AutoForum July/August 2014 by AutoForum

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July / August 2014

I N F O R M E D

PAGE 28 IN PARTNERSHIP WITH AUSTRALIAN BODYSHOP NEWS

A N D

I N N O V A T I V E

Automechanika Dubai 2014: Bigger yet again

SCAN ME!

Autoforum Online

COMMERCIAL

ford go further Fleet managers: special full commercial vehicle section

bosch-Vivo sign pan african deal stop texting your customers ensure your training roi PAGE 1

AutoForum - July / August 2014

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July / August 2014

CONTENTS

Cover Stories Bosch-Vivo sign Pan African deal

Ford go further

Ensure your training ROI

Stop texting your customers

Fleet manager special section

Automechanika Dubai 2014: Bigger yet again

Trade Talk Thank you to Ford South Africa for our cover photo.

Update

News Forum Editorial Welcome to our fourth issue of the year, and as we finalise production we are at the tail end of the Numsa strike and the world is in chaos with planes shot out of the sky and Gaza a war zone. But business goes on. This issue is aimed at keeping your business focused and we hope you find the tools herein as insightful as intended. Be sure to give us your feedback on our Facebook page and sign up for our upcoming newsletter on our website www.autoforum.com

SKF talks actuation

3M celebrates 40 years of making SA roads safer

Electronic suspension preferred over conventional suspension in all tested situations

The pitfalls of potholes: a closer look at South African roads

Bosch-Vivo sign Pan African deal

Mobile technology - The solution to SAâ&#x20AC;&#x2122;s road death epidemic?

FAW launches Coega manufacturing plant

Ford go further

BodyShop News EDITOR: CLARE RUTKIEWICZ CONTRIBUTORS: AUSTRALIAN BODYSHOP NEWS Greg Vercellotti KriSTEN FELDER Colin Windell Krista McNamara Warwick robinson ROBERT KAISER grant west EMAIL: INFO@AUTOFORUM.CO.ZA

BodyShop News launches Gulf magazine

Repair Aware to improve body shop efficiency

Auto Body Centre, Zimbabwe - an aluminium technology specialist

Ensure training ROI by implementing a learning culture

Have you been to Repair U?

RUPES launches Bigfoot with Celette SA

Fax: 086 627 1135 PUBLISHER: SWIFT PUBLICATIONS & OLYMPIC PARK TRADING POSTNET SUITE 174 PRIVATE BAG X11 HALFWAY HOUSE 1684

FOR ADVERTISING ENQUiRIES: GRANT WEST Mobile: +27 (0) 76 727 8161 WARWICK ROBINSON Mobile: +27 (0) 82 855 7750

Business Forum Well, you were all wrong. Ok, most of you were wrong

Auto market to be transformed by Gen Y demands

Stop texting your customers

Motor Traders Organisation launches to SA motor sector

Autoforum has new figures currently being audited by the ABC with a print run of 7800.

PAGE 3

www.AutoForum.co.za I N F O R M E D

Commercial Vehicles Technology shaping the fleet and transport sector of tomorrow

Fleet Manager - Are you ready for the changing carbon emissions requirements?

Global medium-heavy duty truck market - an overview for 2014

Volvo Trucks goes upside down

Warranties - a warranted investment to protect your fleet asset

Highway Pilot - The future of trucking?

Show Time Automechanika Dubai 2014: Bigger yet again

Aftermarketplace WinAlign HD truck wheel alignmentsystem

PCL’s new brake bleeders

Monroe is cool

Fuchs launches maintain diesel effect

A N D

I N N O V A T I V E

Advertisers Guide ACDelco Aerocure Alfa Atlas copco AUDI Parts Auto Cosmos - Electrolog Celette SA Garage Trade Supplies Highveld Garage Equipment Integrated Marketing Ital Machinery Leaderquip Mahle MIDAS Motor Merchandise Partquip PCL - AEI Ram Robert Bosch Snap-on Tenneco / Monroe Trysome Auto Electric UD Trucks VW Parts Victor Reinz Wheelquip

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Don’t Know what this is?

Download a QR code reader for your Smart Phone or Tablet from the Apple or Android app stores, and you can use it to scan this code & go direct to our online edition at www.autoforum.co.za – it is free and updated DAILY! Follow us on Twitter and Facebook: AutoForumZA

While reasonable precautions have been taken to ensure the accuracy of the advice and information given to readers, neither the editor, nor the publishers, can accept any responsibility for any damages, injury or loss which arise there from. The opinions expressed by contributors to this magazine are not necessarily shared by the editor or the publishers.

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Trade Talk

AutoForum AutoForum--July July/ August / August2014 2014

www.AutoForum.co.za

Wheelquip’s Demo Days

Lead acid batteries – a recycling success story First National Battery (FNB) has put the spotlight on the issue of recycling – with particular focus on battery recycling. In SA, the percentage of batteries already recycled is high, thanks largely to the efforts of battery manufacturers and their investment in collecting and properly recycling lead acid batteries across the country. This year, First National Battery established a dedicated recycling division called Scrap Battery, to facilitate this process. According to FNB Managing Director, Russell Bezuidenhout: “In South Africa, more than 90% of scrap lead acid batteries are recycled. That’s compared to just 70% of beverage cans, 30% of plastics and just 26% of glass bottles.” Scrap Battery collects used lead acid batteries from over 120 Battery Centre outlets and other pick up points around the country on a regular basis. The organisation also offers a free collection service for high volumes of used lead acid batteries and pays a highly competitive rate for these. “There are many compelling reasons for recycling lead acid batteries, including the conservation of natural resources, saving energy in the production process, protecting the environment from potentially harmful chemicals and creating jobs in the process,” says Bezuidenhout. All the batteries are processed at the company’s own fullfledged recycling facility in Benoni. The facility includes a battery breaker, an effluent plant that treats the acid, a lead smelter and a blending kettle to produce specialised alloys and scrubbers to control environmental emissions. More recently, a plastic reprocessing plant has been commissioned, in order to complete the entire reprocessing cycle. To go with the plant, FNB launched an interactive website - www.scrapbattery.co.za. “Most people have no idea what happens to their car battery after it is replaced,” says Bezuidenhout. “The new website serves as both an educational platform and awareness tool.” To find out exactly where to drop off your used lead acid battery or to see if you are eligible for free collection service, call Scrap Battery toll-free on 0800 333 462.

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Wheelquip opened a brand new dedicated demo and display feature at their Jet Park offices on the 18th and 19th of June. Jacque Coertze and Nic Kruger were looking very pleased with the reaction, and number of visitors they had arrive to see their range of wheel and tyre equipment. The main attraction on display was the latest Corghi R.E.M.O. touchless robotic wheel alignment system, on display for the first time in SA after it’s recent worldwide launch. It is the compact version of Corghi’s advanced system which uses a mobile robotic sensor to measure the wheel alignment, without the attachment of any target or sensor onto the vehicle rim or wheel. Also on display was their widened range of aligners, balancers, changers and repair equipment consumables. “Our customers really enjoy seeing the whole setup that they need in a live environment” says Coertze, “We actually outfitted an entire shop from a walk-in customer yesterday”. While I was having a tour of the new facility, which effectively doubles the Johannesburg branch’s floor space, a group of businessmen from Zambia arrived to meet the team and collect information for shops that they need outfitted. “We have always considered the personal touch part of our business” commented Kruger continuing to say “the quality of the brands and products we distribute speaks for themselves, but this business is equally about relationships of trust in the distribution team, and their ability to continue to service clients after the sale”. Also on display was a wide range of consumables and repair equipment, as well as new lines which Wheelquip believe can add value to their clients ability to service customers better. This included their full tool range and new tyre pressure monitoring systems for commercial and passenger vehicles, which they will be introducing to the market in the coming months.

For more pics see Autoforum.co.za, tag/keyword “Wheelquip”

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Trade Talk

AutoForum AutoForum--July July/ August / August2014 2014

Does the Fuel Price RE-MOVE cash from your pocket?

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Snap-on launches top products at Top Gear

Don’t waste money on Fuel to RE-MOVE gaskets and sealing components. Save yourself time and money use RE-MOVE.

Snap-on recently took advantage of the Top Gear festival held in Durban to launch their new Mercedes 518 High Roof Demonstration Van. This unit is fitted out with a variety of Diagnostic tools, Power Tools, Tool Storage units and more. Snap-on Authorised Dealers will be making use of the Demo Van to show-off these lesser seen products in their areas. The following new products on display, which are now available for the SA market, were the definite favourites.

RE-MOVE is designed for fast removal of gaskets, gasket remnants and sealing compounds. It can also be used as a highly effective and long-lasting sealant remover to remove glue, resin and paint residue. RE-MOVE is derived from an ether solvent and propellant base and can be used with all makes of engine and vehicles. Offering high levels of adhesion, RE-MOVE is drip-free. When sprayed, it gives an impermeable, highadhesion, highly effective liquid film. REMOVE can be used on vertical and overhead surfaces. RE-MOVE can also be used on sloped and vertical surfaces. RE-MOVE is super-quick to use and does not damage surfaces. Please contact your nearest Victor Reinz distributor for RE-MOVE - 70-31415-00.

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The Snap-on Cordless Air ratchet is available as a 3/8” Drive (CTREU761), as well as a 1/4” Drive unit (CTREU725). Features include digital variable speed trigger for precise control, a built in brake to stop it throwing sockets and fasteners, and a chromed wear bushing. Over and under temperature protection keeps tool operating at peak efficiency while a 14.4V lithiumion battery pack can also be used in existing Snap-on 7.2V lithium-ion micro tools. The Blue-point Field Service Tool box for Bakkies (With Modular sets available) is available as an 8 or 4 drawer option, and is built of durable stainless steel. It fits most ½ and 1 tonne bakkies and can include a window. It is easy to assemble and a number of modular tool sets are available to fit the units.

For more information contact your Local Snap-on Authorised Dealer or Snap-on Africa on 0861 762 766 or e-mail enquiries@snapon.co.za or visit www.snapon.co.za

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AutoForum - July / August 2014

The latest global news

SKF talks actuation

t is always a good thing when a brand uses its own product. This is definitely the case with SKF. “We use our own actuators in our assembly plant in Sweden; what better proof of our belief in the quality of our linear systems?” explains SKF Mechatronics Product Manager for Southern Africa, John Storm. The company combines linear guidance systems and linear driving technology into one system, which it says sets the industry benchmark in turnkey actuation system solutions. The latter are widely acknowledged for their superior quality and accurate and efficient performance across a broad range of market sectors. “The actuation systems are offered through SKF Mechatronics,” continues Storm, “which is one of SKF’s six global core technologies together with bearings and units, seals, power transmission, lubrication systems and services.” Mechatronics is briefly defined as anything mechanical that is electrically driven and SKF’s mechatronic product portfolio comprises linear guidance systems, linear driving technology, and actuation systems. “Actuation is our primary focus and, more specifically, electrically driven actuator systems with AC, DC and servo options. The electric system delivers substantial end-user benefits compared to hydraulic and pneumatic systems.

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The system’s highlights include its being sealed and maintenance free, and boast quality, reliability, high efficiency rates, higher productivity, lower power consumption, high repeatable accuracy, system diversity and simple integration.” According to Storm, SKF offers three types of linear guidance systems to meet customers’ diverse guiding needs: Linear ball bearings (ballrecirculation sleeves on shafts), profile rail guides (carriage with rows of recirculating balls running on a profiled rail) and precision rail or prismatic guides (two guide rails positioned one upon the other with a ball, crossed roller or needle roller cage between them). “Our expansive linear range, available from 100N to 600kN, pushing forces out in precision at high speed, offers a tailored solution to meet any linear application demand whether to divert, position, lift, pick and place, raise and lower, load and unload, boxing, wrapping, etc.” “Whether it is a new installation or aftermarket fitment, we assess and evaluate the customer’s unique requirements to offer the best, most reliable and efficient solution,” notes Storm. He emphasises that the linear products are manufactured from the same superior quality material and undergo the same manufacturing processes, including induction hardening, as SKF bearings.

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NEWS FORUM

AutoForum - July / August 2014

3M celebrates 40 years of making SA roads safer

M recently celebrated its 40th year as a partner to government, road maintenance organisations and school goers in keeping SA roads safer. Its collaborative projects since its launch in 1974 include the provision of highly reflective materials used in official road signage and markings as well as licence plates and large vehicle marking. Andrew Blackburn, Sales and Marketing Manager, 3M Traffic Safety Systems Division commented: “The products supplied by 3M’s Traffic Safety Systems Division, such as our prismatic retro reflective road signage materials, are a cost-effective way to ensure that SA roads are safer.”

3M prismatic sheeting and raised pavement markings used on many of SA’s provincial and national highways to improve road and lane visibility for all permanent and temporary road structures, from road studs to gantry signs. Over the years, the company has also been involved with scholar patrol programmes and school zone visibility programmes with government. “Road safety awareness is important to curb unnecessary vehicle accidents and the high death toll on our roads which, in turn, has a huge impact on our society and our economy,” concludes Blackburn.

The company explains that its initial retro-reflective road signage material using Glass Beaded Material launched in 1974, was replaced with Prismatic Materials in 2000, and currently it supplies Diamond Grade DG3 Reflective Sheeting with “full cube” technology. The latter produces a material that is nearly twice as bright as other types of prismatic sign sheeting. 3M proudly confesses that it was instrumental in ensuring the introduction of government Regulation 192A, which stipulates that vehicles of a certain mass and length are fitted with reflective yellow tape, as per SABS ECE R104, in order to ensure visibility. Other key products include

3M’s range of Traffic Safety Systems provide the latest in reflective technology enabling maximum visibility to all road users in both day and night time and in all weather conditions.

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provide highly th the government to 3M has partnered wi and markings ed in official signage reflective materials us vincial roads since 1974. pro on SA’s national and

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NEWS FORUM

AutoForum - July / August 2014

Electronic suspension preferred over conventional suspension in all tested situations Tenneco has released the results of a survey undertaken by TNS Infratest, which found that overall, drivers prefer an electronic suspension. vehicle dynamics. The system can be switched from standard to sport or comfort mode at any time according to driver The results indicate that consumers experience a feeling preferences without impacting vehicle dynamics. of increased comfort, control and safety when driving cars equipped with intelligent (electronically-adjusted) suspension Tenneco continues that the most significant improvement with systems versus the same cars equipped with conventional intelligent suspension systems reported across all segments suspension systems and more importantly, that they are was vehicle comfort with road holding, stability, agility, control willing to pay for these electronic systems. and safety all scoring strongly versus conventional systems. In addition, the ability to change the suspension mode at will When questioned, 94% of sports utility vehicle drivers rated resulted in a strong increase in scores for flexibility and driving the overall driving experience with a semi-active suspension fun versus conventional systems. system as very good or excellent, compared with a rating of 73% for passive suspension systems. In the compact car “Our test results confirm that intelligent suspension systems segment, 86% of drivers rated their overall driving experience deliver benefits that consumers notice and prefer – notably as very good or excellent compared with 61% for passive that there is no need to compromise between ride comfort systems, while 88% of upper-middle class segment drivers and handling,” said Sandro Paparelli, Vice President and rated semi-active suspension systems as very good or General Manager, Tenneco Ride Performance Europe. excellent versus 77% for passive systems. “Consumers clearly feel that intelligent systems reconcile these differences to give drivers the pleasure of both, The group points out that its brand ‘Monroe’ produces and they value the ability to vary their ride at the touch of Intelligent Suspension technology that continuously adjusts a button.” shock absorber damping levels to road conditions and

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NEWS FORUM

AutoForum - July / August 2014

When evaluating intelligent suspension systems, 39% of compact car segment drivers said it should be standard in vehicles in all segments from compact class and above. In the SUV segment, 38% of drivers said it should be standard from middle-class vehicles and above. In both segments, drivers were willing to pay a higher price for vehicles incorporating intelligent suspension systems. After driving both vehicles with and without intelligent systems, the purchase intention rate across all segments was 47%. “By making vehicles capable of adapting to different environments, situations or ride preferences, intelligent suspension systems provide consumers with alternatives. They respond to today’s consumers who value both comfort and performance, and the freedom to choose their driving experience,” Paparelli concluded. Following the consumer survey, a series of quantitative tests by TÜV SÜD using vehicles equipped with MonroeIntelligent Suspension confirmed better wheel-to-road contact, which helps avoid sideslip and oversteering, especially during cornering on uneven road surfaces. In more dynamic driving situations, such as lane changing or obstacle avoidance, the reduction in body movement was found to bring greater stability, which helps increase the feeling of comfort and safety. *The survey included 155 German consumers who took part in comparative vehicle tests.

The technology Continuously Variable Semi-Active Suspension (CVSA) changes the feel of a vehicle’s ride by continuously adjusting shock absorber damping levels to road conditions and vehicle dynamics like speed, turning, cornering and driver inputs. The system provides optimum driving safety and improves ride smoothness and NVH (noise, vibration and harshness), achieving the optimal balance between ride comfort and handling. CVSA is available with both internal and external valve technology in order to find the optimal packaging solution for each vehicle. CVSA2 is Tenneco’s newest generation of lightweight semi-active dampers. Each damper features two independent electro-hydraulic CES valves for the rebound and compression motions which provide an increased tuning range to reach even higher comfort levels. CVSA2 uses electronic (CES)1 valves developed by Tenneco in conjunction with Öhlins Racing. Scalable Architecture uses unique actuator constructions to easily scale vehicles equipped with CVSA2 dampers up into more advanced electronic suspensions systems including Tenneco’s CVSA2/KINETIC® hydraulic anti-roll system and ACOCAR™ fully-active suspension system. The actuator constructions share components, production processes, sensors and electronic control units (ECUs) and can be extended with a variety of hydraulic ride height

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systems including discrete lifting, continuous leveling or hydro-pneumatic applications. CVSA2/KINETIC® is an interconnected passive, reactive system that provides continuously controlled damping and high roll stiffness with reduced articulation stiffness. The system combines advanced mechanical and hydraulic systems with intelligent electronics, leading to a suspension concept that improves vehicle handling, stability and driver comfort. Active Suspension Car (ACOCAR™) is a fully-active suspension system that includes actuators with two continuously variable CVSA2 valves and hydraulic pumps that bring energy to the suspension. The system controls roll, pitch and heave, resulting in superior handling, safety and comfort. ACOCAR targets the next generation of conventional, hybrid or electric luxury vehicles with availability for series production from 2015 on. DRiV™ technology is derived from the CVSA model and features an affordable adjustable damper technology for the B/C vehicle segment. However, unlike CVSA, no dedicated ECU is required, helping reduce the system cost. The system packaging features 3 internal electronic valves working in parallel with the electronics integrated in the damper, providing minimal deadlength. RC2 Frequency Dependent Damping offers all the advantages of an active suspension system at a conventional system cost. The system splits comfort and handling into two different frequency areas. Thanks to its unique ability to work bi-directionally in both rebound and compression, RC2 offers high damping at low frequencies for increased body control and low damping at high frequencies for improved comfort. Used as an integral part of the hydraulic valving system, RC2 ends the conventional system’s compromise between comfort and road-holding and without electronics.

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NEWS FORUM

AutoForum - July / August 2014

The pitfalls of potholes: a closer look at South African roads

otholes have become a serious point of discussion over recent years, especially in relation to the increased traffic on highways and suburban roads. According to CSIR (The Council for Scientific and Industrial Research), the main cause behind the pothole situation lies in a lack of adequate improvement in the preventative maintenance on a number of roads. There are several roads which are currently being rehabilitated to address the hazardous level that South African motorists are facing. Arrive Alive previously stated ‘human error ‘ as one of the primary causes in 57% of accidents, but the prevalence and encounters with potholes, which can be categorised as an environmental factor, has also been identified as a risk factor. To improve road safety, the pothole pandemic in South Africa needs to be addressed. To do this however, we need to understand what causes them and the level of damage they incur. Most dangerous roads with potholes The roads in Gauteng have been under serious scrutiny. In recent media reports, it was identified that, in a space of six years, the amount of roads considered to be in a poor to very poor condition had increased from 20-46%. This deterioration has led the Johannesburg Roads Agency (JRA) to roll out a ‘road rehabilitation campaign’ which aims to address and repair 12,703 potholes and 37,545 patchings and clearings. In the greater Mpumalanga region, motorists have been warned of the multitude of potholes. The Association for Safe International Travel (ASIR) makes mention of this in its guide for tourists visiting South Africa. The North West/Limpopo Province, however, seems to trump all with stretches of roads featuring some of the most intimidating craters. With 2,500 potholes between the Wolmaransstad and Schweizer – Reneke roads, 150 potholes between Klerksdorp and Vanderbijlpark, deemed a horror for road users, and 596 potholes between Klerksdorp and Ventersdorp. The state of the roads in these parts is clearly catastrophic. It has been said that road users in these areas are intimidated enough by the sheer size of these potholes to risk travelling in the shoulder lanes (which is actually illegal) as opposed to risking contact with these mineshafts in the road. From a broader spectrum of thinking and surveying the damage to roads, Sanral has released a road condition report which classifies road conditions across the country as good, fair or poor. From all the listed roads, approximately 11 of the 15 national roads in the country are currently being rehabilitated, due to poor conditions. How are potholes created? Research gathered from the CSIR pothole guide stipulates that the most common cause of potholes is the presence of water. However, the report also mentions that there are a

PAGE 18

number of cumulative aspects that contribute towards the formation of these craters on the roads. Above and beyond the structural reasons, which involve the quality of the materials used, there are a number of other reasons (including the environment as well as traffic loading), which increase the likelihood of pothole formation. Non-structural causes: • Chemical spillages: diesel • Mechanical damage: fires, accidents • Rock falls • Animal hooves on roads in warmer climates • Inadequate road design (relates directly to the soil on which the roads are built) The manner in which potholes form is determined by the pavement surfacing seals used in the road development process. The two main bituminous surfacing seals commonly used can either be asphalt or thin bituminous surfacing seals (the latter is locally sourced and often referred to as ‘chip and spray’, surface dressing and surfacing treatment or ‘chip seal’). Asphalt: Potholes that develop in asphalt are formed in two ways: the more primary cause is from the cracking of the asphalt seal, often caused by the ageing or fatigue of the material and inadequate support. This is indicative of the quality of materials used, what it consists of, as well as the exposure to excessive water. Environmental cracking: A more secondary reason behind the formation of potholes revolves around environmental factors. This is typically the impact of the ultraviolet rays from the sun, extreme temperatures, oxidation or differential causes in relation to the weathering of the asphalt which may create cracks in the surface seal. Potholes that form due to environmental and traffic conditions often occur as a crumbling of the asphalt surface seal and, on top of this, you’re likely to find a crack, which may enlarge with time. If cracks are repaired within a reasonable period, significant impairment to the pavement may be avoided. However, if it’s not repaired or rehabilitated the crack’s susceptibility to water will result in further deterioration over time. Traffic loading: Heavy traffic loading may cause high road deflections. Deflections are a calculated measurement as to how the road is affected by the load it carries. Consistent high deflections and even the passing of overloaded vehicles is likely to lead to the cracking of the road, which will allow water to flow through these cracks. This will lead to further damage as it will result in the loosening of the structural layer works. This makes overloading of vehicles and other modes of transport on the road an important factor to control, monitor and address the preservation of roads and the maintaining of road functionality.

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NEWS FORUM

AutoForum - July / August 2014

Thin bituminous surfacing seals: In most of the cases of pothole formation, damage starts from the top base. The material itself is said to be quite flexible and can withstand a substantial amount of pressure from heavy traffic loading before cracking. However, once cracking starts the access of water into the pavement is imminent and greater depths of the affected area can suffer the impact much quicker, resulting in gross deterioration of the roads. Without the necessary preventative maintenance, surfaces are likely to crack. Roads that are well constructed, regularly maintained and have the required bituminous seals should not cause potholes. This is why the preservation of the seal is important as it restricts pothole formation. Contracts Manager Duane Klue, from roadmarkings company ATN, gives some insights into the pothole pandemic in South Africa: “Potholes can develop quite easily on the road and one of the main causes of their creation has much to do with heavy rainfall. Heavy rainfall affects the structural layer works material that roads are made of. When the layer works of roads are affected especially by water, the materials used to make the roads lose their tightness. This causes collapses in sections of the road, leading to the development of potholes.” “Roads are made to last 10 years, that’s what the quality standards are based on. If they’re made properly from a structural perspective and receive regular maintenance, in as far as ensuring the protection of materials used, there would be no formation of potholes.” Plans for progress, road rehabilitation and maintenance The JRA is dedicated to its mission to provide roads that are accessible and for their communities. The City Infrastructure Investment Program (CAPEX) has allocated R110 billion to a project that aims to repair roads over the next 10 years. This will involve the following improvements and maintenance programs on the below mentioned areas. Project highlights Construction of Naledi bridge – linking two communities Construction of Le Roux bridge – Midrand Construction of the Alexandra Pedestrian bridge The following budget has been allocated to city wide projects: Areas to be addressed Jan Smuts Avenue M1 City wide work M2 Soweto Highway

Budget allocated R110 000 000 R50 000 000 R287 000 000 R30 000 000 R30 000 000

Other projects in the pipeline, to be rolled out citywide, are Jan Smuts Avenue as well as sections of Republic Road, Sloane in Randburg, Bara Chris Hani roads as well as an upgrade in Rosebank. The M1 will be resurfaced at a cost of R50 million and citywide works expected are budgeted at R287 million. The M2 and Soweto highways will also be resurfaced with a budget of 30 million rand on each highway.

PAGE 20

Gravel roads will also be upgraded - specifically the Diepsloot, Ivory Park, Braamfisherville, Tshepiso, Lawley, Orange Farm and Doornkop/Thulani areas. All these projects are either in progress or being rolled out to address damage incurred by rainfall, improving storm water infrastructure and the rehabilitating of the many problems that road users are facing - especially the unexpected potholes they may encounter on the roads. Anticipated expected damages from potholes What some may see as a little glitch in the road, could very well leave their wallets feeling the pinch later, especially in cases where vehicles are underinsured. In South Africa we’re looking at a good 65% of the cars on our roads. If you’re one of the statistics, it’s advisable to make provisions for damages and accidents that may occur not only from the potholes but also from other factors which contribute towards the number of collisions we’re currently facing. The anticipated damage to your vehicle could result in damages to your: car suspension, steering, alignment, tyres, rims, shocks/struts, dents, and fluid leakages (engine) – (all great news if you are in the Tyre repair sector - Ed). The impact that hitting a pothole has on your car’s tyres should not be taken lightly. Should you drive through/over a pothole, it’s recommended that you immediately check your tyre pressure as well as any residual signs of dents and tearing. Overinflated tyres When tyres are overinflated and you drive over a pothole, the chances of experiencing tyre failure (also known as tyre burst) are increased. Contact with the pothole is likely to puncture and tear away at the wheel. An important factor to remember is that, when your car is running, temperature levels increase in the tyre which further increases the pressure in them. This is why it’s dangerous to hit a pothole when tyres are overinflated, as you’re already at risk of tyre failure when the pressure levels are over-capacity. Underinflated tyres When tyres are underinflated, rim damage is likely to be imminent and additional problems, such as wheel alignment problems, could potentially manifest. This is critical if the problem goes unnoticed, as it could contribute to further accidents. A final word Motorists, cyclists and motorcyclists alike are all at risk when it comes to potholes. Whether you’re just going about your everyday commuting, or on a longer road trip, be as vigilant as possible and always abide by traffic rules and regulations. It’s also advisable to have your car serviced regularly and don’t disregard the advice that law enforcement has to offer on the roads. More importantly, don’t risk the chance of taking to the roads without the necessary car insurance cover. This story was originally published online by Hippo.co.za and is printed here courtesy of the company. For the original article, please visit http://www.hippo.co.za/blog/motor/Thepitfalls-of-potholes-a-closer-look-at-South-African-roads/.

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PAGE 21

NEWS FORUM

AutoForum - July / August 2014

New Vivo-Bosch deal across African market

ivo Energy, the company that distributes and markets Shell-branded products in 16 African markets, and Bosch, the German engineering and automotive aftermarket supplier, recently announced a pan-African agreement to expand both companies’ footprint in providing services to their growing customer base. Vivo Energy currently operates over 1 430 Shell branded service stations across Africa, while the Automotive Aftermarket division of Bosch provides 16 500 Bosch Service Partners and a countless number of independent Workshops in 150 countries with a complete range of diagnostic and repair shop equipment and a wide range of spare parts. The two companies believe that their partnership will pair their respective expertise in the areas of automotive spare parts and services, and retail distribution of oil products and will see Bosch Middle East and Africa Automotive Aftermarket division distribute commodities such as batteries, filters, wiper blades and spark plugs, and quick service test equipment including air conditioning and battery tester/chargers to selected Shell service stations operated by Vivo Energy. In addition, the German automotive aftermarket supplier will market the Bosch car Service (BCS) or Express Car Service (ECS) concepts at selected Shell service stations. The initiative will be progressively rolled out, starting towards the end of 2014, on selected sites where there is sufficient market demand in all the countries where Vivo Energy operates a retail network. Bosch also recently highlighted that with its having been in the development and production of engine filters for 80 years, the company’s development is closely linked to its desire to continually develop and improve existing solutions. When motorised travel was still in its infancy, Bosch filters were the solution to blocked carburetor jets due to

PAGE 22

contaminated fuel. Its introduction of diesel engine injection systems made filtration even more critical and saw its development of a special paper in its filters – a material that has been constantly developed and remains in use to this day. Bosch filters are highly reliable in protecting all the important and expensive components on and inside a vehicle – keeping dirt, abrasive and fine particles – along with water in the case of diesel engines – away from injection systems, engines and occupants. The company is seen as the definitive specialist for optimally adapted filters and works constantly with vehicle manufacturers to develop filters that support improved engine power and lower fuel consumption or that meet the particular requirements of biofuels and hybrid vehicles. Working directly with the developers of petrol and diesel systems means filter experts gain first-hand knowledge of the various system requirements. It also allows them to use test facilities and expertise of their specialist colleagues to conduct practical tests under real conditions that deliver sound results.

Innovations are also required to deal with the increasing use of alternative fuels, meaning Bosch is investing substantial resources in developing products that meet the new challenges.

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Experts in Bearing Solutions PAGE 23

NEWS FORUM

AutoForum - July / August 2014

Mobile Technology - The solution to SA’s road death epidemic? The Road Traffic Management Corporation (RTMC) recently released figures indicating that more than 100 people died in 80 serious crashes on South African roads during the April holidays. Vodacom’s head of machine to machine (M2M) communication, Tony Smallwood, believes that M2M solutions have the potential to reduce the number of deaths on our roads.t Insurers are also able to analyse this data and reward or “The tragedy of losing a loved one and possibly a breadwinner penalise drivers according to their driving conduct. in such senseless circumstances can, and should be avoided,” says Smallwood. “A telematics device coupled with a GPS receiver is able to measure a range of vehicle motions and operations, Vodacom M2M – through parent company Vodafone M2M, including harsh braking, speeding, and failure to halt at stop a world leader in machine to machine communications – signs. This technology has been highly effective in reducing is at the forefront of developing telematics solutions that road accidents and enables insurance providers to align make use of a device fitted to a vehicle to monitor driving their premiums with actual driving behavior.” behavior. “Telematic solutions can monitor speed, alcohol use, fatigue, lack of driving competence, and mobile phone use – all of which are significant contributors to motor vehicle accidents,” says Smallwood. “Convincing drivers to change their bad driving habits via alerts, insurance premium discounts and vehicle performance analysis can play a critical role in saving lives.” Smallwood explains that the advantage of this technology is that it places responsibility in the hands of the driver. “By providing motorists with concrete information about their driving style, M2M solutions have the power to educate and ultimately change behavior.” Research from countries with lower accident rates, such as the UK, suggests that drivers who are aware that they are being monitored are less likely to drive recklessly, especially if there is a financial benefit to good driving behavior.

PAGE 24

Currently, telematics systems are installed post-production, but the concept of a ‘Connected Car’ is catching on and at least one vehicle manufacturer has tested an onboard telematics system with Vodacom M2M. The solution entails the installation of a SIM card connected to a mobile network that offers a variety of services. Smallwood concedes that this type of device can’t prevent an accident from occurring – but it can change behavior and in doing this reduce the chance that an incident will take place. On top of this, in the event of an incident, Vodacom’s M2M solution can alert emergency vehicles automatically. “These are the features that save lives. If all cars carried this technology, I’m convinced we’d see a marked reduction in traffic fatalities,” says Smallwood.

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67190-Product Management - Headlights-June 2014-dealer-275x210 v7.indd 1

2014/05/28

NEWS FORUM

AutoForum - July / August 2014

FAW launches Coega manufacturing plant

hinese automotive manufacturer First Automotive Works (FAW), has launched its R600-million assembly plant in Zone 2 of the Coega Development Corporation’s (CDC) Industrial Development Zone (IDZ). The plant was opened by South African President Jacob Zuma. FAW’s says its decision to build the plant in South Africa is significant, as it is one of the biggest manufacturing investments by a Chinese entity in the country to date, with tangible spin-offs. The launch is highlighted as a result of a presidential visit to China in 2007. Speaking at the opening of the facility in Nelson Mandela Bay, President Zuma said: “The investment of R600 million into the economy will create much needed jobs and promote an improvement in the lives of many people in this area. “This investment also augurs well for South Africa’s position within the global automotive manufacturing network and proves once again that we have an attractive operating environment to host global multinational companies.” According to the automaker, the investment is also a boost to Chinese investor confidence in South Africa, and will be inspire further Chinese investments in the country. Already Chinese manufacturers Powerway Engineering (R127-million) and Powerway Photo Voltaic (R666.6-million) have confirmed their investments in the IDZ, bringing the total sum of Chinese investment in the IDZ to R1.394 billion. Yusheng Zhang, CEO of FAW Vehicle Manufacturers SA (PTY) LTD commented: “We could have gone to Kenya, or Tanzania where FAW has been present in sales and service for over 30 years – but in the end we chose South Africa because of the

PAGE 26

infrastructure. It then came down to a choice between East London and Coega.” In the end Coega was chosen because, according to Zhang “the infrastructure is perfect”. Phase one of the FAW project is expected to produce 5 000 trucks annually and 280 jobs will be created during the truck assembling plant’s operational phase. CDC head of Marketing and Communications Dr Ayanda Vilakazi described FAW’s investment as a major coup for the Eastern Cape, Nelson Mandela Bay and the CDC. “We are pleased that FAW are supporting the sustainable socioeconomic future of the Eastern Cape and that it will be joining the Eastern Cape’s automotive manufacturing community which includes GMSA, Volkswagen, Mercedes-Benz and Ford. Although FAW has been present in South Africa for just over 20 years, this first phase investment in the Coega IDZ is indicative of a deepening commitment to South Africa and the African continent from a globally respected automotive manufacturing and Fortune 500 company.” A possible second phase of the project, which will see an additional investment from FAW, is expected to produce an additional 30 000 light commercial and passenger vehicles annually. Vilakazi further stated that Coega continuous to be a leader in the economic development and social upliftment of individuals and communities and most recently it made investment history signing 10 clients at an investment value of just over R1.8-billion in the 2013/14 financial year; and became the first state-owned enterprise to achieve a Broad-Based Black Economic Empowerment (B-BBEE) Level 1 Contribution Status – the highest BEE achievable status.

Ford go further

- Warwick Robinson

Ford held their first ever “Ford Go Further” Event is SA mid July. Go Further is Ford’s brand promise and the name of product events it has held in Australia, Amsterdam, and Barcelona. The inaugural South African event marks the first time it has been hosted on the African continent. The event was held at Sandton Convention centre and was opened by Jim Benedente, president, for Ford Middle East and Africa (MEA). MEA represents the 5th business unit for the global company and is an area of focus for the near future. Ford has a specific focus on emerging markets, which strategically opens up new opportunities. The company is still doing good business in our markets, with June 2014 representing the 12th consecutive month of market growth. It was also notable for achieving the automaker’s record sales figure in the bakkie segment, with a total of 2536 units sold. Jeff Nemeth, CEO of Ford Motor Company of Southern Africa (FMCSA), went into more detail about how Ford’s sub-Saharan African focus needed to meet the affordability requirements of what Ford sees as a young market. “South Africa remains our engine of growth for the continent, and moving forward, Sub Saharan Africa (SSA) will be a key market for Ford,” says Nemeth. “Our vision is to become the first choice for mobility in Africa, and our event underscores our commitment to serve customers throughout Africa.” The next two years will see an unprecedented expansion of Ford’s vehicle and technology line-up in the SSA region. In total, 17 vehicles will be launched or refreshed, including the new Focus, Fusion, Ranger XL-Plus, Transit and Tourneo Connect - which were on show for the first time at the Go Further event – as well as the much lauded appearance of the new Mustang on our shores at last. The latest Focus was also on display and looks to build on it’s accolades as the no 1 nameplate in the world. The event highlighted the technological advances that Ford has been implementing into their range, not only in terms of their EcoBoost engines, but also in a host of futuristic features. The new Fusion model will show off a number of these but “standard fare” connectivity systems, cameras and adaptive cruise control are only part of the mix. Features such as Active Park assist, which actually parks the car for

the driver, and City Stop which automatically avoids collisions show off serious high end technology, while little extras such as “Door Ding” prevention (by a plastic clip that wraps around the door edge) add real world advantages to consumers. The broadened Transit range was also a key focus at the event, with the diminutive Transit Connect, in passenger and cargo version, plus larger 2 ton Transit vans in open load box, cargo versions and Torneo passenger versions. This is a heavily contested space with big name players very entrenched in this market – it will be interesting to see how Ford approach to transforming the success of the new Ranger range into the greater commercial space. The Ranger XL-plus is an extension of the current commercial range and, following a sizable $1.8 million investment in the Silverton plant, will be produced for export to Australia and New Zealand. The variant is aimed at the mining sector and other consumers with heavier duty demands. Enhancements include an increased towing load of 3 500kg. Ford’s “Quick Lane” tyre and auto-center brand was briefly mentioned in the presentations, and would be an interesting development in the SSA aftermarket space. The service concept product is already maturing nicely in the North American market with the 700th store opening earlier this year. The interesting aspect of the brand is that in addition to Ford cars out of service plans, it targets brands outside of the Ford stable and expands service into a traditional fast fitment area. According to Ford SA while the brand is already active in Angola and Nigeria, plans to launch into South Africa are not yet in the pipeline.

PAGE 27

AutoForum - July / August 2014

Contents 30 31 32 34 34 35

BodyShop news launches Gulf magazine Repair Aware to improve body shop efficiency Auto Body Centre, Zimbabwe Ensure training ROI by implementing a learning culture Have you been to Repair U? RUPES launches Bigfoot with Celette SA

PAGE 28

Body repair insight

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PAGE 29

BODYSHOP NEWS

AutoForum - July / August 2014

BodyShop News launches Gulf magazine

BODYSHOP

BodyShop News Publications, publisher of Australian BodyShop News and our partner for the Autoforum Bodyshop News Africa section, has launched a new magazine targeting the Middle East collision repair industry.

PAGE 30

The journal was launched at Automechanika in Dubai 2014 a few months back with great success and will soon reach a market which has seen a great need for information, news and technical know-how. The Gulf region, while unique in its own aspects, faces universal situations. This includes the increasing need for capitalisation in the face

of rapidly changing technology in vehicle construction; the reparability of motor vehicles in the second decade of the 21st century; the financial squeeze imposed by insurance companies trying to offset the rising cost of repairs; the rising level of organisation among aftermarket manufacturers; and the shortage of trained technicians able to undertake the work with the ever more complex machinery needed.

BodyShop News Gulf was created with the intention of bringing the most recent, important and serious issues in the ever evolving industry with all of the information on the latest techniques and equipment. The Gulf collision repair market is a growing market in need of maturity and guidance. A local Editor has been appointed to look after local news, which focus on the happenings around the UAE while regional news will cover all things happening in the Gulf region. BodyShop News Gulf is available for viewing on the www. bodyshopnews.net website under â&#x20AC;&#x2DC;magazines onlineâ&#x20AC;&#x2122;.

Repair Aware to improve body shop efficiency Thatcham Research â&#x20AC;&#x201C; the UK based motor insurersâ&#x20AC;&#x2122; automotive research centre, which was established by the motor insurance industry in 1969, to contain or reduce the cost of motor insurance claims whilst maintaining safety standards â&#x20AC;&#x201C; has launched a new Repair Aware functionality for its members. The new product is described as delivering up front repair recommendations on all relevant methods data, enabling repairers to avoid unnecessarily intrusive repairs, prevent common, but costly parts damage or breakages and steer clear of delays on parts ordering and rework. Part of the centreâ&#x20AC;&#x2122;s flagship methods product escribe, Repair Aware provides escribe subscribers with clear â&#x20AC;&#x2DC;in-methodâ&#x20AC;&#x2122; indicators to steer technicians towards those specific processes where practical gains on efficiency, cost and avoidance of re-work are easily identifiable and achievable. Thatcham explains that the as complexity in modern vehicle repair becomes the accepted norm, bodyshops are increasingly reliant on the practical step-by-step instructions provided by documented repair methods and opportunities to affect the bottom line may at first seem limited. Despite this, it says, there are still many ways to make efficiency savings. Â Repair Aware enables an at-a-glance view of those repair

scenarios where Thatcham experts have identified specific advice and clear recommendations to lead to potential savings.Â The optimised techniques are tried and tested in a live workshop environment and are guaranteed to provide no compromise on repair integrity or quality. Â Speaking at Thatchamâ&#x20AC;&#x2122;s Repair Focus, where over 500 key members of the vehicle repair community gathered for the annual technology update and trade show, Thatchamâ&#x20AC;&#x2122;s Commercial Director, Lesley Upham confirmed the concept behind Repair Aware: â&#x20AC;&#x153;escribe is widely recognised as the UK repairers first choice for repair methods information and the provision of these alternative, yet fully validated repair strategies have long been a staple component of the product. Repair Aware simply takes the hard work out for repairers with a clear indicator of where the added Thatcham value can give our subscribers the edge.â&#x20AC;? At this stage the product is sadly not widely available in South Africa but rather only for people who are using the UK version of escribe. However Thatcham says it does have plans to extend the escribe product to different markets (hopefully including SA) in the future.

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PAGE 31

BODYSHOP NEWS

AutoForum - July / August 2014

Auto Body Centre, Zimbabwe - an aluminium technology specialist - Grant West

2009 saw Jaguar Land Rover introduce the new Jaguar XJ, the first vehicle built with the new aluminium space frame design technology known as Premium Lightweight Architecture (PLA). This design technology allows Jaguar Land Rover to produce the lightweight aluminium body shells that are currently being used in the new Range Rover and Range Rover Sport models. Jaguar Land Rover says the reasons behind using aluminium in their body shell construction are four fold and include Weight Reduction, Strength, Corrosion Resistance and Recyclability. Aluminium, like any other material, has its own challenges when it comes to repair processes. Jaguar Land Rover therefore rolled out an Aluminium Repair Strategy Programme for all its Approved Body Repair Centres (ABRC’s). This programme focused on: Facility and Equipment upgrades – the construction of aluminium repair areas to ensure that the highest standard of repairs are maintained and Training Courses – Focusing on delivering highly trained technical staff that will be able to meet and exceed customer expectations. Jaguar Land Rover are currently upgrading nine body repair centres to conform to these aluminium repair standards in Angola, Ghana, Kenya, Mauritius, Tanzania, Zambia, Zimbabwe as well as two centres in Nigeria, to cater for the Sub Saharan market.

PAGE 32

The Jaguar Land Rover Approved Body Repair Centre for Zimbabwe is owned by Premier Auto and operates as a separate business entity under the name Auto Body Centre. The facility upgrade commenced in early 2013 and the official opening will be on 21 August 2014. Auto Body Centre is expected to be a market leading facility in the Zimbabwean body repair industry. South African refinish equipment manufacturer and supplier AER-O-CURE are proud to have supplied a wide range of equipment to complete the upgrade of Auto Body Centre in Harare, in order to meet the standards of a Jaguar Land Rover Approved Body Repair Centre. AER-O-CUREâ&#x20AC;&#x2122;s Alex Lenaerts explained that amongst the equipment required for the paint shop, his company supplied and installed 2 Aer-O-Cure combination downdraught spraybooth ovens with an integrated paint mixing room as well as a Devilbis Full face breathing mask with respirator set and various X-shaped and bonnet stands.

In addition, Alex said the preparation area included Aer-OPrep preparation bays for 4 vehicles, incorporating overspray extraction and Aer-O-Vac overhead dry vacuum workstation complete with orbital sanders and mobile infra red as well as a wide range of lifts, jacks, engine lifts, inverter welders, headlamp adjusters, varied tools and equipment required by Jaguar Land Rover, including illuminated pocket microscopes and a Fronius Transplus Alu Edition Aluminium/Mig Brazing Machine. AER-O-CURE also installed and commissioned a Car-O-liner Benchrack BR 5500 complete with Evo Holding Kit with CarO-Tronic electronic measuring system to cater for the chassis repair needs of Auto Body Centre. For more information on the range of innovative equipment available from AER-O-CURE, contact Alex on +27 11 444 6454.

PAGE 33

BODYSHOP NEWS

AutoForum - July / August 2014

Ensure training ROI by implementing a learning culture - Krista McNamara

The side that is most prepared always wins, says I-CAR’s Jeff Peevy. How can you prepare your shop for success every day? Training. Peevy, Senior Director of Field Operations and Segment Development with I-CAR, spoke to attendees of the 2014 CARSTAR National Conference in Puerto Rico, in June, about the importance of training and a learning culture in the shop to the overall success of the business. Peevy’s message transcends I-CAR—he has a genuine passion for the collision repair industry. “I’m an observer of the industry, and driven by a passion for it.” Peevy presented the findings of an I-CAR study that began in 2011. When the study began, almost 100 shops were involved in various stages. It was whittled down to 28 shops, who, during the course of research, maintained existing equipment, software, paint systems and processes. “These are collision repair shops in operation who had people quit, who had hail storms. This is real life,” Peevy says. The study metrics evaluated the impact of ongoing training by looking at cycle time, touch time, CSI score and supplement frequency. Shop KPIs were tracked during the study and after. All shops saw improved communications from estimators, non-structural technicians and structural technicians. I-CAR did not see much difference in the performance of refinish technicians, which Peevy attributed to the strong culture of training already in place that is driven by the paint companies.

However, improvements were strongly impacted by their regard of training and the culture followed in their business. The shops were divided into three groups: the first group employed what I-CAR deemed a learning culture — the shop owner and technicians saw training as valuable and an opportunity to improve. The second group was knowledge neutral; they could take or leave training. The third group saw training as simply a requirement and often a waste of time. The group that employed a learning culture not only saw much larger metrics improvements than the other two groups, but for every dollar spent on training, they increased shop revenue by $36. Group 3, who saw training as a requirement, saw no increase in revenue. “They found a way to spend money on training and get almost nothing out of it,” Peevy says. I-CAR deemed a learning culture maximised the return of investment on training. Likewise, effectively managing your employees’ knowledge and keeping training ongoing reduced the amount of time that must be spent on training. To implement a learning culture, shop owners must believe that knowledge is a company asset and provides a competitive edge; and this attitude needs to be shared by staff. A pay structure should be in place that encourages knowledge sharing and recognises knowledge as a key element impacting performance. Story reprinted with kind permission of ABRN. Krista McNamara is the Managing Editor of Aftermarket Business World.

Have you been to Repair U? We have reported in previous issues on the website CollisionHub.com, and although it is US-based, the site is an absolute wealth of information for every member of the collision repair sector, even here in the South of A. Founder Kristen Felder comes from a background of repair shops, having grown up with a father in the business. She runs the website as portal for members of the sector and really makes gaining knowledge about the repair process as simple and easy to understand as possible.

PAGE 34

Repair U is part of the Collision Hub website and offers fascinating tips and advice – all in video format. These include interviews with experts from the brands you use every day in your bodyshop, to awe inspiring work from the repairers at the top of their game internationally.

Visit the website http://www.collisionhub.com/page/repair-u and keep watching the Autoforum Facebook page (www. facebook.com/autoforumZA) for updates and news.

RUPES launches Bigfoot with Celette SA - Grant West

Marco D’inca, Research and Development Manager at RUPES, recently visited South Africa to launch the innovative new RUPES Bigfoot range of random orbital polishing systems, through their official distributor Celette SA. Celette SA’s training centre hosted attendees from industry bodies, retailers, panel shop owners, refinish technicians and the media for this launch presentation. The event included a full demonstration of the range as well as an opportunity for the guests to use each of the Bigfoot products on a number of vehicle panels, demonstrating a variety of common paint imperfections and damage. The Bigfoot system comprises five random orbital polishers, matched to either a grey backing pad for the range of four RUPES expanded resin foam polishing pads or a black packing pad for use with the RUPES patented set of microfibre polishing pads. The equipment is supported by a range of silicone free Bigfoot abrasive compounds designed specifically for random orbital polishing, in addition to a selection of Bigfoot microfibre cloths. All of the polishing pads, abrasive compounds and microfibre cloths are colour coded to match the required applications. D’inca demonstrated how the Bigfoot system is designed to be safer, quicker and more comfortable to use. The system requires the pad to be in contact with the paint whilst keeping the pad flat, there is no need to spend more than 1 minute in contact with the area being polished, with approx. 9 passes over the area over per minute.

Marco D’inca RUPES R & D manager illustrates the paint condition with a microscope

Dust spot flattening on a door panel

Marco describes the properties of the Bigfoot blue foam pad

The guests were encouraged to sample the Bigfoot range

With the dual action’s larger offset stroke creating a bigger footprint on the panel, helping to eliminate holograms and swirls, added to the deep correction and high gloss achieved, traditional polishing times are reduced. Celette SA’s Richard Gajic and Fabio Vitale were on hand to help field the numerous questions on the technical aspects, pricing and availability of the Bigfoot system. The Celette team will continue to introduce the new Bigfoot system to the industry. For more information or a demonstration contact either Richard or Fabio at Celette SA on +27 11 334 1875.

Lisa-Marie Germanus - Collision Repairers Association (CRA), Richard Gajic – Celette SA, Marco D’Inca – RUPES, Fabio Vitale – Celette SA

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Business Forum

AutoForum - July / August 2014

Business insight

Well, you were all wrong. Ok, most of you were wrong

- Colin Windell

Everyone, well nearly everyone, was wrong. Just when the doom and gloom seemed set to darken even further with the news of the NUMSA strike following on the five-month Marikana miner’s stayaway, the heavy truck sector of the market staged a defiant little recovery. Not enough, though, to pull the industry out of an ongoing decline, but enough to make even the most jaundiced of motor dealers take heart, gird their loins and other assorted cliches. The overall market drop in June by 2,03% compared to June last year provided some mixed reactions with some automakers actually seeing increases within their own ranks. Chatting to Nissan’s new managing director: Sales and Marketing, Stuart Norman at the launch of the new Nissan Qashqai, he said their passenger car sales were slightly up and they had underestimated the Government fleet take by about 500 units. “Like most companies we have revised our figures downward since the beginning of the year and the June numbers come as a pleasant surprise for us. However, there is still huge pressure on the industry with industrial action and not knowing exactly where the Rand and fuel prices will go.” In its usual pragmatic way, the National Association of Automobile Manufacturers of South Africa (NAAMSA) summed up the status quo by saying: “South Africa urgently needed stronger growth, faster employment creation and a narrowing of the current account and fiscal deficits. The restoration of and improvement in domestic and foreign investor confidence represented a necessary pre-condition in this regard. The current strike in the steel and engineering Industry was most unfortunate in that it would further undermine investment sentiment and, if prolonged, would increase the risk of the South African economy moving into recession. The impact on vehicle production and exports would start to be felt if the industrial action continued beyond two weeks. The outlook for the automotive sector for the balance of 2014 is mixed. Domestic sales will continue to be affected by general economic conditions, exchange rate induced new vehicle price increases and upward pressure on interest rates. The domestic market is likely to register a decline, in volume terms, of around 5,0% compared to 2013 with the main impact in the new car and light commercial vehicle sectors.

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The heavy and extra heavy truck markets are expected to continue to hold up well. In the case of exports, further improvement is anticipated during the second half of 2014 on the back of better global economic growth. The domestic market ïs expected to continue to face head winds over the short to medium term in sharp contrast to developments internationally, which are characterised by expanding vehicle sales in China, the United States and Europe. However, continued improvement in global economic conditions will benefit SA vehicle exports during the second half of 2014 and in 2015. In June 2014 aggregate new vehicle sales at 52 837 vehicles registered a modest decline of 1 251 vehicles or a fall of 2”,3% compared to the 54 088 vehicles sold in June last year. The June, 2014 export sales total at 24 024 units reflected a marginal decline of 195 vehicles or a fall of 0,8% compared to the 24 219 vehicles exported in June last year. Overall, out of the total (disaggregated) reported industry sales of 52 837 vehicles, 83,8% represented dealer sales, 8,3% represented sales to the vehicle rental industry, 4,4% to industry corporate fleets and 3,5% to government. The new car market remained under pressure during June, 2014 and at 35 355 units reflected a decline of 2 017 units or a fall of 5,4% compared to the 37 372 new cars sold in June last year. Domestic sales of new light commercial vehicles, bakkies and mini buses at 14 556 units during June, 2014 showed some recovery and reflected an increase of 621 units or 4,5% compared to the 13 935 light commercial vehicles sold during the corresponding month last year. Compared to the corresponding month last year, sales of vehicles in the medium and heavy truck segments of the Industry at 942 units and 1 984 units, respectively, reflected a mixed performance with medium commercial vehicle sales showing a decline of 109 units or 10,4%, whilst heavy trucks and buses registered an improvement of 254 units or a strong gain of 14,7%. While some heavy vehicle sales can be attributed to natural attrition and forced replacement, some of that indicates ongoing

Colin Windell is the Editor of Fleet Magazine.

– and even possibly – growth in the industrial and building sectors, which is always good news for the economy.

vehicle sales will struggle to gain traction given the prevailing macroeconomic environment.”

Despite significant marketing activity at OEM level, new model introductions and significantly discounted run-out specials on outgoing models, the market remains under significant pressure”, says Rudolf Mahoney, head of research at WesBank.

“June was welcome reprieve for the industry,” said FMCSA’s vice president Marketing, Sales and Service, Mark Kaufman. “Despite the recent GDP results and more fuel price increases, post-election South Africa appears more positive in consumer minds.

WesBank’s data reflected a more positive performance in June, compared to previous months. Vehicle finance applications for June were up 20,6%, year-on-year, with 13,8% growth for new vehicle applications and used vehicle applications increasing by 24,4%. “It is encouraging to still see a strong demand for credit in the new vehicle market. However, affordability remains a concern, with a large number of applications being declined due to general affordability concerns. “Over the last five years, new vehicle sales have significantly outperformed the GDP growth rate, and are now being pulled in line with the South African economy’s actual performance. “On the back of new vehicle prices increases, escalating fuel prices, higher living costs associated with CPI that is outside of the SARB’s target bands, and looming interest rate hikes, new

“While the eventual resolution of the strike in the platinum sector was warmly welcomed, the on-going effects of its impact will still be felt for some time to come. The broader economic impacts and knock-on effects are naturally expected to continue impacting new vehicle sales.” Toni Fritz, Head of Standard Bank Vehicle and Asset Finance Business Markets, makes these observations: The proportion of new business deals with deposits decreased to 57,1% in June 2014 from 60,4% in June 2013. The proportion of new business deals with RV’s increased to 11,4% in June 2014 compared to 5,7% in June 2013. The Average Contract Term has decreased from 53,1 months to 50,2 months (June 2013 to June 2014). The average deal size increased by 8,7% year on year in June 2014 compared to June 2013.

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PAGE 37

AutoForum - July / August 2014

Auto market to be transformed by Gen Y demands

Whether it be by design, price or convergence, South Africa’s Generation Y is transforming the way that automotive manufacturers and dealers do business, according to the inaugural Deloitte 2014 Automotive Consumer Study. This study is a first for the local arm of the international company and shows the needs and wants of Gen Y, which also represents the largest consumer segment since the Baby Boomers. The survey found that 80% of this market, born between the early 1980s and early 2000s, are interested in buying new vehicles over the next five years. At the same time, 75% admit they are more willing than previous generations to give up their vehicle if the costs increase. This indicates – according to the researchers - that auto manufacturers will need to identify the fine balance between the two if they are to corner this share of the market. “The survey’s findings present some complex challenges, as well as opportunities, for automakers that are desperately trying to better understand and connect with this young, powerful and increasingly influential market force,” explains Bronwyn Kilpatrick, Manufacturing Industry Automotive Leader at Deloitte. “Taking a focus on ‘The Changing Nature of Mobility’, Deloitte South Africa undertook a detailed study of Gen Y to assist automotive manufacturers in remaining ahead of the game in the competitive marketplace.” Some of the trends emerging from the survey show: 70% of consumers surveyed indicated that high operational and maintenance costs are the primary reasons for not buying a car; • Convenience is key for Gen Y consumers, who are willing to pay for services that make their lives easier; • Gen Y trusts family, friends and websites to make purchasing decisions

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• What motivates Gen Y’s purchasing decisions? • When it comes to the top reasons for purchasing a vehicle, affordability, affordable vehicle finance options and fuel efficiency are ranked highly. Conversely, these are the same reasons for deciding when not to buy. Affordability (76%) is rated most highly, followed by operational/maintenance costs (68%) and lifestyle needs met by walking/public transit (46%). “Unlike the other generations surveyed – Baby Boomers and Gen X - we observe that Gen Y are more price-sensitive when making their car purchasing decisions. This is interesting to note for vehicle manufacturers as it indicates that many are looking to value and lower maintenance costs rather than reasons such as aesthetics and status,” says Kilpatrick. Interestingly, alternative powertrains such as hybrid electric, plug-in hybrid and compressed natural gas, are catching the attention of Gen Y. Over 60% are in favour of these vehicles as their next purchase, hinting at what could be the future demand for cars. How Gen Y chooses their cars When it comes to making a car purchase decision, Gen Y is not unfamiliar with scrutinising the car models in the market. According to the survey, 89% spend more than 10 hours researching and consider more than three brands when making a decision. “With information on each car manufacturer readily available, Gen Y has the ability to make a more informed decision about their car purchases by weighing the variables that make a purchase attractive. Information gathering and needs of this generation are paramount and therefore information should be available to the target market in an accessible format,” says Kilpatrick. Family and friends (63%) are the most trusted advisors when it comes to vehicle purchasing research, followed by manufacturer’s websites, which 61% consult for information. “In contrast, only 49% of respondents said they would consult salespeople at dealerships, and only 26% would check social networking sites for information regarding their potential vehicle of choice,” says Kilpatrick. Interestingly, unlike previous generations, Gen Y has a positive image of automotive dealers, with over a third indicating that they would prefer to go straight to the sales process, and skip the negotiation.

“The days of the stereotyped car dealer has certainly changed with many dealers having a complete makeover into one of professionalism, respect and the ability to convey sales knowledge that helps the buyer to make a quick and easy decision. However this does put pressure on the salesman to know their product and the product of their competitor.” What drives Gen Y When it comes to what motivates Gen Y drivers to get into their cars, low cost, convenience and the love for driving are the main reasons. Taking convenience a step further, Gen Y indicated they would consider ride-sharing and rentals, and applying technology to ease the use of these. “Being part of the connected world is important for SA millennials, and what is important one year may not be

important in the next, which means a constant shift in brand loyalties and values. However, carmakers that are able to offer a customer vehicle choices and an ownership experience focused on convenience, and at a lower cost than their competitors, will likely win over these young consumers and build future brand loyalty with them,” she says. “Based on the SA Gen Y’s responses from this survey, the ‘future of mobility’ is likely to be one that is constantly evolving, and shaped by advances in technology. For example, 3D printing is likely to have an impact of some sort on automotive production. But stepping away from the futuristic to the present, affordability and convenience are becoming greater realities especially as South Africa’s transport infrastructure paves the way for more transport options, such as ride-sharing or the Gautrain. All of these are exciting developments for the automotive industry that will need to change with the times in order to remain relevant to Gen Y.”

ental 3/14/14 10:17 AM Page 1 C

CY CMY

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AutoForum - July / August 2014

Stop texting your customers - Kristen Felder

As I consult around the collision repair industry, I am frequently asked about adding texting or SMS campaigns to a repairers marketing plan. Many are surprised when my response is a resounding NO. To many, it seems as though I’m making a mistake in not capitalising on the benefits of texting. After all, studies show that text messages have an open rate of 95%. Comparing it to the open rate of email, 12% to 15%, texting seems like a marketing dream. However, as effective as it may be, there are some very strict rules on how a business can use text messaging or SMS as a communication medium. A handful of federal acts cover the utilization of text messages by business (that is in the US – the Direct Marketing Association in SA governs local laws). As with any communication plan it is important that you research the laws and regulations that protect consumers. Don’t assume that the company you plan to hire is familiar with the law and how it affects your business. At a recent trade event, I posed a few legal questions to different digital marketing representatives and was surprised that not a single salesperson for any of those companies knew about Federal communication laws. Just this year Jiffy Lube was fined $47 million dollars by the US government for texting their customers. In this case, Jiffy Lube obtained cell phone numbers from invoices/ repair orders that had been completed in their stores. They then entered those numbers into a texting system and offered those customers 45% off their next oil change. While the offer itself was beneficial to customers, the method failed to comply with the law. It is imperative that a business using texting with customers have a clear policy for obtaining their “express consent”. It is also important that the scope of that consent be listed in detail. For example, you may ask for permission to contact them via text about their repair status. In this case, you can only text them about their repair. You are not permitted to text them the following month with a free carwash or other incentive. As a business, you must clearly understand that a consumer’s decision to do business with you and provide you their cell phone number for contact is not “express consent”, as the law requires.

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In most cases, I recommend a shop focus their attention on other forms of marketing. For many repairers, the legal resources and management requirements of compliance is just too much. However, if you can’t survive without a texting programme, then we suggest you meet with an attorney who specializes in communication law. Have them assist you in developing a procedure for employees to follow and the forms required for customers to opt-in to your future marketing strategies. In addition, have your attorney review any agreements or contracts you plan to enter with a digital marketing firm. Who is responsible if a non-compliant text is sent? Who is liable should you receive an fine? These cases are only going to increase. Within the last quarter, in the US, class actions have been filed against Papa Johns, Dell Computers and the Huffington Post for similar violations. As more attention is drawn to the topic by the news, the sensitivity of the consumer will grow. Remember, before you implement any product, service or procedure in your business to do your homework. Ask the tough questions and demand complete answers along with documentation from any vendor. For more from Kristen, visit www.colissionhub.com.

Kristen R. Felder is the creator and developer of Collisionhub.com, the premier networking site for the collision-repair industry.

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AutoForum - July / August 2014

Motor Traders Oganisation launches to SA motor sector The Motor Traders Organisation (MTO), an employers’ organisation registered under the Labour Relations Act, has recently been formed and launched – promising an official body to champion the rights of small, medium and micro enterprises in the motor trade industry. The new organisation points out that, as employers of an estimated 660 000 workers, the SMMEs’ survival and success are key to the national economy and the industry alike. According to the introductory media release, the organisation is aimed at “addressing the business owners’ concerns”, and “is geared to speak to government on their behalf. It is already, with the inclusion of the Collision Repair Association, starting to act as an umbrella body within the industry and the door is open to other associations.” MTO Marketing Manager, Noel De Robillard, says the organisation will also use its clout to organise better deals for its members who will be alerted to industry trends and international news. “Importantly, as we seek to fight the good fight on behalf of small business owners we are determined to keep membership fees lower than they have traditionally paid to trade organisations while offering a much better service.”

According to the organisation, part of its offering will include informing members of any steps to introduce new legislation affecting them, as well as making representations on their behalf, to protect their interests; and providing guidance regarding existing laws and regulations, particularly the Consumer Protection Act. It adds that legal experts have been retained to oversee its national labour support services, with free telephonic and email support. De Robillard comments: “(MTO) is already enjoying the support of large dealerships, fuel stations, franchise workshops motor body repairers and auto electrical businesses. And a call centre handles prospective member queries.” He adds that members will have representation at MIBCO, the motor industry bargaining council so, and that benefits such as staff pensions or provident funds and medical aid are available. “Importantly we acknowledge that one of MTOs main functions is to negotiate with trade unions on labour matters and this is covered by the membership fee.”

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PAGE 43

AutoForum - July / August 2014

Technology shaping the fleet and transport sector of tomorrow - Greg Vercellotti

COMMERCIAL

The economic downturn has forced many companies to turn to road as a more costeffective channel for transportation of freight to their desired destinations around SA – and this is especially true of the fleet management industry. Managing the transportation in this industry is not only fundamental to maintaining a competitive advantage, but also to increase profitability, reduce fraudulent activity and with the goods sometimes being on the road for days, essential to ensure that it is managed correctly from a supply and demand perspective as well.

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It’s critical then that relevant considerations are made for businesses that have to juggle such concerns and one way of doing this, is to turn to technology. Examining a software solution that is configured based on best industry practice and implemented into a Goods Receiving and Delivery Solution, will ensure that fleets are managed effectively and that costs associated are tightly monitored and kept to the bare minimum. The answer to this headache is best practice software. Imagine a powerful, fully integrated Goods Receiving and Delivery Solution to optimise this process, whilst minimising fraud and maximising return on operational costs. Couple this with a unique, windows-based platform that is not only easy to use, but has the full capability to store the mass of loads weighed on single or multi axle scales and to restrict entry/departure or any vehicle showing unexpected variances. And, imagine the possibilities if the system interfaces seamlessly with any ERP system thereby synchronising vendor, product, sales orders, goods received notes, purchase orders and information captured and posted from the weighbridge application. The good news is that the fleet management industry doesn’t have to imagine anymore. Today, there is a solution available that is not only robust, secure and traceable, but also has a user friendly reporting application that allows management and operators to customise reports to use the information obtained to make better informed business decisions. What’s more, it is a solution that is configured to clients’ specific

needs based on best practice. That means it is not a start from scratch customisation – saving implementation time. The solution also allows the number of trucks/ vehicles that a business currently has on the roads to be evaluated and a decision made around how many of these are actually necessary. When one has got such major freight cost impacts waiting to affect their business model, such viable decision making is no longer a luxury. In fact, such a technology focus will not only lower cost impacts, but will effectively manage petrol consumption and reduce vehicle wear and tear. With such a solution, companies can also boast improved accountability, customer service and supplier satisfaction, not to mention improved accuracy and efficiency at weighbridges, seeing a 10 – 30% savings in terms of reduced fraud and shrinkage costs. Such figures are justification in itself when you consider that most of these companies operate at a multi-million Rand scale. Technology is shaping the future of many industries and the fleet management sector is no different. Best practice software can provide for an integrated management system for the industry and as such, it is essential that such companies keep abreast of the latest technology as it drives productivity. And while the introduction of new technology can be disruptive in the beginning, it also has the ability to drive productivity and efficiency in a company and reduce operational costs in the long term. It’s about sustainability and future viability. Making the decision of when and how to go about implementing the required technology and equipment needed is a complex process involving both business and technical insight, but one that needs to be undertaken. Investing in the right technology is one of the most critical aspects to any viable business. For businesses operating in such a lucrative and important sector, surely it’s worth it?

Greg Vercellotti is the Executive Director of Dariel

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AutoForum - July / August 2014

Fleet Manager - Are you ready for the changing carbon emissions requirements? “Whether it’s about compliance or purely environmental responsibility, South African businesses need to promptly examine their greatest source of CO2 emissions – fuel consumption - if they are truly vested in the sustainability of their operation and that of the environment,” says Steven Sutherland, Sales Director for RSA and Africa at MiX Telematics, following the recent RFA convention held in KwaZulu Natal. Fuel consumption and the resulting carbon emissions are highly affected by the way in which a vehicle is driven, with factors such as excessive idling and over-speeding attributing to this. “Luckily the trend of using available technology to manage this is on the rise,” says Sutherland; although he states that local fleet operators still tend to be reluctant to make the complete investment required to fully benefit. “The good news is that doing the right thing, like installing a comprehensive fleet management solution, results in a win-win situation: the industry profits through a healthier bottom line and carbon emissions lessen, easing pressure on the environment,” adds Sutherland. “In fact, our experience shows that the cost of installing a MiX solution is covered within nine to twelve months.” “Companies must get serious about how they manage their fleets, which does not mean looking at the ‘cheapest’ monitoring mechanisms to cut costs. Long-term and significant cost savings can only be achieved with the right system in place and, more importantly, a fleet management system that is being fully optimised to properly manage fuel, improve driver behaviour, manage vehicle maintenance and enhance the utilisation of a fleet’s assets,” continues Sutherland. Proper fuel management is known to reduce fuel consumption by 10%, which equates to massive reductions in costs and carbon emissions. In South Africa, it is said* that the government’s implementation of carbon taxes will see businesses paying

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R120 per ton of carbon dioxide emissions on 40% of their direct emissions by 2015. This means that the costs for a fleet which emits 18,500 tons of carbon per year will amount to R885,000 per annum (based on a business example of 600 vehicles each carrying 33 tons per annum and each travelling 200,000 kilometres per annum) “This places huge pressure on industries that are already struggling with high fuel costs and tight margins,” cautions Sutherland. Not surprisingly, there is a keen focus towards the management of carbon emissions, identifying the gaps that exist in current carbon tax policies and understanding how best to optimise these within the fleet sector. “Carbon offsetting plays a key role in the process of fleets becoming more proactive,” states Sutherland. “In fact, carbon offsetting is one of the carbon tax’s six key elements, encouraging companies to make up for the carbon emissions they are unable to reduce through effective fleet management.” “No one is exempt from this process,” concludes Sutherland. “And forward-thinking fleet operators are right at the epicentre of the current dilemma. In fact, when you look at the current tools available to face this challenge, one could rather say that fleet operators are in fact at the centre of the solution going forward.” *http://www.transportworldafrica.co.za/2013/09/19/ carbon-tax-on-transport-industry/

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AutoForum - July / August 2014

Global medium-heavy duty truck market – an overview for 2014 - Sandeep Kar

Frost & Sullivan recently released a new study on the medium-to-heavy duty commercial vehicle market, in which the research company forecasts sales to reach 2.87 million units - driven simultaneously by developed and developing market strength. The overview of the study is quoted below: Commercial vehicle markets are considered leading indicators of economic activity globally. These markets, especially in mature economies, operate in a cyclical fashion typically driven by a confluence of factors, including new truck sales, pent up demand, replacement cycle, interest rates, and inflationary cycles. Heavy-truck market demand in North America and Europe, for example, would show high degrees of cyclicality with seven to eight years between two peaks for the longest time. This trend, however, changed post 2006 with cycles becoming shorter and with artificial and extraneous factors such as regulations and recessionary forces wreaking havoc on truck sales post 2008. While developed markets were reeling under recessionary pressures, emerging markets gave a much needed boost to the global truck market throughout the time period ranging from 2008-2013. However these markets (such as China) are now entering an interesting phase with truck sales; growth rates are posting less dizzying heights, which is a typical phenomenon for any high growth economy as it begins to mature. Another manifestation of this market maturity is a rising demand for better and more value/total cost of ownership delivering trucks, as can be seen in markets such as China and India. Based on Frost & Sullivan’s comprehensive analysis of global commercial vehicle markets, customers, OEMs, and tier-1 suppliers, we are projecting truck sales of 2.87 million medium-heavy duty trucks in 2014, implying that the global markets will intake 110 thousand additional units this year - or a 3.7% growth over 2013. This is expected to be linked to a 3.2 to 3.7% global growth in GDP during 2014. Chart A shows the 2013-2014 comparative analysis of medium- heavy duty truck sales in the global market place.

While 2014 is poised to be a unique year, in many other ways this will be a year when several latent forces will be at play - bringing about major structural modifications in the global market. Volvo’s DongFeng share acquisition will, for the first time in history, peg its sales higher than Daimler, which could unleash a massive competitive force from the German OEM that had previously prided itself as world’s biggest truck manufacturer. This is also the year when global engine platforms will truly take flight, while global platform strategies of major truck OEMs will experience continued momentum. While these and many such news snippets will gain focus, including a steady flow of new truck platform/model introductions that includes at least 15 new truck models in the medium- heavy category, the rising proliferation of distributed electronics in medium-heavy duty trucks will go largely unnoticed. OEMs’ recognition of change in truck sales models from transactional to relational format will continue stoking investments in multiplexing technologies geared at facilitating ingress of soft technologies in trucks. With TCO (Total Cost Of Ownership) becoming a major consideration for truck buyers in both developed and developing markets, the stage is being set for rapid and profound penetration of connectivity technologies in commercial vehicles. These technologies will not only catalyze mobile resource management, but also usher vehicle-to-infrastructure, vehicle-to-vehicle, and related communications aimed at enhancing vehicle uptime, driver satisfaction, and fleet efficiency and safety. Market observers will be delighted at growth in truck sales in key markets, and industry observers will realize the importance in bringing together the amalgamation of green, safe, and smart as the triad for future commercial vehicle design and development during this year. Advanced telematics solutions, such as prognostics, green powertrain technologies, such as natural gas and advanced diesel engines, married with advanced automated manuals/full automatic transmissions and safety enhancement technologies, such as stability control systems, will continue gaining global adoption in 2014. With 97% of all medium-heavy trucks sold this year running on diesel, it will continue dominating the global mediumheavy truck market, while the penetration for natural gas in medium-heavy trucks sold will reach 0.8%. Diesel engines in both developed and developing economies will yield better fuel-efficiency, power density, and emission reduction than ever before. However, an interesting trend is already taking shape, heavy-duty diesel engines in markets such as Europe

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Sandeep Kar is Frost & Sullivan’s Global Director of Automotive and Transportation Research. He leads a team of analysts that research and analyse automotive technologies, economics, applications, and markets, with special focus on global commercial vehicle industry.

and North America will feature shrinking displacement, while heavy duty engines in markets such as China, India, Russia, and Brazil will get bigger than what they used to be. While the industry will largely focus on diesel and natural gas as fuels, we will continue tracking the hybrid/electric truck market not for what it is worth today, but for what these powertrain technologies could deliver in 2020 and beyond, as global energy mix and regulatory pressures continue keeping these technologies in reckoning. Frost & Sullivanâ&#x20AC;&#x2122;s study titled: Strategic Outlook of Global Medium-Heavy Duty Truck Market in 2014, from which the above analysis is drawn, forecasts the global medium-heavy truck GVWR to centre around 18-40MT, while weighted average new medium-heavy duty truck asking prices are forecasted to hover around $40,000 - 60,000 this year. This indicates the emergence and solidification of a new trend: the rise of value trucks. For the past 10 years, the global medium-heavy truck market benefited heavily from new truck sales in BRIC markets, however, these trucks were mostly low-cost trucks offering little applicability and margin potential to the global truck OEMS and tier-1 suppliers. The resultant economic progress in emerging markets supported to some extent by these lowcost trucks, particularly in BRIC markets, has now started to usher â&#x20AC;&#x153;value trucksâ&#x20AC;? into these markets. Value trucks are typically higher priced trucks that are priced 30% lower than premium trucks and 15 to 20% higher than low-cost trucks. These trucks are already making inroads in markets such as China, India, and Russia, and this category of trucks is expected to grow at one of the fastest rates in the global commercial vehicle market. These trucks will deliver better fuel-economy, safety, comfort and convenience, and TCO than low-cost trucks featured in BRIC markets. Nonetheless, the march of value trucks will not likely render low-cost trucks unattractive in emerging markets. While value

trucks enter and thrive in BRIC markets, low-cost trucks will experience ample and growing demand in several Next-11 and African markets, in addition to BRIC and other emerging markets for at least the next 10 to 15 years. In 2014 there will be a strengthening demand for quality used trucks in not only North America and Europe, but also in China - albeit for different reasons (reducing equipment acquisition costs ahead of strengthening emission regulations). A noticeable trend in both developed and developing markets is the rising involvement of OEMs in this market. OEMs are realizing the need for greater integration of digitization, in both new and used truck retailing, in gaining more touch points with truck buyers and also for influencing their purchase decisions. Digital retailing initiatives by truck OEMs will range from website based sales optimization to an integration of digital marketing within existing dealership models and off-store digitization to lead generation through predictive analytics. Big data* will enable several of these new retailing initiatives. In conclusion, while a growth in truck sales of 3.7% may not sound striking, it is indeed so against a backdrop of current and forecasted global geopolitical and economic performance in 2014. On the surface this may seem a year where the global commercial vehicle is trying to get back its groove, but a deeper look shows the structural modifications that are already in motion will make 2014 a year of great relevance in development and introduction of future focused trucks and associated powertrain, chassis, safety, telematics, and regulation compliance technologies. 2014 is the start of trucking future! *Big data is a blanket term for any collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications.

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COMMERCIAL VEHICLES

AutoForum - July / August 2014

Volvo Trucks goes upside down

-Clare Rutkiewicz

Autoforum recently had the opportunity to visit the Volvo Trucks assembly plant, south of Durban. Our tour kicked off with a brief rundown of how the factory got to be where it is and included interesting facts and figures regarding both the staff, and facility itself. Volvo’s truck facility was initially based in Botswana, until 2005 when it moved to ithe current location and production began in 2006. The move was a natural course of action, give that the majority of the brand’s customers are South African based and the cost of transporting the shipped units presented a problem. The plant assembles trucks from knock-down (KD) kits, and builds Volvo trucks and buses, as well as Renault trucks. The SA facility cost around R41 million to build and the company initially found suitably qualified staffing a challenge. This however, saw it create a Merseta accredited training and development division to better equip its young workforce. The division has seen several millions invested in outsourced training, and now also boasts the Volvo Accelerated Development Plan (VADP). The latter involves 5 levels and two of its graduates have been made production engineers. Of the starting trainees, 95% remain working at the plant. The main highlight of our visit, however, was to see the new trucks the brand has recently launched on the SA market, and the new production process associated with these vehicles. This required further training from the Volvo head office in Sweden. The SA plant is proud of its workplace

Volvo Trucks SA’s assembly

health and safety record and in 2012 was awarded the Group’s certificate for just that. The plant covers 21772m2 and an assembly site of 4475m2, which features two assembly lines and a staff compliment of 99 personnel. Line 1 assembles 10 trucks per day and 2350 per annum, while Line 2 has a capacity of 5 trucks per day and is also used for bus chassis. Last year, the group announced the opening of its new parts distribution centre in Jet Park and as yet sees no amalgamations of the brand sites. This despite UD Trucks having joined the fold. The latter has its manufacturing plant in Gauteng. The new process used on the plant’s first assembly line entails that the majority of the components are installed upside down (USD). According to General Manager Glen Owen, this is a far more ergonomical procedure, and means that pipes and other parts are easier to install. The new process began in early May, and is the internationally used model that launched in 2013. Owen continues that the process also cuts down build time by up to 5% while retaining the trusted Volvo Truck quality. The Group is strict in terms of the latter – the plant target is to have no more than 13 demerit points per built unit.

line.

Rodney Moodley from Volvo Trucks, who took us on a tour of the plant.

PAGE 50

Heavy duty exp ert writer Dave Scott with Edito Michael Kirrane, r Clare Rutkiewic Logistics Mana z and ger.

Volvo Trucks also highlights the harbour as one of its major challenges. Harbour congestion, wind, union meetings and power outages all mean overtime due to delayed preassembled components. Despite this though, the Durban plant is in the top 2 of 14 KD plants for Volvo group worldwide.

The demerits are metered out for any issue with the truck during the build and the current average for new trucks is between 12 and 13 demerits. A statistic Owen is rightly proud of. He continues that no new truck is allowed to come off the line unless it passes all physical checks, before it endures a physical road test of 30 km along one of 2 routes.

It is clear that Volvo Trucks SA is here to stay, although it is not a cheap truck. Can SA haulers keep these beauties in their fleets, and will local component makers get â&#x20AC;&#x153;inâ&#x20AC;? on the action? Only time will tell.

But KD means little local content. Owen admits that local content is low but says there â&#x20AC;&#x153;might be new local components for governmental contracts in 2017â&#x20AC;?. AF-2014-08-SOE.FH11 Fri Jul 11 11:09:34 2014

The new USD process has seen a further R4 million investment in the plant, and allows 26 variants to be built there, with the first of the new FH assembled in May.

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AutoForum - July / August 2014

COMMERCIAL VEHICLES

Warranties – a warranted investment to protect your fleet asset - Nicholas De Canha

The manufacturer warranty may be extended through a specialised warranty company, while the standard manufacturer warranty will be upheld by the manufacturer. The aim of the warranty is to protect the buyer’s vehicle asset from mechanical or electrical failure over a certain period of time or number of kilometres – whichever comes first – and generally covers major components, such as that of the engine and transmission, but it won’t include service or maintenance items. When buying vehicle assets for any company, it is crucially important that the fleet manager understands the terms of the warranty, as well as the terms of any additional service and/or maintenance plan and/or warranty extension offered by their providers. For instance, failing to abide by the terms of a service or maintenance plan, whether by missing or being excessively overdue for a scheduled service, places the remainder of the service or maintenance plan at risk. Where a fleet leasing company would typically negotiate with their client as opposed to retail providers, and in such instances, the financial institution may cancel the rest of the contract, but in so doing may also negate the warranty. Additionally, non-genuine services or maintenance - for instance, not taking vehicles to authorised workshops that use genuine parts and the workmanship is guaranteed – can lead to mechanical failure of the vehicles and is also often a cause to negate the service or maintenance plan and warranty. Loss of the service or maintenance plan and warranty is a substantial financial risk, as not only does the company lose what they have already paid to cover the cost of the service or maintenance plan when they purchased the vehicle asset, but they are also then forced to pay out of pocket for any required services or maintenance. A fleet manager should therefore be wary of dealership based service and/or maintenance plans. Though dealership based plans are rare, the challenge with these is that the fleet manager can often only use the plan at that specific dealership, which is very restrictive. The difference in such instances between a retail fleet customer and one who has acquired their vehicle assets

PAGE 52

through a fleet leasing company; is that a fleet leasing company typically does not apply the rules in such a strict manner. For a fleet leasing company, retaining a valuable client relationship is key to their business and as such, they may look to charging a penalty for not keeping to the service schedule, however, as the leasing company owns the asset they take onus of the associated risks and/or costs to ensure the vehicle asset remains in running condition. The fleet leasing company will also undoubtedly hold a strong relationship with the dealership and/or workshop to manage expectations on the warranty and remaining service/ maintenance plan. Another potential exclusion area that retail fleet customers should be wary of, is how ‘driver abuse’ is defined in the terms of the warranty or maintenance plan. A reputable provider will review any claim against the warranty fairly and only where deemed necessary, investigate possible causes that might have led to the vehicle failure and/ or damage. For instance, accident damage will be excluded from the warranty outright, however, it’s not beyond a nonreputable provider to deny or decline claims that may well be warranted and valid, as they define it to be ‘driver abuse’. This again would differ for a company who is partnered with a reputable fleet management company, where the fleet leasing company would have uniformed controls and teams of personnel in place to scrutinise maintenance and warranty contracts to ensure every claim is appropriately managed. Additionally, a fleet leasing company is more open to negotiating fair rates with a client, in instances where there has been ‘driver abuse’ and this can be substantiated by data collected from the telematics unit and/ or the maintenance reports on that vehicle. Overall, a warranty or maintenance plan through a reputable provider can be a good investment when buying a vehicle asset as it provides assurance and coverage for big ticket items, where normally the cost to fix or replace the major components would be exorbitant – particularly on commercial vehicles. The costs of these financial products are close to the actual cost of the service and maintenance and the coverage is typically good.

Nicholas De Canha is the Managing Director of Imperial Fleet Management.

Highway Pilot – The future of trucking?

Why buy from a European Middleman, when you can buy the same equipment directly from the ODM factory at lower prices?

Mercedes-Benz Trucks recently launched “Highway Pilot” – an autonomous driving system for commercial vehicles. Currently installed in the Mercedes-Benz Future Truck 2025 and still under study, it allows the driver to select the system from the instrument panel. Once activated, it uses the truck’s intelligent sensors and computing power, to correct the steering and maintain speed. Says the automaker: “The first impression: autonomous driving is amazingly unspectacular.” For the driver, however, it certainly allows for a lot more freedom and comfort. At the press of a button the seat moves back and pivots to the right by 45 degrees for a comfortable seating position. The “Highway Pilot” is a combination of radar sensors at the front and sides, a stereo camera behind the windscreen, precise three-dimensional maps and V2V/V2I communication - which stands for Vehicle to Vehicle and Vehicle to Infrastructure - the exchange of information between the truck and other vehicles, and with the world outside the motorway. Instead of a conventional instrument cluster it has high-resolution, graphic colour display. On the left the display shows the fuel and AdBlue levels, as well as the engine speed, and on the right the driving time and social data. In the centre it shows the vehicle speed in precise digital form, and also in analogue form using a stylised dial instrument. With the system engaged, the information in the display is reduced to a minimum and all the data appears on the screen of the tablet computer in the centre console - the Human Machine Interface or Human Machine Interaction, or HMI for short. Mercedes says that even gusting cross-winds do not bring the truck off-track - the technology corrects its course more rapidly and safely than any human driver. The driver can take over at any time, to overtake, brake or steer. Another highlight of the system is V2I communication which can communicate between the truck and its next assignment, making sure the next trailer is ready and waiting at the exact right time. Welcome to the future of trucking.

Workshop equipment See our website for our complete range

www.imworkshopequipment.co.za Telephone: 012 664 3556 E-mail: info@integratedmarketing.co.za Come and visit our show room Unit 10, Keymax Industrial Park 1006 Ergon street, Lyttleton ManorPAGE 53

SHOW TIME

AutoForum - July / August 2014

Show Time Automechanika Dubai 2014: Bigger yet again - Michel Malik

Amid a booming regional auto aftermarket, Automechanika Dubai thundered into town, having grown by nearly a fifth in exhibition space, with 14% more exhibitors. The show attracted well over 28 000 visitors. In fact, the 12th edition of Automechanika Dubai is now 17 times larger than its inaugural edition way back in 2003. Very usual for June was the stifling hot weather in the United Arab Emirates - with minimum tempratutures of 35 degrees at night rising to high 40s in the daytime. All I can say is thank God for the air conditioning everywhere.

SHOW TIME

Running for three days at the Dubai International Convention and Exhibition Centre, the Middle East’s largest automotive aftermarket event was opened by H.E. Matar Al Tayer, Chairman of the Board and Executive Director of the Dubai Roads and Transport Authority.

PAGE 54

Covering more than 56,000sqm of space across 12 halls, Automechanika Dubai hosted 22 country pavilions, including Australian, South African and the world’s largest German Pavilion for the automotive aftermarket industry. The event involved a wide spectrum of products, including automotive parts, tuning, workshop equipment, bodywork and paintwork, car wash, IT and management, tyres and batteries and the latest automobile services. More than 35 international trade associations ensured trade buyers and industry professionals gained key insights into the latest trends and developments shaping the auto aftermarket globally.

of Automechanika Dubai, commented: “Automechanika Dubai has traditionally played a significant role in the ongoing development of the Middle East’s vibrant aftermarket industry by serving as a show window to the region for a wide range of international and local brands.” “Being based in Dubai – a major import and re-export hub driving trans-regional trade – Automechanika Dubai’s growth reflects the increasing global interest in doing business in the region.” The strong growth of auto parts and services comes as Dubai Customs released figures showing that the country’s auto parts trade was valued at US$10.9 billion in 2013, an increase of eight percent over 2012. Global analysts Frost & Sullivan also estimate that the Gulf Co-operation Council’s consumption of auto components will be worth US$ 14.46 billion by 2016. That came as good news to the companies out in full force at Automechanika Dubai, which included 205 exhibitors from the UAE – a 41% increase year-on-year. The event has also recorded an 11% surge in international exhibitors taking part, with 1,490 exhibiting compared to 1,336 in 2013. The flagship automotive aftermarket event also featured the popular Automechanika Academy – a series of seminars and workshops presented by leading experts and prominent industry figures. The next Automechanika Dubai will be held from the 2nd to the fourth of June 2015

Some of the big-name companies on the exhibition floor included Anest Iwata, Axalta (promoting its Cromax brand), Bosch, Al Habtoor Motors, Arwani (importer of Concept Paints and Globaljig, ), Al Dahiya (importer of Blackhawk and R-M paints), Sata and Central Trading Company (importer Akzo Nobel products and more). Ahmed Pauwels, CEO of Epoc Messe Frankfurt, the organiser

From Left: Michael Dehn, Group Exhibitions Director Epoch Messe Frankfurt , Michael Johannes, Brand Manager Automechanika, Ahmed Pauwels, Chief Executive Officer Epoch Messe Frankfurt and Michel A. Malik, BodyShop News Publisher

Robert Kaiser has been intimately involved in the motor industry for more than 30 years; he established Retail Motor Consultants in 2002, a consultancy providing management, marketing, communications and business relationship management services and ,through an associated company, BBBEE services for both corporate and SME businesses.

WHY A FITMENT CENTRE NEEDS DIAGNOSTICS • • • • • • •

Steering angle sensors (SAS) which may require recalibration after alignment. Tyre Pressure Monitoring systems (TPMS) which may require coding. Batteries which require service resets and system updates Electronic Parking Brakes which require releasing for brake replacement ABS for the bleeding of electronic braking systems Ride Height pre-set required on some Air suspension vehicles Engine Management light reset required after some exhaust replacements

Screw compressors, piston compressors complete with silencers and air dryers.

David Barendse 082 450 6109

Tel: 011 908 5199 Fax: 011 864 1588 gts@telkomsa.net

Proud suppliers of the following top brands:

PAGE 55

Aftermarketplace AutoForum - July / August 2014 WinAlign HD truck wheel alignment system Leaderquip brand Hunter has launched the all new WinAlign HD Truck Wheel Alignment System. The new units boasts the following: it requires no jacking, compensates all sensors at once, offers a short roll comp and features three axles live. In addition, all measurements are able to be viewed at once and the operator can diagnose tyre wear conditions. Autolocking turnplates and built-in turnplate bridges for rolling comp as well as the ability to align without unhooking from tractor and while using an optional kingpin adaptor without tractor, makes for an operator friendly system. The Hunter WinAlign HD Truck Wheel Alignment System presents results in just four minutes and allows for tyre wear angles to be checked in just under 3 minutes. It is also accurate to 600 inches.

AutoForum - July / August 2014

PCL’s new brake bleeders PCL has introduced a new line of brake bleeders that, it says, make light work of bleeding and refilling the brake systems of all types of vehicles. Simple and efficient to operate, the brake bleeders can be used quickly and cleanly by one person without the need for assistance. The product works by drawing fluid from the bleed nipple, enabling either bleeding or full replacement of fluid in the system, and are also suitable for bleeding other closed fluid systems, such as clutch systems. They are not, however, not to be used for explosive fluids, such as petrol and acetone. The BB143112 model features a refilling/replenishment system, making for even easier single person operation and does not require specialised brake reservoir caps. The brake bleeder handle can be used for both hanging and roll up.

For more features and benefits, view the video at http:// www.youtube.com/ watch?v=tJvYLWMBv2E. Contact Leaderquip on 011 334 1680 or email info@leaderquip.co.za. The unit will also be showcased at AutoAfrica 2014 in Lusaka, Zambia from 28-29 August.

PCL’s Brake Bleeders operate on a working pressure of 6-12 bar (87-174 psi) and an air inlet of Rp π, with air consumption of 180 l/min (6.4 cfm) at 8 bar. The container holds 1.2 litres with a minimum vacuum of 60%. For a full product specification, you can visit the website or use the following web address: http://www. pclairtechnology.com

PAGE 56

Fuchs launches maintain diesel effect Fuchs has launched a new product that it believes will make diesel owners a lot more content with their vehicles.

Monroe is cool Monroe used the cold months to launch its Monroe Is Cool project in South Africa. Starting in Gauteng, the brand’s project is expected to reach all corners of the country over the next six months. The company explains that its project involves two “Monroe Public Relations brand ambassadors” visiting fitment centres and workshops around the country – all in an effort to find out how those customers are experiencing the level of service and support they are getting from Monroe. They will also be busy gathering some research data, promoting the brand and educating on the need to replace shocks at regular intervals.

The company explains that its ‘Maintain Diesel Effect’ is a fuel additive which, it claims, improves the properties of diesel fuel for both single and constant dosage. It can be used on all grades of diesel and contains certain metallic compounds that keep the fuel system clean and the fuel stabilised. It is also described as simultaneously preventing the fuel tank from being contaminated by deposits and corrosion. Fuchs adds that the product maintains engine power while reducing fuel consumption and exhaust emissions - all without compromising the engine’s nozzle’s cleanliness and performance. John Anderson, Automotive OEM Manager - Fuchs Lubricants South Africa comments: “A clean nozzle influences the correct fuel dosage. This is essential as contaminated nozzles constrain the correct fuel dosage, which could result in a reduced volume stream, spray expansion, engine power and an increase in exhaust emissions.”

Kitted out in eye catching corporate wear and partnering with Ford in their racy new Ford Focus ST the Monroe team of Emma and Marsha are a hard combination to miss. We are expecting their aim of increasing feet through fitment centre doors, to be pretty effective, For more information, visit the Facebook page https://www.facebook.com/MonroeSA?fref=ts or follow them on Twitter https://twitter.com MonroeShocksSA

PAGE 57

DIRECTORY LISTING

Aftermarketplace Directory

To advertise your listing in AutoForum Aftermarketplace Directory contact us on 011 466 3733 or email: info@AutoForum.co.za

AUTO ELECTRICAL Auto Cosmos - Electrolog

Electronic Parts (Electrical) Catalogue

012 327 6210

Bosch

Parts, Accessories & Batteries

011 651 9600

Parts Incorporated Africa

Automotive Components & Accessories

011 879 6000

Trysome Auto Electrical

Parts, Accessories & Batteries

011 823 5650

Connoisseur Automotive

Air Conditioning Specialists

021 419 7188

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Diagnostics Equipment

0861 762 766

Spray Booths, Chassis Straighteners & Welding Equipment

011 444 6454

Aer-O-Cure

Pressure Washers & Vacuum Cleaners

011 444 6454

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012 330 0540

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Tools & Garage Equipment

011 879 6000

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011 444 6454

Beissbarth

Wheel Alignment Equipment

011 651 9600

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Diagnostic Equipment

011 651 9600

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012 653 0364

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012 330 0540

Integrated Marketing

Sales, Service & Repairs to all Equipment

012 664 3556

Leaderquip

Wheel Alignment Equipment

011 334 1680

Launch

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011 397 3073

Midas

Diagnostic Tools & Garage Equipment

011 879 6000

Snap-on Diagnostics

Diagnostics Equipment

086 176 2766

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021 949 0010

Aer-O-Cure

Tools & Garage Equipment

011 444 6454

Beissbarth

Wheel Alignment Equipment

011 651 9600

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Diagnostic Equipment

011 651 9600

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012 653 0364

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Tyre & Lifting Equipment & Tools

012 330 0540

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Sales, Service & Repairs to all Equipment

012 664 3556

Ital Machinery

Brake & Clutch Machinery

011 483 3737

John Bean - Snap-on Equipment

Wheel Service Equipment

086 176 2766

Leaderquip

Tyre & Lifting Equipment & Tools

011 334 1680

Launch

Tyre & Lifting Equipment & Tools

011 397 3073

NAPA/Midas Group

Tools & Garage Equipment

011 879 6000

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086 176 2766

Wheelquip

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021 949 0010

Alfa Brake Drums & Discs

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011 608 0801/3

AUDI Parts

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086 043 4838

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011 651 9600

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011 630 3000

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011 879 6000

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080 064 7726

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011 879 6000

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Automotive Components & Accessories

011 879 6000

Trysome Auto Electrical

Electrical Parts, Accessories & Batteries

011 823 5650

Turbo Exchange

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PAGE 58

Secure the future of your workshop! Bosch - your optimal workshop concept partner

Drive your business forward with Bosch through the automotive evolution and stay ahead of the pack. Bosch offers various workshop concept solutions meeting your individual needs. As a Bosch workshop concept partner you can offer your customer first class quality and you can profit from distinct advantages when partnering with Bosch: Internationally recognised brand Distinctive corporate identity Effective marketing and advertising programme Customer retention programme Comprehensive technical support portfolio, including ESI[tronic], Bosch diagnostics, technical training, hotline and field support Quality automotive parts at competitive prices National Deal Partner support programme Fleet Program Share the success of a strong brand in the workshop market, for more information, visit www.boschservice.co.za, or call Customer Careline 0861 267 247 *Terms and conditions apply

PAGE 59