AutoForum July 2012

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July 2012

I N F O R M E D

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NEWS AFRICA

NEWS AFRICA

IN PARTNERSHIP WITH AUSTRALIAN BODYSHOP NEWS

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I N N O V A T I V E

No Dent in Motor Industry Jobs DAYTONA’S PUSH ON SUPER BRANDS

N E W S F O R UM

Inside i Store for BMW

CHECKED YOUR corporate governance?

Unbranded, untraceable & dangerous Catalytic Converter Sector - Still Under Threat PAGE 1

AutoForum - July 2012

Motor Electrodiesel (SA)(Pty)Ltd The Auto Electrical Solution

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MINIMUM OF 12 MONTHS WARRANTY ON ALL OF ITS PRODUCTS BOSCH

INVENTED FOR LIFE

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July 2012

CONTENTS 14

16

Cover Stories No dent in motor industry jobs

14

Catalytic converter sector - still under threat

20

i Store for BMW

22

Checked your corporate governance?

48

Unbranded, untraceable & dangerous

58

Daytona’s push on super brands

59

Trade Talk Highlights of global and local industry news

06

Thank you to McLaren for our cover photo.

News Forum

36

Diesel engine exhaust fumes can cause the big C

12

Editorial

No dent in motor industry jobs

14

International Engine of the Year Awards 2012

16

Langdon takes the helm at Federal Mogul aftermarket

18

Catalytic converter sector under threat

20

i Store for BMW

22

Ipsos Quality Awards 2012

24

US dealers sue Mahindra

26

There is a little relief in sight. The drop in the fuel price over June and July has certainly made me feel slightly less short of breath than I did in the first half of the year, but it has a long way to go before we all start celebrating. If you are based in the Western Cape and have a bad habit of not paying fines or talking on your cell phone however, I would imagine you may soon be hyperventilating, with the news on how that province is planning on cracking down on serial traffic offenders and will not be issuing license renewals to holders of unpaid fines.

The really good news however, is that July signals that we are on the downward slide towards the end of the year. Hold on tight for the rest of this bumpy 2012 ride.

Auto Saftey New EU Regulations on safety systems published

28

Driving under the influence …. of fatigue

30

Cars getting safer for pedestrians

32

School bus safety programme

34

56

Auto Training 36

Engineering star

BodyShop News More support for competition-stimulating parts bill

40

EDITOR: CLARE RUTKIEWICZ CONTRIBUTORS: AUSTRALIAN BODYSHOP NEWS DAVE SCOTT ROY COKAYNE Colin Windell Graham Bush ROBERT KAISER

ADVERTISING: GRANT WEST

WARWICK ROBINSON C: 076 727 8161 C: 082 855 7750 T: 011 466 3733 F: 086 627 1135 SIMONE TREKI

C: 082 411 4668 PRODUCTION: KAZ NEL EMAIL: INFO@AUTOFORUM.CO.ZA

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

AutoForum has an ABC circulation of 12952 ABC (June - Dec 2011)

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

The winds of change

44

Corporate governance: When last did you give it thought?

48

Misa supports Youth Rally 2012 Programme

51

Making trade shows work for you

52

Uncertain times call for better data

54

Aer-O-Cure Alfa International AUDI Parts Autocosmos/Electrolog Bosch BSE Control Instruments / Gabriel Drivelines Federal Mogul Champion First National Battery GMSA Highveld Garage Equipment Hofmann Megaplan Integrated Marketing Ital Machinery Leaderquip MED Midas Group MISA Motor Merchandise Partquip Parts Incorporated / Midas Group SABAT Snap-on/John Bean Trade Fair Travel Tuff Floors Trysome VW Parts Wheelquip

Commercial Vehicles Giving a key in exchange for acquiring a risk

56

Unbranded, untraceable & dangerous

58

Show Time Brand boosting for Daytona

59

Automechanika 2012 and looking forward to JHB 2013

62

New Releases 64

After-Marketplace Directory Directory listings

I N N O V A T I V E

Advertisers Guide

Business Forum

Latest offerings of local products

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66

59

38-39, OBC 29 31 64 19, IBC 25 33 5 9 15 11, 49, 55 51 17 53 26,34 41 2-3 23 62 37 27 35, 65 47 21, 57 30 63 42-43 7 13

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.

Trade Talk

AutoForum AutoForum-- July July 2012 2012

www.AutoForum.co.za

Tenneco celebrates 100th m shock Tenneco, manufacturer of Monroe and Rancho shock absorbers in SA, celebrated the production of its 100th million shock absorber in mid June.

Most sustainable The BMW Group has walked away with two honours at the recent SAM Group Sustainability Awards – earning itself Gold Class Status and the title Sector Leader, as it showed the best result among all vehicle makers.

SAM Group is headquartered in Zurich and rates companies on their sustainability - this was the first ceremony held in Germany.

Michael Baldinger, CEO of SAM Group, commented: “The BMW Group is a leader in terms of innovation management and has demonstrated a clear commitment to reducing negative environmental impact along the entire value chain.”

The company was named most sustainable auto company in the DowJones Sustainability Index for the seventh consecutive year in 2011, and has for the past 10 years been listed in the FTSE4Good index, one of the most important indices for companies focusing on sustainable management. It also clinched the top spot last year in the vehicle makers category, in the CDP Global 500 Ranking.

Partinform Nelspruit Nelspruit hosted another very successful Partinform show in June. In excess of 200 visitors were able to engage in one-on-one discussions with representatives from the Partinform brands, whilst enjoying light refreshments and the opportunity to win various prizes, based on their knowledge of the brands on show.

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The milestone shock was produced at the company’s St Truiden facility in Belgium, which is one of five Tenneco ride control plants in Western Europe. Over the last five years the site has enjoyed an investment of €20 million, the majority of which was in the manufacturing plant.

Audi Q7

Says Sandro Paparelli, Vice President and General Manager, Ride Control Europe: “St Truiden is a critical point in Tenneco’s global map. From here we provide advanced engineering for ride control applications worldwide, support the world’s vehicle manufacturers as they expand internationally with common vehicle platforms designed in Europe and produce products and components for other Tenneco plants across the globe.”

The celebrations were attended by Flemish MinisterPresident, Kris Peeters, who commented: “I am proud that Tenneco’s most important innovations are developed in Flanders. It proves that Flemish pioneering craftsmanship is also recognised by major foreign companies. The transformation of the automotive industry into an innovative and future-orientated mobility industry spearheads the Flemish government’s new industrial policy.”

Visit vw.co.za and follow us on facebook.com/vwsa OGILVY CAPE TOWN 49911/E

Spark Plug (each)

Front Brake Disc

Front Brake Disc

Part No.: JZW615301A Golf 5 2004 - 2007 Caddy 2004 - 2007 Price: R 467.32

Part No.: Beetle Golf 4 Jetta 4 Polo Price: R 439.71

Front Brake Pads Part No.: JZW698151A Golf 4 1998 - 2001 Jetta 4 1999 - 2001 Polo 2003 - 2007 Price: R 636.12

Starter Battery (44Ah)

Starter Battery (72Ah)

Starter Battery (61Ah)

Rear Shock Absorber

Front Shock Absorber

Rear Shock Absorber

Front Shock Absorber

Part No.: JZW905603D Beetle 2003 - 2007 Golf 4/5 1998 - 2007 Jetta 4 1999 - 2006 Passat 2001 - 2007 Polo 2003 - 2007 Price: R 63.73

Part No.: JZW513025 Beetle 2003 - 2007 Golf 1998 - 2006 Jetta 1999 - 2006 Price: R 700.96

Wiperblades Part No.: JZW998002G Golf 5 2006 - 2007 Price: R 221.66

Part No.: Beetle Golf 4 Jetta 4 Price: R 412.52

JZW615301 2003 - 2007 1998 - 2006 1999 - 2006

Part No.: JZW915105C Jetta 4 1999 - 2006 Caddy 2004 - 2007 Passat 2001 - 2007 Touran 2004 - 2007 Sharan 1999 - 2000 Transporter 1999 - 2004 Golf 4/5 1998 - 2007 Polo 2003 - 2007 Price: R 658.05

Part No.: JZW413031A Eos 2007 Golf 5 2004 - 2007 Passat 2006 - 2007 Price: R 1 187.95

Wiperblades Part No.: JZW998002H Golf 4 1998 - 2006 Jetta 4 1999 - 2006 Price: R 138.92

Part No.: JZW915105A Passat 2001 - 2007 Transporter 1999 - 2007 Golf 4/5 1998 - 2007 Crafter 2006 - 2007 Caddy 2004 - 2007 Jetta 4 1999 - 2006 LT 2003 Polo 2003 - 2007 Touran 2004 - 2007 Price: R 1 026.00

Part No.: JZW513025E Polo 2003 - 2007 Price: R 364.80

Rear Brake Pads Part No.: JZW698451 Caddy 2004 - 2007 Eos 2007 Golf 5 2004 - 2007 Passat 2001 - 2005 Price: R 571.79

Front Brake Disc

JZW615301D 2003 - 2007 1998 - 2006 1999 - 2006 2003 - 2007

Part No.: JZW915105 Transporter 1999 - 2007 Golf 4 1998 - 2007 Jetta 4 1999 - 2006 Passat 2001 - 2007 Touran 2004 - 2007 Caddy 2004 - 2007 Beetle 2003 - 2005 Polo 2005 - 2007 Sharan 1999 - 2007 Price: R 1 026.01

Part No.: JZW413031B Beetle 2003 - 2007 Jetta 4 1999 - 2006 Golf 4 1999 - 2006 Price: R 939.26

Front Brake Pads Part No.: JZW698151 Golf 4/5 1998 - 2007 Jetta 4 1999 - 2006 Polo 2003 - 2007 Beetle 2003 - 2007 Caddy 2004 - 2007 Price: R 399.00

Introducing Volkswagen’s Economy Parts range.

The affordable way to keep your older Volkswagen a Volkswagen.

Volkswagen’s Economy Parts are an addition to the current range of parts that maintain Volkswagen’s quality standard. They are specifically designed for Volkswagens and Volkswagen Commercial Vehicles that are out of warranty and are five years or older. For more information, please contact your nearest participating Dealership or visit vw.co.za today.

Volkswagen Economy Parts. The intelligent choice for older Volkswagens.

*Part applicability dependant on chassis number. Prices are recommended retail inclusive of VAT & subject to change without notification.

Prices valid from 1 May 2012 to 1 December 2012. While stocks last.

Trade Talk

AutoForum - July 2012

Updated TradeXchange TransUnion Information Solutions recently announced that its dealer-to-dealer product – TradeXchange – can now be used for all vehicle types, including passenger, light, medium and heavy commercial vehicles, as well as bikes.

Other new benefits for dealers include faster, easier to use drop down menus for uploading vehicle details – such as colour, accessories and factory-fitted options details to glass, tyre, exterior, interior and mechanical condition; a section that allows dealers to record details of any repairs that are required; and the ability to load up to 10 images per vehicle.

The product also boasts new tools to assist sellers to set realistic prices on vehicles, which includes the availability of a three-month trading history on a specific vehicle make and derivative. Low volume sales vehicles, which do not have trade and retail values included in the Auto Dealers’ Guide, can now be loaded with estimated values.

But it’s not just sellers that will be delighted with the updates - buyers also benefit. The additional information available on each vehicle listed means that it’s now easier to accurately assess the condition of the vehicles and evaluate their reserve price in relation to current market conditions. They can also place a bid, print out details and view the associated Verification Report all on one screen.

www.AutoForum.co.za

Veyance partners with local hose manufacturer Veyance Technologies Africa has announced that it has partnered with local automotive hose manufacturer, Tensile Rubber Hoses (Pty) Ltd, in an effort to support local industry. The latter is a BEE Level 4 company that employs over 45 South Africans on a permanent basis, and who are multi-skilled through in-house training.

As Paul van Zyl, Marketing Manager, Veyance Technologies Africa, explains: “We have been building a relationship with the company since 1989, and are proud to be associated with a quality-driven manufacturer who has a reputation for producing products of international standard, and supporting local employment initiatives.”

The Pretoria-based company will provide Veyance with what is described as “a comprehensive, vertically-integrated suite of services, ranging from initial concept and design, right through to manufacture, test and supply.”

The components are manufactured from the highest quality rubber compounds, which are mixed at their modern compounding facility and will be based on Veyance Technologies’ specification requirements. The product range includes the following; - Curved Reinforced and Straight Radiator Hoses - Braided Fuel Hoses - Flexible Radiator Hoses - Heater Hoses - Fuel Filler and Automotive Breather Hoses.

The products are ISO 9001 approved, and an average of 20 000 automotive hose units are currently manufactured to customer requirements on a monthly basis.

Tensile Rubber Hoses is set to manufacture Goodyear-branded rubber hoses for the local automotive markets.

The Veyance ‘Buy Local, Support Local’ initiative supports local rubber technology companies.

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It’s A Go | FMCF | 1826 | AF

WE’VE PUT IT TO THE TEST NOW WE EXPECT YOU TO Champion oil filters are designed to provide the best engine protection, thanks to the extra pleating and the thicker and stronger filtration paper. We’ve measured our oil filter against an aftermarket competitor and Champion came out tops. Not surprising, as all Champion oil filters meet original equipment specifications. We’ve got the dirt.

www.federalmogul.com Customer care number: 0800 555 832

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Trade Talk

AutoForum AutoForum-- July July 2012 2012

www.AutoForum.co.za

BotY winners announced

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Last month saw the 2012 installation of the Sewells Group Businessman of the Year (BotY) banquet. The awards honoured three motor dealers as South Africa’s top achievers with best practice performances in small, medium and large categories.

As Tania Barlow, MD of Sewells SA, commented: “Our finalists – especially the winners – have shown their ability in providing exemplary service to their motoring customers in every aspect of their businesses. They continually prove that to succeed in a highly competitive environment and against the background of a testing economy, one has to be able to meet and exceed the highest expectations of everyone’s motoring needs. These fine businessmen do that continually and reach outstanding levels of delivery across the five traditional departments (new cars, used cars, workshops and F&I – financial services). Each year these finalists and the companies they run show proof that can equal and even better the best in the world.”

Large category: Johan Coetzee - Land Rover East Rand.

Medium category: Schalk Fourie - NTT Toyota Mokopane.

Small category: Bertus van Vuuren - New Vaal Motors Bethlehem.

“Most Improved Performance Group” was awarded to Jaen van Aardt of Datnis Nissan King William’s Town.

The winners’ group at the Sewells Businessman of the Year banquet included (from left) John Templeton, of Sewells; Derik Scorer, Chairman of NADA; Brian Riley, MD of WesBank; Jaen van Aardt, of Datnis Nissan King William’s Town (Most Improved PG dealer); Tania Barlow, MD of Sewells Group SA; Johan Coetzee, Land Rover East Rand, winner large dealer category; and Schalk Fourie, NTT Toyota Mokopane, winner medium dealer category.

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AutoForum - July 2012

The latest global news

Diesel engine exhaust fumes can cause the big C

L

ast month, the International Agency for Research on Cancer (IARC), part of the World Health Organisation (WHO), classified diesel engine exhaust as carcinogenic to humans (Group 1).

It’s not the first time we have been told that such fumes are dangerous, of course. In 1988, IARC classified diesel exhaust as ‘probably carcinogenic to humans (Group 2A)’, and after that, an advisory group that reviews and recommends future priorities for the research centre, recommended further studies on diesel exhaust as a high priority.

In March, the results of a large scale study by the US National Cancer Institute and the National Institute for Occupational Safety and Health on the occupational exposure to such emissions in underground miners, showed an increased risk of death from lung cancer in exposed workers. The scientific evidence was reviewed thoroughly and the overall conclusion was that there was sufficient evidence in humans for the carcinogenicity of diesel exhaust.

The findings showed that diesel exhaust is a cause of lung cancer and also noted a positive association (therefore limited conclusive evidence) with an increased risk of bladder cancer.

Petrol exhaust is still deemed “possibly carcinogenic to humans (Group 2B)” - which remains unchanged from the previous evaluation in 1989.

The reality is that large populations are exposed to diesel exhaust in everyday life, whether through their occupation or through the ambient air, with sources including motor vehicle exhausts, as well as exhausts from other diesel engines, and from other modes of transport including diesel trains and ships, and from power generators.

Increasing environmental concerns over the past two decades have resulted in regulatory action in North America, Europe and elsewhere with successively tighter emission standards for both diesel and petrol engines. The

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researchers highlight that there is a strong interplay between standards and technology – standards drive technology and new technology enables more stringent standards.

For diesel engines, changes required to lower associated risks in diesel fuel include marked decreases in sulphur content, changes in engine design to burn diesel fuel more efficiently and reductions in emissions through exhaust control technology.

The big question remains, however, “how much do all of these changes actually lower the health risks?” and “how much exposure increases the risk?” Realistically it will take time for existing fuels and vehicles without these modifications to be replaced, particularly in less developed countries, such as ours.

Dr Kurt Straif, Head of the IARC Monographs Program, commented: “The main studies that led to this conclusion were in highly exposed workers. However, we have learned from other carcinogens, such as radon, that initial studies showing a risk in heavily exposed occupational groups were followed by positive findings for the general population. Therefore actions to reduce exposures should encompass workers and the general population.”

IARC Director, Dr Christopher Wild, agrees: “While IARC’s remit is to establish the evidence-base for regulatory decisions at national and international level, today’s conclusion

sends a strong signal that public health action is warranted. This emphasis is needed globally, including among the more vulnerable populations in developing countries where new technology and protective measures may otherwise take many years to be adopted.”

So what does that mean for our industry?

News agency Bloomberg cited diesel engine makers and car companies in the northern hemisphere as being quick to point out that emissions from trucks and buses have been slashed by more than 95% for nitrogen oxides, particulate and sulphur emissions. Despite this, however, Christopher Portier, IARC working group Chairman said: “Given the additional health impacts from diesel particulates, exposure to this mixture of chemicals should be reduced worldwide.”

Other reactions to the findings include that of the European Automobile Manufacturers’ Association, which expressed surprise at the announcement and said that the industry would “have to study the findings in all their details.”

The New York Times quoted the Medical Director of the American Cancer Society, Dr Otis Brawley, as praising the ruling, saying the society had “for a long time had concerns about diesel”.

“I don’t think it’s bad to have a diesel car,” Brawley added.

“I don’t think it’s good to breathe its exhaust. I’m not concerned about people who walk past a diesel vehicle, I’m a little concerned about people like toll collectors, and I’m very concerned about people like miners, who work where exhaust is concentrated.”

So, what can you do?

• Retrofit engines with an exhaust filtration device to capture DPM before it enters the workplace.

• Locate the exhaust pipe so that diesel fumes are directed away from the operator and nearby workers.

• Use a catalytic converter to reduce carbon monoxide, aldehydes, and hydrocarbons in diesel fumes. These devices must be used with low sulphur fuels. Using converters with high-sulphur diesel fuels may do more harm than good to air quality.

• Ventilate. Open roof vents, doors and windows, roof fans, or other mechanical systems can be used to move fresh air through work areas.

• Regular maintenance of diesel engines is essential to keep exhaust emissions down. Follow the manufacturer’s recommended maintenance schedule and procedures.

• Turn off engines when vehicles are stopped for more than a few minutes. Idling wastes fuel and increases diesel emissions.

• With older vehicles, use electric starting aids such as block heaters to warm the engine, avoid difficulty starting, and thereby reduce diesel emissions.

• Use respirators as an interim measure to control exposure to diesel emissions.

AutoForum - July 2012

NEWS FORUM

AutoForum - July 2012

No dent in motor industry jobs - Roy Cokayne

T

he downgrading of the motor industry’s export projections for this year to 270 000 from 300 000 units because of the economic problems in Europe, have failed so far to dent job creation in the industry.

Naamsa reports that a total of 509 new jobs were created in the motor manufacturing industry in the first quarter of this year, despite the poorer vehicle export prospects. Total industry employment improved by 1.8% to 28 656 jobs in the last week of March, from the 28 147 jobs at the end of December.

According to Naamsa, two major vehicle manufacturers recruited new workers during the first quarter, while employment trends at the other plants remained stable. An average of 28 292 people were employed by the industry last year.

The downward revision in exports could have been expected to result in stable employment levels and possibly even some job shedding. Naamsa has highlighted the growing importance of Africa as a new vehicle export destination, with new vehicle exports into the continent increasing year-on-year by 58.6% to 67 442 units last year, up from 42 533 units in 2010. By contrast, new vehicle exports to Europe increased last year by 7.9% to 97 882 units from 90 734 units in 2010.

South Africa’s automotive industry exported a total of 272 457 vehicles to 80 countries last year. Exports to the Eurozone accounted for 35.9% of the total, while exports destined for African countries represented 24.8% of the total. Vehicle exports to Africa have grown by

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74% in the past four years - from 38 767 units in 2007, to 67 442 units last year.

In the same four-year period, vehicle exports to Europe have rocketed by 214% - from 31 191 units in 2007, to 97 882 units last year.

Nico Vermeulen, Naamsa’s Executive Director, said despite intense competition in African markets from Chinese and Indian vehicle importers and second hand vehicles supplied from Japan, the anticipated relatively high economic growth projections for Africa “should support further growth in SA vehicle exports to African countries, while the recession in Europe is likely to impact negatively on export sales into that region”.

Vermeulen stressed that export sales would remain a function of the performance and direction of global markets. This led to the downward revision of Naamsa’s export forecast. He added that vehicle exports into Europe were likely to soften, because of the recession and debt crisis in the Eurozone.

However, Vermeulen said projected higher exports to African countries and factoring in the contribution of the new Ford global compact vehicle programme and the new BMW 3 Series export programme over the balance of the year, should enable the industry to achieve export numbers similar to or slightly below those recorded last year.

“Light commercial vehicle export sales in particular should register strong growth,” he said.

Ford’s new global compact vehicle programme involves the new Ranger pick-up.

Roy Cokayne is a senior financial reporter for Business Report.

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AutoForum - July 2012

NEWS FORUM

International Engine of the Year Awards 2012

T

he results of the 2012 International Engine of the Year Awards were announced in the middle of last month, at Engine Expo in Stuttgart, Germany. Voted tops by an international jury of some of the world’s most respected motoring journalists, Ford’s 999 cc three-cylinder turbo engine was named the overall winner of the International Engine of the Year Award.

This is the second win for the automaker, with last year’s honour going to the sub-1-litre winner, Fiat’s two-cylinder ‘Twin Air’ unit. As Dean Slavnich, Editor of Engine Technology International and Co-Chairman of the International Engine of the Year Awards, comments: “This was a dominant win by the Ford engine and it is important to remember that the overall engine of the year award is not linked to engine capacity or any other criteria beyond the excellence of its engineering and the degree to which it delivers its capabilities in a vehicle and within the broader marketplace. That the small capacity engines continue to impress the most in overall terms, even against the larger, higher performance engines, says a great deal about how the automotive industry has developed in recent years.”

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The Ford engine was also named ‘Best New Engine’ and won the ‘Sub 1-litre’ category, while GM’s ‘Range Extender’, the 1.4-litre internal combustion engine that sits within the 2012 European Car of the Year, the Chevrolet Volt, took the title ‘Green Engine of the Year’.

In the last of the non-capacity specific classes, Ferrari once again reigned victorious with its 570 bhp, 4.5-litre V8 engine as featured in the 458 Italia. The engine scooped both ‘Best Performance Engine’ and ‘Above 4-litre’ category trophies for the second successive year.

BMW claimed the top spot in four category wins, including the ‘3-litre to 4-litre’ category for its 4-litre V8 found in the M3; the ‘2.5-litre to 3-litre’ category for its 3-litre bi-turbo sixcylinder petrol engine, found in the 1 Series M coupe, 335is and Z4 35is; the ‘1.8-litre to 2-litre’ category for its 2-litre twin turbo fourcylinder petrol engine found across its range; and in the ‘1.4-litre to 1.8-litre’ category for its 1.6-litre four-cylinder turbo engine co-developed with PSA Peugeot Citroën, which was the co-recipient of the same award.

Audi scooped the ‘2-litre to 2.5-litre’ category for its 2.5-litre five-cylinder turbo engine found

in the Audi TT RS and RS3 Sportback, while Volkswagen’s much-admired 1.4-litre TSI Twincharger engine, once again defended its crown in the ‘1-litre to 1.4-litre’ category.

The category winners are: Best New Engine 2012 Ford 999cc three-cylinder turbo (Ford Focus (100 ps, 125 ps)) Best Green Engine 2012 GM 1.4-litre range extender (Chevrolet Volt, Opel Ampera (150 ps)) Best Performance Engine 2012 Ferrari 4.5-litre V8 (458 Italia, 458 Spider (570 ps)) Above 4-litre Ferrari 4.5-litre V8 (458 Italia (570 bhp)) 3-litre to 4-litre BMW 4-litre V8 (M3 Coupe, M3 Convertible (420 ps)) 2.5-litre to 3-litre BMW 3-litre bi-turbo six-cylinder gasoline (1 Series M coupe, 335is, Z4 35is (340 ps)) 2-litre to 2.5-litre Audi 2.5-litre five-cylinder turbo (Audi TT RS, RS3 Sportback (340 ps)) 1.8-litre to 2-litre BMW 2-litre twin-turbo four-cylinder petrol (125i (218 ps), 320i (184 ps), 328i (245 ps), 520i (184 ps), 528i (245 ps), Z4 20i (184 ps), Z4 sDrive 28i, (245 ps), X1 20i, X3 20i (184 ps), X1 28i (245 ps)) 1.4-litre to 1.8-litre BMW-PSA 1.6-litre turbo petrol (Mini Cooper S, Clubman Cooper S, Countryman Cooper S, Coupe/Roadster Cooper S (184 ps), Mini Cooper Works, Clubman Cooper Works, Coupe/Roadster Cooper Works (211 ps), Peugeot 207, 207cc, 208, 308, 308cc, 3008, 508, 5008 (156 ps), 308 GTI (200 ps), RCZ (156 ps, 200 ps), Citroen DS3, C4 Picasso/ Grand Picasso, C5, DS5 (156 ps), DS5 (200 ps), DS3 Racing (202 ps), DS4 (163 ps), DS4 Racing (200 ps)) 1-litre to 1.4-litre Volkswagen 1.4-litre TSI Twincharger (VW Polo (180 ps), Beetle, Golf, Golf Plus, Golf Cabriolet, Scirocco, Eos, Jetta, Tiguan (160 ps), Sharan (150 ps), Touran/Cross Touran (140 ps, 170 ps), Passat CNG, Touran/Cross Touran CNG (150 ps), Audi A1 (185 ps), Audi A3 (180 ps), Seat Ibiza FR, Alhambra (150 ps), Cupra (180 ps), Skoda Fabia RS (180 ps)) Sub 1-litre Ford 999cc three-cylinder turbo (Ford Focus (100 ps, 125 ps))

PAGE 17

AutoForum - July 2012

NEWS FORUM

Langdon takes the helm at Federal Mogul Aftermarket

A

familiar face to those in the industry, Tim Langdon has made the move over to Federal Mogul Aftermarket as the new Managing Director. It’s quite a challenge to come into a large organisation such as Federal Mogul and on meeting with Tim, our first questions were around what, if anything, he was planning on doing differently. He explained that his history at Schaeffler prepared him to step into another complex matrix organisation, and to deal with FM’s structural change of splitting into OES and Aftermarket divisions. “We believe that this will allow for greater growth in the aftermarket, but we will be watching the effects closely.”

“Realistically, I have no plans on sweeping away the well implemented plans that already exist within the company,” he said.

PAGE 18

“We have very close links to our customers and distribution is working very well.” FM’s well used adage of getting to “the guy who throws away the box” remains in place and small changes primarily driven by the market will naturally occur.

“We also want to optimise our portfolios with existing distributors and customers,” which obviously includes the recent entry into the local filter market. High fuel prices mean lower mileage, with the direct translation into longer service intervals, so introducing its worldwide product lines previously not marketed in SA, should only grow the company’s marketshare.

“Federal Mogul has been in the filter business for a long time, and it is an opportunity to extend customer satisfaction. The focus remains getting the customer what he wants, when he wants it.”

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NEWS FORUM

AutoForum - July 2012

Catalytic converter sector under threat

D

ark clouds are hanging over South Africa’s multi-billion Rand exportorientated catalytic converter industry. Its future is under threat because of lack of clarity about long-term government policy and support for the industry, despite changes to be made to the Automotive Production and Development Programme (APDP) to provide additional support to “vulnerable products”, including catalytic converters.

The APDP, which will be implemented in January 2013, will initially provide the industry with the same level of support as the current MIDP. However, this support will be slashed after two years, down to the standard APDP production incentives.

The industry, which supports 5 200 direct jobs and a further 30 000 indirect jobs, has for many years been SA’s top

PAGE 20

automotive component export by value.

However, catalytic converter exports were worth R16.5bn last year, compared to R20bn in 2007.

Catalytic Converter Interest Group (CCIG) Executive Director, Ken Dewar, said there was a 10-year time horizon for new vehicle models, but there had been five years of policy uncertainty while the transition from the MIDP to the APDP was debated. This uncertainty had resulted in many new catalytic converter platforms being lost to countries in Eastern Europe, Mexico and other low cost countries.

Dewar said there had also been a decline in catalytic converter exports because of depressed global new vehicle sales, caused by the global economic crisis. He said the industry had partially recovered from the substantial dip after

- Roy Cokayne

2008 but was still operating at about 70% of industry capacity.

Projections by industry players, based on long-term orders, were that without any significant new interventions, the industry would be down to less than 50% of the 2007/08 peak by 2016, he said.

“We are living on current programmes that run out after 2014/15 that are not being replaced. We will not get business back to where it was while there is this lack of clarity.”

Dewar said the industry could disinvest from SA and move to other countries.

In terms of the new APDP, the support for vulnerable sectors was effectively at the same level as the current MIDP. But Dewar said this support declined 5% a year after the second year, to the standard APDP production incentives,

“The incentives the catalytic converter industry needs are really logistical support assistance for such things as shipping, finance costs and cargo duties because we are more than 5 000 miles and six weeks from the major markets.�

Dewar explained that SA catalytic converter prices were competitive exworks, but not when delivered into OEM facilities in Europe, without government support measures. He believes the Trade and Industry Department has assisted the industry as much as it is able, because it had a finite pool of duty funds from which to draw.

The structure of the APDP had resulted in a change of emphasis away from high material value export components, which was threatening many industries, not only catalytic converters, he said.

Dewar continued that the catalytic conAF201207.FH9 Thu Jun 21looking 15:37:13at2012 Page 1 verter industry was initiatives to keep the local industry viable. “We

are trying to find some common ground within the beneficiation industry and have been talking to the Department of Mineral Resources to find a model that will work for the industry.�

Commission] for implementation. These will be announced as part of the guideline publication. However, the relevant

Sidwell Medupe, a DTI spokesman, confirmed a package of enhanced support had been put in place for those industries considered “vulnerable� in the transition from the MIDP to the APDP. Medupe said the initial list of these subsectors/products was agreed on in December, following an extensive stakeholder consultation process. “The submissions received have been analysed and appropriate recommendations have been passed on to ITAC C M Y CM MY [International Trade Administration

industry bodies have been made aware of all progress in this regard. The process is now closed and no new submissions are being considered.�

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NEWS FORUM

AutoForum - July 2012

i Store for BMW

L

ater this month the BMW Group will officially open the first BMW i Store worldwide in London, which the automaker describes as offering “a completely new brand experience focused on sustainable mobility”. The auto marque sees the move as its response to changing customer needs as well as the fact that sustainable mobility is becoming an increasingly important part of the modern urban lifestyle.

The store was previewed in June, and BMW Board Member Ian Robertson commented: “BMW i Park Lane marks a completely new approach. Situated next to BMW Park Lane and MINI Park Lane, it gives people a perfect opportunity

PAGE 22

to learn more about electromobility and get close to our future electric and plug-in hybrid BMW i vehicles. This is a further demonstration of our commitment to electromobility.”

The preview was also used to give attendees a sneak peak at the new BMW i3 Concept produced with sustainable natural material interior, and the group’s first fully-electric series production vehicle, which will be available to EU customers from late 2013 and the BMW i8 in 2014.

Some of the other highlights of the preview event were the launch of the i Wallbox charger which promises to

make home-charging both easy and efficient; the hint that new customer contact points were in the pipeline (including mobile sales forces and online purchasing channels); and the new i strategy, that Robertson believes “addresses people’s e-mobility concerns with a holistic 360° approach”.

BMW’s i strategy aims to make electric car owners feel more supported with products that include: assistance services; public charging; home charging; and flexible mobility solutions, such as loans of a conventionally-powered BMW for occasional longer distance travel needs.

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PAGE 23

AutoForum - July 2012

NEWS FORUM

Ipsos Quality Awards 2012

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owners. The survey questionnaire covers all elements of both the sales and service process, from the appearance and staff at the dealership itself to the financing or pricing aspects of the sale or service and then to the post-sale or post-service follow up. Complaint resolution is also a key part of the questionnaire for customers who do report problems.

hat once were known as the Synovate Quality Awards – now the Ipsos Quality Awards – have announced the latest top performing car brands for 2012.

The awards, which have been in existence for some eight years, recognise outstanding achievers in the following categories: Passenger Vehicle (PC) Purchasing Experience; PC Servicing Experience; Light Commercial Vehicle (LCV) Purchasing Experience; and LCV Servicing Experience. The awards are based on interviews with customers who purchased or serviced a vehicle between January and December 2011, and the study makes up part of the largest survey of South African vehicle

As Richard Rice, Head of Loyalty Research at Ipsos South Africa explains: “There is much to be said of the effort that manufacturers and dealerships have put in over the last year to improve their customers’ experience. There have been significant advances in technology, facilities, systems and financing

PC Purchasing Experience

Chevrolet Lexus Volkswagen Opel Audi Mitsubishi Mercedes-Benz Toyota Nissan Mazda CJD Renault Ford Volvo Peugeot

96.0

Volkswagen

95.0

Chevrolet

94.8

Mercedes-Benz

93.6

Toyota

93.6

Renault

92.5

Mazda

92.2

Opel

92.1

Ford

91.6

Nissan

91.6

Peugeot

90.8

CJD

89.8 76

82

88

94

100

LCV Purchasing Experience

92.9

Toyota

92.8

Chevrolet

92.0

Ford

91.8

Mazda Nissan

88.4

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73.3 60.0

66.0

72.0

78.0

84.0

Chevrolet

91.4

76.0

88.0 87.9 87.6 87.5 87.2 86.5 85.9 85.2 83.6 81.9 81.3 80.0 79.2 78.5 90.0

LCV Servicing Experience

Isuzu

70.0

Audi was named the top brand in the PC Purchasing Experience category for the second year, with a scoring of 96%.

According to Ipsos, the top three in the category were very close in terms of score and the category yielded a high average of 93.5%. This is up from 90% in 2011. The ‘lowest’ score fell just short of 90%. Second place was taken by

PC Servicing Experience

Audi

70

processes. All of these factors play a big role in the overall customer experience, as well as the product itself of course. However, given the complexity of the human interaction during the sales and service transactions, the brands that have focused on the more ‘personal’ elements are the ones that have done particularly well.”

82.0

88.0

88.0

Isuzu

87.5

Toyota

87.2

Nissan

84.4

Mazda

84.1

Mitsubishi

84.0

Ford

94.0

100.0

81.6

60.0

66.0

72.0

78.0

84.0

90.0

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VW (95%) and Chevrolet (94.8%). Rice continues: “The top performers in this category include a nice mix of brands – both mass and luxury vehicles are represented.

This reflects very nicely on the automotive industry, because it shows unconditional treatment regardless of the ‘type’ of consumer”.

Chevrolet (88%) topped the PC Servicing Experience category, followed closely by Lexus (87.9%), VW (87.6%), Opel (87.5%), Audi (87.2%), Mitsubishi (86.5%) and Mercedes-Benz (85.9%). “With a category average of 84.8%, there is a huge opportunity for new ground to be broken and a chance for manufacturers to differentiate themselves in the market based on the quality of their service,” comments Rice.

The LCV Purchasing Experience category resulted in five Gold Awards and an average of 91.7%, up from 88.0% last year.

Top performers include Isuzu (92.9%), Toyota (92.8%), Chevrolet (92%), Ford (91.8%) and Mazda (91.4%). Rice believes this category has “some catching up to do” to get it to the level of PC Purchasing Experience.

The top achievers for the category of LCV Servicing Experience were Chevrolet (88%), Isuzu (87.5%) and Toyota (87.2%).

This category’s average score is up from 80% in 2011 to 85% in 2012. “As is the case with passenger vehicles, manufacturers need to break through these threshold scores and differentiate themselves based on their unique consumer focus and understanding.”

“To conclude, we must compliment the manufacturers on an excellent performance this year and improvement across all of the categories,” says Rice. “This is especially impressive given that the pressure for sales during the recession has relaxed somewhat and the drive for happy customers is still such a priority.

With such high and close scores, there is an opportunity for all the OEMs to push the envelope and set a new standard within the market… the key to which lies in understanding customers to an even greater extent.”

The Ipsos survey represents approximately 83% of all new vehicles sold in the PC market and 98% of the LCV market.

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AutoForum - July 2012

NEWS FORUM

US dealers sue Mahindra

C

ar dealers from across the US filed a lawsuit last month accusing the Indian truck manufacturer Mahindra & Mahindra and its US counterpart of fraud, misrepresentation, and conspiracy.

The lawsuit alleges that Mahindra duped hundreds of US auto dealers and walked away with more than $60 million in cash and trade secrets. It continues that the Indian manufacturer then reneged on its promises.

According to attorney Michael Diaz, the Managing Partner of Diaz Reus & Targ, who leads the plaintiffs’ legal team: “Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the US market. However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the US and elsewhere in clear violation of their commitments.”

Dealers across the country paid initial dealership fees, undertook marketing on Mahindra’s behalf, built Mahindra showrooms, display platforms and showcases, and hired additional personnel, all at Mahindra’s urging, according to the lawsuit. “Through their false representations, the defendants lured the US dealers into making investments and promoting Mahindra’s brand name,” says Diaz. “Mahindra is going to learn that trying to outsmart the dealers was a serious mistake, as we will aggressively seek justice for our clients.”

According to the lawsuit, Mahindra began laying the groundwork to enter the US market and build a nationwide dealer network in 2004. In a high-profile move to court the US dealers, Arun Jaura, a senior Mahindra executive, attended an Atlanta automotive show in 2007 where he repeatedly proclaimed, “I love America!”

It was here that, according to the suit, Mahindra executives presented promotional videos that showcased its vehicles’ durability, purportedly showing them being driven on different terrains. Jaura also provided a set time-line for introducing Mahindra’s four-door truck to the US market at the end of 2008, and its two-door truck and SUV in the third quarter of 2009.

The automaker’s pitch was highly successful, and ultimately, it obtained $9.5 million in fees from the dealers, according to the lawsuit. It continues that through a barrage of press releases, sales pitches, advertisements, and news articles orchestrated by Mahindra, Jaura’s comments were subsequently used to entice more US dealers to agree to carry Mahindra’s vehicles.

The dealers believe that while over the next two years Mahindra continued to reassure them that its certification process was on target, it was in fact delaying submitting its documentation to regulators as a pretext for terminating its agreements.

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Auto Safety

AutoForum - July 2012

AutoForum - July 2012

Automotive safety news

New EU Regulations on safety systems published

I

AUTO SAFETY

nterRegs, the international automotive regulations organisation, has published a new EC Regulation No. 661/2009 concerning “type approval requirements for the general safety of motor vehicles, their trailers and systems, components and separate technical units intended therefor”. More commonly known as the General Safety Regulation or GSR, it requires the fitment of a number of “new technologies”, including the mandatory fitment of advanced emergency braking systems (AEBS) and lane departure warning systems (LDWS) to vehicles of Categories M2, M3, (passenger vehicles) N2 and N3 (goods carriers) in the European Union.

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The detailed technical requirements for these “new technology” systems are not contained within the General Safety Regulation itself, but within separate “Implementing Regulations” for each of the “new technology” systems. After many months of discussion and negotiation, the Implementing Regulations

covering the detailed technical requirements for advanced emergency braking systems (AEBS), EU Regulation No. 347/2012, and for lane departure warning systems (LDWS), EU Regulation No. 351/2012, were both recently published in the Official Journal.

EU Regulation No. 347/2012 specifies the technical requirements and test procedures for AEBS that detect the possibility of a collision with a preceding vehicle, warn the driver by a combination of optical, acoustic or haptic signals and, if the driver takes no action, automatically apply the vehicle’s brakes. The Regulation specifies requirements on the system operation and specifies two test procedures to check the performance of the system -

one with the vehicle approaching a moving target and one with the vehicle approaching a stationary target. The Regulation specifies two “Levels” of limit values on the timing of the warnings and on the vehicle speed reduction to be achieved in each of these tests, with the “Level 2” requirements being more stringent. To allow time for the development of suitable systems for lighter vehicles, vehicles with hydraulic braking systems and vehicles with mechanical rear suspension systems, the “Level 1” limits are only applied to M3 Category vehicles, N2 Category vehicles with a GVW greater than 8 000 kg and N3 Category vehicles that are equipped with pneumatic or air/hydraulic braking systems and with pneumatic rear axle suspension systems.

The fitment of AEBS meeting the “Level 1” performance requirements becomes mandatory from 1 November 2013 for new types of vehicle and from 1 November 2015 for all new vehicles. The fitment of AEBS meeting the “Level 2” performance requirements becomes mandatory from 1 November 2016 for new types of vehicle and 1 November 2018 for all new vehicles.

EU Regulation No. 351/2012 specifies the technical requirements and test procedures for lane departure warning systems (LDWS) that detect unintentional drift of the vehicle out of its travel lane and warn the driver by a combination of optical, acoustic or haptic signals. The Regulation specifies requirements on the system operation, specifies test procedures to confirm the performance of the system and includes examples of the lanes markings that the system must be able to detect.

The fitment of LDWS becomes mandatory from 1 November 2013 for new types of vehicle and from 1 November 2015 for all new vehicles.

Both regulations specify a list of vehicles that are exempt from the fitment of AEBS and LDWS.

Bike ABS best for new riders A new study has found that antilock brakes cut crashes for motorcyclists of all abilities, but the benefit is especially large for those new to riding or to a particular bike.

The Highway Loss Data Institute (HLDI) compared the rate at which collision claims were filed for motorcycles equipped with antilock braking systems (ABS) with the rate for motorcycles without ABS, and found the former were 30% less likely to have a collision claim within the first 90 days of a policy and 19% less likely after that.

Preventing wheels from locking up is crucial on a motorcycle. On a car, a lockup might result in a skid, but on a motorcycle, it often means a loss of balance and a potentially deadly fall. ABS prevents lockup by automatically reducing brake pressure if it detects that a wheel is about to stop rotating, then increasing it again after traction is restored.

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AUTO SAFETY

AutoForum - July 2012

Driving under the influence …. of fatigue

T

he Guild of Experienced Motorists (GEM), a UK-based independent road safety organisation that was established in 1932, has launched a new three-minute video to raise awareness of road safety issues – especially the effects of driver fatigue. The video highlights research that indicates drivers are most tired between 3am and 5am and also between 2pm and 4pm, with an increase in fatigue-related crashes reported in the UK during these times.

David Williams, CEO of GEM Motoring Assist, comments: “The time of day that you drive can be one of the biggest causes of fatigue and many may be unaware that the afternoon, rather than first thing in the morning, is when you will be most tired. Even when you just want to get home, it is crucial you don’t rush the journey, as having a proper break could prevent an extremely

PAGE 30

dangerous or fatal situation. This is particularly important for professional drivers such as those covering long distances or doing shift work late at night.”

The video includes a number of tips to help stave off fatigue during long journeys, such as avoiding even small amounts of alcohol before any journey; taking regular and proper breaks; using caffeinated drinks at least 20 minutes before needing the energy boost as they take that amount of time to become effective; avoiding heavy meals; and more.

Williams continues: “Even the slightest feeling of fatigue can impair your ability to concentrate and focus and, in some cases, can have fatal consequences when behind the wheel. We’ve created

this video to encourage drivers to embark on long journeys only when they are at their most comfortable and prepared.”

You can view the video – and allow your staff to do so too – at www.motoringassist.com/fatigue.

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AUTO SAFETY

AutoForum - July 2012

Cars getting safer for pedestrians

A

ccording to the results of the latest Euro NCAP testing, new cars are becoming increasingly safer for pedestrians. In the latest set of Euro results, the BMW 3 Series, Hyundai i30, Mazda CX-5 and Peugeot 208 received the safety organisation’s maximum five star rating.

The new BMW 3 Series achieved a commendable 78% in pedestrian protection, which the car safety performance assessment programme explains is a really good result for a compact executive car with no active bonnet.

The Peugeot 208, however, scored 61% for pedestrian protection, only just clearing the 2012 five star threshold of 60%. The Mazda CX-5 scored 64%, while the Hyundai i30 achieved 67%. In both side impact tests - the side barrier and the pole test - the Mazda CX-5 scored maximum points, the only car of the latest release to do so. By contrast, the i30 showed weak protection of the chest in the side pole test, although its score for child occupant protection was the highest in this round of tests.

Both the five star rated Mazda CX-5 and the BMW 3 Series offer an Autonomous Emergency Braking System (AEBs), which act independently to stop the car, or to reduce its speed, if a collision is imminent. Dr Michiel van

PAGE 32

Ratingen, Secretary General of Euro NCAP explains: “If all cars were fitted with AEB systems, many crashes could be mitigated or avoided altogether.

The Mazda CX-5, which has AEB fitted largely as standard equipment in Europe, is therefore a good example for other manufacturers to follow as Euro NCAP intends to assess AEB in future testing procedures.”

international claims data demonstrating a claims frequency reduction of both personal injury and accident damage of more than 25% in a year-long study based on Volvo’s AEB system ‘City Safety’. Other international studies reveal a similar trend for crash reduction associated with AEB fitment and dependent upon the functionality of individual systems.

AEB certainly seems to have safety testing organisations’ backing – and not just for pedestrian safety. In April, the UK’s Motor Insurance Repair Research Centre – Thatcham - reiterated its belief in AEB as a critical element in addressing that country’s whiplash epidemic, at the Lyons Davidson International Whiplash Conference.

Thatcham Research is working on a number of initiatives both with insurers and vehicle manufacturers to drive this forward, these include the development of AEB testing protocols to measure system performance both for car–to–car and car–to–pedestrian impact scenarios. The organisation is currently proposing these test procedures to Euro NCAP, for potential inclusion within their vehicle safety ratings by 2014.

Speaking alongside some of the world’s leading experts on the topic, Head of Thatcham Research, Matthew Avery, told delegates that engineering holds the key, through the continued introduction and availability of Advanced Driver Assistance Systems (ADAS) to prevent and mitigate accidents. Whilst a wide range of ADAS systems are already providing many motorists with an additional level of safety, it is Autonomous Emergency Braking (AEB) systems in particular that are integral in preventing whiplash. Avery pointed to real world

But it was not just AEB that has improved the outlook for pedestrians. Audi received the coveted Euro NCAP Advanced reward for its ‘ PreSense Front Plus’ technology. Available on the Audi A6, which achieved five stars in 2011, the system works by virtue of two long range radars positioned at the front of the car. These detect vehicles and other obstacles (such as pedestrians) ahead that the car is likely to hit unless action is taken by the driver.

PAGE 33

AUTO SAFETY

AutoForum - July 2012

School bus safety programme

C

track has launched an initiative and sponsorship programme aimed at improving school bus safety, which will see five buses being fitted with tracking systems, all supported by Ctrack service contracts.

The first school to have the system installed is Belvedere School on the East Rand of Johannesburg. Principal Hannes du Plessis explains: “Improving safety is our main objective and this new system sponsored by Ctrack will give us online visibility of our school buses and enable us to monitor the driving habits and behaviour of our school bus drivers. The information that will be provided by the Ctrack systems will help the school proactively improve the safety of transporting our children to and from school. The risk of theft and hi-jacking is also very real, and the Ctrack systems provide advanced early warning that would help in the fast recovery and safe guarding of the buses and, more importantly, the precious cargo inside. Another safety improvement is the “crash alert” which, if activated at a severe level, will ensure that Ctrack automatically dispatch ER24 ambulances to the site.”

Ctrack explains that the system will also solve other transport related problems and improve efficiencies by monitoring excessive idling, cutting fuel costs and maintenance requirements and improving tyre life. The school will also be able to predict, with a good level of certainty, if a bus is running late and where the bus is located at any time. The system also includes an ICE portable GPS/GSM location and communication solution, which incorporates a panic alarm with programmed numbers, in case of emergencies.

PAGE 34

PAGE 35

Auto Training

AutoForum - July 2012

AutoForum - July 2012

Automotive training news

AUTO TRAINING

Goodyear Instrument Technician Everton Fischer is one of only a handful to qualify in South Africa recently.

PAGE 36

Engineering star

G

oodyear took an opportunity in early June to highlight its Eastern Cape apprentice school, with the recent achievements of one of its star students.

Everton Fischer, who has finished his training as an Instrumentation Technician, is one of just two people to have qualified in this niche in the engineering field within the Eastern Cape in the past few years – both of whom trained through Goodyear’s apprentice school.

According to Plant Engineer Titch Booth, the company closed its original school in 1995 after government withdrew funding for apprentice programmes, but reopened after noting the resulting nationwide shortage of critical industry skills. “We needed electronic and instrument mechanicians at Goodyear’s factory in Uitenhage, but there were none to be found and no suitable courses were available either.

We realised in 2008 that we would have to provide our own training. This group of candidates is the first to have successfully passed their trade tests.”

“Everton is an exceptional talent, developed and nourished by Goodyear. We are proud of his achievements and pleased to have him on

board in a permanent position from this year.

Not only did he pass his trade test certificate after three years instead of the usual four, but he also achieved the highest marks in the country. What’s more, although he was required to have an N3 in order to attempt his trade test, he studied in the evenings after work and successfully went all the way to an N6, obtaining first class passes in many subjects along the way!”

“These achievements are all the more remarkable because Everton and the other successful candidate, Pheiliswa Kohliso, were the only two apprentices registered outside Gauteng and KwaZulu-Natal. This underscores the serious shortage in the Eastern Cape. There is simply nobody offering instrument mechanician training, other than Goodyear.”

But what exactly does an Instrumentation Technician do on a day-to-day basis? Fischer describes his job as “making sure machines are properly calibrated and running as they should”. Sounds simple enough, but considering the number and complexity of machines in use at this large tyre manufacturing facility, this is certainly no easy task.

Body repair insight NEWS AFRICA

In association with BodyShop News Asia and Australian BodyShop News

Contents More Support 40 For CompetitionStimulating Parts Bill

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AutoForum - July 2012

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AutoForum - July 2012

BODYSHOP NEWS

BODYSHOP NEWS

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More Support For CompetitionStimulating Parts Bill

A

US bill entitled “Promoting Automotive Repair, Trade and Sales (PARTS) Act,” which was initiated in 2009, seems to be gaining supporters. According to the North American country’s Quality Parts Coalition (QPC), the proposed legislation maintains customer’s right to benefit from a competitive auto replacement parts industry.

The QPC comments: “American drivers currently have access to alternative auto replacement parts that can save them between 26 to 50% when repairing their cars after an accident, but car companies are trying to force consumers to buy their parts only and eliminate the competition.”

“Car companies have been acquiring US design patents on exterior auto repair parts – such as hoods, bumper covers and mirrors – and enforcing them against independent suppliers who have been selling these more affordable and quality alternative parts for more than 60 years. This means less competition, which could cost drivers an additional $1.5 billion annually.”

According to the QPC, the new Act if made law, would stop the automakers from growing a parts “monopoly”, by reducing the period

during which they can enforce their design patents against alternative suppliers. The current laws allow protection for 14 years, while the new bill would like it to be reduced to 2.5 years. To prepare to enter the market, the alternative parts industry would be permitted to manufacture, test, market and distribute parts without infringing on the design patents during the 2.5-year period.

“If enacted, this new bill would not only save consumers money, but it would also protect jobs nationwide,” the QPC explains. “The auto repair parts industry (in the US) employs tens of thousands of workers in jobs ranging from manufacturing to distribution to repair.

More than 40 000 collision repair shops carry alternative repair parts that contribute to quicker repairs, getting consumers back on the road faster.”

Eileen Sottile, Executive Director of the QPC, added: “The Quality Parts Coalition applauds the new bill co-sponsors for fighting for motorists’ rights when it comes to repairing the cars, especially during these tough economic times.

We’re urging Congress to pass this bill to stop car companies from growing their profits at the expense of budget-conscious consumers and the independent auto repair parts industry.”

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EVERY INDUSTRY HAS A LEADER PAGE 41

AutoForum - July 2012

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Business Forum

AutoForum - July 2012

Business insight

The winds of change

W

ith the winds of change having blown through the halls of power, we can only hope these will bring positive results – certainly in the case of the Transport Ministry our new incumbent, Minister Ben Martins, has a massive load on his shoulders.

Transport is the lifeblood of the country and it will take not only application and dedication, but a genuine interest in the task to untangle the ball of string it has become. We wish him well.

Against the backdrop of a still shaky Europe, it is possibly surprising the local auto industry continues to gain ground – evidenced by eight or more new model launches (excluding derivatives) in the past month. Not the least of these was an aggressive approach from Mercedes-Benz with its new M-Class, launched into – still – one of the fastest growing segments of the market.

Even though the German automaker is still not releasing detailed sales figures, aggregate industry sales had improved by 8 604 units or 20.7% to 50 229

PAGE 44

- Colin Windell

vehicles from 41 625 units in May last year, substantially above the growth rate in industry total sales of 9.4% for the first five months of the year.

Overall, out of the total detailed (disaggregated) reported industry sales of 47 717 vehicles (excluding MBSA), 90.3 % or 43 089 units represented dealer sales, 4.3% represented sales to the vehicle rental industry, 3.8% to industry corporate fleet sales and 1.6% sales to Government. From a seasonal perspective, sales to car rental companies should improve from June 2012 onwards as the car rental industry starts to re-fleet.

The year-on-year growth momentum in May new car sales improved, rising to its best level in the past eight months, with year-to-date new car sales 11.3% ahead of the corresponding five months of 2011. New car sales during May 2012 recorded the highest daily selling rate since June 2007.

Including estimates for MBSA commercial vehicle sales by segment – sales of

industry new light commercial vehicles, bakkies and mini buses at 12 907 units during May 2012 reflected an increase of 2 287 units or 21.5% compared to the 10 620 light commercial vehicle sales during the corresponding month last year.

Sales of vehicles in the medium and heavy truck segments of the industry at an estimated 881 and 1 621 units, respectively, had recorded an increase of 135 units or 18.1%, in the case of medium commercial vehicles, and a rise of 183 units or 12.7%, in the case of heavy trucks and buses, compared to the corresponding month last year. Most manufacturers in these sectors reported strong order books going forward.

Rising sales in the commercial vehicle sector is always a good sign of business confidence – something sorely needed as cost of living pressures continue to mount.

“The increase of 20.7% year-on-year, and 17.9% up on April provide a misleading view on the growth rate of the

Colin Windell is the Editor of Fleet Magazine.

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PAGE 45

AutoForum - July 2012 industry,” says Malcolm Gauld, GMSA’s Vice President Sales and Marketing.

“Total sales of 50 228 units were slightly below our expectations, but still provided a welcome boost to year-on-year growth. The industry total for the first five months stands at 228 070 vehicles for a gain of 9.4% on the same period last year. May was the 30th successive month that the motor industry has experienced year-on-year growth.”

“May saw strong support at dealer level with 43 088 of total sales delivered through the dealer channel, a good indicator of buyer participation in the market. Passenger vehicles accounted

that will likely impact on the market in the months to come.”

“The budget sector of the motor industry has grown significantly over the past few years. It remains fuelled by increasing pressure on living costs and lingering economic uncertainty. We believe that the market will remain the main driver for passenger vehicle sales going forward,” says Dr Johan van Zyl, President and CEO of TSAM. “The passenger car market in May 2012 performed above expectation. From the perspective of the seasonal pattern of demand for new passenger cars in

terms increased by 6.8% year-on-year in March 2012. It was also supported by ongoing growth in demand for instalment sales finance, which in April grew to 12.5% annualised, the highest rate of growth since January 2009,” added Glendinning.

Exports of South African produced motor vehicles, including MBSA export sales data, during May 2012 at 22 620 vehicles registered an improvement of 560 units or 2.5 % compared to the 22 060 vehicles exported in May last year.

Industry export sales were expected to improve over the balance of the year as the Ford global compact vehicle export

The increase of 20.7% year-on-year, and 17.9% up on April provide a misleading view on the growth rate of the industry for 34 820 sales, up 20.8% on May last year. Light commercial vehicles contributed 12 907 units to the total to show a gain of 21.5% on May last year. This number provides an indication of positive activity in the business sector, but is also indicative of the inventory position in the market.”

“There was significant new model activity in the market during May together with a high level of promotional activity that will have supported sales. There is a strong accent on affordable vehicles at this time with excellent value propositions for customers. An example of this is the repositioning of the Chevrolet Spark, now a locally produced model for GMSA, with significant price reductions announced with the localisation of this model.” (See also AutoForum June issue.)

“Looking ahead we see no firm basis to increase volume forecasts for the year.

Year-on-year sales are approaching the upper limit of those forecasts but this may not be sustainable. High fuel costs and pressure on the Rand are factors

PAGE 46

South Africa, May is usually relatively quiet. The month recorded the highest selling rate of new cars per day since June 2007. It continued a slow but steady improvement in the underlying momentum in demand that has been evident in the first months of 2012,” says Mike Glendinning, Director: Sales and Marketing, Volkswagen Group South Africa.

programme and the BMW new 3 series export volumes were ramped up. The industry’s export performance, however, will remain a function of the direction of the global economy.

“The more robust than expected performance of demand for new passenger cars in the first half of 2012 is, however, not fully supported by other key economic indicators. GDP growth has disappointed, reflecting an improvement of only 2.7% seasonally adjusted and annualised during the first quarter of the year. Manufacturing production in March 2012 decreased by 2.7% compared with March 2011.

Factors that will support the domestic market include the ongoing improvement in the financial position of consumers, historically low interest rates, continuing improvement in vehicle affordability in real terms, the highly competitive trading environment and new model introductions.

“Despite these developments the consumer demand side of the economy continues performing relatively well.

This is reflected not only in the performance of demand for new passenger cars, but also in retail sales which in real

Vehicle exports into Europe are likely to continue under pressure as a result of the recession and debt crisis in the Eurozone.

The recent sharp depreciation in the exchange rate is likely to result in pre-emptive buying over the next few months as consumers seek to purchase vehicles to avoid the possible impact of the lower exchange rate on new vehicle prices.

PAGE 47

AutoForum - July 2012

Corporate governance: When last did you give it thought?

- Robert Kaiser

M

ost businesspeople have heard about the King III Report on Corporate Governance, but actually reading the report may not have topped the must read list of the owners and managers of many small and medium sized concerns. Why would that be? Probably because there is a perception that issues of corporate governance apply to large entities that are large employers and where it is essential that the rules of behaviour and the principles of accountability and responsibility for the way the entity is run, are properly defined and followed.

This perception is of course way off the mark. Although the King III Report is probably aimed at larger entities, the principle of sound corporate governance lies at the heart of the sound and effective management of every business. Small and medium businesses should not merely rely on their auditors to deal with issues that may be regarded as matters of corporate governance; remember that this is not strictly the function of an external auditor (process and risk identification being an internal audit issue) and whatever an auditor finds in terms of possible neglect in issues affecting corporate governance is nearly always history, being in respect of a review period rather than the present. It has already happened and to rectify any issues highlighted in an external auditor’s report may not compensate

PAGE 48

for losses or liabilities that may already have been incurred.

Fundamental to ensuring that principles of sound corporate governance are established and maintained in any business is the need to take note of risks to which the business may be exposed in its daily operations and to take the appropriate steps to avoid or manage risk areas effectively. Here are some practical examples of what to consider: 1. Records: Hard copy and electronic Whether they are hard copy or electronic, sound record keeping is an area of the utmost importance for any business. Do you have a well-classified and reliable record keeping system that enables you to access records quickly and efficiently when required? More importantly, do you have backup records available? Are hard copy records scanned and filed on an electronic filing system and do you have arrangements for offsite storage of records? If there were to be a disaster such as a fire or flooding on your premises, would you be at risk of losing your records, which could be a crippling blow to the business?

Although there will always be hard copy records to be kept, business today is increasingly being conducted electronically and this could be a major risk area if your systems are not up to scratch.

Backups of not only documents, but also email correspondence, is essential.

Do you have sufficient backup capacity on your computer? How much of your records are disseminated on the hard drives of individual computers and not stored centrally on a network server? Do you have offsite backup of all electronic records? Depending on the size and nature of a business, offsite backups can be done electronically on an online basis to a service provider, or discs could be fetched by a service provider on a daily basis for offsite storage. Whatever solution is appropriate, neglecting to maintain a proper backup system for business records could be disastrous. Letting an employee or manager take a backup disc home is neither effective nor wise.

2. Financial Administration and Controls It may be appropriate to review your financial administration to evaluate the effectiveness of your systems and arrangements. When last did you check on the signing powers in respect of your business accounts with your bank?

Are changes to update the authorisations perhaps necessary? In a time when most payments are by electronic funds transfer (EFT), are you sure that the authority to release payments are in order and correct? It may well be that staff changes occur in the business and that, although new authorisations have

Robert Kaiser has been intimately involved in the motor industry for the past 25 years. He established Retail Motor Consultants in 2002, a consultancy providing relationship management, marketing and staff recruitment services as well as apprenticeship management programmes and through an associated company, unique Black Economic Empowerment transformation programmes for both large and SME businesses.

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AutoForum - July 2012

been undertaken to accommodate such changes, are you sure that all previous and not invalid authorisations have been deleted?

Although EFT has become the most utilised method of payment, believe it or not, there are still businesses that pay their accounts by cheque and actually mail cheques to creditors using ordinary mail! During the past months I have personally witnessed cases where cheques with five and six figure values are committed to the ordinary postal channels, unregistered, which payments (as could be expected) never reached creditors, as the cheques were stolen in the mail and fraudulently deposited through the banking system. To mail cheques is asking for trouble. EFT payment facilities are widely available and if done correctly, are safer. There is no reason why any business today should use cheques to make payments. If, however, it is unavoidable and personal delivery or collection is not possible, then at least reduce the risk of fraud by using a dependable courier service for the delivery.

3. Procurement To give someone an order book is like giving them a blank cheque book. An order number given to a supplier raises a liability on the issuer for the worth of the goods ordered. A business cannot disclaim liability for orders issued in error for the reason that the person who issued the order was not authorised to do so. In law, it is accepted that a person who issues a purchase order in the name of a business is duly authorised to do so. The supplier to who an order

PAGE 50

has been issued has no way of discerning whether such person has been duly authorised to do so or not.

Who carries the order book in your business and is that person authorised to issue purchase orders on behalf of your business? Is there a process in which orders issued are verified by another member of management? Once delivered, is delivery properly recorded and matched with the corresponding purchase order to ensure that the goods/services as ordered were actually received? The fact that purchase orders are increasingly issued electronically increases the need for vigilance against possible abuse.

What about your supplier list? When last have you checked that the relationship between your business and its suppliers is sound and that there are no “cosy” relationships between your and their staff that could lead to abuse - which could take many forms? Think about the process as it applies in your business and the risk areas that need to be reviewed from time to time.

4. Compliance with applicable legislation and regulations There is a plethora of different legislation and regulations that govern business and a thorough review of compliance with applicable legislation by the business must be undertaken from time to time. Some examples of legislation affecting most businesses are occupational health and safety and workmen’s compensation issues, which, if neglected, could raise serious liability issues for any business. This is especially true in

the retail motor industry, where the risk of accidents in workshops is higher than in other establishments. If employees are not registered for workmen’s compensation and levies are not paid, the employer could be held liable for any cost associated with injuries on duty.

5. Insurance Insurance is like any other product or service; you generally get what you pay for. Grudge purchase as it may be, insurance cover is vital and the extent of cover for damage and liability needs to be reviewed regularly to ensure that it has kept pace with any changes in the business environment. For workshops, defective workmanship cover is an item sometimes overlooked. With the consumer protection legislation what it is nowadays, one cannot afford not to ensure that the business risks are adequately covered. Insofar as expensive equipment is concerned, look for adequate replacement value cover.

Consult a knowledgeable and professional broker who can provide you with the best possible advice.

The pointers discussed here are by no means a comprehensive list of issues that should form part of an ongoing agenda to ensure that governance issues and business risks are properly taken into account. It is so easy to neglect these matters when having to cope with the ongoing pressure of daily business activities and realising how expensive oversight of such issues could be.

Misa supports Youth Rally 2012 Programme

F

EDUSA Vice President of finance and CEO of MISA, Dana de Villiers launched the Youth Month Campaign at Hoerskool De Burger, in Bergbrom, at the beginning of June. The theme of the campaign is“This Is Your Future - What will you do to create a better future for us all?”

networks – such as Facebook. He encouraged learners to be more aware of and to participate in their future, by expressing their opinions via the Government’s social media networks.

The pupils and staff were addressed

by Vic van Vuuren, Director of International Labour Organisation Southern African Office, who described international and local labour trends before introducing the assembly to Minister in the Presidency for National Planning, Trevor Manual.

After an enthusiastic welcome, the learners were enthralled by Minister Manual’s description of Government’s efforts to create an interactive communication platform via social media

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AutoForum - July 2012

Making trade shows work for you

I

was privileged to attend a hardware trade show recently in Johannesburg.

Over the past thirty odd years I have attended many of these types of shows, and I have to say that this rated as one of the best. It all started with an exciting and dynamic invitatiaon process, with a ‘teaser’ campaign that started about three months prior to the event. Significantly, the invitation targeted specific customers in person – not by company.

The hall was full, with no empty stands and yet there was adequate ‘aisle space’. The flooring was comfortable, which is very important when you consider how many hours your prospects and customers have to trudge around looking for something new and exciting.

For the most part exhibitors were sleek and professional in both their presentation and stand appearance, however, there were some that ‘missed the boat’ and I fear went back to their offices the next day and reported that it ‘was a waste of time’.

Exhibiting on trade shows can be very expensive, time consuming and demanding, so it’s really important to get as much from them as possible. Most companies have a brand worth protecting, and its visual identity is a huge part of that. This remains the case at a live event – any old furniture and a fuchsia

PAGE 52

coloured carpet shouldn’t suddenly become acceptable. Such events may be one of the few times a year that you have a physical presence in the real world, and whereby you can meet your customers and decision-makers face to face. With this in mind, investing in professional stand design and customisation makes a lot more financial sense.

Begin with a brief and a blank piece of paper, and then work out what you want to achieve, and just as importantly, what will your customers and potential customers want to experience at your stand.

We often talk about short print runs helping relevancy. Making postcards specifically, or tailoring your business cards to the trade show you are about to attend helps you to stand out and get noticed. The same should go for when you are exhibiting – marketing materials shouldn’t be left over from a different exhibition – the money you save handing out the leftovers may well be negated by the customers who take their business to someone with a more relevant offering. Make sure everything you hand out is fresh, current and targeted to its recipient.

Some display stands pop out from a mile away, even if they are tiny – because they look vibrant, or clinical or

- Graham Bush

crazy or fun – what matters is that they support the company brand, and appeal to the type of customers you want to engage with.

Some prospects walk up to a stand and ask “what are your show specials?” You need to decide if discounts and specials are part of your events plan and strategy, and if they are not you can still be generous in other ways. Give people some time, listen, ask them some questions and find out a little about them.

If a prospect leaves your stand with a firm idea in mind that might benefit their business it is far more powerful than a discount flyer or another pen. The best ‘gift’ I received at this show was a memory stick (dongle?) from a cement manufacturer (my family shared out the pens and key rings). Of course, by investing the time in finding out more about your customers, and using that information in your future marketing, retailing and product planning, you are getting out even more than they are.

So what works best at a trade show?

This one is simple – the best way to learn what works well at any specific show is to see for yourself. Look at every stand (both the busy ones and the quiet ones), and speak to the teams working there. Here are my five top tips for any exhibitor, bearing in mind that in

Graham Bush is one of Southern Africa’s leading retail gurus, and over the past 30 years has inspired thousands of businesspeople. He has a relaxed style, and along with his humour delivers powerful and motivational talks and presentations. www.thebushkitchen.co.za

my history of retail I have been on both sides of the show stand.

1) Planning Spend months preparing and defining your goals. Then develop a strategy.

Send a pre-show postcard, email or news release to clients and media who’ll be there. Set up appointments and create networking opportunities.

Plan to create specialised, eye-catching marketing materials and put a huge, two-word headline on it. The idea is to get attendees to stop. Think of your marketing materials as “bait for fishing in the aisles”.

2) Signage Ensure that you make your signage as focused as your overall trade-show approach. Your backdrop should be simple and concise – five or six words to tell your story; something that people cruising by will get quickly. Think about designing double-sided business cards for the event. Include contact info and a photo on one side, with a list of benefits /products on the other.

3) Stand Location Where you position yourself is crucial.

Ideally a corner, an island or a ‘peninsula’ is the most ideal situation because of traffic flow and visibility. And don’t sit. Sitting behind an exhibit sends the message that you’re not interested or aggressive. People will just keep on walking.

4) Network Make the most of networking, but don’t spread yourself too thin. A lot of people try to gather as many business cards as they can, however, they’d be much better off really connecting with five or 10 people. Don’t stay anchored to your stand. Designate people to man it while senior staff work the hall. Find your prospects and invite them to your stand, reach out to them, don’t rely on them taking the time to walk by and pop in to your stand. Networking also involves following up when the show is over. A trade show is only as good as the business it generates, so don’t stash that stack of business cards in a to-do-later file. Call, email or send a

handwritten note as soon as you can, at most within the first week after the show. Wait too long and you’ve lost them.

5) Evaluate You must have a ‘post mortem’ after the show with everyone concerned.

What worked, and what didn’t? Did you achieve your objectives, and if not, why not? As I mentioned, shows cost a lot of money so it is vital to focus on results – unless you are one of those Blue Chip companies that just want to ‘fly the flag’ as a tax concession?

Trade shows still continue to be big business for all businesses. According to The Center for Exhibition Industry Research (CEIR), business-to-business spending for trade shows is third to advertising and promotion. In a world of websites, emails, and voice mails, trade shows offer one of the true opportunities to build relationships with face-toface contact. Something every business can use a little more of.

PAGE 53

BUSINESS FORUM

AutoForum - July 2012

PAGE 54

Uncertain times call for better data

I

n June, automotive market intelligence company RGT Smart, released a statement to the press in which it reported that the local industry’s uncertainty regarding prospects for remainder of the year is placing players at significant risk of making incorrect decisions.

CEO Paul De Vantier is quoted as saying that both importers and exporters are at the mercy of both the general global uncertainty and the Eurozone crisis. “The vast majority of cars sold in South Africa are imported, which means supply chains are long. Importers need to make decisions now based on what they believe they are going to sell in six-months’ time. In the current climate, they face the very real risk of shipping in large quantities of vehicles or components that may not sell if the car market in South Africa turns negative – a potentially disastrous scenario for them.”

It’s for this reason that the sector is more reliant on accurate data and forecasts, as well as accurate and insightful customer service experience data, than ever before.

“Industry players also need to provide exceptional service in order to keep customers loyal.” De Vantier says he is also seeing a significant increase in interest for information and data amongst local companies looking to expand into Africa.

Paul De

Vantier

According to RGT Smart’s outlook for local vehicle sales for the remainder of 2012, growth levels are expected to taper off from current levels, with single digit growth expected. “We are forecasting growth of around 6% for 2012.

This should be seen in the context that a number of other markets, including retail and housing, have turned negative.” De Vantier believes some of the recent strong growth in the vehicle market could be due to consumers buying ahead and taking advantage of the reduction in real car prices over the last few years.

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AutoForum - July 2012

COMMERCIAL

Key handover – Bruce Dickson, Deputy CEO MAN Truck & Bus SA, hands over the symbolic fleet key to the Naicker family management team at Crossmoor Transport

PAGE 56

Giving a key in exchange for acquiring a risk - Dave Scott

W

hatever happened to a cash deal? It seems a ‘cash deal’ belongs to the previous century, while now use of an asset has taken over from ownership. Now it’s all about the package and not the truck. That’s exactly what happened when Crossmoor Transport & Plant Hire took delivery of 30 new MAN TGS WW 26.440 truck tractors – Crossmoor was

handed the keys to the fleet to use for three years and MAN Truck & Bus South Africa acquired the risk.

Let’s define the risk. This R30 million (or more) deal includes a 4-year 600 000 km warranty and a ‘pre-negotiated’, guaranteed buy-back after three years or 450 000 km, whichever

Dave Scott is a member of the S.A. Guild of Motoring Journalists, and is a monthly contributor to the press on transport and trucking related subjects. In 2002 and 2003 Dave Scott was the S.A. Guild of Motoring Journalists winner of the category ‘Business Motoring’. As a member of the S.A. Institute of Tribology he takes a keen interest in the application of lubricants to road transport maintenance and the cost of ownership.

His key writing focus is on fleet management including the technology of trucks and road transport.

AF201205.FH9 Tue Apr 24 10:57:18 2012 C

comes first. This is a guaranteed buy-back, not a tradeback, which means the truck operator is not forced to replace the fleet with the same brand. Crossmoor does not run the risk of being tied to MAN – any divorce will be a one-sided affair in favour of the truck operator.

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Modern extra-heavies have a major driveline component life that extends far beyond the 450 000 km buy-back benchmark and it’s this expectancy that MAN has in forecasting a second life for the used unit being offered to the market with a 2-year warranty.

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Coupled to all of this is a service contract with a fixed CPK (Cents-Per-Kilometre) rate that underpins the warranty.

Barring a hotly-contested ‘driver abuse’ factor, this squarely places the burden of any component failure at the door of MAN Truck & Bus SA and its dealer network.

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Extra-heavy trucks only begin to chow spare parts after three years. So there’s not much to be gained from selling filters and lubes over three years, but perhaps just a few labour hours will bring some profit.

At least fuel consumption, as an operating cost, remains with Crossmoor. Fuel costs are around 45% of the total cost of ownership and Crossmoor has done its homework in this department. Bruce Dickson, Deputy CEO of MAN Truck & Bus SA, states that “The 30 TGS 26.440’s going into the Crossmoor fleet join forces with the five that were introduced last year, which to date, I am pleased to announce, have set new fuel economy benchmarks in Crossmoor’s tanker division.� According to Dickson the MAN TGS 26.440’s are delivering figures between 15 to 20 percent lower than competitive models operating in the fleet. And Crossmoor don’t play games with fuel consumption – every fuel tank is fitted with a colour-coded, serial-number seal that only gets broken at each official refill.

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Each of these trucks will travel some 12 000 km every month, as far afield as Zambia. It’s time spent getting through border bureaucracy – that’s where they cut red tape lengthways – that hampers trucking productivity. Is a monthly 12 000 km achievable? Maybe not, but this will ensure the overall buyback target of 450 000 km.

Crossmoor has been in business for 40 years – they are sharp business people. When you get a deal like this, and you qualify under the terms and conditions, then it’s a no-brainer. The real risk here is forecasting the future for the used truck market in three years time, but that’s not Crossmoor’s risk.

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57

We will file this article for review in three years – time marches rapidly and we trust the light at the end of the tunnel is not an express train coming to meet us. Oh for the days of a ‘cash deal’!

AutoForum - July 2012

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truck tractor fifth wheel is a very visible component, but we tend to look straight through it as a chassis appendage only. However, let’s all agree that a truck-tractor fifth wheel is a safety critical component in semitrailer operations. So when an unbranded, untraceable fifth wheel appears on the market it’s time to ring alarms.

This has been recently spotted in the Gauteng road transport marketplace. What’s more is that this item provides every reason to regard it as a low-quality, untested part that has a suspect D-value.

D-value – what’s that? D-value is the manufacturer’s rated towing capacity of a fifth wheel expressed in kilo-Newtons (kN) and it’s the basis for comparing the towing capacity of any trailer coupling – fifth wheel or tow hitch. Any respectable trailer coupling manufacturer is not only brand-proud, but plates and marks the coupling with full detail of the product code, date of manufacture and a serial number. This is all part of configuration management that relies entirely on traceability – see AutoForum Nov/Dec 2011 – ‘The Best Truck Brands Rely on Configuration Management’.

The reality of South African transport operations is that fifth wheels tend to remain in a coupled condition for far too long and

abnormal wear sets in. This unbranded component will remain hidden until it fails in service. Trailer kingpins and rubbing plates also require degreasing and wear checks that they generally do not receive, which amplifies fifth wheel neglect. The absence of a rubbing plate gauge in fleet workshops is proof of this – see AutoForum October 2009 – ‘The Missing Fleet Tool’.

Fifth wheel maintenance is also governed by determining the ratio of off-road to on-road operating conditions. Where a truck operates on-road, and is fitted with mudguards, cleaning, conducting wear checks and re-greasing a fifth wheel should be conducted within 15 000 km. In off-road conditions this falls to 7 500 km or even once a week, depending on the type of dust and severity of road surfaces.

Where are these obviously ‘low-cost’ fifth wheels likely to appear? Used trucks will be a real target as many used trucks have suspect fifth wheels and a used truck does not have to conform to OEM and SABS standards. The spending culture on used trucks is one of getting it out of a used lot at lowest cost. Also, do not expect roadworthy inspectors to spot this one when it’s covered in grease.

And then there’s just plain product liability. If this fifth wheel fails in service – its low quality is perceived to make failure a likely event – then responsibility will rest with the owner of the vehicle, as the rest is untraceable. The legal profession will feed where the forensic trail ends.

• Reference and acknowledgement – Jost Transport Equipment

It is important to match the fifth wheel strengths and weaknesses to the operating environment. This fifth wheel has an E-Type mounting on the pedestal (pin and bush). The only thing standing between the shock load of the trailer and the drive-train of the towing vehicle is the shock absorption offered by the fifth wheel. In this case with the pin and bush type mounting as seen here, there will be little to no shock absorption. This accelerates wear and failure even further.

The handle has no wear indicator. Even though it does have an adjusting bolt there is no way of knowing when the locking mechanism components (if obtainable) need replacement and this would unnecessarily complicate maintenance.

PAGE 58

AutoForum - July 2012

Show Time

Francois Hoegaard sitting in his new Audi R8 Spyder.

Brand boosting for Daytona

D

aytona group have had a busy winter so far. After meeting some of the guys at the McLaren driving day, I stopped in at the showroom to discuss the campaign and what it means to Daytona.

CEO Justin Davaris and Operations Manager Ryan Barwell were discussing the recent initiatives that Daytona Group have been engaging in. Not only did they recently complete a countrywide roadshow to showcase the McLaren MP4-12C, together with a range of Aston Martins and Rolls Royce vehicles, they also managed to scoop the title “most generous in class” by delivering the largest single automotive sponsorship in SA – the Audi R8 Spyder now in the clutches of Francois Hoegaard.

“We really just wanted to get the Daytona brand a visibility boost in the market”, says Davaris. “We distribute some of the world’s most luxurious and recognisable brands, but it is equally important to communicate that the Daytona Group delivers these cars to market”.

The group has a number of interests running from the Rolls Royce, Aston Martin and McLaren agencies to Mini, BMW and Audi dealerships, as well as luxury yachts and even jewellery. “Our business is, to use a cliché, based on relationships with our clients. They spend large sums of money and want to know that the quality of the product is matched by the quality of the service – and the fact that we do return business with most of these high worth individuals says it all”. Apparently 28 MP4-12C’s have already been sold in SA. Continued on page 60

SHOW TIME

- Warwick Robinson

PAGE 59

SHOW TIME

SHOW TIME

Brand boosting for Daytona

PAGE 60

AutoForum - July 2012 Sitting in Davaris’s offices, I have to admit that you do notice the showroom floor, and find your self wanting to pay it some serious attention. Covered with some of the world’s most exclusive automotive technology, I defy anyone not to feel like a kid in a candy store. The McLaren F1 is on display, there is a shiny new MP4-12C waiting for collection and Ferraris, Porsches, Aston Martins, Jaguars and Rolls Royce keep your eyes moving around the pretty shiny things.

We were fortunate enough to have actually driven the MP4-12C, and while I may be new to the experience of supercar driving, I can honestly say it has become most appealing! International reviews of the car have tended to be based on comparison’s to its nearest market rival – the Ferrari 458. I’m sure that many a bar-room argument can debate the merits or failings of either car – but when it is your backside strapped into the magnificent buckets seats of the McLaren, comparisons really don’t seem important.

Admittedly I was a bit nervous about driving someone else’s R3 million (upwards) car, but the interesting part was its drivability.

It felt at home in suburban streets (besides of course, the spinning necks of passersby) even dealing with speedbumps easily. But it’s the absolute mix of pure joy and terror as the car accelerates that gets you hooked. McLaren claim a 0-100 time of 3.2 seconds, and while I am certain I did not push it to its limits, the world certainly moves by quickly as you push the go button! Now feeling quite snobbish, I drove both the V12 Aston Martin Rapide, and the Rolls Royce – which is something you have to do at least once.

But the little packet of McLaren branded dynamite won my heart on the day – we can all dream, and if your ticket comes in with the right numbers – I suppose you know where to go spend that loot!

McLaren MP4-12C

Aston Ma

rtin Rapid

e

PAGE 61

AutoForum - July 2012

SHOW TIME

Automechanika 2012 and looking forward to JHB 2013

T

he next instalment of the ever-popular trade exhibition Automechanika, will take place in Frankfurt am Main, from 11 to 16 September this year. The organisers of the event have already highlighted some of the

key changes for this year’s exhibition, which includes the moving of Bosch from Hall 8 to Hall 9.0, which Robert Hanser, President of Bosch Automotive Aftermarket, explained gives the company the chance to present all

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PAGE 62

its brands together for the first time.

This move means that the western section of Frankfurt Fair and Exhibition Centre will focus on the complete range of products for Body Repairs and Paintwork (Hall 11), Workshop Equipment and Tools (Halls 8 and 9.0) and Filling Stations, Car Washes and Car Care (Southwest outdoor area and Hall 10). Another highlight is the addition of basic and advanced training activities in the Galleria, the vaulted glass hall between Halls 8 and 9, which is set to become a hive of activity with practical workshops and training courses. These will provide concentrated information about jobs and job hunting and, for the first time, will see certificates awarded to participants.

A new visitor guide entitled ‘Truck Competence’ will be published mid year, and will offer orientation for all visitors interested in products and solutions in the field of commercial vehicles, such as transport companies, forwarding agents, fleet operators and specialists from service companies in the commercial vehicle field.

Exhibitors were consulted as to what they wanted included in the brochure, and the spectrum extends along the entire commercial vehicle value chain from parts and accessories, as well

as workshop equipment, to bodywork repairs and care. From the middle of this month, visitors will also be able to search specifically for exhibitors and products using the ‘Truck Competence’ filter online at www.automechanika. com. This initiative will be repeated at the Automechanika Johannesburg event.

Just a few months later, a record number of exhibitors and visitors are expected to attend the largest ever Automechanika Shanghai, which will be held 11-14 December 2012 at the Shanghai New International Expo Centre, China.

Highlights of this year’s event include additional support for overseas companies wanting to gain a share of China’s auto market, with new International Zones in the product halls, in addition to the well-established International Hall; expanded Repair and Maintenance as well as Accessories and Tuning halls; and a wealth of new exhibitors.

If you are unable to get to Germany or China, you certainly will be able to attend the third biennial Automechanika Johannesburg, which takes place at the Expo Centre, Nasrec, from 8-11 May, 2013.

Says Show Director, Philip Otto: “I believe our show has matured since the first one was held in 2009 and can

proudly take its place alongside the established shows that make up this famous global brand.” The number of exhibitors was up 32% in 2011 to 547 companies, while there was a 10% increase in show visitors, rising to 9 036 last year.

Automechanika Johannesburg will again follow the international example of dividing the show into six categories: Parts and Systems; Accessories and Tuning; Repairs and Maintenance; IT and Management; Service Stations and Car Wash; Safari and Off-road Vehicles.

Tyres and Batteries will also receive special focus.

This year’s added focus on training is very much in line with what will happen at Automechanika Frankfurt in September. Explains Otto: “Already we are in discussions with the merSETA as well as other organisations to ensure this (training) aspect of Automechanika Johannesburg 2013 plays an even more important role in the vital areas of employment creation and skills upliftment.”

The event will again include a major conference to be staged under the auspices of the Retail Motor Industry organisation (RMI), which is one of the upcoming show’s endorsing bodies.

PAGE 63

New Releases

AutoForum AutoForum - July 2012 - July 2012

www.AutoForum.co.za

Solus® Ultra Diagnostic Scan Tool

Snap-on has launched its new state-of-the-art, full function, Solus Ultra Diagnostic Scan Tool to the SA market, and promises that it will make solving diagnostic challenges a breeze.

Some of the features of this product – the EESC318SA Solus® Ultra - include: • “Steady charge” battery technology that charges the unit directly from the vehicle, • A single, keyless adapter that covers all OBD-II applications, • The ability to operate all functions from the touch screen or from the 4-way keypad and Y/N button, • A unique cause and effect diagnosis, • No waiting to boot up, as the unit is ready to work in ten seconds.

The scan tool also boasts enhanced coverage; the ability to graph from one to four live data parameters simultaneously; and custom controls; amongst many more.

For more information, please visit the website, www.snapon.co.za.

New piston rod design for Rancho

Rancho recently announced that the piston rod design on its adjustable RS9000XL range now boasts advanced “Nitro-carburised design technology”.

The company points out that this process is not only environmentally responsible - unlike chroming - but also corrosion, chip, flake and crack resistant. The new design piston rods are identifiable by their darker colour, which is closer to black than the current brighter chrome rods.

The 18 mm diameter piston rod, liquid metallic finish, nitrogen gas-charged shock includes a protective boot.

The nine-position adjustability piston rods, combined with long-lasting polyurethane bushings, provide a consistent performance over a longer period, and are ideal for serious off-roaders.

CI to distribute Vision X LEDs Control Instruments Automotive has been named the sole distributor of US-based LED lighting manufacturer, Vision X. The low-energy LED lighting products are designed for the mining, military, engineering, industrial, security, agriculture and 4x4 markets.

According to Product Manager Leonard Chester, LED lights are the most energy efficient and environmentally friendly light sources, as they reduce carbon footprint and CO2 emissions and, when discarded, do not leach poisonous mercury into the water system. He continues that LED products realistically last over 25 000 hours, compared to the 250 hours of halogen lights, while emitting very little heat. At the same time, the technology requires 60-90% less energy than incandescent lighting, which far outweighs the higher upfront cost of the product.

The RS9000XL range works in conjunction with the brand’s wireless MyRIDE remote tuning system, which makes adjusting the ride from firm to soft and anywhere in-between, simple and precise from the comfort of the cab.

Says Chester: “Vision X is able to manufacture custom lights to almost any specification.” He continues that the brand’s LEDs produce nearly twice the light of normal LEDs and include its Electronic Thermal Management (ETM) technology to keep the lights at safe low-operating temperatures. ETM boasts enhanced optics that optimise beam distance and depth, giving the LED its full 50 000 hour potential.

The new piston rod design will be phased in throughout the year, but will require no changes to the part numbers, weights, applications or dimensions.

The products will be available directly from Control Instruments Automotive and from Safari Centre branches countrywide. All the products come with a three-year warranty.

PAGE 64

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AUTOFORUM

DIRECTORY LISTING

After-Marketplace Directory

To advertise your listing in AutoForum After-Marketplace 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

First National Battery

Industrial & Automotive Batteries

011 741 3600

MED Motor Electro Diesel

AutoElectrical Components & Accessories

021 505 4000

Parts Incorporated Africa

Automotive Components & Accessories

011 879 6000

Trysome Auto Electrical

Parts, Accessories & Batteries

011 823 5650

Connoisseu Automotive

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021 419 7188

Highveld Garage Equipment

Air Conditioning Specialists

012 330 0540

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Air Conditioning Equipment

011 498 0700

Snap-on Equipment

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Aer-O-Cure

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011 444 6454

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011 452 9688

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086 010 1317

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012 330 0540

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Consumables

086 010 1317

Aer-O-Cure

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011 444 6454

Beissbarth

Wheel Alignment Equipment

011 651 9600

Bosch

Diagnostic Equipment

011 651 9600

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Aftermarket Parts & Accessories

08600 03227

Gabriel - C I Automotive

Shock Absorbers

086 124 2886

Highveld Garage Equipment

Engine Analyser & Diagnostic Scanners

012 330 0540

Macs Automotive

Air Conditioning Diagnostic Equipment

011 498 0700

NAPA/Midas Group

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011 879 6000

Snap-on Diagnostics

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0861 762 766

Wheelquip

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021 949 0010

Industrial Interlocking Floors

011 873 1292

Aer-O-Cure

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011 444 6454

Beissbarth

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011 651 9600

Bosch

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011 651 9600

BSE

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011 452 9688

Diesel Electric

Aftermarket Parts & Accessories

08600 03227

Gabriel - C I Automotive

Shock Absorbers

086 124 2886

Highveld Garage Equipment

Tyre & Lifting Equipment & Tools

012 330 0540

Hofmann Megaplan

Complete Range of Garage Equipment

011 472 7279/5954

Integrated Marketing

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011 974 2202/3

Ital Machinery

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011 483 3737

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0861 762 766

Leaderquip

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011 334 1680

Macs Automotive

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011 498 0700

Motor Merchandise

Consumables

086 010 1317

NAPA/Midas Group

Aftermarket Parts & Accessories

011 879 6000

Snap-on Tools

Tools & Garage Equipment

0861 762 766

Wheelquip

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021 949 0010

Alert Engine Parts

Distributors of Quality Parts

021 590 8250

Alfa Brake Drums & Discs

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011 608 0801/3

AUDI Parts

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086 043 4838

Bosch

Parts, Accessories & Batteries

011 651 9600

Diesel Electric

Aftermarket Parts & Accessories

08600 03227

Drivelines

C.V's and Driveshafts

011 763 3212

Federal Mogul Champion

Aftermarket Parts & Accessories

011 630 3000

First National Battery

Industrial & Automotive Batteries

011 741 3600

GM South Africa

Aftermarket Parts & Accessories

080 042 2777

Gabriel - C I Automotive

Shock Absorbers

086 124 2886

Macs Automotive

Air Conditioning components

011 498 0700

MED Motor Electro Diesel

AutoElectrical Components & Accessories

021 505 4000

Midas

Aftermarket Parts & Accessories

011 879 6000

NAPA/Midas Group

Aftermarket Parts & Accessories

011 879 6000

Partquip

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011 634 7600

Parts Incorporated Africa

Automotive Components & Accessories

011 879 6000

RAM

Belts & Hoses

011 248 9400

SABAT

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Safeline

Brake Pads

011 549 7333

Trysome Auto Electrical

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011 823 5650

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Aftermarket Parts

011 432 2667

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08600 03227

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