Page 1

JOINING FORCES

SEPTEMBER 2018

MPEA aligns strategies with RMI model

BREAKING BARRIERS

What drives RMI President Jeรกnne Esterhuizen GETTING OUT OF THE STARTING BLOCKS RMI UPDATE: INTERESTING MOTOR INDUSTRY INSIGHTS FROM NADA-DSI

www.automobil.co.za AWARDS; PARTINFORM VISITS CARS IN THE PARK; RMI ROADSHOWS VISIT COASTAL REGIONS; SETTING UP A NEW WORKSHOP

SEPTEMBER 2018

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CONTENTS – SEPTEMBER 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: Polygraph Questions Answered 66 Tailpiece: Kia showcases next generation Separated Sound Zone technology UPDATES

P32

12 News

Editor: Reuben van Niekerk reuben@thefuture.co.za Sub-editor: Peggy Lendrum peggy@thefuture.co.za

42

RMI review

Interesting Motor Industry insights from NADA-DSI Awards; Partinform visits Cars in the Park; RMI roadshows visit coastal regions

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

COVER STORY

P42

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Getting out of the starting blocks

The MPEA are aligning strategies with the overall message of the RMI

Publisher: Richard Lendrum richard@thefuture.co.za

FEATURES

Production: Mabel Ramafoko mabel@thefuture.co.za Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za Future Publishing (Pty) Ltd 247 Jan Smuts Avenue, Dunkeld West, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 803-2040

28

Breaking four-wheel barriers

We get to know Jeánne Esterhuizen, president of the RMI better

32

Reviving growth

An air of positivity is permeating through SA’s automotive industry following the latest quarterly report from NAAMSA

34

Lead acid batteries are on the way out

The lead-acid battery has been overtaken in terms of worldwide revenue by lithium-ion batteries

38

Procedural fairness

In order for the dismissal of an employee to be fair, both substantive and procedural fairness are essential

P46

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

40

Your company, your reputation and Social Media

The increased use of social media magnifies companies’ risks and steps need to be taken to anticipate and mitigate these risks

49

Installments, balloons and GFVs

Choosing the best vehicle financing option

54

Diagnostic solutions from Bosch

Service specialists must meet the sophisticated requirements of advanced technologies and deliver a quality of service that satisfies demanding customers

Automobil is available to purchase from the publishers at R25 a copy.

56

What to start with when starting a business

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.

A guide to the daunting process of setting up a new business

58

Using a compressor in the workshop environment

A quality air compressor is an essential tool for any workshop

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).

© 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

4 SEPTEMBER 2018

www.automobil.co.za


DRIVER’S SEAT

Ensuring representation at the highest levels Membership of the RMI is a sensible investment in your business, says Jakkie Olivier, CEO of the RMI

Jakkie Olivier, CEO of the RMI

W

hen I recently attended various RMI roadshows throughout the country, it gave me the opportunity to step back from the daily running of the RMI and witness through the interaction with our members what the organisation is actually all about, what we provide for our members and why. From the member interaction and feedback I received, I once more confirmed the dire need for individuals and predominantly small businesses to have a strong, collective voice to overcome the ever-increasing challenges of doing business in South Africa. Through the power of the RMI as an umbrella organisation, members for example, have representation at the highest levels when new legislation is introduced or when changes to existing legislation threatens to negatively impact on business owners’ ability to do business and protect their investment. The most recent example is the planned introduction of a ‘Code of Conduct for Competition in the South African Automotive Industry’. The Competitions Commission of South Africa has recently released the second draft for comment. The Code will no doubt

influence the future of the automotive industry, and it is best if the RMI and its constituent associations comment, influence and persuade the authorities in a positive manner on behalf of its almost 8 000 members. This is to ensure an outcome that will not only protect the automotive industry but contribute towards a growing economy. Without the collective might of the RMI, these negotiations and processes would not even make it to the first round. When the RMI initiates discussions or negotiations, our vast experience and size of our membership allows us to make things happen on your behalf. In previous columns, we discussed the importance of the unity that the RMI thrives on, and over many years strength in unity has become a common slogan in the business context. The RMI constituent associations are extremely active in addressing the daily business challenges of their particular

sectors, while the RMI brings them together to fight the battles as a united front that affects the entire industry. RMI membership is about more than just having the collective voice and power taking on new legislation and related developments, and fighting the good fight. These additional benefits include legal and labour advice, the Motor Industry Bargaining Council, access to social, medical and retirement funds, B-BBEE guidance and assistance, apprentice training, complaints resolution, and various customised products and services. These are just a few examples of the benefits that can help you to conduct your business even better. Belonging is better business – so it makes sense to belong to an organisation that has your business interests at heart and has the collective power to make a difference.

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

www.automobil.co.za

SEPTEMBER 2018 -

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

T

he RMI is a proactive, relevant, retail and associated motor industry organisation recognised as the leading voice in South Africa’s automotive aftermarket, serving the daily needs of its members and playing a key role in enabling motor traders to deliver top class service to motoring consumers. Here are the associations which fall under its umbrella… ACRA (Automotive Component Remanufacturers’ Association) ACRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, an ever-growing industry in which keeping abreast of change is crucial for business owners. ERA (Engine Remanufacturers’ Association) ERA represents motor engineers who re-machine, rebuild and remanufacture engines in South Africa. ERA members promote the reuse of engines, parts and components in a manner that is green and sustainable. ERA members create employment and skills development opportunities, directly in their own machine shops and indirectly through suppliers to the industry and component manufacturers. MDA (Motorcycle Dealers’ Association) MDA represents members who are motorcycle dealers – these members benefit from an extensive array of value-add services and products such as commercial insurance, labour legal assistance and representation, consumer dispute resolution, and a strong relationship with the Association of Motorcycle Importers and Distributors. MIMA (Motor Industry Manufacturers’ Association) MIMA members are Parts, Equipment and Component Manufacturers and suppliers to Original Equipment Manufacturers and the automotive aftermarket that exports into Africa and other countries in the world. MIWA (Motor Industry Workshop Association) MIWA, the largest association within the RMI, strives to keep its members informed about the ever-changing auto repair industry, thereby ensuring that vehicles are repaired to acceptable standards designed to make them perform better and safely on South African roads. MPEA (Motor Parts and Equipment Association) MPEA represents South Africa’s auto part traders, including wholesalers, retailers and independent operators in the replacement motor parts industry. Genuine replacement parts are available at accredited MPEA spares outlets at affordable prices, backed by the manufacturer’s warranty. NADA (National Automobile Dealers’ Association) NADA represents the interests of business people who own or operate new vehicle franchise dealerships and qualifying used vehicle outlets. NADA is committed to the image enhancement of the retail motor business, facilitating the interface between dealers and OEMs/distributors, building relationships between dealers and customers and bringing relevant industry issues to the attention of government.

6 - SEPTEMBER 2018

TA

Vehicle Testing Association

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

www.automobil.co.za


The parts that make the industry work

D

evelopments around the Right 2 Repair Campaign seem to be popping into our Inbox on a weekly basis now. While both the Manufacturers Dealerships and the aftermarket workshops and suppliers make valid points for and against this model, the verdict is still out on which way the South African market will sway. The South African market is unique in that many new models are sold with service or maintenance plans included in the purchase price that are similar in duration to the warranty of the vehicle.

AA_TechnicalCollege_1_2.pdf

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2018/08/01

EDITOR’S LETTER

This makes it very difficult for the aftermarket to get a foot in the door during the initial phase of the vehicle’s lifecycle.

in favour of the consumer. So workshops need to ensure that their work is up to standard if they want to survive in this challenging market.

The aftermarket has also become very competitive in terms of both parts supply and labour. First, the range of aftermarket parts has expanded dramatically.

I predict that the Right2Repair war might be won by the party that can market themselves most effectively and convince the consumer that their option is the one to go for. This is where institutions like the RMI will play a critical role, as they will need to be a guiding light that can aid consumers to make the right choice from all the marketing fluff.

These days there are varying price ranges of parts from the OEMs and a wide variety of quality aftermarket options available. The maturity of the market means that it is very difficult for a supplier of inferior parts to survive, as the market simply does not tolerate it. The same goes for workshops that are responsible for the fitting of these parts. The advent of Internet rating sites, the Consumer Protection Act, and the ongoing work that the RMI does means that if work is not up to standard the consumer has recourse that is very often

But this edition of Automobil is not only about parts - we also get to know the RMI President, Jeánne Esterhuizen a bit better, and have a look at the Coastal Roadshows that took place recently. The Garage and Equipment feature allows us to investigate the setting up of a new workshop and the various uses of a compressor.

16:29

The competitive advantage your business needs.

Reuben van Niekerk, Editor

AA.co.za Education Driven by the AA

Ensure that your technical staff are skilled to deliver optimum service and ongoing productivity. Calling all employers who are interested in hosting learners, at no cost for stipend or training. Ts & Cs apply. Trade training offered: • Automotive electrician

• Diesel fitter

• Automotive engine fitter

• Motor mechanic

• Diesel mechanic

• Diesel fuel injection technician

Call us NOW! 086 133 3668 weekdays 8am to 4pm. www.automobil.co.za

SEPTEMBER 2018

7


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

www.automobil.co.za


NEW PRODUCTS

HOT STUFF Showroom shimmer for your Tyres

Henry Ford is quoted as having said that ‘a handful of men have become very rich by paying attention to details that most others ignored’. Spanjaard is not saying that their latest car care product, Tyre Shine, is going to help rake in the big bucks – but it will help you and your car look like a million of them.

Snap-On launches Tyre Pressure Sensor system tool kit

The Tyre Pressure Sensor system tool kit from Snap-On is the perfect complement to a technician’s Snap-On diagnostic platform. The TPMS diagnostic tool tests tyre pressure monitoring sensors, captures sensor data and relearns tyre pressure monitoring systems as well as programming of aftermarket sensors and the printing of sensor information.

Spanjaard Tyre Shine is designed to keep your wheels in showroom condition for longer, a pivotal part of looking after your ride. With a career spanning 53 years, local motorsport star Willie Hepburn knows that attention to detail is a key aspect of attaining peak performance – and gives Tyre Shine the ‘thumbs up’ as part of any vehicle care regime.

Features include the ability to diagnose TPM sensors and determine whether a replacement is needed, capture TPM sensor data, and displays PSI, ID, temperature and battery status. It also features vehicle-specific prompts that guide the TPM system that relearns after tyre rotations or sensor replacement. Furthermore, the device is able to test key fobs for proper signal strength and battery condition.

With one easy spray application, Spanjaard Tyre Shine gives your tyres a high-gloss shine, protecting and caring for the vital rubber that connects you to the road.

Benefits include replacement TPM sensor part number look-up for OEM and aftermarket sensors, daylight-readable 2,8 inch-high resolution VGA display, built-in lithium ion rechargeable battery, TPMSconnect portal that installs on PC or laptop and administers software updates.

Tyre Shine is the latest in leading lubricant and allied chemical products of manufacturer Spanjaard’s exclusive and extensive car-care range. With every product in the range designed and manufactured to ensure your car maintains its showroom shimmer, you’ll be free to cruise around town in race-ready style with a car that’s pristine, both inside and out. Spanjaard Tyre Shine is available in 500ml aerosol and 2 x 6 shrink packs per carton.

www.automobil.co.za

Registration of the tool through TPMSconnect provides 12 months of access to new software. View the product video at the following address http://www.johnbean.co.za/tpms4 This item is available from Snap-on Equipment or its nationwide Dealer network which can be reached via www.johnbean.co.za.

SEPTEMBER 2018 -

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OGILVY SA 6721/E

Progress. The savvy way. The puts the power in the driver’s hands.

More control, less uncertainty. That’s what you can expect when you book your Audi A4 in for an . This new offer streamlines and simplifies vehicle maintenance by giving you the opportunity to build your own service package based on your A4’s unique needs. Add absolute transparency in the form of upfront pricing and you have, without a doubt, the smartest way to service your Audi. Visit audi.co.za or your nearest Audi Dealership for more.

10 - SEPTEMBER 2018

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www.automobil.co.za

SEPTEMBER 2017 -

11


NEWS

Daimler to split into three companies

“They will be able to enter even more focused cooperative ventures and partnerships. All three companies will be German co-determined stock corporations based in Stuttgart. Daimler AG, the parent company, will exercise corporate governance, strategy and management functions and provide cross-divisional business services,” the statement says. As an operational holding company, responsibility for the funding of the new entities will lie with Daimler AG, which will continue to be listed on the stock exchange, and synergies between the entities will continue to be overseen by the parent. The statement says there are no plans for the corporation to divest individual divisions.

T

he Board of Management and Supervisory Board of Daimler AG have approved a new corporate structure for the company. Having completed a global assessment of organisational and tax implications, steps are in place to transform the current divisions of Cars and Vans and Trucks and Buses into legally independent entities. Already legally independent, Daimler Financial Services AG will become Daimler Mobility AG. The moves follow one of the most comprehensive due diligence studies in Daimler’s 130-year history. Under the new structure, the company plans to empower its divisions with greater entrepreneurial freedom, positioning the entities closer to markets and customers while giving them autonomy to enter into partnerships easily and quickly. Dubbed Project Future, the reorganisation of the divisions is scheduled to take place this year and next, with approval by shareholders expected at the company’s Annual General Meeting to be held on

12 - SEPTEMBER 2018

May 22 next year. Restructuring is set to be completed in 2020. Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG, said the new structure was aimed at putting Daimler in a position to tackle the rapid pace of change in the mobility sector. “Legally independent divisions will sharpen our focus on the future success of the business,” he said. Once the new structure has been fully implemented, the Mercedes-Benz Cars & Vans Division – which will be known as Mercedes-Benz AG – will have around 175 000 employees worldwide, while the Daimler Trucks & Buses division, called Daimler Truck AG, will have around 100 000 employees. Additionally, Daimler Mobility AG expects to employ about 13 000 people. A statement issued by the company says the three divisions will give the Daimler Group more flexibility. The new companies will operate with clear focus, independent corporate responsibility and higher potential for value creation.

According to Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, Project Future represents continuation of a strategy to best position the company technologically, culturally and structurally for the future. “At the heart of all these changes are the needs of our customers around the world: With the new structure we will be able to offer them mobility solutions even better tailored to their needs,” he says. The statement adds that Project Future is part of Daimler’s 5C corporate strategy to prepare the company for challenges and opportunities in a new automotive era – a strong core business (Core); the transition to new technologies (Case); an open and agile culture (Culture); the right structure (Company) and customer needs (Customers). Bodo Uebber, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services, says reorganisation of the company involves reassigning more than 700 subsidiaries in over 60 countries. Costs for making the changes are expected to be in the high three-digit million euro range, while implementation of Project Future will also incur additional running costs in coming years.

www.automobil.co.za


Volkswagen drives transformation

V

olkswagen Group South Africa has recruited a third wave of candidates for its Dealer Principal Apprentice Programme (DPAP). The programme, which spans 18 months, aims to develop black dealer principals for the company’s retail network. It forms part of a R100-million investment the Uitenhage-based company has made in promoting its transformation initiatives in South Africa. “The intention of the DPAP is to ensure economic inclusion and diversification of Volkswagen and Audi dealers as well as fostering a true spirit of transformation and black economic empowerment,” says Nonkqubela Maliza, Volkswagen’s Director of Corporate and Government Affairs. Launched in 2011, the programme’s selection criteria are focused on experience and development potential. The programme offers candidates personalised mentoring and coaching

Volkswagen’s latest group of Dealer Principal Apprenticeship Programme candidates with Nonkqubela Maliza, the company’s Director of Corporate and Government Affairs (centre, front row)

using a learning model structured around principles of leadership and management. This year’s programme – developed by Optima Training, a global specialist in education – highlights retail business development, finance, leadership and general management. Earlier programmes have seen 21 delegates graduate – 10 candidates becoming dealer principals and the others earning promotion to management and financial director roles.

Goodyear welcomes new director

G

oodyear South Africa has announced the appointment of Piotr Czyzyk as Director of Trentyre and Commercial Business.

Formerly Commercial Director for Goodyear in Central Europe, Czyzyk has been consulting to Trentyre since February this year. According to a statement issued by the company, he has worked for Goodyear for nearly two decades, serving

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in a variety of executive roles in the Ukraine, Poland and Central Europe. In a welcoming address, Darren HayesPowell, Group Managing Director of Goodyear South Africa, said Czyzyk showed strong leadership capabilities combined with thorough business understanding. “I am confident that Piotr will effectively lead the execution of the company’s optimal go-to-market approach, further improving satisfaction for our customers and enabling implementation of innovative solutions,” he said.

Kyalami revives 9-Hour race

T

he Kyalami Grand Prix circuit is set to host a modern-day equivalent of one of South Africa’s most iconic sports car endurance races – the 9-Hour. The event will form part of the 2019 Intercontinental GT Challenge, and is scheduled to take place from November 1 to 3 next year at the recently revamped venue. Other races which make up the calendar are the Bathurst 12-Hour in Australia, the 24 Hours of Spa in Belgium, the Suzuka 10-Hour in Japan and the California 8-Hour at Leguna Seca in the United States. In the ’50s, ’60s and ’70s the 9-Hour event played a significant role on South Africa’s motorsport calendar, drawing an international field of top racing drivers and some of the most exciting GT cars of the time, among them Ferraris, Porsches, Matras and Fords. Kyalami’s owner, Toby Venter, said he was delighted that the rebuilt facility had been well received in global motor racing circles. “I am very pleased that the first big international race at the venue will see a return of the 9-Hour endurance event that was such a favourite with fans and drivers in the past,” he said. Manufacturers expected to enter cars in the upcoming event include Aston Martin, Audi, Bentley, BMW, Ferrari, Honda, Jaguar, Lamborghini, Lexus, McLaren, Mercedes-AMG, Nissan and Porsche.

SEPTEMBER 2018

13


NEWS

New repair technologies at Automechanika Frankfurt 2018

C

onnectivity, digitisation and artificial intelligence – Automechanika Frankfurt 2018 promises to be transformed into a hotspot for future automotive trends when it opens this month in the German city. Perceived as a showcase for innovative products and solutions for the automotive aftermarket, the organisers say this year’s event – which runs from September 11 to 15 and which celebrates the 25th anniversary of the Automechanika concept – will highlight what workshops need to ready themselves for the repair of tomorrow’s vehicles. “Leading industry players and first movers in the field of 3D printing and electromobility will be showing off their latest products and solutions,” says a statement issued by Messe Frankfurt. Participants include German and international automotive manufacturers, representatives from the parts industry, transport and logistics providers, the energy industry, workshop equipment

14 SEPTEMBER 2018

providers, software developers and startups. Areas of focus include connected cars, vehicle safety, mobility services, state-of-the-art workshop technologies and cluster initiatives. Discussion forums will be held each day as part of a programme organised by the Automechanika Academy, where representatives of a number of specialist companies will deliver insights regarding latest automotive trends. For example, Robert Bosch will be utilising augmented reality to explain high-voltage motors as part of a certified workshop. Another highlight promises to be a presentation by Lamborghini on aspects of professional repairs to accidentdamaged carbon fibre. Visitors to the show can look forward to new products and services from a wide range of companies with more than 4 800 exhibitors expected to display their wares. For the first time Reifen – a tyre show – will be co-located at the event, along with another first, a Classic Car show. In

addition, the organisers have promised a special display of electric vehicles which covers the 130-year history of the energy source in automotive applications. Technical focus areas include new software diagnostic solutions for workshops, the role of artificial intelligence in vehicle repair, and even time management and customer relationship management. Latest trends in digitisation, networking, connectivity, autonomous driving and alternative drive systems will also be featured. “Automechanika Frankfurt is the most important trade fair for the automotive aftermarket and has been organised by Messe Frankfurt since 1971,” says the statement. The event takes place every two years, alternating with the Frankfurt Motor Show. Its aim is to bring industry, retail and workshops together in one place. According to the organisers, the last fair drew 133 000 trade visitors from 170 countries.

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Product Range:

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SEPTEMBER 2018

15


16 SEPTEMBER 2018

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SEPTEMBER 2018

17


NEWS

Audi and Ericsson team up on auto manufacturing

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ehicle manufacturer Audi and communications company Ericsson have announced plans to pioneer the use of 5G technology in automotive production, with field tests scheduled to begin shortly at a technical centre in Gaimersheim, Germany. Making the announcement, Frank Loydl, Chief Information Officer at Audi AG, said fully networked factories would have significant impact on production techniques of the future. “We will be testing the opportunities offered by 5G technology for industrial applications in the smart factory,” he said. Erik Ekudden, Chief Technical Officer at Ericsson, said the company was already running 5G industry programmes to help manufacturers boost productivity and create new business opportunities.

“This project is a great opportunity to see what is possible when we bring 5G into an automobile production environment to truly enable smart wireless manufacturing,” he said.

In the first phase of the project, Audi and Ericsson will test a latency-critical application using wirelessly connected production robots programmed to glue pieces of a car’s body together – a commonly used technique in auto construction.

The medium represents the nextgeneration of mobile communications, able to deliver improved, faster connectivity, opening up applications for everything from connected vehicles to smart factories.

The planned infrastructure at the technical centre will include the implementation of 5G technologies in a simulated production environment that mirrors those of Audi’s plant in Ingolstadt and other locations.

According to Ekudden, the technology has network characteristics that are essential for increasingly flexible and complex production processes, allowing for quicker data throughput rates and more capacity, as well as promising highly secure availability. “Moreover, ultra-low latency ensures fast response times between equipment in the factory system,” he says.

The centre will be equipped with Ericsson’s Proof-of-Concept (PoC) network which is an open trial facility to enable early deployments of 5G technology. The network is designed to integrate alternative or complementary technologies to the ones currently in use, including WiFi or wireless LAN, or wired (Ethernet) connectivity of production components.

Eagle takes over at Fiat Chrysler

F

iat Chrysler Automobiles (FCA) has announced the appointment of Graham Eagle as Chief Executive Officer for South Africa.

for Honda Motor Southern Africa, where he served as Vice-President of Operations until reaching mandatory retirement age earlier this year.

The appointment follows the resignation of Robin van Rensburg, who left office on July 26 to pursue other interests. Van Rensburg oversaw FCA South Africa’s transition into a single trading entity as part of a global merger of Fiat’s and Chrysler’s businesses.

A statement issued by FCA says Eagle’s experience will be of major benefit to the company, its dealer network, supplier base and customers. “He is an active member in many industry forums and has a strong track record of achievement and success.

Eagle brings over 40 years’ worth of auto industry experience to the company, having worked for the Nissan Group – where he was instrumental in introducing the Fiat Uno to South Africa – as well as

“In addition to his proven high-level negotiation skills, Graham possesses an excellent understanding of statutory corporate responsibilities,” the statement says.

18 SEPTEMBER 2018

Graham Eagle, FCA South Africa’s new CEO

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New tyres from Michelin

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ichelin has introduced to Southern Africa the latest version of its Primacy tyre range – the Primacy 4. The tyre has been designed for use on hatchbacks, sedans and crossovers and is said to raise standards of safety and performance. Gaganjot Singh, Michelin SA’s Regional Director for Southern Africa, describes the tyre as category defining. “It took three years to fully develop. The update is a concrete demonstration of our group strategy – that consumers must be able to drive safely, throughout the lifespan of a tyre, right down to the legal wear indicator of 1,6mm.” He said several Michelin patented technologies had been combined to enable the tyre to deliver strong traction and reliable braking performance, while the tread pattern had been manufactured with an optimised geometric sculpture that allowed for quick and efficient water dispersal. According to Michelin’s tests, in dry conditions the tyre brakes on average 0,8m shorter than tyres of direct competitors while, in the wet, the average is 0,9m shorter. Tested in worn condition, braking distance is said to be up to 2,8m shorter than that of competitor brands, while tyre lifespan is a claimed 18 000km better. Simultaneously, the brand has made available locally its LTX Force range of SUV and 4x4 tyres, which Singh says incorporate World Rally Championship technology and which are designed for longevity, toughness and increased safety.

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Steeling a march on tyre recycling Clean steel ready to be exported from the Mathe Group’s tyre recycling plant at Hammarsdale

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ammarsdale-based Mathe Group – billed as South Africa’s largest tyre recycler – has begun to export to Korea and Australia steel by-products which it recovers from truck tyres.

investment in a de-beading machine – which extracts the main steel bands from the tyres ahead of the crumbing process – has resulted in improved output and efficiency.

According to Dr Mehran Zarrebini, head of British investment group PFE International – which is one of the major shareholders in the Mathe Group and sister company Van Dyck Floors – the recycler’s focus had been on producing large quantities of rubber crumb for use in acoustic products, flooring, road resurfacing and fill for sports fields.

“Last year, the blades on our shredders quickly became blunt because we were processing the whole tyre in one go. Now, the new machine removes the steel before the rubber is shredded, significantly reducing wear and tear on blades.”

However, he says about 27% of each 68kg truck tyre comprises hi-tensile steel which, when recycled, is suitable for use in vehicle manufacturing. As the Hammarsdale plant consumes more and more truck tyres – it expects to recycle 250 000 this year – steel output grows. “We processed more than 100 000 used truck tyres in 2017, which accounted for 1 501 184kg of shipped steel. Between January and June this year we have extracted and exported 987 698kg of steel – about 300 000kg more than we managed in the same period last year,” Zarrebini says. He adds that, until recently, the majority of steel was removed using magnets during the shredding process, but

Also, the company has developed its own baling machine to compact the steel, enabling up to 20 tons at a time to be loaded into containers for export for Durban Harbour. Zarrebini says that demand for recyclable steel from the plant is growing, not least because the product is deemed to be particularly clean. “We have less than four percent rubber contamination in our product, making is far easier to process than steel sourced from elsewhere in the world,” he says. Zarrebini says investment in the plant – which draws the majority of its 75 employees from surrounding communities – remains a priority. Output has more than doubled since the facility opened in 2016, with staff compliment growing from an initial 15.

SEPTEMBER 2018 -

19


NEWS RMI UPDATE

Dunlop starts local truck tyre production

S

umitomo Rubber South Africa (SRSA), manufacturer of the Dunlop tyre brand, has started production of truck and bus radial (TBR) tyres at its newly inaugurated plant in Ladysmith, KwaZulu-Natal.

it was already producing. The factory now employs 1 060 individuals, with over 80% of the workforce hailing from Ladysmith and surrounding areas.

According to a statement The milestone is a issued by the company, the culmination of a factory aims to eventually journey of expansion have the capability to and development by manufacture enough Sumitomo Rubber tyres per day to meet TBR Industries Ltd, which customer demand of Dunlop bought the Ladysmith and Sumitomo branded tyres plant in December for both the replacement and 2013. The acquisition original equipment markets facilitated a production across Africa. location for Dunlop in SRSA’s CEO, Riaz Haffejee Africa as well as control SRSA’s CEO, Riaz Haffejee, of the brand’s rights for said extensive research the whole of the continent. and development processes had been followed in the design and production In 2016 a further R970 million was of the TBR tyres. He said sales would invested in the plant to enable SRSA to commence in the fourth quarter of introduce and manufacture TBR tyres this year, with a full range of tyre sizes locally, alongside the passenger car tyres available from September next year.

New fuel for lower emissions?

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azda Motor Corporation has announced that it has begun a joint research project with Saudi Aramco and Japan’s National Institute of Advanced Industrial Science and Technology (AIST) which aims at reducing emissions from internal combustion engines. According to a statement released by the company, Saudi Aramco will develop a fuel using a refinery process that results in lower carbon dioxide emissions, and Mazda and AIST will research and develop a high-efficiency engine to use the fuel. The initiative is expected to

20 SEPTEMBER 2018

yield technologies that effectively reduce emissions on a well-to-wheel basis. “It is no longer sufficient to focus solely on the tank-to-wheel phase and develop fuel efficient engines and cars that emit low levels of carbon dioxide only while driving on the road,” the statement says. It adds that the company hopes to contribute to the conservation of resources and preservation of the environment while offering vehicles that combine outstanding environmental and safety performance with true driving pleasure to wider range of customers globally.

New oil from Shell

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o coincide with a newly introduced API SN Plus oil standard, Shell has launched in South Africa Helix Ultra SN Plus 0W-20. In a statement, the company says the product – which is synthetic – has been developed in response to vehicle manufacturer’s requests for motor oils that help to protect modern turbocharged engines from Low-Speed Pre-Ignition (LSPI), a condition which can cause engine failure. According to Anton Nieman, Shell’s General Manager for Commercial Lubricants, the new oil is aimed at mitigating engine stress in addition to providing a number of other benefits. “Car manufacturers are under significant pressure to create engines that not only offer increased fuel economy, but which also comply with global emissions regulations. “The solution so far has been turbocharged gasoline direct injection (TGDI) engines but, with the increase in LSPI related issues, the industry is turning to motor oils to help mitigate the problem. “Our solution, based on Shell’s PurePlus Technology, is Helix Ultra SN Plus, a fully synthetic product that is perfectly designed to better protect modern turbocharged engines.”

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www.automobil.co.za

JUNE 2018 -

21


NEWS

‘Local focus will deliver growth’ Renai Moothilal, Executive Director of NAACAM

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state-of-the-art trim and JIT assembly plant built by Adient South Africa at Rosslyn, near Pretoria, represents a positive move forward for the country’s automotive manufacturing sector, according to the National Association of Component and Allied Manufacturers (NAACAM). In a statement, NAACAM says the facility demonstrates the country’s ability to meet the demands of some of the world’s most exacting clients – in this case, BMW, which will use seat assemblies and covers manufactured at the plant for its new X3 model. “The investment demonstrates the value of localisation. Development of the world-class, $7,4-million (about R102million) plant was the result of close collaboration and skills-transfer between Adient South Africa and Adient teams around the world, and the plant provides employment for 370 people who will contribute to growth in both the footprint and service quality of South Africa’s

local manufacturing sector,” says Renai Moothilal, NAACAM’s Executive Director. He adds that the component manufacturing sector has seen greater interest in localisation opportunities by vehicle assemblers in the past year, which NAACAM believes is in line with expectations of an APDP policy shift that will give greater incentive recognition to domestic value-add in the post-2020 period. “Such investment showcases the capability of, and trust in, South Africabased suppliers, and we look forward to seeing more such examples,” he says. According to Moothilal, Adient is no stranger to South Africa. Based in Michigan in the US, the automotive parts manufacturer entered the local market in 1994, and now operates four plants in Southern Africa – the Rosslyn facility, a seating plant in Silverton, Pretoria, a JV metals plant in Port Elizabeth, and a cutand-sew plant in Lesotho.

However, he points out that despite success stories, NAACAM believes more needs to be done in terms of how much local content international vehicle manufacturers source from South African businesses, and also the number of partnerships established between local manufacturers and sub-suppliers. “It is only through this type of sector-wide localisation that South Africa can hope to compete directly with other emerging automotive economies, such as those in Thailand, Turkey and Mexico,” Moothilal says. “Without such competitiveness built into our national policy and transformational goals, we run the risk of losing status as a serious and dynamic manufacturer of automotive products – limiting the local sector’s ability to expand; to hire more people; forge new partnerships; increase local skill levels and, ultimately, drive our economy into a more prosperous, more inclusive, and more impactful phase of growth.”

Green light for Kia schools Kia Motors has formally handed over two Green Light Project schools to communities in Malawi and Mozambique. The schools, which were constructed and established under the brand’s Corporate Social Responsibility (CSR) programme, accommodate more than 2 000 learners. The handover ceremonies took place last month at the Green Light school in Lilongwe, Malawi and at Helene, in Inhambane Province, Mozambique. “The Green Light Project seeks to provide communities in some of the most

22 - SEPTEMBER 2018

deprived parts of the world with the opportunity to build better lives through improved access to healthcare, education and vocational training,” said Kia’s CSR team leader, Kyehwan Roh. “A key element of the programme is providing the means for these communities to eventually manage the facilities for themselves.” Parallel to the handover ceremony, Kia assembled a global employee volunteer group to support the company’s Green Light Project activities in Ethiopia, where the company has established an

automotive technical training centre in Addis Ababa. The centre – which is situated in one of the poorest parts of the city – opened last year. During summer holiday periods the company’s volunteers visit the facility to take part in vehicle maintenance education programmes.

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MAY 2018 -

23


ASSOCIATION OF THE MONTH

Getting out of the

starting blocks The MPEA (Motor Parts and Equipment Association) National Executive Council members have, for some time, pursued the need to align strategies with the overall message of the RMI to which, the NEC is delighted to confirm, will now continue in a focused manner

I

n line with this, the announcement of the finalisation of the RMI’s Public Relations strategy and the appointment of PR Specialist Agency, Cathy Findley and associates to provide the legs to this process, allows for a far-reaching synergy in the direction and future of the Association. The NEC have been working hard to seek out benefits for the other RMI Association members in order to further enhance the principle of support between members. When the words, Right to Repair, are uttered in corridors and meetings across the country, it brings with it many mixed feelings, ranging from concerns for the future to the

24 - SEPTEMBER 2018

excitement of the growth possibilities that the Campaign potentially carries within its message. The MPEA NEC have voted unanimously to support the Right to Repair Campaign as a Tier 1 sponsor. There is a need to bring to the minds of the consumer that aftermarket parts supplied by MPEA members are not rubbish, inferior or substandard. Although there have been many aspersions cast over the issues of the aftermarket products, these aspersions have no place in the MPEA context. This is the most complete synergy alignment applicable to the market and the support of the Right to Repair campaign, as MPEA memebers pride

themselves on supplying quality parts to the MIWA (Motor Industry Workshop Association) members and DIY consumers alike. MPEA members are able to provide assurances to MIWA members and their customers that the traceability and reputation of the products supplied are fit for purpose and backed by the appropriate after sales support. The MPEA believes this to be a significant vote in favor of enhanced inter-associational support of each other. In order to fully benefit from this, the NEC has taken the decision to further promote the Association in line with

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the overall RMI new thinking model PR campaign. The intention is to provide all MPEA members with new RMI and MPEA logo stickers in order to identify themselves from the nonparticipants - this will be supported by an additional sticker indicating the alignment with the Right to Repair (R2R) Campaign. The association will additionally support these efforts with regular press releases.

among the customer base relevant to their geographical area.

members, who make up a good chunk of the general MPEA members’ current target market and clientele.

The MPEA NEC urges all members to use this opportunity to add value to their business by using the MPEA branding together with the R2R logo in the future.

”Currently there is no downside to the MPEA’s support of the R2R campaign. We feel that MPEA members can take advantage of their MPEA status and drive the marketing of their own businesses around the fact that their shops are proudly RMI and MPEA members and now also supporters of the R2R campaign, which is already well known to cosnumers thanks to extensive marketing” said Johann van de Merwe National Chairperson for MPEA.

All the funding that the R2R receives from sponsors is used to fund PR campaigns around the consumers’ right to choose, by educating them of the challenges faced in the industry as a result of vehicle manufacturers holding onto info that should be made available in order to allow independents to carry out the same work using quality parts, the correct tools, and relevant technical and diagnostic information from reputable sources.

MPEA members are encouraged to elevate their business profiles and conduct localised marketing activities

The MPEA hopes that this move will assist in forging stronger interassociational relationships with MIWA

“I am delighted that we have this opportunity to channel a portion of our energy into the Right to Repair

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SEPTEMBER 2018

25


ASSOCIATION OF THE MONTH

campaign and in doing so supporting MIWA, who have championed this campaign from the start as ambassadors for the consumer,”said Hedley Judd, Director MPEA. The Competition Commission is presently formulating the ‘Motor Industry Code of Conduct’, this is essentially in line with the ‘Block Exemption’ rules of Europe, ‘Retail Motor Trades Code of Conduct’ of Australia and practical examples from Russia. The MPEA has made direct representation on behalf of it’s members at the Competition Commission with regard to the Industry Code of Conduct which is directly linked to the efforts of the R2R campaign. The Competition Commission had until then not realised that the source of

26 - SEPTEMBER 2018

components did not emanate solely from the OEMs, but rather aftermarket component manufacturers, under contracts. These efforts along with those of MIWA and R2R have significantly played a role in shaping the next edition of the Code of Conduct. MIWA and R2R have held separate specialist meetings with the competition commission in order to provide their input to the Code of Conduct. This campaign will most certainly be a determining factor in the future of the industry. The decision to sponsor the R2R Campaign means that: • MPEA shows solidarity with MIWA • MPEA as an association will be able to capitalise on the visibility of the Campaign • MPEA will be able to seek reciprocity from the MIWA in future.

Benefits for the MPEA member include: • Each member is able to market their business as a R2R supporter. • Members can capitalise on the existing workshop customer base, as preferred suppliers. The MPEA and it’s members need to use the opportunity to market the merits of this partnership in order to see the best results from this sponsorship. How this translates to value for the MPEA is directly related to how much effort is made at the individual dealer level to leverage the merits of the collaboration. The proverbial ball is now not only in the MPEA’s court, but also in the individual MPEA dealers and the MIWA members’ courts as they need to work together to make this partnership a success.

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E X CLUSI VE RA T E S AUGUST 2018 -

27


RMI UPDATE

Breaking four-wheel

barriers Jeรกnne Esterhuizen took up the role of president of the RMI in 2016. Get to know this dynamic woman a bit better

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orn in Barkley East, Jeรกnne Esterhuizen has always had a passion and love for beautiful cars and bikes. She and her business partner opened Technicolour in 1994 as a small micro enterprise. In the space of the first 15 years it has grown into a large company and is currently rated as the best overall Motor Body Repairer in the Free State. The company received a number of national accolades in its 24 years of existence. Frustrated with onerous legislation, she soon realised she needed to expand her influence from a small business space into the larger industry where she could influence and impact policy. As National President of the Retail Motor Industry Organisation, Free State and National Chairperson of the RMI, Chairperson of the RMI National Training Committee, National and Regional Chairperson of SAMBRA as well as her membership and representation on a number of other Boards, she is integrally involved in policy, transformation, sustainability, wage negotiations and a number of other key Human Resource issues impacting on the industry and its employees. Esterhuizen is a powerhouse to be reckoned with, bringing in a refreshing and dynamic perspective to an industry still largely dominated by men.

28 - SEPTEMBER 2018

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Q: You describe yourself as a conscious capitalist A: For those that don’t know the “Conscious Capitalist Credo”, it is founded on the belief that business is good because it creates value; it is ethical because it is based on voluntary exchange; it is noble because it can elevate our existence, and it is heroic because it lifts people out of poverty and creates prosperity. Free enterprise capitalism is the most powerful system for social cooperation and human progress ever conceived. It is one of the most compelling ideas we humans have ever had. But we can aspire to even more. I really believe in that, and feel we can all do more to uplift the people and communities around us. I have seen what we have been able to achieve in our own small community. It was only much later the realisation came that through my broader involvement in the industry, the industry could inadvertently provide a platform to grow and to share my business experience as a means of giving back to industry. Q: How important is a formal degree? A: When I first started I could not study full-time, so I had to study part-time. Unfortunately, I could not finish any one degree due to personal tragedies experienced at different points in my career. Fortunately, I was blessed with incredible mentors who taught me everything I needed to know to be successful in business while I was working. Most of the knowledge I have, which is topic specific, I acquired on my own. I used to import books from Barnes and Noble from a young age. Nowadays I acquire audiobooks regularly to assist me to cope with the demands of business and to perform to my utmost potential. So, my advice to young people is, don’t think it is the end of the road if you can’t finish

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a degree. You must, however, be an avid consumer of information – have a voracious appetite for detail. I have read fact and fiction from the very young age of four, and have never stopped. Also try and complete as many courses you can in your chosen field of work to add to your overall understanding. Q: How important are mentors? A: They are everything. I have been blessed with having so many people, academics and authors, who have helped me along the way. In particular, however, there are two gentlemen I have to mention. One was a Chartered Accountant and the other an IR Specialist. The Chartered Accountant is no longer alive, but the IR specialist is a successful businessman in a completely different field of business and he currently lives in Australia. We are still in contact. I must also acknowledge Merseta, RMI and MISA who have supported me in my personal development and thirst for knowledge. Equally, without the success of my own business it would not have been possible to spend so much time giving back to industry and society in general. I have a generous business partner and fantastic dynamic management team and employees to thank for the success of our company. My son runs the business in my absence. He is an absolute joy. He is a progressively successful entrepreneur who is an inspiration to both young and old. Q: What is the biggest challenge in the industry? A: Training and skills development. I am a firm believer that skills development and training are key drivers to stimulate economic growth in South Africa and create sustainable jobs. Small businesses

fail mainly due to a lack of skill to manage and grow their business. We work closely with training institutions in Bloemfontein to train artisans, not only to meet our own needs, but also to provide to industry as our trades fall in the category of scarce and critical skills. We are currently diversifying into new areas of business, and embarked on an exciting journey to implement a niche digital marketing strategy to position ourselves a notch above the rest for generations to come. Q: How important is passion? A: It is the key to success. I have always loved beautiful cars and bikes. I was very young when I made up my mind that I would drive a Mercedes-Benz when I was grown up. Besides cars, over the years I have driven off-road bikes, progressed to superbikes, and eventually settled down with a dual-purpose BMW 800 GS. This I eventually sold, and now I like performance, yet comfortable cars. I couldn’t be in a better industry if I tried.

Q: As a woman in a predominantly male-dominated environment, what are your biggest challenges? A: Sexism is, I am afraid, alive and well in our male-dominated environment, but definitely not only confined to the motor industry. It affects women and girls as it often leads to gender discrimination. The belief that men are intrinsically superior to women is still clearly defined in terms of workplace inequality. This inequality is prevalent in the decision-making process of some companies and/or in their pay practices. It is my experience when a woman stands firm on her principles in the boardroom or workplace and refuses to capitulate, male pride is sometimes compromised, and this can cloud good judgement and lead to conflict.

SEPTEMBER 2018 -

29


RMI UPDATE

I was brought up to believe only in the ability entrusted to me, so I have no pride when I walk into a boardroom, and that has helped me a great deal to function optimally. Q: Why do you feel women can do well in this industry or any business for that matter? A: A number of studies have shown women work harder than men, are more precise in execution of tasks, easily adapt to change, and are more socially conscious. These qualities are needed in business, specifically in relation to the types of challenges any modern-day business faces. Q: What advice can you give other women wanting to enter the industry? A: If you love technology and commerce and are interested to know how beautiful and powerful vehicles and motorcycles are designed, built, maintained and repaired, then this is the industry for you. It is also an industry in which you can do well. We actually have four women on our RMI board, which is good for any industry. A large majority of our member associations also employ women to engage with customers, handle the administration and human resource functions as well as the ordering of supplies and so on. Many of these businesses start as family-owned businesses, so mothers, wives and daughters all get involved.

30 - SEPTEMBER 2018

Q: What are your four most important life lessons? • You need a social conscience. You need to be part of the bigger picture and must share your knowledge and successes. • No person is ever an island. Mentors, friends and colleagues play a significant part in one’s own personal development and growth. • Never compromise your values. • Always learn more than you need to – superficial knowledge is dangerous. • Be dynamic, willing to buy into life-long learning, and work and enjoy finding solutions to complex problems. Q: Biggest disappointments? A: None. Life is precious, and every disappointment has a lesson hidden in it. Best to search until you find what it is to prevent it from recurring. Q: What two attributes do you think are the most important for success? A: Innovative thinking, and a fundamental belief that you are unique and have a specific purpose in this life. Q: Best advice to other business owners • Always grow your business in relation to what it can handle. Don’t be overwhelmed by other people’s success. Learn to differentiate yourself from others. • Live at the doorstep of experts and learn.

• Share life experiences so others can learn and benefit from them. • Never look at your success in isolation. Understand the place and value of acquired knowledge. • Only surround yourself with good people and worthy causes. • Add value wherever you go and you will have the ability to give back to society. • Be motivated by watching your own efforts translating into success for other businesses. Q: Greatest business achievements • Honorary Fellowship: awarded March 2017 by The Institute of the Motor Industry, a global Professional Body based in the UK. To date I am the only woman outside of the UK to be awarded this prestigious acknowledgement of my efforts in the area of Skills Development and Training both locally and internationally. • Acknowledgement from the previous Minister of Higher Education and Training for my contribution to developing the skills of the workforce in SA. • Automobile Person of the Year in 2011. Q: Greatest personal achievements/ hobbies A: Raising a child to be proud of. Hiking the Inca Trail in Peru and landing a large Tiger Fish in Zambia while a crocodile was trying to grab it. Q: Favourite saying A: Live every day as if it is your last.

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Driven by

MOBILITY

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

What drives you, drives us www.automobil.co.za

SEPTEMBER 2018 -

31


INSIDE LINE

Reviving growth

An air of positivity is beginning to permeate through South Africa’s automotive industry, backed by NAAMSA’s latest quarterly report which predicts steady growth in new-vehicle demand in the domestic market and from export customers. David Furlonger reports

O

fficial figures showing further slowdown in overall South African manufacturing activity underline once more the importance of the motor industry to the country’s economic health. Trade and Industry Minister Rob Davies has often cited the automotive sector as an example of what can be achieved through targeted, consistent policy. Government planners and privatesector consultants talk constantly of the need to reverse the long-running de-industrialisation of Africa’s most industrialised economy. South Africa even offers to help other countries grow their industrial base. Unfortunately, we rarely seem to heed our own advice. Admittedly, a decade of economic stagnation under Jacob Zuma hasn’t helped, but it’s been exacerbated by bloody-mindedness and lack of commitment elsewhere. If the motor

32 SEPTEMBER 2018

industry can grow in a self-induced recession, why can’t other sectors? The automotive sector’s contribution to South Africa’s economy is well documented – it represents 30% of the country’s total manufacturing output; 13,9% of export values and supports more than 900 000 jobs across multiple industries. Overall, it contributes about 7% to the country’s GDP. Maintaining this performance is not a given. Never mind the local economic circumstances – the future of South Africa’s motor industry is also hostage to conditions in other countries. With more than half of vehicles produced locally earmarked for export, the industry’s future depends on circumstances in nearly 150 markets around the world. The potential effect on South Africa of US President Donald Trump’s gung-ho willingness to set off an international trade war shows the risks.

Nico Vermeulen, director of the National Association of Automobile Manufacturers of SA (NAAMSA) says: “Rising protectionism internationally and trade disputes have contributed to uncertainty.” That’s why a number of local events are reassuring. Early this year, BMW and Volkswagen each completed R6-billion investments in their local subsidiaries. In June, fellow German carmaker Mercedes-Benz dwarfed these figures with a R10-billion shot in the arm for its East London assembly plant, mainly to cater for the introduction of the next generation C-Class model. According to Markus Schäfer, a member of the Mercedes-Benz Board, the investment is a sign of the company’s commitment to South Africa and its efforts to revive economic growth – along with socioeconomic development – in the East London region.

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More recently, there’s even been good news from the Chinese, with BAIC showing off the first car built at its new Coega assembly plant, near Port Elizabeth. This was well behind schedule – it happened, conveniently, during a visit to South Africa of Chinese President Xi Jinping – and there’s no knowing what will be the rate of assembly in coming months. But, given that some people were beginning to doubt that the project would ever get off the ground – plant construction had been painfully slow and halted completely after it emerged BAIC was planning to import building materials and labour – even one car is a step forward. In theory, the plant will eventually cost R11bn, including a 35% contribution by South Africa’s Industrial Development Corporation. In theory, again, it will reassemble imported kits up to an annual maximum of 50 000 units by 2022, then

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switch to full manufacturing towards an eventual yearly target of 100 000 units. The overall air of local automotive positivity is backed by NAAMSA’s latest quarterly report. The April-June review document predicts steady growth in new-vehicle demand, both domestically and from export customers. The local market, which totalled 557 701 units in 2017, is forecast to grow to 572 000 this year, then to 587 500 units and 608 000 units in 2019 and 2020. Exports, from 338 093 vehicles in 2017, will swell to 340 000 this year, then to 384 100 units and 402 150 units across a similar timeline. Don’t try to add the two sets of figures together, because local sales include many imports. But the overall impact, if NAAMSA is right, is that total South African vehicle production – which reached 601 178 units in 2017 – will increase annually to 609 000, 661 600 and then 688,150 units in 2020.

Notwithstanding global economic uncertainty, Vermeulen says of overseas demand: “Information provided by vehicle exporters indicates that order books remain fairly strong, and vehicle exports are expected to start improving over the balance of 2018 and reflect strong upward momentum in 2019 and 2020 as well as in subsequent years.” Manufacturing capacity utilisation in local vehicle plants grew by nine percentage points in the second quarter of this year, from 74,4% to 83,4%. However, reflecting local market demand, capacity utilisation for all sizes of commercial vehicles fell between the first and second quarters.

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

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TECH TALK

Lead-acid batteries are on the way out

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he traditional lead-acid battery that the motor trade is familiar with has been overtaken in terms of worldwide revenue contribution by lithium-ion (Li-ion) batteries. Last year the latter was responsible for 37% of the total batterysales revenue, compared with the 33% produced by lead-acid batteries. This article aims to highlight the differences between the two types.

Modern car batteries are specifically designed to start engines, and are pretty useless for any other duties. Theyâ&#x20AC;&#x2122;re called starter batteries, and are constructed with a large number of thin plates. This results in a large active plate area, and a low internal battery resistance, so that the battery The following important rechargeable battery can deliver a high amperage current types are in use at present. for a short period to start an engine quickly. Such a battery does not like The table below compares the LEAD-ACID to be completely discharged, and characteristics of the four commonly-used These batteries are rugged and well will lose approximately 10% of its rechargeable batteries. Three different understood, and thermally stable, but have capacity every time this happens. It kinds of Li-ion batteries make use of one a low specific energy and a limited cycle life. also does not respond well to deep of three types of metal oxides as active Theyâ&#x20AC;&#x2122;re robust and are still the battery of discharge and charge cycling. If it is material, as shown below. choice for most vehicles. used in an application where it has to supply current for more Lead-acid NiCd NiMH Li-ion Li-ion Li-ion than about 15 seconds, NiCd Cobalt Manganese Phosphate the plates will overheat. These batteries should be Specific energy (Wh/kg) 30-50 45-80 6-120 150-250 100-150 90-120 Cycle life 200-300 1000 300-500 500-1 000 500-1 000 1 000-2Â 000 charged at low amperage, preferably by a modern Charge time (hrs) 8-16 1-2 2-4 2-4 1-2 1-2 solid state charger that will Self-discharge/month (%) 5 20 30 <5 <5 <5 reduce the charging rate Toxicity Very high Very high Low Low as the battery gets close to Cost Low Moderate High being fully charged.

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Battery development is focused on increasing specific energy, which is the answer obtained when the energy capacity in terms of watt. hours is divided by mass of the battery in kilogram (Wh/kg). Cycle life is the number of discharge/charge cycles it will endure before it becomes unfit for service.

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Batteries suitable for caravans and other similar duties are called deep-cycle batteries. They often look just like starter batteries, but the internal construction is different. There are fewer but thicker plates, and this gives the battery the ability to deliver a lower current for longer periods of time. These batteries can be recharged many times. The actual count depends on the initial discharge. If it is fully discharged every time, it should take up to 200 charge/discharge cycles before old-age failure sets in. Most new cars are fitted with maintenance-free batteries. These batteries are sealed, so that you cannot check the electrolyte level, but there is a small valve in the casing to control the venting of gas that is generated when a battery charges or discharges rapidly. When extra current is fed into any lead-acid battery that is fully charged, it starts to split the water that’s inside into oxygen and hydrogen. These two gases combine explosively to form water, which is why it is dangerous to allow a spark near a battery. Sealed batteries cope with these gasses by combining them again to form water. This prevents a water loss, and also makes them a lot safer than the open type. Heavy-duty batteries for trucks often have extra-thick casings to withstand vibrations, because the jolts and vibrations that a vehicle is subjected to, is often dislodges plate material, thus causing early battery failure.

• •

Kinetic energy recovery systems on hybrids will recover more energy at the same rotational speed as before. The drive motors for hybrids can be made more powerful. The components needed for autonomous driving, such as cameras, radar units, sensors, and even the extra computer power needed to navigate, are all going to benefit from a four-fold increase electric voltage.

One surprising result of this change is the fact that electric wiring can now be made thinner. The power absorbed by an electric component is measured in watts, and since watts are equal to volts multiplied by amps, this means that if the volts are increased the amps can be reduced in proportion. For example, a 12V component drawing 10 amps will have a wattage of 120, but if the voltage was increased to 48, the amperage would drop to 2,5 without affecting the component’s performance. A disadvantage of the extra voltage is the fact that the contact surfaces of the switchgear would have to be redesigned to cope with the extra voltage. NICKEL-CADMIUM (NiCd) These batteries are thermally stable, but need fuse-protection. They’re used where a long-service life and a high discharge

current is required. It incorporates the only chemistry that allows ultra-fast charging with minimal stress. They’re used in power tools, medical devices and aviation, but are being replaced by other chemistries due to environmental considerations. They’re still in use in aircraft because they have a good safety record. NICKEL-METAL-HYDRIDE (NiMH) These are beginning to replace NiCd batteries because they employ only mildly toxic material and have a higher specific energy. They are thermally stable, but need fuse protection. They are used in medical instruments, in some electric cars, and industrial applications, and are also available in rechargeable AA and AAA cells. LITHIUM-ION (Li-ion) These are replacing many lead-acid and other battery types due to a high cycle count, very low maintenance requirements and a low cost per cycle. They’re used in many electric cars, but needs a protection circuit to prevent overheating. HOW DOES A BATTERY WORK? Take a lemon, drive a copper coin and a zinc-plated nail into it, and connect the leads of an ammeter to each. The meter will register a weak current, because you’ve created a battery.

Recently, some of the more expensive car brands have switched to 48-volt batteries for the following reasons: • The starter motor on a stop-start system has to start the engine as fast as possible, not only to make the system feasible in city traffic but also to waste as little energy as possible. • Many of the latest engines are equipped with electric water pumps and electric oil pumps that are capable of delivering just the right amount of liquid for the driving conditions.

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TECH TALK Closing the external circuit started a chemical reaction between the two dissimilar metals while in the presence of the acidic lemon juice. The metals have to differ in their willingness to give up electrons, otherwise the battery wonâ&#x20AC;&#x2122;t work. The chemical action causes some atoms to give up negative electrons to the zincplated nail (called the negative electrode). This will change the atoms into positive ions. These ions will start to populate the lemon juice (called the electrolyte). The electrons will flow in the external circuit where they show up as a current, from the zinc-plated nail (negative) back to the copper coin (which is called the positive electrode) where they recombine with the ions to form atoms. When a battery is charged, the opposite action takes place. The various types of battery differ mainly in the materials used to create the chemical action. A lead-acid battery is constructed with lead dioxide (brown) on the positive terminal, spongy grey lead on the negative terminal, and sulphuric acid as an electrolyte. When fully charged, lead oxide and electrons are added to

the positive terminal, lead and electrons are removed from the negative terminal, and the concentration of the acid has strengthened. When discharged, the lead turns into lead sulphate at the negative terminal, and electrons are driven from the positive terminal to the negative terminal. The electrolyte weakens considerably.

oxides are those of cobalt, manganese and phosphate, as shown on the chart.

In a lithium-ion battery the negative terminal consists of porous carbon, while the positive terminal is a metal oxide. The ion and electron movement during discharge and charge between these terminals is the same as in the case of the lead-acid or the lemon battery.

ELECTRIC CAR BATTERIES Lead-acid batteries have been used in all sorts of vehicles since 1896, but very little progress was made until other materials proved more suitable. These batteries are relatively inexpensive, but a glance at the chart will show that they have a low specific energy, meaning that theyâ&#x20AC;&#x2122;re heavy in proportion to the energy output. They also have a low cycle life and a long charging time.

There are a number of different types of Li-ion batteries that differ mainly in the type of metal oxide used on the positive terminal. The most commonly used

A lithium-ion battery is practically maintenance-free and does not need a deliberate full discharge to keep it in a good condition A single cell voltage as high as 3,6 V means that it can power small devices without the need for multi-cell designs.

Nickel-metal-hydride batteries have been used on electric and hybrid cars, but are now being phased out because the Li-ion batteries are superior. Lithium-ion batteries offer a good cycle life, but many applications would like an even longer life. Experimental Li-ion phosphate batteries have been produced with cycle lives approaching 7Â 000 charge cycles and lifetimes of at least ten years, while experimental Li-ion manganese batteries are expected to last 40 years.

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

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37


LABOUR

Procedural Fairness

In order for the dismissal of an employee to be fair, both substantive and procedural fairness are essential.

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aving done a proper investigation and having gathered all the facts of a particular matter will consequently install confidence in a disciplinary matter and should guarantee an automatic fair dismissal – fair in most circumstances. In addition, for a dismissal to be fair, an employer is required to consider, understand and follow all procedural aspects pertaining to the relevant disciplinary process. In other words, it is not sufficient to prove substantive fairness on its own in order for a dismissal to be fair. In circumstances where a fair procedure was not followed, the outcome of such a finding would most likely lead to an arbitration award with compensation to the erstwhile employee due to the lack of procedure followed. The manner in

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which proceedings are initiated against an employee is equally as important as the facts and merits utilised by the employer during such proceedings. The employer is required to ensure that a proper, thorough and extensive investigation is conducted in regard any of the allegations made against the employee or any misconduct of the employee. Once the employer is satisfied that the investigation is concluded and that merits exist in conducting a disciplinary hearing for the employee, the employer needs to follow proper procedure. Schedule 8: Code of Good Practice: Dismissal (“the Schedule”) provides for,

among other things, fair procedure and sets out the procedure the employer should follow. Section 4 reads as follows: 4. Fair procedure.— (1) Normally, the employer should conduct an investigation to determine whether there are grounds for dismissal. This does not need to be a formal enquiry. The employer should notify the employee of the allegations using a form and language that the employee can reasonably understand. The employee should be allowed the opportunity to state a case in response to the allegations. The employee should be entitled to a reasonable time to prepare the response and to the assistance of a

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trade union representative or fellow employee. After the enquiry, the employer should communicate the decision taken, and preferably furnish the employee with written notification of that decision. (2) Discipline against a trade union representative or an employee who is an office-bearer or official of a trade union should not be instituted without first informing and consulting the trade union. (3) If the employee is dismissed, the employee should be given the reason for dismissal and reminded of any rights to refer the matter to a council with jurisdiction or to the Commission or to any dispute resolution procedures established in terms of a collective agreement. (4) In exceptional circumstances, if the employer cannot reasonably be expected to comply with these guidelines, the employer may dispense with predismissal procedures.â&#x20AC;? As indicated, a proper investigation is the essential initial step in the process of ensuring fairness. The employee should be notified of the charges against him/ her, in a language that the employee understands. If the employer is aware that a specific employee is not well versed in a specific language, it is advisable to obtain the services of an interpreter to interpret what is being discussed during a hearing (or any other part of the disciplinary process) in the home language of the employee. If this is required at that stage, the employee will most probably be reliant on an interpreter at the disciplinary hearing. The employer should be confident that it has no doubt that the employee understands exactly what allegations have been raised against him/her. It remains advisable that the employee signs a notice of a disciplinary hearing

after the contents have been explained. If an employee refuses to sign, the recommended action for an employer is to obtain the signature of a witness who has been present at the time when the notice of the disciplinary hearing was handed to the employee and that all charges raised against the employee, including any rights an employee is afforded, were explained. These steps are crucial in proving that a fair procedure was followed. The employee should be afforded a reasonable time to prepare for a disciplinary hearing. Although no exact time frame is set out, past practices are indicative that 48hours (work days) will be a sufficient time for preparation due to the fact that it will enable the employee to consult with whomever he/ she deems necessary, whether it is an attorney or a union representative. Whenever action against a union office bearer or representative is contemplated, such action should not be initiated before the union has been notified and consulted. At the hearing, the employee should be afforded the opportunity to state his or her case in response to the allegations made in the presence of an unbiased chairperson. It is important that the audi alteram partem rule is adhered to at all times. The employee should be made aware of the right to call any witnesses and also be able to cross examine any of the witnesses. The employee will also be in a position to bring or produce any evidence during the hearing that will aid his/her case.

If the employer is successful in proving its case against the employee on a balance of probabilities, the employee will need to be notified of the outcome of such a hearing. According to the guidelines in the Schedule, it is advantageous that the outcome is reduced to writing in circumstances where it will assist the employer in proving at any council or the CCMA that fair procedure was followed. When the employee is notified of the outcome of the hearing, it is important that the employee is reminded about his or her right to refer the matter to the applicable forum, be it the Commission for Conciliation Mediation and Arbitration or any relevant Council. In the event that there is a collective agreement in place regulating dispute resolution procedures, the relevant provisions therein should be indicated to the employee. Only in exceptional circumstances, where it cannot reasonably be expected of the employer to adhere to the guidelines as set out in the Schedule, the employer will be in a position to dispose of any pre-dismissal procedures. Employers are urged to take extra care and effort in following the correct procedure to ensure compliance with the guidelines with the aim of avoiding any adverse consequences following unfair procedure. Members are advised to make use of the industrial relations services of the RMI, which are available at all of the RMIâ&#x20AC;&#x2122;s Regional Offices.

The employee has to be afforded the opportunity to request legal representation and if the employee requests the assistance of an attorney, the attorney will be required to first bring an application for legal representation at the hearing before it is granted. There is no automatic right to representation in this instance.

Douw Breed is a director at Barnard Incorporated Attorneys, Centurion.

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LEGAL EAGLE

Your company, your reputation and Social Media Social media is here to stay. This is evident from the number of everyday users of social media platforms such as Facebook, LinkedIn, Twitter, Instagram and the like.

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ompanies might have noticed an increased social media usage, and a concomitant greater online presence of their representatives, magnifying such an employer’s / companies’ risks, especially from a reputational point of view. It is therefore of utmost importance that companies start to take steps to anticipate and mitigate these risks. A study conducted by Deloitte in 2014 cited a company’s reputation as the number one risk area, with social technologies as one of the main factors driving rising concerns about reputation. The immediacy of social media makes it even more powerful. With the click of a “post” option, reputational damages, claims for damages, harassment, defamation or discrimination and loss of intellectual property are just some of the risks modern-age South African companies may be faced with.

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Every employee of a company is a brand ambassador of the company as their affiliation with the company can be displayed on numerous social media platforms. A modern-day company’s brand is not confined to one or two marketers or public relations employees of the company anymore. The general public and most company representatives will rely on their constitutional rights such as the right to privacy or freedom of expression when confronted by the company about an unsavoury post made on his or her private social media account. The dilemma with social media is that there is no turning back – once the “post” option has been clicked, it is done. One can try to remedy a situation by altering or deleting a post, but one cannot guarantee that the original post has not already been shared, or saved by any other social media user, thus making

it virtually impossible (at this stage) to permanently delete any unsavoury posts. Currently there is no legislation in South Africa dealing specifically with social media. Companies must look at other statutes such as the Constitution, employment law, consumer protection law, intellectual property law and the common law to determine social media law and policies in the workplace. One can also consider social media policies implemented successfully by other countries. Even though social media claims are quite new to South African Courts, recent judgments by Courts made it clear that they will not tolerate the use of social media by individuals as platforms to vent about their views on, amongst other, companies. The right to privacy and the right to freedom of expression are both rights granted to each individual in our

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Constitution. However, the Constitution also has its own limitation clause. The exercise of every right (except the right to life) must be balanced against various factors including human dignity, equality and freedom. Companies and individuals cannot post freely on social media and thereafter hide behind the right to privacy or the right to freedom of expression if their post may infringe another’s dignity. In the all-important case of Le Roux and Others v Dey it was stated that “…the right to freedom of expression cannot be said automatically to trump the right to human dignity. The right to dignity is at least as worthy of protection as the right to freedom of expression… what is clear though and must be stated is that freedom of expression does not enjoy superior status in our law.”

Together with a qualified social media law practitioner, modern day companies should therefore invest in and implement the following: • A clear and concise social media policy; • A social media audit to ensure that when a company representative leaves the employ of the company, all ties between the company and the ex-company representative are broken; • Provide continued training and educate company representatives on the company’s social media policy; • Develop a social media strategy for the company as a whole; • Provide continued training to company representatives on the responsible use of social media with reference to applicable consumer protection law, employment law, advertising standards, privacy and data protection, rules and parameters of social media platforms, as well as copyright and trade mark law; • Ensure all social media policies and/or manuals are at all times easily accessible to all company representatives; • Refer to the company’s values and the need of company representatives to uphold the values of the company and the Constitution, with specific mention to equality. Immediate dismissal on any discrimination based on racism on any platform including social media, should be stipulated clearly; • Manage enforcement mechanisms; • Crisis management plan.

The right to privacy (which includes the right not to have the privacy of communications infringed upon) is also not absolute. In the fairly recent case of Gaertner and Others v Minister of Finance and Others the Constitutional Court explained that, when an individual moves into communal relations and activities such as business and social interactions, the scope of personal space shrinks. Company representatives cannot therefore hide behind their right to privacy when posting on social media platforms. It is advised that any communication to be made publicly by a company, should be scrutinized, thoroughly examined and dissected before it is published on behalf of the company.

This article was written by Natasha Truyens, an Associate Attorney at Barnard Incorporated Attorneys in Centurion, Pretoria. RMI4Law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4Law, call 0861 668 677. 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

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RMI UPDATE

Interesting Motor Industry insights from NADA DSI Awards The 23rd Annual NADA Dealer Satisfaction Index (DSI) awards evening took place recently in Gauteng. Senior management from manufacturers and importers, dealer principals and management from dealer groups, as well as financial institutions, gathered at WesBank’s head office, to network as well as receive their awards.

“T

he DSI survey forms a vital link in the relationship between dealers and manufacturers. This year’s survey showed a high completion percentage rate of over 80% in the passenger vehicle section,” said Mark Dommisse, National Chairperson of NADA, in addressing the prestigious group. “We also had one of the highest completion ratios in DSI history this year, which is extremely encouraging.”

and manufacturers as an effective management tool to address areas of concern and thereby improve service delivery throughout the entire value chain to the ultimate benefit of the consumer.

“The DSI survey provides the dealer body with a platform to provide robust feedback to manufacturers and importers. In most cases, the findings are used to benefit the working relationship for both parties,” continued Dommisse in his address.

Dommisse addressed the very real economic factors facing the industry. “Political uncertainty has had a major effect on investment appetites, as well as consumer spending on large ticket items,” said Dommisse. “While consumer confidence is relatively high, the rest of the underlying metrics like household debt, inflation, fuel, and increased consumer taxes are putting our businesses under pressure. Apart from a very slow economy that hasn’t quite manifested in the Ramaphoria everyone had hoped for, the retail motor industry is facing frightening pressures.

Over the years, the results of the survey have been used by dealer councils

“We need to embrace the ever-growing presence of digital disruptors in our

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game. They are competitors to the traditional dealer model, used car supply and our F&I departments, and we are being challenged. We need to evolve and continue to align with this new generation of customer,” continued Dommisse. The speakers shared a number of thought-provoking insights of the retail automotive industry. Additionally, all three speakers shared similar thoughts on the “disruptors” the industry faces. Paul de Vantier, Managing Director, Lightstone Consumer, noted that when it comes to online marketing and dealing, this industry has seen a growing number of people who will transact the whole deal online, from start to finish, with the dealer simply being a delivery and service point. This isn’t something that’s coming, he said, it’s something that’s already happening. And he is convinced that this trend will grow.

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Mark Dommisse, National Chairperson NADA and Ghana Msibi, Executive Head WesBank

De Vantier also made note of South Africa’s ageing car parc. In 2015 it was 9.6 years, but now it has aged to 9.9 years. He attributes this to rising vehicle prices, affordability and general consumer confidence. “Consumers either can’t afford to replace their vehicles, or lack the confidence to commit to long-term financing deals,” stated De Vantier. Ghana Msibi, the Executive Head of Sales and Marketing at WesBank, shared his views on the significant changes that are happening in the motor industry. The main emerging trends that Msibi highlighted are electric vehicles, connected cars, mobility as a service and autonomous vehicles. “We cannot ignore the largest disruptor out there – the new generation of customers,” said Msibi. “As an industry, we can’t continue to offer them solutions on the same basis as we’ve done before.

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“Our traditional approach has given us a superior footing in the industry, but if we don’t meet them halfway, they will ultimately find alternatives that suit them.” Msibi further commented that the existing strength of industry players provides a powerful platform to offer services to the new generation of customers. NADA which represents franchised passenger and commercial vehicle dealers in South Africa, engages the services of Lightstone Consumer to conduct the survey annually. Views of franchised dealers about their on-going relationship with their respective manufacturers or importer are expressed in the survey. The results show the general health of the dealer/manufacturer relationship, indicate potential difficulties, and highlight where there are strong and constructive working relationships.

Gary McCraw, Director NADA

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RMI UPDATE

Partinform visits Cars in the Park The 39th annual Cars in the Park, was recently held at the Zwartkops Raceway, West of Pretoria, and Partinform used this opportunity to engage with the motoring public. Cars in the Park is the biggest event of this nature in the country, as more than 2500 vintage and classic cars, built before 1985, are displayed by more than 100 car clubs and a number of private individuals.   The vehicles on display range from vintage cars to muscle cars, and includes a fair amount of unique, purpose-built vehicles, and a number of the latest sports cars.   Partinform, in collaboration with the RMI, was there to interact with vehicle enthusiasts and the motoring public – and to showcase the latest aftermarket components, equipment and tools, with members including GUD Filters, Bosch, EXIDE and Jonnesway, to mention a few, making the most of this unique opportunity.   Brand exposure at a consumer show like the Cars in the Park is extremely important as this provides the opportunity to speak directly to the consumer and allows consumers to interact with the various brands and have discussions regarding the various products with expert representatives.    Cars in the Park and the Partinform exhibition in one of the sheds that make up the pit complex was extremely well attended, and allowed for the member brands to gain direct exposure, unlike what they normally would.

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Ms Lebogang Letsoalo is a Supply Chain coach and currently a Director of Sincpoint, an organisation focused on sustainable supply chain coaching and optimisation solutions. The new merSETA Chair has 18 years experience in different facets of the supply chain fraternity, including in the energy, chemicals and mining industries. She is a former Vice-President of Supply Chain in Sasol and has held executive roles in projects development, capital procurement and other roles in Eskom, DeBeers, Fluor and IBM. In 2008, Ms Letsoalo was profiled and cited in the Financial Mail as one of the top 10 most inspiring women in State-Owned Entities. She has also been nominated for the Global Business Leadership Award - International Conference on Gender & Sustainability - New York 2017. Among her qualifications are a Diploma - Purchasing; Btech Logistics; and a Masters of Business Administration. She is currently enrolled for doctoral studies. She is a Director at Black Industrialist Group (BIG) and also the Founder and Chairperson of African Women in Supply Chain Association (AWISCA), the first and only association in southern Africa focusing on functional mentorship and coaching in supply chain to build skills and capacity in the sector. She is a member of the Advisory Committee of Universities to ensure alignment between industry requirements and Supply Chain curricula offered by universities. Ms Letsoalo provides supervision for MBA and MBL students at UNISA

The merSETA welcomes its new chairperson, Ms Lebogang Letsoalo WE CARE

It’s about caring for people we render services to

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WE BELONG

It’s about working together with colleagues

merSETA Social

WE SERVE

It’s about going beyond the call of duty

@mersetasocial

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RMI UPDATE

Robin Naidoo: Consumer Affairs Officer; Prinola Govender: MIWA Representative KZN; Erwin Stroebel: General Manager Coastal Region

Erwin Stroebel: General Manager Coastal Region

RMI roadshows visit coastal regions The RMI recently held successful roadshows in the Eastern Cape and KwaZulu-Natal. The second leg of the roadshow started in Durban on the 11th of July with 31 people attending from 14 businesses, and moving from there to Empangeni on the 12th of July with 30 people attending from 18 businesses.

T

he roadshow started in the Southern Cape (George) on the 19th of June with 45 people attending from 29 businesses in the area. The roadshow then moved to East London on the 20th of June with 54 people attending from 25 businesses, this was followed by another well-attended roadshow in Queenstown on the 21st of June with 33 members attending from 17 businesses. The roadshow culminated on a high in Mthatha on the 22nd of June with 21 attendees from nine businesses.

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The topics that were discussed are relevant to business in the current South African economy, with the RMI Chief Operations Officer, Jan Schoeman, kicking off the first round of the roadshows in the Eastern and Southern Cape, and the RMI Chief Executive Officer, Jakkie Olivier, leading the second leg of the Road Shows in KZN with a brief overview of the RMIâ&#x20AC;&#x2122;s financial performance. The RMI has been active in the monitoring of consumer dispute resolution by means of adjudication, through the Office of the Motor Industry Ombudsman (MIOSA) - at all levels; as a consequence of which the RMI Board has resolved to interrogate aspects associated with the calculation of levies payable to MIOSA, service delivery as well as aspects relating to governance. This interrogation

will come in the form of a legal challenge in terms of the Promotion of Access to Justice Act with the primary focus on the restoration of what the RMI considers compliance by the MIOSA with the South African Automotive Industry Code as well as broad governance principles. The RMI continues to support the concept of an Ombudsman for the Automotive value chain, provided that it functions optimally and within the confines of law. The RMI plays an active role in mediating consumer complaints inhouse against accredited RMI Members, which is enforced by the RMI Code of Conduct. The process has fair success and the RMI prides itself in what the blue, red and yellow logo stands for, namely a guarantee of quality. The RMI had realised the importance of public relations and branding. It secured the services of an expert in this field to increase the RMIâ&#x20AC;&#x2122;s visibility and credibility among the media, public, motorists and RMI members. Next up the RMI National Training Director, Louis Van Huyssteen, ensured that

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RMI Chief Executive Officer, Jakkie Olivier, leading the second leg of the Road Shows in KZN

Johan Coetzee, BEEDynamix / RMI4BEE

Kreesan Naidoo, Rand Mutual Assurance

in the Motor Industry. Johan Coetzee and Wikus Schutte have extensive knowledge and understanding of the motor and related industries. They have successfully assisted countless businesses in the Motor Industry with their BEE-compliance. Next up, the RMA (Rand Mutual Assurance), discussed their function as the administrators of occupational injuries and diseases for the Motor Industry. Louis van Huyssteen: National Director Training; Johan Coetzee, BEEDynamix / RMI4BEE; Julian Pillay: Manager â&#x20AC;&#x201C; Regulatory Compliance & Associational Director of NTA; Erwin Stroebel: General Manager Coastal Region and Jakkie Olivier: CEO

employers understood the benefits of training staff through accredited training providers. Van Huyssteen highlighted the potential return on investment for businesses which chose to train, as most employers do not realise the value. This was demonstrated with the (ROI) Return on Investment Calculator that was developed in conjunction with Merseta. The Calculator shows workshop ratios between utilisation, productivity and efficiency, explaining the break-even point in a simplistic three-way calculation.

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This very useful Automotive Apprentice ROI Calculator is available for free on the Merseta website: www.merseta.org.za. We were also privileged to have BEE Dynamics present. They are one of the RMIâ&#x20AC;&#x2122;s Joint Venture partners that assist businesses with BEE Compliance in South Africa. They have been assisting the Motor Industry since 2003 and have a long and good relationship with businesses

They explained the process to follow when a claim is logged, and also the benefits associated with such claims for both disablement and in the unfortunate instance when it leads to a fatality. In attendance was the RMA Stakeholder Liaison Officers for the Eastern Cape, Nondumiso Mnguni, and the KZN Stakeholder Liaison Officer, Kreesan Naidoo, presenting benefits, and fielding any questions pertaining to injury on duty. The roadshows were an enormous success, with the RMI being complimented for bringing relevant benefits to members experiencing challenging trading conditions.

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Driven by RELIABILITY

Innovative technology for best possible visibility: Commercial vehicle wipers www.bosch.co.za

48 - JULY 2018

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BUSINESS MANAGEMENT

Installments, Balloons and GFVs, choosing the best financing option

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esBank has taken three of the most common purchase plans and simplified the jargon to help buyers choose the best payment plan for them. “The temptation of a new car can sometimes lure a buyer into a commitment that isn’t an ideal fit for their budget,” says Ghana Msibi, WesBank’s Executive Head for Sales and Marketing. “Fortunately, there are flexible finance options for buyers to choose from. WesBank wants to ensure that all consumers fully understand what’s available so they can make smarter, more responsible decisions on their car-buying journey.”

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1. Instalment finance This is the most straightforward of all vehicle finance options. Monthly repayments are calculated on the purchase price of a vehicle minus whatever deposit is put down at the start of the deal. Finance terms can be structured into time frames of between 12 and 72 months. The longer the term, the lower the monthly repayment will be, but be aware that interest will add up over longer terms and the total amount repaid to the bank will increase proportionally. 2. Instalment finance with a balloon payment Similar to instalment finance, except a

portion of the purchase price is set aside so that the repayments are calculated on a lower amount. Simply put, balloon payments are similar to deposits except they’re payable at the end of a term instead of at the beginning. Buyers must be cautious of the amount put into a balloon because they will be responsible for the lump sum once the finance term is finished. While it may be attractive to have lower monthly repayments because a larger chunk of the purchase price is placed into a balloon, the repayment of a balloon can be an unexpected debt, as this amount will either need to be settled or refinanced at the end of the deal.

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BUSINESS MANAGEMENT

3. Guaranteed future value Guaranteed future value, also known as GFV or any number of brand-specific titles, is becoming an increasingly popular form of vehicle finance in South Africa. It is important to note that a vehicle’s value begins depreciating (losing monetary value) from the moment it leaves the showroom floor. In line with this depreciation, a GFV plan calculates what the future monetary value of a vehicle will be if specific conditions of vehicle condition, mileage and maintenance are met. This future value is guaranteed at the start of the agreement.

With a GFV plan, a consumer is essentially only paying for the use of the car. This is why it’s important to know more or less the distance the vehicle will cover during the GFV term. Consumers are liable for penalties if any conditions of the GFV agreement aren’t met. WesBank offers a handy Purchase Price Calculator to help determine the loan amount your budget will support. While this calculator is only used for estimation purposes, it’s a good indicator of the price range in which you can shop. There’s

also a Vehicle Finance Calculator to help work out monthly repayments based on term length, deposit, balloon amount and interest rate. Every WesBank-approved car dealership has a Finance and Insurance (F&I) executive to inform and assist consumers in their buying journey. The F&I can give you financially sound advice and explain what you can and cannot afford, because their role is regulated by the Financial Advisory and Intermediary Services (FAIS) Act as well as the National Credit Act (NCA).

This makes planning ahead easier as consumers know exactly what their car will be worth once the pre-determined contract term (usually between three and four years) is reached. The customer is given three choices at this point – they can either enter into another GFV deal and drive away in new vehicle; settle the outstanding amount and own the vehicle, or simply return the vehicle to the respective dealership and walk away (provided the driver didn’t exceed the allotted mileage and the vehicle is in acceptable condition).

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Celebrating a successful year

INDUSTRY NEWS

Things are looking up, says the merSETA CEO Dr Raymond Patel

I

t is a success story, despite South Africa being battered by the chilly winds of economic depression. All around us, de-industrialisation, the countryâ&#x20AC;&#x2122;s mounting debt and rife unemployment are witnesses to this winter of economic downturn. Considering the political and economic changes that have transpired, especially in the last quarter, the 2017/18 financial year was indeed eventful. The last quarter saw the ruling party elect Cyril Ramaphosa, which gave rise to wide optimism and heralded a rise in consumer confidence and relief towards credit downgrades risks.

With this renewed hope in the fiscus 201807FREE.FH11 Fri Jun 22 15:38:13 2018 Page 1 and an additional 81 000 jobs reported

in the formal sector for the third quarter of 2017 (QES, StatsSA), the merSETA continued to support the economy through robust efforts in mediating skills needed by the manufacturing and engineering sectors, so that these sectors can take pride of place as they have previously. The past financial year has steered the merSETA to the realisation that tailored approaches are needed not only by the sub-sectors, but also the by enterprise segments which we serve, defined by both size and region. The merSETA has continued to put in place interventions ensuring the training of the unemployed and youth through skills programmes, bursaries, learnerships and apprenticeships. In addition, the merSETA implemented another successful Black Females Leadership Development Programme to empower fledgling female leaders in the sector. C

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The merSETA also promoted workintegrated learning in response to increasing the employability of TVET graduates through the NCV to artisan project. A total of 4 057 companies were successfully approved for mandatory grants, compared with 4 005 previously. This resulted in a claims ratio of 74.2% for the year under review compared with 73.7% in the previous year. The year saw the focus squarely on mediations to enhance the agility of our skilled force in the face of the unrelenting march of Industry 4.0 with its focus on artificial intelligence, robust automation, and technological proficiency. At this stage, our impact is not yet clear, but the past financial year has clearly been a success.

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SEPTEMBER 2018 53    


WORKSHOP

Diagnostic Solutions from Bosch To succeed in today’s aftermarket, the service specialist must meet the sophisticated requirements of advanced technologies and deliver a quality of service that satisfies the most demanding customers.

T

he scope and quality of these services are ultimately dependent upon the skills and ability of the workshop technician, who is responsible for the application of information, skill and equipment to diagnose and resolve problems. The key to this process being achieved effectively is the underpinning knowledge that has been acquired from training. Therefore, Bosch technical training is as essential to the technician’s role as is technical information or even workshop equipment. As a major supplier of complete vehicle systems technology, Bosch can now look back over more than a hundred years of experience. Bosch innovations have set standards worldwide. As one of the leading suppliers of quality equipment for motor vehicles, Bosch works closely with the automotive industry in vehicle development. Bosch products, therefore, represent the state-of-the-art in vehicle technology. With its

54 - SEPTEMBER 2018

comprehensive expertise, Bosch is also a competent service provider of vehicle systems training. Time is money, particularly in connection with the provision of services. Troubleshooting and subsequent repair work must, therefore, be tackled with competence. Using a systematic approach in troubleshooting, the participants learn to narrow down the causes of a problem step by step and thus gain reliability and efficiency in each individual working step. The time and cost frame of a repair can, therefore, be determined with much greater accuracy, which is a decisive factor for the competitiveness of a vehicle workshop. A comprehensive range of training equipment is available for practical instruction. This ranges from current vehicle models to working engines to a wide range of test equipment. New technologies, more sophisticated service requirements, and an increasingly demanding market, indicate a need for experts who are able to approach their tasks professionally and with

confidence to secure improved business for the future. Bosch technologies are used worldwide in almost all vehicles. People, and assuring their mobility, is what they are focused on. Therefore, they have dedicated the last 125 years of pioneering spirit and expertise in research and manufacturing to achieving this. They continue to work on our unique combination of solutions for spare parts, diagnostic devices, workshop equipment and services: • Solutions for efficient vehicle repairs • Innovative workshop equipment and software • The world’s most comprehensive range of new and replacement parts • Large network of wholesale customers, for quick and reliable parts supply • Competent hotline support • Comprehensive educational and training offers • Targeted sales and marketing support For more information, visit, www.bosch.co.za

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WORKSHOP

What to start with when starting a business Setting up a new workshop can be a daunting process. Dewald Ranft, Chairman of the Motor Industry Workshop Association (MIWA), an affiliate association of the RMI, offers the following advice.

Starting a workshop As with any start-up business you need to have a business plan in place which outlines exactly what kind of business you will be running, how it will be financed and insured, and what is required to get started in terms of staff and equipment. Do your homework when it comes to location. Check what is currently available in the area where you are considering setting up your workshop. While competition is good, you donâ&#x20AC;&#x2122;t want to

56 SEPTEMBER 2018

start in an area that is saturated with workshops. Looking around may also help you decide whether it makes sense to buy an existing business or start from scratch. Rely on your experience and contacts. When starting out it makes sense to play to your strengths. Start with work you feel comfortable with, whether that be specialising or doing general repairs. You can always expand as business picks up. Speak to your contacts, ask for referrals, and negotiate good prices for parts, etc.

Starting a business is a big investment. Make sure you are properly insured. Remember to factor this in when drawing up budgets. Join an association in the RMI. MIWA members, for example, enjoy many benefits, some of which include dispute resolution, info on the latest advancements, access to training relating to human resources, skills and more. It also offers a network of workshops that are selling equipment second-hand, which may just be what you need to get started.

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It’s important that all staff understand and respect the cost implications of wastage. If you want to run an efficient and profitable business, you need to keep wastage to a minimum. Investing in your staff and their development is also key. Many successful workshops treat all staff like family. Keep your administration and finances in order. If this is not your strength as a business owner, then make sure you hire the right person to keep all the numbers in order. Remember ‘Look after the pennys and the pounds will look after themselves’ Things to take into consideration The setup cost for a small workshop, including branding, customer seating, etc., comes to about R250 000. For a bigger setup it amounts to closer to R 1 millon, and that’s excluding the building. But the biggest cost is the cost to keep it running in the first year, while you don’t have many customers yet and are not making a profit. Budget having a neutral cash flow after 12 months. That means half a year’s cost is gone. In the calculation you have to include your own salary (even if you are not paying yourself yet), other staff expenses, rent, electricity, insurance, etc . What is required to run an efficient and profitable workshop An involved owner is very important, as are reliable, skilled, and dedicated staff. Going the extra mile for your customers may seem clichéd, but makes all the difference in this industry. Word of mouth is definitely the biggest marketing tool, and customers will refer you to friends and family when they have had a good experience, trust has been built, and the cost is fair.

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If you give a good customer service the customer will be back, but probably in 6-12 months. That’s why it takes a lot longer to make a workshop profitable than, for instance, a coffee shop where a happy customer might return the next day. Most owners fail because finance and admin are not managed correctly, not because they are missing technical expertise. Theft, wastage, customers that

don’t pay or don’t collect cars are the biggest challenges when starting out. Another common reason for failure is because contracts (rental, insurance, etc.) are signed without being properly understood or checked. Unfortunately, in South Africa there is no protection for small businesses, like the CPA for consumers. When you have signed a contract you are bound by it. It doesn’t matter if you have read or understood what you have signed. Don’t be afraid of competition. Work with your colleagues and you can learn a lot from them.

Essential start-up garage items Ranft offers this list of essential start-up equipment and items for a workshop: • Air compressor • Two-post lift • Diagnostic equipment – the bottom of the range is fine when you are starting out. You can always buy more sophisticated equipment as you go along. • Invoicing system or workshop management system • Occupational Health and Safety requirements – this will include the necessary signage and demarcations in the workshop. • A decent reception area, so budget for some chairs and a counter or table • In terms of tools, the standard requirements (toolbox) that a mechanic would need will be fine initially. • HaynesPro software data package – this product contains all the essential information any workshop needs to complete repairs. MIWA has secured a deal with HaynesPro for members, making it affordable for a start-up business.

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WORKSHOP

Using a compressor in the workshop environment A quality air compressor is an essential tool for any workshop, with applications far beyond simply inflating tyres.

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t its core, an air compressor is a power tool that creates and focuses pressurized air, which can in turn be used to power a variety of tools – from sanders to grinders and chisels, awls, pumps, and shears. Selecting the right compressor for your business depends on the application, according to Probe Group CEO Frank Rovelli. “While a model like the Stanley Fatmax Futura is an excellent entry-level compressor, something like the Fatmax direct driven lubricate twin ‘v’ cylinder compressor is a better, more rugged option. The ‘v’ is a heavy-duty compressor that comes with an aluminium pump and cast-iron cylinder for large air reserve and high performance motor, offering incredible power and low noise output, in a compact size – perfect for operating pneumatic tools.” Another critical aspect to consider, says Rovelli, is the pumping unit of the compressor. “This is the heart of the compressor, so its performance and efficiency over time must be faultless. The Fini compressors have state-of-the art pump technology that has been developed using innovative materials at a low friction coefficient and great resistance to usage.” With such versatility offered by powerful compressors, we decided to investigate the different ways in which the right machine can offer everyday time and costs savings in the farming environment.

58 - SEPTEMBER 2018

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1. Inflating vehicle tyres Ensuring that the tyres on all your vehicles are inflated to the correct pressure has benefits in terms of operational efficiency, ability and turnaround times. Tyres are an underappreciated maintenance element, with many only considering their importance in the event of a puncture or failure – which is much more quickly rectified when there’s a compressor close at hand. 2. Powering pneumatic tools An air compressor can power a variety of tools, including pneumatic nail guns staplers, drills and even grinders – if it is able to provide enough pressure. 3. Painting Spray guns allow for more even coating, savings in paint quantities and deliver far superior finishes to more traditional, manual method. A good compressor that provides a steady flow of air at the right pressure is just as important to the spraying process as the spray gun itself.

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4. Cleaning The cleaning possibilities of an air compressor are endless, and range from keeping equipment and large areas clean of dust and debris. They are also useful to get dirt out of hard-to-reach areas and sensitive components like electronics. Always remember to use compressed air in a well-ventilated space and to wear protective goggles and clothing Water pumps Innovative products like the Brumby Pump use compressed air to raise water to the surface level, a process known as the ‘air lift method’. It harnesses the principle that air is lighter than water and uses air pressure to push the water up to the surface. This process really comes into its own in areas where electricallydriven pumps can fail during power failures or during major storms, as the compressor can be run on a generator. Wind energy storage Renewable energy – particularly wind energy – can no longer be ignored as

a source of power for far-flung farms in rural areas, never mind developing cities. Wind energy is clean, efficient and, once the equipment is put into place, free. Reliance on wind can be a challenge for critical systems, though, as it obviously doesn’t blow all the time, making air compressors an alternative method of producing the required air movement. In Iowa, the municipal utility is experimenting with a wind-powered air compressor battery that stores energy from the wind in underground compressed air tanks. Wind turbines running during offpeak energy times pump compressed air into underground tanks. Once stored there, it can be released to power the turbine during peak times. There are criticisms of the system, but it is a promising area of research which has potentially great benefits for providing clean, renewable energy. Heavy Duty Stanley Fatmax, Fini and SCC air compressors are distributed by Probe Group in South Africa. Find out more at www.probegroup.co.za.

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RMI UPDATE

FAQs

Answers by experts to questions received recently by the RMI

Q: A laptop disappeared from the Finance Department at the workplace. As a result of this and due to there being no eye-witnesses of the alleged theft, the company requested that all the employees in the Finance Department undergo a polygraph test. It is stipulated in the contract of employment of each employee that he or she must undergo a polygraph test when there are grounds for suspicion, and the refusal of an employee to subject him or herself to the test can lead to disciplinary action against the employee. Consequently, these employees all agreed to the polygraph test. Upon conclusion of the polygraph tests, it transpired that X was the only employee who failed the test and as a result of this, the company charged X with theft. In order to establish guilt in the disciplinary hearing, the company relied solely on the polygraph test results. The chairperson found X guilty and recommended a dismissal. Subsequent to the chairperson’s recommendation, the

company terminated X’s employment. Was the dismissal fair? Are polygraph test results admissible in order to establish guilt? A: In Amalgamated Pharmaceuticals Ltd vs. Grobler NO and Others (D 1719/02) [2004] ZALC 5, the Labour Court agreed with a CCMA Commissioner who found that in practice, the results of polygraph tests do not serve to prove that a person is lying, as “the questions are often too broad to exclude that which is neither intended nor sought”, and that they do not prove that someone is guilty. Despite there being divergent views in our law on the admissibility of the results of polygraph testing, the Labour Court in Truworths Ltd vs. CCMA (2009) 30 ILJ 677 (LC) accepted that the results of a properly conducted polygraph test may be used as corroborating evidence and may be taken into account as a factor in assessing the credibility of witnesses and

the probabilities of versions presented to the court. This approach has been subsequently confirmed by the Labour Appeal Court.   This means that the onus placed on an employer to prove the fairness of a dismissal in terms of section 192 of the LRA is not discharged by the sole reliance on the results of a polygraph test.   It follows that: • X’s dismissal was unfair. • The polygraph test results cannot prove X’s guilt without corroborating evidence, as they alone are not conclusive proof of misconduct; • The company cannot dismiss X due to his failing the polygraph test, unless they are able to find other incriminating evidence; • The test results are inadmissible unless supported by expert evidence on how they were done and on their reliability, i.e. the person who conducted the test gives evidence to this end.

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SEPTEMBER 2018

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WORKSHOP

TROUBLESHOOTING MADE EASY Autodata, a leading provider of automotive technical information, shares OEM verified solutions to common problems found in modern motor vehicles. To learn more about Autodata’s innovative online workshop application visit www.autodata-group.com AUDI A4: RATTLING NOISE FROM UNDERSIDE OF VEHICLE Problem: A customer’s 2010 Audi A4 2,0 TDI has a rattling noise from the underside of the vehicle when driving. We have heard the noise during on-road testing but have yet to find the cause. We have visually checked the underside of the vehicle but have found no faults. Solution: We are aware of a rattling noise that affects the A4 (8K2/8K5) model up to 06/14. The cause is vibration of the centre exhaust silencer’s heat shield on the car’s floor pan. Remove the centre exhaust silencer heat shield. Thoroughly clean the area indicated on the floor pan (fig1). Using bonding material, available from Audi’s parts department, apply a 5mm bead of bonding material covering an area of 40mm x 40mm to the location indicated on the floor pan (fig1). Refit the centre exhaust silencer heat shield. Fix centre exhaust silencer heat shield to bonding material. Carry out road test to ensure fault has been rectified.

VW TIGUAN: CRACKING NOISE FROM CLUTCH PEDAL Problem: We are experiencing a problem with a 2011 Volkswagen Tiguan. The customer has complained of a cracking noise when the clutch pedal is depressed or released. We can hear the noise when operating the clutch, but cannot find the source of the fault. Have you encountered this problem before? Solution: The cracking noise to which you refer is caused by movement between the Tiguan’s clutch master cylinder pushrod retaining clip and the clutch pedal. Remove the clutch master cylinder pushrod retaining clip from the clutch pedal and discard. A clutch master cylinder pushrod retaining clip and felt strips are available from the Volkswagen parts department and are required to rectify this fault. Cut two felt strips to 16mm in length. Make an incision approximately half the length of each felt strip. Apply the felt strip to both sides of the new clutch master cylinder pushrod retaining clip as shown (fig1). Fit the clutch master cylinder pushrod retaining clip to the clutch pedal. Operate the clutch pedal to ensure the cracking noise has been rectified.

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MEMBERUPDATE

The RMI welcomes these new businesses into membership A A and M Pump Services A&A Auto Repairs and Panelbeaters AAI Auto Bosch Car Service Centre ACS Auto Worx Auto Centurion Auto Source Autobody Tronix Autosmart Repair Centre B Beard and Gears Bokamosa Auto BP Bonga BT Westrand C Car Service City Constantia Car Service City Sunderland Ridge Care Care Clinic Menlyn Carter Renault CDM Performance Chochi Auto Workshop and Spares Classic Line Trading CN Auto D District Service Centre E Eco Auto Mbombela Erik Motors F Farber Coachworks Express Farber Coachworks Tokai Fleet Horizon Solutions G Global Automotive Solutions GTC Automotive Repairs I Innotec South Africa J Johnnys Midas parts Centre

Kempton Park Durban Midrand Amanzimtoti Centurion Midrand Goodwood Midrand Pinetown Meyerton Cape Town Florida Randburg Centurion Pretoria Johannesburg Durban Bloemfontein Buffelspruit Wellington Durbanville Nelspruit Durban Cape Town Cape Town Pretoria Port Elizabeth Durban Somerset West Strand

K K7T Auto Clinic and Spares Bloemfontein Koketso and Sons Repair Centre Rustenburg M M&T Service Centre Burgersfort Steelpoort M&T Service Centre Middelburg Middelburg Mangelvolstry Auto body repairs Rustenburg Mchunu Repairs Pietermaritzburg Mgova Motors Bronkhorstpruit Mokopane Brake & Clutch Radiator Specialist Mokopane Moloi Panelbeaters Bloemfontein Motorpro Midrand MSH Service & Repairs Goodwood P PMG South Coast Margate Preferred Commercial Repairs Witbank S Sewgamo Auto and Repairs Edenvale Somakhwabe Trading Durban Supa Quick Sunningdale Cape Town Supreme Auto Works Alberton T Transmission Centre Bluff Durban Tyremart Ugie Ugie V Vaal Toyota Sasolburg Vaaltyns Mechanical Workshop Bloemfontein Victor Speedy Dent Remover Pretoria Vukile Auto Pretoria

BENEFITS OF BELONGING With a membership of 8 000, 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 - SEPTEMBER 2018 EDITION CLIENTS Aer O Cure Aftermarket Solutions - Behr hella Aftermarket Solutions - Vortex Audi Parts AutocosmosBiz (Electrolog) AA Technical College AIDC Ferdinand Bilstein South Africa Garage Equipment Services GUD Filters Highveld Garage Equipment Launch Technologies SA Merseta Messe Frankfurt Moto Health Care Robert Bosch Silver Falcon Trading Snap On Africa Trysome Automotive

CONTACT WEBSITE PAGE 011 444 6454 www.aerocure.co.za OBC 011 879 6000 www.aaas.co.za 23 011 879 6000 www.aaas.co.za 37 0860 434 838 www.audi.co.za 10 & 11 012 327 6210 www.autocosmos.co.za 64 011 799 1068 www.aa.coza 7 & 52 012 564 5000 www.aidc.co.za 27 & 65 010 9004545 www.blue-print.com 15 011 402 6277 www.ges.co.za 60 031 910 3111 www.gud.co.za IBC 012 330 0540 www.hge.co.za 55 011 397 3072 www.launchsa.co.za 61 010 219 3000 www.merseta.org.za 45 010 599 6153 www.capeautomotiveforum.co.za 21 0861 000 300 www.motohealthcare.co.za 16 & 17 011 651 9600 www.bosch.co.za 31 & 48 083 628 2288 www.hurricaneauto.co.za 63 031 569 7673 www.snapon.co.za IFC 011 823 5650 www.trysome.co.za 51


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INDUSTRY NEWS

KIA Motors showcases next-generation Separated Sound Zone technology The speed at which automotive technology is advancing means that today’s innovation is tomorrow’s standard, and OEMs can no longer be market leaders just by differentiating on the latest technology trends.

K

IA Motors has revealed its nextgeneration Separated Sound Zone (SSZ) technology that allows each passenger of a vehicle to experience an audio stream tailored to their individual needs, including music, hands-free phone calls, and vehicle alerts, while maintaining a headphone-free social space where passengers can converse freely. SSZ technology creates and controls the acoustic fields of the car, allowing the driver and each passenger to hear isolated sounds. The many speakers installed in the vehicle feature technology that uses scientific principles to reduce or increase audio levels of sound waves. This negates the overlap of sounds being heard in each seat, creating the same effect as current noise cancellation systems, but without the need for headphones.

66 SEPTEMBER 2018

“Customers in the autonomous navigation era will demand increasingly customisable entertainment options within their vehicles, which includes technological innovations such as the Separated Sound System.” says Kangduck Ih, Research Fellow at KIA’s NVH Research Lab. “I hope by providing drivers and passengers with tailored, independent audio spaces, they will experience a more comfortable and entertaining transportation environment.” People’s musical tastes vary, so some passengers choose to use headphones during a journey to isolate their audio stream, but this also creates an unnecessary social barrier when interacting with other passengers. When travelling in a vehicle equipped with next-generation SSZ technology, each passenger can connect their smartphone via Bluetooth and listen to their own

music without interference from, or interfering with other passenger’s audio streams. When the SSZ is utilised, hands-free phone calls can also be isolated to individual passengers, ensuring privacy when having important phone conversations on the move. Furthermore, this ground-breaking technology can eliminate unnecessary sounds for the passenger, but provide them for the driver. Navigation sounds, or various alerts, allow the driver to focus on controlling the vehicle, while the SSZ system isolates these sounds, maintaining a quiet area for the other passengers. This has a particularly strong application for drivers with a sleeping child in the vehicle. SSZ technology has been in development since 2014, and the completed mass-production system is expected to be ready for installation in vehicles within one to two years.

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