Automobil May 2018 by Future Publishing

MAY 2018

VAT INCREASE

How it will affect your business

ELECTRIC MOBILITY Is South Africa ready?

SAPRA IN THE SPOTLIGHT RMI UPDATE: NADA PAYS TRIBUTE; GETTING TO KNOW THE NEW NADA www.automobil.co.za CHAIRMAN; WHY TRAIN IN TIMES OF SLOW ECONOMIC GROWTH; PARTINFORM VISITS RUSTENBURG

MAY 2018

22 -MAY NOVEMBER 2014 2018

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CONTENTS – MAY 2018 COLUMNS 5 Driver’s Seat: Jakkie Olivier, CEO of the RMI 7 Editor’s Letter: Reuben van Niekerk 9 Hot Stuff! New product showcase 60 Frequently Asked Questions: Answers from experts 66 Tailpiece: Motoring dates to diarise UPDATES

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12 News 20 RMI review

Editor: Reuben van Niekerk reuben@thefuture.co.za

Sub-editor: Peggy Lendrum peggy@thefuture.co.za

COVER STORY

Design and layout: Heinz Bawa heinz@thefuture.co.za Reporters: Wynter Murdoch wynter@thefuture.co.za

NADA pays tribute; Getting to know the new NADA chairman; Why train in times of slow economic growth; Partinform visits Rustenburg

Fuelling the Nation SAPRA represents the interest of petroleum retailers in South Africa

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FEATURES

Publisher: Richard Lendrum richard@thefuture.co.za

Plant Rosslyn: Where is BMW heading?

Production: Mabel Ramafoko mabel@thefuture.co.za

David Furlonger attends BMW’s AGM in Munich and gets some insight into BMW’s thinking regarding its Rosslyn manufacturing facility

Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za

Force, Torque, work, energy and power

Jake Venter looks at these concepts developed slowly from past experience of practical men

Future Publishing (Pty) Ltd 247 Jan Smuts Avenue, Dunkeld West, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 803-2040 RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Denice Grobler, Danelle Van Der Merwe, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman and Reuben van Niekerk

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Automobil is the official journal of the Retail Motor Industry Organisation (RMI) which hosts 13 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); 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).

Automobil is available to purchase from the publishers at R25 a copy. Automobil is produced and published monthly by Future Publishing (Pty) Ltd for the Retail Motor Industry Organisation. The views and opinions expressed in the publication are not necessarily those of the publishers or the Retail Motor Industry Organistion. While precautions have been taken to ensure the accuracy of advice and information contained in editorial and advertisements, neither the publishers nor the Retail Motor Industry Organisation can accept responsibility for errors, misrepresentations or omissions, or for any effect or consequence arising therefrom. Permission to republish any article or image or part thereof must be obtained in writing from the publishers.

A roadmap to premium electric mobility

The demand being created for alternative mobility technologies brings with it a very real infrastructure gap

Could the Facebook breach affect legislation regarding connected cars

What Self-Driving Cars might mean for South Africa

Self-driving cars are making their way to South Africa

Ensuring Sustainability and Efficiency within the Workplace

An employer’s key focus and primary function is ensuring efficiency and sustainability of the workplace says Douw Breed

Application of the Tax increase in your business

Dealing with the increase in VAT announced in the recent Budget Speech

How Saleable is your business?

The key reason to start a business should be to sell it one day says Pieter Scholtz

How the fuel levy works

Monroe- Technology-driven Safety

Shock absorbers are often overlooked because they cannot easily be seen and are difficult to check for wear

Easter Road Death Toll

The path to real change

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MAY 2018 -

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

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

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

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

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

4 MAY 2018

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DRIVER’S SEAT

Is technology improving how we communicate? New technology might make communicating an easier thing to do, but nothing beats face-to-face interaction says Jakkie Olivier, CEO of the RMI

he whole world is bombarded and challenged with new technology on a daily basis and chances are that, across sectors, new developments or inventions amaze us at least once a day. Think about the way in which we communicate and how technological developments have changed that. Currently it’s so much easier to send an email or WhatsApp message than picking up the phone to make a voice call. Is this a good or bad habit? You would probably find arguments for and against it. It’s true that we are all benefiting from new and faster technology, but at the same time we are also experiencing what I deem a great loss – the skill of interacting directly with another human being on a personal level. That personal touch and awareness is lost when any form of writing and new technology is used. Think about your communication with family members, friends, clients or colleagues – with all the technological advancements in communication methods and practices, we have lost the opportunities to interact face-to-

face with one another. In my opinion, one-on-one discussions and sharing of information is still the most effective way to communicate, whether it be to make a business deal, selling a product or service or merely conveying a personal message to someone close. While we all have to accept and embrace new thinking models in order to improve efficiencies, we should not completely ignore the benefits and uses that personal interaction brings when sharing important knowledge with others. Ignoring this means that we are escalating the loss of opportunities to make a difference by simply becoming more involved with others in person. The RMI is a big family that cares and we unflinchingly support our slogan “belonging is better business”. We believe that we would best achieve success if we find a good balance in our communication with members and stakeholders, using the latest technology and face-to-face interaction. The RMI and its constituent associations are continuously involved in member road shows and attending various meetings, because we believe that there’s nothing like engaging with

Jakkie Olivier, CEO of the RMI our members and stakeholders on a personal level in order to share information, network, learn from each other and collectively find solutions to shape the future of the automotive industry. Let us not ignore the personal touch and the advantages of one-onone communication through active participation and attendance of roadshows and meetings. This is what will make a real difference in the remaining months of 2018. Contact any of our offices (page 8) for more information about the RMI or its constituent roadshow dates for 2018. Alternatively look out for our RMI weekly web letters, which will also list the roadshow dates and venues.

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

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MAY 2018 -

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

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

6 - MAY 2018

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. 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. 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. RMI contact details Head Office: 011-886-6300 | www.rmi.org.za Surrey Square Office Park, 330 Surrey Avenue, Ferndale, Randburg, 2194 RMI Regional Offices: Highveld: Randburg: 011-886-6300; Northern: Pretoria: 012-348-9311; KwaZulu-Natal: Durban: 031-266-7031; Eastern Cape/Border: Port Elizabeth: 041-364-0070; Western Cape: Cape Town: 021-939-9440; Free State/Northern Cape: Bloemfontein: 051-430-3294

www.automobil.co.za

EDITOR’S LETTER

Making cars go

big chunk of this month’s Automobil deals with the energy source that is required to get a vehicle to move from point A to B. We take an in-depth look at the South African Petroleum Retailers Association and the vital work that they do to ensure that every time you pull up to a fuel station there is somebody to fill up your vehicle with the right kind of combustible liquid (page 24). Jake Venter examines the physics needed to move vehicles, even if that means pushing them, and explains all the forces at play in detail (page 30).

The price of fuel is also always a talking point, and we break it down and show you exactly where every cent is going, following the recent increase by government in the latest budget speech TECH COLLEGE(page AD 210x130 50). 2/15/17 8:30 AM Page 3

BMW bosses have indicated that plant Rosslyn will not be developed with the capability to build electric or hybrid vehicles as they believe South Africa’s tax regime punishes buyers of electric vehicles, and there is virtually no recharging infrastructure, and that government’s promises to encourage electric mobility have come to nothing (page 28). On the other hand, Trevor Hill takes and in-depth look at what Audi believes is necessary in order for electric vehicles to succeed globally as well as in South Africa. The German brand has committed that from 2025, all Audi models will feature electrified drive. In coming years they will be launching more than 20 electric cars and plug-in hybrids, spread across all segments and concepts (page 34). C

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The bottom line is that cars driven by people are here to stay. The only thing that might change is the energy source that makes them work. But I suspect that down here in Africa that might still be a couple of years away. Reuben van Niekerk, Editor CY CMY

MAY 2018

NEWS

SPEAK TO US RMI EXECUTIVES

hief Executive Officer: C Jakkie Olivier jakkie.olivier@rmi.org.za Chief Operations Officer: 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 Jeรกnne Esterhuizen (President) Barry Canning (Vice-President) Jakkie Olivier Johann van der Merwe Jaco Koen Franz Maritz Mams Rehaman

Lindsay Bouchier Eugene Ranft Chris Le Roux Dupre Le Roux Les McMaster Vuyani Mpofu Andrea Bogner Ferose Oaten Frank MacNicol

SAMBRA, SAVABA Edwin Martin edwin.martin@rmi.org.za

RMI PARTNERS

TRAINING Louis van Huyssteen louis.vanhuyssteen@rmi.org.za

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

DIRECTORS MIWA Pieter Niemand pieter.niemand@rmi.org.za NADA, MDA Gary McCraw gary.mccraw@rmi.org.za

RMI HEAD RMI HEADOFFICE OFFICE

RMI REGIONAL OFFICES

Danelle van der Merwe Brand and Communication Manager danelle.vandermerwe@rmi.org.za

Highveld: Randburg: 011-886-6300

Neo Bokaba HR Manager neo.bokaba@rmi.org.za Julian Pillay Regulatory Compliance Manager julian.pillay@rmi.org.za 011-886-6300 | www.rmi.org.za Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194

8 - MAY 2015

SAPRA Vishal Premlall vishal.premlall@rmi.org.za TDAFA, MPEA, MIMA Hedley Judd hedley.judd@rmi.org.za

SADFIA, ACRA, ERA Attie Serfontein attie.serfontein@rmi.org.za TRANSFORMATION Joy Oldale joy.oldale@rmi.org.za

Facebook.com/AutomobilSA

@AutomobilSA

Northern: Pretoria: 012-348-9311 KwaZulu-Natal: Durban: 031-266-7031 Eastern Cape/Border: Port Elizabeth: 041-364-0070 Western Cape: Cape Town: 021-939-9440

www.rmi.org.za

Free State/Northern Cape: Bloemfontein: 051-430-3294

Vehicle Testing Association

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HOT STUFF

NEW PRODUCTS

Tork Craft launches ultra-bright Super Torch Tork Craft has just released their new flag-ship high performance Super Torch, a dual LED long-distance flashlight and peripheral wide-angle floodlight for close range area lighting The new quality crafted flashlight is aircraft grade aluminium, with 400 lumens. It measures 19cm long with an extra body grip with a great knurling black finish. Added to this is a handy belt clip and lanyard, plus the anti-roll body and bludgeon head for breaking objects in an emergency.

Honda EU22i Generator - Efficient, Reliable and Compact Honda has added a new generator to its extensive lineup. The new EU22i is a great all-rounder with enough power to run all the essentials. It is compact, reliable and easy to use, while also being small enough to take with you anywhere you go. Weighing at just 21kgs, it is easy to carry, transport, store and fits seamlessly into your lifestyle. Whether you need it for home, recreational or professional use, the Honda EU22i is designed to deliver, and guarantees smooth, uninterrupted electricity wherever you may be. The sound casing keeps noise levels low, making it a super quiet performer, even when running at full throttle, so you don’t have to worry about disturbing those around you. The Honda EU22i is the next generation generator and features Honda’s inverter technology, delivering clean and smooth power. The dual outlets will connect easily to power-sensitive electrical equipment such as laptops or TVs as well as standard household appliances that include hair dryers, irons, coffee machines and toasters. It is also an essential device for adventure and outdoor lovers and will comfortably run all your standard appliances found in caravans too. The Honda EU22i starts first time, every time with Honda’s reliable one pull easy start system. The advanced four-Stroke GXR120 engine delivers up to 2200W with a rated output of 1800 Watts at sea level. Boasting Honda’s unique Ecothrottle technology, the EU22i is designed to offer improved fuel consumption as it runs as fast as the load demands. The result is an extended engine life and lower emissions making it a more environmentally sustainable option, while the wide filler cap ensures spill-free refuelling. Recommended retail price: R15 675 excluding VAT. To find your closest Honda dealer, visit www.honda.co.za

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Tork Craft is distributed by Vermont Sales, for more information contact 011 314 7711 or visit www.vermontsales.co.za

Thule travel accessories now available through WesBank’s WShop Adding Thule travel accessories to a car has just become a whole lot easier, and now existing WesBank account holders can purchase the famous Swedish brand through the WShop – the finance company’s on-line retail portal. With its ‘Bring Your Life’ pay-off line, Thule specialises in making mobility effortless, with a range of sports utility solutions (bike racks and kayak carriers to mention two), luggage boxes and roof racks. These car-specific products can now be financed as a separate, additional loan with WesBank, in instances where customers have car finance directly with WesBank. “We see this as a meeting of two great brands, where both play an important role in enabling people to enjoy hassle-free mobility,” commented Richard Downey from the local Thule agent, SA Sport & Cargo. “Thule products are functional and practical, maximising a vehicle’s usefulness. Being able to purchase select Thule products, and qualify for special offers, is going to make achieving that ideal even easier.” Qualifying WesBank account holders can access the WShop by logging in at www.wesbank.co.za. From this portal they can apply for a CashPower Loan to finance their Thule products.

MAY 2018 -

10 - SEPTEMBER 2017

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SEPTEMBER 2017 -

NEWS

Volkswagen Mobility Solutions Rwanda appoints new CEO

olkswagen Group South Africa has announced the appointment of Michaella Rugwizangoga as CEO of Volkswagen Mobility Solutions Rwanda. The newly-founded company – which has been established in Kigali – aims to provide a range of mobility services. Rugwizangoga, a chemical engineer, has experience in strategic planning, project management and product development. “Being asked to start and run a new company – while having the opportunity to implement a world first in mobility

BMW and Daimler partner on mobility services

“As pioneers in automotive engineering, we will not leave the task of shaping future urban mobility to others” – Dieter Zetsche, Chairman of the Board of Management at Daimler AG

he BMW Group and Daimler AG have joined forces to offer customers a single source for urban mobility services. The two companies have signed an agreement to merge specific business units, subject to approval by competition authorities.

12 - MAY 2018

“The planned merger will pool our resources and send a strong signal to our rivals” – Harald Krüger, Chairman of the Board of Management of BMW AG

According to a statement, the partnership is aimed at expanding mobility offerings in the car-sharing, ride-hailing, electric vehicle charging and multi-modality spheres. Each company will hold a 50% stake in the new venture, but will remain

solutions for Volkswagen – is a challenge I relish and to which I am looking forward,” she said in a statement. Volkswagen will launch the business – which includes a vehicle assembly facility, an automotive training centre, a retail outlet as well as app based ride-hailing and car-sharing services – by mid-year. About $20-million (about R238-million) has been earmarked for investment in phase one of the project. In welcoming Rugwizangoga to the Volkswagen family, Thomas Schaefer,

competitors in their respective core businesses. “The partners intend to offer their customers a holistic ecosystem of intelligent, seamlessly connected mobility services, available at the tap of a finger,” the statement says. “Together, the BMW Group and Daimler AG plan to grow the business model sustainably and enable rapid global scaling of services. “Working as partners, both companies are thereby addressing the challenges that arise from urban mobility needs and changing customer wishes, and cooperating with cities, municipalities and other interest groups to improve the quality of life in major urban areas. “The merger will promote electromobility, for example, by offering electrified car-sharing vehicles, as well as easy access to charging and parking options. As a result, it will become even easier to experience and use sustainable mobility services.”

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Chairman and Managing Director of Volkswagen Group South Africa, described her as “a worthy asset.” “Rwanda’s forward thinking attitude to technology and development is one of the reasons we saw potential in this country. I believe that the initiatives we will be introducing – together with the support of Volkswagen partners and Michaella’s experience – will prove to be successful.” Meanwhile, Kia Motors has announced the opening of a new Green Light Project (GLP) Vocational Training Centre in Rwanda, aimed primarily at teaching agricultural skills to young adults. The facility is located in the Gahengeri Sector of the Rwamagana district in Rwanda’s Eastern Province. By

According to Harald Krüger, Chairman of the Board of Management of BMW AG, combining the two companies’ mobility services is aimed at creating a unique digital ecosystem. “While we remain competitors when it comes to producing premium quality vehicles, the alliance will make it easier for our customers to discover the emissionfree mobility solutions of the future. The planned merger will pool our resources and send a strong signal to our rivals,” he said.

establishing the centre, the Korean automaker hopes to foster greater selfsufficiency in the region, helping local communities generate sustainable income from agricultural sales. The centre will not only act as a job training facility – it will also provide an agricultural machinery rental service and incubation programme for local farmers, supporting new and existing farms with regard to harvesting, sales and distribution. The project is the latest in Kia’s global GLP programme, which aims to improve access to healthcare, education and employment. The company has established projects in six other neighbouring African countries – Tanzania, Mozambique, Malawi, Kenya, Uganda and Ethiopia.

Jaguar teams up with Waymoservices

aguar Land Rover and Waymo have announced a long-term partnership that aims to develop the world’s first premium self-driving electric vehicle. Waymo – formerly Google’s self-driving car project – will work with Jaguar Land

Rover to design and engineer I-Pace models for the ride-hailing company’s driverless transportation service. Spokesmen for the companies say the long-term strategic collaboration is aimed at furthering Waymo’s and Jaguar Land Rover’s shared goals: to make cars safer, free up people’s time and improve mobility. Tests of the vehicles – which will be equipped with Waymo’s self-driving technology, will begin later this year. According to a statement released by the companies, up to 20 000 I-Pace units will be built in the first two years of production, serving a potential one million trips per day. The I-Pace was launched recently at the Geneva Motor Show and represents Jaguar Land Rover’s first full-electric SUV. The company is committed to investing heavily in autonomous, connected and electrified technologies. Waymo – the only company to test unmanned autonomous drive vehicles on public roads – is scheduled to launch later this year the world’s first commercial, selfdriving transportation service. Ralf Speth, CEO of Jaguar Land Rover, said joining forces with Waymo had been driven by a need to advance smart mobility, which required expert partners. “In joining forces with Waymo we are pioneering a push to extend the boundaries of technology. Together we will deliver the self-driving Waymo Jaguar I-PACE with the grace, space and eco-pace that customers expect.”

Dieter Zetsche, Chairman of the Board of Management at Daimler AG, said his company was vigorously pursuing its transformation from vehicle manufacturer to provider of mobility services. “As pioneers in automotive engineering, we will not leave the task of shaping future urban mobility to others,” he said. “In the future, there will be more people than ever before without a car who will still want to be extremely mobile. We want to combine our expertise and experience to develop a unique, sustainable ecosystem for urban mobility.”

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Jaguar’s Waymo emblazoned I-Pace on display at the recent New York International Auto Show

MAY 2018

NEWS In the new XC60, Euro NCAP’s best overall performer in 2017, Volvo’s City Safety Autonomous Emergency Braking system has been enhanced with steering support for when automatic braking alone may not help avoid a potential collision.

Volvo’s XC60 wins World COTY Title Celebrating victory… Håkan Samuelsson, President and CEO of Volvo Cars, with the World Car of the Year, the brand’s XC60

olvo’s XC60 midsize SUV has been named World Car of the Year 2018, adding another honour to the brand’s growing list of automotive accolades. The presentation was made last month at the New York International Motor Show following a vote by an international panel of motoring journalists. Earlier this year the XC60 scooped the prestigious North American Utility of the Year Award while, in March, the brand’s XC40 small SUV was named European

Car of the Year at the Geneva Motor Show. The World Car of the Year win is the first in the competition for Volvo. In accepting the award, Håkan Samuelsson, the company’s President and CEO, said he was pleased to see the brand’s product investments paying off. “We are up against some tough competition, but this award for the XC60 shows that Volvo has the right combination of design, connectivity and safety to appeal to customers across the world.”

In addition, Oncoming Lane Mitigation with Steer Assist (which helps to mitigate head-on collisions) and Blind Spot Information System (BLIS) with Steer Assist functionality, has been added to reduce the risk of lanechanging collisions. The XC60 is available with a range of diesel and petrol engines as well as Volvo Cars’ award-winning T8 Twin Engine petrol plug-in hybrid at the top of the powertrain range. According to a spokesman for Volvo Cars South Africa, the XC60 will be launched here in mid-year. At the show, Audi’s A8 was named the World Luxury Car for 2018, while BMW’s M5 scooped the World Performance Car of the Year title. Other winners included Range Rover’s Velar (World Car Design of the Year); Nissan’s Leaf (World Green Car of the Year) and Volkswagen’s Polo (World Urban Car of the Year).

Porsche SA opens new sales facility

orsche South Africa has invested in a new Porsche Studio in Cape Town. Situated at the Victoria and Alfred Waterfront, the facility adopts an innovative sales format, aimed at enabling the brand to interact with a wider target group. “Being the first Porsche Studio in the Southern Hemisphere, visitors will enjoy an immersive brand experience, highlighting a range of Porsche services,” says a statement issued by the company.

14 MAY 2018

The Porsche Studio works closely with the existing Porsche Centre in Cape Town, making it possible for customers to purchase vehicles directly from the new outlet. Should a visitor be interested in making a purchase, the vehicle of choice can be tailored to meet individual tastes. “Porsche is continuously evolving and developing the sales landscape; the Porsche Centres are still at the heart of this, meanwhile the sports car manufacturer and its sales partners are also exploring new approaches to reach a growing global audience,” the statement says.

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MAY 2018

NEWS based lighting modules such as LED modules for front and rear headlights, laser modules and light control units. The company would be based near Munich, Germany, but would operate globally to ensure rapid development cycles. American operations would be based in Hendersonville, Tennessee.

Osram, Continental form JV

echnology companies Osram and Continental have agreed to form a 50/50 joint venture company with a view to developing lighting, light control and electronics technology for automotive applications. The venture

is expected to begin operations in the second-half of 2018. In a media statement, spokesmen for the companies said the joint venture’s product portfolio would feature semiconductor-

“By joining forces, we will be in an even better position to drive innovation by working closely with the automotive industry, seamlessly integrating lighting, sensor technology and electronics in a single application,” said Hans-Joachim Schwabe, CEO of Osram’s Specialty Lighting division. Andreas Wolf, head of Continental’s Body and Security Business Unit, said the aim of the venture was to drive technological change in the automotive lighting market and to develop intelligent lighting solutions through combined expertise.”

Cape Automotive Forum attracts interest

hough it is scheduled to take place only in October, the first Cape Automotive Forum, supported by Automechanika, has already attracted interest from exhibitors and conference delegates, according to organisers Messe Frankfurt South Africa. In a statement, company spokesman Joshua Low says the Forum is aimed at serving the local motor industry between biennial Automechanika Johannesburg trade fairs. “There will be two aspects to our first Cape Automotive Forum: an exhibition and a very informative two-day conference which caters to the automotive

16 MAY 2018

aftermarket and the commercial vehicle market in the Western Cape. “The Forum will bring together key industry stakeholders as well as trade buyers and sellers with the opportunity to network and conduct business over two days.” According to Low, the Western Cape was selected as the venue because it has the second highest number of registered motor vehicles in South Africa, while Cape Town is the most populous city in the country with the biggest number of independent body repair shops. “In addition, we decided to add a commercial vehicle exhibition to our

offering as the Western Cape has several major truck body builders, besides being the largest agricultural market in the country for fruit, with many wine farms in the area, all of which require trucks and trailers to transport goods.” Though the conference programme and speakers are in the process of being finalised, topics to be discussed include the future of e-retailing in the automotive aftermarket, education and learning, the automotive revolution, the state of the SA economy and its effect on the automotive sector, changes in BBBEE codes and their implications as well as Doing Business in Africa.

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APRIL 2018

NEWS

Mazda gears up for Zoom-Zoom 2030

azda South Africa has released details regarding its Japanese parent company’s strategy for long-term automotive technological development. Dubbed Sustainable Zoom-Zoom 2030, the plan includes not only electrification of vehicles and, from 2020, the development of autonomous drive models but, from next year, the introduction of the world’s first commercial petrol engine to use compression ignition. Called Skyactiv-X, the internal combustion unit will be fitted to a number of models as part of Mazda’s vision to continue to provide driving pleasure – which it considers to be the fundamental appeal of vehicles – to help to solve mobility issues. The revolutionary powerplant is said to combine the free-revving characteristics of a petrol-fed engine with the fuel efficiency, torque output and fast initial response of a diesel unit thanks to its proprietary Spark Controlled Compression Ignition (SPCCI) technology.

“Together, these groundbreaking technologies synergistically support Mazda’s world-renowned Jinba Ittai driving experience,” says a statement issued by the company. Literally translated, Jinba Ittai means horse and rider in perfect harmony and, to realise the benefits the synergies provide, Mazda’s development team is said to have reviewed every aspect of its new car platform.

The SPCCI system is described as providing seamless transitions between spark ignition – utilising a conventional air-fuel mixture – and compression ignition fuelled by an extra-lean mix. Advantages are said to include high power output and fewer emissions, coupled with superior low-end response and improved fuel economy.

“Resulting innovations include a vehicle body with multi-directional ring structures to transmit inputs without delay; chassis structures in which each part interacts smoothly to control energy transfer to the sprung mass; redesigned seats that keep the pelvis upright to maintain the spine’s natural curve; and noise, vibration and harshness performance meticulously optimised based on energy characteristics and the mechanisms by which humans perceive sound,” the statement says.

At the same time, Mazda has developed a new vehicle platform – dubbed Next-Generation Skyactiv Vehicle Architecture – which has intensified focus on the company’s human-centered design philosophy.

One of the first models to utilise the upgrades is the Kai (pictured) – a hatchback concept which was unveiled late last year at the Tokyo Motor Show and which is said to herald the look of Mazdas to come.

18 MAY 2018

Tenneco buys Federal Mogul

oss-making auto parts company Federal-Mogul, owned by US investor Carl Icahn, has been bought in a deal worth $5,4-billion (about R64,75-billion) by aftermarket ride performance specialist Tenneco. In a statement, a Tenneco spokesman said the company intended to split Federal Mogul into two separately listed entities, one concentrating on aftermarket parts and ride know-how, and the other on powertrain technology. The acquisition is expected to be finalised in the second half of 2018, subject to regulatory and shareholder approvals, with the separation occurring in the second half of 2019. In terms of the deal, Icahn Enterprises will get $800-million (about R9,5-billion) in cash as well as shareholdings in the new companies. Icahn Enterprises bought a majority stake in Federal Mogul in 2008 and took full ownership of the company last year.

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SEPTEMBER 2017 -

RMI UPDATE

NADA pays tribute

From left: Bruce Allan, former NADA Chairman; Lindsay Bouchier, Lifetime Achievement winner and Lindon Hett, Market Leader, Middle East & Africa, Sewells-MSXI

anny da Canha and Lindsay Bouchier, stalwarts of South Africa’s automotive retailing sector, were recently honoured by the National Automobile Dealers’ Association (NADA) when they were presented with Lifetime Achievement Awards for contributions made to the country’s motor industry. The awards were presented at the Sewells-MSXI/NADA Business of the Year function held in March at the Kyalami Convention Centre.

Paying tribute to his former colleague, Harvey Adler, Operational Head of Vehicle Import and Distribution at Motus Corporation, described Manny as an entrepreneurial mover and shaker who was arguably without equal in the history of the South African motor industry, citing as an example the fact that he introduced or reintroduced 18 car and motorcycle brands to the country between 1996 and 2013.

“Manny was ahead of the game, running on Duracell batteries – no maintenance Da Canha, who retired last year as an required and lasting six times longer,” Executive Director of Imperial Holdings he said. “He epitomises the belief that, Limited and as Chief Executive Officer of where economies and corporations allow Associated Motor Holdings, was responsible businesses to flourish, entrepreneurs create for the importation and distribution of a opportunities for new consumer interests to variety of motor brands in South Africa. develop and grow.”

20 MAY 2018

Da Canha was introduced to the local motor industry and particularly to Imperial Holdings, in the 1970s. However, in 1986 he decided to emigrate to Australia due to political and economic uncertainty in South Africa. He joined Automotive Holdings, the largest privately owned automotive group in Australia, where the concept of multifranchise dealerships was entrenched. However, when the business climate in South Africa began to change with the opening up of more trade opportunities, Bill Lynch, then head of Imperial Holdings, persuaded Manny to return to South Africa. Da Canha agreed, but only on his terms, which included a desire to import cars.

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From left: Harvey Adler, Operational Head, Vehicle Import and Distribution, Motus Corporation; Manny de Canha, Lifetime Achievement winner; Lindon Hett, Market Leader, Middle East & Africa, Sewells-MSXI and Bruce Allan, former NADA Chairman

He arrived back in 1995 and formed Associated Motor Holdings (AMH) under the Imperial umbrella. His arrival coincided with the introduction of the Motor Industry Development Plan (MIDP), which included a phasing down of import duties on built-up vehicles. This environment saw Manny embark on an aggressive vehicle importation growth strategy that was to continue for two decades. Brands introduced or re-introduced to country by AMH during the period included: Renault (1996), Daihatsu (1997), Kia (1998), Hyundai (2000), Citroën (2001), MG and Rover (2001), Bentley (2002), SsangYong (2002), Kawasaki and Triumph motorcycles (2004), Proton (2005), Tata (2005), Chery and Foton (a joint venture with Bidvest Auto), Lamborghini (2012) and FAW cars (2013). Adler concluded by saying: “Manny is a pioneer in the South African motor industry by growing vehicle brands, establishing world class dealership facilities. This resulted in creating employment together with a commitment to the development and education of employees, while providing the South African public with high quality products, variety, and affordable motoring.”

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Da Canha’s impact on the local industry is summed up very well in the NADA citation covering his achievements: “In recognition of his tenacious passion and relentless dedication over many years to changing and improving the trading environment within the South African retail automotive sector. Manny’s legacy of inspirational leadership will be etched in the annals of the South African motor industry.” Similarly, Lindsay Bouchier’s outstanding contributions to the motor industry were honoured by NADA. In presenting him with a Lifetime Achievement Award, the association said in its citation: “In recognition of Lindsay’s exemplary dedication and extraordinary contribution of many years to improving the trading environment of motor vehicle dealers. His legacy of outstanding contributions and diplomatic leadership will be etched in the annals of the South African motor industry.” Paying tribute to Bouchier, NADA Director Gary McCraw, said: “Lindsay is the embodiment of an individual who believes in giving back to his peers and sees the retail motor vehicle business as a divine calling.” McCraw added: “In 1992, a quiet, yet confident dealer principal walked into

the NADA Border regional annual general meeting and was elected chairperson. He took on this portfolio with enthusiasm, actively tackling and addressing matters impacting on motor dealers. “He did it so well that he was reelected year after year. He held the portfolio for 25 consecutive years and is the longest serving NADA regional chairperson and member of the NADA National Executive Committee. “Lindsay was elected Border regional chairperson of the Retail Motor Industry organisation (RMI) in the same year that he became head of NADA in the region. This meant many years of involvement with the RMI board of directors, RMI audit and risk committee and MIBCO. “Lindsay was due to retire recently, but instead joined his son in his dealership business so as to share his wealth of experience with the dealership team. He also took on the challenge of becoming president of MIBCO to serve the broader industry. “If anyone deserves recognition for a NADA Lifetime Achievement Award, it should certainly be Lindsay Bouchier,” McCraw concluded.

MAY 2018 -

ASSOCIATION OF THE MONTH

Getting to know the new NADA chairman Mark Dommisse was recently appointed Chairman of NADA. Automobil asked him a couple of questions Please give a little bit of background on yourself I am the Managing Director and Partner of North Motor Group. We are an independent Motor Group, representing four Dealerships, and five different Brands. Honda, KIA, Mitsubishi, Mahindra and Ford. We have two Dealerships in Johannesburg, and two in Cape Town. Our focus has been on multifranchising, which has been very successful. What does the position of NADA chairman entail? To me, this is to make sure our Industry and Businesses get a voice in the various challenges that face us including BEE and Transformation, the OEM / Dealer relationship, and major legislative challenges that plague our industry. What are you looking forward to in this position? The digital retail world is putting a lot of pressure on our traditional retail bricks and mortar footprint. This is going to present a lot of challenges on our business model, and the investment risk that dealers face. We need to be aware of this, and not become Meter Taxis. What do you regard as the biggest challenges facing motor vehicle dealers, and what strategies would you like to implement to overcome these challenges? Specifically in South Africa we have transformation challenges, especially with regards to strong barriers to entry in the form of capital and borrowings, and a serious skills shortage.

22 - MAY 2018

What do you think is the life expectancy of the dealership format as we know it today? Five to seven years. I wouldn’t be rushing to sign a 10-year lease today, without the undertaking from the OEM that you will be protected in terms of future retail strategy changes. If it does happen in South Africa, how do you see the move to online shopping happening? I think we will have less showrooms, with more OEM ‘ownership’ or subsidy of this part of our business. workshops and used cars will be more of our focus, in less expensive areas with a less expensive footprint. Should the footprint remain in the ‘High Street’, this will have to be OEM-owned, or subsidised, as has already happened for some time in Europe, or in the expensive cities around the world. What are some of the initiatives that NADA is currently working on or will be working on in the near future? The following issues are major focus areas for NADA: • FIC Amendments – changing dealers to accountable institutions and the relevant requirements for compliance; • Competition Commission Code of Conduct for the Automotive Industry – how this relates to the “Right 2 Repair” campaign being promoted by the independent repair industry; • Review of Master Service Agreements given the recent FIC amendments and other related financial services legislative amendments; • The scrapping of structurally unsound

motor vehicles (Code3) – key consumer safety issue - to ensure that these vehicles do not find their way back into the market; • NADA’s annual Dealer Satisfaction Survey (DSI); • Engagement with the SAPS regarding certain exemptions in terms of the requirements of the Secondhand Goods Act; and • Membership retention and growth is always a key issue so as to ensure that we have the necessary representation when engaging with Government, and other institutions or role players. What strategies are in place to counter the current movement towards Right 2 Repair? We are very pro customers having transparency in their buying decisions. However, we will not compromise on the safety of the customers, or accept untrained, unskilled and underequipped technicians working on vehicles that are exceptionally complicated. NADA is activity engaging the Competition Commission in this regard and hopefully the final Code will be well balanced to ensure that consumers get the best possible service, whilst the industry in its broadest context remains economically viable and able to grow and thus employment will be protected a key factor given the high levels of unemployment in SA. What are your thoughts on the next phase of the APDP programme, and how do you see it affecting the newcar market? We believe Government is committed to investing in this industry which contributes significantly to GDP. We are very excited as to seeing the next phase of APDP.

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MAY 2018 -

ASSOCIATION OF THE MONTH

The South African Petroleum Retailers Association represents and promotes the interest of petroleum retailers in South Africa.

NEC Members standing from left to right: Rajen Singh – KZN Chairman, August Fleischman – Northern Region Chairman, Henry Van Der Merwe – Highveld Chairman (interim), Dupre Le Roux – Western Cape Chairman, Vishal Premlall – SAPRA Director, Sello Molemela – Bloemfontein Chairman, Giselle Schoeman – PA to Director, Bonile Sigenu – East London Chairman and Chris Opperman – Port Elizabeth Chairman

24 - MAY 2018

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APRA strives to contribute to the growth and profitability of Fuel Retailers by helping to create a sustainable environment and to make fuel retailing a business of choice for investors and business people. The Petroleum Industry in South Africa is going through a number of significant changes. For this reason the SAPRA strategic intent, “To influence the roleplayers in the Fuel Industry value chain in such a way, that we positively contribute to a sustainable downstream Fuel Industry for all fuel retailers”, remains fundamental to the directing all of its activities. During the past year the SAPRA Director and members of the National Executive

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Committee (NEC) met and engaged with key stakeholders in ongoing efforts towards protecting the business value of each of its members. Value-added services were promoted, and member engagement renewed with numerous members who were assisted in a number of wide ranging issues.

industry in achieving meaningful transformation that is fair and reasonable, practical, implementable, and sustainable. SAPRA is committed to the NDP for South Africa and believes that many of the ambitious targets set in the NDP may be achieved through meaningful transformation.

The bulk of SAPRA’s activities are centered around Membership retention and growth; Industry role player and Stakeholder engagement; Formulating and communicating formal positions on crucial industry issues and Assisting members on numerous matters

SAPRA is a member of the Petroleum Liquid Fuel Charter Steering committee tasked with drafting scorecards for the various sectors in the Fuel Value Chain. The SAPRA National Executive Committee, together with other senior industry stakeholders, had many meetings to formulate relevant comment for consideration by the PLFC. The PLFC has proposed possible roadshows during the

Transformation SAPRA is committed to assisting the

MAY 2018

ASSOCIATION OF THE MONTH

sixty-day public participation comment period. SAPRA is contemplating alignment to the proposed roadshows to give retailers a clearer understanding of how the codes will impact. Goodwill discussions In January 2018, the SAPRA NEC met briefly with senior industry stakeholders to form a position on Goodwill as currently practised in the retailer space. The many concerns that emanated from the session warranted further investigation into some of the practices. To this end, discussions ensued with various statutory bodies, industry stakeholders, legal and other related parties. Role in SA Labour Law A challenge that most fuel retailers face at some point is labour disputes. The management of fuel retail staff must follow specific guidelines in order to adhere to South African labour law. Understanding these laws and implementing proper Labour law measures will prevent future disputes from negatively affecting business. SAPRA plays a vital role in advising fuel retailers about basic labour law practices and implications. Role in Health and Safety A fuel station deals with high volumes of flammable materials. It is therefore imperative that safety measures are in place to prevent fire damage and other related injuries. Motorists are also sometimes reckless at service stations, and

26 - MAY 2018

there are a number of space requirements that must be adhered to for easy navigation in and through the facility. In all matters related to a fuel retail outlet, SAPRA advises members on what health and safety matters should be noted and implemented. Interaction with Industry Role Players The regulated petroleum industry in South Africa continues to be dominated and directed by a number of important role players. SAPRA places a high priority on being recognised as one of these role players, and having regular and meaningful interaction with other players, particularly in the Department of Energy. SAPRA continues to build on the positive relationship with the Department of Energy in order to play an active role in formulating policy and implementing decisions. Meetings held with DoE officials were positive and constructive, and important discussions took place on a variety of fundamental issues not limited to, but including the following: • The transformation of the Petroleum Industry • The Regulatory Accounting System margin mechanism • Benchmark service station capital and operational cost survey The Regulatory Accounting System margin mechanism (RAS)

SAPRA took the responsibility of doing a comprehensive review of the RAS implementations over the past four years. A number of anomalies were discovered which were brought to the attention of the DoE. SAPRA’s constructive and factual contributions in this regard were acknowledged and incorporated by the DoE at numerous meetings and workshops. SAPRA was also very successful in assisting a number of members to resolve their RAS margin negotiations with their wholesale petroleum suppliers. Benchmark service station capital and operational cost survey. The review of RAS and the benchmark service station capital and operational cost survey remains another key priority that SAPRA gave attention to. SAPRA has given its full support to the DoE in this regard and will ensure that its members’ interests and margins are protected. Other role players Engagement with individual oil companies was also on the SAPRA agenda. Meetings were held to discuss and resolve relevant member issues and to find common ground in numerous important industry matters. SAPRA also engaged with various suppliers to the petroleum industry to consider and promote products and services that contribute to improving efficiencies and margins of the members.

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MARCH 2018 - 27 A Division of Imperial Group Limited

INSIDE LINE

Plant Rosslyn: Where is BMW heading? David Furlonger attends BMW’s Annual General Meeting in Munich – and gets some insight into BMW’s thinking regarding its manufacturing facility at Rosslyn, near Pretoria

t was a rare moment of candour. Following two hours of questions in which BMW management executives had tried to reveal as little as possible about the company’s plans, global production head Oliver Zipse warned South African government officials that if they tampered unnecessarily with future automotive policy, the country could face an exodus of multinational motor companies. Fiddling with export benefits or local content requirements would be ‘very dangerous,’ he warned. Zipse, who is also chairman of BMW South Africa, was speaking in Munich after the German carmaker’s annual results presentation. What should have been a routine question and answer session with the world’s media had turned out to be anything but, following a raid the previous day on BMW’s offices

28 - MAY 2018

in which German law enforcement agencies searched for documents related to diesel emissions.

country – worried about government plans for land expropriation without compensation?

Inevitably, questions about the raid surfaced during the media conference. Just as inevitably, they were deflected with protestations and assurances of ‘we are co-operating with police.’ But this defensiveness seemed to permeate the rest of the event, causing CEO Harald Krueger and most of his fellow board members to offer bland statements regarding many of the results-related questions that came their way.

“We have been in South Africa for more than 50 years and have seen a lot of policies and different developments. We won’t comment directly on expropriation at this time, but we have always believed in the strength and future of the country, and that won’t change in view of what the government is doing.”

It was a relief when Zipse answered openly on developments in South Africa. Admittedly, he began cagily. Was BMW – which has just completed a R6,2-billion investment programme to build the X3 sports utility vehicle in the

Zipse confirmed that BMW was ready to pay its share into an industry venture capital fund to support blackowned components suppliers and dealerships. The fund is expected to start at about R3,5-billion and will require an estimated R1-billion annual top-up.

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Harald Krueger, BMW CEO

companies. That’s more than twice BMW SA’S current level. While local MD Tim Abbott says the company will look for more black suppliers, economies of scale leave little room for manoeuvre. Zipse again: “Increasing local content for its own sake will not help. For us it will remain around where it is. Whatever South Africa does to push manufacturers into localisation will have the opposite effect—in my view it will force them to leave.”

So far, so safe. But then Zipse got on to government policy and discussions on a successor to the Automotive Production and Development Programme (APDP), which will expire at the end of 2020. There’s talk that government wants to reduce the rate of import-duty rebates offered in exchange for vehicle exports – and that poses a big challenge for companies such as BMW SA, which exports most of its production. Zipse said: “The South African market works because we get export credits for cars built there and use them to import other cars. If you endanger that, there is no reason why we should have a plant in the country,” he said. Then there’s local content. Trade and industry minister Rob Davies has spoken of setting a 60% target for all motor

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But what if the German parent pushes more business BMW SA’s way – won’t that create the economies of scale to justify more localisation? When the X3 investment was announced in 2015, BMW SA’s Rosslyn assembly plant was to be one of only two in the world to build the new model. So when it became clear BMW had seriously under-estimated international demand for the product, there were hopes that Rosslyn might benefit and become more than just a niche or ‘topup’ producer. No such luck. Instead, BMW opted for an additional plant in China. Rosslyn is as big as it’s going to get, said Zipse. Its new 78 000 annual production capacity is the absolute limit. Despite this, he said the R6,2-billion investment should be seen as a vote of confidence in the plant’s future. Local demand for the 3-Series, which began production at Rosslyn in 1985, had

Oliver Zispe, chairman of BMW South Africa

begun to fall away, with current sales about half of what they were a few years ago. “There must be demand for vehicles where they are built, so to continue with 3-Series would be to give up,” said Zipse. Instead, BMW had decided to produce the X3 at the plant, which represented an upgrade in that the new vehicle had a growing future not only in South Africa but also in the rest of Africa. Asked whether BMW’s manufacturing future in the country included electric vehicles, Zipse was at pains to point out that the company’s assembly plants worldwide were being developed with the capability to build electric or hybrid versions of all their products – except Rosslyn. The reason? South Africa’s tax regime punishes buyers of electric vehicles, and there is virtually no recharging infrastructure for the vehicles. Government promises to encourage electric mobility have come to nothing. “There must be relevance in markets where we build,” said Zipse. “If there were demand in South Africa we could easily adjust production – but that’s a long way off.”

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

MAY 2018 -

TECH TALK

FORCE, TORQUE, WORK, ENERGY and POWER Each of the above concepts has developed slowly from the past experience of practical men, and it’s impossible to understand an engine’s potential without knowing what they mean. Jake Venter focus on where these concepts come from, as well as how they apply to vehicles.

FORCE Kinematics, the study of motion, was initially taken up by the ancient Greeks, but they couldn’t make much headway. They invented the concept of a force, and understood that a force sometimes moves a body and sometimes cause stress, but couldn’t develop the correct relationship between force and motion. This was done by the Italian Galileo Galilei (1564 to 1643) and refined by Sir Isaac Newton (1643 to 1727) who admitted that he achieved fame by standing on the shoulders of giants. Galileo conducted experiments with wooden balls running down inclined planes. He discovered that if two planes faced each other then a ball running down one plane will only

30 - MAY 2018

go up to almost the same height on the other plane, no matter at which angle the planes were set. He assumed (correctly) that the slight difference in heights was due to the friction between the ball and the surface it’s running on. He then realised that if the second plane was taken away the ball would not have to climb any incline. Friction was then the only force that tried to stop the ball. If there was no friction the ball would run forever. He finally stated what would later become Newton’s first law of motion: Every object will remain at rest or in uniform motion in a straight line unless compelled to change its state by the action of an external force.

Newton’s second law supplies the definition of a force: The acceleration of an object is directly proportional to the magnitude of the force and inversely proportional to the mass of the object. This can be written as force = mass x acceleration (f = ma). One newton (N), the metric force unit, is defined as the force that causes a one kilogram mass to accelerate at one metre per second squared. You can get some idea of how small a newton is by holding a 100 gram (0,1 kg) onion in your hand. The earth will pull it downwards with an acceleration of nearly 10 m/s2. The force on your hand is given by Newton’ second law f =0,1 x 10 = 1 N. (This result is an example of Newt-onion mechanics).

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Galileo conducted experiments with wooden balls running down inclined planes. He discovered that if two planes faced each other then a ball running down one plane will only go up to almost the same height on the other plane, no matter at which angle the planes were set

WORK A force is said to do work when its point of application is displaced in the direction of the force against a resistance. This definition first appeared in print in a book published by the French engineer Gaspard-Gustave de Coriolis (1792 to 1843). If you push a car, the work done is the force you apply multiplied by the distance you pushed the car. If you applied 200 N and pushed the car 100 metres the work done will be 200 x 100 = 20 000 newton.metres (N.m) or 20 kilonewton.metres. This equals to 20 kilojoule because one N.m = one Joule (J), the preferred unit for work, to avoid confusion with the torque unit.

The 1698 steam engine invented by Thomas Savery from the romance of DF6W2D

TORQUE When an object moves in a straight line we only need to know the forces involved to estimate its behaviour. This is not good enough when rotation takes place. For example, when you close a door, the size of the force you need depends on where you apply the force. If you apply it near the handle a small force will be sufficient, but if you apply it near the hinge you may find it nearly impossible to close the door. This shows that for rotation you also need to know the shortest distance between the point of application of the force and the hinge. The correct concept to use in this case is the torque, defined to be the force being applied times the distance defined above. Torque is measured in newton.metres (N.m) and if you hold the above onion at armâ&#x20AC;&#x2122;s length and

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your arms are nearly one metre long, the torque measured at your shoulder would be one newton x one metre = one N.m The concept was developed by Archimedes who lived around 200 BC and studied the action of forces and levers. Torque values are very useful when describing the performance of engines because the latter rotate. The easiest way to understand the torque concept is to see it simply as the rotational equivalent of a force, i.e. it plays the same role in rotation as the force plays in linear motion. Similarly, the angle turned through by a rotating object, i.e. the angular distance, plays the same role in rotation as played by the linear distance in linear motion.

ENERGY Energy is the capacity for doing work, i.e. it is a theoretical calculation of the work that some object is capable of doing. lt is only called work once it has been done. Energy exists in many forms, such as kinetic, potential, electric, chemical, heat, atomic, etc., but it cannot be created or destroyed. lt can only be changed from one form to another, and the many different units can all be translated back to joules. For example, the chemical energy in petrol is changed into heat energy by the combustion process. This results in the moving of parts inside the engine, and hence the complete car gaining kinetic energy (energy due to movement), which enables it to speed up. When the car brakes, the kinetic energy is changed back into heat energy. A wonderful illustration of the energy concept is to try and discover what you have to do to get the 20 kilojoule worth of energy back that you wasted

MAY 2018 -

TECH TALK

by pushing your car. lf you look at the average one-litre carton of orange juice, you'll see that it contains just over 200 kilojoules worth of energy. This means that if you drink one-tenth of a litre of orange juice (20 kJ) your body will return to its previous energy level. POWER Power is the rate of doing work, i.e. the work done divided by the time taken. If your carâ&#x20AC;&#x2122;s engine started after 40 seconds, then you supplied 20 000/40 = 500 watts or 0,5 kW worth of power, which makes you a very fit person. The average grown male can maintain 300 watts for a short while. The concept was introduced by James Watt (1736 to 1819). He was a Scottish inventor and engineer whose modifications from 1781 onwards to the primitive steam pump invented by Thomas Savory (1650 to 1715) in 1698 played a major role in the spread of new manufacturing processes. This signalled the start of the industrial revolution that began in the middle of the 18th century in Great Britain. Watt teamed up with Mathew Boulton, and their company built hundreds of steam engines that initially replaced the horses that were employed to drive pumps to remove water from mines. This forced Watt to compare the amount of work that a horse can do with what one of his engines can do. This was not an easy task. In 1702 Thomas Savery wrote in The Minerâ&#x20AC;&#x2122;s Friend:

32 MAY 2018

So that an engine which will raise as much water as two horses, working together at one time in such a work, can do, and for which there must be constantly kept ten or twelve horses for doing the same. Then I say, such an engine may be made large enough to do the work required in employing eight, ten, fifteen, or twenty horses to be constantly maintained and kept for doing such a work. Watt decided that a straightforward comparison between his engine and one horse is good enough. There was no need to involve the number of horses needed to work continuously. He therefore consulted some millwrights that maintained horse-driven water pumps and calculated that the average horse can work for two hours at a rate of 32 987 foot.pounds per minute, so Watt rounded it off to 33 000 ft.lbs/min and this eventually became the accepted definition for one horsepower (HP). At present, the term horsepower is falling out of favour because it belongs to the Imperial system of units that have varying and awkward conversion factors. The metric system, used everywhere except in the USA, Myanmar and Liberia, and only half-heartedly in Great Britain, uses the watt, named after James, for their unit of power. Since one horsepower is equal to 746 watts, your output when pushing the car is also equal to 500/746 = 0,67 HP.

TORQUE VS POWER The formula that connects these two concepts is: kW = TR x 2(pi)/60 000, where T = N.m, R = r/min. When considering the performance of a vehicle, the fact that the definition of torque does not incorporate time means that all aspects of performance not time-related are determined by the shape of the torque curve. A carâ&#x20AC;&#x2122;s pulling power up a hill, its ability to go slowly in a high gear, or to pull a caravan without constant gearchanging, are aspects of its performance that are controlled mainly by the torque delivery, since these aspects cannot be measured with a stop-watch. However, the formula for kilowatts tells us that the revs per minute (i.e. time) plays a role as well as the torque. Consequently, all aspects of performance that can be measured with a stopwatch are determined mainly by the torque/time combination, which we call power. Maximum speed and acceleration fall into this category, and here kilowatts dominate.

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

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To locate your nearest branch, call 011 879 6000 or visit www.adco.co.za

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MAY 2018 CH6405

TECHNOLOGY

A Roadmap to Premium Electric Mobility South Africa can do more to create market access and deliver on an operating environment that makes for good business, writes Trevor Hill â&#x20AC;&#x201C; Head of Audi South Africa. other industry partners, must fuel the development and implementation of charging stations around the country. 2) We need a deliberate product road map matched to our infrastructure reality: Electrification won't happen overnight, so we need to build a road map that accommodates hybrid vehicles and that can accommodate any future shifts to fully electric vehicles as and when new technology is phased in. Trevor Hill

ompetition in the premium automotive market is fierce, but there is an elephant in the room. The demand we create for alternative mobility technologies (be it fully electric or hybrid) brings with it a very real infrastructure gap.

it cannot be the job of the automotive industry alone. In the premium segment where the desire to drive ahead of the curve is expected, the introduction of new technologies around electrification and artificial intelligence creates real opportunity.

Not addressing this today, will unfortunately prevent any meaningful ability for the local automotive sector to competitively participate in global trends. Doing this right would mean that we can deliver on local customer demand while still operating globally as a competitive automotive investment destination.

What the South African automotive segment does not need is potential. What it does need is a practical and inclusive plan that supports the growth needed â&#x20AC;&#x201C; and more importantly enables both education and adoption for a new world of mobility. To overcome the chicken and egg conundrum, we suggest five key focus areas:

There is a firm reality: staying ahead of the pack means constantly innovating current technologies that, to a large degree, progresses the automotive segment as a whole. The downstream benefit of product innovation is clear, but

1) We need increased investment in building an infrastructure footprint that actually supports alternative mobility solutions: The automotive industry, in partnership with government and

34 - MAY 2018

3) We need a policy environment that makes good sense and enables the product and infrastructure needs: Currently import duties on electric vehicles are high. Electric vehicles get charged a duty of around 25%, while conventional vehicle imports get charged 18%. Additionally, an ad valorem tax, which is usually charged on luxury items, is also applied to electric vehicles. So the tax on electric vehicle imports stands at about 42% in total. Government needs to look at this policy and reduce import taxes to make the future of mobility less expensive. 4) We need to increase the size of the pie. A clear and consistent growth plan creates a more stable business environment and, more importantly, stabilizes the currency fluctuation impact on the Rand: Currently, the rand is the strongest it has been in two years. This is attributed to improvements in overall confidence

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because of increased political stability. However, what is concerning is the longevity of this stability and the resulting impact on the business environment. 5) We need to make sure that we bring our customers and Dealer partners on the journey with us: Education of customers and Dealer partners is key. If a consumer doesn't understand what an electric vehicle is, they won't buy it, even if they have the means. However, if they are educated about the positive impact such vehicles have on the environment, issues of versatility, power output and the technology behind it, then they are more likely to purchase the vehicle. We appreciate that any investment in alternative mobility solutions must be geared towards the end users of these solutions. What is important to understand is that consumers buy electric vehicles for different reasons. For some, itâ&#x20AC;&#x2122;s a lifestyle choice, wanting to drive green, clean mobility, while other consumers buy electric vehicles to make a statement. Given the environmental benefits, the latter group sees the technology representing cutting-edge innovation, and they want to be at forefront of this. Customers also need the assurance and the necessary education to dispel any belief that electric vehicles lose

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the credibility and lack the quality of existing internal combustion engines. Also, a key credibility factor for a more future-forward mobility offering is the pace of infrastructure investment that our Dealer partners would need to embark on in order to undeniably accelerate the adoption of alternative mobility. As a direct importer, we need to invest time and effort to ensure that our Dealer partners are willing and able to move their businesses in this direction. So the road map is clear. Electric mobility means merging the demands of sustainability, everyday usability, and performance. This implies integrating current technologies to advance what are often still seen as concept vehicles to cater for consumers in the premium market. It does also mean that parallel investments in infrastructure are needed, especially if we are to cater for the anticipated leapfrog in product line-ups. Globally, Audi has made significant investments in driving progress towards alternative mobility solutions. This has seen investments in both technology and human capital to make advances in areas such as e-fuel, battery life, range, speed, general performance and aesthetic design.

With this in mind, from 2025 all Audi models will have an electrified drive. We will be launching more than 20 electric cars and plug-in hybrids, spread across all segments and concepts. Over the long term, Audi plans to set the trend for the premium market, aiming to leverage and combine all of its technologies to reduce the emissions figures and develop sustainable, intelligent electro-mobility concepts. Driving progress around innovation is a key aspect of our own DNA. Audi has an impressive track record for integrating benchmark technology into our vehicles. However, before complete electrified vehicle fleets are built, we need to ensure that we get a buy-in from government to invest in electric vehicles by showing the economic, environmental, and social upliftment that these vehicles will bring to South Africa. Development is as dynamic as the automotive sector. Once we show the need to introduce electric vehicles into the premium market for those who can afford it, we can focus on developing other areas - recycling batteries; developing battery options with superior charging performance; investigating renewable energy sources such as wind and solar, just to name a few. The future is exciting, and itâ&#x20AC;&#x2122;s more than evident that electric vehicles will benefit South Africans at large.

MAY 2018 -

RMI UPDATE

Why train in times of Slow Economic Growth

uring a strategic planning session, in March 2017, the RMI Board identified that skills development is a core priority to support several goals that include transformation in the industry, business growth, as well as competitiveness among others. The priority further focuses on the importance of establishing partnerships internationally and locally to support skills development, as well as looking at how skills development can be implemented innovatively given the diversity of Members. Following international visits in 2016 to early 2018 and meeting with international guests in South Africa, a number of reasons became apparent as to why it is important to invest in training in a time of slow economic growth. The SA economy grew by 1.3% in 2017 compared with 0.3% in 2016; 1,3% in 2015; 5% in 2014 and 2,2% in 2013 according to Sytner Group (UK) Managing Director John Quigley and Templar consultant, Divya Ahluwalia, share similar views as to why investing in learning and development has a direct impact on your business in a downturn economy. Investing in your employees will help you achieve the following:

36 - MAY 2018

• Boost morale. This speaks to telling your employees that you value them and the work that they do, and that they have a future in your company. • Improve retention. The nett result is increased productivity and lowers employee turnover. • Attract and retain young talent. By way of example, Generation Y employees attach value to their development seriously. • Reduce the capability gap. Capable and adequately trained employees impact positively on your productivity and revenue.

RMI President, Jeánne Esterhuizen, supports the notion of training and upskilling regardless of a slow economic growth rate. During these periods it is the opportune time to revisit the performance of a business holistically. This would include drilling down into the overall efficiency of staff, systems, policies and procedures. When production slows down it makes business sense to focus on skills development and training, more especially in South Africa where we are plagued by high unemployment due to low levels of skill across economic sectors. The high demand and short supply of

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qualified tradesmen (and women) in the latest technology, results in exorbitantly high employment costs. A low demand and over supply of qualified and highly trained staff mitigate and normalize these costs and allow for employer preferences relating to type – and level sophistication of their businesses. All employers in South Africa are equally affected by the skills demand and supply permutations. The answer is to consciously invest in training and upskilling of the employed, the unemployed as well as the under-employed. She further recognises that ‘South Africa belongs to all its people, and the future of our country is in the hands of all its citizens’. Growing the economy remains a collective responsibility. All South Africans seek a better future for themselves and their children. The National Development Plan is a plan for the country to eliminate poverty and reduce inequality by 2030 through uniting South Africans, unleashing the energies of its citizens, growing an inclusive economy, building capabilities, enhancing the capability of the state and leaders working together to solve complex problems.

The plan addresses the need to enhance the capabilities of our people so that they can live the lives that they desire, and to develop the capabilities of the country so that we can grow faster, draw more people into work and raise living standards for all, but particularly for the poor. This is a plan for South Africa, requiring action, change, and sacrifice from all sectors of society. (Foreword – Honourable Minister Trevor Manuel – Chairperson National Planning Commission. Title of Publication: National Development Plan 2030 Our Future - make it work). The South African Government provides relief on the cost of training to employers by making provision in the SARS learnership (and apprentice ship) rebate, providing a business shows a profit as well as by means of the Employment Tax Incentive (ETI). (SARS). Taking on an apprentice has benefits as showcased in the article ‘Essential Measures to Improve Workshop Profitability’, co-authored by Dr Paul Spear of the Institute of the Motor Industry and Louis van Huyssteen, RMI National Director Training. Here the

fundamental workshop ratios is explained as well as how the ratios work. “The importance of accurately recording Attended, Sold and especially Worked hours cannot be overemphasised. In this short article we demonstrate, This data combine and interact in the calculation of the three fundamental workshop ratios: Efficiency, Utilisation and Productivity. Understanding how these ratios interact can influence significantly the profitability of a workshop. We have no doubt this will assist the understanding of young trainees and apprentices and provide a useful communication tool for workshop managers.” Engage your Sector Education Training Authority (SETA) staff to assist you if you do not understand how to claim grants. Staff development in time of slow economic growth yields benefits and mitigates the adverse effect of high employment costs because of short supply.

Sources: Learning And Development In A Downturn Economy: The Key To Success http:// templaradvisors.com/blog/learning-development-downturn-economy Stats SA - http://www.statssa.gov.za/ Cape Town start-up GetSmarter sold for R1,4bn https://techcentral.co.za/sa-start-up-getsmarter-sold-for-r14bn/73560/ Essential Measures To Improve Workshop Profitability http://www.rmi.org.za/ news/essential-measures-to-improves-workshop-profitability/ SARS (http://www.sars.gov.za/AllDocs/LegalDoclib/Notes/LAPD-IntR-IN-2012-20%20 -%20Additional%20Deduction%20Learnership%20Allowance.pdf How The Employment Tax Incentive Works For You http://www.sars.gov.za/AllDocs/OpsDocs/Brochure/EMP-BR002%20-%20 How%20the%20Employment%20Tax%20Incentive%20Works%20for%20You%20-%20External%20Brochure.pdf Meeting with Sytner Group (UK) Managing Director John Quigley – March 2016 National Development Plan 2030 Our Future-make it work http://www.dac.gov.za/sites/default/ files/NDP%202030%20-%20Our%20future%20-%20make%20it%20work_0.pdf

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MAY 2018 -

RMI UPDATE

Partinform visits Rustenburg

he third Partinform trade show was held on the evening of 11th April at the Heuwelzicht Function Venue in Rustenburg and was well attended by close to 120 visitors from various automotive businesses in the area. There was great activity at all the stands with many questions being asked about the various brands and products on display which certainly helped the participants later in the evening when the popular quiz show was held where contestants answered questions put to them regarding the brands in attendance. The winner of the quiz will be attending the end of the year go-kart racing event. Finalists of the quiz show received prizes and this time the sponsors were Gabriel, Holts, SKF and Quickbrake. As is usual at these events the decision as to the â&#x20AC;&#x2DC;Best overall standâ&#x20AC;? of the evening is taken and this time around the accolade went to the GUD stand. The Partinform Events held around the country are proving to be of great importance to the automotive aftermarket as these events promote good quality parts and brands and stress the importance of stocking and promoting quality automotive replacement parts. The RMI is proud to be associated with Partinform and its members and recognise the hard work and effort that is displayed in promoting the events to ensure that it is well supported. Looking ahead Partinform moves to Polokwane on the 9th May 2018 and will be held at the Polokwane Royal Conference Centre and should be well supported by the automotive community.

38 - MAY 2018

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Driven by CLIMATISATION

From left to right – Hennie Marnitz, (Sa Airbrake & Truck Bloemfontein), Connie Hartley (Connie B N B Bloemfontein), Miemsie de Jager (organiser, Sereni-T Business Development Bloemfontein) Jacques Viljoen, RMI IR Specialist / Office Manager Bloemfontein & Mark Erasmus, RMI Administrator Bloemfontein.

Excellence for professionals Bosch air conditioning service units for R-134a and R-1234yf www.bosch.co.za What drives you, drives us.

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MARCH 2018 -

TECHNOLOGY

Could the Facebook breach affect legislation regarding connected cars

acebook CEO Mark Zuckerberg recently faced two days of questioning by the US Congress on user security and privacy invasions and he has since been summoned to testify to EU lawmakers. With the acceleration of connected vehicles and the data they will collect, AutoTrader CEO George Mienie considers what motorists can learn from this unfolding story. Connectivity has revolutionised the world and the automotive industry has happily joined the party. A host of benefits are associated to this trend including better, tailor-made product offerings for drivers such as streaming digital radio and enhanced navigation systems with improved ways of avoiding congestion. Connected-car technologies will become standard by 2020 at the latest, reports consulting firm McKinsey. “Features such as autonomous driving will rely on this connectivity in order to exist,” explains Mienie. “The data that these cars will accumulate as a result, will be worth a substantial amount of money,” he advises. McKinsey reports that automotive data could be worth up to

40 - MAY 2018

$750 billion (R9 trillion) globally by 2030. “The data alone could become worth more than the car,” Mienie muses. Your car and your driving patterns say a lot about you. They reveal behaviour such as your driving habits as well as the places you commonly visit. Much like Facebook offers location-based advertising, cars too will have this capability. “In the future, you could be offered a promotional deal from the restaurant you pass each day in a self-driving taxi,” Mienie explains. Some motorists may be alarmed at this thought. “But benefits of this connectivity in many ways outweigh the negatives,” he advises. “Data sharing can assist when it comes to preventative maintenance, for example, which will help to avoid breakdowns. In a country like South Africa, with our road safety and security concerns, this is an important feature.” Motorists are advised to learn from the Facebook privacy breach and apply this know-how to better manage settings within their connected cars. “Consumers need to think of their cars as partners to their mobile phone, tablet or computer,”

he advises. “Take the time to read through the user guides, and the terms and conditions as they are updated.” Consumers might find they have to trade functionality for privacy. “This is a hurdle tech developers from all sectors must overcome, as they look to solve this growing tension,” Mienie points out. “I suggest consumers keep a close eye on how the Facebook story develops. Whatever legislation is created will be used to govern other global tech companies such as Google and Amazon and ultimately to regulate parts of the automotive sector,” he concludes.

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Caption: from L to R – Vishal Premlall (SAPRA Director), Richard Khuduga (SAPRA Retailer), Ms Rebotile Komane (DoE) & Wayne Harrison (B-BBEE Consultant)

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DECEMBER/JANUARY 2018 -

TECHNOLOGY

What Self-Driving Cars might mean for South Africa Self-driving cars are changing the way that people commute in countries across the globe, and now, this technology is making its way to South Africa. Sally Writes investigates what they might mean for South Africa

n October of this year, residents can expect to see the country’s first public autonomous vehicle trials. This is the first time that the Mobility Centre for Africa (MCA) has received government permission for such trials. There are currently two car models under consideration - The Z10 by EasyMile or the ARMA vehicle by Navya, both companies headquartered in France. Despite setbacks such as concerns over ethical issues and cost factors, South Africans may get to see self-driving cars hit the roads within the next couple of years thanks to the benefits that autonomous vehicles have to offer. SAFER ROADWAYS As self-driving cars are phased into the transit system, they’re expected to make the roadways safer. Around ninety percent of car accidents are caused by human error, whether it’s because a driver is tired, distracted, or impaired. Self-driving cars don’t suffer from any of these problems, and better yet, their sensors can react to stimuli much faster than a human. Autonomous vehicles could save thousands of lives every year

42 - MAY 2018

by reducing the risk of accidents, not to mention the money it would save South African families when it comes to insurance premiums.

services may even eliminate the need to own a personal vehicle altogether, helping to reduce carbon emissions and thus protect the environment.

LESS TRAFFIC Every day, workers across South Africa have to face a long and often cluttered commute to work. Traffic can drain valuable time away from the workday, making workers later, less productive, and more irritable. Self-driving cars can help to eliminate some of the traffic on the road through cab and ridesharing programs, meaning that many employees will save time on their commute each day and can even enjoy their journey taking in the great sights of South Africa along the way. Less traffic on the road also means a reduced risk of being involved in an accident.

THE RISKS OF AUTONOMOUS VEHICLES While self-driving cars offer plenty of benefits for South African drivers, autonomous vehicles don’t come without their risks. Perhaps the biggest threat to the safety of passengers in a self-driving car comes from malware and online hackers. Since these cars are hooked up to the Internet, there is a possibility of cybercriminals remotely accessing software. There is also a small risk of spontaneous technical failure, though companies are working hard to address the issue and make their cars as safe as possible.

A GREENER NATION Autonomous cars offer an alternate form of public transit that doesn’t require expensive new infrastructure to be put in place. Passengers can reduce their carbon footprint by getting involved in ridesharing and carpooling programs. Self-driving taxi

Self-driving cars have a lot to offer society, from safer and less cluttered roadways to a cleaner environment. Like all new technologies, though, self-driving cars aren’t perfect. As autonomous vehicles gain popularity in South Africa, drivers can expect to keep seeing improvements in both form and function.

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APRIL 2018 CH6405

LABOUR

Ensuring Sustainability and Efficiency within the Workplace An employer’s key focus and primary function is (or at least should be) ensuring the efficiency and sustainability of the workplace says Douw Breed, a director at Barnard Incorporated Attorneys, Centurion

egrettably, employers find it difficult to remain devoted to the main focal point of the workplace, due to inevitable occurrences (despite the company’s policies and procedures) such as: misconduct, incapacity and operational requirements (among others). Notwithstanding proper policies and procedures, employers are doomed to face employees’ misconduct at some point in time. Typically, misconduct in the workplace will sprout untimeously and without warning. Having to deal with misconduct is timeconsuming, tedious, and undesirable for employers. Employees’ misconduct can also give rise to costly litigation. The process and prerequisites of how

44 - MAY 2018

misconduct should be dealt with, is enshrined in the Labour Relations Act, Schedule 8: Code of Good Practice. The last-mentioned should be complied with so as to ensure both substantive and procedural fairness, particularly in the event that the misconduct results in the termination of the employment contract. In general, when an employee is guilty of misconduct, the natural flow of events will lead to a disciplinary hearing – provided that the misconduct is of a serious nature. Should the employee be found guilty of misconduct and subsequently be dismissed, it is, alas, not the end of the process. Following dismissal, the dismissed employee is entitled to refer the matter to either

the CCMA or the relevant Bargaining Council so as to determine the fairness of the dismissal at hand. If the matter remains unresolved, it will be set down for conciliation whereafter arbitration will most likely follow. The process is lengthy - seeing that Arbitration is a hearing de novo, the evidence will once again have to be lead, despite the proper manner in which the hearing was conducted. Fortunately, for those that do not wish to embark on a lengthy process, Section 188A of the Labour Relations Act introduces a process named “Predismissal Inquiry” (previously known as “Pre-dismissal Arbitration”).

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This section reads as follows: (1) An employer may, with the consent of the employee, request a council, an accredited agency or the Commission to conduct an arbitration into allegations about the conduct or capacity of that employee.” It is clear from the above that nothing prevents the employer from requesting an Arbitrator from either the CCMA or the relevant Bargaining Council to decide on the matter. There are certain requirements that should be met before the matter can be heard by either of the two forums. Generally, it is misconduct that will result in a dismissal should the employee be found guilty of such misconduct (as dealt within the ambit of the above section). The employer requires the consent of the employee (accused) to request a pre-dismissal inquiry. Such consent should be in writing and obtained only after the accused employee was informed of the charges against him/ her. The employee’s consent is only sufficient in respect of those charges he/she is informed of by the Employer. Consent is necessary if the employee earns below the threshold (in terms of section 6(3) of the Basic Conditions of Employment Act) that is decided by the Minister. Employees earning more than the set threshold may consent to such a procedure by virtue of their employment contract, and no additional prior written consent is required. The employer will also be required to complete the relevant prescribed form of the CCMA or the Council requesting Arbitration. It is noteworthy that the employer will be held liable for the costs of the PreDismissal Arbitration. (The appointment of the Arbitrator will only take place once the prescribed fee is paid). The CCMA or the Council will appoint an Arbitrator for the sub judice matter. The appointed Arbitrator will have the same powers and functions as he/she would have had in a standard arbitration.

Neither the CCMA nor the Council has any discretion over the prescribed payment or whether it is necessary to pay the prescribed fee. Furthermore, it is crucial that cognisance is taken of the fact that the fee for the Pre-Dismissal Arbitration is payable for each and every day that such an Arbitration is conducted (in terms of section 188A). At a disciplinary hearing, an employee has the right to representation. The employee will have the same right to his/her disposal at a Pre-Dismissal Arbitration. Subsection 5 of section 188A, determines the representation available to the parties and determines who may represent the parties in the proceedings: (5) In any arbitration in terms of this section a party to the dispute may appear in person or be represented only by – (a) a co-employee (b) a director or employee, if the party is a juristic person (c) any member, officer bearer or official of that party’s registered trade union or registered employers’ organisation; or (d) a legal practitioner, o agreement between the parties. Either of the parties may apply to the Arbitrator for legal representation, as the Arbitrator has the authority to allow it. It is of paramount importance that the employer comprehends and associates himself with the fact that when a Pre-Dismissal Arbitration is decided upon, the entire process is out of the employer’s hands and under the control of the applicable forum.

It is not a mere recommendation, therefore the parties will be bound by the outcome, whether they are satisfied or not. The Arbitrator should take into consideration any of the disciplinary codes of the employer before a finding can be made. The outcome will not be subject to an appeal process, however sections 143 - 146 of the Labour Relations Act is applicable, which means that the parties may elect to take the matter on review. Although the Pre-Dismissal process might seem to be a quicker and shorter process to embark on (compared to that of a standard disciplinary hearing), it comes with its own set of requirements and challenges. Failing to adhere to the statutory rules will render any form of a predismissal procedure invalid and will reduce the effect of such to that of a normal disciplinary hearing. Employers are urged and cautioned to be vigilant in their approach regarding misconduct committed by an employee and the election of the process available in termsof Section 188A of the Labour Relations Act. The shorter route might not always be the best option and might prove to be more frustrating and strenuous.

The finding of the Arbitrator (in terms of section 9) is final and binding on both the employer and employee: “An Arbitrator conducting an Arbitration in terms of this section must, in light of the evidence presented and by reference to the criteria of fairness in the Act, direct what action, if any, should be taken against the employee.”

Douw Breed is a director at Barnard Incorporated Attorneys, Centurion

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MAY 2018 -

LEGAL EAGLE

APPLICATION of the

Tax increase in your business On 21 February 2018, the Minister of Finance announced in his Budget Speech that the value-added tax (VAT) rate will be increasing, with effect from 1 April 2018, from 14% to 15%. This increase is applicable to all goods and/or services that are taxable and provided by a vendor, on or after 1 April 2018.

46 - MAY 2018

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ith the implementation of a new VAT-rate, questions such as ‘which supplies would be subject to the increased rate?’ as well as ‘when will the increased rate be applicable to a specific transaction?’ arose. In this particular instance, section 9 of the Value-Added Tax Act 89 of 1991 (hereinafter referred to as the ‘VAT Act’) lays down that a supply of goods or services shall be deemed to have taken place at the time that an invoice (or any document – not necessarily a ‘tax invoice’ - notifying an obligation to make payment, such as a quotation or pro forma invoice) was issued by the supplier or the recipient in respect of that supply or service, or at the time that any payment of consideration is received by the supplier in respect of that supply or service, whichever occurred first in time. Therefore, the general rule is of such nature that the supply of goods or services is reckoned to take place at the date upon which an ‘invoice’ is issued or when any payment is received by a vendor – depending on the chronological order of events. With regards to the question of when the increased rate of 15% would be applicable, one should consider section 67A of the VAT Act. In the event that an invoice is issued or payment is made in respect of the supply of goods or services prior to 1 April 2018, the relevant supply of goods or services will be estimated to have taken place before the increase and VAT at 14% shall apply. On the other hand, the VAT Act also makes provision for the event where goods should be delivered or services ought to be rendered, prior to the first day of April 2018, but such goods or services are deemed to have taken place (in

terms of section 9 as mentioned above) after the date that the VAT increase took place. Section 67A states that in these circumstances, the original rate of 14% will proceed to apply to the goods provided or the services rendered before the first day of April 2018, notwithstanding the fact that the supply of the goods or the services rendered are deemed to have taken place after the first day of April 2018 in terms of section 9.

the contract/agreement entered into between the parties specifically prohibit such amounts from being recovered.

In the event that goods are provided or services are rendered during a period that commenced prior to and ended on or after 1 April 2018, section 67A of the Act requires a ‘fair and reasonable apportionment’ to be made on a fair and reasonable basis for the value of the goods delivered or services rendered before and after 1 April 2018. The value of that portion which falls before 1 April 2018 will be taxed at 14% and the fragment that falls on or after 1 April 2018 will be taxed at 15%.

Unless one of the prescribed ‘time of supply’ rules is applicable as per section 9, VAT ought to be charged at 15%. The latter is relevant for the supply of any goods or services where an invoice is issued, any document is issued notifying payment on or after 1 April 2018, or any payment in relation to the supply of the goods or services is received on or after that date. Where an invoice or any document is issued notifying payment before 1 April 2018, the relevant supply of goods or services will be charged at 14% VAT. In the event that goods or services are provided before 1 April 2018, but such goods or services are deemed to have taken place after 1 April 2018, then Section 67A of the VAT Act will make provision for the long-standing rate of 14% VAT to be applicable to the supply of those goods or services.

In the event that an agreement is entered into between parties prior to the effective date of the VAT rate increase, which goods will be supplied on or after 1 April 2018, the vendor may recover the additional amount of VAT as ‘an addition to the amount payable by the recipient to the vendor’ – save for when

Should there be any uncertainty regarding the implementation of the increased VAT rate, suppliers of goods or services are advised to obtain advice from a specialised Tax Attorney to ensure that they comply with the relevant provisions of the VAT Act.

Kylie Potgieter is a Junior Associate at Barnard Incorporated Attorneys in Centurion. RMI4law members enjoy the benefit of legal advice from an attorney 24 hours a day. If you wish to join RMI4law, call 0861 668 677. Legalex (Pty) Ltd, registration number 2003/003715/07, is an authorized Financial Services Provider (FSP 5277) and underwritten by Guardrisk Insurance Company Limited (FSP 26/10/75) David Furlonger

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MAY 2018

BUSINESS MANAGEMENT

How ‘Saleable’ is your business?

The key reason to start a business should be to sell it one day, and the way to become truly wealthy is by buying, building and selling businesses says Pieter Scholtz

enerally speaking, you won’t achieve great wealth by owning just one company: you’ll need to buy, build and sell business a few times over. Ideally, the only time you’ll want to hold onto a business, is if you are planning to franchise or license it, but that that is a different case altogether, with different considerations, processes and requirements from what I am discussing here. A good strategy to adopt is to hang onto your first business for its passive income while you acquire and build up your next business. At this point, your first business should be at a place where it can successfully run without you. This generates a passive income and alleviates the pressure when selling, thereby allowing you to take your time finding the right buyer and negotiating the best deal possible. It is important to understand that you will need to be a good negotiator if you are going to sell the business yourself. You are aiming to get the best price possible and to achieve this, the business needs to be at a point where the buyer just has to move in and start trading – everything must have been set up already.

• Assets owned Here a potential acquirer will look at which assets are owned by the business, be they in the form of products, patents, registered brands, investments, shareholdings in other businesses that are also part of the sale as well as physical assets (movable and immovable). • People, Process and Systems Every business needs systems and good people to ensure that you have a “COMMERCIAL, PROFITABLE ENTERPRISE THAT RUNS WITHOUT THE BUSINESS OWNER. • “Scalability” of the business The purchaser, will always want to ensure that the business is scalable so as to ensure that they can extract further value from the business after the business has been bought. Failure to build scalability, may result in the purchaser having bought additional revenue and not future leverage from the acquisition.

• Culture of the Organization This is often an area that is overlooked. Research will tell you that around 80% of acquisitions fail because of the inability to fully integrate the respective teams into one cohesive operating unit. The key to ensuring that your business is saleable, is to start working on the above five areas from the start and to develop these areas over a period of time. Too many business owners wait until they want to sell the business before analysing how ‘saleable’ their business is. The reality is that most acquisitions take place when you least expect them to take place, and therefore you need to prepare your business for sale from the beginning. That way you are better prepared when an exciting offer does come your way, as well as being able to maximise the selling price.

There are a number of factors that influence the ability to sell your business and the price that buyers will be willing to pay for your business. These factors are as follows: • Strong Consistent Cash flow One of the most important factors that impact on the ‘salebility’ of the business is the ability of the business to generate strong consistent cash flow coupled with good margins and, ideally, a large percentage of repeat business

48 - MAY 2018

Pieter Scholtz is the Co-Master Franchisor in Southern Africa for ActionCOACH, the fastest growing and largest business coaching company globally. Pieter and his partner Harry WelbyCooke developed ActionCOACH across Southern Africa, which now boasts over 40 franchises. He is also a certified, leading business and executive coach. He has successfully assisted countless business owners to significantly grow their profits and develop their entrepreneurial skills. www.actioncoach.co.za / 012 665 1015

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CLUTCH & BRAKE SPECIALISTS

We cause the right kind of friction... CBS is a unique workshop franchise for clutch and brake specialists. There are more than 20 Franchises countrywide offering a network of professional technicians specialising in clutch and brake and related services, ensuring guaranteed workmanship nationwide. The long established, well respected Clutch & Brake workshops are served from the heavy-duty division of Aftermarket Solutions with the leading brands of Fras-le brake linings, LUK clutches, First Motion clutches and Motopart drums and many other globally sourced products.

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To locate your nearest branch, call 011 879 6000 or visit www.cbsclutch.co.za

A Division of Imperial MARCH 2018 - 49 Group Limited

CH6405

INDUSTRY NEWS

uel levies are annually adjusted taxes used to fund general government expenditure programmes. The General Fuel Levy is charged for every litre of fuel sold. In 2017, this levy went up by 30c. As of 4 April 2018, national fuel levies have gone up by 52c a litre, with the total general fuel levy and RAF levy standing at R5.30 per litre. These taxes form part of general taxes and will not necessarily be applied to improving roads, as many consumers assume. The RAF tax goes to the Road Accident Fund and is used for compensation of accident victims. This levy is set by the Treasury and the RAF will request an increase based on its calculation of costs for the coming year. South Africans are currently facing a higher fuel levy following the March budget speech, while Western Cape motorists may also be subject to an additional, provincial fuel levy in the near future. The levy stays the same all year, but the price of fuel is adjusted monthly, influenced by international fuel prices and the rand-US Dollar exchange rate. "The BFP, or Basic Fuel price, is based on costs associated with shipping fuel to South Africa, including transport, insurance, storage, wharfage etc.

50 - MAY 2018

That is why there is difference between coastal and inland petrol prices â&#x20AC;&#x201C; there is an additional cost to transport fuel inland. Added to those fees are retail margins and secondary storage costs." Fuel levies are unfortunately designed to target consumers with bigger pockets, but in most cases the poor are affected the most. Modern cars are more fuel efficient, so ironically, new car owners don't feel the pinch. Older model cars and individuals that make use of public transport usually bear the brunt of a levy increase. South Africa does not have the most expensive fuel in the world, but ranks in the top ten of most expensive places to fill up relative to monthly income. The average South African can spend up to a quarter of the average daily wage on fuel and transport, whereas this number can climb up as high 80% in countries like India.

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MARCH 2018 -

TECHNOLOGY

Shock absorbers are often overlooked because they cannot be easily seen and are therefore difficult to check for signs of damage or wear. (not using correct manufacturers’ torque specifications) or simply that the rubbers have worn out due to extreme terrain. In these cases, one should seriously consider fitting good quality polyurethane bushings. In some cases, this could also lead to the damage of the actual shock or vehicle suspension mountings.

hilip Lutz, Aftermarket Ride Control Product Manager, Monroe South Africa, says: “Because shocks wear out gradually, motorists often adjust unconsciously to the change in their vehicle’s handling, unaware that the efficiency of vital components could be compromised.”

and other suspension components for them.

Independent research shows that worn shocks could potentially compromise the driver’s ability to stop, steer and/or maintain vehicle stability. For example, according to the research data, it takes 2.6 metres longer to stop a vehicle with worn shocks from a speed of 80km/h on a straight road with only one driver in the car.

Steering wheel vibration? This may not necessarily be from worn or poorly fitted shock absorbers. Other causes could include poor wheel alignment, poor wheel balancing, worn mountings, worn suspension bushings, worn steering dampers, unevenly worn brakes, and even damaged or worn tyres.

However, although worn shocks could potentially compromise vehicle handling, not all problems related to a vehicle’s suspension are necessarily caused by these.

Shock rubber/bushing (Mounting Kits) not lasting? This could be caused by loose nuts, paint not cleaned off threads before tightening, incorrect sequence or position of rubbers during installation, incorrect position or omission of washers, over-tightening of mountings

It is therefore essential that fitment centres check their customers’ shocks

52 - MAY 2018

Lutz offers some technical tips for fitment centres. Tracking down faults. It’s not always the shocks.

Oil leakage? Although there is always the possibility that the shocks may have worn/faulty seals, leakage is often caused by piston rod damage during installation by not using the correct tools; damaged or missing dirt shields, particularly if the vehicle is driven in a dusty environment; accident or stone damage, rod corrosion, and faulty damaged or missing protection kits. Always replace the rubber boot and bump rubber protection if it shows any sign of wear such as splitting or moving on the piston rod. This will extend the life of the shock. Note: in order to retain the five-year unlimited kilometre warranty on Monroe’s new premium OESpectrum range, new Protection Kits & Mounting Kits MUST be fitted. A failing seal? Don’t forget to lower a vehicle back onto its suspension before finally tightening up. If a telescopic shock is tightened while the vehicle is in the air on a lift, it can cause the piston rod to operate at the incorrect parabolic angle by putting a side force on the seal that can cause it to fail.

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Irregular and increased tyre wear? This may not necessarily be from worn shocks, but can also be caused by incorrect tyre pressure, incorrect wheel alignment, faulty brakes or personal driving style. If the tyre wear is in the centre of the tyre, the pressure is too high. If is on both outer sides, the pressure is too low. If it is only on one side or feathered, the alignment or balance may be out. If the wear is uneven and patchy, then the shocks could be worn. Steering not centring? If the steering will not centre by itself, this could be caused by worn or damaged shock mountings, by overtightening, using an airgun, or not tightening to the manufacturers’ torque specification. This could also be accompanied by poor handling and faulty suspension tester readings which are often mistaken for worn shocks. Note: in order to retain the five-year unlimited kilometre warranty on Monroe’s new premium OESpectrum range, new Mounting Kits & Protection Kits MUST be fitted. Lutz says: “It is important to remember that Monroe has a special ‘bleed setting’ built into all shocks to make it easier for the fitter to prime the shock at low speed before fitting. If it is felt by hand, it could lead to the incorrect assumption that the shocks are soft, or softer than other makes of shock.”

Priming the shocks is essential to get the oil flowing and valves working correctly before the vehicle is driven, bearing in mind that standard hydraulic shocks cannot work effectively at angles greater than 45 degrees, and if the shock has been in a box on its side for months before being sold. Choosing a good brand of shock absorbers: When cheap can be nasty (and unsafe) Independent tests have proved that certain cheap, imported shocks can be dangerous because they are not built robustly; the quality of the oil is inferior; they fail the fatigue test; lack flexibility, and are often incorrectly assembled. “Quality is vital in this safety critical component on a vehicle,” says Lutz. “This is why Monroe harnesses the latest technology to help ensure that safety is not compromised.” Although Monroe has what is believed to be the lowest warranty claim rate in the country, the majority of claims accepted are actually not due to faulty shocks, or are due to fitment issues. Sometimes it can be difficult to determine if the shocks returned by customers are truly faulty. DIY customers may not have the experience or tools to do the job, and either fit shocks incorrectly,or damage them during installation. Examples of unacceptable warranty claims include:

First check your customers’ needs. If they are looking for a suspension that is better offroad, gives better control with less fade when working hard and doesn’t require additional height or clearance, recommend Monroe’s twin-tube Gas Magnum or mono-tube Monroe Adventure, or even the premium Rancho RS9000 range of tri-tube, 9-way adjustable ultra-heavy-duty shocks. It is not necessary to spend over R10 000 on new springs, shackles, bushes and shocks unless the customer requires seriously additional clearance for his vehicle.

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or damaged protection kits (PKs). It must be remembered that even if the PK is still in place but is moving on the rod – it is worn and can cause wear to the rod and in turn to the shock seals. If it is damaged or missing, the shock seals will invariably be damaged • Over tightening of mountings: This is normally due to fitters using airguns instead of a torque wrench, particularly if suspensions are still hanging in the air while being tightened. It is also a problem if mountings are under-tightened. • VW rod circlips being knocked off: This is normally also due to fitters using airguns instead of a torque wrench. It can also sometimes be caused by the washer that goes above the circlip being fitted upside-down. • Incorrect application of match-ups. • Wrong shock fitted to a particular model vehicle.

• Installation damage: Plier or vice-grip marks on the piston rod as customers try to prevent the rod from turning while tightening the top nut. • Rod damage: Due to missing Tenneco is a $9.3 billion global manufacturing company with headquarters in Lake Forest, Illinois and has approximately 32,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of clean air and ride performance products and systems for automotive and commercial vehicle original equipment markets and the aftermarket. Tenneco’s principal brand names are Monroe®, Rancho®, Walker®, XNOx® and Clevite® Elastomer

MAY 2018

INDUSTRY NEWS

Ford expands engine operations

ord Motor Company of Southern Africa (FMCSA) is expanding its operations at the Struandale Engine Plant in Port Elizabeth as part of a wideranging investment in its two South African plants, announced late last year. “We are delighted to confirm that, as part of the R3-billion investment announced

last November, we are expanding both the capability and capacity of the Struandale Engine Plant for our current and future engine programmes,” said Jacques Brent, President of Ford Middle East and Africa.

earmarked for assembly at the facility. The line has an installed capacity of 120 000 engines a year.

The new engine assembly hall is located in a revamped 3 868 square metre section of the Struandale Engine Plant. Production is scheduled to start in the fourth quarter, with eight variations of the new unit

Installed capacity for the programme is set to increase from 254 000 machined component sets – cylinder head, block and crankshaft – to 280 000, while assembly capacity will grow from 115 000 units to 130 000 a year.

Machining and assembly lines for the Duratorq TDCi diesel unit – which has been produced Brent said the investment included the locally since 2011 – are also being expanded. installation of a sophisticated new assembly “Upgrades for the Duratorq TDCi programme line for an all-new diesel engine programme will add incremental volumes, with 22 new that would power the new Ford Ranger four-cylinder engine derivatives to be exported Raptor when it was launched in 2019. to overseas markets, including those in Europe, Russia and Turkey,” Brent said. “At the same time, we are boosting capacity for the current Duratorq TDCi He said that ultimately, the plant would become engine that is used in the Ford Ranger and the machining base for all Duratorq TDCi engine Everest, with new derivatives and additional components for the Ranger, Everest and Transit, European markets being introduced for the placing South Africa in a central role within the local operations,” he said. global Ford network.

BMW opens new parts distribution centre

MW South Africa has unveiled a regional facility in Midrand with a view to streamlining the distribution of parts to its 56 dealers around the country. Tim Abbott, CEO of BMW SA, said the centre – jointly developed with property company Attacq – represented an investment of R260-million. The amount was in addition to the R6,1-billion which BMW had recently spent in upgrading its Rosslyn manufacturing plant. The state-of-the-art centre – one of 40 large parts facilities in BMW’s global network – covers 32 000 square metres and doubles the size of the previous facility. Operational since March, it accommodates about 600 000 parts.

54 - MAY 2018

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Weâ&#x20AC;&#x2122;re all about keeping it cool. Silverton Radiators has been in the engine cooling business providing quality replacement products for more than sixty years, and if there is anybody who understands engine cooling, then it is us. For fast, friendly and efficient service let the professionals help you. There are more than 120 Silverton Radiators dealers spread across Southern Africa, so wherever you are, there is a Silverton Radiators dealer near you. Services offered by Silverton Radiators: - Specialist engine cooling systems advice - Professional flushing of cooling systems - Radiator and inter-cooler re-coring or refurbishment - Custom-made parts as per customer requirements - Sales of quality replacement parts - Specialised systems and component testing - Expert cooling system troubleshooting, service and repair.

CH6405

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For more information, please visit www.silverton.co.za

NOVEMBER 2017

A Division of Imperial Group Limited

ROAD SAFETY

outh Africa ended the year on a high with a 10% drop in road fatality rates over the festive season. Unfortunately, however, this achievement was not shared over the Easter period which saw a 14% increase with 510 deaths between 29 March and 9 April 2018. According to the Transport Minister, Blade Nzimande, there were a number of arrests over the same period which suggests that South African drivers are still indulging in dangerous driving behaviour. More than 6 000 drivers were caught speeding, 3 208 were driving unlicensed vehicles, 2 344 were not wearing seatbelts, and more than 1 600 were driving vehicles with worn tyres. Nzimande notes that these behaviours are a cause for concern. The managing director of MasterDrive, Eugene Herbert, says that if we are to achieve another 10% reduction

56 MAY 2018

in fatality rates, attitudes need to change. “Unfortunately, South African drivers tend to attribute the blame to ‘other drivers’ without assessing their own driving behaviour. Few drivers believe that their own behaviours like speeding or disobeying other road rules are the problem. “The question is, how can we now change these beliefs and, consequently, dangerous driving behaviours? This is where corporates have the potential to bring about the greatest difference. Through awareness, training, and safety

initiatives, they have the opportunity to show their employees, and other members of communities, the firsthand consequences of dangerous driving behaviour,” says Herbert. Herbert urges corporates to play their role. “While significant change depends on citizens and law-enforcers, corporates have a role to play as well. These organisations have considerable access to drivers and the power to encourage a change in mindset. Use this power to play your role in bringing about genuine change.”

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Truck 2018

Conference & Expo

Co – Located Events:

Fleet Expo

MH Expo

2018

South Africa’s Premium Fleet & Light Commercial Expo

2018

South Africa’s International Materials Handling Exhibition & Workshop