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JULY 2018

TRIUMPH MOTORCYCLES Make a return to SA

THE MDA

Ensuring motorcycling remains viable

THE BENEFITS OF FRANCHISING MOTORCYCLE DEALERS’ ASSOCIATION (MDA) RMI UPDATE: RMI HOSTS MAIN & ADMINISTRATIVE AGREEMENT www.automobil.co.za SEMINAR; IMPERIAL OPENS TRAINING ACADEMY; MERCEDES-BENZ AWARDS TOP DEALERS

JULY 2018

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—  www.automobil.co.za


CONTENTS – JULY 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: Motorsport dates to diarise UPDATES

P24

12 News

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

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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

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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

The motorcycle dealers' voice

The RMI looks to the Motorcycle Dealers’Association as its mouthpiece to protect and further the interests of the motorcycle and accessory sales and service within South Africa

FEATURES

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

RMI review

RMI hosts Main & Administrative Agreement seminar; Imperial opens training academy; Mercedes-Benz awards top dealers

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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.

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Testing 4x4 skills on Rally to Read

Putting off-road driving skills to the test in aid of a good cause

Getting the airflow right

Jake Venter investigates why modern car shapes are getting weirder every year

Increase profits by employing apprentices

Taking on apprentices generates greater profit, says the merSETA CEO Dr Raymond Patel

Unfair dismissals and automatic unfair dismissals

Every employee has the right not to be unfairly dismissed as provided for in terms of section 185 of the Labour Relations Act

Commercialising intellectual property

The intellectual property of a company is, in most cases, the most valued asset of the company

Not all doom and gloom for motorcycle industry

The recent Motorcycle Industry Stakeholder Summit held at the Autotrader South African Bike festival highlighted some shocking statistics

Triumph motorcycles are back

One of the last surviving British motorcycle brands gets a new lease on life in South Africa

What makes franchising so successful?

Understanding the franchising business model

Why choose a franchise over another business?

The Franchise Association of South Africa surveys the franchise sector to find out how they are faring and what their challenges are

© Future Publishing (Pty) Ltd

www.automobil.co.za

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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

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www.automobil.co.za


Investing in people

DRIVER’S SEAT

Although many business owners think that training of apprentices is a burden on their business, research proves that they are a very worthwhile investment says Jakkie Olivier, CEO of the RMI Jakkie Olivier, CEO of the RMI

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he first six months of 2018 is history, which means that we have only six months left to achieve our objectives as business people – six months to make a real difference not only in our respective businesses and industries that we operate in, but also in the broader economy. In the South African context we have become accustomed to high unemployment figures, low economic growth, high interest rates and taxes, ongoing and disruptive strike action, restricted business opportunities due to an over-regulated economy, low profitability and operating margins for most businesses, low educational levels, and a serious shortage in various critical skills across the motor industry and other sectors of the economy. For purposes of this month’s column, it is worth repeating the previous and continued appeal to the motor industry entrepreneurs to reconsider youth training through apprenticeships as a guaranteed means of securing a return on your investment in the workforce employed by businesses. The RMI cares deeply about the automotive industry’s future skills base, hence our ongoing partnership with the UK-based - and which operates globally - the Institute of the Motor Industry (IMI). The RMI’s vision for skills development aligns perfectly with government initiatives and industry needs, and we believe firmly that skills development is the catalyst for reducing unemployment, stimulating economic growth and ensuring a return on investment for employers. This means more profits to employ more people, more re-investment in business growth and sustainability – and ultimately satisfying the consumer with professional maintenance and services on their vehicles by skilled and professional people.

Research commissioned by the UK Government and carried by the IMI across the United Kingdom to determine the return on investment (ROI) from automotive mechanic apprenticeship training, showed unequivocally that there is a significant financial return to businesses within the period of the apprenticeship, from apprentice productivity in terms of hours sold when netted against full apprentice costs. These results have been confirmed explicitly within the South African market in further ground-breaking ROI research, commissioned by merSETA and powered by the RMI and IMI, and working very closely with large and SME automotive employers to identify what value South African employers gain from hiring and training an apprentice. The ROI project focused on 3-trades for South African employers hiring apprentice automotive mechanics, body repairers or spray painters. The powerful and independent research utilising real employer data over two years, has resulted in an on-line South African 3-trade Apprentice ROI calculator requiring just three simple steps to estimate ROI before hiring the apprentice. Typically, in less than two years into the 3-4 year apprenticeship programme, the businesses reached a break-even point from apprentice sold hours alone, recouping the costs of the initial employer investment. The ROI project also confirmed that an apprentice, when well-supported in the workplace, will be productive very early on and a future asset to the business. After the initial period, the productivity of the apprentice relative to the costs continue to increase, resulting in increased income for the business –

approaching a growing return expected during the apprenticeship training period of a qualified technician. A well supported apprentice could be expected to produce an ROI often in excess of 200% by the end of his apprenticeship. RMI members are encouraged to become proactive by employing apprentices and investing in the youth for increased productivity and apprenticeship ROI benefits. The business would not only benefit financially from training, but we could become involved in addressing the skills shortages in our industry, reducing unemployment and being part of real transformation. In order to assist automotive businesses in overcoming their reluctance and possible negative perceptions of apprentice training, we invite all RMI members and employers to access the free online ROI calculator (3 steps to apprentice ROI) which will be announced and launched by merSETA in the coming weeks. As a value-add over and above the financial return for employers when indenturing apprentices, skills development also adds to B-BBEE scoring as one of the priority scorecard elements. Through training, employers also qualify for learnership and apprenticeship tax rebates, employment tax incentives, and SETA mandatory and discretionary grants. Training is clearly the way to go and remains a strategy priority for the RMI in the future. RMI members who would like to find out more or who are serious about making a difference should contact the RMI training department for assistance, guidance and advice.

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

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

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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.

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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


Making a case for two wheels

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We take an in-depth look at the recent Motorcycle Industry Summit, and unpack some of the ideas that materialised from a discussion that saw stakeholders from all facets of the motorcycle industry come together and discuss the issues affecting this industry. It was really great to see that competitors are willing to work together and share ideas for the greater good of the industry. Let’s hope that motorcycle importers take action following these discussions, as the industry is not doing as well as it could be (page 40).

The association of the month spotlight falls on the Motorcycle Dealers' Association and the work that they do to ensure that this industry remains viable in trying economic conditions. The MDA have great relationships with key industry stakeholders, and have on a number of occasions influenced change to various pieces of legislation that directly impact on motorcycle dealer operations (page 24).

Triumph motorcycles are back in South Africa and headed up by long-time friend of the RMI and previous NADA chairman, Bruce Allen. He has big plans for this iconic British motorcycle brand, with the promise of a model for every motorcycling need, with the line-up including Adventure, Modern Classics and Roadster ranges (page 42).

big part of this issue of Automobil focuses on machinery of the twowheeled variety.

TC AD 210x130 HALF PG 23/2/18 10:47 Page 2

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EDITOR’S LETTER

With the fuel price at an all-time high, and no end to these increases in sight, motorcycles make more sense than ever. Another huge benefit is the time saving as our metropolitans become more and more congested, and we all know time is money. For business, motorcycles offer a low total cost of ownership and are ideal for short distance errands or deliveries, and it boggles my mind why more motorcycles are not being used. As has become tradition, the July edition of Automobil focuses on franchising. This business model continues to gain in popularity as consumers become more and more brand focused. We investigate what makes franchising so successful and take a detailed look at the benefits of choosing to go into a franchised business as opposed to a stand-alone business. Reuben van Niekerk, Editor K

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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 de 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

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NEW PRODUCTS

HOT STUFF HPC Now Distributes 3M Speedglas expertise in personal protection equipment to assist welders in finding the perfect Speedglas helmet for a specific application. Speedglas has a reputation for coming up with solutions to welding’s many challenges. Speedglas pioneered the auto-darkening helmet in 1981 and nearly 40 years later continues to innovate. This focus on simultaneously addressing the needs of welders who work to a continuously high standard, while remaining cognisant of their health and safety needs, has resulted in a range of exceptional welding equipment for professionals. The team at HPC-Speedglas can take a client through a structured process to ensure that risk levels are assessed, and then assist with the helmet selection process. The range extends from ‘regular’ auto-darkening examples to versions with the acclaimed Adflo built-in filtration system that provides full respiratory protection for welders who work in an environment where fumes are prevalent. HPC-Speedglas stocks a full range of spares and accessories for 3M Speedglas Welding Helmets as well as related safety products. Hearing, Protection & Communication (HPC) has been appointed as a distributor of 3M’s Speedglas welding helmet range. With a reputation dating back to the 1980s and a long and successful association with 3M Peltor products, HPC is well-equipped to use its

Says HPC General Manager Heinz Böse: “We are extremely excited about the addition of Speedglas to our portfolio. It dovetails perfectly with many of the other products within Hearing, Protection & Communication, and will enable us to better serve our customers. We are perfectly placed to improve the overall efficiency of a welding business or process.”

InMotion Ventures puts adventure on the map InMotion Ventures, Jaguar Land Rover’s venture capital arm, announced its investment in FATMAP, the leading platform for outdoor adventure lovers and mountain professionals with cutting-edge global 3D mapping technology. The investment from InMotion Ventures, along with Episode 1 and Capnamic Ventures, will support FATMAP with their global ambition to become a key destination for adventure and outdoor activities. Skiers, hikers, trail-runners, mountain-bikers and climbers can all use FATMAP technology to navigate the off-road world more easily. Both FATMAP and Land Rover have adventure lifestyles at their heart. Land Rover offers best-in-class off-road capability; FATMAP develops best-in-class 3D mapping with the ambition of becoming a global platform for adventure. FATMAP is the 13th company to join InMotion Ventures’ portfolio.

www.automobil.co.za

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10 - SEPTEMBER 2017

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NEWS

Ramaphosa visits Volvo truck plant

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resident Cyril Ramaphosa – together with the Minister of Economic Development, Ebrahim Patel; Deputy Minister of Trade and Industry, Bulelani Magwanishe; and Minister of Higher Education, Naledi Pandor – recently visited the Volvo Group Southern Africa’s truck assembly plant at Prospecton near Durban. In his address at the factory, Ramaphosa thanked Volvo for its continuing investment in the South African economy and its commitment to efforts aimed at empowering and developing the country’s youth. “Volvo is a company which believes in investing in society and we applaud its efforts in making youth development an integral part of its social investment programme,” he said. In his replying address, Torbjörn Christensson, President of Volvo Group Southern Africa, said the company employed about 1 000 people locally, representing Volvo Trucks, Volvo Bus, Volvo Financial Services, Volvo Penta and UD Trucks. “We are committed to influencing growth towards a sustainable society. We aim to create societal value by engaging with communities in areas where we live and operate,” he said. According to Christensson, since 2015 the company had invested more than R86-million in apprenticeship training, automotive industry learnerships, disabled person learnerships, as well as internships. He said this year the Volvo group would establish a specialised Driver Training Academy to address South Africa’s shortage of skilled truck

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South Africa’s President, Cyril Ramaphosa (centre), gets a briefing from a Volvo Truck employee during a tour of the Swedish company’s assembly plant at Prospecton near Durban

drivers. The initiative would form part of a R25-million social investment programme that would also see R7,8-million spent over three years in support of Star for Life, a non-profit organisation that aimed to provide young people with essential life skills, sport training and health education. “Star for Life is an exemplary project that creates new opportunities for young people to complete their education. In the process, opportunities arise for some of those who qualify to be employed by Volvo,” he said. In his tour of the assembly facility, Ramaphosa took time to engage with workers on the factory floor. Donning a reflective vest similar to those worn by employees, he said in his address that he had felt “much at home” in conversation with the workforce and had been “hugely impressed” at

the professionalism and skills sets its members displayed. “It is fantastic to know that, in this facility, a truck is produced every 45 minutes,” he said. “I’ll make sure to tell members of my Cabinet – I wish I could get some of them to speed up their decision-making.” In closing, Ramaphosa called on the Volvo Group to look to increase the amount of local content used in the trucks it manufactured, saying that black-led businesses needed to be “plugged in so that everyone can benefit.” “I believe in partnerships and collaboration,” he said. “South Africa is the gateway to growth on the African continent – I urge you to go and sell that idea to your board,” he told Christensson.

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NAAMSA Conference set for Kyalami

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biennial automotive conference organised by NAAMSA in association with the Innovation Group is set to take place at the Kyalami International Convention Centre on August 31. The conference – entitled Paths to the Future – will form part of the NAAMSA backed Festival of Motoring, presented by WesBank, which takes place at the Kyalami Grand Prix Circuit from August 31 until September 2 (story on page 20). At the conference, South Africa’s Minister of Trade and Industry, Dr Rob Davies, will deliver the keynote address. His speech is expected to focus on aspects regarding the replacement agenda for the Automotive Production and Development Programme (APDP) – introduced in 2013 – which has been one of the drivers behind the growth of the South African motor industry. Another speaker who is likely to attract attention is South African-born Johan de Nysschen, who recently resigned

Johan de Nysschen

his post as head of the Cadillac luxury car division of General Motors in the United States. His address is titled: “A visionary leader’s perspective in reshaping traditional auto industry structures and relationships.” Other speakers include Dr Alec Erwin, Chairperson of Ubu Investment Holdings and a former Minister of Trade and Industry; Andrew Kirby, President and CEO of Toyota SA and

Rob Davies

current president of NAAMSA; Thomas Schaefer, Chairman and Managing Director of Volkswagen South Africa and Chairman of the African Association of Automotive Manufacturers, and Martyn Davies, Managing Director of Emerging Markets and Africa at Deloitte. Tickets for the conference can be purchased online at iTickets at an early bird rate of R1 695.

Volkswagen recalls Polo

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olkswagen has confirmed a technical issue relating to the left rear seat belt lock fitted to the 2018 model year Polo – and has issued a recall. According to a statement released by the company, when the rear centre seat and the rear left seat are occupied, the seat belt on the latter could be unintentionally

www.automobil.co.za

released during a sudden lane change manoeuvre. “Safety remains our main priority and Volkswagen has identified a technical solution – a redesigned belt lock fixture which will prevent this from happening,” the statement says. Volkswagen has advised owners of the model not to make use of the

middle seat until the redesigned locking mechanism has been installed. Letters advising customers of the problem have been sent to owners, who will be required to take their cars to Volkswagen service partners to have the new mechanism fitted. Models built at the brand’s factory at Uitenhage, near Port Elizabeth, will receive the upgrade on the production line.

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NEWS

True Price website swamped with enquiries!

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nticipated demand for services provided by True Price – a local website which offers motorists free vehicle valuations – had been significantly underestimated, according to Darryl Jacobson, the company’s managing director. In a statement issued shortly after the service went live last month, Jacobson said the couple of hundred requests for information which had been anticipated had turned into a deluge, with almost 2 700 enquiries received within hours of the opening. “We knew that True Price had an important role to play within the South African motor industry. However, we completely underestimated demand for our services,” he said.

The company offers motorists vehicle evaluations based on data garnered from vehicle auctions, which Jacobson believes are accurate because they reflect actual prices paid. He said the success of True Price’s launch represented both good and bad news. “On the one hand, we are delighted at the response. The reaction proves that people DO want to know what their wheels are worth! However, demand for our services meant we were not able to respond to every single query within 24 hours, for which I apologise.” Jacobson said the company was looking to ramp up its systems and employ more people to cope with demand. “Clearly, we need to allocate more resources to the company, and that’s exactly what we will do with Darryl Jacobson immediate effect,” he said.

Toyota and Suzuki team up

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Toyota and Suzuki have agreed to discussions regarding joint projects in the technological, vehicle production and market development fields. Having concluded in February last year a memorandum of understanding aimed at establishing a technological partnership, the companies have been pursuing avenues of cooperation and have now announced a mutual supply of vehicles for the Indian market. Additionally, the scope of the partnership is in the process of being broadened to include joint efforts related to vehicle production and market development. Topics under discussion include: • Technological support from Toyota regarding Suzuki’s development of

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a compact, ultra-high-efficiency powertrain; Toyota producing models developed by Suzuki for sale in India through the Toyota and Suzuki dealer networks; and The supply of models developed by Suzuki from India to Africa and other markets, using the Toyota and Suzuki dealer networks to sell the products.

Commenting on the partnership, Toyota’s president, Akio Toyoda, said the aim was to make Indian manufactured vehicles cherished in Africa and other markets around the world. “Breaking from a future that adheres to convention, Toyota has chosen a path that will be created by a spirit of ‘let’s do it,’” he said.

Suzuki’s chairman, Osamu Suzuki, said when the original partnership agreement had been announced, Toyota had been enthusiastic about the joint development of advanced technologies. “Immediately afterwards, Toyota arranged a series of intensive and meaningful discussions. Now, we will receive support for the development of a compact, ultra-high-efficiency powertrain that is vital to Suzuki. We will focus our utmost efforts on development. “It is my hope that new joint projects will contribute to the future success of both companies, not only in India, but also in the global market.”

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Storage and disposal of used oil contaminated with water requires laborious and costly processes to separate the water from the oil before it can be recycled. Do not mix used oil with other fluids such as antifreeze, transmission fluid, petrol, diesel etc. Mixing them may make them non-recyclable, hazardous and flammable. Build a bund wall around your bulk used oil storage tanks so that in the event of a spill or leak, the used oil will be contained. In the event of an oil spill, contact your used oil collector or a HAZCHEM specialist.

Help ROSE Collect Oil Vehicle service centres generate large volumes of used lubricating oil, which is classified as a hazardous waste, because it contains harmful carcinogens and compounds. Too often, used oil is thrown down drains, into landfills or spilled onto the ground, where it can contaminate the environment and damage our health.

The disposal of used oil is strictly governed by environmental laws and its storage and disposal has to meet the requirements of the National Environmental Management: Waste Act No. 59 of 2008.

The ROSE Foundation (Recycling Oil Saves the Environment) offers the following advice to motor workshops:

Registering on SAWIS Anyone generating in excess of 20kg of used oil per day, is required to register online on the South African Waste Information System (SAWIS). Once registered, the generators need to submit their figures every 90 days (quarterly) into the SAWIS.

Hazardous Waste Manifest As used oil is classified as hazardous waste, generators are required to maintain the comprehensive information on a Hazardous Waste Manifest, a document that will track the used oil from cradle to grave and offer a clear snapshot on how it has been managed.

16 JULY 2018

For more information on SAWIS and the Waste Manifest visit: w w w. s a w i c . e n v i r o n m e n t . g o v. z a

Storage and Collection Drain oil into a clean reusable container with a tight-fitting lid, such as a drain pan/storage container or drum. DIY mechanics can obtain a plastic Sumpy from the ROSE Foundation to collect and store small quantities of used oil. Ensure that you store the oil in a container with a secure lid so that it cannot spill out. Empty oil containers and drums make effective makeshift storage vessels for used oil, however, DO NOT use a container that previously held chemicals, such as cleaners, solvents, fuels, paint or bleach. Keep the containers in an area that can be accessed by a collector and keep the surrounding area clear and clean. Preferably, store them under cover and away from heat or sources of ignition. Keep oil change pans free of water and ensure your storage containers are tightly sealed and covered to protect them from water. Oil that is

The ROSE Foundation is asking all motor vehicle service centres to accept small volumes of used oil from DIY or backyard mechanics, as the centres should have larger used oil storage facilities. This is an important contribution to safeguarding the environment, and the centres are remunerated when the used oil is collected.

Licensed Collectors Make sure your used oil is collected by a ROSE licensed collector, who will remove the oil and take it to be processed in an environmentally compliant manner. The collector will issue you with a safe disposal certificate as required by the Waste Act. This certificate also acts as a Hazardous Waste Manifest, fulfilling the requirements of reporting by law, and the same information can be used on SAWIS. ROSE registered collectors are compliant with all waste transportation legislation and are strictly managed and audited – further ensuring your compliance as a waste generator. For more information contact The ROSE Foundation Tel: 021 448 7492 Email: usedoil@iafrica.com w w w. r o s e f o u n d a t i o n . o r g . z a

www.automobil.co.za


THESE BRANDS SUPPORT RESPONSIBLE RECYCLING OF USED OIL

Support brands that care for the environment Use ROSE approved collectors and recyclers to dispose of your used oil. 021 448 7492 • usedoil@iafrica.com • www.rosefoundation.org.za www.automobil.co.za

APRIL 2018

17


NEWS

Vehicle sales: ‘Don’t interpret recovery as growth’

A

ccording to data released by the National Association of Automobile Manufacturers of South Africa (NAAMSA), new vehicle sales in May increased by 2,4% across all categories.

Though sales in the rental channel were up by a significant 52,6% year-on-year, they follow the same year-to-date pattern as the rest of the industry with sales down 16,8%. This is not surprising considering the particularly strong performance by rentals at the start of 2017. An exception to the year-to-date decline in sales came from the dealer channel, which grew by 2,2%. Passenger vehicles in particular grew by 3,8% year-to-date.

“Coming off the poor performance of the industry in 2017, the year-on-year recovery is encouraging,” said Ghana Msibi, WesBank’s Executive Head for Sales and Marketing. “However, it’s important to not misinterpret recovery as growth.”

“Growth in the dealer channel is in line with the forecast announced at the Car of the Year banquet in March, and is further supported by WesBank’s application data which indicates retail consumers maintain a healthy appetite for new vehicles,” Msibi said.

Msibi says a holistic view of how the industry is performing comes from year-to-date data, which shows that total sales over the first five months of 2018 were down 1,6% compared to those over the similar period last year. A total of 220 783 new vehicles were sold in the first five months of this year, compared with 222 433 in the corresponding months last year.

According to WesBank’s statistics, the average value of cars financed during May increased from R295 500 in the corresponding month last year to R306 536 this year.

Nissan's Leaf sales hit 100 000 units in Europe

N

issan has celebrated the 100 000th delivery of its electrically powered Leaf in Europe – reinforcing the derivative’s position as the highest-selling EV in the world with over 320 000 units sold. Susana de Mena, of Madrid, milestone buyer of the 100 000th Leaf said: “I spent two years trying to find an electric car. When I saw there was a brand-new model of the Leaf, there were no doubts in my mind it would be the perfect fit.” According to a statement issued by Nissan, the Leaf accounts for one sale every 10 minutes in Europe. The latest

18 JULY 2018

model is the first from Nissan to feature the company’s ProPILOT and ProPILOT Park technologies. Gareth Dunsmore, Director of the Electric Vehicle Division for Nissan Europe, said it was no surprise that the Leaf was the world’s best-selling electric vehicle. “In less than 10 years, we have managed to make an electric vehicle a mass market reality,” he said. “This milestone proves once again that our Nissan Intelligent Mobility vision is embraced by customers who believe in a more confident, more exciting, and more connected future.”

According to the statement, Leaf customers in Europe have now driven over two billion kilometres, saving more than 300 000 tons of CO2 emissions.

Susana de Mena takes delivery of the 100 000th Nissan Leaf sold in Europe

www.automobil.co.za


NEWS

BMW returns to Le Mans Mahindra opens SA assembly plant

M

ahindra South Africa has opened a R10-million vehicle assembly plant in Durban, KwaZulu-Natal. The facility, located at the Dube Trade Port Special Economic Zone (SEZ) at King Shaka Airport, assembles single-

and double-cab Mahindra Pik Ups. The plant was constructed in partnership with AIH Logistics. At the opening ceremony, Rajesh Gupta, CEO of Mahindra South Africa, said the brand had grown significantly since the launch of its first models here

in 2004. “In the last five years, market share has increased by a compound annual growth rate of over 4,6%, much of which has been achieved in a declining market.” He said the plant had been designed to produce 2 500 units annually, with provision made to expand production to 4 000 units. “The assembly of the Pik Up is a very important step, but it remains only the first step in our long-term plan that will see us increase employment, local sourcing and content as well as the complexity of our assembly facility in KwaZuluNatal,” he said. Avinash Bapat, the company’s CFO, said future expansion could see the addition of another pick-up or commercial vehicle to the line – or even one of Mahindra’s tractor models or heavy-duty power generator systems.

At the opening of the Mahindra plant at the Dube TradePort in Durban, from left: Avinash Bapat, CFO of Mahindra South Africa; Arvind Matthew, Chief of International Operations for Mahindra & Mahindra; Dempsey Naidoo, chairman of AIH Logistics; Sihle Zikalala, MEC for Economic Development, Tourism and Environmental Affairs; Ruchira Kamboj, High Commissioner for India to South Africa; Dr Shashank Vikram, India’s Consul General in Durban; Dr Bridgette Gasa, Chairperson of the Dube TradePort Corporation and Ambassador Sadick Govender

The facility began trial production in May and enters full production this month. According to Dempsey Naidoo, Chairman of AIH Logistics, the initiative represents a significant investment in skills and training in the automotive sector. “Mahindra, in partnership with AIH, is committed to empowering local businesses to grow together. This facility is a start in achieving that objective,” he said. Mahindra & Mahindra’s Chief of International Operations, Arvind Mathew, said the company had always regarded South Africa as a base from which it could grow its market share on the continent. “We believe that our investment in an ultra-modern assembly facility and our intention to localise part-sourcing over time reaffirms this view,” he said.

www.automobil.co.za

JULY 2018 -

19


NEWS RMI UPDATE

Gearing up for the Festival of Motoring

T

he Festival of Motoring, presented by WesBank, returns to the Kyalami Grand Prix Circuit this year for its third annual motoring extravaganza. The event, organised by Messe Frankfurt SA, will run from August 31 to September 2. Last year’s show, which focused on interactive motoring experiences, drew more than 57 000 visitors. “The 2018 Festival of Motoring will again provide a plethora of interactive motoring entertainment with additional lifestyle, education and family-friendly activities – all geared for a more comprehensive family motoring experience,” says a statement issued by the organisers.

Visitors can expect new car launches, latest model displays, supercars on track and an engaging 4x4 area. Self-drive activities will be available on each of the show days at the circuit’s 1,1km handling track.

Classic cars will once again be a major drawcard with a focus on a selection of 15 quality cars making up a Best of the Best display. Classic car clubs will feature in a dedicated area. A display of cars celebrating the evolution of the automobile will showcase vehicles with a unique South African story.

Additional features include double the amount of pit displays, improved and varied catering areas, a wine garden, a dedicated kid’s area and air displays. National championship motorsport will feature at the event for the first time in the form of races in the Sasol GTC Championship and Investchem Formula 1600 Series.

A new focus on future technology will showcase the latest trends and innovations in the motor industry. Two retail areas will exhibit the motoring aftermarket, conversion and other specialist industries.

Historic content will include tributes to motorsport legends as well as to endurance racing cars, while a display of iconic supercars, located on the pit building viewing deck, will celebrate the evolution of the supercar.

“The Festival of Motoring promises to live up to its reputation as the leading interactive motoring event in the southern hemisphere,” says the statement. “With an even greater emphasis on family orientated content this is a motoring extravaganza not to be missed.” For more information log on to www.safestivalofmotoring.com.

Ferrari wins Engine of the Year title

F

errari’s turbocharged, 3,9-litre V8 has been voted International Engine of the Year for the third consecutive time. The unit, which powers each of the brand’s V8-engined cars, also took the honours in the 3,0-litre to 4,0-litre class and Performance Engine category, and was nominated Best of the Best as the event’s top engine over the past 20 years. “In the 488 GTB, the 3,9-litre, eightcylinder represented a near-perfect example of a high-performance turbocharged engine, setting the bar so high that it swept aside rival powertrains,” said Dean Slavnich, cochairman of the IEOTY Awards. Additionally, the brand’s naturallyaspirated 6,5-litre V12 which powers the 812 Superfast also won two awards: the

20 JULY 2018

Above 4,0-litre class and, due to it being comprehensively re-engineered, the Best New Engine category. Other winners included: • Green Engine: Tesla’s full-electric powertrain used in Model S, Model X and Model 3 derivatives; • Sub 1,0-litre: Volkswagen’s turbocharged, 999cc, three-cylinder engine used in Golf and Up derivatives; • 1,0-litre to 1,4-litre: PSA Peugeot’s turbocharged 1,2-litre, three-cylinder engine used in 208, 308, 2008, 3008 and 5008 derivatives, as well as in Opel’s Crossland X and Grandland X; • 1,4-litre to 1,8-litre: BMW’s 1,5-litre, threecylinder, petrol-electric hybrid unit used in i8 models; • 1,8-litre to 2,0-litre: Porsche’s turbocharged

2,0-litre engine used in the 718 Boxster and 718 Cayman; • 2,0-litre to 2,5-litre: Audi’s turbocharged 2,5-litre, five-cylinder engine used in the Audi TT RS Coupé, Audi RS 3 Sedan and Sportback; • 2,5-litre to 3,0-litre: Porsche’s turbocharged 3,0-litre, six-cylinder engine used in 911 Carrera derivatives; • Electric Powertrain: Tesla’s full-electric powertrain used in Model S, Model X and Model 3 derivatives;

www.automobil.co.za


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JUNE 2018 -

21


NEWS

Bakkie in a million!

A

n 18-year old Isuzu 250 Diesel Double Cab has travelled more than a million kilometres –and is still going strong! Much like David Manley, the retired ship surveyor who owns it, the vehicle is just as busy now as it was before it hit the one-million kilometre mark. In fact, Manley and his wife, Gillian, took the bakkie on an expedition just a month after it hit the milestone. “Our last trip to Etosha in Namibia was done in July last year. We travelled on largely bad gravel roads via Walvis Bay and the Skeleton Coast. The vehicle had been to Etosha before, so it knew the way!” Manley says.

The Isuzu is now used for general transportation and farm work, such as David Manley and his dog, Bonny, with his old faithful Isuzu 25 Diesel LE pulling out alien vegetation on the Manleys’ farm at Ruiterbos outside Mossel Bay. “I bought The bakkie’s timing gears were renewed the bakkie new in 2000 from CP Nel at 500 000km and an exchange gearbox Motors in Mossel Bay. It was serviced by installed at 540 000km. “The vehicle the dealership until it had clocked up is getting a bit rusty... I didn’t think it 200 000km – thereafter, I did routine would last this long, so I stopped body services myself. maintenance around the 800 000km mark,” he adds. “The engine and turbo are original and have never been opened. I had Meanwhile, Manley and his wife are the brakes and suspension serviced preparing to undertake yet another trip to independently as required. The engine Namibia in their faithful Isuzu bakkie again still uses no oil,” Manley says. this month.

Changes at the top at Ford, Volkswagen

F

ord Motor Company has announced changes to its global management structure. Jacques Brent, 48, President of the company’s Middle East and Africa region, has been appointed to a new global role as Director of Product Marketing. Mark Ovenden, 53, formerly VicePresident of Marketing, Sales and Service for the Asia Pacific region, has replaced Brent as President of Ford Middle East and Africa. In a statement, Jim Hackett, Ford’s President and CEO, said the changes were aimed at reshaping the company’s global marketing organisation with a view to accelerating growth. At Volkswagen Group South Africa, Mark Handley has been appointed

22 - JULY 2018

Head of Commercial Vehicles, while Ryan Searle takes over as National Sales Manager for the Volkswagen brand. “Based on their track records with the company, I am certain that these new appointments will further strengthen Volkswagen’s passenger and commercial brands in South Africa,” said Stefan Mecha, the company’s Sales and Marketing Director. Handley has worked for the Volkswagen Group as Head of Sales for Audi South Africa as well as for Volkswagen Passenger Cars, while Searle was previously based in Taiwan as Head of Audi before returning to South Africa last year to help set up the Group’s recently announced Rwandan operation.

Jacques Brent

Mark Ovenden

Mark Handley

Ryan Searle

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The Mahindra Pik Up. Now assembled in South Africa.

We’re very much at home in South Africa. Mahindra’s legendary 2.2l mHawk turbodiesel engine provides an impressive What works hard in India seems to work 103 kW of power and 320 Nm even harder in South Africa, judging by of torque to ensure it will get your job the ever-increasing popularity of our easily done. And with the new six-speed bakkies in particular. manual gearbox it’s more fuel efficient The Mahindra Pik Up is tough. And and kinder on the environment too. South African roads need tough. We understand South African conditions Available in a full spec double-cab all the and with your interests at heart have way through to a utilitarian single cab, now started assembling our bakkies in the Pik Up also comes in 4X4 or 4X2 a brand new state-of-the-art assembly to provide great performance whatever facility in South Africa to ensure the best the terrain. possible build quality. The Next Generation Mahindra Pik Up delivers power, strength and tenacity, along with reliability that you can depend on with a maximum payload of up to 1200 kg* and a braked towing capacity of 2500 kg.

At home in South Africa

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For more information call 0861 MAHINDRA (62446372) or visit www.mahindra.co.za * Single cab payload, 2WD 1195 kg / 4WD 1095 kg. Double cab payload, 2WD 1095 kg / 4WD 995 kg. ** Optional on S4 4X2 Single-cab Please note: The images shown may differ slightly from actual product available. For full specifications please refer to our website or visit your dealer. *** Mahindra SA reserves the right to change the specifications of the vehicle without prior notice.

www.automobil.co.za

MAY 2018 -

23


ASSOCIATION OF THE MONTH

The motorcycle dealers' voice The RMI looks to the Motorcycle Dealers’ Association (MDA) as its mouthpiece to protect and further the interests of motorcycle and accessory sales and service within South Africa. Gary McCraw, the National Director, explains some of the key objectives and activities of the Association The MDA is of the view that motorcycle dealers are resilient, and by managing their costs and maximising every business opportunity over the next two to three years they will emerge from this difficult period both stronger and leaner.

Marius Roberts, MC; Lachlan Harris, National Director AMID; George Minnie, CEO Autotrader

T

he motorcycle retail business in South Africa is dynamic and highly complex with constantly evolving business conditions. This has been made even more challenging given the increase in regulatory compliance which dealers have had to factor into their daily operations. Unfortunately, the over regulation has added unnecessary administrative complexities and additional costs to the motorcycle dealers’ financial operating models. Over the past year the industry has endured a severe decline in the sale of new motorcycles. In 2013 a total of 40 000 new motorcycles were sold compared with only 18 500 in 2017 (figures provided by AMID). The only

24 - JULY 2018

segment which has shown growth has been the under 500cc segment, which grew approximately 8% in 2017.

The MDA’s vision and role is to contribute to the growth, sustainability and profitability of motorcycle dealer members by addressing the non-competitive collective critical issues on their behalf, thus ensuring that economic environment will be conducive to doing business in.

Local and international political environments have also had a negative impact on the broader South African economy, and a further weakening in the rand compared with other trading currencies is of serious concern for the industry, with no local manufacturing, all motorcycles, parts and most accessories are imported.

Stakeholder Relationship The MDA has extremely good working relationships with key industry stakeholders in business, labour and various governmental departments. In this regard, MDA in close cooperation with NADA has been successful in influencing change to various pieces of legislation, thus reducing the potential impact on the motorcycle dealer operations.

Due to the aforementioned, motorcycle dealers are finding trading conditions extremely tough and are having to maximise every opportunity to ensure that they remain financially viable and in a position to service their customer base, whose expectations are ever increasing.

The MDA has on a number of occasions successfully negotiated with government on issues relating to import taxation and traffic legislation which was seen to be prejudicial to the interests of the industry and consumers.

www.automobil.co.za


South African Bureau of Standards The MDA continues to be actively involved on the various Technical Committees of the South African Bureau of Standards (SABS) and is therefore in a position to advise members regarding legislative and regulatory requirements that impact on the motorcycle sector. The MDA in collaboration with NADA has appointed Raoul Spinola as a fulltime representative, whose function is to liaise with current members, recruit new members and assess their requirements from an associational point of view. Spinola will attend all SABS Technical Committee meetings which impact the motorcycle industry to ensure that the MDA has a constant and effective voice within these forums. B-BBEE Codes of Good Practice The MDA, together with other role players from the automotive industry, has met with senior officials from the Department of Trade and Industry on numerous occasions to highlight the key interdependencies within the automotive sector concerning compliance with the new B-BBEE Codes and its impact on the motorcycle dealer network. Secondhand Goods Act Exemptions Following formal applications by MDA in conjunction with NADA to the SAPS on

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Gary McCraw, National Director MDA; Bruce Allen, CEO of Triumph Motorcycles SA, Raoul Spinola, MDA representative; Jakkie Olivier, CEO of the RMI

behalf of its members for exemption from certain sections of the Secondhand Goods Act, 2009 (Act No. 6 of 2009) in terms of Section 42(2) of the Act, NADA has been advised that the exemptions will be published shortly in the Government Gazette. These exemptions deal with clauses such as the seven-day holding period, storage of stock on a second premises, record keeping, etc. More detail will be given once the exemptions have been published.

In the interim, MDA wishes to remind motorcycle dealers who trade-in secondhand motorcycles of the need to register with their local SAPS in terms of the Second-hand Goods Act, 2009. Should you not obtain the necessary SAPS permit, the SAPS will have the right to shut down your operation until a permit has been issued, and in addition the SAPS may issue a substantial fine due to noncompliance. If motorcycle dealers need more information in this regard or any on other matters, please contact Raoul Spinola who will assist.

JULY 2018

25


ASSOCIATION OF THE MONTH

Competition Commission: Perceived Exclusionary Practices The MDA participated in the Competition Commission Aftermarket Workshop in terms of which the Commission presented its views on perceived exclusionary practice within the South African motor industry and their views as to the drafting and implementation of a proposed Code of Conduct for the Automotive Industry which would address the concerns.

understanding on how this will impact the industry. These discussions are ongoing.

The MDA is acutely aware that the final outcome of this process will have a direct impact on how business will be done in the motorcycle dealer environment following the implementation of the proposed Code, and therefore has been actively liaising and researching the matter in an endeavour to find the best possible outcome for its members.

1. Motorcycles remain a viable transport alternative. Given the increase in traffic congestion and the ever-increasing cost of motoring within SA, and the lack of a comprehensive integrated public transport system, motorcycles remain an extremely cost-effective form of transport. 2. Therefore it is paramount that all stakeholders continue to lobby Government to include the use of motorcycles as a key mode of transport as part of the National Transport Policy and Roads Policy for South Africa, and ensure that future road infrastructure makes provision. 3. There is a need to relook at the way in which motorcyclists were trained and the method of testing for motorcycle licences (The German model was suggested as a good model to emulate). 4. Road safety and the education of both motorcyclists and motor vehicle drivers was again a key discussion and whose responsibility it was to ensure that

We are currently awaiting the second draft of the proposed Code which is being drafted by the Competition Commission. The Financial Intelligence Act The FIC advised MDA that that it was their intention to remove the category of Reporting Institutions from Schedule 3 and convert it to that of Accountable Institutions. That implied that motorcycle dealers’ status would change from ‘Reporting Institutions’ to ‘Accountable Institutions’. The impact on the industry would be significant, and therefore MDA in conjunction with NADA has been engaging the FIC to find common

26 - JULY 2018

Autotrader Motorcycle Industry Stakeholder Summit The MDA recently attended the Autotrader Motorcycle Industry Stakeholder Summit which was held at Kyalami on 25 May 2018 as part of the South African Bike Festival, and some key issues were addressed which MDA could clearly identify with:

motorcyclists were safe when using the roads. 5. It was highlighted that motorcycle dealers needed to review their marketing and sales strategies by incorporating digital and online sales and marketing into their business strategies. 6. A key objective with great potential for motorcycle sales is for motorcycle dealers to focus on the untapped market within the black communities where the use of motorcycles has been limited, but is slowly maturing through education about the benefits of using a motorcycle as a means of transport and for pleasure. 7. It was noted that the number of female motorcyclists was minimal given the potential. Therefore there needed to be a greater focus on encouraging women to ride motorcycles rather than being passengers. Conclusion There are many other matters that are being dealt with by MDA on an ongoing and ad hoc basis. The MDA will through its ongoing endeavours and achievements, continue to pursue its vision of contributing to the longterm sustainability and growth of the motorcycle dealers businesses. Motorcycle dealers who are interested in membership can contact Raoul Spinola on 011 886 6300 or Raoul.spinola@rmi.org.za

www.automobil.co.za


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MARCH 2018 -

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27


INSIDE LINE

Testing 4x4 skills on Rally to Read Put your off-road driving skills to the test in aid of a good cause. Join one of the automotive industry’s most successful off-road projects and help to deliver educational material and teacher training aids to schools in far-flung locations. David Furlonger explains

W

ho makes a better 4x4 driver – a man or a woman? Even allowing for the never-ending war between the sexes, surely the answer’s obvious? It must be a male. Men are strong and tough, just like 4x4s. They thrive under challenging conditions. Most of all, they are simply better drivers. End of argument! But hang on! Why does a professional off-road driving instructor say he prefers to teach women the rudiments of offroad driving? The answer, he says, lies in the fact that while men turn up believing they already know everything, their womenfolk – brought along, presumably, out of a sense of duty – actually listen to what’s being said and respond to instruction. He adds that when there are skills competitions at the end of training courses, women almost invariably win. So, whether you are a male or female who is capable of driving a 4x4, I have

28 - JULY 2018

www.automobil.co.za


a proposition for you. Put your driving skills to the test for a good cause. For the past 20 years, a programme called Rally To Read has delivered educational materials and teacher training to far-flung rural primary schools that, because of their remote location, are effectively written off by education authorities. They are state schools and the only source of education for children in thousands of rural communities around the country – but they have no pens, books or paper. Often, there is no electricity or running water. Desks are a rarity. In the most extreme cases, classrooms lack walls and roofs. Think about it: five- and six-yearolds already condemned to illiteracy, joblessness and possibly crime. Rally To Read has proved to be one of the most successful programmes ever in overcoming this blight. Participating schools – each one is supported for at least three years – are equipped with portable classroom libraries, stationery, and the necessary teacher and learner training to make the best of what they have. But what makes the programme truly unique is that sponsors hand over their goods in person. Convoys of off-road vehicles travel to the back of beyond, through areas rarely seen by most South Africans, to meet the children, their families and community members. Welcoming parties, some of whom have walked hours to be there, may be hundreds strong. For many sponsors, Rally weekends are their introduction to off-road driving. Lots of people own 4x4s and SUVs with off-road capability, but few test their ability. Sponsors are encouraged

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to bring colleagues or family members on expeditions. Children of all ages are welcome. In the early days, women almost never drove on Rally weekends. My wife Carol was a rarity in that we always shared driving – earning me lots of tut-tutting and head-shaking from other men who obviously thought I should know better. Actually, I did know better: I prefer being in a vehicle with someone who drives round obstacles rather than over them; someone for whom a damaged vehicle is not a badge of honour. If it takes an extra two minutes to keep my vehicle in one piece, I’m all for it. Carol has since sailed through a 4x4 course. Fortunately for me, there was no skills competition afterwards. As Rally To Read has progressed, more women have been “allowed” to drive. Also, there have been more female team leaders, responsible for leading convoys to their remote destinations. Contrary to some expectations, they are not still out there with their teams, hopelessly lost, driving in ever-decreasing circles. Rally To Read has been supported by many of South Africa’s leading corporations, but always had a motor industry “family” component. It was founded in 1998 by the McCarthy auto group and its thenCEO, Brand Pretorius, who has returned this year to chair a new, "relaunch" organising committee. Motor companies like Toyota, Nissan and Ford are long-term supporters.

Mercedes-Benz SA has hosted the Eastern Cape rally for nearly 20 years. Likewise the OneLogix transport group in Free State. Fuel company Shell is underwriting this year’s KwaZulu-Natal rally. Such is the sense of community that sponsors sometimes band together to provide schools with electricity, computer centres, basic sports facilities, or even to rebuild damaged classrooms. What’s required to join in? First, R35 000 to become a sponsor. Second, a sense of adventure. Third, a free weekend, for which there is no extra cost: accommodation and meals are paid for by organisers and hosts. There are four rallies in 2018. The KZN event is already full. The Free State rally will take place on September 7-8; Eastern Cape rally on September 15-16; and Western Cape rally on October 27-28. For more details, visit www.rallytoread.co.za.

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

JULY 2018 -

29


TECH TALK

Getting the airflow right Jake Venter investigates why modern car shapes are getting weirder every year

A

erodynamics, the study of the way air flows over different shapes, arrived fairly late on the motoring scene. Average speeds were so low that most engineers could not imagine that anything could be gained by studying the flow of air over the car’s body. This attitude changed in the early 30s when Germany started to build the autobahn. Cars could now for the first time be driven fast over long distances, and some German automotive manufacturers responded by employing aerodynamicists. By 1939 there were a number of very streamlined experimental cars running around that would have gone into production if WW2 had not intervened.

30 - JULY 2018

A smooth body shape affects both vehicle stability and fuel consumption. Vehicle stability is affected by the lift forces that arise as a result of the interaction of the body shape with the road surface. Fuel economy is affected, because any drag reduction makes more engine power available for use, or to put it another way, the gearing can be changed so that a cruising speed can be maintained with a smaller throttle opening. Modern aerodynamic designs also take into consideration the way the airflow controls water and dirt deposition patterns on glass and lamp surfaces, minimising wind noise, and the placement of air flow vents for ventilation as well a cooling the engine, brakes and gearbox.

Sir Stirling Moss was one of the first to experience the practical effect of designing a shape to generate down force. During the 1955 Le Mans race, the Mercedes-Benz 300SLR he was driving was fitted with a huge movable flap on the roof to act as an air brake. With the flap up for braking, the car could corner faster than with it down. This happened because the forces on the flap would have had a downwards component as well as a rearwards component. It took several years before this effect was utilised elsewhere. In 1962, Jim Hall, who built and raced Chaparrals in the USA, noticed an unwanted front end lift on his first car. To counteract it, he mounted an inverted

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airfoil (wing shape) on the first Mk 2 model, with less than successful results: at 200 km/h the front wheels lifted off the ground. For a race at Riverside in 1963, Jim riveted an airdam on the front of the car to divert the air over the nose, instead of letting it flow underneath. The excessive down-force that it created overheated the tyres so much that the dam had to be modified, but the principle had been established. The idea spread rapidly and, at present, Formula One cars are just about undrivable without properly designed wings. Of course, there is a trade-off. You cannot get a high downforce and low drag at the same time, which explains why the wings on a race car are

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changed and adjusted for every circuit. In a straight line you want less drag, which implies less downforce. During cornering you want more downforce, which brings with it more drag. Today, wing theory is well established, and many production cars have small wings. On some cars the wings contribute to the stability or increase the downforce, but on others the wings are purely a styling effect. To be fully effective, a wing should be adjustable while driving. When a vehicle moves through the air it experiences a resistance that grows as the square of the vehicle speed. This means that if a car doubles its speed, then the air resistance will be four times higher. If the driver puts his foot down the car will continue to accelerate until the air resistance is equal to the power developed by the engine. At this point the car has achieved maximum speed. The relationship between the drag force (in newtons) and speed is given by the formula: N = 0,5Ď CdAV2/1 000 where Ď (Greek letter rho) = air density in kg/m3 (approximately = 1) Cd = drag coefficient (dimensionless) A= Frontal area in m3 V = speed in m/s This formula is approximately true for a short object, but would be wrong for a longer vehicle, such as a train. Frontal area refers to the area seen in a headon view. The important number is the product CdA, because it determines the speed a car can reach for any particular power output. The earliest cars had drag coefficients in the range 0,7 to 0,9.

Modern station wagons have coefficients ranging from 0,4 to 0,6 and modern saloons range from 0,26 to 0,33. This coefficient is usually determined in a wind tunnel, which in its simplest and earliest form is just an open-ended tunnel with large fans at one end, and a narrow venturi-shaped test section in the middle to speed up the airflow. The fans at the intake will produce turbulent flow, so guide vanes are needed just behind the fans, as well as egg-cratetype mesh, to smooth out the flow before it reaches the test section. The test section has to be instrumented in such a way that the true forces acting on the car can be measured. When the test involves a scale model, an arm is often used to locate the model, and the forces acting on the arm are then measured. If a full-size car is being tested, each wheel rests on a measuring pad, which in a modern tunnel is able to measure not only the rearwards drag, but also the magnitude and direction of any vertical, or even sideways, forces on the wheels. In some tunnels, the car can also be angled to the wind so that the effect of gusts from the side can be studied. To protect the tunnel’s open ends against interference from the weather, it is sometimes enclosed in a building. Many of the more modern automotive tunnels are of the closed continuous type, where the same air is circulated around inside a huge smooth-cornered rectangle. This is a more expensive solution, but has the advantage of allowing the

JULY 2018 -

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TECH TALK air temperature and humidity to be controlled. Few automotive tunnels can test at speeds of more than 160 km/h because the size of fans and tunnel needed becomes prohibitively expensive. Pioneers in the aerodynamic field were forced to use scale models, because the first full-scale tunnels were only built in the middle 30s. By now there are enough big tunnels around for most manufacturers to be able to test full-scale cars, and most of them do. Visualising the flow has always been a problem. In the early days, tufts of wool were taped to a car, and this technique is still being used. However, it is being supplemented by a stream of smoke lines, or unexpanded polystyrene balls, or the inspection of a deliberately-dirtied car under ultraviolet light. Another technique is to test a scale model in a water tunnel where an electric current generates regularly spaced hydrogen bubbles that make the flow underneath the car and in the wheel housings more visible. Most modern companies either own wind-tunnels or are able to use tunnels at some research organisation. The result is that some of the latest German models have drag coefficients between 0,26 and 0,3, and many others have coefficients

not much over 0,3. Techniques for designing the main body shapes are well established, and the attention has now shifted to optimising the smaller details. The latest cars have side mirrors that not only generate hardly any noise, but also help to keep the side windows clean. Sunroofs have a notched wind deflector to reduce noise. Wheel arches have received much attention because they can generate a lot of turbulence. Subtle spoilers on the boot-lid keep rear-end lift within narrow limits. The grille and front apron are designed to direct air smoothly over and around the body. A modern Formula One single-seater has a drag coefficient of close to 0,95, mainly because of the open wheels. This limits the top speed, compared with an enclosed sports-racing car, but it also means that closing the throttle abruptly at high speed can create problems for the driver. For example, at 300

km/h, lifting a foot off the accelerator pedal would result in a deceleration of 1,2g, the same as you would feel when doing an emergency stop from 100 km/h on a road car equipped with ABS brakes! Furthermore, down-thrust from the wings is responsible for the major portion of the grip between the tyres and the road, so that wing design, including its adjustment and integration into the rest of the car, is now the biggest area of concern for the designer. Most Formula One cars are tested in specially developed wind tunnels, using 50 per cent models, because bigger tunnels would simply be too expensive. Having a rolling road underneath going at the same speed augments air speeds of up to 195 km/h, giving an equivalent speed of 390 km/h. The main concern of the aerodynamicist is to increase down-force without increasing drag, as well as overall stability at various angles to the airstream. The top teams have facilities that enable them to ‘map’ the behaviour of the model at the various wing angles, flap positions, and ride height settings, as well as simulations in a straight line, under braking, and entering and exiting a corner. These models can cost anything up to one million rand. They have to be detailed and very rigid, as any flexing at speed would upset the results.

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

32 JULY 2018

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Don’t fall prey to the wild road

STABILITY STABILITY THROUGH THROUGH

STRENGTH

For the unforgiving South African road conditions we are faced with, don’t you think it’s time to add a Titan

• 24 Month or 50,000 km warranty

to your life? To ensure that your vehicle’s suspension and braking

• Vehicle specific applications

system are working in unison, it’s important to fit workshop quality and reliable shocks absorbers. Insist on Titan shock absorbers. Don’t let the road take a toll on your vehicle’s road handling performance. Be prepared!

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• Workshop quality at affordable prices • Technical and country wide support

STABILITY THROUGH

STRENGTH

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WE BUILD THE PEOPLE THAT BUILD THE merSETA facilitates the training of artisans. This includes:

Taking on Apprentices generates greater profit, says the merSETA • CEO Dr Raymond Patel •

C

ompanies that take on apprentices generate more profit, our research has clearly shown. The merSETA funded extensive research and analysis by the Retail Motor Industry Organisation (RMI) and the UK-Institute of the Motor Industry, which found that automotive companies can generate up to 200% profit as a result of apprenticeships. In the coming months, an online calculator will be launched via the merSETA website. A very simple

tool, this calculator will allow companies to precisely calculate the return on investment after taking on apprentices. The merSETA regional staff will be on hand to assist the automotive sector, especially independent, small companies, to use the tool and calculate their financial benefits and the time scale to reach apprenticeship profitability. This is a yet another initiative launched by the merSETA to drive

Paying mandatory and discretionary grants to large, medium an companies to train learners; Registering assessors and moderators against set criteria, to e provision of training meets the required national standard; • Identifying priority skills needs within the Manufacturing and En higher employment Related Services Sector; • Accrediting levels in our country. training providers to ensure that the quality of institu simulated training provision is delivered; • Undertaking workplace approval at companies to ensure that th practical training required is provided to the learner in order to a In the coming months, qualification; • Monitoring the merSETA and the of workplace based training is carried out; and • Implementing projects that assists to close the skills gap.

RMI will begin an awareness campaign to publicise the online calculator. This will take place through various media campaigns, face-to-face meetings, annual general meetings and promotions.

We trust that you will make use of this tool to generate more profit in your business.

The importance of Cylinder-Head bolt replacement

C

ylinder-head bolts play an important role in the construction of an engine. Connecting the head to the block is just the beginning. They also help form a vital seal created by the cylinder-head gasket. This is pivotal in maintaining the correct combustion ratio. The seal is formed by the creation of the correct surface pressure between the head and the block. Apart from containing and focusing the combustion pressure, the head-gasket also seals the lubrication and cooling channels. The correct bolts are needed if these functions are to be reliably achieved. Modern engines have cylinder-head gaskets which do not require re-torquing. This can only be accomplished with the correct cylinder-head bolts. How does this work? The modern bolts - which have a reduced diameter in comparison to the older rolled shank bolts - are able to be

34 - JULY 2018

WE CARE:

It’s about caring for people we render services to

WE BELONG:

It’s about working together with colleagues

LEADERS IN CLOSING THE SKIL tightened (torqued) beyond what is known as their elastic limit or yield point and into the ‘plastic region.’ This ensures high and uniform clamping forces. By doing this, the head-gaskets will perform properly without ever having to be retorqued. The new bolts - known as stretch bolts - also require a slightly different method of torquing. They are inserted and pre-torqued. The second step sees the bolts torqued beyond the elastic limit and

into the plastic region. This is called the torque-angle method. The resultant variation in bolt clamping force is approximately 10%, a far more even spread of tension than the 30% variation often seen with the older method (and the older bolts). It is important to note that these stretch bolts should never be reused. New bolts should always be installed when the old ones have been removed. Victor Reinz cylinder-head bolts are matched perfectly to their head gasket sets and the torquing guidelines are always supplied.

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PROVIDING A COMPLETE SOLUTION FOR ASIAN, AMERICAN AND BRITISH VEHICLE PARTS Asian range

American range

British range

With one of the world’s largest ranges of parts for Asian vehicles, Blue Print is the right choice and solution for all Asian vehicle requirements. This specialism means we have some of the best all-round knowledge of the market and are able to offer an accurate and quality solution.

The American range covers over 200 models with more than 2,000 part numbers available. Like the cars themselves, the Blue Print American range continues to get bigger and better with new parts being continuously added.

In 2014, Blue Print launched a range of parts for traditionally known ‘British’ vehicles. In a short period of time Blue Print introduced 1,400+ parts from over 90 product types, covering more than 8,000 British applications.

Filtration

Braking

Clutch

Steering & Suspension

Engine Management

Transmission

Timing Belts & Chains

Cooling

Electrical

Body

Tools

Solutions

Blue Print parts are now available in South Africa! The Blue Print brand is represented locally by: Ferdinand Bilstein South Africa (Pty) Ltd Tel. +27 (0)10 900 4545 Available exclusively through selected appointed distributors

Right First Time. www.automobil.co.za www.blue-print.com

JUNE 2018 -

35


LABOUR

Unfair dismissals and automatic unfair dismissals

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very employee has the right not to be unfairly dismissed as provided for in terms of section 185 of the Labour Relations Act (‘the Act’), which reads as follows:

2. An employee that has been employed on a fixed term contract, had a reasonable expectation of the contract to be renewed, but it is not renewed, or it is renewed but on less favourable terms.

185 Every employee has the right not to be 3. Or, if the employee had a (a) unfairly dismissed; reasonable expectation that he/ she would be retained, in the Every employer, in turn, is required to employment indefinitely ‘but ensure that when the termination of an otherwise on the same or similar employee’s services is contemplated, that terms’ as the fixed term contract, such a dismissal is for a fair reason and but the Employer did not retain effected in accordance with a fair procedure. the employee, or the employer If the termination does not conform to offered to retain the employee both the substantive and procedural but on less favourable terms; fairness – in line with section 188 of the Act – it will be regarded as an unfair 4. The refusal of an employer to allow dismissal, consequently creating material an employee to resume duties risks and liabilities for the employer. after she took maternity leave; Section 186 of the Act defines 5. The selective action by an employer dismissal as follows: when he dismissed several 1. When the services of the employee employees for the same or similar have been terminated by the misconduct but only elected to employer with or without notice;

36 - JULY 2018

re-employ one or a few, but did not want to re-employ another; 6. An employee who resigns due to the conduct of the employer rendering the continued working relationship intolerable, also known as constructive dismissal; 7. An employee resigning after a section 197 or section 197A transfer of business, because the employee was faced with conditions or circumstances at work that was a lot less favourable than those conditions at the old employer. If an employer is guilty of any of the above listed conduct, the dismissal of the employee will most likely be regarded as an unfair dismissal. The Employee will, providing that the employee referred the matter to the relevant forum, and was successful in proving his or her case, be entitled

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to the appropriate relief. The relief could include the following as set out in section 193 of the Act:

3. Refusing to accept a demand of matters of mutual interest between employees and the employer.

1. Reinstatement with or without backpay; 2. Re-employment or; 3. Compensation that equates to 12 months remuneration.

4. Exercising his/her right as conferred to them by the Act or if the employees participated in any proceedings as contemplated by the Act.

Section 187 of the Act sets out reasons for which an employee may not be dismissed under any circumstances.

5. Pregnancy, or any pregnancyrelated reason.

Any employer that terminates an employee’s services based on any of the reasons set out by section 187 of the Act, will face the consequences concomitant to a dismissal that will be unfair and, particularly, regarded as being automatically unfair. A dismissal will be categorised as automatically unfair if the employer dismissed the employee(s) for: 1. Participating or supporting a strike or protest action provided that the strike action is protected, and both the strike and protest action conform to section 67 of the Act. It is essential to appreciate that protection is envisaged for all employees – not only those employees affiliated with the union calling for the strike. The employer will, however, have the right to act against the employee if the employee has made himor herself guilty of misconduct during the course of the strike. 2. Refusing to do the work normally executed by the striking employees and to regard it as insubordination. The employees in this context should be taking part in a protected strike, however. Only in the event that the work is necessary to prevent ‘an actual danger to life, personal safety or health’ the employer may expect the particular employee(s) to assist.

6. Any arbitrary ground on which the employer directly or indirectly discriminated against the employee. Examples of such grounds will, amongst others, be race, age, sex, religion, political views, culture and language. However, section 187 (2)(a) determines that the dismissal of an employee based on the above grounds may be regarded as a fair dismissal if the reason for the dismissal is based on an inherent requirement of the specific job. Similarly, section 187 (2)(b) deals with dismissal based on an employee’s age. It provides that if an employee is dismissed based on age, such a dismissal will be fair in circumstances where an agreed retirement age is determined and the employee subsequently reached the specific age.

after the transfer and any of the employees are dismissed thereafter, such dismissals will be regarded as automatic unfair dismissals and the employees will be entitled to the maximum compensation. 8. An employee for making a protected disclosure i.t.o the Protected Disclosures Act 2000, more commonly referred to as ‘whistle blowers’. Section 194 of the Act sets a limit on the amount of compensation that an employee will be entitled to when a dismissal is found to be automatically unfair. The benchmark consideration is to determine compensation that is just and equitable, whilst having regard to the fact that it will not exceed the maximum of 24 months remuneration. It is imperative for the Employer to ensure that when an employee is dismissed, that the reason for the dismissal does not qualify as an automatically unfair dismissal. Reasons and processes for dismissals should always conform to the requirements as set out in the Act and the individual’s rights can simply not be compromised.

7. A section 197 or 197A (of the Act) transfer of business or any reason that would relate to such a transfer. In the matter Douglas & Others vs. Gauteng MEC for Health the court held that in circumstances of a section 197 transfer, the employees will transfer from the old to the new employer on the same terms and conditions unless there was an agreement reached between the parties. Should the employees’ terms and conditions be less favourable

Douw Breed is a director at Barnard Incorporated Attorneys, Centurion

www.automobil.co.za

JULY 2018 -

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LEGAL EAGLE

Commercialising intellectual property The intellectual property (IP) of a company is, in most cases, the most valued asset of that company. So much so, that well-established IP rights can be provided as security to financial institutions to obtain loans or form part of negotiations in large corporate considerations. The importance and concomitant value of IP is often overlooked and, as a result, not capitalised on by many companies

38 - JULY 2018

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O

btaining a patent for an invention; a trade mark for a brand name; a design right for a new design or even having copyright in works is merely the first step in protecting and enjoying the benefits of your IP. The next phase in the successful exploitation of your IP is the commercialisation thereof. There is a multitude of ways to commercialise your IP which include: IP Licensing and Franchising One of the most powerful ways to maximise the efficiency of, and make the most profit from, your IP is by licensing your IP rights to third parties. All forms of IP (Patents, Designs, Trademarks, Copyright and Confidential Information) can be licensed to third parties in the form of a licensing or a franchising agreement.

Distribution Distribution agreements can be concluded with third parties in the event that one does not possess the necessary resources to distribute the product to a region where the demand is high. These distribution agreements will often be on an exclusive distribution basis.

In a licensing agreement, the owner of the right (the licensor) authorises a third party (the licensee) to utilise the rights in exchange for a fee or a royalty. The licensing of IP is the most common method of commercialisation.

Cession and Assignment IP is an asset and, as such, rights in IP can be sold or ceded to third parties or even used as security in commercial agreements. A cession agreement as well as assigning the rights to third parties are both forms of commercialising IP.

Franchising agreements are specialised licensing agreements used to expand an existing brand or product, and usually incorporate the use of Trademarks, Copyright and/or Know-how.

Where companies do not possess assets in the form of properties, etc., the cession of rights in IP can be utilised as security in order to raise capital for further business ventures or product development.

The terms of the licensing agreements are open for negotiation between the parties but will naturally include the conditions of usage, fees payable, warranties applicable and periods of validity.

Manufacturing Depending on the resources available to an owner of the IP, there may exist a need to enter into an agreement with a factory or other large-scale manufacturer

to reproduce the item or product in which the IP subsists.These agreements will again also mostly be on the basis that the manufacturer will have the exclusive right to manufacture the products in question. Profit Sharing Where two respective owners of different IPs wish to collaborate all their IPs and produce a final product, the profits generated by the jointly-owned IP can be shared between such parties and can be manifested in a profit sharing agreement. When entering into profit-sharing agreements, it is always advisable that the agreement be subject to the non-disclosure of business practices, models and other trade secrets. What are the benefits of commercialising my IP? The purpose of the commercialisation of IP is to maximise profits and increase the efficiency of the business to its fullest potential. The commercialisation of IP will undoubtedly expand the business to the extent of your choosing.

Stefaans Gerber is an attorney at Barnard Incorporated 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 authorized Financial Services Provider (FSP 5277) and underwritten by Guardrisk Insurance Company Limited (FSP 26/10/75)

David Furlonger

www.automobil.co.za

JULY 2018

39


INDUSTRY NEWS

Not all doom and gloom for motorcycle industry The recent Motorcycle Industry Stakeholder Summit held at the Autotrader South African Bike Festival highlighted some shocking statistics surrounding the motorcycle industry. Reuben van Niekerk reports

I

n 2013 there were 40 000 new motorcycles sold in South Africa. In 2017 that figure shrank to 18 500. But it is not all doom and gloom, as the under 500cc category has grown by 8% compared with the previous year. But what is the main reason for the overall decline? Experts suggest that is partly due to the fact that school-goers, who can legally ride a motorcycle from the age of 16, are no longer going this route as there are now more alternative modes of transport that were not around five years ago, such as Uber and taxis. The local motorcycle industry has also failed to communicate to the emerging market on the benefits of using motorcycles for commuting purposes with the current total motorcycle market still made up of 95 percent males and 66 percent white buyers. When it comes to actually buying motorcycles, consumers are doing their research online before visiting a dealership. The average number of visits to a dealership before taking the plunge has dropped and the buyers that do walk in know what they want. BMW remains the leader in terms of sales numbers but experts say that this might not only be due to their product offering with consumers now being less brand loyal and placing more value on service and quality.

40 - JULY 2018

The knee jerk reaction against motorcycles is always safety, but if you look at the motorcycle accident rate in South Africa it is insignificant compared with the carnage caused by unroadworthy taxis and jaywalking pedestrians. The truth is, motorcycle riders are some of the most alert road users as they are completely total cost of ownership. For low-volume focused on what they are doing with no short- distance deliveries, you cannot distractions from music or smartphones. beat the ease of use and practicality of a motorcycle. The leisure market and large motorcycle market continues to shrink, so what The time saving is also tremendous, and motorcycle importers need to do to save as our cities become more congested and grow the industry is focus on the I hope that the motorcycle alternative commuting and fleet market. will become more obvious for fleet managers, because the more fleets that Mid-size motorcycles like the BMW G310 are saving time by utilising motorcycles, and high-quality models from Vespa are means a time saving for everyone on the a great alternative for fleets, offering low road.

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INDUSTRY 4.0 READY.

A

SMART Industry requires a

SMART

Work force

WE CARE

It’s about caring for people we render services to

w www.merseta.org.za

WE BELONG

It’s about working together with colleagues

@mersetasocial

WE SERVE

It’s about going beyond the call of duty

merSETA Social

LEADERS IN CLOSING THE SKILLS GAP www.automobil.co.za

JUNE 2018 -

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INDUSTRY NEWS

Triumph motorcycles are back Triumph Motorcycles have been around since 1902. They are one of the last surviving British motorcycle brands around today that build 67 000 bikes a year and have over 7000 dealers across the world. Reuben van Niekerk reports

N

ames such as Steve McQueen and Marlon Brando cemented the Triumph legend, while numerous speed records and racetrack successes ensured that models like the Thunderbird, Bonneville, Tiger and Trident enjoy iconic status. Local fans had to endure a couple of months of anguish when the long-time importer decided that they were done with the brand. Fortunately this was short-lived and the brand is now set to receive the representation that it deserves. Triumph Motorcycles are now imported by Triumph Motorcycles South Africa, an independent company formed following a partnership between Bruce Allen and the Fury Motor Group. Triumph Motorcycles SA is a proud member of the RMI and the Motorcycle Dealers Association.

42 - JULY 2018

Triumph as a brand is evolving, and the new product requires a new retail approach. In order to remain relevant they had to reinvent themselves. Globally all facilities are undergoing change to present Triumph as a premium brand. After a highly productive three months of re-establishing the Triumph business in South Africa, the new team is raring to go and will be showcasing 12 models and 17 derivatives. This includes six new or fully revised models. The dealerships will also offer an extensive range of rider gear and accessories. The new distributor has put service agreements in place with previous dealers and a sufficient parts supply is in place. Trading started on 16 June at a temporary dealership in Sandton while construction

of the Triumph World of Black dealership in Woodmead, which is due to be opened in March 2019, is underway. The medium-term strategy is to open Triumph World Black facilities in Cape Town towards the end of 2019 and in Pretoria in 2020. With these dealerships, Triumph hopes to create an environment where everyone feels welcome to explore a dream, even if you don’t speak the lingo. At the same time they will not alienate old-school bikers who prefer polisie koffie over a flat white. The current range comprises three categories, Adventure, Modern Classics and Roadsters, and will be bolstered by 11 new or fully revised models over the next 12 months.

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The adventure range includes the brand-new Tiger 800 and 1200 models as well as the Tiger Sport. The Tiger 1200 was launched globally in February and is now 11kg lighter and features over 100 improvements, including an increase in power and improved ergonomics. The longest-running adventure story, with a bloodline that began with the gold-medalwinning Tigers of the 1936 Six Day Trial, continues with a new generation Tiger 800 that incorporates the Tiger spirit and takes the capability to a whole new level, thanks to over 200 upgrades to the chassis and engine. The Modern Classics are well represented with the Street Twin, Bonneville, Bonneville Bobber, the new Bonneville Speedmaster, Street Scrambler and Thruxton 1200 R. The handling, character and style of the Bonneville married to the modern riderfocused technology make the Bonneville family the authentic modern classic choice today. The Bonneville Speedmaster embraces the classic DNA from the Bonneville family and the Bobbers unique attitude, into a more practical, versatile package. The Speedmaster From left to right – Hennie Marnitz, (Sa Airbrake offers a classic British custom laid-back style & Truck Bloemfontein), Connie Hartley (Connie B andN high level of specification. B Bloemfontein), Miemsie de Jager (organiser, Sereni-T Business Development Bloemfontein) Viljoen,Bobber RMI IR Specialist / Office Manager TheJacques Bonneville Black follows in Bloemfontein  & Mark Erasmus, RMI Administrator

the success of the Bonneville Bobber, the Bloemfontein. fastest-selling motorcycle in Triumph’s 115year history. The company has taken the model to new heights for the 2018 model year, with a darker, meaner and stronger Bonneville Black. This models builds on the style of the Bobber with a more aggressive stance, thanks to a wide 16-inch front wheel compared to the 19-inch on the regular Bobber, chunkier Showa forks, a fully blacked out styling package, and a higher level of specification including Brembo brakes, LED headlight and cruise control.

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Roadsters include the new Street Triple RS and Speed Triple RS. These models created the performance naked category back in 1994 and coined the phrase factory street fighter. The latest generation builds on the Speed Triple’s perfect balance of power, handling and capability. The new S and RS are improved in every way, with the RS having the highest ever level of specification to reflect its new name and pedigree. The new Street Triple offers a racebred 765cc engine with three levels of power and torque, new state-of-theart technology, highest ever level of suspension, brakes and tyres, aggressive new looks, and class-leading weight that allows it to set a new benchmark in the middleweight naked motorcycle category. Triumph South Africa have committed to having a demo of each model available to ensure that customers are given the best opportunity to determine which model suits their motorcycling needs.

PRICING Tiger 800 XCx

R181 000

Tiger 800 Xca

R199 000

Tiger 1200 XCx

R219 000

Tiger 1200 XCa

R248 000

Tiger Sport

R164 000

Street Twin

R131 000

Bonneville T100

R141 000

Bonneville T100 Black

R141 000

Bonneville T120

R157 000

Bonneville T120 Black

R157 000

Bonneville Bobber

R166 000

Bonneville Bobber Black

R175 000

Bonneville Speedmaster

R175 000

Street Scrambler

R153 000

Thruxton 1200 R

R183 000

Street Triple RS

R152 000

Speed Triple RS

R210 000

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RMI UPDATE

RMI hosts Main & Administrative Agreement seminar

T

he RMI Free State Region, held its first Main & Administrative Agreement Seminar at the Mibco Offices in Bloemfontein on Thursday, 7 June 2018. The seminar was well attended by delegates travelling from towns including Bethlehem, Kakamas, Kuruman and Postmasburg .

This seminar gave an overview of the main provisions of the Agreement with special reference to the following:

The Bargaining Council system, together with provisions of the Main Agreement as well as the Administrative Agreements, tends to create a lot of confusion among employers and employees.

• • •

• •

Application and scope of the Agreement. Hours of work and overtime. Sick leave, maternity leave, family responsibility leave. Other basic conditions of employment relevant in the motor industry. Wage agreement and administration. Application of social security benefits.

Members in the Northern Cape Region can look out for the next seminar which is planned for this month.

Imperial opens training academy

Sèan Fenn, Divisional General Manager Development and Learning

T

he RMI in Bloemfontein was invited to the official opening of the Imperial Technical Training Academy in Bloemfontein where more than 100 delegates attended. The Academy is situated in 12 Tannery Road, Hamilton, Bloemfontein. This launch gave delegates a first-hand experience of the facilities, the staff, and the strong and serious commitment they have to the development of trades in the region. Imperial Group (LTD), through MOTUS Corporation, recently purchased the Interstate Bus Lines Technical Training Centre as a logical strategic decision to meet the growing Apprentice and technical training needs in the Free State. Imperial Technical Training Academy is a provider of training in the industry and

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Mark Erasmus, RMI Administrator Bloemfontein; Dewald Ranft, MIWA National Chairman; Jeánne Esterhuizen, RMI President; Sèan Fenn, Divisional General Manager and Host of the evening; Louis van Huyssteen, RMI National Training Director; Pieter Niemand, MIWA National Director and Jacques Viljoen, IR Specialist/RMI Office Manager Bloemfontein.

covers seven automotive trades. It provides apprentice services to over 300 clients nationally and over 1959 apprentices a year. Imperial Technical Training Academies do not only provide these premier services to Imperial but across the industry to clients seeking modern current and top-class apprentice and skills training. Clients include, among others, the Sandown Motor Group, Supergroup, Barloworld, NTT Group, Rolo Group, BMW SA, Porsche SA, Subaru, Ford, Mazda and Nissan. The focus of the academy is to provide modern, industryleading curriculum using global learning materials, on-line learning, and a highly structured training delivery methodology.

The Free State has historically had a shortage of apprentices and topof-class training providers. Imperial recognised this need and responded by making a significant investment in the region. In addition, ITTA will develop strong apprentice feeder pipelines through the formation of relationships with High Schools, Technical High Schools, Motheo TVET and youth employment agencies to address the growing technical needs of business, address growing youth unemployment and the automotive skills shortage so evident in the nation.

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RMI UPDATE

Mercedes-Benz awards top dealers

M

ercedes-Benz Cars ups the ante with their Dealer of the Year Awards (DOTY) 2018. The coveted annual awards were handed over on Sunday evening at a glitzy ceremony in magical Armani Hotel in Dubai. They said it was impossible. That from nothing but sand, a kingdom could be raised to the sky. That, with nothing but a vision, a benchmark could be set for the world to follow. In the beginning, with only dust beneath their feet, the first few brave architects chose to turn their eyes upwards to the clear night skies, realising that their destiny did not rest in the conquering of the desert, but in their pursuit of the stars. And so, they persevered, through every obstacle and intervention, drawing on the very best of the world, on talents from all four corners, to overcome all challenges, to build ever upwards, disrupt convention, shatter the limits of possibility, and pierce the sky. No greater setting, no better stage, and no more magnificent arena could have played host to reward those who’ve come together to defy challenges with the same determined vision. For the greatest family of automobiles ever conceived, this was the night. For those - like the architects of the city of Dubai – who dared to collaborate as one, paved the way for direction after disruption, to be The Best - or Nothing. “Mercedes-Benz South Africa recognises that 2017 has been an extremely challenging year for the motor industry, and despite leading the luxury passenger car market for the fourth consecutive year, we recognize the dedication, passion and hard work our dealers have undergone to achieve these excellent record sales,” said Johannes Fritz, CoCEO Mercedes-Benz South Africa and Executive Director, Mercedes-Benz Cars.

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“Awards and accolades represent the achievement of goals and targets set despite challenging market conditions. Our dealers have welcomed the benchmark performance measures we set, and each measure has been selected for its impact on the customer experience and, ultimately, the success of their business,” added Fritz.

Johannes Fritz, Executive Director Mercedes-Benz Cars with Henri Roux, Dealer Principal Mercurius Motors

The coveted top two awards: The Chairman’s Award for Best Overall MercedesBenz Cars Dealership: Awarded to Mercurius Motors This Dealership has done exceptionally well by achieving the highest DOTY points, surpassing all dealers, to accomplish the Best Overall Mercedes-Benz Cars Dealer award. This Dealer is going from strength to strength every year, and they have impressed us with their interactions in all aspects of their business. They have also passed all Dealer standards throughout the year. Their overall improved performance in the second quarter of last year made a significant impact, propelling them to be the Best Overall Winner for Mercedes-Benz cars. They have proved you can beat the Best in Class when you strive for it, said Fritz. Mercedes-Benz Financial Services Chairman’s Award – MercedesBenz Cars: Awarded to Mercedes-Benz Brand Centre Cape Town Individual awards including outstanding service for Dealer of the Year category winners: Large Volume Dealer – Mercedes-Benz Cars: Brand Centre Gauteng West Medium Volume Dealer – Mercedes-Benz Cars: Mercedes-Benz Stellenbosch Small Volume Dealer – Mercedes-Benz Cars: De Wit Motors Ermelo Medium Volume Dealer – Mercedes-Benz Vans: New Vaal Motors Vereeniging Individual dealers were also recognised as “Best Performance” category winners: Best Sales Performance MBC (New and Pre-Owned): De Wit Motors Best Parts Sales Performance: United Motors Best Workshop: Mercedes-Benz Sandton Best CSI Performance (Sales & Service combined): Mercedes-Benz Gauteng West BC Best MBFS Mercedes-Benz Car Dealer: Mercedes-Benz Stellenbosch Best AMG Performance - Sales to target: De Wit Motors Best Smart Sales Performance: Mercedes-Benz Gauteng East BC Best Sales Performance MB Vans: United Motors

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Driven by PASSION

Secure the future of your workshop! Choose one of the Bosch workshop concept solutions As a Bosch workshop concept partner you can offer your customers first-class quality and you can profit from distinct advantages when partnering with Bosch: l Internationally

recognised brand corporate identity l Effective marketing and advertising programme l Comprehensive technical support portfolio, including ESI[tronic], l Bosch diagnostics, technical training, hotline and field support l Quality automotive parts at competitive prices l Customer retention programme l National Deal Partner support programme l Fleet program l Distinctive

www.boschcarservice.com/za/en Share the success of a strong brand in the workshop market. For more information, visit our Website or call Customer Careline

0861-267-247 48 - JULY 2018

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FRANCHISING

What makes franchising so successful? T he word ‘franchise’ in French means ‘privilege’ or ‘freedom’ – in essence giving an individual the ‘right’ to something – in this case the right to operate a business or licence under specific conditions. Franchising is, without doubt, the most ‘public’ of business formats. You recognise a franchise because it carries a strong brand, has a distribution mechanism that reaches far and wide, and provides a uniform product, service and image to the public. A true franchise is one that gives the right to an individual to use its trademark, but also gives him/her the complete business blueprint, training in

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all aspects of running the business, and ongoing support. On a more basic level, franchising is really just an extremely good distribution method. The ‘franchisor’ or person who starts a company or develops a concept, uses others (franchisees) to duplicate his concept and distribute it on a large scale. This inter-dependency forms the basis to the business format, and its success lies in the effective implementation of certain basic but clearly defined business principles. The juxtaposed relationship between franchisor and

franchisee needs to be fully understood and accepted for the overall business to succeed. The responsibilities of each side include: How does a franchise chain start? Usually with a good idea! An individual entrepreneur or company starts a business, runs it successfully for a reasonable length of time, has unprecedented interest in the product or service by both the consumer as well as other entrepreneurs, and decides to duplicate his successful concept. Once he registers the trademark and develops an

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FRANCHISING

Operations Manual, a Franchise Contract and a Disclosure Document, he is free to grant licences to others (franchisees) to trade under his trademark under the regulations and controls relating to the operation of the business, in return for fees. The effective duplication of the concept with a distinctive brand and targeted marketing ensures rapid and effective market penetration and widespread brand recognition. What makes a franchise different from other businesses? When you walk down a main street in any city and you recognise a host of branded fast food outlets, retail chains or beauty salons, you are looking at franchised outlets operated by franchisees. That car service outlet you take your car to be serviced, the nail bar you have your nails done or the preschool play group are more than likely franchises. The key to the success of these franchisees is the fact that they all follow a successful formula – from

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the products and services they offer to the look of the stores. The buying public has more confidence in an established brand that has many outlets and a distinctive offering. With a franchise there is name recognition, buying power that greatly affects the bottom line, and ongoing support in the form of research, development, new ideas, market analysis, marketing and the creation of new products. A good franchise is tried and tested, and commercial banks and development corporations recognise the lower risk profile of franchising, and consequently prefer financing a franchisee. Start-up business versus franchise business? The litmus test to prove this theory would be to take the same start-up business, set it up independently, as well as through a franchise system, and monitor the results. There is no question that a Rocomama’s or McDonald’s outlet will have a greater chance of success than Joe’s Burgers.

Although the success of any business ultimately depends on the person who runs it, a franchise business, with its business format system, offers a greater degree of protection from the cold winds of the free market with its support system of training, marketing and business administration. While franchises succeed because of support, they also succeed because they follow a system. How widespread is franchising? Since its inception in the 1950s as a business format, franchising has developed into a global phenomenon, which, if it continues to keep up with economic and retail trends, will continue to be the biggest creator of entrepreneurs, small businesses, jobs and wealth. Its maturity in first world countries has seen it broaden its base – from offering entry-level opportunities for people to start a business, to allowing them to become multi-unit operators with multiple units, and even to become multi-brand

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franchisees. Franchising’s expansion into third world countries has meant that it often constitutes the backbone of the economy and has introduced unique and essentially viable concepts such as social and tandem franchising to assist in grassroots development. What are the major growth areas in franchising? Any area of business can be franchised – from food, wholesale, retail, manufacturing or the service industry. As the innovator of new business concepts and with between 17% (South Africa) and over 70 % (the USA) going through the franchised route, the global franchise sector always considers shifting demographics to find new opportunities for growth. Whether catering to seniors and ‘baby-boomers’ who now find themselves in or close to retirement with needs, time and money at their disposal, to the millennials who now have established careers and families to take care of, franchising can

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provide goods and services related to their growing needs. Do consumers want variety or cookie-cutter concepts? There will always be fads that come and go in the marketplace but, given the size of the franchise sector and the fact that it is franchising that often casts the first stone causing the ripple effect of a trend, developing new ideas and perfecting their roll-out is what franchising is good at. While consumers want variety, they also want the familiar. By duplicating a good product or service, a franchise concept reaches out to thousands of people who feel comfortable and safe buying that product or using that service. Particularly in the current economic climate, the latest trends that are growing segments in franchising include recession-proof concepts such as auto maintenance, home repair and renovation, second-hand retailing, business-to-business services in accounting, tax and consulting. Beauty, fitness and health remains a buoyant

sector aimed at all age groups, from seniors to children who look for ways to a healthier lifestyle. As the world reels from weather disasters due to global warming, ‘green’ and energy-reduction services are also on the rise as consumers become more pro-active in saving the planet. What are some of the drawbacks of owning a franchise? The most obvious drawback lies in the acceptance of the franchise system itself. Although, in some ways a franchisee owns his own business, he is contractually bound to adhere to the franchisor’s operational guidelines. For someone who likes doing things ‘his way’, this could prove a problem. The cost of buying into a franchise, with its structure of up-front fees and set-up costs, is often very high, and a franchisee is contracted to pay ongoing management service fees for the duration of his contract period. Restrictions may also be placed on the franchisee’s ability to sell the franchise as the franchisor has a say in the proposed buyer’s suitability.

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MAINTAINING INDEPENDENCE “TOGETHER WE MAKE A DIFFERENCE” e-CAR’s national network of automotive service centres remains a popular destination amongst motorists that require value for money. Since the launch of the e-CAR network in 2004 the organisation continues to ensure the sustainability of a substantial number of Independent workshops around South Africa, Lesotho, Namibia and Swaziland. ” We firmly believe in assisting independent workshops with the skills, tools, parts and contacts they need to remain in a market that is highly competitive” said e-CAR’s Manager, Rollen Ryan. One of the major contributors to the success of e-CAR’s network in South Africa is the brand’s partnership with the DieselElectric organisation and with preferred suppliers such as ATE, Bosch, Elf, Gabriel, GUD, Hella, Osram, RAM and Sachs as well as being RMI

and AA

compliant.

Membership of the e-CAR network continues to grow. High standards set by the brand are fundamental to the success of all e-CAR members. As e-CAR is not a traditional franchise, members retain a large part of their independence. Camaraderie is encouraged through events such as the National e-CAR Indaba, while delegates are encouraged to update their knowledge across a wide spectrum of topics and trends. With a variety of vehicles entering workshops every day e-CAR is focused on general vehicle service and repairs. The brand offers a complete diagnostic test solution using professional trained technicians in all workshop outlets. Replacement parts are of top quality and provide a competitive advantage in becoming motorist’s first choice. “Quality is key.” Many vehicles can be brought back to specifications following a service at an e-CAR outlet since parts and training are recognised by vehicle manufacturers. In addition, work is done quickly and correctly. “We are not your traditional franchisor, which looks to eradicate a business’s identity, style or culture. We are here to enable small and medium size workshops to grow market share through the establishment of a corporate identity,” says Rollen. When motorists see the e-CAR sign, they see a workshop they can trust and that has substantial backing from an established name in the industry. There is integrity in all transactions plus there is the added assurance of a national warranty. The e-CAR Club, which consists of some 20 000 members, ensures peace of mind motoring and client retention. The e-CAR club provides 24 hour roadside assistance as well as medical and legal advice.

SPECIAL REPORT This feature is sponsored by e-CAR

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BENEFITS OF e-CAR • Belonging to a network whilst remaining independent • Corporate Identity • Customer care training • Motorist retention programme • National advertising and marketing campaigns • National footprint • National Warranty • Parts available through our Diesel-Electric Wholesale Network • Product information and support • Technical training & information • Web advertising and all other social media

e-CAR TECHNOLOGY VALUE • Access to tools and workshop equipment • Bosch KTS and Bosch (ESI) Tronic Diagnostic equipment • Diesel-Electric parts catalogue • Online Suppliers endorsement & Support • Suppliers electronic catalogue • The highest standards as recommended by RMI and the AA • Workshop management system (Auto estimate/Auto manage)

ADDED VALUE TO e-CAR MEMBERS • Loyalty purchase incentive • Logistical support from Diesel-Electric partners • National and regional representative council • Repeat business from motorists In association with

CONTACT DETAILS / Tel: 086 000 3227 / Email: info@e-car.co.za e-CAR ALWAYS FITS TOP QUALITY PARTS

www.automobil.co.za

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FRANCHISING

Why choose a franchise over another business?

I

n today’s difficult trading environment, starting a business or even a franchise does not guarantee success, but, as one franchisee put it, “I would rather be in business within a franchise system than be facing all these challenges on my own.” That is what 80% of franchisees surveyed felt about their businesses, and would recommend their brand of franchise to others. The Franchise Association of South Africa, in addition to conducting a survey on the franchise sector in relation to its franchisors, also surveys franchisees to find out how they are faring and what

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their challenges are. High on the list of priorities within the survey, which is sponsored by Sanlam, is their satisfaction levels in a number of areas ranging from satisfaction with their franchisor, their landlord, and even their suppliers. “All this feeds into keeping the relationship between franchisors and franchisees at a healthy level,” says Tony Da Fonseca, FASA’s Chairman. “Being able to pick up undercurrents of uncertainty or areas that need improvement allows us as franchisors to step up our game and better service our franchisees. What is encouraging is

that franchisees are optimistic about the growth of their businesses, which means the potential for growth in our sector remains strong and positive.” The best litmus test to seeing how successful franchising is as a business model is to ask franchisees whether they would recommend franchising to others. FASA’s survey showed four out of five franchisees surveyed (80%) would not hesitate to recommend their franchise brand to others. According to Vera Valasis, FASA’s Executive Director, this is the best endorsement that potential franchisees considering going into

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Tony Da Fonseca, FASA’s Chairman

franchising have when researching a franchise. “In addition to doing the usual due diligence, we, through the various seminars and franchise shows we run, always insist that prospective franchisees speak to as many franchisees as possible to find out how successful they are and how happy they are with their franchisors.” Whilst franchisees are currently making an average of 9.5% nett profit, there are, however, some indications in the research that franchisees are not quite as positive about the growth of their businesses as they were a year ago. This is

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linked primarily to economic and political influences, resulting in new franchisees taking longer than previously suggested to break even. The survey showed challenges facing the franchisee industry related to finding skilled staff, being able to offer consistently good service, and the poor economy. Secondary challenges were growing the business with new customers, running costs and keeping prices competitive. Increased training in marketing the business and its products/ services were identified as being of great benefit to the franchisee.

Franchising – a win/win formula A successful franchise system is based on a win-win business relationship, where the franchisor promotes co-operation, consensus, provides good leadership, gives direction, and involves its franchisees in the overall goals through effective communication. In franchising, a franchisor must take care to ensure that the franchise is structured in a way that maximises the opportunity for success, and reduces the risk of friction and failure for both himself and his franchisees.

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FRANCHISING

Building a strong franchise system remains the pinnacle achievement for any franchisor, for without a sound business base, the concept, no matter how extensive, cannot prosper and grow. The key to success lies in two levels of support that a franchisor offers in two principle areas: 1) Initial Support – in setting up new franchisees and, 2) Ongoing Support – in developing those franchises for maximum profitability The amount and type of support largely depends on the complexity of the franchise system and the professionalism of the franchisor. INITIAL SUPPORT The support given to a new franchisee in setting up their business in the initial stages is crucial, as it sets the tone for the franchise relationship, and starting off on a good footing is always a good thing. Crucial to the establishment of new franchisees is:

franchisor in such crucial things as site selection, lease negotiations, outlet fit-out, equipment and stock, staffing and opening promotions. •

The Bonding Process Franchisees, when buying into a franchise system, want to feel like a new member of the family, which they indeed are. Many franchisors often forget that franchisees bought into the system specifically to be part of a working unit, and need to be given attention and nurtured. The ‘bonding’ period when the franchise is in the start-up phase is crucial to establishing a strong relationship with the head office team that will continue into the future.

• Training The initial training programme is the first step towards establishing a sound network of franchisees. The programme, which must be closely related to the detailed operations manual, must cover all aspects of the operation, and usually includes both classroom and on-site segments. The training, together with the operations manual, will become the ‘bible’ with which the franchisee can effectively and successfully operate his business.

ONGOING SUPPORT Once the franchise opens its doors, the ongoing support must kick in. This takes the form of a continuous programme of communication and support and is largely funded by the management service fee paid by franchisees.

Set-Up Assistance The start-up phase of a franchise is very crucial – both to the franchisor who needs to make sure that the franchise is set up strictly in accordance with the established standards, and to the franchisee, who needs the assistance of the

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Field Visits An important component of an effective franchise system - the field visits by specially trained service consultants - serves as the umbilical cord that links franchisee with franchisor in all matters operational. The purpose of the regular visits is

to make sure that it is being run in compliance with set down procedures and systems while assisting franchise owners with their specific problems and queries. The field consultants provide details of new services, promotions and planned changes, and are an important link in crosspollinating ideas and strategies between franchisees, and in benchmarking growth development. •

Marketing and Merchandising The effective marketing and branding of a franchise is paramount to the success of the group as a whole and to the individual franchisee in particular. Any new promotion, advertising campaign, in-store branding and client liaison strategy has to be clearly communicated and effectively implemented by all to achieve the desired effect in building the brand.

Ongoing Training Franchise maintenance keeps the wheels of the franchise brand running smoothly, and ongoing training of franchisees and their staff is paramount to the continued success of the brand. In addition, to keeping the standards high, it serves as a forum for shared solutions to common problems and a forum to re-motivate staff.

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“A New Generation of Service”

AUTO CARE & DIAGNOSTICS

www.acdworkshop.co.za

Auto Care & Diagnostics (ACD) is a national network of independently owned workshops specialising in vehicle service, maintenance and repairs plus providing the latest in automotive diagnostic solutions, thereby catering for the changing needs of vehicle owners. ACD facilities are conveniently located and differentiate from competitors by providing first class customer care. The Franchise has a nationwide network of over 75 franchises and the ACD workshop group is contracted to major fleet and aftermarket warranty companies, as a preferred service provider in the field of vehicle maintenance.

“Trust the Diesel Specialists with your vehicle”

DIESEL FUEL INJECTION SPECIALISTS

www.adco.co.za

ADCO is a unique workshop franchise for diesel fuel injection specialists. The national footprint over 20 franchisees, offers a network of professional technicians specialising in diesel fuel injection and related services, ensuring guaranteed workmanship nationwide. ADCO outlets specialise in diesel pump sales and service, turbocharger sales, injector sales and service and diagnostics applicable to relative pump repair.

“The Battery Change Experts”

BATTERY EXPERTS

The Independent Battery outlets control 50% of the “Do it for me” battery market. The Battery Hub Franchise is a specialist battery outlet that is equipped to take advantage of this opportunity in the DIFM battery market. The battery Hub Franchise offer’s batteries’ in the passenger vehicle, heavy duty, marine, motorcycle and utility areas.

www.batteryhub.co.za

“The Competent partner within the Automotive Air-conditioning industry”

AUTOMOTIVE AIR-CONDITIONING SPECIALISTS

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Behr Hella Service has a national network of approximately 31 Service Partners, expanding monthly, of automotive air conditioning service and repair centres. As part of this organization Behr Hella Service is in a unique position to service the local aftermarket with the widest range of air conditioning related products which fully comply with international Original Equipment standards set by vehicle manufacturers. www.automobil.co.za


Paving the Franchise Way Contact our Franchise Head Office on 011 879 6000 2 Gordon Avenue, Meadowview Business Estate East, Linbro Park 2090

“Heavy Duty: Sales, Service & Fitment

CLUTCH & BRAKE SPECIALISTS

www.cbsclutch.co.za

CBS has been servicing the clutch and brake industry for more than 50 years. With experience in both the heavy and light vehicle market there is nobody better positioned to take care of your brake and clutch needs? There are over 20 stores in key locations country-wide ready to offer you professional service expected from a highly specialised workshop like CBS.

“The primary supplier of Ferodo commercial vehicle linings “

WITH YOU ALL THE WAY

www.ferobrake.co.za

Established in 1965, Ferobrake has a long-standing history of being amongst the market leaders in it’s field of expertise. With 25 dealers nationwide, Ferobrakes enjoy the benefit of exclusive pricing on Ferodo vehicle linings. Ferobrake is the primary supplier of Ferodo commercial vehicle linings to the transport industry. Ferodo linings are supplied by Maxifren, a division of Aftermarket Solutions and they also manage the marketing of the Ferobrake brand.

“Your car deserves the best”

For the love of cars

www.midas.co.za

Midas is a retail store designed around the needs of any vehicle owner focusing on various product ranges from parts and accessories through to lifestyle equipment. There are over 300 franchised outlets in Southern Africa. All our products from the approved suppliers are guaranteed for a full 12 months against manufacturer’s defects on a national basis. The aim is to guide consumer perception and encourage them to associate quality branded products that are guaranteed, with Midas franchises.

“Put the spark back in your drive”

AUTO-ELECTRICAL SPECIALISTS

www.motolek.co.za

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

“No matter what you drive, keep it cool”

ENGINE COOLING SPECIALISTS

www.silverton.co.za www.automobil.co.za

Service excellence - providing our customers with peace of mind since 1949. Silverton Radiators has been in the engine cooling business for more than 60 years and if there is anybody who understands engine cooling than it’s us. For fast, friendly and efficient service let the professionals help you. There are more than 110 Silverton Radiators dealers spread across Southern Africa so where-ever you are there is a Silverton Radiators dealer near you. MARCH 2018 - 59


RMI UPDATE

FAQs

Answers by experts to questions received recently by the RMI

running, they deteriorate over time. “In economy; loss of power and sluggish addition to high heat, the sensors can performance. also be affected by contaminants in the  exhaust, excessive amounts of unburned “If your car shows any of these symptons, fuel in the system and other things. It’s it’s important to have the engine important that vehicle owners know that inspected and the sensors replaced if tsensors don’t last forever,� says Ranft. necessary. A faulty O2 sensor can lead to   premature damage. When replacing an He adds that generally O2 sensors last oxygen sensor, it’s important to use the between 80 000km and 100 000km. same type as the original.� “However, if your engine is properly   maintained, the sensors can last longer. He recommends taking your vehicle to Most late-model vehicles do not have a an accredited-MIWA workshop where recommended replacement interval for the mechanic can read the oxygen oxygen sensors. Some manufacturers say sensor’s output with a scan tool or digital that replacing the sensors at high mileage voltmeter. is a good way to assure peak performance and fuel economy.� “Oxygen sensors are amazingly rugged   considering the operating environment While the average vehicle owner won’t in which they live. But they wear out and know when the sensors are faulty, eventually have to be replaced. Ask your especially if there isn’t a Check Engine mechanic to check the sensors during light or codes that might suggest a fault, your regular maintenance services. The Ranft says there are some commons signs only way to know if the oxygen sensors 201807FREE.FH11 Fri Jun 22 15:38:13 2018 Page 1 to watch out for including an engine that are doing their job is to inspect them Because the sensors are exposed to C M fuel Y CM MY regularly." CY CMY K idles roughly or splutters; reduced high temperatures when the engine is Q: What are O2 sensors and how long do they last?   A: Stricter environmental controls and the requirement to create less pollution have led to far more complex automotive exhaust systems. One component of these systems is the oxygen sensor or Lambda sensor.   Dewald Ranft, Chairman of the Motor Industry Workshop Association (MIWA), an affiliate association of the Retail Motor Industry Organisation (RMI), explains that depending on the make and model you drive, you could have one or more O2 sensors in the exhaust system. “The sensors measure the amount of oxygen in the exhaust gas and send the information to the car’s computer. The computer then works out if the engine is running too rich (too much gas) or too lean (too much air) and adjusts to compensate.�

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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 application visit www.autodata-group.com VOLKSWAGEN POLO: KNOCKING NOISE WHEN CLOSING DOOR Problem: When closing the driver’s door of a customer’s 2011 Volkswagen Polo, a knocking noise can be heard. We have removed the door trim panel and checked for anything that may be adrift, but nothing seems to be out of position. Can you help? Solution: The knocking noise you describe has been reported to us before on three-door Polo models (2009-12 derivatives) which feature electrically powered windows. The noise is due to the window winder mechanism drive cable knocking against the inside of the door upon closing. Remove the door trim panel. Use a 6,5mm drill to make a hole in the door positioned as shown in figure 1. Secure the window winder mechanism drive cable to the inside of the door with a cable tie. Ensure that the cable tie is not too tight. Refit the door trim panel. Operate the door to ensure the fault has been rectified. Repeat the procedure for the opposite side.

NISSAN MICRA: CARPETS WET AFTER HEAVY RAIN Problem: We are having trouble diagnosing water ingress on a 2011 Nissan Micra. The front footwell carpets are wet after heavy rain. We have carried out several water tests but cannot see how the water is entering the vehicle. Have you got any advice for us? Solution: Yes, we are aware of this fault. The cause is water ingress through the bulkhead bodywork joints due to insufficient sealant. Top repair the fault, remove the side trim panels in RH and LH footwells. Inspect the bodywork joint in LH footwell, then apply sealant to the affected area. Follow a similar procedure for the bodywork joint in the RH footwell. Dry the carpets.

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MEMBERUPDATE

The RMI welcomes these new businesses into membership A Aero Motor Dynamics AIH Logistics All Star Auto Care B Bavarian Workshop Big Five Panel n Paint C Car Service City Pinetown Cartime – Bluff Cartime – CBD Cartime – Kokstad CCH Mechanical Solutions Chwepheshe Automotive Engineering Corefact 1115CC Custom Paint Solutions D Dent Doctor Auto Expert Dynamic Fuse E Epic Tyres and Car Service F Funkys Autobody & Speedshop KZN G Gearbox Guys Geartronix DSG Centre H HB Autospec Hi-Q – Langebaan Hi-Q – Fourways I Ians Auto Clinic IFS Risk Consultants Inkosi Auto Centre J JJ Exhaust K KAT Customs Kobi Automobile Repairs Koketjo Ramokone Trading L Left and Right Panelbeating Limpopo Fleet Services M M4J Muhle Auto Centre Marician Workshop Mashila Panelbeaters MBG Automotive

Centurion Durban Pinetown Sandton Durban Pinetown Durban Durban Kokstad Alberton Pietermaritzburg East London Durban Kimberley Lebowakgomo Pretoria Durban Kilnerpark Randburg Pretoria Langebaan Sandton East London Randburg Durban Mooi Nooi Brackenfell Pretoria Nylstroom Germiston Polokwane Pretoria Polokwane Seshego Brackenfell

Melz Panel and Paint Midlands Spares and Auto Mitech Auto Modor Automotive Mouteya Convenience Centre MT Morrison Projects O OBI T Spares and Projects P Perfect Drive Tyre and Fit Platinum Panel and Paints Power Steering Solutions R R and S Motorsport RJB Mechanical Repair Ronnie Reed Clutch & Brake S S & S Auto Airconditioning Steinbach Agencies Subaru Tableview Superb Mechanical and Auto T Tiger Wheel & Tyre Tzaneen Transkai Motor Service Trimway Motors Triton Brands TS Auto Tune in Turn Trading & projects Turbo Bay Tyre Extreme SA U Ugly Duckling Automotive V V2K service & repair Centre Viresa Mechanical Workshop Vukile Mechanical Workshop W Works Clinic

Durban Pietermaritzburg Blackheath Pretoria Bronkhorstpruit Pretoria Johannesburg Johannesburg Durban Bellville Midrand Pretoria Port Elizabeth Pietermaritzburg Port Elizabeth Cape Town Nelspruit Tzaneen Mthatha Milnerton Pinetown Ermelo Ermelo Richards Bay Olifantsfontein Springs Midrand Pretoria Pietermaritzburg Mahikeng

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 - JULY 2018 EDITION

64 JULY 2018

CLIENTS Aer O Cure AAAS Alert Engine Parts AutocosmosBiz (Electrolog) AA Technical College e-CAR FAE - Parts Incorporated Ferdinand Bilstein South Africa Fiat Professional Gumtree Mahindra Merseta Moto Health Care Robert Bosch Silver Falcon Trading Snap On Africa Tenneco Automotive - Monroe The ROSE Foundation Titan - Parts incorporated Trysome Auto Electrical Vortex - Parts Incorporated

CONTACT WEBSITE 011 444 6454 www.aerocure.co.za 011 879 6000 www.aaas.co.za 011 573 8637 www.alertengineparts.com 012 327 6210 www.autocosmos.co.za 011 799 1068 www.aasa.co.za 011 341 0445 www.e-car.co.za 011 879 6000 www.aaas.co.za 010 900 4545 www.blue-print.com 010 252 5000 www.fiatprofessional.co.za 021 403 6449 www.gumtree.co.za 0861 62446372 www.mahindra.co.za 010 219 3000 www.merseta.org.za 0861 000 300 www.motohealthcare.co.za 011 651 9600 www.bosch.co.za 083 628 2288 www.hurricaneauto.co.za 031 569 7673 www.snapon.co.za 011 574 5603 www.monroe.com 021 448 7492 www.rosefoundation.org.za 011 879 6000 www.aaas.co.za 011 823 5650 www.trysome.co.za www.automobil.co.za 011 879 6000 www.aaas.co.za

PAGE OBC 58 & 59 15 64 7 52 & 53 45 35 IBC 61 23 41 10 & 11 48 63 IFC & 34 21 16 & 17 33 46 27


Truck 2018

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

JULY 2018

65


TAIL PIECE

Motorsport dates to diarise July 7 July 7-8 July 8

Dezzi Invitational Challenge, Dezzi Raceway, Port Shepstone Scottburgh Classic Car Show, Scottburgh

July 14

Extreme Festival, Scribante Raceway, Port Elizabeth

July 14

Power Series, Killarney Raceway, Cape Town

July 14

Regional races, Dezzi Raceway, Port Shepstone

July 29

Historic Single-seater GP Revival, Phakisa Raceway

August 4

Extreme Festival, Red Star Raceway

August 4

Regional races, Dezzi Raceway, Port Shepstone

August 5

POMC Cars in the Park, Zwartkops Raceway

August 9

Power Series, Killarney Raceway, Cape Town

August 9

Bloemfontein Cars in the Park, Bloemfontein

August 10-12

Concours SA, Steyn City, Midrand, Johannesburg

August 11

AEC 4-Hour & regional races, Scribante Raceway, Port Elizabeth

August 11

Historic Tour, Dezzi Raceway, Port Shepstone

August 18

Extreme Festival, Zwartkops Raceway

August 25

Inland championship, Phakisa Raceway

August 25

Border races, East London GP Circuit

August 31-September 2

66 JULY 2018

Extreme Festival, Zwartkops Raceway

Festival of Motoring, Kyalami GP Circuit

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

A PROJULY LIKE2018 YOU67


DAISY WHEEL The revolutionary paint mixing and dispensing tool.

HIGH TECH DISPENSING WITH TRUE COLOURS

EXCLUSIVELY DISTRIBUTED BY

Dosing Precision: • Precise and repeatable dispensing. The right colour every time. Precision of + / - 0.05g Maximized Paint Conservation: • No coagulation linked to air contact meaning less paint loss and a better quality • Drastically reduced evaporation Time Savings: • Lets the operator know the exact remaining paint levels in the machine for easy, proactive stock management • A positive gain in the organization of the repair process as the 100% automatic dispensing process allows the painter to maximize car preparation time. • No need for colorists to bring base colors back and forth to the dispensing area. Optimized Working Conditions: • A more comfortable and secure working environment as physical contact with the paint is drastically reduced • Web interface compatible with paint color software of the market Environmentally Friendly: • Less paint wasted, less mess, less solvents and less energy used. TECHNICAL SPECIFICATIONS: • Machine dimensions: 106cm x 103cm x 69cm • Table dimensions: 790mm x 900mm x 615mm • Machine weight: 127kg (without table) • Machine capacity: from 96 x 1L up to 160 x 0.5L (according to paint manufacturer configuration) • Can dose cups from 50mL to 2L • Electrical data: - P (W): 400 - U (V): 100-240 (50-60Hz) - I (A): 4 max • Air network: 6 < P < 10 bars • Certification: Atex Zone 2

For the full range visit: www.aerocure.co.za

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)

Automobil July 2018  
Automobil July 2018  
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