Automobil November 2016 by Future Publishing

AINING

AL CI

SPE

NOVEMBER 2016

CUS ON

LOOKING AHEAD Will petrol MIWA IN and diesel PERSPECTIVE

survive? Benefitting from consumer trends

AUTOMECHANIKA FRANKFURT

New era for the aftermarket NAZA: Putting the number plate first RMI UPDATE: RMI TEES UP AT ULP GOLF DAY; MAXIMISING WORKSHOP PROFITABILITY; www.automobil.co.za PARTINFORM WOWS LADYBRAND; CELEBRATING SA’S HERITAGE; COMPONENTS IN THE SPOTLIGHT; ADAPTING TO CHANGE; MAKE SURE YOU’RE LEGALLY COVERED

NOVEMBER 2016

South Africa, as a succession of motor industry executives have attested, has precious few investment advantages beyond the APDP â&#x20AC;&#x201C; which is why it is vital that the programme continues. David Furlonger reports

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22 -NOVEMBER NOVEMBER 2014 2016

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CONTENTS – NOVEMBER 2016 COLUMNS 5 Driver’s Seat: Jakkie Oliver, CEO of the RMI 7 Editor’s Letter: Wynter Murdoch 9 Hot Stuff: New product showcase 64 Frequently Asked Questions: Answers from experts 66 Tailpiece UPDATES 12 News Editor: Wynter Murdoch wynter@thefuture.co.za

Putting the number plate first

RMI review

Sub-editor: Peggy Lendrum peggy@thefuture.co.za Design and layout: Heinz Bawa heinz@thefuture.co.za Reporters: Ryan de Smidt ryan@thefuture.co.za

P20

P38

Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za Future Publishing (Pty) Ltd 247 Jan Smuts Avenue, Dunkeld West, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 327-6107 RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Shamika Singh, Danelle Van Der Merwe, Marwaan Davids, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman

P52

Automobil is the official journal of the Retail Motor Industry Organisation (RMI) which hosts 14 constituent associations: ACRA (component remanufacturers); ERA (engine re-builders and automotive engineers); MDA (motorcycle, scooter, quad and jet-ski/outboard engine dealers); MIMA (Motor Industry Manufacturers’ Association); MIWA (the full spectrum of workshop operators); MPEA (wholesale and retail part dealers); NADA (new and used car and truck dealers); NAZA (number plate association); VTA (vehicle testing); SADFIA (diesel pumproom operators); SAPRA (Fuel resellers, convenience store and car wash operators); SAMBRA (collision repairers and automotive refinishers); SAVABA (vehicle body builders) and TDAFA (tyre dealers and fitment centres).

Why the APDP is necessary

Reaching agreement

Let there be light

Toyota’s winning ways

Getting it right

Focusing the effort

50 54

Automobil is published by Future Publishing (Pty) Ltd and produced for the Retail Motor Industry Organisation. Opinions expressed in Automobil are not necessarily those of the publishers or the Retail Motor Industry Organisation. Permission to republish any article or image or part thereof must be obtained in writing from the publisher. © Future Publishing (Pty) Ltd.

South Africa, as a succession of motor industry executives have attested, has precious few investment advantages beyond the APDP How to bring your feelings to the negotiation table and use them to your advantage The automotive light bulb has evolved over time to become much more than a simple piece of wire Winning – it’s a habit. And Toyota is firmly back to its winning ways in the Kinsey Report How Partinform trains learners to use good quality replacement parts

One of the main aims of the AIDC is to explore solutions focused on overcoming skills shortages

Applying the skills advantage

For dealerships to deliver consistently high levels of service there needs to be a common training process in place

Skills development and B-BBEE points

Recent amendments to BEE codes make the up-skilling of staff members a way to boost your company’s B-BBEE rating for maximum points

Beginning with the end in mind

Garnishee orders – the way forward

Strikes and dismissals

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

www.automobil.co.za

Automechanika heralds aftermarket changes

Connected cars take centre stage at the world’s leading trade fair

FEATURES

Publisher: Richard Lendrum richard@thefuture.co.za Production: Mabel Ramafoko mabel@thefuture.co.za

RMI tees up at ULP Golf Day; Maximising workshop profitability; Partinform wows Ladybrand; Celebrating SA’s heritage; Components in the spotlight; Adapting to change; Make sure you’re legally covered

COVER STORY 20

Reuben Van Niekerk reuben@thefuture.co.za

Introduction of a national standard for non-cloneable number plates is high on the list of priorities at NAZA, the Number Plate Association of South Africa

If you’re aiming to create a saleable business, heed the words of Pieter Scholtz, a leading business and executive coach The constitutional court recently added procedural guards designed to offer protection to people who agree to be served with Emoluments Attachment Orders. While disciplinary action can be taken against employees who participate in either protected or unprotected strikes, there are differences between the two that need to be taken into consideration

NOVEMBER 2016 -

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

The RMI has represented the retail motor industry and its members for more than 100 years. With more than 7 500 member businesses, our unity is our strength. RMI representation at often volatile and disruptive centralised wage negotiations. Professional industrial relations advice by expert specialists, ensuring procedural and substantive fairness when disciplining staff. Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses. Chairing of disciplinary hearings and AUTOMATIC entry and representation at the CCMA, DRC and Labour Court. Representation at various MIBCO and Industry-related Boards and committee structures.

Affiliation to reputable organisations recognised by Government, big business, consumers and relevant stakeholders like Business Unity SA (BUSA). Protection against one-sided legislative changes or new laws and regulations. Exceptional CPA support and member assistance during defence cases at the National Consumer Commission (NCC) and the Motor Industry Ombudsman of South Africa (MIOSA). Facilitation of a business-to-business complaint where both parties are RMI members, with a complaint resolution rate in excess of 95%. Quality and Standards function â&#x20AC;&#x201C; representing the retail industry at various South African Bureau of Standards (SABS) committees and working groups. Representation at the National Regulator for Compulsory Specifications (NRCS), defending our industry when compulsory specifications and standards are compromised.

The informative Automobil magazine and weekly web letters that facilitate two-way communication and create consumer and industry awareness. The RMI is regularly invited to comment on industry topics by both print and broadcast media, and participates in and hosts numerous conventions and shows. Associational accreditation ensures ongoing development and implementation of commercial value propositions specific to the association. Training needs and representation via merSETA and W&RSETA. We actively drive industry-wide training and apprenticeship issues through our position on the merSETA Board and our involvement with the Technica manuals. Representation at the Moto Health Care Fund, Industry Provident Funds and the Sick, Accident and Maternity Pay Fund. The RMI offers industry-specific products like RMI4BEE / RMI4LAW / RMI4OHS /RMI4SURE.

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

4 NOVEMBER 2016

www.automobil.co.za

DRIVER’S SEAT

Hard bargaining By the time the next issue of Automobil is published, the RMI sincerely hopes that a negotiated settlement on wages and substantive conditions – designed to enhance and protect the retail motor industry over the next three years – will have been reached. The Organisation’s CEO, Jakkie Olivier, explains

t would have been ideal that, at the time of writing this month’s Driver’s Seat (mid-October), to have had an agreement on wages and substantive conditions in the retail motor industry implemented and gazetted. Regrettably, history has repeated itself and the threat of industrial action in the Motor Industry Bargaining Council (MIBCO) arena still hangs over us due to protracted and never-ending negotiations with NUMSA. For at least the past 12 years, the question during and after every negotiating session remains the same: Is collective bargaining still relevant and appropriate in an everchanging industry where businesses have to pro-actively adapt and change to secure future survival and sustainability? Against the accepted principle that business organisations and trade unions are inherently different in terms of their mandate, objectives and desired outcomes, one cannot ignore the reality that, somehow, both parties need to accept that diversity, economic growth, political stability (or instability) and many more external factors play a critical role in what is possible during collective bargaining processes. To be in negotiations, hearing the same arguments and motivations is simply counter-productive and a breeding ground for ongoing conflict and poor relationship building. It also promises dire consequences for business, labour and the country as a whole.

In our negotiations – which officially commenced in April – the main areas of concern are three-fold: • Unrealistic high wage and wage-related demands (initially 20% across the board for all classes of employees and currently 9% in year one); • The grouping of big business (automanufacturers, tyre and rubber manufacturers and oil companies) with small businesses (such as fuel stations, workshops, body repairers, dealerships, etc) in the same bargaining unit, the so-called mega-bargaining council vision of NUMSA; and • One-year agreements for the industry (meaning we have to negotiate every year). When analysing these concerns, it is very hard, if not impossible, to understand why it should take more than five months of hard bargaining to find solutions and a settlement. Would any of the core issues pass the test of reasonableness and reality, or would they be found not to be in the interests of the auto industry’s future financial sustainability? Would they allow for thousands of small businesses to create more jobs (not shed jobs), encourage more entrepreneurs and new small business developments (as opposed to business closures and liquidations)? I know what my answer is. Having pondered these challenges, the struggling economy (in particular the auto industry’s year-on-year declining sales and exports), high inflationary pressures, high and increasing unemployment levels, the threat

of a downgrade to junk status, the violent university fees must fall campaign and the unstable political environment endangers the sustainability of business. Many would agree that collective bargaining has great benefits, provided it is done in an orderly fashion. It benefits everyone (business, labour and economy) in a stable and constructive environment, passing the test of reasonableness and reality. Social partners can work together and are capable of finding lasting solutions that meet the minimum criteria. This, however, requires effective leadership and the will to change. Has the time arrived for all stakeholders to once more analyse centralised collective bargaining as a concept and as a means to move forward? Options for change are, however, limited given the current labour legislation and it is worthwhile mentioning that previous analysis into collective bargaining by the RMI has each time confirmed that centralised collective bargaining remains the better and preferred option. This is what the RMI pledges to do in the interest of its members and businessaffiliates over the next couple of months. When the next issue of Automobil is published, we sincerely hope the current impasse with NUMSA will be over, that a strike will have been averted and that a settlement, enhancing and protecting the industry over the next three years, will have been reached.

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

www.automobil.co.za

NOVEMBER 2016 -

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

he RMI is a proactive, relevant, retail and associated motor industry organisation recognised as the leading voice in South Africa’s automotive aftermarket, serving the daily needs of its members and playing a key role in enabling motor traders to deliver top class service to motoring consumers. Here are the associations which fall under its umbrella… ACRA (Automotive Component Remanufacturers’ Association) ACRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, an ever-growing industry in which keeping abreast of change is crucial for business owners. ERA (Engine Remanufacturers’ Association) ERA represents motor engineers who re-machine, rebuild and remanufacture engines in South Africa. ERA members promote the reuse of engines, parts and components in a manner that is green and sustainable. ERA members create employment and skills development opportunities, directly in their own machine shops and indirectly through suppliers to the industry and component manufacturers. MDA (Motorcycle Dealers’ Association) MDA represents members who are motorcycle dealers – these members benefit from an extensive array of value-add services and products such as commercial insurance, labour legal assistance and representation, consumer dispute resolution, and a strong relationship with the Association of Motorcycle Importers and Distributors. MIMA (Motor Industry Manufacturers’ Association) MIMA members are Parts, Equipment and Component Manufacturers and suppliers to Original Equipment Manufacturers and the automotive aftermarket that exports into Africa and other countries in the world. MIWA (Motor Industry Workshop Association) MIWA, the largest association within the RMI, strives to keep its members informed about the ever-changing auto repair industry, thereby ensuring that vehicles are repaired to acceptable standards designed to make them perform better and safely on South African roads.

NAZA (Number Plate Association of South Africa) NAZA supports the imposition of a national standard for number plates, as well as for legislation to govern their manufacture, embossing practice and protocol. NAZA members adhere to a strict code of ethics in ensuring their part in eradicating corruption within the sector. TA

Vehicle Testing Association

VTA (Vehicle Testing Association) The VTA represents private vehicle testing stations that are committed to operating within the law in accordance with the Road Traffic Act and the relevant SANS standards. In this highly regulated environment, the association represents the interests of its members at government working groups and is committed to enhancing the reputation of the industry in all the spheres. SADFIA (South African Diesel Fuel Injection Association) SADFIA members operate fully equipped pump rooms aimed at providing cost-effective service solutions for owners of diesel powered vehicles seeking fuel injection system testing, repair or replacement. SAMBRA (South African Motor Body Repairers’ Association) SAMBRA is an active leader in the motor body repair industry and consolidates, communicates and regulates repair standards in the motor body repair industry. SAMBRA ensures the provision of technical and business skills training that meets the demands of the industry and instils confidence in consumers and industry stakeholders. SAPRA (South African Petroleum Retailers’ Association) SAPRA represents and promotes the interests of petroleum retailers in South Africa and fosters strong relationships with the Department of Energy, oil companies, banks, financial institutions and other stakeholders that have an impact on the sustainability of the service station industry.

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

SAVABA (South African Vehicle and Bodybuilders’ Association) SAVABA members are professional, certified and regulated vehicle body builders in South Africa who manufacture commercial vehicle body applications (tanker, coal, refrigerated trucks and trailers) and bus bodies (commuter and tourist type). Members manufacture using the latest equipment and highly trained staff to ensure strict compliance with SABS standards and other legal specifications.

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

TDAFA (Tyre Dealers' and Fitment Association) The TDAFA is the only representative body for tyre dealers nationally. The association works on all issues relevant to tyres and the fitment industry. Strategically, the TDAFA is positioned as an intermediary between government, the tyre industry and consumers and is recognised by government and industry leaders as the legitimate voice representing tyre dealers.

6 - NOVEMBER 2016

www.automobil.co.za

EDITOR’S LETTER

Riding the new wave

utomobil’s report on the world’s biggest independent aftermarket show – Automechanika Frankfurt – tells the story of an auto industry that’s quickly evolving. The central theme at the event was Tomorrow’s Service & Mobility – and the spotlight fell squarely on e-mobility, telematics systems and solutions for networking vehicles. Driverless cars were much in evidence, packed full of technology and safety equipment to demonstrate what their makers believe will be needed for successful operation of partially autonomous and completely driverless vehicles. Exhibits relating to battery technology and charging systems were also plentiful, while displays aimed giving visitors a glimpse of what workshops of the

future would look like incorporated digitalisation as a priority. As Dr Uwe Thomas, president of Bosch’s Automotive Aftermarket Division, indicated at the show: Workshops and the aftermarket are on the threshold of a new era. “For workshops, connected mobility is the wave of the future. As a result, the themes of networking, digitalisation and augmented reality were in particular demand at our stand this year,” he said. Still, it’s comforting to know that conventionally powered vehicles haven’t yet been forgotten – and that they will continue to be around for a number of years. Who says so? None other than BMW executive Klaus Fröhlich who, in an address to delegates at the 26th Aachen

Colloquium on Automobile and Engine Technology, said while it was likely that internal combustion engines would begin to decline in importance in the medium term, they would continue to play a vital role for an extended period. According to his theory it will be only around 2025 that the next wave of automotive evolution will take hold – and that will come in the form of hydrogen powered fuel-cell vehicles. I trust that you will enjoy this edition of Automobil, and that you will glean from it some useful and helpful automotive-related information. Wynter Murdoch Editor

R25992.00 FEATURES: Cab Sliding Window Interior Vinyl Lining Integrated Central Locking Side Sliding Windows Roof Rails

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Interior Light Brake Light Demister in door glass Tinted windows Unique hidden C-Clamp

NOVEMBER 2016

NEWS

SPEAK TO US RMI EXECUTIVES

hief Executive Officer: C Jakkie Olivier jakkie.olivier@rmi.org.za Chief Operations Officer & Human Resources Director: Jan Schoeman jan.schoeman@rmi.org.za Financial Director: Renee Coetsee renee.coetsee@rmi.org.za Company Secretary: Gary McCraw gary.mccraw@rmi.org.za

RMI BOARD MEMBERS

Jeánne Esterhuizen (President) Barry Canning (Vice-President) Ferose Oaten Jakkie Olivier Bruce Allen Lindsay Bouchier Pumza Gcanga Les McMaster George Nyabadza

RMI PARTNERS

SAMBRA Edwin Martin edwin.martin@rmi.org.za SAPRA Viv Corinaldi viv.corinaldi@sapra.co.za TDAFA, ACRA Hedley Judd hedley.judd@rmi.org.za

@AutomobilSA

TRAINING, TRANSFORMATION & ENTERPRISE DEVELOPMENT Marwaan Davids marwaan.davids@rmi.org.za SADFIA Louis van Huyssteen louis.vanhuyssteen@rmi.org.za ERA Pieter Niemand pieter.niemand@rmi.org.za

www.rmi.org.za

NAZA Julian Pillay julian.pillay@rmi.org.za MPEA, MIMA Erwin Stroebel erwin.stroebel@rmi.org.za MDA Jeff Molefe jeffrey.molefe@rmi.org.za

RMI4Sure 0860-104-202 RMI4Law 0861-668-677 RMI4BEE 0861-764-233 RMI4OHS 012-998-7139

RMI HEAD RMI HEADOFFICE OFFICE Danelle van der Merwe Brand and Communication Manager danelle.vandermerwe@rmi.org.za

DIRECTORS

Q&S, SAVABA, FRICTION STANDARDS Vacant

Neo Bokaba Transformation Manager neo.bokaba@rmi.org.za

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

011-789-2542 | www.rmi.org.za

NAAASP EMPOWERMENT Marwaan Davids marwaan.davids@rmi.org.za

Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194

NADA Gary McCraw gary.mccraw@rmi.org.za

RMI REGIONAL OFFICES

VTA Joy Oldale joy.oldale@rmi.org.za

8 - MAY 2015

Facebook.com/AutomobilSA

Highveld: Jeff Molefe jeffrey.molefe@rmi.org.za Randburg: 011-886-6300

Vehicle Testing Association

Northern: Pieter Niemand pieter.niemand@rmi.org.za Pretoria: 012-348-9311 KwaZulu-Natal: Julian Pillay julian.pillay@rmi.org.za Durban: 031-266-7031 Eastern Cape/Border: Erwin Stroebel erwin.stroebel@rmi.org.za Port Elizabeth: 041-364-0070 Western Cape: Joy Oldale joy.oldale@rmi.org.za Cape Town: 021-939-9440 Free State/Northern Cape: Louis van Huyssteen louis.vanhuyssteen@rmi.org.za Bloemfontein: 051-430-3294

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HOT STUFF

NEW PRODUCTS

Mini in your home Mini is scheduled to unveil this month its new collection of 50 products in a lifestyle range that includes clothing, luggage, toys, bicycles, household goods and fashion accessories. The collection is said to embody the brand’s identity in ways that take its appeal beyond its cars. According to a statement, all the items have been manufactured to exacting specifications and meet the highest quality requirements.

For the kids… Mini bicycle

Ultraclean from Castrol Castrol has unveiled its new generation GTX range of vehicle oils, including a premium GTX Ultraclean synthetic variant. The range of lubricants uses a double action formula to help clean away old sludge and protect engines against the formation of new sludge, helping them to perform at optimum levels for longer, ultimately extending the life of the unit. David Bouet, managing director for Castrol Africa, says: “We are delighted to bring the new Castrol GTX line-up to market and offer an enhanced product range to consumers who have known and loved the brand for years.” The new generation oil available in SubSaharan Africa markets and comprises GTX Ultraclean 10W-40, GTX Diesel 15W-40 and GTX 20W-50. For information log on to www.castrol.com/en_za/south-africa.html

www.automobil.co.za

For her… Mini T-shirt and matching cap

The Lifestyle Collection is available at www.shop.mini.com or from your nearest Mini dealer.

Reaching a zenith Car design and watchmaking are said to have come together through an association between Range Rover and Swiss chronograph manufacturer Zenith, which claims to have been the inventor of the world’s first self-winding timepiece. It was back in 1969 that the watchmaker developed its famous El Primero movement – the year in which designer Charles Spencer King penned the Range Rover. These days, both car and watch are perceived as class-leaders in their respective fields. To mark the milestone and shared values, the companies have collaborated on a special edition watch called the Zenith El Primero Range Rover, which features a 42mm case made from ceramides aluminium to match the aluminium architecture of the latest Range Rover. The watch is said to combine light weight with extreme durability, and its slate grey face emulates the look of the Range Rover’s dials. The winding crown is robust and is paired with easy-to-operate push-pieces. The names Zenith and Range Rover have been engraved discreetly on the oscillating weight and the retaining ring for the transparent, sapphire crystal case back. The watch is supplied with a black rubber strap with ivory-toned perforated calfskin and a black Diamond-Like Carbon (DLC) coated titanium triple folding clasp. The new chronograph will be delivered in a watch box made from the same gloss-lacquered wood found on Range Rover interiors and applied with the Range Rover logo. Authorised dealers in South Africa include Greig & Meinke in Pretoria and Picot & Moss in Sandton.

NOVEMBER 2016 -

YOU DO LIFE.

WE CARE FOR IT.

As the medical scheme that focuses on Retail Motor Industry employers and employees, we know whatâ&#x20AC;&#x2122;s important to you. So while you plan the health of your company, we take care of the health of you and your employees.

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For all your healthcare needs, call to arrange a face-to-face consultation at your workplace or visit www.motohealthcare.org.za.

10 - SEPTEMBER 2016

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SEPTEMBER 2016 -

NEWS

Dealers maintain profitability

outh Africa’s motor franchise dealers are employing innovative strategies to keep their Warren Olsen businesses profitable in a falling market, according to Sewells MSXI CEO Warren Olsen. He says tenacity has characterised the dealer network following the economic downturn which saw the new vehicle market slump by more than 10% in the first half of the year. “Monthly analysis has revealed that benchmark dealers – the top 30% – are

maintaining gross profits, with margins up 0,69% in the first half of 2016 compared to those for 2015. Slightly improved margins on new and used vehicle sales are the main contributors”. “The median group – representing about 50% of dealers – are in a similar position with year-to-date gross profit for the first six months of the year up very slightly by 0,83%”, Olsen says. He adds that there has been positive growth in the important overall return on operational assets (ROOA), with benchmark dealers showing an increase of 12% and the median grouping up by 6%. “We are very happy with the way in which dealers are faring in these tough economic times”, says Olsen “The results show how well they are managing the

combination of new and used vehicle sales, parts and service sales as well as income from finance and insurance to keep their businesses on a solid footing”. The analysis of data by Sewells MSXI, the local subsidiary of the global consulting and outsourcing firm that concentrates on the retail motor industry, also brings out some interesting facts about the way in which new vehicle sales have fared in the various sectors of the local market from 2013 to the first half of 2016. For instance, the largest growth has been in the large bus segment (36%), with heavy trucks up by 7%. All other sectors – passenger cars, LCVs, medium commercials and extraheavy trucks – show declines in sales volumes.

SANRAL appoints new CEO

ollowing the resignation of Nazir Alli as the CEO of the South African National Road Agency Limited (SANRAL), the organisation has appointed one of its engineering services executives, Koos Smit, as standin leader until Skhumbuzo Macozoma takes over next month. Macozoma, currently head of Electronic Toll Collection (Pty) Ltd, is described by SANRAL as “well-equipped to lead the national roads agency into a new era of growth with an expanded mandate to manage the country’s road infrastructure,” but it says Smit will act as interim head until that time. “Koos has spent several years as an executive with SANRAL. His extensive experience with the agency and knowledge of the industry and its

inherent challenges make him bestplaced to continue steering SANRAL in the interim,” spokesman Hector Mbatha said in a statement. Electronic Toll Collection operates as a subsidiary of Kapsch TrafficCom AG, a family-owned business based in Austria which runs toll collection operations in 33 countries, including South Africa. Before joining the company, Macozoma was managing director of the Johannesburg Roads Agency.

Morar paid tribute to Alli, who has had led the organisation since its establishment in 1998. “He is a visionary who truly understands the crucial role of roads to connect people to places and keep the wheels of the South African economy turning. We wish him well in his future endeavours and know SANRAL will, in future, be able to draw on his experience and knowledge.”

Roshan Morar, chairman of SANRAL, said he was confident that the appointment of Macozoma – who holds an MSc in civil engineering – would be well received within South Africa’s engineering sector, construction industry and the investor community. Skhumbuzo Macozoma

12 - NOVEMBER 2016

www.automobil.co.za

Canadian post for local exec

ercedes-Benz South Africa has announced that Nicolette Lambrechts, vice-president of its Vans Division, has been appointed to a similar position in Canada, effective from January next year. She replaces Pablo de la Peña, who has returned to a role at Mercedes-Benz in Spain. Lambrechts has been head of MercedesBenz Vans since January 2014, also serving as a member of the executive committee of Mercedes-Benz South Africa. She joined the company in 2001 as a graduate trainee. Under her leadership the division has maintained its dominance of the local

market in the categories in which it competes. Her successor has not yet been announced. Paying tribute, Arno van der Merwe, CEO of Mercedes-Benz South Africa, said: “Nicolette has led the vans business to various highlights and achievements over the years and continues to build on the successes she has achieved with her respective teams in each of the roles she has filled”. “We wish her well in her future journey as part of Mercedes-Benz Canada and know that they gain a valuable member to their team”.

Nicolette Lambrechts

Everest in local production

ord has expanded its Everest range following introduction of a new local production initiative for the vehicle at its Silverton assembly plant, where it will be built alongside the Ranger bakkie. “The start of local production for the Ford Everest is another major milestone for the company’s manufacturing division,” says Ockert Berry, vice president of operations. “We are confident that the vehicle will deliver outstanding results for us, our employees and, most importantly, our customers”. The model, which until now was imported from Thailand, will also be exported to countries in sub-Saharan Africa. The decision to opt for local assembly follows an investment of R2,5billion by Ford in the Silverton facility. Berry says about 1 200 new jobs have been created at the plant and within the company’s supplier network.

www.automobil.co.za

Tracey Delate, Ford’s general manger for marketing, says the Everest range will be expanded to eight models from its current two, and will offer a choice of engines, three trim levels, the option of manual or automatic transmissions, as well as two- and four-wheel drivetrains. Joining existing 3,2-litre, TDCi fourwheel drive derivatives will be a lesser powered 2,2 TDCi that will wear an

mid-spec XLS badge and feature six-speed manual transmission. Five two wheel drive versions – four of which will be equipped with similar engines – will also join the line-up for the first time, offering the option of manual or automatic transmissions and a choice of XLS or top-of-therange XLT trim. Flagship of the twowheel drive range is a new 3,2 TDCi XLT automatic.

NOVEMBER 2016

NEWS

'Petrol and diesel will be around for ages'

onventional diesel and petrol engines will continue to play major roles in the auto industry for some time to come, according to BMW executive Klaus Fröhlich. Addressing the 26th Aachen Colloquium on Automobile and Engine Technology last month in Germany, Fröhlich said future mobility needs would require the use of myriad technologies to meet demand. “There will be no such thing as a one-size-fits-all solution,” he said. Though it was likely that internal combustion engines would begin to decline in importance in the medium term, they would continue to play a vital role for an extended period, offering potential that could be tapped into with additional investment. “A wide spread of evolutionary advances will be needed to meet future requirements with respect to CO2 and other emissions, and 48V energy recuperation systems will play an increasingly important role in this regard,” Fröhlich said. He added that the proportion of electrified vehicles on roads was growing steadily and would continue to be multifaceted in nature, guided by markets. In terms of volumes, BMW’s i

14 - NOVEMBER 2016

and iPerformance brands had notched up global sales of 34 664 units from January to August this year. He expected a surge in demand at the end of the decade, when cost of the vehicles was expected to reduce significantly. “It will be a few years before the battery electric vehicle (BEV) becomes the all-encompassing solution for customers and model classes across the board. Pure battery-electric drive systems allow customers whose daily journeys don’t generally exceed 100km to enjoy zero-emission electric driving in small to medium-sized vehicles”. ”The i3 exemplifies a possible approach here, and now also offers customers an electric range of over 200km in realworld use,” he said.

when extended ranges and high running resistances were required. “The key benefit for customers of fuelcell drive systems is their short re-fuelling time – which is similar to that offered by vehicles with conventional combustion engines. What is lacking here, though, is the requisite hydrogen infrastructure and production set-up, and cross-sector partnerships have been launched to accelerate the process of establishing such an ecosystem,” he said. According to his reckoning, large-scale manufacture of hydrogen fuel-cell technology would become viable over the next 10 years, putting the energy source firmly on the radar for customer usage.

In terms of medium-length journeys and mid-size vehicles, consumers had an extremely wide choice of plug-in hybrid models (PHEVs). “These all-rounders offer an entry point into customerfocused e-mobility in many segments,” said Fröhlich.

He said partner networks – such as the one that existed between the BMW Group and Toyota – were an excellent way of arriving at objectives quickly and cost-effectively. However, he believed that broad-based market penetration of hydrogen-powered fuel-cell vehicles would not occur until 2025 at least, due to the sparsity of infrastructure.

He maintained that hydrogen-powered fuel-cell electric vehicles (FCEVs) offered the ideal combination of zero-emission motoring and everyday practicality

“By the time the fundamentals are in place, the BMW Group will have marketable products ready that are attractive to customers,” he promised.

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NOVEMBER 2016 -

NEWS

Van Zyl takes reins in Saudi Arabia

ne of South Africa’s key transport industry leaders, Kobus van Zyl, has resigned from Mercedes-Benz South Africa to pursue a new career with the company in Saudi Arabia. He has been appointed general manager of National Automotive Industries, a joint venture between Mercedes-Benz Trucks and EA Juffali & Brothers. The Juffali Group is MercedesBenz’s appointed general distributor in Saudi Arabia. Van Zyl will be responsible there for Mercedes-Benz trucks, vans, buses and special trucks as well as for Western Star and Freightliner products.

5G auto consortium established

udi, BMW, Daimler, Ericsson, Huawei, Intel, Nokia and Qualcomm Incorporated have announced the formation of the 5G Automotive Association.

Jasper Hafkamp

He will be replaced in South Africa by Jasper Hafkamp, former managing director of Mercedes-Benz’s Netherlands truck division.

According to a joint statement released by the companies, the association will develop, test and promote communications solutions, support standardisation and accelerate commercial availability and market penetration of 5G networks across the globe.

Arno van der Merwe, CEO of MercedesBenz South Africa and Executive Director: Manufacturing says: “We wish Kobus well in all his future endeavours. We are confident the Juffali Group is gaining a valuable team member and we look forward to welcoming Jasper to the management team at MBSA”. Hafkamp’s appointment is effective from December 1.

The goal is to address society’s connected mobility and road safety needs with applications such as connected automated driving, ubiquitous access to services and integration into smart cities and intelligent transportation. See P66 for full story.

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MORE REASONS WHY YOU SHOULD BELONG TO MISA Expert assistance in labour-related matters If faced with retrenchment, dismissal, or unfair labour practice, the MISA Legal team of experts will support you all the way. Financial peace of mind when you need it most The MISA BENEFIT and FUNERAL FUND are there to help when you need it most. Sound advice and support FREE support on drawing up a Last Will and Testament or a Living Will; drawing up a domestic worker contract, and UIF registration for domestic workers and sound advice on Retirement Planning.

Educational support MISA offers its members various options to enhance their skills within the motor industry. These include the MISA Study Assistance Programme for young members to either further their tertiary studies or complete their Matric certificate through a recognised institution, and the MISA bursary programme for children of members. Join today! Call the Motor Industry Staff Association on (011) 678 6328 today and a MISA recruiter will come to you. Who to contact at MISA MISA Bursary Programme: Karen Schoonraad (011) 476 3920 MISA Study Assistance: Thandeka Phiri (011) 476 3920 Legal & Labour: (011) 476 3920 Email: info@ms.org.za Website: www.misa.org.za

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Here are 4 reasons to belong to the Moto Health Care family: Moto Health Care was created by the Retail Motor Industry, for the industry, so no other scheme knows you like we do Our reserve ratio is 52% which is above the 25% required by the Council for Medical Schemes For 2017 our weighted average increase across all options is 8.9% which is well below the industry average so far We continue to adapt our products to cater for new employees in the industry

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CHOOSE WHAT REALLY MATTERS! Moto Health Care members are reminded to return their Option Selection form to us by

30 November 2016

COVER STORY

Automechanika Frankfurt heralds aftermarket changes Connected cars take centre stage at the world’s leading trade fair

he central theme atPRE this2000 year’s Automechanika Frankfurt – billed as the world’s largest showcase for the independent aftermarket – was Tomorrow’s Service & Mobility. A record 4 820 exhibitors from 76 countries took part in the event – which was held in Frankfurt, Germany, in mid-September – and they offered an impressive demonstration of the ways in which the automotive industry is changing as connected cars come to the fore. Key areas of the exhibition included e-mobility, telematics systems and solutions for networking vehicles, and a number of companies displayed technical solutions designed to deal with tomorrow’s perceived mobility requirements. Driverless cars were much in evidence, such as the Advanced Urban Vehicle displayed by ZF. The experimental model was packed full of technologies and safety equipment to demonstrate the company’s take on what it thinks will be needed for successful operation of partially autonomous and completely driverless vehicles. Exhibits relating to battery technology and charging systems were also highlighted, including a wireless induction system demonstrated by Bombardier Primove.

20 - NOVEMBER 2016

TODAY

FUTURE

Continental Tyres received the Innovation Award in the Accessories and Customising category as well as being the first recipient of the special Green Award for use of Taraxagum – made from dandelion roots in – tyre construction.

In the workshop of the future, digitalisation, big data and e-mobility are set to change procedures and processes. Central among the Automechanika exhibits were systems designed to remotely transfer repair information from car to technician; speed up the ordering and provision of spare parts, and conduct preventive prognostic diagnosis.

In the body repair sector, vehicle-specific digitalisation was deemed to be one of the major keys to unlocking new technical possibilities. At the DAT stand, for example, a display demonstrated how hail damage to a vehicle could be calculated remotely using nothing more than stored data obtained from the OEM and a digital photo of the car.

Dr Uwe Thomas, president of Bosch’s Automotive Aftermarket Division, said workshops and the aftermarket were on the brink of a new era. “For workshops, connected mobility is the wave of the future. As a result, the themes of networking, digitalisation and augmented reality were in particular demand at our stand this year.”

As well as traditional business involving private customers, services provided for fleet operators look set to become increasingly important to the aftermarket in the future, driven by the burgeoning in Europe of car-sharing models. Several exhibitors presented their solutions for issues such as how

www.automobil.co.za

Congratulating Continental... (From left): Detlef Braun, Member of the Executive Board of Messe Frankfurt; Maria Hanczuch, head of Continental Business Development for Passenger Car and Light Truck Tyres; Klaus Engelhart, Press Spokesman for Continental Passenger Car and Light Truck Tyres; and Sergio Pininfarina, an Italian car designer who headed up the Pininfarina design company until 2001

The competition attracted 130 entries, 58 of them from German companies and 72 from other countries, representing an increase of about 30% in the number of international entries. The eight category winners were: Parts and Components: Robert Bosch for its ultra-light motorcycle battery using lithium technology. It provides four times the service life, is leak-proof and can be installed in any position.

vehicle fleets are likely to be organised; how renting and return procedures will develop and how workshop services and repairs will be scheduled and managed. The world of spares is also undergoing change. Irrespective of the ways in which the relationship between private vehicle users and car-sharing users develop, the overriding perquisite is that cars will need to be back on the road speedily. At the Materials & Parts section of the show, the emphasis by parts and component manufacturers – as well as software and logistics service providers – was on 3D printing, which is seen as a solution to facilitate quick turnaround. A number of companies exhibited their latest wares, among them MarkerBot and Ricoh.

www.automobil.co.za

At the show’s Innovation Awards, Continental Tyres was the big winner, the company taking victory in two major categories – the Green Award, which was presented for the first time, and the Accessories and Customising section. The product that wowed the judges was the Conti WinterContact tyre that utilises Taraxagum, made from dandelions, for its tread. The company has collaborated with several partners to develop a new source for the raw material, lessening the need to clear tropical rain forests for the cultivation of rubber trees. The jury judged this to be the most sustainable innovation entered in the 2016 contest.

Electronics and Systems: On Board Defence for it's Portector which is a professionally-installed, tamper-proof device that prevents vehicle theft without a key. Portector prevents non-authorised communication with the vehicle’s systems using an on board diagnostic (OBD) port. Accessories and Customising: Continental for the use of Taraxagum dandelion rubber in the tread of its WinterContact tyres. Repair and Diagnostics: NGK Spark Plugs Europe for developing the world’s most compact and lightest multi-gas meter. It supports engine/vehicle testing facilities and the emissions test under realistic conditions. Repair and Maintenance: Corghi, of Italy, for its Uniformity tyre fitting machine which is the first with a diagnostic

NOVEMBER 2016

Major global manufacturers of components and systems, such as ZF Continental, Jost and WABCO, were among the host of exhibitors offering new and innovative solutions for transport operators. These ranged from brake pads and linings to turbochargers and from spanners to paint spray booths.

function. It uses a press roll and laser sensors to detect rim and tyre defects. It then tells the tyre specialist step-bystep how to mount the tyre radially on the rim, resolving vibration problems. Management and Digital Solutions: AVL DiTest of Germany for its Smart Service 4.0 AVL DiTest system which aims to connect intelligent telematics solutions with the workshop service department. Having information on future service needs enables service providers to improve planning and replacement parts procurement. Car Wash, Care and Reconditioning: WashTec Cleaning Technology, of Germany, for its multi-plex side washing system

which pivots backwards on the roll axis when washing the rear of a vehicle. It adapts to the contours of the vehicle and washes them with maximum contact, including under the rear spoiler, into the bumper recesses and around the C pillars. OE Products and Services: The Valeo Scala is the first laser scanner for automotive mass production. It is set to be a key factor in automated driving as it has a large detection range and a wide field of view combined with high accuracy. Another feature of Automechanika was the Truck Competence display, which signified the growing importance of the transport sector for aftermarket service providers.

System and component suppliers, as well as OEMs, are always looking for ways to reduce fuel consumption and emissions from vehicles and many innovative solutions were on display at Frankfurt. Lightweight materials, new methods of construction and the adoption of electric-drive were among the exhibits featured, along with technical assistance systems that enable fuel saving by anticipating road conditions. While commercial vehicles are perceived by many as practical beasts of burden, for some in the transport business trucks can also be used in motor sport events, including rally-raids such as the Dakar or for track racing, and several examples of trucks used in motor sport were on display.

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NOVEMBER 2015 -

INSIDE LINE

Why the APDP is necessary South Africa, as a succession of motor industry executives have attested, has precious few investment advantages beyond the APDP – which is why it is vital that the programme continues. David Furlonger reports

o little money – and so much to spend it on; no wonder some of South Africa’s Cabinet Ministers are said to be casting around, hoping to raid budgets other than their own so that their pet projects can go ahead. How about the Automotive Production and Development Programme (APDP)? Why, a politician might ask, should we be paying ridiculously rich multinationals billions of rands to invest here? Why should BMW SA be allowed to use the APDP’s Automotive Investment Scheme (AIS) to recoup a possible R1,8-billion of the R6-billion it plans to spend on building the nextgeneration X3 in South Africa? Or, like its competitors, earn production-linked credits to reduce import duties. Surely all that money could go to a more deserving cause? It’s a twisted logic, because if you take away the R1,8-billion, you’re also certain to lose the other R4,2-billion. South Africa, as a succession of motor industry executives have attested, has precious few investment advantages beyond the APDP. Take away that carrot and everyone will go home.

24 - NOVEMBER 2016

Yet it’s a logic that, say some, has gained ground among certain politicians. Trade and Industry Minister Rob Davies is enormously proud of the 2013-2020 APDP and its achievements on his watch. Foreign companies have spent or committed nearly R50-billion because of its incentives. Discussions are under way about extending the programme, possibly to 2035. Still, remarkably, an industry insider says: “Rob Davies says he has fight constantly to keep the APDP and AIS going because other politicians say the money could be better spent elsewhere.” Volkswagen SA (VWSA) MD Thomas Schaefer confirms: “We have had long discussions with government. We show them the figures and they say maybe the money used for incentives can be redirected elsewhere.” It’s not the only disincentive currently troubling automotive boardrooms. Multinational vehicle manufacturers have unanimously made clear there is no chance of offering stakes in their South African subsidiaries to local

Volkswagen SA MD Thomas Schaefer

interests. So the only way they can meet stringent new black economic empowerment targets is to develop black suppliers. But where are these black suppliers? Government doesn’t know.

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INSIDE LINE

Thomas Schaefer, managing director of Volkswagen South Africa and Uhuru Kenyatta, President of Kenya, after the signing of an agreement to start the production of the Volkswagen Polo Vivo in Kenya at the end of 2016

In its quest to find the 500 black companies that Schaefer says he needs to meet empowerment targets, VWSA has been reduced to investigating bicycle-tyre companies “in the hope that one day they will be able to make car tyres.” An initial search for the 500 suppliers, without any input from government, yielded 41 leads – and several of those will probably not amount to anything. When it comes to the new empowerment scorecards, “most of us are non-starters,” says Schaefer. “To get to where government wants us to be is almost impossible. The targets are unachievable. If government tries to enforce them, we (vehicle manufacturers) will all leave.”

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But perhaps the move may not be very far. VWSA recently signed an agreement with the Kenyan government to send kit versions of the Polo Vivo from South Africa for re-assembly at a factory near Nairobi. In a country whose vehicle market is dominated by used imports, the initial annual sales target for the car is an optimistic 5 000 units. In time, however, Schaefer thinks Kenya has potential to become a significant vehicle producer in its own right. A number of other multinationals, he says, are looking for opportunities there. One of the reasons he thinks Kenya can succeed is because of the commitment of its president, Uhuru Kenyatta, who not only made a point of attending every single meeting

with Volkswagen’s representatives, but also dragged Cabinet Ministers out of other events to do the same. In other African countries, too, local officials go out of their way to talk and facilitate. Compare that with the attitude of South African diplomats in those countries. Their job is to foster relations and encourage trade. And yet, says a motor industry executive: “They might as well not be there. We never see them, they don’t return our calls, they don’t offer their services. Why are they there if it’s all too much trouble?”

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

NOVEMBER 2016 -

BUSINESS

Reaching agreement How to bring your feelings to the negotiation table and use them to your advantage. Ross van Reenen explores how feelings can impact on the way people can overcome anger and reach agreement with the opposing party

efore ‘negotiating’ became part of the MBA programme in most business schools, I insisted in running a short Ross van Reenen course in between the other modules for my MBA students. I realised firstly, as a businessman, and secondly as an academic, that it was imperative to have at least a very basic narrative of what negotiating is about, and the significance and importance of some of the very basic elements like anxiety, anger and the handling of disappointment and regret. Research has shown that effective negotiation is 90% attitude and 10% technique. The importance of Emotional Intelligence (EQ) cannot be emphasized enough. But, let us start with ‘managing anger and anxiety …’ Like anxiety, anger is a negative emotion which is mostly directed at someone else or an opposing party. Apart from the challenge of keeping irritabilities and tempers in check, some negotiators view anger as a constructive and a productive emotion which enables them to get a bigger slice of the pie. This, of course, is a zero-sum approach and they tend to view the negotiating process as competitive rather than collaborative as they seek a desired-outcome. Alison Woods Brooks, an assistant professor at Harvard Business School teaches the executive and education

26 NOVEMBER 2016

curricula for MBA students and, in conjunction with Maurice Schweitzer in 2011, she explored the impact of anxiety on negotiations. Very interestingly, they found that of the emotions when dealing with a stranger or negotiating for a higher salary, anxiety was the dominant emotional expectation. However, when negotiating for a car, anxiety was second to excitement. Anger, as many people believe, makes one seems stronger, more capable and more powerful and better able to succeed in a personal quest for glory in the negotiating process. A body of research – headed by Keith Allred, a former faculty member at Harvard’s Kennedy School of Government – documents the consequences of feeling angry while negotiating. The research shows that anger often harms the process by escalating conflict, biasing perceptions and making impasse more likely. Despite these findings, it is alarming to witness people continuing ardently to seek advantage in this harmful strategy.

easily be viewed in binary terms – you either win or lose. Research shows that participants can feel disappointed in the process. Disappointment differs from regret. The latter is more an effect of sadness about the outcome, which can then lead to thoughts about ‘how things could have gone’ – which then leads to disappointment. Great negotiators achieve great deals for themselves and leave opponents with the feeling they too got a good deal, although the truth may be different. A key factor for success: In future negotiations, work extremely hard in preparing your emotional approach, think about it consciously in the same way as you would prepare your strategic and tactical moves …

Some negotiators even fake anger … Research by Rachel Campagna at the University of New Hampshire shows that false representations of anger may generate small tactical benefits – but can also lead to blowback since faking the emotion creates authentic feelings of anger, which in turn diminishes trust amongst the parties. Handling disappointment and regret will always be a challenge. Negotiations can

• Ross van Reenen is an academic, writer and businessman. His bestselling business book From Locker Room to Boardroom – Converting Rugby Talent into Business Success, became an immediate best seller; jumping to Number 1 on Exclusive Books' Bestseller List within 19 days of its release.

www.automobil.co.za

NOVEMBER 2016

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www.automobil.co.za

NOVEMBER 2016 -

RMI UPDATE

RMI tees up at ULP Golf Day

t the invitation of Maurice and Joyce Rabebe, the RMI took part last month in the ULP Golf Day at Killarney Country Club. Maurice, who is Executive Vice-Chairman of Energy Business for Sasol, is also the founder and chairman of Unleashing Leadership Potential (ULP), a programme which promotes leadership development, youth involvement and community welfare across South Africa.

The RMI’s 4Ball at the ULP Maurice and Joyce Radebe Golf Day at the Killarney Country Club, Johannesburg… (from left) Gary McCraw, Renee Coetsee, Viv Corinaldi and Raoul Spinola

The RMI was represented at the Golf Day by Gary McCraw, Renee Coetsee, Viv Corinaldi and Raoul Spinola. In a letter of thanks to the organisers, Corinaldi – who is acting director of the South African Petroleum Retailers’ Association (SAPRA) – described the event as enlightening and enjoyable. “Well done to the organising team – we look forward to the next event. We also wish you the best of luck in all your ULP endeavors,” he said.

Maximising workshop profitability

he benefits to the South African automotive community of the strategic partnership between the Institute of the Motor Industry (IMI), with global headquarters in the United Kingdom, and the RMI in South Africa are demonstrated in a number of initiatives including knowledge sharing and raising awareness around the benefits of apprentice and staff training. IMI research in the UK has shown a Return on Investment (ROI) for employers from automotive apprentice training which has resulted in the building of an easy to use and free on-line calculator for employers to estimate their return for employing an apprentice before they employ them (http://www.theimi.org.uk/ graph). Recognising the impact of this work in the UK, the merSETA commissioned the IMI as a research partner to undertake a similar project for the benefit of the South African automotive community. The basic criteria for employer participation in the research, to build a South African on-line ROI apprentice calculator, were training CBMT registered apprentices and rigorous measurement of workshop staff’s performance through attended, worked and sold hours.

30 - NOVEMBER 2016

The importance of accurately recording attended, sold and especially worked hours cannot be over emphasised. In this article we demonstrate, with the use of a simple diagram, how these data combine and interact in the calculation of the three fundamental workshop ratios -– efficiency, utilisation and productivity. Understanding how these ratios interact can significantly influence the profitability of a workshop. We hope this will assist the understanding of young trainees and apprentices and provide a useful communication tool for workshop managers. How the ratios work A well-managed workshop must maximise productivity, which requires that each contributor's worked hours will be a high proportion of their attended hours (W/A). In turn, the jobs must generate a high number of sold hours compared to worked hours which optimises efficiency (S/W) – how quickly they work. Efficiency should be optimised rather than maximised in order to maintain quality. Therefore, maximised utilisation and optimised efficiency will drive high productivity (S/A).Try it for yourself with your data.

For example, referring to the graphic, if an artisan produces 34 Worked hours from a 40 hour (attended) week then his utilisation (W/A = 34/40) is 85%. If he manages to sell 36 hours then his efficiency (S/W = 36/34) is 106% and therefore his productivity (S/A = 36/40) is 90%. Productivity can just as easily be calculated by multiplying utilisation by efficiency (85% of 106% = 90%). Try the calculation using your own numbers and, if you don’t know the actual data on which to make the calculation, that’s a good reason to check out why not? We hope to bring you future articles highlighting the potentially severe impact on profitability resulting from the incorrect recording of workshop times and not keeping a handle on lost time. In the workshop time is literally money – so accounting for it is vital.

www.automobil.co.za

Partinform wows Ladybrand

artinform last month hosted a successful trade show in Ladybrand in the Free State. Visitors from the automotive sector gained valuable information and new perspectives on premium branded quality spare parts, new technologies and latest trends in the industry. “For the RMI, the components trade show provided an opportunity not only for exhibition and exposure but also an excellent platform to meet, engage and network with our stakeholders and potential members,” said Mark Erasmus, the RMI’s Office Administrator for the Free State & Northern Cape Region, who attended the event on behalf of Automobil. “It was a great evening for exhibitors to meet and exchange views with existing clients and future customers. From the RMI’s perspective, we were able to promote the Organisation, interacting with current as well as with potential new members.”

The RMI at Partinform… Free State and Northern Cape IR specialist Jacques Viljoen (left) and Bloemfontein Office Administrator Mark Erasmus (right) with Partinform’s registration representatives at the Ladybrand show.

Celebrating SA’s heritage

n celebration of Heritage Day, members of the RMI’s staff at the Organisation’s Randburg offices were encouraged to come to work dressed in traditional costume to commemorate their diverse cultures. They were also able to sample different cultural dishes on a day highlighted by fun and merriment, at the same time underlining that, in the wider context, South Africa is a nation that belongs to all of its people.

www.automobil.co.za

NOVEMBER 2016 -

ASSOCIATION OF THE MONTH

Putting the number plate first Introduction of a national standard for noncloneable number plates is high on the list of priorities at NAZA, the Number Plate Association of South Africa NAZA offers its members a unique opportunity to make their voices heard at national level. In a recent development the association’s chairman, Errol Hodgson, submitted proposals to the Department of Transport for a secure, non-cloneable national number plate that incorporates micro-dot technology instead of currently used water marks and SABS stickers which are easily replicated. The proposals are receiving attention and NAZA is awaiting feedback. However, the association is optimistic that the department will respond positively, given that non-cloneable number plates are in every road user’s interests.

Julian Pillay, newly appointed director of NAZA

he Number Plate Association of South Africa (NAZA) is an accredited body for number plate embossers and one of the RMI’s constituent associations. NAZA supports the imposition of a national standard for number plates, as well as for legislation to govern their manufacture, embossing practice and protocol. Members of NAZA adhere to a strict code of ethics to ensure that they play their part in helping to eradicate corruption within the sector. The association operates under the unified umbrella of the RMI and adheres to the Organisation’s Code of Conduct.

32 - NOVEMBER 2016

Further, NAZA is following developments of proposed legislative changes to number plates contained in Government Gazette Number 38430, published in January, 2015. The notice in the Gazette indicated that proposed amendments to the Act included the insertion of new definitions to provide for the registration and licensing of “embossers of number plates,” “microdot fitment centres” and “an inspectorate”. Also, the notice specified that significant alterations would be made to the format of number plates, with changes to Regulation 27 relating to the license mark and license number system; Regulation 28 relating to the personalised license number system and Regulation 35 proposing a change in the way the license number would be displayed.

Though NAZA was involved in the consultation process following original publication of the notice, little feedback has been received from the Department of Transport (DoT) regarding progress. Interestingly, the Justice Project of South Africa, reacting to queries, established in August this year that the new regulations had not yet been promulgated. In carrying out its investigations, the organisation criticised a DoT spokesman for referring to the proposed changes as a fabrication. Later the department acknowledged that amendments to number plate regulations had indeed been proposed and that the new regulations would be presented to Cabinet for approval. In this respect, be assured that NAZA has the best interests of members at heart and is keeping a watchful eye on proceedings. Since the association was last featured in Automobil (August 2015), some changes have been made on the staffing front. Julian Pillay has been appointed director of the association following the resignation of Annette Stewart. His message to members is that he intends to grow NAZA’s influence and passionately pursue the association’s aims and ideals while addressing concerns. According to Pillay, NAZA’s priority remains membership growth. “A lot of focus will be given to achieving this goal and getting the association to a point where its voice is so strong that it cannot be ignored by government or industry,” he says. • For information please contact Julian Pillay on 082 560 6625 or julian.pillay@rmi.org.za

www.automobil.co.za

THE UNDISPUTED KING

Because South African motorists chose Willard Batteries as their brand of choice.* TM

*Research: Objectivity 2015

www.automobil.co.za

For Enquiries Call 0860 12 00 12 MAY 2016 -

RMI UPDATE

Components in the spotlight

rganisers of the NAACAM Show, scheduled to take place in April next year in Durban, say the event will showcase the capabilities of South Africa’s automotive industry and, in particular, its component sector; The event, held bi-annually, will incorporate a conference featuring top class experts on automotive-related issues and is aimed at helping to promote localisation of automotive components at both OEM and Tier level. According to the organisers, one of the key attractions of the show will be the networking opportunities it affords suppliers of capital equipment, logistics and other

services to interact with component manufacturers. “The event also focuses on linking and developing B-BBEE suppliers in the automotive supply chain, and attracts a number of global OEM purchasing managers”, says a spokesman. “NAACAM views the show as a powerful platform for trade, investment and meaningful engagement between suppliers and buyers and is closely aligned with the objectives of the Automotive Supply Chain Competitiveness Initiative (ASCCI) and the Department of Trade and Industry to grow local value added, exports, employment and GDP”.

Adapting to change Efficiencies in the after-sales department are crucial for dealership viability and sustainability

fficiencies in all aspects of the aftersales operation are now more crucial than ever to ensure the viability and sustainability of automotive dealerships in today’s rapidly-changing business environment.

motor industry,” he says. “It is therefore essential that dealers move with the times particularly in tailoring their after-sales service and other offerings to meet the requirements of their customers or risk losing them”.

Austin is an enthusiastic supporter of Sewells and the revolution in dealer financial management this company has brought to South Africa. It established benchmarking among similar size businesses.

That’s the view of George Austin, a longserving senior consultant at Sewells MSXI South Africa, the local subsidiary of the global consulting and outsourcing firm that concentrates on the retail motor industry.

Austin’s position at Sewells MSXI has provided him with a wealth of international experience. “I was fortunate to have been able to cut my teeth in the motor industry with Toyota, which has always been a trend-setter in terms of developing strategies and innovations such as lean manufacturing, lean parts supply and Kaizen (continual improvement).

The tool continues to drive efficiencies and profit in local dealerships, with the company’s Performance Groups being an excellent method of providing a mutually beneficial forum for participating dealers to improve the way they do business.

Austin has specialised in the parts and service aspects of the motor industry since 1982 and has vast resources of experience to call on when he consults to dealers and dealer groups on the importance of having a healthy after-sales division. “Times are changing fast as disruptive trends alter the old face of the retail

34 - NOVEMBER 2016

“In addition, I learned the methodical Japanese way of thinking. This background has been very beneficial in shaping the methods I use for training and consulting”, he says.

“I was fortunate that I was able to join Sewells in 2000 when the company was in its formative years, but growing quickly by ensuring it provided added value to the dealers making use of its expertise”, he explains. He particularly enjoys interaction with dealer principals as well as being involved

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with the annual Advanced Dealer Management programme which aims to groom successors for senior positions in dealerships and dealer groups. “I love the interaction with these people and also the opportunity to continue my learning experiences. Often these delegates have theoretical knowledge, but are not yet ‘street smart’ in terms of the complex automotive retail business. Here I try and help them”. The Sewells MSXI consultant said that the role of managers in the parts and service department had changed dramatically with the introduction of new technologies in vehicles and in business management. “For instance a parts manager is now essentially a key account manager whose main focus these days is not ordering and managing stock, but rather looking for business outside the dealership. He or she must then manage these accounts diligently to ensure customers were given a high service level and that these accounts were, in turn, profitable for the dealership”. Austin did not set out to work in the motor business. His first serious job was working at Dun & Bradstreet, an

American business services company, where he learned financial analysis. One of his projects was writing a detailed report on Toyota South Africa. He was impressed by the information he unearthed and, by chance, found an advertisement indicating that the company was looking for a national parts operations manager. He applied and got the job. “In those days much of my work focus was financial, although I also had to manage the field staff that looked after a network of 284 dealers, which put me on a quick learning curve. Next move was promotions manager, first for parts and later for aftersales. “Then came the opportunity to move into training and this is the area where I found true fulfilment as I revel in human resource development. Toyota also gave the chance to go to university at the age of 42 and I obtained an honours qualification in human resource development at RAU. “In 2000, the scope of my position changed and I decided to move on. I had been working with Sewells for the past 10 years so it was a natural for me to join them as a consultant”.

George Austin

“My current position includes a variety of consultancy opportunities, developing training material, e-learning programmes, storyboards and train-the-trainer initiatives. I am proud to be part of a Sewells MSXI team that has embarked on the exciting journey of working to equip dealers for the future”.

Make sure you’re legally covered

s some members of the RMI may be aware, the Organisation has enjoyed a collaborative relationship with Legalex (Pty) Ltd for some years – and many have opted to procure for their businesses the substantial benefits associated with RMI4law policies. Feedback received from members describes the benefits as useful and a real value proposition. Recently, Legalex embarked on a renewed outbound marketing campaign and members can expect to be contacted by the company’s call centre in the near

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future. Members who wish to join can phone Legalex at 0861 668 677; send an e-mail to info@legalex.co.za or text their name and the letters RMI to 44386. Members who require more information should visit Legalex’s website at www.legalex.co.za, which also caters for responses. RMI4Law policies are intended to empower members in various areas and include insurance cover for legal matters, telephonic legal advice and standard legal documentation. Legalex

is underwritten by Guardrisk Insurance Company Limited and is comprised of a panel of attorneys numbering in excess of 350 law firms nationwide. Even uncovered matters, such as matters which might have arisen prior to the inception of the policy, will receive legal advice and preferential rates from panel attorneys. The RMI remains, as always, committed in furthering the interest of its valued members.

NOVEMBER 2016 -

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Caddy 2004 - 2011 EOS 2007 - 2011 Golf 2004 - 2011 Jetta 2006 - 2011 Touran 2004 - 2010

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* Please note â&#x20AC;&#x201C; advertised image is only a representation and may differ to actual part. Prices are recommended retail prices (not binding to any party) exclusive of VAT and subject 36 NOVEMBER 2016 www.automobil.co.za to -change without notification. Part applicability dependent on chassis/VIN number. Prices valid from 01 November 2016 - 28 April 2017. While stocks last.

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Every Volkswagen Genuine Part is manufactured specifically to fit our vehicles, so you can enjoy an authentic Volkswagen driving experience for as long as possible. Make sure you always choose Volkswagen Genuine Parts. For genuine quality and peak performance, contact your nearest participating Volkswagen dealership, or visit vw.co.za

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OCTOBER 2016 -

OGILVY CAPE TOWN 92139/E

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

TECH TALK

Let there be light!

The automotive light bulb has evolved over time to become much more than a simple piece of wire which, encased in a vacuum, burns brightly enough to illuminate the road ahead. Jake Venter investigates Headlamps

hat is light? The creation process starts when something energises electrons orbiting an atom. If they gain enough energy they move into a higher orbit. If some drop down to a lower orbit the energy they release leaves the atom as a photon – the fundamental particle of light.

Milestones from 1990 to 2004

1st electrical headlamp

1908

The exact nature of photons is still a mystery, and there has been a great deal of scientific argument about whether light is a wave or a stream of particles. It is now accepted that, at the photon level, light behaves like extremely small particles but, at the human experience level, it shows wave-like properties. Albert Einstein was one of the first scientists to accept the dual nature of light and he explained the consequence of the photon theory by saying that, if he was an atom on the surface of a metal on which a light was shining, he would experience a hail of photon bullets rather than a tide of light waves. Reflectors are used to focus light into a beam. The basic reflector shape is that of a paraboloid – a three-dimensional parabola. A point source of light, placed at a focal point, will result in a stream of light beams parallel to each other and to the axis of the parabola. This is exactly the kind of light stream that is needed for the main beam of a vehicle. A dipped beam can be achieved in a number of ways. In the past, a twofilament bulb was usually fitted, with the second filament still on the axis of the parabola, but placed forward of the focal point. In this case, half of the light beam would shine downwards while the other

38 - NOVEMBER 2016

1st LED projection headlamp

Asymmetric light distribution

1957 1914

1st low beam

1st generation of xenon headlamp

1983 1971 H4 halogen lamp

1992 1988

Many modern dipped beams are asymmetrical, with an extended range on the near side to illuminate the area next to the road, the beam directed by means of a shield. Traditional Bulbs Filament wound from tungsten wire glows at a temperature of 2 300˚C. In early bulbs the filament was enclosed in a near vacuum to prevent it burning away. Later, bulbs were filled with an inert gas, such as argon, to increase the lifespan of the filament. In spite of this improvement tungsten evaporates as time goes by, making the filament thinner and blackening the inside of the glass, thus reducing lighting power. This makes it possible to detect a

Static and dynamic bend lighting

1999 1993

Free-form reflector

half would shine upwards. A shield placed over the second filament in just the right place would cut off the upward-shining light beam to produce the dipped effect.

1st Bi-Xenon headlamp

Approval of the first European headlamp with PC cover lens

2003 2000 Light guide technology as a styling element

2004 LED as signal function (daytime running light) Audi A8 W12

Business Division Lighting | May 2015

failed bulb just by looking at the colour of the glass. The early 1960s saw the introduction of what are variously known as tungstenhalogen, quartz-iodine, quartz-halogen or tungsten-iodine bulbs. They are usually manufactured only in single filament form, so that special reflectors and two bulbs are needed to allow for a dipped beam, or else four headlamps have to be fitted. The bulbs give far stronger illumination and have a longer life than their forerunners with virtually no drop-off in performance as the bulb gets older, achieved by charging it with a precise amount of iodine mixed with inert argon. Iodine reacts with tungsten filament vapour to form tungsten halide compounds. These compounds are attracted to the hot filament area and, as they get nearer the higher temperature zone, they break up again. In this way,

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HNS (Homogeneous Numerically-calculated Surface) technology makes it possible to design reflectors that enable the light distribution pattern to be generated in such a way that additional optical elements are not needed – the lens is smooth on both sides. Some new cars are fitted with smalldiameter headlamps that have very thick lenses, either in pairs or in combination with other designs. These are known as projection lamps, because they don't reflect the light, but actually project an upside-down image of the inside of the reflector on to the road.

Headlamps Milestones from 2006 on

1st full-AFS headlamp Mercedes E-Class Opel Insignia

2006

Camera based headlamp with adaptive Cut-off Line

Camera based headlamp with glarefree high beam

Mercedes E-Class (1st to market)

VW Touareg (1st to market)

2009

2011

2008 Full-LED headlamp Cadillac Escalade Platinum (1st to segment)

Full-LED headlamp with glare-free high beam Mercedes E-Class (1st to segment)

2013

2010

2012

Full-LED headlamp with AFS-functions

Headlamp with LED main beam function for truck segment

Audi A8 (1st to market)

DAF XF/CF (1st to market)

LED Matrix headlamp with glare-free high beam Audi A8 (1st to market)

Business Division Lighting | May 2015

the tungsten vapour never reaches the glass, so that blackening and degradation of the tungsten is virtually eliminated.

In a sealed-beam unit the complete assembly effectively forms a giant bulb, so that everything is sealed against dirt penetration. The enlarged glass area takes far longer to blacken, so sealed beam units don’t deteriorate over time. In many designs, the front glass is cast with a series of lenses to give the correct lighting patterns for both main and dipped beams. Modern Reflectors Cars have become a great deal more streamlined. As a result, lights are now smaller, more elongated and more efficient. Major headlamp manufacturers have been able to meet these conflicting requirements by making an intensive study of the various ways that light can be projected.

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The first deviation from traditional round headlamps occurred when rectangular shapes were introduced. Some of these units, called bi-focal paraboloids, use a stepped reflector, which has two paraboloidal sections of different focal lengths, but a common focal point. Sometimes the focal points also differ as is the case with the headlamp on the 1999 S-Class Mercedes-Benz, which has three separate paraboloids, each with a bulb at its own focal point, and each with a lens that distributes light according to whether it is a high beam, a low beam or a fog light. The next evolutionary step was the free-form (FF) reflector, also known as variable-focus reflector, which consists of a number of non-parabolic sectors that have been designed – by means of special computer programmes – so that the entire reflector surface can be exploited.

They are very efficient, and are usually combined with a shield that projects a defined cut-off point on to the road surface. Bosch calls them PES (Poly Elliptical System) headlamps because they utilise an elliptical reflector surface to project the light rays on to the back of a lens that is flat on the inside and convex on the outside. Hella prefers the term DE headlamps, for double ellipsoid, because the reflector has a different ellipse in the vertical plane than in the horizontal plane. Modern Bulbs Some of the latest bulbs no longer employ a glowing tungsten filament; instead the light source is the glow that results when an electrical current flows through an inert gas, housed in a small sealed quartz cavity. The gas is Xenon and a mixture of metal halides and the resulting light is similar to sunlight. These bulbs require an ignition voltage of 10 000 to 20 000 volts to ionise the gas between two tungsten electrodes, as well as melt the metallic salts. When switching on such a lamp, there is a bright flash, and then it takes a second or so for the full illumination to start, after which voltage is reduced to 85 volts – sufficient to maintain the arc. Bulbs such as these require voltage to be electronically controlled, but they supply strong and efficient light and should last as long as the car. These so-called gaseous discharge bulbs are at present mainly used in DE reflectors, but can actually be used in any reflector.

NOVEMBER 2016

LED (Light emitting diode) light units are currently all the rage. Initially they were used for small or interior lights but these days can also be found inside headlamps. An LED is a device constructed to arrange for negative electrons to fall into a positive slot (called a hole) when moving across a semiconductor. This causes the electron to lose energy and release a photon in a process called electroluminescence. An LED light-source contains millions of electrons so that the result is a continuous bright light. These lights need very little power compared to incandescent bulbs, and also have a very long life. They’re brighter than halogen bulbs and are used in clusters, making it easy to design weird and asymmetric shapes that have become quite common. The actual LED does not get very hot but the controlling chip does, so that the bottom of some LED bulbs contains fins which form a primitive heat sink.

Some luxury brands have been offering laser headlamps as a very expensive option. Ordinary light consists of a mixture of light waves moving in a jumble of different amplitudes and planes. This is why the light spreads out in a fairly weak beam. Laser light consists of beams that move coherently – all waves move in step in the same direction with the result that the light is a narrow beam that is very much stronger than ordinary light. Such a lamp employs three lasers at the back of the headlight assembly. These fire into a set of small mirrors that focuses the energy into a lens that contains yellow phosphorous gas. This creates a very bright white light that is then reflected towards the front of the headlight. In other words, the light shining through onto the road comes from the phosphorous and not the laser, so there is no danger of a laser beam shining onto oncoming cars.

The light is about 1 000 times brighter than that produced by LEDs and the unit consumes about two-thirds to one-half the power of an LED setup. The light’s colour is close to normal daylight and the illuminating distance is twice as far as that possible using LEDs. The housing units in which lasers are contained are small enough to allow more styling freedom. At present they’re only suitable for main beams so that another system has to be used to augment the laser. The controlling system also needs special cooling arrangements.

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

“Abandoned Solutions offers a LEGAL, COST FREE solution TO ALL DEALERS/WORKSHOPS/PANELSHOPS” BACKGROUND

SOLUTION OFFERED

•

We will: • Clear any vehicle within 12 to 16 weeks so that these vehicles may be removed from your premises, processed and sold by ourselves as salvage. To defray some of the “sunk cost” already incurred by the dealer.

•

• •

Abandoned Solutions is a company focused on addressing the issues associated with the salvage and recovery of vehicles abandoned at dealerships and workshop outlets. South Africa’s precarious economic and socioeconomic environment, coupled with high household debt-to-income ratios has left mass SA households in poor financial health. Many businesses are seeing significant changes in consumer buying behaviour; among these is a growing trend to abandon vehicles at dealer workshops. In many instances the cost of repairs, vehicle debt and any other related charges exceeds the value of the vehicle consequently fueling the “abandoned vehicle” phenomena.

PROBLEM DEFINITION

Because of this increasing “Abandoned vehicle” phenomena, dealerships are facing the following issues: • Vehicle floor and or yard space is being consumed by an ever increasing inventory of unproductive abandoned vehicles. • Abandoned vehicles are being stripped for spare parts, as well intended mechanics look to reduce maintenance costs and improve turnaround times on vehicle repairs. This in itself has the potential to introduce quality issues because of the practice of using “used parts”. Similarly the dealership is exposed to increased liability should the original owner collect or request that their car be returned in the same condition as when originally left at the dealership. • Abandoned, stripped, damaged vehicles detract from overall dealership standards and place pressure on relationships between dealers, dealer principles and the OEM. •In many instances the time and associated legal costs required to hold abandoned vehicle owners accountable exceeds the value of repairs2016 and or the value of the vehicle. - OCTOBER

•

We at Abandoned Solutions offer a quick, cost free solution to these problems.

We will: – Cover the legal costs associated with clearing any vehicle slated for salvage. – Indemnify the dealer against any legal claims arising from any salvage activity. (A written report supported by appropriate clearance documentation will be provided to the dealership prior to final removal and salvage of any said vehicle.) – Return a minimum of 15% of the salvage value, (net of legal and clearing costs), to the dealer. • As an additional service, Abandoned Solutions can offer FREE temporary storage for abandoned vehicle should this be required during the clearing / salvage process. Contact Robert Henderson on 011 450 0550/0004 or 073 016 8424 Fax: 086 662 1148 / E Mail: rob@abondonedsolutions.co.za Address: Office A1 Mediterranian Conference Centre, 72 Concorde Road East, Bedfordview

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NOVEMBER 2016 -

CONSUMER AFFAIRS

TOYOTA’S winning ways

Winning – it’s a habit. And Toyota is firmly back to its winning ways as far as parts pricing is concerned, having dominated the Kinsey Report for the past two years

he Kinsey Report – an eponymous parts survey named after pricing guru, Malcolm Kinsey – has become an important benchmark in determining what South Africa’s motor dealers charge Joe Public for parts for their current cars. It is a strong indicator of what a car will cost to maintain and repair once a service or maintenance plan has run its course. Importantly, the pricing of exterior parts also impacts insurance premiums.

spheres are compared across the industry, from affordable hatchbacks to luxury SUVs. Toyota South Africa dominated the 2015 Kinsey Report in no uncertain terms, taking overall wins in three of the nine categories and a total of seven podium positions. A year later not much has changed: Toyota again tops the tables with a similar performance.

It stands to reason: if a headlight, bonnet, bumper skin and grille cost R20 000 and take two months to arrive in South Africa, then you can bet your insurance company will factor in those influences.

The podium tally this time around is six medals – three gold and three silver – confirming the brand’s commitment to not only building cars that are of high quality, that are durable and reliable, but which, in the long run, also promise competitive costs of maintenance and repair.

The survey breaks down costs into three broad, self-explanatory areas: service, maintenance and crash parts. Each year, a basket of some 40 items from these three

As was the case a year ago, the brand’s locally-made Corolla Quest and new Fortuner both crossed the line first. For the ever-popular SUV, the latest

42 NOVEMBER 2016

outcome is particularly impressive as the vehicle was launched only a few months before the survey was conducted. In essence, the new Fortuner went straight to the top of the podium from which its forebear had just stepped! The Avanza has been another success story and the compact people-mover has, since launch, won the category a remarkable five times and been runnerup on the other three occasions. While total podium places this year were one less than in 2015, the net result represents a gain, as previously the aggregate was three golds and a brace of silvers and bronzes. Either way, this contrasts starkly with 2011 when the triple ellipse emblem appeared just once in the top three. But since then Toyota, also the most successful brand in the history of the

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Kinsey Report, has raised its game, re-focusing on parts pricing and reaffirming its commitment to taking a holistic view on vehicle ownership. The long-term picture is especially important when it comes to bakkies and, while the eighth-generation Hilux features strongly in this year’s Report, owners of the previous version can take comfort from the fact that they will still be able to get parts for it from a Toyota dealer in 2030 – that’s still 14 years away! Says Leon Theron, Vice President: Service, Technical and Customer Service at Toyota South Africa: “Our upward trajectory since the beginning of the decade continues and, since then, we have made phenomenal progress by means of much focused effort. Our recent performance shows Toyota’s commitment to this course – this is a marathon, not a sprint! “The lifetime ownership cost of a vehicle has always been a Toyota focus and parts pricing is a major part of that. The results of the Kinsey Report show how seriously we take this. Our team really has covered itself with glory in the parts pricing Olympics once again.”

Local is lekker: Durban-built Toyotas rule the Kinsey roost! Corolla Quest: The car that arguably epitomises everything Toyota stands for: quality, reliability and durability. Underpinned by the trusted previous-generation Corolla platform, Quest represents an affordable entry into the family sedan market, without requiring any significant sacrifices. It is a true local hero… Corolla: Everything that you could possibly want in a family car and a long-standing success story in the C-segment. Stylish, well-equipped, safe, reliable, frugal… the Corolla ticks all the boxes that matter. Toyota doesn’t mind it being the runner-up in the C-segment once again – the only car to upstage the current-generation Corolla is the Corolla Quest! Toyota Hilux Double-Cab: In 2015 it finished second in class and, a year later, the latest ’Lux is taking home silver again – the result of long-term planning and intensive analysis at Toyota as part of a campaign to move the four-door bakkie ahead of the pack. It was a mammoth task: There’s a total of 11 000 parts across the vast model line-up, each one evaluated in terms of availability, cost and quality. The same philosophy was applied to the new Fortuner, which shares many components with the Hilux, with the same successful outcome.

(Full 2016 Kinsey Report published in the Spring edition of the AA Traveller)

www.automobil.co.za

ulian Pillay, newly appointed director of NAZA

NOVEMBER 2016

HEAD OFFICE merSETA House, 95 7th Avenue, Cnr Rustenburg Road Melville Johannesburg, 2092 Tel: 010 219 3000 Fax: 086 673 0017 EASTERN CAPE 14-20 Pickering Street Newton Park, Port Elizabeth, 6045 Tel: 0861 637 734 Fax: 041 363 0144 GAUTENG SOUTH merSETA House, 95 7th Avenue, Cnr Rustenburg Road Melville Johannesburg, 2092 Tel: 010 219 3000 Fax: 086 673 0017 GAUTENG NORTH & NORTH WEST Automotive Supplier Park, 30 Helium Road Rosslyn Ext. 2 Pretoria, 0200

“PAST, PRESENT AND FUTURE” How does one apply for a learnership programme?

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

Who is eligible to enter a learnership programme? Any person, employed or unemployed, may apply to register for a learnership:

If you are employed, you may register for a learnership programme within the sector where your company or organisation operates; or

If you are unemployed, you may register for placement in a learnership programme at your local labour centre or with employers in your area. The Department of Labour refers unemployed individuals, who meet the minimum criteria, to employers looking for learners. WE CARE:

If you are unemployed, you must register your profile at the nearest Department of Labour office, after which you may be referred to employers who may be looking for learners to enter learnership programmes.

What is an apprenticeship?

9b Roper Street Kimberley, 8301 Tel: 0861 637 733 Fax: 051 447 8873 KWAZULU-N ATAL 149 Essenwood, 149 Stephen Dlamini Road Musgrave Durban, 4001

Who is eligible for an apprenticeship programme?

Tel: 086 163 7736 Fax: 031 201 8732

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

LIMPOPO & MPUMALANGA 1st Floor, No.8 Corridor Crescent Route N4 Business Park Ben Fleur Ext 11, Witbank, 1040

How does one apply to enter an apprenticeship programme?

If you are unemployed, you may apply to a company that is offering an apprenticeship programme; or

If you are employed, consult with your employer as to the requirements and correct procedures to be followed to enter an apprenticeship programme.

It’s about working together with colleagues

w www.merseta.org.za

FREE STATE & NORTHERN CAPE 46 Second Avenue Westdene Bloemfontein, 9300

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

WE BELONG :

It’s about caring for people we render services to

LEADERS 44 NOVEMBER 2016

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

Tel: 0861 637 731 Fax: 0866 700299

merSETA Social

WE SERVE:

It’s about going beyond the call of duty

@mersetasocial

IN CLOSING THE SKILLS GAP

Tel: 0861 637 735 Fax: 013 656 4629 WESTERN CAPE Bella Rosa Road, Bellville, 7530 Tel: 0861 637 732 Fax: 021 914 8131 CALL CENTRE Tel: 086 163 7732 info@merseta.org.za www.merseta.org.za

www.automobil.co.za

TRAINING

Getting it right! Partinform aims to ensure that learners in the motor industry are well versed regarding the use and correct fitment of good quality replacement parts. Reuben van Niekerk reports

artinform is an association of local companies that represent major quality brands in the Southern African automotive component aftermarket. Following a flood of sub-standard car parts into the local market in the mid-1990s, the association recognised a need to promote the use of highquality replacement components. Now, Partinform’s primary objective is to address the replacement parts industry’s requirements for skills development and training at retail and workshop level. Over the last three years, Partinform members have participated in an educational initiative whereby they provide training to students who are studying towards automotive trade qualifications. Training takes place at Tshwane South College in Pretoria and at the Anglo American Engineering Skills Training Centre in Johannesburg. All Partinform members support the initiative by providing instruction regarding particular products within their relevant areas of expertise. Specialised, in-depth lectures and demonstrations mean that students learn about aspects of automotive repair – as well as the benefits of using quality replacement parts – to which they would not usually be exposed during their studies. Courses are held three times a year at each of the facilities. The Anglo American Engineering Skills Training Centre caters for seven different trades and produces between 70 and 90 qualified artisans a year.

www.automobil.co.za

UPLIFTING SKILLS

Recently, I visited the Diesel Mechanic and Engineering Skills department – headed up by Dana van Vuuren, who has been trade testing since 1989 – which focuses on diesel powered vehicles and earthmoving equipment.

UPLIFTING SKILLS

On the day of my visit Willem Doman, area manager for Schaeffler South Africa – a member of Partinform – was addressing students on the intricacies of clutch replacement. Schaeffler manufactures LUK clutch kits and, on a global level, is a supplier of clutch kits to 80% of the world’s vehicle manufacturers. The company boasts a top quality reputation – not one of the millions of clutch kits it supplies annually to the industry has failed due to a manufacturing defect.

Interestingly, a LUK clutch kit that you would buy from a spare parts outlet would meet exactly the same quality standards as the item that was fitted to your car when it was new – the company does not manufacture different ranges for OEM or aftermarket supply. On the back of that statement, Doman based his presentation around the question: “Why do clutches fitted by the aftermarket fail more regularly than the clutch that was originally fitted to your car?” He enlightened students as to common complaints regarding replacement clutches, including hard pedal action, an inability to select gears, clutch slipping, and clutch shudder. According to Doman, when gears can’t be selected components such as the

NOVEMBER 2016

TRAINING master cylinder, slave cylinder, pivot points, flywheel and input shaft could be the culprits. A slipping clutch could be caused by factors such as the flywheel not being skimmed or being skimmed to the wrong profile as well as grease on the drive plate. Clutch shudder is often caused by grease on the drive plate facings, an incorrectly skimmed flywheel or a distorted pressure plate, the latter caused by incorrect fitment or over-tightening of the bolts that hold it in place. Doman’s conclusion was that replacing only the clutch represented half the job. “The primary reason for premature failures is that no consideration is given to other components when the vehicle has covered extended mileage.”

factory when the car was manufactured, the entire clutch system needs to be checked and, if necessary, components refreshed. If this is done correctly one should get very similar mileage out of a replacement clutch kit as was obtained with the original clutch.” Students I spoke to found the training useful in that it helped to equip them with information vital to solving the real-world problems which with they would soon have to deal. It also allowed them to learn from mistakes others had made. Each training event is concluded with an interactive pop quiz and all students receive a certificate of attendance that they can add to their CV.

UPLIFTING SKILLS

“In order for the replacement clutch kit to last as long as the unit that was fitted in the

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Partinform and its members plan to continue the training programme into 2017, with plans to expand the initiative. C

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ONLINE The content is generic and will teach the basics and best practice of working on vehicles. All of the training is carried out online with a mixture of video, task sheets, summaries and assessments. The content is available in a variety of modules, from topic groups to automotive levels based on the merSETA curriculum at varying price levels and can be viewed at www.technica-online.com under the courses tab. The training material can also be customised into a training LMS for organizations, adding our material to their own including testing and reporting on a studentâ&#x20AC;&#x2122;s progress.

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TRAINING

Focusing the effort One of the main aims of South Africa’s Automotive Industry Development Centre (AIDC) is to explore solutions focused on overcoming skills shortages in the automotive industry

UPLIFTING SKILLS

kills shortages are widely regarded as one of the main factors that slow economic growth globally. As a result, the AIDC has been established at Rosslyn, near Pretoria, with a view to identifying automotive sectors in which skills deficiencies are manifest, and develop training and development programmes aimed at rectifying the matter. Working through its Skills Development and Training Department (SD&T), the AIDC’s objectives are to: • Address scarce and critical skills in the automotive sector; • Build an NQF Level 3 and 4 talent pipeline programme within the automotive sector; • Enhance trade and artisan development initiatives key to the success of the automotive industry through a collaborative process, thus improving global competitiveness and improving local manufacturing; • Support talent pipeline strategies as feeders into the automotive sector; • Provide mentoring and coaching as well as project management training for students, and develop learning material; • Secure funding to support training objectives; • Attract students who display exceptional matric grades and want to pursue technical careers. The SD&T Department has partnered with merSETA to ensure quality training and development of scarce skills through recognised training centres. Also, the department has cemented relationships with established higher education institutions that include UNISA and Orbit College.

48 NOVEMBER 2016

UPLIFTING SKILLS

Recently, the AIDC staged at its Gauteng Automotive Leaning Centre a joint provincial regional competition for automotive categories in the internationally renowned WorldSkills Competition, which takes place next year in Abu Dhabi. The four-day long event formed part of the organisation’s Open Week and helped to demonstrate how strategic partnerships were needed between industry stakeholders and Government to create an environment aimed at stimulating social enrichment and economic growth.

Other skills and training facilities established by the AIDC include the Ford T6 Production and Production Simulator, where learners are encouraged to enhance their skills using a state-of-the-art simulator model at the motor company’s Silverton assembly plant and a number of B-BBEE Automotive Incubation Centres, where entrepreneurs are given an opportunity to hone their skills while supplying components directly to an OEM production line. The entrepreneurs are mentored during their training periods and graduate from the facility after five to seven years.

The Learning Centre – which provides learnerships programmes to develop artisans as required by OEMs and component manufacturers – also acts as an assessment centre for all trade qualifications; and it offers a Learner Management System (LMS) which is accessible to all learners and stakeholders.

In addition, the AIDC has established the Winterveld Enterprise Hub, where artisans in the automotive industry receive mentoring and training. The hub is aimed at developing township enterprises. Further, the SD&T Department also currently manages a Turnkey Bursary Programme to develop artisans on behalf of Siemens.

www.automobil.co.za

BRAKE SYSTEM TRAINING WITH ATE

Some of ATE’s training props and tools

Alfred Teves Brake Systems (ATE), a member of the Metair Group, is a South African company on a very important mission: to train and upskill Southern Africa’s technicians. ATE travels to workshops, fitment centres and spares shops countrywide, training sales staff and technicians on brake systems for more than 200 days in a given year. Today’s brake systems have electronic controls to enhance efficiency but the basic hydraulics and foundation brakes of a vehicle cannot work properly if it’s not inspected, serviced, and maintained correctly. ATE’s training program deals comprehensively with the modern brake system. The duration of a full technical training session is approximately three hours, depending on the questions posed by participants. Topics include the brake pedal, vacuum booster, master cylinder, brake lines, brake fluid, calipers, pads and discs, brake drums and lining assemblies.

www.automobil.co.za

The ATE training ‘buggy’ contains a functional brake system

Hands-on training is presented by highly qualified ATE technical personnel. Recommendations for best practices are aided by the use of fully-operational visual aids and props. The importance of using the correct tools, equipment and products for the job at hand is also highlighted. Similar braking components are shown and compared to highlight different maintenance procedures that may apply. An example of this is the various designs of brake calipers: fixed, floating and fist type, each with its own repair/replacement procedure. Basic sales staff training takes an hour and is presented at a less technical level. Participants are assessed and issued with certificates upon completion of each session. Businesses interested in ATE training may contact Charl Naudé at 011 898 1800 or via the web site www.ate.co.za AUGUST 2016 -

TRAINING

Applying the skills advantage For dealerships to deliver consistently high levels of service there needs to be a common training process in place that permeates throughout the business, says Mike Kersten, general manager in South Africa of CDK Global

igh employee turnover has been a long-standing issue within the automotive retail industry and it shows no sign of slowing down soon. With consumer expectations continually evolving and new technologies entering the dealership workspace, ensuring staff are properly trained has never been more important. A continuous churn of staff is not only costly for a dealership it can also damage morale among remaining employees and reduce the collective skills level of the team. In today’s automotive retail industry the cycle is recruit, train, leave, rather than recruit, train, remain. To break this cycle, proper training processes need to be implemented as a business development option rather than as a necessity. Todd Tauber, a former vice-president of Enterprise Learning Research at Bersin by Deloitte, believes that “learning and development is at the core of what high impact performing organisations do” and that it can lead to faster growth, lower costs and higher customer satisfaction. For a dealership to deliver a consistently high level of service there needs to be a common training process in place that permeates throughout the business and which is implemented at all levels.

50 - NOVEMBER 2016

High staff turnover will impact a retailer’s bottom line and it can cost a lot more to recruit a new employee rather than invest in an existing one. Once staff members are properly trained to the standard the dealership has set they can also share their knowledge, enthusiasm and skills with co-workers.

UPLIFTING SKILLS

Intern experience Christel Mynhardt describes her intern experience at CDK Global

UPLIFTING SKILLS

The correlation between dealership efficiency and customer experience may be obvious, with more efficient dealerships offering a better experience for the customer, but what may not be so apparent is that both directly link back to training. Staff members who are trained in the correct way will be more efficient and knowledgeable, which in turn will lead to a better experience for the customer. If a customer’s first interaction is with a staff member who has not been properly trained, it may well spell the end of their relationship with that dealership. To help dealerships provide their staff with the required levels of training CDK Global South Africa has implemented a programme of DMS training courses, based both remotely and in the classroom. Training is bespoke to the user’s role requirement to ensure staff can use the system to its full capabilities and help their dealership run more effectively and efficiently. Also, CDK Global supports the government’s intern scheme and has benefited from receiving high quality students who have gone on to become full time members of the team and real assets to the company.

heard about the Internship Programme at CDK Global in October, 2014. I did some research, applied for the position, prepared myself thoroughly for the interview and almost sprained my ankle due to my excited response on finding out I had been selected to join the company as one of four interns in the 2015 programme. Having graduated from college with an Advanced Diploma in Business Management, it was decided my skills set would be best suited in sales and marketing – and I found myself quickly learning not only technical and practical skills, but also gaining vital insight into the everyday working environment of the retail motor industry. I would highly recommend an internship as a first step in the working world; invaluable wisdom is gained. In my time as an intern I have learned many new skills and increased my knowledge with regard to sales techniques, event planning and the process of delivering new automotive solutions to the dealer network and the industry. My internship has lasted 18 months and I was delighted when I found out it was being converted into a permanent position – so much so that I again almost broke an ankle! I now look forward to a long career with the company. This is the start of great things to come.

www.automobil.co.za

Your Dealer Management system is the lifeline of your dealership CDK Global, Evolving the automotive retail experience. Visit www.cdkglobal.co.za

www.automobil.co.za

OCTOBER 2016 -

THE SOLUTION J

ONNESWAY PROFESSIONAL TOOLS hail from the tool capital of the world - Taiwan. It has been a supplier of professional tools for over 33 years, with an established distribution base in over 100 countries worldwide. Jonnesway is the largest tool range, under one brand, in South Africa which caters for the aviation, industrial, automotive and refinishing industries comprising of a complete automotive, hand and pneumatic range. It is the biggest tool company in Taiwan that has won numerous awards for its excellence. The entire Jonnesway tool range meets strict international standards, many exceeding the requirements as set by DIN and ANSI (the European and American bureaus of standards). The strength and precision of Jonnesway professional tools led to the range becoming the brand of choice for leading OEMâ&#x20AC;&#x2122;s; top training centres and prominent automotive groups in Southern Africa. Jonnesway is a world class brand with the Jonnesway professional tools apprentice program being one of our main focuses, promising to provide quality and reliability to satisfy the professional market demands. Being a professional technician in the automotive industry can be compared to being a professional within the medical industry. They work on a body and a heart, made out of steel, that carries the wellbeing of all its occupants. As a patient you would expect a professional service from a professional

52 NOVEMBER 2016

doctor, operating on you with a professional selection of tools. It takes a highly trained individual to perform work on the modern specialised vehicle of today.

preparing them for excellence and once they are qualified, continue with the best as a professional. This is beneficial to all automotive businesses that they might work in.

After extensive research in workshops and training academies incorporating feedback from various parties, we have come to realise that apprentices need a cost effective solution: the best quality and the correct selection of tools from the start of their training, straight through to their highly skilled performance in workshops. Many workshops and fitment centres have seen that the right selection and quality of tools has a massive impact on time, productivity and ultimately profitability.

Jonnesway have implemented tool and tech talks educating the apprentices on the importance of the Jonnesway apprentice program, as we believe that their buy-in is essential. The Jonnesway team believes in nothing less than exceptional service through visits to automotive businesses and assisting technicians with their tool maintenance.

Jonnesway professional tools is currently running an apprentice program in proud association with top training academies such as Imperial, VW, Putco and the NF Apprentices which have made this possible. Each of these fine academies specialise in skills and development through drive and a motive to use professional tools in this highly skilled trade. The aim of the apprentice program is to provide lockable, customised toolboxes for each individual training academy, according to their recommended tool lists. Most importantly, apart from the list, the key solution is that the Jonnesway apprentice program provides apprentices with access to high quality and reliable tools, at a preferential price. This allows them to start with the best from the beginning,

For the past three years Jonnesway has been involved in prestigious automotive skills events, remaining the official tool brand at World Skills 2014, 2015 and 2016. Jonnesway have been chosen to supply the tools required for various categories that consist of auto-body repair; vehicle painting and automotive technology. This competition allows Jonnesway to emphasise the value of tools within regards to skills and development in the motor industry, and the key goal putting professional tools back in the hands of the professional. Despite the competition designed to assess the talents of apprentices, this event educates them on the skills and resources required for this expert trade. World Skills South Africa concentrates on drawing more youth towards the automotive trade, therefore: Jonnesway is not just a tool, but an investment for the future, providing the solution. â&#x20AC;&#x201C; Christie Brill

www.automobil.co.za

NOVEMBER 2016

TRAINING

Skills development and B-BBEE points Recent amendments to BEE codes make the up-skilling of staff members one of the easiest ways to boost your company’s B-BBEE rating for maximum points

round this time of year, organisations are starting to look at their BEE scorecards and assessing where they are likely to gain maximum points. Fortunately, one of the most convenient ways – and one of the most beneficial to your business – is to conduct accredited training which can take the form of short interventions like skills programmes, or longer interventions such as learnerships. Both of these interventions boast significant benefits to both participants and your organisation. Before we discuss these training interventions, let’s backtrack a little. Training is no longer a “nice to have.” It is also no longer simply a way to develop the skills of members of staff. Training has become a business imperative. If you want to do business in South Africa, you need to train your employees. This reality has been legislated in the new BEE Codes of Good Practice. Skills development is a priority element which amounts to 20 points (and 5 bonus points) of the total points on a BEE scorecard. A minimum of 40% of the points within this element must be scored to avoid dropping a level. Companies can score points on skills development only if there is sufficient evidence indicating that black people are being trained in scarce and critical skills. This means that a company can include training conducted on any person who satisfies the definition of black as per the BEE Codes of Good Practise, regardless of employment status. Recent amendments to the BEE codes have many organisations stumped.

54 NOVEMBER 2016

However, when it comes to training, please note the following most important amendments: • Points increased from 15 to 20 (plus 5 bonus points); • Spend has increased from 3% to 6% for total leviable amount (the total annual salary payroll); • Trainees do not need to be permanent employees; • Only 15% of your training spend can be used on internal/non-accredited training; • Learnerships must account for 5% of staff headcount; • If you are able to prove 100% gainful employment you are able to claim up to 5 bonus points; • Disabled learners on training interventions and learnerships can also increase your points per spend.

UPLIFTING SKILLS

While the information may seem a little intimidating, the fact remains that training is probably one of the easiest ways to boost your B-BBEE rating for maximum points! Bearing that in mind, what are your next steps? First, ensure that you have submitted an Annual Training Report and Skills Development Plan to your SETA. It needs to be in by April 30 next year – so you have a little bit of time on hand to prepare the document. Then you need to ensure that you have identified and retained accredited training partners. This is essential if you are going to be able to claim back your Skills Development Levies, and claim your BEE points.

Once you have identified your learners and matched them to relevant accredited short or long training interventions, you will not only benefit from upskilled, motivated and engaged staff, but from the numerous business and financial benefits that training in the South African context offers. Apart from pivotal training, CBM Training also provides short duration, high quality, high intensity training courses to South African companies. Each course is carefully researched to ensure customers’ needs are met. In addition, CBM Training provides onsite training, specifically for larger organisations with multiple delegates. This delivers the benefits of discounted prices, local training and the opportunity to customise a course to a company’s specific needs. CBM Training has full accreditation from the Services SETA (Accreditation Number 057) and is registered as an FET College with the Department of Education (FET Registration number 2009/FE07/111). For further information or to find out how CBM Training can assist you in maximising your B-BBEE points please call us on 011 454 5505 or email nadia@cbm-training.co.za

www.automobil.co.za

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Together www.automobil.co.zamoving Gauteng City Region forward 55 NOVEMBER 2016

BUSINESS MANAGEMENT

UPLIFTING SKILLS

Beginning with the end in mind If you’re aiming to create a saleable business, heed the words of Pieter Scholtz, a leading business and executive coach and South Africa’s master licensee for global franchise company, ActionCoach

he path to becoming truly wealthy is by buying, building and selling great businesses. Indeed, the primary reason to start any business should be to sell it one day. Moreover, you won’t achieve true wealth by owning just one company. The goal should be to buy, build and sell several businesses. In fact, the only scenario in which you’ll want to stay involved with a business is if you are planning to franchise or license it. However, that is a different discussion for another article. Strategic Approach Our approach is to advise entrepreneurs to keep the first business for its passive income while strategically acquiring and building up the next enterprise. Before moving on, however, your first business should be at a place where it can run without you – and still be successful and

sustainable. Hopefully, this generates a healthy passive income and gives you some breathing space to take time finding the right buyer and negotiating the best deal. At this point, you are aiming to get the best price possible and the business needs to be at a point where the buyer just has to move in and start operating. In other words, everything must have been set up for a smooth takeover beforehand. There are a number of key factors that influence the ability to sell your business, and the price that buyers will be willing to pay: • Steady Cash Flow – the ability of the business to generate consistent cash flow, paired with good margins and a large percentage of repeat business, is essential to saleability. • Assets – buyers will look very closely at the number and value of business assets; products, patents, registered

brands, investments, physical assets (movable and immovable) and shareholdings in other businesses that are part of the deal. • People, Processes and Systems – every sustainable enterprise needs robust systems and qualified people. Buyers will be looking closely at these factors and whether the business can run well without its founder. • Scalability – buyers will always want to ensure that the business is scalable so that they can derive further value from it following the sale. They want future leverage, not just additional revenue. • Culture – around 80% of acquisitions fail because of the inability to fully integrate the respective teams into one cohesive unit.

UPLIFTING SKILLS Essentially, you need to start working on the five points from the start, not right at the end! If you can begin with the end in mind – selling the business – you will be prepared when a juicy offer does come your way…

To find out more about promoting your business go to www.actioncoachsa.co.za or call 012 665 1015. For franchise sales: harrywelbycooke@actioncoach.co.za / pieterscholtz@actioncoach.co.za. Pieter Scholtz is the Co-Master Franchisor for ActionCoach in Southern Africa, the fastest growing and largest business coaching company globally. He has successfully assisted countless business owners to significantly grow their profits and develop their entrepreneurial skills. www.actioncoachsa.co.za / 0861 226224.

56 - NOVEMBER 2016

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www.kigima.co.za Workplace accidents happen - First Aid will make the difference Workplace accidents will happen. When your employees complete a comprehensive St John First Aid course they will be able to: • • •

recognise when first aid is needed provide first aid at an emergency scene know when more qualified emergency medical assistance is necessary

We know the importance of having proper, professional skills in an emergency and that’s why at St John we continually revise our courses to ensure they are:

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learner centred suitable for employees with limited reading and writing skills supported by on-screen presentations and lots of hands on practice accredited with the Department of Labour accredited with the Health and Welfare SETA.

Our First Aid training courses include: • • • • • •

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MAY 2016 -

LEGAL EAGLE

Garnishee orders – the way forward The Constitutional Court recently added procedural guards designed to offer protection to people who agree to be served with Emoluments Attachment Orders. Andries Stander, a director at Barnard Incorporated Attorneys in Centurion, discusses the implications

ubsequent to a judgement granted by the Constitutional Court on September 13, RMI4Law has been inundated with calls from employers with questions that deal with Emoluments Attachment Orders (EAOs) – also known as garnishee orders – which apply to their employees. An EOA is an order whereby a debtor’s salary is attached and the employer of the debtor is obliged to pay a specified portion to the creditor. Legislation Unconstitutional In the case of the University of Stellenbosch Legal Aid Clinic and Others v Minister of Correctional Services and Others CCT 127/15, the Constitutional Court handed down a landmark judgment on September 13. The Court ruled, amongst others, on the Constitutionality of Section 65J (2) of the Magistrate’s Court Act. This specific section deals with the issuing of EAOs. Until now, the Clerk of the Court would usually issue an EAO by merely stamping the order. This could result in unfair and unreasonable EAOs as there is no judicial oversight in the granting of the order. The Constitutional Court found that the legislation at the time of its judgment – “current form” – was unconstitutional since it did not make provision for proper judicial oversight. To determine whether the legislation provided for judicial oversight, the Constitutional Court had to determine whether it was the Court or someone else that had the power to issue an EAO. In terms of current legislation an EAO can be granted under the following

circumstances: Either the employee consents in writing to an EAO and the Clerk of the Court issues the order by merely stamping it, or a magistrate authorises the order on application by the creditor. In the last instance the requirement of judicial oversight is met, but where the EAO is issued by the Clerk of the Court merely upon written consent by the employee, there is no judicial oversight. In such instances employees can be subjected to the deduction of unaffordable portions of their salaries, often to the extent that they can barely survive. It was exactly this last consequence the Constitutional Court wanted to avoid. Prospective Orders The Constitutional Court has added procedural guards before an EAO can be issued. From now on only a magistrate may issue an EAO. Before the magistrate grants the EAO the court must be satisfied that the order is just and equitable and that the amount to be deducted from the employee’s salary is appropriate. Even where an employee consents to an EAO, the creditor still has to apply to the court for authorisation, and the EAO will be issued only after careful consideration by the magistrate. The aforesaid amendments should ensure judicial oversight of all garnishee orders granted after September 13, 2016. Pre-Existing Orders Unfortunately for employees who were subjected to garnishee orders before September 13, nothing has changed. The ruling has no effect on existing orders. Employers are therefore still obliged to

deduct from the employee’s salary the amount as specified in the EOA. The Constitutional Court specifically determined that, although certain parts of the relevant legislation – section 65J of the Magistrates’ Court Act 32 of 1944 – was unconstitutional, the effect of its order of unconstitutionality would apply only prospectively, that is to EAOs granted after September 13. In this regard the Constitutional Court confirmed that the situation would be too complex to apply the order retrospectively. However, if an employee believes that the amount being deducted from his or her salary is excessive, an application can be made to a court for a review or a setting aside of the EAO. The employee would have to show that the amount deducted from his or her salary did not leave sufficient funds available on which to provide for dependants. Should employers or employees suspect that garnishee orders have been obtained unlawfully they are advised to immediately seek legal advice to ascertain whether there are sufficient grounds to dispute such orders. Employers and employees must also remain aware of their rights to apply for the rescission of garnishee orders where the amounts deducted are not just or equitable.

Members of RMI4Law enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4Law, call 0861 668 677

58 - NOVEMBER 2016

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NOVEMBER 2016

LABOUR

in an unprotected strike or conduct in the furtherance of an unprotected strike might be a fair reason for dismissal. Should employees participate in an unprotected strike the employer should follow these guidelines: • The employer needs to instruct striking employees to return to work; • If the employees belong to a union, contact should be made with representatives with the aim of discussing the situation as well as the planned course of action to be taken; • If the employees return to work – the strike will be over. If not, and they persist with the industrial action, the employer will be able to issue a first ultimatum; • Should strike action continue, second and third ultimatums should be issued and; • Together with the third ultimatum, a notice of disciplinary action should be handed to the employees.

While disciplinary action can be taken against employees who participate in either protected or unprotected strikes, there are differences between the two that need to be taken into consideration. Douw Breed, a director at Barnard Inc Attorneys, explains

n this article, focus is placed on dismissal of employees who make themselves guilty of participation in an unprotected strike as well as dismissal of employees in a protected strike in circumstances where the duty of good faith towards an employer is disregarded, resulting in derivative misconduct.

with dismissals and industrial action. In circumstances where strike action does not conform to Section 64 of the Labour Relations Act, such action will be deemed to be unprotected strike action which in itself constitutes misconduct. It is imperative to understand not all forms of misconduct warrant dismissal for a first offence.

Schedule 8 of the Code of Good Practice: Dismissal, deals specifically

Section 68(5) of the Labour Relations Act provides that the mere participation

60 NOVEMBER 2016

Crucially, the ultimatum needs to comply with the following requirements: • It should be clear and unambiguous; • Where possible, it should be written in the mother tongue of employees or, if that is not possible, it should be translated for them; • The ultimatum should reach every employee who is participating in the strike action, or their representatives; • It should clearly state what is required of the employees; • It should describe what consequences will hold for employees if they do not adhere to the ultimatum; • Sufficient time must be given to the employees to consider the ultimatum by either accepting or rejecting it; and • The employer should not waive the right to enforce the ultimatum even if the employees return to work. In the matter between Mbele & Others v Chainpak (Pty) Ltd & Others (2016) 37 ILJ 2107 (LC), a dispute ensued regarding wage negotiations resulting in the employees embarking on an unprotected strike.

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LABOUR

In Dunlop Mixing & Technical Services (Pty) Ltd & Others v National Union of Metalworkers of SA on behalf of Khanyile & Others (2016) 37 ILJ 2065 (LC), focus was placed on a breach in the trust relationship between employer and employee. Following a protected strike during which unlawful misconduct occurred in the form of attacks on non-striking colleagues, the company asked strikers to come forward to help to identify the perpetrators of violence. It also obtained a court interdict which aimed at preventing the violent behaviour.

Ultimatums to return to work that were handed to employees were ignored which, in turn, led to the dismissal of a number of staff members. The employees elected to refer the matter to the Labour Court on the basis that the dismissals were unfair “because the company did not issue an ultimatum that was clear; that set out what was required; and which did not provide them with sufficient opportunity to consider the matter and the consequences thereof.” However, the court found that the employees had taken part in an unprotected strike and that the ultimatum issued had conformed to requirements in that it was unambiguous, clear and had contained a warning that cautioned employees of the consequences should they fail to adhere to the stated terms. Accordingly, the court found that the company had complied with items 6 and 7 of the Code of Good Practice and that the dismissal was procedurally fair. From this perspective, the case illustrates just how important it is to issue an ultimatum that is correct in every detail.

However, striking employees took no notice of the plea and the company resorted to disciplinary hearings which resulted in the dismissal of those who were on strike. Importantly, before the hearings, the employer had informed and had notified the striking workers that “failure to come forward and assist in identifying the perpetrators of misconduct will lead to dismissal for derivative misconduct.” The employees referred a matter of unfair dismissal to the CCMA. The commissioner subsequently identified three categories of employees: • Employees involved in direct acts of misconduct; • Employees present during the direct acts of misconduct who failed to identify the perpetrators and were therefore guilty of derivative misconduct which was serious enough to warrant a dismissal; • Those who were not identified as being present during the acts of misconduct and who were therefore not guilty of derivative misconduct and who should not have been dismissed.

the award on review to the Labour Court, contending that the employees had “committed a breach of the trust relationship by failing either to come forward and exonerate themselves by explaining that they were not present and could not identify the perpetrators, or to come forward and identify the perpetrators.” The court found that employees “were under a duty, consistent with the essential trust and confident of the employment relationship, to do more than simply remain silent.” In other words, they had either to come forward and provide the names of the perpetrators, or they had to come forward and exonerate themselves. Failing to do either would make them guilty of derivative misconduct. In its findings, the court reiterated that employers have the right to rely on the duty of good faith in instances that have a direct impact on business interests. Failing to adhere to this duty by remaining silent might result in a guilty finding regarding derivative misconduct, and that is sufficient to terminate services. Clearly, in both protected and unprotected strike action, disciplinary action can be taken against employees. However, mere participation in a protected strike cannot lead to dismissal in the same way that it can in an unprotected strike.

The employer was unhappy about the finding in the third category and took

Douw Breed (BCom (NWU) LLB (NWU)) is a director at Barnard Incorporated Attorneys , Centurion www.automobil.co.za

NOVEMBER 2016

62 NOVEMBER 2016

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NOVEMBER 2016

RMI UPDATE Answers by experts to questions received recently by the RMI! Q: What is the purpose of a cam belt and how often should it be changed? A: The cam belt synchronises the rotation of the crankshaft and the camshaft(s) so that the engine's valves open and close at the proper times during each cylinder's intake and exhaust strokes. The lifespan of cam belts vary depending on the manufacturer. It is best to refer to your vehicle handbook for a guide on when the cam belt should be changed. Q: When should my vehicle’s brake pads be changed? A: Brake pads should be replaced at 70% of total wear to ensure the safety of the driver. It’s also important that your mechanic inspects the brake discs for wear, so ensure you suggest that this is done.

FAQs

Q: What fluids need to be changed during a service? A: Apart from the engine and gearbox oil, it is also important to change the vehicle’s brake fluid and radiator coolant at the correct intervals. Ask your mechanic how often this should be done and whether it was done when your car was last serviced. Q: What is the usual procedure regarding the carrying out of work that was not initially requested by a customer? A: It is a good idea to ask your mechanic to contact you with a quote, should he find any other work that needs to be done. The quote should include an approximate cost for the parts and labour. Remember that preventative maintenance through early detection can prove more cost effective in the long term.

Managing the risk of HIV infection Activities that put a person at increased risk of HIV infection typically include: • Having unprotected anal, oral or vaginal sex (not correctly using a latex condom or dental dam) with a person who has HIV or whose HIV status is unknown; • Sharing injection drug needles or "works" with a person who has HIV or whose HIV status is unknown. • Women with HIV infection can pass the virus to their babies during pregnancy, delivery and through breastfeeding. Health care workers may be exposed to HIV through needle-sticks and other blood contact. Does everyone who is exposed to HIV get infected?

- NOVEMBER 2016

No. Infection may depend on how the virus enters the body and the amount of virus that enters the body. But it is important to know that infection may occur after one exposure to HIV infected blood, semen or vaginal secretions. Exposure can occur during unprotected sex or sharing injection drug needles or "works." Are men and women both at risk for HIV infection during vaginal sex? Yes. A growing number of women have become infected through vaginal sex with men who are HIV infected. Though women are at greater risk for HIV infection through vaginal sex than men, HIV is found in vaginal fluids and menstrual blood and can be transmitted to male partners, particularly if there is a cut or sore on the penis.

Can a person with HIV who is not sick or who has no symptoms transmit HIV? Yes. Initially, most people with HIV infection have no symptoms and may not be aware they are infected. Any person infected with HIV can transmit the virus to another person through sexual contact or sharing needles or drug injection equipment.

Contact Redpeg for accredited HIV/AIDS workplace training, consulting and research. tim@redpeg.co.za | 0861 REDPEG or (011) 794 5173 | www.redpeg.co.za)

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MEMBERUPDATE

The RMI welcomes these new businesses into membership

Member’s Trading Name

City/Town

Member’s Trading Name

City/Town

Member’s Trading Name

Highway Tyres

Mdantsane

AE Workshop

Alberton

Auto Electrical Centre

Cape Town

Imperial Technical Training Academy

Germiston

Auto Electronics Diagnostics

Nelspruit

City/Town

Pinegrove Rentals & Leasing

Potchefstroom

Imperial Truck Hire

Kempton Park

RB Logistics

Autoworld Goodwood

Interpark Milpark Galleries

Johannesburg

Isando Service Centre Bedfordview

Bedfordview

SA Auto Parts

Cape Town

Scotty’s Midas

Stellenbosch

Siyazama Auto Engineering

Pinetown

Skynet Fitment Centre

Kempton Park

Battery Centre Durban South

Durban

BGA Auto & Tyre

Cape Town

Jaco’s Engineering Vryheid

Durban

Kuilsriver

Car Service City Jet Park

Boksburg

Kabamakgopa Engineering Drives

Polokwane

Sparkling Auto Care Centre Centurion

Pretoria

Car Service City Meadowdale

Germiston

KZ Auto Repair Centre

Johannesburg

Splash Towing

Kwa Mashu

Car Service City Northend

Port Elizabeth

Star Centre Elliot

Elliot

Cimc Vehicles South Africa

Germiston

Landy Clinic

Vereeniging

Starline Bodyshop

Kempton Park

Lereko Isuzu Bloemfontein

Bloemfontein

Lydenburg

T3 Auto Repairs

D Daly Kustomz

Klerksdorp

Lydenburg Auto Care

Definitive Edge Auto

Edenvale

Diener’s Auto

Port Elizabeth

M & S Auto

Pinetown

Thekweni Auto & Propshaft

Durban

DK 24hrs Towing & Scrapyard

Polokwane

Mahindra George

George

Trakshyn Auto

Stanger

MM Motorneers

Centurion

Truck Stop City

Strand

Pretoria

TDS Pretoria

Eqstra Flexi Fleet Workshop Clayville

Olifantsfontein

Mobile Glazers

Randburg

TSB Auto

Randburg

Eqstra Flexi Fleet Workshop Isando

Kempton Park

Modjadjiskloof Autocrew

Modjadjiskloof

Tsimuni Panel Beaters & Projects

Pretoria

Molopo Automobil Group

Schweizer Reneke

Motor Mecha

Cape Town

Ultra Panel Beaters

Mthimkulu Trading & Projects

Krugersdorp

F Fedauto Dundee

Dundee

G Galaxy Auto Electrical

Pietermaritzburg

White Wolf Performance

GBSC Pretoria

Nathan’s Auto Centre

Northam

Newcastle Panelbeaters

Newcastle

H Booysen Auto & Mech Maintenance

Pinetown Cape Town

Newcastle

ADVERTISERS AUTOMOBIL - NOVEMBER 2016 EDITION CLIENTS

CONTACT

WEBSITE

PAGE

Aer O Cure

011 444 6454

www.aerocure.co.za

OBC

Abandoned Solutions

073 016 8424

With a membership of 7 500, the RMI provides a very effective 40

Africa Automotive Aftermarket Solutions

011 879 6000

www.aaas.co.za

15 & 47 collective voice that gives members considerable clout in negotiating

Alfred Teves Brake Systems

011 898 1810

www.ate.co.za

Audi Parts

0860 434 838

www.audi.co.za

28 & 29

Autocosmos Biz (Electrolog)

012 327 6210

www.autocosmos.co.za

Automobil Association

011 799 1068

www.aa.co.za

Automotive Industry Development Centre

012 564 5033

www.supplierpark.co.za

better trading conditions. As the lead voice in the motor industry, the RMI is a member-driven organisation that constantly 65 seeks solutions to concerns raised by members 46 in the day-to-day running of their businesses. 55

CDK Global

011 998 6000

www.cdkglobal.co.za

Ctrack

012 450 2222

www.ctrack.co./za

Executive Transmissions

011 609 4484

www.executivetransmissions.co.za

Financial Intellegence Centre

012 641 6000

www.fic.gov.za

Gondolier Automotive Technologies

011 704 4444

www.gondolier.co.za

52 & 53

Kigima Auto Electrical Training Centre

012 327 2586

www.kigima.co.za

Merseta

010 219 3000

www.merseta.org.za

Motor Industry Staff Association

011 476 3920

www.misa.org.za

Moto Health Care

0861 000 300

www.motohealthcare.co.za

10,11,18,19

Rose Foundation (NORA)

021 448 7492

www.rosefoundation.co.za

Sammitr

www.sammitr.co.za 7

Silver Falcon Trading

083 628 2288

www.hurricaneauto.co.za

62 & 63

St John

011 646 5520

www.stjohn.org.za

Snap On Africa

0861 762 766

www.snapon.co.za

IFC

Toyota South Africa Motors (Pty) Ltd

011 809 9111

www.toyota.co.za

42 & 43

Trysome Automotive

011 823 5650

www.trysome.cc

Volkswagen Parts

0860 434 737

www.vw.co.za

36 & 37

Willard Batteries

011 706 7184

www.willard.co.za

Wolf Oil

www.wolfoil.com

IBC

BENEFITS OF BELONGING

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NOVEMBER 2016

TALKING POINT

The rush for 5G Big 3 Bavarian manufacturers believe that 5G will be key for connected infotainment and mapping for selfdriving cars. TU-Automotive’s Andrew Tolve reports on new developments on the connected vehicle front

he more connected cars become, the more data they need at faster speeds and greater reliability. This is the promise of 5G and the founding purpose behind the new 5G Automotive Association, a joint collaboration between global telecoms and carmakers.

Speaking of HERE, the company announced recently that its Open Location Platform will be commercially available from next year. The platform harnesses real-time data generated by the on-board sensors of connected vehicles to create a live depiction of the road environment.

The founding members are Germany's big three of Daimler, Audi and BMW, along with Ericsson, Huawei, Intel, Nokia and Qualcomm. The association says that it’s open to more partners.

Motorists will be able to access this view of the road through four services that provide information on traffic conditions, potential road hazards, traffic signage and on-street parking. No word on pricing yet, but HERE’s biggest customers for the platform are expected to be carmakers themselves.

Two things are going on here. The first is that 5G is vital for realising connected infotainment and the continuous stream of high-quality data and mapping needed for the self-driving car revolution. Even though 5G technology is already developed, telecoms are saying that existing networks won’t be upgraded until 2020 at the earliest. Automakers want to expedite that.

The Renault-Nissan Alliance enlisted the support of Microsoft to create new services for the connected car. Built on the Microsoft Azure cloud platform, the services will offer everything from advanced navigation to predictive maintenance to remote monitoring and over-the-air updates.

Second, tech companies like Uber and Google are poised to displace traditional automakers in the self-driving car era and automakers want to stop that by partnering with other tech companies as quickly and prudently as possible. It’s no coincidence that Daimler, Audi and BMW were the same three to outbid Google and Uber in acquiring mapping company HERE last year.

66 NOVEMBER 2016

Renault has promised a fleet of selfdriving cars by 2020, so Microsoft will be designing some specific services for these cars, such as integrating productivity tools like PowerPoint into the dashboard. Mercedes-Benz is working on an Airbnb for cars. The new car-sharing scheme is for Mercedes and Smart car owners and is already undergoing trials in San Francisco, with a second set of trials scheduled to follow in Germany. The online platform

allows owners to enter dates when their car will not be in use – such as when they’re on a business trip or a family holiday – and other members can reserve those cars for personal use. No physical handover is required. Members can unlock and drive participating cars with their smartphones. On the fleet front, Masternaut has landed a big partner in the PSA Group, which has agreed to integrate the company’s productivity services across the PSA European line-up of commercial vehicles starting in 2017. Specific focus will be on optimising the cost per kilometre of vehicles, boosting productivity, improving driver safety and reducing the fleet’s carbon footprint. In other news on the connected front, TomTom has debuted its new On-Street Parking service, which shows drivers the average search time for a spot in specific areas and highlights where drivers are likely to have the best luck. The service will be initially available as a data feed for 25 cities in Europe, with additional geo-expansion to follow. On-Street Parking will live alongside TomTom’s existing Off-Street Parking information service already available to TomTom customers and licensing customers.

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RELEASE THE FULL POTENTIAL

Champion are the lubricants of choice whenever outward performance is dependent on inner force. Champion lubricants are specially formulated to ensure Superior Shear Stability. So they can withstand the extreme forces, pressure and strain of increasingly powerful engines.

CHAMP IONLU B ES .C OM

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NOVEMBER 2016

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Automotive Bodyshop Equipment Aer-o-cure PTY (Ltd) • SADC Registered Manufacturer and Exporter 8 Lees Street, Wynberg, 2090, Johannesburg, South Africa. PO Box 137 Strathavon, 2031

68 NOVEMBER 2016

GraphicWerx • AOC_GYS_AutoMobil_3218

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

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* Product / Colour may vary from image provided, subject to stock availability. (E&OE)