FEBRUARY 2017
HOLOGRAPHIC TECH Advancing vehicle lighting
Puncture repairs
MIWA IN Getting serious PERSPECTIVE about standards
Benefitting from consumer trends
THE BREXIT EFFECT
Implications for SA's automotive industry SAPRA: Putting fuel retailers first RMI UPDATE: AIDC LOOKS TO RAISE SA’S AUTO COMPETITIVENESS; GETTING SERIOUS ABOUT TYRE
www.automobil.co.za STANDARDS; MAKING A DIFFERENCE; MESSE FRANKFURT GROWS ITS BRANDS; LEVIES UPDATE FROM THE NRCS; PETRONAS LAUNCHED IN SA; INDUSTRY LOSES A LEGEND; TAKING CARE OF YOUR GREATEST ASSET
FEBRUARY 2017
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22 -FEBRUARY NOVEMBER 2014 2017
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CONTENTS – FEBRUARY 2017 COLUMNS 5 Driver’s Seat: Jakkie Oliver, CEO of the RMI 7 Editor’s Letter: Wynter Murdoch 9 Hot Stuff: New product showcase 60 Frequently Asked Questions: Answers from experts 66 Tailpiece UPDATES 12 News Editor: Wynter Murdoch wynter@thefuture.co.za
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Putting fuel retailers first
34
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
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Reuben Van Niekerk reuben@thefuture.co.za
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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
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RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Denice Grobler, Shamika Singh, Danelle Van Der Merwe, Marwaan Davids, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman
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).
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The Brexit Effect
Developments generated by the UK’s severing of ties with the European Union’s single market have wide implications for South Africa’s automotive industry
FEATURES 28
Looking to the future
36
B-BBEE: What to expect in 2017
42
Assessing the African market
44
Some leaders of South Africa’s motor industry believe that an increasingly positive economic outlook will translate into market improvements the second half of 2017 What changes are likely on the Black Economic Empowerment front during 2017? Africa is trying hard to place itself on the automotive roadmap, says Ryan Bax, Industry Analyst for Mobility & Frost & Sullivan Africa
Customer loyalty and retention
Bringing back the feel-good factor to customers can lead to long-lasting, trusting and committed relationships
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Why recalls happen
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Advanced vehicle lighting
52
Defining an employee
54
The Doctrine of Subrogation
56
Building a business dream-team
Automobil is available to purchase from the publishers at R25 a copy. 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.
AIDC looks to raise SA’s auto competitiveness; Getting serious about tyre standards; Making a difference; Messe Frankfurt grows its brands; Levies update from the NRCS; Petronas launched in SA; Industry loses a legend; Taking care of your greatest asset
COVER STORY
Publisher: Richard Lendrum richard@thefuture.co.za Production: Mabel Ramafoko mabel@thefuture.co.za
SAPRA is a well-known and respected petroleum industry organisation. Viv Corinaldi, the associations’s acting director, outlines some of the key objectives and activities of the RMI-affiliated body
If something can go wrong with a motor vehicle – it will, says Jake Venter Holographic technology becomes a hot concept in vehicle lighting
It is common for employers to utilise someone as an employee but, in turn, contend that the person is an independent contractor. Douw Breed, explains why he advises against it It is a reality that, due to the high number of traffic accidents on South Africa’s roads, the average motorist will at some time or another make an insurance claim and undoubtedly be confronted with the term subrogation, Izak Viljoen explains it meaning Factors and circumstances that turn a group of employees into a dream-team of top performers are far from an exact science – but these are five steps you can take to make an outcome of excellence much more likely, says Fergus Ferguson
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BENEFITS OF BELONGING A short summary of the benefits of RMI membership
The RMI has represented the retail motor industry and its members for more than 100 years. With more than 7 500 member businesses, our unity is our strength. RMI representation at often volatile and disruptive centralised wage negotiations. Professional industrial relations advice by expert specialists, ensuring procedural and substantive fairness when disciplining staff. Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses. Chairing of disciplinary hearings and AUTOMATIC entry and representation at the CCMA, DRC and Labour Court. Representation at various MIBCO and Industry-related Boards and committee structures.
Affiliation to reputable organisations recognised by Government, big business, consumers and relevant stakeholders like Business Unity SA (BUSA). Protection against one-sided legislative changes or new laws and regulations. Exceptional CPA support and member assistance during defence cases at the National Consumer Commission (NCC) and the Motor Industry Ombudsman of South Africa (MIOSA). Facilitation of a business-to-business complaint where both parties are RMI members, with a complaint resolution rate in excess of 95%. Quality and Standards function – representing the retail industry at various South African Bureau of Standards (SABS) committees and working groups. Representation at the National Regulator for Compulsory Specifications (NRCS), defending our industry when compulsory specifications and standards are compromised.
The informative Automobil magazine and weekly web letters that facilitate two-way communication and create consumer and industry awareness. The RMI is regularly invited to comment on industry topics by both print and broadcast media, and participates in and hosts numerous conventions and shows. Associational accreditation ensures ongoing development and implementation of commercial value propositions specific to the association. Training needs and representation via merSETA and W&RSETA. We actively drive industry-wide training and apprenticeship issues through our position on the merSETA Board and our involvement with the Technica manuals. Representation at the Moto Health Care Fund, Industry Provident Funds and the Sick, Accident and Maternity Pay Fund. The RMI offers industry-specific products like RMI4BEE / RMI4LAW / RMI4OHS /RMI4SURE.
Need to get hold of the RMI? Turn to Page 8 of this issue for all the contact details
4 FEBRUARY 2017
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DRIVER’S SEAT
The year ahead 2017 will most certainly be another trying year for not only the motor industry, but also for the South African economy as a whole, says Jakkie Olivier, CEO of the RMI
F
or the third successive year, new vehicle sales in South Africa have recorded a year-onyear decline. During December 2016, NAAMSA released the 2016 figures for new vehicle sales and some historical new vehicle sales statistics. Year-on-year car sales figures have widely been used as one of the leading economic indicators for the South African economy and that’s why we have reason to believe that 2017 could be a challenging year for the domestic automotive industry. If we take into account the extreme difficulties that the economy faced last year, this might not be the best news with which to start the new year. According to NAAMSA, the main contributing factors to 2016’s low sales performance were: • The slowdown in the domestic economy; • Above average new vehicle inflationary pressure; • Increases in interest rates; • Pressure on household disposable income; and • Low levels of consumer confidence.
Compared to 2015, total vehicle sales during 2016 fell by 11,4%. The 2016 new vehicle sales in volume terms are at levels recorded in 2010/2011, an indication of the challenges our members and industry at large had to endure last year. The impact of declining vehicle sales has severe consequences on the rest of the automotive industry due to, amongst other things, the ever escalating pressure on dealer margins that will be further burdened by the competitive trading conditions which currently prevail. Tough economic times and strenuous trading conditions for smaller businesses in particular, coupled with elevated political tension and uncertainty, increases in administrative costs and taxes, and low business confidence means affiliation to business associations like the RMI is becoming even more critical as a business imperative. The RMI’s membership has increased satisfactorily during 2016 and we are determined to continue to improve the Organisation’s products and services to assist members and industry through the demanding economic and trading conditions. The RMI’s plans to enhance our operating model are at an advanced
stage and certain changes for the betterment of members and industry are due for implementation during the first six months of 2017. Our approach is to remain optimistic about the future. Positive thinking and attitude generally results in positive outcomes – because our perception of things becomes a reality. Positivity is a choice and the RMI is opting to embrace 2017 and continue to be bullish about our future. Remaining positive also means being realistic and 2017 will most certainly be another trying year for not only the motor industry, but also for the South African economy as a whole. It is, however, up to all of us to decide what we are going to do to make 2017 a good year for all the right reasons. With the festive season over, we trust that going into 2017, industry and leadership will share our positive attitude and that we are all ready to approach the future with renewed energy. We wish all a very successful and prosperous 2017 – together we will win the race and celebrate our collective podium performance.
For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300
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FEBRUARY 2017 -
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CONSTITUENT ASSOCIATIONS Who do they represent and what are their objectives?
T
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 - FEBRUARY 2017
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EDITOR’S LETTER
New year, new rules
B
ritish Prime Minister Theresa May’s decision to implement a “hard” Brexit and leave the European Union’s single market – coupled with US President Donald Trump’s stated intention to renegotiate the North American Free Trade Agreement – have tended to dominate business media headlines in past weeks. Since South Africa’s most important trading partners are committed to changing the way they do business, consequences for local exporters will be significant. Accordingly, this edition of Automobil focuses on some of the broader implications that Brexit could have for South Africa from an automotive perspective. The issue also looks at prospects for the local industry in 2017. While new vehicle sales declined for the third consecutive year in 2016, some automotive leaders are hopeful that, in the second half of this year, market conditions will begin to show signs of recovery. Among the optimists is Mike Whitfield, President of Naamsa, who believes that not only will South Africa’s economy
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begin to improve before 2018, so too will the economies of countries to the north. With local exports of vehicles into Africa having fallen over the past two years in the face of tumbling oil and commodity prices, he believes that an upswing is imminent and cites market revival in Kenya, where Volkswagen has begun to assemble vehicle kits shipped from South Africa, as a positive example. “One thing about Africa,” Whitfield says, “as fast as economies go down, the upside can be just as dramatic. Some countries could have double-digit growth this year – I remain positive.” On the subject of growth in African markets, a recent assessment conducted by Ryan Bax, Industry Analysist for Mobility at Frost & Sullivan Africa, indicates that the continent is trying hard to place itself on the automotive roadmap. He says the average level of motorisation in Africa remains the lowest globally at an estimated 44 vehicles per 1 000 inhabitants, with new vehicle sales – at just 1,35 per
1 000 –lagging significantly behind those of other international markets. According to Bax, if new vehicle sales rose to seven per 1 000 inhabitants, Africa would become the world’s fourth largest new car market after China, the USA and Europe. “It is this potential that has enticed automakers into Africa,” he says. The RMI, too, remains positive about upcoming prospects for South Africa’s automotive industry. As CEO Jakkie Olivier points out in his Driver’s Seat column: “Our approach is to remain optimistic. Positive thinking and attitude generally results in positive outcomes – because our perception of things becomes a reality. Positivity is a choice and the RMI is opting to embrace 2017 and continue to be bullish about our future.” I trust that you will enjoy reading this edition of Automobil. Wynter Murdoch Editor
FEBRUARY 2017
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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
TDAFA, ACRA Hedley Judd hedley.judd@rmi.org.za
Facebook.com/AutomobilSA
TRAINING, TRANSFORMATION & ENTERPRISE DEVELOPMENT Vacant SADFIA Louis van Huyssteen louis.vanhuyssteen@rmi.org.za
@AutomobilSA
ERA Pieter Niemand pieter.niemand@rmi.org.za NAZA Julian Pillay julian.pillay@rmi.org.za MPEA, MIMA Erwin Stroebel erwin.stroebel@rmi.org.za
www.rmi.org.za
MDA Jeff Molefe jeffrey.molefe@rmi.org.za
RMI PARTNERS 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 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 Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194
NADA Gary McCraw gary.mccraw@rmi.org.za VTA Joy Oldale joy.oldale@rmi.org.za
RMI REGIONAL OFFICES
SAMBRA Edwin Martin edwin.martin@rmi.org.za
Highveld: Jeff Molefe jeffrey.molefe@rmi.org.za Randburg: 011-886-6300
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
SAPRA Viv Corinaldi viv.corinaldi@sapra.co.za
8 - MAY 2015
TA
Vehicle Testing Association
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HOT STUFF New alloys from Tiger
Putting out the flames when the seal on the Fire Stryker is broken it releases its contents, and devours the oxygen in the immediate vicinity.
Tiger Wheel & Tyre has unveiled six new alloy wheels in its TSW range. All rims have a black finish and are named Storm (available in 17- and 18-inch sizes); Rebel (17- and 18-inch); Python (17-inch); Quad (14inch); Rogue (17-inch) and Phantom (17- and 18-inch.) The Quad’s face is machined, while the Rogue features a matt finish. The Phantom has a diamond cut face. In a statement, the company says that since there’s no reinventing the wheel, the challenge for TSW is to keep its styling fresh and unexpected. To learn more about the wheels, log on to www.twt.to or visit your nearest Tiger Wheel & Tyre store.
NEW PRODUCTS
The extinguisher is said to be especially well-suited to electrical and fuel fires and is also extremely safe as it isn’t pressurised like a conventional extinguisher. Automotive Technology Specialists (ATS) has recently taken delivery of fresh stock of Fire Stryker – a revolutionary, single-use fire extinguisher. Approved by Motorsport South Africa as an alternative to a conventional fire extinguisher in competition vehicles, the Fire Stryker is also idea for cars, light commercials, caravans, campers and even watercraft. Indeed, every kitchen, garage and workshop should have one.
The 8B model has an emission time of 50 seconds yet weighs only 275 grams and can be kept in the glove compartment or door pocket of any vehicle, or alternatively attached to a flat surface inside the vehicle with the supplied mounting clip. There’s also a larger, 13B model, which emits potassium nitrate for 100 seconds. Retail prices are R535 and R620 respectively. For information contact ATS on 011 670 8400.
Not much larger in diameter than a broomstick and between 25cm and 33cm long depending on model, Fire Stryker uses a blast of potassium nitrate to effectively kill a fire in one easy point and squirt application. Potassium oxidizes rapidly in air:
Remembering an icon In years past the Lancia Delta HF Integrale was deemed to set the standard for rally cars around the world. Owners and fans of the car that celebrates its 30th birthday this year can now commemorate the legend with a high-quality, matt black Integrale anniversary chronograph. The high-quality wristwatch is manufactured in Germany and features a sporty design. The electronically blackened stainless-steel case has a diameter of 43mm and incorporates a fiery red watch face that carries a graphic of the rally car and an Integrale signet. The manufacturers claim the watch not only keeps time with quartz precision, its chronograph functions also let the wearer accurately clock sector and lap times. The watch sells for €149 (about R2 150) and can be ordered at www.69pitstop.com.
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FEBRUARY 2017 -
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LIFE IS UNPREDICTABLE.
YOUR COVER IS NOT. A flood of unexpected out-of-pocket costs associated with co-payments and penalties can quickly lead to financial ruin! Don’t be caught unprepared… at Moto Health Care we assist our members with optimising their benefit utilisation.
10 - SEPTEMBER 2016
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TIPS FOR MANAGING YOUR CHRONIC MEDICATION AND HOSPITAL BENEFIT: Chronic
Check if your option specifies the use of a network provider as a co-payment will apply at a non-network provider All options have a specific medicine formulary. Using a non-formulary medicine can attract a co-payment
Hospitalisation
Always ensure you pre-authorise hospitalisation before you are admitted
View your 2017 benefits, network provider lists and medication formulary by visiting
www.motohealthcare.org.za or call
0861 000 300 for all your healthcare needs.
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SEPTEMBER 2016 -
11
NEWS
Ford SA recalls Kuga 1,6-litre
Ford’s Jeff Nemeth… “the safety of our customers is our top priority”
F
ord South Africa has announced a recall of 4 556 units of its 1,6-litre Kuga model, sold between December 2012 and February 2014.
He said the NCC would monitor Ford’s progress for the duration of the recall period, and had issued instructions to the company for a report back on a bi-weekly basis.
Affected cars require components in the cooling system to be replaced and software updated. The recall has been implemented following an approach to the company by the Government’s National Consumer Commission (NCC) in the wake of media reports of underbonnet fires in a number of Kugas.
Jeff Nemeth, CEO of Ford South Africa, said that, based on current data, engines of affected models had been found to be overheating due to a lack of coolant circulation which, in turn, could cause the cylinder head to crack, resulting in an oil leak. “If the leaking oil reaches a hot engine surface, it can potentially catch fire,” he said.
The role of the NCC is to ensure the safety of products sold locally. “A product that poses a risk to consumers has no place in South Africa,” said its director, Ebrahim Mohamed. “If Ford had not issued its voluntary recall now, the NCC would have made it mandatory.”
12 - FEBRUARY 2017
In a statement, Ford said it was aware of 39 incidents of under-bonnet fires involving the Kuga 1,6 and had examined all units, sending engines and even entire cars to its headquarters in the United States for analysis.
“There have been zero injuries to drivers or passengers in these 39 cases,” Nemeth said. “At this point, the case in which Reshall Jimmy burnt to death in his Ford Kuga in 2014 is not believed to have been caused by an under-bonnet fire.” However, Jimmy's family has established through private forensic investigators that the fire in the vehicle started behind the dashboard on the passenger side. They have vowed to make Ford accept responsibility for the death of Reshall and have instituted civil proceedings against the company. According to Nemeth, inspection to the 39 units with fire damage as well as other 1,6-litre models examined as part of voluntary safety inspections allowed Ford to pinpoint the cause of the fires.
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NEWS However, the company was still trying to determine exactly why the cooling problem had manifested itself only in South Africa and not in other markets where the derivatives, which are manufactured in Spain, had been sold.
Bridgestone plant shuttered Young said that by cutting off electricity supplies to members of the BIA, the Madibeng Municipality had directly violated the conditions of the court order.
Nemeth said Ford was committed to keeping customers mobile and would provide courtesy cars for owners of Kugas whose vehicles were affected by the recall. He said repairs could take some time as Ford was currently experiencing a shortage of required parts. Improvements to affected vehicles had been designed to make cooling systems more robust and would include improved early warning systems for indications of engine overheating. However, a Ford representative said data was still being gathered, pointing to the possibility that modifications needed were more substantial than those disclosed by the company – an indication that customers could find themselves behind the steering wheels of courtesy cars for longer than anticipated. On the question of whether the overheating fault could affect the lifespan of the vehicles, Ford representatives responded that they did not believe it would. In response to questions on how the company would deal with the cars that had suffered fire damage, Nemeth said that each case would be assessed on merit. “Our top priority at this stage is the safety of our customers,” he said. Though other derivatives in the Kuga range were said not to have be affected by the overheating problem, company representatives said anything learnt from on-going investigations could be used to improve all models if necessary. Ford representatives declined to comment on the cost implications of the recall programme.
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Gavin Young… Bridgestone considering further legal action
E
lectricity to tyre maker Bridgestone’s Brits plant was unlawfully disconnected last month by the Madibeng Municipality, shutting the plant for four days. The facility employs more than 800 people and was closed from midday Friday, January 13 until the evening of January 16 after the municipality defied a court interdict preventing it from disconnecting the factory’s power. Bridgestone is the world’s largest tyre maker, with over 180 manufacturing and research facilities in 25 countries. Its South African arm includes two tyre manufacturing plants, numerous satellite offices and a network of over 300 commercial and retail outlets. The company, a member of the Brits Industrialists Association (BIA), was one of the applicants which won an interim interdict against the Madibeng Municipality in 2014, which successfully challenged electricity tariff increases pending a court review. Gavin Young, the company’s CEO, said: “Until the review is heard, Bridgestone’s electricity tariff is the figure determined by the court in the interdict.”
“On January 16, an urgent application for contempt of court was brought by members of the BIA in the North Gauteng High Court in Pretoria,” he explained. “The judge in the matter found in favour of the BIA and issued an order directing the municipality to restore electricity by 18h00 that evening.” Young added that Bridgestone had paid all amounts due for its electricity consumption at the tariff set by the court. “The unlawful cut off prevented us from conducting our business,” he said. In Young’s view, the Madibeng Municipality should have been more sensitive to the impact of its actions on the broader community, with Bridgestone employees being the breadwinners for thousands of residents in the Madibeng area. “The cut off placed livelihoods in jeopardy and had the potential to harm our standing with Bridgestone’s Japanese parent company,” he said. “It is essential for investor confidence that arms of government operate within the law.” Young said Bridgestone had not ruled out further legal action against the Madibeng Municipality to recover the costs of the shutdown and lost productivity. “Now that the plant has been restarted, we will begin to quantify our commercial losses, and our executive team will be taking legal advice on the relief available to us,” he said.
FEBRUARY 2017
13
NEWS
Accolade for Brink SA’s Gutridge
M
ark Gutridge, managing director of Brink Towing Systems South Africa, has added a similar role at Brink Towing Systems United Kingdom to his portfolio and is now in charge of tow bar production facilities on two continents. The Birmingham, UK plant – which assembles kits imported from Holland – is the sole OE supplier of tow bars to Land Rover and part of Gutridge’s mandate is to establish a manufacturing facility similar to that in South Africa.
Says Gutridge, who will be racking up a serious number of air miles in the coming months: “This is an exciting new challenge, and what has been applied in turning the Pietermaritzburg business into such an important part of the Brink global network will certainly help me in the UK. “At Brink we strive to provide our customers with the perfect link between vehicle and trailer so strength, quality and integration are all key factors.”
A mechanical engineer, Gutridge, 43, has Gutridge points out that been involved in the the modern tow bar is a Mark Gutridge Pietermaritzburg technically sophisticated operation since 2006 in combination of hardware which time monthly production has and software, particularly in how it grown from a couple of hundred units works with the mechanical structure of to several thousand. Ford uses Brink tow the vehicle. bars almost exclusively for Ranger LCVs built near Pretoria and Toyota in Durban In addition, its wiring system must also uses Brink as a supplier for the Fortuner. integrate with the vehicle’s electronics if full advantage is to be taken of modern With the addition of two more trailer recognition systems. sophisticated automated welding robots – the total is now six – an investment “Brink is a dominant force in tow bar of R3,5-million in May last year has design and manufacturing worldwide, pushed capacity at the Pietermaritzburg supplying roughly 300 000 units to plant to 100 000 units a year. OEMs and a further 700 000 units to the aftermarket each year,” says The company employs 56 people Gutridge. “It is a great honour to be and has received several awards, the part of an organisation which plays such most recent of which was the Small an important role in the automotive Business of the Year Award from the industry and supplies a range of Pietermaritzburg Chamber of Business, products which play such a critical role in November last year. in the safety of road users.”
14 - FEBRUARY 2017
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New Tyre Changer & Wheel Balancing Range From Bosch TCE 260 PN 0 986 AT0 790 Automatic tyre changer Economical product for passenger cars / light commercial vehicles Bigger clamping size up 26” Rim width up to 4 - 13" (100 - 330mm) Round shape central plate Optional helper arm for UHP, RFT tyres 220V www.automobil.co.za
WBE 260 PN 0 986 AT0 789
Economical product for passenger cars / light commercial vehicles Ergonomic design Wheel diametre up to 41” (1050mm) Internal lighting for weight attachment Safety cover Large pedal design for foot brake 220V
www.bosch.co.za
For more information contact: NOVEMBER 2016 - 15 Nhlanhla Maseko nhlanhla.maseko@za.bosch.com
NEWS
Turbo’s golden age?
H
oneywell’s recently released Transportation Systems Forecast for 2017 sees automakers continuing to adopt turbocharging technology to the tune of 48% of annual global sales by 2021, up 9% from last year’s estimate. The increase, combining both passenger and commercial vehicles, would add more than 232-million turbocharged vehicles globally between 2017 and 2021 – a rise of 35% compared with today’s total. “As emission regulations continue to tighten, mature automotive markets like the United States and high-growth regions like China and India are turning to turbochargers to help provide cleaner transportation,” says Olivier Rabiller, president and CEO of the Honeywell division.
Volkswagen settles US claims
V
olkswagen has agreed to pay a total of $4,3-billion (about R59-billion) in fines and penalties after reaching a settlement with the United States government regarding the company’s contravention of emissions laws. The agreement includes the appointment of an independent monitor for three years to strengthen ethical control systems within Volkswagen’s network.
Matthias Müller…making changes to the way Volkswagen thinks and works
16 FEBRUARY 2017
CEO Matthias Müller said in a statement: “Volkswagen deeply regrets the behaviour that gave rise to the diesel crisis. We will continue to press forward with changes to our way of thinking and working.”
He said the agreement reflected the company’s determination to address misconduct within its ranks. Charges have been filed by US lawmakers against six company executives, including the brand’s former head of development, Heinz-Jacob Neusser, and his deputy, Oliver Schmidt, who oversaw the automaker’s interactions with environmental regulators. VW will face oversight by an independent monitor for three years and has agreed to make significant reforms. The company agreed to fire six employees, suspend eight and discipline three who participated in the misconduct.
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“With the ability to improve emissions and fuel economy by 20% to 40% in gas and diesel engines, turbocharging technology is a smart choice for helping automakers meet tougher global emissions standards without sacrificing performance.” This year's forecast recognises an industry trend for slightly bigger engine sizes in Europe and China as automakers adapt powertrain strategies to tackle updated emissions regulations developed for realworld driving conditions. In these regions, a typical powertrain is a three- or four-cylinder engine with a displacement size between 1,2 litres and 1,7 litres. By rightsizing engines with available technologies, automakers are able to continue to apply the benefits of smaller turbocharged engines while fine-tuning powertrain systems to further optimise fuel economy, emissions and performance. In addition, Honeywell’s forecast calls for electric boosting products to help support compliance with more stringent national environmental standards. To this end, it is anticipated that the industry will begin
Hans Dieter Pötsch, Chairman of the Supervisory Board of Volkswagen Group, said: “When the diesel matter became public, we promised that we would get to the bottom of it and find out how it happened – comprehensively and objectively. “In addition, a task force of our Group Audit function conducted an investigation into relevant processes, reporting and monitoring systems as soon as the issue came to light. We are no longer the same company we were 16 months ago. The Supervisory Board and the Management Board have faced up to past actions.” As part of its plea agreement with the US Department of Justice (DOJ) Volkswagen
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moving from 12-volt battery systems to 48-volt systems. The change will open the door for a cost-effective electric boosting technology solution featuring e-chargers and e-turbos to help improve efficiency and performance of the internal combustion engine in a mild hybrid vehicle. According to Rabiller, e-boosting products can dramatically improve engine responsiveness and also provide better fuel economy. “Specific to diesel, it also has the potential to significantly reduce pollutant emissions, like mononitrogen oxide (NOx), and help meet more stringent regulations including the Real-Driving Emissions test in Europe,” he says. Electrics and hybrids are expected to grow from a total of three million vehicles in 2016 to a total of 16 million by 2021. Within the electrified category, mild hybrids are expected to account for 46% of the mix; full hybrids for 40%; and pure electric vehicles will be most of the remaining 14%.
has agreed to plead guilty to three felony counts under US law. The plea agreement, which is subject to federal court approval, provides for payment of a criminal fine of $2,8 billion and the appointment of the independent monitor to assess, oversee and monitor the company's compliance with the terms of the resolution, including measures to further strengthen Volkswagen’s compliance, reporting and monitoring mechanisms and implementation of an enhanced ethics programme. Volkswagen has further agreed to pay a combined penalty of $1,45-billion to resolve US environmental and customsrelated civil claims. Separately, Volkswagen
Honeywell estimates that 70% of all mild hybrids will have a turbo or multiple turbo systems (mechanical and electric). In addition, the company has drawn upon its engineering competencies in the automotive and aerospace industries to create a new two-stage electrical compressor used by Honda for its hydrogen-powered Clarity Fuel Cell vehicle. The company’s forecast estimates that the global turbo business will be worth almost $12-billion (about R161-billion) in sales in 2021. Globally, diesel engines will retain a significant share of global light vehicle sales at nearly 18%, due to their lower fuel consumption and carbon dioxide (CO2) emissions. Vehicle complexity will increase with the onboarding of new technology, making automotive software a key enabler for meeting more stringent emission regulations. The automotive industry currently spends between $2-billion and $4-billion (about R26-billion to R52-billion) a year just on the development and calibration of powertrain controls.
has agreed to pay a civil penalty of $50-million to the Civil Division of the DOJ to settle potential claims asserted under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). However, according to a statement, Volkswagen specifically denies any liability and expressly disputes these claims, which it is settling to avoid the uncertainty and expense of protracted litigation. By their terms, the agreements resolve Volkswagen's liability under US law and are not intended to address Volkswagen's liability, if any, under the laws or regulations of any jurisdiction outside the United States.
FEBRUARY 2017
17
NEWS
Uber partners with Manchester United
B
ritish football club Manchester United and Uber have announced a global partnership that’s designed to enhance the match day experiences of fans as well as facilitating greater connection between the club and international supporters.
United’s group managing director, Richard Arnold, commented: “Manchester United is always looking at ways in which we can improve our fans’ experience and our relationship with Uber will allow us to do this in new and exciting ways.
In terms of the partnership, Uber will set up pick-up and drop off zones at Manchester United’s home ground, Old Trafford, the idea being to create a convenient and safe way for fans to travel to and from games by using an Uber app on their smartphones.
“Supporters will tell you that the journey to and from a game, whether they are watching it at Old Trafford or another venue on the other side of the world, is an important part of the match day experience, contributing to the build-up and anticipation of the day.
Further, the mobility company intends to connect fans in over 30 countries with the club through a number of initiatives.
“Working with Uber we will look to enhance this experience for our 659
million followers, both home and abroad, by bringing them the spirit of Old Trafford and Manchester United through various experiences and interactive campaigns.” Amy Friedlander Hoffman, head of Uber’s experiential marketing division, said the company was making it easier for people around the world to connect to what they cared about. “We’re excited to give that connection to Manchester United fans to not only make match day transportation more seamless, but to deliver fans incredible experiences throughout the season, no matter from where they are supporting the team,” she said.
Peugeot to open African bakkie plant
T
he PSA Group and STAFIM, the company’s long-term partner in Tunisia, have signed a letter of intent to assemble and market a Peugeot bakkie in that country. The planned assembly plant will start operations in mid-2018, producing 1 200 units annually to meet anticipated demand. According to Jean-Christophe Quémard, PSA’s Executive Vice-President for the Middle East & Africa, the agreement demonstrates the Group’s intention to build its presence in the pick-up segment. He said the vehicle would play a key role in the growth of the Tunisian automotive industry.
Jean-Christophe Quémard… Peugeot to build bakkie in Tunisia
18 FEBRUARY 2017
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NEWS
Golden anniversary for AMG
Mercedes-AMG… record sales for 2016
A
MG – the high-performance division of Mercedes-Benz – this year celebrates its 50th anniversary. Founded in 1967 in Affalterbach, Germany, by Hans-Werner Aufrecht and Erhard Melcher, the tuning house is now a wholly-owned subsidiary of Daimler AG. In the course of its half-century, Mercedes-AMG has recorded numerous successes in motor sport and, through the development of unique road-going
vehicles, has underlined its position as a highly successful sports car and performance brand. “In this anniversary year, with an eye to the future, Mercedes-AMG will carry on the exceptional success story of what began as a two-man company,” says a statement issued by Daimler. “For each of the now around 1 500 employees, the focus will be on the
brand promise of driving performance, which unites the core strengths of AMG – cutting-edge technology and a passion for dynamic, emotively appealing products.” With almost 100 000 units delivered in 2016 – representing sales growth of about 40% – and the biggest strategic model initiative in the company’s history, AMG heads into its anniversary year with record figures under its belt.
New owner for Federal-Mogul
B
illionaire US investor Carl Icahn has struck a multi-million dollar deal that gives his Icahn Enterprises holdings company full ownership of automotive parts supplier Federal-Mogul.
he progressively upped an original offer to Gabelli of $7 (about R94) a share to finally acquire the stake for $10 (about R135) a share. Icahn Enterprises owns auto parts retail chains Pep Boys – which operates about 800 stores in the US – and a smaller chain called Auto Plus, which has about 278 stores. Observers believe Icahn plans to use the parts retailers as mainline outlets for Federal-Mogul products.
Icahn Enterprises made the announcement last month after Federal-Mogul’s second largest shareholder, Gabelli Asset Management, accepted an offer for the millions of shares it held in the company. According to reports, the investor – who previously owned 82% of FederalMogul’s shares – had been trying for nearly a year to buy the parts supplier outright. Through Icahn Enterprises,
20 - FEBRUARY 2017
Carl Icahn
According to Forbes magazine, Icahn has a net worth of more than $17-billion. He was recently appointed special adviser to new US president, Donald Trump, with whom he has been friends for many years.
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NEWS
Lucky 13 for Peterhansel
Winning team... France’s Stephane Peterhansel (right) with co-driver Jean-Paul Cottret
F
rance’s Stephane Peterhansel won this year’s Dakar Rally, notching up his 13th victory in the event – seven in cars and six on motorbikes. Compatriots Sebastien Loeb and Cyril Despres finished second and third, locking out a 1-2-3 podium for French manufacturer Peugeot. South Africa's Giniel de Villiers Spaniard Nani Roma ended fourth in his South African-built Toyota Hilux, with local hero Giniel de Villiers, driving a similar machine, fighting back from disastrous early stages to take fifth spot. Zimbabwean driver Conrad Rautenbach, also in a locally built Hilux, finished ninth to take the Best Rookie accolade. De Villiers said after the race: “Obviously we’re a little bit disappointed but you have to give big congratulations to Peugeot because they deserve their success. We didn’t
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Sebastien Loeb (right) and Daniel Elana
quite have the pace so maybe we have to switch to two-wheel drive in future to compete with them. All in all it was a very tough Dakar.”
British KTM rider Sam Sunderland claimed the win in the bike category from teammate Matthias Walkner with Gerard Farrés in third place.
Peterhansel attributed his victory to experience. “We were fighting six or seven drivers at the beginning of the race and after a while, there were only four. During the last week it was just Seb and I. We fought really strongly and I am the winner in the end – but it’s a small detail. This was the victory of experience.”
The quad category was won by Sergey Karyakin, who finished ahead of Ignacio Casale and Pablo Copetti. In the truck category, Russia’s Eduard Nikolaev in a Kamaz took the laurels ahead of teammate Dmitry Sotnikov and Dutchman Gerard de Rooy, driving an Iveco.
FEBRUARY 2017
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NEWS
Old KBs never say die
S
ome things just seem to go on forever – and that includes Isuzu KB bakkies. Proof of this is to be found in the West Coast hamlet of Vanrynsdorp, a stone’s throw from Vredendal, some 270km up the N7 from Cape Town.
KB250, which has well over 400 000km on it, Daniël’s prized possession is a faded, metallic blue 1979 derivative, which came to him via his grandfather and then his father.
There, diesel mechanic Daniël Kotze lives with his young family and a fleet of old Isuzus – his wife, three kids and seven tough-as-nails KBs. Oh, and a single Chevrolet LUV, which is what the Isuzu one-tonner was badged from 1973 until 1978.
It joined the Kotze family fleet in 1983, and covered over half-a-million kilometres with its original engine, much of that mileage as a hardworking plaas bakkie, explains Daniël. He says another KB was acquired after standing derelict under a tree in Springbok in the Northern Cape for more than a decade.
This one is a 1973 vintage so, in essence, it represents the very beginning of the Isuzu name locally. While the newest model is a 2008
Daniël has a great love for motor vehicles in general and it turns out that he is a walking KB encyclopaedia; authoritatively rattling off generation
Little Hendrik Kotze (18-months) in the shadow of father Daniël’s 1979 Isuzu KB with the latest version in the Isuzu line-up on the right
codes, engine sizes, nomenclature and dates when specific derivatives and models were introduced. “The first double cab version arrived in 1994 but long before that there were people locally who converted the KB25 ‘langbak’ into a four door,” he points out. Daniel’s collection is made up largely of diesel-powered single cabs, which is somewhat appropriate for a man whose business revolves around fixing workhorses of various kinds. “Most of my collection will start and run, but ja, they do need some work!” he admits. “I’ll get around to restoring them one day…”
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23
COVERSTORY
The Brexit Effect Developments generated by the UK’s severing of ties with the European Union’s single market have wide implications for South Africa’s automotive industry. Wynter Murdoch reports
T
he United Kingdom’s referendum vote to leave the European Union (EU) has led to concerns about the potential impact on the automotive industry – not only in Britain and the EU, but in South Africa, too. One of the biggest direct concerns is how potential tariffs, custom charges and other barriers between the UK and its trading partners could change the dynamics for an industry that relies on an integrated global supply chain and cross-border trade in both components and final products. Laying out her plans for Brexit last month in London, British Prime Minister, Theresa May, made it clear that the UK was committed to severing ties with the EU’s single market. In response, the Society of Motor Manufacturers and Traders in the UK warned that quitting abruptly and reverting to tariffs under World Trade Organisation rules would threaten the viability of the country’s automotive industry. The point is of major concern for automotive manufacturers and suppliers in South Africa since the UK is a key external market for locally produced motor vehicles, parts and accessories, with exports in 2015 valued at R6,7-billion. According to a recent study released by the Industrial Development Corporation, the UK is by far the largest export destination for South African made motor vehicles, accounting for 30,6% – or 101 704 units – of the total number of vehicle exports in 2015.
24 FEBRUARY 2017
Catalytic converters, too, are the second highest revenue earner, the study warning that their value – which has already been adversely affected by the phasing down of incentives by the Department of Trade and Industry – could be further degraded by the imposition of new tariffs. The balance of automotive industry exports to the UK comprises a wide variety of components and accessories, including stitched leather seat covers, automotive glass and engine parts which, though accounting for a
smaller share of the total value, remain significant revenue generators. The IDC warns that the uncertainty and adverse developments generated by Brexit are widely expected to weaken the UK’s growth performance at least over the medium-term, impacting negatively on its demand for motor vehicles and automotive components. “Furthermore, the ripple effects on the European Union could further affect South Africa’s automotive export performance,” it says.
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COVERSTORY
Carlos Ghosn
Takeshi Uchiyamada
Theresa May
could face the threat of retaliation by trade partners,” the study says.
Similarly, Toyota’s chairman, Takeshi Uchiyamada, said the company would keep its car and engine plants in the UK. However, both men said steps would be taken to increase the manufacturing competitiveness of the facilities if leaving the European Union raised costs.
The IDC says other factors to consider include the disruption of automotive supply chains across Europe – which in turn will impact South African exporters – and the length of time it will take to set new trade agreements in place. According to a study by Price Waterhouse Coopers, businesses involved in trade with Britain should be exploring all possible scenarios to develop strategies that will allow them to pursue their objectives whatever the outcome of the UK’s rapidly changing economic and political landscape.
Toyota and Nissan, along with Japanese rival Honda, have led a revival in UK car manufacturing, relying on EU membership to export cars to other countries in the bloc without tariffs.
“Some companies may want to review their OEM and supply chain investments in the UK in light of the changing economic and trade environment, including sterling’s depreciation and the prospect of increased trade costs.
In the absence of a negotiated trade agreement with the EU, the IDC study says Britain could face high tariffs on items entering the European single market – undoubtedly affecting its exports negatively and, consequently, its production activity which would in turn affect input requirements from foreign suppliers of parts and accessories, such as South Africa. “The UK could consider adopting a somewhat protectionist stance, but, considering the fact that its own car industry is heavily export-oriented – exports represent about 75% of production – it
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“Brexit may provide an impulse to start or upgrade their globalisation efforts, especially in the direction of countries that are not in the EU but which entertain privileged (sectoral) trade relationships, like South Africa,” the study says. May’s announcement that the UK would leave the single market was described as “expected” by RenaultNissan-Mitsubishi CEO Carlos Ghosn. He said Nissan – which operates Britain’s biggest assembly plant at Sunderland – would remain committed to building cars in the UK.
FEBRUARY 2017 -
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INSIDE LINE
Looking to the future Some leaders of South Africa’s motor industry believe that an increasingly positive economic outlook will translate into market improvements from the second half of 2017. David Furlonger reports
None more so than Francis Harnie, head of Peugeot and Citroën activities in South Africa. Despite just enduring a wretched 2016 which culminated in Citroën pulling out of the market with immediate effect, he is enthusiastic about the local future for Peugeot. Harnie’s zeal is fuelled mainly by strategic plans at the French parent company. After a sustained period of financial losses, it is trading profitably and ready to invest again in emerging markets like South Africa.
Francis Harnie… a fresh start for Peugeot
D
id you know that seeing the positive in every situation not only makes you more likely to achieve your goals but also affects the chemicals in your body and changes your physical cellular structure? Neither did I – but the Institute for Conscious Thought insists it is so. If it’s correct, then the cellular and chemical make-up of some motor executives must be altering at a mind-blowing rate.
28 FEBRUARY 2016
Harnie says there will be a flurry of new vehicles here, of which at least three will be sports utility vehicles. These will include diesel versions, specially engineered to handle South Africa’s out-of-date, high-sulphur fuel. “We will have a product line-up to match any local manufacturer,” he says. What he won’t have is their protection against the vagaries of the rand. Companies that both import and export have a natural currency hedge. Specialist importers don’t – which is why so many have seen sales plunge as rand-related costs have caused prices to spiral. Fewer than 200 Citroëns were sold in South Africa in 2016, making the
Mike Whitfield… voicing optimism for second-half market improvements
brand’s departure inevitable. For now, Harnie will be free to concentrate on rebuilding the Peugeot customer base. “We have been in transition between the old and new parent company and between old and new products,” he says. “We are starting afresh. Once we are strong enough again locally as a company, we will consider reintroducing Citroën.” As I observed in my last column, 2016 was not the disaster it might have been for the local motor industry. Record vehicle exports more than compensated for an 11,4% drop in domestic demand. However, exports are merely a sticking plaster. On their own, they don’t justify billions of rands worth of investment. Long-term, there is no substitute for a growing, vibrant local market. Last year was the third in a row that sales declined. In 2013, the industry sold 649 216 cars and commercial vehicles to local customers. By 2016, this was down to 547 442. Many independent analysts think the market will be flat in 2017 and may even shrink slightly before commencing a slow, steady recovery from 2018.
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General Motors SA takes a similar view. The company, which shed just over 100 staff members late last year after a voluntary-separation exercise brought about by low local demand exacerbated by almost negligible exports, says this year’s market will be stagnant. Mike Whitfield, head of Nissan operations in Sub-Saharan Africa, is more buoyant. As president of the National Association of Automobile Manufacturers of SA (Naamsa), he shares its view that an upswing could start in the second half of this year. Other senior executives say the same, even if their hearts don’t seem to be in it. If they’re not singing “Always Look On The Bright Side Of Life,” they are at least pretending to hum it.
Whitfield says: “We will start seeing a more positive economic outlook that will translate into second-half market improvements.” But that will depend on a positive environment – like stronger GDP, commodity prices, rand, fixed investment and private consumption expenditure. That’s a lot of ifs. Whitfield is also a “glass-half-full” person when it comes to the rest of Africa. Local exports to the north have collapsed over the last two years as tumbling oil and commodity prices have stripped economies of the cash and foreign exchange required to buy vehicles. “Last year was one of the most challenging in recent times for Africa,” he says. “But we are starting to see some positive signs in countries like
Kenya. One thing about this continent: as fast as economies go down, the upside can be just as dramatic. Some countries could have double-digit growth this year. I remain positive.” So does GMSA, but not so immediately. The short-term outlook for Africa remains subdued, it says. “However, in the long-term there remains opportunity for growth in Africa as disposable income levels improve, and more countries experience political stability and invest in the development of infrastructure.”
David Furlonger is the industrial editor of Business Day and Financial Mail
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RMI ASSOCIATION
Putting fuel retailers first The South African Petroleum Retailers’ Association (SAPRA) is a well-known and respected petroleum industry organisation. Viv Corinaldi, the association’s acting director, outlines some of the key objectives and activities of the RMI-affiliated body
T
he South African Petroleum Retailers’ Association (SAPRA), which was founded in 1990, represents and promotes the interests of almost 800 petroleum retailers in South Africa. The SAPRA operational structure consists of a National Executive Council (NEC), a National Director and a Communications and Member Liaison Officer. Serving NEC members are: Vikash Makhan, Eastern Cape and Acting National Chairman; Pumza Gcanga, Border-Kei Region; Gerrie
30 - FEBRUARY 2017
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Viv Corinaldi, acting director of SAPRA
Lewies, NEC Adviser; Henry van der Merwe, NEC Adviser; Nico Grobler, Pretoria and Northern Region; Vicki Botha, NEC Adviser and MIBCO board member and Godfrey Mogoe, Western Cape Region. Viv Corinaldi, in his position as Acting Director, is admirably assisted by Henriette Coetzee. The retail petroleum business in South Africa is a dynamic and complex industry. Since the industry is constantly evolving, there are many challenges facing petroleum retailers. Most petroleum retail
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sites are one man shows and members are very dependent on SAPRA’s assistance in a number of areas. The SAPRA vision is to contribute to the growth and profitability of petroleum retailers by helping to create a sustainable environment and to make fuel retailing a business of choice for current retailers and potential investors. SAPRA’s mission is to grow the brand to become the leading voice of petroleum retailers through positive
relationships and ongoing liaison with all stakeholders. Some of the key SAPRA activities and successes over the past few months include: • Stakeholder relationship management: SAPRA has established relationships with key industry stakeholders in business, labour and government. It has actively influenced crucial decisions affecting retailer margins, regulatory issues, trading
FEBRUARY 2017 -
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RMI ASSOCIATION
Viv Corinaldi addressing delegates at a Regional AGM and Workshop
conditions and security of supply. Further, it has interacted positively with banking associations and with trade unions.
that its members are kept informed of important developments that may affect their businesses.
Further, SAPRA specifically engages with the Department of Energy (DoE) on an ongoing basis regarding matters of transformation and legal and regulatory issues which affect the sustainability of fuel retailers.
The monthly update to members on fuel price changes remains an important value-add. Our website is actively maintained and the informative Automobil magazine, weekly webletters and newsletters all facilitate communication and create awareness regarding the association and its activities.
Current matters under discussion with the DoE include the alignment of transformation and B-BBEE codes to include sector codes, and the very key Regulatory Accounting System (RAS), which determines retailer margins. Both these matters are very high on the SAPRA agenda and we will continue to meet with the DoE and other stakeholders to find acceptable and workable outcomes for our members. The cultivation of relationships with oil companies and oil company dealer councils is another key area of focus for SAPRA. • Communication: SAPRA has continued to keep its finger on the pulse of the local and international petroleum industry and has ensured
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A series of well-attended Regional AGMs and Workshops were held across the country in September last year. The theme of the workshops – An Informed Retailer is an Empowered Businessman – is at the core of SAPRA’s communications strategy. • Industrial relations: SAPRA, through its link with the RMI, is a member of MIBCO, where it plays a crucial role in negotiations with organised labour. The latest and very successful round of wage negotiations bear witness to the excellent work done by the RMI/SAPRA negotiating team. • Human Capital Development: In collaboration with the training and
skills development team at the RMI, SAPRA plays a crucial role in training needs analysis and representation at the Wholesale & Retail Seta. The organisation also assists members to implement skills development plans. • Membership growth and member support: Membership numbers have increased by 9,8% over the past six months. The rise is encouraging as it gives SAPRA more opportunity to assist individual retailers regarding the issues they face. From this perspective the association has interacted with many members on a regular basis, helping them to resolve a variety of issues and challenges. Going forward, this remains a key objective for the association.
Looking ahead SAPRA will, through its ongoing activities and achievements, continue to pursue its aim of contributing to the growth and profitability of fuel retailers. The association’s defining objective for 2017 – and for the future – remains to influence all role-players in the fuel industry valuechain in such a way that it contributes to a viable and sustainable downstream fuel industry for all fuel retailers.
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MAY 2016 -
33
RMI UPDATE
Representatives of South Africa’s business and manufacturing sectors during their recent AIDC-organised Best Practice Tour to India
AIDC looks to raise SA’s auto competitiveness
T
he Automotive Industry Development Centre (AIDC), in conjunction with the Gauteng Growth and Development Agency (GGDA), recently organised a Best Practice Tour to India for 14 representatives of South African business and manufacturing sectors. The object of the tour was to engage with enterprises in India that have actively adopted measures and methods aimed at increasing productivity, efficiency and profitability. According to a statement released by the AIDC, the tour was a roaring success. Companies represented in the visiting group included the AIDC’s Gauteng and Eastern Cape Divisions, Fry’s Metals, Autoliv Southern Africa, Omnia, Auto Industrial, WST Automotive, DS Engineering and Babase Trading.
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The tour was led by the AIDC’s Rickus Lubbe and Sydney Theko, who had made a number of exploratory trips to India beforehand to gain first-hand knowledge about the country’s automotive and manufacturing sectors. “With the Best Practice Tour now in its fourth year, the results are showing: Attendees are taking their observations and implementing them in concrete ways in the South African industries and OEMs they represent,” said the statement. The focus of the trip was on Total Productive Maintenance (TPM) and included manufacturing processes and principles in the automotive sector at India’s Northern Manufacturing Hub. “India and South Africa have several shared challenges – an abundance of unskilled labour and a shortage of critical skills.
However, India is still more competitive in the manufacturing sector than South Africa and the tour aimed to establish exactly what could be done locally to raise our competitiveness on the world business stage. “A key consideration for all of the represented companies was how to enable and empower the workforce in the way the Indian manufacturing sector has done so effectively,” the statement said. The group visited a number of automotive-related manufacturing companies, among them Munjal Showa (shock absorbers and struts); Sona Koyo Steering (steering systems); QH Talbros (gaskets, heat shields, suspensions, antivibration systems and hoses); and Lumax Industries (automotive lighting). “These companies are globally-recognised best-practice businesses with world-class
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facilities,” the statement said. Also, to add practical value and experience to the tour, the group attended a training session with the Confederation of Indian Industry, hosts of a Quality Circle Competition. In addition, the group visited some of India’s most historic landmarks – including the Taj Mahal. The organisers chose India for specific reasons. First, it is an ideal setting for
observing how language differences can be much less of a workplace obstacle through enabling and empowering workers, which can be similarly applied South African working environments. Second, India has a high number of major players in the automotive and manufacturing industries, and each day of the tour included a business lunch where the tour group could engage
directly with business leaders and stakeholders in India’s automotive and manufacturing industries. Organisers at the AIDC are already planning the 2017 edition of the Best Practice Tour. For information, contact Rickus Lubbe on +27 82 872 4562, or e-mail him at rlubbe@aidc.co.za.
Getting serious about tyre repair standards
R
epresentatives of seven of South Africa’s leading tyre repair specialists and TDAFA director Hedley Judd met recently to develop a new approach to uplifting the industry’s technical knowledge concerning tyre repair. The group shared technical know-how regarding the repair of tyres, including the restoration of sidewall penetration damage which was previously considered taboo. Says Judd: “It was a very productive meeting, with everyone participating vigorously to flesh out basic requirements for a Minimum Standards Specification currently being developed by a Technical Sub-Committee of the SABS.” Items of interest included discussions related to certification and qualification of tyre repair products, processes or people
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and the complexity of tyre repair. The meeting concluded with an agreement to collate common data and meet again to forge the next step in the process of guiding the SABS Committee. “The group was adamant that standards could be improved only through joint effort and frequent discussion. What that commitment means for the industry as a whole is that minimum standards can potentially be agreed, published and adopted in a much shorter space of time than originally envisaged.” Present at the meeting were: Derek Myers, Rema Tip Top; Richard Day, Tech; Brendan van Niekerk, Chemvulc; Danny Kirsten, Patch Tech; Harald Lehnert, Vulcan Tyres; Stephen Norris, Bridgestone; Morne Goosen, Vipal Products and Hedley Judd, TDAFA.
Making a difference
T
he RMI has showed its commitment to making a difference to the impact AIDS has on South Africa by joining December’s National AIDS Week Business Bannerthon Challenge. As an indication of its support for the initiative, the Organisation displayed large banners in the foyer of its reception area at its Randburg headquarters, helping to creating visibility and raise awareness of the fight against the pandemic. • See P58 for the latest update from Redpeg concerning the management of HIV/AIDS in the workplace.
FEBRUARY 2017 -
35
THOUGHT LEADERSHIP
Customer loyalty and retention Bringing back the feel-good factor to customers can lead to a long-lasting, trusting and committed relationships, says Mike Kersten, General Manager of CDK Global South Africa
M
y time off over the summer holidays gave me a chance to reflect on the challenges facing South Africa’s dealership community. While it’s much easier to focus on negative aspects, I tried to look at their predicament from a different perspective and discovered that even in these uncertain times, financial gains can be made. From our experience of working with many dealerships around the country, I have noticed a small minority that are actually making the most of what many perceive as a “bad situation” when it comes to increasing revenue. Though these may only be small percentage gains in dealership performance, they provide a healthy contribution to profitability in a somewhat turbulent time. With car sales in the South African market likely to remain flat at best in 2017, retaining existing customers through aftersales becomes even more vital to a dealership’s performance. At a time when consumer spending will no doubt be down, ensuring their existing vehicles are properly maintained in order to extend their lifespan could become imperative to the customer. With this in mind, it is perhaps an ideal time for dealerships to be seen to be helping the customers with innovative service offerings and in turn, boost their
36 - FEBRUARY 2016
aftersales revenue, even if it is only a small increase? Surely it’s better to have a number of smaller value workshop bookings rather than relying on converting expensive workshop jobs? To give an example: Some forward thinking dealerships have adopted the concept of free brake pads for as long as the customer owns the vehicle. The idea behind this initiative is to provide customers with an excellent ownership experience regardless of the age of their vehicle. At CDK, we see Electronic Vehicle Health Check as a hugely underrated and underutilised product. We understand most dealerships are still using paper based vehicle health checks and, as a result of this, they tend to generate minimal upsell on the time invested in completing the job. The exercise is seen as a tick in the box to fulfil duty of care rather than an opportunity to provide valueadd customer service on work which the consumer should realistically be considering booking in. By using the electronic VHC, the aftersales team can easily follow-up on unconverted work and make those additional workshop bookings, again focusing on the important elements to the consumer rather than just maximising dealership profitability.
Don’t keep your custome
Give your dea Mike Kersten
Visit www.cdkinsight
Copyright © 2017 CDK Global.their The CDK Global logo and CDK Global are tra I would challenge dealerships and teams to think creatively on how the theme could be developed to bring the feel-good factor back to customers. It is small offerings like this that can lead to a long-lasting, trusting and committed relationship with the customer.
I see opportunity for dealerships to build trust and loyalty with their customers, providing they are proactive and have consistent dialogue with them. At a time when aftersales revenue may prove key to a dealership’s success, customers who you can retain will also play a very important role.
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OCTOBER 2016 -
37
RMI UPDATE
Messe Frankfurt grows its brands Further, two new event concepts have been developed for the transport and logistics sectors – Scalex, a trade fair for supply chain and logistics which made its successful debut in Kenya in March, 2016 and which is scheduled to launched in South Africa later this year; and Hypermotion, an expo and conference aimed at providing intelligent, digital solutions for the mobility industry. The first Hypermotion will be held this year in Frankfurt from November 20 to 22.
M
esse Frankfurt’s Mobility & Logistics Business Unit grew its brands in 2016 and continues to invest in an international portfolio of fairs, events and congresses. A statement released by the organisation says in addition to the expansion of the international Automechanika brand with new trade fairs in Birmingham (UK), Jeddah (Saudi Arabia) and Ho Chi Minh
City (Vietnam), it made other acquisitions in the automotive sector. In October last year the first Busworld powered by Autotrans took place in Russia while, a month before, a new B2C event was launched in South Africa – the South African Festival of Motoring at the Kyalami Grand Prix Circuit. In Turkey, Messe Frankfurt strengthened its position by taking over Motobike Istanbul.
To commemorate the growth path, the organisation last month released a 2017 limited edition calendar entitled Events driving Mobility 2017, which illustrates the broad spectrum of subjects covered by its Mobility & Logistics unit. A digital version of the calendar – illustrated by some of the pictures you see on this page – can be downloaded from Messe Frankfurt’s website, http://mes.se/Ap4t. The calendar was produced in cooperation with photographer and artist Rafael Neff using numerous assemblies and parts from automotive manufacturers.
Levies update from the NRCS
T
he National Regulator for Compulsory Specifications (NRCS) recently held a series of consultations with industry representatives regarding revised levies for 2017. The first meeting took place in Johannesburg on November 11, followed by other meetings in Durban (November 14), Cape Town (November 21) and Port Elizabeth (November 28). The NCRS’s presentation highlighted the financial pressure under which the organisation was functioning. Its
38 - FEBRUARY 2017
representatives reiterated that the organisation was not a pay for service operation but a regulatory body which performed its duties on an as-needed basis, with inspectors conducting assessments only when required. The presentation pointed out that levies were compulsory; that false declarations were fraudulent and that non-declaration was illegal. The issue of LOAs was discussed and the NRCS made it clear that, unless levies were up to date, no LOAs would be issued to defaulters.
Using figures supplied by Statistics South Africa – which indicated a rise in the Consumer Price Index of 6,1% to September last year – the NCRS said it would be increasing levies by 6% from the next financial year, which means implementation will take place in around September 2017. At the meetings, the organisation’s representatives assured attendees that copies of the official presentation – which includes salient financial information – would be made available for scrutiny.
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RMI UPDATE
Petronas launched in SA
Industry loses a legend
T
he RMI’s Board, management, staff and members collectively mourn the loss of industry legend George Beckman, who passed away on January 1 at the age of 87.
E
ngen Petroleum has rebranded its lubricants distribution business as Engen Oil Centre – marking its official launch of the Petronas Lubricants International (PLI) range in the South African market. Engen Oil Centres comprise a national network of approved distributors for Engen and Petronas lubricant products, and associated lubricant products. The Engen Oil Centre franchise, previously known as The Oil Centre, is Engen’s flagship lubricants distributor. It opened its first branch in Port Elizabeth in 2004, focusing on small and medium-sized business customers with a full range of lubricating oils and proactive service offerings tailored for the automotive, industrial, marine, aviation and agricultural markets. “Since then it has opened 10 more stores in major cities and towns, including Johannesburg (three outlets), Durban, Cape Town, East London, Rustenburg, Phalaborwa, Nelspruit and Kimberley,” says Keshwin Soni, new business development executive at Engen Lubricants. John Kennedy, Engen’s Lubricants
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business manager says the rebranding and reinvigoration of its catalogue heralds a new era for Engen, in which it will be able to focus more on its own range and that of its parent company, Petronas – the headline Formula 1 sponsor of Mercedes-AMG. “The Oil Centre concept is an initiative undertaken by the lubricants division of Engen Petroleum to empower small enterprises to service lubricants customers in a proactive and efficient manner,” explains Kennedy. The Petronas range complements Engen’s own wide-ranging portfolio of automotive and industrial lubricants and extensive knowledge of local conditions, with cutting-edge global product expertise and leading performance. “In particular, the Petronas Syntium brand of high-performance lubricants should excite South African motorists, as it is used in all Mercedes AMG cars worldwide,” says Kennedy. “We’re looking forward to serving our customers with an even more exciting line-up and signature Engen care,” says Joe Mahlo, general manager for sales and marketing at Engen.
George served the industry in numerous capacities over a period of more than 30 years. He was national chairman of the South African Motor Traders’ Association – precursor to the present-day MIWA, SAMBRA, TDAFA, SADFIA and SAPRA – and the regional chairman of the Western Cape Region. Also, he served on the MIBCO Independent Exemptions Board and various other industry regulatory bodies. Of particular importance was the vanguard role that George played in the drafting and publishing of the first repair times guide, then known as the Flat Rate Manual, with Chris De Weerdt and others. The Flat Rate Manual represented a major achievement in the establishment of fair and equitable trade practices in the auto repair sector. Apart from his excellent acumen in running various successful businesses in the automotive industry, coaching and mentoring of many upcoming and established business people over many years, George will be remembered for his great sense of humour – he was always ready to share a joke with colleagues and friends. The RMI expresses its condolences to the family and friends of George Beckman – he will be sorely missed by his peers and colleagues.
FEBRUARY 2017
39
RMI UPDATE
Taking care of your greatest asset
M
embers of staff are your greatest asset and add value to your organisation, and now it is time to return the favour by ensuring they are well looked after when they are injured. An injury on duty affects individuals’ lives in many profound ways, particularly if they are left disabled as a result. The personal journey in dealing with the consequences of physical injury is unique to each individual. RMA understands these challenges and has thus adopted a culture of caring, compassionate compensation when assisting injured workers. RMA operates in terms of Section 30 of the
Compensation for Occupational Injuries and Diseases Act (COIDA), 130 of 1993 as amended, under license from the Minister of Labour. RMA is the administrator of injury on duty (workmen’s compensation) claims for the iron, metal, steel and related industries, which was transferred to RMA from the Compensation Fund on 1 March 2015. Did you know that SAMBRA has made COIDA compliance a requirement for accreditation? By complying with RMA, and therefore the provisions of COIDA, you have peace of mind that staff members are well covered in case of an injury.
Has your company declared its earnings to RMA before? If Yes
If No
RMA is currently busy with renewing its 2017 policies. To ensure full coverage of staff in 2017/18:
If you have not declared earnings to RMA since the transfer from the Compensation Fund in March 2015, to ensure that your staff are covered:
1. Declare projected earnings of all staff for 2017; 2. Declare actual earnings (payroll costs) of all staff for 2016; and
3. Pay the 2017 premium invoice sent to them by RMA.
What does compliance with RMA mean? The earnings can be declared through our online services portal at www. randmutual.co.za, or by completing and submitting the form inserted into this copy of Automobil. The period for these submissions is February 6 to March 31, 2017.
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1. Declare actual (payroll costs) earnings for 2015 and 2016; 2. Declare projected (budgeted) earnings for 2017; 3. You will receive three invoices
for each year declared. 4. Payment to be made to RMA by latest 31 March 2017.
How does this benefit you? In addition to peace of mind that your staff will be well cared for in the event of an accident, RMA has placed much emphasis on accessibility to its services, including: a user-friendly online portal for 24/7 convenience, a one-stop contact centre, an online enquiry platform, several walk-in branches around the country,
and a growing team of Corporate Sales Consultants and Stakeholder Liaison Officers – including various training options on RMA’s products, processes and online portal. RMA’s online platform has received a recent upgrade with an emphasis on simplifying ease of use to ensure userfriendliness for clients. The online portal allows you to declare earnings, download your invoice and, once all requirements have been met, Letters of Good Standing are also available for online download. In addition, clients can report an accident or disease, follow the status of the claim and upload medical reports and additional required information online. Further, with more than 122 years’ experience in the administration of workmen’s compensation claims, RMA is a trusted partner in the industry and among medical professionals. RMA’s processes are fully automated, creating a seamless benefit payment and tracking environment, ensuring that your workmen’s compensation claims are in good hands. In addition to providing benefits as offered by COIDA, RMA also provides a range of insurance solutions to bridge the gap not covered by COID benefits and other mainstream insurance solutions. These include funeral cover, cover for workers travelling to and from work, COID top up cover, and cover for workers injured during a riot or strike. As a company that is compassionate and caring, RMA goes the extra mile to ensure that beneficiaries and their families receive the care and compensation they are entitled to when they have sustained either a work-related injury or occupational disease. Enquiries: Tel 0860 222 132/Email: contactcentre@randmutual.co.za www.randmutual.co.za
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*
*
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NOVEMBER 2016 -
41
ANALYSIS
Assessing the African market Africa is trying hard to place itself on the automotive roadmap, says Ryan Bax, Industry Analyst for Mobility at Frost & Sullivan Africa
D
espite wide-spread importation of used cars, the average level of motorisation in Africa remains the lowest globally at an estimated 44 vehicles per 1 000 inhabitants. New vehicle sales lag significantly behind other regions, with unit sales estimated at 1,55-million units in 2014. The figure represents approximately 1% of global new car sales and 1,36 new vehicles for every 1 000 inhabitants. This contrasts sharply with 18,05 and 56,94 new vehicles per 1 000 inhabitants in China and the United States in 2016. If new vehicle sales on the African continent grew seven units per 1 000 inhabitants, total new vehicle sales would tally about 7,7 million units annually. This would make Africa the fourth largest new car regional market after China, the USA and Europe – larger even than Japan, which sold 4,3 million units in 2016. It is this potential that has enticed automakers into Africa. In response to the fervour exhibited by CEOs and manufacturers, African governments have understood the gains to be made from the automotive sector and have adopted policies to achieve wider government objectives of industrial and economic growth. These policies are export oriented and permit automakers to assemble cars in the local economy at competitive rates, yet source the necessary demand
42 FEBRUARY 2017
from foreign markets that possess the disposable income. Though South Africa, Kenya and countries in North Africa have been producing vehicles for a number of years, in recent times it has been Nigeria that has taken the greatest steps to attract investment into its automotive sector. The Nigerian government developed the National Automotive Investment and Development Programme (NAIDP) in 2013, which provides wide-ranging benefits to automakers wanting to assemble vehicles in that country. The policy was well received, with over 10 assembly plants being setup to produce for the local and West African automotive markets and, though new vehicle sales reached approximately 50 000 units in 2014, the weak economic climate reduced sales to approximately 7 000 units last year. As a consequence, assembly operations in Nigeria have slowed as inventories continue to expand unsustainably. Upping the ante, Morocco developed an investment cluster programme which saw Renault enter the local market. Renault will be the only global automaker assembling vehicles in the country until the arrival of Peugeot in 2019. In neighbouring Algeria, the government’s drive to create a local
automotive manufacturing base has led to a quota system being placed on all automakers importing cars to “force” the investment into local assembly. New vehicle sales dropped from over 300 000 units in 2014 to 160 000 units in 2015 and a forecast shows 95 000 units in 2016 due to the quotas. A number of automakers have noted their intent to invest in the country, with Volkswagen being the latest to do so. Kenya is currently looking to develop a specialised policy to create a turnaround in their local assembly sector, which started to slow in late 2015 due to a lack of support measures and the enforcement of a 20% excise duty on locally built vehicles.
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ANALYSIS Automotive polices place limiting covenants on automakers that lift the business case for establishing assembly facilities in the said country. Due to the fact that a number of countries have enforced these policy stipulations, the combination of high initial investment cost and concern for small new car market size, the sustainability and viability of these policies is being questioned. In response, the African Association of Automobile Manufacturers (AAAM) has been established to assist countries wishing to participate in the automotive value chain. The association consists of senior management with representation from the South African divisions of BMW, Ford, General Motors, Nissan, Toyota and Volkswagen. The association engages with African governments and automotive bodies to enhance sustainability and the working environment for the eventual growth and success of automotive markets in Africa.
Placing further pressure on Kenya are the aspirations of Ethiopia, which is looking to become a major assembler of vehicles on the continent within the next 10 to 20 years. The introduction of investment promotion measures has seen a number of Chinese companies establish assembly facilities while, more recently, Hyundai noted its intention to commence assembly in the country. South Africa’s government announced that a follow-on Master Plan from the Automotive Production and Development Programme (APDP) would be aimed at providing confidence and stability for automakers to consider further investments in the country.
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The Master Plan will go beyond the APDP by providing benefits not only for lightduty vehicles, but also for motorbikes and medium and heavy vehicles. However, regulatory and labour limitations, along with the slowing new vehicle sector, are challenges for sector participants. That said, strong demand from the United States and Europe is maintaining growth in the sector. Unfortunately, wide-ranging challenges throughout African markets are restricting the success of policies and economic goals. However, it is not the economic and regulatory factors alone that have limited success; it is also the policies themselves that pose challenges.
ulian Pillay, newly appointed director of NAZA
As a consequence of these challenges, Egypt is currently developing an alternative approach to revitalising its automotive assembly sector. As the new vehicle sector shows a strong resurgence following the Arab Spring, the government is looking to benefit the wider economy from this trend. In a repeat of a move made in the 1960s, the government is aiming to invest in and engineer an entirely new Egyptian vehicle for Egyptians. The plan aims to ultimately produce one million units annually. The policy is at an early phase and time will tell whether it reaches consensus among policymakers. Though the African new vehicle sector is facing a number of challenges, various developments will facilitate wider recovery towards 2020. The recovery is expected to show slow growth initially, but is anticipated to benefit the wider supply side of the economy, which will enable sustainable growth in the coming decades.
FEBRUARY 2017
43
OGILVY CAPE TOWN 92145/E
Audi Genuine Parts
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* Prices are recommended retail prices exclusive of VAT and are subject to change without notification. Part applicability dependent on chassis number. Valid from 01 November 2016 to 28 April 2017.
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FEBRUARY 2017
45
TECH TALK
If something can go wrong with a motor vehicle – it will, says Jake Venter
I
n the wake of the furore created by Ford’s recall of its Kuga 1,6-litre model in South Africa, it’s worth investigating why recalls happen. In the USA, where strict laws govern production faults, recalls in the last few years have affected the equivalent of one in five vehicles on the road.
DESIGN Bad mechanical design may be the reason for a recall if it results in failures early in a car’s life. Once the warranty period is over, recalls are unlikely unless the unsatisfactory component caused accidents that resulted in a loss of life.
However, different manufacturers have widely divergent views on what constitutes a thorough test, and these differences show up in the reliability and robustness of the final product. Many recalls as well as customer complaints are the result of inadequate testing procedures.
At first glance it would seem that the motor industry does not have enough controls in place to produce thousands of fault-free cars a day – but there is another side to the story. A successful model has undergone various processes, starting with design, followed by prototype build, evaluation and testing, production, testing again and finally delivery to dealers.
The use of computer aided design (CAD) software has sped-up the stress calculations that are needed to ensure that parts are robust enough to cope with demands that will be made on them, but inexperienced engineers have been known to produce weak designs because they don’t appreciate the limitations that are inherent in any computer programme.
In fact, one of the reasons for the collapse of many British car brands was the fact that many of the manufacturers concerned used to think that cruising one prototype for 20 000km at 120km/h on European roads was an adequate test for a new model!
The production process relies heavily on quality control by means of inspection procedures and statistical evaluation of samples from large batches of components. In my view, a recall is the result of a failure or overlooked procedure at any of the stages.
EVALUATION AND TESTING The first prototypes of a new vehicle design are subjected to comprehensive testing on stress-inducing machines as well as on the road in all the various climates that they may experience in the hands of an owner.
46 FEBRUARY 2017
PRODUCTION Production processes have undergone vast changes since the beginning of the computer age, and the best way to understand these changes is to look at how parts were produced 50 years ago. Back in the day the machining process was monitored by feedback from quality control inspectors who usually checked
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only the exterior of a part plus a handful of important dimensions. Parts that did not conform would have been put to one side and their fate would have been decided at daily meetings between the resident engineer and representatives from the quality control and production departments. These parts would either be accepted as they were, accepted after rework, or scrapped. Examples of the types of manufacturing faults that could occur included: • Dimensions were not accurate because tools got blunt. When this happened the tools would be sharpened or changed, but meanwhile some unacceptable parts may well have been produced. • Unmachined parts may have come from an outside supplier and materials may have been changed without the mother factory being notified. • An operator may have used the wrong tool, or wasn’t paying attention to the task at hand. This most often occurred on Monday mornings or Friday afternoons. These stone-age operating methods are now obsolete, except in some manufacturing plants in non-industrial countries. The modern production revolution started in Japan, mainly as the result of two key developments. 1. The occupying American administration asked Edwards Deming, an American production and quality control expert, to advise the Japanese industry. He lectured in Japan from 1950 onwards on advanced statistically-controlled quality inspection methods that were not in vogue in the USA at the time. This resulted in the vast improvement in the quality of Japanese products that we all have experienced. 2. Just-in-time (JIT) manufacturing, a part of the Toyota production system (TPS) was introduced in the early 1960s. It was aimed at reducing flow times within a production system as well as response times from suppliers. Parts suppliers were expected to supply parts on a daily or even hourly basis.
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This not only eliminated the building of huge stores close to the assembly plant, but the short lead times forced suppliers to control production schedules and especially, quality control, to very fine limits. It forced them to adopt a more responsible attitude and work closely with the mother plant. A modern machining process operates as follows: • Computer control makes it possible to produce parts that are accurate to within five micron (0,005mm). This means that coded assembly is now a thing of the past. • Many machines check an incoming part before starting their own machining processes. • Sophisticated sensors are used to check the many qualities that make up an acceptable part. • Measuring machines or instruments, for example torque wrenches, store the values they measure in a memory bank, giving the factory a complete record of each part. • Operators on the shop floor have regular meetings to discuss quality control and assembly procedures.
QUALITY CONTROL Most modern cars tend to last far longer than their latter-day counterparts due to modern endurance testing methods as well as statistically-controlled quality assurance techniques. Vastly improved fuel mixture and ignition timing controls brought on by the computer revolution have also resulted in
keeping the insides of engines a lot more carbon-free than what was the norm 20 years ago. Fifty years ago I worked as the resident engineer for the Chrysler engine machining and assembly plant outside Pretoria where the Valiant was assembled. (That plant now belongs to Ford.) My duties included accepting or rejecting any deviations from the specified production, quality or dimensional criteria laid down by the product engineering department. This gave me an insight into the various ways that a faulty part can end up in a car. These days, at the end of the design process the engineering department generates a drawing, or set of computer machining instructions, for EVERY part on a car. If the part cannot be drawn, for example when it is a liquid, the drawing consists of detailed specifications. The drawings show not only the shape but also the dimensions (including machining tolerances) and refer to material, manufacturing, testing, coating and any other applicable standards with which the part has to comply. These standards are written instructions based on accepted practice, are the result of many years of experience, and form a complete guide to producing any quality part. Recalls are sometimes caused by faulty parts that have been accepted by the quality control department because none of the standards prohibited their use. This means the standards were not comprehensive enough. This usually occurs when a fault has not been encountered before, or that the part never failed in that particular way during endurance testing. Some recalls are caused by the standards not being adhered to. This can happen in a number of ways: • There could be some production problem that can be solved by using non-standard parts. For example, pistons and cylinder bores used to be graded according to their diameters
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TECH TALK and if it happened that not enough pistons of the correct diameter were available for a particular bore, the production department could request permission to use pistons that have a diameter 0,0127 mm (half a thousandth of an inch) smaller than normal. This would not normally cause a problem but if most pistons in the same engine were undersize it may sooner or later result in abnormal oil consumption. • Parts could have come from an outside supplier that had lower quality control standards than the mother factory. Most companies go to great lengths to ensure their suppliers follow the correct quality standards – even to the extent that they often have their own inspectors at the supplier’s premises – but faults still slip through. Most companies are reluctant to scrap parts just because they’re slightly non-standard. A prominent recent
fuel pump recall occurred when an outside supplier changed the material specification without telling the mother factory. • Many recalls result from using inferior or unsuitable material. It might be that the material performed well during endurance testing but some years later started to fail or wear at a greater rate. This kind of failure is a major industry problem because every part cannot be tested for every possible failure.
The fact that each motor manufacturer has its own set of production standards explains why engines and other parts built under licence – or even as unashamed copies – are seldom as good as the original.
Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.
FOR QUALITY AUTO ELECTRICAL PARTS STARTERS & ALTERNATORS ARMATURES & BENDIX SOLENOIDS & REGULATORS
LEDS, BATTERIES & MORE
View our FREE online catalog at www.caelex.co.za CHRIS AUTO ELECTRICAL 212 Soutter St, Pretoria West Tel : (012) 327 5404/6504 Fax : (012) 327 6211 Email : info@caelex.co.za
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Pegasus wheel bearing kits are manufactured from high quality bearing steel and are packaged in a new design, user friendly, high quality box. They are tested with “state of the art”, precision equipment that measures: • Roundness • Hardness • Metallographic composition • Contact angle • Roughness profile • ABS measuring In order to ensure that these bearings all perform to reduce rotational friction, and to support radial and axial loads. These bearings are manufactured for OEM use
CH4992
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AUGUST 2016 -
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TECHNOLOGY
Advancing vehicle lighting Holographic technology becomes a hot concept in vehicle lighting
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H
ella claims a new design for holographic lighting – developed in conjunction with Covestro, one of the world’s largest polymer manufacturers – is set to revolutionise vehicle lighting. Since 2012, the companies have been pooling their expertise in the areas of plastics technology, as well as design and lighting, in order to use signal lighting as a styling element. And, since 2015, the companies have collaborated on developing innovative designs for the front and rear lighting. The result is holographic lighting that incorporates 3D effects and which is said to be seamless and aerodynamically efficient, eminently suitable for series production of a variety of motor vehicles. A show car demonstrating the fruits of the companies’ labours was unveiled recently in Germany at the K Trade Fair, an expo for the plastics and rubber industry. The rear of the vehicle featured a lamp with three parts, each equipped with holographic technology. Designers at Hella developed the holograms before Covestro incorporated them into a transparent holographic film which was then laminated onto a 3mm
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thick glass plate. Hella spokesmen pointed out that for series application, plastic would be used instead of glass. “Holographic films are perfectly suited for integrating different lighting functions into the body of a vehicle in a spacesaving and unobtrusive way,” said Dr Michael Kleinkes, Head of Development Lighting Technology at Hella. “The installation depth can be reduced and automotive manufacturers have the opportunity to install more compact lamps." On the show car, the rear holographic film was illuminated from behind using LED light sources and reflectors, creating a 3D effect – as if the elements were floating freely in space. The central section incorporated Hella and Covestro logos, while the outer sections contained numerous illuminating areas, called flakes. Using dual coloured LEDS, stop lights were combined with the direction indicators using a diffuser film with diffractive optics developed by Covestro, the aim being to ensure uniform distribution of light with minimal loss of intensity.
Functions were also animated, meaning that the effect of a sequential turn signal, for instance, could be emphasised. At the front of the car, a seamless, uniform surface was created to house an EdgeLight design spanning the width of the vehicle. Using LEDs and Hella’s matrix HD84 lighting module, the design incorporated indicators, daytime running lights, low and high beams and a central positioning light signature, welcome lights and a host of other functions. Kleinkes said that since the lighting combination complied with statutory regulations, it would be possible to implement the design immediately in series applications. He said advantages of the system were numerous, not only in terms of styling, energy saving and safety, but also in terms of possibilities created by animation. “When braking, for example, it is possible to illuminate not only the stop lamps, but also to show an additional indicator, such as the word STOP spelt out.”
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LABOUR
Defining an employee It is common for employers to utilise someone as an employee but, in turn, contend that the person is an independent contractor. Douw Breed, a director at Barnard Incorporated Attorneys in Centurion, explains why he advises against it
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t is often necessary to establish whether or not a person is an employee of a company, especially in circumstances where he or she renders services in terms of a contract, or even if a contract is not in place. Section 200A of the Labour Relations Act (LRA) and Section 83 of the Basic Conditions of Employment Act (BCEA) regulate the situation and set out the criteria for a person to qualify as an employee of a company or establishment. However, it is essential to take cognisance of restrictions imposed by both Acts. Section 83A (2) of the BCEA states that the particular section does not apply to any person who earns more than the annual payment threshold – an amount determined by the Minister of Labour in terms of Section 6 (3) – while Section 200A states: “A person who works for, or renders services to, any other person is presumed, regardless of the form of contract, to be an employee…” However, this section requires that specific criteria are met. It is common for employers to utilise someone as an employee but, in
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turn, contend that the person is an independent contractor. In support of the contention, an employer tends to rely on a contract which has been signed with the person who renders the service. Another common misconception is the understanding that, if a person working for an establishment does not have a signed contract, he or she is not considered to be an employee. The independent contractor scenario described above occurs regularly. In most cases the contract is signed with people who earn in excess of the Minister’s threshold, making Section 200A of the LRA and 83A of the BCEA inapplicable. One possible reason why this type of contract is used can
be attributed to the fact that for the LRA and BCEA to apply, an employeremployee relationship should exist. In circumstances where the employee challenges the status of his employment – alleging that he is an employee, rather than an independent contractor – the CCMA will still be required to rule on the matter despite the limitations imposed by Section 200A of the LRA and Section 83A of the BCEA. If the CCMA determines that an independent contractor relationship exists, it has no jurisdiction to entertain the matter any further. The nature of the relationship determines the status of the person even if he or she has signed an independent contractor’s contract. It
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LABOUR
will be apparent from the contract – or from the actions and requirements of the person – whether he or she is an independent contractor or an employee. For example, an agreement that regulates the office hours of a person or which prescribes that he or she is not allowed to render services to other companies may be interpreted as an intention to regulate an employeremployee relationship. Equally, the absence of a contract does not determine the status of the individual’s appointment at a business. Criteria as set out by Section 200A of the LRA to determine the status of an individual in the workplace are selfexplanatory and include the following: (a) The manner in which the person works is subject to the control or direction of another person; (b) The person's hours of work are subject to the control or direction of another person; (c) In the case of a person who works for an organisation, the person forms part of that organisation; (d) The person has worked for the other person for an average of at least 40 hours per month over the last three months; (e) The person is economically dependent on the other person for whom he or she works or renders services; (f) The person is provided with tools of trade or work equipment by the other person; and (g) The person only works for or renders services to one person. In considering and determining the status of an individual, the Act distinctly determines that any one or more of those factors should be present to constitute circumstances where the
CCMA may find that an individual requires the status of an employee. It is advisable that businesses consider and evaluate the true nature of their intended relationships with individuals who render services. It often occurs that a person is an employee masked as an independent contractor. In addition, the CCMA has become accustomed to the term “independent contractor” and it seems that the words trigger the attention of commissioners. It is advisable to steer clear of the term and factually incorporate in any contract or agreement the true nature of the relationship and the intention of the parties involved.
relationships and instruct him or her to draft a relevant and necessary agreement that incorporates provisions factually aligned with the true intentions of the parties. Such a document will help to prevent confusion if a dispute arises for consideration by CCMA.
For example, if the parties intend for the “contractor” to render services independent of – and without regulating the relationship on employeremployee conditions – those relevant provisions should be incorporated in a properly drafted service agreement. It is therefore advisable to consult an attorney who understands commercial
Douw Breed (BCom (NWU) LLB (NWU)) is a director at Barnard Incorporated Attorneys , Centurion www.automobil.co.za
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LEGAL EAGLE
The Doctrine of Subrogation It is a reality that, due to the high number of traffic accidents on South Africa’s roads, the average motorist will at some time or another make an insurance claim and undoubtedly be confronted with the term subrogation. Izak Viljoen, a director at Barnard Incorporated Attorneys, explains its meaning
S
ubrogation can be defined as a right that allows one party, usually an insurance company, to step into the shoes of another, the insured, and institute legal procedures against the negligent third party who was responsible for damages suffered. Subrogation is one of the ways in which insurance companies recover monies that were paid out to the party insured by them. An example of a case of subrogation is as follows: The car driven by Driver A collides with the rear of your vehicle and causes damage. You have a valid insurance policy and your insurance company pays your claim. Your insurance company then has the right to claim the amount paid to you from Driver A. The insurance company is thus subrogated to the rights of your policy and can step in your shoes to recover any amount paid out to you. Subrogation goes hand in hand with the principles of indemnity, and the primary purpose of subrogation is to prevent the insured from receiving compensation from both the insurer and the negligent third party. The case of Rand Mutual Assurance Company Ltd v Road Accident Fund ZASCA 114; 2008 (6) SA 511 SCA created the standard for the modern principle of subrogation in the field of insurance law.
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For the first time insurers could, in terms of the doctrine of subrogation, institute legal proceedings against third parties in their own names. Prior to this case, an insurer had to sue the third party through the insured and thus did so in the name of the insured. How Subrogation Works Subrogation is generally the last part of the insurance claims process. In most cases, the insured hears little about it and is only confronted with it once the insurance company proceeds with a claim against the third party. If an insurance company decides to pursue subrogation, it has to inform the insured of its intention. This is important to you as policy holder since the insurance company will also attempt to recover the cost of your deductibles, and refund the amount to you once it has recovered it. Deductibles will in most cases be your excess or damages not covered by the insurance policy. The process Once you lodge a claim with the insurance company and it is determined that another driver or party is at fault, the insurance company will generally pay the claim or repair the damages to your vehicle. The insurance company will then seek to recover all the money or at least a part of it paid to you from the negligent party who caused the accident. It is important to note that the insurance contract often places an obligation on the insured to co-operate with the insurer during the recovery process. Assistance might mean that the insured will have to
attend court to give evidence on how the accident occurred. Requirements for Subrogation Valid insurance contract: Since an insurer’s right to subrogation is derived from the contract of insurance, no subrogation can take place where an insurer has paid out monies in terms of an invalid insurance contract. Insured’s loss must have been fully compensated: Often an insurance contract does not fully protect the insured in respect of damages suffered. There may be an excess payable or the sum insured may be insufficient. The insurer must first fully compensate the insured before it can lay claim to the monies received from the third party.
an admission of guilt or negligence form or to releasing a third party from any liability. It is important for the insured to avoid abandoning any rights of recovery against a third party. Since an insurance policy is a contract consentingly entered into between the insured and the insurer it is of upmost importance to understand the terms. Further, since most insurance contracts are entered into telephonically, if you have any uncertainty regarding terms in the insurance contract request the representative or the company to properly explain them.
The right of subrogation: An insurer can claim subrogation from a third party only if the insured has a right against that party. Duties of the insurer under subrogation: It is the duty of the insurer who is dominus litis not to prejudice the position of the insured, for example by agreeing to an unfavourable settlement. Further, since the insurer merely represents the insured in the proceedings against the third party and acts in the insured’s name, any legal cost or cost awarded in favour of the third party must be borne by the insurer. Both the insured and the insurer have reciprocal duties to each other to preserve the insured’s claim against the third party. In terms of many insurance policies, the insured is specifically prevented from compromising or prejudicing any claim by either agreeing to a settlement without the insurer’s express authorisation; signing
Members of RMI4Law enjoy the benefit of the 24/7 legal advice line to obtain assistance from attorneys. To join RMI4Law, Phone 0861-668-677
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FEBRUARY 2017
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BUSINESS MANAGEMENT
Building a business dream-team Factors and circumstances that turn a group of employees into a dream-team of top performers are far from an exact science – but these are five steps you can take to make an outcome of excellence much more likely, says Fergus Ferguson
E
very business undertaking, from developing a new product to launching a new department, must start with a thorough audit and clear understanding of the resources involved. In terms of putting together a high-performance team, those resources manifest in the form of the skills and attributes of each team member. • Identifying your requirements You can ensure those skills are in place before making any new hires or assigning roles. Taking time to evaluate this crucial step will prevent overprovisioning with unnecessary resources and will keep the team lean, agile and effective. Your potential team members may come from outside of the business, or they may be current employees. Either way, this is an indispensable step in assembling a highperformance team. • Finding the right people Now that you know what sorts of skills your team will require, the next step is to find out which of your employees fit the bill as potential team members. Consider each employee in relation to those around them and consider how their knowledge and talents may add to the project at hand.
Should you find it necessary to take on new hires, be stringent in your interviewing processes to make sure they will make a positive impact on the team as a whole, both in terms of their skill-set and their demeanour. • Establishing strong leadership Even though work teams can and should be based on equal participation, establishing a team leader is essential to making sure conflicts, miscommunications and misunderstandings are kept to a minimum. A team leader is a point of reference and contact for both the team and management. • Getting them fired up with common goals Whether internally or externally sourced, a careful briefing and induction period is a great idea if you want your team to hit the ground running. Emphasise the goals for the project and how it will contribute to the overall wellbeing of the business and its employees, and what success will mean for the team itself. Employees have an innate need to feel that their work is achieving something, and that they are being nurtured and developed as individuals. Maintaining enthusiasm and a desire to succeed means that the team bond will be that much
stronger, as will each member’s resolve to do their best in whatever role they are assigned. • Throw them in the deep end It may seem contrary to all the preceding steps, but the most accurate predictor of a team that performs exceptionally well is innovation – and innovation cannot thrive if stringent rules and set-in-stone expectations limit creativity. It is your job to encourage out-of-the-box thinking and calculated risk-taking. You may end up getting some of your best business ideas from team members feeling valued for their contribution and, as a result, going above and beyond the call of duty in their work. Richard Branson once famously said: “Shape your enterprise around your people.” At the end of the day, only your employees can elevate the team to the point where its performance outstrips the sum of its parts – but it’s your responsibility as a manager or business owner to ensure they have the skills, training, resources and encouragement to make a success of any project they undertake. For more information on how to make your employees and systems more efficient, download from the ActionCoach website our “How to Build a Business that can Run Without You” eBook.
Fergus Ferguson is a Franchisee of the global business coaching company – ActionCoach. He is an accredited Business Coach who assists business owners to significantly grow their profits and develop their entrepreneurial skills. To find out more about Business Coaching or to receive a complimentary consult and a business health check, call 082 650 0867 or visit actioncoach.com/fergusferguson
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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:
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If you are employed, you may register for a learnership programme within the sector where your company or organisation operates; or
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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:
It’s about caring for people we render services to
w www.merseta.org.za
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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
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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?
Tel: 0861 637 731 Fax: 0866 700299 FREE STATE & NORTHERN CAPE 46 Second Avenue Westdene Bloemfontein, 9300 9b Roper Street Kimberley, 8301 Tel: 0861 637 733 Fax: 051 447 8873
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.
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?
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If you are unemployed, you may apply to a company that is offering an apprenticeship programme; or
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If you are employed, consult with your employer as to the requirements and correct procedures to be followed to enter an apprenticeship programme.
WE BELONG :
It’s about working together with colleagues
merSETA Social
WE SERVE:
It’s about going beyond the call of duty
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LEADERS IN CLOSING THE SKILLS GAP www.automobil.co.za
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
MAY 2016 -
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RMI UPDATE
Managing HIV/Aids Answers to some frequently asked questions about activities that carry increased risk of HIV infection Why is sharing of needles and syringes a high-risk activity for HIV infection? Small amounts of blood from a person infected with HIV may stay in the "works" used to inject drugs – needles, syringes, cotton, cookers, water and other equipment – and can be injected into the bloodstream of the next person who uses the equipment. Any drug injection activity where equipment is shared with a person who has HIV or whose HIV status is unknown is high risk.
drugs that fight HIV. The risk of passing HIV to the infant may be reduced significantly if the mother takes antiretroviral treatment. HIV is also found in breast milk and babies have become infected by breastfeeding from HIV positive mothers. Women with HIV should NOT breastfeed their babies. A woman with HIV infection can pass the virus to her baby during pregnancy, delivery or by breastfeeding even if she has no symptoms.
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)
www.fishgate.co.za_CT_6961
Can a person become infected from a partner who has a low or an undetectable viral load? Can a woman with HIV pass the virus to Yes. It is possible to become infected by her baby during pregnancy or through a sexual partner who has a low or an breast feeding? undetectable viral load – a person whose HIV Yes. There is a one in four chance that status cannot be detected by test because a woman infected with HIV will pass the amount of virus present is lower than the virus to her baby before birth, or that measured. However, it does not mean during birth, if she is not taking any there is no HIV in the person's body.
Commercially available viral load tests do not measure the amount of HIV in a person’s lymph nodes, organs, semen, vaginal secretions or other body fluids. Although a low or undetectable viral load indicates how well drug therapy is working, it does not eliminate the possibility of spreading HIV. A person can become infected from a partner who has a low or undetectable viral load.
Ctrack Fleet Tracking and Recovery offers everything you need to run a more productive fleet and save up to 20% on fuel and maintenance costs. 0860 333 444 • sales@ctrack.co.za • www.ctrack.co.za
58 - FEBRUARY 2017
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Superior Vehicle Tracking | Stolen Vehicle Response | Insurance Telematics | Fleet Management Solutions
Arrow HT Leads
With ever increasing demands placed on today’s technological advanced engines, Arrow HT Ignition Leads, more than delivers, with their wire wound filament inductive cable and their double layered silicone polymer based covering. With over 95 part numbers and growing, the ARROW range covers almost 90% of the passenger vehicle car park. Arrow HT Leads ever-growing market acceptance, is largely due to OE quality, competitive pricing, proven reliability and a 12 month warranty, which renders Arrow the ultimate value for money brand.
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Contact your nearest PIA branch today Bloemfontein
Durban
George
Nelspruit
Cape Town
East London
Johannesburg
Port Elizabeth
Tel: (051) 506-0700 Fax: (051) 447-8336
Tel: (031) 533-5300 Fax: (031) 569-6576
Tel: (021) 590-7500 Tel: (043) 703-8000 www.automobil.co.za Fax: (021) 591-5033 Fax: (043) 743-8418
Tel: (044) 874-4175 Fax: (044) 874-3706 Tel: (011) 879-6000 Fax: (011) 454-0200
Tel: (013) 752-4821 Fax: (013) 752-4869 Tel: (041) 390-3000 Fax: (041) 373-0090
Pretoria
Tel: (012) 377-7500 Fax: (012) 377-3896
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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.
ADVERTISERS AUTOMOBIL - FEBRUARY 2017 EDITION
CLIENTS
CONTACT WEBSITE
PAGE
Aer O cure
011 444 6454
www.aerocure.co.za
OBC
Africa Automotive Aftermarker Solutions
011 879 6000
www.aaas.co.za
19 & 49
Audi Parts
0860 434 838
www.audi.co.za
44 & 45
Automobil Association training College
011 799 1068
www.aa.co.za
37
Ctrack
012 450 2222
www.ctrack.co.za
58
Caelex Chris Auto electrical
012 327 5404
www.caelex.co.za
48
CDK Global
011 998 6000
www.cdkglobal.co.za
33
Electrolog
012 327 6210
www.autocosmos.co.za
60
Kigima Auto electrical Training centre
012 327 2586
www.kigima.co.za
29
Moto Health care
0861 000 300
www.motohealthcare.co.za
10 & 11
NAACAM
0861 101 475
www.naacamshow.co.za
7
Precision power components
011 392 2012
www.precisionpower.co.za
18
Probe Corporation
011 453 0924
www.probegroup.co.za
59
Robert bosch
011 651 9600
www.bosch.co.za
15 & 23
Silver Falcon Trading
083 628 2288
www.hurricaneauto.co.za
62 & 63
Snap On Africa
0861 762 766
www.snapon.co.za
IFC
Volkswagen Parts
0860 434 737
www.vw.co.za
26 & 27
Willard Batteries
011 706 7184
www.willard.co.za
41
Wolf oil
NA
www.wolfoil.com
IBC
BENEFITS OF BELONGING With a membership of 7 500, the RMI provides a very effective collective voice that gives members considerable clout in negotiating better trading conditions. As the lead voice in the motor industry, the RMI is a memberdriven organisation that constantly seeks solutions to concerns raised by members in the day-to-day running of their businesses.
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MEMBERUPDATE The RMI welcomes these new businesses into membership Member’s Trading Name A AC Auto Engineering Auto Centre Kraaifontein B BDM Diesel Centre Best Drive Princess C Car Service City Hennopspark Car Service City Rivonia D Dimo Automotive Donford Approved Repair Centre H Hassans Parow Service Station HBH Panel & Paint Hyperperformance Auto Centre I Interpump South Africa j Jacks Tyres JE Autobody Jeronemo Truck Accident repairs and Panel Beaters JJ Motors JVR Diagnostics Kaap Afri Bedryf Kammieskroon Kaap Agri Bokomo Expressmark Kaap Agri Danielskuil Expressmark Kaap Agri Kareedouw Expressmark Kaap Agri Franschoek Expressmark Kaap Agri Garies Expressmark Kaap Agri Kakamas Expressmark Kaap Agri Kraaifontein Expressmark Kaap Agri Malmesbury Expressmark Kaap Agri MBT Brits Kaap Agri Moorreesburg Expressmark Kaap Agri Rawsonville Expressmark Kaap Agri Simondium Expressmark Kaap Agri Upington Expressmark Kaap Agri Vanrhynsdorp Expressmark Kaap Agri Vredenburg Expressmark Kaap Agri Vredendal Expressmark Kaap Agri Woldeley Expressmark Kaap Agri Worcester Expressmark Kaap Agri Bedryf Addo Kaap Agri Bedryf – Agrilog Paarl Kaap Agri Bedryf Askham Kaap Agri Bedryf Augrabies Kaap Agri Bedryf Barrydale Kaap Agri Bedryf Bitterfontein Kaap Agri Bedryf Bitterfontein Depot Kaap Agri Bedryf Bonnievale Kaap Agri Bedryf Brandvlei Kaap Agri Bedryf Kaap Agri Bedryf Citrusdal Kaap Agri Bedryf Clanwilliam Kaap Agri Bedryf Darling Kaap Agri Bedryf Durbanville Kaap Agri Bedryf Eendekuil Kaap Agri Bedryf Elgin Engen Kaap Agri Bedryf Franschoek Kaap Agri Bedryf Gouda Kaap Agri Bedryf Graafwater Kaap Agri Bedryf Graafwater Onderdele Kaap Agri Bedryf Grabouw Kaap Agri Bedryf Groblershoop Kaap Agri Bedryf Grootdrink Kaap Agri Bedryf Halfmanshof Kaap Agri Bedryf Hermon Kaap Agri Bedryf Hoedspruit Kaap Agri Bedryf Kanoneiland Kaap Agri Bedryf Keimoes Kaap Agri Bedryf Keimoes Brandstof Depot
City/Town Johannesburg Kraaifontein Tzaneen Roodepoort Centurion Sandton Pretoria Strand Parow Pinetown Mosselbay Boksburg Pietermaritzburg Polokwane Durban Mossel Bay Pretoria Kammieskroon Cape Town Danielskuil Kareedouw Franschoek Garries Kakamas Kraaifontein Malmesbury Brits Moorreesburg Worcester Paarl Upington Vanrhynsdorp Vredenburg Vredendal Wolseley Worcester Addo Paarl Askham Kakamas Cape Town Cape Town Cape Town Bonnievale Brandvlei Ceres Citrusdal Clanwilliam Darling Durbanville Cape Town Cape Town Franschoek Cape Town Graafwater Graafwater Grabouw Groblershoop Grootdrink Cape Town Cape Town Hoedspruit Upington Keimoes Keimoes
Member’s Trading Name Kaap Agri Bedryf Kenhardt Kaap Agri Bedryf Klawer Kaap Agri Bedryf Klipheuwel Kaap Agri Bedryf Kliprand Kaap Agri Bedryf Koue Bokkeveld Kaap Agri Bedryf Kuruman Kaap Agri Bedryf Loeriesfontein Kaap Agri Bedryf Lutzville Kaap Agri Bedryf Marble Hall Kaap Agri Bedryf Montagu Kaap Agri Bedryf Moorreesburg Brandstof Depot Kaap Agri Bedryf Mosplaas Kaap Agri Bedryf Orchard Kaap Agri Bedryf Philippi Kaap Agri Bedryf Piketberg Kaap Agri Bedryf Pofadder Depot Kaap Agri Bedryf Porterville Kaap Agri Bedryf Porterville Total
City/Town Upington Klawer Cape Town Cape Town Cape Town Kuruman Upington Lutzville Marble Hall Montagu Moorreesburg Kakamas Cape Town Cape Town Piketburg Pofadder Porterville Porterville
Kaap Agri Bedryf Riebeek Wes Kaap Agri Bedryf Springbok Kaap Agri Bedryf Stellenbosch Kaap Agri Bedryf Stoor Springbok Kaap Agri Bedryf Tulbach Kaap Agri Bedryf Vredenburg Total Kaap Agri Bedryf Vredenburg Kaap Agri Bedryf Wellington Kaap Agri Bedryf Worcester Brandstof Depot Kwik-Fit Stellenbosch L Landon Auto Leaven Parking Linksfield Motors M Mashilela Security and Trading Mazda Clearwater MGS Auto Midas Malmesbury MMR Bluewagon Holdings Mokar Panelbeaters N NAS Solutions P Pit Stop Auto Shop Plastic Refurbishers PRM Auto Repairs R RFS Auto Ronnies Tyres Wilropark S SAC Bakkie Centre Klerksdorp Safari Car Care Centre Sasol Hill Street Sasol Ormonde View Sasol Riverlea Sasol St Bernard Scorpio Towing and Recovery Seila Auto Electrical & Printworks Smithies Panelbeaters & Spraypainters SRN and Sons Supa Quick Melville Supa Quick Musgrave Supa Quick Noordheuwel Supertech Auto Suzuki Kenilworth
Riebeek West Springbok Stellenbosch Springbok Tulbach Vredenburg Vredenburg Wellington Worcester Stellenbosch Durban Mount Edgecombe Johannesburg Mokopane Vereeniging Centurion Malmesbury Pretoria Centurion Soshanguve Potchefstroom George Mokopane Pretoria Roodepoort Klerksdorp Bloemfontein Randburg Johannesburg Johannesburg Pretoria Durban Pretoria Boksburg Pretoria Johannesburg Durban Johannesburg Pretoria Cape Town
T The Bridge Fitment Centre Cape Town Tyreplus Lenasia Tyreplus Pretoria East Pretoria V Vans Petrolhead Garage Viva Mams Mall Filling Station VSB Auto Electrical & Fitment Centre
Nelspruit Pretoria Johannesburg
Save the date July 2017
Truck 2017
Conference & Expo
SA’s Premier Trucking & Logistics Conference and Expo
Kyalami Grand Prix Circuit TRUCKX 2017 HALL OF FAME
The search is on for South Africa’s safest truck drivers:
For details log on to www.masterdrive.co.za / www.futuretrucking.co.za / www.truckx.co.za
Hosted by Future Group
www.automobil.co.za
www.truckx.co.za FEBRUARY 2017
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TAIL PIECE
From Vegas to Detriot There were a few notable debuts at last month’s Detroit Motor Show – but by and large the connected car world divulged its secrets at the Consumer Electronic Show in Las Vegas, says TU-Automotive’s Andrew Tolve Audi captured attention, too, with its flashy Q8 concept. The plug-in hybrid sports a virtual cockpit complete with 3D mapping and a contact analogue headup display (HUD).
T
he motoring spotlight shifted in January from Las Vegas and the Consumer Electronics Show to Detroit and the North American International Auto Show (NAIAS) – only many carmakers didn’t make the journey with it. The list of absentees at this year’s event in Detroit was sizeable and the event in general lacked the razzmatazz that connected cars commanded back in Vegas. Volkswagen was arguably the star of the show with its ID Buzz. The car is an all-electric reinvention of the brand’s Microbus, which gained iconic status during the hippie era of the 1960s. The Buzz features LiDAR on the roof to enable autonomous driving and it has twin electric engines, one up front and a second at the back, which provide an impressive claimed range of over 600km per charge. Volkswagen is keeping mum on whether the concept will be built but pundits believe it could be a fixture of the company’s new ride-sharing initiative, Moia.
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The display projects information onto the windshield in the driver’s direct field of view – a navigation arrow, for example, appears in the same position as an actual arrow on the road, an intelligent application of augmented reality. Notifications from the driver assistance systems also merge the virtual and physical worlds. Expect a production model based on the concept in 2018. Honda showed off a revamped Odyssey minivan with technology especially configured for parents. The interior features CabinWatch, which lets moms and dads spy on their offspring thanks to a backseat cam with a live feed projected onto the dashboard. There’s also CabinTalk, which acts like a megaphone for a parent’s voice – it even cuts through headphone jacks – and a rear seat entertainment system that includes an app that tracks the minivan’s location in relation to its destination so kids know exactly how long it will be until they arrive. Brilliant! Toyota announced the third generation of its telematics platform, Entune 3.0. The platform includes Dynamic Navigation, which continuously analyses a six-kilometre-square- grid around the vehicle. Any roads or points of interest that are on the database in Toyota’s Smart Centre but not in the on-board map will automatically be displayed on the head unit.
Also, the system incorporates Dynamic Voice Recognition, which processes voice commands at the Smart Centre using a larger, more powerful database to help to overcome problems regarding pronunciation and accents. On the autonomous drive front, Nexteer Automotive and Continental announced that they were partnering in a venture to create the best integrated systems for longitudinal and lateral motion control of self-drive cars. And Yanfeng Automotive Interiors, the world’s largest supplier of automotive interiors, unveiled a vehicle interior concept that allows the cockpit of a self-driving car to morph from one seating arrangement to another, based upon who’s inside and what they want to do. There’s a meeting mode, where the driver seat moves to the back of the vehicle, while the passenger seat moves forward and rotates 180 degrees allowing occupants to face each other. There’s also a family mode, where all four seats rotate to enable joint activities like game playing and movie watching, and a lounge mode, where the front seats move to the rearmost position to allow for maximum relaxation. Finally, Nissan announced that this month it intends to hit London’s streets with realworld demonstrations of autonomous driving cars – a first for the company on public roads in Europe. The vehicles will be specially equipped, all-electric Nissan Leafs. The demonstrations follow on the heels of Nissan’s recent announcement that its new Leaf will feature autonomous drive technology to enable single lane autonomous driving on motorways. .
www.automobil.co.za
www.automobil.co.za
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Aer-o-cure provides an air-tight solution for refinishing professionals. Aer-o-cure’s Combination Downdraught Spraybooths are designed for automotive refinishers that demand a reliable, high quality paint process with minimum running costs. The powerful downdraft ventilation system guarantees a healthy working environment and optimal conditions for painting, removing all vehicle overspray immediately and ensuring a mirror-perfect finish after baking. Minimising energy usage during both the painting and baking cycles is a high priority and is achieved through precisely controlling the motor’s speed via the Microprocessor control. Energy-saving neon lighting is utilised to provide uniform conditions allowing for correct colour tones to be achieved with absolute precision. For a complete Aer-o-cure Spraybooth and Mixing Room solution, visit our website or call now for more information.
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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
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Tel: +27 11 444 6454 Fax: +27 11 444 5677 e-Mail: info@aerocure.co.za www.automobil.co.za * Product / Colour may vary from image provided, subject to stock availability. (E&OE)