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JUNE 2018

CRYPTOCURRENCIES

and their Tax implications

KNOW YOUR PLAN

The difference between service and maintenance plans

THE COMPONENTS OF ACRA ACRA IN THE SPOTLIGHT RMI UPDATE: NADA USA; VALUABLE BUSINESS PROPOSITION; www.automobil.co.za NAACAM SHOW HEADS TO DURBAN; PARTINFORM GOES NORTH TO POLOKWANE

JUNE 2018

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CONTENTS – JUNE 2018 COLUMNS 5 Driver’s Seat: Jakkie Olivier, CEO of the RMI 7 Editor’s Letter: Reuben van Niekerk 9 Hot Stuff! New product showcase 60 Frequently Asked Questions: Answers from experts 66 Tailpiece: Inside Ford’s weather factory

P24

UPDATES

Editor: Reuben van Niekerk reuben@thefuture.co.za

12 News 20 RMI review

Sub-editor: Peggy Lendrum peggy@thefuture.co.za

Design and layout: Heinz Bawa heinz@thefuture.co.za Reporter: Wynter Murdoch wynter@thefuture.co.za

COVER STORY

P30

24

Publisher: Richard Lendrum richard@thefuture.co.za

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

28

P34

RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Denice Grobler, Danelle Van Der Merwe, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman and Reuben van Niekerk

A digital version of this magazine is available at www.rmi.org.za 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. © Future Publishing (Pty) Ltd

www.automobil.co.za

The components of ACRA

ACRA (Automotive Component Remanufacturers' Association) represents component remanufacturers involved in the remanufacture of safety-critical components and radiators

FEATURES

Production: Mabel Ramafoko mabel@thefuture.co.za Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za

NADA USA, Valuable Business Proposition; NAACAM show heads for Durban in 2019; Partinform goes North to Polokwane

30

Going spare!

David Furlonger questions the accuracy of reports that SA’s automotive industry generated a trade surplus last year, despite the fact that the figure does not consider the value of replacement parts

A look at some automotive pioneers

Jake Venter looks at the pioneers that dominated the early years of the motor industry

34

RMI Consumer Affairs department cause of fairness

Championing the

36

Best Volkswagen dealers awarded

Honouring the best of the best

44

46

48

Arbitration and postponement

Attending an arbitration that has been scheduled by the relevant forum for a specific day, might not always be possible says Douw Breed

Cryptocurrencies and the tax consequences thereof

Not many have paused to think of the tax consequences of cryptocurrencies

Reaching Goals requires solid, prioritised planning

Understanding that success doesn’t just happen

50

Brake and Tyre inspection often overlooked

52

A word of warning from the TDAFA

Know your plan:

The difference between service and maintenance plans

54

Motul launches additives and Lescot car care ranges

56

VARTA now distributed by Auto X

58

Times tumble at 2018 King of the Hill

The 2018 Jaguar Simola Hillclimb delivered an enthralling mix of skills and excitement

JUNE 2018 -

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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 JUNE 2018

www.automobil.co.za


DRIVER’S SEAT

Speaking to the consumer Over many years the RMI has demonstrated its strength in developing member benefits and value-added products that cover the retail motor industry, says Jakkie Olivier, CEO of the RMI

W

e have reported great successes and delivered great results against our objectives and mandate – and in general terms made substantive progress towards a better and sustainable industry. Better and more suitable promulgated legislation, reasonable wages and conditions of employment agreements with the trade unions, becoming the go-to organisation for stakeholders on matters affecting the retail motor industry, or simply better trading conditions for the motorrelated businesses are all examples of the progress the RMI has made in a changing economy and in an industry which is characterised by its vast and quick technological enhancements and change. All of these improvements and successes happened quietly, allowing our members to focus on doing business in the best possible way. This is what the RMI is all about – to protect, develop and be pro-active and innovative in times of prosperity, but also during the difficult periods of economic pressure and political changes affecting the business environment. Without our loyal members and partners in business, the RMI would cease to exist. By the same token, without the RMI the retail motor industry would be so much poorer and worse off. By standing together, we have credibility, are widely recognised and respected by all stakeholders. A pro-active, dynamic and innovative approach is key in today’s business environment, and is no different for the RMI. For the past couple of years, the RMI has invested heavily in re-

establishing itself through structured change and new thinking models. The process mainly focused on what we refer to as ‘inward business-tobusiness’ initiatives, activities relating to government and big business liaison, influence and interaction – all of which are aimed at making the trading environment for our members better and more sustainable for profitable trading. Having re-established ourselves with great success, we have new ideas to take us into the future – our new financial year commences on 1 July and this date is going to be significant in many respects. One reason that we are all excited about is the launch of a brand-new advertising, awareness and PR campaign – this ‘campaign with a difference’ will focus entirely on the consumer, motorists who are dependent on our members for their daily motoring needs.

Jakkie Olivier, CEO of the RMI

These consumers have become much more sophisticated and demanding when dealing with motor-related businesses, sourcing high-quality products and services, engaging in highly technical repairs and maintenance, or looking for businesses where they will be treated fairly, ethically and enjoy a satisfactory experience. We believe our members have those credentials.

the cream of the crop of all the retail motor businesses, subscribe to an ethical strong code of conduct, and ensure high standards of service and superior quality products. RMI members are therefore sought after as opposed to non-members who are not affiliated to a professional body like the RMI. To ensure that consumers and motorists take note, RMI members should ensure that they are easily recognised and visible by proudly displaying their RMI membership certificates and code of conduct, add the RMI insignia and logo to their premises, stationery and delivery vehicles, and even use the RMI brand in their own advertising and branding campaigns. Exciting times indeed!

The contracted PR and communications company will educate and inform motoring consumers about RMI members and why they should seek to do business with RMI-affiliated members and entrepreneurs. Why? Because RMI members are professional, represent

We have one objective in mind with this latest campaign – to ensure educated consumers who choose the RMI and its associations for their daily motoring needs and would therefore take pains to locate an RMI-affiliated member business for total motoring peace of mind.

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

www.automobil.co.za

JUNE 2018 -

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

T

he RMI is a proactive, relevant, retail and associated motor industry organisation recognised as the leading voice in South Africa’s automotive aftermarket, serving the daily needs of its members and playing a key role in enabling motor traders to deliver top class service to motoring consumers. Here are the associations which fall under its umbrella… ACRA (Automotive Component Remanufacturers’ Association) ACRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, an ever-growing industry in which keeping abreast of change is crucial for business owners. ERA (Engine Remanufacturers’ Association) ERA represents motor engineers who re-machine, rebuild and remanufacture engines in South Africa. ERA members promote the reuse of engines, parts and components in a manner that is green and sustainable. ERA members create employment and skills development opportunities, directly in their own machine shops and indirectly through suppliers to the industry and component manufacturers. MDA (Motorcycle Dealers’ Association) MDA represents members who are motorcycle dealers – these members benefit from an extensive array of value-add services and products such as commercial insurance, labour legal assistance and representation, consumer dispute resolution, and a strong relationship with the Association of Motorcycle Importers and Distributors. MIMA (Motor Industry Manufacturers’ Association) MIMA members are Parts, Equipment and Component Manufacturers and suppliers to Original Equipment Manufacturers and the automotive aftermarket that exports into Africa and other countries in the world. MIWA (Motor Industry Workshop Association) MIWA, the largest association within the RMI, strives to keep its members informed about the ever-changing auto repair industry, thereby ensuring that vehicles are repaired to acceptable standards designed to make them perform better and safely on South African roads. 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 - JUNE 2018

TA

Vehicle Testing Association

VTA (Vehicle Testing Association) The VTA represents private vehicle testing stations that are committed to operating within the law in accordance with the Road Traffic Act and the relevant SANS standards. In this highly regulated environment, the association represents the interests of its members at government working groups and is committed to enhancing the reputation of the industry in all the spheres. SADFIA (South African Diesel Fuel Injection Association) SADFIA members operate fully equipped pump rooms aimed at providing cost-effective service solutions for owners of diesel powered vehicles seeking fuel injection system testing, repair or replacement. SAMBRA (South African Motor Body Repairers’ Association) SAMBRA is an active leader in the motor body repair industry and consolidates, communicates and regulates repair standards in the motor body repair industry. SAMBRA ensures the provision of technical and business skills training that meets the demands of the industry and instils confidence in consumers and industry stakeholders. SAPRA (South African Petroleum Retailers’ Association) SAPRA represents and promotes the interests of petroleum retailers in South Africa and fosters strong relationships with the Department of Energy, oil companies, banks, financial institutions and other stakeholders that have an impact on the sustainability of the service station industry. SAVABA (South African Vehicle and Bodybuilders’ Association) SAVABA members are professional, certified and regulated vehicle body builders in South Africa who manufacture commercial vehicle body applications (tanker, coal, refrigerated trucks and trailers) and bus bodies (commuter and tourist type). Members manufacture using the latest equipment and highly trained staff to ensure strict compliance with SABS standards and other legal specifications. TDAFA (Tyre Dealers' and Fitment Association) The TDAFA is the only representative body for tyre dealers nationally. The association works on all issues relevant to tyres and the fitment industry. Strategically, the TDAFA is positioned as an intermediary between government, the tyre industry and consumers and is recognised by government and industry leaders as the legitimate voice representing tyre dealers. RMI contact details Head Office: 011-886-6300 | www.rmi.org.za Surrey Square Office Park, 330 Surrey Avenue, Ferndale, Randburg, 2194 RMI Regional Offices: Highveld: Randburg: 011-886-6300; Northern: Pretoria: 012-348-9311; KwaZulu-Natal: Durban: 031-266-7031; Eastern Cape/Border: Port Elizabeth: 041-364-0070; Western Cape: Cape Town: 021-939-9440; Free State/Northern Cape: Bloemfontein: 051-430-3294

www.automobil.co.za


A car is merely the sum of its parts

A

car might be seen as one object, but it is really just a combination of metal, plastic and glass that is assembled in such a way that it can take you wherever you want to go in comfort. A large focus of this month’s edition of Automobil is on all the parts that comprise the modern car. With cars getting more and more complicated, the average passenger car is made up of more than 30 000 parts. That is a lot of pieces in a puzzle that all need to work together to ensure that the car works properly.

EDITOR’S LETTER

Also long gone are the days that a car was purely mechanical. Modern vehicles rely heavily on electronic components and the use of computers. A stroll through the Jaguar Simola Hillclimb pit lane highlighted this, while some competitors were swapping carburettor jets to gain more performance, others had multiple laptops plugged into their cars as they searched for an advantage up the hill. Even the smallest little part can mean disaster, Toyota lost the 2016 24 Hours of Le Mans in the final moments due to a faulty electrical connector, a R5 part, but just as important as the R100 000 computer it is connected to. It is a reminder that in racing, everything counts.

have just built a new all weather testing facility that puts the world’s weather under one roof, enabling engineers to test forthcoming vehicles in the most demanding conditions (page 66). Manufacturers of vehicle parts have made significant gains in South Africa in recent years regarding the quality,¬ volumes and cost competitiveness of their products according to a recent study commissioned by Naacam (page 12). In our Association of the month feature, we take an in-depth look at the Automotive Component Remanufacturers Association and the vital work that they do in ensuring that old parts are given a new lease on life again (page24).

This is also why companies are spending more and more money on testing. Ford

Reuben van Niekerk, Editor

ECH COLLEGE AD 210x130 2/15/17 8:30 AM Page 3 C

www.automobil.co.za

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JUNE 2018

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NEWS

SPEAK TO US RMI EXECUTIVES

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

RMI BOARD MEMBERS 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 Mark Dommisse

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

DIRECTORS MIWA Pieter Niemand pieter.niemand@rmi.org.za NADA, MDA Gary McCraw gary.mccraw@rmi.org.za

RMI HEAD RMI HEADOFFICE OFFICE

RMI REGIONAL OFFICES

Danelle van der Merwe Brand and Communication Manager danelle.vandermerwe@rmi.org.za

Highveld: Randburg: 011-886-6300

Neo Bokaba HR Manager neo.bokaba@rmi.org.za Julian Pillay Regulatory Compliance Manager julian.pillay@rmi.org.za 011-886-6300 | www.rmi.org.za Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194

8 - MAY 2015

SAMBRA, SAVABA Edwin Martin edwin.martin@rmi.org.za SAPRA Vishal Premlall vishal.premlall@rmi.org.za TDAFA, MPEA, MIMA Hedley Judd hedley.judd@rmi.org.za TRAINING Louis van Huyssteen louis.vanhuyssteen@rmi.org.za SADFIA, ACRA, ERA Attie Serfontein attie.serfontein@rmi.org.za TRANSFORMATION Joy Oldale joy.oldale@rmi.org.za

Facebook.com/AutomobilSA

@AutomobilSA

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

www.rmi.org.za

Free State/Northern Cape: Bloemfontein: 051-430-3294

TA

Vehicle Testing Association

www.automobil.co.za


NEW PRODUCTS

HOT STUFF Drive Vision Set to Change the Essentials of Fleet Management An on-board dual camera system from global fleet management vehicle recovery and insurance telematics provider, Cartrack, reduces the costs of managing vehicle fleets, while creating new ways to motivate drivers and improve their on-the-road performance. Historically, commercial drivers within fleets have been far removed from active management and oversight, with limited tools available in helping fleet owners understand how their drivers actually behave on the road. This lack of visual tracking ability has seen fleet managers struggle to achieve meaningful driver skills development, while also leaving companies vulnerable to poor operational performance and financial losses resulting from accidents. Cartrack’s Drive Vision system is dramatically changing this status quo. Drive Vision is an on-board dual camera system that records video footage with a 120-degree exterior view of the road ahead, and a 160-degree view inside the vehicle cab. Not only can fleet managers actively monitor all the footage that they wish, the system also records specific events such as speeding, harsh braking or an unforeseen action from a third-party.

Drive Vision’s video is continuously captured and then made available to users in two ways. The footage is either buffered in the unit’s memory card for up to five days, and selected time slots can be downloaded by the user via a web interface. Alternatively, footage is also automatically downloaded to the system when specific events occur, such as speeding or a collision. The captured footage is stored at a web address and is immediately accessible to the client at any time. In addition, the data centre’s driver exception reporting mechanism can review the footage against a client’s pre-determined driver behaviour stipulations, creating a balanced and flexible driver performance assessment tool.

Wiper-blade replacement a cinch with Easyvision wipers A unique retro-clip adaptor makes replacing standard wipers with flat blades a simple task, simplifying vehicle maintenance and allowing for added safety and protection during the rainy season. These Easyvision wipers with retro clip from Champion are available locally from Federal-Mogul Motorparts, a leading global supplier of products and services to global manufacturers, and servicers of vehicles and equipment in a range of sectors. The retro clip adaptor has been designed specifically to take advantage of the improved design, look, and efficiency of modern flat-blade windscreen wipers, Federal Mogul Motorparts Technical Advisor Albertus Steyn

www.automobil.co.za

highlights. Champion Easyvision wipers with retro clip are engineered to enable the transition from standard to flat blades. A symmetrical design, blade curvature, and precision-engineered flexors provide good mobility and improved driver visibility. Steyn points out that Easyvision wipers will also improve the look of any car, as flat blades are more visually appealing than conventional wipers. In addition, 90% of car makes are catered for with just 11 part numbers. This means a no-hassle universal fit, straight from the packaging. Durable construction allows for low friction due to a low-noise coated rubber element. Clear part numbering and QR codes mean that website support is a click away.

JUNE 2018 -

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10 - SEPTEMBER 2017

www.automobil.co.za


www.automobil.co.za

SEPTEMBER 2017 -

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NEWS

Outlook positive for SA’s component manufacturers

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anufacturers of vehicle components in South Africa have made significant gains in recent years regarding the quality, volumes and cost competitiveness of their products, according to a study commissioned by the National Association of Automotive Component and Allied Manufacturers (Naacam). Conducted by B&M Analysts and published last month, the study – entitled The South African Automotive Supplier Industry Benchmark Report – highlights a number of factors that have positively impacted the components sector, including rising employment and an increase in sales revenue. “It is clear that against comparative component suppliers based in Hungary, India and Mexico, South African suppliers have made real progress in a number of areas,” said Douglas Comrie, managing director of B&M Analysts.

12 - JUNE 2018

At a media briefing in Johannesburg, Comrie pointed out that there were many reasons for the local components industry to be confident about its future. First, South African suppliers had increased their average sales by 13% in real terms during the 2015 to 2017 period – despite a decline in volume growth on the part of local vehicle manufacturers. Second, in that period supplier employment levels – which included contract as well as permanent employees – had risen by an average of 8,7%. Further, significant strides had been made in containing production costs which, in combination with a drop in fixed costs, had helped to lower break-even points and had increased operating profit. However, on the latter point Comrie said profit levels of South African suppliers remained substantially below those of counterparts based in comparative countries. Also, he

said productivity – measured with regard to value addition as a function of employment costs and capital depreciation – was well below that of competitors despite an improvement of almost 10% over the past two years. In terms of worker commitment, however, Comrie said South Africa set the pace with an absenteeism rate of 3% – less than half that of the other countries. Training budgets, too, eclipsed those of competitors. Additionally, product quality was on the rise, with fault-related component returns by customers falling by more than 60% since 2015. According to Comrie, the overall improved performance of the local components industry had been reflected in the attitude of vehicle manufacturers who had indicated in the study that they planned to commit to long-term relationships with existing suppliers as well as to increase their total level of local sourcing.

www.automobil.co.za


Isuzu restructures its Corporate Affairs Division Corporate Communication and Public Relations Manager for GM South Africa.

The team at Isuzu’s restructured Corporate Affairs Division (from left): Denise van Huyssteen, Vuyiseka Skepe, Nandi Motomela, Sharné Woods and Gishma Johnson

F

ollowing the exit of General Motors from South Africa and the buy-out of the company’s manufacturing and distribution operations by Isuzu, changes have been made by the Japanese company to the structure of its Corporate Affairs Division.

Denise van Huyssteen, previously General Manager of Communications for General Motors in Africa and the Middle East, has been appointed head of the division. She is supported by Gishma Johnson, who has been appointed Corporate Communications Manager. Previously, Johnson was

Nandi Matomela, a former leader of GM South Africa’s Sub-Saharan Communications Team, has been appointed as Isuzu’s Product Communications Manager, while Sharné Woods has joined the team as an internal communications specialist. Vuyieka Skepe, who has extensive experience in public relations and event management, has been appointed Stakeholder Relations Officer. “The team and I are excited about the opportunity to build the Isuzu brand in South Africa and in key sub-Saharan markets,” Van Huyssteen says in a statement.

Nissan plans new SA-built bakkie

J

apanese motor company Nissan plans to introduce a new one-ton bakkie to its manufacturing line at Rosslyn, according to Mike Whitfield, Managing Director of Nissan SA. Addressing media representatives last month at a briefing session at Gerotek, near Pretoria, Whitfield said the model’s introduction was not a question of if, but when. Nissan’s Navara… to be built from next year at Rosslyn?

To accommodate its manufacture, he said Nissan had invested more than R1-billion in the Rosslyn plant over the past three years, with about R500million spent on improving production facilities and another R150-million dedicated to people development and skills upgrades.

to be assembled at the facility – the site would be the only one in the world to build the latter model, popularly known as the Hardbody – while the new bakkie would be added to the production mix.

According to Whitfield, the plant’s two assembly lines had recently been converted into one to allow flexibility with regard to production dynamics. The NP200 and NP300 would continue

Whitfield said though a formal decision on product plans would be announced only later this year, he saw a strong future for the Rosslyn plant. The upgrades meant the facility would be

www.automobil.co.za

capable of producing about 44 000 vehicles a year on a single shift basis, with focus in the mid-term on exports to African markets. It is an open secret in automotive circles that the Navara – which is currently imported to South Africa – is one of Nissan’s preferred products for the Rosslyn plant. Sources within the company say the model is likely to be built at the facility from 2020.

JUNE 2018

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NEWS

‘Bosch offers diesel lifeline’

G

lobal auto supplier Bosch has reported that it has developed a new dieselexhaust management system that cuts emissions to below legal limits that have been set for introduction in Europe in 2020. In a statement, the company’s CEO, Volkmar Denner, said the development offered an opportunity for the heated debate over diesel’s future to shift into new territory – and, hopefully, bring it to a close. “With this new exhaust technology, blanket driving bans in the centres of the world’s major cities will no longer be an issue – we now have the technology to resolve the problem of nitrogen oxides in road traffic,” he said. According to Denner, the process uses a combination of advanced fuel

Bosch’s CEO, Volkmar Denner, with one of the vehicles the company used to test its new diesel exhaust management system

injection, a newly developed airflow management system to recirculate exhaust gases, as well as intelligent temperature management to lower nitrogen oxide emissions to as little as 13mg per kilometre – almost one tenth of the 120mg/km limit set for Europe in 2020. “Bosch engineers achieved these results by refining existing technologies. There is no need for additional components, which would drive up costs. Equipped with this technology, diesel vehicles will be classed as low-emission vehicles and yet remain affordable,” he said. Denner added that even when driving in particularly challenging urban conditions – where test

parameters were well in excess of legal requirements – average emissions of Bosch’s test vehicles were as low as 40mg per kilometre. “NOx emissions can now remain below the legally permitted level in all driving situations, irrespective of whether the vehicle is driven dynamically or slowly, in freezing conditions or in summer temperatures, on the freeway or in congested city traffic,” he said. “From this perspective, diesel will remain an option in urban traffic.” According to the statement, the technology – which is said to have minimal impact on fuel consumption or performance – is good enough to be incorporated immediately into series production.

Mahindra announces local assembly Mahindra’s Pik-Up… first of a selection of models scheduled for local assembly

M

ahindra South Africa is preparing to establish a local assembly plant at which a selection of models will be built for domestic and export markets, says newly appointed CEO, Rajesh Gupta. “For the next step in our strategy of becoming a truly South African automotive player, we will start with the assembly of the Mahindra Pik-Up on local soil. This will offer us a sound footing on which to entrench our South African sales success,” Gupta says.

14 JUNE 2018

He adds that the brand’s move to local vehicle manufacturing will be supported by the expansion of its range of products and services in South Africa. “Since entering the market in 2004, Mahindra has slowly and organically grown its market share and reach in South Africa and neighbouring countries,” he maintains. According to a statement issued by the company, the India-based vehicle manufacturer is one of the five fastest growing brands in South Africa, achieving a compound annual growth rate of 4,6% over the past five years.

www.automobil.co.za


www.fiatprofessional.co.za

JOIN THE PROFESSIONALS

Owning your own business or starting a business is most probably the biggest step you take in your professional career. Fiat Professional offers you the most versatile and affordable range of professional vehicles to suit your business needs.

ACCOLADES: DOBLO CARGO: What Van? Awards - Light Van of the Year 2016, 2017, 2018 • Commercial Fleet Award - Small Van of the Year 2015 DUCATO: Motor Transport Awards - Fleet Van of the Year 2017 FIORINO: Trade Van Driver Awards - Best City Van Award • What Van? Awards - Small Van of the Year 2017 • Commercial Fleet Awards - City Van of The Year 2015

OB 03 18773 The Wizards of Obz

We also take pride in the various international awards that the Fiat Professional range has achieved.

FULLBACK: 4x4 Magazine France - Pick-up of the Year 2015 • Bakkie & Car Magazine: Best Bakkie for 2018 (joint award) FIAT PROFESSIONAL: Commercial Fleet Van Awards: Van Fleet Manufacturer of the Year 2014 & 2015 • Commercial Fleet Awards: Green Fleet Manufacturer of the Year 2015 • Green Fleet Awards: LCV Manufacturer of the Year 2012

www.automobil.co.za

JUNE 2018 15 A PRO LIKE YOU


NEWS

Brabus founder dies

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odo Buschmann, 62, founder and CEO of world-renowned tuning house Brabus, died on April 26 following a short illness. A car enthusiast from an early age, Buschmann founded Brabus GmbH in Bottrop, Germany, in 1977. The company devoted itself to upping the performance of Mercedes-Benz vehicles, becoming the brand’s largest tuning facility outside of Mercedes-owned AMG. When starting out, Buschmann, then a law student aged 22, based his workshop in a street behind his parent’s car dealership in the Ruhr Valley. Legend has it that he had wanted to improve the performance of his Mercedes-Benz – but could find no-one to do the job. Such was demand for his services that he soon outgrew the facility, moving operations to Brabus Plant 1 – the first building he owned. As his reputation spread, the business continued to

expand, with Buschmann showing great instinct for successful ideas and products. “He gave everything he had to his company, from early in the morning until late at night, from Monday to Sunday. In this way, he made Brabus a global player in the auto industry,” says a statement released by the company. Described as a role model for his professionalism and hard work,

Buschmann not only made his own company one of the most renowned brands in the auto industry – as president of VDAT, an association of automotive tuners he co-founded, he played a significant part in making vehicle refinement respectable around the globe. “He set standards for the entire industry all his life and always stayed true to his motto: Never work for money – work for passion!” the statement says.

New steel undergoing trials for auto industry

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ordic automotive steel producer SSAB has expanded its product range by offering an advanced, high-strength steel called Docol 600DH-GI for customer trials. “We are taking a step towards third generation steels by launching the galvanised Docol DH steel family,” says Matti Säily, SSAB’s Product Manager for Europe. The initial product, which offers a tensile strength of 600MPa, forms part of SSAB’s strategy to grow its share of premium steels in the

16 JUNE 2018

automotive industry. It will be joined later this year by similarly galvanised products with tensile strengths of 800 and 1 000MPa. “Trends in the auto industry towards structural light weighting, tougher emissions limits, safety standards and electrification improve the growth outlook for the use of special high-strength steels,” says Säily. “First generation steels will still play a major role, but extra good formability has created an opening for third generation steels to compete with press-hardening steels and aluminum.”

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Bosch technologies are used worldwide in almost all vehicles, assuring their mobility, is what we are focused on. We continue to work on our unique combination of solutions for spare parts, diagnostic devices, workshop equipment and services. www.bosch.co.za

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APRIL 2018

17


NEWS

Volkswagen to electrify Golf

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olkswagen is to launch an electric version of its bestselling vehicle – the Golf. Introduction of an innovative hybrid system in the eighth generation model will mark a new era for the brand with regards to drivetrain technology.

BMW’s latest concept vehicle, the all-electric iX3

BMW unveils all-electric X3

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MW has unveiled a concept version of the first of its core models to feature an all-electric drivetrain – the iX3.

Taking the wraps off the vehicle at last month’s Beijing Auto Show in China, Harald Krüger, Chairman of the brand’s Board of Management, described the model – which will go into production in 2020 – as a technological trailblazer and a strategic game changer. The car features BMW’s fifth generation eDrive system which is said to offer a range of 400km and which can be fully charged in 30 minutes. The propulsion package is described as having delivered considerable advances in terms of the vehicle’s performance characteristics. “Individual components in the new eDrive technology stand out for their low weight, scalability and extremely compact construction,” says a statement issued by the company, adding that BMW’s approach will be to incorporate the powertrain design in a large number of different models. “In order to exploit this potential, the vehicle architectures of current and future models from all the company’s brands will allow for the integration of different drive system variants,” the statement says. “In this way, the BMW Group will be able to meet the ever increasing need for electrified vehicles with a wealth of different variants tailored to meet specific demand.” The new eDrive system groups the electric motor, transmission and power electronics in a single package. In the Concept iX3, the power unit produces more than 200kW, while a new generation battery is said to have a net capacity of over 70kWh.

The company made the announcement at the recent International Vienna Motor Symposium, regarded as one of the world’s most important engineering congresses. In an address at the event, Dr Frank Welsch, Volkswagen’s technical chief, said the new Golf would pioneer a recently developed, 48-volt mild hybrid system which would pave the way for the technology to be incorporated in other models across the company’s brands. He said the Golf would combine a combustion engine with a cost-effective, 48-volt, belt-integrated starter generator which would also act as an electric motor. “This sustainable combination represents the gateway to the future of Volkswagen hybrid models. The mild-hybrid solution offers much improved dynamics and convenience,” he maintained. Welsch added that the 48-volt system would complement the Golf’s familiar 12-volt supply. “A 48-volt lithium-ion battery will be supplied with energy during a number of operations, including recuperation. The starter generator will receive the necessary voltage via the battery and the 12-volt supply will receive the required voltage via a DC/DC converter. “The basic interaction of different energy sources – whether electricity, petrol, diesel or natural gas – will represent a paradigm shift for Volkswagen. For the first time, the company will simultaneously offer product lines such as the Golf with conventional, electrically assisted drives, as well as product lines with purely electrical drives. “The product strategy will come into play for the first time from 2019 onwards with the launch of the next generation of the Golf and our first ID model – two compact Volkswagen vehicles with completely separate technical concepts as well as clearly different design make-ups.”

In terms of exterior styling, the vehicle features a closed double kidney grille surrounded by blue accents to distinguish the model as all-electric. Blue accents are also found on the brand logo at the front, along the side skirts, and around the rear diffuser. “The iX3 will be the first all-electric BMW core model,” says Krüger. “It will go into production in 2020 and will be produced in China, Germany and the United States.”

18 JUNE 2018

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BMW returns to Le Mans

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or the first time in seven years, BMW will officially contest the Le Mans 24 Hour race – and simultaneously launch its latest sports car, the 8-Series Coupé, at the famed motorsport venue. “On June 15, the countdown to the 24-hour Le Mans race will provide the perfect framework for the world premiere of the new model. The luxury sports car was developed parallel to the M8 GTE with which BMW Motorsport will take to the Le Mans starting grid the next day,” says a statement issued by the company. The race car – two examples of which BMW has entered in this year’s World Endurance Championship – has already competed in the season opener at Spa-Francorchamps, Belgium, and at the US-American IMSA WeatherTech Sports Car Championship. This month’s Le Mans event will mark the next step in its motorsport journey. And since the production model is said to benefit from the experience gained from its motorsport sibling, BMW has seen fit to launch the vehicle at Le Mans. “There isn’t a better setting for the world premiere of the new 8 Series Coupe,” says Klaus Fröhlich, the company’s Head of Development. “The race is a pure demonstration of passion, dynamics and long-distance capability. These characteristics define our new sports car in a special way.”

Road and track… the production version of BMW’s 8-Series Coupé (left) and the motorsport equivalent, which next month will see the marque return to Le Mans officially for the first time in seven years

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SEPTEMBER 2017 -

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NEWS RMI UPDATE

Fiat-Chrysler consolidates

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iat Chrysler Automobiles South Africa has consolidated its separate financial accounts under which the Fiat and Chrysler brands operated locally, transforming the company into a single trading entity. While Fiat Chrysler Automobiles South Africa has been under a single management team since the global merger of its parent companies in 2012, the Fiat and Chrysler brands continued to operate under separate financial accounts. “We’re excited to enter the next phase of FCA in South Africa,” says Robin van Rensburg, CEO of FCA South Africa. “For our customers, it will be business as usual with even more improvement

in service levels thanks to the simpler and more effective systems. “Our dealers and partners have invested with us over the past six years to get to this point and the move will allow them to become even more effective.” FCA South Africa is responsible for the sales and after-sales business of

the Abarth, Alfa Romeo, Fiat, Fiat Professional, MOPAR, Chrysler, Jeep and Dodge brands. “We have created a vision to take us forward into 2020 in a sustainable and profitable manner, having learnt some valuable lessons from the past,” said Van Rensburg. “Customers will only benefit from this merger and the dealer network will remain unchanged.”

Mazda SA sets sales record Van der Linde wins MSOY award

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or the 2017/2018 fiscal year, Mazda Southern Africa recorded its highest number of vehicle sales since it began independent operations in October 2014.

According to a statement released by the company, sales increased by 13,5% over those achieved a year prior to rise to 13 868 units, upping the brand’s market share to 2,5%. Between them, the CX-5 and the Mazda3 accounted for 50% of the sales volume, while the Mazda2 and CX-3 added another 46%. The BT-50 and MX-5 provided the remaining 4%. During the period, Mazda Financial Services grew its business by about 172%. “Mazda SA’s primary aim since independent operations began in 2014 has been to rebuild the brand on all fronts. The strategy is on track and is being achieved by forming strong relationships with dealers, suppliers and ultimately owners,” the statement said.

20 JUNE 2018

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he South African Guild of Motoring Journalists’ Motor Sportsman of the Year (MSOY) is 21-year-old Kelvin van der Linde. The Johannesburg-based racer, who has won the trophy twice before, was recognised for his achievements last year in Australia, America and Europe, where he was part of a team that won 2017’s 24-hour race at Nürburgring. Unable to attend the presentation event – which was sponsored by Michelin – due to motorsport commitments, Kelvin’s trophy was accepted on his behalf at a function in Johannesburg by his father, Shaun. Also awarded at the presentation ceremony was the Colin Watling prize for non-competitors in motorsport. It was won by Des Easom and his team at the Western Province Motor Club at Killarney Race Track in Cape Town, for organising the final round of the World Rally-X Championship.

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JUNE 2018 -

21


NEWS

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ollowing the announcement of the Safer Choice India Award at the Delhi motor show, Global NCAP is now launching the ‘Safer Choice Africa’ Award to encourage automakers to achieve the highest levels of safety performance. In November 2017 the first ever independent crash test results for cars sold in Africa were released by Global NCAP at a conference in Cape Town, hosted together with the Automobile Association of South Africa (AA). The crashworthiness results of the five cars tested showed a wide range of safety performance, from four to zero stars for adult protection, with the lowest ratings resulting in a high probability of lifethreatening injury in a road crash. To encourage manufacturers to quickly improve the safety levels of cars sold in the region, Global NCAP is now looking to bestow the prestigious accolade of Africa’s first five-star car through the ‘Safer Choice Africa’ Award. To qualify for a Global NCAP ‘Safer Choice’ Award in Africa and India, a car model must achieve all of the following requirements: 1. The model must achieve a 5-Star score for Adult Occupant Protection in accordance with the latest version of the Global NCAP New Market Test protocol. 2. The model must achieve at least a 4-Star result in Child Occupant Protection in accordance with latest version of the Global NCAP New Market Test protocol. 3. The model must offer Electronic Stability Control (ESC) and meet performance requirements according to United Nations Regulations UN13H, UN140 or GTR9. Where optional, ESC must be available on all the model

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variants, sold separately without any ‘bundling’ with other features, and as from two years onwards must be a standard fit to at least 20% of the sales volume in the country. 4. The model must meet Pedestrian Protection requirements according to United Nations Regulations UN127 or GTR9, which must be validated on market units at a Global NCAP designated testing laboratory. 5. Conformity with all of these requirements must be validated at a Global NCAP designated laboratory and by the provision of type approval certificates where applicable. David Ward Global NCAP Secretary General says, “Our ‘Safer Choice India’ Award was welcomed by manufacturers and consumers alike. Now we would like

to encourage the African automobile market to respond to the call for zerostar cars to be driven off Africa’s roads, and we very much look forward to the first automaker in Africa to achieve the accolade of five-star ‘Safer Choice’ performance.” Collins Khumalo, CEO of the AA concurs: “This Award will be a unique opportunity for car manufacturers and importers in Africa to highlight and market their commitment to vehicle safety, and road safety on the continent. It will also allow them to differentiate themselves by making safer cars available to consumers. We are thrilled to partner with Global NCAP on this important Award and believe it is a critical step towards achieving our goals of making travel safer on our continent.”

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MAY 2018 -

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ASSOCIATION OF THE MONTH

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CRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, which is an ever-growing industry. The ACRA Constituent Association ensures that members are kept abreast of change, a crucial aspect for business owners. ACRA’s objectives include the promotion and protection of the interests of the motoring public and members. Membership criteria further ensures that all members, and potential members, meet the standards and criteria as determined by ACRA. Members further pledge to adhere to the RMI Code of Conduct.

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The RMI New Thinking Model Since the implementation of the RMI NTM or ‘New Thinking Model’ as we know it in July 2017, essentially clustering ACRA with similar sectors together (all remanufacturers’ sectors), ERA, SADFIA and ACRA, which are now known as the RMI REMAN Cluster, the various associations have embraced the NTM and are reporting positive feedback from members. The RMI REMAN Cluster has grown into a unit and is stronger than before, and moving with a focused momentum toward sectorial, positive, influence and bringing about change and a better business atmosphere to its respective sectors.

The NTM also provides for a closer cohesion between other RMI constituent Associations and promotes unity between the various motor industry sectors. In reality, the RMI is in the best position, to bring about industry resolves, due to their close interaction with one another and with all the sectors in industry. RMI constituent Associations are simultaneously working on projects that will benefit the industry as a whole. The NTM brings about opportunity to start off with the RMI as a focal point - flowing out to RMI constituent Associations.   Due to the ERA (Engine Remanufacturers’ Association), SADFIA (South African Diesel

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Fuel Injection Association) and ACRA mutually shared industry aspects, it made perfect sense that with implementation of the NTM, these constituent Associations were clustered together, and this has proved to be enormously successful. As a result, these three sectors will continue to grow together as a unified body under the auspices of the RMI. Subsequently future meetings, projects and communications will be grouped together allowing the association to speak to a greater, more influential audience. Federal Mogul Concept: GarageGurus Federal Mogul, in conjunction with the RMI REMAN Cluster: ERA, SADFIA, ACRA, MIWA and TDAFA will soon start with

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a concept called Garage-Gurus. Federal Mogul’s focus will be to institute proper methods of diagnosis to aid in fault finding, an important and critical skill that is often overlooked. Training sessions will comprise 15-30 minute (part specific) and 2-3 hour (process specific) sessions. A competition will run during the implementation of the concept, in which tickets will be made available to Automechanika in Frankfurt, later in 2018.   The concept of Garage-Gurus pertains to training the industry to certain tasks, such as but not exclusive to braking systems. Industry is currently asking for training on these topics, especially on the outskirts of

SA where training facilities are usually few and far between. This training is not linked to a formal qualification, but will definitely empower the individual and business as a whole. It is however very possible to link these training modules to certain SAQA modules, which are credit bearing.   This programme will be rolled out nationally and with Federal Mogul’s close collaboration with the RMI, training will be conducted in all the regions that the RMI has a presence. Federal Mogul indicated that they wish to start off with training in Gauteng, at either RMI or Federal Mogul facilities. A second phase will commence in 2019 where fully equipped mobile

JUNE 2018

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ASSOCIATION OF THE MONTH

units will visit businesses and conduct onsite training. There will be certificates of attendance given out on completion of the training. RMI REMAN Cluster: ACRA Project During a National Executive Committee (NEC) Annual General Meeting (AGM), the Committee resolved to form a strategy to spark participation between the ACRA member base and the RMI REMAN Cluster office to develop tangible projects that will bring about change over and above ‘benefits of belonging’.   With the implementation of the NTM (in which ACRA now forms part of the RMI REMAN Cluster) – discussions were held to identify and address industry concerns in the ACRA environment, and improve it for the better. Subsequently the office of the RMI REMAN Cluster contacted each ACRA member to participate in a national survey to test, learn and determine the general feeling of the ACRA business environment. This proved to be hugely successful in terms of member participation and feedback received.

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Questions identified: • What is your biggest challenge in your business / sector? • If there’s one thing the RMI can do for you now to bring about change, what will it be? • How positive or negative are you about your business over the next five to 10 years? Answers to the three questions indicated that firstly the biggest challenge is the economy and the influential role that it has on business, in that it is one of the most industrialised and diversified economies. Secondly it was felt that membership of the RMI should do their part to bring about change in business, a factor that is realised by the very positive feedback that the ACRA members gave, and that the ACRA members are very positive about what the future holds for the industry. In a latter NEC Meeting, held on 03, 08, and 09 of 2018, the Committee resolved to focus on a project that will strengthen the ACRA constituent Association

within. This project will be rolled out during the RMI REMAN Cluster regional meetings – a project that will tweak ACRA’s sense of value within the Supply Chain Industry. During the latter NEC it became apparent that training, together with the aspect of adding value, will have to be looked into more closely in order for this project to be tangible, leaving a sense of belonging, hope and new spirit.    A Word of Motivation – courtesy, the RMI REMAN Cluster: ACRA National Chairperson Representative: Mr Riaan Botha from EP Radiators in PE.   Botha shared his vision by way of motivation, which was well received by the NEC. He said that often there is a clear understanding of what needs are required in the global and organisational story, but when it comes to the individual and his or her real needs, we struggle to acknowledge that and to allow growth. 

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MARCH 2018 - 27 A Division of Imperial Group Limited


INSIDE LINE

Going spare! Thanks to the APDP, South Africa’s automotive industry last year generated a trade surplus for the third year in succession – but how accurate is the figure if it doesn’t take into consideration the value of replacement parts? David Furlonger reports

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he English expression, to “go spare,” means to become angry. I wonder if South Africa’s hardworking motor industry executives are going spare? The 2018 edition of the SA Automotive Export Manual shows that in activities generated by the 2013-2020 Automotive Production and Development Programme (APDP), the local motor industry in 2017 generated a trade surplus for the third year in a row. The value of exports exceeded that of imports by R10,3-billion.

Norman Lamprecht, executive manager (Naamsa)

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But don’t start cheering yet since, say some, that’s not a real surplus. The APDP is all about assembly line activity – manufacturing vehicles and the components that go into them. It’s not concerned with replacement parts; the

ones you find in your car dealership or local parts store. However, some economists say that the official trade figure must include all automotive import and export transactions. Last year South Africa imported R53,8-billion worth of spare parts, thus turning the R10,3-billion APDP surplus into a R43,5-billion industry deficit. It’s an ongoing argument about which figure presents the true picture. Naturally, motor companies and their suppliers want to be judged on APDP performance. For now, they are losing the argument. So they could be excused for going spare. As it happens, neither figure is encouraging. The R43,5-billion deficit is

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The manual is published by the Automotive Industry Export Council and compiled by Norman Lamprecht, executive manager of the National Association of Automobile Manufacturers of SA (Naamsa). He believes that, with sales in the first four months of 2018 1,4% ahead of the same stage last year, the industry could be looking at 366 000 units for the full year. That’s just the starting point of where the sector wants to be. South Africa ranked 22nd among world motor industries last year, after building 601 178 vehicles for a 0,62% share of the global market. The ambition, by 2035, is to reach 1,4-million and 1%. Why 2035? That’s the end-point for the next phase of policy after the APDP. Exports will have to provide much of the oomph to get to 1,4-million units. The rest of Africa will be key. Lamprecht talks of Cape to Cairo, but most local companies are concentrating on the sub-Saharan region.

more than 30% worse than the R32,9-billion of a year earlier. The R10,3-billion surplus fell more than 50%, from R23,2-billion. There were mitigating circumstances. A strengthening rand in the second half of 2017 cut local currency earnings. For example, exports to the European Union – South Africa’s biggest regional market – grew 8% in euros but fell in rands. Then there was the failure to set a predicted annual record for vehicle exports. Volkswagen SA, one of the local industry’s biggest exporters, virtually halted production for the last two months of the year to prepare for the launch of new Polos and Vivos early in 2018. So instead of breaching the 2016 record of 344 821 vehicles, the industry shipped out 338 093.

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Nissan SA’s managing director, Mike Whitfield, says that, long-term, the region should be the priority for all South Africa-based producers. But how long-term? Of the more than 300 000 new vehicles exported from the country in 2017, only 21 848 units went to the rest of Africa – a 72% fall from four years earlier, when the number was 78 807. Of last year’s total, more than half went to South Africa’s neighbours in the Southern African Development Community. While no one doubts African markets will bounce back to previous levels, and eventually exceed them, industrial strategy requires consistency of demand. If Africa is to become the basis of exports, endless wild swings will be a planning nightmare.

Mike Whitfield MD Nissan South Africa

So, if Africa is still a small export destination, which countries are bigger? Germany is both the largest export market and trading partner. Last year, South Africa exported R46,7-billion worth of vehicles and components to the country. Next came the US (R18,8-billion), then Belgium (R13,9-billion), Japan (R8,9-billion) and the UK (R8,5-billion). The UK, coincidentally, was the single biggest destination for South Africanmade vehicles: 98 358 of them. Overall automotive trade with Germany was worth R116,1-billion, followed by the US (R29,8-billion), Japan (R29,0-billion), Thailand (R20,9-billion), UK (R15,7-billion) and China (R15,3-billion). Predictably, Germany also provided South Africa’s biggest automotive trade deficit: R22,6-billion. Less predictably, Thailand was next, at R16,5-billion. It says much for how far the local motor industry still has to go to become truly world-class. Last year it imported R18,8-billion worth of goods, mainly components, from one of its main competitors for global business. In exchange, it exported only R2,2-billion worth. There’s a lesson there.

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

JUNE 2018 -

29


TECH TALK

A look at some automotive pioneers The early years of the motor industry was dominated by the following five pioneers. Each contributed something to the development of motorised transport. Carl Benz

Jean Joseph Étienne Lenoir

Jean Joseph Étienne Lenoir (1822 – 1900), a Belgian-born Frenchman, constructed the first commerciallysuccessful internal combustion engine in 1858 by converting a steam engine to run on a mixture of coal gas and air. It was a double-acting two-stroke single and was very inefficient because the intake mixture was not compressed before ignition. A “jumping sparks” coil that Lenoir patented in 1860 looked after the ignition. Sales started in 1860 and well over 400 were built.

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Nikolaus August Otto

Nikolaus August Otto (1832 – 1891), a German, built the first four-stroke internal combustion engine after he saw a Lenoir engine pumping water, and was so fascinated that he could think of nothing else but engines. He learnt all he could about the Lenoir and became obsessed with the idea of building a better engine. He teamed up Eugen Langen to start a company to manufacture improved versions of the Lenoir engine. After a while they designed a totally different engine that was sold as an Otto & Langen engine.

It was a free-piston engine that utilised a very long single vertical cylinder containing an upside-down piston attached to a toothed rack. When the piston is at the bottom of the cylinder a gaseous fuel mixture is fed into the space underneath the piston. When this is ignited by a sparkinduced explosion, the piston is driven upward but the movement is stopped at the top of the stroke by a rubberised metal buffer. One-way valves near the top of the cylinder allow the gases to escape, and the upwards movement cools the residue underneath the piston so that the latter falls down again to the bottom. A ratchet clutch allows a free upwards movement, but the downwards movement of the heavy piston drives a flywheel via the motion of the rack against a pinion. This engine used less than half the amount of fuel to produce the same output as a Lenoir engine. It was crude, very noisy, and could only operate very slowly. On the upward stroke the bang from an explosion is followed by the clang of a heavy piston crashing against the buffer, while the rack makes a rattling sound against the flywheel gear. On the downward stroke there is a whining sound followed by some

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seconds of complete silence. It was good enough to win the Grand Prize at the 1867 Paris World exhibition due to the favourable fuel consumption. During the next five years they sold an average of close to 350 engines annually. In 1872 they reorganized the company under the name Gasmotoren-Fabrik Deutz. They also appointed an experienced engineer by the name of Gottlieb Daimler as factory manager, and he brought his friend Wilhelm Maybach into the fold as chief designer. The pair changed what was a handcraft operation into an organised manufacturing process. The trio designed a completely new engine called the Otto Silent Engine. It employed a normal crankshaft and crosshead just like a steam engine. Otto added two more strokes to the operating cycle, making it four strokes instead of the usual two. Otto thought that this would succeed in slowing down the rapid combustion of the fuel/air mixture and also force the richest mixture to migrate to a spot near the spark while ensuring the rest of the combustion chamber is filled with a leaner mixture. Later experiments showed that he was wrong. Daimler and Maybach left the company two years later. They wanted to experiment with high-speed engines that rotate at 800 revs while the Otto Silent engine is very happy at 250 revs per minute. A patent filed in 1862 by the French engineer Alphonse Beau de Rochas surfaced after a while. It described the four-stroke process, and such an engine was never built, but Otto’s four-stroke patent was eventually revoked. To this day the four-stroke cycle is called the Beau de Rochas cycle in France. The company sold 50 000 fourstroke engines in the first 17 years since their introduction. At present the company is called Deutz AG. They manufacture engines that range in power output from 4 to 500 kW in air, oil or water-cooled form.

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A memorial honouring Otto stands in the forecourt of the neo-baroque Deutz train station in Cologne. Carl Benz (1844 – 1929) is credited with building the first successful light-fuel-engined car. It was designed from the start as a light and beautifully detailed small car, and had one front wheel because Carl could not get the two-wheel steering geometry right. Gottlieb Daimler showed his first car in the same year, but it was just an engine fitted to a horseless carriage. Both inventors had workshops in the valley of the Neckar river, but they were about 100 km apart, and the two never met. In 1861 a Lenoir engine was installed at a machine tool works in Stuttgart, and Benz found some time during his student days to assist in managing it. After that experience, there was no stopping him. He had to build an engine. He married Bertha Ringer in 1872 and started an engineering company. It failed, but another company, financed by Max Rose and Friedrich Esslinger, called Benz und Cie was more successful and started to produce gas engines. Benz was able to devote some time to produce his first car. On a clear spring day in 1885 the car was at last ready. He started it and drove in circles on the workshop grounds. It took many months before the car was ready for an out-of-town trip, but he was able to drive the car in the streets of Mannheim. Every time he took it out the sight caused such a sensation that he feared the police would intervene. After some months he was able to drive a complete circular route without any involuntary stops. In 1888 the car was awarded a Gold Medal at the Munich Exhibition. The car’s mobility was a factor, and the judges especially praised the fact that it would run for an hour on one litre of fuel. In the same year his wife Bertha drove the car on a round trip of just under 200 km. It came about because Benz felt that the car would never sell, but Bertha

disagreed, and surmised that the car needed some favourable publicity. So, one morning in August at 5 a.m. she took their two boys, with her and set off to see her mother without telling her husband. Their destination was Pforzheim, about 100 km from Mannheim, and all three took turns driving. They stopped in Wiesloch to get fuel from a chemist, and added water to the cooling system. They had problems with a chain stretching, a blocked fuel line, an electrical short circuit, and repeated wearing of the brake shoes, but found help along the way to get going again. They arrived in Pforzheim late the same evening, and sent Benz a telegram as soon as they could. They returned five days later, and Bertha suggested various modifications, such as an extra gear for hill-climbing, that Benz was able to incorporate in subsequent models. At that time stationary internal combustion engines ran mainly on gas, so Benz had to find a substitute that was a liquid at room temperature but vapourised easily. He came across Ligroin, a light hydrocarbon, which was sold as a cleaning fluid, and used it in the first engines. Later, the petroleum industry introduced petrol. Benz didn’t like the hot-tube ignition used on some gas engines, so, after trying many different ideas he settled on a chromic-acid battery, a buzzer interrupter and a coil that gave a continuous series of sparks. He made his own spark plugs, until very much later when the Robert Bosch Company started to mass-produce them. Benz remained a director on the board until the merger with Mercedes, after which he served on the board of the new company until his death in 1929. A German tourist themed route called the Bertha Benz Memorial Route was opened in 2008. It follows, as much as possible, the route followed by Bertha. The various places she stopped at are sign-posted and it’s interesting

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TECH TALK

to note that the chemist she stopped at to get fuel is still in the same building and trading under the same name. Bertha died in May 1944. Gottlieb Daimler (1834 – 1900) Mercedes-Benz cars are among the products manufactured by a company that is, at present, called Daimler AG. It used to be called Daimler-Benz AG, and was formed as a result of a merger in 1926 between Daimler Motoren Gesellschaft, founded by Gottlieb Daimler, and Benz und Cie, founded by Carl Benz. Both founders built petrol-engined cars that first ran in 1886, but their first cars, subsequent products, and personalities were poles apart. Benz was conservative and rooted to the present. Once a design was completed he hated to make any changes, but his first car was a brilliant (for the time) little three-wheeler. Daimler was the forward-looking visionary, always experimenting and looking for new ideas and new markets, but his first car was just a conservative horseless carriage fitted with one of his single-cylinder engines. However, by 1890 he had also designed V-twin and four-cylinder internal-combustion engines, and had them fitted into various vehicles to create the first petrol-engined motorcycle, truck, bus, locomotive, boat and airship. He also explored many markets outside Germany.

Gottlieb Daimler

factory and brought Wilhelm Maybach in, as mentioned above. His changes resulted in production going from one engine a day to three. The partners appreciated this and gave him a block of shares in the company, but they still would not let him experiment with higher engine speeds or liquid fuels. He eventually resigned but managed to keep his shares in the company. In July 1882 he moved to Cannstatt, bought a house, and turned the garden shed into a workshop. Maybach later joined him.

Daimler also got involved with internalcombustion engines after seeing a Lenoir gas engine in Paris. He came away disappointed. The engine was crude and heavy, and he had something much smaller in mind.

Machining operations can be very noisy so a few months after they moved in the neighbours complained to the police that there were strange goings-on here. People came and went at odd hours, even in the middle of the night. The police suspected that they were printing money, and wanted to catch them red-handed. They asked the gardener to make a copy of the key, and tie the dog up. They went inside one night, but could not find anything suspicious. The gardener only told them about it much later.

Some time later he joined Otto’s company and initially thought this would be the ideal opportunity to build the kind of engine he had in mind, but he was wrong. Both Otto and Langen were only interested in making profits by selling as many of their slow-speed gas engines as possible. He modernised the

Other engines (running on gas) had used an open flame, covered by a slide, or a weak spark, but Daimler wanted a relatively foolproof system that did not need timing. In 1883 he invented and patented a hot-tube ignition system that worked well enough to at last succeed in building three small high speed engines.

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These ran on a liquid fuel that they called petrol after the word was coined by Herr Langen, who was Otto’s partner. In 1883 they designed the first engine suitable for installation into a vehicle and put it into what is in effect a motorised cycle. Some newspaper called it a motorcycle, and Paul rode it for some kilometres in November of that year. It was never developed any further. In 1886 Daimler ordered a horse-drawn coach and modified it to take one of his engines. He made some successful journeys with it just a few months after Carl Benz first drove his three-wheeler Daimler not only patented most of their inventions, but also exploited them to such an effect that he had a major influence in starting the motor industry in France, where Panhard and Peugeot used his engines, and the UK, where his patent office later became the British Daimler company. Daimler also opened a branch in Austria, but this soon started to build Austro-Daimler cars that differed from the cars built in Stuttgart. In fact, it is fair to say that no other pioneer had such a major influence on car design.

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

www.automobil.co.za


CLUTCH & BRAKE SPECIALISTS

We cause the right kind of friction... CBS is a unique workshop franchise for clutch and brake specialists. There are more than 20 Franchises countrywide offering a network of professional technicians specialising in clutch and brake and related services, ensuring guaranteed workmanship nationwide. The long established, well respected Clutch & Brake workshops are served from the heavy-duty division of Aftermarket Solutions with the leading brands of Fras-le brake linings, LUK clutches, First Motion clutches and Motopart drums and many other globally sourced products.

www.automobil.co.za

To locate your nearest branch, call 011 879 6000 or visit www.cbsclutch.co.za

JUNE 2018

A Division of Imperial Group Limited

CH6405

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CONSUMER AFFAIRS

RMI Consumer Affairs department champions the cause of fairness The RMI Consumer Affairs Department represents one of the strategic functions within the RMI, with the sole mandate to assist the motoring public by means of a dispute resolution process.

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on this matter, the RMI Consumer Affairs Office was approached to intervene and to assist in resolving the impasse, through mediation.

he RMI’s Pretoria office recently assisted in resolving a complaint between an RMI member and a consumer regarding the purchase of a vehicle. One of the core concepts of the Consumer Protection Act 68 of 2008 is the fact that consumers must receive all relevant information pertaining to the service or goods, and be informed on all aspects of the product to allow them to make an informed decision when purchasing goods or services. The consumer purchased a secondhand vehicle with approximately 50 000km recorded on the odometer, from the RMI member. However a few days after the transaction, the consumer approached the member as she was dissatisfied. It was alleged that the RMI member failed to disclose that the vehicle was once involved in an accident. Apparently, the consumer was advised by a friend after discovering that one of the vehicle’s body panels was not in

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perfect alignment with the front side of the vehicle’s body. Therefore, the latter became the reason for which the consumer was unhappy and as a result demanded a full reversal of the purchase. The RMI member’s suggestions to resolve the matter was rejected by the dissatisfied consumer. According to Section 56 (2) of the CPA, the buyer may return the vehicle to the seller within a six month period. There has to be an established defect with the vehicle, or the buyer must show that the vehicle that was sold to him / her was in a condition which was not fit for the purpose for which it was intended. In the given scenario when the retailer and consumer failed to reach consensus

The RMI was instrumental in assisting both parties to reach an amiable resolution. The Consumer Affairs Department played a very impartial role in the proceedings, resulting in the RMI member and the consumer agreeing to the necessary repairs being done to the vehicle. The outcome of the mediation session saved both parties time and unnecessary cost for litigation; further, this allowed the consumer to retain the vehicle knowing that the vehicle will be in a condition that was satisfactory to her. The RMI’s involvement in this matter focused mainly on the problem at hand, and the technical issues involved. This example highlights that by considering real life circumstances, acting within the applicable legislation and the Industry Code of Good Practice, disputes can be resolved in a cost-effective manner.

www.automobil.co.za


www.automobil.co.za

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INDUSTRY NEWS

Best Volkswagen dealers awarded Recently, Volkswagen South Africa recognised its top performing dealers at the annual Grand Prix Awards held in Johannesburg.

Chairman and Managing Director; Thomas schaefer, Hatfields BradKaftel, Head of the Volkswagen brand; Carla Wentzel, Chris Beukes and sales and Marketing Director Stefan Mecha

Hendrik Vermaak with the head of the Volkswagen brand Carla Wentzel

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he awards, which were themed‚‘ Make Magic Happen‘, honour the hard work of the Volkswagen Dealer Network who never cease in their endeavours to make Volkswagen the reputable brand that it is. With 18 award categories and over 100 winners, the event acknowledged and rewarded the dealers who performed at their highest level and lead the way for the rest to follow. Juraj Dolezal from Lowveld Motors, won the Dealer Micro Group of the Year award for the first time. This award requires the Group to have a minimum of two dealerships contributing a minimum of 2% towards the Volkswagen Dealer Sales result Hatfield Group’s unrelenting spirit ensured that for the first year in being included as a Macro Group, they won one of the most significant awards of

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the evening: Dealer Macro Group of the Year. The requirements for this award are the group must contribute at least 8% towards the Volkswagen Dealer Sales result. Peter Bosman from Hatfield VW Rivonia walked away with the coveted Dealer of the Year award. The Dealer of the Year award is given to the Dealership that delivers the best and most consistent overall results across the business. The Dealership must represent the values of the Volkswagen Brand at the highest level. The recipient of the sought-after Diamond Pin Award was Hendrik Vermaak from McCarthy Group. Vermaak boasts an admirable 19 years of operational excellence in the Volkswagen Brand. Vermaak was recognised for true leadership, inspirational achievements as well as being a role model in the dealer network.

Chairman and Managing Director Thomas Schaefer; Micro Dealer of the Year, Juraj Dolezal; Head of the Volkswagen brand, Carla Wentzel and Sales and Marketing director Stefan Mecha

Chairman and Managing Director Thomas Schaefer; Dealer of the Year, Peter Bosman; Head of the Volkswagen brand, Carla Wentzel and sales and Marketing Director Stefan Mecha

“The Dealer network, which consists of 108 dealerships across the country, is an integral part of Volkswagen South Africa’s business and I am proud of the dedication and commitment shown by all winners to make the Volkswagen Brand the icon that we know it is. 2017 was a great year for Volkswagen South Africa and I look forward to an even greater 2018,” said Thomas Schaefer, Volkswagen Group South Africa Chairman and Managing Director.

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Driven by VARIETY

Bosch is one of the world’s largest suppliers of automotive components and the quality replacement parts manufacturer of choice with almost all leading vehicle manufacturers in the world. Discerning motorists and workshop professionals in over 132 countries rely on Bosch’s extensive range of high-quality products to get the best from their vehicles. Choose the best. Choose automotive products from Bosch. www.bosch.co.za What drives you, drives us.

www.automobil.co.za

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RMI UPDATE

Gary McCraw, Director of NADA, recently visited the NADA convention in the USA where he saw a shift in the potential trends surrounding the future of dealerships

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aving attended the NADA USA Convention during March 2018, it was interesting to note, that in the past few years there had been a very strong focus towards digitalisation and the advent of virtual dealerships. In 2018, NADA USA has tempered its view on this potential trend and has taken a more pragmatic look at the future structure of motor vehicle dealerships. Research conducted by NADA USA concluded that the average new motor vehicle franchised dealership would see many changes to how the dealership would be set up and run, but no significant “disruption” to the underlying business

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model would take place. Although this was the overriding conclusion, it was made very clear that digitisation and virtual purchases should form part of the broader business strategy of a dealership. In essence, the motor vehicle business is still very much a people’s business and we need to ensure that the youth of today are exposed to the industry at an early age and they be encourage to enter the industry as their career of choice. Attracting youth into the retail motor industry is also a key challenge within SA and a solution needs to be found to educate this sector of our population as to the career opportunities that exist within our vibrant industry. In the USA there was also strong focus regarding on-going training within the

dealership environment as a key deliverable, and there is strong evidence that relevant focused training gives the highest return on investment for a dealership. Another area that was highlighted was the need to maximise sales within the workshop and parts departments in an endeavour to ensure financial sustainability of the business as a whole. It was suggested that that could be achieved by attracting more customers by making use of digital marketing (including videos). It was interesting to note that according to research conducted in the USA, when surfing the internet people will click 51 times more on a video than normal text. The research indicated that the by 2015 the penetration of electric vehicles would be less than 5%.

www.automobil.co.za


UTO ARE &

IAGNOSTICS

A NEW GENERATION OF SERVICE Auto Care & Diagnostics is a national network of independently owned workshops specialising in vehicle service, maintenance and repairs, plus providing the latest in automotive diagnostics solutions thereby catering for the changing needs of vehicles owners.

From left to right – Hennie Marnitz, (Sa Airbrake & Truck Bloemfontein), Connie Hartley (Connie B N B Bloemfontein), Miemsie de Jager (organiser, Sereni-T Business Development Bloemfontein) Jacques Viljoen, RMI IR Specialist / Office Manager Bloemfontein  & Mark Erasmus, RMI Administrator

WE SERVICE ALL MAKES ALL MODELS

Bloemfontein.

For more www.automobil.co.za

information, please visit www.acdworkshop.co.za

CH6405

A Division of Imperial MARCH 2018 - 39 Group Limited


RMI UPDATE

Valuable Business Proposition

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he owner of an established Johannesburg South-based specialist workshop business, serving both the workshop sector and the public in Gauteng and beyond, is nearing retirement age and wishes to sell the business as a going and profitable concern. This specialist establishment has become an industry household name over the past 40 years and is well known for professionalism and innovation in service delivery. This is an unprecedented opportunity for a passionate entrepreneur who is interested to acquire a profitable concern with a sound reputation. Interested members are requested to contact robert@rmc.za.net for more detail.

NAACAM Show heads for Durban in 2019

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he National Association of Automotive Component and Allied Manufacturers (NAACAM) has announced that following a competitive host city bidding process, the NAACAM Show 2019 will be hosted by eThekwini Municipality in partnership with the Durban Automotive Cluster (DAC). This will take place at the Durban International Convention Centre (ICC) (Inkhosi Albert Luthuli ICC Complex) on 12 – 14 March 2019. The inaugural NAACAM Show in April 2017 was held at the Durban ICC and saw 1 304 delegates participate in a two-day conference and exhibition. Delegates engaged with 46 speakers on nine conference themes, including manufacturing best practice; black supplier development and transformation; the future of the automobile, and the South African Automotive Masterplan. The NAACAM Show 2017 exhibition saw 183 automotive component manufacturers, government and support service agencies present their offerings to delegates and key automotive stakeholders – this included the profiling of 38 black-owned suppliers. A highlight of the 2017 Show was the facilitation of

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122 pre-arranged buyer-supplier linkage meetings, as a key goal of the Show is to deliver significant localisation benefits. Delegate feedback in 2017 was incredibly positive, with 60% of respondents agreeing that it is likely that new business will be secured in the future, based on their NAACAM Show participation. In 2019, with the support and endorsement of the Department of Trade and Industry, the Original Equipment Manufacturers (OEM) Purchasing Council, Automotive Supply Chain Competitiveness Initiative (ASCCI), as well as National Association of Automobile Manufacturers of South Africa (NAAMSA) and National Union of Metalworkers of South Africa (NUMSA), the NAACAM Show aims to be the premier automotive manufacturing growth, technology, transformation and stakeholder engagement forum in Africa. The NAACAM Show is an initiative wholly owned by industry, with senior component manufacturing leaders providing oversight to its delivery. Renai Moothilal, NAACAM’s Executive Director stated that “Direct supplier overseeing of the initiative is key to

ensure that we deliver an event which reflects on the sector’s most relevant issues and opportunities, whilst also clearly showcasing the capability and capacity of the SA automotive value chain. We are grateful to the executives who have given their time to assist us in our mission”. Part of this delivery involves sourcing partner and stakeholder input through a stakeholder reference group, given the highly developed nature of stakeholder structures in the automotive manufacturing sector.

The NAACAM Show is scheduled to take place from 12-14 March 2019 at the Durban ICC, and more information can be found at www.naacamshow.co.za

www.automobil.co.za


Truck 2018

Caption: from L to R – Vishal Premlall (SAPRA Director), Richard Khuduga (SAPRA Retailer), Ms Rebotile Komane (DoE) & Wayne Harrison (B-BBEE Consultant)

Conference & Expo

Co – Located Events:

Fleet Expo

MH Expo

2018

South Africa’s Premium Fleet & Light Commercial Expo

2018

South Africa’s International Materials Handling Exhibition & Workshop

Sponsored by

11 & 12 July 2018 Kyalami Grand Prix Circuit

Supported by these leading organisations

Organised by Future Group – Contact: enver@thefuture.co.za / Mobile: +27 (0)83 300 6003 South African Trade Promotions – Contact: sarah.h@satp.co.za / Mobile: +27 (0)79 557 1555

www.automobil.co.za

www.truckx.co.za

DECEMBER/JANUARY 2018 -

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RMI UPDATE

Partinform goes North to Polokwane

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he Partinform Automotive Components Trade Show visited the Polokwane Royal Conference Centre on the 9th of May 2018. The event was well supported with 131 guests in attendance. This once again showed the popularity of this event which promotes quality parts in the automotive industry. The various stands were busy with visitors asking questions about the parts and brands on display and later in the evening this stood them in good stead as the popular quiz show took place and contestants were asked questions about the various brands and products. The sponsors of the prizes for the contestants of the quiz show

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were Exide Batteries, Bosch, ATE and Federal Mogul with the winner of the evening to attend the go-kart racing at the Partinform year end function.

in increasing market awareness of quality branded products which is to the mutual benefit of all in the automotive industry.

As usual the Partinform members went to great lengths to ensure that their stands were attractive, well laid out and informative to the visitors. The winner of the “Best stand of the evening” award went to Jonnesway.

The next Partinform road show takes place in Richards Bay on the 20th of June 2018 at The Outpost Restaurant, Kurperkurwe Street, Richards Bay Country Club, Meerensee from 17h30.

The RMI stand attracted attention with many questions being asked about the benefits of belonging to the organisation. The RMI continues to support the Partinform initiative of “good quality parts” in maintenance, service and repairs and

If you are involved in the automotive industry come and visit the event and spend time communicating with your fellow members of the automotive community or if you need more information contact Charmaine at Charmsevents on 082 3819026 or charmsevents@mweb.co.za

www.automobil.co.za


AUTO-ELECTRICAL SPECIALISTS

We find your car positively electrifying!

Motolek is a unique workshop franchise for auto-electrical specialists. There are more than 40 Franchises countrywide, offering a network of professional technicians specialising in auto-electrical and related services ensuring guaranteed workmanship nationwide. The Motolek franchise of auto-electrical specialists continues to commit to the training and investment necessary to service the wide range of electronic fuel injection and engine management systems available.

www.automobil.co.za

To locate your nearest branch, call 011 879 6000 or visit www.motolek.co.za

APRIL 2018 -

A Division of Imperial Group Limited

CH6405

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LABOUR the Commissioner will issue a default award by taking into consideration and relying merely on the uncontested version of the applicant. The only recourse at the disposal of the employer in such circumstances would be to bring a rescission application. This application would be brought in the hope of rescinding the default award issued, which can similarly be rightfully opposed by the employee. Naturally, success in such applications can not be guaranteed. In the Motor Industry, the rules of the Dispute Resolution Centre (DRC) provides clarity on the process relating to non-attendance.

Attending an arbitration that has been scheduled by the relevant forum for a specific day, might not always be possible says Douw Breed, a director at Barnard Incorporated Attorneys, Centurion

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his could be attributed to various reasons that could include, among others: The Respondent’s witness falling ill before the date of the arbitration; the witness of the respondent might have applied for annual leave prior to having received the set down notice and will be away on the scheduled day, or any other very compelling reasons that may arise necessitating the witness to be at the business premises, and therefore be unable to attend to the arbitration. An arbitration is a formal process. Attending to the process at the relevant forum is essential in circumstances where failure to

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attend to these matters may lead to unwanted consequences and outcomes for both the employer and employee. Should the employee fail to attend the scheduled arbitration – for which proper notice was served – the commissioner will likely issue a dismissal ruling, striking the matter from the roll. The only recourse that the employee will have is to bring a rescission application in order to rescind the ruling issued. In turn, the employer will have the right to oppose such an application. Consequently, the defaulting employee’s fate will be in the hands of the commissioner. However, should the employer fail to attend the arbitration after being duly notified,

Rule 31 of the Rules of DRC concerning non-attendance state: 1) If a party to the dispute fails to attend or be represented at any arbitration proceedings before the DRC, and that party a) had referred the dispute to the DRC, a Commissioner may dismiss the matter by issuing a written ruling; or b) had not referred the matter to the DRC, the Commissioner may – i) continue with the proceedings in the absence of that party; or ii) adjourn the proceedings to a later date. 2) A Commissioner must be satisfied that the party had been properly notified of the date, time and venue of the proceedings, before making any decision in terms of sub-rule (1). 3) If a matter is dismissed, the DRC must send a copy of the ruling to the parties within 14 days. Clearly, it is not always possible for the parties to be in attendance. The failure to attend to these very important matters cannot merely be construed as the parties’ lack of interest or disrespect for the importance of the procedures.

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Fortunately, both the employer and employee can apply for a postponement of the pending arbitration, provided that it is done in accordance with the rules of the relevant forum. There are various manners in which parties can postpone the arbitration: the parties can either agree to the postponement or, in the absence of such agreement, can elect to bring an application in order for the arbitration to be postponed. Rule 24 of the rules of the Dispute Resolution Centre (DRC) deals specifically with postponements and provides clarity on the process that needs to be followed. Rule 24 states as follows: 1) An arbitration may be postponed – a) by written agreement between the parties; or b) by application and on notice to the other parties in terms of sub rule (3). 2) The DRC must postpone an arbitration without the parties appearing if – a) all the parties to the dispute agree in writing to the postponement; and b) the written agreement for the postponement is received by the DRC at least seven (7) days prior to the scheduled date of the arbitration. 3) If the conditions of sub-rule (2) are not met, any party may apply in terms of Rule 32 to postpone an arbitration by delivering an application to the other parties to the dispute and filing a copy with the DRC before the scheduled date of the arbitration. 4) After considering the written application, the DRC may – a) without convening a hearing, postpone the matter; or b) convene a hearing to determine whether to postpone the matter. In the life of business, it is a common occurrence that either the employer or employee cannot attend a hearing with the consequent predicament. The

employer or employee – whichever has failed to attend – will subsequently have to apply for such a postponement on the day of the arbitration either through their employer organisation representative or the union official respectively. It is imperative that the necessary proof for the postponement is presented to the presiding commissioner in order for him or her to rule on the applied postponement. When applying for a postponement, there will be no absolute right to a postponement. The Commissioner has the discretion as to whether a postponement should be granted or not. In the matter of The Only Professional Modern Autobody CC t/a Modern Collision Centre vs. MISA obo P J Gouws and 2 Others it was held that there was no right to a postponement. Deciding to postpone an arbitration should not be taken lightly, by either party. In Voster vs. CCMA and Others (2002) 23 ILJ 1899 (LC) it was held that postponements in arbitrations should not be granted easily. Although the granting of a postponement for an arbitration is not a right and is not granted easily, it does not mean that the postponement can merely be denied, just because the commissioner has the discretion to do so. In the matter Supersquad Labour Brokers vs. CCMA & Others (JR2899/12) the commissioner refused a postponement for the employer

party. The request for the postponement was due to a very crucial witness of the employer not being able to testify on the particular day. The Court held that this refusal was unreasonable and amounted to a gross irregularity. Having regard to the above, and the rules of the DRC (and any other applicable forum) it is important for the parties to adhere to the rules in requesting postponements. It is indisputable that postponements cannot be regarded as a right that is acquired by any of the parties. The presiding commissioner is entrusted with deciding on whether the postponement should be granted or not, having regard to a number of factors and considering the interest of justice. It is essential that both parties prepare thoroughly for the scheduled arbitration in the event that the postponement is refused and the arbitration proceeds.

Douw Breed is a director at Barnard Incorporated Attorneys, Centurion

www.automobil.co.za

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LEGAL EAGLE

A cryptocurrency is broadly defined as an Internet-based digital currency that exists in the cybernetic realm but not many, have paused to think of the tax consequences of cryptocurrencies

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any people and businesses have been investing money into various cryptocurrencies with the hope of earning huge returns and profits, just as the first hugely successful cryptocurrency, Bitcoin proved possible. Bitcoin created the hope that if an investor shows faith in a cryptocurrency in its infancy, they will be well rewarded when cashing-in at the peak of the cryptocurrency’s success. Due to the success of cryptocurrencies, many businesses have commenced with accepting cryptocurrencies as a form of payment for services or products.

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It is argued that cryptocurrencies are currencies that can be used locally and internationally to pay for goods and services without the use and delays of a bank. Not many, however paused to think of the tax consequences of cryptocurrencies. The general public is of the view that tax is not payable on cryptocurrencies as a cryptocurrency is not a physical currency. Tax applicable to cryptocurrencies The South African Revenue Services, on Friday 6 April 2018, issued a statement that it will continue to apply normal

income tax rules to cryptocurrencies until such time as the legislator determines alternative taxation rules and guidelines for cryptocurrencies. SARS has warned taxpayers that they are to declare cryptocurrency yields as part of their taxable income, whether it is a gain or a loss. A business that accepts cryptocurrencies for the payment of goods and/or services delivered will also have to declare the income as part of their taxable income amount. The failure to do so will result in penalties and interest being payable by such businesses.

www.automobil.co.za


SARS has urged taxpayers who are uncertain about transactions regarding cryptocurrencies to have reference to the Binding Private Rulings from SARS which will provide further guidance. Capital Gains Tax (CGT) and Value Added Tax (VAT) At this point in time SARS does not classify any cryptocurrency as a currency as it is not widely used and accepted in South Africa as a medium of payment, and therefore cryptocurrencies are generally taxed as an income and not on a Capital Gains Tax (CGT) basis. SARS has warned it has the option to at a later stage consider gains as a form of capital, as set out Eighth Schedule of the Income Tax Act No. 58 of 1962 for taxation under

the CGT, later on. For now, SARS views cryptocurrencies as an incorporeal asset of the taxpayer, capable of generating an income and therefore will, in most instances, only apply income tax rules and regulations to cryptocurrencies. SARS has further stated that cryptocurrencies and the consequences of value-added tax (VAT) thereon will be reviewed. For the moment, a supplier of cryptocurrencies will not be required to be registered as a VAT vendor with SARS. It is important to note a business accepting cryptocurrency as a form of payment will have to include the amount they receive from the cryptocurrencies as an income and as a part of their turnover and may well have to register

for VAT if they are over the threshold of one million rand turnover a year. Conclusion Anyone who is under the impression that cryptocurrencies are the way forward to make a quick profit without paying taxes, as required by SARS, should think again. It is anticipated that the SARS audit committees will be on the lookout for undeclared gains or losses flowing from cryptocurrencies, and those taxpayers who have not declared the same as an income will need to pay penalties and interest to SARS. In addition to the above, tax reform and further amendments to the current legislation are expected so that cryptocurrencies will be fully regulated by the legislator and SARS.

Chanique Collet-Serret is an associate at Barnard Incorporated Attorneys in Centurion. RMI4Law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4Law, call 0861 668Â 677. Legalex (Pty) Ltd, registration number 2003/003715/07, is an authorised Financial Services Provider (FSP 5277) and underwritten by Guardrisk Insurance Company Limited (FSP 26/10/75)

David Furlonger

www.automobil.co.za

JUNE 2018

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BUSINESS MANAGEMENT

Reaching Goals Requires Solid, Prioritised Planning Any success-oriented entrepreneur understands that success doesn’t just happen, says Pieter Scholtz

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uccess requires a willingness to take risks, financial sacrifice, an incredible amount of hard work, and, perhaps most importantly of all, the creation and execution of a well-devised plan to make their dreams a reality. A plan is a roadmap to where you want to go; working hard without a plan will get you nowhere. In order to best utilise your time, money, and energy, you will need to decide not only what to do, but how to best go about achieving what it is that you want. Whether it’s hiring additional staff, opening a new branch, reducing your number of work hours, or expanding your offerings, you need to create a roadmap that will guide each step of the process. Of course, it’s easier to talk about making a plan than to actually create one. One of the first issues you’ll encounter is determining how to prioritise certain tasks. One way to help you make that decision is to evaluate how much control you have over what it is that you hope to achieve. For example, you may want to add a new item onto your menu, only to find out that the market price for that item has increased by 50% over the past year. You can’t control the market, but you can control the type and quantities of products you offer. Understanding what things you can and can’t control is a good starting point, and from there you can divide your plan into three categories: ‘needs’, ‘wants’, and ‘would like to’s’. By categorising your various priorities this way, you’ll have a better understanding of what is important, as well as the best way to approach it. The following paragraphs will expand on these categories, helping you differentiate immediate needs from short- and long-term goals.

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Needs: ‘Needs’ represent the most important fundamentals for your business’s continued survival. Paying the bills, obtaining product, maintaining a monthly profit – these all represent things that your business cannot live without. A ‘need’ should always be your first priority, and the goals you set for yourself should not jeopardise meeting these needs. For example, say you want to delegate some of your daily routines to other employees so you can free up your time to perform other tasks. Before you actually hire somebody for the job, you need to make absolutely sure that they are capable of performing up to par and meeting the obligations of the business! An incompetent and/or lazy hire can do a significant amount of damage to your bottom line, especially if they are in a management role. If hiring an extra person to fulfil a ‘want’ puts meeting a ‘need’ in danger, you might just have to shoulder long workweeks for a little bit longer. Wants: This represents what you are aiming at attain – think of these as shortterm motivators. This can refer to either a personal goal or a business-oriented goal. For example, you might want to boost your yearly sales by 25%, or take a vacation at the end of the quarter. ‘Wants’ are a great way to chart your course in the short term, and they can be of great use in motivating both yourself and your team to greater heights. However, it’s important to

remember that a want isn’t necessarily a priority for you, nor will it provide the kind of long-term vision that is required for you to attain true success. Would Like To’s: This is the category that contains your long-term plan for the direction you want your business to go into. Unlike a ‘want’, a ‘would like to’ involves an accomplishment that will have a much more significant impact on your business’s bottom line – think of expanding into a new market, or franchising your business for the first time. ‘Would like to’s’ will ultimately be your guiding force in the long run, and ideally your ‘wants’ and ‘needs’ will align with what it is that you hope to achieve. If your ‘needs’ are merely being met, then you won’t be able to satisfy your ‘wants’ or achieve your ‘would like to’s.’ Aim for more – instead of breaking even, reach for a 20% profit by the end of the year. Then, use those profits to expand your business, attracting more clients and perpetuating a virtual cycle of self-propelled growth! Each one of these three types of priorities has their own important role within your growth plan, and keeping them in harmony with each other is a crucial underpinning in successful businesses everywhere. If you understand how to balance these priorities when creating and executing your plans, you’ll be amazed at how much more smoothly everything runs.

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. www.actioncoach.co.za / 012 665 1015

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Keeping the pressure up in your fuel system DIESEL FUEL INJECTION & TURBO SPECIALISTS

ADCO is a unique workshop franchise for diesel fuel injection specialists. The national footprint of more than 20 Franchises offer a network of professional technicians specialising in diesel fuel injection and related services, ensuring guaranteed workmanship nationwide.

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To locate your nearest branch, call 011 879 6000 or visit www.adco.co.za

A Division of Imperial

Group Limited MARCH 2018 -

CH6405

49


RMI NEWS

T

he practice of most drivers is to wait until the vehicle itself makes it known that the brake system needs attention. This is often too late, from a cost perspective. There are various ways in which the vehicle will advise you of the need for the brakes to be serviced. The first two are the easy ones, both of which are related to sensors, either mechanical or electronic sensors, providing advance warning of the need to service the system. The mechanical sensors will normally provide a screeching sound which is caused by a specifically designed piece of metal finally touching the brake disc, after sufficient wear of the brake pads. The electronic warnings are usually in the form of a warning light on the dashboard, which is also activated after sufficient wear of the brake pads has occurred. The non-sensor warnings of a brake system in need of urgent service are more brutal, the most common warning being the age-old ‘Metal to Metal’ noise, which sounds like a severe grinding of two surfaces together. The other warning is the one that comes too late for your safety and that is when the vehicle fails to stop when required, hopefully not causing an accident. Both of these warnings occur at a point where the costs are exponentially increased due to additional parts damage, like discs, drums, shoes, and even callipers at times. The best practice for brake safety is to monitor first the kilometres travelled since the last brake inspection, and/or to note

50 - JUNE 2018

that the brakes should be inspected during a routine service. However, it is always a good idea to be aware of these safety critical (Life and Limb) components. Most RMI TDAFA accredited fitment centres will be able to inspect your brakes and if necessary perform the brake service required in order to keep you safe on the roads, with reputable parts sourced from an RMI MPEA (Motor Parts and Equipment Association) accredited dealer. So far we have referred to the Brake System, so let’s look at the various parts of a brake system, in no particular order, which will emphasise the complexity of the system and show that a vehicle’s brakes are more than just brake pads: • • • • • • • • •

Brake Fluid (DOT 4, or DOT 5.1 Only and Not Hydraulic oil or fluid) Brake Pads Brake Discs Brake Callipers Brake Master cylinder Brake Hoses (not hydraulic hoses) Brake shoes (rear) Brake Drums (rear) Wheel Cylinders (rear)

A best-practice brake service will require a number of steps, more than just a quick change of brake pads. The first step is to determine if the brake pads have worn down. The quickest way to check this is by inspecting the brake fluid under the bonnet, provided that no one has topped up the brake fluid. If the brake fluid level has dropped, it is a fair assumption to make that the brake pads either require replacement or are nearing replacement. This can be done by anyone.

Once it is established that a brake service is required, it must be understood that the Brake System is a whole system, in that all the components work together in a set manner. As such, the Master Cylinder must be able to transfer sufficient Brake Fluid pressure to the Brake Callipers and/ or Wheel Cylinders for them to be able to actuate the brake pads and/or shoes against the discs or drums, which in turn will provide the energy transfer demanded to stop the vehicle safely. This means the brake fluid must be in good condition to be able to provide adequate pressure at the temperatures for which it is designed to operate within. Where brake fluid has become dark in colour it is a fair assumption that the brake fluid requires a flush out and change. Most manufacturers of brake fluid will recommend a full change of brake fluid at least every 24 months if not sooner. How long do brake pads last? This is a question often asked, and the only answer is that it depends on the driving style (speeds, braking, etc.), the usage of the vehicle, the road conditions where the vehicle is used, loads carried in or on the vehicle, and if the vehicle is used for towing of trailers or caravans. These are all factors contributing to varied rates of wear of the brake pads. So in a nutshell, there is no finite answer to the question. When an RMI Fitment Centre performs a brake service there are a number items that require observation and evaluation during the work. This essentially requires some “Time”, and although we are all in

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a hurry, the servicing of a brake system should not be rushed - it is after all the most safety-critical part of a vehicle. The callipers are intricate components which are made up of a body with a bleed nipple, sliding pins and their seals and dust covers, and finally a piston which has a pressure seal and a dust cover. Common conditions that occur with callipers that cause premature brake wear, brake fade and ultimately brake failure are manifested in the lack of attention to the service of the callipers. All the items mentioned need to be clean, free from restriction of easy movement and not worn or damaged in any way (especially the internal seals and dust covers). Where any interference with movement is noticed it is a clear indication that the calliper needs to be stripped and cleaned properly, using white spirits only. Interference would be indicated by the inability to push the piston backwards by using only one’s thumbs (provided the bleed nipple is open to waste). The use of clamps and tools to retract the pistons (unless it is a handbrake calliper, which requires another technique) is never advised. Seals should always be replaced, and the piston and slide pins polished during a calliper service. New brake pads should never be fitted to a brake system without either skimming the brake discs or replacing the brake discs. Skimming of the discs is not only to get a smooth surface but an essential part of the brake service process. The brake friction material (brake pad) needs

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to transfer into the brake disc across the entire portion of the disc where the brake pad is forced against the disc (the brake path). This is known as “Bedding-In” of the brakes. For this to occur efficiently and completely, the disc surface needs to be clean and free of any other older bedded-in residual brake friction material (previous brake pads) to prevent the contamination of the new brake pads being fitted. There is no short-cut. It is either skim or replace, or else you will not get the best value for money from the new brake pads. Let’s explore the brake fluid a little. This is a fluid which is known as a hygroscopic fluid, which means it easily absorbs water. Brake fluid is required to resist boiling (forming gas bubbles) up to certain levels of temperature. This allows the pressure to be maintained during braking when heat is generated. When the fluid absorbs water it negatively affects the Boiling Point of the brake fluid. A mere 3% of brake fluid will reduce the boiling point by 50%, which is patently dangerous. Under normal conditions brake fluid can absorb as much as 3% in a space of three years. Thus, for safety’s sake the recommendation is to change the brake fluid completely every two years for safety, and that means your safety. Now you may say, OK the front brakes are serviced and sorted out, let’s go!!! But wait there’s more, to come. Remember we said the system is a whole system. Now that we have dealt with the front brake system, we need to move our focus to the rear brakes. In the event the

rear brakes are callipers, discs, and brake pads, the same applies as with the front brakes for cleaning and servicing, except in the case of Handbrake Callipers, which will require the use of a wind back tool to retract the piston into the calliper body. If the rear brakes are drum brakes (currently most common) then the principle of cleaning everything and ensuring free and unrestricted movement also applies. The important issue with the rear brakes as part of the whole system is to ensure that the rear brakes are correctly adjusted. The brake system is designed that most of the brake force is applied at the front of the vehicle, with a lesser portion at the rear. The vehicle requires a 100% brake force, which is applied through the front and the rear brakes and is split as an 80/20, 70/30 or 60/40 per cent ratio between the front and the rear. Where the rear brakes are not working or are incorrectly adjusted, then 100% of the braking is demanded at the front, which the system was not designed to provide. This causes high brake pad wear rates at the front, reduced braking efficiency, and can lead to brake failure for the vehicle. So in conclusion, we need to accept that a brake service is more than just a quick job. It is a skilled process, requiring knowledge and experience. The process does take time to perform completely and correctly. Brake system service is best not performed as a DIY function, unless all the parts and knowledge are on hand. Rather engage the services and expertise of an RMI accredited TDAFA fitment centre.

JUNE 2018 -

51


CONSUMER

Know Your Plan: The Difference Between a Service and a Maintenance plan When purchasing a car, it can be daunting to have to deal with – and make decisions about – which motor financial services products or plans to invest in

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ften times, they all sound the same and the added cost of these plans can almost seem unnecessary on top of the monthly instalments you have already committed to for your car financing and insurance. Greig Hains, Managing Director at motor financial services provider, MotorVaps, outlines the key differentiators between the two most popular value-added products (VAPS) - warranties and service plans. “With a better understanding of what these plans cover, you can make an informed decision on which is best for you.” Warranties A warranty is basically a contract with your car’s manufacturer (or alternative service provider) that if anything goes wrong with the mechanical components of your car, these defects will be resolved or repaired at no cost to you.

Components most commonly covered under warranty include the engine, gearbox, differential, turbo assembly and more. These are essential, and expensive, components that are critical to the safety and smooth running of your vehicle. The servicing and maintenance of the vehicle is not covered under a warranty. Likewise, any damage due to driver abuse, negligence or incorrect use could impact on your warranty terms. Service Plans A service plan covers the cost of having your car serviced at set intervals, by an authorised service centre, in line with manufacturer recommendations. As with a warranty, service plans are generally restricted to a specified time and/or mileage.

New cars almost always come with a warranty which differs from one manufacturer to another – as well as across vehicle ranges and models. However, all warranties are restricted in terms of a set time and/or mileage – for example, a three-year or 100 000km warranty will only be valid for the stated period or mileage, often whichever comes first.

Services often include the replacement of items like air, fuel and oil filters, brake fluid, oil and gearbox oil, spark plugs and coolant (depending on the manufacturer’s specifications). The regular servicing of a vehicle is vital for it to run optimally and safely. Investing in a service plan also means that you are not impacted by price changes relating to labour or parts – you have agreed to the once-off (or monthly) rate and are therefore able to budget accordingly.

For those purchasing a second-hand car that is no longer under warranty, motor financial services companies like MotorVaps offer extended warranties for vehicles of different brands and ages.

A common misperception is that a service plan is totally comprehensive and covers other components such as those impacted by wear-and-tear. This is not the case. Wear-and-tear items like brake pads and

52 - JUNE 2018

windscreen wipers are covered under a maintenance plan (a more comprehensive plan which also encompasses all servicing costs). Hains explains that it wasn’t all that long ago that only top-of-the-range vehicles came with these plans. “Now, most cars are sold with some kind of service or maintenance plan – either included in the purchase price of the car or as an optional extra. Older, second-hand cars are also eligible for a service plan through reputable motor financial services providers.” “While these plans come at a cost, they are a life saver in the event of an unexpected mechanical fault or when a major service is due to be carried out on your car to keep it running optimally. These circumstances can really take a bite out of your monthly budget if you haven’t planned for them in advance,” he adds. Hains highlights that it is crucial for South African motorists to know what is available to them when purchasing a new or used car. “Many motorists already have these plans and don’t know what they are entitled to. Others are aware that their plans are coming to an end and believe that they have no options to extend their coverage. It is important for South African motorists to take some time to investigate which option makes sense for them, to save them money, grey hairs and sleepless nights,” he concludes.

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STORES AND OTHER LEADING SPARESHOPS JUNE 2018 53 CH6702


INDUSTRY NEWS

Motul launches Additives and Lescot car care ranges Motul and OEM Lubricants chose the Motul Museum in Linksfield as the setting for the launch of two new product ranges which will be available immediately in South Africa through OEM Lubricants

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he Motul Additives Range draws on Motul’s expertise and is aimed specifically at professionals; its launch is a recognition that South African automotive professionals have a need to extract even better performance from their vehicles. The products in the new Motul Additives Range have been specially developed to be added to fuel to restore and maintain engine performance and, in some cases, improve it. Its purpose is to remove deposits from the fuel system and the engine, leading to improved performance and economy, and reduced environmental impact. Motul’s new Fuel System Clean, Diesel System Clean, Valve and Injector Clean Additives products have been formulated to clean the combustion chamber, injectors, and fuel circuit, while DPF Clean has been developed to address the issue of Diesel Particulate Filter system clogging. Motul’s commitment to improving efficiency was underlined by the inclusion in the Motul Additives Range of products designed to flush the engine

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and automatic transmission before an oil change. These products – Engine Clean and Automatic Transmission Clean - were described as being able to clean any components that come into contact with lubricant by removing deposits and suspending them in the oil before it is removed from the engine or automatic transmission during the lubricant change. The Motul Additives Range will be distributed in South Africa – alongside the complete range of Motul Automotive lubricants – by OEM Lubricants, and will also include Throttle Body Clean and two coolant additives (Radiator Clean and Radiator Stop Leak). Consumer Car Care Products Attendees at the launch event were left in no doubt as to Motul’s commitment to assisting professionals to obtain maximum engine and transmission performance, but also of their recognition of the need for optimum aesthetic performance. This was the rationale behind Motul’s recent acquisition of the Lescot Company, a French manufacturer of car embellishment and car care products. Lescot has over 40 years’ experience in

producing premium car care products and accessories, formulated and designed to clean and protect both the exterior and interior of the vehicle, including paintwork, glass, plastic and chrome components. The quality of Lescot products has earned them a loyal following among classic car collectors and discerning drivers around the world. Lescot’s range includes Power Shampoo (a concentrated formula that cuts through grease and road film, protects paintwork and facilitates water run-off) and All in One Polish, for bodywork renewal and protection and a glossy, eye-catching finish. Lescot also manufacture car care accessories including double-sided 100% cotton washing mitts and the Flexi Hydro Blade for removing water after washing. As a finishing touch, their Purifier on Air spray replaces pet and tobacco odours with that new-car smell. Lescot products will be available (again via OEM Lubricants) at selected automotive retail stores across South Africa and online at www.thefloatchamber.com Taken together, Motul’s two new product ranges offer vehicle professionals and South African consumers the opportunity to work with, own, and drive vehicles that not only look their best, but also perform at their best.

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www.automobil.co.za

NOVEMBER 2017

55


INDUSTRY NEWS

VARTA now distributed by Auto X VARTA Launch Presentation

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ith its innovative technology, VARTA aiming to move automotive aftermarket battery business to the next level, driven by OEM requirements translated to sustainable aftermarket needs.     Johnson Controls and Auto X have announced the distribution of VARTA automotive batteries by Auto X in South Africa and selected countries across the African continent. Through Auto X’s established and extensive distribution network, Johnson Controls, the world’s largest manufacturer of automotive batteries, will improve local availability of VARTA while extending its market presence and building brand awareness in Africa.     

56 JUNE 2018

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VARTA Launch: Bart Timmermans & Glenn Geldenhuis

Automotive markets in Africa, and other emerging markets face an increasing demand for compliance with international environmental regulations on motor vehicle emissions. VARTA AGM batteries are capable of powering the most demanding vehicles, and offer three times the endurance of conventional batteries. Manufactured with up to 20% less emissions, they are the driving force behind the fuel-saving, technologicallyadvanced Start-Stop engines. VARTA AGM are factory-fitted by major car manufacturers such as Audi, BMW and Mercedes-Benz among others, and are trusted by drivers across the world.   Established more than a century ago, the VARTA brand has come a long way, and distinguished itself as the leader in automotive battery innovation. Globally, Johnson Controls powers about one in every three cars. What makes VARTA unique is its PowerFrame grid technology and manufacturing process that uses 20% less energy and produces 20% fewer greenhouse gases than other manufacturing methods. This grid design provides superior cranking power with up to 70% better electrical flow than other grid technologies, and it is up to 66% more durable and more corrosion-resistant.   As of today, this premium brand is available to Auto X’s entire network of customers, including more than 3000 resellers in South Africa and selected African countries. 

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VARTA Launch Event

“We are proud to be appointed by, and associated with Johnson Controls as the official distributor for VARTA advanced technology batteries. From an environmental perspective it is critical that Africa catches up and contributes towards a greener automotive future, and we are excited to be instrumental in this,” says Glenn Geldenhuis, Chief Executive Officer of Auto X. “Our relationship with Johnson Controls started back in 2015 and is based on a shared vision, a focus on high quality, and strong operational synergies. The VARTA brand fits seamlessly into our line-up of battery products, making Auto X and Johnson Controls a winning combination.”   “Africa as an emerging market holds excellent opportunities for us. We looked for a distributor that has an extensive and solid distribution network. Auto X, with its national footprint in South Africa as well as an established network within the sub-Saharan African region is the perfect choice to expand our

presence into the emerging market of Africa,” says Bart Timmermans, Director Business & Distribution Development, Middle East, Turkey and Africa, Johnson Controls. “In Auto X, we’ve gained a partner that offers excellent after-sales and technical support, and one that is focused on increasing brand visibility and awareness. We are confident that Auto X is the distribution partner to help VARTA achieve brand awareness and brand loyalty in the African aftermarket.” “More than 70% of OEMs worldwide rely on Johnson Controls AGM technology. Powered by VARTA, this has a direct impact on the battery replacement market where motorists prefer to replace like for like,” commented Bart Timmermans.   “Our purpose is to continue offering our current customer base a complete battery solution and full after-sales service. The idea is that VARTA will be positioned as the battery of choice for new markets and requirements,” concluded Geldenhuis.

JUNE 2018

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MOTORSPORT

Times tumble at 2018 King of the Hill The 2018 Jaguar Simola Hillclimb delivered an enthralling mix of thrills and excitement, with some stunning new records being set on the Simola Hill – both among the competitors’ times, as well as the number of spectators attending the three-day event.

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ore than 17 000 people attended the ninth edition of the Hillclimb, held in Knysna from 4 - 6 May and they were treated to the very best motorsport and the fiercest competition South Africa has to offer. Apart from the battle being waged between the competitors, the throngs of fans had plenty of other attractions – most notably the daring antics of Jaguar’s world-renowned stunt driver and multiple record-holder Terry Grant. The British ace entertained the crowds by not just driving up the 1.9 km Simola Hill in the Jaguar F-PACE, but doing so the whole way on two wheels! Single-Seaters and Sportscars Andre Bezuidenhout was the undisputed King of the Hill at the 2017 edition of the Jaguar Simola Hillclimb in his 1989 Dallara F189 Formula 1 car, and his aim for the 2018 event was to go even quicker in the recently acquired Gould GR55 – a specialist Hillclimb single-seater built in the UK with much-improved aerodynamics and a paddle-shift transmission. Bezuidenhout established a new official Hillclimb record during the one-lap Class Finals with an impressive time of 36.428 seconds. If that wasn’t remarkable enough, he absolutely destroyed the current lap record – and the opposition – with an all-new time of 35.528 seconds in the King of the Hill Top 10 Shootout. That translates to an average speed of 192.52 km/h, from a standing start!

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Modified Saloon Cars As predicted, the large field that made up the Modified Saloon Car category dished up a non-stop menu of drama and excitement. Heading into the Class Final, Dawie Joubert held the qualifying advantage, having dipped under the 40-second barrier with a time of 39.984 seconds, with Baard breathing down his neck a mere hundredth of a second adrift, and the next three rivals, comprising Charl Joubert, Di Matteo and Van Zummeren, all under 41 seconds. However, Baard managed to pull a blinder of a run out the hat in the Class Final, blasting through the timing beam in 39.533 seconds to set a new record for the class. Baard gave it everything on his final attempt, sliding the GT-R through the Esses at the top of the course, and ripping off his front splitter for the second time in two days when he drifted slightly wide and clipped a tyre. It was a nail-biting affair as the track was cleared of debris, and Dawie Joubert completed the final run of the three-day Jaguar Simola Hillclimb event, eventually ending on 40.025 seconds to claim third behind his brother, with the King of the Hill title ultimately remaining in the hands of an elated Baard who set a new record time of 39.463 seconds.

Road-going Saloon Cars and Supercars Reghard Roets earned his second King of the Hill title in a row with another exceptional performance in the mighty street-legal Nissan GT-R, having set the pace throughout the weekend. As the lone GT-R in the category, he raised the bar even further after he beat his current Hillclimb record for standard road cars by 0.135 sec, bettering last year’s result during the Class Finals with a time of 44.631 seconds. The former Production Car racer had actually gone even quicker in the qualifying sessions, with a time of 44.588 seconds, in an effort to stave off the challenge from a trio of McLaren 570S entries, and the ever-present threat of Dawie Olivier in the roaring Jaguar F-Type SVR. The Top 10 Shootout for the King of the Hill title became a thrilling three-way tussle at the top, with Olivier blasting his way to his best time of the weekend of 44.967 seconds, a time that Izak Spies wasn’t able to beat in his McLaren after recording a run of 45.784 seconds. Roets was the last of the contenders and cemented his 2018 King of the Hill title with a winning time of 44.892 seconds. This gave the Jaguar driver second place on the final podium with Spies taking the third-placed slot ahead of Ernst du Preez (McLaren), Barry Ingle (Roush Ford Mustang) and Jacques Wheeler in the third McLaren.

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MARCH 2018 -

59


RMI UPDATE

FAQs

Answers by experts to questions received recently by the RMI Q: Is it compulsory to pay levies over to the Motor Industry Ombudsman? A: Yes it is compulsory to pay over levies to MIOSA if you are operating a business within the motor industry. The Motor Industry Ombudsman of South Africa (MIOSA) and the South African Automotive Industry Code of Conduct (Code) was accredited by the Department of Trade and Industry on the 3rd October 2014. The Code was published in the Government Gazette on Friday, 17 October 2014, Notice 817, Government Gazette No. 38107(3) and as such has become a Regulation of the Consumer Protection Act and levy’s payable to the MIOSA are now a legal requirement from the automotive industry.

Q: Who is the regulating authority over the retail motor industry, regulating conduct of dealerships besides the CPA and Ombudsman? A: The Motor Industry Ombudsman of South Africa does not regulate the automotive Industry but acts as an Independent Dispute Resolution Forum with the purpose of resolving disputes between consumers and service providers/ dealers in the motor industry through adjudication. The Consumer Protection Act (CPA), was not signed into law to regulate the Retail motor industry but for the purpose of protecting the interests and rights of all consumers in the marketplace.

The National Regulator for Compulsory Specifications (NRCS), is the original regulatory division of South African Bureau of Standards that enforces compulsory specifications setting minimum standards for various industries including the Automotive Industry. The Motor Industry Bargaining Council (MIBCO) enforces collective agreements in the motor industry and inspects and monitors compliance of the labour law regulations between the employees and employers. Furthermore, there are various legislations that generally governs businesses and these include the motor industry.

FRANCHISING IN THE AUTOMOTIVE SECTOR With a need to try and keep up with customer demands, there is always a need to expand your business. Franchising is one of these opportunities. Franchising gives the Franchisee the opportunity to meet and keep abreast of customers’ demands by offering personal services often necessary for better customer service satisfaction. For the economy, franchising offers employment opportunities which add to a sustainable economy.

Automobil magazine will be producing a Franchise feature in the July edition. As a Franchise you need to ask yourself these three important questions: • Do you want to promote your Brand as a potential Franchisee? Let us help tell the story about your brand, where it originated, what it stands for, who developed it and why.

JULY 2016

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• Do you want to help your Franchisee make money? Whether it is selling to the end customer or through intermediaries and other outlets, we would like to share thoughts and ideas. • Can we help you sign up new potential Franchisees? Through promotion and featuring your business, the interest in and subsequent likelihood of signing up future franchisees will increase.

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repair motor body L the world of AUTOMOBI ng value to ; SHARING D VOICE HEAR SAMBRA: Addi JOINS FORCES ON ROI TOOL CE; MIWA’S

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The more outlets, the greater your marketing fund and in turn, the more you can spread the word. Here is how we can do this: • Interviews in a range of magazines for direct distribution to your internal or external Franchisee community. • Post an overview video of your business on YouTube and your website, as well as distributing it to your existing franchisees. • Bespoke brochure and marketing material, sharing the story we speak about above. If any of this sounds of interest to you and your business we would be happy to discuss the options directly with you.

60 - FEBRUARY 2018

Contact Greg Surgeon on 0834496137 or E-mail greg@thefuture.co.za

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JUNE 2018

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WORKSHOP

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 www.autodata-group.com CITROËN C3: CREAKING NOISE FROM FRONT SUSPENSION Problem: A customer’s 2010 Citroen C3 emits a creaking noise from the front suspension when manoeuvering or parking. We have heard the noise during road tests but have been unsuccessful in recreating the noise in the workshop. We have checked the front suspension joints and mountings but cannot find the source of the fault. Have you come across this creaking noise before? Solution: Yes, we have seen some C3 models that emit a creaking noise from the front suspension – it’s due to excessive friction between the front suspension’s strut upper mounting and the shock absorber bump stop. Remove the front suspension strut then disassemble the suspension strut and remove the spring. Apply a light coating of Total N4128 grease (available from Citroën’s parts department) to the area indicated (see Figure 1). Apply a light coating of Total Marson SY2 grease (available from Citroën’s parts department) to the area indicated in Figure 2. Reassemble the suspension strut and refit. Repeat the procedure for the opposite side then carry out a road test to ensure that the fault has been rectified.

MINI COUNTRYMAN: NOISE WHEN AIR-CON OPERATES Problem: A customer has a petrol-driven 2011 Mini Countryman 1,6 which emits a humming noise when the air-conditioning is operating. We have checked that the AC refrigerant level is correct and we have checked that all the air-conditioning pipes are fitted securely in their retaining clips. However, we cannot find the source of the noise. Can you help? Solution: Yes, the fault you describe affects several petroldriven Mini models within the year ranges 01/10/2009 to 10/01/2012. The noise is due to resonance from the AC low-pressure hose when the air-conditioner is operating. Locate the AC low-pressure hose in the area of the left hand front wheel arch. Fit a mass damper (available from Mini’s parts department) onto the AC low-pressure hose (see Figure 1). Ensure the mass damper is fitted 85mm from the crimped section of AC hose. Operate the air conditioning to ensure the noise has been eliminated.

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JUNE 2018

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MEMBERUPDATE The RMI welcomes these new businesses into membership A A & A Auto Mechanics Marburg ACD Roodepoort Roodepoort Action Panelbeaters Kempton Park Agri Fleet maintenance services Blackheath ARD Auto Port Shepstone Aubrielec Krugersdorp Auto Italia Middelburg Auto Ross Bodyworks Claremont B BB Used Hatfield Pretoria Blazing Tech Pretoria Bruces BM Spares Maitland Bruma Car Service City Johannesburg C Car Service City Illovo Johannesburg Cars on Cape Port Elizabeth Chatzmax Randburg Climanet Fleet Mechanical Services Kempton Park CMH Mazda Durban Durba D Darians Auto garage Durban E EAF Auto Piet Retief Fury BAIC Sandton Bedfordview G Gama and Sons Auto Clinic Nelspruit Goodhope Tyres Wynberg Cape Town GR Tyres George GWM Northcliff Johannesburg H Heritage Coachworks Nelspruit Hi-Q Vryburg Vryburg Hyde Park Toyota Randburg K Kiwis Panelbeaters Polokwane M M – Series Auto Repairs Durban M and M Auto Clinic Johannesburg MAC Auto Malmesbury

McCarthy Auto Trimmers Maitland Midas Worcester Worcester Motor Truck and Bakkie Mossel Bay N Nando Auto Electrical Mechanical & Panelbeater Komatipoort Nkosi Enamandla Tzaneen NM Motors and Workshop Polokwane Nucarkey Maitland NWJ Motor Services Port Elizabeth P PBE Auto Tzaneen Power Tech Service Centre Richards Bay Powerflow Exhaust Bellville Bellville Procar Auto Durban Q Qhawe Auto Body Nigel R Renotech George Rex Diff and Gearbox Polokwane S Smiths Auto Electrical Cape Town Speedtech Automotive Elsies River Speedy Tyre and Exhaust Brits T Triumph Johannesburg Sandton Triumph South Africa Sandton Tyres and More Welkom Welkom U Unique Automotive Clinic Centurion

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

ADVERTISERS AUTOMOBIL - JUNE 2018 EDITION CLIENTS

64 JUNE 2018

CONTACT WEBSITE

ADCO 011 879 6000 A Plus Automotive Parts 011 879 6000 Aer O Cure 011 444 6454 Auto Care & Diagnostics 011 879 6000 AutocosmosBiz (Electrolog) 012 327 6210 Behr Hella Service 011 879 6000 CBS Clutch & Brake 011 879 6000 CDK Global 011 998 6000 ContiTech Africa 0800 111 171 Fiat Professional 010 252 5000 Ford Trade Club N/A Highveld Garage Equipment 012 330 0540 Intrade Motor Parts - Victor Reinz 011 432 2667 Moto Health Care 0861 000 300 MOTOLEC - Auto Electrical Specialists 011 879 6000 Robert Bosch 011 651 9600 Silver Falcon Trading 083 628 2288 Silverton Radiators 011 879 6000 Snap On Africa 031 569 7673 Vortex Parts Incorporated 011 879 6000

www.adco.co.za www.aaas.co.za www.aerocure.co.za www.acdworkshop.co.za www.autocosmos.co.za www.silverton.co.za www.cbsclutch.co.za www.cdkglobal.co.za www.contitech.co.za www.fiatprofessional.co.za www.fordtradeclub.co.za www.hge.co.za www.victorreinz.com/jsi www.motohealthcare.co.za www.motolec.co.za www.bosch.co.za www.hurricaneauto.co.za www.silverton.co.za www.automobil.co.za www.snapon.co.za www.aaas.co.za

PAGE

49 53 OBC 39 64 21 33 55 19 15 IBC 59 61 10 & 11 43 17, 23 & 37 63 27 IFC 65


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TAIL PIECE

New Ford ‘Weather Factory’ Simulates Any Weather, Anytime

T

he air is shimmering like in the desert, while just a few metres away, it’s so cold you can build a snowman. And there’s a category 5 hurricane in the next room. Welcome to the “Weather Factory”. Ford’s new state-of-the-art Environmental Test Centre puts all the world’s weather under one roof, enabling engineers to test forthcoming vehicles – from a small Ford KA+ to a two-tonne Ford Transit in the most demanding conditions and make whatever weather they want at any time of the day. Altitudes higher than Mont Blanc, the tallest Alpine peak, vehicle and wind speeds of up to 250 km/h (155 mph), snow, glaring sunlight and rain are among conditions that are a push of a button away in Europe’s most advanced automotive environmental test centre. On an area the size of a football pitch, engineers can now take vehicles on demanding journeys around the world, from the desert heat of the Sahara, to the arctic cold of Siberia and the heavy humidity of Costa Rica. “The vast range of punishing simulation tests will enable Ford drivers to be

66 JUNE 2018

confident their vehicles can handle whatever climate zone they live in,” said Joe Bakaj, vice president, Product Development, Ford of Europe. “Travelling to the four corners of this building is like taking a trip to the four corners of the world, and our engineers will do that around the clock, every day, to continue to develop future best-in-class vehicles.” The subject of a €70 million investment, the test centre offers the first automotive wind tunnel that can simulate 5,200 metres, the same elevation as the Mount Everest North Base Camp, and the first with such a range of conditions that can be simulated under one roof. The facility can also cool two rooms to – 40 C and heat them up to 55 C, as well as generate 95 per cent humidity. The temperature extremes make the facility at Ford’s John Andrews Product Development Centre in Cologne, Germany, the hottest, coldest and most humid place in Europe, and home to the highest point in Western Europe. In the UK, Ford Dunton’s Environmental Test Laboratory has been capable of simulating altitudes up to 3,660m since 1999 – as well as temperatures from -40 to +55 deg Centigrade.

Now fully operational, engineers can work on up to ten different vehicles simultaneously. Testing covers comfort, safety and durability, as well as electrical performance, braking, air conditioning, trailer towing, cabin heating and traffic jam situations. Engineers analyse the effects of high-speed winds on exterior parts, check the robustness against rain and snow, and see how fast a windscreen defrosts at different temperatures. “The Environmental Test Centre represents a significant investment for Ford of Europe that will help enable the company here to develop vehicles for global markets,” said Bakaj. All Ford vehicles will be tested in the facility, which features three climate wind tunnels, including a high-altitude lab, and four temperature-controlled test chambers, one of which will also facilitate humidity testing. “We can see how windshield wipers function in Arctic temperatures, how engine performance changes in extreme heat and cold, and even how much snow falls on the driver’s head when they open the door. It’s an engineer’s dream,” said Michael Steup, project manager, Environmental Test Centre, Ford of Europe.

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FORD TRADE CLUB

Giving you access to a wide range of parts at low prices.

Ford Trade Club is a recent initiative that has been set up to offer independent repairers, workshops and bodyshops access to thousands of genuine Ford and Motorcraft parts at reduced prices. All the available parts are backed by Ford warranty and all parts are designed and tested by Ford, meaning they’re guaranteed to fit quickly and perfectly every time. With a wide range of parts and new parts being added regularly, you’ll want to get involved. As a member of the Ford Trade Club you will also be provided with specialist help and knowledge at your participating Dealership, and will receive exclusive news and offers emailed or sent directly to you. We want to build a strong partnership between Ford Dealers and independent repairers, workshops and bodyshops. To become a member today, go visit our website at www.fordtradeclub.co.za

Ford Trade Club is operated by Ford Motor Company, South Africa. Applications to join are subject to eligibility. Ford reserves the right to amend the content or operation of Trade Club at any time.

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JUNE 2018

67


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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_Daisy_AutoMobil_3447

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

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Automobil June 2018  

Automobil June 2018  

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