be a number less than one – or a percentage less than 100 – otherwise energy has been created. Wastage is the amount that efficiency differs from 100. Some modern combustion engines are 30% efficient at full throttle, implying that they waste 70% percent of their energy. Work, energy and power are closely related. Work is performed when a force moves an object a certain distance. The amount of work is determined by the size of the force times the distance moved. For example, when you push a car with a force of 100 Newtons for a distance of 10 metres, you’ve done 100 x 10 = 1 000Nm of work.
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Energy is the potential to do work. Energy as well as work is measured in joules, where one joule equals one Newton metre. Power output is the work done divided by the time taken. If the car in the example quoted above was pushed for 100 seconds, power output would be 1 000 ÷ 100 = 10 Watts (one joule/ second = one Watt). Attempts to harvest energy often make the news and, while the existence of sailing ships, windmills and water wheels show that the concept is not new, unique and exciting ways are now being investigated to tap energy from everyday actions. Energy from walking Tom Krupenkin, a professor of mechanical engineering at the University of Wisconsin-Madison, is working on ways to capture the energy that’s wasted while walking.
He’s experimenting with shoes that are constructed with a conductive liquid sandwiched between two layers of nanofilm coated surfaces embedded in the soles. Walking compresses the liquid and results in the production of electrical energy that can be used to charge a cellphone via a cable running from the shoe. If enough energy can be obtained in this way, charging can be made wireless. Even more exciting is the prospect of embedding a Wi-Fi hotspot in the shoes. Electrical energy from tyres Bath University and its partners are developing a device embedded inside a tyre’s tread that generates enough
into rotational motion that can be used to drive an alternator that delivers energy to the car’s battery. He has calculated that the system should provide between 100 and 400 Watts of energy from normal roads and a lot more from very bumpy roads. Recovering energy from the exhaust A turbocharger recovers energy from exhaust gasses, but BMW, Honda and Renault are working on ways to change heat energy directly into power or electricity. Heat is used to turn water into steam that can be used to power a piston or small turbine that is able to drive an alternator or deliver extra power directly to a vehicle’s drivetrain.
electrical energy to charge a tyre pressure monitor. The device employs piezoelectric crystals – crystals that generate a small electrical current when they’re compressed. Tyre pressure monitoring systems are increasingly being specified for many classes of vehicle, not only to reduce the occurrence of blowouts but also the energy-saving aspect that arises from the more than 60% of vehicles that run on underinflated tyres. The university is also partnering with Silent Sensors – a company formed to develop complete tyre management systems – to develop what is billed as an intelligent tyre. Such tyres will be fitted with sensors that are able to send information about tyre stress, deflection, grip, road surface condition and temperature to processors on the car that will use the information to fine-tune the suspension and brakes.
KINETIC ENERGY RECOVERY SYSTEMS (KERS) Hybrids In addition to a combustion engine, hybrid vehicles utilise an electric motor that is usually configured to become a generator to charge the propulsion battery whenever the driver lifts his foot off the accelerator. During braking, kinetic energy – which would usually be lost as heat – is captured, converted into electricity, and stored in the battery. Non-hybrids Some non-hybrid cars are fitted with so-called smart alternators that are controlled by the ECU. When engine loads are minimal, alternator output is boosted to more than 15 volts so that a car’s coasting or braking movement puts an extra burst of charge into the battery.
Harvesting energy from the road surface Lei Suo, an associate professor of mechanical engineering at the Virginia Technical College in the USA, is working on a shock absorber that generates electricity from bumps in the road.
During acceleration the alternator’s output is reduced to a minimum so that the engine does not have to waste power charging the battery. Interestingly, such a recovery system is only effective if the battery is not fully charged, otherwise it cannot accept more charge. The ECU therefore tries to keep the battery at about 80% charge level to make energy recovery possible.
The unit uses a gear train to translate the shock absorber’s up-and-down motion
GP racing cars GP racing cars are equipped with
comprehensive energy recovery systems. The KERS system initially used employed an electric motor/generator coupled to the vehicle’s driveshaft which operated in either mode to absorb energy or supply extra power to the rear wheels. The latest GP recovery systems, called ERS – the word kinetic has been dropped – comprise two separate motor/generator units: • An MGU-K unit (Motor Generator Unit – Kinetic), which is similar to the previous KERS unit and is powerful enough to contribute up to 120kW to whatever the engine is delivering, and • An MGU-H unit (Motor Generator Unit – Heat), which is a motor/generator powered by the turbocharger and coupled to the car’s drivetrain. It puts power into the drive-train and is also used to speed up the turbo to avoid lag, or reduce its speed and control boost the way a waste-gate does. Other energy storage systems A number of companies are looking at employing flywheels running in a vacuum to store the energy recovered from the vehicle’s motion. Other options include the use of electrical capacitors or compressed fluids to store the energy. INCREASING THE VOLTAGE TO SAVE ENERGY Some manufacturers are beginning to fit 48 volt auxiliary batteries to vehicles. The cars keep a 12 volt battery for mundane tasks such as lighting up the dashboard or powering the tail lights, but the more important functions have their own 48 volt energy source. Components that perform better under high voltage include: • The starter motor. On a stop-start system it has to start the engine as fast as possible, not only to make the system feasible in city traffic but also to waste as little energy as possible; • Electric water and oil pumps. These are configured to deliver just the right amount of liquid for the driving conditions, instead of running at
TECH TALK whatever speed the engine is turning; • Electric propulsion motors on hybrids, which can be made more powerful; • Devices and systems needed for autonomous driving, such as cameras, radar units, sensors and even the extra computer power needed to navigate. Today’s computing systems demand a faster data speed. Latest car computers can process 15 000 data-bits per second but a few years from now will need to process 500 000 data-bits per second. A surprising consequence of the 48 volt switchover is the fact that wiring can now be made thinner, reducing the overall weight of vehicles. It’s all got to do with how power is measured – Watts = volts x amps. Accordingly, if volts are increased, amps can be reduced. For example, a 12 volt component drawing 10 amps will have wattage of 120. If the voltage is increased to 48, amperage will drop to 2,5 without affecting the component’s performance. A disadvantage of the extra voltage is that
the contacts and switchgear have to be redesigned. Delphi, one of the major automotive component suppliers, has a 2016 Honda Civic diesel test vehicle that has been converted to 48 volts, employing a lithium-ion battery in the boot, combined with a power converter. Engineers have added a 48 volt beltdriven alternator/starter to service the stop-start system and employed an electric turbocharger to eliminate turbo-lag. The company claims a 10% improvement in fuel economy. By 2025 American automakers have to achieve a fleet average fuel consumption of 4,32 litres/100 km! This means that
General Motors, Ford and Fiat-Chrysler – which are heavily dependent on the sales of SUVs and pickups – have to improve fuel economy figures by as much as 5% a year. Mercedes-Benz recently announced that it would launch a new range of efficient petrol engines next year, with more expensive models utilising 48 volt batteries. And Audi’s SQ7 production engine is one of the first to employ a 48 volt turbocharger.
Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.
“Abandoned Solutions offers a LEGAL, COST FREE solution TO ALL DEALERS/WORKSHOPS/PANELSHOPS” WHAT WE DO?
Abandoned Solutions (Pty) Ltd offers various Motor Vehicle Dealerships and Workshops the opportunity to sell their claims with regards to outstanding invoices and monies where the dealership has rendered services and invoiced for work already, quoted, finished or assessed, in their workshops and where the owner of the vehicle has simply: • Failed to pay, • Is uncontactable & uncooperative or willing to settle • Abandoned their respective Vehicles • Passing onerous risk on to the dealership forcing them to store various unwanted vehicles • Occupying valuable rented workshop space by leaving their unwanted vehicles on the Dealerships Premises. Abandoned Solutions simply buys the outstanding claim by negotiating an acceptable price from the dealership and removes the vehicle with immediate effect, whilst taking ownership of the outstanding claim or invoice.
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Both Parties, simply negotiate the price per claim that the dealership is willing to sell at (Willing buyer willing seller principal) Contract per claim is finalized and the monies are paid immediately (effecting the sale) The vehicles are collected immediately or by way of arrangement (Removed as promised) Abandoned Solutions is now rightfully the owner of the claim or outstanding invoice (Dealership is free of the liability and no longer the rightful Creditor of that particular claim rather that ownership has passed to Abandoned Solutions Pty ltd) Abandoned Solutions will trace the client at its own risk and have the claim JUNEin2017 settled full (this is how we make money and bring value to the Dealership)
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In developing its GT supercar, Ford used the model as a technology test bed for systems that could be incorporated in tomorrow’s production vehicles
udi is looking to write a new chapter in the history of lightweight design. The weightbearing body structure of the next generation A8 will be made up of four different lightweight materials – a greater number than has previously been used in any of the brand’s production models. Ford’s acclaimed GT supercar – which on debut won its class at last year’s Le Mans 24-Hour – was designed not only to race but to serve as a test bed for new technologies and ideas that could be incorporated in future vehicles across the brand’s line-up. Raj Nair, the company’s chief technical officer, says when work began on the project in 2013, the design team had
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a number of goals. “We wanted to use the GT as a training ground for our engineers to develop future engine technology, stretch our understanding of aerodynamics and push the boundaries of advanced material usage, such as lightweight carbon fibre. Finally, we set out to win Le Mans, referred to by many as the ultimate test of endurance and efficiency.”
it would have been impossible to deliver the all-new GT in its current form,” says the division’s director, Dave Pericak. “The collaboration was critical to not only bring the vehicle back to life, but to experiment with the kind of innovations needed to create a supercar.”
In pursuit of its aims, Ford combined several of its performance teams – Ford SVT, Team RS, Ford Racing, performance vehicle parts and merchandise licensing – into a single group to develop the car under a Ford Performance banner.
The concept of innovation is nothing new to Ford’s designers and engineers. In 2005, a forerunner of today’s GT featured a lightweight aluminium alloy body that helped to reduce weight and improve performance, which in turn led to the use of the high-strength aluminium alloy in current Ford F-Series pickup trucks – now the world’s biggest selling vehicle.
“Without this kind of integrated teamwork and combined organisation,
As the GT took shape, its role as a technology test bed soon became
evident with some innovations – such as carbon fibre light-weighting – serving as longer-term possibilities while other advancements were adopted for incorporation in today’s production vehicles. The GT’s drive selection system, for instance – which features a special track mode – is now available in the Focus RS and, from next year, will feature as standard equipment in the all-new Fiesta ST. Since the GT was designed to look fast standing still, the team optimised every shape to make it as aerodynamic as possible. A key goal was to reduce drag and optimise downforce – giving the vehicle stability and grip on the track
whether accelerating, cornering or braking. To achieve the aim, the development team needed to ensure that the car’s aerodynamics could be altered on demand to meet varying driving conditions. Accordingly, they created moveable elements around the body, including special ducts in the front and, at the rear, a large, deployable wing. The flaps open and close in relation to the angle of the wing, so the GT remains aerodynamically balanced from front to back across all speeds. When the wing is up, the ducts close to increase downforce; when the wing is down, they open to reduce downforce.
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TECH TALK The wing includes all-new technology developed by the company – a patentpending design in which the shape of the aerofoil changes for maximum efficiency when fully deployed. The unique design also includes a small gurney flap which, when combined with the shape change, results in a 14% improvement in overall efficiency. The compact six-cylinder design of the car’s EcoBoost engine aids the GT’s aerodynamics, and allowed the team to taper its fuselage to more efficient dimensions than a larger V8 configuration unit would have allowed. Low positioning of the powerplant’s turbochargers and outboard placement of the intercoolers ahead of the rear wheels helped to taper the fuselage around the engine. Ford is working with partners – including Multimatic and DowAksa – to develop new ways to enable faster, high-volume production of carbon fibre parts in the future. For example, the GT’s iconic flying buttresses that extend from the roof to the rear bumper would not have been possible using steel or aluminium because of limitations associated with conventional metal stamping. However, carbon fibre can be shaped into complex geometric designs because it is cut to a specific shape as a cloth and strengthened by curing at a high temperature. The GT’s 3,5-litre engine – the most powerful unit in Ford’s EcoBoost family – delivers 647 horsepower (about 482kW). It was developed alongside the GT’s race engine and the unit used in Ford’s F-150 Raptor high-performance offroad bakkie, which shares almost 60% of its parts with the road-going GT’s powerplant. “We pushed the engine’s limits beyond what we might consider in traditional development programmes, which is important as we continue to advance EcoBoost technology as a centrepiece of
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the company’s global line-up,” says chief powertrain engineer Bob Fascetti. The team also created innovative, anti-lag turbo technology that can help maximise the GT’s ability to power out of corners. The technology works by keeping the throttle open even when the driver is not pressing the accelerator. Though the fuel injectors are off, turbo speed and boost are maintained for instantaneous response as soon as the driver’s foot touches the pedal. To further improve engine performance, the GT features an all-new port and direct dual fuel-injection setup to improve engine response. The engine is paired with a seven-speed dual-clutch transaxle for near instantaneous gear changes and exceptional driver control. “All of the weight savings and engine advancements served a singular purpose – creating the fastest, most-efficient
Ford GT ever,” Pericak says. “Once that was achieved, we reinvested some of those weight savings in truly innovative technology that made the car even faster and more fun to drive.” The technologies include hydraulic suspension – which changes ride height at a turn of the drive selector knob to track mode, lowering the car by 50mm from its normal ride setting, simultaneously raising the wing and closing the front splitter ducts so that optimal downforce can be delivered. Spring rates and damper settings are altered, too. Another feature of the suspension is front-lift mode, which helps the GT to clear speedbumps while travelling on public roads. The driver can raise the front of the car on demand below 40km/h, the system automatically returning to normal ride height if that speed is breached.
MARCH 2016 -
Jurisdiction of the CCMA Before you refer a dispute to the CCMA, establish whether or not the forum is entitled to hear the matter, says Douw Breed, a director at Barnard Incorporated Attorneys, Centurion
isputes, irrespective of their nature, are often referred to incorrect forums. Matters which ought to be referred to the Bargaining Council are erroneously referred to the CCMA. Matters in which only the Labour Court is clothed with the necessary jurisdiction to determine a dispute, are not excluded from this practice. It is essential to appreciate the fact that the CCMA is an independent body established in terms of Section 12 of the Labour Relations Act. The CCMA is a creature of statute and does not have any inherent jurisdiction – it derives
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its power from statutes, relying mainly on the Labour Relations Act, Basic Conditions of Employment Act and the Employment Equity Act. The first question that requires consideration and dissection is this: What exactly is signified by “jurisdiction?” Jurisdiction boils down to whether the specific forum to which the dispute has been referred has the power to arbitrate or adjudicate the matter. In other words, it has to be established whether the forum may hear, consider and determine the dispute.
LABOUR The meaning of jurisdiction can be found in Gcaba v Minister of Safety and Security & others (2010) 31 ILJ 296 (CC); (2009) 12 BLLR (LC) at par 74. Without the power, the forum will not be able to hear the referred dispute and it will consequently be referred to the applicable forum. Section 115 of the Labour Relations Act (LRA) sets out the functions of the Commission. New amendments to the LRA now indicate that a party that refers a matter to the CCMA should prove that the CCMA has jurisdiction over a dispute. (See also rule 22 of the CCMA Rules.) It should be distinguished which jurisdictional points can be heard at conciliation and which should be heard at the commencement of arbitration proceedings. Jurisdictional points are raised as points in limine (the hearing of specific legal points.) Rule 22 of the CCMA deals with the issue pertaining to when a Commissioner may arbitrate a dispute. If it becomes apparent at arbitration that a jurisdictional point exists that has not been dealt with, the presiding commissioner will need to determine jurisdiction. The referring party should prove jurisdiction. The leading case on jurisdictional points – Gold Fields Mining South Africa (Pty) Ltd (Kloof Gold Mine) v Commission for Conciliation, Mediation and Arbitration and Others (JR 2006/08)  ZALC 66; (2010) 31 ILJ 371 (LC);  12 BLLR 1214 (LC) (3 July 2009) – includes the points listed below as issues that should be raised at conciliation phase. These issues are also set-out in the CCMA Practice and Procedure Manual of 2014: • Non-compliance with the relevant time frames as set out in the rules – this would usually include matters that were referred outside the 30-day
period and are not accompanied by a condonation application justifying the reason for the late referral; • If the matter is referred prematurely – the dispute has not yet manifested. A classic example is when an employee refers an unfair dismissal dispute prior to the actual dismissal taking place; • The matter is one over which the Bargaining Council has jurisdiction – normally the respondent will fall under the scope of such council; • Referral forms which have been signed by parties that do not have authority to sign, or the failure by employees to sign the referral form, • Where disputes have been settled and there is no doubt about such settlements (subject to criteria); • The existence of a clause indicating that a matter should be referred to private conciliation; • Dispute referred for conciliation is not one that is not contemplated by the Act. The judge in the Gold Fields matter also indicated that to hear or permit other points in limine’s at conciliation phase will undermine and frustrate the underlying purpose of the Act – disputes should be resolved expeditiously.
d) No dismissal took place; e) The Labour Court has jurisdiction ex unprotected strikes; f) Interest dispute issue; g) Jurisdictional points relating to foreign nationals and parties to illegal contracts; h) The employee was not in employment when the cause of action arose. It seems that jurisdictional points and, when to raise such points, proves to be far more delicate than initially perceived. Crucially, these points in limine should consequently be raised at the relevant process. Consideration should be given to the nature of the jurisdictional issue in order to determine the course of action. The purpose of the applicable form should not be defeated by raising points prematurely – action should conform to support the purpose of the Dispute Resolution Forum. The CCMA cannot clothe itself with jurisdiction it does not have and, similarly, neither can any other forum.
Examples of jurisdictional points that should be taken at arbitration include (CCMA Practice and Procedure Manual 2014): • When the referring party is not considered to be an employee. Section 200A of the LRA sets out criteria to determine the applicant’s status: a) The referred dispute has been settled; b) The dispute did not arise in the geographical area of South Africa; c) The dispute is not referred to the regional office in the area where the dispute arose;
Douw Breed (BCom (NWU) LLB (NWU)) is a director at Barnard Incorporated Attorneys , Centurion www.automobil.co.za
Protecting intellectual property Why bother to register a design? Stefaans J Gerber of Barnard Incorporated Attorneys, Centurion, explains why it’s important to protect a business’s intellectual property
t occurs more often than not that a competitor of a business will imitate a product or the design of another to leech off the success of the original. This could lead to the proprietor business suffering damages in that the imitating product could usurp business or, if of imperfect design, dilute the quality associated with the original. It is therefore important to protect the intellectual property of any business. Common law protection The only protection that the common law provides against infringement is through the law of unlawful competition, in particular, with an action of passing-off. However, the scope of protection of an action of passing-off is limited in the sense that the infringing product must be the same or extremely similar to the original. In addition, the burden of proof – when relying on common law – is on the business whose right is infringed to show that the transgressing party is unlawfully passing off the proprietor’s product or design as its own. Why register a design? If a product is reproduced in a threedimensional manner, it has a primarily utilitarian purpose and design rights can be registered. A registered design will have a certain value, which enables its production to be licensed, sold or even used to provide security for a loan. If a business
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or proprietor registers design rights in a product, it is afforded protection under the Designs Act 195 of 1993. This means that if a business is in possession of registered design rights, it will be able to institute legal action against a competitor that imitates or copies the product. Legal remedies available to the registered owner include, but are not limited to, an application for an interdict against the infringing party or a claim for damages suffered by the design’s registered owner. When instituting legal action, the burden of proof rests with the infringing party to prove that it is not acting in an unlawful manner and/or infringing on the rights of the registered owner. By registering a design, the owner need not rely on the common law principles when instituting legal action. Definition and scope of a design Design registration should be distinguished from a patent. Design registration is directed at protection of the physical appearance of an article, whereas, broadly speaking, a patent protects an invention. The Designs Act distinguishes between two types of designs, namely an • aesthetic design or • a functional design. The aesthetic design constitutes that a product exhibits a unique and novel appearance, irrespective of its function or the aesthetic quality thereof. This means that the design rights for a
modified design of an existing product – such as a chair – can be registered. The functional design constitutes that a product exhibits unique and novel features which are necessitated by its function. This means that the specific features of the design are necessary in achieving the function thereof. An example of a functional design is a motorboat propeller that has certain grooves to enable extra thrust as it flows through the water or gears that mesh to provide minimal friction while producing maximum power output. Registered design rights have predetermined durations: • An aesthetic design right rests with the proprietor for a period of 15 years; • A functional design right rests with the proprietor for a period of 10 years. After the prescribed time period lapses, the design becomes public knowledge and anyone can produce the product. In conclusion, registering a design right will enable your business to function at maximum efficiency. The process is relatively inexpensive and provides maximum protection under South African law. •
RMI4law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4law, call 0861 668 677.
RMI UPDATE Answers by experts to questions recently received by the RMI Q. What does ERA do and what is the core of the association’s activities?
A. ERA stands for the Engine Remanufacturer’s Association and represents the main-stream of motor engineers who remachine, rebuild, refurbish, recondition or remanufacture the country’s internal combustion engines. ERA members promote the reuse of engines, parts and components in a manner that is sustainable and environmentally friendly. ERA members also create employment and skills development opportunities, directly in their own machine shops or indirectly through suppliers to the industry or component manufacturers. Q. Does ERA provide engine remanufacturing specifications and from where can these be obtained? A. ERA members have free access to engine remanufacturing technical specifications, which are available from the ERA director’s office. ERA also negotiates with sister associations in other countries to obtain access to technical specification software for members. Q. What do businesses have to do in order to belong to ERA?
AUTOMOBIL FEBRUARY 2017ofEDITION A. ADVERTISERS Automotive engineers who run their -own shops are typical the business people who belong to ERA. Applicants who want to join the association have to meet at least minimum requirements in terms of accreditation criteria set by the industry. Q. What does ERA do as an Association to prevent the use of counterfeit parts in the industry? A. ERA, in conjunction with the RMI, constantly strives to eradicate the use of counterfeit parts in the industry.
For more information concerning ERA, e-mail Pieter Niemand at email@example.com
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Managing HIV/AIDS in your workplace If we could stop the sexual transmission of HIV, it would minimise the number of new HIV infections and slowly eliminate the epidemic
early all HIV infections in South Africa are the result of sexual transmission. Most sexually transmitted HIV infections could have been avoided through safer sexual practices. If we could stop the sexual transmission of HIV, it would minimise the number of new HIV infections and slowly eliminate the epidemic. Sexual transmission of HIV is dependent on sexual behaviour, and that means there are choices involved. The only truly 100% safe sex is no sex – at least no penetrative sex. All the other options carry some degree of risk depending on the persons involved and the situation. If not having any sex at all is not an option, then there are a few alternatives:
• A person should commit to a faithful long-term relationship with just one sexual partner who should also remain faithful to that person. • If a faithful relationship is not an option, a person should at least reduce the number of sexual partners – the more sexual partners, the higher the risk of HIV infection. • ALWAYS have sex with a condom – if a condom is not available, wait for another time. Remember, there are two types of condoms available today – the more common male condom and also the female condom. • A person should go for treatment as soon as they suspect they may be suffering from a sexually transmitted infection – not doing so may increase the chances of contracting HIV infection by two to five times.
• Circumcision or removal of the foreskin on the penis is another alternative. There is strong scientific evidence to show that circumcised men are less vulnerable to HIV infection through heterosexual intercourse than uncircumcised men. Studies have found that the inner surface of the foreskin has a very dense population of cells that can transport HIV from the skin surface into the bloodstream. In addition, the area under the foreskin can also trap bacteria acquired during sex and this increases the risk of sexually transmitted infections (STIs). Contact Redpeg for accredited HIV/AIDS workplace training, consulting and research. email@example.com | 0861 REDPEG or (011) 794 5173 | www.redpeg.co.za)
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Sales practices in a competitive second hand car market Sales executives in the second hand car market appear to be falling far short in meeting customer expectations, says Pieter Scholtz, the Co-Master Franchisor in Southern Africa for ActionCOACH
ver the last couple of months I have been trawling a number of online portals looking to buy a second-hand car. I was astounded at the lack of good sales practices and follow-up after inquiring about some really good purchases. As the prices of new cars rockets, more and more customers are turning to the second-hand market to acquire their next vehicles. New car sales have been on a steady decline for the last three years. The converse is that this has resulted in a miniboom in the second hand car market. My experience demonstrated to me that sales “executives” in the second-hand car market are falling far short of the sort of standards one would expect. Sales people appear to have never been trained in the art of selling an expensive product, nor do they know their product well enough to be able to provide clients with information relevant to the purchase decision. Some of my findings while searching for a vehicle were as follows: No follow-up after submitting an online enquiry; • In a number of instances where there was a follow-up call, the sales “executive” or call centre agent was not able to conduct a decent discussion to explore my needs and requirements. Neither could either tell me more about the vehicle other than that which was already on the website; • In most instances, the sales person assumed that I had only completed one online inquiry and, on making the call to me, said something along the following
lines: “Sir, I am following up on your inquiry for X model that you completed online.” In most instances I had completed around seven online enquiries for a particular brand from a wide range of dealerships; • Only one sales “executive” ever came back to me with a provisional trade-in price on my vehicle, and only one offered to bring to my office the vehicle which I was interested in buying to “finalise” a trade-in price for my current vehicle. This happened to be from a dealership outside of Johannesburg/Pretoria.
Where applicable, speed up the process to finalise a trade-in price. Recognise that while 70% of purchase decisions are made online, buyers need to be provided with equally fast sales advice and customer service after completing the initial online search. Ensure regular feedback to the customer regarding progress made in the sales process and finance application, if this aspect is being facilitated.
Taking the above into consideration, I would like to offer some suggestions to second hand dealerships on how to improve sales and customer service.
“Our mission is not to sell motor vehicles, but rather to direct and control the sales process with potential customers that may or may not result in a decision to purchase.
Make sure that all online enquiries are followed up within 24 hours; Ensure that your sales team has been trained to follow a script to ensure that you can ascertain the following: • Why is the customer in the market? • What are his/her particular lifestyle requirements? • What is the preferred price range – narrow this down further than what is indicated online. • Is the vehicle going to be financed or is this a cash deal? • Has the prospective customer inquired about any other vehicles? • What is his/her timeframe for making the decision?
Offer the customer the opportunity to demo the vehicle at his/her place of work or home. In many instances, a decision regarding the purchase of a vehicle is taken in consultation with the spouse.
In closing, I firmly believe that all dealerships should adhere to the following mission statement:
“Our responsibility is to make available to prospective customers everything they need to HEAR, SEE and TOUCH to be able to make an informed decision. When presented with a qualified customer we hope this informed decision will be to buy their next dream vehicle from us. “Potential customers must be guided through a process that results in a decision to buy a vehicle that suits their needs and lifestyles. The decision must always be theirs, made freely without pressure or coercion on our part. “When the customer has experienced full relevant disclosure, made a fully informed decision, and entered into a mutually beneficial agreement then, and only then, have we done our jobs. Then, and only then, have we truly SERVED the client.”
Pieter Scholtz is the Co-Master Franchisor in Southern Africa for ActionCOACH, the fastest growing and largest business coaching company globally. Pieter and his partner Harry Welby-Cooke developed ActionCOACH across Southern Africa, which now boasts over 40 franchisees. He is also a certified, leading business and executive coach. He has successfully assisted countless business owners to significantly grow their profits and develop their entrepreneurial skills. www.actioncoach.co.za / 012 665 1015
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The RMI welcomes these new businesses into membership
A A & P Engine Centre Andaz Auto Mechanics Ash Motors Auto Excellence Panel & Paint Auto Excellence Panel & Paint East London Auto Rehab B Bar-One Auto Towing and Recovery BB Zambezi Honda BC Mustard Seed Bisset Street Motors Workshop & Tyre Centre C Car Service City – Fourways Cars Metic Surgeon Centurion Transmissions & Service Centre Class of 94 Trademarks D Daly Mazda Potchefstroom Davi Lethwele E E Mathe and Sons Mechanical Services Eastvaal Automotive F 5 Star Paint & Panel G GBL Service Centre I Impak Group J JCN Projects & General Supplies K Khethakanye Trading and Projects 300
Utrecht Pretoria Polokwane Umkomaas Sandton Goodwood Centurion Pretoria Potchefstroom Groblersdal Ga-Rankuwa Johannesburg Boksburg Brackenfell Somerset West Polokwane Ga-Rankuwa
BENEFITS OF BELONGING
With a membership of 7 500, the RMI provides a very effective collective voice that gives members considerable clout in negotiating better trading conditions. As the lead voice in the motor industry, the RMI is a member-driven organisation that constantly seeks solutions to concerns raised by members in the day-to-day running of their businesses.
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M Manawer Mechanical Services McCannix Automotive MD and Ntombi Trading Enterprise Mike Nathan Auto Dealers N Ncances Body Works NF Auto Service O Ofentse Motors P P Nuama Panel Beaters Platinum Autobody Powerstar N7 R Roaring Wheels Rob's Auto Body Repairs Roland's Workshop S SAC North Coast Samuels Service Centre Samuels Service Centre Pinetown Stapro Tyres T Texas Auto Fitment Centre Torrao Car Service Total Twin Cities V Vehicle Motor Spares Direct VP Energy Centre Amalinda W West Coast Truck & Service Centre Z Zakahle Auto Mobile Mechanical Centre
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Africa Automotive Aftermarket Solutions
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Autocosmos Biz (Electrolog)
012 327 6210
Automobil Association Technical College
011 799 1068
012 450 2222
Gumtree South Africa
011 100 8600
012 664 3556
Intrade Motor Parts
011 432 2667
Moto Health Care
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Motor Industry Staff Association
011 476 3920
Precision Power Components
011 392 2012
011 651 9600
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Surprising jobs in the car industry Car sommeliers cannot wear perfume or aftershave when they’re working, while seat testers have to perform more than 20 000 tests to find perfect comfort. These are just some of the surprising types of jobs that exist in a vehicle factory
aking a new car is usually associated with professionals such as designers, engineers or assembly line workers. However, vehicle manufacturing also involves several curious professions that require a high degree of craftsmanship, creativity and precision. The following are a few examples of these: • The first driver: Two million kilometres a year – that’s the distance covered by a team of expert drivers who test all cars that leave a Volkswagen factory in Martorell, Spain, in a single year. Other factories may do more. • The professionals closely study the performance of the vehicles as soon as they come off the assembly line, testing them at different speeds on six different types of road surface, including cobblestones and uneven surfaces to ensure they do not make any unpleasant noises. During the process they also test that hooters, lights and brakes function correctly. • The clay sculptor: These artists handcraft clay into life-sized cars that even weigh the same as a real vehicle. This requires up to 2 500 kilos of clay and up to 10 000 hours of patient scraping to craft a single clay model, which will fully display a car’s silhouette before locking in its design. • The car tailor: They hand sew the vehicle’s upholstery patterns, coming up with the best combination of colours, fabrics and leather hides to suit the personality of each car. The expert tailors need more than 30 metres of seams to fully upholster an entire car, and their creations are crafted two years in advance.
66 JUNE 2017
• The seat tester: This profession consists of shaping the ideal seat. Testers and their teams have to perform up to 20 000 operations for each different type of seat. The study is exhaustive: they have to find the right foams, fabrics, structure or stitching that will adapt to different body types and external influences, such as heat and cold. They also ensure the correct design of headrests to prevent possible neck injuries.
• Car sommeliers: They are the people who achieve the famous new car smell – and the instrument they use is the nose. Chemists by trade, as a team they perform more than 400 smell tests every year, exposing cars to temperatures of 60ºC. • They have some curious demands with which to comply: they cannot smoke or wear after shave or perfume so as not to influence the outcome of test results.
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www.truckx.co.za JUNE 2017 67
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