AUGUST 2016
FESTIVAL OF MOTORING
All change for JIMS
LESSONS FROM AMERICA NADA's Las Vegas Convention
THE RISE OF 3D PRINTING New production techniques go mainstream
MPEA: Putting quality aftermarket parts first RMI UPDATE: MIWA’S STARS SHINE; ENGINE GURU ENLIGHTENS ERA MEMBERS; www.automobil.co.za NEW APPOINTMENT AT SAPRA; INCREASE IN TRAFFIC TO RMI WEBSITE; PARTINFORM ROCKS BULAWAYO; RMI HIGHLIGHTS ROADWORTHY CONCERNS
AUGUST 2016
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22 -AUGUST NOVEMBER 2014 2016
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CONTENTS – AUGUST 2016 COLUMNS 5 Driver’s Seat: Jakkie Oliver, CEO of the RMI 7 Editor’s Letter: Wynter Murdoch 9 Hot Stuff: New product showcase 58 Frequently Asked Questions: Answers from the experts 66 Tailpiece UPDATES 12 News
New beginnings, Automechanika gears up, World land speed record date set, Isuzu to build next Mazda bakkie, Caltex tops the forecourt charts, Topless Ferrari gears up for Paris launch, Nissan sells car via Twitter, Igniting technical pasion, RMI highlights roadworthy concerns, Search on for SA’s safest truck drivers
Editor: Wynter Murdoch wynter@thefuture.co.za Sub-editor: Peggy Lendrum peggy@thefuture.co.za Design and layout: Heinz Bawa heinz@thefuture.co.za Reporters: Ryan de Smidt ryan@thefuture.co.za
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Reuben Van Niekerk reuben@thefuture.co.za
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Lessons from America
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Get set for a WOW experience
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Putting quality first
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RMI Update
Publisher: Richard Lendrum richard@thefuture.co.za Production: Mabel Ramafoko mabel@thefuture.co.za Advertising Sales Executives: Enver Lawangi, Greg Surgeon, enver@thefuture.co.za greg@thefuture.co.za Future Publishing (Pty) Ltd 1 Cecil Avenue, Melrose Estate, Johannesburg PO Box 3355, Rivonia, 2128 Tel: +27 (11) 268-6297 RMI Automobil’s Editorial Sub-Committee: Chairman: John Ellmore; Gary McCraw, Gideon de Klerk, Shamika Singh, Danelle Van Der Merwe, Marwaan Davids, Wynter Murdoch, Greg Surgeon, Jakkie Olivier, Jan Schoeman
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You don’t have to be a petrolhead to enjoy yourself at this year’s SA Festival of Motoring, which will be held at the newlyrenovated Kyalami Grand Prix Circuit near Johannesburg Members of the Motor Parts and Equipment Association (MPEA) represent all spheres of South Africa’s aftermarket parts and equipment sector MIWA’s stars shine, Engine guru enlightens ERA members, New appointment at SAPRA, Increase in traffic to RMI website, Partinform rocks Bulawayo
COVER STORY 18
Dawn of the new tech
Rolls Royce is among the car brands that have been using 3D printing technology to shorten production times and bring vehicles to market quicker
FEATURES
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Automobil is the official journal of the Retail Motor Industry Organisation (RMI) which hosts 14 constituent associations: ACRA (component remanufacturers); ERA (engine re-builders and automotive engineers); MDA (motorcycle, scooter, quad and jet-ski/outboard engine dealers); MIMA (Motor Industry Manufacturers’ Association); MIWA (the full spectrum of workshop operators); MPEA (wholesale and retail part dealers); NADA (new and used car and truck dealers); NAZA (number plate association); VTA (vehicle testing); SADFIA (diesel pumproom operators); SAPRA (Fuel resellers, convenience store and car wash operators); SAMBRA (collision repairers and automotive refinishers); SAVABA (vehicle body builders) and TDAFA (tyre dealers and fitment centres).
Automobil is available to purchase from the publishers at R25 a copy. Automobil is published by Future Publishing (Pty) Ltd and produced for the Retail Motor Industry Organisation. Opinions expressed in Automobil are not necessarily those of the publishers or the Retail Motor Industry Organisation. Permission to republish any article or image or part thereof must be obtained in writing from the publisher. © Future Publishing (Pty) Ltd.
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No such thing as foolproof!
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Innovation under the bonnet
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Celebrating 120 years of motor history
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Garden leave and restraint of trade
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Jeánne Esterhuizen, President of the RMI, recently attended the NADA convention in the United States as a member of the MISA Women’s Forum
The trouble with new technology is that it tends to leave casualties in its wake, says David Furlonger Mahle, DuPont and BMW have jointly developed an intake system for the automaker’s B58 3,0-litre petrol-fuelled engines which has been designed to save space and boost performance In the first of a two-part series, Jake Venter goes back in time to trace the history of the motor car, which this year celebrates its 120th anniversary A garden leave clause in the South African context usually refers to instances where employees tender their resignations and employers require them to stay at home for the whole, or part of, the notice period
Staff loans and the NCA
Before you – as an employer – loan money to a staff member, read this. Changes to the National Credit Act, which come into effect in November, mean you may have to be registered as a credit provider
Survive? No thanks, rather thrive!
Want your business to succeed? There is a wealth of knowledge to be gained by reading, says Fergus Ferguson
Geared for action
Managing HIV/AIDS in the workplace
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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
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DRIVER’S SEAT
The RMI and transformation In underlining the benefits of belonging, Jakkie Olivier, CEO of the RMI, outlines some transformation initiatives in which the Organisation is involved
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he RMI’s transformation initiatives, driven by a dedicated transformation committee that is appointed by the RMI Board, consists of three office bearers and three RMI staff members, including the Organisation’s President and the CEO. The committee’s job is to assist RMI associations and members with transformation matters related to B-BBEE.
In addition, we have put processes in place where associations will be able to work alongside the RMI in addressing specific matters.
allocated to 297 RMI-associated businesses in the Western Cape, Kwazulu-Natal and Gauteng regions, with many of these in under-developed rural areas.
Our aim is to assist RMI members through our respective constituent associations in applying best practices as well as helping to interpret and apply the B-BBEE Act correctly.
RT46 MERCHANT AGREEMENTS The RMI has secured a working relationship with Transit Solutions (Pty) Ltd regarding the State’s RT46 Fleet Management Contract, which expires on March 31, 2019.
The RMI recognises that in South Africa, skills development, employment equity and B-BBEE are national objectives that form part of a dynamic legislative framework, which is why we continue working towards ensuring that our members are able to comply with and enjoy the associated commercial benefits.
RMI4BEE The RMI’s joint venture partner, BEE Dynamix, is the proud service provider for RMI4BEE. This service allows members to adapt transformation initiatives to achieve maximum benefits without compromising objectives, staff and stakeholder needs.
To this end, we keep abreast of the latest legislative changes, prioritising our focus areas while continuing to manage commercial transformation initiatives. Recent developments include:
The RMI’s transformation department is in the process of developing an interactive database that will allow members to check their annual B-BBEE verification status, thus facilitating early intervention and providing a pro-active service.
COMPLIANCE WITH NEW B-BBEE LEGISLATION As part of a series of ongoing meetings and engagements with the Department of Trade and Industry (DTI), the RMI presented its views and discussed challenges experienced in the interpretation of certain elements of the Codes and the unintended consequences these may have on member businesses. The DTI welcomed the discussion and responded favourably to the issues raised. The DTI is currently in the process of finalising a Verification Manual that will address some of our concerns. The RMI has been tasked by the DTI to investigate possible solutions to the points in question and make recommendations as to how the B-BBEE Codes could be improved.
BLACK BUSINESS SUPPLIER DEVELOPMENT PROGRAMME (BBSDP) For the past five years, the RMI has actively collaborated with the BBSDP and Deman Consulting in order to develop and grow SMMEs within the retail motor industry. The BBSDP programme offers a costsharing grant to black-owned small enterprises, helping them to improve competitiveness and sustainability, create employment and become integrated in the mainstream economy. The maximum amount of each grant per enterprise is R1million, of which R800 000 is ring-fenced for tools, machinery and equipment. Our collaboration has resulted in R214million worth of BBSDP funds being
The partnership with Transit Solutions relates to the repair, maintenance and fleet support of approximately 114 000 government vehicles nationally, of which about 56 000 belong to the South African Police Services, 12 000 to Emergency Medical Services and the remainder to the general government vehicle pool. This is great news for RMI businesses that belong to MIWA, SAMBRA, ERA, SADFIA, TDAFA, ACRA and MDA, because they are now entitled to register as RT46 merchants. All members registered on the RT46 database will be considered for the maintenance and repair of government vehicles. The work allocation process is dependent on a number of criteria that will be extrapolated from the member’s merchant registration status. However, Transit Solutions will provide guidance to associations regarding transformation requirements. Transformation remains a strategic objective for the RMI and we are committed to supporting members in achieving their own transformation objectives so that they can enjoy the benefits it brings. For proactive assistance, RMI members can contact any of the RMI offices.
For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300
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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.
NAZA (Number Plate Association of South Africa) NAZA supports the imposition of a national standard for number plates, as well as for legislation to govern their manufacture, embossing practice and protocol. NAZA members adhere to a strict code of ethics in ensuring their part in eradicating corruption within the sector. TA
Vehicle Testing Association
VTA (Vehicle Testing Association) The VTA represents private vehicle testing stations that are committed to operating within the law in accordance with the Road Traffic Act and the relevant SANS standards. In this highly regulated environment, the association represents the interests of its members at government working groups and is committed to enhancing the reputation of the industry in all the spheres. SADFIA (South African Diesel Fuel Injection Association) SADFIA members operate fully equipped pump rooms aimed at providing cost-effective service solutions for owners of diesel powered vehicles seeking fuel injection system testing, repair or replacement. SAMBRA (South African Motor Body Repairers’ Association) SAMBRA is an active leader in the motor body repair industry and consolidates, communicates and regulates repair standards in the motor body repair industry. SAMBRA ensures the provision of technical and business skills training that meets the demands of the industry and instils confidence in consumers and industry stakeholders. SAPRA (South African Petroleum Retailers’ Association) SAPRA represents and promotes the interests of petroleum retailers in South Africa and fosters strong relationships with the Department of Energy, oil companies, banks, financial institutions and other stakeholders that have an impact on the sustainability of the service station industry.
MPEA (Motor Parts and Equipment Association) MPEA represents South Africa’s auto part traders, including wholesalers, retailers and independent operators in the replacement motor parts industry. Genuine replacement parts are available at accredited MPEA spares outlets at affordable prices, backed by the manufacturer’s warranty.
SAVABA (South African Vehicle and Bodybuilders’ Association) SAVABA members are professional, certified and regulated vehicle body builders in South Africa who manufacture commercial vehicle body applications (tanker, coal, refrigerated trucks and trailers) and bus bodies (commuter and tourist type). Members manufacture using the latest equipment and highly trained staff to ensure strict compliance with SABS standards and other legal specifications.
NADA (National Automobile Dealers’ Association) NADA represents the interests of business people who own or operate new vehicle franchise dealerships and qualifying used vehicle outlets. NADA is committed to the image enhancement of the retail motor business, facilitating the interface between dealers and OEMs/ distributors, building relationships between dealers and customers and bringing relevant industry issues to the attention of government.
TDAFA (Tyre Dealers' and Fitment Association) The TDAFA is the only representative body for tyre dealers nationally. The association works on all issues relevant to tyres and the fitment industry. Strategically, the TDAFA is positioned as an intermediary between government, the tyre industry and consumers and is recognised by government and industry leaders as the legitimate voice representing tyre dealers.
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EDITOR’S LETTER
Change is the only constant
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he auto world is changing at rapid pace – and this edition of Automobil reflects some of those changes in terms of reports on new mass production techniques, spare part manufacture, technologies and even methods of marketing. Earlier this year the President of the RMI, Jeánne Esterhuizen, attended the NADA convention in the United States at the invitation of the MISA Women’s Forum. Her extensive report of the Las Vegas event indicates that, from an automotive skills perspective, countries the world over face similar challenges to those that confront
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South Africa’s industry, mainly because the pace of technological change makes it difficult for people in the workplace to keep up. As Jeánne points out, the theme of NADA’s convention was CONNECT and, following her experience at the event, she advocates that the concept should become the aim of the motor industry on a global level. On another tack, the magazine’s cover story reflects the rise of 3D printing in the production arena, with a no lesser brand than Rolls Royce having pioneered use of the technology since 2012 in the manufacture of its Phantom. Subsequent models such as the Dawn have followed suit, resulting in shorter production times and vehicles moving to market quicker. Other brands, too, have introduced similar systems.
Now Daimler has joined the revolution on the truck front. From September this year the manufacturer will make available on a global level spare parts crafted to order using a 3D printing process. The manufacturer guarantees that the quality of the items will match those of originals produced using traditional methods. Finally, when it comes to car shows, South Africa’s new Festival of Motoring – which has the support of the RMI – looks set to revolutionise local vehicle exhibitions. The event opens at Kyalami at the end of this month and promises a feast of entertainment, food, fun and motoring. If you love cars, it’s my view that you’ll be in for a treat. In the meantime, I hope you’ll enjoy the background report which appears on P28.
Wynter Murdoch, Editor
AUGUST 2016
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NEWS
SPEAK TO US RMI EXECUTIVES
hief Executive Officer: C Jakkie Olivier jakkie.olivier@rmi.org.za Chief Operations Officer & Human Resources Director: Jan Schoeman jan.schoeman@rmi.org.za Financial Director: Renee Coetsee renee.coetsee@rmi.org.za Company Secretary: Gary McCraw gary.mccraw@rmi.org.za
RMI BOARD MEMBERS
Jeánne Esterhuizen (President) Barry Canning (Vice-President) Ferose Oaten Jakkie Olivier Bruce Allen Lindsay Bouchier Pumza Gcanga Les McMaster George Nyabadza
RMI PARTNERS
SAMBRA Edwin Martin edwin.martin@rmi.org.za SAPRA Viv Corinaldi viv.corinaldi@sapra.co.za TDAFA, ACRA Hedley Judd hedley.judd@rmi.org.za
@AutomobilSA
TRAINING, TRANSFORMATION & ENTERPRISE DEVELOPMENT Marwaan Davids marwaan.davids@rmi.org.za SADFIA Louis van Huyssteen louis.vanhuyssteen@rmi.org.za ERA Pieter Niemand pieter.niemand@rmi.org.za
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NAZA Julian Pillay julian.pillay@rmi.org.za MPEA, MIMA Erwin Stroebel erwin.stroebel@rmi.org.za MDA Jeff Molefe jeffrey.molefe@rmi.org.za
RMI4Sure 0860-104-202 RMI4Law 0861-668-677 RMI4BEE 0861-764-233 RMI4OHS 012-998-7139
RMI HEAD RMI HEADOFFICE OFFICE Danelle van der Merwe Brand and Communication Manager danelle.vandermerwe@rmi.org.za
DIRECTORS
Q&S, SAVABA, FRICTION STANDARDS Vacant
Neo Bokaba Transformation Manager neo.bokaba@rmi.org.za
MIWA Vishal Premlall vishal.premlall@rmi.org.za
011-789-2542 | www.rmi.org.za
NAAASP EMPOWERMENT Marwaan Davids marwaan.davids@rmi.org.za
Surrey Square Office Park 330 Surrey Avenue Ferndale Randburg 2194
NADA Gary McCraw gary.mccraw@rmi.org.za
RMI REGIONAL OFFICES
VTA Joy Oldale joy.oldale@rmi.org.za
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Facebook.com/AutomobilSA
Highveld: Jeff Molefe jeffrey.molefe@rmi.org.za Randburg: 011-886-6300
TA
Vehicle Testing Association
Northern: Pieter Niemand pieter.niemand@rmi.org.za Pretoria: 012-348-9311 KwaZulu-Natal: Julian Pillay julian.pillay@rmi.org.za Durban: 031-266-7031 Eastern Cape/Border: Erwin Stroebel erwin.stroebel@rmi.org.za Port Elizabeth: 041-364-0070 Western Cape: Joy Oldale joy.oldale@rmi.org.za Cape Town: 021-939-9440 Free State/Northern Cape: Louis van Huyssteen louis.vanhuyssteen@rmi.org.za Bloemfontein: 051-430-3294
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HOT STUFF
NEW PRODUCTS
Bird’s eye view
Clarion’s latest SurroundEye commercial vehicle video camera system aims at eliminating blind spots to provide truck drivers with greater safety margins on the road, in congested spaces and when parking. A company spokesman claims in a statement that the system provides a higher level of peripheral vision than previously achievable. Enhanced image processing delivers a crisp, clear picture, while four ultra-wide-angle (160 degree) CMOS cameras provide a switchable, bird’s-eye view of the perimeter of the vehicle. A range of cabling has been designed to accommodate a variety of truck and trailer combinations. High-definition digital images are fed through Clarion’s well-established image processing technology and displayed in the cab on a colour monitor that offers a split screen function. Camera views can be tailored according to specific traffic conditions or manoeuvres. For information log on to www.clarion.com
Real sports car? The latest vehicle to join the Mercedes-Benz range is a premium-class golf car. Developed in conjunction with the brand’s designers, Daimler's Think & Act Tank Business Innovation and well-known golf cart manufacturer Garia, the derivative is said to define a new class of transport for the golf course. Gorden Wagener, Head of Design at Daimler AG, says the model represents a reinvention of the traditional cart. “Mercedes-Benz stands for modern luxury, and golf is an authentic part of that theme. Transferring our automotive design idiom to the Golf Car is therefore something quite natural and, in doing so, we have created a product that is both sensual and pure,” he maintains. Jens Thiemer, Vice President of Marketing for Mercedes-Benz Cars, adds that the car was specifically developed for sporting golfers. “Our communication bears the lighthearted slogan, a real sports car,” he says.
Drilling and driving Triton’s T12TP 12-volt cordless lithium ion twin pack features a T12DD Drill Driver and T12ID Impact Driver plus two batteries with Samsung cells for extended runtime. According to a statement released by Vermont Sales, distributors of the lightweight and compact tools, each of the devices is equipped with a Mabuchi motor while moulded rubber grips, which have been designed to offer secure handling, also help to reduce vibration. Both drill and driver feature precision metal gearing and are equipped with built-in LED work lights. The T12DD has a Sanou 10mm keyless chuck and concealed magnetic bit holder for rapid switching between drilling and driving. The device offers variable torque and speed settings and is equipped with a 6mm hex bit holder for quick bit changes. The T12ID cordless impact driver is said to provide extra power and force with 80Nm of sustained torque, making it ideal for fastening, tightening and driving applications. The two together are said to make a perfect set for all types of drilling and driving applications. The pack includes an intelligent quick charger and a handy carrying case.
The car, which weighs 440kg, features double wishbone suspension for a comfortable ride. Handling is said to be light and precise on all surfaces. Dimensions are compact – a length of 2 350mm, width of 1 200mm and a height of 1 720mm, with a turning circle of 5,2 metres. Power is supplied by a 3kW electric motor, but the unit can also make up to 11kW available for short periods. The vehicle’s top speed is governed to 30km/h and its range is said to be 80km. Charging time for the lithium-ion battery is six hours. For more information, log on to http://arealsportscar.com.
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For information log on to www.vermontsales.co.za
AUGUST 2016 -
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NEWS
OUT WITH THE OLD … BRINGING YOU BETTER! Launching soon!
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0861 329 800
www.motohealthcare.org.za
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AUGUST 2016 -
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NEWS
New beginnings
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outh Africa’s Festival of Motoring, which has replaced the Johannesburg International Motor Show, will take place at the Kyalami Grand Prix Circuit from August 31 to September 4.
In a media statement, organisers SA Shows Messe Frankfurt say the festival promises to be a crowd pleaser for both car enthusiasts and families looking for an entertaining day out. The event remains South Africa’s only official auto show but has expanded its offering to feature attractions including test drives around the race track, food, fashion and entertainment. As always, new vehicle models will be unveiled at the show. The event has been endorsed by the National Association of Automobile Manufacturers of South Africa (NAAMSA) and has the support of the RMI, which will have a display at the show. Tickets are available at Computicket. • For an in-depth report on the new-look show, see P28
Automechanika gears up
Damage Repair Street, which will host 14 workshop-equipment suppliers, paint manufacturers and collision-damage service providers. “We are delighted with our expansion programme,” says Olaf Musshoff, Director of Automechanika Frankfurt. “It has enabled us to strengthen Automechanika as the meeting place for companies and decision makers from the collision-damage market and show solutions for process optimisation in the workshop.”
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anel beating will be in the spotlight at this year’s Automechanika Frankfurt, when companies from across Europe put their wares on display from September 13 to 17 in Hall 11 at the Messe Frankfurt Exhibition Centre. According to a statement released by the organisers, 35% of exhibitor companies in Hall 11 are German with
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other important displays expected from Italian, Dutch and Polish businesses. “Visitors can look forward to numerous innovations, especially in the fields of workshop equipment, repairs, paintwork and corrosion protection,” the statement says. New to the trade fair this year is a special exhibit area dubbed Collision
Also highly anticipated is the sector’s second Collision Talk lecture, which will focus on issues of topical importance to the collision-damage repair industry. The inaugural lecture at last year’s Automechanika attracted significant interest and was the best attended event on the trade fair’s discussion programme. For more information regarding Collision Talk topics and to register to attend the lecture log on to www.schadentalk.de/sign-in
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World land speed record date set
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with major deals recently signed, and race preparation is underway for high speed runs at Hakskeen Pan in the Northern Cape in spring next year.
According to a statement issued by the organisers, funding has been secured,
Bloodhound SSC will travel under its own power for the first time at Newquay in the UK in June 2017, in a
he Bloodhound Project has announced that the target date for its world land speed record attempt is October 2017 – 20 years after Thrust SSC set the existing record.
slow speed shakedown test to be run at about 354km/h. The shakedown will give the team an opportunity to practice live-streaming data and imagery from the car. Project director Richard Noble said: “This is probably the biggest moment in Bloodhound’s history – now we can put our foot down and really go for it! We’re in this position thanks to the incredible support of our partners and sponsors, and the dedication and sacrifice of many people. “Most of all it has been the amazing public response that has sustained us. There is tremendous public enthusiasm for the project wherever we go.”
Isuzu to build next Mazda bakkie
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azda’s next-generation BT-50 pick-up will be built by fellow Japanese manufacturer, Isuzu, according to an agreement signed last month between the two companies. In a statement, spokesmen for the brands confirmed that the BT-50 would be built on an Isuzu KB platform in Japan and that the model would be exported to global markets excluding the United States.
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The announcement marks the second recent agreement Isuzu has made with a rival bakkie brand. In 2014 the company began development work with General Motors on a Chevrolet/Holden pick-up for the Australian market. The statement says the aim of the latest venture is to allow Isuzu to enhance its product competiveness and Mazda to strengthen its product line-up while maintaining own-brand market coverage.
“Mazda and Isuzu have maintained a collaborative relationship for more than 10 years, with Isuzu producing Mazda trucks for the Japanese market,” the statement says. “This agreement reinforces the continuous longterm relationship between the two companies.” Mazda’s current BT-50, developed in collaboration with Ford, is based on a Ranger platform.
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NEWS
Caltex tops the forecourt charts
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altex has been ranked in the top five of this year’s Ask Afrika Orange Index customer experience benchmark – and number one in the petrochemical industry, 42 places ahead of its nearest petroleum competitor. In a statement following the announcement, Caltex spokesman Price Njokweni, General Manager of Sales and Marketing Support at Chevron SA, said South African consumers were increasingly holding companies to higher standards of service delivery and expecting greater value from any service interactions. “Consumers are growing more critical and less tolerant of poor service. Increasingly they are looking for service which is tailored to their needs and which reflects more personal recognition and a sense of being valued,” he said. “By shifting the Caltex brand’s approach from a sales-driven operation to
relationship-building, we’ve made a change where it ultimately matters – meeting our customers’ needs.” Njokweni said it took at least seven visits to the same petrol station to build customer loyalty. “Once we’ve achieved that, we generally hold the customer’s business for up to eight years. “Sounds easy – but motivating what is essentially a grudge purchase in a highly regulated industry is easier said than done. The only way we can achieve it is through meaningful engagement via additional platforms such as service, a compelling retail offering and access to facilities.” According to Njokweni, the future of fuel retailing depended on an ability to present a full site offering. In this respect Caltex’s partnership with FreshStop convenience stores and Standard Bank’s UCount loyalty programme had helped to underpin
the brand’s commitment to customer convenience and service. “By leveraging FreshStop’s flexibility and supply chain prowess, Caltex has been able to tailor its forecourts to suit specific needs of customers, simultaneously taking some of the pain out of the grudge purchase and acknowledging an economic environment which demands a value conscious offer. “For a consumer centric approach to be effective, it essential to realise that the sale is the result of a solid relationship that puts customers first,” he said.
Topless Ferrari gears up for Paris launch
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he open-top version of the LaFerrari, a limited-edition special series model, will be unveiled in October at the Paris Motor Show, according to a statement released by the automaker. While the number of units Ferrari intends to produce will be announced
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at the show, a company spokesman says all available examples have already been sold following a special preview of the model to collectors, and the order book has been closed. The new car features a removable, carbon-fibre hard-top as well as a
removable soft top. It is powered by a V12 engine coupled with an electric motor for a combined output of 708kW. Significant and extensive modifications have been made to the chassis with the aim of retaining the same torsional rigidity and beam stiffness as the original coupé version. The car’s aerodynamics have also been honed to guarantee a similarly low drag coefficient when driving in the open configuration.
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Nissan sells car via Twitter
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issan has become the first automotive brand in Europe to sell a vehicle exclusively through the use of social networking site, Twitter. From first contact with the client to the final decision to purchase – just six days later – all communication between flagship Galician dealer Antamotor and customer Raul Escolano took place via the social media platform. Known to the dealership as user@ escolano, the buyer initially courted a number of car companies using the hashtag #compraruncocheportwitter (in English, buy a car on Twitter.) Escolano threw down the gauntlet to automotive brands across Spain, challenging them to support him in buying a vehicle solely through the use of social networks. Nissan, via leading franchisee Antamotor in A Coruña, impressed Escolano with its innovative approach, using the video streaming platform Periscope to film the X-Trail, with the
Raul Escolano with the Nissan X-Trail he bought via Twitter, marking a first for a car brand in Europe
dealer presenting all of the vehicle’s key features in a personalised walk-through which was uploaded to a live stream. Nissan then went head-to-head with rival models in a poll on Twitter, posed by Escolano, in which followers were asked to rate the cars on the shortlist. The survey, which received 2,6-million impressions, ranked the X-Trail ahead of its rivals with 43% of the vote, effectively helping Nissan to seal the deal. In the spirit of the truly innovative purchase, keys to the X-Trail were
delivered direct to Escolano’s home by courier to complete the online transaction. The vehicle itself was collected from the brand’s Spanish Headquarters in the first face-to-face interaction between Nissan and the customer since the sale’s start. According to a Nissan spokesman, today’s customers typically visit a dealership only once before an automotive purchase, down from five visits a decade ago, so it’s clear that the online experience has never been more critical for automakers.
Igniting technical passion
I
n the three years since it began ferrying visitors around Volkswagen’s Uitenhage assembly plant, the company’s environmentally friendly FactoryTour vehicle has carried nearly 40 000 passengers. The vehicle, which seats 21 people per tour, allows visitors to see Volkswagen’s manufacturing process close up. Custom built by employees and constructed from recycled and unused parts, the vehicle consists of three comfortable, practical and stylish wagons which are pulled by a battery powered tow motor. “The FactoryTour vehicle represents an inventive way of showing our technical process to visitors – a large
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number of who are school children. I am proud that we are able to ignite engineering and manufacturing passion in young minds by allowing them a close up view of the assembly process,” said Thomas Schaefer, chairman and managing director of Volkswagen Group South Africa.
Factory Tours take place Monday to Thursday at 09h00 and 12h00 and on Friday at 09h00. Bookings can be made through the Volkswagen AutoPavilion on (041) 994 5941/3. The FactoryTour includes the tour of the AutoPavilion, where some of Volkswagen South Africa’s classic cars are on display.
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NEWS
RMI highlights roadworthy concerns
T
he RMI has noted with concern the state of non-roadworthy and unlicensed heavy vehicles in operation on South Africa’s roads, highlighted by a recent report of four trucks and trailers being impounded in Mpumalanga.
been 131 major crashes involving trucks between January, 2013 and May, 2016. The accidents, which occurred in KZN, Gauteng, the Free State, Mpumalanga and the Eastern Cape, claimed the lives of 791 people and left 726 injured.
The vehicles were taken off the road following an inspection by traffic authorities who found the rigs to be non-roadworthy and operating with fraudulent documentation, including invalid licenses.
Commenting on the issue, RTMC spokesperson Simon Zwane said vehiclerelated factors had been identified as the second most common contributing factor to the accidents, with human error or behaviour the lead cause.
In a statement, the RMI said its concern was further exacerbated by the fact that RTMC data showed that that there had
“The RMI applauds the action of traffic authorities in Mpumalanga, where strong measures are being taken against
Search on for SA’s safest truck drivers
M
asterDrive and The Future Group, publishers of Automobil, have teamed up to launch an exciting new driver excellence competition in which 10 finalists will be chosen to participate in a driving experience which could land them and their companies in the Hall of Fame at TruckX 2017. To get involved, role players in a company’s fleet management team need to nominate the driver who they believe is their best. Following this, candidates will be shortlisted to take part in the competition. Over a four-month period, participants will be put through an accredited driver training programme with extensive focus on defensive driving as well as in specialised collision and rollover prevention.
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the illegal operation of heavy vehicles. The Organisation appeals to transport operators to ensure that they maintain their vehicles in a safe and roadworthy condition; that they submit their vehicles for statutory roadworthy tests at any RMI Vehicle Testing Association member test station; and that they ensure that annual vehicle licenses are renewed,” the RMI statement said. The Organisation also reminded motorists that, while periodic roadworthy testing of private passenger vehicles was not yet mandatory in South Africa, it remained imperative that current regulations were respected by all road users.
Truck 2016
Conference & Expo
For the remainder of the competition, drivers will be coached and monitored via telematics which will be supplied, if necessary, by telecommunications partner Ctrack. From this the drivers regarded as the safest by MasterDrive will be selected and earn their places in the TruckX Hall of Fame. According to Herbert, the initiative is aimed at encouraging road safety in Southern Africa. “Participating organisations and companies will show their drivers to be leaders in road safety. It will also give them an opportunity to reward and acknowledge their best drivers. Companies will also
benefit from the opportunity to upskill their drivers even more.” To qualify for nomination, drivers will have to have driven rigid or articulated trucks for at least five years and they will have to travel more than 10 000km a month in the course of their duties. Further, they will have to hold valid PRDP with codes relevant to their vehicles and have no endorsements on their driving licenses. Further, a roadworthy check of the vehicles they drive will be required before their nominations will be accepted. If you would like to get involved in the initiative contact Gary@masterdrive.co.za or call MasterDrive on 0861100618.
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Making history‌ Vivian Mohohlo, dealer principal at Lexus Centurion
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MAY 2016 -
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COVER STORY
DAWN
of the new tech Rolls Royce is among the car brands that have been using 3D printing technology to shorten production times and bring vehicles to market quicker
W
ith more than 10 000 additively-manufactured parts built into the Rolls-Royce Phantom, the brand has been using components from 3D printers in series production since 2012. And the company will continue to expand the role of the pioneering technology. Its Additive Manufacturing Centre at the BMW Group’s Research and Innovation Centre (FIZ) has also been using these forming processes to produce parts for the Rolls-Royce Dawn since the start of the year. The Group is steadily pursuing the evolution and use of advanced additive-manufacturing methods. According to Udo Hänle, head of production strategy and technical integration at the centre, the technologies are set to become one of the company’s main production methods. “The integration of additivelymanufactured components into Rolls-Royce series production is an important milestone for us on the road to using this method on a largescale. By utilising new technologies, in the future we will be able to shorten production times further and increasingly exploit the potential of tool-less manufacturing methods.” Plastic holders for hazard-warning lights, centre lock buttons, electronic parking brakes and sockets for the
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Phantom have been made using 3D printing methods since the start of production in 2012. Mounting brackets for fibre-optic cables used in the Dawn have also been produced by 3D printers since the start of the year, and the company will install several thousand of these clips throughout the model lifecycle. “Rolls-Royce Motor Cars is a pioneer in the use of the most innovative production technologies,” says Hänle. The advantages of additive manufacturing are visible early on, especially for components with a complicated design. Production times are significantly shorter than for conventional production methods, while still meeting the same high quality standards. And new, planar printing technologies enable considerably faster production times than conventional point-to-point 3D printing methods. Beamers or infrared sources are used to expose the full surface, rather than point-to-point, high-priced light sources, such CO2 or UV lasers. Jens Ertel, head of the Additive Manufacturing Centre, says planar technologies will be central to the use of additive processes in series production. “The most recent example can be found in preliminary trials of HP
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Multi Jet Fusion technology. The process will initially be used in prototyping, but we plan to extend it into series production over the long term.” The process utilises print heads and liquid agents, like a conventional inkjet printer. At the start of the process, a thin layer of base powder material is applied. The print head then sprays fusing and detailing agents onto the powder bed. What is unusual is that, at virtually the same time, the respective layer of the component is fused using infrared radiation. This speeds up production time and increases flexibility. Late last year, a breakthrough was achieved in the field of planar 3D printing with the introduction of CLIP technology (Continuous Liquid Interface Production). This method shortens production times considerably, since it works with planar exposure from a beamer. BMW used the process for the first time to produce individualised side indicators for its DriveNow car-sharing fleet. In a social media campaign, German customers voted on names for a total of 100 Minis in the fleet. CLIP technology was then used to integrate these in the indicator body of the vehicles being tested on the roads in Germany. According to Ertel, the BMW Group has successfully used 3D printing
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technologies for more than 25 years. Classics examples include areas where highly complex components are required in small quantities – mainly in pre-development, vehicle validation and testing, or for concept and show cars, but also small series production. “In this way, the company is constantly working to harness new additive methods for vehicles from prototypes to classic cars. However, the methods are also utilised in tool-making and manufacturing equipment,” he says. The BMW Group celebrated the first successful use of this technology in small-series production in 2010, with the additively-manufactured water pump wheel still fitted in DTM vehicles to this day. The Additive Manufacturing Centre team at the FIZ handles nearly 25 000 prototype orders annually and delivers more than 100 000 components per year to customers within the Group. The spectrum ranges from small plastic holders to design samples to metal chassis components for functional testing. Depending on the process used and size of the parts, components are often available within just a few days. In another development, MercedesBenz Trucks has announced that as of September this year, 30 genuine spare parts will be available for order and supplied at the press of a button from
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COVER STORY
a 3D printer – quickly, economically, in any quantity and always consistent with genuine manufacturer’s quality. The company says in a statement that through the use of 3D printing technology it is taking on a pioneering role and technological leadership among global truck producers. “In keeping with our brand promise Trucks You Can Trust, we set the same benchmarks for reliability, functionality, durability and economy for spare parts from 3D production as for parts from conventional production,” says head of marketing, Andreas Deuschle. “However, 3D offers many more possibilities; this is why we shall be rapidly extending the production of 3D printed parts.” Daimler manufactures more than 100 000 printed prototype parts for individual company divisions every year. “We benefit from our extensive experience at Daimler with 3D printing processes in prototype construction,” says Deuschle. The available spare parts consist of high-quality plastic components. Covers, spacers, spring caps, air and cable ducts, clamps, mountings and control elements are just a few examples of economical spare part production in top quality made possible by using the 3D process. The printed spare parts are created with state-of-the-art 3D printers based on the Selective Laser Sintering (SLS) printing process. For the high quality standards of Mercedes-Benz Trucks the process parameters have been optimised and determined by Daimler’s research and development divisions. Every 3D spare part can be ordered by a customer using a special spare part number under which it is recorded in the order code lists and the spare parts
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Dr Udo Hänle
catalogues at Mercedes-Benz Trucks outlets. Thus, even after several decades, rapid supply to the customer is ensured via the Mercedes-Benz Logistic Supply Chain through all the sales stages – anywhere in the world. According to Deuschle, the challenge in the spare parts business lies in securing supply even for model series which are no longer produced. This means that the range also includes spare parts for which there is only a low demand in small quantities every year. While producing them via traditional methods is becoming increasingly
Dr Jens Ertel
uneconomical for manufacturers – production facilities and tools often have to be retained and maintained for years – the 3D printing process makes those challenges a thing of the past. The printing itself can take place within a very short time following receipt of the design definition and order, considerably speeding up production and supply. No warehousing is required either. At the same time the burden on costs, resources and the environment is also eased, since there are no material surpluses, the disposal of which is often complex.
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EPS 708: Forward–looking and efficient Simple and precise
Common rail is the predominant system for the future. The diesel test bench EPS 708 would enable the testing of common rail injection pumps and injectors of Bosch and other manufacturers. Have you ever thought about saving set up times by testing both common rail injectors and pumps at the same time? With this offer you will even get a discount for a limited period of time – get the CR testing started! www.bosch.co.za
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MAY 2016
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Lessons from America Jeánne Esterhuizen, President of the RMI, recently attended the NADA convention in the United States as a member of the MISA Women’s Forum. Here is her report of the event
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he theme of the 2016 NADA Convention was CONNECTED – meaning business must stay connected to customers as well as to business partners. The convention, which was held over four days in Las Vegas, Nevada, coincided with NADA’s 99th anniversary. The association’s story began in 1917 when 30 dealers traveled to the nation’s capital, Washington, to persuade Congress not to impose a luxury tax on cars. The delegation successfully argued that the automobile was a necessity, not a luxury. From that group effort, NADA was born. America’s franchised new-car and -truck dealers sold a record number of vehicles in 2015. Favourable economic factors point to a strong 2016 as well, thanks to low fuel prices and new products. Further, dealers are expecting a flood of secondhand vehicles to enter the
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market, with an estimated 800 000 leases scheduled to mature this year. Used vehicles have been in low supply in recent times, the drought having pushed up prices by more than 18%. The increase in used-vehicle inventory is expected to decrease used-unit prices by some three to four percent.
Looking at the vehicle market as a whole, some automakers and their dealers appear to be better positioned than others. However, Americans spent some $860-billion on new and used vehicles in 2015 – fuelling an industry revival that is literally driving main sectors of the economy.
STATE OF THE INDUSTRY – NADA DATA 2015 Total number of new vehicles sold
17 380 500
Total number of new car dealerships
16 545
Total amount of dealership sales
$862 722 000 000
Average sales per dealership
$52 143 971
Average selling price of new vehicles sold
$33 419
Average selling price of used vehicles sold
$19 397
Average new vehicles sold per dealership
1 050
Number of dealership employees
1 110 700
Average number of employees per dealership
67
Average weekly earnings of dealership employees
$1 087
Average annual payroll per dealership
$3,8-million
Average annual payroll of all dealerships
$62,8-billion
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four or more presentations. A mobile app could be downloaded that provided details of all the events, workshops and lay out of the Expo Centre. Activities were numerous as a collective while accommodating needs of individual dealer franchises, many of which had their national meetings over the period. Delegates were encouraged to not just attend the convention but to explore it! Meet NADA was an opportunity to discover innovative ways to network outside of the classroom by visiting areas such as the Social Connection Zone or the Lifestyle Centre as well as the Expo floor.
Jeánne Esterhuizen, President of the RMI The highest number of new vehicles sold in a single month was recorded in December last year – 1 632 172 units – while the total number of units sold in the year – 17 380 500 – represented a 5,74% increase compared with 2014’s figure. NADA estimates that the total number of vehicles in operation in the US is 258 026 929, of which 120 983 811 are cars and 137 043 118 are trucks. The average age of vehicles on the road is said to be 11,5 years. In terms of sales relating to service and parts, new vehicle dealerships accounted for $97,18-billion worth, an average of $5,87-million per dealership. The total number of technicians employed – including those at body shops – numbered 248 175. Interestingly, 39% of dealerships operate on-site body shops, according to NADA’s figures. Workshops held at the 2016 Convention and Expo were the products of NADA University Online. Certificates were available to delegates who attended
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On the awards front, the Time Magazine Dealer of the Year trophy went to Kitty van Bortel, who owns a Subaru, GM and Ford dealership that was initially established in 1991 out of her apartment. The award was sponsored by Ally Bank, whose research shows that consumers tend to interact better with dealerships that are seen to be making social contributions to the communities in which they operate to the betterment of society as a whole – one of the focal points of the competition. TOPICS COVERED AT THE CONVENTION A plethora of automotive and dealer themes were highlighted at the convention. In total there were 64 new discussion topics, 120 workshop sessions and 25 dealer and manufacturer franchise meetings held at the event, which ran over four days. Here’s a synopsis of some of the topics which caught the spotlight: Connecting with Car Buyers in a Mobile-First World: Smartphones are transforming the way people shop for cars. In the US, 27% of in-market shoppers report doing most of their vehicle research on mobile devices. The aim of the discussion was to illustrate how dealers could connect with car buyers. Future of the Auto Industry: A two-workshop series which explored possible consequences for the industry as more connected cars take to the road and the autonomous car becomes everyone’s
COVER STORY
reality. The series also looked at how the threat of cyber security in the auto industry could affect dealerships.
Future of Automotive Retail: Featuring experts from Google, the seminar focused on best ways to leverage the digital landscape in the face of changing consumer behaviour in the automotive retail arena. Hacking the Auto Industry: The topic explored digital security risks and ways in which threats could be reduced. Subjects covered included car hacking, industrial espionage, access to company trade secrets, databases and more. For dealers and auto industry executives, NADA focused on a range of business topics that included: How Best to Attract and Retain Top Employee Talent: The message was to create a sense of loyalty through the hiring process, company culture, development programmes and recognition of personal achievement. Beyond BDC – the Business Development Dealership: The discussion offered insights on how to create a complete culture of development within a business with a view to increasing market influence, sales and profits. Brand Up – Lifting Sales, Profits and the Customer Experience: Strategies dealers could use to elevate their brands across digital and traditional media platforms and enhance the customer experience. Create a Blueprint – Thrive in Today's Digital World: By combining dealership performance data, industry research and best practices, delegates were shown how to create a blueprint to align technology solutions and in-store processes to meet expectations and needs of today’s customers. Increasing Customer Loyalty: The premise was that customer loyalty starts with employees, and the best places to
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RMI UPDATE work have the highest customer-retention rates and are far more profitable than those of competitors. Credit Unions – the Auto Dealer's New Captive: The focus was on how credit unions have begun to play an increasingly significant role in F&I departments. An expert panel discussed a competitive riskbased pricing model of auto lending, profit potentials, comprehensive eligibility criteria and how customers could be best served through the new partnership channel. Dim ... Bright ... Brilliant: There’s more to LED lighting than meets the eye. The discussion focused on why comprehensive, properly designed, custom-engineered lighting projects yield far greater long-term energy cost savings, productivity gains and merchandising benefits for dealers. Don't Gamble – Stop Fraud: The central theme was how to protect a dealership’s assets from fraudulent activity through introduction of a range of effective controls. Five Technology Must-Haves: The discussion focused on five areas in which forward-thinking dealers have utilised technology to drive revenue in sales and service operations. Power of Group Operations: A review of the best practices and economic strategies employed by topperforming US automotive groups. Positive Disruption: Delegates learnt how to leverage industry disruptions for positive change and growth, also discovering how a greater focus on customer handling speeded up ownership and vehicle life cycles. Crisis Management in a Social Media World: The focus was on what to do if a dealership faced a public relations crisis. The session included real-life examples of PR nightmares and offered an eight-step guide to effectively manage a PR crisis.
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The Asking Formula: In a motivating, upbeat session, the spotlight fell on ways to stop sabotaging success through "bad asking" by using six powerful steps to positive accomplishment. Trends Driving the Used-Vehicle Market: An examination of five key emerging trends in the secondhand sales designed to enable dealers to adapt to – and prepare for – the next evolution of the wholesale marketplace. Tried-and-True – Best Practices: Delegates were party to best practices and creative ideas implemented by top-performing NADA dealerships across the US. Marketing was another strong focus at the Convention, with NADA covering digital and traditional topics in depth. Among the presentations were: So Dumb – 30 Social Media Mistakes Dealers Make: The emphasis was on the importance of having a social media plan that encompassed Facebook, Twitter, YouTube, lnstagram and review sites. Real-life examples were given of how to achieve digital ROI using social media. Advertising that Influences: An explanation of how specific brand messaging across Tiers 1, 2 and 3 positively swayed consumer preference for a dealership. The findings provided insight into building more effective ad creative and demonstrated opportunities to better leverage manufacturer co-op dollars. Building a Responsive Dealership: The presentation included a systematic plan for a mobile strategy across a
dealership, not just a website, and offered a better understanding of mobile shopping behaviour. Converting Dead Leads: Delegates learnt how to target Internet leads with mobile-responsive marketing messages, reactivating dormant prospects and selling more cars. Fix the Phone: An assessment of the real impact that phone calls coming into a dealership have on the bottom line. The presentation included insights gleaned from more than two million audited phone calls made to dealerships in the US. Web Presence Management Strategy: The key message, reinforced in other presentations, was straightforward – in order to get the best return on marketing dollars, today’s dealers needed an integrated web management strategy to win more customers online. Join the YouTube Revolution: The focus was on the specific steps needed to build an impactful video strategy, including preroll campaigns, website content, e-mail content and the use of video to respond to incoming leads. Killer Mobile Marketing Strategies: The discussion focused on how to build strategies for marketing to mobile consumers, including the creation of websites for Google's mobile algorithm; paid search budgets; and landing pages for mobile automotive consumers. Seven Google Secrets: The presentation included Google’s insider tips on how to improve organic and paid search rankings get the biggest bang for each marketing
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regulatory maze, NADA plays a significant role in ensuring that its members interests are protected. The focus and message of the convention came through strongly not only in all the topics discussed, but also in the diversity of exhibitors at the Expo – among them well-known equipment suppliers such as John Bean, Hunters, Car-O-Liner, Snap-On and Rhino Linings Corporation. There was a unified feel to all aspects of the event and a sense of NADA’s singleness of purpose in equipping its membership with tools to cope with change. Peter Welch, president of NADA, said the organisation represented 90% of all dealers in the US – which makes it an impressive voice by any standards, one which, from a membership perspective, informs, recognises, confronts and adapts.
buck; and why a mobile-friendly site was a must. On the recruitment, hiring and retention front, NADA ran a number of workshops, seminars and panel discussions involving experts whose subjects covered everything from attracting and retaining millennial employees – those tech-savvy , hyper connected individuals born between 1981 and 2000 who are changing more than just the way dealerships do business – to customer retention issues. Increasing employee performance; how best to create a company culture; the dangers of social media in hiring and firing and even tips to solve staffing problems were among the topics in the spotlight. The emphasis was on efficiency and cost effectiveness as well as on the importance of keeping employees motivated. On the Fixed Ops side, customer retention issues in all areas of a dealership’s operation – from the showroom to the parts department – were discussed in
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The digital world was covered, too, with topics such as Digital Secrets that Fill Service Lanes, while legal and regulatory subjects also fell in the spotlight, NADA’s expert presentations encompassing tax issues; changes in legislation; digital security and compliance.
In Welch’s words, the only difference in change 90 years ago and today is the speed at which it happens. He advised NADA’s members to embrace new challenges or face the consequences. The association itself recently transitioned, forming two business units with specific focus areas – one on government legislation, regulators and their relationship with the US Congress and the other on OEMs and defence of the franchise system. Leaner and meaner than it was, NADA’s transition echoes what other businesses in the US are doing.
The MISA delegation – of which I was part – attended the NADA Women Dealer’s Networking Event which was held in the spectacular Wynn Hotel. Presented by Ally Bank, the event created a networking platform for women from various automotive sectors, with the focus on social and charitable causes.
However, in my view, the US is not well positioned to meet the training demands new technology is bringing – not only where vehicles are concerned, but also in reaching and meeting the needs of consumers. This is reflected in the topics of the workshops and the tone of the speakers.
Overall, the content of the workshops I attended was excellent and the speakers of high quality. It was evident the manufacturer franchise dealer sector in the US operates in a highly regulated environment and, to navigate through the
The good news is that NADA On-line is doing a great job of bringing training to dealerships and it may be a need for NADA in South Africa to become a strategic partner to its American counterpart.
detail, topics encompassing best practices, strategies, inventory management, personnel management and process improvement.
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FRANCHISING
hybrid vehicles. This is possible through collaboration with our international partners. Members will be informed of developments in this regard. The knowledge I acquired in attending the conference confirmed to me the importance of South African NADA businesses connecting with international forums to develop best practice and continuous development of employees in the dealership environment.
A clear message prevailed out of the Recruiting, Hiring and Retention workshops, which was that profitability comes by meeting peoples’ needs. Listening to employees is key to meeting consumer demands, and the culture of the company becomes the brand.
and influences more than 80% of vehicle purchases. In conclusion, I believe NADA convention’s CONNECT principle should be common to the broader motor industry on a global level. It is a known fact that, not only are there skills shortages globally, but all countries face the same challenges because of the pace at which technology is changing.
In short, dealerships should offer careers, not jobs. The role of coaches and mentors was highlighted in the most profound way to ensure that proper skills transfer can take place. The link between Of concern from an employment and customer satisfaction/retention and skills development perspective is the skilled, motivated employees was made change coming across the motor industry Supa Quick claimspresentations. to have started country’s tyre brand repeatedly in the different becausethe of automation as well as an increase in vehicle prices due to expensive According to an address delivered by Cox technologies. Automotive, a staff turnover rate average of between 36% and 39% at a cost In many parts of the world the trend of $15 000 per employee, was carving is towards car sharing – the hiring of huge chunks out of the profitability of vehicles at affordable rates – with fewer dealerships. The norm should be a staff and fewer vehicles likely to be purchased turnover rate of 10%. by private owners. Further, intelligent vehicle systems designed to prevent On the topic of technicians, there are accidents are being introduced, so less tens of thousands in short-supply in parts will be sold. the US, according to Coker Automotive consultant, Brett Coker. The result is that The common view is that a decline in job parts and labour sales suffer. Retention numbers is on the cards, so upskilling and strategies he recommended included reskilling needs to be looked at to curb flexible work hours and schedules, and the prospect of unemployment in the better compensation plans. He also motor industry. Also, the cost of training said management techniques needed must decrease, so the focus should to change to include more respect, shift to on-line training solutions and appreciation and communication for collaboration with international partners employees. to source affordable material. Focus was given to women consumers as well, since the fairer sex buys more than half of the vehicles sold in the US
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Development of “greens skills” needs attention to position South Africa for an increase in sales of electric and
The level of knowledge imparted at the convention in specific fields of expertise contributes to the concept of lifelong learning in the world of work and equips employers to provide much needed workplace training. LAS VEGAS: FAST FACTS Las Vegas was founded when the railroad came through in 1905, and was incorporated in 1911. Yet everybody knows it was the mob that really got the place going as a gambling mecca started in 1946 when Ben “Bugsy” Siegel opened the Flamingo Hotel-Casino with lots of Mafia money.
franchising revolution
The joint was named Flamingo for his showgirl girlfriend’s long legs. Bugsy’s partners murdered him a year later for overspending and skimming off the top. But the stage was set for a city devoted to shows, sun and sin, and soon came Sahara and Stardust, Sinatra and the Rat Pack, Elvis’ Viva Las Vegas, Wayne Newton and Steve Wynn. In 1931, Vegas’ first legal casino license went to the Northern Club, owned by Mayme Stocker, a respected wife and mother of three. Today, Las Vegas is home to 17 of the nation’s 20 largest hotels. Each year, Caesar’s Palace uses two million-plus maraschino cherries, 11 000 ounces of caviar, two million ounces of tomato juice and 600 000 ounces of vodka. Las Vegas boasts some 200 000 slot machines, and revenue from gambling in Clark County totals nearly $9-billion annually. Nevada ranks No 1 among US states in gold production.
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Quality is synonymous with holding to a standard. The original equipment standard, for instance.
Repair shops not only need products in original equipment quality—but data, too.
The quality of a supplier is also measured by the quality of the information that he makes available to his partners.
FUTURE-ORIENTED INITIATIVE FOR REPAIR SHOPS AND TRADE
SMART PART(ner) www.mahle-aftermarket.com
Support can be expected from a true repair shop partner. Sales support. In the right place at the right time. Or how do you define availability?
To be well-positioned for the future, a repair shop requires a partner who knows what it will need tomorrow and the day after—because the partner’s range already includes it today.
Join MAHLE at our Automechanika Frankfurt booths during the 2016 show. We will be at the following locations: Hall 3 (A11 & A20) plus Hall 9 (A69) – MAHLE Service Solutions www.automobil.co.za
AUGUST 2016
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RMI UPDATE
Get set for a WOW experience! You don’t have to be a petrolhead to enjoy yourself at this year’s SA Festival of Motoring, which will be held from August 31 to September 4 at the newly-renovated Kyalami Grand Prix Circuit near Johannesburg. About 100 000 visitors are expected to attend
T
he clever guy who said that the only constant factor in life is change was not wrong – and if he didn’t get a Nobel Prize for this truth, he certainly deserved some recognition! Change has come to South Africa’s automotive scene following the introduction of an all-new concept of a motoring festival as a next-generation entertainment experience for a wheelsmad public. The event has replaced the 11-day, bi-annual Johannesburg
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International Motor Show, which was last held in 2013. The SA Festival of Motoring 2016 will open on August 31 and is aimed at delighting visitors for the following five days, until September 4. Over the period, 100 000 people are expected to attend. Endorsed by the National Association of Automobile Manufacturers of South Africa ( NAAMSA) and supported by the RMI, the Festival is essentially an open
air event featuring vehicle displays in a specially-constructed OEM Village, with a test and drive facility that enables members of the public to take production vehicles for test drives around the race track. But this is only the beginning! Read on to discover just how this unique event promises to be one of the greatest showcases on the country’s motoring and social calendars! • Super cars will very much part of the Festival, taking to the track from the newly-constructed pit area and driven by professional drivers who will strut their stuff; • Lifestyle, live entertainment, good eating and premium living will also be spotlighted, with excellent cuisine
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SA Festival of Motoring KYALAMI 31.08 - 04.09.2016
Site Map Brought to you by Public Parking OEM Village OEM Ride & Drive Shuttle Service
Exit Public Parking Shuttle Service Soft Roader Track 4X4 Track
Underpass Entrance Food Trucks Performance & Motorsport Allied Industry Exhibits The Galleria Public Parking Hospitality Skyboxes Shuttle Service Theatre
prepared by gourmet chefs, fashion shows, premium entertainers on stage and a special kiddies entertainment programme. A great family day out is what the Festival is all about. “Anyone who has heard of the Goodwood Festival of Speed in the UK will have an inkling of what the SA Festival of Motoring will offer the South African motoring public,” says Konstantin von Vieregge, CEO of Festival organisers SA Shows Messe Frankfurt. He adds: “However, we have taken the concept a whole lot further and developed it to provide a lifestyle and entertainment experience beyond par with anything this country has seen.” This year marks the 120th anniversary of the invention of the motor vehicle and the SA Festival of Motoring will pay homage to the machine that changed the world through a myriad of displays featuring contemporary vehicles. Latest models from across the price and feature range will be showcased by the
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Organisers of the SA Festival of Motoring intend to develop the Goodwood Festival of Speed model for their Kyalami extravaganza
country’s leading vehicle manufacturers and importers; exotic cars – the stuff of which dreams are made – will also be in abundant supply while a classic car exhibit will aim at reflecting motoring’s glory of yesteryear – and, hopefully, bring back happy memories for many visitors. Off-road enthusiasts will find nirvana at the 4x4 track where the best in off-road vehicles will be in action. Allied industry exhibits are sure to enthral petrolheads, with a wide range of leading, quality branded performance products on show and sale. A special kiddie’s entertainment area, featuring a number of innovative attractions, has been designed to delight the young ones – making the Festival of Motoring an ideal day out for the whole family. Be there to savour the sights, sounds and tastes of an event that’s not to be missed! • Super cars driven at full pace on the race track; • Test drives in some of the latest vehicles on sale in South Africa; • Premium quality cuisine served in the Food Court;
• Craft and other leading brands of beer served in the Beer Garden; • Live entertainment brought to you by the some of the foremost showbiz stars in the country; • Rides in off-road vehicles at the 4x4 track; • Products presented by leading brands from the country’s automotive aftermarket; • The best of the best in exotic and classic vehicles. Make unforgettable memories on a great day out! Relax and enjoy the entertainment at the most modern race track in sub-Saharan Africa. You not only owe it to yourself and your family – you deserve not to miss this premium event! Visit the Festival website at www.safestivalofmotoring.com for more details and information about how to book your ticket to this ground-breaking event. Alternatively, call the organisers’ office at 011-494-5003, or email us at enquiries@safestivalofmotoring.com
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INSIDE LINE
No such thing as foolproof! The trouble with new technology is that it tends to leave casualties in its wake, says David Furlonger, who examines the motor industry’s growing number of vehicle recalls for safety defects
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ever under-estimate the ingenuity of fools! For all the talk about how the recent first recorded fatality in a self-driving car could set back the whole idea of autonomous driving, it had to happen at some time. The fact that it occurred in May – and was reported only at the end of June – was purely coincidental. Ever since the idea of autonomous driving was presented as an imminent reality, proponents have argued that, by taking human emotions and reactions out of the driving equation, the roads will be safer. There’s just one flaw in that argument: autonomous cars are designed and programmed by humans. There is no such thing as foolproof. First reports following the accident suggested the autonomous car’s
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sensors failed to spot a truck in its way because the vehicle was the same colour as the sky behind it. Last year, an Argentinian device which allows cars to park themselves failed spectacularly because, although the designers had built in recognition of buildings, kerbs and other vehicles, they had forgotten people. The car didn’t see guests at the launch and ran them over. That’s the trouble with new technology: it leaves so many casualties in its wake. The history of the motor industry is littered with examples of how progress has run hand-in-hand with the law of unintended consequences. A few weeks ago, Japanese carmaker Toyota was forced to recall more than three-million cars because of faulty
airbags and emission-control units. The one could cause airbags to inflate unexpectedly and the other to cause fuel leaks. Aren’t airbags and emission controls supposed to make us safer, not put us at risk? There are probably times when we all hanker back to the days when we opened the bonnet of a car and knew what we were looking at. At a pinch, we could even fix the problem ourselves. Now, likely as not we are confronted with a blanket of grey steel and plastic, and warned not to touch. Problems are often diagnosed by computers thousands of kilometres away. Don’t imagine for a moment that I am hankering for a return to the days of simple automotive engineering. I think most of the technological breakthroughs of recent years have
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INSIDE LINE steal a march on each other, regularly updating models and introducing variants. Though they didn’t like to admit it, they conceded that deadlines put unfair pressures on engineers. But not to worry, they said, they had learned their lessons. The recall situation would improve. So has it? In 2014, when all this happened, global recalls reached a new record of 50,99-million. In 2015, that rose to 51,26-million. Just over halfway through 2016, a new record is forecast this year. In April alone, the National Highway Traffic Safety Administration (NHTSA) in the United States issued more than 90 recall notices which identified safety defects relating to airbags, brake pads, brake pedals, anti-lock brakes, brake fluid, motorcycle helmets, tyres, fuel tanks, seat brackets, ignition switches, seatbelts, steeringwheels, suspensions, axle mountings, windows and indicator lights. There is so much going wrong that one of the busiest sections on the NHTSA website is the one headed “Recalls since Yesterday.”
been a godsend. Many of the safety improvements have been extraordinary. But I do wonder if, in their haste to introduce new features, motor companies don’t sometimes err on the side of speed rather than safety. Some readers may recall how, a couple of years ago, the accelerating rate of safety-related vehicle recalls led to soulsearching in the global motor industry. In 2014 it was estimated that, around the world, two cars were recalled every second to fix potentially deadly faults. Various reasons were advanced. For
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example, with so many parts in modern vehicles – by one estimate, at least 30 000 – some problems were inevitable. Also blamed was the trend among manufacturers to build multiple models off the same engineering platform: cars, sports utilities, vans and bakkies share the same parts. Sometimes, different manufacturers use the same platform. So a fault that would once have affected thousands of vehicles now hits millions. Then there was the sheer pressure of competition, as companies sought to
While acknowledging that many recalls are pre-emptive, to prevent something going wrong, the sheer volume of activity suggests the industry hasn’t acted decisively on its promise to sort out safety and quality issues. Some marketers say recalls have become a “normal” part of car ownership, and consumers must get used to them. If they really believe that, we’re all in trouble.
David Furlonger is the industrial editor of Business Day and Financial Mail
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AWARDS
ESP inventor honoured Lifetime achievement award for Anton van Zanten
T
he man who invented ESP for motor vehicles has been honoured with the 2016 European Lifetime Inventor Award. Anton van Zanten, 75, developed the anti-skid system as the head of a 35-member research group at Bosch during a career that spanned more than 25 years. The system was first featured as standard equipment in the MercedesBenz S600 in 1995 and, since November 2014, has been mandatory in cars and light commercial vehicles sold in the European Union. In addition to the EU, the anti-skid system is also mandatory in Australia, Canada, Israel, New Zealand, Russia, South Korea, Japan, Turkey and the United States. Worldwide, 64% of all new vehicles are equipped with ESP, with Bosch having manufactured more than 150 million units to date. Paying tribute, Volkmar Denner, chairman of the Board of Robert Bosch GmbH, said Van Zanten’s contribution to road safety had been immense. “Anton and his engineering colleagues are the guardian angels of many drivers.”
“In Europe alone, ESP has saved more than 8 500 lives and prevented more than a quarter of a million traffic accidents. That makes anti-skid protection the most important vehicle safety system after the seat belt – more important even than the airbag.” Using smart sensors, ESP compares at a rate of 25 times per second whether a vehicle is actually moving in the direction in which the driver is steering. If measured values do not match, the anti-skid system intervenes, initially reducing engine torque. If that is not sufficient, the system brakes individual wheels, generating the counterforce needed to keep a vehicle safely on course. Bosch estimates that if all vehicles were equipped with ESP, up to 80% of all accidents caused by skids could be prevented. In developing the system, Denner said Van Zanten and his development team did more than just lay the foundation for greater road safety, since the system also formed the basis for today’s driver assistance programmes and automated driving. While ESP may be Van Zanten’s greatest success, it is not his only achievement. During his career as an automotive engineer, he was responsible for some 180 patent families. Along with ESP, his inventions include electronic rollover mitigation and trailer sway mitigation. Though he retired in 2003, he continues to lecture on vehicle systems at universities and act as a consultant
Former Bosch engineer Anton van Zanten, 75, has been honoured for inventing ESP for motor vehicles
to automotive companies. For his contributions to automotive safety, Anton van Zanten has already received numerous awards. However, the European Inventor Award, which pays tribute to his life’s work, is of particular significance. Presented since 2006, it is the European Patent Office’s way of honoring researchers, scientists, technicians and inventors whose inventions have been patented by the organisation, and who have made an outstanding contribution to scientific, technical or social progress. Winners of the European Inventor Award receive a trophy shaped like a sail as a symbol of discovery and human ingenuity. The trophy is crafted from new materials every year.
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MAY 2016 -
33
RMI ASSOCIATION
Putting quality first Members of the Motor Parts and Equipment Association (MPEA) represent all spheres of South Africa’s aftermarket parts and equipment sector. Erwin Stroebel, the association’s director, outlines some of the issues, challenges and aims of the RMI-affiliated body
T
he RMI’s Motor Parts and Equipment Association (MPEA) consists of some 500 parts and equipment wholesalers, retailers and independent parts traders who operate in South Africa’s automotive replacement parts industry. The association is member focused and driven. The MPEA National Committee consists of eight members – each of who is a chairperson of a regional committee. This ensures that the interests of members are represented on a national basis as well as on a regional basis. The concept is straightforward: the elected chairpersons represent members’ parts and equipment interests at all levels. They give up their time and apply their knowledge and experience
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for the betterment of the motor parts industry in South Africa. The elected members represent all spheres of the aftermarket parts and equipment sector. They meet, debate and strategise on issues within the motor industry that require special focus or special attention for the benefit of MPEA members. The last two committee meetings were held in February and in June where various issues – including the need for more tangible benefits – were raised and discussed. One of the association’s main focus points is to ensure the levelling of the legislative and trading playing fields and to develop strategies to ensure that members maintain a leading business edge. Further, members of the MPEA liaise with various motor industry
bodies in respect of quality standards for safety critical motor parts and equipment. Some members are also represented on various technical committees that establish or redefine quality standards.
Business Focus The MPEA spends a vast amount of time ensuring that its members are business compliant and, to this end, the association has recently dedicated a six-part MPEA Newsflash to business compliance regulations that affect the motor industry. Parts three and four of the guide are currently in the editing stage so, when the series has been completed, look out for what will be a very useful 'handbook.' The MPEA wants government to stimulate small businesses – not strangle
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Erwin Stroebel, Director of the MPEA
them with a myriad of rules, regulations and compliance requirements. In this respect, the MPEA will continue to fight hard for all of its members with the goal of streamlining business processes.
Industry Strategy The MPEA understands the challenges that face independent workshops, among them being access to vehicle information that is protected to the benefit of franchised, new car dealership workshops. Accordingly, the MPEA is an open and proud supporter of the Motor Industry Workshop Association’s Right to Repair (R2R) campaign. The association believes that access to information should be accessible to all
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Members currently in office to represent the MPEA are: Alistair Dyer
National Chairman and Eastern Cape Regional Chairman
Colin Murphy
Vice-Chairman and Northern Regional Chairman
Gerhard Braun
Highveld Regional Chairman
Giel Steyn
Free State Regional Chairman
Rajen Moodley
KZN Regional Chairman
Johann Van Der Merwe
Western Cape Regional Chairman
Wayne Staude
Border Regional Chairman
Kate Turro
Chairman MIMA, co-opted to the MPEA
and that customers should have the right to choose where they want their vehicles serviced, maintained or repaired.
inferior parts – or counterfeit parts as they are often described. This could not be further from the truth as far as members of the MPEA are concerned!
Counterfeit Parts
The use of the word counterfeit is an emotive issue in the independent aftermarket community. When considering the meaning of the word
As trading conditions become more difficult in South Africa, we see the aftermarket being accused of selling
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RMI ASSOCIATION – “to use or reproduce (another’s work) for profit without permission, usually in contravention of patent or copyright” – the inference is that parts sold in the aftermarket are not genuine. The truth is that MPEA members sell premium branded, quality parts which are bought from manufacturers that, without exception, are Original Equipment Suppliers (OES) to OEMs. Very often the only difference between the aftermarket part – called an alternative part – and the original part is the packaging in which the item is contained. Aftermarket parts bear the branding of the company which manufactured them – for example, LUK, Ferodo or Monroe – instead of the branding of the OEMs for which they were originally intended. Only the label is different! It is common knowledge that OEMs can’t manufacture all the components they require to assemble a vehicle but, instead, buy the items from the same OES that the aftermarket does. The misconception about alternative parts has led many consumers to believe that OEM parts are superior to premium branded equivalents bought in the aftermarket – which is not the case at all. Yes, there are unscrupulous people who
illegally copy parts which may prove to be of lesser quality than the originals – but the MPEA condemns that practice. The alternative parts our members sell
may be more affordable than equivalent parts sold by spares outlets at vehicle dealerships – but they meet the same quality standards as the originals.
Conclusion Members of the MPEA specialise in providing premium branded, quality parts that are covered under the Consumer Protection Act by an implied warranty of six months. However, some parts are covered by manufacturer warranties of 12 months or more, and the association advises consumers to buy from MPEA or RMI accredited outlets
since they will honour those guarantees. Remember, the RMI has represented the retail motor trade in South Africa for over 100 years and, through its quality and standards function, works to eliminate the marketing of substandard parts. If you buy from a member of the MPEA, you can rest assured that you’ll be getting the best!
30 Years of experience Specialising in automatic transmissions with expertise on the premium brands
083 449 0747 011 609 4484 / 2752 mike@executivetransmissions.co.za www.executivetransmissions.co.za
36 - AUGUST 2016
Address - Unit 1, 9 Fountain Rd, Eastleigh,www.automobil.co.za Edenvale, Gauteng
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Durban
George
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Cape Town
East London
Johannesburg
Port Elizabeth
Tel: (051) 506-0700 Fax: (051) 447-8336
Tel: (031) 533-5300 Fax: (031) 569-6576
Tel: (021) 590-7500 Tel: (043) 703-8000 Fax: www.automobil.co.za (021) 591-5033 Fax: (043) 743-8418
Tel: (044) 874-4175 Fax: (044) 874-3706 Tel: (011) 879-6000 Fax: (011) 454-0200
Tel: (013) 752-4821 Fax: (013) 752-4869 Tel: (041) 390-3000 Fax: (041) 373-0090
Pretoria
Tel: (012) 377-7500 Fax: (012) 377-3896
AUGUST 2016 -
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RMI UPDATE
MIWA’S stars shine A
nother great MIWA Highveld Region meeting was held at the RMI offices in Randburg in June, with 40 plus members in attendance. It was especially refreshing to see such diversity of representation among representatives and a number of new faces. Information provided by MIWA’s Highveld Region chairman, B R Naidoo and the association’s National Director, Vishal Premlall, again proved to be invaluable to delegates. Topics discussed included accreditation and grading criteria, workshop audits, warranties, the government’s RT46 contract and the much anticipated Right to Repair campaign. Other items
on the agenda included workshop issues, MIOSA solutions and, from an RMI perspective, the Organisation’s streamlined model, transformation and B-BBEE codes. Delegates were also treated to a brief update with regard to motor industry wage negotiations. Product specific presentations were
conducted by Henk Pretorius of Mahle and a Snap On team comprising Darius Louw and Gary Oftebro. Members representing the following workshops won lucky draw prizes courtesy of Snap On and Mahle: Charmaine from Paul’s Workshop and Nicky from Euro Supertech.
Members who received graded status certificates for their workshops included: • Ashley Pillay – Performer 2000 – 4 Star • Deon Labuschagne – Dynamic Propshaft – 4 Star • Etienne Louw – Diesellec Klerksdorp – 4 Star • Gideon Brits – Hillfox Autotronic – 4 Star • Peter James Hardy – Performax Tuning – 4 Star • Natasha Bohmer – Car Service City, Ormonde – 4 Star
Ashley Pillay – Performer 2000 – 4 Star
Deon Labuschagne – Dynamic Propshaft – 4 Star
Etienne Louw – Diesellec Klerksdorp – 4 Star
Gideon Brits – Hillfox Autotronic – 4 Star
Peter James Hardy – Performax Tuning – 4 Star
Natasha Bohmer – Car Service City, Ormonde – 4 Star
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RMI MIWA Members
RMI MIWA Members
Engine guru enlightens ERA members
M
embers of the Engine Remanufacturers’ Association (ERA) recently had an opportunity to listen to well-known consulting engineer and engine failure analyst Prof At von Wielligh at meetings held in Pretoria and Durban. Prof At, as he is affectionately known, gave presentations regarding unusual engine failures he had encountered. He also showed how the results of his analysis could help automotive engineers to prevent future engine disasters. In one example, Prof At showed how aluminium alloy water pump casings had been corroded by coolant, the chemicals in the fluid eating through the metal. The problem? Additives in prepared coolants are known to attack aluminium and an inhibitor is usually added to neutralise the effect. In this case, it appears that the manufacturer of the coolant could have neglected to include an inhibitor in the mix. Another problem Prof At highlighted relates to additives used in diesel, which result in deposits on the control valves of high pressure common rail
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Prof At von Wielligh (fourth from right) with members of ERA following one of his presentations
injectors, adversely affecting spray patterns and injection quantities.
the piston material was poor, resulting in severe engine damage.
Subsequent over-fuelling and incomplete combustion causes additional deposits to build up on the stems of exhaust valves, which become sticky in their guides and fail to close properly. In this instance the valves got hit by the pistons – which is usually an indication of an over-revving – which was not the case.
The meetings also provided ample opportunity for members to interact with the professor on an informal basis, as well as allowing time for fellow members to discuss common challenges experienced in their businesses.
Further, Prof At gave examples of several incidents of piston failure he had investigated, where the bonding between the insert for the top ring and
Events such as these are key contributors to the core value of the RMI’s Belonging is Better Business philosophy, where participation provides learning, leading ultimately to better profitability as well.
AUGUST 2016
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RMI UPDATE
New appointment at SAPRA
V
iv Corinaldi has been appointed as the Acting Director for the South African Petroleum Retailers’ Association (SAPRA) with effect from July 1. He takes over from Bakang Moeketsi. According to Jan Schoeman, COO of the RMI: “Viv has decades of experience in the liquid fuels industry which we believe will aid him in continuing to foster sound relations with other stakeholders in industry,
whilst delivering on the key strategic objectives of the Association.” Corinaldi will be based at the RMI’s offices at Unit 10, Surrey Square Office Park, Randburg. He can be contacted at 082 554 3501 or via e-mail at viv.corinaldi@sapra.co.za. Members are encouraged to contact Viv, not only to make acquaintance but also to air their views as regards the key issues confronting the industry.
Increase in traffic to RMI website
T
he RMI website, www.rmi. org.za, remains a valuable tool for members of the RMI. The website hosts important information on topics such as training interventions, associations, membership services and benefits, labour and industrial relations services and pertinent news. During the month of June the website had 7 034 unique visitors across 9 744 sessions that included 23 728 page views, an increase of about 10% over the figures for the previous month. Apart from supplying members with valuable information, the website is also a port of call for consumers looking for reputable service providers, accredited by the RMI, in their areas.
RMI Website Data http://www.rmi.org… Go to this report All Web Site Data
This is reflected by the fact that 39%, or 9 250 page views, during the month were to the Find Accredited Members page. This shows just how the public values RMI accredited businesses and that consumers are actively searching for these outlets.
Jun 1, 2016 Jul 1, 2016
Acquisition Overview All Users 100.00% Sessions
Primary Dimension:
Conversion:
Top Channels
All Goals
Edit Channel Grouping
Top Channels
Sessions
Organic Search Direct
Conversions
Sessions
Goal Conversion Rate
1,000
100.00%
500
0.00%
Referral
The second most visited page – with 19% of the page views – is the Home Page, where visitors can see five news stories which are updated on a daily basis. Seven percent, representing 1 660 page views, were from people who were looking to contact the RMI. Interesting to note is that the majority of visitors use the Google Chrome web browser, followed by Internet Explorer, Firefox and Safari. Reuben van Niekerk
32.3%
54.5%
Social
…
Jun 8
Acquisition Sessions
9,744
Jun 15
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62.35%
New Users
Bounce Rate
6,075
Pages / Session
51.97%
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Organic Search
5,315
45.23%
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Direct
3,146
58.77%
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777
60.36%
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360
63.06%
5
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146
78.77%
Jun 22
Avg. Session Duration
2.44
00:02:42
Set up a goal. To see outcome metrics, define one or more goals. GET STARTED
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Jun 15
Conversions
Behavior % New Sessions
Jun 8
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Jun 29
RMI UPDATE
Wellness in the spotlight
T
he RMI’s Wellness and Social Day took place recently at the Organisation’s Randburg offices. The programme included a number of presentations to members of staff, including one by Experian South Africa regarding credit education with a view to achieving financial wellness. Representatives of the company also answered questions in individual, private sessions. Virgin Active offered a number of positive suggestions for living a healthy lifestyle, while medical aid queries were answered by a team from Moto Health Care. Prizes were given away to participants and the day ended on a social note with a braai.
Golf Day raised R12 000 for charity COOK-A-THON
Poverty
is not an accident. Like slavery and apartheid, it is man-made and can be removed by the actions of human beings. Invi ng all corporates and staff to par cipate in 67 minute - ini a ve for Mandela Day to make a difference in the lives of 4000 people. Meals on Wheels are hos ng a cook-a-thon to provide cooked meals for their chosen beneficiaries. This event will be hosted at Meals on Wheels Warehouse in City Deep on the 18th of July 2016. Space is filling up quickyl!
From more details on how you can par cipate contact Zandile 079 315 4761 or zandile@mealsonwheels.org.za Bookings close 15 June 2016 , amount for sponsorship to be nego ated with Meals on Wheels
Jeff Molefe, General Manager of the RMI’s Highveld Region and Erika Botha, Senior Manager at Meals On Wheels
F
ollowing the RMI Highveld Region’s successful Golf Day at the Kyalami Country Club – regarded as one of the annual highlights on the Organisation’s calendar – Meals on Wheels has benefitted to the tune of R12 000.
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The amount represents the proceeds raised at a charity auction held on the day and the handover of the cheque was recently made by Jeff Molefe, General Manager of the RMI’s Highveld Region, to a delighted Erika Botha, Senior Manager at Meals On Wheels. Erika, who had attended the Golf Day where she gave an informative address on the work done by Meals on Wheels, thanked the RMI and its members for their unstinting support.
She was also delighted to learn that the Organisation had again selected the charity as the beneficiary of one of its Mandela Day activities. A hamper of food and fresh fruit was collected by members of the RMI’s Randburg office for donation last month to the Meals On Wheels Mandela Day Cookathon, in which 4 000 meals were prepared for distribution to the hungry by teams doing 67 minutes of community service in Nelson Mandela’s memory.
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RMI UPDATE
Partinform rocks Bulawayo Peggy Lendrum attends Partinform’s cross-border trade show in Bulawayo, Zimbabwe
P
artinform presents 10 motor trade roadshows a year – nine in South Africa and one in a neighbouring country. This time, Zimbabwe was chosen for the cross-border event, and the City of Kings, Bulawayo, played host. In an opening address, Gideon de Klerk, the organisation’s chairman, explained the value and ethos of the association, which represents major distributors of highquality, branded spare parts. Among those exhibiting at Bulawayo were Bosch, Federal Mogul, Fram and Raylite Batteries. The message from each covered aspects such as the safety, durability and performance of the selection of items they had on display. “You know when you buy these brands you are getting the best there is,” De Klerk told me as we toured the hall. A copy knock-off of the part might initially be cheaper, he said, but in the end could cost a lot more to replace, what with time wasted, inconvenience and possible damage to the vehicle. Like Coke – you need the real thing. The event was held at White Rock and, before the end of the evening, the vibe was certainly rocking! There were drinks, a huge array of snacks and much entertainment. A quiz for the grand prize to drive a Legend racing car in South Africa later this year created much excitement, and the winner was a delighted Sifo Ncube, a salesman at Bulawayo’s T&T Auto Spares.
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Gideon de Klerk, chairman of Partinform, at the Bulawayo event
It was a real pleasure for representatives of the city’s motor trade to see such great merchandise on display and, importantly, to be assured of its integrity. From oil filters to shock absorbers, windscreen wipers to steering and suspension parts, the displays clutched (pun intended) the interest of visitors, and there was much lively interaction between them and exhibitors. One distributor was delighted to discover that, among other parts, brake pads would now be available in Bulawayo. Asked whether he felt the show was worth it, De Klerk was positive: “We have concluded some good business, and I am happy about it,” he said. Bulawayo is very grateful to Partinform, a really worthwhile association, for the effort its members made to help, advise and educate motor trade representatives regarding the value of using quality aftermarket products. The show took intense organisation and the association came a long way to stage it – and the end result for us in Matabeleland was a treat! Many thanks, Partinform – hamba kahle!
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AUGUST 2016
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TECH TALK
INNOVATION under the bonnet
Mahle, DuPont and BMW have jointly developed an intake system for the automaker’s B58 3,0-litre petrol-fuelled engines which has been designed to save space and boost performance
vicinity of the motor, thus minimising bulk and the effects of pressure drop, and helping to optimise the engine’s balance of performance and fuel efficiency. The innovative application was jointly developed by a team from Mahle, BMW and DuPont, who selected glass fibre reinforced grade Zytel Plus as the material to use. The choice arose from the product’s resistance to chemicals and temperatures of up to 230°C, combined with a very good weldability.
T
he BMW Group’s B58 3,0-litre straight-six petrol-fuelled engines feature an integrated indirect charge air cooler from Mahle. The system is made from DuPont Zytel Plus nylon which has particularly good resistance to heat and hot-air ageing. An aluminium heat exchanger, through which coolant flows, is inserted lengthwise into the housing on guides which have sealing strips made from the same polymer. The innovative structural design of the charge air cooler means it can be mounted in the immediate
44 AUGUST 2016
For the application, high weldability, using friction welding, is particularly important given the large size of the upper and lower parts of the housing which are moulded in one shot in an injection moulding tool with a 1+1 cavity. Martin Valecka, development project manager at Mahle, said the glass fibre content of the component was 35% by weight to ensure a good balance of rigidity and impact strength. “The combination of properties meant we were able to provide numerous thinwalled but nevertheless highly-effective supporting ribs which help to minimise
deformation of the intake system even at high charge air pressures and temperatures, and which help to ensure durability over the entire service life. “Thanks to the very good flow ability of Zytel Plus, we can achieve short injection moulding cycle times, despite sometimes narrow flow paths for these large volume components. Good flow ability also better supports cost-effective manufacture.” The material is produced using DuPont's proprietary Shield technology which combines innovative polymer backbone architecture with specific polymer modifications and additives. Thanks to its high heat resistance, Zytel Plus retains the majority of its mechanical properties even when subject to extreme heat for prolonged periods. “The result of the collaboration provides a good example of how OEMs and Tier 1 suppliers can benefit from our comprehensive product range and development abilities,” says DuPont’s Olena Novikova. “A component made from Zytel Plus – which in this application is exposed to hot oil, hot air, coolant and road salt – can achieve a service life twice to three times that of parts made from conventional nylons.” According to Novikova, the material can be used for applications on the hot side of the air intake as well as for cylinder head covers, resonators, exhaust systems and oil sumps. Integrating indirect charged air cooling by means of liquid coolants offers considerable
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advantages over the conventional approach of directly cooling charged air with air. It allows the cooling operation to be relocated to the immediate vicinity of the engine as opposed to the front end of the vehicle, resulting in:
• Space saving: The charged air is cooled close to the engine by coolant which is in turn cooled by air in a separate, compact, low-temperature circuit. Bulky charge air hoses used in direct charge air cooling are replaced by thin coolant lines. Also, there is no requirement for ducts between the charged air cooler and intake manifold. • Performance: Due to a smaller volume and short flow paths, the pressure
Xtrac’s Integrated Lightweight Electric Vehicle (ILEV) gearbox
drop within the intake system is up to 80% lower than that when conventional direct cooling is used. This translates into higher volumetric efficiency within the cylinder. In addition, cooler air remains available to the engine for longer time, for example under hard acceleration. Both factors have a positive impact on engine performance and responsiveness.
James Setter (right), head of the automotive and engineering business unit at Xtrac
Addressing a growing need
T
ransmission technology specialist Xtrac has developed a gearbox family to address a growing global market for single speed, lightweight and power dense electric vehicle (EV) drivetrains.
“Significant focus went into the integration of the gearbox with numerous proprietary traction motors, and in particular, reducing its mass by almost 20% compared with our previous generation unit.”
The system offers a range of installation possibilities for fast and powerful electric supercars with front-wheel drive, rear wheel drive or four-wheel drive configuration.
The new transmission system can be integrated with motors supplied by BorgWarner, GKN and YASA, all of which worked with Xtrac on the integration of their technologies.
“There is substantial innovation and intellectual property in the design of this new transmission,” says James Setter, head of Xtrac’s Automotive and Engineering business unit.
Though dual electric motors in the transmission system provide an inherent torque vectoring capabilities, for lower power applications a single electric motor can be specified, reducing the overall
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weight of the vehicle and requiring an even smaller space envelope. The highly configurable nature of the design also enables an open or a limited slip differential to be specified. In addition, the gearboxes – dubbed the P1227 family – offer a range of single gear ratios, as well as considerable motor-generator configuration. “The design ensures that the ground helical gear sets, necessary for road vehicle transmission systems, offer exceptional levels of NVH refinement for the most demanding silent driveline electric vehicle applications, as well as the durability required for this marketplace,” Setter maintains.
AUGUST 2016
45
TECH TALK
In the first of a two-part series, Jake Venter goes back in time to trace the history of the motor car, which this year celebrates its 120th anniversary
T
he beginnings of the world’s motor industry are very much the story of four men: • Nikolaus Otto, who built the first fourstroke engine. • Karl Benz, who built the first petrolengined three-wheeler. • Gottlieb Daimler, who built the first petrol-engined four-wheeler, as well as a truck, bus, motorcycle, locomotive, boat and airship. • Wilhelm Maybach, a brilliant engineer who assisted both Otto and Daimler. His most brilliant achievements belong to the post-1900 era. It is also the story of Daimler-Benz AG (now called Daimler AG), the company that produces Mercedes-Benz cars and trucks. It was formed in 1926 as a result of a merger between Daimler Motoren Gesellschaft, founded by Gottlieb Daimler, and Benz & Cie, founded by Karl Benz. Daimler and Benz built cars that first ran in 1886. Benz was conservative and rooted to the present. Once a design was completed he hated to make any changes, but his first car was a brilliant (for the time) little three-wheeler. Daimler was the forward-looking visionary, always experimenting and looking for new ideas and new markets, but his first car was an adaptation of a carriage fitted with one of his single-cylinder engines. Both
46 - AUGUST 2016
inventors had workshops in the Neckar River valley, situated about 100km apart, but the two never met. The first practical internal-combustion engine to be produced in numbers was designed by the Belgian-born Frenchman
Jean Joseph Étienne Lenoir (1822 – 1900). His engine was a double-acting two-stroke single that inhaled a mixture of coal gas and air. The unit was inefficient because the intake mixture was not compressed before ignition, but well over 400 examples were built.
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NIKOLAUS OTTO Most modern automotive engines operate on the fourstroke cycle. In most of Europe this is known as the Ottocycle, because it was brought to practical fruition by the German Nikolaus August Otto (1832 – 1891). However, it is called the Beau de Rochas-cycle in France for a reason that will become clear later. Otto, a travelling salesman, wanted to be an engine builder. In 1864 he met Eugen Langen, who was an engineer, and together they started a company – NA Otto & Cie – to manufacture improved versions of the Lenoir engine. At the beginning of 1872 the company’s name was changed to Gasmotoren-Fabrik Deutz and an experienced engineer by the name of Gottlieb Daimler was appointed as factory manager. He brought his friend Wilhelm Maybach into the fold as chief designer. The pair changed what was a handcraft operation into an organised manufacturing process. Otto felt that the Lenoir engine’s combustion process was too fast so he asked his team to build an equivalent unit that operated on four cycles instead of two. The engine was a success, in spite of the fact that the combustion rate wasn’t slowed. Otto took out well over 25 patents. Then Daimler and Maybach left the company. They wanted to experiment with high-speed engines that rotated at 800 revs or more, but Otto thought this was madness. His engine was very happy spinning at 250rpm.
KARL BENZ Karl Benz (1844 – 1929) is credited with building the first successful light-fuel engine for a car. The vehicle had one front wheel because Benz could not get two-wheel steering geometry right. Benz’s interest in engines started in 1861 when a Lenoir engine was installed at a machine tool works in Stuttgart. Since he was studying engineering at the time, he helped to manage it and, after that, there was no stopping him – he had to build an engine. In the years following his graduation Benz started a number of unsuccessful workshops, but in 1883 he founded Benz & Cie with two businessmen as partners. The company produced two-stroke gas engines, and Benz had enough free time to build his own four-stroke engine. It took him just over a year from that date to produce his first car. On a clear spring day in 1885 the car was at last ready and he drove it in circles on the workshop grounds, but it took many months before the vehicle was ready for an out-oftown trip. Two events occurred in 1888 that made a huge impact on people’s perceptions. The first was the Gold Medal Benz won at the Munich Exhibition and the second was a trip undertaken by his wife Bertha. She drove the car on a journey of just under 200km to attract publicity for her husband’s work. The fuel used was Ligroin, a light hydrocarbon, which was sold as a cleaning fluid. By the turn of the century Benz & Cie had become the largest producer of cars in the world, but in 1903 the other directors of the company lost patience with Karl’s conservative engineering.
In 1862, a patent filed by the French engineer Alphonse Beau de Rochas was discovered. It described the fourstroke process, but such an engine had never been built and the patent had lapsed after two years. Though the facts seemed to be in Otto’s favour, his four-stroke patent was revoked.
They appointed a French designer for the next models and Karl resigned from the daily management. He remained a director on the board until the merger with Mercedes in 1926. He then served on the board of the new company until his death in 1929.
Still, Gasmotoren-Fabrik Deutz sold 50 000 four-stroke engines in 17 years, becoming one the largest internal combustion engine manufacturing companies in the world. These days it trades under the name Deutz AG.
On July 12, 1925, the frail, 81-year-old Benz took part in a procession of old cars through the streets of Munich. I’ve often tried to imagine (unsuccessfully) how proud the builder of the first motorcar must have felt on that day.
www.automobil.co.za
AUGUST 2016
47
GOTTLIEB DAIMLER
WILLEM MAYBACH
Gottlieb Daimler (1834 –1900) started his working career as an apprentice to a gunsmith. He then studied engineering and found work at a locomotive factory, but he left because he felt steam engines were too big and cumbersome. He wanted to develop power units that were portable. He went to Paris to take a look at the Lenoir gas engines being produced there, but came away disappointed. They were crude and heavy, and he had something much smaller in mind. From Paris he went to England, which was the centre of heavy industry, and worked in a number of factories where he learned the latest precision machining techniques. After two years he returned to Germany and worked as manager or chief engineer for various companies until 1872, when he was offered the technical directorship of the Deutz engine works of Otto and Langen, situated near Cologne. Daimler initially thought his appointment would give him an opportunity to build the kind of engine he envisaged, but he discovered that both Otto and Langen were interested only in making profits by selling as many of their slow-speed gas engines as possible. Still, he modernised the factory and his changes resulted in a tripling of production volumes. He eventually resigned but managed to keep his shares in the company. In July 1882 he moved to Cannstatt in Stuttgart, bought a house and turned the garden shed into a workshop. His first task
48 - AUGUST 2016
was to get Willem Maybach to join him in developing a liquid-fuel engine for road vehicles as well as boats. Their first engine, a four-stroke, ran on a liquid fuel that we now call petrol after the word was coined by Langen, who was Otto’s partner. In 1883, Daimler and Maybach designed an engine that seemed suitable for a vehicle. They fitted it to what newspapers dubbed a motorcycle. Though ridden by Daimler’s son Paul, the vehicle was never developed. In 1886 Daimler ordered a horse-drawn carriage from a coachbuilder, modified it to take one of his engines, and made some successful journeys with it just a few months after Karl Benz first drove his three-wheeler. He and Maybach then motorised every possible vehicle they could get their hands on. They built vehicles to carry loads, to carry people, a small locomotive and even fitted one of their engines to an airship.
The company went from strength to strength but Daimler’s health deteriorated over the years. By the autumn of 1899 he was very weak. He died early in 1900. Daimler not only patented most of their inventions, but also exploited them to such an extent that he had a major influence in starting the motor industry in France, where Panhard and Peugeot used his engines, and the UK, where his patent office became the British Daimler company. Daimler also opened a branch in Austria, which built Austro-Daimler cars that differed from the models built in Stuttgart. No other pioneer had such a major influence on the slowly emerging motor industry.
Jake Venter has worked as a mechanic, as an engineer in an engine assembly plant and as a lecturer, but now prefers journalism.
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AUGUST 2016 -
49
LABOUR
GARDEN LEAVE
and restraint of trade A garden leave clause in the South African context usually refers to instances where employees tender their resignations and employers require them to stay at home for the whole, or part of, the notice period. Douw Breed, a director at Barnard Inc Attorneys, explains why the clause can legitimately be invoked
50 - AUGUST 2016
T
he term “garden leave� can easily lead to confusion. This relatively unfamiliar type of leave has been dealt with in South Africa by the Labour Court, which recently had to consider and decide whether garden leave was lawful and, in addition, what impact it could have on a separate restraint of trade undertaking contained in an employment contract.
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LABOUR
The term garden leave has originated from the British Civil Service, where employees have the right to request special leave under justified circumstances. Over time, the term has also become common to describe an employee who has been suspended from duty pending an investigation into his or her conduct. In the matter Vodacom (Pty) Ltd v Motsa & Another (2016) the applicant had been an employee of Vodacom, more specifically a senior executive manager, director and a member of the company’s executive committee. His contract of employment made provision for an extended notice period of six months with a concomitant restraint of trade undertaking for a further period of six months. During December 2015, Motsa decided to resign to take up employment with a competitor company, MTN. The employment with MTN was set to be effective from January 1 this year. When Vodacom heard of Motsa’s employment plans, the company approached the Labour Court on an urgent basis to enforce the extended notice period of six months and, in addition, the restraint of trade provision for a further period of six months. In opposing papers, Motsa alleged that Vodacom had waived the extended notice period and had paid him in lieu of notice, terminating his contract immediately. Vodacom denied the allegation and stated that, by failing to adhere to the notice period contained in the contract, Motsa was in breach of his employment contract.
Motsa acknowledged that he was bound by the six-month period with regards to the restraint of trade clause. A garden leave clause in the South African context usually refers to instances where employees tender their resignations and employers require them to stay at home for the whole, or part of, the notice period in the interests of smooth transition. The clause would usually be invoked to ensure that confidential information to which departing employees had become privy was protected and, moreover, to prevent employees from taking up employment with rival companies until the garden leave period had passed. With such a clause contained in an employment agreement, an employer ensures that an employee does not participate in the marketplace for a certain period of time after his or her resignation and, as a measure of safekeeping, ensures that confidential information stays confidential since the employee is, under those circumstances, considered to still be in the employment of the current employer. However, as a disadvantage, the employee is naturally entitled to remuneration for that period. In considering the matter, the Labour Court adopted an approach taken earlier by the New Zealand Employment Court, holding that the ultimate question to be posed was whether any period of restrained commercial activity – whether by way of a garden leave clause or the more conventional restraint clause, or both – was unreasonable with regard to the proprietary interest that the employer was seeking to protect.
The court found that Motsa had failed to show that Vodacom had waived its right to enforce the notice period and that he was bound by the garden leave clause which terminated only on June 30, 2016. Accordingly, Vodacom was well within its rights to elect to enforce the clause as contained in the employment contract. The Court then considered whether the restraint of trade clause was reasonable. It took into account the nature of Motsa’s position and the information to which he had been privy that, by its nature, was information that would be beneficial to the competition. The Court held that Motsa was privy to sensitive information relating to the strategic plans of Vodacom for the following three years and, as a result, found the restraint clause also to be reasonable as Vodacom had a proprietary interest that required protection. Accordingly, Motsa had to comply with the provisions contained in the garden leave clause and, importantly, he also had to comply with the restraint of trade clause. Effectively, he was restrained and interdicted from taking up employment with a competing employer for a period of 12 months.
Douw Breed (BCom (NWU) LLB (NWU)) is a director at Barnard Incorporated Attorneys www.automobil.co.za
AUGUST 2016 -
51
LEGAL EAGLE
Staff loans and the NCA Before you – as an employer – loan money to a staff member, read this. Changes to the National Credit Act, which come into effect in November, mean you may have to be registered as a credit provider. Andries Stander, a director at Barnard Incorporated Attorneys in Centurion, discusses the implications of the new legislation
S
ince its inception the National Credit Act 34 of 2005 (the NCA), has significantly stirred the waters of the credit industry in South Africa. The purpose of the NCA is to promote and advance the social and economic welfare of South Africans as well as to ensure a fair, transparent, comparative, sustainable, responsible, efficient, effective and accessible credit market and industry and to protect consumers. It seeks to do this by, amongst other things, ensuring consistent treatment
52 AUGUST 2016
of different credit products and credit providers, encouraging responsible borrowing, avoidance of over indebtedness, discouraging reckless credit granting by credit providers and contractual default by consumers. One of the ways in which the legislature, through the NCA, endeavors to exercise more control over the credit industry, is to require that certain credit providers be registered as such. Section 40 of the NCA requires that a credit provider must apply for
registration if the total principal debt owed to that credit provider exceeds the threshold prescribed in terms of Section 42 of the NCA. Initially, when the NCA came into force, it provided that a person or entity had to register as a credit provider if the credit provider – alone or together with any associated person – facilitated at least 100 credit agreements, or if the total principal debt of all its credit agreements exceeded the amount of R500 000. These credit agreements did not include incidental credit agreements.
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This was later amended to the effect that the number of credit agreements was no longer an issue, however the threshold requirement of R500 000 continued to apply. In terms of a notice published on May 11 this year, the threshold for credit provider registration has been reduced to NIL (R0). This new threshold takes effect on November 11 and will have the effect that credit providers can no longer hide behind the R500 000 threshold. Therefore, from November 11 the agreement will fall under the definition of “credit agreements” in terms of the NCA and the credit provider needs to be registered as such.
or its authorised agents to enter any premises from which the credit provider conducts its registered activities to conduct reasonable inquiries for compliance purposes; and • Comply with every applicable provision of the NCA, the Financial Intelligence Centre Act 38 of 2001, and other applicable provincial legislation. Once a credit provider complies with the standard conditions, the National Credit Regulator, having regard to prescribed criteria, may require the credit provider to comply with further specific conditions.
The term “credit agreement” is defined in Section 8 of the NCA. If a loan is repayable with interest or an amount greater than the capital loan amount the agreement will usually fall within the scope of the NCA.
Upon receipt of a notice outlining the required specific conditions, the credit provider may object to such notice and refer the matter to the National Credit Tribunal within a specific time period – generally 15 days.
For example, if an employer loans an amount to an employee, and the amount must be paid back with interest, the employer will have to register as a credit provider. There are, however, certain agreements that are excluded from the definition of credit agreements.
Section 89 of the NCA states that a credit agreement is unlawful if the credit provider is not duly e-registered in terms of the NCA. The consequence of non-registration is quite far reaching.
For example, incidental credit agreements – which are agreements whereby interest is levied on late payment for goods or services – and agreements between family members (there are further qualifications to this exception.) The standard conditions of registration are found in Section 50 of the NCA. The credit provider must: • Permit the National Credit Regulator
In this regard, Section 89 (5) of the NCA states that where a credit agreement is unlawful, a court must make a just and equitable order which may include that the credit agreement is void as from the date the agreement was entered into. Furthermore, should an unregistered credit provider conduct activities for which it should be registered, the National Credit Regulator may notify such credit provider to stop such activities. Should the credit provider fail to comply therewith, the credit provider will be guilty of an offence.
The above might create the wrong impression that, if the credit provider has failed to register as such, the consumer does not have to repay the debt. That is, however, not the case. In the case of the National Credit Regulator vs Boonzaaier, the Constitutional Court confirmed a judgment of the Western Cape High Court. In this case the credit provider was not registered as such and the consumer relied on Section 89(5) (c) of the NCA, which states, inter alia, that in the event of an unlawful agreement the credit provider may not recover any monies from the consumer. The court found that the credit provider has the right to recover the capital loan amount on the grounds of unjustified enrichment but will not be able to recover any interest or other charges in terms of the agreement. Where credit providers are uncertain as to the steps to take to comply with the new threshold and the registration requirements and processes, it is suggested that they consult with their legal representatives to assist them.
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.
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AUGUST 2016
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Genuine Parts AUGUST 2016
55
BUSINESS MANAGEMENT
Survive?
No thanks, rather thrive! Want your business to succeed? There is a wealth of knowledge to be gained by reading, says Fergus Ferguson, a leading business coach and a franchisee of ActionCOACH
L
ook around. The world is built on the ideas of visionary and skilled entrepreneurs. From the television to the computer, the aeroplane to the mobile phone – these are the fruits of people who dared to dream, and they changed the world. South Africa fares averagely when it comes to entrepreneurs running their businesses with sustainable success. However, with the current unemployment challenges, many people have had to become entrepreneurial and have been forced to start their own businesses to make ends meet. Though some businesses manage to break even, making just enough to put food on the table – surviving does not necessarily mean thriving. A very small
percentage goes from start-up phase to being successful mid-sized companies, employing many people. Why do so many businesses fail? A lack of business management skills is the short answer. Many would-beentrepreneurs have really great ideas, but not many consider their training and skills, or lack thereof. Arguably, most small business owners are technicians – meaning they are highly-skilled in their particular crafts, but might lack knowledge in one or more of the following areas: financials, systems and processes, delegation, marketing, lead generation and sales. For some it may be the other way around, having all the skills to run the business, but lacking technical skills and
innovation to make the enterprise a success. I always say to these people that there is a wealth of knowledge to be gained by reading. Read books that focus on your business, industry and outside of your business scope. Read books that will give you new methods and tips to improve your business, and possibly open your mind to bigger ideas. It all starts with a great and unique idea. Throw in some long-term vision, exceptional people skills, determination and the foresight to know when upskilling yourself is needed, and you’re on your way. And, of course, you’ll have to put in many hours of hard work, too.
Fergus Ferguson is a franchisee of the global business coaching company – ActionCOACH. He is an accredited business coach who assists business owners to significantly grow their profits and develop their entrepreneurial skills. To find out more about business coaching or to receive a complimentary consult and a business health check, call 083 256 3175 or visit actioncoach.com/fergusferguson
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toyota.co.za/genuine MAY 2016 - 57
RMI UPDATE Answers by experts to questions recently received by the RMI Q: What is the merSETA?
FAQs
The learner needs to be obedient and attend to all training requirements in pursuit of structured and theoretical learning.
addition, he or she must have satisfied the requirements of the structured workplace learning programme for a minimum period of 12 months. Q: Can you please explain assessment application requirements for contract learners?
It facilitates skills development for the following sub sectors – metal and engineering; automotive manufacturing; motor retail and components manufacturing; tyre manufacturing and plastics and industrial rubber industries.
Skills development providers offer knowledge and structured skills components and provide learner support as required, while the SETA registers agreements as per Section 18 (1-6) of the Skills Development Act and monitors training and assessments as well as facilitating contract registrations and terminations.
Q: Could you please explain the roles of the various parties that make up the Learning Programmes Agreement?
Q: Could you please explain assessment requirements for a Learning Programme agreement?
A: The employer provides an opportunity for on the job training, consistently applies the Basic Conditions of Employment Act and funds training arrangements.
A: The learner needs to have achieved minimum educational criteria and have completed all unit standards or modules of the artisan learning programme. In
A: Learners need to apply to a relevant SETA for assessment (trade tests or final summative assessments) and they will have to submit all relevant information and application forms. In line with section 26D of the Act, the SETA needs to submit the application to a relevant assessment centre, trade test centre or QCTO accredited AQPs and then follow section 7(2) and (3) of the regulation. Internal summative assessment competence will be the determining factor.
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A: Manufacturing, Engineering and Related Services Sector Education and Training Authority (MerSETA) is one of the 21 SETAs established through the Skills Development Act, No 97 of 1998.
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www.caelex.co.za 59 AUGUST 2016
RMI UPDATE
Geared for action Having a step-by-step action plan at the ready will help you to effectively manage HIV/AIDS in the workplace
W
hile companies may recognise that HIV/ AIDS has an impact on the workforce in terms of levels of productivity, absenteeism, lowered morale and increased costs, they are often less clear on how to respond and manage these risks. This article looks at the need for a welldesigned step-by-step action plan. An action plan is important for the successful implementation of an HIV/AIDS programme. It’s a tool through which a company’s vision and commitment is communicated, encouraging transparency and a sense of ownership. It encourages a more focused approach, and outlines responsibilities and accountability. A step-by-step plan enables ongoing monitoring, allowing for timely adjustments and changes, so that problem areas can be isolated and managed without jeopardising the entire programme. What would an action plan typically include? • Background and motivation for the plan – why put a plan together? • Overall vision of the company’s HIV/AIDS management programme – what is it trying to achieve? • Specific primary and secondary objectives of the programme; • Activities related to each objective
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– break down objectives into bitesize blocks; Indicate who is responsible for each activity – make each person involved accountable; Indicate budget allocation – how much money is assigned and who can spend it? Indicate how the success of each activity will be measured – what are the deliverables? Is it the number of people trained, or possibly a reduction in absenteeism? An expected timeframe for each activity – i.e. when does the activity need to be completed by?
The plan in action Once you know what activities are needed to implement the plan, key players responsible for these can be identified and briefed. The overall budget for the programme can be divided into more manageable chunks, and progress can be tracked according to agreed timelines. Deviation from expected outcomes can be identified timeously and managed accordingly. Participants can be held responsible for well-defined portions of the plan, and can easily measure their own progress. Routine reports on the progress of the programme can be structured around the deliverables and associated timeframes and budget.
Contact Redpeg for accredited HIV/AIDS workplace training, consulting and research. tim@redpeg.co.za | 0861 REDPEG or (011) 794 5173 | www.redpeg.co.za)
www.automobil.co.za
O&M CAPE TOWN 90221/E
Visit vw.co.za and find us on facebook.com/VWSA Rear Wheel Bearing Housing 1K0-505-435-AB – Left R 3 319.72 1K0-505-436-AB – Right R 3 306.69 Wheel Housing Liner 5K0-810-971-C – Left Rear 5K0-810-972-D – Right Rear R 577.90
Turn Signal Light 5K0-949-101 – Left 5K0-949-102 – Right R 393.10 Rear Brake Pads - Set 1K0-698-451-G R 853.15
Mirror Housing 5K0-857-507-AD-9B9 – Left R 1 397.83 5K0-857-508-AD-9B9 – Right R 1 048.37
Cover for Lock Carrier 1K6-863-459-R -82V R 902.10
Lock Carrier 5K0-805-588-E R 4 522.50
Mirror Cap 5K0-857-537- -GRU 5K0-857-538- -GRU R 605.59 ABS Sensor Wiring Harness 1K0-927-903-B – Left Front R 497.44
Tail Light 5K0-945-095-M – Left Outer 5K0-945-096-M – Right Outer R 913.60
Window Regulator 5K4-839-461 – Left 5K4-839-462 – Right R 2 069.45
Mirror Glass 5K0-857-521-B – Left R 684.69 5K0-857-522-D – Right R 789.03
Shock Absorber 1T0-413-031-EQ – Front R 1 474.76
Nobody knows Volkswagen like Volkswagen. Golf 6 drivers expect the kind of smooth and powerful ride that can only be achieved when every part works flawlessly with every other part in their car. Volkswagen Genuine Parts are each created alongside vehicle development according to stringent quality standards for optimum performance and impeccable safety. This means that all Golf 6 parts are made in parallel to the manufacture of your Customer’s Golf 6 to enable shorter repair times and prevent premature wear and tear. Offer Volkswagen Genuine Parts when your Customer’s Golf 6 needs replacements.
Volkswagen Genuine Parts. Keep your Volkswagen a Volkswagen.
www.automobil.co.za
*Prices are recommended retail exclusive of VAT, subject to change without notification and not binding to any party. The Parts on offer pertain to the Golf 6 GTI (2009–2013). AUGUST 2016 Part applicability to model is dependent on chassis/VIN number. For further information, please consult your nearest participating Dealership. Prices valid from 13 June–9 September 2016. While stocks last.
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MEMBERUPDATE
The RMI welcomes these new businesses into membership Member Trading Name
City / Town
A
Member Trading Name
City / Town
G
Member Trading Name
City / Town
Phix It Mechanical Repairs
Nelspruit
Angels & Sons Auto Service & Repair Centre
Randburg
Geneve Auto & Field Services
Nylstroom
Premium Brake & Clutch
Blackheath
Auto Armor Hermanus
Hermanus
GMS Fitment Centre
Taung
President Panelbeaters
Bethal
Auto G2
Rustenburg
H
Auto Magic Silverton
Pretoria
Hartswater Service Centre
Hartswater
Satec Ga-Rankuwa
Huson Speed Shop
Nelspruit
Sesifikile Autobody Parts & Upholstery
Siyabuswa
Shell Leeu Gamka Service Station
Leeu Gamka
C
S
Cape Town Auto Glass
Elsies River
J
Capitalbiz Tyres
Steelpoort
JR Field Services
Jozini
South Bay Tyres
Port Elizabeth
Car Service City Wynberg
Cape Town
JJJ Panel Beaters
Pretoria
Spro Maintenance
Pretoria
Ceremick Speed Shop & Body Works
Pretoria
JSA Gearbox & Diff Specialists
Bellville
Supa Quick Barberton
Barberton
Chrome Auto Services
Vanderbijlpark
M
Supa Quick Sabie
Sabie
CK Coachworks Express CBD
Cape Town
MRS On Demand
Nelspruit
T
D
Macpro Panel Beaters
Pretoria
Tavcor Auto Sales
Port Elizabeth
D & P Auto Body Works
Cape Town
Magwence Trading Spares
Melelane
Thlabane Auto Body Repairs
Rustenburg
Daly Exclusive Selection
Klerksdorp
Max 4 Cars Mthatha
Mthatha
Tweek Performance
Randburg
Daly Selection
Klerksdorp
MH Motors
Rustenburg
V
Daly Wholesale
Klerksdorp
Morris Auto Works
Pretoria
Vimla Engines Gearbox Diff & Suspension
Pretoria
Dunlop Express
Soweto
N
Vredenburg Ford
Vredenburg
E
Norton’s Auto Services
Cape Town
Edan Vehicle & Asset Hire
Muldersdrif
P
Epic Auto
Kempton Park
Patel’s Tyre House
Durban
Eurasia Motors
Edenvale
Philippi Auto Electrical Services
Strand
W WE Care Auto Repairs
Westmead
ADVERTISERS AUTOMOBIL - AUGUST 2016 EDITION CLIENT
CONTACT WEBSITE
Aer O Cure
011 444 6454
www.aerocure.co.za
PAGE
Africa Automotive Aftermarket Solutions
011 879 6000
www.aaas.co.za
37 & 49
Audi Parts
0860 434 838
www.audi.co.za
54 & 55
Autocosmos Biz (Electrolog)
012 327 6210
www.autocosmos.co.za
32
Caelex Chris Auto Electrical
012 327 5404
www.caelex.co.za
59
Ctrack
012 450 2222
www.ctrack.co./za
58
Gedore Tools
031 705 3587
www.gedore.co.za
Executive Transmissions
011 609 4484
www.executivetransmissions.co.za
Kigima Auto Electrical Training Centre
012 327 2586
www.kigima.co.za
59
MiWay
011 990 0337
www.miway.co.za
IBC
Mahle Aftermarket
+4911 501-13204
www.mahle.com
Moto Health Care
0861 000 300
www.motohealthcare.co.za
Robert bosch
011 651 9600
www.bosch.co.za
Safeline Brakes
011 549 7300
www.safelinebrakes.co.za
17
Silver falcon Trading
083 628 2288
www.hurricaneauto.co.za
62 & 63
Toyota South Africa Motors (Pty) Ltd
011 809 9111
www.toyota.co.za
Snap On Africa
0861 762766
www.snapon.co.za
Volkswagen Parts
0860 434 737
www.vw.co.za
OBC
7 36
27 10 & 11 21, 33 & 43
57 IFC & 65 61
BENEFITS OF BELONGING With a membership of 7 500, the RMI provides a very effective collective voice that gives members considerable clout in negotiating better trading conditions. As the lead voice in the motor industry, the RMI is a member-driven organisation that constantly seeks solutions to concerns raised by members in the day-to-day running of their businesses.
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- AUGUST 2016
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www.automobil.co.za
AUGUST 2016
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TALKING POINT
Y
ou forgot the beer. Or you think you might have, as you’re cruising home to a host a party for the Rio Olympics. So you press a button on your car’s dashboard and up pops a live picture of your smart fridge with two 12 packs of craft ale on the bottom shelf. Crisis averted! A moment later, there’s a buzz at your doorbell. Your first two guests have arrived. You see them on the monitor and watch them push the doorbell again in frustration. “I’m running a few minutes behind but come on in and get comfortable on the couch,” you tell them over the speaker, as you press another button on the screen. Voila! Your front door opens before them. “Beers in the fridge,” you add. That’s the potential that Volkswagen and electronics giant LG hope to realise through a new partnership to build the connected car platform of the future. Under development as Volkswagen’s Cross-Over-Platform, the solution will aim to harness the latest in cloud technology to offer seamless digital access to smart devices in the home, from fridges to lights to security systems and domestic appliances. The platform will also include nextgeneration infotainment and a notification centre that delivers messages about road conditions, weather and nearby points of interest to the driver in real time. Volkswagen hinted at the possibility of incorporating the platform in its BUDD-e concept electric vehicle which was shown this year at the Consumer Electronics Show in Las Vegas, where the company’s chairman, Herbert Diess
66 AUGUST 2016
Towards tomorrow Forget about syncing with smartphones – Volkswagen wants total alignment between its cars and the Internet of Things. TUAutomotive’s Andrew Tolve reports called the inside of the car “the cockpit of the future.” Spokesmen for Volkswagen and LG say the solution is expected to be incorporated in 2018 model year vehicles. In other recent developments in Europe, Daimler forked out €1,1-billion (about R17,41-billion) for car sharing company Athlon Car Lease International. Athlon specialises in fleet leasing solutions and, with its expertise, Daimler believes that it can catch the leading edge of the corporate carsharing wave. Moving forward, Daimler Fleet Management and Athlon will operate under the Athlon brand. BMW’s car-sharing initiative DriveNow turned five years old and in celebration expanded to Brussels, its tenth European city. Belgium’s capital will soon receive an influx of BMWs and Minis, about 20% of which will be zero-emission electric vehicles. DriveNow is a joint effort between BMW and Sixt SE. There are 600 000 active customers in Europe; average drives last 20 to 40 minutes.
Opel’s car-sharing platform CarUnity, meanwhile, turned one and, in celebration, announced plans to expand in Berlin and the North-Rhine region of Germany. Unlike DriveNow, CarUnity is a purely mobile platform that connects car owners to drivers in need of cars. People can rent their own cars or rent from others, irrespective of whether the car is an Opel or a different brand. Current use sits at 4 000 vehicles in Germany. Finally, the self-driving car revolution began with the military back in the early 2000s. Now, it’s returned. The US Army has deployed selfdriving truck platoons in Michigan. The trials are underway on Interstate 69 amidst regular commuter traffic. We’ve seen lots of this sort of platooning from commercial fleet makers like Daimler and startup Otto in recent months but the goal for the army is to create vehicles that can carry goods and materials into hostile territory without putting soldiers at risk. The Army’s Tank Automotive Research, Development, and Engineering Center (TARDEC) plans to extend the trials in the coming month to include army tanks and Jeeps fitted with Car-2-X communication.
www.automobil.co.za
www.automobil.co.za
AUGUST 2016
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Be prepared for the most challenging automotive tasks. Aer-o-cure’s Starter Packs are the easiest way to equip yourself with the essential tool combinations required for high-end auto-refinishing jobs.
EXCLUSIVELY DISTRIBUTED BY
Starter Pack PRO (AOC080335) INCLUDES: Carmig (032132), Gyspot 39.05 (018075), Trolley (018259), Short Hammer (049802), Spotter Box Pro (050075) and a 10T Porta Power Kit (052338).
Starter Pack BASIC (AOC080334) INCLUDES: Smartmig 162 (033160), Gyspot 2702 (900172), Trolley (018259), Short Hammer (049802), Spotter Box 2700 (053922), and a 10T Porta Power Kit (052338)
R38,000.00
R26,500.00
SAVE R13,750.00
SAVE R8,925.00
AOC Sales Pack 1
AOC Sales Pack 2
R12,000.00
R16,500.00
GYSPOT 2702 Complete with Trolley, Short Hammer and Spotter Box 2700
SAVE R3,450.00
GYSPOT 3502 Complete with Trolley, Short Hammer and Spotter Box PRO
SAVE R5,050.00
SMARTMIG (033160) 162 - 160A, Gas/No Gas, Ø0.6/0.8, EURO torch and fixed earth clamp CARMIG (032132) 15 to 205A, Fitted with Ø0.8/1.0, 3m Euro torch, Manual, 400V
GYSPOT 2702 (900172) Manual gun, 230V (1ph)
SPOTTER BOX 2700 (053922)
Trolley for GYSPOT (018259)
SPOTTER BOX PRO (050075)
1 STAR-MANDREL FOR INERTIA HAMMER (049482) GYSPOT 3502 (018075) Automatic gun, Synergic control, 230V (1ph)
SHORT HAMMER 1.1KG (049802) 10T HYDRAULIC CYLINDER KIT (052338)
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
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GraphicWerx • AOC_GYS_AutoMobil_3235
Tel: +27 11 444 6454 Fax: +27 11 444 5677 e-Mail: info@aerocure.co.za
www.automobil.co.za
* Prices subject to change without notice. Product / colour may vary from image displayed. Subject to stock availability. (E&OE)