DECEMBER/JANUARY 2019
Volkswagen showcases dealership of the future
KEEPING THE TYRE INDUSTRY ON THE ROAD MISA CROWNS WOMAN OF THE YEAR RMI UPDATE:
GEARING UP FOR 2019 SAMBRA AWARDS; RMI HOSTS NAASP WORKSHOP;
www.automobil.co.za TRUCK MAINTENANCE A MUST; INDUSTRY APPEALS FOR GREATER DISCUSSIONS ON FUEL PRICE RELIEF; NADA LAUNCHES DEALER PERFORMANCE PROGRAMME
DECEMBER/JANUARY 2019 -
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www.automobil.co.za
CONTENTS – DECEMBER/JANUARY 2019 DECEMBER/JANUARY 2019
5 7 9 66
Volkswagen showcases dealership of the future
COLUMNS Driver’s Seat: Jakkie Olivier, CEO of the RMI Editor’s Letter: Reuben van Niekerk Hot Stuff! New product showcase Tailpiece UPDATES
KEEPING THE TYRE INDUSTRY ON THE ROAD MISA CROWNS WOMAN OF THE YEAR RMI UPDATE: GEARING UP FOR 2019 SAMBRA AWARDS; RMI HOSTS NAASP WORKSHOP; www.automobil.co.za DECEMBER/JANUARY 2019 TRUCK MAINTENANCE A MUST; INDUSTRY APPEALS FOR GREATER DISCUSSIONS ON FUEL PRICE RELIEF; NADA LAUNCHES DEALER PERFORMANCE PROGRAMME
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12 News 18 RMI Review
Editor: Reuben van Niekerk reuben@thefuture.co.za
COVER STORY
Sub-editor: Peggy Lendrum peggy@thefuture.co.za Design and layout: Heinz Bawa heinz@thefuture.co.za Reporter: Wynter Murdoch wynter@thefuture.co.za
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FEATURES 26
AGM season a great success
The RMI and its Associations embarked on AGM’s around the country during the months of September and October Isaac Boshomane has been crowned LeadSA Hero of the Year 2018
Viv Corinaldi, SAPRA consultant, gives some insights into the requirements and necessary processes for a prospective entrant into the petroleum retailing industry
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 (South African Motor Body Repairer's Association); 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.
Developing a new, or purchasing an existing Service Station in South Africa Engine Fury
Jake Venter explains that unimaginable events are routine inside your engine
Is the Toyota brand worth US$53-billion or $30-billion? Is Volkswagen’s $12-billion or $6-billion? asks David Furlonger
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RMI salutes Isaac
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A digital version of this magazine is available at www.rmi.org.za
www.automobil.co.za
The TDAFA represents more than 700 members in the tyre fitment industry throughout the country and also represents the leading tyre retreaders in South Africa
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RMI Automobil’s Editorial Sub-Committee: Viv Corinaldi; Gary McCraw, Denice Grobler, Danelle Van Der Merwe, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman and Reuben van Niekerk
© Future Publishing (Pty) Ltd
Keeping the tyre industry on the road
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Production: Mabel Ramafoko mabel@thefuture.co.za
Future Publishing (Pty) Ltd 6 Rodwiela Road, Edenburg, Rivonia PO Box 3355, Rivonia, 2128 Tel: +27 (11) 803-2040
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Publisher: Richard Lendrum richard@thefuture.co.za
Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za
Gearing up for 2019 SAMBRA awards; RMI hosts NAASP workshop; Truck maintenance a must; Industry appeals for greater discussions on fuel price relief; NADA launches dealer performance programme
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What are the big brands really worth? Trio of Three Stars, but shocking Zero for the Nissan Hardbody
Global NCAP and the Automobile Association (AA) South Africa recently presented the second round of #SaferCarsForAfrica crash test results
The dealerships of the future
Volkswagen is making its sales organisation fit for the future. The brand is to fundamentally realign its sales model, together with its dealers, with the new sales model to be launched in Europe in April 2020
Toyota continues to dominate SA vehicle quality survey
Toyota has improved on its performance in the latest Ipsos Vehicle Quality Awards
Jaguar Land Rover gets green light to solve 150-year old problem Tenacious Zuki is MISA’s Woman of the Year
Zukiswa Sithole, apprentice technician at Tavcor Volkswagen in Port Elizabeth, has been named the MISA 2018 Woman of the Year
Partinform year end function a roaring success merSETA are in the final stage of a new electronic grants system Dealing with Absenteeism
During the festive season, employers are conscious of consequential unauthorised absenteeism
Termination for convenience and public policy
A very important principle in the law of contracts is the principle of contractual freedom
DECEMBER/JANUARY 2019 -
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BENEFITS OF BELONGING A short summary of the benefits of RMI membership
The RMI has represented the retail motor industry and its members for more than 100 years. With more than 7 500 member businesses, our unity is our strength. RMI representation at often volatile and disruptive centralised wage negotiations. Professional industrial relations advice by expert specialists, ensuring procedural and substantive fairness when disciplining staff. Industry labour relations seminars focused on the rules, agreements and industry-specific topics that affect retail motor industry businesses. Chairing of disciplinary hearings and AUTOMATIC entry and representation at the CCMA, DRC and Labour Court. Representation at various MIBCO and Industry-related Boards and committee structures.
Affiliation to reputable organisations recognised by Government, big business, consumers and relevant stakeholders like Business Unity SA (BUSA). Protection against one-sided legislative changes or new laws and regulations. Exceptional CPA support and member assistance during defence cases at the National Consumer Commission (NCC) and the Motor Industry Ombudsman of South Africa (MIOSA). Facilitation of a business-to-business complaint where both parties are RMI members, with a complaint resolution rate in excess of 95%. Quality and Standards function – representing the retail industry at various South African Bureau of Standards (SABS) committees and working groups. Representation at the National Regulator for Compulsory Specifications (NRCS), defending our industry when compulsory specifications and standards are compromised.
The informative Automobil magazine and weekly web letters that facilitate two-way communication and create consumer and industry awareness. The RMI is regularly invited to comment on industry topics by both print and broadcast media, and participates in and hosts numerous conventions and shows. Associational accreditation ensures ongoing development and implementation of commercial value propositions specific to the association. Training needs and representation via merSETA and W&RSETA. We actively drive industry-wide training and apprenticeship issues through our position on the merSETA Board and our involvement with the Technica manuals. Representation at the Moto Health Care Fund, Industry Provident Funds and the Sick, Accident and Maternity Pay Fund. The RMI offers industry-specific products like RMI4BEE / RMI4LAW / RMI4OHS /RMI4SURE.
Need to get hold of the RMI? Turn to Page 8 of this issue for all the contact details
DECEMBER/JANUARY 2019
Volkswagen showcases dealership of the future
KEEPING THE TYRE INDUSTRY ON THE ROAD MISA CROWNS WOMAN OF THE YEAR RMI UPDATE:
GEARING UP FOR 2019 SAMBRA AWARDS; RMI HOSTS NAASP WORKSHOP; www.automobil.co.za DECEMBER/JANUARY 2019 TRUCK MAINTENANCE A MUST; INDUSTRY APPEALS FOR GREATER DISCUSSIONS ON FUEL PRICE RELIEF; NADA LAUNCHES DEALER PERFORMANCE PROGRAMME
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www.automobil.co.za
DRIVER’S SEAT
A year of growth and change Year end always brings with it a sense of reflection and contemplation of the year ahead. After a bit of a well-deserved rest, of course, says Jakkie Olivier, CEO of the RMI Jakkie Olivier, CEO of the RMI
T
his year has, once again, been a year of challenges and achievements, not only in our industry, but for the country as a whole. While there were some small upturns in vehicle sales and consumer and business confidence during the year, growth was relatively small and economic forecasts continue to be bearish. For the RMI, membership growth, at close to seven per cent, was very pleasing given the challenging external economic factors and conditions. Our financial position improved on the previous year, and the drive to improve credit control, expediting membership subscription recovery and higher interest earned on investments contributed to a satisfactory increase in revenue of 6.3%. This was definitely a highlight for us.
international partnerships to support skills development interventions for members. Other ongoing initiatives are the investigation into the possibility of establishing a Motor Industry Academy, the development of an IR skills toolkit for members, member education on relevant industry legislation, policy and compliance, and establishing partnerships to set up an e-learning platform for members. An important support service that the RMI offers to its members is that of consumer mediation. The RMI’s highly skilled team of consumer affairs specialists managed to record a settlement rate of nearly 95% of all consumer disputes and complaints referred to the Organisation.
Another highlight included our successful bid on two Department of Higher Education and Training (DHET) initiatives for Automotive Motor Mechanic and Diesel Mechanic Trades. This will generate ongoing income until completion in 2022.
The year also saw various transformation initiatives, most notably the development of a qualification for National African Association for Automobile Services Providers (NAAASP) Members. These members have also been offered developmental RMI memberships with a view to becoming full members once qualified.
Transformation, Training and Skills Development remained top priorities for the year, and I am happy to report that good progress was made on all fronts, including the establishment of
The foundations were also laid for the RMI to be established and registered as a Professional Body for Automotive designations, a project that once implemented will professionalise jobs in
the automotive industry. We are delighted to confirm that this project will be with the support and backing of the very experienced and internationally recognised UK-based Institute for the Motor Industry (IMI). This year marked some important milestones in the history of the RMI. Not only did we start to see the tangible business benefits of the RMI’s New Thinking Model (NTM) and see substantial progress being made in our identified key focus areas, but we also managed to prove that the Organisation was more relevant and more transformational than ever before. And for a 110-year-old, I think we achieved remarkable success! I wish all our members, the RMI Board and other committee structures, management and staff of the RMI, as well as our readers, a happy festive season. Please travel safely and enjoy some downtime. Lastly, I would like to thank you all for your support, loyalty and contribution to making the RMI a success. As we look toward a New Year, let’s remember that belonging is better business. And to all vehicle owners, be assured that the RMI remains the leading body in the South African automotive aftermarket – our voice is your peace of mind.
For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300
www.automobil.co.za
DECEMBER/JANUARY 2019 -
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CONSTITUENT ASSOCIATIONS Who do they represent and what are their objectives?
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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.
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TA
Vehicle Testing Association
VTA (Vehicle Testing Association) The VTA represents private vehicle testing stations that are committed to operating within the law in accordance with the Road Traffic Act and the relevant SANS standards. In this highly regulated environment, the association represents the interests of its members at government working groups and is committed to enhancing the reputation of the industry in all the spheres. SADFIA (South African Diesel Fuel Injection Association) SADFIA members operate fully equipped pump rooms aimed at providing cost-effective service solutions for owners of diesel powered vehicles seeking fuel injection system testing, repair or replacement. SAMBRA (South African Motor Body Repairers’ Association) SAMBRA is an active leader in the motor body repair industry and consolidates, communicates and regulates repair standards in the motor body repair industry. SAMBRA ensures the provision of technical and business skills training that meets the demands of the industry and instils confidence in consumers and industry stakeholders. SAPRA (South African Petroleum Retailers’ Association) SAPRA represents and promotes the interests of petroleum retailers in South Africa and fosters strong relationships with the Department of Energy, oil companies, banks, financial institutions and other stakeholders that have an impact on the sustainability of the service station industry. 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
Technology can keep you safe this festive season
G
lobal NCAP recently tested another five cars that are sold in the South African market, in conjunction with the AA, with some very surprising results.
Vehicle safety technology has moved on but, unfortunately, this has not yet been incorporated in all models being sold in South Africa.
One of the vehicles tested was the locally manufactured Nissan NP300 or Hardbody, a stalwart of the light commercial vehicle market and a model that sold over 700 units during the month of October.
Whilst there are minimum performance standards within the regulated compulsory specifications for vehicles, these are limited to components such as brakes, tyres, windscreens, lights, child seats and tow bars. The result of which is that despite the rigorous compliance checks conducted during homologation, there remains no overall minimum crash safety requirement for the vehicle as a complete unit in South Africa.
In a 64km/h offset frontal collision the cabin suffered significant deformation, so much so that it was awarded zero stars. The addition of airbags to this vehicle in recent years also offered no benefit due to the large amount of structural deformation. The NP300 is essentially a 15-year-old design and is still popular in South Africa due to its cost effectiveness and low running costs. It seems as though Nissan is happy to keep selling this old, unsafe model, because there is nothing stopping them from doing so.
AA_TechnicalCollege_1_2.pdf
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This is unacceptable in a country that sees 14 000 people die on our roads annually. Government needs to step in here by either enforcing stricter minimum specifications, or making labelling of vehicle safety performance mandatory so that consumers know what they are
EDITOR’S LETTER
buying, much like the warnings found on cigarette packaging. Read the full report on page 42 I appeal to all readers to ensure that your car is in a roadworthy and serviceable condition before embarking on your holiday journey this year. These safety checks can be done by most workshops, or the VTA and its participating members who conduct free safety test campaigns around the holiday periods. There is also absolutely no need to drink and drive in this day and age. Convenient ride hailing services like Uber and Taxify are a cost-effective way of travelling to and from party spots, please make use of them or have a designated driver on hand if you will be indulging over the festive season.
The competitive advantage your business needs.
Reuben van Niekerk, Editor
AA.co.za Education Driven by the AA
Ensure that your technical staff are skilled to deliver optimum service and ongoing productivity. Calling all employers who are interested in hosting learners, at no cost for stipend or training. Ts & Cs apply. Trade training offered: • Automotive electrician
• Diesel fitter
• Automotive engine fitter
• Motor mechanic
• Diesel mechanic
• Diesel fuel injection technician
Call us NOW! 086 133 3668 weekdays 8am to 4pm. www.automobil.co.za
DECEMBER/JANUARY 2019 -
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NEWS
SPEAK TO US
SAMBRA Richard Green richard.green@rmi.org.za
hief Executive Officer: C Jakkie Olivier jakkie.olivier@rmi.org.za
SAPRA Vishal Premlall vishal.premlall@rmi.org.za
RMI EXECUTIVES
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 de 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 Mark Dommisse
RMI PARTNERS 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
VTA, SAVABA Julian Pillay julian.pillay@rmi.org.za TDAFA, MPEA, MIMA Hedley Judd hedley.judd@rmi.org.za TRAINING Louis van Huyssteen louis.vanhuyssteen@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
TA
Vehicle Testing Association
www.automobil.co.za
NEW PRODUCTS
HOT STUFF The Force will be with you by December
When South African holidaymakers go in search of wide-open spaces, Thule’s expansive range of luggage boxes can ensure that they have plenty of space up close, en route to their chosen destination. The Thule Force XT cargo box is a new addition to the range and is available from Thule Partner stores this December. Unveiled at the Automechanika Show in Frankfurt in September, the Thule Force XT is a versatile and robust roof-mounted cargo box for everyday use, and is capable of carrying bulky loads of all sizes. Shaped with practicality in mind and available in four derivatives, the Thule Force sits between the Thule Touring and Motion ranges. The four versions represent the size scale of small, medium, large and extra-large, with luggage volume starting from 300 litres. The XL truly lives up to its name, thanks to a 500-litre volume and an internal length approaching two metres. It is what you need when you want to take everything along, including the kitchen sink. Carrying capacity of all versions is 75 kilograms, and matte black is the default colour. Intelligent design features abound. The Thule Force XT is easy to fit to Thule crossbars, thanks to the PowerClick quick-mount system. The integrated torque indicator clicks loudly to confirm when it’s correctly tightened, ensuring fast and secure fitting. DualSide opening provides easy access to all areas of the box, from either the left or the right of the vehicle. A single, centrallypositioned lock is another user-friendly feature. Thule is the global market leader with an unrivalled tradition of design engineering, rigorous testing, and the highest safety standards. All Thule luggage boxes come with a five-year warranty. With an in-depth knowledge of the car industry and the latest trends, Thule remains a step ahead of the competition in designing and developing roof boxes for any type of car make or model.
German-made, high-quality Felo Series 200 screwdriver set
Felo’s seven-piece shock-proof screwdriver set has been specially manufactured with an ergonomically refined handle made from the shock-proof polypropylene. They are GS tested for safety with superior torque which exceeds DIN and ISO requirements by up to 100% and the EAN code is featured on every Felo product. The comfortable anti-roll handle design is unique to the Felo screwdriver range, and their blades are manufactured from chromemolybdenum-vanadium steel, with the black tip aiding in a precision fit. All the screwdrivers include a handy hanging hole for easy storage and inserting a lever if required. The FEL20097398, seven-piece set comes with four flat-end size units, one PZ unit, and two PH units, and retails for R650. Felo is a leading brand in the Vermont Sales operation and is available at leading stores countrywide. For more information talk to your retail outlet, or contact Vermont Sales on 011 314 7711 or visit www.vermontsales.co.za
Pricing of the Thule Force starts at R9 699.
www.automobil.co.za
DECEMBER/JANUARY 2019 -
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www.automobil.co.za
www.automobil.co.za
SEPTEMBER 2017 -
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NEWS
Mahindra crowns Tekfest Champions
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ekfest is Mahindra’s global competition for technical personnel and service advisors. It combines various rounds of online and in-person evaluations to select the best technical specialists.
Tekfest championship,” says Pratyush Bose, Head of After Sales for Mahindra South Africa.
For the South African round of the competition, Mahindra sifted through all its technical personnel with various online evaluation modules. The top performers in these online tests were invited to compete at a regional level, with the best of the best competing in theoretical and practical tests at the National Training and Development Centre at the end of October.
“It is very heartening to see technicians and service advisors from so many different dealerships compete Etienne Cockrel of Mahindra Welkom won at the national championship,” says the Tekfest Technicians Championship, Rajesh Gupta, CEO of Mahindra with Donovan Harmse from Mahindra South Africa. “It is testimony to the Lydenburg coming a close second. high standard of the technical staff throughout our network of more than In the category for Tekfest Service Advisors, 60 dealers.” Jeremy King from Mahindra Burgersdorp won the Championship, followed by Gupta explains that Mahindra is Graham Moore (Mahindra Kimberley) and investing heavily in its local technical Elize Janse van Rensburg from Mahindra capacity to support its local assembly Bloemfontein. facility in KwaZulu-Natal.
“The standard of competition at all levels was very high, so it is a singular achievement to make it to the national
Technicians from all over the country competed in 18 different categories in three different specialist fields technicians, diagnostic technicians and service advisors.
Of the Tekfest Diagnostic (cotek) Technicians, Etienne Jacobs of Mahindra Nelspruit took home the grand prize, followed by Auryn Nicholas of Mahindra Brits and Hein Nel of Mahindra Bloemfontein.
Goldwagen opens its 100th store The century was achieved on 22 October 2018, when Goldwagen number 100 opened in Newcastle, KZN. In the last decade, the number of Goldwagen branches has more than doubled, and the number of vehicle brands catered for having grown massively too.
G
oldwagen, the franchised automotive parts chain, has opened its 100th store.
Since 1992, it has grown from a single outlet in Pretoria West selling used Volkswagen parts, to a parts giant providing virtually any item for any brand available on the sub-continent.
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In 1992, that original store (a converted house) sold only VW parts and was initially branded Golfwagen. They started out stripping accident-damaged VWs and re-selling the parts. A second store opened in 1995, and from VW they progressed – logically – to Audi. That came about in 1997, with Goldwagen having been available as a franchise from the year before. Brands and store count grew steadily, as did their international network of suppliers.
Says CEO Joäo Da Costa, one of two founders: “South African motoring consumers are looking for the best aftermarket parts in terms of value to keep costs contained, but not at the risk of impacting negatively on their motoring in any way. Our stores therefore stock not only the best name brands from around the world, but at the same time provide our customers with tiers of parts so that they can find something that suits their budget.” 2018 has been a massive year for Goldwagen and has seen the addition of parts for Hyundai, Kia, Land Rover, Volvo and Jeep – they now carry stock for 17 individual brands and have mutuallybeneficial collaborations with almost 50 parts and component suppliers spanning the globe.
www.automobil.co.za
DRIVE SAFE THIS HOLIDAY SEASON! Check tyres, buckle up, and remember speed kills. The merSETA is one of 21 Sector Education and Training Authorities (SETAs) established to promote skills development in terms of the Skills Development Act of 1988 (as amended). The 21 SETAs broadly reflect different sectors of the South African economy. The merSETA emcompasses Manufacturing, Engineering and Related Services. The various industry sectors are covered by five chambers within the merSETA: Metal and Engineering, Auto Manufacturing, Motor Retail Components Manufacturing, New Tyre Manufacturing and Plastics Manufacturing.
www.automobil.co.za
DECEMBER/JANUARY 2019 -
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NEWS
A chance purchase wins a KZN resident a brand-new car call from Supa Quick informing him of his prize, which has since put a permanent smile on his face.
W
hen Jay Naidoo, from Pietermaritzburg in KZN popped into the Supa Quick store earlier this year to change his tyres to Firestone, little did he know that he would be driving away in a brand-new Toyota Hilux Double Cab before the end of the year. While his car’s tyres were being attended to, he thought to kill time, he would just fill in his details for the in-store competition to stand a chance to win either a BMW 3 Series or Toyota Hilux. He did not think much of it and had even forgotten about it until he received a
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“The prize could not have come at a better time,” said Jay who could not hide his excitement. “This will help me a great deal for work and to get around with family.” The owner of Supa Quick Pietermaritzburg. Mr. Dave Davie was delighted to hear that the winner was from his store. “Nothing brings me more pleasure that putting a smile on the face of my customers and making a difference in their lives; it is truly rewarding,” Davie proudly states. Naidoo was the lucky one among the 35 000 nationwide entrants of the Supa Quick Choose Your Brand, Choose Your Car competition. Participants had to simply buy any Bridgestone or Firestone
tyre, Monroe shock absorber, Willard battery or ATE brake product between 1 May and 31 July 2018 at Supa Quick and then enter their details in-store to win a brand-new BMW 3 Series or Toyota Hilux. It was up to the winner to choose which car he or she would like to drive away in, and for Naidoo, it was a Toyota Hilux. “The opportunity to choose a prize from the options given was a hit with customers, judging by the high number of entries received. And it is pleasing to note that most motorists purchase good quality products for their cars, which goes a long way to ensuring safety on our roads. We are delighted to deliver this car to Mr. Naidoo and he knows where to go when he needs his tyres, shock absorbers, brakes and batteries serviced,” said Desirée van Niekerk, Supa Quick Brand Manager.
www.automobil.co.za
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DECEMBER/JANUARY 2019 -
15
NEWS
Western Cape gets R150 million investment through upgrades to the Milnerton petroleum refinery
A
stron Energy, formally Chevron South Africa, officially opened its new Tank Truck Loading Rack (TTLR) at its Cape Town Refinery on Wednesday 14 November 2018. The facility, which took two years to complete, provided much-needed investment into the Western Cape economy, utilising local businesses and labour, and will ensure increased filling efficiency at the refinery. The new state-of-the-art fuel loading facility replaces the original facility, which had been in existence since the refinery was constructed by Chevron in 1965. Updating the obsolete loading facility with the latest in filling, metering and safety technology has created improved efficiencies by drastically reducing the loading time of an average 40,000 litre fuel tanker by 50% to only 30 minutes. This quicker turnaround generates a 30% improvement in truck utilisation for the fuel hauliers.
“This is a step change in the way we operate. The increased filling efficiency allows us to load more trucks per shift, thereby improving productivity and profitability for the haulers as they are able to deliver more product per day to our customers, retailers, Branded Marketers and distributors,” said Danie Gouws, General Manager: Regional Transport and Operations, Astron Energy. Designed by Kantey & Templer, the procurement for the R150 million project was predominantly spent in the Western Cape, using locally-based civil, mechanical and electrical engineering contractors to complete the construction. Construction of the facility spanned two years and nine months and created 50 additional jobs in the Western Cape. The TTLR now provides eight loading bays, each fully equipped to bottom load all of the petroleum products produced at the refinery. The bays are fitted with Accuload automation systems and Smith
meter technology, along with Sculley overfill protection to prevent spills. Vapour recovery systems are in place to manage and contain emissions, and the bays are each monitored by CCTV cameras, which assist with truck management from entry point to staging area. Advanced safety features such as a deluge fire protection and a spill containment system also form an integral part of the environmental protection safeguards.
Africa Automotive Aftermarket Solutions raises R400k for Charity
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frica Automotive Aftermarket Solutions (AAAS) is a company with heart, committed to making a difference to a number of educational institutions across the country. The companies vision is to assist in uplifting, developing and empowering schools which ultimately play a critical role in developing well-rounded students. As part of the company’s dedication to making a difference, AAAS hosts an annual golf day from which all proceeds are donated to various beneficiaries. AAAS’s recent golf day raised over R400 000 together with its
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partners and suppliers, which will go along way in making a difference to its beneficiaries including Madibatalou Middle School, Diaz Farm School, Edward Primary School, and Greyville Primary School to name just a few. “At AAAS, we believe in investing time and effort into making a difference. We work hard to make sure that we support beneficiaries within the communities of our employees and are so humbled to be able to partner with our suppliers to make a difference through this annual event,” says Warren Espinoza; Chief Executive Officer, AAAS.
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SEPTEMBER 2018
17
RMI UPDATE
Gearing up for 2019 SAMBRA Awards
P
lans are on track for the 2019 South African Motor Body Repairers’ Association (SAMBRA) Awards Breakfast which will take place on Wednesday 6 February at the Premier Hotel OR Tambo in Johannesburg. The annual SAMBRA Awards honour top vehicle insurers and OEMs, as well as paint and equipment suppliers for their contribution to the sustainability of motor body repairers in South Africa. SAMBRA, an affiliate association of the Retail Motor Industry Organisation (RMI), represents the majority of accredited motor body repairers in the country, and works in close collaboration with various industry influencers – including the insurance sector, OEMs, suppliers, the labour department and trade unions, as well as related SETAs – to maintain industry sustainability and development. The annual survey is independently managed and audited, and targets SAMBRA members nationwide to rate insurers, OEMs, as well as paint and equipment suppliers on a number of factors including relationship satisfaction, quality of vehicle damage assessment and repairers’ interaction with claims staff, payment speed, customer service, green
practices, training programmes, product support and more.
on the ground, insurers, OEMs and suppliers in order to manage industry critical issues.
The outcome of the SAMBRA survey has become an important measure of success and progress in the insurance, OEM and supplier sectors.
“We believe through the awards we are able to build best practice models by assisting all parties to re-evaluate and streamline their processes and procedures, and improve skill levels and regulatory compliance. The 2019 Awards will be all about building connections, embracing change and rewarding excellence,” concludes Green.
Richard Green, National Director of SAMBRA, says the SAMBRA national executive committee is striving hard to maintain and improve collaborative business partnerships between members
The RMI hosts NAASP workshop
D
elegates attended the very informative national road show, which is currently under way. The programme for the day, which was presented by the RMI Transformation Director, Joy Oldale, included the following:
• RMI Structure and Preparing for the RMI Associational Accreditation. • Step by Step – How to become a vendor and to work with Government – CSD (Central Supplier Database) • How to apply for funding for your business. • RMI Mentoring programme. Compliance issues surrounding SARS, MIBCO, The Consumer Protection Act, The POPI Act, RMI Membership, SABS, NRCS and Department of Transport were discussed. Members will be advised of the next workshop in due course.
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Maintenance is a must for trucks ahead of the festive season
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ith an increase in spending and a demand on supply over the festive season there’s no doubt that more trucks will be on the road. “Trucks provide a vital service for consumers. Unfortunately, poorly serviced trucks, or trucks not being serviced at all, are a major contributor to road deaths at this time of year,” says Dewald Ranft, Chairman of the Motor Industry Workshop Association (MIWA), a constituent association of the Retail Motor Industry Organisation (RMI). Ranft is appealing to all truck owners to ensure their vehicles are in top condition before the December rush begins. Derick Horrmann, owner of Don-Der Truck Repairs, says the regular servicing of trucks ensures better fuel consumption, prevents the oil filter from clogging up and collapsing, and is an opportunity to check if the oil is diluted with diesel which would point to a faulty injector solenoid. “All internal moving parts that are oil dependent for lubrication, as well as brakes and clutch, are subject to the most wear and tear.” He explains that trucks should be serviced as per the truck manufacturer’s schedules. “Most trucks are serviced at 30 000km intervals, others have extended intervals when using a synthetic oil. These intervals are usually 40 000km.” Ranft says it’s important to use an accredited repairer, and Horrmann agrees. “An accredited servicing workshop will ensure peace of mind as they will be using premium quality oil and good replacement parts.” Over and above regular servicing, he urges truck owners to also keep tyre pressure in accordance to specifications, and to check cooling systems and intake piping for leaks and cracks. Ranft is also appealing to all motorists to be patient and courteous to truck drivers on the roads. “Motorists need to realise that trucks are not cars. The handling of a truck, the speed, and how the truck is affected by external forces is vastly different from that of a car. While it can be frustrating to be stuck behind a truck, respect the road rules and only overtake when it is appropriate. Give a truck room to manoeuvre, and keep a safe following distance. We all need to do what we can to reduce accidents on our roads over this season with the increased volume of traffic on our roads,” he concludes.
Vishal Premlall, Director of SAPRA
Industry appeals for greater discussions on petrol price relief
T
he South African Petroleum Retailers Association (SAPRA), a constituent association of the Retail Motor Industry Organisation (RMI), says further discussions are needed before decisions can be made on the best way forward for fuel price relief for consumers. Vishal Premlall, Director of SAPRA says, as a key stakeholder, it has been approached by Government for comment on the proposed publication of maximum retail prices for 93 Octane Grades, and has appealed for an extension on the required date for comment. “We are concerned that the timeline allotted to give input will not enable fair and reasonable consultation with all affected stakeholders,” he says. He adds that of significant importance, a proposal of this magnitude, coupled with current market conditions including low demand, margin underrecovery and continuing rising costs, could result in job losses. “There needs to be clarity on items such as price competition between retailers, the next steps once the proposal goes ahead, and how new entrants to the market will be affected, among others. We believe the only way to gain clarity will be through intensive impact analysis conducted by an independent company and input from all stakeholders.” “We strongly support Government’s attempts to lower the ever-increasing fuel price that has impacted cash-strapped consumers, businesses at large and the overall economic stability of South Africa. The attempt to bring price relief for the consumer needs to be explored in further detail. Deferring this responsibility to the retailer is, however, not going to yield the significant results needed to bring about consumer relief. Rather, a full analysis of the basic fuel price needs to be explored,” he concludes.
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DECEMBER/JANUARY 2019 -
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RMI RMI UPDATE
NADA launches Dealer Performance Programme The National Automobile Dealers’ Association (NADA) is dedicated to uplifting and promoting the wellbeing of the retail motor industry, constantly investigating opportunities to improve dealers’ performance, sales, processes and profitability
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ith this in mind, the NADA Dealer Performance Programme (DPP) was borne and developed. “Now in its fourth year, the NADA DPP provides a platform for like-minded industry experts and retail dealerships to participate in dialogue through relevant and challenging topics that have a direct impact on their businesses,” says Mark Dommisse, national chairperson of the National Automobile Dealers’ Association. “The programme creates a platform for individuals within the automobile retail dealership environment to meet and engage on issues related to improving dealership performance. This is a vital value-add service we provide to our members.” Targeted at dealer principals, the NADA DPP combined a series of high-impact national roadshows which took place during October 2018 in Johannesburg, Tshwane, Durban and Cape Town. Its interactive workshops and monthly communications contain important information for dealers to implement in their daily processes. The NADA DPP culminates in a national conference and Business of The Year
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(BOTY) award ceremony that recognises the top-performing business in the retail dealership space. “The NADA DPP forum provides an opportunity to share insights on topical operational matters that impact on performance and profitability,” says John Templeton, Market Head Operations SSA Sewells Group / MSX International, sponsors of the BOTY award. Sponsors for the 2018/19 programme are: The National Automobile Dealers’ Association, Cars.co.za, Britehouse, Budget Insurance, Lightstone Consumer, Sewells-MSX International and WesBank. Jason Berriman, head, dealership sales, Cars.co.za says: “We are the newest sponsor to this exciting programme and know that we can add value and assist the industry in grasping the reality of a changing market. At Cars.co.za we believe in working together to achieve success. We are obsessed with adding value to our
customers’ businesses and look forward to being part of this programme.” Paul De Vantier, of Lightstone adds: “Our focus is on providing systems and information that support, maintain and grow a motor dealer business. We have had a very long history with NADA, and the NADA DPP provides us with a unique opportunity to add real value to our customers.” Through the Dealer Performance Programme, dealership management teams gain the necessary exposure to critical trends and industry innovations. Topics covered in the panel discussions and at the workshops focus on leadership and how to improve performance and profitability. “This year’s NADA DPP is supported by a group of leading automotive specialists, and we are very excited to interrogate the outcomes and put the insights into practice in our various dealerships,” concludes Dommisse.
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JUNE 2018 -
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ASSOCIATION OF THE MONTH
The TDAFA: Keeping the tyre industry on the road The TDAFA represents more than 700 members in the tyre fitment industry throughout the country and also represents the leading tyre retreaders in South Africa. The TDAFA’s accreditation criteria and applicable legislation ensures the production of good quality and safe retreaded tyres
T
he Associational AGMs were completed across all regions culminating in the National AGM in October. The TDAFA is pleased to confirm that Frans Maritz continues as National Chairperson for the next year and Morne Viviers continues as National Vice-Chairperson. The full committee is as follows: • Frans Maritz - Western Cape and National Chairperson • Morne Viviers - OFS/NC and National Vice-Chairperson • Les Richardson - Northern Region (Pretoria) • Angie Frederic - KZN • Sean Jevon - Border Region (East London) • Robert van der Merwe - Eastern Cape (Port Elizabeth) • Nazim Perrin - Highveld (Johannesburg)
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These are the regional Chairpersons who currently represent the best interest of members at all levels in the areas where the RMI/TDAFA are involved. Should members wish to contact any one of the Regional Chairpersons, please contact Hedey Judd for the specific contact details of the relevant Chairperson. Occupational Health and Safety The TDAFA has been instrumental in providing full service Occupational Health and Safety compliance through a negotiated service level agreement with Complete Specialised Retail Solutions (CSRS). The most important part of this service is that it is a one-stop solution to the legal requirement for compliance as per the OHS Act of 1993. Earlier in the year the Department of Labour published a notice in which it declared that a large number of new inspectors have been deployed into the general industry. The Department of Labour has elevated the emphasis on the need to comply with the law. The need for compliance is to ensure the safest working environment for all the employees of the company.
There are certain functions of compliance that can only be performed by a registered OHS practitioner, including conducting an accurate risk assessment of the premises and certifying the biannual compulsory evacuation drill, which is required by the Act. Vehicle lifts, jacks and hoists are required to be serviced every six months and then inspected every twelve months. These inspections and services are not conducted by an OHS practitioner, but rather by a qualified and certified Lifting Mechanic and then certified by a qualified and certified inspector. Fire extinguishers are also required to be serviced and inspected at specified time intervals. While this article is not by any means intended to provide a comprehensive list of the requirements, the emphasis is on a few items, and highlights that full compliance can only be achieved with the service of qualified and certified OHS practitioners on site. The importance of the correct torque specifications
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A1 posters featuring an informative Guide to Torquing of wheel nuts and bolts are available for display and education of both customers and staff. This is the first in a series of posters aimed at meeting a number of objectives.
There are a huge number of informal tyre operators in the industry, who have no exposure to business systems, operate with limited equipment, and more often than not have no access to the new-tyre supply chain. Herein lies the biggest opportunity.
The posters are available from the TDAFA office in Pretoria and Cape Town free of charge (for the first one only) to TDAFA members.
The formal dealer has the opportunity to engage with informal tyre dealers, with a view to bolstering their business into the formal sector by providing training in business skills, access to new tyres and products, and advising on equipment purchasing and maintenance.
The TDAFA corporate member franchisors have agreed to the display of the posters in their outlets, as part of the agreed advertising and display material. Requests for posters can be directed to Jodaree on (031) 266 7031 or directly with Hedley Judd. Transformation and Incubation The reality is that the South African business environment is compelled to transform. The TDAFA recognises that this creates a challenge on the existing businesses currently operating. However all problems offer opportunities, especially for the early adopters. The opportunity that has been identified by our BBBEE consulting partners revolves around the functional incubation of SMME businesses.
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The benefits of these types of relationships include the impact on BBBEE level scoring of the formal business, work place enterprise skills development, and increased unit volume sales of new tyres and products, either on a cash basis or a very short-term credit system. Assistance with the identification of these potential informal sector incubation partners can be facilitated through the RMI Transformation department. Job Grading accuracy and 2019 Wage Negotiations It is common knowledge that the next 12 months will see the RMI negotiators hard at work on behalf of
the employers to ensure an acceptable outcome from the next three-year wage and main agreement review. During the early stages of 2019 there will be a call on members of the RMI to provide guidance to the negotiators in the form of a mandate to proceed with. These mandate meetings are important opportunities for the RMI members to be involved in the potential outcomes. In preparation of this process, it remains important for all dealers to ensure that the staff employed in the business are correctly graded according to the function of the job being performed. The TDAFA can assist with any need of staff grading verification in order to be compliant with the Main Agreement. Fourth Industrial Revolution and the hype around it into the future With all the hype around the Fourth Industrial Revolution (4iR) it is perhaps of interest to explore the concept. 4iR which is currently being implemented worldwide, is about the heightening of automation in the production environment. The question on everyone’s lips remains: what will happen with the unskilled labour force? Good news is that the gurus on
DECEMBER/JANUARY 2019 -
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ASSOCIATION OF THE MONTH
the subject are claiming that there will be 30% more jobs created than lost. The concept of 4iR brings with it the opportunity to change the way unskilled people are required to interact with robotics. It does not completely rule out the role of the worker as there are still many examples of tasks that cannot possibly be done by machines. Additionally, 4iR will generate jobs around the production of robots and automation machines, an area of of business that is expected to accelerate exponentially in the near future. The ultimate goal of 4iR is for manufacturing to be able to produce the volumes of products needed to meet the excessive demands for products worldwide. The demand is also not only for quantity but also for increased quality and consistency through continuous improvement programmes. In summary, 4iR is intended to bring about faster production, better production, faster delivery, less inventory, lower costs, and better ROI for the shareholders. Waste Tyre liaison on behalf of the dealers It is no secret that the waste tyre system is not what it is supposed to be as far as service is concerned. The RMI and TDAFA has been working constantly to find a solution to the situation, even if only an interim solution, to carry dealers through the peak seasons of November and December. One of the contributing factors to the poor service is the fact that many tyre dealers have not registered with the Waste Bureau during the last 12
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months. This lack of registration means that the Bureau is not aware of the dealer site that requires servicing. When REDISA was liquidated in 2017, one of the things that was not secured was the dealer database, hence the call for registration with the Bureau directly. As of the end of October 2018 only 30% of all dealers had registered, despite this being a legal requirement. The TDAFA has been able to keep the opportunity to register open through constant liaison with the Department of Environmental Affairs. This relationship with the Bureau has seen the TDAFA act as an intermediary between the dealers and the bureau, to maintain a degree of control over the demands for collections with varying degrees of success. Currently there is no formal Waste Tyre Plan in place outside of the efforts of the Waste Bureau, despite plans being submitted in December 2017, with no official approval or rejection by the Minister to date. During a high-level meeting with the Minister in October the plight of the
Dealers was stressed in detail, with emphasis on the need for sufficient service delivery during the peak season. The Bureau was tasked by the Minister to ensure sufficient systems were in place for the peak season. The TDAFA awaits final details on these arrangements for the November and December period and will provide further details via the RMI weekly webletter as they become available. The TDAFA continues to provide a hotline service to elevate waste tyre collections across the country. Dealers who are experiencing Waste Tyre Collection issues can contact Hedley Judd who will forward this request to the Bureau and the Department for action. It is the sincere wish of the TDAFA that all members have a safe and blessed Christmas season, and a very prosperous 2019. To those who will be travelling during the period, travel carefully and return safely. Hedley Judd can be contacted directly at Hedley.judd@rmi.org.za or on 071 892 1475.
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Who will you have by your side when the storm clouds gather? Life is good, but it’s not always plain sailing. Whether it’s a career glitch, a new baby, illness, death in the family, or an unfair labour practice, with the Motor Industry Staff Association (MISA) by your side, you are covered. At only R24.50* per week, can you afford not to be covered?
Why it pays to be a MISA member Members get MISA on their side at Conciliation, Arbitration, Labour Court and Labour Appeal Court – at no additional cost. 100% of all monies obtained through settlement negotiations or awards is paid back to the member.
MISA Benefit and Funeral Fund All active MISA members qualify for the MISA Death Benefit Fund payout of R42 500* on the death of the member.
MISA Funeral Benefit Fund Members, spouses and children qualify for a funeral benefit of up to R10 000. MISA members who work at RMI establishments qualify for an additional death benefit.
Sick, Accident and Maternity Pay Benefit Fund MISA Members at RMI establishments qualify for exclusive sick leave benefits under this agreement.
financial support from the Contingency Reserve in the case of the liquidation of their employer’s business.
Free Contracts MISA will draw up a Last Will and Testament free of charge for members and will assist with service contracts and UIF registration for members’ domestic workers free of charge.
MISA Educated Member and MISA Healthy Member Programmes MISA offers various programmes to assist members to further their education and live healthier lives. The trade union also offers a bursary scheme for children of members. Please visit www.misa.org.za for full details on all the benefits of belonging to MISA and for the relevant terms and conditions.
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Financial Support when it counts MISA members qualify for a Maternity Benefit, Retrenchment Benefit and Ill-health/disability Benefit of R2 500 each, as well as an exclusive investment option from R250 000 with Nedbank Private Wealth. In addition, members qualify for
*From 1 January 2019.
Expert Labour Advice and Support | Exclusive Benefits | Financial Support Study Assistance | Collective Bargaining | Free Wills for Members Motor Industry Staff Association (MISA)
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NOVEMBER 2018 -
25
RMI UPDATE INDUSTRY NEWS
AGM season a great success The RMI and its Associations embarked on AGMs around the country during the months of September and October SAMBRA The 2018 SAMBRA AGMs were held in each region during October and, as it was an interim election year, all regional committee members were merely confirmed for the ensuing year.
NADA NADA held successful AGMs in all the Regions during August, September and October 2018 which culminated with the annual meeting of the NADA National Executive Committee meeting on 11 October 2018.
SAMBRA shared a sneak preview of the new logo with members who attended the AGM and briefly discussed the challenges all members were facing in an increasingly competitive industry with lower incident and claim rates.
At the various meetings the strategic objectives for 2019 were discussed and finalised. Mr Mark Dommisse was re-elected National Chairperson and Mr Greig Pringle, National Vice Chairperson.
The SAMBRA PR and Communications strategy for 2019 will focus on member business sustainability, and to that end will focus on ensuring maximum SAMBRA exposure to both insured and uninsured vehicle drivers in order to ensure that drivers are educated on the benefits of doing business with a SAMBRA member.
MIWA All the regional MIWA AGMs were wrapped up and were a great success. “What’s most exciting is that we are seeing more and more of the right people attending these AGMs – that being workshop owners. It is so important for workshop owners to stay in touch with what is going on in the industry as well as what MIWA is doing for them. We also are seeing more black workshop owners from previously disadvantaged backgrounds setting up shop and joining the MIWA AGMs. It is so important that all our voices are heard and experiences shared so we can improve business in our industry,” said Pieter Niemand, Director of MIWA.
included as part of the national roadshow, and the overwhelming attendance of members along with the support received from suppliers in that area was great to see. Bloemfontein was, as always, well attended and formed part of the RMI Free State and Northern Cape regional AGM. “Many thanks to all who attended. I hope you found the meetings valuable, not only in terms of information sharing, but a chance to network and relax with your fellow members,” concluded Niemand.
The combined Highveld and Northern Region AGMs were held at the Protea Hotel in Midrand and had a Magic theme which was very well received. The Western Cape decided on a Grand Prix theme at the Killarney Raceway followed by a spit braai. There were bumper numbers at the KZN regional meeting while the Eastern Cape also enjoyed great support in East London and Port Elizabeth. George was
26 - DECEMBER/JANUARY 2019
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REMAN Cluster The RMI REMAN Cluster including ERA, SADFIA and ACRA concluded their regional and national AGMs in Cape Town, the associations wish to extend their heartfelt gratitude to all the respective regional Members, the regional and national EXCOs and their respective Chairpersons and Vice-Chairpersons. Specials thanks to the ERA NEC Chairperson Frank Mac NICOL, the SADFIA NEC Chairperson, Chris Le Roux and the ACRA NEC Chairperson Representative, Riaan Botha, for heading regional affairs and guiding the
RMI Border AGM The Border AGM was held at the East London Golf Club on Wednesday 3 October 2018. It was well attended by 66 guests from 44 member businesses. Jeánne Esterhuizen, RMI President, captivated the audience with her passion for the Motor Industry with relation to Training and Industry 4.0. Lindsay Bouchier presenting the Border Regional Annual Report for 2017/2018.
associations through a very busy and productive year. The successes of the RMI REMAN Cluster can only be attributed to a unified approach of the aforementioned role players. With the implementation of the NTM model by the RMI and its various constituent Associations, and the formation of a cluster approach for the three associations, new frontiers were on the horizon. Inevitably the cluster was faced with new challenges and had to shape those challenges into positives.
VTA The VTA held their AGMs around the country. In Gauteng there were 11 members in attendance and the new director of VTA was introduced. In the Western Cape there were 9 members in attendance and the new director of
RMI KZN AGM The RMI KZN Annual General Meeting was held on Wednesday, 24 October 2018 at the Tsogo Sun’s Maharani Hotel in Durban.166 members, including their partners, Associate Members and RMI Staff were present. Julian Pillay, Regional Manager welcomed all the members and guests to the AGM and opened the meeting. Sandra Singh presented the Chairman’s report in the absence of Chris Le Roux. The existing Regional Committee members reconfirmed their positions till the end of June 2019.
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the VTA was introduced. Two delegates from the Western Province Department of Transport were also in attendance and gave presentations. In Kwa-Zulu Natal 6 members were in attendance and they too were introduced to the new VTA director.
Eugene Eakduth, Fund manager for MMI Health did a presentation on Moto Health Care. The President of the RMI, Jeánne Esterhuizen, addressed the membership and Jakkie Olivier updated the members on the current affairs of the organisation. The Key note address was presented by Dr Rajen Cooppan, a practising medical doctor in Durban. The evening culminated with the vote of thanks by Mark Roberts. Members and guests enjoyed a fivecourse dinner.
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RMI UPDATE Combined RMI Highveld and Northern Regions’ AGM The RMI Highveld and Northern Regions hosted a Combined Annual General Meeting on 18 October 2018 at Royal Elephant Hotel and Conference Centre in Centurion. The Grand Prix-themed event was a resounding success with more than 200 members in attendance. The Special Guest Speaker was Mthunzi Mdwaba, the Global Spokesperson for Employers at International Labour Organisation (ILO) and Vice-President and Board member of International Organisational of Employers. He delivered an influential and informative talk on the future of work and business.
RMI Western Cape AGM The Western Cape had a very successful and well-attended Denims and Diamondsthemed AGM at the Parow Golf Club with 168 guests from the motor industry in attendance. Guest speaker, Kieno Kammies, host of the breakfast show on Cape Talk Radio, addressed attendees on the 4th Industrial Revolution, technologies based on the future, and its uncertainties and fears. Solutions on how these fears can be mitigated by investing in education today were explored, as the skills needed in the future are not effectively taught by most school and universities, rendering many programmes useless. President of the RMI, Jeánne Esterhuizen kept the members entertained with a very interesting presentation about customer care and marketing your business and yourself, as well as business strategies, including training your staff to understand the business.
The keynote address was delivered by the RMI President, Jeánne Esterhuizen, whose after dinner presentation was extremely enlightening. The Highveld Regional Chairperson, Andrea Bogner and Northern Regional Chairman, Les McMaster were thanked for their leadership and ongoing support. Eastern Cape AGM The Eastern Cape AGM was held at the Port Elizabeth Golf Club on 4 October 2018 and was well attended by 70 guests from 50 member businesses. Jakkie Olivier, the RMI CEO, gave a broad overview of the Motor Industry and highlighted a number of interesting projects that are currently underway.
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Eastern Cape and Free State SAMBRA AGMS
Combined TDAFA, MIMA and MPEA AGMs The combined TDAFA, MIMA and MPEA AGMS were held across all regions and had a relatively low attendance. This is attributed to the current economic pressures facing business, where owners cannot or do not want to sacrifice time away from work. The National Chairpersons travelled to the Durban, Port Elizabeth, Cape Town, Johannesburg and Pretoria meetings to carry their personal message to those who attended. The thrust of the message was to share the Associational structure into the future where a singular combined force Association will provide efficiencies and cost savings through which the members will benefit. The Regional and National Chairpersons were all re-affirmed for the next period, with the National Chairs as follows: MPEA: Johann van der Merwe TDAFA: Frans Maritz MIMA: Yolandi Smal
Combined RMI Free State and Northern Cape AGM The RMI combined AGM for the Free State and Northern Cape Region was held at the Windmill Casino in Bloemfontein on Tuesday, 23 October 2018. The Master of Ceremonies, Danie Fourie, welcomed delegates from Bethlehem, Heilbron and Upington. Jeรกnne Esterhuizen delivered the annual report and keynote address. Attendees appreciated feedback and contributions from the RMI CEO, Jakkie Olivier, RMI Company Secretary, Gary McCraw, RMI General Manager Inland Region, Association Chairmans and Directors. Association presentations were delivered by Dereck Knight from Bosch, Wayne Harrison from BEESHOP and Marinus Engelbrecht from BASF.
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DECEMBER/JANUARY 2019 -
29
RMI UPDATE
RMI salutes Isaac Isaac Boshomane has been crowned LeadSA Hero of the Year
K
gabo Cars Training and Services is a successful small business run by Isaac Boshomane in Soshanguve area, and has been a proud RMI/ NAAASP member for the past six years. Kgabo Cars prides itself in not only operating as an automotive repairer and service provider, but in training learners to become skilled automotive artisans. He has successfully transferred skills to 60 students who are now fully qualified mechanics. Kgabo Cars has recently been crowned LeadSA Hero of the Year 2018. Boshomane is a visionary, and knew from an early age that his love for the automotive sector would be his chosen path. Little did he realise that his passion would someday change the lives of many in his community. He was nominated by a client as the LeadSA Hero of the month. The monthly heroes were filmed at their places of work, and three hours of video footage was prepared into a comprehensive threeminute corporate video. The 4th Annual Lead SA Changemakers conference took place on 20 October at GIBS in Illovo, Johannesburg. “When they played my video and I realised that I was the winner, I felt very emotional and thought about all the years and how it led up to this moment,” said Boshomane. Since 2001, Kgabo Cars has provided practical training for members of the community, especially those who do not meet requirements to further their education at tertiary institutions. Thirty new learners started their training at the end of November with 20 being based at Kgabo Cars and 10 at ATE Boksburg.
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Isaac Boshomane
The business also provides career guidance and development by visiting high schools in the area to explain to scholars from Grade 8 level and up, what they can expect should they decide to pursue a career in the automotive industry. Prior to starting his businees, Boshomane was a teacher at Soshanguve Technical High school, and they begged him not to leave. “I like helping people, although I did not like to teach at first, but now it is a great passion to be able to share knowledge”, said Boshomane. When asked about an influence or inspiration in his life, he mentioned that he did not have a real mentor in his life, but he had his love for cars, perseverance and self-discipline on his side. Boshomane’s main aim is to train artisans for the love of cars and the industry as a whole, but he believes the practical side is very important. “I start off by showing the learners the actual car parts, so that
they know what each part looks like and the functionality of it. The combination of practical skills and experience allows them to get their national qualifications,” said Boshomane. “I am very proud of my learners. They get absorbed into the industry so quickly, sometimes even before they have even completed the artisanship,” said Boshomane. “If you set your mind to something, and go all out, then anything is possible. God has given us all at least one talent, you must make it work,” he said. Boshomane has five children, including twins, and all of them chose to pursue a career in the motor industry. Boshomane believes that previously being the RMI’s NAAASP secretary has given him more credence. The next step would be to get the facility RMI and MIWA accredited in the near future. The RMI salutes Boshomane and wishes him all the best for the future.
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SEPTEMBER 2018 -
31
INDUSTRY NEWS
Developing a new, or purchasing an existing Service Station in South Africa In the second of a two-part series, Viv Corinaldi, SAPRA consultant, gives some insights into the requirements and necessary processes for a prospective entrant into the petroleum retailing industry when developing a new, or purchasing an existing service station in South Africa, and to then operate the business successfully.
O
existing service station you should be aware in which category the site is and the potential relationship with the Oil Company and the Landlord.
Service stations in South Africa can be divided into two categories, namely those controlled by the oil companies and those controlled by private individuals. When purchasing an
In the case of oil company-controlled sites, the Oil Company owns the land or has a long-term lease over the property, invests all the capital required and appoints the retailer/ franchisee/operator. These sites are commonly known as CORO sites – Company Owned Retailer Operated, and the Oil Company has full control over the business through its various agreements, which compel the retailer
wning and operating a service station is the dream of many people who see it as an opportunity to have their own business and earn a good living. This article seeks to provide a broad overview of the various options to enable the reader to make an informed decision when purchasing an existing service station.
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to operate the site to prescribed standards and specifications. In the case of sites controlled by private individuals, the individual owns the land, invests most if not all of the capital required, and operates the business or leases the station to another person who operates it. The operator enters into a Supply Agreement with the Oil Company that has no jurisdiction over the appointment of the retailer or operator. These stations are commonly known as RORO sites – Retailer Owned Retailer Operated, and the operator is required
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the property can be purchased if both are available for sale simultaneously. Purchasing an existing service station The purchase of an existing service station can be a very exciting but at the same time, a very risky project and every care must be taken to ensure that all the pros and cons have been thoroughly investigated and considered. It can also be a lengthy and time-consuming process. The following are the key matters for consideration.
to follow the specific Oil Company brand specifications and standards. The purchase of an existing service station thus falls into two broad categories namely: CORO sites In purchasing a CORO site, only the operating business entity can be bought as the Oil Company owns the property or has the main lease with a Landlord over the property. RORO sites Both the operating business entity and
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Availability and where to look There are hundreds of service station businesses for sale at any one time in South Africa. Many of them remain undisclosed to the general public, as the sellers do not want to be overwhelmed by non-qualified potential buyers. The availability of these sites is normally only known about through word of mouth. The Oil Companies’ websites and those of business brokers, however, contain the information about service stations available for sale. A simple Google search, “service stations for sale” will reveal all, and some investigating will normally provide enough information and the relevant Oil Company process that must be followed to conclude a successful transaction.
Due diligence It is crucial, as with any major financial transaction, to complete a comprehensive due diligence study before an offer is made. Keep in mind that you are not only purchasing the existing volumes and turnovers, but also any future growth or possible decline in the business. For this reason, the following matters must be considered and evaluated in detail: Historical and Current Business Performance A detailed evaluation of the forecourt volumes and convenience store turnovers should be done for at least the past five years of trading. If there are other income streams, these must be included. It is also imperative that the Income and Expenses Trading Statement and the Balance Sheet of the business be examined. This is not only required to determine the marketrelated purchase price, but also to project future cash flows, profitability and payback period for the capital invested. Oil company security of tenure If you are purchasing a CORO site, you need to be aware of the terms and conditions of the oil company’s right to occupy the property. If the Oil Company owns the land then there is no problem. If, however, the Oil
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TECH TALK NEWS INDUSTRY Company has a head lease with a third-party landlord, then you need to know what the remaining term of the lease is and if the Oil Company has a right to renew the lease. A period of at least ten years is the minimum time required in order to provide an acceptable return on investment for the person purchasing the business. In the case of a RORO site where you are not purchasing the land, you need to investigate and understand the terms of the lease that you will be entering into with the landlord. Oil Company Operational model and agreements It is vitally important that a prospective service station buyer fully understands the various Oil Company operating models and the agreements that enforce and manage the relationship between the parties. This is more so for the CORO model where the Oil Company strictly dictates the term of the agreement and the operating standards, as alluded to earlier. Similarly, should you be purchasing a RORO site, careful consideration must be given to the agreements and the deal that will be concluded. In this regard, it is vital that the current margin mechanism for petrol retailing, known as the Benchmark Service Station Regulatory Accounting System (BSS RAS), is fully understood and considered to ensure that the Oil Company is applying the correct petrol margin to the invoiced price. Other Franchises Operational models and agreements A retail service station is no longer just a fuel filling station. It has transformed into a small shopping centre that includes a number of other retailing profit centres. These include the Convenience Store, Bakery and Delicatessen, a Fast Food Restaurant and a car wash.
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The Oil Companies have collaborated with major convenience retailing and restaurant brands that operate from the service station premises. The prospective buyer must carefully investigate these operating models and their agreements, to understand the requirements and prescribed conditions for the successful operation of the various business models. Trading area scan A crucial element in purchasing an existing service station is a thorough trading area scan. As previously stated, you are not only purchasing the current volumes, turnovers and margins, but also any future changes, some of which may have a negative impact. • Potential Road Changes One of the most serious negative impacts on a services station is a road change that diverts the current passing traffic away from the site. This must be investigated and any risk identified and quantified. • New competitor sites There are numerous new service stations being developed around the country. A new site in the same
trading area can have a disastrous negative impact on volumes. Once again, this potential risk must be investigated and the impact fully understood. Potential changes to the Petroleum Industry The petroleum industry in South Africa is constantly evolving and going through a number of changes. Any new entrant into the industry should acquaint themselves with current and future potential changes, including, but not limited to: • Fuel pricing and margins • B-BBEE Transformation • Legislative amendments • Market demand and changes in engine technology Selling price and offer to purchase for the business entity The sale of a service station business is considered to be a ‘willing seller willing buyer’ transaction. This means that the site should be sold for a fair market value between a seller that has a price in mind and a buyer that has to match the price with a formal offer, or forfeit the opportunity. The current market value for a service station is
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Take over and operation Once the transaction has been concluded with all the Oil Company and Licensing processes completed and approved, the site can physically change hands. This is a demanding process, and the incoming retailer will have numerous matters to take care of and put in place in order for the site to continue trading seamlessly. These include taking over the staff with all the related compliance, regulatory and legal requirements.
approximately thirty-six times EBITA (Net Monthly Earnings (profit) before Interest, Tax, Amortization and Owners Drawings.) So for example, should the EBITA be R200 000pm, then the value of the site is approximately R7.2million. This, however, can be higher depending on the quality of the site and its projected potential future performance. Provision must also be made for taking over the stock, debtors and any assets and some operating capital, which includes a fuel purchase guarantee for the Oil Company. This value can be up to R5millon. Selling price and offer to purchase for the property In a RORO transaction where the property is also being purchased, it is advisable to get a professional valuator to determine the property value, thereby ensuring that a fair market price is offered. Oil Company processes Most Oil Companies will not automatically accept the buyer of a CORO site as the next operator/ retailer. They prefer to have a number of prospective buyers that they can put through their recruitment and selection
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process. This, if you are shortlisted and invited to, will include a panel interview for which you will have to prepare and present an extensive Business Plan. For a RORO site the acceptance and appointment of a new retailer is not as onerous, as the Oil Company normally has to accept the buyer provided they enter into their relevant Fuel Supply and other agreements. Licensing From March 2006, the Petroleum Products Act was amended to include the licensing of all service stations with each service station having to obtain a Site Licence (issued to the property owner) and a Retail Licence (issued to the Retailer/Operator). When the retailing business changes hands, the exiting retailer must surrender his retail licence and the incoming retailer must apply for a new retail licence. All approvals and other legislative conditions must be completed before the application is submitted. The DoE then applies their processes and procedures to consider and approve the application, including the right to reject an application.
Successful operation of a service station Owning and operating a service station is not a job but a way of life. Most service stations operate 24 hours, 365 days a year and require hands-on and detailed management by the owner to ensure complete success. In two separate articles in Automobil of March 2017 and June 2017, I covered the various elements that determine the volumes and success of a service station business. Suffice to say that there are a myriad of common business principles and industry-specific matters, requirements and issues that must be attended to and complied with, in order to succeed in the service station business. Conclusion As can be seen from this brief overview, the purchase of an existing service station with all related requirements can be a very arduous and risky project. It is strongly recommended that any prospective entrants into the market take all the necessary steps to protect their interests, including engaging experienced and acknowledged industry specialists for information and advice. Although the end result can be very rewarding, care must be taken to consider every detail to ensure a successful outcome.
DECEMBER/JANUARY 2019 -
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TECH TALK
Engine Fury Jake Venter explains that unimaginable events are routine inside your engine
I
once played with an old single-cylinder Lister engine and discovered that when it was at a normal operating temperature I could adjust it to idle so slowly that I could see the kick of the individual power strokes speeding up the flywheel. Later, I rode a single-cylinder motor bike on a slightly wet beach, and walked back along my track to look in amazement at the deeper indentations in the sand made by the power strokes. We can all picture a piston going slowly up and down, and the valves opening and closing at the correct time, but what we can’t do is imagine this happening very fast. All we can see in our mind’s eye is a blur. This first part of this article is based on information that first appeared in a BMW magazine more than ten years ago. It gives details of some of the loads and speeds, either measured or calculated, that some of the engine parts experience every day. This knowledge is part of the information needed to design parts that can cope with the high stress values that occur at high engine speeds. The engine chosen is the 2007 4,0-litre BMW M3 V8, but it could be any similar engine from another manufacturer. We’re going to look at what happens
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inside the engine at the maximum power rotational speed of 8 300rpm.
shell to rise to well over a thousand times the pressure delivered by the pump.
Fresh air sweeps through the intake ports at a speed of 360 km/h. This amounts to 1860 litres of fresh air per minute.
Maximum piston acceleration of 4921g occurs at top dead centre where the speed is zero for a unimaginable fraction of a second while the pistons come to a stop before changing direction. The pistons speed up as they travel down the bore and reach their maximum speed of 100 km/h after 0,001 seconds when the crankshaft angle is 74 degrees after top dead centre. (If the conrods were infinitely long, the pistons would have reached their maximum speed at 90 degrees after top dead centre) At this point the acceleration is zero and then becomes negative, i.e. the pistons decelerate for the rest of the stroke to come to another stop at bottom dead centre where another turnaround occurs. One downstroke takes 0,0036 seconds to complete.
32 cam lobes hammer away at their tappets 69 times a second with a force of over 2 000 newtons, thus accelerating the valves at 1 359 g. ( g = 9,82 m/ s2 is the acceleration due to gravity) Eight pistons weighing 491,7 grams slide up and down inside their cylinders 138 times a second. They reach speeds of up to 100km/h and temperatures of over 3 000 degrees C, driven by explosive forces measuring over six tons. The 3 kW water pump drives the coolant at over five litres per second through the engine’s water passages. Two 2,0 kW variable-flow oil pumps force the oil through the oil passages in the cylinder block, cylinder head and the crankshaft. The hydrodynamic action of the rotating crankshaft journal in its housing causes the oil pressure in the space between the journal and the bearing
The conrods and bearings have to absorb up to 17 300 newton as they brake the pistons 16 600 times a minute. The fragile-looking 623gram conrods were forged from powdered metal under heat and pressure to achieve uniformity of shape and mass. The cap-ends were then broken off in a special process
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so that when the conrod is assembled again the caps will line-up with greater precision than can be achieved using conventional tight-fitting bolts. In the combustion chamber the flame front reaches speeds of 200 km/h. The exhaust gases leave at the speed of sound; this explains the exhaust sound that would be uncomfortably loud without a silencer.
that handle more than 200 000 000 individual signals per second. More than 50 of these incoming signals are needed to calculate the optimum ignition timing, ideal cylinder charge, fuel volume per injection and injection timing for each cylinder individually.
publication, but from my own calculations. Let’s take a look at one combustion event in an engine that’s running at a constant 3 000 rpm. This is equivalent to 3 000/60 = 50 revs per second, so that one engine rev takes 1/50 = 0,02 seconds. The actual combustion of the fuel does not take more than about 0,004 seconds. Let’s assume we’re looking through a toughened window into the combustion space above the piston and that we’re equipped with instrumentation to measure any variables. We will see the following events:
The accelerator pedal position is scanned 200 times a second to make sure the throttle control unit is aware of the driver’s desires.
In this engine combustion knock is not controlled by a knock sensor, since these components tend to become less reliable at high engine speeds. Instead, the spark plug is used as an ionisation sensor. (Ionisation is the process of stripping electrons from atoms). The high temperatures and pressures that prevail during combustion tend to ionise some of the atoms in the mixture. This reduces the electrical resistance in the gas in proportion to the combustion quality. The signal strength can thus be used to warn the engine control unit when knock has occurred so that the ignition timing can be retarded. The engine control unit will advance the ignition timing again as soon as the spark plug sensor shows that it’s feasible, in order to optimise the combustion process.
The engine management system employs three 32-bit processors
A Closer look at combustion This part does not come from a BMW
After 0,000 003 seconds (3 millionths of a second) the voltage drops to about 50
The temperature is about 900 C.This temperature is just right for the treatment the gases receive in two catalytic converters with a total surface area of 60 000 square metres. (about nine football grounds). Airflow is controlled by BMW’s doublevanos valve timing control system combined with eight throttle butterflies and high-performance engine electronics.
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At 20 degrees before top dead centre (TDC), when the piston is 0,001 seconds away from the top, the ignition system delivers a voltage spike, lasting about 0,0013 seconds, to the spark plug. Initially the voltage is very high (about 15 000 V) and this creates a sea of electrons by stripping some of the electrons from the fuel and air molecules inside the spark gap. This ionisation creates favourable conditions for a flow of electrons across the gap.
DECEMBER/JANUARY 2019 -
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TECH TALK and electrons start to flow across the plug gap. This becomes visible as a spark. This starts the first phase of combustion – ignition and flame development. At about 14 degrees before TDC the young flame becomes visible as a string shape between the electrodes, and starts to spread. This phase consumes about 5% of the fuel/ air mixture, but there is not yet any rise in pressure in the space above the piston. The next phase – flame propagation – starts about 0,0003 seconds later, when the piston is 0,0004 seconds away from TDC, and the heat from the greatly enlarged flame starts to produce a very sharp rise in pressure. In a closed container of still air this flame would have travelled in a ball-shape at about 30 km/h to the end of the combustion chamber. However, the violent motion of the air above the piston, caused by the combustion chamber shape as well as the piston’s motion, has not only distorted the shape but also speeded up the flame speed to about 200 km/h. This is just as well, because the piston has by now passed TDC and is on its way down to start the power stroke. The maximum temperature of over 3 300 degrees C occurs at about 10 degrees after TDC. The combustion process now enters a critical phase. As it proceeds, the
temperature (and hence pressure) in the mixture ahead of the advancing flame rises. This so-called end-gas occupies a shrinking space, and the flame is getting closer. If the temperature rise stays below a critical value, the combustion will proceed in an orderly manner. This flame termination phase occupies another 10 degrees of crankshaft motion before the last flame dies against the walls of the combustion chamber. However, if the temperature rise exceeds a critical value, the end-gas ignites before the flame gets there. This effect is called auto-ignition, and results in such a rapid release of chemical energy that audible shock waves are formed. These
travel throughout the engine and can damage pistons and other components. The above description refers to a normal combustion process. This implies the mixture is ignited only by a timed spark and the flame front moves completely across the combustion chamber in a uniform manner at a normal velocity. If the conditions inside the combustion chamber are not close to ideal, then the combustion often becomes very ragged, usually because of auto-ignition. This is mostly caused by abnormally high combustion chamber temperatures or pressures brought on by incorrect fuel/ air ratios, or incorrect ignition timing. It can also be due to using a lowoctane fuel or an engine overheating due a cooling system failure. Auto-ignition often results in an audible and repeating pinging sound that can be heard by the driver. This can sometimes be reduced or eliminated by retarding the spark timing.
Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.
38 - DECEMBER/JANUARY 2019
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DECEMBER/JANUARY 2019 -
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INSIDE LINE
What are the big brands really worth? Is the Toyota brand worth US$53-billion or $30-billion? Is Volkswagen’s $12-billion or $6-billion? asks David Furlonger
T
wo international rankings paint very different pictures of the brand values of leading motor companies. Interbrand and Kantar Millward Brown (KMB) may start from the same premise but their conclusions are poles apart. According to research house KMB, a successful brand is one that values the past, understands the future and surprises its customers — in a positive way, naturally. Brand consultancy Interbrand also stresses relationships. “Brands that can delight their customers today will command the greatest brand value tomorrow.” So how come their figures are so far apart? They agree that Toyota is the world’s most valuable automotive brand but that’s about the only point of convergence. KMB values it at US$30-billion and Interbrand at $53.4-billion.
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Mercedes-Benz ranks second on both charts, but is valued at $25.7bn by KMB and $48.6bn by Interbrand. It’s the same across the automotive board: a chasm between valuations. And while they don’t figure anywhere in the Interbrand charts, Tesla and Suzuki both make KMB’s Top 10. There are reasons for the differences. Interbrand’s measurement is more direct: it’s based on corporate profit, shareholder returns, estimated future demand and how much the brand — rather than price or product features — influences purchase decisions. KMB’s process covers some of the same bases but also includes the opinions of more than 2-million consumers worldwide. In case you think all KMB’s valuations are lower, they’re not. Its newlyreleased ranking of SA brands is headed by Standard Bank at $4.8bn.
That would have got it into the Interbrand global Top 100, which includes no SA companies. There are no motor companies in the local KMB ranking for the simple reason that it is limited to companies born and bred in SA – not offshoots of global companies. But they feature heavily in global rankings. Fourteen motor companies – 15 if you include bike producer Harley-Davidson - feature in the Interbrand Top 100 ranking across all industry categories. Toyota is seventh overall in a table headed, not surprisingly, by technology giants Apple, Google, Amazon and Microsoft. Mercedes is eighth overall, five places ahead of eternal rival BMW. Also in the top 100, in order, are Honda, Ford, Hyundai, Nissan, VW, Audi, Porsche, Land Rover, Ferrari, Mini and Subaru.
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KMB’s top 10 motor companies, in order, are Toyota, Mercedes-Benz, BMW, Ford, Honda, Nissan, Audi, Tesla, Suzuki and VW. So what makes a strong automotive brand? According to KMB, heritage helps – being able to tell a ‘textured and interesting story’. But you also need a secure future. “Consumers want to know the car they purchase today will be worth something tomorrow. Being seen as innovative and future-focused helps reassure consumers that the brand will sustain its value.” Then there’s purpose. Consumers no longer divide brands into massproduced and class. Now they want to know what consumer-need the brand fills. Is it utilitarian (getting from A to B) or experiential (enjoying the journey)? The purchase and after-sales experience remain core to brand value, says KMB. Owners see them as a chore, not a pleasure. “Surprise them!” One company, for example, sends
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technicians to the customers’ home or office at service time to diagnose cars through their onboard computers. If work is needed, a loan vehicle is left behind while the car goes to the dealership.
decline in coming years as consumers move away from vehicle ownership and towards usage models like ridesharing and subscription services, and the end result is more players chasing a shrinking market.
And then there’s the shift towards electric vehicles. Stop boring consumers with how environmentally responsible the technology is. “The excitement of driving needs to remain part of the brand story.”
Karnes says: “The centuries-old, production-based model that churned out new cars in volume is going away. The future of automotive will be about creating brand value through the formation of brand ecosystems that deliver great customer experiences at every opportunity. We are moving from transactions from relationships. Those brands that understand this and can deliver delight to their customers today will thrive in the future and command the greatest brand value.”
The problem, says Interbrand’s Doug Karnes, is that nearly everyone is not only going electric but also developing autonomous, self-drive cars. This rush includes not only motor companies but also mobility companies, technology companies and even manufacturers of household appliances. It is estimated that there are about 110 companies around the world actively developing electric vehicles. Protecting your brand in such an overcrowded environment becomes increasingly difficult. Add to that, predictions that global vehicle sales will
David Furlonger is the industrial editor of Business Day and Financial Mail
DECEMBER/JANUARY 2019 -
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INDUSTRY NEWS
Trio of Three Stars, but shocking Zero for the Nissan Hardbody Global NCAP and the Automobile Association (AA) South Africa recently presented the second round of #SaferCarsForAfrica crash test results with the welcome support of the FIA Foundation and Bloomberg Philanthropies.
T
he four models tested show a wide range of safety performance, from zero to three stars for adult protection, with the Nissan NP300 ‘Hardbody’ scoring the lowest ratings which result in a high probability of life-threatening injury in a crash. The models tested are: Nissan NP300 Hardbody, Hyundai i20, Kia Picanto and Toyota Yaris. Global NCAP chose the entry-level version of each model, and as a result all were fitted with at least one airbag as standard. The results highlight significant differences in the structural integrity of the vehicles tested. “Of concern with these results is that the most expensive vehicle tested in this round – the Nissan NP300 Hardbody – produced the lowest score of all tests completed to date, achieving a 00.00 score and zero stars.
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There should be no zero-rated vehicles on our roads,” said Collins Khumalo, CEO of the AA of South Africa. “What these results show is that three vehicles priced lower than the Nissan produced three-star ratings for adult occupancy indicating that safety does not have to be tied to price. They also emphasize that cars may not be what they seem based purely on looks and descriptions, and that until many more vehicles are tested, this issue may be a much bigger problem throughout Africa than we originally believed,” he said. “A trio of three-star results is acceptable, but the zero-star Nissan NP300 is shockingly bad. It is astonishing that a global company like Nissan can produce a car today as poorly engineered as this. The NP300 ‘Hardbody’ is ridiculously misnamed as its body shell
has collapsed. Nissan also claim the car benefits from a so-called ‘safety shield’ but this is grossly misleading. Our test shows that the occupant compartment completely fails to absorb the energy of the crash, resulting in a high risk of fatality or serious injury,“ said David Ward, Secretary General of Global NCAP. "The #SaferCarsForAfrica campaign introduces essential transparency to the South African car market, and these results show that consumers are still getting a raw deal. The ironicallynamed Hardbody is the worst of the bunch, but all these car makers should be doing better, and offering the same high standard of safety in South Africa, and across the African continent, as they do in Europe and the US," said Saul Billingsley, Executive Director of the FIA Foundation.
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Nissan NP300 Hardbody The NP300 Hardbody achieved an alarming zero-star rating for its poor adult occupant protection, mainly in the driver head and chest areas in the frontal crash test at 64km/h. The vehicle structure collapsed during the crash test and it was rated as unstable. The steering wheel column did not collapse, penetrating the passengers’ compartment, creating an additional risk for the driver as it moved straight into the dummy chest. This performance showed a significant risk of injuries for the driver, despite the car being equipped with double frontal airbags.
Hyundai i20 The i20 achieved a three-star rating for adult occupant protection in the frontal crash test at 64km/h. The vehicle structure was rated as unstable as well as the footwell area. The protection levels ranged from marginal to good in adult occupant protection. The car offers seatbelt pretensioners for both front passengers and seatbelt reminder for the driver. Using the child seats recommended by Hyundai, the i20 achieved a two-star rating for child occupant protection, explained by the limited protection offered to the 3-year-old dummy, and lack of ISOFIX anchorages. The i20 structure is different from that of the European model. Safety equipment in South Africa does not offer Electronic Stability Control (ESC), side body airbags and side curtain airbags which are standard in Europe.
The high probability of life-threatening injuries to the driver’s head and chest resulted in the zero-star adult occupant protection rating. Even with an airbag the driver’s head and chest showed high biomechanical readings. The NP300 Hardbody achieved two stars for child occupant protection, the low result mainly being explained by the decision of the car manufacturer to install one of the Child seats without following Child seat manufacturer clear instructions.
Toyota Yaris The Yaris achieved a threestar rating for adult occupant protection in the frontal crash test at 64km/h. The vehicle structure was rated as unstable and offered marginal to good general adult occupant protection. The car provides seat belt reminders for both frontal positions. The car included seatbelts with pretensioners for both front passengers. Using the child seats recommended by Toyota, the Yaris achieved a three-star rating for child occupant protection.
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RMI UPDATE INDUSTRY NEWS
Kia Picanto The Picanto achieved a three-star rating for adult occupant protection in the frontal crash test at 64km/h. The vehicle structure was rated as stable, while the footwell area was rated as unstable. The car offers seatbelt pretensioners for both front passengers and seat belt reminder for the driver only. Using the child seats recommended by Kia, the Picanto achieved a two-star rating for child protection. The detachment of the ISOFIX anchorages for the 3-year-old CRS during the test explains the low score for child occupant protection. The manufacturer did not yet offer an explanation to this problem, but the child seat manufacturer which is also investigating, took immediate action and removed the Picanto from their recommended list of cars for this CRS model.
Conclusion Global NCAP awards a separate child safety rating to each car in order to highlight the different levels of protection vehicles provide to passengers on the rear seats. Because the only safe way for young children to travel is properly restrained in a child seat, the assessment checks how compatible the car is with the child seats recommended by the manufacturer, as well as the protection provided in the crash test. Airbags are not a substitute for seatbelts - passengers must always wear seatbelts. Only the Yaris and Picanto offered standard ISOFIX anchorages for child restraint systems (CRS). The NP300 Hardbody showed incompatibilities with the recommended CRS. Only the Yaris offered three-point seatbelt for all passengers, facilitating the required conditions to safely install a child seat in all seating positions, while all the others offered a lap belt in the middle position which makes it impossible to properly install a CRS.
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INDUSTRY NEWS
The DEALERSHIPS of the future Volkswagen is making its sales organisation fit for the future. The brand is to fundamentally realign its sales model, together with its dealers, with the new sales model to be launched in Europe in April 2020.
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olkswagen and the European Dealer Council recently presented their vision for the future world of Volkswagen’s 5 400 dealers and service partners as well as their 54 000 employees in Europe.
direct sales are to become possible. Five new sales and service formats such as city showrooms or pop-up stores are to be added. At the same time, the sales organisation is to become more flexible and efficient.
The objective is to provide seamless, individual round-the-clock support for customers going far beyond vehicle sales on the basis of a unique Volkswagen customer ID.
“This is the right step at the right time,” says Jürgen Stackmann, Board Member for Sales of the Volkswagen brand. “We have adopted this approach because our business environment is changing at a breathtaking pace in view of new technologies, changed customer expectations, and new market players.”
Each year, the Volkswagen brand intends to introduce about 5 million customers to the new world of mobility around the globe and to offer them individual services on the basis of their ID. The car buying experience itself will also change. On-line sales are to be massively expanded, and
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According to Stackmann, Volkswagen is outstandingly well-positioned, with qualified sales and service partners, an established logistics network, a
strong product portfolio and extremely loyal customers. He said that the new sales model was the combination of this infrastructure with the new elements which would define business in the future, such as digital products and services or new on-line sales possibilities for products and services. The new sales model is being driven by the progressive digitalisation and connectivity of the Volkswagen fleet, which will reach a new level with the introduction of the new, fully connected electric ID family in 2020. From then on, Volkswagen customers, with their personal ID number, are to be at the centre of a fully-networked world of mobility, including seamless individual support going beyond vehicle purchasing, with round-the-clock availability.
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“This way, we will learn more about our customers’ needs and will be able to develop optimum tailormade offerings for each individual customer through intelligent data management. This is already practised successfully in other sectors,” the Sales Board Member continued. In this world of mobility, customers will benefit from a wide variety of tailor-made offerings. For example, vehicles will be kept up-to-date by over-the-air software updates via the mobile phone network. Vehicles will notify the dealer that the next service is due via the predictive maintenance app. Customers will also be able to access a broad portfolio of services from the Volkswagen We digital ecosystem, such as We Park, We Deliver or We Connect. There will also be services going beyond customers’ own vehicles such as We Share – the planned carsharing offering from Volkswagen. On-line business will make a key contribution to the development
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of the new sales model and is currently being massively expanded. Within the framework of its new digital partnership with its dealers, Volkswagen will develop a joint Internet platform which will handle the entire purchasing process through to contract conclusion, including financing, payment, and even usedcar trade-ins. Customers will be able to choose from the entire brand model range and to complete their car purchase with their selected dealer online. For Volkswagen, the new platform will offer the possibility of direct sales for the first time; the brand intends to use this possibility mainly in the fields of software and on-line services. People who prefer to maintain personal contact with the brand and the dealer will have a choice of different points of contact in the future. There will be five new formats in addition to the traditional fullfeature dealership, with sales and
service under one roof. Each dealer will only need to have one full-feature facility in the future. Dealers will be able to shape their presentation by agreement with the relevant importer to make their business more effective and customer-oriented, with city showrooms, pop-up stores, service factories, used-car centres or scalable full-feature dealerships. “We believe in the new business model as it will strengthen dealers’ entrepreneurial responsibility,” said Dr Matti Pörhö, President of the European Dealer Council (EDC), which represents the interests of Volkswagen dealer councils in Europe. “In the areas of digitalisation and E-mobility, the major tasks for the future, dealers will play a key role. To shoulder these challenges, dealers need a firm foundation of profitability.” Pörhö praised the fair and open cooperation with Volkswagen: “We actively participated in shaping the business model right from the start.”
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INDUSTRY NEWS
Toyota continues to dominate SA vehicle quality survey Toyota has improved on its 2016 performance in the latest Ipsos Vehicle Quality Awards. The Ipsos Vehicle Quality Survey (VQS) was conducted throughout South Africa in 2017, involving survey feedback from 7 000 owners of vehicles from 16 brands.
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oyota achieved 13 gold awards – seven for passenger cars and 6 for LCVs – from 16 categories. This compares with nine gold awards won by Toyota in the survey, so a marked improvement year-on-year. Volkswagen was the runner-up with eight golds after collecting four in the previous survey. More than one gold award was awarded in some of the categories where two or more vehicles or manufacturers qualified by achieving the same scores. Toyota collected seven gold awards in the passenger car category, with Volkswagen and Audi each bagging five, while Honda achieved three, Opel two, and Ford and Nissan one each. Besides winning awards for individual models, both Toyota and Volkswagen earned gold for their passenger car manufacturing plants. Audi won the gold award for best overall passenger car brand due to Audi as a brand achieving the best combined score across all of their models. Toyota, Opel, Nissan, and Ford shared gold in the best volume passenger car brand category. Toyota was also the dominant player in the category for light commercial vehicles, collecting six gold awards to the three of Volkswagen and Isuzu, and the one each garnered by Nissan and Ford.
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The latest survey saw Toyota and Volkswagen each win gold awards for best light commercial vehicle brand overall, while Toyota won gold for best LCV manufacturing plant for its assembly facility in Prospecton which manufactures the Hilux among other models. The Ipsos VQS study calculates a quality score based on customer’s feedback at about three months after they’ve purchased the vehicle. Scores reflect proportions of problems and issues reported by these customers, and so the lower the score the better the quality.
The best-rated passenger premium hatch surveyed was the Opel Adam with an exceptional score of 23. It was followed by the Honda Civic sedan (31) and Audi A3 sedan (32). The highest-rated recreational vehicle was the Volkswagen Touareg with a score of 10. Next best was the Toyota RAV4 (33) and Volvo XC60 (36). The Toyota Hilux single cab petrol with a score of 30 fared best among the LCVs. Next best was the Isuzu KB extra-cab (56), followed by the Volkswagen Amarok diesel double cab (69).
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Driven by
MOBILITY
Bosch technologies are used worldwide in almost all vehicles, assuring their mobility, is what we are focused on. We continue to work on our unique combination of solutions for spare parts, diagnostic devices, workshop equipment and services. www.bosch.co.za
What drives you, drives us 50 - OCTOBER 2018
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TECHNOLOGY
Jaguar Land Rover gets green light to solve 150-year old problem
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he world’s first traffic lights were installed 150 years ago outside the Houses of Parliament in London. Since then drivers around the globe have spent billions of hours waiting for green. With Jaguar Land Rover’s latest tech, however, their days could be numbered. The Green Light Optimal Speed Advisory (GLOSA) system allows cars to “talk” to traffic lights and inform the driver the speed they should drive as they approach junctions or signals. Widespread adoption of the V2X technology will prevent drivers from racing to beat the lights and improve air quality by reducing harsh acceleration or braking near lights. The goal is for the V2X revolution to create free-flowing cities with fewer delays and less commuter stress. The connected technology is currently being trialed on a Jaguar F-Pace, as part of a £20 million (R371 million) collaborative research project. Like all Jaguar or Land Rover vehicles today, the F-Pace already boasts a wide range of sophisticated Advanced Driver Assistance (ADAS) features. The connected technology trials are enhancing existing ADAS features by increasing the line of sight of a vehicle when it is connected via the Internet to other vehicles and infrastructure.
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GLOSA is being tested alongside a host of other measures to slash the time commuters spend in traffic. For example, Intersection Collision Warning (ICW) alerts drivers when it is unsafe to proceed at a junction. ICW informs drivers if other cars are approaching from another road and can suggest the order in which cars should proceed at a junction. Jaguar Land Rover has also addressed time lost to searching for a parking space by providing real-time information of available spaces to drivers, and developed an Emergency Vehicle Warning to alert motorists when a fire engine, police car or ambulance is approaching. The advanced technology builds on the connected systems already available on the Jaguar F-Pace such as Adaptive Cruise Control. “This cutting-edge technology will radically reduce the time we waste at traffic lights. It has the potential to revolutionise driving by creating safe, free-flowing cities that take the stress out of commuting. Our research is motivated by the chance to
make future journeys as comfortable and stress-free as possible for all our customers,” said Oriol QuintanaMorales, Jaguar Land Rover Connected Technology Research Engineer. The trials are part of the £20 million government-funded project, UK Autodrive, which has helped accelerate the development of Jaguar Land Rover’s future self-driving and connected technology. As well as strengthening the Midlands’ position as a hub of mobility innovation, Britain’s biggest car maker, headquartered in Coventry, is working on connected technology as part of its pledge to deliver zero accidents, zero congestion and zero emissions. Connected technology will link the vehicle to everything around it, allowing seamless, free-flowing traffic that will pave the way for delivering self-driving vehicles.
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INDUSTRY NEWS
Zukiswa Sithole Zukiswa Sithole
Ursula Brookes
Christine Lutchmiah
Tenacious Zuki is MISA’s Woman of the Year Zukiswa Sithole, apprentice technician at Tavcor Volkswagen in Port Elizabeth, has been named the Motor Industry Staff Association (MISA) 2018 Woman of the Year.
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he Motor Industry Staff Association (MISA) each year pays homage to the remarkable women in the motor retail sector with their Woman of the Year Award, the most prestigious of its kind in the motor retail sector.
and career focus, while still living a balanced life,” said Martlé.
bus, but I had no idea what a pavement was, as we didn’t have any in Bizana,” she laughs.
“Zukiswa impressed our independent panel of judges with her sparkle, tenacity and potential to develop,” said Martlé.
Zuki eventually managed to find her way to the Port Elizabeth College, where she studied Automotive Engineering.
Zukiswa was the 2018 Regional Finalist for the Eastern Cape Region and takes the coveted title home to Port Elizabeth.
A long way to realise her dreams Zuki, as she is known, has come a long way from her difficult childhood years in Bizana in the Eastern Cape, where she grew up in extreme poverty. But Zuki was determined to become successful and not be bound or defined by her challenging circumstances.
Money was tight, but she worked hard to support herself as well as pay for her studies, including making “vetkoek” at night and selling them at college the next day, while working as a domestic worker over weekends. She met her husband, Paul, also a technician, at the college.
It’s about making a difference According to Martlé Keyter, MISA’s CEO: Operations, any female MISA member who works in the motor retail sector is eligible for a nomination. Candidates do not necessarily have to be the most senior women in the industry, but must make a difference in the lives of others in one way or another and serve as a role model for other women in the industry. “They must display the potential to grow and develop personally and professionally, have a strong community
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And while cars were an unfamiliar sight in the community, Zuki somehow knew that she wanted to work on them. Shortly after writing her matric exams, Zuki boarded a bus to the city of Port Elizabeth, never having left the confines of Bizana before. “People warned me to keep on the pavement when I got off the
Today, Zuki has become a role model for others and is a popular motivational speaker. She has never forgotten her roots and is eager to help others. She is passionate about her job and makes no secret of the fact that her ambition is to work herself up to management status. As part of her prize, Zuki won a trip to the 2019 NADA Conference in San Francisco.
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Michelle devotes much of her time to helping people with cancer. To this end, she was involved with the CANSA Bus Drive, CANSA tea, and an ongoing drive to collect blood for cancer patients. Her mantra in life is to stand up every time you fall. “I firmly believe that failure is just another step on the journey to success,” she said. Michelle Vorster
MISA Woman of the Year Regional Finalists also play an important role As part of the process to find the MISA Woman of the Year, a Regional Finalist is chosen in each MISA Region and they are then interviewed by an independent panel of judges. But this is not where the roads end for the Regional Finalists, as they play an important role in the MISA Women’s Forum. Free State and Northern Cape Region: Ursula Brookes Ursula is a bookkeeper at Auto Niche Bloemfontein, which is part of the Imperial Group. She always reaches out to others, whether it be family, friends, colleagues or just people who have fallen on hard times. Her family is very close to her and she just adores her granddaughter. “I try to live according to the values of love and caring and am always prepared to help,” she says. And help she does, as she supports two families and has to follow a strict budget to make ends meet.
Charlese Both
stereotyping by proving themselves in the workplace. She works long hours, but always sets quality time aside to spend with her young daughter. Children are close to her heart and she contributes her time and effort to Pinetown Children’s Welfare, where she’s driven a project to sponsor food items. Northern/Highveld Region: Michelle Vorster Michelle is a service contracts controller at Volvo Group Southern Africa in Johannesburg. She splits her day in three with eight hours each for work, sleep, and spending time with people. She is passionate about people and has a soft spot for children.
Western Province Region: Charlese Both Charlese is a costing clerk at Barloworld Ford N1 City in Cape Town. She is in her last year of studies in the field of theology counselling and says she would love to get more involved with women and health issues. One of the highlights of Charlese’s year is when she assists with a Christmas party for 1 000 children through a nonprofitable organisation in Ruyterwacht. She is also involved in various fundraising events and believes ‘you never know your limits until you push them’. Charlese’s dream is to establish a place of safety where women and children can be protected and find the help they need.
“I love to help others in need,” she says, and sharing what she has with others is second nature. KwaZulu-Natal Region: Christine Lutchmiah Christine is a master service advisor at Bidvest McCarthy Toyota in Pinetown. She believes women working in what has traditionally been a male-dominated environment have to overcome bias and
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The MISA Woman of the year is judged by an independent panel of judges. The 2018 MISA Woman of the Year Judges are, from left, Ester de Beer, Labour Law Specialist; Susan Riva, Aon South Africa; Nicole McKnight, Super Group and Lara Theron, The Hothouse Communications.
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INDUSTRY 4.0 READY.
A
SMART Industry requires a
SMART
Work force
WE CARE
It’s about caring for people we render services to
w www.merseta.org.za
WE BELONG
It’s about working together with colleagues
@mersetasocial
WE SERVE
It’s about going beyond the call of duty
merSETA Social
LEADERS IN CLOSING THE SKILLS GAP
54 NOVEMBER 2018
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RMI UPDATE
Partinform year-end function a roaring success
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artinform consists of aftermarket automotive parts manufacturers that actively promote their brands and products around the country, not only in metropolitan areas but also in the more rural areas. In each area, the local industry and trade representatives are invited to an exciting event that combines education, entertainment, brand exposure and networking opportunities. The Partinform members are on hand at each show to promote the advantages of fitting quality brands and to interact with the buyers and fitters in local businesses. These shows are an opportunity for members to educate and answer questions in a relaxed environment, and to keep abreast with the needs of their customers. After a busy year the Partinform year-end function took place at Zwartkops Raceway. Following a great breakfast the event moved to the Go Kart circuit where the winners from each round of the quiz show, held at the monthly meetings, battled it out on track. Participants were divided into ten teams with creative names such as the Drift Kings, 2 fast 2 furious, Swinging Tappets and Clutch Plates. The racing was facilitated by MCP Rental Karts, and after some thrills and spills the Speed Demons walked away with the overall honours Partinform and its members are looking forward to an exciting 2019 as the group once again visits towns and cities around the country. The 2019 events and dates are: - 6 February 2019 Krugersdorp - 2 & 3 March 2019 Cape Town Motor Show - 10 April 2019 Welkom - 26 May 2019 Cars in the Park (PMB) - 12 June 2019 Klerksdorp - 17 July 2019 Mosselbay Cars in the Park (Zwartkop) - 4 August 2019 - 11 September 2019 Vryburg - 9 October 2019 Secunda Should you want more information about Partinform contact: Charms Events & Management Charmaine Innes Tel: 011Â 021 0543 Cell: 082 381 9026 or E mail: charmsevents@mweb.co.za
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Driven by RELIABILITY
Innovative technology for best possible visibility: Commercial vehicle wipers www.bosch.co.za
56 - NOVEMBER 2018
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INDUSTRY NEWS
merSETA goes digital
merSETA are in the final stage of our new electronic grants system, says acting merSETA CEO Wayne Adams
O
ver the last two months, the merSETA completed its latest round of annual general meetings that detailed our successes and challenges while charting the way forward in the face of Industry 4.0. Stakeholder participation was excellent at the meetings in Johannesburg, Witbank, Bloemfontein, Durban, Port Elizabeth and Cape Town. Of particular note was the anticipation by our stakeholder of the final stage of the National Skills Development Management System (NSDMS), the electronic platform that will transform the way mandatory and discretionary grants are administered. The NSDMS will allow quicker payments of grants, as well as ensure compliance and accountability. The system will allow you, our stakeholders, to work wherever and whenever.
This proves that we are determined to maintain our status as service delivery champions.
Initial feedback shows that 76% of applicants are satisfied with this system. As we close for the festive season, the merSETA is gearing up for the The first phase of the NSDMS was final phase. This will include practical launched on 1 February this year. To demonstrations throughout the country date, 350 non-levy paying entities have in January/February 2019, ending registered, and more than 4275 employers with the live launch on 1 April 2019. are already on the platform. More than As leaders in closing the skills 51 000 tasks have been completed gap, our goal is to ensure a electronically as we strive to Go Green. “stakeholder-centric� experience that is bold and ground-breaking. About 4300 grant applications have been completed of which 2300 discretionary Have a happy Festive Season, drive grant applications have been submitted. safely and Arrive Alive!
HRST is an BBBEE Level 1 MERSETA Accredited innovative training and HR company that has recently launched two exciting portals to assist companies and individuals with recruitment and training needs. Our e-learning portal is accessible worldwide and offer a variety of Motor industry and leadership.
Top Talent Top Talent is an online portal that puts you in charge of recruitment within your business. This portal offers a variety of vetted candidates in various positions. With a click of a button you are able to select the talent that is needed in your company. Easy selection and interview process and placement. Variety of packages available to suit www.automobil.co.za your companies budget.
E-Learning HRST offers a variety of accredited and non-accredited online courses for the public and private sector. -
Road to a Sale
- Service Admin Process - Part and Accessories Sales - Service Management Leadership 1 and 2 - Total Parts Management 1 & 2 - Several Soft skills courses
For further information please contact HRST 011 024 4346 / www.hrst.co.za DECEMBER/JANUARY 2019 - 57 email: christellek@hrst.co.za for bookings
LABOUR
Dealing with
ABSENTEEISM During the festive season, employers are conscious of consequential unauthorised absenteeism. As a matter of concern, unauthorised absenteeism during and shortly after the festive season is considered to have huge adverse impacts on the businesses of employers. Employees advance extremely creative, mostly quite unimpressive, reasons for their absence.
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uring the festive period, which marks limited time available for productivity, unauthorised absence causes irreparable damage to the businesses of employers in most industries. Naturally, as a consequence of restriction of production, deadlines are missed and financial losses result, and employers can simply not condone unauthorised absence. The Labour Court recognises an employee’s general and common law duty to render service to his or her employer,
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and failure by an employee to adhere to this duty can result in disciplinary action being taken against the employee. It is noteworthy that unauthorised absence does not only refer to absence on days when the employee is required to work, but it includes circumstances where the employee may, for instance, arrive late at the workplace, leave the workplace without permission or takes extended lunch- and tea breaks and extended toilet breaks. In general, the guise of absenteeism which causes the most frustration
for employers is when employees completely fail to report for duty (absent without leave). In most instances in the latter event, employees furthermore omit the reason for their malingering and/or the date of their return. The employment agreement serves as the cornerstone to ensure the employee’s compliance with the common law duty to render work. The employment agreement should stipulate the regulations and procedures to be followed in the event that an employee is away from the workplace without authorisation. Clear policies relating to absence should be
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set out and it is vital that the employees are aware of what is expected of them. Disciplinary codes should specifically deal with time-related offences. These codes should evidently reflect what the consequences are in the event that an employee contravenes the disciplinary code or the employment agreement. Employers should be mindful to apply the code where the code makes provision for a set of sanctions to be followed (depending on the grossness of the employee’s transgression), as this will naturally prevent an employer from unfairly (procedurally) dismissing an employee for the first instance of being absent, unless the employee is absent for an unreasonably long period of time. Employers are required to consistently apply disciplinary measures in the workplace. Should the employer treat employees – who are guilty of the same offence – inconsistently, it can create dire consequences for the employer. When faced with an employee who made themselves guilty of absenteeism, it is necessary for the employer to ascertain what the reason for the absenteeism was. The onus rests on the employee to provide a reasonable rationale for the unauthorised absence. In the matter between Hotellica obo Tshijila vs. Azores Manufacturers CC the Court provided factors which were deemed to be decisive in the determination of fair dismissal as a result of absenteeism: • Length of the absence of the employee; • The nature of the job of the employee; • The previous disciplinary record of the employee; and • Whether the employee atempted to contact the employer during the period of absence. During and to some extent after the festive period, the scenario that
employers might be faced with is that leave for a specific day is refused, but despite the refusal of leave the employee still absents himself from the workplace and cannot provide a legitimate excuse for the absence, such as illness (along with a medical certificate). The Courts have viewed such absenteeism in a more serious light (and perhaps as a form of misconduct). This is evident in the matter of Mkele vs. South African Breweries LTD. As it appears in the abovementioned case law, the employer might be able to charge the employee with either absence or failure to comply with a reasonable instruction, or even both. Employers are cautioned to approach and evaluate the reasons provided by employees for their absence carefully. Employees that are charged with absenteeism should be provided with a fair opportunity to explain the reason for their absence, even if the reason does not seem plausible. This is reaffirmed in the matter of Mogamedi vs. Sonpark Kwikspar. In this matter the employee alleged that she was abducted and consequently did not attend work and the Court found her dismissal to be unfair due to the employer failing to verify the reason for her absence.
notifies his or her employer of their absence does not automatically deem their absence as being permitted - it may still lead to action being taken against the employee. The same caution should be applied to an employee who has a legitimate explanation but failed to notify his or her employer of the absence, and the necessary action can still be taken. In both sets of facts dismissal might be an applicable sanction. It is essential that each scenario and each employee’s personal circumstances are evaluated and dealt with in accordance with its own merits – there is simply no uniform approach. The position that the employee held when the absence occurred, as well as the period in which the absence occurred are additional vital considerations when deciding on the appropriate recourse to take against an employee.
Employers and employees alike, are urged to be mindful of the surrounding circumstances related to absenteeism at all times. The mere fact that an employee
Douw Breed is a director at Barnard Incorporated Attorneys, Centurion.
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LEGAL EAGLE
Termination for convenience and public policy A very important principle in the law of contracts is the principle of contractual freedom. This principle entails that parties to a contract can, in general, agree on any terms
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hen parties then enter into a contract, the further principle of pacta sunt servanda, requires that the parties honour the terms of the contract. As a result, where a party then fails to honour the terms of the contract, the other party can confidently approach a court for relief in order to compel the recalcitrant party to comply with its obligations in terms of the contract.
itself or a clause in a contract is not against public policy, but the manner in which a party rely on the clause and give effect to such clause is considered to be against public policy, the court will not sanction such conduct and may refuse to enforce the terms in question. It must, however, be clear that the said conduct is indeed against public policy.
Notwithstanding the aforesaid, if a contract is, however, found to be contra to public policy, the courts will not enforce the terms agreed upon between the parties. Likewise, even when a contract
The position was very well explained by the Supreme Court of Appeal in the matter of Juglal NO vs. Shoprite Checkers (Pty) Ltd where the court found in paragraph 12:
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Because the courts will conclude that contractual provisions are contrary to public policy only when that is their clear effect (see the authorities cited in Sasfin (Pty) Ltd v Beukes 1989 (1) SA 1 (A) at 8C–9G) it follows that the tendency of a proposed transaction towards such a conflict (Eastwood v Shepstone 1902 TS 294 at 302) can only be found to exist if there is a probability that unconscionable, immoral or illegal conduct will result from the implementation of the provisions according to their tenor. (It may be that the cumulative effect of implementation of provisions not individually objectionable may disclose such a tendency.) If, however, a contractual provision is capable of implementation in a manner that
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is against public policy but the tenor of the provision is neutral then the offending tendency is absent. In such event the creditor who implements the contract in a manner which is unconscionable, illegal or immoral will find that a court refuses to give effect to his conduct but the contract itself will stand. Where a party implemented a contractual provision in a manner that is against public policy by doing it pertinently unconscionable a court should come to the assistance of the ‘innocent’ party. An example of a clause which may open the doors for misuse and unconscionable conduct, is the so-called ‘termination for convenience clause’. This clause often finds its way into contracts and essentially allows one or both parties to the contract to terminate the contract at any time without any liability for damages which the other party might suffer as a result of the termination. Such a clause, therefore, grants a party the right to terminate the contract purely because it wishes to do so. For example, where a franchisor therefore realises
that a franchisee runs a very successful business, that franchisor can, on a prima facie reading of the clause, terminate the agreement with the franchisee and take over the franchisee’s business. Conduct such as the aforesaid, however, will not pass muster with our courts. Even though a contract may grant a party the right to terminate the contract at its own discretion, there must still exist a substantial reason for that party to terminate the agreement. A court will refuse to give effect to the conduct of a party terminating a contract simply at a whim and without substantial reasons for such termination. When a party is faced with such a termination, the termination should immediately be addressed as, if it continues, it may constitute a repudiation by the terminating party. When a party is faced with convenient termination of a contract by the other party, such party should therefore immediately obtain legal advice and or assistance to ensure that the pitfalls of the election whether to accept the repudiation or not is avoided.
Andries Stander is a director at Barnard Incorporated 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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WORKSHOP
TROUBLESHOOTING MADE EASY Autodata, the leading provider of automotive technical information shares manufacturer verified fixes to common problems found in motor vehicles. Visit www.autodata-group.com SEAT IBIZA: KNOCKING NOISE FROM ENGINE COMPARTMENT WHEN STARTING OR STOPPING ENGINE Problem: A customer's 2009 Seat Ibiza is making a knocking noise from the engine compartment when starting or stopping the engine. We have heard the knocking noise a few times when starting and stopping the engine in the workshop but have struggled to locate the source of the problem. Have you come across this knocking noise before? Solution: Yes, we have come across the knocking noise you have described. It is due to the air filter housing knocking against the rear locating pin. Remove the air filter housing mounting bracket. Reduce the length of the locating pin by 4 mm Fig.1. Apply black paint to reworked area to prevent corrosion. Refit the components in reverse order of removal. Start and stop the engine to confirm the knocking noise has been eliminated.
VOLKSWAGEN TIGUAN: CRACKING NOISE FROM FRONT WHEEL WHEN PULLING AWAY IN 1ST OR REVERSE GEAR Problem: A customer of ours has a 2008 Volkswagen Tiguan and it is suffering with a cracking noise from the front wheel when pulling away in 1st or reverse gear. During road test we heard the cracking noise but have been unable to recreate the cracking noise in the workshop. We have visually checked the wheels and drivetrain components which all seem to be in good working order. Have other Tiguan owners reported this cracking noise? Solution: The cracking noise you describe has been reported before and it is due to movement between the front hub and the driveshaft. Remove the driveshaft from the front hub. Thoroughly clean the driveshaft splines. Apply thread sealing compound, availble from Volkswagen parts department, to driveshaft splines Fig.1.1. Refit the driveshaft to the front hub. Repeat procedure for the opposite side. DO NOT move vehicle for 8 hours to allow the thread sealing compound to cure. When this time has elapsed road test the vehicle to confirm the fault has been rectified.
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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.
KEEP IT COOL
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.
For more information, please visit www.silverton.co.za
CH6541
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DECEMBER/JANUARY A2019 - 63 Division of Imperial Group Limited
MEMBERUPDATE
The RMI welcomes these new businesses into membership
A AB Collision Repairs Specialist & Towing East London AB Motorsport Pretoria ACME Motor Johannesburg Alberante Motors Alberton ATD Developments Cape Town ATM Chiptuning & Fitment Milnerton Auto Wheels Mafikeng Auto-Impi Boksburg Automend 123 Durban B Batazi and Sons Trading Kwagga Fontain Benzecutive Motors Benoni Blue Bay Auto Port Elizabeth BMG Tyres Alberton Burger Diesel en Petrol Multi Franchise Worcester C C Droomer & Son Wellington Car Boat Rtuck Bodyworks and Mechanical Blackheath Carformance Vereeniging Carsmetic Surgeon Centurion Centurion Crossova Auto Clinic Polokwane D Dunlop Express Soweto E E-Amava Cape Town Earthmoving Equipment Stilfontein East Panel Shop Eshowe East Rand Automotive Engineering Boksburg Echo Power Motors Richards Bay ERI Glass Fit Pretoria F Focus Auto Body Potchefstroom Freds Auto Body Germiston H Halfway Ford Port Shepstone Port Shepstone Hi Tec Auto Body and Sauvage Repairs Alberton J Jabu Beral Autocare and Engineering Brakpan JKR Auto Centrer Durban Johns Auto Clinic Vanderbijlpark K Key Autobody Pinetown
KM & Sons Mechanical Repairs & Construction Pretoria Kupugani Breakdown Services Eshowe Kwena General Services Pretoria M Masis Mitiro Workshop & Training Services Pretoria MAT Tyres Dunlop Express Letstele Mezzosure Polokwane MPK Auto Mechanical Pretoria Musas Vehicle Repairs Pinetown N Nems Auto Repairs Pietermaritzburg Neotoris Mechanics Louis Trichardt New Heights Alberton Nigel Private Test Station Nigel Noise Boys Potgieter Street Pretoria Nolans Auto & Fitment Centre Woodstock O Omnicar Paarl Orbit Commercial Vehicles Helderburg Helderburg P Palace Panel and Paint Mount Edgecombe Pitstop Claremont Claremont Protea Motors Wellington Puzzle Master Motors Randburg Q QAS Spares and Electrical Repairs Durban Quality Test Station Springs R Redwing Mining Supplies Middelburg Remova – dent Mount Edgecombe Renata Tyres & Mags Rustenburg S Sibhekuthula Ermelo Simunye Panel and paint Durban SMG Tygervalley Parow SS Autoworx Alberton Supa Quick Windhoek Namibia Super Test Nuffield Springs Supertest Geduld Testing Station Springs Suzuki Zululand Richards Bay T Tanganani Autobody Repair Pretoria Truck & Bus Full Fleet Olifantsfontein TVH Parts SA Kempton Park Tyre Maniacs Kimberley Tyremart Ceres V VAG Spec Centre Randburg Randburg Wheel Precision Tongaat W Worknet Paarl X Xtreme Auto Bodyworks East London
BENEFITS OF BELONGING With a membership of 8 000, the RMI provides a very effective collective voice that gives members considerable clout in negotiating better trading conditions. As the lead voice in the motor industry, the RMI is a member-driven organisation that constantly seeks solutions to concerns raised by members in the day-to-day running of their businesses.
AD
TAILPIECE
Long-holiday drives are looming – are you organised?
J
akkie Olivier, CEO of the RMI, is urging all motorists to get their vehicles travelready ahead of the festive season. “Cars that aren’t roadworthy are a hazard on our roads and we have to do everything we can to reduce road deaths this year,” he says. He points out that the RMI’s Vehicle Testing Association (VTA) has participating vehicle testing stations around the country offering motorists FREE safety-critical checks on their vehicles from 1 to 15 December 2018. “The two-week campaign aims to help motorists make safety their first priority this summer,” says Ferose Oaten, National Chairperson of the VTA. “Roads during the holidays are notoriously dangerous, and extra precautions need to be taken. It’s essential to have a multi-check on your vehicle to identify potential hazards, and prevent additional damage before it happens.” She points out that the check is not a roadworthiness test, but rather a Safety Critical Test to ensure the vehicle is free from defects.
Olivier says this safety check is a great place to start and should be followed up with a service with an accredited workshop. “There are many automotive workshops, both franchised and independent, especially those belonging to the National Automobile Dealers’ Association (NADA) and Motor Industry Workshop Association (MIWA), that are accredited by the RMI and can offer peace of mind and recourse should you not be satisfied with the service.” Mark Dommisse, National Chairperson of NADA, says vital pre-holiday checks should include brakes, brake pads and discs. “Inspect the tread depth on tyres as well as the general condition of the tyres. Don’t forget to include the spare wheel in the inspection. Be sure to adjust pressures for heavy loads such as caravans or trailers. Carry out a lights function
check, as well as coolant and fluid levels. And importantly, don’t forget about checking the charge level of the battery,” he says. Olivier is appealing to motorists to check their cars in for a service sooner rather than later as we are entering the busy season. Dewald Ranft, Chairman of MIWA, says every year workshops get flooded in November and December with motorists wanting vehicle checks and needing repairs just days before they plan to leave on holiday. “What motorists don’t realise is that should maintenance be needed on their vehicle and spare parts are not in stock, these need to be ordered. This could take several days, if they are available at all. It is risky leaving things to the last minute and could put a real dampener on holiday plans,” he says.
The list of Safety Critical items to be checked will include: • All lights • Seat Belts • Wipers • All Tyres • All Brakes • Steering Mechanism • Suspension • Exhaust • Indication of defective Wheel Alignment
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FORD TRADE CLUB
Unprecedented access. Unequalled prices.
Ford Trade Club has been set up to offer independent repairers, workshops and bodyshops access to thousands of genuine Ford and Motorcraft parts at reduced prices. We have parts for over 20 different Ford models across 85 distinct product groups in categories from brakes to suspension, backed by Ford warranty and designed and tested by Ford, meaning they’re guaranteed to fit quickly and perfectly every time. With a wide range of parts and new parts being added regularly, you’ll want to get involved. As a member of the Ford Trade Club you will also be provided with specialist help and knowledge at your participating Dealership, and will receive exclusive news and offers emailed or sent directly to you. We want to build a strong partnership between Ford Dealers and independent repairers, workshops and bodyshops. Join nearly 2000 others already enrolled and become a member today, go to our website www.fordtradeclub.co.za
Ford Trade Club is operated by Ford Motor Company, South Africa. Applications to join are subject to eligibility. Ford reserves the right to amend the content or operation of Trade Club at any time.
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Aer-o-cure provides an air-tight solution for refinishing professionals. Aer-o-cure’s Combination Downdraught Spraybooths are designed for automotive refinishers that demand a reliable, high quality paint process with minimum running costs. The powerful downdraft ventilation system guarantees a healthy working environment and optimal conditions for painting, removing all vehicle overspray immediately and ensuring a mirror-perfect finish after baking. Minimising energy usage during both the painting and baking cycles is a high priority and is achieved through precisely controlling the motor’s speed via the Microprocessor control. Energy-saving neon lighting is utilised to provide uniform conditions allowing for correct colour tones to be achieved with absolute precision. For a complete Aer-o-cure Spraybooth and Mixing Room solution, visit our website or call now for more information.
10 Reasons why you should choose an Aer-o-cure Combination Downdraught Spraybooth: • Microprocessor controlled, energy efficient • Manufactured in South Africa • OEM Approved • SABS Certified • Lower maintenance costs • Lower operational costs • Easily movable • Established in SA since 1980 • Proven after-sales service and support • Over 2000 spray booths produced since inception
STANDARD MIXING ROOMS MODELS: AM – 30 / 40 STANDARD SPRAYBOOTHS MODELS: AC60- 2800, AC75 – 2800 / 3400, AC90 – 2800 / 3400 OPTIONAL EXTRAS: Extraction • Waterborne Blowing System • Lights • Windows • Gas Burners
For the full range visit: www.aerocure.co.za
Automotive Bodyshop Equipment Aer-o-cure PTY (Ltd) • SADC Registered Manufacturer and Exporter 8 Lees Street, Wynberg, 2090, Johannesburg, South Africa. PO Box 137 Strathavon, 2031 GraphicWerx • AOC_Ad5_AutoMobil_3042
Tel: +27 11 444 6454 Fax: +27 11 444 5677 e-Mail: info@aerocure.co.za * Product / Colour may vary from image provided, subject to stock availability. (E&OE)