Automobil November 2018

NOVEMBER 2018

Starting a fuel station Everything you need to know

ENSURING THE SUSTAINABILITY OF MOTOR BODY REPAIRS by facing industry challenges head on RELAUNCHING THE WORLD ENGINE REMANUFACTURERS' COUNCIL RMI UPDATE: GREEN REAPPOINTED AS NATIONAL DIRECTOR OF SAMBRA;

www.automobil.co.za RMI MOBILE APP ON TRACK; MOTORING DATES TO DIARISE; PARTINFORM VISITS KIMBERLEY

NOVEMBER 2018

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CONTENTS – NOVEMBER 2018 COLUMNS 5 7 9 66

Driver’s Seat: Jakkie Olivier, CEO of the RMI Editor’s Letter: Reuben van Niekerk Hot Stuff! New product showcase Tailpiece UPDATES

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

Design and layout: Heinz Bawa heinz@thefuture.co.za

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Publisher: Richard Lendrum richard@thefuture.co.za

Ensuring sustainability in Motor Body repairs

SAMBRA members are responsible for repairing 80% of all insured repair claims in the country

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Developing or purchasing a Service Station in South Africa

Insights into the requirements and necessary processes for a prospective entrant into the petroleum retailing industry

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Production: Mabel Ramafoko mabel@thefuture.co.za

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

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

A digital version of this magazine is available at www.rmi.org.za Automobil is the official journal of the Retail Motor Industry Organisation (RMI) which hosts 13 constituent associations: ACRA (component remanufacturers); ERA (engine re-builders and automotive engineers); MDA (motorcycle, scooter, quad and jet-ski/outboard engine dealers); MIMA (Motor Industry Manufacturers’ Association); MIWA (the full spectrum of workshop operators); MPEA (wholesale and retail part dealers); NADA (new and used car and truck dealers); VTA (vehicle testing); SADFIA (diesel pumproom operators); SAPRA (Fuel resellers, convenience store and car wash operators); SAMBRA (South African Motor Body Repairer's Association); SAVABA (vehicle body builders) and TDAFA (tyre dealers and fitment centres).

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

Automobil is produced and published monthly by Future Publishing (Pty) Ltd for the Retail Motor Industry Organisation. The views and opinions expressed in the publication are not necessarily those of the publishers or the Retail Motor Industry Organistion.

While precautions have been taken to ensure the accuracy of advice and information contained in editorial and advertisements, neither the publishers nor the Retail Motor Industry Organisation can accept responsibility for errors, misrepresentations or omissions, or for any effect or consequence arising therefrom. Permission to republish any article or image or part thereof must be obtained in writing from the publishers.

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FEATURES

Reporter: Wynter Murdoch wynter@thefuture.co.za

© Future Publishing (Pty) Ltd

Green reappointed as National Director of SAMBRA; RMI Mobile app on track; Motoring dates to diarise; Partinform visits Kimberley

COVER STORY

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

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

12 News 30 RMI Review

Is South Africa getting left behind?

New technology is advancing at a rapid rate but we live in an automotive time-warp here in SA, says David Furlonger

There’s more to lubrication than supplying enough oil

The aim of lubrication is to reduce friction says Jake Venter

Protected disclosures, more commonly referred to whistleblowing in the workplace, is not a new concept. However, it can be extremely debilitating

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What to know about blowing the whistle Contracts: The Link between Cause of Action and Jurisdiction

The prerequisites for a contract to be valid appear to be simple, and the remedies apparent.

The RMI continues to invest in training

Skills Development has been identified as strategic priority of the RMI

With 125 years of experience, Bosch is equipped with in-depth knowledge of the latest technologies that serves as the basis for their support structures.

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Mastering new technologies

Jaguar Land Rover SA’s training programme wins award

The British Department for International Trade (DIT) has presented its annual Board of Trade Award to Jaguar Land Rover South Africa

Empowering workshops with training

In an ever-changing and evolving automotive aftermarket, the emphasis on training has never been stronger

Western Cape Maritime Cluster (WCMC) set to promote maritime skills development Embracing training as a catalyst for Economic Empowerment

Sumitomo rubber offers a range of training options to staff and external stakeholders

Choosing the right skills development partner

Exploring the impact of skills development in business

The relentless march of Industry 4.0 with its Internet of Things, Robotics and automation are crucial elements of the merSETA strategy

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Investment needed to keep up with technology

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BENEFITS OF BELONGING A short summary of the benefits of RMI membership

The RMI has represented the retail motor industry and its members for more than 100 years.

With more than 7 500 member businesses, our unity is our strength.

RMI representation at often volatile and disruptive centralised wage negotiations.

Professional industrial relations advice by expert specialists, ensuring procedural and substantive fairness when disciplining staff.

Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses.

Chairing of disciplinary hearings and AUTOMATIC entry and representation at the CCMA, DRC and Labour Court.

Representation at various MIBCO and Industry-related Boards and committee structures.

Affiliation to reputable organisations recognised by Government, big business, consumers and relevant stakeholders like Business Unity SA (BUSA).

Protection against one-sided legislative changes or new laws and regulations.

Exceptional CPA support and member assistance during defence cases at the National Consumer Commission (NCC) and the Motor Industry Ombudsman of South Africa (MIOSA).

Facilitation of a business-to-business complaint where both parties are RMI members, with a complaint resolution rate in excess of 95%.

Quality and Standards function – representing the retail industry at various South African Bureau of Standards (SABS) committees and working groups.

Representation at the National Regulator for Compulsory Specifications (NRCS), defending our industry when compulsory specifications and standards are compromised.

The informative Automobil magazine and weekly web letters that facilitate two-way communication and create consumer and industry awareness.

The RMI is regularly invited to comment on industry topics by both print and broadcast media, and participates in and hosts numerous conventions and shows.

Associational accreditation ensures ongoing development and implementation of commercial value propositions specific to the association.

Training needs and representation via merSETA and W&RSETA. We actively drive industry-wide training and apprenticeship issues through our position on the merSETA Board and our involvement with the Technica manuals.

Representation at the Moto Health Care Fund, Industry Provident Funds and the Sick, Accident and Maternity Pay Fund.

The RMI offers industry-specific products like RMI4BEE / RMI4LAW / RMI4OHS /RMI4SURE.

Need to get hold of the RMI? Turn to Page 8 of this issue for all the contact details

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DRIVER’S SEAT

Focusing on safety As we move closer to the holiday season the focus is going to shift increasingly to safety and preholiday safety checks for drivers says Jakkie Olivier, CEO of the RMI

Jakkie Olivier, CEO of the RMI

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afety is, however, an all-year problem. South Africa has one of the worst accident rates, with 14 050 people having lost their lives in road crashes in 2017. Apart from the tragic loss in lives, vehicle crashes are costing South Africa R142 billion rands, which equates to roughly 3.4% of GDP. Our roads are plagued with unroadworthy vehicles where many of the safety-critical components have long been neglected. These vehicles are death traps, not only for the passengers in the vehicle but for other road users too. We have to get serious about regular maintenance of vehicle components to make sure our roads are safer.

During 2017, 89% of major crashes are caused or as a result of driver behaviour, 3,4% as a result of the road environment and 6,9% were found to be as result of vehicle factors. The reality is that while there are many road safety initiatives trying to inculcate a culture of compliance with the driving public, there are still no adequate vehicle inspection controls.

Of the 12.3 million registered vehicles on our road, only 21% are required to be tested on a regular basis. We feel that in South Africa our response to “in-use” vehicle inspection controls is

not adequate and vehicles are not being maintained in a safe and roadworthy condition. While the legislation for more frequent testing of vehicles has been gazetted, this is yet to be implemented.

I believe the RMI, through its 8 000 members can make a positive contribution to road safety. All of our various associations are involved in the upkeep and maintenance throughout the life of the in-use vehicle, in terms of its sale, maintenance, repair, and testing. It is our strong belief that should a vehicle be maintained in a roadworthy and safe condition, it will have a positive impact on road safety and decrease the number of fatalities from road crashes. Further, it will create jobs in the retail and vehicle testing sectors.

PTI (Periodic testing and inspection of vehicles) is an issue which we will be talking more about in the coming months. South Africa has made a commitment in terms of the Sustainable Development Goals to halve road deaths by 2020. South Africa needs to follow the same path of the many other countries around the world that have implemented PTI as part of their road safety interventions and have seen a decrease in road deaths.

We hope you enjoy our November issue of Automobil. It is a jam-packed issue with our Association focus fittingly on SAMBRA (page 22). SAMBRA represents the interests of the majority of the South African Motor Body Repairers across South Africa. Its members are

responsible for repairing over 80% of all insured repair claims in the country.

I would like to extend a warm welcome back to Richard Green as National director for SAMBRA (page 30). Richard returns to SAMBRA after a break of nearly eight years working ‘on the other side’ of the motor repair industry.

He joins at a critical time when the SAMBRA national executive committee is striving to maintain collaborative business partnerships in order to manage industry critical issues.

I would also like to encourage you to review the article on WERC, the World Engine Remanufacturers’ Council (page 42). South Africa’s Engine Remanufacturers’ Association (ERA), a constituent association of the Retail Motor Industry (RMI), has been instrumental in the relaunch and leadership of the world-body WERC. The re-establishment of WERC is significant as it allows our industry to share global best practices and give the Engine Remanufacturer Trade Sector a unified voice in trade and industry matters. South Africa is represented strongly on WERC, with ERA National Executive Committee Chairman, Frank Mac NICOL being elected Chairman of WERC, and two other ERA delegates - Thys Van Eck (ERA Western Cape Committee Member) and Attie Serfontein (RMI REMAN Cluster ERA SADFIA ACRA: Director) - elected as WERC Secretary.

We look forward to hearing further developments in this regard.

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

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

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he RMI is a proactive, relevant, retail and associated motor industry organisation recognised as the leading voice in South Africa’s automotive aftermarket, serving the daily needs of its members and playing a key role in enabling motor traders to deliver top class service to motoring consumers.

Here are the associations which fall under its umbrella…

ACRA (Automotive Component Remanufacturers’ Association) ACRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, an ever-growing industry in which keeping abreast of change is crucial for business owners.

ERA (Engine Remanufacturers’ Association) ERA represents motor engineers who re-machine, rebuild and remanufacture engines in South Africa. ERA members promote the reuse of engines, parts and components in a manner that is green and sustainable. ERA members create employment and skills development opportunities, directly in their own machine shops and indirectly through suppliers to the industry and component manufacturers.

MDA (Motorcycle Dealers’ Association) MDA represents members who are motorcycle dealers – these members benefit from an extensive array of value-add services and products such as commercial insurance, labour legal assistance and representation, consumer dispute resolution, and a strong relationship with the Association of Motorcycle Importers and Distributors.

MIMA (Motor Industry Manufacturers’ Association) MIMA members are Parts, Equipment and Component Manufacturers and suppliers to Original Equipment Manufacturers and the automotive aftermarket that exports into Africa and other countries in the world.

MIWA (Motor Industry Workshop Association) MIWA, the largest association within the RMI, strives to keep its members informed about the ever-changing auto repair industry, thereby ensuring that vehicles are repaired to acceptable standards designed to make them perform better and safely on South African roads.

MPEA (Motor Parts and Equipment Association) MPEA represents South Africa’s auto part traders, including wholesalers, retailers and independent operators in the replacement motor parts industry. Genuine replacement parts are available at accredited MPEA spares outlets at affordable prices, backed by the manufacturer’s warranty.

NADA (National Automobile Dealers’ Association) NADA represents the interests of business people who own or operate new vehicle franchise dealerships and qualifying used vehicle outlets. NADA is committed to the image enhancement of the retail motor business, facilitating the interface between dealers and OEMs/distributors, building relationships between dealers and customers and bringing relevant industry issues to the attention of government.

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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

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EDITOR’S LETTER

Make trades great again

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outh Africa faces a significant challenge in tackling youth unemployment. Of the 1.1 million youth who enter the labour market each year, only 14% find themselves in any form of employment (formal or informal) within their first year.

Two of the biggest problems our youth face today is unequal access to employment opportunity and the lack AA_TechnicalCollege_1_2.pdf 1 2018/08/01

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of emphasis on education. Indeed, when one considers how many of the youth sit at home unemployed when there are job vacancies that go unfilled by South African companies, it is clear that the “demand supply mismatch” must be solved in the youth labour market.

that require working with your hands - are inferior.

It is mind-boggling that while we are faced with such a situation, the country is also experiencing a serious skills shortage. The so-called high status jobs have no shortage of applicants, while many other careers that hold just as much value go unnoticed.

I believe that government and industry should embark on an extensive campaign that educates the youth on the advantages of a trade qualification. If not, we will be losing a whole generation to corporate cubicles, while the motor industry, among others, will be facing a serious problem.

Millenials place huge value on status and this need for status translates into the types of careers that school leavers strive towards. Doctors, lawyers, accountants and engineers remain the most popular.

This is most certainly not the case.

The demand for artisans and a skilled labour force is immense, and often the salaries meet or exceed those of the traditional high-economy fields.

The youth need to realise that putting on an overall everyday carries just as much value in society as that of a white coat.

Along with this comes a misconception that all other jobs - and especially those

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

NOVEMBER 2018

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NEWS

SPEAK TO US

SAMBRA Richard Green richard.green@rmi.org.za

hief Executive Officer: C Jakkie Olivier jakkie.olivier@rmi.org.za

SAPRA Vishal Premlall vishal.premlall@rmi.org.za

RMI EXECUTIVES

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

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VTA, SAVABA Julian Pillay julian.pillay@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

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Vehicle Testing Association

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NEW PRODUCTS

HOT STUFF Bronx launches Safety Footwear The Bronx brand has serviced generations of consumers, developing a reputation for fashionable and durable footwear that flows easily from work to play. The latest range from the Bronx Safety Footwear collection stays true to this ethos, designed for the hardworking man, and blending style and durability with safetycompliant protection and performance.

According to Peter Gerbrands, Group Marketing Manager for BBF Safety Group who distribute the Bronx range of safety footwear and specialise in branded safety wear and solutions, “Bronx Safety Footwear is committed to providing consumers with the quality, comfort and durability for which the brand is known, and merging the always-

ready-for-life approach to design with the safety that today’s South African workers need.”

To address the specific needs of the modern consumer, Bronx performed in-depth consumer research and testing to develop the line. The result is a specialised range of men’s safety footwear ready to perform and protect, but that also takes its wearer to important meetings or an important date.

Each style features: • Rubber sole for high heat resistance, oil resistance, anti-slip and excellent durability • Anti-static top sock with heel pump and air channels to promote airflow

• Mesh inner-lining for comfort and breathability • Padded heel shock absorber for added cushioning and energy absorption

With the new Bronx Safety Footwear range blending high fashion with safety compliance, the range will be available through a mix of retailers and safety specialist distributors and resellers nationwide.

To find your nearest stockist, visit www.bronxsafety.co.za/stockist

FUCHS Lubricants announces new William Penn packaging Fuchs Lubricants South Africa, the sole distributor for Wm Penn automotive products, has announced new five-litre packaging for the full product range.

The categories include gear oils for axles, engine oils for diesel and petrol engines, the long-established Valve Ease fuel additive, car shampoo, twostroke oil, automatic and manual transmission fluid, hydraulic brake and clutch fluid, and antifreeze.

Lerato Dhladhla, Product and Brand Marketing Specialist at Fuchs Lubricants South Africa, explained: “This is in line with our strategy to increase exposure of Wm Penn products to retailers and automotive workshops for both large and smaller retail

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shops. The new packaging provides a cohesive look to this established brand. Smaller pack sizes will be introduced in the first quarter of 2019.”

The Wm Penn gear oil range is a heavy-duty gear lubricant range formulated to offer increased protection for gearboxes, differentials and certain final drives of vehicles operating under severe conditions. Wm Penn Gear oil SAE 75W-90 is suitable for all passenger cars and off-road vehicles where GL-4 / GL-5 gear oil is recommended.

Wm Penn Grand Prix Extra SAE SAE 20W-50 is a multigrade engine oil formulated from selected base oils in combination with fit-for-purpose additives to suit a variety of applications. It is suitable for passenger cars and light commercial vehicles requiring API SL or lower-performance lubricants, and where SAE 20W-50 viscosity is acceptable.

Wm Penn Red Heart Motor Oils is a range of monograde engine oils formulated from selected base oils and a well-balanced additive package.

This range is specifically suitable for applications where monograde lubricants are recommended and in motors that may react unfavourably to modern, multigrade engine oils.

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SEPTEMBER 2017 -

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NEWS

Kristofferson aims to wrap up season in style at Killarney

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outh African motor racing fans will get a chance to see one of the sport’s legends in the making at the Gumtree World RX at Killarney International Raceway on 24-25 November.

Johan Kristoffersson of Sweden has already clinched this year’s World RX title in his Volkswagen Polo R with some astonishingly dominant driving. He won the World RX of Germany at Estering last weekend to make it ten wins out of the eleven rounds completed so far against high quality competitors.

But Kristofferson won’t be easing up in the final event of the season. He won the inaugural Gumtree World RX of South Africa at Killarney last year and says “I loved the atmosphere and the crowds

in Cape Town and I’m really looking forward to some great racing”.

The battle for second place in the championship will be a feature of the Killarney event.

Mattias Ekström and Andreas Bakkerud, both in Audi S’s, and Peter Solberg in a Volkswagen Polo R are locked in a very tight battle for that honour with only seven points separating them.

Paul Bellamy, World RX Managing Director for IMG says: “We’re really excited to go to Cape Town again, we

had a brilliant event there last season and we expect it to be even better this season.”

Tickets for Gumtree World RX of South Africa are available from Ticketpro.

Midas celebrates Franchisee of the Year Awards in Lisbon

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idas, a flagship franchise, is a retail store designed around the needs of any vehicle owner, focusing on various product ranges, from motor parts and accessories through to lifestyle equipment. This successful group has over 300 franchised outlets in Southern Africa, including Botswana, Lesotho, Mozambique, Namibia, Swaziland, Zimbabwe, and South Africa.

Midas recently hosted its annual Franchisee of the Year Awards in Lisbon, Portugal. This lavish annual ceremony

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recognises the top three Franchisees within the Midas group. The following Franchise Partners walked away victorious, winning the title of Franchisee of the Year in each workshop group respectively: First place: One Stop Midas Steelpoort - R50 000 Second place: Old Pretoria Road Midas - R30 000 Third place: Menlyn Midas - R20 000 “The Franchisee of the Year awards are the highlight of our calendar. It provides the opportunity for us to celebrate the achievements of all our franchise partners and recognise those who have really excelled and held up high the Midas Brand.

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Adapt and fly says BRiNK’s Local Boss company, Netherlandsbased BRiNK Group.

In October and November, the SA operation will export almost 10 000 additional units to the European nation to meet unexpected demand for certain tow bar types.

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RiNK Towing Systems South Africa, the largest manufacturer of tow bars in the country, is going back to its roots.

The Pietermaritzburg-based company, a major producer for Ford’s Silverton plant near Pretoria and Toyota in Durban, has taken advantage of its ability to react quickly to secure an order from its parent

“BRiNK has a global network of manufacturing facilities, so it is an achievement for Pietermaritzburg to be chosen, despite South Africa’s comparatively high steel costs. We’ve always been flexible in terms of our production process and pride ourselves in our ability to quickly go from a run of one type of bar to another. Our adaptability was key in this case.” says Mark Gutridge, Managing Director of BRiNK Towing Systems SA

A recent upgrade to the local operation, including the installation of a sophisticated twin six-axis Yaskawa welding robot, has reduced time taken per unit. Its sophisticated circuitry allows it to be pre-programmed to carry out complex welding sequences with remarkable accuracy, speed and quality.

“Whilst close to half the total order comprises a bar of one type, there will be a total of nine different types in the mix, which requires careful planning from a production and materials perspective. In the meantime, we’ll also be continuing with our normal highvolume orders for the Ford Ranger and Toyota,” concluded Gutridge.

The Pietermaritzburg plant has a production capacity of 120 000 units per annum, while the Brink Group, which has plants in the UK, Holland and France, produces over 1-million towbars a year.

The awards take into account measures and metrics that our franchisees strive to improve on year in and year out. This year’s gala event was held in Lisbon where we could spend time with our franchisees enjoying the European summer. My heartfelt congratulations to this year’s winner, One Stop Steelpoort for their exceptional performance,” said Brett Ferreira, National Franchise Director, AAAS. Leani Havenga, Franchisee at Midas Steelpoort adds, “As a businesswoman at heart, I am incredibly passionate about leading the business and its people. I believe every challenge is an opportunity to learn, improve and grow. It’s an honor to be named the winning Midas franchise and to be a part of the Midas family.”

Shannon Drake National Franchise Manager AAAS, Leani Havenga Midas Steelpoort, Brett Ferreira Franchise Director AAAS, Warren Espinoza Chief Operations Officer AAAS

www.automobil.co.za

NOVEMBER 2018

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NEWS

Supa Quick’s latest franchise launch advances transformation of the industry

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he official launch of the Supa Quick Centurion Lifestyle fitment centre last month should be seen within the context of the automotive industry’s commitment to transformation, says Desirée van Niekerk, Supa Quick’s brand manager.

“The Minister of Trade and Industry called on the industry to set incremental, achievable targets for black participation and ownership. The official launch of this franchise highlights the way in which an established business like ours can help black entrepreneurs succeed,” she says.

“The two Centurion franchisees, Silimela Lallie and Khaya Ndondo, are both genuine entrepreneurs who have identified the automotive industry, and more specifically the aftermarket, as an area of opportunity, and we are already seeing how powerful the combination of their enthusiasm and business acumen with our brand, best practices and buying power can be.”

Lallie and Ndondo began looking for opportunities in the automotive sector as far back as 2014. After looking at various options across the automotive supply chain, they decided that the aftermarket offered them the most realistic entry point, and that it would make sense to ally themselves with a leading franchise such as Supa Quick. When the Centurion franchise became available, they were quick to take it up. By May 2018, they had completed a full refurbishment of the premises and opened their doors for business.

“We aim to differentiate ourselves in the automotive aftermarket by humanising it, there’s something of a trust deficit in that consumers often don’t have expert knowledge and can feel disempowered,” says Ndondo. “By making the fitment

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SupaQuick Khaya Ndondo and Silimela (6th from left) and Silimela Lallie (in suit) during the official opening of their fitment centre in Centurion

centre a safe space for both male and female drivers, we can begin to build a solid client relationship, something that’s not easy given that there is typically a significant interval between visits.”

He says that the franchise’s performance over the past three months tends to validate this approach.

Lallie says that the automotive industry’s long and established supply chain offers many possibilities for entrepreneurs.

The aftermarket was attractive because of the relatively low barriers to entry, the potential for repeat purchases over the life of a vehicle and, crucially, the presence of an established franchisor to provide a firm launch pad.

young, they first needed to convince the company that they had both the business acumen and staying power to make a success. “This is a highly competitive sector, and giving up the security of a job is always challenging. But they did convince us, and we can already see that their hard work and flair are starting to pay off. In the broader context, we believe that an established franchise like Supa Quick can help black entrepreneurs succeed, something we all want to see happen,” she concludes.

“Working with Supa Quick suited our needs because it means the basic business processes and marketing are taken care of, leaving us free to focus on the human element,” says Lallie. “But given the length of the automotive supply chain, there are opportunities for many different types of business, I don’t think South African entrepreneurs fully recognise the opportunities it presents.”

Van Niekerk pays tribute to the pair’s tenacity and vision. Because they are

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15

W series announces Single-Seater series for woman drivers only

W

rigorous pre-selection programme and examination involving on-track testing, simulator appraisal, technical engineering tests and fitness trials.

The inaugural W Series season will commence in the spring of 2019 and will encompass a number of races run on some of the best and most famous circuits in Europe, most of which have staged Formula 1 races for many decades.

In forthcoming seasons the W Series schedule is set also to include races in America, Asia and Australia.

The successful applicants will then be given a thorough training programme centring on driving techniques, simulator exposure, technical engineering approaches, fitness, media skills all of it carried out by a group of experts with decades of Formula 1 experience, meticulously recruited for the purpose, including David Coulthard and Adrian Newey.

W Series will provide identical cars for 18-20 drivers in season one (2019), all of whom will have entered and passed a

At the heart of W Series’ DNA is the firm belief that women can compete equally with men in motorsport. However, an

Series have announced an allnew ground-breaking free-toenter single-seater motor racing series for women drivers only, with a prize fund of US$1.5 million.

all-female series is essential in order to force greater female participation.

W Series is therefore a mission-driven competition, the aim of which is not only to provide exciting racing for spectators and viewers on a global scale, but also to equip its drivers with the experience and expertise with which they may progress their careers, racing and honing their skills in W Series before eventually graduating to existing high-level mainstream racing series.

The cars will all be identical Tatuus T-318 Formula 3 cars, powered by identical Autotecnica Motori inline four-cylinder 1.8-litre turbocharged engines, using Sadev six-speed sequential gearboxes, fitted with HALO safety devices.

Sound of Jaguar I-Pace protects road users forthcoming European legislation for all new EVs from July 2019.

The I-Pace’s sound was tested by members of Guide Dogs for the Blind, the UK’s leading charity for people affected by sight loss, as part of the testing undertaken by Jaguar. It also marks the start of an on-going relationship between the two organisations.

W

ith no engine sound, the electric Jaguar I-Pace required a new way to warn blind, visually impaired and other vulnerable road users it is approaching at low speed.

Jaguar has designed a unique Audible Vehicle Alert System (AVAS) for its first EV that meets and exceeds all forthcoming global legislation. Jaguar’s engineers have developed a sound that can be heard at speeds up to 20km/h and exceeds the 56dB(A) minimum required by

16 NOVEMBER 2018

Jaguar’s engineers worked for four years to develop a soundtrack that is audible yet discreet, and cannot be heard from inside the vehicle. Initial attempts to create a noise inspired by the sound of sci-fi spacecraft had to be shelved after pedestrians reacted by looking up to the sky, rather than at the road, as the vehicle approached.

Engineers tested sounds in a number of environments, including an anechoic chamber (specialist echo-free room) and

various urban scenarios, before settling on the final sound for the I-Pace. It is emitted from a speaker located behind the front grille, can be heard in every direction, and cannot be disengaged.

The alert increases in pitch and volume in line with the speed of the vehicle and, when in reverse, is accompanied by an additional tone that indicates the change in direction.

AVAS is not required at higher speeds as there is sufficient wind and tyre noise for pedestrians to hear the zero-emissions vehicle approaching.

Fitted with a state-of-the-art 90kWh lithium-ion battery, two Jaguar-designed motors and a bespoke aluminium structure, the I-Pace is capable of 0-100km/h in 4.8 seconds and a range of up to 470km (WLTP).

The new Jaguar I-Pace will be available in South Africa in the first half of 2019.

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SEPTEMBER 2018

17

NEWS

Click to Buy Online-only Special Edition MINI 1499 GT

John-Ross Arends wins Bronze in International Tint Off Competition in Texas

I

n an exciting first for South Africa, Cape Town-based John-Ross Arendse has brought home 3rd place in the International Tint Off Competition, held recently in San Antonio, Texas. Arendse competed in the hotly contested automotive window film fitment section, against other talented window film installers from all over the world.

His entry into the International contest was part of his prize for winning the title of the first-ever LLumar SA Window Film Tint Off Competition at the beginning of September.

M

ini South Africa’s latest special edition model was recently previewed at the South African Festival of Motoring, and the Mini 1499 GT is now available to order online via a special website.

production run of just 30 cars finished in Midnight Black with distinctive gold 1499 GT side stripes.

The Mini 1499 GT harks back to the brand’s rich heritage and the Mini 1275 GT, one of the best known sporty classic Minis of all time. Just as the Mini 1275 GT paired distinctive design with inventive solutions (it was the world’s first vehicle fitted with run-flat tyres), the Mini 1499 GT is the first Mini in the South African line-up to be available to order online. Go to mini1499gt.co.za to reserve your car.

Additional exterior features include the Mini John Cooper Works styling pack with its distinctive John Cooper Works front and rear bumpers, side skirts, spoiler and door entry plates. The Mini 1499 GT features 17-inch Track Spoke alloy wheels in Black, gold Union Jack mirror covers, gold Union Jack side scuttles, and a panorama sunroof. In line with the recent updates to the Mini three-door hatchback in South Africa, the Mini 1499 GT displays Union Jack taillights and LED headlights as well.

Perfect for drivers seeking a unique vehicle and an entertaining drive, the Mini 1499 GT will be built in a limited

The MINI 1499 GT costs R447 000.

For more information, and to order, visit mini1499gt.co.za.

18 NOVEMBER 2018

“Wow! I’m really proud of my achievement.

I’ve just won first place in South Africa and now third place in the world, all in the same year!” said Arendse.

“This means a lot to me, because not only am I flying South Africa’s banner high, but also those of Barons N1 City Barloworld, where I work and LLumar Films SA, who organised the competition and sent me to San Antonio.

This is a story I’ll be able to tell my children and my grandchildren in years to come!” he said.

LLumar Film SA Automotive Specialist, Jimmy Herron said Arendse could be proud of his achievement. “To do so well in the international competition is absolutely amazing. We know how tough the competition is internationally and, given the fact that this was the first time he had ever competed in a national competition, his result is exceptional.”

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NOVEMBER 2018 -

19

NEWS RMI UPDATE

Sumitomo Rubber Unveils R970 million Tyre Production Facility in Ladysmith

S

umitomo Rubber South Africa (SRSA), manufacturer of the popular Dunlop, Sumitomo and Falken tyre brands, officially launched its new, stateof-the-art Truck and Bus Radial (TBR) factory in Ladysmith, KwaZulu-Natal last month.

This second phase of SRSA’s multibillion-rand investment to upgrade and modernise the plant’s capacity saw a further injection of R970 million to introduce and manufacture truck and bus tyres locally, bringing the total investment into the Ladysmith facility since 2014 to more than R2 billion.

CEO of SRSA, Mr Riaz Haffejee outlined the vision and purpose of the TBR facility and the range on offer. “We will be industrialising a total of 24 sizes between our Dunlop and Sumitomo brands, from this year until September 2019,” he said.

Manufacturers), who is also overseeing the operations of the SATMC, remarked: “SRSA must be recognised, not only for its significant investment in plant and processes, but for its commitment to a region outside South Africa’s industrial heartlands, and its contribution towards employment. They have demonstrated how automotive component manufacturers can drive true economic development across the country, and the importance of ensuring that a greater level of manufacturing of automotive component happens.”

Production at the plant commenced as planned in July 2018. The local production of the TBR range – following extensive research and development processes – will ensure that customers,

Sumitomo Riaz Haffejee, SRSA CEO

both in South Africa and on the African continent, have the right tyre for the country’s specific application. These will be designed in Japan, tested in Africa, and manufactured in South Africa, for Africa with the Ladysmith factory certified to test TBR tyres to European compliance standards.

Haffejee also elaborated on the community impact that the investment and development of the factory has had: “Following SRSA’s first phase factory investment in 2014 which saw us increase our output of high-quality passenger and sport utility vehicle (SUV) tyres at this plant, the new TBR factory has created growth and a brighter future for the local community. SRSA’s total investment in employment, utilities and procurement has doubled since 2014, which has had a direct impact on the town and has served as a catalyst for community development and entrepreneurship.”

Renai Moothilal, executive director of NAACAM (National Association of Automotive Component and Allied

20 NOVEMBER 2018

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ASSOCIATION OF THE MONTH

Ensuring sustainability in Motor Body repairs SAMBRA represents the interests of the majority of the South African Motor Body Repairers across South Africa. Its members are responsible for repairing over 80% of all insured repair claims in the country, says Richard Green SAMBRA National Director

S

AMBRA members and their short-term motor insurer business partners in South Africa, two umbilically linked industries, face an extremely challenging short-term future during which we will undoubtedly see a paradigm shift.

In spite of this symbiotic relationship where the one requires the other to exist and sell its products and services, both are overtraded and require substantial overhaul to remain relevant and profitable.

In both industries there exists a cost structure that can no longer be maintained. This cost structure has accumulated over time and contains irrelevant and duplicated costs. Unless these structures can be revised to ensure they add value to the entire system, they need to be eradicated.

Within the SAMBRA membership I have seen how margins have been eroded and costs transferred from

22 - NOVEMBER 2018

Motor Body Repairers are often faced with the decision of whether to repair damage using a method which precludes cutting and welding of the panels or alternatively, replacing the entire panel by cutting the section out and welding a new section in

insurers to the members. The erosion of member profit has happened in small increments, unnoticed, until the increments accumulate sufficiently to threaten the viability of the member business. In the panel-beating industry we have all allowed this to gradually happen, and are now faced with some really tough challenges to pull it back to where it should be. We are

in control of our own destiny, and it is our actions that will determine our success or failure.

The short-term insurance industry faces equal or greater challenges in their sector. The industry is also completely overtraded, with many entities trying to profit from the same small insured sector. To their credit,

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Richard Green SAMBRA National Director

insurers have morphed, offering life insurance and many other products that were previously not considered their domain. In so doing they have created alternative income streams that allow substantial cross subsidisation, something the panel-beating industry, either cannot or has failed to do. It is common cause, that when companies like insurers morph, they almost always pillage from other sectors, such as life insurance mentioned earlier. This is, after all, the nature of business - the strong eat the weak or take over from those ‘sleeping at the wheel’.

Creating a favourable trading environment SAMBRA’s focus over the next year will be to ensure that we create the very best trading environment within which our members can do business. This is, after all, our priority function as an association.

The biggest challenge while doing so will be to remain collaborative with business partners while unrelentingly pursuing the goal of sustainability. Like the short-term insurers who have been

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NOVEMBER 2018

23

ASSOCIATION OF THE MONTH

creative, but in so doing have pillaged from other sectors, SAMBRA members will need to take back their eroded profit margins from the affected areas of the business and become substantially more innovative within their businesses to ensure improved profit margins.

The erosion of SAMBRA member margins can be attributed to: • Poor business management within member operations.

• Insurer business partners transferring administrative and estimation cost burdens to SAMBRA members over time.

• Auditing costs, applied by manufacturers, insurers and associations are not only ineffectively managed and applied, but carry huge accumulated costs.

• Consistently high capital equipment costs of maintaining manufacturer approvals.

• Uncollected cash from failed insurers and the cash flow implications resulting from poor payers within the intermediary sector.

• Real value decreases in labour income over the last 15 years.

Insurers will continue to attack markets they believe they can derive incremental income from in the future. This includes, as an example, OEM parts purchasing. SAMBRA is advised that several large Insurers are currently looking at purchasing parts directly from OEM appointed dealer groups. This practice threatens the entire Motor Body Repair Industry and all the employees in it and should not be allowed! The maintenance and growth of the small business environment is critical to South Africa’ business and employment future and practices such as these fly directly in the face of that.

24 - NOVEMBER 2018

Poor cash flow is precluding many SAMBRA members from enjoying the benefits of settlement discounts. This problem can nevertheless be solved by adopting a pay-before-release system, thereby ensuring the immediate collection of funds at time of delivery. The added advantage of this system is that it eradicates any post repair conflict between insurer and SAMBRA member.

In South Africa, especially recently, there have been many examples of serious conflict to bring about a necessary change.

The change required in our industry will be no less substantial and require robust debate and discussion. My hope is that among our business partners there are men and women who will navigate these changes with SAMBRA so that both our industries emerge more effectively configured and far better acquainted with the challenges each face.

Meet the RMI – SAMBRA (NEC) National Executive Committee SAMBRA NEC 2017-­‐2019 REGION: WESTERN CAPE NAME

COMPANY NAME

CHARLES CANNING (CHAIR)

CC CANNINGS

CARL WEBB

AUTO MAGIC -­‐ BLUE ROUTE

REGION: EASTERN CAPE NAME MARK LIPPSTREU (CHAIR & NATIONAL VICE-­‐CHAIR) JACO KOEN (VICE-­‐CHAIR)

DENYS EDWARDES

COMPANY NAME

BROTHERS AUTOMOTIVE

REGION: BORDER NAME

COMPANY NAME

BRUCE CUMMING (CHAIR)

GORDON CUMMING BODY REPAIRS

KUBESHNIE NAIDU (VICE-CHAIR)

STAR CENTRE

REGION: SOUTHERN CAPE NAME

COMPANY NAME

JAN G KACHELHOFFER (CHAIR)

AUTO MAGIC -­‐ GEORGE

REGION: KWAZULU-­‐NATAL NAME

COMPANY NAME

SEAN FLANAGAN (CHAIR)

FLANAGAN'S PANEL BEATERS

MARC CALLIONTZIS (VICE-­‐CHAIR)

PARKHILL PANELSHOP

REGION: BLOEMFONTEIN NAME JEANNE ESTERHUIZEN (CHAIR & NATIONAL CHAIR) JAN SLABBERT (VICE-­‐CHAIR)

TECHNICOLOUR

COMPANY NAME

SLABBERT AUTO BODY REPAIRS

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RMA- leading the way in occupational injuries RMA- leading the way and through our in diseases occupational injuries family-centric approach. and diseases through our family-centric approach.

For over 120 years we have made sure that workers who get injured while at work in the mining industry receive benefits including medical costs, family allowances and For over 120 years we disabilities, have made sure that workers who get child extension pensions inthe themining case of death.receive We have since injured while at work in industry benefits medical costs,the disabilities, family allowances and Marchincluding 2015 been allocated iron, steel, metal and related child extension pensions in the case of death.

We have since industries to administer by the Minister of Labour.

March 2015 been allocated the iron,and steel, metal and per related Our claims are processed speedily efficiently our industries to administer by the Minister of Labour. tagline of “Caring, Compassionate, Compensation” as well as Our claims are processed speedily and efficiently per our our belief that behind each claim is a family waiting for relief. tagline of “Caring, Compassionate, Compensation” as well as This has made us the leading administrator in the business. our belief that behind each claim is a family waiting for relief. pensioners to ensure they receive the best care possible. We We administer in us accordance the Compensation for This has made the leadingwith administrator in the business. also provide continuous education our pensioners Occupational Injuries Diseases Actthe (COIDA)130 of 1993. pensioners to ensure they receive the to best care possible. who We are on We administer in and accordance with Compensation for preventative health conditions help reduce who the are occurrence of also provide continuous education totoour pensioners on Occupational Injuries and Diseases Act (COIDA)130 of 1993. preventative conditions to help reduce the further occurrence of secondary health complications.These innovations underline our CONTINUOUS CARE complications.These innovations further underline CONTINUOUS CARE passion for caring for the lives of our claimants and theirour families.

Our service to those injured extend beyond the payment to secondary to those injured extend beyond the payment to whereOur weservice allocate case managers in line with our Pensioner where we allocate case managers in line with our Pensioner Medical Plan. The case managers visit those severely Medical Plan. The case managers visit those severely affected to check on the standard of care and other needs. affected to check on the standard of care and other needs.

We have also also developed innovative such We have developed innovative interventions interventions such as a mobile clinic to help us us reach the as a mobile clinic to help reachrural ruralareas areas across across the country and and outside to provide the of care care country outside to provide therequired required level level of to those cannot access theprocess process also also changing to those who who cannot access it, it, in in the changing prosthetics treatment where needed.Our Our Care Care Facility prosthetics and and treatment where needed.

Facility injured pensioners long term treatment to our seriouslyinjured pensioners offersoffers long term treatment to our seriously to ensure they receive the best care possible. We also provide continuous education to ensure they receive the best care possible. We also provide continuous education to our pensioners who are on preventative health conditions to help reduce the to our pensioners who are on preventative health conditions to help reduce the

passion for caring for the lives of our claimants and their families.

ADDITIONAL INSURANCE PRODUCTS

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These include Augmentation their needs.

These include Augmentation Policy Policy (top up(top coverup of cover of the COID policy), Group Personal Accident Cover with a difference, the COID policy), Group Personal Accident Cover with a difference, Commuting Journeys Policy, Funeral PolicyPolicy etc. Foretc. a quote suitable Commuting Journeys Policy, Funeral For a quote suitable toto your needs visit our website at www.randmutual.co.za or email or email your needs visit our website at www.randmutual.co.za sales@randmutual.co.za

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INDUSTRY NEWS

Developing a new, or purchasing an existing Service Station in South Africa

In the first of a two part series, Viv Corinaldi, the previous acting Director at SAPRA, gives some insights into the requirements and necessary processes for a prospective entrant into the petroleum retailing industry when developing a new, or purchasing an existing service station in South Africa, and to then operate the business successfully

O

wning and operating a service station is the dream of many people who see it as an opportunity to have their own business and earn a very good living. This article seeks to provide a broad overview of the various options to enable the reader to make an informed decision.

Service stations in South Africa can be divided into two categories, namely those controlled by the oil companies and those controlled by private individuals.

In the case of oil company-controlled sites, the Oil Company owns the land or has a long-term lease for the property, invests all the capital required and appoints the retailer/franchisee/operator.

These sites are commonly known as CORO sites – Company Owned Retailer Operated, and the Oil Company has full control over the business through its various agreements, which compel the retailer to operate the site to prescribed standards and specifications.

26 - NOVEMBER 2018

In the case of sites controlled by private individuals, the individual owns the land, invests most if not all of the capital required, and operates the business or leases the station to another person who operates it.

A person wishing to enter the petroleum retailing industry thus has to decide on the following: • to develop a new service station or purchase an existing business, and • to operate as a CORO or a RORO site

The operator enters into a Supply Agreement with the Oil Company that has no jurisdiction over the appointment of the retailer or operator. These stations are commonly known as RORO sites – Retailer Owned Retailer Operated, the operator being also required to follow the specific Oil Company brand specifications and standards.

Developing a new service station The development and commissioning of a new service station can take up to four years or more to complete from purchasing the property to selling the first litre of product.

During this time and excluding the purchase price of the property, the owner/developer may spend up to R1 million in preparing the site for development.

It must also be noted that the current margin mechanism for petrol retailing known as the Benchmark Service Station Regulatory Accounting System (BSS RAS), must also be considered in any investment decision. RAS is designed to cover operating costs and provide a return on investment for the investor in the various capital items.

There is no quick and easy way to do it, so developing a new station can be a risky venture. There are a significant number of steps, legal requirements and other matters that must be attended to in order to acquire all the necessary approvals and conditions to develop a viable and sustainable service station. These include the following:

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The Property Finding a suitable property can be a lengthy and complicated matter as there are many approvals to be obtained. The property must be free of any encumbrances and must meet the following requirements: • A property of minimum 3000m2 and should be as square as possible, or have at least 40 metres of main road frontage.

• A flat and level property would be ideal, but slight levels problems could be rectified, albeit at additional cost.

• The property should be well located on a road with significant traffic flows.

• A corner site with access to two roads would be an advantage • Availability of site services or a full costing to provide the services should they need to be installed • A geological survey report It can be seen that good service station properties are difficult to find. The cost to purchase a suitable property for an average suburban site could be as much as R5 million. Then the holding cost for the time taken to get all the approvals and prepare the property for construction needs to be factored in. These costs include the loss of income from the undeveloped land and the interest payable on any bond, if applicable.

Also, there are no guarantees that the required rights and approvals to operate a service station will be approved, and a view on disposing of the property for at least the purchase price should also be considered.

Access approval, Land Use Rights and Environmental Authorisation The various rights and approvals required to operate a service station on a specific property are cumbersome, time consuming, and costly to obtain. These include: • Approval from the relevant roads authority for access to the property in line with the regulations for the road class, i.e. Municipal, Provincial, National • The correct zoning for a service station in terms of the spatial land

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use management plan of the relevant authority • An Environmental Impact Assessment (EIA) and a positive Record of Decision (ROD) in terms of the National Environmental Act (NEMA) and relevant Provincial Environmental Authority.

This includes what is referred to as a Basic Assessment Report which must be drawn up by a recognized Environmental Agency. This exercise can cost up to R500 000 and take six to eighteen months to achieve.

In all of the above processes there is opportunity for the general public and those affected by the proposed new service station to comment on and object to the proposed development. Then, prescribed processes and procedures must be followed to address the objections, which could take many months to finalise.

Feasibility Study It is advisable to conduct a comprehensive feasibility study before any property is purchased. This study should include a vehicle count and traffic impact analysis by a professional traffic engineer which could cost up to R50 000. The feasibility study should include: • Full title deed information • Geographical site location • Trade area details • Details of passing roads infrastructure and any potential future road changes • A Site Development Plan showing the proposed site layout and preferred access possibilities • Calculation of fuel market demand and competitor site analysis • Calculation of the retail convenience store demand including non-forecourt convenience facilities, e.g. car wash, restaurant, etc.

• Area evaluation to determine the threat of possible new competitor sites being developed in the trade area • Full traffic analysis on the roads passing the property to determine traffic types, i.e. light sedan vehicles, taxis, heavyduty trucks, etc.

• Provision of actual market or industryaccepted values for:

o Capture (interception) rates o Average transaction fills o Number of trading days in the month Calculating the potential volume of a new service station The establishment criteria largely determine a service station’s potential volume and its chances of success or failure. These are the factors and calculations that Oil Companies and property developers use to determine the volume and feasibility of a new service station. These factors include location, brand, facilities and operations.

In calculating the volume of a service station, a tried and tested industry model is used where a number of facts and assumptions are combined to estimate the projected volumetric fuel throughput of a new station, as follows: • The number of vehicles passing the site per day (VPD), multiplied by • The assumed capture rate (CR) expressed as the percentage of vehicles that will drive onto the site and purchase petrol, multiplied by • The assumed average transaction value in litres or average fill (AF), multiplied by • The number of trading days (TD) in a month, given the site location and trading area.

• A simplified example is thus; 15 000VPD x 3%CR x 30ltAF x 30TD = 405 000 litres per month projected volume.

NOVEMBER 2018 -

27

INDUSTRY NEWS

Oil companies currently assume the minimum benchmark volume for a viable service station to be 400 000 litres pm, which is also required to provide an acceptable return on investment and profit margins for the landlord and retailer. Depending on the trade area income levels (low, medium or affluent) the shop turnover will vary from as low as R1,10/litre pumped to R1,50/litre. Shop turnover at freeway stations may even exceed these ratios.

Oil Company negotiations A vital part of a new site development is deciding which Oil Company to partner with and the preferred form of agreement. There are various types of agreements available dependent on the split in the capital expenditure that the landlord and Oil Company are willing to incur, which also determines the level of the RAS margin offered by the Oil Company. The various agreements include: • Oil Company Head Lease with accompanying servitudes.

• Supply and Operations Agreements • Dealer and Franchise Agreement Company Owned Retailer Operated or Retailer Owned Retailer Operated The choice to develop a CORO or RORO station depends on the level of investment and the appetite for risk.

The options are: Company Owned Retailer Operated • If the Oil Company owns the land, all capital expenditure will be incurred by the Oil Company.

• If a private individual owns the land and wants to go the CORO route, the Oil Company will enter into a long lease with the landlord (usually 20 years or more) and pay a rental sufficient to raise the necessary capital through a finance institution. Normally, the Oil Company installs the pumping equipment (pumps and tanks),

28 - NOVEMBER 2018

the convenience store equipment and all branding and signage.

As a condition of the transaction the landlord/developer usually wishes to be appointed as the retailer conditional on standard Oil Company terms and conditions.

Retailer Owned Retailer Operated There are a number of options in a RORO transaction, from using own funds to getting assistance from the Oil Company to complete the development. The Oil Company may take a land lease and offer a greater RAS margin to enable the developer/ retailer to achieve an acceptable return on investment (ROI) and operational profitability.

It is advisable for new entrants into the industry to conduct a full due diligence of all aspects of the various Oil Company deals, relevant capital expenditure, lease rental, RAS income streams and tax implications. It is also recommended that expert advice be obtained from available industry resources.

Department of Energy Licensing Requirements From March 2006, the Petroleum Products Act was amended to include the licensing of all service stations with each service station having to obtain a Site License (issued to the property owner) and a Retail License (issued to the Retailer/Operator). In the case of a new service station, both licenses must be applied for simultaneously from the Department of Energy (DoE) that has very stringent conditions and requirements that must be met.

All approvals and other legislative conditions must be completed before the applications are submitted. The DoE then applies their processes and procedures to consider and approve the applications, including the right to reject an application.

Development and site build-out Once the Site and Retail licences have been approved and issued, the final arrangements for the building and construction phase can commence, which include: • Finalisation of all oil company agreements • Approval of site development and building plans • Tender processes and appointment of the various contractors • Actual construction which can take four months or more to complete Indicative capital required is as follows: Item

Value Rm

Land

5.0

Holding and maturing

1.0

Civils and Buildings

5.0

Forecourt equipment

4.0

C-store equipment

3.0

Signage and other

2.0

Total

20.0

In addition to the capital required to develop a new service station the following indicative capital is also required to pay the franchise fees where applicable and purchase stock etc.

Item

Value Rm

Upfront Franchise fee

3.0

(CORO sites only) Fuel stock plus guarantee 2.0 to Oil Company C-store dry stock

1.5

Other

0.5

Total

7.0

As can be seen from this brief overview, the development of a new service station with all related requirements can be a very arduous and risky project. Although the end result can be very rewarding, care must be taken to consider every detail to ensure a successful outcome.

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29

RMI UPDATE

Green reappointed as National Director of SAMBRA Richard Green has been reappointed as National Director of SAMBRA with effect from September 2018 after a break of eight years working ‘on the other side’ of the motor repair industry

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e joins at a critical time when the SAMBRA national executive committee is striving to maintain collaborative business partnerships in order to manage industry critical issues. “I look forward to engaging with truly collaborative business partners in the near future to ensure those relationships are maintained and improved.

Schooled in the Eastern Cape, Green studied law through Unisa (incomplete) while working at Union Carbide Exploration and Anglo American. His passion lay in the motor industry, and he worked during his career for: Volkswagen South Africa Fleet Marketing; Lindsay Saker Group – Dealer Principal; Rezek Motor Group which was bought by Unitrans Motor Group – MD BMW Division, before joining RMI and SAMBRA between 2000 and 2009 as National Director SAMBRA. During 2009 to 2018 he revisited the motor industry as a Marketing Director and General Manager, before his recent return.

With a fresh perspective of the industry environment, he says that, while he can see a lot of progress has been made in the industry, he would nevertheless still like to work towards a more collaborative environment between the various industry business partners.

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“I am concerned about SAMBRA members not receiving fair value from the short-term insurance industry. I would really like to see both parties working far more collaboratively in good faith with both sides feeling they are getting fair value for their work,” says Green.

Manufacturers’ approval systems also continue to be restrictive, demanding substantial investments in tooling and other equipment without the SAMBRA member receiving sufficient increase in gross income to provide a fair return on that investment.

“It is a tough market for SAMBRA members, with increasing demands from insurers, auditors, manufacturers, regulatory systems such as BBBEE, and the many other hoops they are required to jump through to maintain a reasonable chance of being considered for work allocation.”

“To get meaningful progress, I feel we all need to work harder and collaborate better. A noncollaborative demand-based system, ‘sign it or leave it’ approach does not serve anyone, particularly when one is trading in a market with over capacity and players ‘fighting very hard for the same market share," concludes Green.

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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

Is South Africa getting left behind?

New technology is advancing at a rapid rate but we live in an automotive time-warp here in SA, says David Furlonger

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ur fuel quality is generations out of date. Many of the vehicles on our roads were in their prime 15-20 years ago. As for our driving habits, they come from a century ago, when there were almost no motor vehicles on the road and drivers didn’t have to worry about other traffic. Many of today’s SA drivers appear oblivious to what’s going on around them.

We’re also not very fond of new technology. Hybrid vehicles – those powered by a combination of petrol and electricity – may be big business in the rest of the world but in SA, almost no one’s interested. Ditto pure electric vehicles, or EVs. Given this bubble, it’s perhaps not surprising that, while they follow latest automotive technology trends with interest, many people here consider them largely irrelevant to SA. They feel they might as well be reading science fiction.

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The trouble with science fiction is that it has a habit of coming true. Much as we think that new technologies are decades away from SA, many of them will make their way here before we know it.

Take flying cars. The Japanese government, no less, is bringing together 21 partners – including Uber, Boeing, Airbus and Japan Airlines – in the hope of integrating flying cars into its public transport system.

appropriate support to help realise the concept of flying cars, such as creation of acceptable rules’.

Japan is already proving a leader in driverless, autonomous driving. Tokyo hopes to provide driverless taxis in time for the 2022 summer Olympics and has been running a pilot project between the central railway station and a popular city entertainment district. For now, cabs along the fixed 5.3km route must carry a driver in case of emergency, but planners hope to start changing that soon.

A number of private companies are testing flying cars and taxis – there’s an experimental service in New Zealand, and Uber plans to open a Paris hub by 2023 – but this is thought to be the first time a government has declared its intention to bring the concept into the transport mainstream.

The Olympics deadline gives Japan a fixed start date. In many cases, however, motor and technology companies are rethinking their autonomous deadlines.

In part, this is because safety and application issues are proving more complicated than expected.

While it leaves the ‘how’ to the experts, the Japanese government says its contribution will be ‘to provide

This year, a self-drive Uber test-car in the US hit and killed a woman as she crossed the road at night. The more rabid

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supporters of autonomous technology have blamed her, because she was not on a pedestrian crossing, and argued that pedestrians all over the world must be retrained for an autonomous world.

Backlash against this suggestion has been fierce – particularly after a preliminary post-crash investigation found the Uber’s sensors had failed to identify the victim as a human – and there have been calls for testing to slow while more safety features are developed. The overriding view is that companies must develop vehicles for the world as it is, not as they would like it to be.

A survey this year found that 73% of Americans would be afraid to travel in self-driving cars. In another survey, 75% of respondents said vehicles needed intensive in-town, real-world testing before they could be considered for daily use. But 54% of them said

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the testing should take place nowhere near where they live.

But it’s not just about safety. There’s also cost. Research and development bills are plunging participants into ever-deepening money-pits from which there seems to be no early escape.

That’s why BMW is reported to be creating a consortium to share the pain. Magna, Fiat Chrysler and automotive suppliers Delphi and Continental are understood to be interested, as well as autonomous technology specialist Mobileye. BMW board member Klaus Froehlich says some ride-hailing companies may also join.

BMW is already co-operating with arch-rival Mercedes-Benz on some mobility activities, and now Honda has decided to work with General Motors on self-driving technology.

And there’s a new player in the game. After UK vacuum cleaner company Dyson said it wanted to build electric cars containing autonomous technology, Swedish furniture company Ikea is also dipping in its toe. Following the acquisition of a number of technology companies, it says it wants to get involved in the interior design of autonomous vehicles. A self-driving bed, anyone?

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

NOVEMBER 2018

33

TECH TALK

There’s more to lubrication than supplying enough oil The aim of lubrication is to reduce friction says Jake Venter

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hen two surfaces slide over each other the resulting friction wastes a lot of energy, and this shows up as heat.

The resistance to motion is usually expressed as a frictional coefficient, calculated by dividing resisting force F by the vertical contact force R between the surfaces. In symbols this would be µ = F/R where the Greek letter mu (µ) is the coefficient of friction. F is usually less then R, so that µ usually has a value less than one, but in the rare cases when F is bigger than R then µ takes on a value bigger than one. The type of lubrication that exists between sliding surfaces that are in contact can be classified as either boundary, mixed, or hydrodynamic.

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Boundary Lubrication A combination of low rubbing speed (the relative speed between the surfaces) high pressure and a low lubricant viscosity usually results in boundary lubrication.

There is some contact between the surfaces, and the coefficient of friction will be high even on smoothly machined surfaces. Such surfaces always contain small irregularities whose size depends on the machining process as well as the length of time that the surfaces have been rubbing together. A runningin process has to be followed on a new engine to reduce the size of the irregularities and so reduce the friction. A high µ value will result in a loss of power as well the development of excessive heat.

This kind of harmful lubrication exists especially between the pistons, their rings and the cylinder wall when an engine is started from cold. There is usually not enough oil under these conditions. A cylinder wall relies for lubrication on the oil that splashes around while the engine is running, and most of this drains away while the engine is stationary.

A good lubricant should fill the spaces between the irregularities, cling to the metal surfaces, but not be so viscous that the oil molecules separating process (called shearing) that takes place while the pistons move, results in excessive friction. This quality is called oiliness. The limited amount

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Experiments in the early 1880s showed that the oil pressure in a bearing subjected to this kind of lubrication is not only greater than the pressure delivered by the oil pump, but also much larger than the expected pressure due to the load on the bearing. Osborne Reynolds, who spent most of his life studying fluid dynamics, was intrigued by this phenomenon, and published the accepted explanation in 1886.

of lubrication that does take place on a nearly dry cylinder wall is due to the oil molecules, as well as the molecules of some of the additives being attracted electro-statically to the metal surfaces. In this way, very thin oil films not more than two molecules thick may be formed. This will reduce friction and wear, but may not totally prevent metal-to-metal contact.

Modern oils also contain anti-wear compounds that react with metal surfaces to form a protective layer, as well as extreme pressure additives that contain phosphorous and sulphur which are able to react with the metal to form a slippery coating.

On an engine running at normal operating temperature (90 to 110 C), boundary lubrication often exists for milliseconds at a time at top and bottom dead centres while the pistons comes to a stop, and change direction by 180 degrees.

Mixed Lubrication Boundary lubrication transforms into mixed lubrication as the rubbing speed increases. The moving surface tilts upwards very slightly in the same way that a motor

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boat lifts its head when it is speeded up.

The result is that an oil wedge is formed between the surfaces, and this results in extra pressure being created in the oil that is usually strong enough to lift the moving part further away from the stationary part. The surfaces very seldom touch now. The viscosity of the oil now plays a greater role than the oiliness, leading to a type of mixed lubrication that result in a decrease in friction. This type of lubrication is usually a temporary state of transition between boundary and hydrodynamic lubrication.

Hydrodynamic Lubrication If the rubbing speed increases further, or the lubricant viscosity increases, or the pressure between the surfaces decreases, the lubrication will change from boundary (thin film) to hydrodynamic (thick film).

This is typically what happens when a shaft turns in a plain bearing shell that is fed by a stream of oil under pressure. The result is a sharp reduction in friction. The layer of oil now fully supports the shaft as well as the load on it. The oiliness of the lubricant has lost its importance, but the viscosity is now of prime importance.

The above figure (from left to right) shows what Reynolds found: • When the shaft is at rest, the highest pressure and the thinnest oil film is directly underneath the shaft centre.

• As the motion starts, the friction due to the existence of only boundary lubrication causes the shaft to roll up the incline formed by the bearing shell in the direction shown to a position that is determined by the limiting friction force. This shifts the area of the highest pressure and thinnest oil film in the same direction.

• As the shaft speed increases, a wedge is formed, and this lifts the shaft away from the journal. This is the start of hydrodynamic lubrication that ensures no metal-to-metal contact takes place.

• The friction between the shaft and the oil now transports the highpressure area and the thinnest film in the direction shown until it gets to an equilibrium position on the other side of the vertical centreline where it stays as long as the engine runs.

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TECH TALK The position of this area of high pressure is determined by engine speed, the load on the bearing, oil viscosity and oil temperature. The pressure in the oil at this point, generated by the hydrodynamic action, is often far higher than the oil pump pressure and can easily exceed 100 bar (10 MPa). The result is that the oil pump is only needed to supply enough oil to make up the losses incurred due to oil leaking out of the ends of the bearing housings. Hydrodynamic action will supply the pressure needed to guarantee that proper lubrication will take place.

Elasto-Hydrodynamic Lubrication (EHD) Lubrication of roller and ball bearings has taken a long time to sort out. When one part rolls over another, the lubrication requirements are not the same as in the case of sliding. The contact areas would seem to be a point in the case of a ball bearing and a line in the case of a roller bearing, but this is not quite true. Tests have shown that the load on the bearing distorts the ball or roller, as well as the track, by an exceedingly small amount.

This changes the contact area of the mating surfaces from practically zero to a very small area, while the contact pressure is extremely high. Under these conditions the lubricant, which is drawn into the contact area by hydrodynamic forces, thickens to become putty-like. This thick layer between the deformed surfaces is responsible for the lubrication, which is called elasto-hydrodynamic.

Summary Dr John Evans of the Wearcheck division of Set Point Technology, has suggested the following analogy to explain the different kinds of lubrication. Consider a car being driven on the road under different conditions. When the road is dry, the friction between the tyres and the road will be at its maximum. If the brakes are applied, the stopping distance will be the shortest while tyre wear will be at a maximum. This equates to no lubrication at all.

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If there has been a light shower leaving a damp surface and some puddles, there is not enough water on the road to lift the tyres but enough to prevent maximum contact between the tyres and the road. This is boundary lubrication.

Tyre/road friction will be less so that stopping distances will be increased and tyre wear will be lessened.

Hard braking on road that’s flooded after a downpour may promote aquaplaning with a loss of control and vastly increased stopping distances. This is hydrodynamic lubrication. The total weight of the car is supported by the layer of water between the tyre and the road.

Bearing Materials A great deal of engine wear takes place just after an engine starts. To counter this wear, crankshaft journals are surface-hardened so that the abrasive particles are less likely to do any damage. Bearing shells, which are relatively easy to replace, have a soft top layer to ensure that they are able to absorb the small particles of dirt that are almost impossible to keep our of an engine.

This property, called embeddability, belongs to materials such as lead, tin, zinc, or their alloys. The shells cannot be made of only these materials because they’re too soft to take the maximum load on the bearings.

A typical bearing shell consists of a steel backing covered by two or more layers of material that decrease in strength and hardness the closer you get to the top surface.

The steel reinforcing enables the soft top layer to take the full bearing loads without distortion. This layer is so thin that the pressure required to spread it is far above any working pressure it will experience.

This principle can be illustrated by clamping some plasticine in a vice between two blocks of wood. When you apply pressure most of the plasticine will squeeze out, but no matter how much pressure you apply, some plasticine will always remain between the blocks of wood.

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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LABOUR

What to know about

blowing the whistle Protected disclosures, more commonly referred to as whistleblowing in the workplace, is not a new concept. However, they can be extremely debilitating

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n employer will most likely be faced with whistleblowing during their tenure as Employer. It is, therefore, imperative that the employer, as well as the employee, understand and appreciate the responsibility and requirements imposed on them respectively by the applicable law providing for protected disclosures.

Section 187 of the Labour Relations Act deals with automatic unfair dismissals.

Section 187 (1)(h) of the LRA deals more specifically with the dismissal made by an employee in terms of the Protected Disclosure Act. A dismissal of an employee pursuant and as a result of a protected disclosure(s) will be regarded as automatically unfair. In such circumstances the employee will, after conciliation, be permitted to approach the Labour Court for the appropriate relief. Notionally, the employee may

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be awarded compensation equal to 24 months salary, if successful.

The Labour Relations Act is not the only Act which provides for protected disclosures. The Protected Disclosures Act, 2000 (Act 26 of 2000), hereinafter referred to as “the PDA”, aims to design the mechanisms and processes concomitant to such disclosures. The Act places certain obligations on both the employer and employee. Neither the employer, nor the employee can simply remain silent on any criminal or irregular activity within the workplace. The employer is further required that an employee who blows the whistle is protected from any disciplinary action being taken against him/her as a result thereof.

The PDA’s purpose is to provide the employer and employee with the relevant

procedures to follow in reporting irregularities, and to provide relevant protection to the whistleblowers. It sets out the procedure in which an employee may report the irregular or criminal activity of the employer and/or fellow employees. Relevant and necessary protection is provided to the employee making the disclosure in line with the guidelines set out by the Minister of Justice and Constitutional Development.

It is essential to understand the prescriptions of a protected disclosure.

Section 1 of the PDA defines such disclosure. It is defined as follows: (1) “Disclosure means any disclosure of information regarding any conduct of an employer, or an employee of that employer, made by any employee who has reason to believe that the information concerned shows or tends to show

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one or more of the following: (a) A criminal offence is committed or likely to be committed; (b) A Person is failing, or is likely to fail, to comply with any legal obligation; (c) Miscarriage of justice is occurring, has occurred or is likely to occur; (d) Health and Safety endangerment of the individual; (e) Damage to the environment; (f) Unfair discrimination in terms of the Promotion of Equality and Prevention of Unfair Discrimination Act; (g) That any of the above is concealed, or will likely be concealed.”

The Act sets out the manner in which the disclosure should be made. A disclosure can be made to the following persons: 1. A legal Advisor; 2. An Employer; 3. Member of Cabinet or Executive Council; 4. Certain persons or bodies; or 5. Any other person under certain circumstance.

However, in terms of amendments to the PDA, an employee is required to act bona fide when the disclosure is made. The disclosure should also be made in accordance with each listed categories’ requirements in mind. The PDA further provides for a sanction of a fine or imprisonment for employees that do not act in good faith towards their employer when making the disclosure.

Typically, disclosures made with the hope of personal and/or financial gain, would constitute bad faith disclosures.

An employee may not be subjected to an ‘occupational detriment’ in circumstances where a disclosure is made in terms of - and in line with - the prescripts of the PDA. An ‘occupational detriment’ occurs when the employee is: a) Subjected to disciplinary action; b) Dismissed, suspended, demoted harassed or intimidated; c) Transferred against his/her will; d) Refused transfer or promotion;

e) Subjected to a term or condition of employment or retirement which is altered or kept altered to his/her disadvantage; f) Refused a reference. Given an adverse reference; g) Denied appointment to any employment, profession or office; h) Threatened with the above actions; or i) Being adversely affected in respect of employment, profession or office, including opportunities and security.

Section 4 of the PDA sets out the remedies that are to the disposal of the employee should he or she be subjected to any of the above occupational detriment. The employee may approach any court that has the necessary jurisdiction – including the Labour Court – or may pursue any other process permissible by law.

In the matter between Kabe vs. Nedbank LTD, the Labour Court was required to determine whether the employee was automatically unfairly dismissed. In this matter the employee alleged that she was dismissed based on protected disclosers made and that it was the true reason for the dismissal. It therefore rendered her dismissal automatically unfair in terms of the LRA, section 187. The Respondent argued that the employee was dismissed for misconduct and not for protected disclosures. The employee had to produce credible evidence indicating that she was subjected to an automatic unfair dismissal before it became obligatory for the employer to prove that the dismissal was not for a prohibited ground. The failure of the employee to produce credible evidence in that regard resulted

in a court order of absolution from the instance. The court further held that where a referral was made vexatious, a cost order would be appropriate and consequently made a cost order.

It is imperative that employees appreciate and are cautioned that they guard against making vexatious - or otherwise - disclosures for ulterior purposes. It seems as though the legislator clearly intended to strike a balance between the possible proprietary harm that may be suffered by an employer and the rights of an employee who unlawfully conducts him or herself towards an employer in this regard. Destructive conduct by employees in these circumstances should be discouraged at all times.

The employer, on the other hand, should refrain from acting against an employee for making protected disclosures, and should offer the employee the necessary protection as envisaged by law. The employer needs to ensure that the action taken against the employee stems from misconduct as opposed to the act of whistleblowing. Protection is afforded by the law to both the employer and employee.

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

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LEGAL EAGLE

Contracts: The Link between Cause of Action and Jurisdiction Going back to basics with regards to contracts, the prerequisites for a contract to be valid appear to be simple, and the remedies apparent. However, when it comes down to enforcing the contract or implementing remedies, there is more than meets the eye

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egal proceedings by the aggrieved party to enforce remedial action must be instituted in a forum with jurisdiction to adjudicate thereon. A court will have jurisdiction if the defendant (party against whom the proceedings are instituted) either resides or carries on business in the court’s area of jurisdiction, or if the whole cause of action arose within the court’s jurisdiction.

If the aggrieved party is situated in Cape Town, for example, and the party against whom the aggrieved party institutes proceedings is situated in Johannesburg, the aggrieved party will have to institute proceedings in a court in Johannesburg, unless that party can prove that the whole of the cause of action arose in Cape Town.

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In order for a court to have jurisdiction on the basis that the whole cause of action arose within its area of jurisdiction, the aggrieved party must prove that the contract was entered into in that jurisdiction, performance had to take place in that jurisdiction, and the breach of contract took place in that jurisdiction.

If the contracting parties conclude the contract in each other’s presence (inter praesentes), it is effortless to establish the place of conclusion. With regards to the ‘place’ where a contract is concluded, the general rule that has crystallised in South African law is that the area where an offer was accepted is deemed to be the place where the contract was concluded. For example, if the offer was made (by the offeror) and accepted

(by the offeree) in Cape Town, then the contract was concluded in Cape Town.

However, in modern times technology and telecommunications have drastically replaced the traditional inter praesentes approach for concluding contracts. Contracting parties rely on the convenience of reaching an agreement via a telephone call, an email or by post. This inter absentes approach is mostly relevant where the contracting parties are not in the same area when the contract is concluded. These circumstances may appear to be convenient. However, when it comes down to determining jurisdiction the contracting parties often find themselves between a rock and a hard place.

Where, for example, the offeror is situated in Cape Town and the offeree is based

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in Johannesburg, the question arises whether the contract was concluded in Cape Town or Johannesburg.

If an offer is made by post (by sending a proposal letter), the contract is deemed to be concluded in the place where acceptance of the offer was affected. Against the background of the abovementioned factual setting, the offer would have been posted from Cape Town to Johannesburg. If the offeree responds to the offer by sending an acceptance letter to the offeror, then the contract would be deemed to have been concluded in Cape Town upon the acceptance letter reaching the offeror.

In contrast to the above, a different approach is upheld when a contract is concluded by means of a telephone call. In the case of Tel Peda Investigation Bureau (Pty) Ltd vs. Van Zyl (4) SA of 1965 the question of where the cause of action (breach) arose and which court should have jurisdiction was scrutinised.

In this case the Defendant (offeror) was based in Johannesburg and the Plaintiff (offeree) was based in East London when the parties concluded a contract over the telephone. According to the facts at hand,

the Defendant was in breach of contract – therefore the Plaintiff proceeded to sue the Defendant in East London (due to the fact that it was of the view that the cause of action arose in East London). However, the Defendant made the averment that the court in East London did not have jurisdiction to hear the matter, due to the cause of action not wholly arising in the East London court’s jurisdiction.

Section 28(1)(d) of the Magistrates Court Act provides a court will have jurisdiction in respect of any person, whether or not he resides, carries on business or is employed within the district, if the cause of action arose wholly within the district.

The phrase “cause of action” is described as every fact which is material to be proved to entitle the plaintiff to succeed and every fact which the defendant would have the right to traverse.

In this case the Defendant filed a special plea claiming lack of jurisdiction. The Defendant argued that the contract came to existence in Johannesburg as opposed to East London (in which event the Johannesburg court would have jurisdiction). The special plea did not succeed in the Magistrates court,

as the court was of the view that the Plaintiff accepted the offer in East London and therefore the cause of action arose in East London.

The Defendant appealed against the Magistrate’s finding and the Appeal court subsequently overruled the Magistrate’s decision, finding that where a contract is concluded by means of a telephone call, the acceptance of the offer instantly becomes known to the offeror (over the telephone), hence the contract is concluded in the area where the offeror is based at that point in time. The Appeal court found that the contract has indeed been concluded in Johannesburg and the special plea should have been upheld.

When one considers all of the above, it is clear that contracting parties should be vigilant with regards to which area and/or court would have jurisdiction in the event that a cause of action arises. If the parties are clear on where the contract was concluded, where the cause of action arose and which court has jurisdiction then the litigation process on a breach of contract becomes streamlined.

Chantal Smith is a candidate attorney at Barnard Incorporated in Centurion. RMI4Law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4Law, call 0861 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

Time to go back to WERC South Africa’s Engine Remanufacturers’ Association (ERA), a constituent association of the Retail Motor Industry (RMI), has been instrumental in the relaunch and leadership of the world-body WERC (the World Engine Remanufacturers’ Council) the new trends that disruptive technology is bringing into the engine rebuilding business,” explains Mac NICOL. South Africa is represented strongly on WERC, with Mac NICOL being elected Chairman of WERC and two other ERA delegates - Thys Van Eck (ERA Western Cape Committee Member) and Attie Serfontein (RMI REMAN Cluster ERA SADFIA ACRA: Director) - elected as WERC Secretary.

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The new grouping is a more manageable group of countries than its forebear, currently made up of South Africa; Europe (FIRM); the US and Canada (AERA); Latin American countries Brazil, Argentina, Colombia, Ecuador, Mexico, Chile, Guatemala; Australia and New Zealand, but there are plans to invite other countries such as China, Russia and Panama in the future.

In a meeting held in Bad Boll, near Stuttgart, on 13 September, representatives from over 12 countries revived WERC. “The re-establishment of WERC is significant,” says ERA National Executive Committee Chairman, Frank Mac NICOL, “as it allows our industry to share global best practices and give the Engine Remanufacturer Trade Sector a unified voice in trade and industry matters. The purpose of WERC is in fact to create a world alliance of independent engine rebuilders in search of excellence in their work, better profitability, and greater awareness of

Mac NICOL adds: “WERC will be of great benefit to all member countries involved by building better international relations and by stimulating collaboration. At ERA, for instance, we will enjoy improved upskilling, while also lending a hand in assisting other countries overcome their industry issues.” What was previously missing was active engagement between members, but Mac NICOL points out that since then social media technology had facilitated ease of engagement. Under the new arrangement, WERC members would come together daily, using the expedient of WhatsApp, to meet and share ideas and information; to provide feedback on ongoing issues, and to raise trade sector specific concerns.

ERC was initially formed in London during 2007, but lost momentum over the years until the various country bodies re-established contact at this year’s Automechanika Frankfurt motoring exhibition.

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Frank Mac NICOL

Jakkie Olivier, CEO of RMI, says this is great news for engine rebuilders around the world, and fully supports the newly-established WERC. “Only through collaboration and communication can we fully grow our industry. Knowledge sharing is paramount, and this body has opened the door to ensure this happens across countries.”

WERC´s comeback happened during Automechanika Frankfurt, where an event called Mobilatina brought together a wide group of engine rebuilders from Latin American countries led by CONAREM, the National Brazilian Engine Rebuilders Council. Almost 60 representatives of Argentina, Chile, México, Equator, Colombia, Guatemala and Brazil had the opportunity to network with members coming from Spain, Europe, the US and South Africa.

Among the issues that WERC intends to address are: • Exchange of information among members regarding specs and hard-to-find parts; • Establishing links for common purchase of parts and equipment at discounted prices; • Research on new technologies, including hybrid, gas and electric conversions, as well as disruptive technologies; • Establishing agreements regarding on-site training opportunities in Europe and the US; and • Supporting world conferences during relevant events.

“It is of a critical nature that all committee members participate in the WERC concept, and help keep it alive by moving forward and speaking as one voice so we can grow from strength to strength,” concludes Mac NICOL.

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RMI UPDATE

RMI Mobile app on track

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lans for the launch of RMI’s new mobile app are well on track and testing is going well.

The app, aimed at connecting consumers to accredited RMI members, will most likely be available to motorists during the second week of December.

The app will assist motorists in finding an accredited service supplier in the category of service required closest to them via GPS or in the region of their choice. It will provide the motorist with full contact and address details as well as any service or product specials.

From a customer service point of view, RMI members will be able to use the app to find compliance documentation; to market their products and events; for training purposes; to connect with other RMI members, and to access up-to-date RMI news.

“We have also included a section where motorists can log a complaint if they are unhappy with any element of the service they receive, or to report a supplier claiming falsely to be an RMI member,” says Jakkie Olivier, CEO of the Retail Motor Industry Organisation (RMI).

“RMI members are skilled automotive professionals who adhere to a strict code of conduct, so when using RMI-accredited businesses, consumers can be assured of value for money – competitive pricing, quality work and recourse for complaints. Our app will take the guesswork out of locating a good partner for your vehicle care, and will seamlessly connect you to your closest RMI member,” concludes Olivier.

MOTORING DATES TO DIARISE November 3 November 4

November 10

Historic Tour, Red Star Raceway, Delmas, MP Killarney Motor Show, Killarney Raceway, Cape Town, WC Extreme Festival, Zwartkops Raceway, Gauteng

November 10 Regional races, Dezzi Raceway, Port Shepstone, KZN

November 12-13 Fairest Cape Tour, Goudini Spa, WC

November 17

November 17

Regional races, Scribante Raceway, Port Elizabeth, EC Inland Championship, Red Star Raceway, Delmas, MP

November 24-25 WRX World Rallycross Championship, Killarney Raceway

November 24 Regional races, East London GP Circuit, EC

November 25

December 1-2

SA Historic Grand Prix Festival, East London, EC

December 1

December 15

Motor show, Prince Alfred Hamlet, WC

SA Historic Grand Prix Festival Display, Val de Vie, WC Border 100 races, East London GP Circuit, EC

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RMI UPDATE

Partinform visits Kimberley

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he town of Kimberley hosted the final Partinform event for 2018 at the Horseshoe Inn, with more than 113 automotive business owners attending the event which was a great success.

event, was Joanna Diederiks from Silverton Solutions in Hartswater.

attention, with visitors asking many questions about the organisation and the benefits of belonging to the RMI.

Great interest was shown at various stands with members answering questions about brands’ products.

Partinform members went to great lengths to insure that their stands were attractive and well laid-out. The judges hard a time deciding on the best stand of the evening, but the honours eventually went to the GUD stand.

The shows continue to be popular with the automotive community and are seen to be informative, with the focus on promoting the advantages of using quality brands in maintenance, service and repairs.

The evening quiz show was, as always, great fun as contestants were asked questions about brands and products on display. The winner, who will complete at the Xtreme Karting

The RMI continues to support Partinform, and uses the event to inform visitors about the benefits of good quality parts and services.

The RMI stand always attracts

The RMI wishes to congratulate the Chairman, Brian Burns;, Organiser, Charmaine Innes, and Deon De Kock from Bosch for all their hard work during the course of the year.

SKF stand

Brian Burns, Chairman; Joanna Diederiks, winner of the Xtreme Karting competition; Reemo Swartz, MIWA Representatives Bloemfontein and Charmaine Innes, Organiser

RMI stand

Mark Erasmus, RMI Administrator Bloemfontein and Reemo Swartz, MIWA Representative Bloemfontein

GUD stand

44 - NOVEMBER 2018

Attendees take part in the very popular quiz show

www.automobil.co.za

Driven by

EXPERIENCE

Theory seamlessly translated into practice.

With know-how from Bosch, fit for the future. www.bosch.co.za

What drives you, drives us.

TRAINING

The RMI continues to invest in training Development is a strategic priority of the Organisation and is a critical core activity for the RMI and its associations

D

ue to the dedicated efforts of the RMI National Executive Training Committee and training department a tangible difference can be seen in activities put in place to address the extensive training needs of our members. There is still a great deal of apathy from some employers with regards to participation and investment in the development of their employees. Hopefully the recently developed Return on Investment Calculator funded by merSETA and adapted to South African workplaces by the Institute of the Motor Industry in the UK will assist to convince employers to take in apprentices.

The ROI apprentice calculator covers

46 - NOVEMBER 2018

three trades, namely Automotive Motor Mechanic, Vehicle Spray Paint and Motor Body Repair.

The RMI had a stake in convincing national Treasury to extend the Employment Tax Incentive Scheme as well as SARS Tax Rebates for Training.

The merSETA grant contributions were also adjusted upwards.

The RMI was awarded the role of Occupational Team convener for both the Automotive Motor Mechanic and the Diesel Mechanic trades. Following site visits in the third quarter of 2017 and recommendations, Minister Blade Nzimande appointed the

College of Cape Town and the Port Elizabeth College as TVET colleges for the Automotive Motor Mechanic trade, Mopani South- East TVET College (Phalaborwa) and ORBIT TVET College were appointed for the Diesel Mechanic trade along with the Centre of Specialisation status.

The merSETA Accounting Authority (AA) was re-established earlier this year. The RMI President, Jeánne Esterhuizen was elected as the Vice-Chairperson. Following the re-establishment of the AA, the RMI National Executive Training Committee (NETC) received notice of the formal re-establishment of structures at the

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merSETA. Nominations, from the ranks of the RMI were submitted to serve on the merSETA Motor Chamber while the petroleum retailers are housed in the W&R Seta.

International training collaboration by the RMI and its Associations with the UK, Spain and USA took place during the past year. Artisan Development as a strategic priority became so important that the International Labour Organisation represented by Business, Government and Labour established a dedicated body to address this particular skills crisis across the world.

The RMI Training Department extends appreciation to RMI CEO and senior management members, associational directors, support staff, the members of the RMI National Executive Training Committee (NETC), industry skills providers, Government Departments, SETAs and members in regions across SA. The Training Department look forward to the year that lies ahead and changes that can be affected in the lives of employers, staff and new entrants into the motor industry.

www.automobil.co.za

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TRAINING

THE CHALLENGE: Mastering new technologies

B

osch's knowledge and experience is unique. For more than 125 years Bosch has been working for the automobile industry, and today is one of the preferred suppliers of equipment, components and systems for many of the leading manufacturers worldwide. This expertise has provided Bosch with in-depth knowledge of the latest technologies that serves as the basis for Bosch support.

Improving service quality and accelerating processes The current training offer and the Technical Hotline supports you in localising problems faster, repairing more vehicles, and reducing the waiting time of your customers.

Furthermore, the methodical procedures that you learn in this regard ensure faster and more productive work.

Bosch training series: Specially designed training programmes can offer employees in your

48 - NOVEMBER 2018

workshop real perspectives for further professional development. u u u u u u

Bosch Automobile service consultants Bosch diagnostic technician Bosch diesel vehicle technician Bosch diesel pump technician Recognized vehicle service technician Bosch electrical systems technician

With the new developments in the area of vehicle technology, the requirements on the technical knowhow in workshops are constantly increasing. In order to stay up-to-date, the workshops require structured training management and continual education management. With the technical and commercial training courses from Bosch, a wide variety on offer of continuing education possibilities is available for workshops.

The content of the training courses is constantly adapted to the latest state of technology; thus you will always find the right training for your workshop.

There are suitable training courses for every target group. The offering includes one-day training courses and training courses over several days.

The training courses are offered in different technical areas and training series, (such as gasoline injection, diesel injection, electrical systems).

In the technical training courses, Bosch imparts extensive know-how in all standard vehicle systems in the passenger vehicle and commercial vehicle areas. In addition to vehicle systems from Bosch, systems from other manufacturers are discussed in the training courses - the content is specially matched to the requirements of workshop employees.

Develop your technical skills through Bosch training to help safeguard your future. Visit www.bosch.co.za for more information.

www.automobil.co.za

www.automobil.co.za

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Online modules:

What is

Technica?

Designed to meet the automotive aftermarket’s requirements, this new interactive automotive training program introduces learners to the principles and applications of automotive repair.

It equips the learner with a complete set of easy-to-use course materials. This innovative resource serves as an excellent supplement

• Alternative Fuels • Automatic Transmissions • Braking Systems • Charging Systems • Clutches and Manual Transmissions • Cooling Systems • Diesel Fuel Systems • Electrical Principles • Emission Control Systems • Engine Rebuilding • Final Drives and Drive Shafts • HVAC Systems • Ignition Systems • Intake and Exhaust Systems • Lighting Systems • Lubrication Systems • Peripheral Electrical Systems • Petrol Fuel Systems • SRS Safety Systems • Starting Systems • Steering Systems • Suspension Systems • Wheels, Tyres and Alignment • Workplace Communications

to other training programs, or can be used as a primary training solution for learners in the

A range of automotive textbooks available.

work environment.

CBMT Compliant

POWERED BY A Division of Imperial Group Limited

CH6790

For more information, call us on (011) 879 6021 or email andrewm@aaas.co.za 50 - OCTOBER 2018

www.technica-online.com

www.automobil.co.za

TRAINING

Jaguar Land Rover SA’s apprentice training programme wins award The British Department for International Trade (DIT) has presented its annual Board of Trade Award to Jaguar Land Rover South Africa for its outstanding work in learning and development for the motor industry.

T

he award, which was handed over at a ceremony attended by Theresa May this week by UK Minister of State for Trade Policy, George Hollingbery, recognises Jaguar Land Rover South Africa’s apprentice recruitment and training programme, and its successful addressing of the national shortage of qualified technicians who can work on today’s hightech vehicles.

“Jaguar Land Rover South Africa is a great example of a company promoting excellence in business, and is therefore the perfect recipient of the first international Board of Trade Award, striving to meet the modern needs of business,” said George Hollingbery, International Trade Minister “Driving innovation, this award recognises the excellent work undertaken by the company as it looks to the future, training the next generation of skilled technicians through its state-of-the-art apprentice and training programme.” he said Since 2015, Jaguar Land Rover South Africa has inducted 62 apprentices into its training programme, and 14 recruits from the first intake in 2015 went on to qualify as technicians and were absorbed into the Jaguar Land Rover retailer network. A total of 48 apprentices recruited in 2016 and 2017 are currently enrolled in the programme and are expected to graduate in 2019 and 2020 respectively.

www.automobil.co.za

The apprentices are sourced through a series of Recruitment Roadshows that visit schools across the country to create awareness for soon-to-be graduates, on career opportunities in the motor industry.

Applicants are required to have successfully completed matric with maths and science.

Each accepted apprentice works under the supervision of a mentor technician at various Jaguar Land Rover retailers nationwide. Every apprentice is employed

by Jaguar Land Rover and receives a salary for the duration of the three-year programme. Students complete both the formally recognised merSETA qualification as well as the Jaguar Land Rover Apprentice Learner Journey, which is a more extensive curriculum and prepares the young future technicians for the most advanced technologies in modern vehicles.

Jaguar Land Rover South Africa’s objective with the training programme is to continually foster the next-generation of world-class technicians, which will in turn help ensure customer peace of mind when vehicles are in for services or repairs at its network of state-of-the-art workshop facilities.

“We are delighted that the British Department for International Trade has recognised our apprentice training programme. Developing technical skills in the motor industry is a responsibility Jaguar Land Rover takes very seriously, and while we are all honoured to accept this award, watching our young apprentices grow into qualified technicians is reward enough,” said Richard Gouverneur, Managing Director of Jaguar Land Rover South Africa and sub-Sahara Africa The Board of Trade Awards are internationally recognised and awarded annually to businesses it feels deserve special recognition for their role within respective communities. Jaguar Land Rover South Africa’s commendation is the first time the DIT has given the award outside of the UK. Award recipients are nominated and selected by Civil Servants from the British Department for International Trade.

The Department for International Trade works with thousands of businesses, and celebrates those that show exceptional innovation and deliver prosperity to their local communities.

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52 - SEPTEMBER 2018

www.automobil.co.za

TRAINING

Empowering workshops with training The bilstein group is a family-run and owned company in the 7th generation. The company was founded in 1844 and serves as the umbrella for the product brands febi, SWAG and Blue Print

I

n our ever-changing and evolving automotive aftermarket, the emphasis on training has never been stronger.

Long gone are the days of purely relying on ‘on the job training’ for apprentices.

The modern apprentice needs a detailed and structured progressive training plan to evolve into a high-tech diagnostic fault-finding technician. With the era of hybrid, full electric and self-driving vehicles upon us, the technician will spend a lot more time in the classroom than ever before in order to be able to deal with the complexities of the high-voltage systems deployed in these vehicles.

We live in a very fast-moving world, and the independent aftermarket, especially at workshop level, will have to learn to adapt to new and improved maintenance and diagnostic procedures on a continual basis, or they will simply be left behind. Extensive training is the only way to stay with the changing tide.

Training is not only of utmost importance to the technician, but even more important to the business owner. Proper training will lead to faster growth, lower costs and higher customer satisfaction, resulting in more turnover and better profit margins.

More and more workshops are adopting the ‘active reception’ concept where the technician or foreman actively engages with the customer when the vehicle is booked in for service or repairs. This is where the customer will get a first impression of the workshop and can evaluate the competence of the staff.

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A technically competent technician will win the trust of the customer, whereas a technician that appears uncertain and uneducated will quickly raise suspicion in the customer’s mind and prompt the idea of taking his vehicle elsewhere.

The problem in many of the informal independent workshops is that the owner will often recruit cheap laborers, show them how to remove and refit parts, but never actually teach them the inner workings of specific articles or how they interact with other parts in the vehicle.

The result is often unmotivated staff and little, if any, growth in the business.

On the flip side, a technician or apprentice that attends regular updated training will constantly add value and not shy away from taking on new challenges when it comes to diagnostic faultfinding and repairs on newer model vehicles. The return on investment that training offers is highly beneficial, not only in terms of financial turnover, but more importantly in creating customer satisfaction and loyalty in the long term.

Training should never stop in the workshop. With the modern engine having to comply with stringent emission regulations, the manufacturers constantly aim to deliver more power out of smaller engines, and simultaneously strive to create models that will be more fuel-efficient. The importance of the sales counter staff having sufficient technical knowledge is critical in the success of the retailer.

Modern engines are smaller, more technologically complex and a lot more compact, making access to certain parts more labour-intensive. The impact of this is that many parts of the engine require dismantling before the actual target part can be accessed. Consequently, a parts sales person with sufficient technical knowledge can use this as an opportunity to ‘upsell’ and in doing so, win the trust of the workshop or DIY mechanic on the street. Knowing the part numbers off-hand is an advantage, but knowing their function, how they interact with, influence other systems in the vehicle and what resultant damages could occur if and when they fail, will provide any salesman or retailer an edge over the competition.

Fit for the future Ferdinand Bilstein South Africa has identified the need for training in the South African independent aftermarket.

Their intention is to roll out a structured product training programme in the near future, with the aim of empowering the workshops to deal with the challenges of the future. This training programme will be customised to encompass our unique South African car park.

The extremely diverse independent aftermarket includes many different levels of competence, and one of the main objectives will be to identify what level of training is needed where.

The febi South African team is looking forward to actively engaging with many of their customers in the coming months.

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What is a learnership?

A learnership is a structured learning process for gaining theoretical knowledge through an accredited training provider and practical skills in the workplace, leading to a qualification registered on the NQF. A learnership is outcomes-based and not time-based and allows for recognition of prior learning. Learnership duration varies but the average is about 12 months.

Who is eligible to enter a learnership programme?

Any person, employed or unemployed, may apply to register for a learnership: Ÿ If you are employed, you may register for a learnership programme

within the sector where your company or organisation operates; or

Ÿ If you are unemployed, you may register for placement in a

learnership programme at your local labour centre or with employers in your area.

The Department of Labour refers unemployed individuals, who meet the minimum criteria, to employers looking for learners.

How does one apply for a learnership programme? Ÿ If you are employed, find out which learnerships are available in the

sector in which you work. Upon deciding which learnership programme is appropriate, you will need to enter into an agreement with your employer stating your rights and responsibilities as a learner; or

Ÿ If you are unemployed, you must register your profile at the nearest

Department of Labour office, after which you may be referred to employers who may be looking for learners to enter learnership programmes.

What is an apprenticeship?

WE CARE

It’s about caring for people we render services to

The apprenticeship system is a well-known technical training system, which covers both practical and theoretical components offered in listed trades. Once you have completed your training, you will need to pass a trade test to qualify as an artisan.

WE BELONG

Who is eligible for an apprenticeship programme?

It’s about working together with colleagues

Any South African citizen, 16 years or older. There are different admission requirements for the various trades. Competence in Maths, Science and English will enhance your chances of selection.

WE SERVE

How does one apply to enter an apprenticeship programme?

It’s about going beyond the call of duty

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

an apprenticeship programme; or

w www.merseta.org.za @mersetasocial

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

merSETA Social

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

LEADERS IN CLOSING THE SKILLS GAP 54 NOVEMBER 2018

www.automobil.co.za

TRAINING

Western Cape Maritime Cluster (WCMC) set to promote maritime skills development

A

s a contribution to this year’s Transport Month, the Netherlands Consulate General as a member of the WCMC in partnership with Damen Shipyards Cape Town (DSCT), hosted a Maritime Day last month.

In support of the Operation Phakisa agenda, the Maritime Day seeked to highlight career and skills development opportunities in the maritime sector to underprivileged youth from township schools in the Western Cape. It also hosted a further round of collaboration on the development of the business model for the Western Cape Maritime Cluster.

WCMC also welcomed the Dutch Vice Minister for Foreign Economic Relations, Guido Landheer at the Maritime Day, who was visiting South Africa (SA) as a follow up to the Water Trade Mission that took place at the 2017 Volvo Ocean Race Cape Town stopover.

Landheer also met with various partners and key stakeholders in the maritime sector to build on partnerships that create opportunities for solutions to our country’s mutual challenges.

Fifty high-performing students from the top performing underprivileged high schools in the broader Cape Town area were invited to attend. Together with a tour of the harbour, they attended information sessions and workshops

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run by colleges and tertiary institutes in the sector as well as workshops on the career opportunities for young professionals in the industry.

play a key role in local supply-chain developments and promoting inclusive economic growth,” said Benny Bhali, Executive, Sales and Marketing.

“Maritime Day provided new opportunities for SA’s talented youth population to explore the Ocean’s economy as a part of their professional futures. The Netherlands mission in South Africa recognizes the significant value in investing in skills development and is proud to be a partner in this initiative” says Sebastiaan Messerschmidt, Netherlands Consul General.

Other key participants of the event included STC-SA and the Transnet National Ports Authority. Sponsors of the Maritime Day included the Transport Education Training Authority, Woolworths and Bos Ice Tea.

“We recognise the value of investing in skills and enterprise development within the industry. We are also excited to see developments in the Western Cape Maritime Cluster, which will

The WCMC is a newly constituted non-profit, voluntary organisation that aims to provide support and build a sustainable Western Cape Maritime Industry. The initiative is supported by the Netherlands Government through its national campaign #cocreateSA and the Western Cape Department of Economic Development and Tourism.

NOVEMBER 2018

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Product Range:

Right First Time.

Engine Timing Blue Print provides the automotive aftermarket with over 23,000 high quality parts across 160 product types, including an extensive range of Engine Timing components.

Every Blue Print product is researched, designed and manufactured to meet OE specification and standards, and undergo stringent and regular quality checking.

Filtration

Braking

Clutch

Steering & Suspension

Engine Management

Transmission

Timing Belts & Chains

Cooling

Electrical

Body

Tools

Solutions

Blue Print parts are available in South Africa!

The Blue Print brand is represented locally by: Ferdinand Bilstein South Africa (Pty) Ltd Tel. +27 (0)10 900 4545

Available exclusively through selected appointed distributors

56 - NOVEMBER 2018 www.blue-print.com

www.automobil.co.za

TRAINING

Embracing training as a catalyst for Economic Empowerment Sumitomo Rubber South Africa, manufacturers of the popular Dunlop, Sumitomo and Falken tyre brands, offer a range of training options to staff and to external stakeholders, with a focus on developing an entrepreneurial mindset within its workforce to move the business forward.

C

EO of SRSA, Riaz Haffejee says, “With training programmes that encompass all aspects of the business, the goal of training offered is to cultivate accountability, coaching employees towards greater effectiveness in all they undertake.

By addressing personal responsibility, inspiring others and adding value, employees learn to consider themselves a part of the dynamic and progressive organisation that SRSA represents. It is as much about attitude and values, and not simply having a qualification.”

• One 15-seater Computer Media Zone • An Innovation Zone • A Meeting Zone, and • A Pause Area

SRSA recognises that growing and investing in the skills capacity for the future of SRSA employees and the industry ensures the continued success of the business. Offering accredited qualifications and contributing towards the National Skills Development Programme of South Africa, building capability and thereby addressing the socio-economic imbalances of the country, all further the goals of developing a diverse, innovative learning culture within the organisation.

Advancing skills and developing team players SRSA believes that exposure to learning and development encourages both employees and management to take ownership for their individual growth and that of their teams. Training is offered across all levels of employment, advancing the skills capacity of the company through various programmes and accredited qualifications in five areas of learning.

Dedicated training facilities With Technical Evaluation Centres in all three major centres – Durban, Gauteng and Cape Town, Learning Facilities at Head Office in Durban, Gauteng and at the Ladysmith Factory, SRSA launched its new, purpose-built learning facility in Ladysmith in May 2018.

The SRSA Training facility in Ladysmith offers the following: • Two 30-seater Training Rooms • Two 15-seater Training Rooms

www.automobil.co.za

Training is approached from an holistic point of view, encompassing on-the-job learning, E-learning and faceto-face classroom learning for staff and dealers. SRSA aims to create a vibrant environment where learning is both innovative and fun.

These include: • Sales and marketing • Retail • Technical and production • Leadership and business (including Women in Leadership), and • Services.

Offering no less than eight National Certificate courses ranging from NQF 2 to NQF 4, one Further Education Training NQF 4 programme and one National Diploma NQF 5, the Sumitomo Rubber Learning Academy is widely accredited.

Also on offer are six accredited skills programmes and two additional skills programmes. Certificated courses range from Tyre and Tyre Components to Manufacturing , Engineering and related services to Generic Management training.

There are currently 124 registered tyre learnerships for the 2018 financial year.

Retail training is also offered to both domestic and African partners.

Corporate Social Investment - educational upliftment SRSA spent R1.8 million on family education assistance and employee part-time study assistance from 2014 to 2017. The company’s corporate social investment programme includes various initiatives designed to meet the needs of the local community, focusing on entrepreneurship development, education, skills development and health.

SRSA believes that education and training can act as a catalyst for community development and entrepreneurship, and the company is well positioned as an employer of choice within the automotive industry.

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TRAINING

Do you have the right skills development partner?

M

any companies today are challenged by this question.

What is the impact of skills development in the business and how does this remain sustainable enough to alter employee behaviour? Can the skills development path for my business be effectively sustained and how can the impact be measured?

Do the skills fit my company’s immediate and long-term needs?

HRST is accredited by the DHET and MERSETA, as a skills development provider in the following areas: • Leadership and Sales Programs • Aftersales: Service and Parts Department • Apprentices Recruitment, preemployment assessments and tracking • E- Recruitment (Top Talent) • E-Learning • Gamification • A state-of-the-art conference facility • Business Coaching using Gallup Strenghtsfinder tool • HRST Entrepreneurial Academy (launched in August 2018)

At HRST, these questions have been regularly posed to us. As a human resources business partner and bespoke skills development provider, HRST has been partnering with the automotive and related industries for over 14 years and are a level 1 BBBEE skills development and HR consulting business partner.

Aligned programs: • Automotive Sales & Support Services • Generic and Business Unit Management

• • •

Tyre Sales Qualification Service Advisor skills program Parts and accessories sale program

Our skills development initiatives have been rolled out not only in South Africa, but also across the African continent.

All HRST Programs are offered via classroom interventions with top accredited facilitators, but also via e-learning programs. We have excellent references from top clients, which are available upon request.

For more information or for a free e-learning demo, please do not hesitate to contact us at HR Solutions from Tomorrow on 011 024 4346 or www.hrst.co.za.

HRST is an BBBEE Level 1 MERSETA Accredited innovative training and HR company that has recently launched two exciting portals to assist companies and individuals with recruitment and training needs. Our e-learning portal is accessible worldwide and offer a variety of Motor industry and leadership.

Top Talent Top Talent is an online portal that puts you in charge of recruitment within your business.

This portal offers a variety of vetted candidates in various positions. With a click of a button you are able to select the talent that is needed in your company. Easy selection and interview process and placement.

Variety of packages available to suit your companies budget.

58 - OCTOBER 2018

E-Learning HRST offers a variety of accredited and non-accredited online courses for the public and private sector.

-

Road to a Sale

- Service Admin Process - Part and Accessories Sales - Service Management Leadership 1 and 2 - Total Parts Management 1 & 2 - Several Soft skills courses

For further information please contact HRST 011 024 4346 / www.hrst.co.za email: christellek@hrst.co.za for bookings www.automobil.co.za

GAUTENG AUTOMOTIVE LEARNING CENTRE

Please contact the Learning Centre for exclusive rates.

012 564 5000 smvakali@aidc.co.za

For all your automotive industry related training.

We offer merSETA/QCTO accredited training in:

WELDING

AUTOMOTIVE SALE & SUPPORT SERVICES

AUTOMOTIVE BODY REPAIR

SPRAY PAINTING

TRADE TEST PREPARATIONS (ARPL)

AUTOMOTIVE COMPONENTS MANUFACTURING & ASSEMBLY

AUTOTRONICS

MECHATRONICS

The AIDC offers state-of-the-art manufacturing support facilities, to encourage opportunities for Skills Development & Training at competitive rates

CONTACT US FOR www.automobil.co.za

E X C LUSI VE RA T E S NOVEMBER 2018 -

59

INDUSTRY NEWS

Investment needed to LEA keep up with technology DER WE

CA It’s RE: a we bout c ren der aring f serv or p ices eople to

S IN

WE

BEL It’s a with bout w ONG o coll eag rking t : oge ues ther

CLO The relentless march of Industry 4.0 with its Internet of Things, Robotics S and automation are crucial elements of the merSETA strategy, says MerSETAING Chairperson Lebogang Letsoalo Upskilling, reskilling as well as multiskilling of the current work force are required to keep pace with the demands of a technologically disruptive industry and to curtail further job losses.

The concept of just the right amount of education in the current curricula of TVETs will cease as a practice as curricula will have to be rapidly adapted to meet the demand for specialised knowledge.

In addition, workers need to be equipped with skills that allow agility in an ever changing labour market. This emphasises the importance of lifelong learning in a changing world.

The social impact of the technological revolution is heartwarming.

To this end, the merSETA is working on improving its technological interface with training providers, apprentices and learners, developing a tool to assist learners track their progress and achievements through the apprenticeship programme and making the apprenticeship experience more empowering and meaningful for techsavvy youth.

MerSETA Chairperson; Lebogang Letsoalo

I

As the manufacturing world wonders on the impact of Industry 4.0, the vocational and skills development training spheres are lagging behind.

nitial merSETA research has found that significant investments in skills development will be needed across various job categories, particularly in new materials design, electronics and mechatronics, to respond to rapid technology changes.

Lifelong learning is a fait accompli for both young and old. Skills mismatches between labour demand and supply will become a thing of the past as the demand for specialised knowledge grows at faster paces.

Given the country’s producers’ reliance on a large, low-skilled workforce, these job categories will become increasingly vulnerable to disruption, and even displacement.

The TVET landscape will change dramatically with industry demand being the arbiter of the curricula and the knowledge level of student/labour output.

60 - NOVEMBER 2018

THE

SKI

LLS

Logistical and associated challenges will cease to be major challenges The merSETA shows that research into this vital area will yield further positive results for the merSETA sectors.

The merSETA sectors will need to work ever closer with the organisation to maximise this new industrial revolution.

The merSETA is well-placed to unlock and analyse the interconnected web of contextual factors that impact on skills.

WE BUILD THE PEOPLE THAT BUILD THE www.automobil.co.za

merSETA facilitates the training of artisans. This includes:

WE

SER It’s a the bout g VE: call o of d ing be yon uty d

SG

AP

ort 00 9b R hern C a Kim oper S pe Sa t berle tree ellit eO t y, 8 ffice 301 Tel: 0 Fax 861 6 3 : 05 1 44 7 733 7 88 KW 73 A 149 ZULU Ste Essen NATA L w p Mus hen D ood, la Dur grave mini R ban oad , 40 01 Tel: Fax 086 16 3 : 03 1 20 7736 1 87 LIM 32 P MP OPO U & 1st MALA F Rou loor, N NGA Ben te N4 B o.8 Co r Witb Fleur E usines ridor C s resc ank x ent , 10 t 11, Park 40 Tel: 0 8 6 Fax : 01 1 637 7 3 65 3 6 46 5 WE 29 S 5th TERN fl Bell oor, C CAPE a a Bell Rosa tnia Bu a Bell Rosa Office ilding P ville R , 75 oad, ark 30 Tel: 0 Fax 861 6 3 : 02 1 91 7 732 4 81 CAL 31 Tel: L CEN T 0 info 86 16 RE 3 @ www mers 7732 .me eta.o rset r a.or g.za g.za

Trade Test Centre For all your automotive industry related training.

We offer internationally accredited training in:

AUTO ELECTRICIAN

BOILER MAKING

WELDING

FITTING

PANEL BEATING

DIESEL MECHANIC

AUTO BODY REPAIR (PANEL BEATING)

The AIDC offers state-of-the-art manufacturing support facilities, to encourage opportunities for Skills Development & Training at competitive rates.

FOR ANY ENQUIRIES PLEASE CONTACT: www.automobil.co.za

Matsatsi Mphago : 012 564 5000 / ttc@aidc.co.za NOVEMBER 2018

61

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

CITROEN DS5: KNOCKING NOISE FROM RH FRONT OF VEHICLE Problem: We are struggling to find the cause of a knocking noise from the right hand front of a 2013 Citroen DS5 1,6 when driving over rough roads or when cornering.

We have experienced the knocking noise on a road test of the vehicle and we have checked steering and suspension components – all of which seem to be okay. Are you aware of anything that could cause the knocking noise?

Solution: Yes, we are aware of a knocking noise that occurs on Citroen DS5 models equipped with the brand’s 1,6-litre THP engine. It is due to excessive friction in the right hand upper engine mounting. Apply manufacturer’s specification grease, available from the Citroen parts department, to the contact surfaces of the mounting in the areas indicated in Fig.1.1. Carry out road test to ensure knocking noise has been eliminated.

BMW X1: WHISTLING NOISE FROM DOOR MIRROR Problem: We have a 2011 BMW X1 in for service and the customer has complained of a whistling noise from the door mirror area when driving at a constant speed between 60km/h and 80km/h. We heard the noise during road test of the vehicle but, in the workshop, we are having difficulty finding the source. Have any other X1 owners reported this problem?

Solution: Yes, this whistling noise has been reported before on several BMW models produced up to November, 2013. The noise is due to excessive clearance between the door mirror housing and the door mirror upper cover.

Remove the door mirror upper cover. Cut a length of felt tape, available from the BMW parts department, to a width of 9mm. Apply felt tape to the indicator repeater lamp Fig.1.1. Refit the door mirror upper cover. Carry out a road test to ensure whistling noise has been eliminated.

62 NOVEMBER 2018

www.automobil.co.za

www.automobil.co.za

NOVEMBER 2018

63

MEMBERUPDATE

The RMI welcomes these new businesses into membership

A AH Auto Services Atlantis AL Auto Electrical Krugersdorp ARC Automotive Racing Company Port Elizabeth B B M W Centre & Spares Maitland Braz Logistics Pretoria C C&S Diesels Pinetown Car Care Doctor Pretoria E Explotrade Mtatha F Fedauto Heidelberg Heidelberg First Stop Auto Body Springs FST Service and Suspension Bloemfontein G Gearbox and Differential Johannesburg H Halfway Ford Goodwood Goodwood Halfway Ford Waterfall Pinetown Hennie Le Roux Motors Northam Hi-Q Wynberg Cape Town J J&N Auto Clinic Bloemfontein L L&N Autobody Bela-Bela Linex Randburg M Magmaster Cape Town Masheleni Trading and Projects Polokwane Matts Wheelfixit Cape Town Middelburg Tyres Middelburg Mmabo Panelbeaters and Workshop Middelburg Mortimer Toyota Frankfort Frankfort MR Workshop Pretoria N NC Auto Electrical Kimberley Nyiko Motor Repairs Pretoria

P Premium Express Autocare Protyre-Points Queenstown Q QT Performance Queenstown Engineering R Ram Autobody Rileys Service and Repair S Safety Brake & Clutch Samuels Service Centre Shamai Panel Beaters and Projects Sparkling Auto Montana Sparkling Auto Wonderpark Super Tech Service Centre Supertech Pietermaritzburg Supertech Pinetown Sweis Repair and Services T Tip Top Panelbeaters TMT Performance U Unique Auto W Westside Auto WJ Fleet Services WJ Fleet Services WJ Fleet Services

Pietermaritzburg Queenstown Edenvale Queenstown Lenasia Meyerton Randburg Amanzimtoti Pretoria Pretoria Pretoria Bloemfontein Pietermaritzburg Pinetown Durban Kuruman Durban Pietermaritzburg Johannesburg Bloemfontein Olifantsfontein Pretoria

ADVERTISERS AUTOMOBIL - NOVEMBER 2018 EDITION CLIENTS

CONTACT WEBSITE

PAGE

Aer O Cure

011 444 6454

www.aerocure.co.za

OBC

AIDC

012 564 5000

www.aidc.co.za

59 & 61

AutocosmosBiz (Electrolog)

012 327 6210

www.autocosmos.co.za

64

AA Technical College

011 799 1068

www.aa.coza

7 & 52

Ferdinand Bilstein South Africa

010 9004545

www.blue-print.com

56

Robert Bosch

011 651 9600

www.bosch.co.za

17,21 & 45

Gumtree Auto South Africa

011 100 8600

www.gumtree.co.za

31

HR Solutions for Tomorrow

011 024 4346

www.hrst.co.za

58

Intrade Motor Parts - Victor Reinz

011 432 2667

www.victorreinz.com/jsi

29

Launch Technologies SA

011 397 3072

www.launchsa.co.za

19

Merseta

010 219 3000

www.merseta.org.za

54

Moto Health Care

0861 000 300

www.motohealthcare.co.za

10 & 11

Silver Falcon Trading

083 628 2288

www.hurricaneauto.co.za

63

Snap On Africa

031 569 7673

www.snapon.co.za

IFC

Tenneco Automotive - Monroe

011 574 5603

www.monroe.com

15

Ford Trade Club

N/A

www.fordtradeclub.co.za

IBC

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.

Silverton Radiators has been in the engine cooling business providing quality replacement products for more than sixty years, and if there is anybody who understands engine cooling, then it is us.

KEEP IT COOL

For fast, friendly and efficient service let the professionals help you. There are more than 120 Silverton Radiators dealers spread across Southern Africa, so wherever you are, there is a Silverton Radiators dealer near you.

Services offered by Silverton Radiators: - Specialist engine cooling systems advice - Professional flushing of cooling systems - Radiator and inter-cooler re-coring or refurbishment - Custom-made parts as per customer requirements - Sales of quality replacement parts - Specialised systems and component testing - Expert cooling system troubleshooting, service and repair.

For more information, please visit www.silverton.co.za CH6541

A Division of Imperial Group Limited

TAILPIECE

South Africa welcomes farewell tour of Porsche 919 Hybrid race car

O

n the world’s racetracks it clocked up more than 100 000km as it rewrote motorsport history. As part of its 45 000km farewell tour, the three-time Le Mans winning Porsche 919 Hybrid visited Cape Town and some of the mother city’s tourist hotspots.

The 919 Hybrid Evo is an unrestricted version of the car that won the FIA World Endurance Championship in 2015, 2016 and 2017, taking Porsche’s total number of wins to 19.

During the 919 Hybrid Tribute Tour, the visionary race car has travelled the globe, from New York to Spa Francorchamps in Belgium; England’s Goodwood Festival of Speed; Germany’s Nürburgring where it took the track record in 5:19.55 on the Nordschleife; Shanghai; Bangkok; Japan, and now South Africa. In the latest outing it has taken in Table Mountain, Liemietberg Pass and Camps Bay among other sights, before pulling up in Cape Town.

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The farewell tour has celebrated the 919 Hybrid’s race track legacy, and the significant contribution it has made to Porsche’s Technology Transfer ethos, using the race track as a test bed to take new technologies from the track to the road.

The most complex race car Porsche has ever built, the 919 Hybrid’s journey

between 2015 and 2017 saw it take three consecutive overall wins in Le Mans, and three drivers’ and three manufacturers’ world championship titles. It retired from the motorsport stage following the 6 Hours of Bahrain in November last year. When its farewell tour comes to an end, the pioneering car will finally come to rest at the Porsche Museum.

www.automobil.co.za

FORD TRADE CLUB

Unprecedented access.

Unequalled prices.

Ford Trade Club has been set up to offer independent repairers, workshops and bodyshops access to thousands of genuine Ford and Motorcraft parts at reduced prices.

We have parts for over 20 different Ford models across 85 distinct product groups in categories from brakes to suspension, backed

by Ford warranty and designed and tested by Ford, meaning they’re guaranteed to fit quickly and perfectly every time. With a wide range of parts and new parts being added regularly, you’ll want to get involved.

As a member of the Ford Trade Club you will also be provided with specialist help and knowledge at your participating Dealership, and will receive exclusive news and offers emailed or sent directly to you. We want to build a strong partnership between Ford Dealers and independent repairers, workshops and bodyshops.

Join nearly 2000 others already enrolled and become a member today, go to our website www.fordtradeclub.co.za

Ford Trade Club is operated by Ford Motor Company, South Africa.

Applications to join are subject to eligibility. Ford reserves the right to amend the content or operation of Trade Club at any time.

www.automobil.co.za

NOVEMBER 2018

67

Certified training programmes for

Enhancing skills and productivity in the automotive refinishing industry.

Personnel, the cornerstone of any business, drive a company and its development forward.

In collision damage, it is the repair team’s skills, know-how and training that ensure safe, highquality results. In the fast-moving automotive world, knowledge is often short-lived.

Only continuous updates and training will ensure a secure repair shop staffed by trained and motivated individuals and Aer-o-cure is equipped and geared to deliver that training.

COURSES FOCUS ON EFFICIENT PRODUCT USE AND PROCEDURE INCLUDING:

Aer-o-cure’s mission is to lead the development of South Africa’s collision repair technicians, providing industry staff with enhanced knowledge and up-to-date repair methods, resulting in: • • • • •

Greater productivity A higher level of repair quality Increased profitability Improved employee motivation An incentive for every participating individual

• •

• • •

•

Tailored courses to suit you and your company Courses at Aer-o-cure’s JHB-based training facility or on-site training at the customer’s premises Specialised training in small groups (3-5 people) A well-balanced mix of theory and practical exercises Courses suitable for repair technicians, apprentices, trainees, body shop managers, owners, insurance assesors or anyone thinking of utilising Car-o-liner’s range of equipment Courses are concluded with a written/practical test. On passing, participants are awarded a certificate of attendance for Car-O-Liner Academy’s global development programme.

CONTACT US TODAY FOR TRAINING.

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

Automotive Bodyshop Equipment

Welding Equipment

Tel: +27 11 444 6454 • Fax: +27 11 444 5677 • e-Mail: info@aerocure.co.za

Aer-o-cure (Pty) LTD • SADC Registered Manufacturer and Exporter. 8 Lees Street, Wynberg, 2090, Johannesburg, South Africa. PO Box 137 Strathavon, 2031 GraphicWerx • AOC_Training_AutoMobil_JN3161