2013 March AutoForum by AutoForum

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March 2013

I N F O R M E D

PAGE 28

I N N O V A T I V E

Meet the new RMI CEO

IN PARTNERSHIP WITH AUSTRALIAN BODYSHOP NEWS

VW’s GOLF 7 is here IN N OVAT I ON S

A N D

Inside PSA’s Innovation Day

Ford Localises Components Leadership in Turbulent times MHE for productive trucking PAGE 1

AutoForum - March 2013

Diarise 8-11 May

Automechanika News

PAGE 2

Automechanika Johannesburg The trade fair tailored to the motor industry aftermarket

utomechanika Johannesburg is the leading motor industry aftermarket trade fair for Southern Africa and provides a great opportunity to do business.

This largest automotive aftermarket commercial event of its kind, brings together professional visitors, mechanical, metal, collision repair and paint workshops, electromechanical workshops, tyre, windows, spare parts and accessories manufacturers, fleet managers, workshop networks, service providers and more. Automechanika Johannesburg has designed a programme for national and international

business focused on key accounts in South and Southern Africa. An agenda of professional meetings begins on Wednesday 8 May and kicks off with a Collision Repair Industry Conference and a Fuel Dealers Conference followed by three days jam-packed with stimulating discussions. Companies can choose a model for their exhibition space in line with their budgets, with a more economical basic turnkey stand format or even a designer stand.

There's still time to take part as an exhibitor at Automechanika Johannesburg

ny companies wishing to do so are still in time to sign up for the latest edition of Automechanika Johannesburg, which takes place from 8 - 11 May 2013 at the Johannesburg Expo Centre. The process is very simple and Automechanika Johannesburg makes it even easier for companies to be present according to their objectives and

budgets, with economical formats using modular stands, starting from R16,500.

they will be showcasing. In summary, Automechanika Johannesburg will be the most comprehensive event in the automotive aftermarket sector.

The forthcoming edition of Automechanika Johannesburg, with 481 companies already confirmed, is generating great interest in the automotive parts, equipment and service suppliers industries. A number of exhibiting companies have already announced the new products

Does your company manufacture or distribute garage equipment? D

Automechanika Johannesburg A an event full of selling opportunities a

utomechanika Johannesburg returns as the biggest gathering for the garage equipment sector. This is the largest gathering of repair shops and professionals who want to see the latest innovations while they seek suppliers.

There are many advantages to attending the show. Firstly, it is the best platform to present the innovations, products and services on offer for repair shops. A unique opportunity to do business.

Several associations will hold member workshops. A huge advantage for participants is that Automechanika Johannesburg acts as a magnificent showroom, where equipment manufacturers can deliver live product demonstrations. emonstrations.

Live demonstrations at Automechanika Johannesburg g

utomechanika Johannesburg is a suitable platform for live demonstrations which encourages free practical demonstrations, shows and live repairs, presented by exhibitors.

Exhibitions are a very visual format which allow exhibitors to give a better demonstration of what their workshop products offer.

Training and skills development are a strategic pillar of the event. The Organisers are working closely with MerSETA to expand on this.

PAGE 3

AUTOMECHANIKA

AutoForum - March 2013

Johannesburg Gears Up for MOTOR INDUSTRY AFTERMARKET WEEK featuring future retail and aftermarket industry trends

ith a total of 481 companies already confirmed and with some nine high-profile conferences and workshops, the build-up to Motor Industry Aftermarket Week is in full swing. Motor Industry Aftermarket Week opens with a high profile Media Conference on Wednesday 8 May when South Africa announces the winners of the prestigious Innovation Awards at Automechanika Johannesburg. Booking information for all of the workshops and conferences is on www.automechanikasa.co.za

Dr AzarJammine, Chief Economist, Econometrix will present an economic overview with specific reference to the automotive aftermarket sector.

Roger Pitot, Director, NAACAM will host a practical workshop on the Automotive Production and Development Programme (APDP)

Malcolm Perrie, Managing Director, Parts Incorporated Africa will address the Workshop Sector Clinic.

AvhapfaniTshifularo, Executive Director of SAPIA will address the Fuel Dealers Conference on the Clean Fuels II Programme.

The industry programme includes:

Wednesday 8 May  Media Conference  ERA  Fuel Dealers Conference  SAMBRA Conference

Thursday 9 May  MISA Industry Breakfast  NAACAM APDP Workshop

Friday 10 May  Truck Competence  Retail Motor Trends  AIDC Investors Conference

Saturday 11 May  Workshop Day

Business Matchmaking

he Automechanika 2013 Business Matchmaking Programme will create a proactive, pre show platform enabling exhibitors, pre-registered visitors, walk in visitors and sponsors to view profiles of participants and select who they want to meet at the event.

confirmed participantss creating individual matching reports, encouraging meeting selections and pushing g meeting requests into confirmed interactions that take place at the event.

As soon as an attendee is confirmed to attend the event, the Automechanika 2013 Business Matchmaking Team will profile your company and provide access to the online matchmaking program.

In addition, the onsite Automechanika 2013 Business Matchmaking Team assists you with your pre-scheduled meeting arrangements and matches walk in visitors to matching exhibitors.

Our Business Matchmaking Team works 6 weeks before the event by pre-profiling all

PAGE 4

EASY ON LINE REGISTRATION NOW OPEN AT www.automechanikasa.co.za

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Automechanika Johannesburg Innovation Awards Entries Now Open

ntries for Automechanika Johannesburg’s Innovation Awards have begun to roll in as the deadline for acceptances nears. With only a few weeks to go before the March cut-off date, entries have been received in a number of categories, including OE Products and Services, Automotive Systems, Tuning, and Repair and Maintenance. Chairman of the Panel of Adjudicators, Wynter Murdoch, says the jury will look to identify products that hold the promise of performing beyond expectation, that are innovative and promote efficiency, are perceived to represent good value for money, are of excellent quality and which bring fresh perspectives to the OE or aftermarket segments in which they compete. “Functionality, practicality, styling, benefits to users, environmental friendliness and other perceived pioneering qualities are among the specifics that panel members will be searching for,” he says. If you want to enter an automotive product which you consider pioneering – and which could win for you special exposure at Automechanika Johannesburg in May – please read the HOW TO ENTER section which follows. Any automotive related product which is manufactured or distributed in the South African aftermarket or OE supply chain is eligible for the competition. There is no entry fee.

How to enter: Prospective entrants are invited to submit by the end of March, photographs and a detailed description of any automotive aftermarket or OE product they have developed, manufactured, imported or distributed in South Africa, which they deem worthy of entry into Automechanika Johannesburg’s Innovation Awards 2013.

Based on the photographs and descriptions – which must include information relating to the technical characteristics and OE or aftermarket relevance of each product – panel members will individually rank each item. From the returned score sheets, products determined on the basis of highest marks achieved on a collective basis will be deemed to be finalists. Representatives of the companies whose products have been selected will be asked to submit by Monday, April 15, two examples of the items for physical scrutiny by panel members. Following that evaluation, the winners will be determined on the basis of highest marks scored on a collective basis. The organisers of Automechanika Johannesburg have arranged for exhibits of the winning products to be highlighted in a display at the show, which takes place in Johannesburg from May 8 to 11. Presentations will be made during the course of the exhibition to winners at an official prize-giving ceremony.

The description of each product must include its country of origin, when it was introduced to the South African market, the category of the OE or aftermarket sector at which it is aimed – Parts & Accessories; Automotive Systems; Diagnostics; Tuning; Repair and Maintenance; OE Products & Services; IT and Management; Service Station & Car Wash – as well as the following:

 Perceived innovative quality;  The solution the product aims to provide;  Its functionality and user benefits;  Perceived economic efficiency;  Safety aspects it promotes;  Environmental aspects it promotes;  Its relevance to the aftermarket or OE; Don’t forget to include with your entry your name, e-mail address and telephone numbers, along with those of the company you represent. If you have any queries or require more information regarding the initiative, please contact Wynter Murdoch Tel: 011 803 2040 e-mail: wynter@thefuture.co.za.

If you would like to enter your company’s products in the Innovation Awards, submit by e-mail your product motivations, along with pictures of the items to wynter@thefuture.co.za. PAGE 5

March 2013

CONTENTS 12

Cover Stories Ford localises components

Meet the new RMI CEO

VW’s Golf 7 is here

Leadership in turbulent times

PSA’s Innovation Day

MHE for productive trucking

Trade Talk

Highlights of global and local industry news

Thank you to VWSA for our cover photo.

News Forum

Ford localises components

Editorial

Redisa case - RMI granted leave to appeal

RMI appoints new CEO

Nissan US in EV quick-charge strategy

Gabriel supports the Rhino Orphanage

Tshwane Automotive City

Easter shock check

The past few weeks have certainly been occupied with news of fallen heros. The public outcry, the shocked devotees and the gory details are replayed at every news broadcast. Of course, the bottom line is that everybody is human and we are living in extremely turbulent times. How you manage the turbulence can define you and your business - so see our top tips in the Business Forum section.

Golf's latest model is now in SA

Gauteng drive to attract auto sector

We at AutoForum too have fallen foul of turbulence with our February issue having been sidelined by the recent postal strike. We apologise for the inconvenience and hope you enjoy the issue regardless.

DPC is now Axalta Coating Systems

EDITOR: CLARE RUTKIEWICZ

Software systems that keep you ahead of the pack

Pro-Line range launches in South Africa

BodyShop News

Business Forum For every action there is an equal and opposite reaction

The challenge of leadership & management in turbulent times

Fuel station owners – Advice in tough times

Is your front page selling newspapers?

CONTRIBUTORS: AUSTRALIAN BODYSHOP NEWS ROY COKAYNE ROBERT KAISER Graham Bush

DAVE SCOTT Colin Windell Michel Malik Kirsty Chadwick

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

BodyShop News Chevrolet debuts ‘Smart Material’

PSA's Innovation Day

Commercial Vehicles The power of MHE in trucking productivity

UD Trucks rub their crystal ball

Upgrade your fleet management system and save in 2013

Improving fuel economy for trucks

Show Time AfriMold 2013

Gauteng Motor Show all set for June

Aftermarketplace Latest offerings of local products

A N D

I N N O V A T I V E

Advertisers Guide Aerocure Alfa Alert Engine Parts AMR China AUDI Parts Autocosmos - Electrolog Autopromotec Blei Direct Data Equipment Africa Enertec Federal-Mogul First National Battery Highveld Garage Equipment Hoffman Megaplan Integrated Marketing Ital Machinery Keizin Automotive Leaderquip MACS Automotive MIDAS MISA Nissan Parts & Access PSH Service Holland RAM - Veyance Technologies Robert Bosch SABAT Batteries Snapon Spec Tools Trysome Auto Electric

OBC 15 21 59 32 - 33 66 61 67 49 27 41 35 57 17 31 7, 47 29 47 13 37 24 19 15 40 25, IBC 51 39 53 45

Turbo Exchange

22 - 23

UD Trucks Victor Reinz

55 43

VW Parts Wheelquip Windscreen Distributors ZF

9 60 63 11

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-- March March2013 2013

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More investments for CTSA In February, Continental Tyre South Africa (CTSA) announced that it has plans to invest R91 million in new machinery and upgrades to its Port Elizabeth plant in 2013. The spending is largely to keep it up to speed with the latest technology and is in addition to the already invested R400 million spent over the last four years. As Gishma Johnson, CTSA Corporate Communications Manager explains: “There is also an increased demand for 4X4 tyres and to keep up with demand we have to invest in additional machinery.”

BMW wins “Gelber Engel” award

BMW AG CEO Dr Norber Reithofer recently received the “Gelber Engel” award for the BMW 520d EfficientDynamics Edition BluePerformance, in the category “Car of the Future”. The BMW 520d EfficientDynamics Edition BluePerformance, is described as fulfilling the principle of sustainability to the highest degree by virtue of its avoidance of losses and maximum use of energy. As a complement to the comprehensive package of BMW EfficientDynamics measures aero wheels, tyres with reduced roll resistance, a modified engine design, an adapted final drive ratio and an optimised gear shift indicator ensure a remarkably low consumption level of just 4.5 litres per 100 kilometres in the EU test cycle and a CO2 value of 119 grams per kilometre. In addition, the innovative BMW BluePerformance system featuring an additional catalytic converter helps to further reduce harmful substances in the exhaust gas - nitrogen oxides. And all this without compromising driving pleasure. On the contrary, with an output of 135 kW (184 hp), the BMW 520d EfficientDynamics Edition BluePerformance excels through sporting driving characteristics. The “Gelber Engel” is awarded to those who continue to make progress in the promotion of mobility.

New world record ad Usain Bolt, the “world’s fastest man” and Olympic sprint champion, is now truly larger than life. An image of a double-sized Bolt is now prominently featured on a Nissan billboard at Dubai’s international airport. The billboard’s dimensions were recognised recently as a new Guinness World Record. The ad shows Bolt, already a standout at 1.95 m tall in the flesh, at over 4.1 m even in a crouched position. The megasized picture of Usain Bolt is one of a series of advertisements currently placed in major international airports around the world as part of Nissan’s “What IF_” global brand campaign.

PAGE 8

Johnson added that with the machinery will come new IT systems, which the company expects will result in significant production efficiencies, and new methods to reduce the facility’s environmental impact. The company produces both Continental and General Tyre brands, as well as Barum and Matador, and in 2012 produced more than 3.5 million tyres. Johnson warned, however, that: “The ongoing increase in electricity and fuel prices is a major threat for our competitiveness. We compete for business against a number of other developing countries where production costs are significantly lower than South Africa’s.” She added that local port charges and additional taxes and levies were increasingly placing pressure on companies that want to continue investing in the country.

Visit vw.co.za and follow us on facebook.com/vwsa

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Wheel Bearing with assembly parts Part No: 1J0-498-625 Beetle 2003 - 2010 (All) Golf 1998 - 2006 (All) Jetta 1999 - 2006 (All) Price: R 525.81

Release Bearing Part No: 020-141-165-G Citi Golf 1998 - 2009 Price: 99.70 (For 1.3, 1.4, 1.6 & 1.8 models)

Thrust Plate Part No: 055-141-124J Citi Golf 2002 - 2006 (For 1.4 & 1.6 models) Price: R 187.93

Clutch Pressure Plate Part No: 067-141-026F - LD1 Citi Golf 1996 - 2009 Price: R 375.38 (For 1.3, 1.6 & 1.8 models)

Water Pump Part No: 06B-121-011-Q Caddy 2009 - 2011 Golf 2009 - 2011 Jetta 2006 - 2011 Touran 2009 - 2010 Price: R 1331.29 (For 1.6 models)

Air Cleaner Part No: 6KS-129-607-B Citi Golf 1996 - 2009 Price: R 325.51 (For 1.4i & 1.6i models)

Conn Link Part No: 6Q0-411-315-Q Polo 2003 - 2012 Price: R 276.20 (For 1.4 & 1.6 models)

Clutch Cable Part No: 17S-721-335D Citi Golf 1996 - 2009 Price: R 141.65 (For 1.4i & 1.6i models)

Clutch Kit Part No: 03L-141-015-P Golf 2009 - 2011 Price: R 2510.04 (For 2.0 TDI models)

Double Poly VBelt Part No: 06A-260-849-B Caddy 2004 - 2011 (For 1.6 models) Golf 1998 - 2006 (For 1.6, 1.8 & 2.0 models) Jetta 1999 - 2006 (For 1.6, 1.8, 2.0 & 1.9 TDI models) Price: R 285.06

Sealing Flange Part No: 028-103-171-B Citi Golf 1996 - 2009 (For 1.3, 1.4 & 1.6 models) Polo 1996 - 2003 (For 1.3, 1.6 & 1.8 models) Price: R 320.27

Starter Part No: 02T-911-023R Jetta 2006 - 2011 (For 1.6 models) Price: R1244.76

Lock Cylinder Part No: 17S-800-375E Citi Golf/Caddy 1996 - 2009 Price: R 995.29 (For all models)

Poly V Belt Part No: 038-903-137-AA Polo 2003 - 2010 (For 1.4TDI & 1.9 TDI) Price: R 178.38

Thermostat Part No: 032-121-111-CL Polo 2003 - 2010 (For 1.4 & 1.6 models) Price: R 812.55

Clutch Kit Part No: 06J-141-015-J Jetta 2006 - 2011 (For 2.0 models) Price: R 2721.15

Heat Exchange Part No: BBW-819-031-A Citi Golf/Caddy 1996 - 2009 (For all models) Price: R 572.31

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Trade Talk

AutoForum - March 2013

Ford makes World’s 50 Most Innovative Companies list Fast Company – a US publishing house – recently held their annual Most Innovative Companies issue honouring leading businesses, including Apple, Amazon, Google and Target, along with many others. Ford Motor Company is the only full-line automaker named to the 2013 list. Fast Company editors highlighted an array of recent efforts by Ford, including the opening of a Silicon Valley Lab in California last year, where Ford engineers can collaborate with some of the best and brightest technology minds. Among the innovative features already available in Ford vehicles, the award-winning SYNC connectivity system, the advanced driver assist systems in the 2013 Fusion model, and the current research on future systems including a driver workload estimator to help drivers manage stressful situations on the road, were also mentioned. The Most Innovative Companies is Fast Company’s most significant, high-profile editorial effort of the year. The editorial team spends months gathering and sifting data to identify those enterprises that exemplify the best in business from across the economy and around the world. Fast Company’s Most Innovative Companies issue (March 2013) is available online at www.fastcompany.com/MIC.

PAGE 10

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Siri now in three 2013 models American Honda says it will install Apple’s Siri voice-activated telematics assistant into several of its 2013 models. The 2013 Honda Accord and Acura RDX and ILX will offer Siri as a dealer-installed option, the company said in a recent statement. “Owners with a compatible iPhone running iOS 6 can direct Siri to perform a number of specific tasks while they safely keep their eyes on the road and their hands on the wheel,” Honda said in the release. Siri’s “Eyes Free” mode minimises driver distraction by keeping the iPhone’s screen from illuminating. Vehicles compatible with the Siri service will allow drivers to make calls, dictate text messages, look up directions and use other Siri functions, either via Bluetooth or by plugging their iPhone into a USB cable in the car. Honda’s version will connect via Bluetooth and use the onboard microphone and speakers to communicate. Pressing a button on the steering wheel will activate Siri, and drivers can speak commands to their phone hands-free. Last year at the Worldwide Developers Conference, Honda, Toyota, GM and Audi said they would be using Siri in future automotive applications. Apple said that Chrysler, Mercedes, BMW, and Jaguar/Land Rover announced similar intentions shortly thereafter.

Trade Talk

AutoForum AutoForum-- March March2013 2013

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Cooper Tyres re-launch in SA The Cooper Tire and Rubber Company recently invited Spaniard Xavier Foj, winner of the Production class in the 2013 Dakar rally, to speak at the re-launch of the Cooper tyre brand in South Africa. Foj crossed the finish line 13 minutes clear of his nearest rival, using Cooper Discoverer S/T Maxx tyres on his production-based Toyota Land Cruiser. Cooper Tyres South Africa also used the event to highlight its newly added range of SUV and passenger products, which complements its range of 4x4 tyres. Most impressively, the all-terrain and selected SUV products boast a mileage warranty of 85 0000km. Cooper is the world’s 9th largest tyre manufacturer, with a turnover of $ 3.4 billion in 2011. With head offices based in Ohio, USA, the company has manufacturing facilities in the United States, Mexico, United Kingdom, Serbia and China. It states that it is committed to protecting the environment by considering all aspects in the design of products and processes, preventing pollution, using energy and resources wisely, strictly controlling emissions and reducing waste.

PAGE 12

FNB's new green battery formation First National Battery (FNB) recently announced that it has shifted from the traditional lead-acid battery formation process – which is the the first time charging of a battery with the introduction of acid recirculation technology. This is applicable for the formation of truck and traction batteries as used in forklifts and mining locomotives, as well as for the formation of solar and gel batteries. These new green production units are the first of their kind installed in Africa, are modular and can be expanded as demand dictates. What makes the system unique is that it uses a closed formation process that doesn’t negatively impact the environment with acid fumes. FNB says that by forming traction batteries individually as cells or as complete batteries in tailor-made fork truck tanks, it has dramatically cut the delivery time of finished products to customers. At the same time, an acid recirculation process lessens the process time in the production of commercial vehicle batteries, again improving customers’ delivery time. But faster time does not mean reduced quality as a completely digital system that controls acid density and temperature profiles is used throughout the entire process, resulting in uniform cell to cell voltages. Other benefits include high charging currents - which contribute to a shorter battery formation time - and reduced production processes, meaning less work in progress and no need to carry high stock levels.

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Trade Talk

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10Mth CRSN for Bosch Bosch recently announced that it has produced its 10 millionth common-rail system for commercial vehicles (CRSN). The technology, which delivers enhanced efficiency and lower emissions, was initially launched in 1999, with one million systems having been manufactured by the end of 2003. The first Bosch common-rail system for commercial vehicles (CRSN1) was unveiled in 1999 in the light-duty segment at Iveco. The first heavy-duty application followed shortly thereafter at Renault, and delivered an injection pressure of 1,400 bar. In 2001, the enhanced 1,600 bar system was rolled out in the US pickup segment, with many more variants following over the years. Across the generations and development stages, all CRSN systems share common features, including a pressure accumulator from where the fuel is injected at high pressure into the cylinders via the connected injectors. The separation of pressure generation and injection provides additional leeway as regards engine design. Solenoid valves precisely meter the fuel and support up to seven individual injections per power cycle on the current systems. Flexible multiple injections make the engines quieter as well as reducing emissions and fuel consumption. Apart from injection technology, the company says that it is also working on other systems to reduce fuel consumption and emissions in diesel engines. These include the Denoxtronic and Departronic exhaustgas treatment systems, which are designed to reduce emissions of nitrogen oxide and particulates respectively. It is is also working on the hybridization of the commercial-vehicle powertrain.

PAGE 14

Luxurious lure Luxurious interiors are becoming a top factor in luring car and truck buyers, while increasing profit margins for automakers. According to the Detroit News, reliability takes a back seat to interior design among consumers. A recent J.D. Power & Associates survey found a greater percentage of consumers in the US will buy an unreliable vehicle than one with an interior design they perceive as unattractive. Ford Design Manager Susan Sage, with leather supplier Leo Trevino, commented: “I think the customer now is really accepting the price point for the leather.” Luxurious interiors are becoming a top factor in luring car and truck buyers, and increasing profit margins for automakers. It’s all in the name of profits. A former Nissan Motor Executive confirmed that leather-wrapped interiors and ambient lighting can provide automakers a profit margin boost of four to six percentage points. According to the report, automakers are so intently focused on interior options that company and supplier executives say they’ll cut elsewhere if they need to shed overall cost. That fact is particularly intriguing as the US economy faces continued instability and with the recent expiration of the payroll tax holiday, which cuts Americans’ take-home pay by 2% or the equivalent of thousands of dollars over the lifetime of vehicle ownership.

AutoForum - March 2013

The latest global news

Ford localises components

- Roy Cokayne

Automotive component manufacturers and suppliers are set to benefit further from the Ford Motor Company of Southern Africa’s (FMCSA) Ranger pick-up programme. This follows FMCSA’s President and CE Jeff Nemeth confirming it planned to increase the local content in the Ranger.

emeth said the increased localisation would involve using South African suppliers it was currently not using and also localising components that were not currently manufactured in SA. He said this would help Ford to reduce its logistics costs and also increase the flexibility of its components supply chain. He admitted the company’s production plant in Silverton in Pretoria had experienced challenges in supplying the new Ranger to about 148 markets globally, because of the length of its component supply chain. The logistics costs of its supply base were well above forecast and it was therefore also looking to localise more components, which would give them more flexibility, he said. Nemeth said the local content in the Ranger, depending on the model derivative, currently ranged between 65% and 75% but stressed the more Ranger units it built, the more economically attractive it became to localise components.

PAGE 16

He said the Ranger line was currently operating on a one-shift day but would move to a second shift in September and also ramp up the line speed in the second half this year by 15% and increase the line speed again in 2014. “So we should see more localisation in the next two years.” Ford SA launched a R3.4 billion investment programme in 2008, with the investment split between its vehicle assembly plant and its Port Elizabeth engine plant, after securing the contract to produce the new Ranger locally. He said FMCSA had installed a system globally to allow it to be very nimble to customer demand, because of its long supply chain and its 148 markets. Nemeth said this system allowed dealers to amend their orders within a few weeks of production, but because of the length of its supply chain with components coming from Thailand, China, the UK, Germany and Argentina, they experienced some supply disruption to the plant last month.

Roy Cokayne is a senior financial reporter for Business Report.

This meant they were not able to build some Rangers and the plant was down for a few days in January because of this problem. To fix it, they were increasing their inventory of critical parts and limiting the ability of dealers outside of Africa to amend their orders so close to production, he said. “Between those two things, it will stabilise our production tremendously and allow us to build to schedule each day,” he said. Nemeth added that FMCSA introduced a lot of new suppliers to SA with the launch of the Ranger and it had taken them a while to understand how to do business in Africa. Together with the dti, through the Industrial Development Corporation (IDC), FMCSA and its global supply chain resources had been assisting its local supply base to get to the point where they were supplying the plant as expected. Nemeth attributed this problem to some growing pains with the Ranger’s production almost tripling from 25 000 units a year with the previous model to 70 000 units a year with the new model.

Dean Stoneley, FMCSA’s VP Marketing, Sales and Service, said the supply disruptions in January had led to the decline in Ranger sales to fifth highest among the top selling light commercial vehicles, after consistently been in second position towards the end of last year. Stoneley said the Ranger last year beat its previous market share record of 12.5% of the new light commercial vehicle market set in 2005 by achieving a market share of 17.3%, despite it only being on sale for 10 months last year. “With a full 12 months of Ranger sales this year, we are confident we will be well in excess of 20 percent of market share in the one ton market,” he said.

AutoForum - March 2013

NEWS FORUM

Redisa case - RMI granted leave to appeal

n mid February, the RMI released a statement to the media informing them that Acting Judge Bam had granted leave to appeal in the ongoing saga of the Redisa case (see AutoForum February issue for the full story). The case will be heard on an urgent basis in the Supreme Court of Appeal before a panel of judges, but at the time of going to press the date had not been finalised.

she should not have withdrawn approval of the plan at that time, then by the same logic, it can be concluded the Minister was not able to withdraw the approval of the plan previously gazetted in November 2011. This would then mean that the November 2011 plan stands and is in force. Redisa would then be obliged to implement its plan, attendant with all the ramifications this would have for the industry.

Just as the RMI statement was released, however, Redisa sent out its own media statement, which read as follows:

“Although the reinstatement of the November 2011 plan would be positive for Redisa,” continued Erdmann, “we would prefer that this not be the case because having to enforce the November 2011 plan retrospectively would create considerable difficulties for the industry.”

“The granting to the RMI of leave to appeal the recent judgment by N Bam, AJ in the matter pertaining to the gazetting of the Redisa Waste Tyre Management Plan will not affect the implementation and operation of the Plan, confirmed Redisa CEO Hermann Erdmann. Acting Judge Bam granted the RMI leave to appeal chiefly on the legal point of whether the Minister was entitled to withdraw her approval of a prior version of the plan. “In our opinion and that of our legal team, we are quite certain the Minister was perfectly entitled to do so,” adds Erdmann. “However, if the Supreme Court of Appeal does determine that

PAGE 18

Redisa remains of the view that the judge was correct in his judgment, but nevertheless welcomes the opportunity for the Appellate Division to confirm this and put an end to all the legal uncertainty. In the meantime, Redisa would like to reiterate and make utterly clear that, until the appeal is ruled on, the Redisa plan approved by the Minister on 30 November 2012 remains in full force and effect. To this end, all aspects of the Redisa plan must be adhered to by law.”

PAGE 19

NEWS FORUM

AutoForum - March 2013

RMI appoints new CEO

- Robert Kaiser

The announcement that Jakkie Olivier, Executive Director of the Retail Motor Industry Organisation, has been appointed by the RMI Board of Directors as Chief Executive Officer of the Organisation with effect from 1 July 2013 to succeed current CEO Jeff Osborne, who retires at the end of June, has been widely welcomed by the membership of the RMI and key stakeholders in the retail motor industry.

orn in Namibia and raised in the Postmasburg area in Northern Cape, Jakkie, who holds B.Com (University of the Free State), B.Com (Hons) University of Johannesburg and a Master of Business Leadership (MBL) (University of South Africa) qualifications, joined the RMI in 1992 and has served the Organisation in different capacities, including

Regional Manager: Northern Region, Director of the SA Petroleum Retailers Association (SAPRA) and - for the past 12 years - as Executive Director, responsible for the crucial Labour Portfolio of the RMI. In this capacity he drives and coordinates the interface between the RMI and organised labour at various levels, such as the Motor Industry Bargaining Council (MIBCO), Motor Industry Fund Administrators (MIFA) the MIBCO Dispute Resolution Centre (DRC), the merSETA and Moto Health Care Medical Scheme and is the mandated spokesperson on behalf of the RMI at these forums. Ongoing liaison and interface with the Department of Labour at different levels in respect of the role and responsibilities of the RMI as the largest employers’ association in the retail motor industry and in conformity of the provisions of the Labour Relations Act and other relevant legislation, plus dealing with a wide range of day to day management responsibilities ensures that he has his days cut out for him. In reply to a question of how he sees his role as CEO from July: “There is no doubt that our industry and the RMI as the leading representative employers’ and business organisation have over the years experienced challenging times, but we have demonstrated a resilience to overcome and emerge stronger, more refined and better equipped to sustain and grow the Organisation and the industry to the benefit of all stakeholders. I believe that our Project Renewal Plan, which was recently adopted by the Board of Directors, outlines a clear strategy for improving the RMI’s service delivery to our members and am committed to ensuring that the Plan is fully implemented to the benefit of the membership. Furthermore, I would like to see that better and more effective communication with our membership is achieved and in order to realise this, believe that ongoing efforts to develop sound relationships with our membership, especially at Regional and associational level, must underpin our efforts in this regard. We must never lose sight of the fact that the vast majority of our members are in the small and medium business categories and they need an employers’ and business organisation that is sensitive and responsive to their specific needs. In this manner, we will also stimulate more participation in the affairs and the governance of the RMI as the leading voice in the industry.” AutoForum congratulates Jakkie Olivier on his appointment, wishes him every success in his new role from July and assures him of our support in the new directions he will be pursuing at the RMI.

PAGE 20

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.

NEWS FORUM

AutoForum - March 2013

Nissan US in EV quick-charge strategy In early February, at the Washington Auto Show, Nissan outlined its strategy for tripling the current electric vehicle quick-charging infrastructure in the United States. This involves the addition of at least 500 quick-charging stations in the next 18 months, including the greater Washington D.C. area’s first fast-charge network.

issan and its charging infrastructure partners estimate that about 160 fast chargers are currently available for public use across the US, with no fast chargers available for public use in Washington D.C. Most electric vehicle (EV) drivers currently rely on home charging, and having additional charging options can significantly increase their rate of EV driving.

“We envision a quick-charging network that links communities and neighbourhoods where people live, work, shop and socialise,” said Brendan Jones, Nissan’s Director of Electric Vehicle Marketing and Sales Strategy. “Having a robust charging infrastructure helps build range confidence, which boosts interest in and use of electric vehicles.” Nissan’s strategy is focused on a threeprong approach to increase the number of available fast chargers though its

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dealer network, workplace campus charging and opportunities within local neighbourhoods that help interconnect communities where drivers spend the bulk of their time and do the majority of their driving. The automaker is working with its dealers, local municipalities and infrastructure partners that include NRG Energy and its eVgo Network to increase the current number of public charging options. In addition to growing the number of public charging stations, Nissan aims to make charging available in more workplaces, with workplace charging having grown in popularity with an increasing number of companies in the US providing this benefit. “There are now about 1 500 private charging stations that exist in workplaces, allowing for what’s called ‘end-toend’ charging. That means that the car’s

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battery is fully charged when the driver leaves home, and it will be fully charged when that person leaves work,” said Jones. “It’s another way to give electric vehicle drivers more flexibility to run errands and make other stops between work and home.” To encourage more companies to offer charging benefits on their campuses, Nissan has collected best practices from corporations who already offer incentives for electric vehicle owners to share with other corporations who are interested in growing the workplace charging infrastructure. Nissan has launched a study with about 30 dealers to help determine best practices for leveraging dealer participation within the fast-charging infrastructure to provide public access.

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mothers with a calf. The exact location of the orphanage is secret due to security reasons and will therefore not be open to the public.

ecently, Gabriel, the locally designed and manufactured shock absorber brand of the Control Instruments Group, together with AutoZone, hosted a golf day to raise funds for The Rhino Orphanage. The event took place at the Legend Golf & Safari Resort in Limpopo with over 100 participants. Sean Staley, Divisional Head – Gabriel commented: “The success of the event has prompted us to commit to running the event annually for another three years in aid of this worthy cause. With the high rate of rhino poaching, care needs to be taken of the rhino calves left behind.” The Rhino Orphanage is the world’s first dedicated, non-commercial centre to care for baby rhinos. Orphaned rhinos are brought to the Entabeni Safari Conservancy in the Waterberg area of Limpopo, as shockingly, a third of the slain rhinos are either pregnant cows or

The orphanage has facilities to house up to 35 baby rhinos, which are rehabilitated back into the wild by a team of conservationists. This forms a vital part of the Rhino Response Strategy National Rescue and Response network. The facility includes four high-care rooms and one intensive care chamber where sick calves receive 24-hour attention and can be treated in an incubator.

rhinos can successfully readapt to the wild.

“As they become older, we release them into larger areas, until they are about two-and-a-half to three years old, and then they are released into nature,” said Conservation Manager Arrie van Deventer. If contact with humans is limited,

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AutoForum - March 2013

NEWS FORUM

Tshwane Automotive City

- Roy Cokayne

Tshwane Automotive City, a planned joint project between the Gauteng provincial government and Tshwane, may become a special economic zone focusing exclusively on the automotive industry. At the same time, a motor manufacturer and five automotive component manufacturers are also considering establishing a manufacturing presence in SA.

hese were some of the important disclosures made at a recent IndiaSouth Africa automotive component workshop in Pretoria. Barlow Manilal, CE of the Automotive Industry Development Centre, confirmed Tshwane Automotive City was expected to attract investments in excess of R50 billion over 30 to 50 years, and may become a special economic zone. Manilal said the project extended from Rosslyn, about 30 km from Pretoria, to Wonderboom Airport and was probably one of the biggest public-private partnership programmes in the automotive industry. Sake van der Wal, Deputy Director Investment Promotion and Facilitation at Trade and Investment South Africa (Tisa) at the dti, said another motor manufacturer was considering establishing a manufacturing presence in the planned multi vehicle plant in East London. Five automotive component manufacturers were considering manufacturing locations in Gauteng, KwaZulu-Natal and Port Elizabeth. VanTHE derINTELLIGENT Wal declinedALTERNATIVE to identify any of the potential automotive component

manufacturing investors, but stressed their prospective investments were not related to the plans by another motor manufacturer to establish a manufacturing presence in South Africa. He said a decision on these investments was possible by the middle of this year. Van der Wal confirmed the automotive component manufacturers had ties with locally-based motor manufacturers, but wanted to deepen their presence in the industry. He declined to comment on the types of automotive components these companies would produce. A new greenfields 50 000 unit a year multi vehicle assembly plant in the Industrial Development Zone in East London, operated by an outsourced assembler, was first mooted at SA Automotive Week in 2009. The plan is that the plant will produce a number of different cars locally for several newer entrants to the SA market, but its total annual production would exceed the 50 000 units a year annual production threshold to qualify for incentives in terms of the new APDP. It will be the first automotive OEM plant established in South Africa in the past 40 years and will boost

job creation in the vehicle sector and automotive exports. Tembela Zweni, Executive Manager Zone Development for the East London IDZ, confirmed at SA Automotive Week in October last year that plans to establish a new greenfield multi-model vehicle manufacturing plant operated by an outsourced assembler in the IDZ were still on track. Zweni said construction of the plant was scheduled to commence in 2017 and for the plant to be fully operational by 2019. He said it would be “a multi billion facility” and create about 46 000 jobs, adding they had received strong interest from “quite a number” of vehicle brands and were continuing discussions with six vehicle brands but it was up to the IDZ to convince them the concept would work. Zweni said the facility would probably be launched in 2013 once all the agreements and financing for the facility had been finalised. “We still need time to tie up some lose ends and formalities and get the endorsement of the key stakeholders, particularly on the government side.”

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PAGE 24

NEWS FORUM

AutoForum - March 2013

Easter shock check

ith the Easter holidays just around the corner and road trips on the agenda, Monroe is encouraging all motorists to check the car they will be travelling in is free of any faults. Besides checking oil level, tyre profile depth and pressure and, of course, brakes, you should also check your shock absorbers before leaving on holiday - most importantly because worn shock absorbers are a safety risk. Shock absorbers form an integral part of a vehicle’s safety triangle: steering, stopping and stability. Most people are not even aware of the potential dangers of worn shock absorbers, or that the safety of their vehicle, its occupants and other road users is seriously compromised. Shock absorbers are mostly associated with dampening the car’s movements for ride comfort. However, they also contribute to keeping the vehicle’s tyres in contact with the road. Over time, there is a gradual wearing process, which is often not recognised by the driver. Worn out shock absorbers can have a marked negative effect on a vehicle’s safety and driver control when compared with new ones:

PAGE 26

• Increased braking distance: According to tests carried out by TÜV Rheinland, at 80 km/h on a straight road with only one driver in the car, the braking distance increases by 2.6 meters. The braking distance of a fully loaded car at 70 km/h (with a driver and three passengers) reaches 11.3 meters (Automotive Safety Centre, Milan). • Aquaplaning: With half-worn shocks, vehicle aquaplaning already starts at 109 km/h in wet weather, while if the shocks are perfectly efficient, aquaplaning will start at 125 km/h (TÜV Rheinland). • Increased tyre wear: After 9 000 km a car with 65% worn out shocks causes a 10% increase in tyre wear compared to the same car equipped with perfectly efficient shock absorbers. Premature tyre wear translates into increased replacement and running costs, but above all a major reduction in safety (research study by Monroe at the Centro Tecnico Pirelli). • Failure of ABS/ESP: Worn out shock absorbers influence the functioning of the anti-lock braking system and the electronic stability programme. • Decreased road holding: During cornering or under hard braking, the tyres will be unable to provide sufficient grip resulting in a loss of control. • Headlight dazzle: Worn out shock absorbers make the car bounce more, which makes it harder to see,

increases driver fatigue and blinds oncoming traffic. • Car sickness: Worn out shocks can be a reason for travel sickness because they are no longer able to absorb the vibration of the car body. Check shocks with these simple steps: Ensure the car has been driven recently and is on a level surface. • Press down firmly on one corner of the vehicle. • The vehicle will push down and bounce back up again. • As it bounces up again it should rise above its starting point and then settle back to the original starting point (one bounce). • If it drops below this starting point and then only rises back up to it – the vehicle’s shock more than likely will need replacing. • Repeat for each shock (each corner of the vehicle). Other things to look out for that could indicate shock wear or problems are: • Patchy tyre wear • Oil leaking from the shock • Worn rubber bushings • Dented or bent shocks • Marks on the shock piston rod

Golf's latest model is now in SA

olkswagen has finally brought what it calls the “best Golf ever” to South Africa. Launched internationally at the Paris Motor Show last September, this seventh generation Golf is around 100 kg lighter, making it up to 23% more fuel efficient. It also boasts a number of standard and optional assistance systems, added space (extra legroom in the back and 30 litres more boot capacity), and new pioneering safety systems such as the multi-collision brake system, XDS electronic differential lock, electronic parking hand brake, and many more. Saving weight is a complex task, especially in the compact class. VW points out that despite the research and development costs involved in this process being extremely high, the base price of the seventh generation Golf, which has not gone up by a single cent despite its

higher specification, is a reflection of the innovative power of this brand. The share of high-strength steels has grown from 66% to 80% compared to the Golf Mk6. The decisive advantage lies in the fact that Volkswagen has built up extensive know-how in the development and production of ultra-highstrength, hot-formed parts since the Golf Mk6 and has invested in manufacturing facilities – more, its says, than any other carmaker in the world. The share of these parts that are up to six times as strong as conventional steel parts has grown from six percent in the Golf Mk6 to 28% in the new Golf. Moreover, new advanced high-strength steels are available on the market today that did not exist when the previous model was being developed. These represent another 9% in the new model. The advantage of

these extremely strong steels, means that the finished parts made of them can be designed to be considerably thinner than before and still handle the stresses of a crash. Nearly the entire safety architecture of the new Golf consists of these steels, which effectively form the vehicle’s backbone. And of course it looks good too. Walter de Silva, Head of Design, Volkswagen AG comments : “One of the keys to the Golf’s success lies in its continuity. There are but a handful of cars in the world with a design like the Golf’s. It has been refined, tweaked and enhanced down the decades and has thereby become timeless.”

PAGE 27

NEWS FORUM

AutoForum - March 2013

Gauteng drive to attract auto sector At a recent trade and investment think tank hosted by the Gauteng Growth and Development Agency, and which ran for three days, MEC for Economic Development, Nkosiphendule Kolisile described the automotive and ICT industries as central to Gauteng’s drive to be known as The Smart Province.

he event formed part of a programme hosted by the Gauteng Business Lounge for countries participating in the African Cup of Nations, with the express purpose of exploring opportunities for trade and investment.

and Development Agency - the automotive sector continues to play a significant role in South Africa’s economy. He said it is the subject of a dedicated focus from the Gauteng Department of Economic Development.

Kolisile told delegates: “Our implementation agency, the Gauteng Growth and Development Agency, has initiated the Africa Focus Programme, which is specifically aimed at providing business and market intelligence to local firms already exporting and trading with other African countries.”

“The automotive sector faces a number of challenges, including a skills shortage due to a significant skills exodus, the quality of maths and science at school level and infrastructure at schools,” he said. “As an export-oriented industry, we are actively looking at opportunities abroad with a specific focus on Africa.”

According to Barlow Manilal, CEO of the Automotive Industry Development Centre - a subsidiary of the Gauteng Growth

MEC Kolisile wrapped up the proceedings by highlighting Gauteng as offering automotive businesses a unique value

proposition. “We have the Automotive Supplier Park, the AIDC and most importantly, a provincial government that wants you here. We recently partnered with Ford Motor Company and Nissan. How can we partner with you?”

Body repair insight

Contents 26

DPC is now Axalta Coating Systems

Software systems 26 that keep you ahead of the pac

PAGE 28

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AutoForum - March 2013

DPC is now Axalta Coating Systems At the beginning of February, the Carlyle Group completed its purchase of DuPont Performance Coatings for $4.9 billion, changing the name to Axalta Coating Systems. The new name reflects the company’s complete focus on the coatings sector and its commitment to performance excellence.

hile the name has changed, the fundamentals of the business have not. The products, technologies, services and people remain the same. Operating as an independent company, Axalta Coating Systems will build on more than 90 years of experience in the coatings industry to deliver unparalleled performance around the world.

Axalta Coating Systems. Our global scale with 35 plants and seven technology centres around the world, combined with Carlyle’s industrial focus and global network, position us well for the future.”

Charlie Shaver, the company’s Chairman and CEO, commented: “We look forward to this exciting next chapter for

Axalta Coating Systems will continue to do business as DuPont Performance Coatings for the next several months

until the new name is formally launched in the second quarter of 2013. The company’s beta website, AxaltaCoatingSystems.com, is under development and will enable visitors to navigate to sites that contain information about its products and services.

Software systems that keep you ahead of the pack

or collision and mechanical repairers, as with all sectors in the auto industry, staying ahead of the pack is a constant battle. Part of that challenge is ensuring that business standards remain high at all times and that you are always equipped with the latest tools and technology. The past twenty years in particular have seen enormous growth in technology and applications and according to CompMark Software Specialists, the evolution of business software systems that service the industry has matched this pace. The company’s flagship product - Vantage for Collision Repair, which came about 22 years ago as a DOS-based quotation programme – has grown extensively over the years, with huge input and assistance from its collision repair customer base. Currently, CompMark also offers custom-based workshop and accounting systems for the mechanical repair, auto spares, point of sale, auto

PAGE 30

glass and flat glass and even car rental environments. The company points out that one of the OSOEasy Business and Accounting System features, the Mechanical Repairs module, has also gone through various phases of development and ‘fine tuning’. This has ensured that it is now not only a package that includes major functions such as Quotations, Job Cards, Invoicing and Production

Management, but also detailed labour/job time control. Employee time can be managed and tracked in the workshop and analysed per employee and per job. The electronic Timetec system means measurement of productivity through Time and Access Control is a very cost-effective application and part of the real time, integrated management system. Linked to the comprehensive Parts Stock management facility as well as a super fast point of sale, OSOEasy provides an all-round solution to the manager who wants to stay informed and on top of his game. MD Wolfgang Rieder explains: “Moving with the times and understanding the changing nature of the customer’s business are critical for us in 2013.” For more information, you can visit the website at www.compmark.net or email sales@compmark.net.

PRO-LINE RANGE LAUNCHES IN SOUTH AFRICA 3M Automotive Aftermarket Division launched its Pro-Line range of vehicle care and repair products to a selection of customers and media at its head office in Johannesburg recently. The range has been created as a result of an internal project designed to rationalize 3M’s Automotive Aftermarket Division’s current portfolio of 717 products, down to a capable range of 184 products.

y rationalizing the number of items in the 3M AAD product portfolio and defining the product lines based on the Recommended Repair Processes, 3M have been able to improve their service and reduce any back orders, whilst also improving its customers usage through reduced costs, increased speed and improved quality. Carlo Fortugno 3M AAD Marketing Manager, explained that the products have been classified into Core, NonCore and Non-Standard products, with Core products further classified into the Pro-Line range– items included in 3M’s Standard Operating Process (SOP) and

Core Line–items that are key to 3M’s end user customers. 3M SOP charts are used for training and to promote best global practices, whilst providing repairers with a step-by-step guide, complete with details of all applicable products for use in each step of the process and cover a range of processes from Large to Small Damage Repair as well as for Dry Sanding and Paint Finishing. In his presentation Stuart Parmenter, 3M AAD Technical Manager detailed some of the products available in 3M’s Purple Abrasive range and described the reasoning behind the rationalization

within this extensive range of products in addition to some of the innovations within the Purple Clean Sanding Discs and Sheet Rolls. These include the use of cubitron TM as the abrasive mineral and laser cutting of the holes in the discs to prevent wild scratching. A wide range of 3M Health and Safety products designed to cope with the specific demands of the refinish sector in particular, was presented to the guests, highlighting 3M’s commitment to providing a complete range of products to this sector. An extensive display, allowed guests the opportunity to better acquaint themselves the products presented.

PAGE 31

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Business Forum

AutoForum - March 2013

Business insight

For every action there is an equal and opposite reaction - Colin Windell

nfortunately, the timing of this year’s Budget Speech means we are unable to analyse the impact of that on likely vehicles sales for the new financial year, but unless Minister Ghordan springs some amazingly delightful surprises, early indications are that there will not be a lot to cheer about. While the auto industry is enjoying the momentum that has carried over from last year in terms of January vehicle sales and business confidence indicators have risen by a point, there are some seriously dark clouds somewhat closer than the horizon. The Rand is losing ground on the currency crosses, Brent Crude keeps moving closer to $120 a barrel and the fact some 2 000 farmworkers have been given their marching orders following the Government’s decree raising the minimum wage to R105 a day, should sound alarm bells. Equally, the fact that the mining industry is looking to shed 14 000 jobs is cause for concern.

To every action there is an equal and opposite reaction – physics 101. The simple truth is sustainability cannot be legislated and, while we are all in favour of fair wages for a fair day’s work, making wage minimums higher than sustainability levels will provoke that opposite reaction.

12.3%, light commercials 20.0%, medium commercials 10.6%, heavy trucks 30.0% and extra heavy trucks 16.6%. Moreover, the January, 2013 export sales at 17 399 vehicles reflected an improvement of 5 794 vehicles or a gain of 49.9% compared to the 11 605 vehicles exported in January last year.

Farmers will try for equilibrium through higher prices and the knock-on effects down the line – besides pretty much negating the actual increase for farmworkers who will be giving it back via those higher prices for basic foodstuff etc – will put every cost centre under pressure, including the decision to buy a new car.

Overall, out of the total detailed (disaggregated) reported industry sales of 52 775 vehicles (excluding MercedesBenz South Africa), 76.9% or 40 568 units represented dealer sales, 16.7% represented sales to the vehicle rental industry, 3.2% to Government and 3.2% to industry corporate fleets.

Looking at where we stood at the end of January, the numbers show aggregate new vehicle sales at 55 007 units,an improvement of 6 805 vehicles or a gain of 14.1% compared to the 48 202 vehicles sold in January last year.

“In 2012 the South African market enjoyed a year of solid growth despite a slowing economy. This year growth is expected to be somewhat abated, however the prospects remain positive,” says Ford Motor Company SA’s Vice President Marketing, Sales and Service, Dean Stoneley.

All major segments recorded doubledigit year-on-year growth – new cars

Continued on page 32

PAGE 34

Colin Windell is the Editor of Fleet Magazine.

PAGE 35

AutoForum - March 2013 “The new year has certainly got off to a bumper start with surprisingly high sales,” says Malcolm Gauld, GMSA’s Vice President, Vehicle Sales Service and Marketing. “A welcome start to the year but we remain cautious about the sustainability of any high level of growth over the next 11 months. It is our view that growth will be constrained by economic conservatism through the year with demand levelling out and single digit growth the real prospect by year-end. “A key driver of sales in January was increased demand by the vehicle rental industry. Sales to this market channel were up by 51.4% over January 2012 in a marked change in the normal seasonal buying pattern as purchases were brought forward into January. We anticipate that demand in this sector will average out over the coming months.”

“The market has definitely hit the accelerator early this year, but I would hesitate to make bullish predictions before adding February sales into the analysis,” says Calvyn Hamman, Senior Vice President: Sales and Marketing at Toyota South Africa Motors. Hamman points to a well-used practice of carrying over vehicle registrations from the holiday season to the new year, making January sales look better than expected. This was compounded in January by unnaturally high sales to rental companies. No less than 8 821 units (52.6% growth over January 2012) were sold to vehicle rental companies a month after their normal peak season. Also, several vehicle manufacturers struggled to fill production and sales orders in December 2011 and January 2012 following floods in Thailand, a major supply base to local manufacturers. This past drop in sales volumes would make any comparison with the same months in 2012/2013 look unnaturally high. “Despite these influences January 2013 performed very strong. All major market segments, including passenger vehicles, exports (up by 49.9%), commercial

PAGE 36

vehicle sales and sales by dealers moved into positive territory in January,” says Hamman. “This year will see the 2012 marketing offensive and trading support continue, while vehicle buyers can expect more exciting new vehicles to arrive on local soil in the run up to the Johannesburg International Motor Show in October. “New models and a relatively low interest rate environment will boost the market, although the purchasing consideration will remain in favour of smaller vehicles and vehicles with smaller engines as the buying down trend in the passenger vehicle market continues.

around 28 000 units, with fairly strong medium and heavy truck sales and concern about the extra-heavy truck segment, where there is now some excess capacity with the commissioning of the Durban-Johannesburg pipeline and a move by Transnet to increase its share of the freight market.”

“With this in mind we expect the market to continue growing in 2013, although growth will be muted in comparison to 2012.”

TOP PERFORMING: NEW PASSENGER VEHICLES

Including estimates for Mercedes-Benz commercial vehicle sales by segment – sales of industry new light commercial vehicles, bakkies and mini buses at 13 346 units during January, 2013 reflected a massive increase of 2 226 units or 20.0% compared to the 11 120 light commercial vehicles sold during the corresponding month last year. Sales of vehicles in the medium and heavy truck segments of the industry at an estimated 700 and 1 223 units, respectively, had recorded an increase of 67 units or 10.6%, in the case of medium commercial vehicles, and a gain of 164 units or 15.5%, in the case of heavy trucks and buses, compared to the corresponding month last year. Vice President of Hino SA, Dr Casper Kruger, says the strong Japanese Yen had put pressure on pricing in the ultra-competitive local market, but this situation was now improving as the Yen weakened against the Dollar. “We expect a similar market to last year, with total sales for trucks and buses of

January 2013 Model 1. VW Polo Vivo 2. VW Polo 3. Toyota Etios 4. Ford Figo 5. Toyota Corolla 6. BMW 3-Series 7. Toyota Fortuner 8. Nissan Micra 9. Chev Cruze 10. Audi A4

Volume 4047 2790 2515 1202 1187 980 734 598 551 500

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Volume 2634 1553 1528 1351 1255 997 949 320 303

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PAGE 37

AutoForum - March 2013

The challenge of leadership & management in turbulent times

- Robert Kaiser

No one can deny the fact that we live in turbulent times on a global scale! This truth really comes home when you listen to someone like Richard Fenning, CEO of UK-based but globally represented Control Risks, a specialist consultancy serving a long list of blue chip organisations throughout the world by providing risk assessment and management advisory services.

peaking to a select audience at the University of Pretoria‘s Gordon Institute Centre for Dynamic Markets in February, Fenning provided a fascinating insight into the current economic and political environments in the world and the expected developments and effects on business going forward. “Globalisation and political change have created unprecedented complexity and volatility, making countries-and companies-harder to run than ever before, Success in 2013 requires a new

PAGE 38

style of nimble, crisis-oriented leadership”, he says. According to Fenning, turbulence causes events that organisations did not expect or plan for and have no control over, but have to respond to. This can cause an organisation to lose focus on the pursuance of its business strategy, with the concomitant negative effects in a number of respects, including profitability, efficiency and market share. As examples he mentioned a

number of cases where events such a product recalls, destruction of warehousing facilities by fire and political upheaval have had to be managed by multinational corporations, occurrences that demand immediate attention by management and can result in an organisation’s business strategy being derailed. This can lead to neglect and negative consequences in other areas, and in this manner an event could negatively impact on an organisation’s operations in its entirety. The risk of this

AF201209.FH9 Tue Feb 26 14:15:21 2013 C

happening is compounded by the interdependence of the global economy, where an event in one part of the world could influence seemingly unrelated businesses in other areas, which at first sight do not appear to have anything in common or related to that event. Such is the nature of an increasingly integrated global supply chain and the sophistication and immediacy of telecommunication which knits the globe into one arena. If one considers events and developments in various parts of the world, a clear picture emerges of how we are indeed affected by events seemingly remote from where we are. Going forward, Fenning made some interesting observations concerning a number of issues. Regarding the Eurozone, he expects the euro to â&#x20AC;&#x153;limp onâ&#x20AC;? in 2013, but pointed out that coming elections in Germany pose a challenge to the current German government to persuade voters to continue supporting the Eurozone, a perceived challenge in a country where there is a growing â&#x20AC;&#x153;why should we financially support less productive and efficient Eurozone membersâ&#x20AC;? he says. An interesting point made here is that the continuation of the Eurozone monetary unit is in the German national interest for the reason that a breaking up of the Eurozone and a reversion to national currencies would probably have the result that a German Mark would be highly valued and would result in German exports being less competitive in world markets. This is a real concern for an export-driven economy.

Page 1 Y

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How do you run a business in these turbulent times? According to Fenning, managers should not allow the implementation of their business strategies to be overshadowed or derailed by a crisis management focus caused by unexpected and uncontrollable events. There should always be a balance between resource allocation to deal with the risk management issues and the overall management and strategy in a business to ensure that it is not paralysed by risk management, but stays on course and does not neglect its core mission - neglect could give rise to other unintended negative consequences. It is a fact managers today have to deal with a whole set of challenges that 15 years ago may not have been thought of or expected. The operating environment is becoming increasingly complex and requires a flexible and dynamic approach, even in the smallest of businesses . South Africa and Africa? Huge potential going forward for growth and South African companies expanding business into Africa (did you know that South Africaâ&#x20AC;&#x2122;s 2013 GDP growth rate will exceed that of Brazil?).

Â&#x20AC;Â? Â Â&#x201A; Â?Â&#x192; Â&#x201E; Â? Â&#x2026; Â? Â&#x192;Â&#x192;Â Â? Â?Â Â?

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PAGE 39

The Control Risks 2013 Riskmap report and this, along with very interesting relevant information, can be accessed at www.controlrisks.com. Highly recommendedÂ reading!

AutoForum - March 2013

Fuel station owners – Advice in tough times ARMED TO THE TEETH

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PAGE 40

ast month, Garagesure Consultants and Acceptances – a specialist underwriter of Compass Insurance released a statement to the media regarding the increasing tough times faced by garage owners in SA. In it, they describe how the recent petrol price increase has seen petrol station owners feeling the pinch even more than consumers. As MD Leslie Mitchell commented: “A petrol retailer’s profit is fixed for every Rand of fuel sold, regardless of the fuel price. Fuel price increases do not mean that your local fuel retailer makes more money – potentially the opposite.” “When the fuel price rises by a significant margin, the R200 that bought 18 litres of fuel is now maybe only buying 16 litres. Many people will rather travel less than pay R20 more for fuel, which in turn has an effect on the volumes being sold by fuel station owners and results in lower spending in the convenience stores at the petrol station forecourts.” Mitchell explains that there is also the problem of being suddenly under-insured on the value of the fuel inventory a petrol station is holding. The price of fuel has a significant effect on the value of fuel inventory at petrol stations. For example, a petrol station with a 100 000 litre tank capacity of 95ULP would have had a fuel inventory value difference of R335 000 in January 2010 versus January 2013. This would mean that the owner of the petrol station could have been 30% under-insured for this brand of fuel – a potential disaster in the event of a fire. For petrol station owners, it is always advisable to make sure that their sums insured are accurately reflected on their policy schedules, but this can become administratively intensive when there are sometimes monthly changes to the price of fuel. Mitchell advises petrol station owners to double-check their insurer’s criteria relating to fuel price increases. “As an insurer in this niche market, we understand the impact of fuel price adjustments and would not apply average to fuel inventory, provided that the sum insured value stated on the schedule is within a 10% margin.”

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Graham Bush is one of SA’s leading retail experts, inspiring thousands of business people over the past 30 years. His relaxed style and humour delivers powerful messages through motivational talks and presentations, and he contributes to several trade magazines. After 20 years in the corporate world, Graham started ‘The Bush Kitchen...food for thought’, and often uses recipes and cooking as analogies for practical life and business skills. www.thebushkitchen.co.za

AutoForum - March 2013

Is your front page selling newspapers? - Graham Bush

International magazines spend a huge amount of money on their front cover so that the consumer chooses theirs over the competitor displayed alongside them. The cover of a journal projects the image and contents contained therein, enticing you and me to buy. The same goes for a retail business. If it is a headline that sells newspapers, and a picture of a beautiful woman that sells fashion magazines, what then is your ‘Headline’? Your store is one of many in town that the consumer can choose to shop at, so what image are you projecting to entice the prospect to enter your store because, quite frankly, you are selling what your competitor is selling!

e’ve heard it again and again: “You never get a second chance to make a first impression” and research shows us that 83% of a customer’s first impression is through sight. Therefore it is about the ‘look’. ‘The First Moment of Truth’ is another term popular with marketers. This now legendary phrase popularised by Procter & Gamble ex CEO, AG Lafley, who in a 2002 letter to shareholders defined it as the moment “when consumers stand in front of a store shelf and decide whether to buy a P&G brand, or a competing product”. The personal care and cleaning product giant strived to see the shopping and buying process from the eyes of the consumer. They used this information to maximise the effectiveness of packaging, marketing and selling their household products. Now that’s all well and good, however, if you have dirty windows, paint peeling off the exterior wall, torn flags, a filthy pavement and staff smoking at the entrance, then quite honestly it doesn’t matter how great your First Moment of Truth is, because I will not be going inside to see it. I have heard the excuses, that the council or municipality do not clean

PAGE 42

the pavement on a regular basis, or the landlord is not interested in repainting; well your customer is not interested in these excuses, buy a broom and a tin of paint and do it yourself – if you want my business, that is! Just imagine if the exterior of your store or your garage forecourt is the cleanest in town what image you are projecting to your consumers. It is rather like homeowners who take personal care of the verge outside their home, as opposed to relying on the council. Your image starts before I enter your store. As I write this article, various retailers are gearing up for the Easter season, with chocolate eggs and bunnies in the windows and entrances, yet

I saw a ‘Father Christmas’ picture on a retail window in the same period. Image can be described as the overall look of a store, both inside and outside, and the series of mental pictures and feelings it evokes within the beholder. For the retailer, developing a powerful image provides the opportunity to embody a single message, and that is to stand out from the competition and be remembered. Customers simply don’t have the time to “read” into the store, so just as your store name and brand, the title of your “book” must provide instant recognition and recall, your exterior storefront is the cover of your “book” and must project a welcoming, clear and concise image of what’s in-store.

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PAGE 43

AutoForum - March 2013

INNOVATIONS

AutoForum - March 2013

The latest automotive technology

Chevrolet debuts ‘Smart Material’

ince it introduced a fibreglass body in 1953 to its aluminium chassis for 2014, Chevrolet’s Corvette has a six-decade track record for introducing lightweight materials that improve vehicle performance. The redesigned seventh-generation sports car is the first vehicle to use a General Motors’developed lightweight shape memory alloy wire in place of a heavier motorised actuator to open and close the hatch vent that releases air from the boot. This allows the boot lid to close more easily than on the previous models. Considering there are about 200 motorised movable parts on the typical vehicle that could be replaced with lightweight smart materials, GM is looking at significant mass reduction going forward. Shape memory alloys – typically made of copper-aluminium-nickel or nickel-titanium – are smart materials that can change their shape, strength, and/or stiffness when activated by heat, stress, a magnetic field or electrical voltage. Shape memory alloys “remember” their original shape and return to it when de-activated. In the new Corvette, a shape memory alloy wire opens the hatch vent whenever the deck lid is opened, using heat from an electrical

PAGE 44

current in a similar manner to the boot lights. When activated, the wire contracts and moves a lever arm to open the vent, allowing the lid to close. Once closed, the electrical current switches off, allowing the wire to cool and return to its normal shape, which closes the vent to maintain cabin temperature. Jon Lauckner, GM’s Chief Technology Officer comments: “Smart materials like shape memory alloys offer new possibilities for many movable vehicle features. These new materials enable innovative designs and new and improved features at a lower cost than traditional motors and actuators.” Shape memory alloy also helps remove unwanted mass, which can help improve vehicle performance and fuel economy. The wire actuator used on the new Corvette is approximately 1.1 pounds (0.5 kilogramme) lighter than a conventional motorised system. “The shape memory alloy used on the new Corvette represents nearly five years of research and development work on smart materials for which GM has earned 247 patents,” said Paul Alexander, GM Researcher. “And it is just the beginning. We have many more smart material applications in the pipeline that will bring even more improvements to our vehicles going forward.”

PAGE 45

INNOVATIONS

AutoForum - March 2013

PSA's Innovation Day

VelV: the light city electric vehicle

EMP2: PSA Peugeot Citroën’s new global modular platform

Eco Hybrid: a broadly accessible hybrid solution

PAGE 46

SA Peugeot Citroën recently presented its Innovations for the Car of the Future. Guillaume Faury, Executive Vice President of Research & Development at PSA Peugeot Citroën, welcomed 100 business and political decision makers, partners and journalists to the Group’s Automotive Design Network (ADN) R&D centre in Vélizy, France for its Innovation Day. During the event, guests had the opportunity to discover several game-changing technologies developed by the group that are aimed at meeting the challenges facing the car of the future, including urbanisation, climate change, consumers’ shifting mobility choices and new ways of using vehicles. Speaking to attendees, Faury commented: “The process by which automobiles evolve is advancing very quickly in what is a profoundly changing environment. In 2012, PSA Peugeot Citroën was the European leader in fuelefficient cars, with the market’s lowest CO2 emissions. We are stepping up our innovation here at PSA Peugeot Citroën to meet the major challenges of tomorrow’s mobility. Today, we will be showing you pioneering solutions for vehicles that respond to new customer expectations in an ever-more environmentally friendly way.” One of the highlights of the day was the Group’s world-premiere presentation of a revolutionary technology called Hybrid Air, a petrol and compressed air fullhybrid solution.This breakthrough technology, which combines a petrol engine and compressed air for energy storage, is seen as representing a key step towards the 2l/100 km car by 2020. Other brand new solutions available as from 2013 on Peugeot and Citroën brand vehicles to meet emerging expectations were also presented. Participants were treated to a preview of the Group’s new global platform, Efficient Modular Platform 2 (EMP2). This new

generation platform provides effective solutions in terms of modularity, equipment and carbon reduction. Another of these is selective catalytic reduction (SCR) which will be introduced this year and is expected to maintain its leadership in diesel engine efficiency and lower NOx emissions to the level of petrol engines. Because it is positioned upstream from the Diesel Particulate Filter (DPF) with additive, this unique technology makes it possible to both eliminate NOx and reduce fuel consumption (by 2 to 4% from Euro 5 levels). Lastly, innovations that set the stage for the car of the future were also on display, including: Eco Hybrid: a broadly accessible hybrid solution - the use of this technology on petrol and diesel vehicles in the B, C and D segments will reduce CO2 emissions by 15g and cut fuel consumption by up to 15%; Dedicated Exhaust Gas Recirculation System (EGR): an innovative solution to optimise petrol engine fuel consumption - this innovation is designed to improve petrol engine efficiency and deliver significant fuel savings; Hydole: a mainly electric hybrid demonstrator - the Group and its partners have developed a plug-in hybrid demonstrator that puts peace of mind into the EV driving experience to test the potential uses of the car of the future and meet customer expectations for driving range, comfort and affordability. And finally, VelV: the light city electric vehicle - 60% of trips within cities are made in individual cars, with a resulting impact on CO2 emissions. VelV is a light electric vehicle project designed to meet city and suburban driving needs with a record power consumption level of just 85 Wh/km travelled.

Dedicated Exhaust Gas Recirculation System (EGR): an innovative solution to optimise petrol engine fuel consumption

20 Milllion EPS units for Nexteer Global automotive supplier Nexteer Automotive has shipped its 20 millionth electric power steering (EPS) unit. This, it says, means a saving of almost 8 billion litres of fuel globally since it sold its first EPS unit in 1999. The 20 millionth EPS unit was produced at Nexteer’s manufacturing plant in Tychy, Poland. “As fuel economy standards have become increasingly more stringent, Nexteer’s expanding global footprint has helped us meet the growing demand for electronic power steering systems around the world, which in turn has allowed us to reach this milestone quickly,” said Laurent Bresson, President and CEO of Nexteer. “We have the vehicle system expertise and in-house electronics capabilities to personalise EPS systems for each automaker, making Nexteer a leading EPS supplier globally.” The company announced plans late last year for a $70 million investment and 325 new jobs at its world headquarters in Saginaw as a result of a major EPS contract with a North American automaker. This announcement was on the heels of more than $220 million invested globally in 2011 to expand and updates its EPS manufacturing capacity. This year, the company is expected to launch single pinion EPS in Brazil and China and will launch brush column EPS for emerging markets. While these markets have traditionally used hydraulic steering systems, they are adopting the EPS technology to improve fuel economy.

PAGE 47

AutoForum - March 2013

The power of MHE in trucking productivity

- Dave Scott

A truck is a working machine. From a truck sales viewpoint, customers buy trucks for payload - but in actual fact a truck is an investment for work output expressed as the number of payload units, cubes-kilograms-litres, moved over a distance within time frames. It is simply a combination of payload multiplied by distance. A 10t payload transported over 100km is thus 1000t-km. A Key Performance Indicator (KPI) in trucking would be tracking monthly ton/kilometres achieved, per truck and for the whole fleet. That’s why downtime is so costly and why truck spare parts are so critical in keeping wheels rolling for a high ton/kilometre result.

o what is MHE? It is material handling equipment and MHE – ranging from a taut-liner cargo body up to hook-lift demountable systems – has a dramatic effect on trucking productivity. A curtain-side, taut-liner cargo body allows access to cargo and flexible deliveries instead of being locking into a strict unloading sequence that a closed van body imposes where a delay at one customer impacts on the entire day and logistical chain.

MHE impacts on GVM. This means a truck may require a higher GVM (equates to a higher price) when equipped with MHE than a truck without this equipment. Here is an example of a truck offering an 8-ton payload where at 13,5t GVM it is not equipped with a hydraulic crane and compared to a unit with a crane, but requiring a higher GVM to accommodate both crane and payload.

Typical Mass Figures

13,5t GVM truck

15t GVM truck & 6-ton/metre crane

Chassis cab tare

4 200 kg

4 500 kg

Truck body

1 200kg

Payload

8 000kg

6 ton/metre crane

nil

750kg

Fuel & crew

300kg

Total

13 700 kg

14 750 kg

Permissible rating – V

13 500 kg

15 000 kg This Western Star rock dumper is a prime example of really tough, welldesigned MHE. After two years of quarry work the HARDOX tipping bin does not even have a dent for another two years operation

PAGE 48

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.

So the payback for the investment in extra GVM and crane has to be in swift loading/unloading and more ton/ kilometers. Interestingly, the trend for charging out a hydraulic crane is separated from the truck in terms of how much lifting the crane does that is measured by an electronic load-cell. The load-cell also determines any crane abuse, such as trying to lift above its rated capacity and the hire fee is adjusted accordingly. As MHE affects vehicle tare mass, this is a lifetime penalty if over-designed cheap-quality material is used. At the outset, the construction of a cargo body, or containers, should be set to last the life of the truck, and to deliver the lowest possible cost of ownership. This means choosing material that will resist abnormal wear from cargo that is for example, abrasive, corrosive, unstable, or causing impact damage. For example, DOMEX is very high-tensile Swedish steel with a considerable saving on mass, while offering body strength – the payback is in increased payload combined with durability in standard cargo bodies. HARDOX wear plate, from SSAB Oxelösund, is an abrasion resistant plate, intended for applications requiring an extremely high abrasion resistance. Tipper bodies constructed from HARDOX will last years in a rock quarry without even showing a dent – no repair downtime required.

Duty-cycles, time, and hydraulic power Duty-cycle has also been described as job-intensity. The general trend in road transport is to measure vehicle utilisation in terms of distance covered for a specific time frame. Trucks relying on hydraulically-powered MHE for work output should be measured on the basis of hours worked and fuel consumed, not on distance covered. This is particularly true for high duty-cycle operations such as refuse compactors, tippers, skip loaders, demountable cargo bodies and concrete mixer units. An hour-meter is an essential tool to be fitted to trucks that work with MHE to determine service intervals. The duty cycle imposed on MHE needs essential information for selecting correct equipment: • How many kilograms / transport units will be handled per hour or shift? • What is the time frame of a loading / unloading cycle? • How many shifts will the vehicle work per day? • Will the vehicle handle only its own cargo or also work for other vehicles in the group? • What is the ambient temperature of operation and seasonal variances?

Time - critical element of MHE systems A tipper hoist mechanism, 30 seconds slower on material discharge, loses 15 productive minutes each day, where 30 tips per day are being done over a short distance – this could easily equate to a load, or more, lost per day.

Continued on page 46

COMMERCIAL VEHICLES

AutoForum - March 2013

That’s why rock-dumper tippers are often fitted with a double-acting hoist mechanism. Time saved in powering down the hoist, instead of waiting for it to lower via gravity feed, more than compensates for the extra investment in expensive hydraulic equipment. Modern high-pressure hydraulic systems are light in mass and operate fast. They do rely on high-tech seals and attention to in-line filters. Low-pressure hydraulic systems rely on fluid volume – they operate slowly, and are heavy in mass while occupying more space within the chassis rails.

Hydraulic partners – PowerTake-off (PTO) and pump The PTO is at the heart of the system and needs careful selection for many specialised MHE applications. Motive power for hydraulic fluid is usually a PTO and pump combination. The combined PTO / pump unit does not require an inter-connecting prop shaft and is the favoured type of equipment. Sometimes the size of the components does not allow for a close-coupled PTO / pump, and the two units will be separately fitted into the truck chassis. The most important question is whether the PTO must operate with the vehicle on the move or in static position.

Height – centre of gravity – stability The height of the load deck on a truck must be as low as possible for any MHE application. This is even more critical when the body is being tipped, or moved off the vehicle. When the cargo is being discharged, or body dismounted, the stability of the truck is affected as it reaches through the height of MHE operations. Even the simple process of loading a platform-bodied truck is much harder, and requires more work when the platform is higher than it should be. The work that a truck-mounted crane performs is relevant to the size and unladen mass of the truck carrying the crane. A crane manufacturer will use a stability factor of 1,4 within the 180 0 working radius of the crane behind the truck cab, and they will not permit the crane to work over the cab.

PAGE 50

A crane is also becomes de-rated as it goes through height and reach. A 6-ton metre crane lifts 6 tons at one metre radius, and only 1 ton at a 6-metre radius. There are useful computer software programs employed by reputable crane suppliers that offer immediate information on vehicle selection by GVM in combination with a crane or MHE.

MHE interface with other logistics equipment A truck and MHE are part of the logistical chain. Don’t apply MHE in isolation of the factors that influence the interface of the vehicle with other equipment or systems. • Does the capacity of a forklift truck, or front-end loader match the capacity of the truck? • Are loading bays at the right height? • Are there any dimensional limitations imposed at delivery points that can reduce the effectiveness of new MHE?

MHE and human factor’s The reduction of vehicle crews is a benefit of MHE. People cannot work as consistently as hydraulically powered MHE. Measuring the performance of MHE is easier than that of each person involved in material handling: • It starts with asking how many people are involved in materials handling and can the headcount be reduced?

• Well-trained MHE operators also reduce the loss of man-hours due to back-strains, ruptures, and injured hands and feet that are associated with antiquated materials handling methods. • What is the level of stock damage, or goods returned, due to handling procedures that do not incorporate MHE? Would MHE minimise the losses associated with human handling of the cargo? MHE systems also offer the opportunity of introducing containerised handling methods to justify the investment in such equipment. This does not let people come into contact with the goods that cause stock shrinkage.

Conclusion An 8,5t GVM medium truck equipped with appropriated MHE can do the work of a much larger 4 X 2 heavy truck at 12t GVM, providing the rate of work is increased by reducing the handling time of goods in loading and unloading. An accepted standard of financial performance is ROA – return on assets employed. ROA is an appropriate ratio of success for fleet management, as it takes into account the size and value of a fleet to get the job done. This is where material-handling equipment (MHE), can reduce fleet size to improve ROA. MHE presents an opportunity to keep on warming rubber on the road.

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PAGE 51

COMMERCIAL VEHICLES

AutoForum - March 2013

UD Trucks rub their crystal ball You have to hand it to UD Trucks Southern Africa. They try hard to be apparently ‘transparent’ at their annual press bash which peers at past performance and the year ahead. UD Trucks is taking strain with ‘Big Daddy Volvo AB’ looking over their shoulders and applying group components. Among the rank and file it seems that ‘if it is not from Gothenburg, then it is not from heaven’. The UD Cabstar is no longer itself after the introduction of Euro ΙΙ exhaust emission standards as the 6-in-line turbo replacement is said to be a thirsty beast – UD sales in medium trucks are declining. But there is a basic honesty about the company that one has to admire as they shared their values and view of the future.

PAGE 52

MCV HCV ExHCV BUS TOTAL

- Dave Scott

2012

2013 FORECAST

CHANGE

9365

10100

7.8%

4945

5250

6.1%

11894

11614

-2.4%

1092

1150

5.3%

27296

28114

3.0%

“UD Trucks Southern Africa has expanded its footprint to now include more than 60 dealers in the southern African region...”

he interesting fact is that UD see a dip in extra-heavy sales which levelled out in 2012 over 2011 by 1,2%. The UD Trucks view is for growth in MCV and HCV, where they will not be launching new product during 2013. UD Trucks Southern Africa claim the position as the country’s top truck exporter, for 23% of the market share with a total of 245 units exported into Africa during 2012. Last year, total sales in the export sector grew by a significant 32.9% to 1 065 units when compared to that of 2011. UD Trucks Southern Africa has expanded its footprint to now include more than 60 dealers in the southern African region, including Botswana, Burundi, Democratic Republic of Congo, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

But the trouble in Africa is ‘grey market’ imports – the market is flooded with ‘cheap’ used trucks from everywhere and new truck sales struggle for a place in the sun. And UD Trucks are not into buses which at 152 units took 14% of the total export market of 1065 trucks and buses – that means only 913 trucks were exported. As optimistic as UD Trucks may be, selling into Africa against the grey market is a massive challenge. Jacques Carelse, UD Trucks Southern Africa Managing Director, points out the importance of training at UD Trucks. Over the past three years, it has invested more than R9 million in the training of staff and members of the community. The company is currently training 180 students in a variety of fields, including diesel mechanics, sales and parts consultants, service advisors, industrial and mechanical engineering, as well as

a number of experiential learners in HR, marketing, finance and IT. UD Trucks also offers a unique training initiative for disabled learners, with the new graduates gaining a National Certificate in Manufacturing, Engineering and Related Industries. All truck OEMs talk about ‘being close to the customer’ and ‘customer-centricity’ but this is only achievable through skilled, knowledgeable people. Training is a lip-service item among many OEMs and UD Trucks Southern Africa has an answer to a difficult year in the way they prepare UD people for a different future. After all, consistent advantage lies in loyal, qualified staff and not product or price. Customer-centricity is a personal interface experience.

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PAGE 53

COMMERCIAL VEHICLES

AutoForum - March 2013

Upgrade your fleet management system and save in 2013 - Kirsty Chadwick

ll businesses face the same challenges: maximising productivity while cutting down on costs, without compromising on quality of delivery and service. More fleet managers, particularly managers of smaller fleets, are starting to realise the important role that technology plays in this. New generation fleet management systems can do far more than their predecessors could, and at a lower price. If you haven’t invested in an up-to-date system yet, here’s why you should seriously consider it:

1. Fleet maintenance Fleet maintenance costs can add up very quickly. However, neglecting fleet maintenance can end up being an even greater expense in the long run, as vehicles that aren’t well maintained pose a bigger accident risk. A recent SA SQAS (South African Safety and Quality Assessment System) audit found that 43% of accidents on the Johannesburg to Durban N3 highway, a major transport route, involved single heavy vehicles. These accidents result in litigation, driver injury, damage to vehicles and higher insurance premiums. Today’s fleet management systems don’t only send the fleet manager automated reminders to perform routine maintenance, they also remind drivers, who are given their own login details and PINs to perform pre- and post-journey maintenance checks on the vehicle. Driver awareness can be increased as

PAGE 54

they are given not only actual examples of the wear and tear that impacts on vehicle performance, but also the potential dangers to be aware of on the road prior to leaving on a trip, via on-board systems. Training drivers on increased awareness prevents dependency on fleet reporting systems and emphasises the information from these systems for better driver understanding of the information provided.

2. Safety training Next to vehicle maintenance, ongoing safety training is the best thing you can do to reduce accident rates and, in so doing, reducing lost productivity due to damage repair and driver injury. The World Health Organisation points out that over 90% of the world’s fatalities on the roads occur in low-income and middle-income countries like South Africa, where close to half of all road accidents involve heavy vehicles. Fatigue is the most common cause of heavy vehicle accidents, but in countries like these, low literacy levels combined with a mobile workforce make effective safety training a challenge. On-board digital training answers this problem, while also giving drivers access to visual prompts, like reminders on how to manage fatigue, which are very effective when complemented by more comprehensive fatigue management training. At the same time, an up-to-date fleet management system can monitor the driver and feed back information on braking,

response time and stops, which lets the fleet manager assess drivers frequently and determine whether they need further training.

3. Fuel costs Fuel consumption is one cost that can’t be avoided in the fleet industry. It can, however, be managed. Speeding, hard acceleration and idling all increase fuel consumption, so keeping track of your drivers and training them on fuel conservation is essential. Many drivers will idle while eating lunch or waiting in a queue, which accumulates to a massive cost in wasted fuel. A fleet management solution can monitor your drivers and give you real-time information as well as comprehensive reports after a trip. This information can help identify areas of high fleet costs, but with well designed electronic training DVDs, drivers can be shown how this impacts on the overall cost of the vehicle and ways to change their bad habits through simple roleplaying examples. Fleet management systems provide a fleet manager with valuable information that can be used to highlight risks and problems areas within a fleet. Changing the behaviour of the drivers based on this information is often challenging, but with tailored digital learning programs, drivers can have easy access to training, no matter where or when they are on the road via a multitude of delivery methods.

Kirsty Chadwick is the founder of e-learning design and development company The Training Room Online. She has spent almost two decades in the field of education, training people across three continents.

MSS UD FEB 2013 03

How efficient is your truck?

Product shown in photograph is for illustration purposes only, and is subject to stock availability.

Fuel consumption and your truckâ&#x20AC;&#x2122;s payload ability are playing an increasingly vital role in the success of any transport business. UD Trucks is therefore continually partnering with customers to fi nd new ways of making their fl eets more economical, appropriate and effi cient. And it all starts with choosing the right truck for the job at hand. Contact your nearest UD Trucks dealership to fi nd the right UD for you.

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www.facebook.com/udtrucks

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Customer Care and 24 Hour Roadside Assist 0800 008 800 For product queries or to locate your nearest dealer, go to www.udtrucks.co.za

PAGE 55

COMMERCIAL VEHICLES

AutoForum - March 2013

Improving fuel economy for trucks

erco recently introduced aerodynamic side skirts to help save fuel for their semi-trailers. The accessory was developed by Freightwing in the US and, according to its creators, not only helps reduce fuel usage, but also carbon dioxide emissions. Serco reports that fleets typically notice a 3 to 5% improvement, depending upon their application and driving environment. The accessory works by

PAGE 56

reducing wind drag under the trailer and is particularly suitable for long distance transport. Managing Director, Clinton Holcroft, explains that the side skirts are unique in their use of lightweight flexible plastic panels that are resilient in the event of contact with fixed objects. The panels also have a smooth finish providing an ideal surface for branding. “The side skirt concept is used in the United States where fuel savings of

7.45% were achieved during independent testing. The fuel economy improvements from side skirting’s for trailers have been well documented, but the second part of the equation is these things must hold up to local operating conditions. The under body skirts are designed to bend and bounce back from minor collisions. Flexibility is important because the lower you get to the ground, the more fuel you can save”.

Quality products at competitive prices HGETP-4500 TWO POST LIFT BASE FREE + Capacity 4500kg + 220v single phase + Arms lock automatically when raised + Telescopically adjustable pads to accommodate most vehicles + 3 stage front arms to accommodate all vehicles + Mechanical locks for safety + Automatic stop with limit switch + Low roof limit switch + Overload protection included HGETP-6800 TWO POST LIFT BASE FREE + Capacity 6800kg + 220v single phase + Arms lock automatically when raised + Telescopically adjustable pads to accommodate most vehicles + 3 stage front arms to accommodate all vehicles + Mechanical locks for safety + Automatic stop with limit switch + Low roof limit switch + Overload protection included + Suitable for extra long and heavy vehicles

EE-40D TWO POST LIFT WITH BASE + Capacity 4000kg + 220v single phase + Arms lock automatically when raised + Telescopically adjustable pads to accommodate most vehicles + Mechanical locks for safety + Automatic stop with limit switch + Overload protection included

HGEU-D40B SCISSOR LIFT FOR WHEEL ALIGNMENT + Capacity 4000kg + 220v single phase + Above ground installation + Recess for turntables included + Rear wheel slip plates included + 2000 kg auxilliary jack included + Overload protection included + Platform 5m for extra long vehicles + Ideally suited for 3D wheel aligners HGELL4500 SCISSOR LOW LEVEL LIFT + Capacity 4500kg + 220v single phase + Mechanical locks for safety + Overload protection included + 2 hydraulic cylinders for extra strength + Ideally suited for fitment centres

EURZ31 FOUR POST LIFT + Capacity 4200kg + 380v three phase + Pneumatic and mechanical locks for safety + Electrical circuit automatically control level + Automatic stop with limit switch + Overload protection included

786 Michael Brink / Nico Smith Street, Villieria, Pretoria // Tel: 012 330 0540 // Fax: 012 330 0860 // Email: info@hge.co.za // Website: www.hge.co.za

PAGE 57

Mark: 082 456 1081 // Wayne 082 445 1166 // Rhyne 082 444 5005

AutoForum - March 2013

SHOW TIME

Show Time

SHOW TIME

AfriMold 2013 The 4th annual staging of AfriMold, the manufacturing trade fair and conference for the design, precision engineering and machining, tooling, tool making, production and application development sectors will take place from 4-6 June, at the NASREC Exhibition Centre in Johannesburg.

his represents an earlier staging than in the past. As MD and Organiser Ron MacLarty, explains: “Moving AfriMold to June every year will increase opportunities for exhibitors to meet customers face-to-face, and allow more time for exhibitors to convert leads into business before the summer shut-down. The new venue, NASREC, is also geared for industrial expos and has the experience and facilities to accommodate AfriMold’s particular needs.”

South Africa (TASA), which seeks to provide a platform for companies to improve their capabilities in areas of design, tooling and manufactured components for the local automotive OEMs. The conference brings together all players in the industry across diverse sectors from foundry, plastics and metal forming through the relevant institutes and associations, to collectively respond to market needs and ensure the viability of the SA manufacturing base.

MacLarty adds: “It was clear at AfriMold 2012 that our TDM industry is fired up and committed to doing whatever is necessary to not only stake its claim to the billions of Dollars of tooling that is currently being produced overseas and imported into South Africa, but also to attract foreign business to our shores as it becomes more internationally competitive.”

AfriMold has also announced their Conference Roadmap to address the needs of the National Association of Automotive Component Manufacturers (NAACAM) via technology transfer from local and international best practice in the highly competitive vehicle market.

The event is underpinned by a close association with the Toolmaking Association of

PAGE 58

For more information on exhibiting at and participating in AfriMold 2013, contact Terri Bernstein on +27 83 635 3539 or visit www.afrimold.co.za.

SPECIAL OFFER Hospitality package available exclusively for AutoForum readers Please contact us asap on 011 466 3733 for details.

PAGE 59

SHOW TIME

AutoForum - March 2013

Gauteng Motor Show all set for June

he Gauteng Motor Show – which will also be featuring the Atomic Junkies Adrenalin Fest - will take place from 1-2 June at the Zwartkops Raceway in Centurion. One of the highlights of this year’s event will be the Turtle Wax Show & Shine, which will feature a range of unique cars, and its polishing power, as well as its new product range. The 2013 Gauteng Motor Show promises visitors the opportunity to stock up on all the “must have” products and accessories. For more information visit www.gautengmotorshow.co.za and like their Facebook page www.facebook.com/gautengmotorshow

PAGE 60

Aftermarket place AutoForum - March 2013

AutoForum - March 2013

New tungsten electrode Afrox announced recently that it has become to the first SA company to introduce a new radiation-free TIG tungsten electrode. It explains that the new product offers safer, more economical and more efficient welding than any other TIG tungsten electrode currently on the market.

AutoKraft 260 PSI Air Compressor AutoZone has announced that its AutoKraft brand is retailing a 12 volt 2-in-1 260 psi air compressor. The product works off the electricity from the car’s cigarette lighter and comes with three fittings for car tyres, motorcycles, motorcross and bicycles and includes a pressure gauge. The retail price is R149-99. According to AutoZone, the compressor is ideally suited to uses such as deflating tyres for 4x4 use, inflating a spare tyre or simply keeping a check on tyre pressure. Technical staff are available at all branches to assist with queries relating to AutoZone products and technical queries can be answered seven days a week from 7am to 7pm.

According to the company’s Ferdie Pretorius, the new electrodes, which are imported from Wolfram Industries in Germany, offer several advantages over existing products, including rapid ignition and superior welding results across a range of applications. “They offer absolutely reliable arc-striking on any weld metal, a low burn-off rate and the highest quality of arc. The arc remains stable at all times, without any flickering or movement. Significant power consumption reductions are already being achieved by customers, along with prolonged service life, reduced setup costs and gas consumption reductions of up to 50%, when used in combination with the correct accessories. Results are 100% reproducible. The tungsten electrodes are environmentally friendly, owing to significantly lower material consumption.” He continues that the level of impurities contained in these electrodes is less than 0.2%, which exceeds the requirements of ISO 6848:2004, while surfaces are ground and cleaned to a higher standard than those specified in AWS/ISO.

For more information or to locate the nearest store contact AutoZone on toll free: 0861 122 111, visit their website www. autozone.co.za or on the mobi site http://autozonesa.mobi. Product code: FED.AT794

Complete Victor Reinz Set for the Toyota Hybrids Dana announced that it is already equipping two hybrid vehicles with top-quality Victor Reinz sealing technology. From now on, complete gasket sets will be available on the replacement parts market for the Toyota hybrid-drive models Auris and Prius, proving the company’s sealing competence in sustainable engine concepts. The Auris and Prius hybrids are equipped with a 1.8 litre VVT-i petrol engine (2ZR-FXE) with an output of 73 kW (99 hp). The range of replacement parts includes the following Victor Reinz components: MLS cylinder-head gasket (3-layer); Cylinder head bolts; Valve cover gasket; Valve stem seal; Intake seals; and Oil seals. As Erwin Widmann explains: “Hybrid drive technology and Victor Reinz sealing know-how make perfect synergy. The aim was to deliver the optimum sealing technology for engine repair work in order to ensure the Toyota hybrids’ outstanding emission values.”

PAGE 62

Aftermarket place AutoForum - March 2013

AutoForum - March 2013

New app simplifies mileage registration TomTom has launched a new app making it easier for drivers to keep an accurate log of their trips using their smartphones. The new WEBFLEET Logbook app for Android and iPhone helps drivers and businesses reduce mileage claim administration and create reliable logs for tax compliance. A driver simply selects whether a journey is for business, private or commuting purposes, validating journey information on his mobile device. The app works in combination with the in-vehicle TomTom’s LINK tracking device that reports the trip information. Company trip records are simultaneously updated in TomTom’s WEBFLEET fleet management system. By fulfilling their obligations using their mobile device – before or after journeys – drivers can reduce the laborious paperwork traditionally associated with mileage claims. The WEBFLEET Logbook app enables additional information to be added by the driver, including the specific purpose of the journey and customer contact details. The intelligent app also learns from previous driver journeys, automatically suggesting trip information for faster and easier logbook handling. In addition, employees can register themselves as the drivers of specific vehicles allowing fleet managers to identify exactly who is driving, where and at what time, if proof is needed.

Save energy with HF production tools With the focus increasingly on energy efficiency and rising power costs forcing industry to cut energy usage wherever possible, efficient tools are becoming part of the solution. With production tools necessary for efficient grinding and cutting operations, air tools and conventional electric power tools are not the most productive applications. At the same time, compressors create huge amounts of energy that is simply lost, and are an expensive option. According to BSE Distributors, however, changing over to high frequency tools is the answer. They list reduced operator fatigue and costs, reduced noise and increased productivity, as well as up to 15 times less energy consumption as highlights. The company points to the fact that brake hub and wheel hub casting manufacturers already extensively use HF and that there has also recently been a move within the engine block manufacturers from air to HF. The company also cites research from Europe that found there was a payback period of just 120 working days for a 12X HF grinder installation on energy costs alone. For more information call 011 452 9688 or email adam@bsedistributors.co.za.

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AUTO ELECTRICAL Auto Cosmos - Electrolog

Electronic Parts (Electrical) Catalogue

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086 000 3227

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011 741 3600

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AutoElectrical Components & Accessories

021 505 4000

Parts Incorporated Africa

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