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BIG INVESTMENTS By local vehicle manufacturers

MARCH 2018

POPI VS PAIA What is the difference


MARCH 2018



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22 -MARCH NOVEMBER 2014 2018


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CONTENTS – MARCH 2018 COLUMNS 5 Driver’s Seat: Jan Schoeman, COO 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: The first Electric vehicle expedition ever across Africa UPDATES


12 News 22 ERA invests in the future

Editor: Reuben van Niekerk Sub-editor: Peggy Lendrum Design and layout: Heinz Bawa Reporters: Wynter Murdoch

The Engine Remanufacturer’s Association serves the engine repair requirements of consumers, industry and engine remanufacturing professionals in South Africa


RMI Review

Tickets on sale for SA Bike Festival; Scuderia SA announces its second Internship Programme for 2018; BMW Plant Rosslyn opens new Training Academy; Partinform Bethlehem



Publisher: Richard Lendrum


The future of manufacturing

Production: Mabel Ramafoko

The merSETA Colloquia Gain Crucial Information on the future of manufacturing, says the merSETA CEO Dr Raymond Patel

Advertising Sales Executives: Enver Lawangi, Greg Surgeon,


My R6-billion is bigger than your R6-billion

David Furlonger takes a closer look at some of the recent investment announcements made by local vehicle manufacturers


Future Publishing (Pty) Ltd 247 Jan Smuts Avenue, Dunkeld West, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 803-2040 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


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).

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.


Which set of wheels should do the driving?

Jake Venter compares front wheel drive against rear wheel drive


Exceed your business goals in 2018

As the year begins, businesses all over the world have renewed the goals that they are aiming to achieve



What is the difference between PAIA and POPI?


SARS – Navigating compromises

Achieving a positive cash flow is challenging and businesses often default on payments to creditors, of whom SARS is not an exception


When an employer is required to attend at the CCMA or Arbitration


Used oil for workshops

Used lubricant oil contains harmful compounds and carcinogens and one litre of used oil can contaminate one million litres of water


Join the club

Ford Trade Club set to revolutionise parts supply to independent service outlets


Behr Hella Service – Your Thermal Management solution


Troubleshooting made easy

Autodata, a leading provider of automotive technical information, shares OEM verified solutions to common problems found in modern motor vehicles

© Future Publishing (Pty) Ltd

MARCH 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 – 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 MARCH 2018

Taking care of our own


Jan Schoeman, Chief Operations Officer of the RMI explains why your staff is your most important asset and how to look after them


conomics means one thing to the specialist and another to the general public. When most people hear the word “economics”, they think it has to do with the management of money. In particular, “the economics of occupational health” suggests for many little more than “how can better working conditions be made profitable for business?”

of the Fund, continues to promote the concept of “Taking care of our own”.

In a recent study called “Health and the Economy: The Impact of Wellness on Workforce Productivity in Global Markets,” the economic cost of productivity losses due to ill health around the world, is estimated. That report is the first of its kind to examine productivity losses that arise from absenteeism, presenteeism, and early retirement. It finds that, in developed and developing economies alike, economic costs related to lost productivity are high and projected to increase, threatening to impose heavy burdens on businesses, governments, and individuals now and in the coming years.

MotoHealth Care represents the pinnacle of layered medcare initiatives, focussed on benefit options tailor-made for the specific demands and needs of employers and employees in the Industry, alike. For less than R2 000.00 per month (income dependent), MotoHealth Care can provide excellent medical aid cover for a principle member, adult dependent and two minor dependents (with a tax credit of R1,014.00 per month) – which represents exceptional value for money, when one considers the value that good health represents to business and the economy.

According to leading experts, “This report is a wake-up call. It shows that the costs related to lost productivity due to ill health are significant and rising” and suggests that if we were to succeed in combating the real challenges posed by modern disease, governments, civil societies, and businesses across the globe must integrate their expertise and resources in support of health and wellness, both in- and outside of the workplace.

Businesses that implement workplace health and wellbeing programs, including medical aid cover, are known to have:

The RMI is the indisputable leading voice for the retail motor industry and played, amongst others, a key role in the establishment and propagation of occupational health and wellness in the Industry. It was the pivotal driver in the establishment of the MotoHealth Care Fund back in 2007, and through a number of Trustees serving on the Board

When one considers these benefits, it’s tempting to think that workplace health will be the answer to all business problems. Of course, that’s not the case. Changing workplace culture takes time and persistence, and you can’t expect all of these benefits in the short term. A more realistic scenario might look like the following:

• increased employee morale and engagement; • improved corporate image; • reduced workplace injuries and associated expenses; • increased attraction and retention of employees; and • increased productivity.

Putting employee health and wellbeing at the forefront of your agenda however, is one of the smartest moves you can make for your business, and I would urge every one of the RMI’s Members that have not already done so, to seriously consider providing good health care benefits for their employees. It makes business sense.

Jan Schoeman, COO of the RMI

For information on the RMI and its workings, visit or call 011 886 6300

MARCH 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 - MARCH 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 | 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


Positive sentiment reigns


ast month turned out to be a great month for South Africa and the local automotive industry.

Jacob Zuma finally resigned and the country came together to welcome new president Cyril Ramaphosa into the directors chair. The country is filled with hope and positivity. The budget speech might not have been what everyone wanted, with an increase in VAT to 15 percent as well as an increase in ad valorem and excise duties, which will most probably mean an increase in vehicle prices, especially towards the top end of the market. But sentiment remained positive, the Rand is stable and improving while rating agencies seem happy for the moment. The local automotive market is also buoyant with both BMW and Volkswagen announcing investments of R6-Billion each (page 28). BMW will commence

production of the new X3 imminently while Volkswagen has started production of the Polo and Polo Vivo. 73 percent of the parts that make up the Vivo are produced locally, which is a great boost for local suppliers. What is also great to see is that importers and manufacturers are investing in training and the future of the industry. Scuderia South Africa, the official Ferrari dealer, have announced their Internship Programme that will see three learners trained in their sales, marketing and aftersales departments. Up the road in Pretoria, BMW Group South Africa opened the doors to an impressive new training academy that is able to host 300 apprentices a year. All these investments will ultimately have an affect on the aftermarket industry as these cars need to be serviced and repaired and the skilled workforce will need to be employed.

Reuben van Niekerk, Editor


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 full (this is how we make money and bring value to the Dealership)


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 72 Concorde Road East, Bedfordview, A3 (Head Office) MARCH 2018




 hief Executive Officer: C Jakkie Olivier Chief Operations Officer: Jan Schoeman Financial Director: Renee Coetsee Company Secretary: Gary McCraw

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



TRAINING Louis van Huyssteen

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

DIRECTORS MIWA Pieter Niemand NADA, MDA Gary McCraw



Danelle van der Merwe Brand and Communication Manager

Highveld: Randburg: 011-886-6300

Neo Bokaba HR Manager Julian Pillay Regulatory Compliance Manager 011-886-6300 | Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194

8 - MAY 2015

SAPRA Vishal Premlall TDAFA, MPEA, MIMA Hedley Judd



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



Inspirational ideas for little explorers

Easter is just around the corner – that time when explorers large and small get a chance to search for hidden treasures. Mini, of course, provides a source of adventure, inspiration and creativity all year round. Indeed, the stimulating and intelligently designed kids’ products from the Mini Lifestyle Collection turn every day into a special experience, home or away. These products include a Mini Kids Craft Set Animals and Mini Kids Craft Set Automotive, Mini Colouring Car Set, Mini Knitted Car, Iron-On Patch Set.  The Mini Cooper S Pull Back 1:36 miniature models are all ready for a day of racing with their nippy pullback motors, and come in three sporty colours. For youngsters over the age of three who would prefer to take the wheel themselves, the Mini John Cooper Works Go-Kart not only offers Mini’s signature go-kart feeling, it also creates genuine racing flair with its John Cooper Works red and black colour scheme.  Children over the age of three, or 90 cm in height, can now explore the world under their own power on the Mini Balance Bike. This cleverly designed running bike with low step-through frame, footboard, adjustable saddle and adjustable handlebars with safety grips allows comfortable and safe riding. The robust steel frame in Aqua, the black handlebars with Mini Signet pattern, the white Mini Wing Logo on the handlebar crash pad, and the white rims give added emphasis to the unique Mini design. For even younger adventurers, the Mini Tricycle is ideal for short excursions. Designed for children over 18 months or 80 cm in height, it features low-noise wheels with white rims, an ergonomically moulded seat, and handlebars with safety grips. All of which makes the three-wheeler a safe and stylish toy for riding indoors and out. The Mini Collection comprises over 50 products. Featuring clear and timeless design, unmistakable styling and top-quality materials, the collection conveys the design expertise of Mini and the brand’s new sense of identity – both inside its cars and beyond. The Mini Collection can be ordered from Mini Dealers Nationwide.

Classic parts from a 3D printer For collectors, the unavailability of spare parts can lead to problems. Porsche Classic has a solution - namely, producing extremely rare parts that are only needed in small quantities using 3D printers. All parts that are produced using the 3D printing process meet the requirements in terms of absolute fidelity to the original specifications – both from a technical and a visual perspective. The Porsche Classic range currently includes some 52,000 parts. If a certain spare part is no longer in stock or stock is dwindling, it is reproduced using the original tools. For larger quantities, production may require the use of new tools. However, ensuring the supply of spare parts that are only required in very limited numbers sometimes poses a major challenge, even for the experts. Producing small batches using new tools would be largely inefficient. Before embarking on a project to produce a particular component, Porsche Classic always evaluates various manufacturing processes. As the quality of ‘additive’ manufacturing processes continues to improve with generally decreasing costs, this form of manufacturing presents an economic alternative for the production of small quantities. Say, for example, the release lever for the clutch on the Porsche 959 is no longer available. This component made from grey cast iron is subject to very high quality requirements, but is in very low demand – not least because only 292 of these super sports cars were ever produced. The only manufacturing process worth considering would be selective laser melting. To manufacture the release lever, a layer of powdery tool steel less than 0.1 millimetres thick is applied to a processing plate in a computerised process. In an inert atmosphere, a high-energy light beam then melts the powder in the desired locations to create a steel layer. Thus, the complete three-dimensional component is produced, layer by layer. Both the pressure test with a load of almost three tonnes and the subsequent tomographic examination for internal faults were passed by the printed release lever with flying colours. The practical tests with the lever installed in a test vehicle and extensive driving tests confirm the impeccable quality and function of the component. Due to the consistently positive results received to date, Porsche is currently manufacturing eight other parts using 3D printing. The parts in question are steel and alloy parts produced using the selective laser melting process, and plastic components manufactured using an SLS printer. SLS stands for selective laser sintering, a process where the material is heated to just below melting point and the remaining energy is applied through a laser to fuse the plastic powder at a selected point. All parts are subject to the quality requirements of the original production period as a minimum, though they usually meet higher standards. Accuracy in terms of size and fit is ensured by performing tests with the part installed. Depending on the area of application, plastic parts made of various materials as in the original must be resistant to oils, fuels, acids and light. Porsche Classic is currently testing whether 3D printing is suitable for the production of a further 20 components. The benefits: Three-dimensional design data or a 3D scan of the component is a sufficient basis to commence production. The components can be produced on demand if needed, thereby eliminating tool and storage costs.

MARCH 2018 -


10 - SEPTEMBER 2017




Independent workshops rate highly in service survey


ore than 90% of car owners in South African service their vehicles, with 88% saying they do so at the service intervals recommended by manufacturers, according to a Vehicle Service Survey conducted by the Automobile Association (AA). The survey results come against a backdrop of a Competition Commission’s inquiry into South Africa’s automotive aftermarket, and a campaign by private operators in the sector for improved official recognition of their services, with industry role-players currently being consulted with a view to developing a second draft of a Code of Conduct for the aftermarket. The results show that 53% of respondents say they service their vehicles at original dealer franchises, while 37% take their vehicles to private workshops. Other owners feel comfortable servicing their vehicles themselves. “The results are encouraging,” says the AA in a statement. “We often speak of the necessity to service vehicles regularly, and to keep them in good running condition not only to maintain the performance but to ensure a longer lifespan. Regular maintenance also encourages roadworthiness, which is critical to road safety.” Rates of satisfaction among motorists who use original dealer franchises and those who use private mechanics for their services are high. Eighty percent of owners who use dealer franchises rate the service experience as good or great, while even more – 85% – say that independent workshops offer similar experiences. “What these results show us, is that vehicle owners are equally satisfied servicing their vehicles through private mechanics they trust, or by themselves,

12 - MARCH 2018

as through original dealer franchises. But, importantly, most owners (57%) still prefer using original parts for their cars, although the vast majority (77%) believe these parts are expensive,” the AA notes. According to the survey, only 16% of respondents believed original spare parts were fairly priced. Despite this, many respondents said they would pay the

heftier prices rather than use cheap, nonoriginal parts. “It is important for road safety and driver safety in South Africa that all vehicles are well maintained and running properly. These results show us there is a high level of responsible vehicle ownership in South Africa, and this is certainly to be applauded,” the AA concluded.

Spotlights and the law


efore fitting spotlights to your vehicle ensure that they are mounted in compliance with the law. No spotlight may be mounted higher than 1,4 metres above ground level – so lights which are attached to roof racks on 4x4 vehicles are illegal, according to experts. Further, the law stipulates that not more than six headlights may be fixed to a vehicle and that each should be equidistant from the vehicle’s centre line. Lights which cross the centre line – such as those in an LED light bar – are illegal. And since spotlights are regarded as headlights, make sure that you do not have a total of more than six across the front of your vehicle, including the factory-fitted clusters. Also, bear in mind that spotlights that emit only white light – or those with a blue tinge – are permitted at the front of a vehicle, while spotlights that emit only red light are allowed at the rear. So the backward facing white spotlight you’ve fixed to your 4x4 to illuminate your camp site in the bush is illegal. Even if spotlights are disconnected or covered when your vehicle is used on public roads they remain illegal. The law stipulates that all lights fixed to a vehicle must be in working order – you have no option but to turn them on if ordered to do so by a traffic officer.

New vehicle sales strengthen


or much of 2017, new vehicle price increases were maintained below the rate of inflation – attributable to significant gains in the strength of the rand, according to data released by Transunion Auto in its latest Vehicle Price Index (VPI) report.

TransUnion Vehicle Pricing Index INFOGRAPHIC - Q4 2017


About the VPI TransUnion publishes the VPI on a quarterly basis. The vehicle risk intelligence company calculates the VPI from data it receives on monthly sales returns from thousands of dealers throughout the country, as well as vehicle financing registrations from all of the major banks and vehicle finance houses.

45,087 NEW

VIN numbers


top volume manufacturers

100,224 USED vehicles financed

vehicles financed

16 YEARS going strong

VPI Q4 2017 – RESULTS VPI and CPI 15.00%





Company spokesman Kriben Reddy said the rate of price increases dropped from 9,4% in the fourth quarter of 2016 to 2,4% by the end of 2017. “Given this, it is no surprise that we have seen a slight increase in used-vehicle prices, up from 3,3% in Q4 2016 to 3,5% in Q4 a year later. The rise can be attributed to a higher demand for good quality, relatively new used vehicles, contrasted with a limited supply.”

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007





Index - New (Rate)



Index - Used (Rate)





CPI - Base = Jan 2000 (Rate)

New Price Index New vehicle prices have slowed down below inflation for the second consecutive quarter. The decrease in interest rates and lower inflation has helped manufacturers to slow down on new price increases.

Used Price Index Used vehicle prices have been over 3% for 2017 which indicates the demand for used vehicles trend will continue until quality of used vehicles diminishes. The used car price increase has been higher than new price increases for the second successive quarter.



Vehicle Price Inflation: NEW



Vehicle Price Inflation: USED

New vehicle pricing has decreased from 9.4% in Q4 2016 to 2.4% in Q4 2017.

Used vehicle pricing has increased from 3.3% in Q4 2016 to 3.5% in Q4 2017.

USED-TO-NEW RATIO: 2.22 : 1 2.22 USED

Q4 2017 Vehicle Asset Finance Results We have seen a shift in the vehicles financed under R200k. The percentages have changed from an average of 50% in 2016 to 40% in the last 3 quarters 2017.



R200,000 - R300,000

“The current market is experiencing the real effects of supply and demand,” said

“This significantly widened the pricing gap between new and used vehicles and shifted consumer demand in favour of used vehicles. Now, as we shift out of this market trend, we will see a change in consumer behaviour as advantage is taken of the drop in new vehicle prices.” Reddy said the change was also evident in financing statistics. In Q4 2016, banks financed 2,5 used vehicles for every new vehicle, compared with 2,2 in Q4 2017. “We expect the trend to continue into 2018,” says Reddy. “Looking forward we will see some exciting new model introductions which will fuel new car sales growth by around 2%. “Consumers will continue to place emphasis on value propositions when purchasing a new vehicle. Consequently, less expensive passenger vehicles will continue to sell well.”

'Luxury EVs require new retail experience' Manufacturers of luxury vehicles will need to update the retail experience for customers and embrace connectivity and human-machine interface innovations if their brands are to succeed in the expanding electric vehicle (EV) marketplace.


The used-to-new ratio is based on finance deals registered in the last quarter. The ratio indicates the finance houses are financing 2.22 used vehicles for every 1 new vehicle. This follows the trend of the VPI where the new car prices has slowed down over the last 2 quarters.


The Transunion report, now in its 14th year, examined the link between annual increases in vehicle pricing for new and used models, drawing data from a basket of passenger cars representing 15 volume manufacturers.

Reddy. “If we look at where we have come from, the weaker rand saw new vehicle prices increase above inflation in previous reports as input costs were higher.



Want to learn more? Download the full report at

© 2018 TransUnion LLC All Rights Reserved | 18-235206

That’s the view of research company Frost & Sullivan, which recently published an analysis of trends in the luxury EV market in North America and Europe. The study indicates that the market is expected to grow from 130 000 units in 2016 to 1,8-million units by 2025, with Plug-in Hybrid EVs (PHEV) holding a major share of 59,8%. Long-range, battery-only EVs (BEV) will be a growing trend, while autonomous driving functions will unlock inductive charging functions for optimal operation of the car, with the first applications expected in 2019. “Among performance, innovation, energy efficiency, luxuriousness and ease of ownership, a strong brand positioning message is required for the EV nameplate to be successful," said research analyst Pooja Bethi. “Luxury EV OEMs face an absolute need to design an innovative e-retailing business model that will create a personalised and non-invasive selling experience for the consumer while offering unique in-car value additions that establish brand differentiation,” he said.

MARCH 2018



Hyundai tests autonomous fuel cell vehicles


fleet of Hyundai Motor Company’s next generation fuel cell electric cars have succeeded in completing a self-driven 190km journey from Seoul to Pyeongchang, reaching speeds of up to 110km/h – the maximum allowed by law on Korean highways. Five vehicles completed the journey, three of them based on Hyundai’s latest SUV, the Nexo – which is scheduled to go on sale this month in Korea – and the other two on Genesis G80 autonomous vehicle platforms.

Time to celebrate… Goodyear’s Nick Harley, Managing Director for Original Equipment, Consumer Tyres for Europe, Middle East and Africa, shows off the trophy presented by FCA executives Monica Genovese (left), Alfredo Altavilla (right) and Edoardo Calarco (far right)

Goodyear wins top Fiat Chrysler award


oodyear has been awarded Chassis Supplier of the Year by Fiat Chrysler Automobiles (FCA) – the first time a tyre manufacturer has been selected by the carmaker for the accolade. “Goodyear demonstrated a customeroriented approach and showed strong commitment in supporting FCA needs, combining flexibility, transparency and a profound sense of urgency,” said a statement issued by FCA. The statement quotes Nick Harley, Managing Director for Original Equipment, Consumer Tyres for Europe, Middle East and Africa, as saying:

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“We are excited about this important award. It’s the first time that a tyre manufacturer has been recognised as FCA’s Supplier of the Year for the whole chassis sector. It’s a remarkable success, achieved thanks to the strong commitment of the Goodyear crossfunctional team.”

All were equipped with Level 4 self-driving technology and 5G network protocols. On the route, the vehicles executed lane changes and overtaking manoeuvres, and navigated toll gates without incident. The Hyundai Motor Group – which incorporates the Kia brand – is preparing for the commercialisation of the SAE standard Level 4 compliant autonomousdriving system in smart cities by 2021. To this end, the company recently announced that it had signed a joint venture with Aurora Innovation, a US based autonomous driving startup, to expand development of its self-driving technology.

During the year Goodyear worked to strengthen its partnership with FCA, winning significant share as an Original Equipment supplier for new models across a number of the company’s brands, including Maserati’s Levante, Alfa Romeo’s Stelvio and Giulia, Jeep’s Renegade and Fiat’s 500X.


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MARCH 2018




olls-Royce has confirmed that its new SUV will be called Cullinan – after the world’s largest diamond.

The high-bodied vehicle has been undergoing pre-production tests in Africa, the Middle East, the UK, America, and at the Arctic Circle. “The name Cullinan has been hiding in plain sight since we revealed it as the project name some years ago,” says Torsten Müller-Ötvös, Chief Executive Officer of Rolls-Royce. “We were inspired by the epic processes, over many millennia, which went into the creation of the Cullinan Diamond.”

Rolls chooses Cullinan name for new SUV

He says the name embodies many facets of the new model’s promise. “It speaks of endurance and absolute solidity in the face of the greatest pressures; it tells of rarity and preciousness and it alludes to the pioneering, adventurous spirit of Charles Rolls and the engineering innovation of Henry Royce. And, of course, it speaks of absolute luxury, wherever you venture in the world. Quite simply, the name Cullinan is perfect and brilliant.” The model will give Rolls-Royce a rival to Bentley’s Bentayga and the upcoming Aston Martin DBX, which is scheduled to arrive in 2019. Observers believe it will help to push the brand’s annual sales past 5 000 units for the first time. Last year, the BMW-owned company sold 3 362 cars.

New executive for Toyota


the company’s first female chief engineer. Her first assignment, in 2015, was overseeing a refresh of the Lexus CT hybrid hatchback.

Kako, 51, joined Toyota in 1989 and, rising through corporate ranks, became

In January this year she became a Managing Officer in the Toyota corporate structure and was promoted to Executive Vice President, Lexus International.

oyota has promoted Chika Kako to second in command of its luxury Lexus brand. She is the first woman to hold such a high executive position in a company that has less than two percent of female employees in managerial positions.

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Rolls-Royce released pictures of the Cullinan undergoing tests. The company will start taking orders for the vehicle at the end of the year with deliveries beginning in 2019. The SUV will be the second model to be built on Rolls-Royce’s aluminum platform, following in the footsteps of the new Phantom. The Cullinan Diamond, which weighed 3 106,75 carats (621,35 grams), was found at Cullinan, South Africa, on January 26, 1905. It was named after Thomas Cullinan, the mine’s chairman. In April 1905, the diamond was put on sale in London, but despite interest, it remained unsold. In 1907 the Transvaal Colony government bought the Cullinan and presented it to King Edward VII on his 66th birthday. The diamond produced nine stones of various cuts and sizes, the largest of which is the Great Star of Africa, which weighs 530,4 carats (106,08 grams). It is mounted in the head of the Sovereign’s Sceptre with Cross, used by Queen Elizabeth II on State occasions. The second-largest is Cullinan II – also known as the Second Star of Africa – which weighs 317,4 carats (63,48 grams). It is mounted in the Imperial State Crown. Both diamonds are part of the Crown Jewels of the United Kingdom.

Chika Kako

Porsche turns to e-mobility


orsche intends to invest more than six billion euros in developing e-mobility platforms, focusing on both plug-in hybrids and purely electric vehicles.

The decision was made by the Porsche AG Supervisory Board at its most recent meeting, according to a statement issued by the brand. Oliver Blume, Chairman of the Executive Board, said expenditure on e-mobility would be doubled from around three billion euros to more than six billion euros. “Alongside development of our models with combustion engines, we are setting an important course for our future in e-mobility,” he said. The plans include around three billion euros of investment in material assets and slightly more than three billion euros in development costs.

Federer extends Merc ambassadorship


ennis star Roger Federer has agreed to extend his 10-year-long brand ambassador partnership with Mercedes-Benz. The 36-yearold, who recently won his 20th Grand Slam title, said he was proud to co-operate with the brand. “Mercedes-Benz is one of the most iconic global brands in the world and I am so excited to continue this incredible partnership and be part of the Mercedes-Benz family for many years to come,” he said. Jens Thiemer, Vice President of Marketing for Mercedes-Benz Cars, described Federer as a great personality and a true gentleman. “He cares for the game and for those less fortunate, and is adored by his fans. “He is a pioneer and, like the brand, carves out innovative paths. He ideally represents Mercedes-Benz – we are united by a demand for perfection and a will to succeed.” Federer’s partnership with Mercedes began in 2008. He has collaborated in numerous promotions for TV, print and social media publications, including an appearance in a globally broadcast TV ad for the V-Class and a Chinese TV commercial for the M-Class. He has also taken part in Mercedes-Benz launch events, unveiling at the Mercedes Cup in 2016 an E-Class derivative and, at last year’s Laver Cup in Prague, appearing with the brand’s X-Class bakkie.

According to the statement, about 500 million euros will be used for the development of Mission E variants and derivatives, around one billion euros for electrification and hybridisation of the existing product range, several hundred million for the expansion of sites, plus around 700 million euros in new technologies, charging infrastructure and smart mobility. At Porsche AG’s headquarters in Stuttgart, a new paint shop, a dedicated assembly area, and a conveyor bridge for transporting painted vehicle bodies and drive units to the final assembly area are currently being constructed. The existing engine plant is being expanded to manufacture electric drivetrains and the body shop will also be re-developed. Investment is also planned for another Porsche development centre at Weissach in Germany. Further, the company has joined Ionity – a joint venture with Audi, the BMW Group, Daimler and Ford – to construct and operate 400 rapid charging stations along major European traffic routes by 2020. To complement the work of Ionity, Porsche’s dealer network in Europe will become part of the rapid charging infrastructure. In the United States, the company is working with 189 dealer partners to install fast-charging infrastructure for customers and is developing with other organisations a network of DC fast-chargers for US cities and highways.

MARCH 2018



Hilux and Fortuner ride on Dunlop Sumitomo Rubber South Africa, manufacturer of Dunlop tyres, has been selected by Toyota as the sole OE tyre supplier for latest Hilux Black Edition and Fortuner derivatives. The vehicles – which are fitted with 18-inch rims – will be shod with Dunlop Grandtrek AT25s. The agreement comes after several months of consultation between the two parties, which included close liaison with Toyota South Africa’s Japanese counterparts. The tyres are manufactured at SRSA’s recently upgraded Ladysmith plant in KwaZulu-Natal.

BP Castrol extends Renault sponsorship BP and Groupe Renault have announced a strengthening of their relationship which will see the global energy company continue its support of the Renault Sport Formula 1 Team for at least the next five years. BP will also explore new opportunities to work globally with the Renault-Nissan-Mitsubishi Alliance. According to a statement issued by Renault, the partnership will go beyond Formula 1 and see the brands collaborate on the joint development of advanced mobility solutions and new technologies. Jérôme Stoll, President of Renault Sport Racing, said: “We are tremendously proud to announce this significant strengthening of our relationship with BP Castrol after laying strong and stable foundations together in 2017. “BP and Castrol are at the cutting edge in their respective fields and a partnership of this scope, breadth and duration highlights the intents and goals of both parties.” Tufan Erginbilgic, CEO BP Downstream, said: “We look forward to our continued relationship in Formula 1 and to exploring a wider global cooperation with the Renault-Nissan-Mitsubishi Alliance. “The automotive landscape is changing faster than ever before and the partnership enables us to combine the skills and knowledge across both organisations to tackle the challenges and explore the opportunities of a rapidly evolving market.”

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Riaz Haffejee, CEO of the tyre company, said he was proud of the fact that the Grandtrek had been chosen by Toyota as OE equipment. “Dunlop dealers will benefit as it will have a direct impact on their sales in the replacement market,” he added.

Denso focuses

on autonomous tech


apan’s Denso Corporation, one of the world’s largest automotive suppliers, has announced that it will open a special facility in Tokyo to research and develop advanced driver assistance systems for autonomous and connected vehicles. The facility – at which 200 people will be employed when it opens in April – will take the lead in guiding operations for Denso’s satellite R&D bases worldwide. “Regional hubs will play a larger role in research and development in 2018 as the company decentralises to become more agile and innovative,” says a statement. A company spokesman says universities, research institutes, startups and other partners around the world will work through the facility to develop new technologies and products that better meet the needs of customers. “The partnerships align with Denso’s widespread adoption of safety technologies that will play a critical role in the advancement of future mobility,” the statement says.




Mini black oil firms’ stand up to Sinopec

The branded marketers are concerned about the costs and consequences of rebranding their filling stations from Caltex to Sinopec says Hilary Joffe of Business Day.


hevron’s branded marketers took aim at Chinese oil giant Sinopec at the Competition Tribunal on Thursday, accusing Sinopec of failing to engage with the marketers on its plans for Chevron SA, which Sinopec has agreed to buy for $900m. The 10 marketers, who are blackcontrolled "mini oil companies" that account for 60% of the volume of fuel sold by Chevron SA under its Caltex brand, said "other parties" had engaged with them extensively — suggesting they have been in talks with the BEE consortium led by Mashudu Ramano which owns 25% of Chevron SA. The consortium is exercising its preemptive right to buy the rest of Chevron SA, backed by Glencore. The commission has recommended the Sinopec bid for Chevron SA be approved with a series of public interest conditions, which were negotiated between Sinopec and Economic Development Minister Ebrahim Patel. However, even assuming the tribunal approves the deal, it would still go ahead only if the rival Ramano/Glencore bids were withdrawn or failed to receive approval. The consortium’s proposed acquisition of Chevron has been referred to the commission. It would have to look separately at the deal in which Glencore buys the stake from the consortium.

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The branded marketers are concerned about the costs and consequences of rebranding their filling stations from Caltex to Sinopec and about whether the 15-year contracts they have with Chevron SA will be renewed under the new owners once those contracts expire in 2026-27. They asked that the tribunal impose a series of extra conditions on the deal to protect them, including that their contracts be renewed on the same terms for a further 15 years. Counsel for the Competition Commission Maya Swart said the commission had analysed the branded marketers’ submission but had concluded that their possible exit from the market eight or nine years from now would not significantly lessen competition in the market. But Caltex Northern Cape Marketer MD Fuad Johnson said Sinopec and Chevron SA had not shown the branded marketers respect; had not engaged with them, except for one town hall meeting; and had not shared their strategy or plans with the marketers, who were a substantial partner of Chevron SA.

The branded marketers were fearful and concerned and "the fact of the matter is that other parties have engaged and have shared their plans". The director of Caltex Eastern Cape Marketer, Clive Berlyn, said the marketers were Chevron SA’s "low-cost carrier on the route to market", who were able to get fuel to filling stations in outlying areas and had taken Chevron from number four to number two in SA since Chevron’s branded marketer model was implemented in 2005. Though tribunal member Enver Daniels accused the marketers of xenophobia against a Chinese firm, Berlyn said their concern about the "degradation" of the brand was based on a survey on market perceptions. Members of the tribunal and counsel for the merging parties suggested the conditions should include an undertaking by Sinopec to engage with the marketers if the deal went ahead.

MARCH 2018 -



ERA invests in the future

The Engine Remanufacturer's Association (ERA) - was established in the early 1990s, and today serves the engine repair requirements of consumers, industry and engine remanufacturing professionals in South Africa.


s a proud Association of the Retail Motor Industry Remanufacturer’s Cluster -ERA, SADFIA and ACRA - ERA's membership comprises the cream of South Africa's automotive engineers, dedicated to providing consumers with only the best advice, finest components, and highest quality workmanship. ERA members use state-of-the-art equipment, while highly skilled staff perform the full range of automotive engineering operations required to overhaul and repair all components of the modern petrol and diesel engines on our roads. ERA members take pride in providing warranties against workmanship appropriate to the type of engineering work undertaken. u ERA Website The RMI REMAN Cluster: ERA, SADFIA and ACRA office is happy to announce that the new ERA Website is due for launch in March 2018. As part of the RMI NTM (New Thinking Model – which underpins positive change, i.e. the only current is change), ERA opted to revamp their website to bring about the latest technology in terms of smooth communication between Members Nationally as well as between Members and the RMI REMAN Cluster: ERA, SADFIA and ACRA.

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Attie Serfontein, Director: REMAN Cluster: ERA, SADFIA & ACRA

Sponsors of the Website, MAHLE and Federal Mogul, will enjoy marketing rights on the website and post their latest news bulletins, tech videos and their latest products on the Website. The RMI REMAN Cluster: ERA, SADFIA and ACRA office wish to thank both MAHLE and Federal Mogul for sharing our vision and forming part of this initiative. Once the new Website is launched, all ERA Members will be placed in a much better position to communicate effectively, as well as sharing supplier, component, and engineering information.

u MerSETA / DoL UIF / RMI ERA / Almo Engineering – Pilot Training Project Stakeholders of the MerSETA / DoL UIF / RMI ERA / Almo Engineering – Pilot Training Project met on 6 February at Almo Engineering in Virginia (where the training is hosted) to formally meet the learners and to provide an opportunity to engage, discuss and share thoughts with one another. The stakeholders were also taken on a tour through the training facility and with an explanation how the training

Frank MacNicol, ERA National Chairperson

will be conducted. Almo Engineerings: Mr Frank Mac Nicol and Mr Andre Kapp (and the rest of the Almo Engineering team) have done enormously well to equip the training centre. Almo Engineering has a passion for training, and together with the MerSETA, DoL UIF and RMI ERA shift mountains to get to this point. The RMI REMAN Cluster: ERA, SADFIA and ACRA office will keep on reporting as the learners progress in their studies â&#x20AC;&#x201C; which will ultimately close the gap in the industry in terms of the Engine Fitter Qualification and the Automotive Machinist Qualification.

Hazel Smith, PA to REMAN Cluster: ERA, SADFIA & ACRA Director

u The RMI Reman Cluster: ERA, announces the successful implementation of an Industry First training projects hosted by ALMO Engineering, Virginia Free State What started as a critical industry concern and scarcity of trades (within the Automotive Engineering Sector), identified by Mr Frank Mac Nicol: ERA National Executive Committee Chairman, many years ago, and a vision shared by the RMI REMAN Cluster: ERA Memberbase, has now come to realisation. The RMI ERA / DoL (Depart. of Labour) / MerSETA Pilot Training Project officially started with the training of 20 Apprentices, split between Engine Automotive Machinists and Engine Fitters, on 15 January at Almo Engineering,

MARCH 2018 -



Virginia, Free State. The RMI REMAN Cluster: ERA office approached its Member-base to obtain consensus during 2016 / 2017 country meetings with RMI REMAN Cluster: ERA Members, and to spark participation. A total of 10 RMI REMAN Cluster: ERA businesses signed-up, that now (for project purposes) are known as Lead Employers, namely: • • • • • • • • • •

Almo Engineering; JBM Diesel & General; W Squared Engineering; Northern Motor Engineering; Mafika Engineering; Welle Automotive; Petrol and Diesel Engine Rebuilders; Genmo Engineering; Antonio's Engine Rebuilders; Ditsibi Motor Engineering.

The RMI REMAN Cluster: ERA’s National Executive Committee approved a national industry skills development initiative targeted at the motor industry’s ‘Sector-3 Businesses’. The initiative encompasses an ‘Apprentice Training Pilot Programme’ that will be facilitated on behalf of the Association by Almo Engineering, based in Virginia, Free State. This ‘Apprentice Pilot Project’ will enhance the current ‘Competency Based Modular

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Training System’ (CBMT) or ‘Learnership Training System’. At the same time, this programme will enable the development of courseware and the syllabus required for the new ‘Occupation Qualification’ apprenticeship curriculums and programmes. This has been developed by RMI REMAN Cluster: ERA and other industry role players in conjunction with MerSETA as development quality partner. In order to preserve the longevity of not only the ‘Engine Rebuilding Industry’ but also the ‘Automotive Aftermarket Repair Industry’, it is incumbent on all business owners to embrace the future availability of skills in the industry. Over the last year, participants / Lead Employers worked hand-in-hand with stakeholders to develop a working structure for the pilot project to where we are today, and it is only fitting for the RMI REMAN Cluster: ERA office to extend a special thank you to the Lead Employers. This showcases what can be achieved when the RMI REMAN Cluster: ERA Members and Industry, comes together and is a real milestone for the RMI REMAN Cluster: ERA Member-base and Industry at large, and members can be very proud that the Engineering Sector is creating a ripple effect in the training realm. The achievement is testimony to the heights that can be reached when Industry Stakeholders join forces.

The likes of MerSETA’s Mr Slabbert and Mr Ben, Department of Labour representatives Mr Weyers and Mr Pholoana, Almo Engineering’s Mr Mac Nicol and Mr Kapp (project SDF – Skills Developer Facilitator) and RMI’s Mr Niemand and Mr Van Huyssteen – can all be commended for the critical role they played in the success of the project.

u Engine Remanufacturer Association (a constituent association of the RMI) apprentice initiative in Virginia, Free State This is a demonstration of an Industry Association determined to address skills shortages in their industry. ERA and the ‘Reman cluster’ of the RMI have clearly set their sights on training as a priority. ERA, firstly within Pieter Niemand at the helm and now Attie Serfontein - have embraced the RMI strategic priorities and specifically that of Skills development. This initiative in collaboration with Dept. Labour UIF (ESSA) / merSETA / lead employer (automotive engineering establishments / ERA members) and host employer (Almo Engineering as training provider in Virginia). The learners all sourced from the Department of Labour ESSA database with emphasis on rural. The apprentices see, hear, and feel engine remanufacturing on a daily basis, as the classroom is based inside a working automotive engineering establishment, and they all receive a stipend.

MARCH 2018



The future of MANUFACTURING The merSETA Colloquia gain crucial information on the future of Manufacturing, says the merSETA CEO Dr Raymond Patel


n the last three months, the merSETA has hosted several colloquia on the future of manufacturing in South Africa in order to gain vital data and pointers as to provincial economic drivers. The first, in the Western Cape, attracted crucial contributions with participants upbeat about the possibility of economic opportunities in the Saldanha Bay Industrial Development Zone, the ocean’s economy and expansion of green initiatives. Key issues concluded that the province has massive potential in both rural and urban areas for more development. Economic activity is concentrated in Cape Town, thus the province needs a more inclusive plan to develop outlying areas. At the Gauteng Colloquium, Minister of Small Business Development Ms Lindiwe Zulu emphasized that the SETAs are expected to play a significant role in developing technical and business skills for enterprises, specifically those in the townships and rural areas. The World Bank, she pointed out, had found that economic growth in South African can be driven by rejuvenating the township economy, which is becoming a major tenet of government policy. To unlock the potential of Small, Medium and Micro enterprises and co-operatives, the government, she added, has identified five critical areas to drive development and sustainability of the small business sector.

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These are public sector procurement, building market access into private sector value chains, simplifying the policy and regulatory environment, access to finance, and support for township and rural economies.

of the skills challenges confronting the sector. This has contributed to South Africa losing some of its competitive edge in the global manufacturing space. Consequently this, coupled with economic difficulties, has contributed to de-industrialisation.

This view was echoed by the Minister of Finance, Mr Malusi Gigaba, in his budget speech when he said: “On a visit to the Bridge City hub in eThekwini, I saw first-hand the transformative potential of coordinated public investment in reviving township economies through public and economic infrastructure investments and catalysing private sector investments. Let all urban development stakeholders work imaginatively to transform township economies.”

Curriculum design and development of new qualifications and occupations is also needed.

The merSETA has an agreement with the Small Business Development Department that ups the ante with regard to engendering entrepreneurial skills in townships by tenaciously leveraging these policy directives. Advanced manufacturing needs a highly skilled labour force, and the merSETA has given support through various interventions such as policy dialogue and partnering with Universities of Technology to establish research partnerships for manufacturing skills development. However, the manufacturing sector continues to face challenges such as a perennial shortage of skills. Skills mismatches, skills redundancy and shortage of high-end, skills etc., are some

We welcome the Minister of Finance’s approval of six special economic zones that will make qualifying companies subject to a lower corporate tax rate and enable those companies to claim an employment tax incentive for workers of all ages. Bursary expenditure is expected to rise from R15.4bn in 2017/18 to R38bn in 2020/21 – a most welcome relief for struggling students. Additionally, work-based opportunities, mainly for TVET students, are expected to increase from 130 000 in 2017/18 to 140 000 in 2020/21. The merSETA’s position in enhancing the entrepreneurial spirit is in line with government’s allocation of R2.1 billion over the medium term for the Departments of Small Businesses, Science and Technology and the National Treasury to benefit small and medium enterprises during the early start-up phase. These open fresh avenues for greater skills development and training.

RMA- leading the way in occupational injuries and diseases through our family-centric approach. For over 120 years we have made sure that workers who get 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 March 2015 been allocated the iron, steel, metal and related industries to administer by the Minister of Labour. Our claims are processed speedily and efficiently per our tagline of â&#x20AC;&#x153;Caring, Compassionate, Compensationâ&#x20AC;? 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. We administer in accordance with the Compensation for Occupational Injuries and Diseases Act (COIDA)130 of 1993. CONTINUOUS CARE Our service to those injured extend beyond the payment to where we allocate case managers in line with our Pensioner Medical Plan. The case managers visit those severely affected to check on the standard of care and other needs. We have also developed innovative interventions such as a mobile clinic to help us reach rural areas across the country and outside to provide the required level of care to those who cannot access it, in the process also changing prosthetics and treatment where needed. Our Care Facility offers long term treatment to our seriously injured pensioners to ensure they receive the best care possible. We also provide continuous education to our pensioners who are on preventative health conditions to help reduce the

pensioners to ensure they receive the best care possible. We also provide continuous education to our pensioners who are on 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. ADDITIONAL INSURANCE PRODUCTS Our passion gives us insight into further needs that our clients, the employers, may have. By working with them, we now can offer a range of value-added solutions uniquely tailored and suitable for their needs. These include Augmentation Policy (top up cover of the COID policy), Group Personal Accident Cover with a difference, Commuting Journeys Policy, Funeral Policy etc. For a quote suitable to your needs visit our website at or email



COMPENSATION | 0860MARCH 222 2018 132- 27 email:


My R6-billion is bigger David Furlonger takes a closer look at some of the recent investment announcements made by local vehicle manufacturers


few days after Volkswagen SA announced the near-completion of its investment to build new Polo and Vivo car models at the company’s Uitenhage assembly plant, near Port Elizabeth, fellow German company BMW SA followed suit. Its money, though, has been spent on a brand-new product: the X3 sports activity vehicle will replace the 3-Series sedan, which has been built in Rosslyn, near Pretoria, since 1983. However, BMW SA CEO Tim Abbott was quick to declare one-upmanship. VWSA’s final bill was R6.1-billion, while Abbott’s company went up to R6.2-billion. He was also keen to point out that while BMW SA’s cost overrun was only marginal (the 2015 announcement was for exactly R6billion), VWSA’s wasn’t. Since 2015, the R4.5-billion bill has grown by more than one-third. To be fair to Abbott, his comparisons were made with a friendly smile. But, hey, competition is competition. There are good reasons for the cost overrun, says VWSA MD Thomas Schaefer. The biggest culprit has been the rand’s weakness against the euro – the currency in which the investment was made from Germany – over the last three years. There have also been a few extras added to the original plan, in response to strong demand for the new models. BMW SA gives the second reason for its extra outlay.

BMW group Plant Rosslyn

2017, rather than in 2015, the plan for new products might have been canned. Corruption, economic mismanagement, a plunging rand and SA’s generally declining reputation might well have persuaded VW in Germany to pull the plug on its SA subsidiary. Maybe not fullscale disinvestment, but certainly reduced spending. But events of the last three months have rejuvenated overseas faith in SA as an investment destination. More importantly, the rand-euro exchange rate has recovered to sustainable levels.

The new Polo was launched in January, followed by Vivo in February. As before, Polo will be mainly for export and Vivo – once again based on the outgoing Polo – for domestic consumption. But not exclusively. Uitenhage will continue to send Vivo kits for reassembly in Kenya. The joint venture, with Nairobi government support, was created at the end of 2016.

But forget the VWSA overrun. Actually, says Schaefer, we should be grateful that anything at all was spent. Had the investment decision been made in

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than your R6-billion!” Now some Polos may make their way to another African joint venture, with Rwanda. VWSA has signed a deal with a government agency there, to reassemble cars and provide “mobility solutions” like car-sharing and ride-hailing. It’s a first for the global VW group anywhere in the world, and shows what can be done when regional managements are given freedom to run their businesses as they see fit. Naturally, there are limits to what may be done but, as Schaefer says, projects that might be deemed insignificant by VW headquarters in the German city of Wolfsburg, become feasible when viewed from local scale. Assorted projects of a few thousand each can add up to a lot of thousands, which is why VWSA teams are scouring the rest of sub-Saharan Africa, looking for other potential sites. Ghana and Tanzania are among those already under the microscope, and Schaefer will also have to find ways to revitalise the comatose Nigerian assembly operation, which has been on life-support since the collapse of the West African nation’s newvehicle market. Abbott is also looking northwards, but from a far more basic platform. BMW sales across sub-Sahara are minuscule. The brand barely registers in many countries where road conditions, within cities as well as on outlying dirt roads, require hardy vehicles.

Volkswagen group South Africa completes major investment programme and launches New Polo

The X3, with its offroad capabilities, may just provide that, but it will be a long process. One of Abbott’s responsibilities is to create a sales, marketing and aftersales network across the sub-continent. Though Germany has identified subSahara as a long-term target, it’s not on the initial radar. Even SA is in the minor league. Such is global demand for the product that, to begin with, up to 96% of Rosslyn production will be for export, mainly to Europe. Bringing new meaning to the expression, ‘taking coals to Newcastle’, destinations will include VW’s home base, Germany, where the X3 is not built.

VWSA MD Thomas Schaefer

Production of the 3-Series was due to end in February. Following a six-week shutdown to complete the transition, X3 manufacture is due to begin in April. Officially, VWSA had no shutdown for the changeover to new models. In practice, it did. Volumes of the outgoing cars in the final quarter of 2017 were so low that exports ended – dragging full-year SA industry shipments below expected record levels. No such excuses in 2018. Assuming BMW SA gets X3 up to speed quickly, all forecasts are for an all-time export high. We’ll see.

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

MARCH 2018 -



WHICH SET OF WHEELS should do the driving? Jake Venter compares front wheel drive (FWD) against rear wheel drive (RWD)


ear wheel drive cars were by far the most popular choice for most motorists until the BMC Mini appeared on the scene in the 1960s. Alec Issigonis was widely praised for coming up with a transverse engine layout in order to increase passenger space, but the idea came from first DKW and then Saab and Trabant. At that time these three brands were already producing thousands of cars powered by two-cylinder twostroke engines mounted transversely. Manufacturers saw the major advantage – more passenger space – and hastily copied this layout for their smallest models. Later, this layout also spread to larger models. At present RWD can be found on practically all large luxury saloons except Audi. We’re going to take a look at three engine/power-train layouts that have been used on popular cars. FRONT ENGINE; REAR WHEEL DRIVE Advantages A major advantage is that this layout makes it is easy to distribute the masses of the various components in such a

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way that the centre of gravity is in the longitudinal middle of the car. This means that the front/rear mass distribution is close to 50:50, which promotes good handling characteristics. Suspension geometry can be easily tuned to promote under-steer for safety, or over-steer for better vehicle control.

The longitudinal engine mounting that such a layout requires provides a high degree of crash safety since the enginesupporting structure can be designed to crumple in a controlled manner to absorb some of the crash energy, and at the same time slow down the fierce deceleration that accompanies a crash.

two universal joints on each side of the differential on the open drive shafts to the rear wheels. This stops the differential unit from having to move up or down, and so improves the ride quality, but the cost and complication goes up. FRONT ENGINE; FRONT WHEEL DRIVE During the early 30s such layouts were produced for the first time in quantity by DKW and Citroën, and these models remained in production for some years after the end of WWII.

only be done with in a RWD car. During drifting the power has to be transmitted to the road through the rear wheels; a front wheel drive car cannot sustain a drift. Since a drift is the fastest way around a corner, this implies that the best RWD cars can corner faster than the best FWD cars.

Mounting the radiator in front increases the airflow past the cooling fins. This position sometimes even promotes a ramming effect from the car’s forward motion. The longitudinal (north-south) engine position usually makes it easy to reach most parts during servicing. The drive shaft that transmits the power from the gearbox to the final drive usually runs at such a small angle that long-lasting cross-type Hooke’s joints can be used instead of the less robust constant-velocity (CV) joints that a FWD layout demands. The weight transfer that occurs when climbing a steep slope promotes extra traction between the rear driving wheels and the road. Another form of weight transfer takes place while accelerating hard; this increases the down-force on the drive wheels and helps to reduce wheel-spin. Drifting, the motor-sport craze that consists of sliding a car through corners in such a way that all four wheels (not just the rear wheels) are sliding sideways, can

Disadvantages RWD cars generally tend to be heavier and more expensive to build due to the fact that the major components cannot be lumped together in the same place. Modern unit construction floor-pans are also very good at transmitting noise with the result that these vehicles often suffer from rear axle noise when they get old. A drive shaft sags due to its own mass and vibrates if it gets too long. This transmits noise and vibration from the rear axle to the passenger cabin. On a large car or truck the shaft may have to be fitted with a universal joint and a support bearing somewhere in the middle. This increases cost and complication. A tunnel that encroaches on the passenger legroom is usually necessary to accommodate this drive shaft. A dependent rear axle mounted on leaf springs or coils is a very heavy construction that has to move up or down. This affects the ride quality so much that many expensive luxury cars now employ independent rear axles. This construction mounts the differential unit on a subframe and employs one or

Advantages There are two major advantages. This layout, in combination with a transverse engine, makes it easier to create more interior space. The absence of a driveshaft tunnel creates a level floor at the rear so that three people can be accommodated in greater comfort. Concentrating the engine, gearbox, final drive and drive-shafts in one unit not only makes production and assembly easier and less costly, but it also means all the gearing is in one place, where the noise can be more easily silenced. Before the introduction of FWD a rear axle whine was not unknown on less expensive cars. Other advantages include the fact that concentrating up to 65% of the vehicle mass on the front wheels improves traction, but only while accelerating slowly. It’s also easier to design a car’s layout in such a way that the height of the centre of gravity is reduced. The rear wheels can be linked by a lightweight beam, or made to move independently without the need for jointed half-shafts. Disadvantages The weight transfer that occurs during fast acceleration, or hill-climbing, tends to reduce the down thrust at the front wheels. This causes the wheel-spin that made some of the earlier FWD cars difficult to drive fast, and vastly decreased tyre life. Modern cars employ electronic wheelspin control so that this is no longer a problem. Torque-steer, a sideways pull on the steering wheel during acceleration, is another FWD bugbear that’s caused by a combination of unequal drive

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TECH TALK shaft lengths and suspension geometry compromises. Audi solves both the above problems by selling their more powerful models only in four wheel drive form. The rear wheels often carry as little as 35% of the vehicle mass. This, in combination with the weight transfer that occurs during braking, often makes the rear brakes very ineffective. Expensive constant-velocity (CV) joints have to be employed instead of simple cross-type Hooke’s joints to angle the drive shafts. The shafts are short and run at changing angles as the front wheels swivel and this would cause the Hooke’s joints to introduce a back-and-forth motion at the steering wheel during cornering. The extra weight on the front wheels makes for heavy steering, so that power steering is usually necessary on even the smallest cars. REAR ENGINE; REAR WHEEL DRIVE This layout is no longer common, but has been used on small-scale production Ferraris, Lamborghinis and Toyotas. Volkswagen and Renault have built thousands of cars with this layout. Advantages All the noise-producing components are at the rear. This means that at speed these cars can be very quiet, and this is one of the charms of the VW Beetle. Servicing is often simplified, and in the case of the Beetle the complete engine, gearbox, final drive and cooling fan can be wheeled away as a unit after undoing a few bolts and cables. The greater concentration of mass on the rear wheels improves traction on the road and makes the rear wheel brakes more effective than they would be on a RWD or FWD car. Exhaust systems can be short, resulting in very few mounting supports that tend to break as the miles pile up. There is very little down-force at the front, so that power steering is seldom required. Disadvantages The extra mass at the rear tends to

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promote over-steer, but I’ve owned three Beetles, a Renault 750 and a Simca 1000 with this layout, and the oversteer never bothered me. The light front end increases the tendency to become unstable under windy conditions, and I experienced front wheels lifting off the ground in a strong wind on both the Renault and the Simca. The luggage space is usually at the front of the car, and this location is not always convenient or of a suitable shape. The control cables have a longer route to take from the driver to the engine. NOTE ON OVER- OR UNDER-STEER During cornering, a car seldom responds accurately to steering inputs. Tyre distortion creates an angle between the tyre contact patch centreline and the tyre’s direction of travel. This so-called slip angle is different for each wheel, and increases with cornering speed as well as with the mass carried by each wheel. The car’s stance depends on the difference between the average front slip angle and the average rear slip angle. If the front slip angles are greater than the

rear slip angles during cornering, the car is said to under-steer. The driver will find that he has to rotate the steering wheel more when negotiating a particular corner at speed than when he’s just coasting around the corner. This is regarded as a safe set-up because it means the front wheels will start to slide first when you corner too fast, and most drivers will apply the brakes, which is the correct response. If the rear slip-angles are greater the condition is called over-steer. The steering wheel will have to be rotated less during cornering and the rear wheels will break away first. In this case, braking is likely to make the situation worse. Nevertheless, a slightly over-steering car is preferred by experienced drivers; it increases the driver’s ability to control the car during cornering and makes drifting possible.

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

MARCH 2018



Tickets on sale for SA Bike Festival


he AutoTrader SA Bike Festival, powered by Discovery Channel, is now the market-leading annual showcase in the SA motorcycling calendar, and the third instalment returns to the legendary Kyalami Grand Prix Circuit from 25-27 May 2018. Organisers are delighted to announce that tickets are now on sale for the largest motorcycle festival in Southern Africa, and visitors can again expect another huge variety of the newest biking trends from the world’s top brands alongside live music, test rides, training courses, 2-wheel action and stunts, kids’ activities, Joburg’s favourite food trucks, plus the best in lifestyle and merchandise. The three-day event attracts over 20 000 riders, collectors, motoring enthusiasts and their families from all over the country for one extraordinary weekend where consumers can be entertained and educated as well as learn, try and buy from a multitude of manufacturers and brand leaders, meeting the experts face-to-face. To benefit the dedicated bike clubs, fans and followers of the festival, the first 2000 Standard tickets are just R150, and those

who book early will join the #SABikeFest Inner-Circle giving them first access to the circuit test rides, adventure off-road rides, latest news and industry updates, special offers and value-adds from participating brands and exhibitors. Thanks to an array of innovative brands and returning sponsors, 2018 sees new and exciting ticket packages and special offers to boost even more added value to the visitor experience, plus being offered at 2017 prices. The Jamie's Italian VIP Experience launches for the first time in 2018 and will be located at Race Control in a dedicated conference room on the first floor of the Kyalami Pit Building with views of the starting grid and Monster Energy #FlightNight. It includes a dedicated Pit Roof viewing area, VIP parking, complimentary beers, wine and selected spirits, helmet and jacket storage and a festival branded cup as well as a delicious “Italian Inspired Harvest Table” menu, rooted in authenticity, driven by what you’d find people eating all over Italy. Taking inspiration from the “Italian table” – where people relax, share and enjoy each other’s company – Jamie’s Italian menu will be packed full of antipasti and nibbles,

perfect for sharing, as well as comforting bowls of pasta, beautiful fresh salads and secondi. Visitors who buy the Jamie's Italian VIP Experience before 23 March will receive a 10% discount voucher on their first five festival-favourites “Circuit Test Rides” and “Adventure Ride Outs” when they launch in March 2018. The first 50 of these visitors will also receive a R200 gift voucher to redeem at the Full Throttle stand over the weekend. One lucky VIP ticket holder will also stand a chance to win an Eagle Armor Band valued at R1250 compliments of participating exhibitor Rok Originals. The winner will be announced on 28 February. Back by popular demand, The Sumting Village with tickets available at R495, returns with an all-new location closer to the circuit and near the Monster Energy Activations and “BigRig”. The package includes one delicious meal from our favourite local food truck, Sumting Fresh worth R80, access to a private cash bar inside with selected spirits, beers and soft drinks, a Festival-branded cup, complimentary voucher to secure helmet and jacket storage, plus fast-track access

Scuderia South Africa announces its second Internship Programme for 2018


cuderia South Africa, the official Ferrari dealer proudly announces their 2018 Internship Program. This is the company’s second programme since its launch in June 2017. During the period of the project Scuderia South Africa awarded three young, dynamic interns the opportunity to undertake a comprehensive six-month internship in company sales, marketing and aftersales departments. Given the successful outcome of last year’s programme, the decision was made to relaunch the operation in 2018. “As

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demonstrated in the 2017 programme, interns provide raw talent that can be shaped into targeted and focused employees who can make a long-term contribution to the development of the company. These interns can jump-start their careers through such programmes and have the opportunity to gain greater responsibility, while also building a firm base of contacts and experience as well as gain specialized training during the course of the programme,” says Jan Ungerer, COO of Scuderia South Africa. In 2018, Scuderia South Africa will give a final two individuals the opportunity to

undertake an even more comprehensive twelve month internship at the official Ferrari dealer. Young, ambitious and passionate individuals will be given the opportunity to learn and engage with the brand at an operational level. The platform also offers a valuable opportunity to gain knowledge and understanding of the holistic business model, and contribute in assisting the relevant departments on various different tasks and assignments. Gauteng-based applicants aged between 18-25 years have the opportunity to apply for the anticipated internship through South Africa’s official social media pages.

and VIP parking. It will also provide access to choose and purchase “Circuit Test Rides” and “Adventure Ride Outs” 24 hours in advance of general release, plus including five months free digital issue for Bike SA Magazine worth R140, as well as one free hard copy June issue to be collected in the Sumting Village on the day from the all-new Bike SA Magazine team. For our out-of-towners, Legacy Hotels & Resorts and Legacy Lifestyle have come on board as official hotel and rewards programme partners for 2018, and are bringing with them exclusive specials on accommodation at The DaVINCI Hotel & Suites and/or The Centurion Hotel for those attending SA Bike Festival 2018. Visitors who purchase a Jamie’s Italian VIP Experience ticket will also receive an annual membership to Legacy Lifestyle – Africa’s Premier Luxury Rewards Programme, and can benefit from hundreds of luxury offers from over 200 Legacy Brand Partners. To book a hotel room, please contact the team via the festival website. New for 2018 - The All Action Kid’s Kyalami Pit Roof! A space full of entrylevel cc motorcycles, electric scooters, pocket bikes, ride on and arcade games, funfair food, soft drinks and much more! Whether you have kids or are a kid at heart, this fun- filled area has something

To apply, users are requested to post a recent photo of themselves next to their favourite Ferrari, explaining in 200 words or less why they feel they are the perfect candidate. Aspirants from across the province can apply online using the hashtag #ThePursuitOfExcellence in the hope of qualifying to the next level. Ten of the top applicants will be selected to begin the interview process. “The 2017 Internship Programme pioneered a new venture in our business, a new era for Scuderia South Africa that we look forward to continuing and innovating through for the years to come. It is truly rewarding to be able to empower and support passionate, hardworking and

for everyone and is well lit and secure so that visitors can stay on longer and enjoy the festival’s full activities with all the family. ALL visitors will also be able to have access to the pit roof to view the full circuit’s activities and FMX #FlightNight. The Sunday Charity Ride takes on a new route this year and still provides the opportunity for the public to ride the Kyalami Grand Prix Circuit on their own motorcycles on 27 May. This year the donation choice is yours. We continue our relationship with Ride for a Reason – Claws and Paws, with the ticket contributions starting at R50 per person. However, visitors are also able to participate in our Rambo Blanket Drive where the proceeds will go towards purchasing blankets (R149 per blanket) for local Gauteng communities for the fast-approaching 2018 winter months. The RAMBO bike clubs, dedicated to this annual cause, will distribute the blankets together with groceries to these communities in the weeks following the festival, and together we are uniting with the aim to deliver the highest number of blankets in history. To round up all the action for 2018 - all tickets include (From R150-R950): • Festival Guide and Dunlop Lanyard • Access and variety to test ride the latest and most popular motorcycles around an international race circuit from

determined individuals as they take the first step in advancing their careers. We wish all the applicants the best of luck!” adds Chanelle Zackey, National Marketing Manager at Scuderia South Africa. The Pursuit of Excellence has always been a purpose for Ferrari. This is displayed through unrivalled machinery developed at the Home of Ferrari in Maranello, and through innovation and excellence in their Formula One team, Scuderia Ferrari, and with an unending expression of passion through the years since their inception in 1947. The 2018 Internship programme is scheduled to commence at Scuderia Johannesburg on 5 March 2018, to ultimately fulfil the programme objective the pursuit of excellence.

Husqvarna, Suzuki, Honda, HarleyDavidson, Zontes, Yamaha, Indian Motorcycles, and KTM to name some (R100-R160 per ride) • Opportunity to purchase Adventure Ride Outs on a 2km off-road course from our favourite machines, with guidance from the experts from KTM, Honda, Suzuki and more. (R100 per ride) • Grandstand seating to view Monster Energy’s second instalment of the nighttime FMX stunt show #FlightNight and our favourite trial biking brother duo, The Le Riche Brothers. • The Martini MotoGP Bar • Access and voting of the RocoMamas Custom, Vintage, Classic & Retro Motorcycle Championship with international custom judge and builder from Germany, Frank Sander, and local Classic expert, Robert Coutts, from the 2 Stroke Club • Flat track racing and Scooter and Commuter testing for beginners • Opportunity to “Auction” your own motorcycle or buy “Nearly New” from the team at AutoTrader • Learn to Ride activities and training with the team from Harley-Davidson The #SABikeFest team is looking forward to yet another fantastic, market-leading event, and together with headline sponsors, AutoTrader and Discovery Channel, the three powerhouses are also pleased to announce the official brand ambassadors, George Mienie, CEO of AutoTrader, the “Voice of Choice for the SA Motor Industry” Greg Moloney, as well as advocate of revolution in freedom, equality and mobility, “Biker Queen” Seipei Mashugane. The combined intention from the motorcycle industry for 2018 and beyond is that, “United we are STRONGER, and TOGETHER we can drive the industry forward.” Motorcycling can offer independence, mobility and an alternate and cost-effective means of transport for SA Commuters. During these difficult global economic times, by highlighting and raising awareness of the positive impact two wheels can have for South Africa’s future, we can have a positive impact on environmental and economical solutions.




BMW Plant Rosslyn opens new Training Academy


MW Group South Africa is taking training and development to the next level at its new R73 million Plant Rosslyn Training Academy. The stateof-the-art, 6000m² facility is able to host a staggering 300 apprentices per year. In 1978, exactly 40 years ago, BMW Group South Africa opened its first training centre at BMW Plant Rosslyn. Development and empowerment of workers for the automotive and manufacturing sectors has been a focus ever since. Even in this pre-democracy era, the company was ahead of the time in training learners, irrespective of their ethnic background. In those 40 years we have provided millions of training hours to uplift our people. Close to 2000 people were employed by BMW Plant Rosslyn, after successfully being trained at the Training Academy. Today, BMW Group South Africa is again a leader in ensuring that training is aligned with global trends and industry needs.

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Tim Abbott, CEO BMW Group South Africa and Sub-Saharan Africa, says: “Global automotive production stands on the brink of momentous change with an increased focus on digitalisation and electrification. The workforce of tomorrow needs to keep pace with these trends. At BMW Group South Africa we are investing in the skills of the future.” New facility prioritises technology and interactive learning The facility focuses on both theoretical knowledge and practical application. A stimulating and interactive learning experience has been created through the innovative use of technology and digitalisation. Modern manufacturing skills such as robot programming, Advanced Computer Numerical Control (CNC) simulation and training on electric vehicles have been included in the new Academy. An accredited Trade Test Centre has been incorporated into the building,

allowing learners to achieve their trade qualification in-house. This functionality will also be extended to the public in the course of 2018. Minister, Prof Hlengiwe Mkhize (Department of Higher Education and Training) adds: “In June 2017, Cabinet approved the Human Resource Development Strategy towards 2030. One of the strategy programmes talks to the skills that are produced based on the partnerships that can be encouraged within the country. The country can only achieve this if companies such as BMW continue to encourage Work-Integrated Learning. Students from the TVET colleges will benefit immensely with such partnerships.” Charissa Hector, BMW Group South Africa Human Resources Director, says: “Over the years, our training facility has certainly supplied a high percentage of the skilled workforce in the motor industry, including the extended value chain of suppliers and dealerships. We are also proud of the career growth trajectory of learners that have been absorbed into our own workforce, including the recent appointment of a Training Academy graduate as the first black female Production Manager in our Assembly plant.” The Training Academy will continue to provide skills development for existing BMW Group South Africa employees and managers. This includes training on the advanced technologies that will be used in the production of the new BMW X3, which will kick off within a couple of months. In addition, the following programmes will be offered for external applicants: Learnerships: • Mechatronics • Autotronics Trades: • Millwright • Electrician • Fitter • Fitter and turner • Motor mechanic • Spray painter • Panel beater

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? 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?


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.

It’s about caring for people we render services to

How does one apply to enter an apprenticeship programme?


Ÿ If you are unemployed, you may apply to a company that is offering

It’s about working together with colleagues

an apprenticeship programme; or

Ÿ If you are employed, consult with your employer as to the

requirements and correct procedures to be followed to enter an apprenticeship programme.


It’s about going beyond the call of duty


w @mersetasocial

merSETA Social

Human Rights Day

21 March 2018


MARCH 2018 -



Partinform Bethlehem T he town of Bethlehem hosted the first Partinform event of the year at the Loft Guest House and, with more than 80 automotive business owners attending, was a great success.

Great interest was shown at the various stands with members answering questions about their brands and products. The evening quiz show was, as always, great fun as contestants were asked questions about the brands and products on display. The winner, who will compete at the Xtreme Karting event, was Tefo, a loyal client of Midas in Bethlehem. The sponsors of the prizes for the evening were Bosch, ATE, Federal Mogul and First National Battery (Exide). Partinform members went to great lengths to ensure that their stands were attractive and well laid-out. The judges had a hard time deciding on the best stand of the evening, but eventually decided on the Quick Brake stand. The RMI continues to support Partinform and uses the event to inform visitors about the benefits of good quality parts and services. The RMI stand always attracts attention, with visitors asking many questions about the organisation and the benefits of belonging to the RMI. With the Partinform events moving around the country, the shows continue to be popular with the automotive community, and are seen to be informative, with the focus on promoting the advantages of using quality brands in maintenance, service and repairs. The next event takes place on 7 March at the Aloe Grove Guest farm in Queenstown, before it moves to Rustenburg on 11 April.

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Exceed Your Business Goals in 2018 As the year begins, businesses all over the world have renewed (or established) the goals that they are aiming to achieve, says Pieter Scholtz


hether you want to increase yearly profits by 20%, open a new location, hire an additional person, or even find a way to take more time off, you’ll have to chart out a road map that will ultimately get you to your desired destination. That’s the part of achievement that trips a lot of people up: the more ambitious your goal is, the more work (and creativity) you’re going to have to put in in order to achieve it. If you want to exceed even your wildest goals, you’re going to have to break out of the mould of convention. Being successful doesn’t necessarily require you to do something completely radical and untested. In many cases, applying existing models in a way that you haven’t yet tried is enough to make your dream a reality. For example, if you aren’t making much use of social media, now might be the time to open up a new Instagram account. This, and many other methods, will go a long way towards accomplishing every goal you set out to meet well before the year ends!

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The business community offers tons of resources that will help you get started. You’re never alone, no matter what industry you work in – and this article will help you take the first meaningful step in the New Year. Use the power of social media This bears mentioning twice. What makes social media such a powerful platform is that it has the potential to generate huge amounts of positive (or negative!) publicity with minimal effort. Instead of investing in expensive advertising campaigns, you can instead create and upload a video that goes viral and exposes your brand name to millions of people across the world. If you don’t have a Facebook or Instagram account, look

into starting and maintaining one. A blog can be a great way to relate to customers on a personal level, and expand upon everything that you stand for as a company. Twitter and Snapchat can also be useful as well. People from every country on Earth use these platforms, so join them! Create lists Words are fleeting; they are easy to say, but they fade away and leave no trace of their existence. If you merely state your goals verbally, it’s easy to blow them off and forget what it was that you hoped to achieve. Put your words to paper, and they will now exist in a much more real, tangible format. Each week, create and/or update lists of everything that you need or want to have accomplished. Mark off the things that you have accomplished, and make a physical note of what you haven’t. By creating lists, you’ll not only be reminded of what it is that you set out to accomplish, but you’ll be able to SEE your progress throughout days, weeks, months, and even years. That is an incredibly motivating feeling, one that many entrepreneurs swear by! Start using analytics Analytics involves the careful analysis of data. Generally speaking, you’ll construct a set of statistical models based upon all the information you collect regarding your customer’s spending habits, browsing, search queries, and so forth. Analytics are used to better target and pinpoint exactly what it is that your customers want and respond to. Many businesses have failed because they failed to capture exactly what it was that their customers wanted and liked about their business. If you want to ensure that you maintain the loyalty of your existing clientele while accurately targeting new customers, analytics is a great tool to make that happen.

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 WelbyCooke developed ActionCOACH across Southern Africa, which now boasts over 40 franchises. 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. / 012 665 1015

SPACE AVAILABLE AT : 10 000 m2 - Ground Floor (Production Space Available)

1625 m2 - First Floor (Office Space Available) EXISTING TENANT



MARCH 2018 -



POPI vs PAIA What is the difference between PAIA and POPI?

• PAIA aims to promote the free flow of information (That should be public information) • POPI aims at to protect the flow of information (That should not be public domain, i.e. personal identity, contact details, residential addresses and many more….) How can these Acts impact on you or your business? PAIA (Promotion of Access to Information Act 2002): • PAIA is structured to allow for the application of section 32 of the Constitution of the Republic of South Africa. • The purpose of this legislation is to promote transparency, accountability and governance both in the private and public sectors The need for a manual: Manual Not Required • Does your business exceed R45 million turnover per year? • Do you employ more than 50 people? • If you answer NO to both of these two criteria, there is no need in the Retail Motor Industry for a manual to be prepared by you or for you. (note: other industries have varying values associated) Manual Required • If you answer YES to either or both of

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the questions, you will be required to draft a PAIA manual known as a Section 51 Manual with the South African Human Rights Commission (SAHRC) • The manual must contain details of the business, such as the postal and street address, phone and fax number, and the electronic mail address of the head of the company, at the very least. The manual must also have sufficient details to facilitate a request for access to a record of the business, a description of the subjects in which the business holds records, and the categories of the records. • The Department of Justice and Constitutional Development, however, extended the exemption for certain private companies to compile a manual to 31 December 2020. Who can request records from a business? Anyone can ask for records from a private body (business), but the record must be needed for the exercise or protection of a right. What kinds of information can be requested from a business? • The act defines a record as any recorded information that is in the possession or under the control of that business. • The act gives the right to request information from businesses. However,

the right only exists to the extent that the record is required for the exercise and protection of rights. • The act gives the head of a private body(business) the right to refuse to disclose certain records in certain scenarios, for example the • Unreasonable disclosure of private information about a third party • Trade secrets • If the disclosure could reasonably expect to endanger the safety of an individual, etc. POPI (Protection of personal information): • POPI is to protect personal information from being: o re-sold o causing inconvenience o damage o Loss or fraud related to the resale and use of that information. • PoPI impacts on any personal information that is being gathered by companies. It clearly outlines: o The manner in which information should be stored o What care should be taken in dealing with that information o When that information has to be purged o Allows for no deviation from these rules. • The purpose of the Act is to protect personal information, to strike a balance between the right to privacy and the need for the free flow of, and access to information, and to regulate how personal information is processed. Examples of “personal information” for an individual could include but limited to: • Identity and/or passport number • Date of birth and age • Phone number/s (including mobile phone number) • Email address/es • Online/Instant messaging identifiers • Physical address • Gender, Race and Ethnic origin • Photos, voice recordings, video footage (also CCTV), biometric data • Marital/Relationship status and Family relations • Criminal record • Private correspondence

• Religious or philosophical beliefs including personal and political opinions • Employment history and salary information • Financial information • Education information • Physical and mental health information including medical history, blood type, details on your sex life • Membership to organisations/unions

All of these entities are considered to be “data subjects” and afforded the same right to protection of their information. So this means that while you as a consumer now have more rights and protection, you and your company/ organisation are considered “responsible parties” and have the same obligation to protect other party’s personal information.

WHO DOES THE ACT APPLY TO? • The Act applies to anyone who keeps any type of records relating to the personal information of anyone, unless those records are subject to other legislation which protects such information more stringently. • It therefore sets the minimum standards for the protection of personal information. • It regulates personal information “PROCESSING” which includes: o Collecting, o Receiving, o Recording, o Organising, o Retrieving o Using such information o Disseminating o Distributing or making such personal information available.

As a company this would include protecting information about your • employees • suppliers • vendors • service providers • Business partners, etc.

• The Act will also relate to records which you already have in your possession. Modern technology makes it easy to access, collect and process high volumes of data at high speeds. This information can then be sold, used for further processing and/or applied towards other ends. In the wrong hands such ability can cause irreparable harm to individuals and companies. To protect your right to privacy and abuse of your information, data protection legislation is necessary, even if it means imposing some social limits on society to balance the technological progress. It is important to note, though, that this right to protection of “personal information” is not just applicable to a natural person (i.e. an individual) but any legal entity, including companies and also communities or other legally recognised organisations.

Any company that keeps personal information is required to take steps to prevent the • Loss • Damage • Unauthorised destruction of the personal information. • Prevent unlawful access • Unlawful processing. Businesses are required to identify all risks and establish and maintain safeguards against these identified risks. As usual, ignorance of the law is no excuse. Incorporating POPI into the dayto-day operations of your business will most likely require a significant amount of time and effort, including: educating and training staff, updating business processes and implementing or updating technology solutions. The road to compliance: 1. conduct an audit of all systems to understand: a. what data is held, b. where it is held c. Identify where the gaps are. 2. Determine what measures will be needed, whether interim or longterm, and then to put these in place accordingly. 3. a full assessment of all internal systems users to ascertain what: a. profiles need to be added, b. What access permissions need to be

modified, granted or taken away. 4. Ensure there are proper policies and procedures in place for the dissemination of any information into and out of the company. NOTE: It is important to make sure user management measures are in place and implemented properly throughout the organisation. If this is not managed properly, it can become a bit chaotic over time. CONSEQUENCES OF NON-COMPLIANCE Should there be interference with a data subject’s protection of personal information, the aggrieved party may lodge a complaint with the Information Regulator. A negotiated settlement is one of the possible outcomes of the complaints procedure. The Regulator does not require a court order to institute a fine for negligence or non-compliance in favour of the aggrieved party in terms of POPI. POPI further provides for civil remedies where the court may award amounts that, in its discretion, are just and equitable. Such amounts include: • Payment for damages as compensation for losses suffered by a data subject as a result of a breach of a provision of POPI • Aggravated damages • Interest, and • Costs on a scale as determined by the court. For any party being convicted of an offence in terms of POPI. • A maximum period of imprisonment of 10 years • An undisclosed maximum fine can be levied. • The Regulator may institute administrative fines up to an amount of R10 million. Please note the above is a brief analysis of two extremely complex pieces of legislation, and its purpose is to provide a brief understanding of the two acts. However, should you require any further information on these subjects please feel free to contact the regulatory compliance manager, Julian Pillay on 0825606625 or

MARCH 2018 -



SARS â&#x20AC;&#x201C; Navigating compromises In the current economic climate, South African businesses find themselves in a constant battle for positive cash flow in order to effectively run their businesses. Unfortunately, achieving a positive cash flow is challenging, and businesses often default on payments to creditors, of whom SARS is not an exception.

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nder the current legislation, businesses act as collecting agents on behalf of SARS for PAYE and VAT. Therefore, monies designated for PAYE and VAT do not belong to the business and should not be utilised for business purposes. However, when cash flow becomes tight, companies sometimes utilise these cash reserves originally earmarked for these taxes. It is then hoped to make up the cash flow at a later stage in order to pay these outstanding taxes. The unfortunate truth is that once payments are missed they are rarely made up and often lead to a snowball effect where the business is so deep in debt with SARS that they cannot get out of it. In such circumstances businesses either find themselves in a situation where: a. They cannot or do not know how to approach SARS in order to structure an agreement that is both affordable and acceptable to SARS, and therefore ignore the requests; or b. They accept terms given by SARS, that in most instances are not affordable, and then default on the agreement. Both these instances lead to further collection proceedings by SARS, resulting in funds having been withdrawn from their accounts or the sheriff at their doorstep. The question then arises - how can a business manage this process by achieving terms that are both affordable to the business and acceptable to SARS and still continue to trade without SARS closing down the business? The answer lies in the Tax Administration Act 28 of 2011 (â&#x20AC;&#x153;the Actâ&#x20AC;?) which makes provision for a settlement in the form of a compromise under section 200 of the Act. Making use of this provision can assist a business in reaching an agreement with SARS, which in turn will allow the business to become compliant once again. According to section 200, a senior SARS official may authorise a compromise

of a portion of a tax debt upon a request lodged by a person or entity indebted to SARS, if the purpose of the compromise is to secure the highest net return from the recovery of the tax debt and if the compromise is consistent with considerations of good management of the tax system and administrative efficiency. In order to make use of the remedy contained in section 200, a formal application has to be submitted to SARS, requesting a compromise. The application has to be accompanied by the necessary supporting documents as set out in section 201 of the Act. The supporting documents and request must support the contention that the applicant is not in a position to make payment of the full amount of the tax debt. A senior SARS official must give all the necessary considerations as set out in section 202 of the Act before a decision is made on the application for a compromise. Once a compromise is reached, SARS and the applicant will sign a formal agreement setting out the terms as set out in section 203 of the Act. Tax Laws are ever changing and can cause turbulent waters, especially for emerging businesses. It is therefore advisable that businesses and business owners ensure that they are informed of changes in Tax practice and legislation, and that they receive not only correct advice, but also proper assistance when having to deal with Tax disputes. Gerhard Linde is a master tax practitioner at Barnard Incorporated attorneys. 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)

MARCH 2018 -




hen an Employer receives a formal notification for a setdown (from the CCMA or a Bargaining Council) it can be nervewracking - especially if the Employer is not accustomed to dealing with such disputes regularly. Moreover, having to postpone such an important date will certainly impact adversely on the already drawn nerves. Fortunately, each specific industry has relevant rules governing the process when applying for a postponement. The aim of this article is to contemplate postponement in arbitration matters, which could (but should not) be a dire situation for Employers. Postponing a scheduled arbitration assembly must be done in accordance with the aforementioned rules. These rules are generally determined by the jurisdiction of a specific forum.

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The said jurisdiction of a forum also refers to the forum’s required power to arbitrate the relevant matter at hand. When determining the precise rules to follow, it is imperative for Employers to determine whether their business falls within the scope of a bargaining council. Certain industries are regulated by a bargaining council with its own main agreement. For example, the steel industry will be regulated by the Metal Engineering Industries Council (MEIBC); any entities falling within the ambit of logistics and the transport of goods for reward will be regulated by the Road Freight and Logistics Industry (NBCRFLI) and entities involved in the motor sector will typically be regulated by the Motor Industry Bargaining Council (MIBCO). Each of these councils generally has its own set of rules to follow when dealing with industry-specific disputes. These rules shall determine the correct avenue to follow when a postponement would be required.

been scheduled. The 21 days’ notice period shall commence the day that the DRC has delivered the notice of set-down. It is significant to note that if a set-down notice is sent by way of registered post, an additional 7 days’ notice time is awarded. Rule 24 of the Rules of the DRC specifically deals with the postponement of an Arbitration conference. An Arbitration may either be postponed by: Agreement between the parties; or By application and on notice to the other party, i.e. Sub-Rule 3. Rule 32 of the DRC’s rules becomes relevant and reads as follows: 32 How to bring an Application 1) This Rule applies to any – a) Application for condonation, joinder, substitution, variation, rescission, consolidation, separation or postponement; b) Application in a jurisdictional dispute; and c) Other preliminary or interlocutory application.

If the Employer’s business does not fall under the scope of any bargaining council, the Commission for Conciliation, Mediation and Arbitration (CCMA) will be the governing body, and its rules shall apply. It is noteworthy that the rules of Bargaining Councils and the CCMA relating to disputes do not differ that much.

2) An application must be brought at least fourteen (14) days prior to the date of the hearing and notice must be given to all persons who have an interest in the application.

If the Notice of a Set Down is received from the DRC (Motor Industry) the postponement of such an arbitration will be dealt with in accordance with the rules of the DRC.

The application will consist of a notice together with an affidavit. The notice must be signed by the party that brings the application and should comprise the following information:

In terms of Rule 22 of the Dispute Resolution Centre (DRC) for the Motor Industry’s rules, the DRC must notify the parties in writing of the pending arbitration hearing at least 21 (twentyone) days prior to the date that it has

1. The case number that has been allocated to the matter – if that has been done; 2. The relief the parties are seeking; 3. The title of the matter; 4. Address where the party delivering

the affidavit will accept delivery; 5. Affording the other party – should they wish to oppose – the opportunity to oppose the application within 14 days; 6. Clearly state that the application can be heard in the absence of opposing papers; 7. A list of all documents that are relevant. The affidavit that needs to accompany the notice must set out the following information clearly and briefly: 1. The parties’ names, descriptions and addresses; 2. In chronological order, all relevant facts on which the application is based; 3. Statement of legal issues; 4. If the application is brought out of the allowed time frame, the reasons for same in the form of a condonation application; 5. If the matter is urgent, reasons as to why the application cannot be dealt with in accordance with the time frames prescribed by the rules. After the DRC has considered the application it may: 1. Postpone the matter; 2. Convene a hearing to determine whether the matter should be postponed. The DRC should postpone a matter without parties appearing if: 1. Such a postponement is done in accordance with an agreement; 2. A written agreement is received by the DRC at least seven days prior to the scheduled date of the arbitration. When contemplating the postponement of an Arbitration meeting, the

MARCH 2018 -


LABOUR party wanting to apply for such a postponement must have valid and compelling reasons for requesting such a postponement, as well as comprehensive evidence that substantiates the postponement, which should be provided to the Council or Commission. For example, if the Employer has made travel arrangements prior to receiving a set-down date, it is vital to provide proof of such arrangements by way of flight tickets or a booking confirmation of accommodation. The same is relevant for instances where an Employer falls ill prior to the matter being heard. The Employer should then submit proof (of his/her inability to attend the Arbitration) in the form of a medical certificate.

Postponements are not easily granted, and the Commissioner can decide to either grant or refuse any application for a postponement, as there is no right to such a postponement. This was confirmed in the matter of The Only Professional Modern Autobody CC t/a Modern Collision Centre v MISA obo PJ Gouws and 2 others and Voster vs CCMA and Others. Based on the fact that postponements are not easily granted (and a limitation exists on the compensation that can be awarded) it would be in the interest of the applicant to rather have the matter finalised. When applying for a postponement, one should always

be mindful of this fact and ensure proper preparation of the scheduled matter, should the postponement not be granted (Coin Security Group (Pty) Ltd v Mshengu and others). In conclusion, it is clear that postponement of a scheduled conciliation or arbitration hearing can be a difficult task for whoever is applying for such a postponement. However, a postponement application need not be feared if an applicant can authenticate the request for postponement, and it should be borne in mind that postponements are provided for by the governing rules of the relevant forum.

IR Services on offer RMI member benefits are both tangible and intangible, some at an additional cost while others are free to the member. Others may be core benefits as opposed to Associational specific benefits. Perhaps the best advice that we can give, is that you make use of the labour relations’ services available from the RMI office in your area. A telephone call – before you take action against an employee – can only be to your advantage. OUR IR SERVICES • Highly qualified IR specialists at 6 regional offices. • Free telephonic IR advice on employment issues. Professional industrial relations advice by expert specialists, ensuring procedural and substantive fairness when disciplining staff. • Highly competitive low-priced, onsite IR advice and assistance by skilled IR staff. • Chairing of disciplinary hearings and AUTOMATIC entry and representation at the CCMA, DRC and Labour Court. • Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses. • Free IR guide pack on joining (IR Kit).

Details of IR Specialists per region are as follows: IR Contacts Northern Region

Devendren Naidoo (012) 348 9311

Highveld Region

Tumelo Mnisi

(011) 886 6300

Eastern Cape Region

Eckardt Oelofse

(041) 364-0070

Free State & Northern Cape Region

Jacques Viljoen

(051) 430-3294

Western Cape Region

Brent Barichievy

(021) 939 9440

Western Cape Region

Johanita Olivier

(021) 939-9440

Kwazulu Natal Region

Janina Kalidass

(031) 266-7031

Douw Breed is a director at Barnard Incorporated Attorneys, Centurion

48 - MARCH 2018


Excellence for professionals Bosch air conditioning service units for R-134a and R-1234yf What drives you, drives us. David Furlonger

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Used lubricant oil contains harmful compounds and carcinogens, and one litre of used oil can contaminate one million litres of water.


ecause of this, used oil – which is a common by-product of mechanised processes in all industry sectors - is classified as a hazardous waste, and is strictly governed by environmental laws and, more specifically, the requirements of the Waste Act.

flowbins make effective storage vessels for used oil. However, DO NOT use a container that previously held chemicals, such as cleaners, solvents, fuels, paint or bleach. Always clearly label the container “Used Lube Oil.”

The ROSE Foundation has been championing the responsible collection and removal of used oil for proper recycling since 1994 and offers the following advice to used oil generators:

Keep these containers in a place that can be accessed by a ROSEregistered used oil collector, and keep the surrounding area clear and clean. Ideally store them under cover and away from heat or sources of ignition.

20kg used lubrication oil per day must be registered on SAWIS Four car oil changes a day, or one truck oil change per day, will require registration as a generator of Hazardous waste. In short, if you get in excess of 20kg of used oil per day, you are required to register on the South African Waste Information System (SAWIS). The proper collection and storage of used oil Used oil finds its way into our water table through disposal in drains and storm water drains and by being poured directly onto the ground as either a dust suppressant or as a means of disposal. To prevent oil from finding its way into drains and storm water drains, ensure that you store the oil in a container that is not leaking. Steel or plastic

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Ensure that you do not mix used oil with other fluids such as antifreeze, transmission fluid, petrol, diesel, etc. Mixing them may make them non-recyclable as well as very hazardous and flammable. The removal of used oil for responsible recycling Used oil generators are urged to gather and store their used oil for responsible collection by a ROSEregistered oil collector who will come and remove the oil and take it to be recycled in an environmentally

compliant and safe manner. Your collector must always issue you with a safe disposal certificate which is now required by law under the Waste Act. This safe disposal certificate issued by ROSE-registered collectors also acts as a Hazardous Waste Manifest, thereby fulfilling the requirements of reporting by law, the same information can be used on SAWIS. For more information and to find out about a registered used oil collector, contact the ROSE Foundation on (021) 448 7492 or visit

The flexible way to book your service

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The contents of this publication are subject to the Disclaimer found at Š2017 CDK Global. All rights reserved. RM 10-17 V1.0



It’s about caring for people we render services to.


It’s about working together with colleagues.

@mersetasocial WE SERVE:

It’s about going beyond the call of duty.


52 - FEBRUARY 2018

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


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


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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 Tel: 0861 637 732 Fax: 021 914 8131 CAL L CENTRE Tel: 086 163 7732

MARCH 2018



Join the club Ford Trade Club set to revolutionise parts supply to independent service outlets


ord Motor Company of Southern Africa is expanding its support for independent vehicle service outlets with the launch of the Ford Trade Club, which supplies thousands of Ford Genuine and Ford Motorcraft parts to members, for servicing and maintaining a wide variety of Ford models. “As long as the vehicle is covered by the standard service plan and warranty period, most Ford owners will have their car serviced at a Ford dealer. But on older Ford models, customers often change to independent service centres due to convenience, location, or a perception of price,” says John Segaar, Ford Customer Service Division Regional Manager for South Africa. “We acknowledge that Ford dealers and independent outlets both have an important role to play in keeping Ford drivers happy. However, until now, we have not had a uniform programme that can serve the independents, and that’s what the new Ford Trade Club aims to do,” Segaar states. As the vehicle gets older, price becomes a more prominent factor in maintaining a vehicle. However, Ford’s extensive research has shown that, given a choice, the independents would prefer to fit genuine Ford parts because they know the quality and efficiency of a first-time fit. Segaar adds: “Customers also feel reassured, as the parts were designed and tested by Ford for their vehicle, and are backed by a comprehensive Ford warranty.” Ford Trade Club membership is open to most South African service and repair outlets, bodyshops and fleet workshops, giving members access

54 - MARCH 2018

to over 2 000 popular Ford Genuine and Ford Motorcraft parts at special prices. Ford Trade Club members have access to an exclusive website where they can view the parts, obtain product information and order online. Parts can also be purchased directly through Ford dealers by Trade Club members.

“Over 1 500 independent outlets have already enrolled in the Ford Trade Club, and we are developing the programme into something that will be seen as a significant turning point in the South African original equipment (OE) aftermarket,” Segaar concludes.

The list of parts includes regular service items such as filters and spark plugs, along with brakes; cooling and airconditioning systems; electrical and lighting; steering and suspension; clutches, turbochargers and exhausts, as well as sensors and control valves. Additionally, the full range of approved Motorcraft oils, lubricants and antifreeze products are available. A wide range of Ford models are covered, including the Ford Bantam (from 1993), Fiesta (1996-on), Ikon (1999-on), EcoSport (2013-on), Figo (2010-on), Kuga (2011-on), Everest (2009-on), Focus (1998-on) and Ranger (1999-on).

John Segaar, Ford Customer Service Regional Manager

Driven by


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.

What drives you, drives us




Behr Hella Service â&#x20AC;&#x201C; Your Thermal Management solution Behr â&#x20AC;&#x201D; an experienced systems partner to the international automotive industry. Quality since 1905.


hrough its renowned expertise as an original equipment manufacturer, Behr has produced genuine quality products for more than 100 years, offering optimal safety through the use of cooling-system products. Behr components are matched to each other perfectly, and achieve unsurpassed cooling efficiency. For instance, they not only protect the engine against costly damage caused by overheating, but also ensure optimum performance, environmental sustainability and engine service life. Behr's many years of experience and extensive expertise guarantee the exceptional quality of all its products. Modern engine-cooling systems make a significant contribution to reducing emissions and consumption. Engine cooling and vehicle airconditioning go hand-in-hand with modern thermal management. Thermal management refers to optimum engine temperature in all operating states, as well the heating and cooling of

56 - MARCH 2018

the vehicle interior. Consequently, a modern thermal management system consists of engine-cooling and airconditioning components. Components of these two assemblies often influence each other and are treated as one unit. The role of cooling systems has expanded constantly in recent years. Due to demands for greater efficiency and cost-effectiveness, as well as factors such as greater payloads, turbocharger technology, vehicle parking heaters and air-conditioning systems, traditional engine cooling has evolved into a complex engine-cooling system. An increase in operating temperature of approximately 10% is necessary in order to meet the more stringent emission laws of the future. This is the only way to ensure optimised combustion. However, increased temperature also means the need for increased cooling performance so that an engine can reliably achieve its mileage performance. Leading research and development expertise for well-engineered system components.

Behr's success is founded on innovation. The far-reaching research and development form the basis of this success, enabling Behr to develop innovative and high-quality products. The latest software during product development helps establish performance, reliability and quality as the key factors. This continues as part of extensive testing under real-life conditions that are carried out using in-house testing facilities such as an engine test station or the state-of-theart climatic wind tunnel. Innovative production expertise. Behr guarantees the ultimate quality of all its products through company-wide advanced production technologies. High-accuracy development delivers precise accuracy of fit for all Behr components. Comprehensive quality assurance systems also ensure the durability and reliability of all products. Behr quality, available from Parts Incorporated Africa warehouses, Silverton Radiator Engine Cooling Specialists, BHS Aircon Agents and select Midas Stores, nationally.

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FOR ANY ENQUIRIES PLEASE CONTACT: Samantha Mvakali : 012 564 5046 / Kopano Mokwena :012 564 5323 / MARCH 2018 -



Get Ready for the Largest Tyre Community gathering In less than two months, visitors to the 7th edition of Tyrexpo Africa will come face-to-face with the widest range of tyre brands ever assembled at a trade show. Tyrexpo will take place at the Gallagher Convention Centre Hall 2, 10 – 12 April 2018. More than 150 exhibitors and 3 000 visitors are expected at the show.


n addition to passenger car, truck, OTR, industrial and agricultural tyres, the exhibition will also be an important showcase for retreading, tyre repair equipment, tyre accessories, and recycling sectors.

Among the many leading Africanbased companies that are exhibiting are O’Green Metaforge and Exclusive Tyres. The three-day event is also reinforced by the presence of dozens of international players such as ELGI Rubber, Global Tap Pte Ltd, Melangor (Birla Tyres), Salvadori, Stamford Tyres International, Sun Rubber Industry Sdn Bhd, Nankang Tyres, Tionale Pte Ltd, Daeho Industry, Grupo Soledad, and many more. Apart from the exhibition, as a visitor you can look forward to hearing insightful sharing from thought-leaders on the industry, key challenges, and opportunities pertinent to the continually growing tyre market in Africa through the Tyrexpo Industry Conference. Topics such as South Africa’s tyre waste plan, informal sector growth, tyre recycling, right to repair, legal and dispute resolution in the automotive industry, autoparts remanufacturing and more will be discussed.

To maximise ROI for exhibitors as well as visitors, comprehensive business matching arrangements will take place, to ensure a fruitful visit. You can also maximise your time by visiting the inaugural edition of GarageXpo Africa and RubberTech South Africa, located within the same hall. Register your visit at www.tyrexpoafrica. com before 15 March 2018 and stand a chance to win a Lenovo Tablet. For more information, contact Linda Christina at +65 6403 2126 or email

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 Contact Greg Surgeon on 083 449 6137 or E Mail

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MARCH 2018




Experts from the RMI answer questions on understanding the lifespan of your car parts Q: How do you check the age of your tyres? A: Niemand says while car, tyre, and rubber manufacturers differ in their opinions about the lifespan of a tyre, the DOT-code on the inside of the tyre provides information on the production date. Tyres produced after 2000 have a four-digit DOT code instead of three. “The first two digits indicate the production week and the second two are the year,” he explains. “While some tyre manufacturers swear by the fact that tyres can last for 10 years, it’s impossible to judge how long a tyre will last, since factors such as heat, storage and conditions of use reduce the life of a tyre.”

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Niemand points out that our South African climate definitely contributes to the aging of our tyres, as exposure to sunlight, heat and, especially, coastal conditions are known for weathering rubber. “It’s important to bear in mind that this principle also applies to spare tyres and tyres that are sitting in a garage or shop. Consider how a spare tyre lives its life. If you own a truck, the spare may be mounted underneath the vehicle, exposed to the dirt and the elements. If your spare is kept in the boot, it’s baking in a miniature oven all day.” While most spare tyres never see the light of day, if a tyre has been inflated and mounted on a wheel, it is technically in service even if it’s never been used. A tyre that has not been mounted and is just C

60 - FEBRUARY 2018




sitting in a shop or garage will age more slowly than one that has been put into service on a car. But it ages nonetheless. Niemand encourages car owners to avoid buying used tyres and to check the date on all new tyres purchased. “Just because a tyre looks new doesn’t mean it wasn’t manufactured years ago and has been left standing in a shop, aging while it waits.” “The safety hazards of driving on an old tyre should not be underestimated. Speak to your local workshop mechanic about the age and condition of your tyres. Don’t leave it until an accident happens. By then it will be too late and the consequences may be dire,” he warns. MY




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TROUBLESHOOTING MADE EASY Autodata, a leading provider of automotive technical information, shares OEM verified solutions to common problems found in modern motor vehicles. To learn more about Autodata’s innovative online workshop tools, visit BMW 1 SERIES WHINING NOISE UNDER VEHICLE Question: A customer’s 2012 BMW 1-Series emits a whining-type noise that comes from under the vehicle when driving above 90km/h. During a road test we confirmed that the noise was manifest but we cannot trace the source of the fault. We have checked all the screws that hold the underbody shields in place and are satisfied that they have been correctly torqued. We cannot see anything else that could be causing the problem. Can you help? Answer: Yes, we have come across this fault on several BMW models and it is due to excessive clearance between the front and centre underbody shields. Remove the centre underbody shield then thoroughly clean it in the area indicated in the illustration. Fit a foam pad – available from BMW Parts – to the cleaned area. Refit the centre underbody shield and carry out a road test to ensure the noise has been eliminated.

PEUGEOT 207- CLONKING NOISE WHEN MOVING OFF Question: We are having trouble diagnosing a clonking noise on a 2009 Peugeot 207 when moving off or changing from forward direction to reverse direction. We can hear the noise and have traced it to the LH front corner of the vehicle. We have checked the steering, suspension and driveshaft components but cannot find the source of the fault in that area. Do you have any ideas as to what could be causing the noise? Answer: This fault has been reported by other 207 owners and is due to movement between the front wheel bearing and the hub carrier. Remove the front wheel bearing from the hub carrier, then apply a light coating of grease (available from Peugeot parts departments), to the area indicated in figure 1. Ensure the ABS wheel speed sensor is free from grease, then fit a modified front wheel bearing. Repeat the procedure for the opposite side, then carry out a road test to confirm the fault has been rectified.

62 MARCH 2018

MARCH 2018



The RMI welcomes these new businesses into membership

A ASAP Motors Audi Claremont Auto Classic Speedshop Autoking Performance Centre C Car Care Clinic Lynnwood 05 Central Institute of Technology

Sandton Claremont East London Durban Pretoria Polokwane


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.



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

• • • •

212 Soutter Street, Pretoria West, 0183 Tel : +27 (0)12 327 2586 Fax : +27 (0)12 327 6211

D De Jonghs Panelbeating Centre Detomaso Trading F French Car Specialist G Gearbox and Diff Centre H HFS Hydraulics Hi-Q Ballito Hofbro Autobody M Malherbe Service Centre Mashobane Auto Service and Towing Maxell Auto Dent Moja Tech Campus Motor & Tyre My Auto Serv P Precision Repair Centre Pule Ngoato Tshepiso Trading R R & P Autobody Radiator King Rest Assured Holdings Road Ranger Transport S Selano Motors Sesfikile Towing and Recovery Shao Rescue & Towing Service SMG Ballito Subaru Centurion T The Express Paintshoppe Themba Rev Up Solutions TyrePlus – Vaalpark

Strand Vereeniging Germiston Soshanguve Richards Bay Ballito Ophirton Witbank Pretoria Pretoria Makhado Midrand Centurion Bela-Bela Lydenburg Salt River Kwagga Fontein Pretoria Tzaneen Durban Tzaneen Ballito Centurion King Williams Town Bela-Bela Sasolburg


Now Accepted


64 MARCH 2018


Abandoned Solutions 011 450 0550 Aer O Cure 011 444 6454 Africa Automotive Aftermarket Solutions 011 870 6000 Ansell Gloves 072 591 2347 AutocosmosBiz (Electrolog) 012 327 6210 Automobil Association technical College 011 799 1068 Automotive Industry Development Centre 012 564 5000 Behr Hella 011 870 6000 CDK Global 011 998 6000 Gumtree Auto South Africa 011 100 8600 Kigima Auto Electrical Training Centre 012 327 2586 Lamberti’s Machinery 083 738 4849 Merseta 010 219 3000 Tenneco Automotive 011 574 5603 Moto Health Care 0861 000 300 Rand Mutual Association 0860 222 132 Robert Bosch 011 651 9600 SASOL 010 344 5000 Silver Falcon Trading 083 628 2288 SingEx Exhibitions (65) 6403 2100 Snap On Africa 031 569 7673 The Engage Cloud 011 218 6600 Trysome Automotive 011 823 5650



7 OBC IBC 15 64 58 41 & 57 39 51 21 66 65 37,52 & 53 61 10 & 11 27 49 & 55 19 63 59 IFC 25 33

We offer: MACHINERY MANUFACTURE – surface grinders of various sizes • • • • •

MANUFACTURE OF MACHINE FOR THE BRAKE INDUSTRY MACHINERY REPAIR – Specializing in automotive machines and Equipment Back up/support for all makes of brake machinery Equipment consulting on and training on all machinery (Once off training offered on machines bought from us)












mm / min

0 -100














SPECIFICATIONS SUBJECT TO CHANGE WITHOUT NOTICE 1) Drive system requires 4 screws to be removed to extract entire drive system 2) 6 bolts removed to extract gearbox and motor drive 3) SAFETY – Slip clutches and inverter cut-out 4) Slideways made of Extruded cast Iron inserts 5) The Vertical and horizontal feeds are variable in both directions 6) Capable of doing all light and heavy duty brake drums to international standards 7) The weight of the machine and the configuration of the bearings make this machine extremely rigid



Address: Unit 1, 3 Brighton Rd, Bramley View, Gauteng, SOUTH AFRICA, 2018

MARCH 2018



The first Electric vehicle expedition ever across Africa


ontemporary electric vehicles boast a driving range of about 250 kilometres. This is enough to use a car in urban traffic for up to a week, or to travel from Cape Town to Swellendam free from range anxiety. In the advanced version, vehicles such as Nissan LEAF make it possible to cover the distance between the UK and Mongolia. In the highly advanced version, an attempt can be made to cross Africa, as planned by Polish travellers Arkady Fiedler and Albert Wójtowicz. The Electric Explorer African Challenge 2018, the first electric vehicle expedition ever across Africa, commenced towards the end of last month. The famous Polish traveler Arkady Paweł Fiedler has taken the wheel, accompanied by Albert Wójtowicz, a photographer and cameraman. The main hero of their unique expedition is the Nissan LEAF. The vehicle is not modified in any way; it is exactly the same as the car you can buy from a showroom. “Travelling across Africa is probably the hardest test for any vehicle, not only an EV. Poor roads, limited charging infrastructure and dramatically diverse weather conditions – from equatorial storms to the scorching heat of the

66 MARCH 2018

Sahara – these are just a few challenges that we’ll have to face during the expedition. We’re optimistic anyway. As part of the tests, I’ve already travelled over 4,000 kilometres in Poland in a Nissan LEAF, and I’m positively surprised by the driving range offered,” said Arkady Paweł Fiedler. The expedition started in Cape Town and will lead to Europe, along Western Africa, via South Africa, Namibia, Angola, Democratic Republic of Congo, Congo, Gabon, Cameroon, Nigeria, Benin, Burkina Faso, Mali, Senegal, Gambia, Mauritania and Morocco, and finally across western Europe to Poland. “The Nissan LEAF is the most popular electric vehicle in the world. The first generation of the model was launched on the market as early as eight years ago, and Nissan EV drivers have already done more than 3 billion zero-emission kilometres in total. The design tested by hundreds of thousands of drivers can be trusted without hesitation, which I believe will be best proven by the Electric Explorer African Challenge 2018,” adds Dorota Pajączkowska, Nissan PR Manager Poland.

continent, the expedition also aims to build awareness of electric mobility and new, cleaner technologies among the public in Africa, Poland, and the world at large. It is also important to show that the way of perceiving the world and human choices, such as the means of transport, have a great impact on our environment. “Care of the environment, home, and family starts with us, with our subjective decisions. The journey is also to prove that often something apparently impossible to do can be achieved given appropriate attitude and determination.” Owing to the huge challenge of looking for appropriate electric sockets to fill the battery with electricity, which is increasingly less of a problem in Europe year-on-year, we’ll have to rely on help from people we meet along the way. Without support from Africans, the expedition may fail,” recaps Fiedler.

Apart from being the first ever electric vehicle journey across the African

Introducing the new standard in

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MARCH 2018 67 A Division of Imperial Group Limited

The Global Benchmark in Automotive Repair Equipment.


RANGE BENEFITS: • • • • • • • • • •

Internationally Acclaimed OEM Approved Massive Parts Savings Best Value-for-Money Qualified Product Training Insurance Approved Streamlined Production Demos Available Quality After-Sales Service Widest Range for Steel and Aluminium

In the modern autobody shop world, repairing and not replacing is the name of the game. GYS, a 50 year old French manufacturer of superior car body repairing equipment, has over the past half century developed a significant range that is recognised and homologated by my most OEMS, distributed in 106 countries and manufactured 100% in house. With an array of innovative, award-winning products, Aer-o-cure’s GYS range will add efficiency, reliability and profitability to any production line at a highly competitive price. Visit the Aer-o-cure website or call now to request a catalogue or speak to an advisor on which of our products could best benefit your operation. STEEL REPAIR RANGE:

EASY LINER 39.02 (053618)


SPEEDLINER PRO 230 (036017)



PROLINER PRO 230 (035799)

MANUSPOT (050679)


RINGMATIC (052154)

For the full range visit:

Automotive Bodyshop Equipment Aer-o-cure PTY (Ltd) • SADC Registered Manufacturer and Exporter 8 Lees Street, Wynberg, 2090, Johannesburg, South Africa. PO Box 137 Strathavon, 2031 GraphicWerx • AOC_GYS_AutoMobil_3218

Tel: +27 11 444 6454 Fax: +27 11 444 5677 e-Mail: * Product / Colour may vary from image provided, subject to stock availability. (E&OE)

Automobil March 2018  
Automobil March 2018