25 years of saving lives
FINDING SOLUTIONS To make 2018 a success
MEET THE RMI BOARD AND SENIOR EXECUTIVES SAPRA NEC ELECTED RMI UPDATE: 88 APPRENTICES GET A CHANCE TO UPSKILL IN MOTOR www.automobil.co.za INDUSTRY; 2018 MERSETA ROAD SHOW SCHEDULE; PREPARING FOR INDUSTRY 4.0
22 -FEBRUARY NOVEMBER 2014 2018
CONTENTS – FEBRUARY 2018 COLUMNS 5 Driver’s Seat: Jakkie Olivier, CEO of the RMI 7 Editor’s Letter: Reuben van Niekerk 9 Hot Stuff! New product showcase 60 Frequently Asked Questions: Answers from experts 66 Tailpiece: CES depicts the automotive future UPDATES
Editor: Reuben van Niekerk email@example.com Sub-editor: Peggy Lendrum firstname.lastname@example.org Design and layout: Heinz Bawa email@example.com Reporters: Ryan de Smidt firstname.lastname@example.org
AVTS Celebrates 25 years of saving lives!
Late last year, AVTS celebrated 25 years of saving lives through safer vehicles
88 apprentices get a chance to upskill in motor industry; 2018 merSETA Road Show schedule; Preparing for Industry 4.0
Wynter Murdoch email@example.com
COVER STORY 20
Meet the RMI Board
The RMI’s leadership for the 2017/2018 term has been confirmed
Publisher: Richard Lendrum firstname.lastname@example.org Production: Mabel Ramafoko email@example.com Advertising Sales Executives: Enver Lawangi, Greg Surgeon, firstname.lastname@example.org email@example.com Future Publishing (Pty) Ltd 247 Jan Smuts Avenue, Dunkeld West, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 803-2040
Finding solutions to make 2018 a success
The President of the RMI, Jeánne Esterhuizen, shares her vision for 2018
SAPRA NEC elected
Toy or guided missile?
Having just returned from his Christmas holidays, David Furlonger makes some interesting observations
How to test your business idea
Identifying a feasible business idea is a critical step that is often overlooked says Pieter Scholtz
RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Denice Grobler, Danelle Van Der Merwe, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman and Reuben van Niekerk
The invention of the internal combustion engine
Jake Venter takes a closer look at the 20 years that followed the invention of the internal combustion engine
Automobil is the official journal of the Retail Motor Industry Organisation (RMI) which hosts 13 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); 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).
Investigation of Quantification of damages in the field of Insurance Law and how it affects your business
With motor vehicle collisions being so prevalent on SA roads, businesses will at some time be confronted with the process of submitting a claim to an insurance company
Dismissal on first offence
In circumstances where an employee is guilty of misconduct the adopted approach by SA courts is one of corrective and progressive discipline, and does not aim to be punitive
Transmission Control Plates for Global Automotive Applications
Tools for a new era
Johannesburg to host inaugural GarageXpo Africa in April 2018
Automobil is available to purchase from the publishers at R25 a copy. 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. © Future Publishing (Pty) Ltd
FEBRUARY 2018 -
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 FEBRUARY 2018
New year, new opportunities As we embark on 2018, Jakkie Olivier, CEO of the RMI, remarks that the new year could be a year of opportunities if businesses look in the right places
fter a well-deserved break at the end of a tumultuous 2017, and a fresh start in 2018, you may well be faced with challenges borrowed from last year, but you will also come across fresh opportunities that will undoubtedly motivate you to attain success. And if these opportunities do not present themselves, what is stopping you from creating your own? Unfortunately, South Africa has been inundated with media reports about corrupt and untrustworthy leaders and the economic adversity it has created – which makes it very easy to become pessimistic about the future, but pessimism has never been a promoter of success. Wouldn’t it be a much healthier state of affairs if each of us tried our best during 2018 to develop the leadership skills that we know will benefit not only our teams and businesses, but also our communities and, ultimately, our country? The great Henry Ford, founder of the Ford Motor Company, believed that you don’t need a position to be a leader, so a specific job title is not necessary in order to develop those leadership qualities that we believe our country’s leaders should have. Henry Ford may have been a complicated man, but he had perseverance, and understood that
relating to his employees and customers was a major driving force behind success. He valued his employees and revolutionised the automotive industry when he not only introduced the moving assembly line, but also increased workers’ wages and introduced work shifts in order to retain and motivate his employees. These specific actions may not be what your work force needs, but he listened to his people and tried to accommodate them wherever it was possible. This resulted in happy employees, which gave rise to happy customers. Ford also believed that a successful leader is continuously engaged in assessing business triumphs and failures, developing plans for improvement, and implementing these plans. This cycle should not only apply to your business, but also to yourself. Do you need to improve your communication skills? Do you need to delegate more to your employees or team members and trust that they will do the task properly? Having high expectations of your employees is one thing, but do you have the same high expectations from yourself? True leaders expect more from themselves than any member of their teams, and they lead by example. They don’t threaten in order to get results, they inspire.
Jakkie Olivier, CEO of the RMI When faced with the daily struggles of successfully running your business or team, improving your leadership skills may seem a tall order. Not every effort will be a success, but a mistake may just be the one thing necessary to a worthwhile achievement. Throughout the successes and mistakes that 2018 may bring, you can rest assured that the RMI will always be there to advise and assist you and your business. We remain a strong, united organisation, working alongside our members for the benefit of our members’ businesses and communities. Henry Ford definitely hit the nail on the head when he said: “Coming together is a beginning. Keeping together is progress. Working together is success.”
For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300
FEBRUARY 2018 -
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. 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. 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.
6 - FEBRUARY 2018
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. 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. 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. RMI contact details Head Office: 011-886-6300 | www.rmi.org.za Surrey Square Office Park, 330 Surrey Avenue, Ferndale, Randburg, 2194 RMI Regional Offices: Highveld: Randburg: 011-886-6300; Northern: Pretoria: 012-348-9311; KwaZulu-Natal: Durban: 031-266-7031; Eastern Cape/Border: Port Elizabeth: 041-364-0070; Western Cape: Cape Town: 021-939-9440; Free State/Northern Cape: Bloemfontein: 051-430-3294
What trends can we expect in 2018?
s we embark on a new year, it is the perfect opportunity to have a look at what might be some of the major automotive trends of 2018 and how they will affect the automotive aftermarket. New vehicle sales are expected to continue to drop. This downward trend is the first since the great recession, and dealers must be prepared to weather the period of low sales. The only way to survive in these tough times is to adapt. There have been more disruptors to the automotive industry in the last ten years than in the first 50 years after they were invented, and that rate of change is only expected to increase. Dealers need to be flexible and move with the industry, wherever it may go. One of the major automotive trends is the death of the taxi. Uber now has more drivers in New York than there are taxis. The key to the growth in ride sharing is
the growing expense of living in a city, making car buying less justifiable. Electric vehicles are about to boom. The automotive industry needs to be prepared for a rapid growth of electric vehicles. In a declining sales market, electric vehicles are one of the only segments to show growth globally, and the majority of major vehicle manufacturers are kicking their electric vehicle development into high gear. Britain and France are set to ban gas-powered cars by 2040. The industry needs to prepare to sell, service, and market electric vehicles. The age of the customers is finally fully here. Google, Amazon and Tesla, leaders when it comes to customer experience, are continuing to set records. Customers are flocking to convenience and control wherever the option arises. One of Tesla’s major appeals is its recognition of this trend and reacting to it by allowing a customer to buy a car without ever having
to visit a dealership. A quick visit to South African motor manufacturer websites quickly reveals that there is still plenty of work to be done in this department. What all these trends boil down to is that those who adapt will survive and thrive, those who don’t will be forced to close their doors sooner rather than later. Keep an eye on Automobil throughout 2018 as we will be unpacking these issues in more detail. Reuben van Niekerk, Editor
“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.
HOW IT WORKS? • • • •
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 settled inwww.automobil.co.za full (this is how we make money and bring value to the Dealership)
SOLUTION OFFERED •
We at Abandoned Solutions offer a quick, cost free solution to these problems.
We will: • A court order will be obtained within 4 – 6 weeks We will: • As an additional service, Abandoned Solutions can offer FREE temporary storage for abandoned vehicle should this be required during the clearing / salvage process.
Abandoned Solutions….…. we simply take care of your hassles……. And turn them into solutions……… Contact Robert Henderson on 011 450 0550 or 073 016 8424 Fax: E Mail: Address:
086 662 1148 firstname.lastname@example.org 72 Concorde Road East, Bedfordview, A3 (Head Office) FEBRUARY 2018
SPEAK TO US RMI EXECUTIVES
hief Executive Officer: C Jakkie Olivier email@example.com Chief Operations Officer: Jan Schoeman firstname.lastname@example.org Financial Director: Renee Coetsee email@example.com Company Secretary: Gary McCraw firstname.lastname@example.org
RMI BOARD MEMBERS Jeรกnne Esterhuizen (President) Barry Canning (Vice-President) Jakkie Olivier Johann van der Merwe Jaco Koen Franz Maritz Mams Rehaman
Lindsay Bouchier Eugene Ranft Chris Le Roux Dupre Le Roux Les McMaster Vuyani Mpofu Andrea Bogner Ferose Oaten Frank MacNicol
SAMBRA, SAVABA Edwin Martin email@example.com
TRAINING Louis van Huyssteen firstname.lastname@example.org
RMI4Sure 0860-104-202 RMI4Law 0861-668-677 RMI4BEE 0861-764-233 RMI4OHS 012-998-7139
DIRECTORS MIWA Pieter Niemand email@example.com NADA, MDA Gary McCraw firstname.lastname@example.org
RMI HEAD RMI HEADOFFICE OFFICE
RMI REGIONAL OFFICES
Danelle van der Merwe Brand and Communication Manager email@example.com
Highveld: Randburg: 011-886-6300
Neo Bokaba HR Manager firstname.lastname@example.org Julian Pillay Regulatory Compliance Manager email@example.com 011-886-6300 | www.rmi.org.za Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194
8 - MAY 2015
SAPRA Vishal Premlall firstname.lastname@example.org TDAFA, MPEA, MIMA Hedley Judd email@example.com
SADFIA, ACRA, ERA Attie Serfontein firstname.lastname@example.org TRANSFORMATION Joy Oldale email@example.com
Northern: Pretoria: 012-348-9311 KwaZulu-Natal: Durban: 031-266-7031 Eastern Cape/Border: Port Elizabeth: 041-364-0070 Western Cape: Cape Town: 021-939-9440
Free State/Northern Cape: Bloemfontein: 051-430-3294
Vehicle Testing Association
Engen launches Petronas Durance cargrooming products Engen has launched Petronas Durance, a new premium range of cargrooming products inspired by the science of Formula 1. Petronas Durance will be available from December, initially at selected Engen service stations in the Durban area, before rolling out nationally across South Africa.
Felo introduces the ultimate T-Handle
Car-grooming products available in the Petronas Durance range include fast wax and car polishes.
T-Handle tools - or maybe better known to the tool guys as T-Bars - is an essential tool range to any DIYer, tool man or industry tradesmen, as these tools offer a far better leverage and, more importantly, can get into hard to reach places.
“As a proud supplier of car-grooming products for the Mercedes AMG Petronas Formula One Team, Engen is excited to be able to offer this premium range to our customers,” says Adnaan Emeran, Engen Lubricants Marketing and Business Development Manager.
Felo have now produced the most ergonomic handle for all the T-Handle tools after many years of research and development. The shafts - or as Felo refer to them, the blades - are made from chrome-vanadium steel and chrome-molybdenum-vanadium steel.
“Petronas Durance comprises advanced car care formulations that deliver superior cleaning and protection to keep your car in top form both inside and out.”
This superior hardness exceeds DIN and ISO requirements by up to 100%. Typical of the German company, all tools have the EAN code and GS (Geprufte Sicherheit) tested for safety. The tipped tools all have black tips for a precision fit, and are chrome-plated.
To celebrate the launch, Durban customers experienced the range first hand at a number of participating Engen service stations where they were treated to a complimentary ‘full-on’ F1 car care experience. “The technical racing pedigree makes Petronas Durance the winning formula in car care,” adds Emeran. Mobile Petronas Durance cleaning stations, with a pit crew, cleaned, buffed and polished vehicles both inside and out. There were also lots of give-aways and entertainment, including workshops, racing simulators and product demos.
“Where Felo dominates is their huge range of T-Handle products, with all the different shaft lengths, a full range of sockets, hex, torx and square adapters that will take all the screwdriver bits, there is literally nothing they don’t cater for in the T-Handle, T-Bar tools,” said Ryan Hunt Sales Director Vermont Sales.
Felo is a leading brand in the Vermont Sales operation and is available at leading stores countrywide. For more information talk to your retail outlet, or contact Vermont Sales on 011 314 7711 or their web site www. vermontsales.co.za Trade enquiries welcome
FEBRUARY 2018 -
10 - SEPTEMBER 2017
SEPTEMBER 2017 -
Bosch sells starter-generator division
n a deal said to be worth around $668-million (about R8,2-billion), the well-established starter motor and generator division of the Robert Bosch Group has been bought by Chinese conglomerate Zhengzhou Coal Mining Machinery Group in conjunction with business partner China Renaissance Capital Investment of Hong Kong. The new company will operate under the name SEG Automotive, effective immediately. According to a statement issued by SEG, the new name is testimony to over a century of history in the development and production of starter motors and generators as well as a future-oriented focus on e-mobility. The letters SG represent starters and generators, while the E stands for electrification. “The management team that has made SG so successful in previous years will continue to ensure SEG Automotive grows profitably over the long term,” the statement adds. Dr Ulrich Kirschner, former President of Bosch’s Starter Motors and Generators
Division, has been appointed CEO of new company. The statement quotes him as saying: “Together with its new owners, SEG Automotive has great potential for innovation and further global growth, in particular in the significant Chinese and North American markets.” The acquisition, described in a statement issued by Bosch as one of the most complex in the company’s history, was signed in May and approved at the end of last year. The deal followed an announcement in mid-2015 that Bosch was examining strategic options for realigning its SMG division, including finding a partner or buyer.
Renaissance Capital during negotiations – said the purchase price had been agreed at about $668-million (about R8,2-billion) and represented the acquisition of 100% of Bosch’s SMG shares. Dr Rolf Bulander, chairman of the Mobility Solutions business sector and member of the management board of Robert Bosch GmbH, said the company’s goal had been achieved. “We have found a purchaser that offers a viable industrial concept and a longterm perspective for successfully taking this business forward internationally,” he said.
ZMJ already operates in the automotive sector through various subsidiaries and is regarded as a major supplier of “Bosch is convinced that, in this components. Among its innovations is a new constellation, the division’s Boost Recuperation Machine (BRM), which competitiveness can be increased and that enables regenerative braking and energy further stimuli for growth can be created. storage via a 48-volt electrical system to Bosch has invested a lot in making this save fuel or enable a performance boost happen,” the statement said. when passing. International law firm Clifford Chance – which advised ZMJ and China
“SEG Automotive is now paving the way for cost-efficient and environmentally-friendly
BAIC’s Coega plant ‘on track’
AIC South Africa has taken delivery of the first shipment of vehicle assembly plant equipment which is scheduled to be installed at the company’s automotive manufacturing facility at Coega, near Port Elizabeth. The R11 billion car plant – a joint initiative between China’s Beijing Automotive Group (BAIC) and the Industrial Development Corporation (IDC) – is South Africa’s largest motor investment in nearly 50 years. According to a statement released by BAIC SA, the equipment was shipped
12 - FEBRUARY 2018
from Tianjin, China, late last year. “The shipment comprises components for vehicle assembly, welding and for the paint shop.” The statement adds that other equipment and consumable items – accounting for 15% of the total equipment value – will “Welding automation will reach 60% and be locally procured. body transfer automation will be 100%. The painting line will also be flexible, with Gary Yang, Head of Marketing and robots from ABB employed for 100% Planning at BAIC SA, says the plant automatic exterior paint work,” he says. will produce left- and right-hand-drive derivatives. “The assembly line is flexible. According to Yang, construction of the Our modular engineering design will plant is on track with project timelines, accommodate a variety of assembly with installation of the equipment procedures for different models. scheduled to begin shortly.
hybrid technology for vehicle manufacturers and their customers,” the statement said, adding that the company was committed to further expanding its contribution to the reduction of CO2 emissions from passenger cars and commercial vehicles in order to address the challenge of climate protection – globally and across all drive technologies. “Even though e-mobility continues to gain ground, the combustion engine will remain a pillar of individual mobility worldwide for many years to come. This presents vehicle manufacturers with major challenges with regard to reducing fleet consumption and requires new solutions to achieve climate protection goals in terms of CO2 regulations. “With the BRM, SEG Automotive already offers a technology for hybridising petroland diesel-fuelled engines in a cost-effective manner. Through the use of BRM, fuel consumption and CO2 emissions can be reduced by about 15%. Additionally, advanced start/stop technology, as well as high-efficiency generators from the SEG Automotive portfolio, also provide significant CO2 savings.” The statement concludes by saying that, from the outset, the new company will be
Bosch’s Rolf Bulander… “We have found a purchaser that offers a viable industrial concept” one of the most significant suppliers in its market segments. “With 16 locations worldwide, over 8 000 employees and a powerful product range, SEG Automotive is strongly positioned across the world to meet the current and future challenges of automobile manufacturers. “At the crucial points, the company goes for continuity: all locations will be retained, the focus remains on highest product quality and innovation through
powerful engineering – and the journey towards e-mobility that started with the development of the BRM continues.” ZMJ was established in 1958 and is now one of the world’s largest developers and manufacturers of mining machinery. Its automotive interests form a second pillar in its business activities. The company is listed on stock exchanges in Shanghai and Hong Kong. The ZMJ group comprises a total of 22 subsidiaries, stock companies and holdings worldwide.
Nissan sells 300 000th Leaf
issan has sold 300 000 units of its all-electric Leaf globally since the model went on sale in 2010. The car is the world’s first mass-produced – and also the best-selling – all-electric vehicle.
A fully redesigned version of the model was launched in September, incorporating technology such as ProPILOT Park and e-Pedal, as well as an energy system that offers improved power and range. “These numbers prove that the Leaf remains the most advanced production car in the world, with the widest reach and the greatest availability,” said Nissan Executive Vice President Daniele Schillaci. Nissan intends to market the new version of the car in more than 60 markets worldwide.
Ford expands FREC activities
Ockert Berry, Ford’s Vice President of Operations for the Middle East and Africa, with Dr Casper Kruger, Managing Director of the company’s Sub Saharan region, at the opening of the new IT Centre in Pretoria
ord has made a contribution towards developing basic computer literacy by launching a community information technology (IT) facility at its Resource and Engagement Centre (FREC) in Silverton, Pretoria.
“Basic computer literacy is an essential skill that enables people to gain employment, and assists entrepreneurs in developing a sustainable business,” says Dr Casper Kruger, Managing Director of Ford Motor Company’s Sub Saharan Africa region.
The centre is located in a specially converted shipping container which is capable of accommodating 24 students at a time.
“By adding this IT facility to the innovative Ford Resource and Engagement Centre, we will be empowering and uplifting the
community to find jobs and create new business opportunities.” The centre has been designed to bolster Ford’s existing FREC community development projects in which more than 200 participants have been enrolled. Introduced as the second resource centre of its kind – modelled after the original Ford Resource and Engagement Centre in Detroit – the Pretoria FREC forms part of a five-year, R56-million investment in community building across the African continent, with around R12-million allocated to South Africa. According to a company statement, the local centre has already made important inroads, with 105 people completing a financial literacy course and 25 selected for entrepreneurship training. A further 20 people have received training in commercial carpet cleaning, and six are currently learning how to produce tomatoes in hydroponic tunnels. Additionally, FREC has launched two 12-month early childhood development (ECD) courses, which cater for 51 participants.
Former Toyota president dies
ormer Toyota Motor Corporation President Tatsuro Toyoda – son of the company’s founder, Kiichiro – has died. He was 88.
Regarded as being responsible for turning Toyota into one of the world’s top motor manufacturers, Toyoda stepped down as president in 1995 but continued to serve the company in advisory capacities. He was instrumental in setting up a California joint venture with American rival General Motors called NUMMI, or New United Motor Manufacturing Inc, which began production in 1984. He served as the venture’s first president. He is survived by his wife, Ayako.
In memoriam… Tatsuro Toyoda
14 FEBRUARY 2018
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Conti backs the Tour de France
yre brand Continental has been named as a sponsor of the Tour de France cycle race. A five-year agreement was officially announced recently in Paris by Christian Prudhomme, General Director of the event, and Nikolai Setzer, Member of the Executive Board of Continental AG. “For Continental, becoming an official partner is the logical next step in our commitment to the development and production of high-tech tyres for racing bikes – tyres that are also used in the Tour de France,” Setzer said. “We aim to show our great tyre manufacturing expertise in a unique environment of worldwide significance – a cycle race that not only demands the ultimate in safety but also calls for benchmark standards in terms of rolling resistance and weight.”
Last year, nine teams competing in the race on Continental tyres, with four-time Tour de France winner Chris Froome taking the 2016 and 2017 titles on the brand’s rubber.
Port Elizabeth. The company has threeyear partnership agreement with the organisers.
Prudhomme added: “It is an honour to welcome Continental to the Tour de France. The tyre is the only point of contact between a bike and the road; it is therefore a key element in the practice of this sport.”
As the secondoldest cycling race in South Africa and the biggest in the Eastern Cape, The Herald Continental Cycle Tour hosted over 3 000 competitors in 2017 competing in road, mountain bike and team events over two weekends.
In terms of the agreement, Continental will supply all official support vehicles at the event – cars, vans and motorcycles – with its tyres, as well as supplying race teams with which it has agreements. On the local front, Continental Tyre South Africa (CTSA) has confirmed that it will once again be a joint title sponsor of The Herald Continental Cycle Tour which takes place this month in
“The Herald Continental Cycle Tour is one of South Africa’s most popular cycling events, and provides the ideal showcase for our cutting-edge German technologies in both passenger car tyres and bicycle tyres, which are recognized as industry leaders in their respective segments,” said Shaun Uys, managing director of Continental Tyre SA.
Merc unveils new G-Class
n the eve of last month’s North American International Auto Show (NAIAS), the Michigan Theatre in Detroit played host to not one but two legends. It was the venue chosen by Mercedes-Benz for its traditional New Year’s reception and for the unveiling of the brand’s new G-Class. Arnold Schwarzenegger, Hollywood star and former governor of California, drove the vehicle onto the stage over a spectacular ramp built to look like the Schöckl – a landmark mountain near the Austrian city of Graz used by Mercedes-Benz for off-road testing, and conquered by every generation of G-Class since the vehicle’s introduction in 1979.
16 FEBRUARY 2018
Schwarzenegger presented the new, modern interpretation of the model to more than 500 guests, with Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, describing its virtues. He said the model offered outstanding performance on any type of terrain, thanks to state-of-the-art assistance systems and other unique features. “We’ve modernised the interior, improved on-road handling and further optimised the G-Class’ legendary off-road skills,” he said, adding that, at the same time, the unmistakable character of the vehicle had been preserved.
Merc’s new G-Class makes its debut at NAIAS, driven by Arnold Schwarzenegger
Volkswagen intensifies Africa investment According to the statement, a Memorandum of Understanding (MoU) has been signed with the CFAO Group – a multinational company engaged in the sale of manufactured goods, especially automobiles and pharmaceutical products – which will manage production and retail operations.
Thomas Schaefer, CEO of the Volkswagen Group South Africa, with Claire Akamanzi, CEO of the Rwanda Development Board, at a briefing in Kigali at which the German company’s investment in Rwanda was announced
olkswagen is to establish an integrated mobile solutions company in Rwanda at a cost of $20-million (about R245-million). Facilities will include a vehicle assembly line as well as a retail outlet, a training centre and car-sharing and ride-hailing services. In making the announcement, Thomas Schaefer, Chairman and Managing Director of the Volkswagen Group South Africa, says in December 2016 the company signed a Memorandum of Understanding with the Rwanda Development Board to conduct a detailed study to develop a business case for Volkswagen to introduce an integrated automotive mobility concept. “Our studies are complete. We believe that we have a business case that will work and we are ready to commence implementation. In short, there is no going back – we are fully committed,” he says. According to a statement released by Volkswagen – which already has investments in Kenya in addition to those in South Africa – the company
chose Rwanda as the country in which to intensify its African presence because it offers: • Political stability and zero tolerance for corruption; • Economic growth of about 7% a year; • A young and tech savvy population; • Perceived leadership in fields of innovation and technology. “Volkswagen will adopt a phased approach in the implementation of the integrated automotive mobility solution,” the statement says. The first phase will focus on establishing the manufacturing entity with sales and service back-up, as well as setting up a training centre and launching the carsharing app. “A building has been identified in Kigali from which the company will operate. The assembly plant will have an initial annual installed capacity of up to 5 000 units, with 2018 being our start-up year. The product portfolio will initially include the Polo hatchback, the Passat, a sedan and possibly the Teramont, a large SUV.”
“Volkswagen has successful other partnerships with CFAO including the running of production facilities and retail operations in Kenya. The current business plan assumes employment of between 500 and 1 000 people in Kigali in Phase One,” the statement says. It adds that the first service to be provided by Volkswagen Mobility Solutions Rwanda will be a community car-sharing operation scheduled to come on stream in the second quarter. The company has joined forces with Kigali-based software development start-up Awesomity Lab to develop an app for the service, and expects to have about 150 vehicles in operation within a few months. “This will be followed by a ride-hailing service in the medium term and, in 2019, by public car sharing with some 250 vehicles planned,” the statement says, adding that shuttle services as well as peer to peer car sharing services are envisaged, too. “We are delighted with the progress that has been made since we signed the MoU,” says Clare Akamanzi, CEO of the RDB. “The project is in line with Rwanda’s policies to protect the environment, create jobs and reduce our trade deficit. “We are confident that the partnership will help create opportunities for young Rwandans not only in terms of employment but also in terms of skills transfer.”
Gripping performance from BorgWarner
orgWarner’s latest all-wheel drive coupling has been designed to enhance handling, traction and stability for Volvo’s new XC40 compact SUV, a model which is due to be launched shortly in South Africa. Featuring integrated vehicle dynamics software, the compact and lightweight AWD solution is said to provide high accuracy, distributing torque between the front and rear axle on demand, improving stability on nearly all terrains while heightening fuel efficiency. “Our coupling delivers both enhanced dynamics and traction for an outstanding overall driving experience,” says Dr Stefan Demmerle, President and General Manager of BorgWarner’s PowerDrive Systems.
The AWD coupling is equipped with an integrated electronic control unit (ECU) featuring adaptable vehicle dynamics software to provide desired driving characteristics. The unit features an electronically controlled wet multi-plate clutch, which automatically distributes the required amount of torque between the two axles for the best possible traction on practically all surfaces. Operating independently of the differential speed between the two axles, the coupling can offer full
locking torque at any given time and speed, depending on road conditions and vehicle load distribution. The unit’s lightweight and highperformance design contribute to improved fuel efficiency, while its response time, torque density and accuracy are said to significantly enhance handling and traction.
Global e-commerce aftermarket on the up
recent study by American research company Transparency Market Research (TMR) shows that the global e-commerce automotive aftermarket is largely consolidated with a few key companies holding the majority of market share.
The study estimates that the global e-commerce automotive aftermarket is likely to be worth about $137-billion (R1,687-trillion) by 2025. In terms of volume, 2,4 million shipments were recorded in the overall market in 2016, with brake pads being the most frequently bought items.
According to the study, major participants include Amazon, the National Automotive Parts Association (NAPA), Pep Boys, EBay, ERA SPA, the Alibaba Group, AutoZone, Denso Corporation, Rakuten Commerce, Das Ersatzteil GmbH, CATI SpA, Dnaber Auto Parts, Q-Parts 24 and LKQ Corporation.
The increasing number of e-commerce platforms and rising collaboration between e-commerce platform providers and brick and mortar stores is seen as one of the most prominent drivers of the e-commerce automotive aftermarket.
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Another prominent growth factor is the move by e-tailers to act as service
aggregators to provide price and quality assurance to customers. The study says e-commerce platforms are increasingly being opted for by consumers due to the availability of multiple brands at competitive prices. The entry of aftermarket manufacturers into e-tailing is another prominent factor driving the sector. Business to customer sales channels are eliminating the need for middlemen, with cost benefits being passed on to consumers. The study took into consideration developments in markets in North America, Latin America, Asia Pacific, Europe and the Middle East and Africa.
SEPTEMBER 2017 -
MEET THE RMI BOARD AND SENIOR EXECUTIVES The RMI’s leadership for the 2017/2018 term has been confirmed, Jeánne Esterhuizen has been re-elected President and Barry Canning has been re-elected Vice-President
Top left to right: Johann van der Merwe (MPEA Chairperson), Jan Schoeman (Chief Operations Officer), Jaco Koen (Eastern Cape Chairperson), Franz Maritz (TDAFA Chairperson), Frank MacNicol (ERA National Chairperson) 2nd row from top left to right: Ferose Oaten (VTA Chairperson, Western Cape Chairperson), Gary McCraw (Company Secretary), Mams Rehaman (SAVABA Chairperson), Lindsay Bouchier (Border Chairperson), Eugene Ranft (MIWA Chairperson) 3rd row from top left to right: Chris Le Roux (SADFIA Chairperson and KZN Chairperson), Dupre Le Roux (SAPRA Chairperson), Les McMaster (Northern Chairperson), Jakkie Olivier (Chief Executive Officer) Bottom row left to right: Vuyani Mpofu (Non-Executive Director), Andrea Bogner (Highveld Chairperson), Jeánne Esterhuizen (RMI President , SAMBRA Chairperson, RMI Labour Executive) , Reneè Coetsee (Financial Director), Barry Canning (RMI Vice-President, RMI Labour Executive) Vacant positions: ACRA | MDA | MIMA | NADA
20 FEBRUARY 2018
Jeรกnne Esterhuizen (RMI President)
Barry Canning (RMI Vice-President, RMI Labour Executive)
Johann van der Merwe (MPEA Chairperson)
Jan Schoeman (Chief Operations Officer)
Jakkie Olivier (Chief Executive Officer)
Jaco Koen (Eastern Cape Chairperson)
FEBRUARY 2018 -
Gary McCraw (Company Secretary)
Lindsay Bouchier (Border Chairperson)
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Franz Maritz (TDAFA Chairperson)
Dupre Le Roux (SAPRA Chairperson)
Vuyani Mpofu (Non-Executive Director)
Les McMaster (Northern Chairperson)
Andrea Bogner (Highveld Chairperson)
Eugene Ranft (MIWA Chairperson)
Chris Le Roux (SADFIA Chairperson and KZN Chairperson)
Ferose Oaten (VTA Chairperson, Western Cape Chairperson)
ReneĂ¨ Coetsee (Financial Director)
Mams Rehaman (SAVABA Chairperson)
Frank MacNicol (ERA National Chairperson)
FEBRUARY 2018 -
Finding solutions to make 2018 a success The President of the RMI, Jeánne Esterhuizen, shares her Vision for 2018.
eflecting on my first term as President of the RMI and the goals we set out to accomplish with the RMI staff and office-bearers, I am confident the RMI and its associations are firmly on track to reach their full potential as leaders of business in South Africa’s automotive industry. I am especially pleased with the greater participation of younger members in local and national structures, who will be the future leaders of the RMI. We have exciting work ahead of us to equip our future leaders and the RMI staff to achieve all of the strategic objectives approved by the RMI Board. Lessons learnt and experience gained over the past two years in the broader context of the role politics play in the economy, and the behaviour of business both locally and internationally, make it a daunting task to have a vision that would remain exhilarating and inspiring. In South Africa, the future is profoundly uncertain and unsettling from a business perspective when the focus remains on politics alone. The great Martin Luther King Jnr believed there are two types of laws that govern the world: those of a higher authority and those made by man. His historic, ‘I have a dream’ speech, inspired the biggest civil rights changes in American history, and not a, ‘I have a plan’ speech which we so frequently hear from politicians the world over. From time immemorial, businesses failed and will fail, and the reason for this is usually
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permutations of ‘undercapitalised, wrong people, and bad market conditions’. With exceptions, these reasons may be valid, but the question always remains - who governed these failed businesses and how were they governed. Are the man-made laws in our country good for business or can we improve on them? This question must be answered in 2018. There is a fundamental belief one cannot strengthen oneself and grow as a business amid all the challenges we face in South Africa. We need to do away with that perception if we wish to share in an exhilarating and inspiring vision. Even though tangible progress can be reported in some areas, most of the challenges we faced in 2015 still remain, so the vision I have for 2018 is to begin to collectively devise and present a cohesive strategy to government, requesting economic solutions and support for our industry an industry that employs most of the workers in the automotive value chain. Unfair business practices, corruption and anti-competitive behaviour are alive and well and certainly stifling healthy economic growth in this sector. Can the pay practices in our Industry address the basic needs of families and provide the
education children require to grow the future economy of our country? Or are we overpaying workers for the level of skill we generally find in this sector ? These questions must be answered before we are go into the next round of wage negotiations in 2019. There are many challenges: The high cost of business compliance across our subsectors; the known and unknown skills shortages; the hurricane of Industry 4.0 (the digital transformation of industrial markets); the overly expensive cost of training, and lack of available funding for Private and Public Decentralised Trade Testing Facilities and Technical Training Centres; the high percentage of low literacy and numeracy levels of school leavers; the oversupply of graduates for obsolete jobs; failure to raise and support innovative entrepreneurs; the exorbitant cost of imported equipment and associated technologies, and lack
RMI UPDATE 5
STATISTICS SOUTH AFRICA Table C – Profit margin in the motor trade industry, 2006–2015
Type of motor trade
Net profit/loss after tax 2006
R million Wholesale sales of motor vehicles Retail sales of motor vehicles Maintenance and repair of motor vehicles Sales of new motor vehicle parts and accessories Sales of used motor vehicle parts and accessories Sales, maintenance and repair of motorcycles and related accessories Retail sales of automotive fuel Total
Source: Report No. 63-01-02
The profit margin for the motor trade industry was 2,0% in 2015. ‘Sales of used motor vehicle parts and accessories’ had the highest profit margin at 5,0%, followed by ‘sales of new motor vehicle parts and accessories’ at 3,4% and ‘wholesale sales of motor vehicles’ at 3,1%. ‘Retail sales of automotive fuel’ had the lowest profit margin of 1,0%. Between 2006 and 2015, the motor trade industry recorded a highest profit margin of 2,2% in 2009. The highest profit margin by type of motor trade was ‘sales of used motor vehicle parts and accessories’ at 6,7% in 2006. ‘Retail sales of automotive fuel’ is the only type of motor trade which had profit margins lower than the overall profit margin in all four years surveyed.
of access to technology where volumes of work are low; lack of technical support and under development in rural areas; serious social issues consistently impacting negatively on productivity in the workplace, and the lack of financial support to develop and empower all Motor trade industry,of Report 63-01-02(2015) classifications business. All of these issues must be analysed and documented, and solution-driven proposals must be presented to government to grow and sustain current and future RMI member businesses. Even though the challenges are complex and extensively more than I have mentioned, every business does have an important role to play to find short-, medium- and long-term solutions. We must begin at our own doorstep, in our own communities to bring back a sense of unity where people of all races can stand together to eradicate poverty and all of the well-known associated social problems. If we are not involved in creating a better future for our country, we should not complain about the consequences thereof. Importantly, RMI member businesses must lead by example. To belong to the
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RMI is to belong to a family of businesses well equipped to leave a trusted and prosperous legacy. This year we celebrate 110 years of being the authoritative voice for business in the motor industry. Now, more than ever before, we need to strengthen this voice to speak out on behalf of our members. To achieve this we must be the consumer’s first and only choice to do business with. South Africa without a doubt is still a land of great opportunity but, sadly, products, knowledge and skills are imported even
if we have a wealth of unemployed young people and natural resources to help ourselves. I have a dream for the RMI to provide a world-class service, and for all thought leaders to embrace the changes we need to make to substantially increase the contribution of the automotive industry to the GDP of our country. In 2018, believe that in Belonging is Better Business. It is a year in which we need to get comfortable with being uncomfortable.
What is a learnership? A learnership is a structured learning process for gaining theoretical knowledge through an accredited training provider and practical skills in the workplace, leading to a qualiﬁcation registered on the NQF. A learnership is outcomes-based and not time-based and allows for recognition of prior learning. Learnership duration varies but the average is about 12 months.
Who is eligible to enter a learnership programme? Any person, employed or unemployed, may apply to register for a learnership: Ÿ If you are employed, you may register for a learnership programme
within the sector where your company or organisation operates; or
Ÿ If you are unemployed, you may register for placement in a
learnership programme at your local labour centre or with employers in your area.
The Department of Labour refers unemployed individuals, who meet the minimum criteria, to employers looking for learners.
How does one apply for a learnership programme? Ÿ If you are employed, ﬁnd out which learnerships are available in the
sector in which you work. Upon deciding which learnership programme is appropriate, you will need to enter into an agreement with your employer stating your rights and responsibilities as a learner; or
Ÿ If you are unemployed, you must register your proﬁle at the nearest
Department of Labour ofﬁce, after which you may be referred to employers who may be looking for learners to enter learnership programmes.
What is an apprenticeship?
It’s about caring for people we render services to
The apprenticeship system is a well-known technical training system, which covers both practical and theoretical components offered in listed trades. Once you have completed your training, you will need to pass a trade test to qualify as an artisan.
Who is eligible for an apprenticeship programme?
It’s about working together with colleagues
Any South African citizen, 16 years or older. There are different admission requirements for the various trades. Competence in Maths, Science and English will enhance your chances of selection.
How does one apply to enter an apprenticeship programme?
It’s about going beyond the call of duty
Ÿ If you are unemployed, you may apply to a company that is offering
an apprenticeship programme; or
w www.merseta.org.za @mersetasocial
Ÿ If you are employed, consult with your employer as to the
requirements and correct procedures to be followed to enter an apprenticeship programme.
LEADERS IN CLOSING THE SKILLS GAP www.automobil.co.za
FEBRUARY 2018 -
SAPRA NEC elected
APRA embarked on Regional AGMs in seven regions around South Africa during the months of September and October 2017. Out of these sessions, Regional Committees and Chairs were elected to represent the SAPRA membership. Seven Regional Chairs, one Co-opted member and the Director now make up the National Executive Committee. This team is now tasked to identify and deliver strategic objectives for SAPRA that include, but are not limited to: • Liquid Fuel Charter & Transformation • The New Thinking Model – various elements • The RAS / BSS Matrix • Goodwill • Compliance Issues • Training & Upskilling • Revised communication and PR • Member drive and retention • Value propositions to improve retailers sustainability
Rajen Singh – KZN Chairman, August Fleischman – Northern Region Chairman, Henry Van Der Merwe – Highveld Chairman (interim), Dupre Le Roux – Western Cape Chairman, Vishal Premlall – SAPRA Director, Sello Molemela – Bloemfontein Chairman, (Giselle Schoeman – PA to Director), Bonile Sigenu – East London Chairman and Chris Opperman – Port Elizabeth Chairman
The young NEC comes in at a time when change relating to the New Thinking Model is upon us. SAPRA is confident that this young and dynamic team will bring about refreshing new ideas that will take the association to new heights.
Contact details are as follows: • National Director - Vishal Premlall, Tel: 011 886-6300, Mobile: 082 886 6392, Vishal.email@example.com • PA to Director – Giselle Schoeman, Tel: 011 886 6300, Giselle.Schoeman@rmi.org.za • National Chair & Western Cape Chair – Dupre Le Roux, firstname.lastname@example.org • National Vice Chair & Bloemfontein Chair – Sello Molemela, email@example.com • Northern Region Chair – August Fleischman, firstname.lastname@example.org • Gerrie Lewies, email@example.com • East London Chair – Bonile Sigenu, firstname.lastname@example.org • Highveld Chair (Interim) – Henry Van Der Merwe, email@example.com • KZN Chair (Interim) – Rajen Singh, firstname.lastname@example.org • Port Elizabeth Chair – Chris Opperman, email@example.com
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GAUTENG AUTOMOTIVE LEARNING CENTRE For all your automotive industry related training. We offer internationally accredited training in:
SPRAY PAINTER PANEL BEATER
COMPUTER NUMERIC CONTROL (CNC) PRODUCTION MACHINING
TRADE TEST CENTRE RPL
FITTING AND TURNING
PC TRAINING SOFT SKILLS
The AIDC offers state-of-the-art manufacturing support facilities, to encourage opportunities for Skills Development & Training at competitive rates. CONTACT US FOR
COMPETETIVE MARKET-RELATED RATES www.automobil.co.za IN 2018
FOR ANY ENQUIRIES PLEASE CONTACT: Samantha Mvakali : 012 564 5046 / firstname.lastname@example.org Kopano Mokwena :012 564 5323 / email@example.com FEBRUARY 2018 -
Toy or guided missile? Having just returned from his Christmas holidays, David Furlonger makes some interesting observations
’ve just returned from another planet. Writing this, in early January, it’s only a couple of days since I got back from a month in the UK, where I spent Christmas and New Year. There was a lot of driving: from London to Yorkshire, to Scotland, to London, to the Sussex coast, to Cornwall, to London, to Cornwall again and finally back to London. Does that really qualify as a lot? Given the tiny size of the UK, in total I drove the equivalent of Joburg to Port Elizabeth and back. In South African terms, that’s routine. By local standards, however, there was nothing routine about any of the journeys. People obeyed the rules of the road – overtaking on the right then heading straight back to the left lane. On motorways, there was no hogging
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of the centre lane. If the slow lane was clear, that’s where motorists positioned themselves. When traffic clogged, no taxi drivers, motorcyclists or other drivers flooded the hard-shoulders or emergency lanes. Everyone knew the rules at traffic circles. Oh yes, and trucks appeared to be properly maintained and licensed, so I never got stuck behind a 30km/h chugger belching out diesel fumes. Would British motorists be so obedient if they weren’t fearful of the legal consequences? Probably not. Traffic fines – and worse – for dangerous driving can be terrifying. Loss of a no-claims bonus can add hundreds of pounds to vehicle insurance premiums – and don’t even think of going uninsured, for prison beckons.
Even a minor infringement – driving at 34mph in a 30mph zone, or straying momentarily into a bus lane – can be expensive. And don’t, for one moment, consider driving anywhere if you’re likely to have a couple of drinks. We think we’ve learned that lesson here, but it’s nowhere near as intense as in the UK. Of course, it helps that there is a functioning public transport system there. Traffic and CCTV cameras are widespread, and the increasing popularity of dashboard cameras (dashcams) in vehicles increases the likelihood of misbehaviour being caught onscreen. There is also a growing trend for motorists to use cellphones to capture examples of bad driving in other vehicles. There have been several successful prosecutions of people pictured using
None of these observations is meant to depict the UK as motoring heaven. Roads are overcrowded, fuel is expensive, trying to drive into London is actively discouraged, and it requires great patience to pick your way through narrow town streets. The M25 ringroad around London is a perpetual nightmare. mobile phones, drinking coffee, shaving or reading at the wheel. Some have lost their jobs after employers were alerted to their behaviour in company vehicles. Nanny state? Probably. But if it increases the chances of me – or, more importantly, my children – getting home alive, I’m all for it. Driving in South Africa is a macho sport, but deadly. Naturally, even the most nanny-ish rules don’t preclude accidents. During my visit, I drove through blizzards and on ice as temperatures fell to minus 13˚C in some places. And one should never discount good old British rain, which is rarely absent throughout the year. Injuries and deaths are inevitable, but nowhere near the proportion experienced in South Africa, where anarchy is allowed to flourish on the roads.
One indication of different attitudes is that a three-death road accident in the UK creates many more headlines – and greater soul-searching – than a 30-death incident here, where reports quickly disappear from news columns.
Counter-balancing this are nondiscretionary road rules and heavyhanded policing – supported by a continuing desire among many Brits to drive responsibly. Some old habits die hard.
Some other British automotive habits would be unthinkable in South Africa. Most garages are used to store household goods, not cars, which are left out at night on unfenced driveways. Many times during my holiday, the first few minutes each morning were spent defrosting car windows.
The biggest difference between here and there is that the UK sees a car as a responsibility; a one-ton guided missile capable of inflicting serious injury. In SA, it’s a toy.
One night in South London, with the house’s single allocated parking space accounted for, I had no hesitation to park my car on a street 10 blocks away. Given South Africa’s vehicle crime rate, how many of us would dare do that here?
David Furlonger is the industrial editor of Business Day and Financial Mail
I know which attitude I prefer.
FEBRUARY 2018 -
AVTS Celebrates 25 years of saving lives! O
AVTS long serving employees
n 12 December 2017, AVTS celebrated 25 years of saving lives through safer vehicles. Originally named Airport Vehicle Testing Station, AVTS opened its doors for trading, presenting a station with two heavy lanes, and seven staff members. Over the last 25 years, the business has grown to seven branches with 11 lanes and 75 staff members. Ferose Oaten, Managing Director of AVTS says that there have been many years of striving to be the best in the industry, of benchmarking themselves against the best in the world. She goes on to say that there were also times when all that they strived to do was just survive long enough to make it for another month, and another year. “Our vision of being Leaders in ensuring the Safe Vehicles Save Lives every day, is a
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great testimony to what we do each day. It means something, what AVTS does, means something and makes a difference in people’s lives.”
About AVTS: • Established in 1992, with current share-holders Ferose Oaten (74%) and TÜV SÜD South Africa (26%), headquartered in Munich • Located in the Cape Peninsula, AVTS has branches in Airport Industria, Bellville, Goodwood (Wingfield), Lansdowne (Kenilworth), Culemborg (Foreshore, Cape Town), Table View and Strand • It employs 75 people, of whom 30 are vehicle examiners • The City of Cape Town’s Registering Authority is on the premises of AVTS Airport branch • AVTS has an accredited Training
Centre, offering industry and quality management training Fully compliant in all aspects of the National Road Traffic Act and SANS standards Members of the RMI-VTA and RMI (South Africa) Consultant to the industry and to countries in Africa
Highlights • Achieved ISO 9001 certification in 2002 for its head office and all its branches, and has recently transitioned to ISO 9001:2015, an achievement that is not common in the roadworthy industry • Supported Mauritius in the establishment of vehicle examination centres on behalf of Autocheck in Port Louis from 2012 to 2017. Project included technical
Industry challenges One of the biggest challenges in the industry in South Africa is corruption, or the manipulation of test results. However, new controls implemented recently is set to improve the situation. Test stations are now obliged to generate printed brake reports, take a photograph of the vehicle at the test station, and immediately print out the visual image to be stored as part of the test record.
Ricardo Armino, AVTS Examiner of the Year for 2017 with Ferose Oaten and Chief Examiner, Rodney Coetzee
• • •
consultancy on pit design and traffic flow, equipment procurement, recruitment, screening and training of 39 examiners, implementation of a quality management system, design and installation of a software solution (with Jet Computers), and commissioning and configuration of equipment, processes and systems. In 2010, TÜV SÜD acquired a 26% share in AVTS, bringing international expertise and global exposure; Passed the 1 million test mark in April 2012 Pioneered many industry processes Membership of CITA and Presidency for Africa CITA (International Vehicle Inspection Committee), based in Brussels • CITA is an industry body consisting of government authorities, inspectorates,
test station operators and equipment providers. It has consultative status to the UNECE, and is a member of WP 29, the Working Group for the Harmonisation of Vehicle Standards. CITA has provided a platform to share knowledge and has commissioned several studies on the value of vehicle inspection controls and periodic testing. They have shared numerous examples in the world, where a regular testing regime, together with a holistic approach to road safety, has made a major difference in road deaths. Ferose says, “In South Africa, according to the RTMC, more than 14 000 people died on our roads in 2016; and if we implemented the already legislated provisions for more regular testing, more than 1000 lives could be saved.”
This should cut down on the ‘stay away / paper’ tests, where certificates are issued for vehicles that are not presented at the test station, but miraculously pass the test and are certified roadworthy. It is unfortunate that a small percentage of operators who break the law tarnish the image of the entire industry. Involvement with the RMI An integral part of the history of AVTS has been its association with the RMI over the past 20 years. AVTS values its membership of the RMI, and Ferose Oaten has served in various structures over the years. She is currently the National Chairperson of the RMI-VTA (vehicle testing association), and has served as the Chairperson of the Western Cape Region for the last six years. In 2006, after serving on the Board of the RMI, under then President Brand Pretorius, Ferose Oaten was elected President, and became the first woman and person of colour to occupy this position. Ferose served as President of the RMI for six years. In 2008, the RMI celebrated its Centenary, and the RMI and its sponsors travelled to all the major cities for the Gala Dinners. SO WHAT HAS WORKED FOR AVTS? So, what has worked for AVTS to make it endure for 25 years, that can be applied to other young businesses out there? Ferose Oaten, acknowledges that there are no shortcuts, only lots of hard work. Here she shares ten of AVTS’s basic imperatives, which she recently presented to Cape Chamber members:1. Being consistent in getting the basics right, and not compromising on quality or integrity, and never
FEBRUARY 2018 -
tolerating or condoning any lack of governance or transgressions. AVTS made employee engagement a strategic priority: • Staff development is critical, • Creating an environment where each staff member feels ownership of AVTS and is empowered to be a brand ambassador of the company, and lastly, • a good employee recognition system focused on the positives, awards evenings and performance reviews Membership of industry bodies, like the RMI and Chambers of Commerce have been very important, enabling appropriate representation to influence events and legislation, and networking to build contacts. In the current economic environment, watching the cashflow every day, and managing costs efficiently rather than only cutting costs. New projects or initiatives: Proper research and feasibility and being realistic with projections. Relationships with customers and stake-holders: Creating positive customer interactions and recognising the importance of building relationships, in and outside of the industry. Staying relevant: Keeping up to date on trends in the industry; acknowledging that the customer base has changed to a digitally savvy constituency who are using social media and new methods of communication and engagement, and adjusting the business strategy appropriately. ISO 9001 Certification has worked for AVTS in that it has become a standardised operating recipe book for all branches, keeping everyone on track, and continuously improving their systems and processes. Competitor analysis: Know your competitors, and recognise that the business has to have a USP - a unique selling proposition that differentiates it from its competitors.
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10. Continuous learning: Lastly, being humble and acknowledging that as a business owner, you sometimes don’t know what you don’t know. AVTS has a fantastic management team and a very capable and experienced employee base, without whom AVTS would never have achieved this 25-year milestone. Free Safety Campaigns AVTS pioneered the idea of the free safety campaigns in the 1990’s and now continues to join all RMI participating stations to ensure that vehicles are checked out before they embark on a long journey at Easter and the Festive season. In this picture taken in 2015, MEC Donald Grant launches the RMI Free Safety Campaign at AVTS Culemborg, and is seen here with Joy Oldale and Examiner Eugene Thomas.
Minister Donald Grant (centre) with Joy Oldale (right) from RMI and Eugene Thomas a testing officer from the facility
How did AVTS celebrate 25 years? 1. Leading up to the anniversary, the 25 longest-serving employees planted 25 trees. 2. Entered 25 teams in the Community Chest Twilight Run through the streets of Cape Town. 3. Celebrated with an open day at all branches on 12 December
Ferose Oaten congratulating Nazli Samodien and Shamiel Jacobs for 25 years of service
4. Gala Dinner at Kelvin Grove on 15 December, paying tribute to AVTS employees, partners and stake-holders who helped to successfully reach this significant milestone. In this spirit, some of their top achievers were awarded at the event. 5. At the glittering occasion, Ricardo Armino (AVTS Table View) was named the AVTS Examiner of the Year for 2017. 25-year Long-service awards were presented to Nazli Samodien, Shamiel Jacobs and September Pypers. A 20-year award was given to Riad Johaadien, and a 15-year award to Oliver Mtati. Other long-service awards were presented to Faadia Solomon, Noor Samodien, Colleen Cookson, Zane Rust, Rodney Coetzee, Amelia Mwanda, Salmon Muller, Brandon Oliver, Eugene Thomas, Ruwayda Maged, Brigette Rich, John Daniels and Ridwaan Jacobs, who all have in excess of 15 years’ service. 10-year awards were presented to Samantha Smith, Andile Mlomzale, Mogammat Louw and Phila May. 6. Stations that took top honours were AVTS Culemborg, AVTS Table View, AVTS Bellville and the Head Office Admin Team. 7. Each guest was presented with the AVTS Legacy Book, which contains the history of the company, and a picture story of each person currently employed at AVTS.
DECEMBER/JANUARY 2018 -
88 apprentices get a chance to upskill in motor industry
year ago, the Motor Industry Workshop Association (MIWA) entered into discussions with Bidvest McCarthy regarding training needs and possible solutions for the independent aftermarket. To date, 31 companies and 88 apprentices have applied for funding through this initiative with the aim to address the artisan skills shortage in our country. “This is a brilliant step forward for us as an industry,” says Pieter Niemand, Director of MIWA, a constituent association of the Retail Motor Industry Organisation (RMI). He explains that a project plan was mapped out and agreed on in April that year. “We believe we have to mobilise the aftermarket sector of the motor industry to start with formal apprentice training. As it takes four years to train an apprentice until they qualify, the sooner we start with the formal training process, the sooner the aftermarket sector will start to contribute to addressing the skills shortage in SA.” For many years the industry depended on the larger dealer bodies to train and qualify artisans, but this has proved to no longer be sustainable. Fewer people are entering the industry, and at the top end qualified artisans are recruited by companies abroad. “If we really want to be successful in addressing the skills deficit in SA, all stakeholders in the industry need to participate and create opportunities for youngsters who are passionate about the industry and
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need to be trained formally,” says Ilze Botha, Group Training Manager, Bidvest McCarthy. Niemand says currently there are many people who have worked in the industry for many years who have not had the opportunity to get their formal trade certificate. “We are looking at a culture change in the industry where formal training becomes the norm. This will improve the industry’s credibility, and promote that being a qualified artisan is a professional career which in turn will assist in attracting youngsters to the industry.” The project plan roll-out started with presentations to workshop owners around the country from May to September. Those who attended were informed about the benefits of apprentice training and the funding opportunities available through merSETA (in the form of Discretionary grants) and SARS (through learnership tax rebates). “Further to just being a national training provider and a trade test centre, we offer as an additional benefit, assistance with administration, workplace approval and funding opportunities available through merSETA,” explains Botha. At the beginning of October those workshop representatives who attended were then asked to indicate their interest in the project. “We received just over 100 companies indicating their interest. A hugely positive response,” says Niemand.
Communication followed outlining the documentation required to participate in the project and the process to be followed. Botha says it became apparent that many of the companies needed guidance in the following four areas: • being informed of how apprenticeships work, • what is expected and required from them, • understanding the funding and tax models, and • assistance with current employees who have been in the trade for many years and require formal qualifications. “We provided assistance to the companies, and to date have 31 companies who have submitted the initial funding request documents and are now formally part of the project. We have 88 apprentices that have applied for funding split into 67 from the motor trade, 13 from the diesel trade, and seven automotive electricians,” says Botha. Split by region there are 33 in Gauteng, 23 in KwaZulu-Natal and 32 in the Western Cape. “We need to bear in mind that these numbers will change as funding will be either approved or declined, workplace approvals will be approved or declined, and so on.” The total value of the project in respect of discretionary grant funding is approximately R13 million. Once the project implementation is finalised and the training can commence, the next phase of the project will kick off. Botha says this will include revisiting the other ±70 companies who indicated their interest but who have not continued with the process. Niemand believes that although over 100 responses received is a great start, there is still a lot of work to be done. “I want to encourage all workshops in the sector to consider the formal training of apprentices. We have to start making a difference in our industry, and this is a great way to do it,” he concludes.
2018 merSETA Road Show schedule
or the last 17 years the merSETA has shown itself to have become the leading Seta, but this could not have been done without the support of its stakeholder and partners. February to April is again the time for the merSETA funding window during which time companies, Stakeholder, Departmental divisions, Organized Labour, CBO’s, NBO’s, Co-ops, Faith Based
Organizations etc, get the opportunity to apply for grants from MerSETA. Establishments that have in the past applied for funding must make every effort to attend as application will no longer be made on the old Seta Management System. The Manufacturing, Engineering and Related Services SETA (merSETA) values
your participation and continuous support in making a contribution to the development of skills within our Country. merSETA hereby invites you to a Skills Development road show to capacitate you on the next cycle of mandatory and discretionary grant funding windows including training on the newly developed NSDMS (National Skills Development Management System). All SDFs will be required to reregister on the NSDMS system prior to being granted access to the grant application. The workshop will focus on: • Mandatory Grant Window • Discretionary Grants – PIVOTAL and non PIVOTAL window • Changes to the Grant Policy • New National Skills Development Management System The schedule below outlines the areas and dates of each of the road shows and training sessions across the country. Venue details will be advertised on the merSETA website and will be forwarded to you once venues are secured. You are required to RSVP in order to secure space.
The contacts at the MerSETA Regional offices are listed below for your convenience. Eastern Cape: Zwele Ngayeka-Regional Manager firstname.lastname@example.org 082 786 8112 Marie Rudman email@example.com 079 890 7617 Western Cape: Bronwin Abrahams-Regional Manager firstname.lastname@example.org 082 419 1266 Charlene Gillies email@example.com 079 502 3894 Gauteng South: Winston Adams-Regional Manager firstname.lastname@example.org 082 825 2759 Elizabeth Malebo email@example.com 082 925 2282 Gauteng North/North: West Harry Geldenhuys-Regional Manager firstname.lastname@example.org 0829787575 Zodwa Mothobi email@example.com 0823393524 Kwa-Zulu Natal: Musa Mtshali-Regional Manager firstname.lastname@example.org 082 452 9388 Yogi Pillay email@example.com 082 450 9351 Mpumalanga/Limpopo: Semodi Monareng-Regional Manager firstname.lastname@example.org 079 502 3886 Andile Mbentse email@example.com 082 331 2985 Free State/Northern Cape: Gerhardt Slabbert-Regional Manager firstname.lastname@example.org 082 786 8096 / 0861 637 733
FEBRUARY 2018 -
Preparing for Industry 4.0 2018 will pose new challenges around Industry 4.0 says Dr Raymond Patel, CEO of merSETA
s we enter the New Year, we need to brace for rapid changes around the new technology-driven economy. While the manufacturing world is moving towards this new paradigm, the vocational and skills development training sector is lagging behind. What, then, needs to be done in the face of this burgeoning uncertainty? And how is the merSETA preparing for Industry 4.0? What is the paradigm shift that will be needed to deal with the shift in societal relations? These are the key questions that arose at a recent international conference at which the merSETA was a key participant.
Pointers for the future are that: It’s about caring for people we render services to • There will be labour market transitions which will demand training and retraining. This will lead to more rapid occupational mobility between different sectors of the economy; • Skills mismatches between labour demand and supply will become a thing of the past, as the demand for specialised knowledge grows at faster paces; • The concept of Just-in-Time will soon be a reality; • 3-D printing will have major societal impacts – for example, a rural hospital may be supplied a 3-D printed body part, such as a hip-bone replacement part, via a drone, with both the printer and drone owned by a local manufacturer; • Fresh financial instruments will have to be developed or created to enable small, specialised manufacturing sectors to take advantage of these oportunities • Logistical and associated challenges will cease to be major problems; • The TVET landscape will change
WEwhat BUILD THE PEOPLE THAT BUILD THE dramatically with industry demand for post-school E&T institutions merSETA facilitates the training of artisans. This includes: being the arbiter of the curricula and should do, in particular TVET colleges; the knowledge level of student/labour • Provide a mechanism will give • Paying mandatory and that discretionary grants to large, medium and companiesyouth to train learners; output; unemployed access to informal • Registering assessors and moderators against set criteria, to ens provision of training meets the required national standard; • The concept of just the right amount apprenticeships; • Identifying priority skills needs within the Manufacturing and Engin of education in the current curricula • Engage non-training SME workplaces; Related Services Sector; • Accrediting training providers tosystem ensure that the quality of institutio of TVETs will cease as a practice, as • Lift the Skills Development out simulated training provision is delivered; • Undertaking workplace approval at companies to ensure that the curricula will have to be rapidly adapted of its infrastructure constraints; practical training required is provided to the learner in order to ach to meet the demand for specialised • Link career guidance directly to easily qualification; • Monitoring of workplace based training is carried out; and knowledge; accessible learning pathways; • Implementing projects that assists to close the skills gap. • Industry will subsidise those institutions • Support, measure and track that are able to keep abreast of apprentices’ progress; and Industry 4.0 to the detriment of lagging • Apply ICT enablement for occupational institutions. This would need policy learning. interventions in South Africa. These are processes that we believe will So, to answer the question with regard to bring industry, particularly the SME sector, the merSETA charting the way forward, up to speed to confront the challenges of the organisation is set to conduct future manufacturing. extensive research to determine future WE SERVE: WE BELONG: skills and training. It’s about working together It’s about going beyond the call of duty
LEADERS IN CLOSING THE SKILLS GAP
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This includes: • New products, new manufacturing processes/changing manufacturing processes, new technologies, and the impact of these on occupations and skills; • New government policies, new government funding, new private investment, the emerging sector, mainstreaming the traditional township economy and the impact of these on new jobs; • Recent new occupations/emerging occupations as well as new occupations in the longer term; • Best practice approaches to education, training and skills development; • A critique as to whether the current strategy accounts for emerging trends as well as national government priorities; • Recommendations for skills development strategy to be put in place, including providing direction
It’s about caring for people we render services to
It’s about working together with colleagues
LEADERS IN CLOSING THE SKILL
RMA- leading the way RMA-leading leadingthe theway way RMARMAleading the way in occupational injuries RMAleading theinjuries way occupational injuries ininoccupational inoccupational occupational injuries and diseases through our inand injuries anddiseases diseasesthrough throughour our and diseases through our family-centric approach. and diseases through our family-centric approach. family-centric approach. family-centricapproach. approach. family-centric For over 120 years we have made sure that workers who get For over 120 have made sure that workers who get For over 120 years wewe have made sure that workers who get injured while atyears work in the mining industry receive benefits For over 120 years weinhave made sure that workers who get injured while work in the mining industry receive benefits injured while atat work the mining industry receive benefits including medical costs, disabilities, family allowances and For over 120 years we have made sure that workers who get injured while atpensions work in the mining receive benefits including medical costs, disabilities, family allowances and including medical costs, disabilities, allowances and child extension in the caseindustry offamily death. We have since injured while at work in the mining industry receive benefits including medical costs, disabilities, family allowances and child extension pensions in the case of death. We have since child extension pensions in the case of death. We have since March 2015 been allocated the iron, steel, metal and related including medical costs, disabilities, family allowances and child extension pensions in the the case ofsteel, death. We have since March 2015 been allocated the iron, metal and related March 2015 allocated iron, steel, and related industries tobeen administer by the Minister ofmetal Labour. child extension pensions in the case of death. We have since March 2015 been allocated the iron, steel, metal andper related industries to administer the Minister of Labour. industries toare administer byby the Minister Labour. Our claims processed speedily andofefficiently our March 2015 been allocated the iron, steel, metal and related industries to administer byspeedily the Minister of Labour. Our claims are processed speedily and efficiently per our Our claims are processed and efficiently per our tagline of “Caring, Compassionate, Compensation” as well as industries to administer by the Minister of Labour. Our claims arebehind processed speedily and efficiently per our tagline “Caring, Compassionate, Compensation” as well tagline ofof “Caring, Compassionate, well asas our belief that each claim is Compensation” a family waiting as for relief. Our claims are processed speedily and efficiently per our tagline ofmade “Caring, Compassionate, asfor well as our belief that behind each claim a family waiting relief. our belief that behind each claim is is aCompensation” family waiting relief. This has us the leading administrator in the for business. tagline of “Caring, Compassionate, Compensation” as well as our belief that behind each claim is a family waiting for relief. This has made us the leading administrator in the business. This has made us the leading administrator in the business. pensioners to ensure they receive the best care possible. We We administer in accordance with the Compensation for our belief that behind each claim is a family waiting for relief. pensioners toensure ensurethey they receive thebest bestcare carepossible. possible. We receive This has madeInjuries us the leading administrator in the business. Weadminister administer accordance with the Compensation We in in accordance with the Compensation forfor pensioners also providetocontinuous education tothe our pensioners who areWe on Occupational and Diseases Act (COIDA)130 of 1993. This has made us the leading administrator in the business. pensioners to ensure they receive best care possible. We also provide continuous education to our pensioners who are provide continuous education tothe our pensioners who are on We administer in accordance withAct the Compensation for also Occupational Injuries and Diseases Act (COIDA)130 1993. Occupational Injuries and Diseases (COIDA)130 ofof 1993. preventative health conditions to help reduce the occurrence ofon pensioners to ensure they receive the best care possible. We We administer in accordance with the Compensation for also provide continuous education to our pensioners who areour on preventative healthconditions conditions tohelp help reduce theoccurrence occurrence health to reduce the ofof Occupational Injuries secondary complications.These innovations further underline CONTINUOUS CARE and Diseases Act (COIDA)130 of 1993. preventative also provide continuous education to our pensioners who are on Occupational Injuries and Diseases Act (COIDA)130 of 1993. preventative health conditions to help reduce the occurrence secondary complications.These innovations further underline our secondary complications.These innovations further underline our CONTINUOUS CARE CONTINUOUS CARE passion for caring for the lives of our claimants and their families. of Our service to those injured extend beyond the payment to preventative health conditions to help reduce the occurrence of secondary complications.These innovations further underline our passion for caring for the lives of our claimants and their families. passion for caring for the lives of our claimants and their families. CONTINUOUS CARE Our service to those injured extend beyond the payment to Our service to those injured extend beyond the payment to where we allocate case managers in line with our Pensioner secondary complications.These innovations further underline our CONTINUOUS CARE passion for caring for the lives of our claimants and their families. Our service to those injured extend beyond the payment to where allocate case managers line with our Pensioner where wewe allocate case managers in in line with our Pensioner ADDITIONAL INSURANCE PRODUCTS Medical Plan. The case managers visit those severely passion for caring for the lives of our claimants and their families. Our service to those injured extend beyond the payment to ADDITIONAL INSURANCE PRODUCTS INSURANCE PRODUCTS where wePlan. case managers in with our Pensioner Medical Plan. The case managers visit those severely ADDITIONAL Medical The case managers visit those severely Our passion gives us insight into further needs that our clients, the affected toallocate check on the standard ofline care and other needs. where we allocate case managers in line with our Pensioner ADDITIONAL INSURANCE PRODUCTS Our passion gives insight into further needs that our clients, the Our passion gives usus insight into further needs that our clients, the Medical Plan. The case managers visit those severely affected to check the standard care and other needs. affected check onon the standard ofof care and other needs. employers, may have. By working with them, we now can offer a We haveto also developed innovative interventions such ADDITIONAL INSURANCE PRODUCTS Medical Plan. The case managers visit those severely Our passion gives us insight intouniquely further needs that our clients, the employers, may have. By working with them, we now can offer employers, may have. By working with them, we now can offer a a affected to check on the standard of care and other needs. havealso also developed innovative interventions such range of value-added solutions We developed innovative interventions tailored and suitable for asWe a have mobile clinic to help us reach rural areas acrosssuch the Our passion gives us insight into further needs that our clients, the affected to check on the standard of care and other needs. employers, may have. By working with them, we(top now can offer a range value-added solutions uniquely tailored and suitable for ofof value-added solutions uniquely tailored and suitable for We have also developed interventions as mobile clinic help us reach rural areas across the range as a a mobile clinic toto help usinnovative reach areas across the their needs. These include Augmentation Policy up cover of country and outside to provide the rural required level of such care employers, may have. By working with them, we now can offer a We have also developed innovative interventions such range of value-added solutions uniquely tailored and suitable for their needs. These include Augmentation Policy (top up cover of their needs. These include Augmentation Policy (top up cover of as a mobile clinic to help us reach rural areas across the country and outside to provide the required level of care country and outside to provide the required level of care the COID policy), Group Personal Accident Cover with a difference, to those who cannot access it, in the process also changing range of value-added solutions uniquely tailored and suitable for as a mobile clinic to help us reach rural areas across the their needs. These include Augmentation Policy (top cover of the COID policy), Group Personal Accident Cover a difference, COID policy), Group Personal Accident with aup difference, country and outside toaccess provide the required level of care the to those who cannot the process also changing to those who cannot access it,it, in in the process changing Commuting Journeys Policy, Funeral Policy Cover etc. For awith quote suitable prosthetics and treatment where needed. Ouralso Care Facility their needs. These include Augmentation Policy (top up cover of country and outside to provide the required level of care the COID policy), Personal Cover with a difference, Commuting Journeys Policy, Funeral Policy etc. For a quote suitable Journeys Policy, Funeral Policy etc. For a quote suitable toprosthetics those who cannot access in needed. the process also changing and treatment where needed. Our Care Facility Commuting prosthetics and treatment where Our Care Facility to your needs visitGroup our website at Accident www.randmutual.co.za or email injured pensioners offers long term treatment toit, our seriously the COID policy), Group Personal Accident Cover with a difference, to to those who cannot access it, in the process also changing ensurelong they receive the best care possible. We also provide continuous education Commuting Journeys Policy, Funeral Policy etc. For a quoteor suitable to your needs visit our website www.randmutual.co.za or email to your needs visit our website atatwww.randmutual.co.za email prosthetics and where needed. Our Care Facility injured pensioners injured pensioners offers long term treatment to our seriously offers term treatment to our seriously email@example.com to ensure our pensioners who are on preventative health conditions to help reduce the Commuting Journeys Policy, Funeral Policy etc. For a quote suitable prosthetics and treatment where needed. Our Care Facility to ensure they receive the best care possible. We also provide continuous education to they receive the best care possible. We also provide continuous education firstname.lastname@example.org your needs visit our website at www.randmutual.co.za or email injured pensioners email@example.com offers long term treatment to our seriously our pensioners who are preventative conditions help reduce to our pensioners who arebest on on preventative health conditions to to help reduce thethe to your needs visit our website at www.randmutual.co.za or email injured pensioners offers long term treatment topossible. our seriously to to ensure they receive the care Wehealth also provide continuous education firstname.lastname@example.org to ensure receive the best possible. We also provide continuous education to ourthey pensioners who arecare on preventative health conditions to help reduce the email@example.com to our pensioners who are on preventative health conditions to help reduce the
CARING CARING CARING CARING CARING
COMPASSIONATE COMPENSATION COMPASSIONATE COMPENSATION COMPENSATION COMPASSIONATE COMPASSIONATE COMPENSATION COMPASSIONATE COMPENSATION
www.randmutual.co.za | 0860 222 132 www.randmutual.co.za 0860 222 132 www.randmutual.co.za | |0860 222 132 FEBRUARY 2018 - 39 email: firstname.lastname@example.org www.randmutual.co.za | 0860 222 132 email: email@example.com email: firstname.lastname@example.org www.randmutual.co.za | 0860 222 132
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How to test your business idea Identifying a feasible business idea is a critical step that is often overlooked says Pieter Scholtz
iven the choice between starting a business built around a new whiz-bang widget and starting a shoe store, I would go with the shoe store every time. This is mainly because so many would-be entrepreneurs have not done their homework and base their business on what they think people should buy, rather than what people really want or actually do buy. Testing the market thoroughly could mean the difference between a good and a great business, success or failure.
these questions can be answered with a few hours of online research or from the industry associations. Another good tactic is to go to a trade show or exhibition and look at your prospects as well as your competition. What does your potential customer really want? Who are they? What is your competition selling and at what price? Can you deliver the same at a lower price or can you add value and charge a premium? Is the sales cycle long or short? Is the exhibitors' list growing or declining from year to year?
Here's another way to look at it, giving a simple example. People buy shoes every day and it’s not that difficult to put a Answers to these types of questions will number on the size of the shoe market. give you a big advantage in getting a handle Additionally, because our global population on the opportunities within a marketplace, grows every day, I can be quite sure the and if your initial assumptions about your market for potential shoe owners will product or service really hold true. continue to grow, and people will buy multiple pairs of shoes in the years ahead. 2. Identify your customer. Develop a list of However, most inexperienced business questions to profile the ‘perfect customer’ people would opt for the whiz-bang for the product or service you are trying to widget business. They become enamoured sell. Include questions such as: Is the target with a potential market they can't quite male or female? How old are they? Are they measure or identify. They think everyone married? What was their main motivation in needs it and will want to buy it. They spend purchasing a particular product or service? a fortune and land up with a warehouse of This knowledge will give you additional stock they can't even give away. insight into how your own sales process should be structured. It will also help you How can you avoid this trap in your own operationally tailor your product or service start-up? offering to better fit your audience. Here are four simple and inexpensive action steps you can take before you get into business to make sure there is a viable, sustainable, and growing market for your proposed product or service. 1. Identify your market. How big in terms of rands is the current market for your product or service? Is it a new or a mature market? Are you in a new or mature category? A lot of
For example, if you are looking at a dry cleaning business, you may discover there is a want or need for a higher-end delivery service to professionals in your area. Given that, you might be able to re-orient your distribution and delivery systems to meet an unmet demand. 3. Test and measure demand. Big companies spend lots of resources testing ad campaigns
and hiring focus groups. However, you can do a lot more effective research on your own by simply starting small then testing and measuring everything you do. If you perceive testing and measuring to be expensive for little or no return, just imagine spending 10 to 100 times that amount without generating any sales or revenue simply because you didn’t measure the desirability upfront. 4. Start a list of contacts. At this point in your start-up and planning phase, you may have a list of vendors, suppliers, or even potential customers. If so, great. Keep building that list and start to develop a communication strategy to keep in contact with that list on a consistent basis. Today's contacts may be tomorrow's customers. More importantly, they have access to entire networks of people who may want or need your product or service. The real goal of networking is not making a sale to your direct contact, it's about creating a relationship with that contact that leads to referrals, and word-of-mouth leads down the road. Whatever you do and however you keep track of your list, make sure you protect it and treat it like gold. For most businesses, your contacts database often becomes the most valuable asset you own. In the end, there is no fail-safe formula for business success, although people are always trying to find one. The best indicator is a proven market with room for growth, populated by people willing and able to pay for something unique or different that helps them make their lives better, easier or happier in some way. It's the business that does the usual in an unusual, unique or different way that wins customers and keeps them coming back for more.
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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Bosch technologies are used worldwide in almost all vehicles, assuring their mobility, is what we are focused on. We continue to work on our unique combination of solutions for spare parts, diagnostic devices, workshop equipment and services. www.bosch.co.za
What drives you, drives us www.automobil.co.za
DECEMBER/JANUARY 2018 -
The invention of the internal combustion engine Jake Venter takes a closer look at the 20 years that followed the invention of the internal combustion engine He struggled on his own for while, but then in 1864 he met the engineer Eugen Langen. The two started a company called N A Otto und Cie to manufacture improved versions of the Lenoir engine. Later they designed a totally different engine that they were able to sell as an Otto und Langen engine.
Joseph Étienne Lenoir
Nikolaus August Otto
n the last 200 years, many people have claimed to invent an internal combustion engine, but it’s now accepted that the pioneering work was done by Lenoir, Otto, Benz, Daimler and Maybach. This article will tell the story of the first engines and the first car. It is the story of Lenoir, Otto and Benz. LENOIR The Belgian-born Frenchman Jean Joseph Étienne Lenoir (1822 – 1900) produced the first practical internal combustion engine in 1859 by converting a steam engine to run on a mixture of coal gas and air. Over 400 of these double-acting two-stroke
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singles were built, but they were very inefficient because the intake mixture was not compressed before ignition. OTTO The Otto, or four-stroke cycle engine, was invented by Nikolaus August Otto (1832 – 1891). He travelled all over Germany as a food salesman, and one day was so fascinated by seeing a Lenoir engine pumping water that he could think of nothing else but engines. He learnt all he could about the Lenoir and became obsessed with the idea of building a better engine.
It was a free-piston design that utilised a very long single vertical cylinder containing an upside-down piston attached to a toothed rack. When the piston is at the bottom of the cylinder a gaseous fuel mixture is fed into the space underneath the piston. When this is ignited by a spark the explosion drives the piston upward, but the movement is stopped at the top of the stroke by a rubberised metal buffer. One-way valves near the top of the cylinder allows the gases to escape, and the upwards movement cools the residue underneath the piston so that the latter falls down again to the bottom. A ratchet clutch allow a free upwards movement, but the downwards movement of the heavy piston drives a flywheel via the motion of the rack against a pinion. This engine used less than half the amount of fuel to produce the same output as a Lenoir engine.
This crude contraption was very noisy and could only operate very slowly. On the upward stroke the bang from an explosion is followed by the clang of a heavy piston crashing against the buffer, while the rack makes a rattling sound against the flywheel gear. On the downward stroke there is a whining sound followed by some seconds of complete silence. It frightened many onlookers, but was good enough to win the Grand Prize at the 1867 Paris World exhibition due to the favourable fuel consumption. During the next five years the company sold an average of one engine every day, and in 1871 they reorganised the company to get more capital and staff. At the beginning of 1872 they changed the company to a joint stock corporation under the name Gasmotoren-Fabrik Deutz and also appointed an experienced engineer by the name of Gottlieb Daimler as factory manager. He brought his righthand man Wilhelm Maybach into the fold as chief designer. The pair, who later started what is now the Mercedes-Benz empire, changed what was a handcraft operation into an organised manufacturing process. They also helped Otto to design a far more modern engine that became known as the Otto Silent engine. This was a completely new design, using a normal crankshaft and crosshead just like a steam engine. Otto added two more strokes in order to get a cooler operating cycle, and created the first four-stroke engine. He took out over
25 patents, including one for the four-stroke principle, but it was later discovered that an earlier patent filed by the French engineer Alphonse Beau de Rochas described the four-stroke process. His four-stroke patent was revoked after two years in spite of the fact that the Frenchman never built such an engine. To this day the four-stroke cycle is called the Beau de Rochas cycle in France. Ottoâ€™s company sold 50 000 four-stroke engines in the first 17 years since their introduction. At present the company is called Deutz AG. They manufacture engines that range in power output from 4 to 600 kW in air, oil or watercooled form. A memorial honouring Otto stands in the forecourt of the neobaroque Deutz train station in Cologne.
BENZ Karl Benz (1844 â€“1929) built the first successful light-fuel-engined car. In 1925, four years before he died, he took part in a procession of old cars through the streets of Munich and was asked if he felt moved when he saw all those cars. He replied that the feeling of having achieved something left him a long time ago. He was happiest in the early days when there were many technical problems to solve. The business of inventing is more exciting than knowing that you have invented. He was also inspired after seeing a Lenoir engine, and assisted in managing it during his student days in Stuttgart. After graduation as a mechanical engineer he married Bertha Ringer. She inherited some money and became his business partner. They were able to mess around with all
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TECH TALK sorts of small engineering projects, and during the winter of 1878 he found time to build a small two-stroke gas engine but he could not get it to run for more than a few seconds. The ignition system was not reliable, and he nearly lost heart, but Bertha urged him on. By New-Year’s Eve of 1880 he had made some modifications, and when he started it the engine ran satisfactorily for two hours until he stopped it. His first big break came in the winter of 1883 when two businessmen, Max Rose and Friedrich Esslinger, came to his rescue, and financed a new company to be called Benz und Cie to produce two-stroke gas engines, based in Mannheim. It took him just under two years from that date to produce what turned out to be the world’s first car. It was a three-wheeler with a horizontal four-stroke engine. On a clear spring day in 1885 the car was ready. Benz started it and drove in circles in the workshop grounds. That night they celebrated, but it took many months before the car was ready for an out-of-town trip. Soon, he was able to drive the car in the streets of Mannheim, but every time he took it out it caused such a sensation that he feared the police would intervene. He then started to go out at night, to avoid a disturbance, and took a passenger with him to help push the car back when something went wrong. After some months he was able to drive a complete circular route without any involuntary stops. Benz was allowed to drive on public roads provided the specification of the vehicle was the same as shown on the plans in the office at Mannheim, and provided he gave warning of his approach with a loud bell. Some people were scared by the car; others loved it. Some engineers said that this invention would ruin the stationary engine business. The librarian of the patent office said that the internal combustion engine had as little future as steam for motivating road vehicles.
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Two events occurred in 1888 that had a huge impact on people’s perceptions of the newfangled car. The first was the Gold Medal Benz won at the Munich Exhibition and second was the fact that Bertha drove the car on a successful round trip of just under 200 km. This happened because Benz had one of his frequent bouts of depression and felt that the car would never sell. Bertha disagreed, and surmised that the car needed some favourable publicity. So, one morning in August, at 5 a.m. she took their two boys, Eugen (15) and Richard (13½) with her and set off, leaving a note for her sleeping husband. She went to see her mother in Pforzheim, about 100 km from Mannheim. All three took turns driving. They had to stop at a chemist to get more Ligroin, a light hydrocarbon, sold as a cleaning fluid and used by early motorists until the emerging oil industry could supply petrol. They arrived in Pforzheim late the same evening, and sent a telegram to Benz as soon as they could. Benz und Cie made a name for itself by producing excellent twostroke gas engines, but their car engine was a more efficient fourstroke single. This became possible because Otto’s patent was revoked.
By the turn of the century, Benz und Cie was the largest producer of cars in the world, and they retained this position for a number of years. In 1903 the other directors of Benz und Cie lost patience with Karl’s conservative engineering, and appointed a French designer for the next models. Karl resigned from the daily management, but remained a director on the board until the merger with Mercedes in 1926, after which he served on the board of the new company until his death in 1929. A German themed route called the Bertha Benz Memorial Route was opened in 2008. It follows, as much as possible, the route taken by Bertha. The various places she stopped at are sign-posted, and it’s interesting to note that the chemist she stopped at to get fuel is still in the same building and trading under the same name. Bertha only died in May 1944. I’ve often wondered what it must feel like to have been the first person to drive car for any distance, but live long enough to experience modern motoring.
Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.
Investigation of Quantification of damages in the field of Insurance Law and how it affects your business A comparison of the value prior to the damage-causing event and the value subsequent thereto normally constitutes the maximum loss in financial terms. This measure applies irrespective of whether the loss is total or partial. 3. Calculating the extent of loss The burden normally rests upon the business (insured) to prove not only the occurrence but also the extent or the amount of its loss or damages.
1. Introduction Most businesses utilise vehicles in their daily operations. With motor vehicle collisions being so prevalent on South African roads, businesses will at some time be confronted with the process of submitting a claim to, or defending a claim by, an insurance company. The determination of the amount of damages when lodging or defending a claim can, at the best of times, be a mystifying process, and the question is often asked how an insurance company determines the monetary damages to a vehicle.
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This process is referred to as the quantification or assessment of loss. Quantification relates primarily to the value of assets or any other interest that may be the object of the insurance. 2. The principles of quantification The quantification or assessment of the monetary damages is rife with theoretical and practical difficulties. The aim of the quantification process is to determine the amount payable, to place the business in a financial position similar to what it occupied prior to the damage causing event.
The courts have taken the view that if loss or damages has to be proven by an entity, (who despite having put forward the best evidence at its disposal, is unable to prove the amount of its loss or damages with mathematical exactness) it is the duty of the courts to assist such entity, by assessing the loss on the available evidence, and to allocate an amount of damages which the court determines as being fair. Therefore, the insured does not necessarily have to prove with mathematical exactness the amount of its loss. Two of the most applied methods for calculating loss in the insurance field are the doctrines of “market value” and “cost of repair”. These two methods are briefly discussed below.
The insured bears the burden of proving that the cost, method of repair, as well as the reinstatement is reasonable, fair and necessary in the circumstances. Again, expert evidence will be required, but the courts will assist a party unable to prove the cost with mathematical precision, by making an estimate of such cost. 3.1. Market value as a primary measure for quantification for loss A business with a full interest in a vehicle (such as the bona fide possessor, or the entity that bears the risk of the vehicle’s destruction) is normally the entity affected by the damage-causing event. In order to make the required comparison between the values before and after the damage-causing event, the “true value” of the affected object must first be determined. The true value may be equated with the “real and actual” value of such an object.
motor vehicle is often determined by reference to its value in a schedule compiled by the motor trade industry. In this schedule, provisions are made for the trade and retail values as well as the market value of different types, makes and year model vehicles. Although the aforesaid schedule might often be used as a guideline, the actual market value of the object remains a factual question and varies in most cases. Should an insurance claim result in litigation, the market value of the vehicle may be, and mostly are, proven by leading expert evidence.
3.2. Cost of repair as an alternative measure for quantification of loss An alternative method of proving the diminution in the value of the damaged property is to lead evidence of the necessary and reasonable cost of repairing, restoring and reinstating the damaged property to its previous The word “value” in the concept of condition. The courts have accepted market value is commonly understood this method of proving damages, to mean the amount an article will (even though the costs may exceed fetch or be exchanged for in the the award in terms of the market market. Of particular interest in this value measure) provided that regard is that the value of an insured the repair cost is reasonable. A comparison will therefore have to be made between the real and actual value of the object before the damage-causing event and the value of the same object after the damage-causing event. In most cases the market value serves as a basis for calculating the real and actual value of the damaged object.
Once the cost of repair has been proved and there is no evidence that it exceeds the actual diminution in value or the pre-loss market value, a presumption arises that the cost of repair represents the diminishing value. However, the insured can rebut this presumption by providing the actual diminishing value. 4. Conclusion In evaluating your company assets, most companies would wish to determine the diminishing effect of a collision. There is, however, no hard and fast rule in determining the monetary damages, and therefore legal assistance should be sought. Article by Niel van der Merwe – Attorney at Barnard Inc. RMI4law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4law, kindly contact 0861 668 677. Legalex (Pty) Ltd, registration number 2003/003715/07, is an authorized Financial Services Provider (FSP 5277) and underwritten by Guardrisk Insurance Company Limited (FSP 26/10/75)
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Dismissal on First Offence
n circumstances where an employee made him-/herself guilty of misconduct, the adopted approach by South African Courts is one of corrective and progressive discipline, and does not aim to be punitive. It is an arduous task to reach and apply the correct and relevant disciplinary sanction. Dismissal of an employee remains a contentious issue. However, it is essential to comprehend that situations involving a serious form of misconduct of an employee, can lead to instant dismissal - even on a first offence. In this instance, dismissal shall be deemed entirely appropriate and necessary. In light of the abovementioned circumstances, corrective and progressive discipline will be superfluous and ill-suited, due to the fact that severe misconduct causes irreparable damage to the trust relationship between employer and employee. Without the existence of a trust relationship – which is fundamental to any employment relationship – the continuation of employment cannot be expected. Each
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workplace should have a Disciplinary Code intact, as the Code functions as a guide for employers when they are contemplating a suitable disciplinary sanction. It is crucial to differentiate between serious misconduct and less serious misconduct. The gravity of the misconduct will naturally determine the appropriate recourse and sanction to be imposed on the employee. Guidance as to what will constitute to serious misconduct can be found in the Labour Relations Act, Schedule 8: Dismissal. Examples of serious misconduct which would warrant dismissal on first offence, is enshrined in Schedule 8: Code of Good Practice: Dismissal – providing that, each matter is assessed and evaluated on its own merits -: 1. Gross dishonesty; 2. Willful damage to the property of the employer; 3. Willful endangering of the safety of others; 4. Physical assault on the employer, fellow employee, client or customer; and 5. Gross insubordination.
The above list is not exhaustive. The Courts have also included sexual harassment as a form of misconduct which is dismissible on first offence. In the matter of Cecil Nurse (Pty) Ltd v Busakwe NO and Others the Court held that the long-established rule that the presence of dishonesty ‘tilts the scales to an extent that even the strongest mitigating factors, such as long service
and clean record, against the sanction of dismissal in cases of dishonesty, must prevail’ is applied in both the Labour and Labour Appeal Court when dealing with the dishonest conduct of an employee. Schedule 8 specifically indicates that when an employee has been found guilty (after the conclusion of the hearing) the Employer needs to take cognisance of not only the severity of the misconduct but also the Employee’s personal circumstances when considering the penalty to impose. Examples of such circumstances may include the Employee’s length of service; previous disciplinary record and his/her personal surroundings. In addition, other relevant factors to be considered are the nature of the occupation and the conditions of the infringement itself. For the dismissal to be considered as fair, it is all about the balancing of the equilibrium between mitigating and aggravating actualities. Mitigating factors are those aspects that are in favour of the employee, as it will normally reduce the penalty that would have been imposed. On the opposite side of the spectrum, aggravating factors are those issues that will be detrimental to the employee, as it could lead to a harsh sanction to be imposed. John Grogan in his book, Dismissal 2014, sets out the ‘variety of considerations’ that may be relevant in the deliberation of a mitigation plea. These considerations are as follows: 1. Clean disciplinary record; 2. Long service, 3. Remorse by the employee; 4. The circumstances surrounding the offence; 5. Whether the employee confessed to the act/misconduct; 6. ‘or any other factors that might serve to reduce the moral culpability of the employee’. Grogan further states that if these considerations are taken individually
or collectively, they indicate that the employee will most likely not repeat the offence. There is no obligation on the employer to take the mitigating factors into account merely because he or she feels sympathy towards the employee. The mitigating factors must reasonably be weighed up against that of the aggravating factors.
dismissed. Their dismissal has little to do with society’s moral opprobrium of a minor theft; it has everything to do with the operational requirements of the employer’s enterprise.”
In the matter between Absa Bank v CCMA & Others, the employee was dismissed for serious misconduct. The Arbitrator in the matter opined that dismissal was a too rigorous sanction. He based his finding on the employee’s clean disciplinary record, her performance, length of service and the fact that there were no damages suffered by the Employer. The Court held that although length of service will normally be considered a mitigating factor, it is vital to note that there are certain forms of misconduct that are of a grave nature that no length of service will be able to save the employee from dismissal. For example, dishonesty as a form of misconduct will carry more weight than the employee’s length of service.
“It would in my view be difficult for an employer to re-employ an employee who has shown no remorse. Acknowledgement of wrong doing is the first step towards rehabilitation. In the absence of a recommitment to the employer’s workplace values, an employee cannot hope to re-establish the trust which he himself has broken.”
In De Beers Consolidated Mines (PTY) Ltd v CCMA it was also clear that a clean disciplinary record and the length of service of an employee will not always be of aid to the employee: “Long service is no more than material from which an inference can be drawn regarding the employee’s probable future reliability. Long service does not lessen the gravity of the misconduct or serve to avoid the appropriate sanction for it. A senior employee cannot, without fear of dismissal, steal more than a junior employee. The standards for everyone are the same. Long service is not as such mitigatory. Mitigation, as that term is understood in the criminal law, has no place in employment law. Dismissal is not an expression of moral outrage; much less is it an act of vengeance. It is, or should be, a sensible operational response to risk management in the particular enterprise. That is why supermarket shelf packers who steal small items are routinely
The Court in the abovementioned matter also addressed remorse and stressed the importance thereof:
The dismissal of an employee on a first offence is consequently not as simple to determine as it may sound. The various factors should be measured before the correct penalty can be imposed; proper consideration should also be given to the Code of Conduct within the workplace. Employers are not obliged to be sympathetic towards employees and henceforth impose a lesser sanction. The employee on the other hand will be submerged in despair, he or she would have to admit to wrongdoing and must show remorse – this behavior could be sufficiently mitigating. Alternatively, the employee could remain silent and/or deny the charges against him in optimism that the employer would fail to prove the case against him or her – and so be ‘saved by the bell’.
Douw Breed is a director at Barnard Incorporated Attorneys, Centurion
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The merSETA Joins the Racing Circuit The exciting world of motorsport provides an excellent platform for the promotion of Mechanical Engineering and Auto Mechanics as career options for young learners. It also creates a fantastic opportunity for the basis of a skills development programme for students who have already embarked on a career in these sectors.
w www.merseta.org.za WE CARE:
It’s about caring for people we render services to.
merSETA Social WE BELONG:
It’s about working together with colleagues.
@mersetasocial WE SERVE:
It’s about going beyond the call of duty.
LEADERS IN CLOSING T
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HEAD OFFICE merSETA House, 95 7th Avenue, Cnr Rustenburg Road Melville Johannesburg, 2092 Tel: 010 219 3000 Fax: 086 673 0017 EASTERN CAPE
The merSETA is one of 21 Sector Education and Training Authorities (SETAs) established to facilitate skills development in terms of the Skills Development Act of 1988 (as amended). The 21 SETAs broadly reﬂect different sectors of the South African economy. The merSETA encompasses Manufacturing, Engineering and Related Services. The various industry sectors are covered by ﬁve chambers within the merSETA, Metal and Engineering, Auto Manufacturing, Motor Retail and Components Manufacturing, New Tyre Manufacturing and Plastics Manufacturing.
14-20 Pickering Street Newton Park, Port Elizabeth, 6045 Tel: 0861 637 734 Fax: 041 363 0144 GAUTENG SOUTH merSETA House, 95 7th Avenue, Cnr Rustenburg Road Melville Johannesburg, 2092 Tel: 010 219 3000 Fax: 086 673 0017 GAUTENG NORTH & NORTH WEST Automotive Supplier Park, 30 Helium Road Rosslyn Ext. 2 Pretoria, 0200 Tel: 0861 637 731 Fax: 0866 700299 FREE STATE & NORTHERN CAPE 46 Second Avenue Westdene Bloemfontein, 9300 9b Roper Street Kimberley, 8301
TRAINING TODAY’S WORKERS FOR TOMORROW
Tel: 0861 637 733 Fax: 051 447 8873 KWAZULU-N ATAL 149 Essenwood, 149 Stephen Dlamini Road Musgrave Durban, 4001 Tel: 086 163 7736 Fax: 031 201 8732 LIMPOPO & MPUMALANGA 1st Floor, No.8 Corridor Crescent Route N4 Business Park Ben Fleur Ext 11, Witbank, 1040 Tel: 0861 637 735 Fax: 013 656 4629 WESTERN CAPE Ground Floor, Simeka House, Farm 2, Vineyards Ofﬁce Estate, 99 Jip de Jager Drive, De Bron, Durbanville, Cape Town, 7550
THE SKILLS GAP www.automobil.co.za
Tel: 0861 637 732 Fax: 021 914 8131 CAL L CENTRE Tel: 086 163 7732 email@example.com www.merseta.org.za
Transmission Control Plates for Global Automotive Applications
ong-distance highway trips, joyriding on country roads or stop-and-go in city traffic – for modern car transmissions to function reliably there’s a seemingly inconspicuous component which is actually of vital importance: the transmission control plate.
control plates? That’s just what Dana did. The company has decades of experience in cylinder-head gaskets and is now one of the leading suppliers of metal beaded flat gasket systems.
oils. With this degree of leaktightness, the transmission control plate increases the efficiency of the entire transmission and makes a major contribution to modern drive concepts with reduced consumption values and CO2 emissions.”
The starting shot: the establishment of a production facility in Neu-Ulm in 2015 A brief description of Dana Incorporated has optimised the In 2015, US automotive supplier Dana transmission control plates development, application-specific installed a new production plant in NeuModern automatic transmissions configuration and production of these Ulm. It specialises in the production of have to enable more and more transmission control plates. The gasket transmission control plates and meets shifting operations in shorter and specialist has now become so successful the strictest cleanroom requirements. shorter reaction times. This poses a with this product that the production The entire production and assembly is big challenge for the transmission’s capacities in Neu-Ulm, Germany have fully automated. Even quality control hydraulic system. At its core is a expanded to include Wuxi, China and is handled by a camera system, so that hydraulic shifter and an electronic planning for expansion into the USA is trained employees in special clothing transmission control unit comprised underway. only come into contact with the in a single mechatronics module. finished and packaged product during While the control unit continuously Be it for torque converter automatic preparation for shipping. The machines calculates the most efficient gear transmissions or continuously and lines are specifically designed for during the trip, the hydraulic variable transmissions (CVT): car movements in the micrometer range. shifter takes care of implementing manufacturers need transmission “The presses punch the transmission it. And where is the transmission control plates (separator plates) for flow Just seal it! for sealing off the hydraulicEXTREMELY control plates with maximumAT precision. control plate located? Directly in control and HIGH STABILITY HIGH TEMPERATURES. Particularly intended for ® Victor Reinz Technologies Cutting-edge production lines then the hydraulic module. It controls control unit atSealing the same time. The sealing all surfaces in engines, gearboxes, and axles, and also for cylinder liners and synthetic handle partial coating along the complex the flow of transmission oil through problem: solutions previously available Very suitable uneven and rough surfaces. seal contours with aforspecial elastomer the flowAll-purpose channels toapplication control thefor use with all on the market tend to leak, impairing housings. developed in-house,” explains Robert automatic transmission. At the same the transmission’s efficiency. Even tiny makes of engines and vehicles. Blersch, Senior Manager for Products time, it seals off the entire system particles of dirt can damage adjoining in Transition at Dana. “The result is a inside and out. components (such as valves), and thus reliable seal which can withstand even the entire system. Doesn’t it seem Agent in South Africa Intrade Motor aggressive transmission obvious that a Parts gasket specialist would T: 011-432-2667 put special effort into the development F: 011-432-3005 and construction of transmission E:mail: firstname.lastname@example.org
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Driven by CLIMATISATION
Excellence for professionals Bosch air conditioning service units for R-134a and R-1234yf www.bosch.co.za What drives you, drives us.
Tools for a new era Phil Stubbs has more than 25 years of automotive experience, and now runs CDK Global’s African operation, based in Johannesburg. He has given us an overview of the automotive sector and how CDK Global is adapting to changes in the market.
he automotive market is developing rapidly in Africa, presenting new opportunities all the time. South Africa, in particular, is a useful test bed for manufacturers, as it mirrors some consumer trends seen in Europe.
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The agency model is already in place with some brands. This is where a customer contracts directly with the manufacturer to supply a new vehicle, leaving vehicle trade-in and aftersales service with the dealer to manage. There are pros and cons to this for the dealer, although if managed well, this model can help to maintain the residual value of used cars. Retailing used cars effectively can boost profit margins and help to build a dealer’s reputation for good customer service.
It is vital that dealers can differentiate themselves with excellent customer service in the aftersales arena. For example, dealers could be negatively impacted by expected legislation on ‘the right to repair’ – giving independents (more than 8,000) the right to service without affecting warranties. In aftersales, great customer service is essential, so dealers should do everything within their power to enhance the customer experience. To achieve this, dealers need to focus on adopting the right tools and processes. This is where CDK Global can support, with wellestablished tools that are truly industry leading. To date, Africa has been slow to deploy high-speed Internet connectivity, but
today, we’re seeing the roll-out which will revolutionise the attitudes of people, deliver new ways of working, mitigating the problems of distance and helping to enable long-distance sales. Mobile is critical to solving this issue, as many African consumers have leap-frogged traditional communications and moved straight to mobile. With 95% of South African’s using their smartphone more than any other device (according to Mastercard’s Innovation Survey 2016), the high level of penetration offers huge opportunities. More importantly, 73% of those surveyed clearly indicated their willingness to make payments using their mobile phone. The buying habits of the millennial generation are very different from those of Generation X and the baby boomers. This has the potential to transform the way cars are bought in future. For all millennials, buying goods has to be easy - 93% cite convenience as their main buying criteria, with search engines (98%), independent review sites (93%) and word of mouth from peers and on social media (88%) the biggest influences on their carbuying choice, according to CDK Global’s research. Millennials are time-poor, so don’t want to test drive a number of cars. Instead, they prefer to take two test drives after meticulous research
beforehand. They believe the process could be streamlined, with 75% highlighting the need for speed and efficiency. As they become mainstream customers, millennials will expect nothing less than an easy, quick way to purchase on-line, knowing exactly what they want to buy. The video confirmation of appointments, delivery of images of your chosen car and follow-ups will grow engagement and loyalty across the ever-shortening sales cycle, which for this generation can last less than two weeks. It’s all heading towards distance retailing, and learning how to do this well with technology, is vital. Africa is a strategic region for CDK Global, and we are investing accordingly. We will be moving to new offices and recruiting the best people in the industry - and those that can grow in their roles - to complement the team we have in place. I’d like to see us enter new geographical markets in greater Africa, and partner with OEMs and their retailers inside South Africa and beyond.
third-party connection. Partnering is going to be increasing in importance in the industry in future. Finding the right DMS partner is a vital decision for any dealer, as they need to ensure that partner provides the right technology solutions over the lifetime of the relationship. We are working with a number of leading dealer groups across the continent – to begin implementations between now and July 2018. Today’s automotive industry is an exciting place to be, and at CDK we see ourselves as helping to shape the future. With presence in over 100 countries, we get early sight of trends in consumer, OEM and dealer attitudes and behaviour. In leading the African business, my role is to continue to build a team that takes global expertise and combine it with local knowledge to work with leading African dealers and OEMs to develop business plans to navigate the changes our industry will face today, tomorrow, and long into the future.
We are a growing business, and you’ll see us be more open with the arrival of application programming interfaces (APIs), allowing some third-party systems to connect into our products. This approach and ethos of openness gives dealers more choice - allowing them to decide if they want a different
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Johannesburg to host inaugural GarageXpo Africa in April 2018
he inaugural edition of GarageXpo Africa will be held from 10 – 12 April 2018 at Gallagher Convention Centre Hall 2, Johannesburg. The event is co-located with Tyrexpo Africa, the biggest event for the tyre industry that will play host to more than 3,000 visitors from Africa and the surrounding regions. GarageXpo Africa will feature a diverse range of automotive accessories, repair and maintenance products.
“GarageXpo is specially curated for the African aftermarket, where some of the largest and most authoritative players in the aftermarket ecosystem will convene and share insights and new technology. As part of the TyreXpo Series of events, GarageXpo will be held in Asia, India, and South Africa, each together on the same floor, where obvious synergies between the tyre and garage communities can be leveraged, creating even greater value for the entire automotive ecosystem,” said Ian Wu, Cluster Director (Healthcare & Automotive and Commodities Cluster of SingEx Exhibitions. Together with the exhibition component, participants of GarageXpo can also look forward to expertly curated conference and workshop sessions, covering topics such as digitalisation of the aftermarket business, developing web strategies and budget, and extracting the maximum value out of involvement in communities, to name a few.
Moving away from being merely an exhibition, GarageXpo will provide participants with first-hand insights on industry trends from thought leaders, unmatched networking opportunities, knowledge upgrade through workshops, and a dedicated business matching services. GarageXpo Africa is supported by one of South Africa’s most authoritative and market-leading industry associations SABOA (South African Bus Operators Association), a non-profit organisation that represents the interests of the public transport industry at government level as well as among its stakeholders. Register your visit before 15 February 2018 and stand a chance to win a night stay at Mercure Midrand Johannesburg Hotel. To register, simply visit www.garagexpoafrica. com. For more information, please contact Leah Jurado at +65 6403 2176 or email email@example.com.
Automobil April 2018 Training feature “Training Employees for the Future” High employee turnover has been a longstanding issue within the automotive retail industry and it shows no sign of slowing down. With consumer expectations continually evolving and new technologies constantly being implemented in the work space, it is now, more than ever, critical that automotive companies ensure that staff members constantly receive the best training possible to ensure that they remain competitive. The automotive industry is rapidly evolving in terms of technology in all departments - and it is crucial that Companies keep pace with this and ensure that employees receive constant training from manufacturing, parts & spares, dealership networks and show rooms and are abreast of developments. Training features are published in Automobil in April and November each year, focused on providing the readers and automotive business owners with insight into which programmes are available to automotive industry representatives.
58 DECEMBER/JANUARY 2018 www.automobil.co.za Contact Greg Surgeon on 083 449 6137 or E Mail firstname.lastname@example.org
Your One Stop Show For Automotive Accessories, Repair & Maintenance
Your One Stop Show For Automotive Accessories, Repair & Maintenance
10 â€“ 12 April 2018 Your One Stop Show
Gallagher Convention Centre, Hall 2, Johannesburg, South& Africa For Automotive Accessories, Repair Maintenance
Your One Stop Show For Automotive Accessories, Repair & Maintenance
Your One Stop Show For Automotive Accessories, Repair & Maintenance
Your One Stop Show For Automotive Accessories, Repair & Maintenance
For exhibition and sponsorship enquiries, contact Leah at email@example.com or +65 6403 2176
Answers by experts to questions received recently by the RMI Q: What is the criteria on receiving a rebate for hiring an apprentice? A: The SA Revenue Services (SARS) IT 180 form is the ‘Declaration by employer for the purpose of claiming a deduction for an allowance in respect of a learnership agreement or contract of apprenticeship’. The apprentice enters into a formal contract with the employer for purposes of training and the relevant SETA. The involvement of and accountant or auditor, can also be helpful. Alternatively approach your local SARS office recommended, and especially if it is your first time – this will ensure that information on the apprentice contract speaks to the information required in the SARS declaration. In the event that the
CH COLLEGE AD 210x130 2/15/17 8:30 AM Page 3
apprentice has a merSETA contract the information at the following link http:// www.merseta.org.za/merseta_sars_rebate. aspx will guide employers through the SARS process. Q: How does a learner access vocational training and development to become an automotive technician?
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Approach a TVET College (normally an automotive technician falls under the Engineering Dept.) to commence an N-course / NCV or other offered at the College. For more information on the work of an automotive technician and what it entails to be an apprentice, kindly visit the merSETA website ‘Career Portal’ - http://www.merseta.org.za/merSETACareer-Portal/careerportal.html
A: A couple of avenues (in no particular order) are available: Prepare a CV / resume and approach workplaces, i.e. car dealerships / workshops to establish any openings for apprentices; Use the same CV / resume to approach technical training providers, i.e. Bidvest C
McCarthy’s / Imperial / Barloworld / AA (links: http://www.mccarthytraining. co.za/; http://www.itta.co.za/;https:// barloworldacademy.co.za/about-us/ barloworld-academy/; https://www.aa.co. za/tools-and-information/aa-technicalcollege
Come on and Seal!
Just seal it! Victor ReinzÂŽ Sealing Technologies
EXTREMELY HIGH STABILITY AT HIGH TEMPERATURES. Particularly intended for sealing all surfaces in engines, gearboxes, and axles, and also for cylinder liners and synthetic housings. Very suitable for uneven and rough surfaces. All-purpose application for use with all makes of engines and vehicles.
Agent in South Africa Intrade Motor Parts T: 011-432-2667 F: 011-432-3005 E:mail: firstname.lastname@example.org
The RMI welcomes these new businesses into membership F
Fair Deal Car Repairs
Auto Elegance Panelbeaters and Spraypaint
Auto Team East Rand
G Gas Monkey Garage
Gordon Truck & Auto Spares
Dentworx Panel and Paint
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.
H Halfway Hyundai
J J & B Panelbeaters
L Lungisa Imoto
M Mosho Projects
N NRB One Stop Shop
P Paleniam Enterprise 17-QA/0874/13
BASIC | INTERMEDIATE | ADVANCED AUTO ELECTRICAL
Bench Worker (Light & Heavy Duty) Basic Auto Electrical (Light & Heavy Duty) Intermediate Auto Electrical (Light Duty) Advanced Auto Electrical (Heavy Duty, Plant & Earthmoving) • Trade Test Preparation • Sound & Security • Basic Auto Air Conditioning
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212 Soutter Street, Pretoria West, 0183 Tel : +27 (0)12 327 2586 Fax : +27 (0)12 327 6211 email@example.com Now Accepted
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R R A Auto
T Trevors Wheel & Tyres
ADVERTISERS AUTOMOBIL - FEBRUARY 2018 EDITION CLIENTS
011 450 0550
Aer O Cure
011 444 6454
+27 72 591 2347
Automotive Industry Development Centre
012 564 5000
012 327 6210
Automobil Association Technical College
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Nissan has unveiled a system that enables vehicles to interpret signals from the driver’s brain
CES depicts the automotive future
nfotainment screens controlled by artificial intelligence; vehicles that can read a driver’s brain; cars that can see around blind corners – these were some of the automotive technology highlights revealed last month at the Consumer Electronics Show in Las Vegas.
intuitive operating system. The system is expected to make its way into less expensive models in the brand’s line-up from this year. The display itself looks like the dual, widescreen set-up that Mercedes has used in recent E- and S-Class sedans.
The event has increasingly provided a platform for vehicle manufacturers to preview developments in car technology, from the production-ready to the purely speculative. This year’s highlights included:
Brain-to-vehicle technology: Nissan demonstrated that the “brain” in an autonomous vehicle need not necessarily be a computer. The company is one of the first to conduct research on brain-tovehicle (B2V) technology.
AI-powered infotainment systems: Hyundai and Mercedes-Benz showed how artificial intelligence can be used in a vehicle’s infotainment system to turn it into a personal assistant.
To engage the system, the driver wears a wired cap which measures brain wave activity, which the vehicle’s autonomous systems analyse and then use to anticipate intended actions.
The Korean company’s Intelligent Personal Cockpit comprises multiple systems that include Artificial Intelligence (AI), Internet of Things (IOT) technology and even driver stress detection.
According to Nissan, the technology can predict driver behaviour to shorten reaction times, for instance by making steering wheel turns or braking 0,2 to 0,5 seconds faster.
Voice-control capable, the system recognises multiple commands and functions. It can also proactively aid drivers by reminding them of upcoming meetings and recommending a departure time based on traffic conditions, make phone calls, send text messages, search destinations, search music, check weather and manage schedules.
The technology also is being tested to detect and evaluate discomfort during driving, and could be used to match the car’s driving style to the driver’s own style when the vehicle is in autonomous mode.
Additionally, it allows drivers to use voice control for frequently operated functions such as air conditioning, sunroofs and door locks, while a wellness function monitors stress levels. Hyundai plans to install the systems in new models as early as next year. Mercedes-Benz debuted a new infotainment interface that will be used in its compact vehicles, based on artificial intelligence and what it described as an
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in the coming years. The technology will make it possible for vehicles to communicate with smart traffic signals, other vehicles and even a petrol pump – to make wireless payments, for example. Cellular vehicle-to-everything is a more advanced version of vehicle-to-vehicle connectivity (V2V) and uses cellular networks, which are faster than Wi-Fi, to communicate with other vehicles and roadside infrastructure. The technology also has the ability to communicate at short range, even when there is no cellular signal. So a vehicle would have the ability to see around blind corners and understand its environment in inclement weather. For example, it could detect icy conditions on a road and warn the driver and other connected vehicles of the hazard. Ford believes that cellular vehicle-to-everything technology is the key to getting more vehicle manufacturers to commit to connected-car systems and to standardise the technology that will be used. The chips this technology uses are not only faster, but they are also less expensive than the ones employed in current V2V systems.
Though the system is still many years away from production, Nissan believes it shows the potential of combining human and artificial intelligence. Cars that connect with everything: Ford used the CES to announce its recommitment to making all of its vehicles connected by 2019. In the short term, that means you can expect to see more Fords fitted with Wi-Fi hotspots, remote unlocking and location services. The company also announced plans to adopt what it calls “cellular vehicle-toeverything” technology (C-V2X for short)
Mercedes-Benz has revealed a new infotainment interface for its compact vehicles, based on artificial intelligence
FORD TRADE CLUB Being independent doesnâ€™t mean youâ€™re alone. Trade Club is a new initiative from Ford, designed to build a strong partnership between Ford Dealers and independent repairers, workshops and bodyshops. We recognise the valuable work you do in maintaining Ford vehicles, and we know that if the price is right you would rather fit Ford genuine parts. If you join Ford Trade Club you will receive a membership card which entitles you to special Trade Club prices, exclusive offers and much more. Find out more and enroll with your nearest participating Ford Dealer, or go online at www.fordtradeclub.co.za
Ford Trade Club is operated by Ford Motor Company, South Africa. Applications to join are subject to eligibility. Ford reserves the right to amend the content or operation of Trade Club at any time.
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Published on Feb 2, 2018