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CONTENTSCover StoriesBosch Aerotwin and ECO 8

BMW extends investment 22

COEGA CKD facility 26

App frees up fleet managers 38

News ForumTechnical transformation 14

Driving distracted 16

UN and UNECE safety call 18

Increased toll tariff outcry 20

Letter to Minister of Transport 21

BMW extends investment 22

What goes into fuel price 24

COEGA explores CKD facility 26

KPMG auto survey 28

Topgear Zambia 30

Business ForumResilience, Focus and Persistence 34

Moving within the digital evolution 36

Wesbank 2016 predictions 37

Trade TalkContiTech replaces RAM timing belts 6

Standard AEB in UK 6

Ford most ethical 6

Bosch Aerotwin and ECO wiper blades 8

Automechanika changes for 2018 10

Wesbank takes licensing online 10

2016 World Car Awards 12

Editorial

The last few weeks have been a roller coaster ride for South Africans - politically and economically - although they are both so intertwined. Oil and fuel prices along with increased interest rates and ongoing road toll costs have added huge strain to the average consumer and small businesses are under pressure. Some relief has been felt politically by the judgement on our president in the early part of April, but were know the year ahead is going to be tough and we need all our strength to keep going. To help keep you on the road, we have some tips on how to improve your business during this crazy time, as well as positive news on investments made locally that bode well for our industry.

Enjoy the read!Clare

EDITOR: CLARE RUTKIEWICZ

CONTRIBUTORS:AUSTRALIAN BODYSHOP NEWS ROBERT KAISER WARWICK ROBINSONROY COKAYNE gRANT WEST EMAIL: [email protected]

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Commercial VehiclesAPP frees up fleet managers 38

Commercial vehicle insurance 39

No panacea for SA truck crash stats 40

Isuzu Trucks eyes parts market 42

Volvo Trucks launch I-Shift Crawler gears 44

www.AutoForum.co.za

While reasonable precautions have been taken to ensure the accuracy of the advice and information given to readers, neither the editor, nor the publishers, can accept any responsibility for any damages, injury or loss which arise there from. The opinions expressed by contributors to this magazine are not necessarily shared by the editor or the publishers.

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AutoForum - March / April 2016Trade Talk AutoForum - March / April 2016 www.AutoForum.co.za

Calls for standard AEB in the United Kingdom

According to the British online magazine WhatCar?, thousands of lives could be saved by a new piece of automotive technology that costs manufacturers just £40 (around R920 at the time of writing).

Autonomous emergency braking (AEB) systems use a combination of laser, radar and cameras to detect an imminent collision, then warn the driver and apply the brakes. If the driver fails to respond, the system can even bring the car to a complete halt.

Currently available as standard or as an option on 95% of new cars in Europe (according to EuroNCAP), AEB could reduce fatal crashes by 20-25% and accidents in which an injury is sustained by 25-35%.* Despite that, where AEB is a cost option, only 1.6% of buyers in the UK will tick the box to add it.

The magazine has, alongside leading safety and research bodies such as Thatcham and Euro NCAP, been leading the call for AEB to be fitted as standard to all new cars. Jim Holder, editorial director commented: “When seatbelts became compulsory for front seat occupants of cars in 1983, the number of drivers killed or seriously injured dropped dramatically, almost overnight.”

“The evidence is irrefutable – AEB saves lives. Just as all new cars now come with stability control, so autonomous emergency braking should be standard fit for all mainstream cars.” To see the full What Car? feature about AEB, please visit whatcar.com.

* Research by the University of Adelaide in Australia examined 104 crashes to estimate how AEB could have reduced collision speeds and the risk of injury. It concluded that AEB could reduce fatal crashes by 20-25%, and that

Ford “Most Ethical”

Ford Motor Company has been named a 2016 “World’s Most Ethical Company” for the seventh consecutive year, by the Ethisphere Institute, a global company involved in defining and advancing the standards of ethical business practices. Ford is the only automaker to earn the Ethisphere Institute’s award this year.

The World’s Most Ethical Companies are assessed on a framework developed by the Institute. Honorees are given top ratings in five categories - ethics and compliance, corporate citizenship and responsibilities, culture of ethics, governance and leadership, and reputation.

ContiTech to replace RAM timing belts

Veyance Technologies has confirmed that RAM timing belts will be discontinued in SA as of the beginning of this year, to be replaced with ContiTech timing belts sourced from Hanover in Germany. The company adds it foresees that the phase-out of the RAM timing belts and the phase-in of the ContiTech timing belts will take approximately three months.

The equivalent ContiTech range will be extended to meet the market needs.

As Colin Preddy, General Manager: Automotive, Veyance Technologies explains: “The major benefit of introducing ContiTech is that all of the timing belts are already OEM-approved by all major vehicle manufacturers. This gives the workshops, fitment centres and the consumer peace of mind that all ContiTech belts have been manufactured to the highest possible quality specification and have been designed to meet all OE requirements.”

In addition, ContiTech timing belts are reinforced with a temperature-resistant polyamide fabric backing, which also increases the wear resistance of the edges.

He adds that ContiTech timing belts do not have a limited kilometre warranty and are designed to meet or exceed the service intervals as specified by the vehicle manufacturers for any specific vehicle. Full merchandising, racking and after-sales and marketing support will be offered at major distributors of automotive spares, nationwide. ContiTech, a division of Continental AG, purchased Veyance Technologies in 2015.

“Timing belts are one of the most critical components in an internal combustion engine,” Preddy continues. “It’s especially important to provide belts with high resistance to elongation, degradation and wear caused by high

PAGE 6

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Clear visibility for your safety: Wiper blades from Bosch Windshield wipers are an integral part of vehicle safety. Wipers are constantly exposed to sunlight and harsh elements which can cause degradation and cracking. A damaged windshield wiper can hamper bad weather visibility, causing serious safety issues. Snow and ice, insects and resin also damage wipers.

Bosch is a leader in wiper innovation and has been manufacturing electric windshield wiping systems for over 80 years. Bosch has the world’s biggest factory in Tienen Belgium and supplies wiper systems and wiper blades to a large number of vehicle manufacturers. Bosch wiper blades are tested for their ability to withstand stress over 750,000 wipe cycles.

Bosch has ECO and Aerotwin range for passenger cars and commercial vehicles. Bosch ECO wiper blades are with the right price and quality. The ECO program has models with sizes that can vary from 300mm up to 600mm.

It has a natural rubber wiper blade element and with graphite coating for through wiping action. Bosch Aerotwin wiper has an optimised aerodynamic design and ensures great visibility at high speeds and longer service life due to even contact pressure. Bosch Aerotwin flat Wipers can be retrofitted on vehicles with conventional hook type wiper arms. The Aerotwin Plus wiper blades comes with 4 adapters and each wiper blade fits 10 different wiper arms 6 more than with the existing Multi-Clip.

Bosch supplies a wide range of rear windscreen wipers and are available for most of the vehicle models. They are available in conventional standard wipers, Aerotwin and specially designed plastic versions. Bosch new AeroEco wiper blades has a aerodynamic spoiler which fights blade lift off at high Speed and severe weather conditions. It has a high quality rubber blade which is ozone resistant and graphite coated for superb wiping performance. The tension spring in the Bosch AeroEco wipers provides consistent tension pressure and fits to all kinds of curved windshields. The benefits with AeroEco are - more OE sets can be replaced with just 11 AeroEco singles thereby reducing warehousing cost and increasing profitability.

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Automechanika 2016 and changes from 2018

From 2018, Messe Essen and Messe Frankfurt will jointly stage premier global fairs REIFEN (the international trade show dedicated to the tyre sector) and Automechanika, concurrently. From September 11 to 15, 2018, the companies will stage REIFEN parallel to Automechanika in Frankfurt.

Detlef Braun, Member of the Executive Board of Messe Frankfurt, explains: “REIFEN is supplementing the portfolio of the world’s leading fair brand Automechanika in an ideal way. We are offering the industry common dates and, for the trade and the garage sector, are bundling all the know-how and services in one place. That applies to Frankfurt as well as to our 14 other Automechanika fairs worldwide. The decisive factor for our customers is: As a valuable supplement to the product range of Accessories & Customising where wheels and rims already have their place, we are making the subject of tyres a well-rounded matter.”

The 2016 Automechanika Franfurt staging will remain standalone for the last time, but as always offers visitors an experience that is not to be missed in terms of product range, information, innovation and networking.

The event takes place as always in Frankfurt am Main, from 13 – 17 September 2016 and AutoForum will once again proudly fly the SA flag.

For more info on the show, visit the website http://automechanika.messefrankfurt.com/frankfurt/en/besucher/messeprofil.html

Image: Detlef Braun, Member of the Executive Board of Messe Frankfurt (left), and Oliver Kuhrt, CEO of Messe Essen

Wesbank takes licensing online

Wesbank has announced that it has taken the vehicle licence renewal process online for its customers.

The vehicle financing company’s Facebook page featured a post in late March that read: “There is an easier way to renew your vehicle license, no queues or fuss. Simply type in the link: http://bit.ly/219GBcJ to get started.”

This follows the outcry by the AA over the last few months regarding the delays in posted renewal discs (see Autoforum January / February 2016).

Here is hoping that other online options start becoming available in months to come, and across the nation.

PAGE 10

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2016 World Car Awards - Winners Announced

The winners of the 2016 World Car Awards have been announced during the late March press conference hosted by the New York International Auto Show, Bridgestone Corporation and Autoneum.

The winners announced were:• 2016 World Car of the Year - Mazda MX-5• 2016 World Luxury Car - BMW 7 Series• 2016 World Performance Car - Audi R8 Coupe• 2016 World Car Design of the Year - Mazda MX-5 • 2016 World Green Car - Toyota Mirai

The World Car Awards programme celebrated its 12th year in 2016 and, as always, vehicles are selected and voted on by an international jury panel comprised of 73 top-level automotive journalists, from 23 countries around the world.

Each juror was appointed by the World Car Steering Committee on the basis of his or her expertise, experience, credibility, and influence. Each juror typically drives and evaluates new vehicles on a regular basis as part of their professional work. Through

their respective outlets, they collectively reach an audience of many millions world-wide and votes are tabulated by KPMG.

The Road to World Car began in Frankfurt on 15 September last year and was followed by a four and a half day stop in Los Angeles for test-drives of the North American, Japanese and Swedish contenders in November.

It then continued in Geneva with the Top Three in the World announcement, and finally ended with the declaration of the winners in five categories at the New York International Auto Show.

2016 marks the 10th anniversary of the partnership between World Car and the New York show, and the third consecutive year that the World Car Awards have retained their ranking as the number one automotive awards programme in the world in terms of media reach.

PAGE 12

Trade Talk

A double win for Mazda - 2016 World Car of the Year and World Car Design of the Year at the World Car of the Year Awards at the Javits Center in

Manhattan (Photo: Kevin Hagen) . Winners Audi, Toyota and BMW pictured at the event.


The latest local and global news

The technological transformation of the auto sector Ford Motor Co chief executive Mark Fields has announced he is joining IBM’s board of directors, as the No. 2 US car manufacturer explores alternative mobility options, beyond selling cars and light duty vehicles. IBM confirmed that Fields, 55, was elected to join the board starting 1 March.

“Mark led the highly successful transformation of his company in a competitive industry where technology has driven innovation. He is leading Ford into a future where cars are not only vehicles, but increasingly becoming mobile technology platforms,” said Ginni Rometty, IBM chairman, president and chief executive officer. Under Fields, Ford has looked at alternatives to traditional car ownership, including mergers and acquisitions and partnerships.

Reuters said Ford and other car manufacturers are increasingly focused on self-driving cars and the potential disruptive influence autonomous cars may have on future car ownership. They face potential threats from new competitors - like Silicon Valley.

Ford spokesman Mike Moran said: “IBM is a global company with a rich history of innovation and disrupting its business model to deliver results – which is very complementary to what

we are doing at Ford. Mark will bring unique insights to IBM, and his experience and new relationships serving on the IBM board will bring equal benefits back to Ford.”

Fields briefly worked at IBM in sales and marketing after graduating from Rutgers and before attending Harvard Business School.Fields said the car manufacturer is exploring various options to boost its move into car-sharing, self-driving technology and services built on staying connected with customers during the 900 or so hours a year they are behind the wheel. The company has repeatedly declined to comment on reports that Ford is pursuing an alliance with Internet leader Alphabet Inc’s Google to collaborate on development of self-driving cars.

Reuters said in December that the companies have held talks and Fields met with Google co-founder Sergey Brin that same month to discuss the status of the talks.

Ford is pursuing its own efforts to develop autonomous driving technology, and said earlier this month it would triple the size of its self-driving car test fleet to 30 vehicles. The previous CEO, Alan Mulally has been a director at Google since 2014.

PAGE 14

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AutoForum - March / April 2016NEWS FORUM

Yes, you are most likely driving distracted - and so is everyone else around you!We at AutoForum have posted a lot of stories about the danger of distracted driving over the years. Not because we think we are immune, but because we know how easy it is to fall into the trap. MIWA recently sent an article to the motoring media regarding the issue and, once again, it struck a cord.

Take a careful read here, because in this digital age, it is almost impossible to be completely innocent of wrong doing. The more that we as an industry make this part of our conversation, the more our customers will start to take notice too. In a presentation in 2014, Volvo’s safety experts claimed that texting while driving was even more dangerous that driving under the influence. But texting is only one of the distractions that need to be taken note of.

“Texting while operating a vehicle is a seriously dangerous activity, but distracted driving means more than just texting. It’s any activity that takes a person’s attention away from the main task of driving,” says Les Mc Master, Chairman of the Motor Industry Workshop Association (MIWA).

“There are three types of distractions, namely visual, which is when the driver takes their eyes off the road; manual, a task that requires the driver to take their hands off the steering wheel; and cognitive, when the driver’s mind is not focussed on the task at hand.” Mc Master points out that these activities could include eating and drinking, grooming, adjusting the radio or talking to passengers, but there are of course many more. “Texting is the riskiest activity because it is a visual, manual and cognitive diversion, which means no attention is being paid to the road.” According to the National Roads and Motorists Association, drivers who regularly send text messages spend up to 400 percent more time with their eyes on the phone instead of on the road.

“When you’re driving, you have to think about a lot of things: your speed, the traffic laws, the direction you’re going in, road conditions, pedestrians, other cars around you. It’s a long list, and if you’re not focussed on the task at hand, there is a greater chance that you’ll be involved in an accident.”

For many doing business in the always-connected economy that we have to function in, the car has become a mobile office, so changing these habits can be difficult.

However, this is not a strong enough case for putting yourself and other drivers at risk, believes Mc Master. “Making driving safely your priority while in your vehicle is the first step in the right direction. It’s really a matter of being disciplined and appreciating the risks involved. Passengers can also help drivers remain focussed by reminding them when their attention is not on the road and assisting them with anything they may need.”

In a nutshell, these are some of the behaviours you need to ensure that both you, your staff (particularly if they drive your vehicles) and your customers should abide by.

Some of them seem glaringly obvious, but in a society that still has unrestrained passengers in vehicles, its worth repeating, and sometimes the most obvious issues get ignored:• No reading, eating, changing clothing or grooming while

driving.• Don’t allow passengers to distract the driver. • Don’t let animals roam around the vehicle , rather carry them

in a pet carrier which is properly restrained.• Playlists cut out the need to look for which music to play.• Stow your phone - Let people know you will not answer any

phone calls or texts while driving.• Keep a safe following distance, it allows time to react if

required.

PAGE 16

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UN and UNECE call on automotive industry to improve road safetyThe United Nations and UNECE have called on Governments and the automotive industry to implement the United Nations road safety legal instruments at a meeting with the Geneva press corps in February.

In light of the recent road accidents figures, our horrific truck crash record and the death of more cyclists on SA roads, the call highlights the need for proper planning and global unification.

According to the organisations, every year 1.25 million people die around the world as a result of road crashes and 20 to 50 million more are injured. It is the number one cause of death among young people aged 15-29 and takes the lives of 500 innocent children each day.

They add that currently, 90% of these deaths occur in low- and middle-income countries, even though they account for only 54% of the world’s vehicles. Vulnerable road users (e.g. pedestrians, cyclists, and riders of motorized 2-wheelers and their passengers) account for 50% of the deaths.

Africa has the highest mortality rate, with 26,6 victims for 100.000 inhabitants (versus 9,3 in Europe), and represents 43% of road traffic victims. (Not surprising after seeing the latest SA road death figures over the Christmas period – and we know those were not including deaths 30 days after the period.)

The international community has committed to halve road traffic fatalities by 2020, a goal which requires accrued efforts from all stakeholders and countries.

Over the past decades, under the auspices of UNECE, the United Nations has developed many conventions governing most aspects of road safety. These legal instruments are in place and at the disposal of countries to help them build safer vehicles and safer roads, with consistent traffic rules and road signs.

Clear national road safety strategies containing goals and targets have also proven successful in many countries around the world, when coupled with information campaigns to mobilise civil society and strengthened enforcement mechanisms.

Jean Todt and Christian Friis Bach declared at the official call: “We urge all UN member States to take their responsibilities and to ratify and fully apply the UN road safety legal instruments. We also call on the motor industry as a whole to ensure that well-established safety standards are applied to all vehicles sold in developing countries. We stand ready, with our partners in the road safety community, to help countries to accede and implement these agreements. We must work together to live up to the promise made by the international community to save millions of lives by 2020”.

What is UNECE?

UNECE is the custodian of 58 UN conventions and agreements in the field of in-land transport, addressing most aspects of road safety (vehicles and road construction, road signs and signals, etc.).

These contain dispositions helping countries to implement legislation addressing all the major causes of crashes:• Safe road infrastructure. • Speed limits.• Motorcycle helmets: wearing a motorcycle helmet

correctly can reduce the risk of death by almost 40% and the risk of severe injury by over 70%. Law enforcement guarantees brings use rates to increase to over 90%.

• All safety features in vehicles, in particular:• Seat belts: the use of safety belts reduces the risk

of fatal injury by 40–50% in the front seats and between 25–75% in the rear seats. Yet in more than 80 countries in the world seat belts are not yet compulsory in front and rear seats.

• Child restraint systems: the use of child seats reduces fatality rates from 50 to 80%. Yet, only 53 countries have related legislation.

• Drink-driving – Not directly covered by an international agreement - but experience shows that laws based on a blood alcohol concentration limit of no more than: 0.05g/dl for the general population 0.02g/dl for young or novice drivers significantly reduce crashes. Only 34 countries have a drink-driving law in line with this best practice.

Since 2011, 28 accessions to the UN road safety conventions have been recorded, by countries such as Albania, Azerbaijan, Belarus, Egypt, Georgia, Iceland, Kazakhstan, Nigeria, Moldova, Slovenia, Qatar, Tajikistan, Turkey and Vietnam.

PAGE 18

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Outcry over tolling tariff increaseOUTA recently brought to light the Gazette notices 178, 179 and 180 of Gazette 39696, published 15 February 2016, wherein SANRAL have provided the public with mandatory tariff increases along all ‘conventional’ tolling routes throughout South Africa. Here follows the organisation’s media release and what you as a tax payer and road user need to know about the tolls you pay :

“We are disgusted that SANRAL and the Department of Transport have this attitude and approach of continuously applying mandatory annual increases to all toll plazas in its growing toll network, whilst the use and income generated by the various tolling contracts have serious questions, about which OUTA is busy conducting intensive research and investigation,” says Wayne Duvenage, the Chairman of the Organisation Undoing Tax Abuse (OUTA).

Some of the major concerns and issues that OUTA is looking into and will be raising at the highest levels are:

1.Toll concessionaire contracts (such as those along the N3 and N4, and N1) can run for up to 30 years, yet the capital outlay for the initial construction of a toll road is a fixed capital cost. This means that the effective bond repayments on the tolled road decreases every year, due and the impact of inflation on the real value of money and the lowering outstanding amount on the bonds. However, in the case of Sanral’s conventional toll tariff structure, the toll fees keep increasing every year for the entire 30 year period, regardless of whether the capital amount has already been repaid, and far beyond the cost necessary to maintain the road. Toll roads in South Africa have therefore become enormous tax-driven cash cows with guaranteed income for periods of up to 30 years for toll concessionaires and their connected companies.

2. Certain construction companies own large stakes in the tolling concessionaires, and in effect act as decision-makers for construction and maintenance contracts awarded by the concessionaire on the tolled routes they manage. Our research shows that toll contractors are able to award maintenance and construction contracts to themselves and / or their affiliates at inflated prices, driving up the “costs”, which the concessionaire justifies it has to recoup through its toll charges to the public. OUTA’s research on the exorbitant costs of road construction allowed by Sanral, will shortly be revealed in a well-researched position paper on this highly dubious and questionable situation.

3. Selected construction and other companies collect massive revenues from operating and administering the toll collection processes and yet there is a reluctance to discuss or divulge with absolute transparency, the income generated from the tolls. Furthermore, details about construction and maintenance contracts awarded are kept under wraps by these companies with the excuse they are “private companies who do not have to disclose that information to the public.”

4. Sanral have abolished the legislated requirement to maintain or provide alternate routes to tolled roads, thereby ensuring road users are held captive to the toll roads, while the alternate routes fall into gross disrepair. OUTA has received numerous complaints from affected communities along side tolled roads and will be assisting various communities in this regard. It is simply irrational and unjust for Sanral to allow this abusive situation to continue.

5. The legitimacy of the entire “user-pays” tolling mechanism in South Africa is in question, as some time back, Sanral amended the legislation to ensure that tolling revenue generated along one route, need not be retained or contained for each specific tolled route. This enables revenues that are generated from one conventional tolled road, to be utilized on other projects or areas within Sanral’s expense base. The above factors and other issues discovered by us, have created a diabolical and unjust situation which has been allowed to continue unchallenged for too long. It is important to remember that the toll road concessionaires are in effect, providing a service to the public, on behalf of and through the state. In so doing, they are subject to stringent laws, which we will be applying in our quest to have all of the relevant information laid bare for scrutiny and questioning by the public.

6. It remains very clear to us that there is a cosy relationship between Sanral and some construction companies, concessionaires and consultants, which is driving unjust and massive profits to these parties, at the expense of the public.

7. We require answers to a number of serious questions, and it would be in the interest of all parties concerned to not force OUTA to seek the required information through a drawn out Public Access to Information Act (PAIA) processes. If forced to do so, this will merely increase the ire and resolve of civil society, and raise further questions regarding the integrity of the parties involved.

See more at: http://www.outa.co.za/site/national-toll-increase-requires-intensive-probing-and-transparency/#sthash.qcuLRMu1.dpuf

Interestingly, the organisation also commented on the expected petrol price decrease for March on Facebook, saying : “If they decrease petrol by 50c and not the proposed 59c, they could switch off the e-Toll gantries.” But now petrol is up in April and the toll debacle continues. We wait in anticipation for further findings and responses.

PAGE 20

Open letter to the Minister of Transport, the Honourable Ms Dipuo PetersChris Barry last month wrote an open letter to the Minister of Transport, which garnered much interest when it was published on the Autoforum website. The letter calls into question the congratulatory advertisements placed in national news media in late January, regarding the festive season “crack down” on our roads. Let us know what you think of his sentiments by commenting on our Facebook page. Dear Madame Minister, I noted with great interest the Road Traffic Management Corporation’s advertorial published in several newspapers in late January, congratulating the country’s road safety activists, emergency personnel and health practitioners for their dedication over the festive season.

It’s true – these people do remarkable work under difficult conditions, saving lives in situations that would be far more tragic were it not for their intervention – and they are to be lauded for going above and beyond what is required of them. The same advertorial noted that 1.7 million vehicles were stopped and checked over the festive season, with more than 6,000 people being arrested for drunk driving. Apparently more than 5,000 unroadworthy cars were pulled off the road, and 808 were arrested for speeding. I have to ask then, if emergency services were doing such a great job, and so many people were being stopped, checked and even arrested, how it can possibly be that 1755 people died on South Africa’s roads in the six-week festive season, a 14 percent increase on the fatalities incurred in the previous year’s holiday period? How can there be any good stories to tell in this scenario? How is the story of these multiple tragedies relegated to a paid-for insert buried in a weekly paper, with yet another ‘firm’ statement from the Minister exclaiming that ‘Enough is enough’. If we really have had enough of the carnage on our roads – which actually continues all year round – what is it that the Minister and all the organs of state are doing to stop it recurring, because it is clear that stopping people, arresting people, and taking unroadworthy cars off the road is not working. It is clear from this most recent collection of statistics that punitive measures are not working – they never have, and it’s clear that they never will.

While ongoing driver education seems to have made little difference historically, the 2015/2016 RTMC approach of policing in the complete absence of any driver education programme such as ArriveAlive has had fatal consequences.

What are we doing to educate our people about why they need to wear seatbelts at all times, even when they’re just popping around the corner to buy a bottle of milk?

How are we teaching people to think of the consequences of their actions, and to understand that their refusal to obey the rules of the road threatens lives – their own and the lives of others?

With corruption the norm at many licensing stations, where road users’ ability to pay a bribe is being tested rather than their knowledge of the rules of the road, what is the Department of Transport doing to ensure that road users are educated about the importance of sticking to the law? We need a complete change in approach, and the first positive step is to move away from spin doctoring. We need frequent roadworthiness tests on all vehicles. We need to recruit traffic officials who appreciate the significance of being a representative of the law and of being a guardian of the safety of citizens – and we need to remunerate them sufficiently to ensure that they are uncorruptible.

We need to find new ways of teaching South Africans about WHY we need to adhere to the rules of the road – for example why is the Department of Transport not working with the Department of Basic Education to place an increased focus on including citizenship in the curriculum – which would include the basics of respecting the lives of other road users? Sitting every January saying the same things as we did the year before does not show any signs of lessons learned, of new strategies, or of any care for the people that use South Africa’s roads.

We’ve got to change the way we’ve always done things, or we are going to see the same carnage on our roads, year after year after year. Yours sincerely,

Chris BarryManaging DirectorHeavy Commercial Vehicle Underwriting Managers (HCV)

PAGE 21


BMW extends investment in SA - Roy Cokayne

BMW has acquired a vacant stand adjacent to its plant in Rosslyn in Pretoria to kick-start its R6 billion SA investment.Tim Abbott, the Managing Director of BMW South Africa, said the site would be used to build a new state-of-the-art body shop. Abbott also confirmed BMW SA was to launch a pilot project in SA to test the use of solar power technology for electric vehicle charging stations.

The project is in-line with the comments by BMW AG board chairman Harald Kruger, at the German-based motor manufacturer’s recent centenary celebrations in Munich, that the company basing its future on technology and electro mobility. Abbott added that the acquisition of the additional land would allow BMW SA to build a new body shop, while still continuing production of the BMW 3-Series.

“That was the first piece of investment and we are now clearing the site,” Abbott said on the sidelines of BMW Group’s centenary celebrations. He confirmed BMW planned to increase the local content in SA produced X3’s.

“We have got a whole team from Munich that is looking at local firms and if they could do more, whether its fuel tanks or dashboards, which are currently built in Europe or in the US. I think a lot of OEMs will begin looking at some of these parts together. A fuel tank is a fuel tank and doesn’t need to have badge on it.”The automaker announced in November 2015 that it would be investing R6 billion in South Africa after awarding a contract to its Rosslyn plant for the production of the new generation X3, for the domestic and export markets. However, BMW SA at the time provided few details about the investment, which is the single largest automotive investment ever in SA.

Abbott explained that R3 billion of the total investment was on hardware and a further R3 billion on the infrastructure in the plant, including some new training centres. He said 40% of the plant would be renewed for the production of the X3, with a state-of-the-art body shop that also encompassed completely new technology. New technologies would also be introduced in the existing paint shop, which would have to be enlarged to accommodate the new model.

According to Abbott, the roof of the main building in the plant was too low for the new model, resulting in 24 concrete pillars being installed in the sides of the building over the Christmas period, jacking up the roof by three metres. He said the new contract had secured the employment of the workers at the plant, but declined to quantify any new employment opportunities created in the plant.

The Rosslyn plant would also be geared up to produce a similar number of X3’s as the current 3-Series, but production volumes could be increased through the introduction of new shift patterns. Abbott said BMW SA had been given responsibility for the entire sub Saharan Africa region, which was previously managed by BMW in Munich.

He confirmed that BMW sales into the region are expected to initially be very small, as logistics remain a problem, but they are predicted to grow over time. He added BMW had looked at the Nigerian market, but the establishment of an assembly or production plant in that country was not on the cards and the company was happy with South Africa’s APDP.

“We have got security around that (the APDP) so it’s definitely not in our plans to do anything in Nigeria but never say never,” he said. Turning to electro-mobility, Abbott said four pilot solar ports would be strategically located and established around the country by the end of this year, two in Gauteng and one each in Cape Town and Durban. The ports would probably be established with partners, such as a major bank or supermarket, but the the exact location of the solar ports had not yet been established, he said.

Abbot said BMW SA last year sold about 250 electric vehicles in South Africa, split equally between the BMW i3 and iX.“My firm belief is that solar power in South Africa is the way to go. If you look at the sunshine, it’s got to be more than almost any other country in the world and an area we should be exploring. I’ve only been in South Africa a for a short period but its the one thing that has surprised me more than anything else except the taxes (on electric vehicles) all going the wrong way. Every house should have solar power on it.”

“In the UK, there are more solar powered houses than South Africa. But the UK has a subsidy for your own solar plant,” he said.Kruger said the BMW Group clearly believed in e-mobility and in the last three years had sold about 30 000BMW i cars, which was 66 percent more than in the previous year. Abbott confirmed they had asked the government to look at the taxation of electric cars, because they were currently taxed at 25%, the same as golf carts and milk floats, compared to 18% for a normally aspirated car. He believed the tax treatment of electric cars was an oversight by government that should be rectified by reducing the tax on electric vehicles at least down to other normally aspirated vehicles.

In addition, Abbott believed government should give the technology a kick-start and lower the tax to zero at least for the first year to enable manufacturers to make electric cars competitive and establish a foothold in the market. He said most other countries in the world were party to such inducements, including the UK, US and parts of the EU, but South Africa had nothing.Abbott said BMW SA and Nissan SA had approached government on this issue but were still waiting for a response.

“We will write again and keep writing because we believe the number of electric cars will accelerate because it’s very compelling to have an electric car. E-mobility is only 5% of volume sales so there is a huge opportunity. It has only got a foothold in markets where the governments are supportive, such as the UK and US”. Abbott said their target was to get 5% volumes sales in South Africa from e-mobility, by 2020.

PAGE 22

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What goes into the fuel (price)?The AA has created an infographic to explain exactly how the current SA fuel price is comprised. As of midnight 5 April, the cost of a litre of fuel will be up by between 81 cents a litre and 98 cents a litre, depending on the fuel you use, so understanding how it got to be that high, is pretty pertinent. Petrol 95 will increase by 88c/l, 93 by between 81c/l and 86c/l, and the two diesel fuels by either 96c/l or 98c/l. The cost of a litre of 93 unleaded petrol inland is now R12.32 (up from R11.46) and R11.94 for litre of petrol at the coast (up from R11.13). The 30c/l increase to the Fuel Levy, announced by Finance Minister Pravin Gordhan during his budget speech in February, has been added to all of the price adjustments. This additional 30c/l has moved the Fuel Levy – a tax collected on every litre of fuel sold - from R2.55 to R2.85 a litre. The money collected through the Fuel Levy is administered by the National Treasury, and is treated as a general tax, not, as many people assume, only for road-related expenses. For many, the fuel price is merely a number on a pump that they need to pay when filling their tank. But the cost of this essential commodity is much more than that; it is made up of many different costs that, together, constitute what is commonly referred to as the petrol price. In South Africa this price is adjusted monthly based on a number of factors, mainly international petroleum prices, and the Rand/US Dollar exchange rate. The Basic Fuel Price (BFP) is calculated based on costs associated with shipping petroleum products to South Africa from the Mediterranean area, Arab Gulf, and Singapore.

These costs include insurance, storage, and wharfage, the cost to use harbour facilities when off-loading petroleum products into storage facilities. In April 2016 these costs total R5.26 per litre for 93 unleaded petrol (inland), and R5.21 for a litre of 93 unleaded at the coast.

Other costs associated with the petrol price include transport costs (from the harbour to other areas), customs and excise duties, the retail margins paid to fuel station owners, and secondary storage costs. Importantly, these other costs also include the Fuel Levy, and the Road Accident Fund (RAF) Levy. Currently these other costs total R7.06 for inland users, and R6.73 for coastal users, per litre of 93 unleaded petrol. Of this,

a revised figure of R2.85 is allocated to the Fuel Levy, and R1.54 to RAF Levy. The Fuel Levy goes directly to the National Treasury, while the RAF Levy goes to the RAF, and is used to care for victims of car crashes.This means that for every inland litre of petrol costing R12.32, R4.39 (35 percent) is allocated to different government levies. For every litre of coastal petrol costing R11.94, close to 37% is allocated to the levies. InlandUsing this formula, filling a 50 l tank with 93 unleaded petrol inland, will cost R616.00. Of this, R142.50 goes directly to the Fuel Levy with a further R77 going to the RAF Levy, giving a combined total of R219.50.

CoastalUsing this formula, filling a 50 l tank with 93 unleaded petrol at the coast, will cost R597.00. Of this, R142.50 goes directly to the Fuel Levy with a further R77 going to the RAF Levy, giving a combined total of R219.50. The Automobile Association (AA) releases a prediction for the change in the fuel price in the middle of every month, and again at the end of the month ahead of the official announcement by government.

NEWS FORUM

CH4992

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PAGE 24

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In order to ensure that these bearings all perform to reduce rotational friction, and to support radial and axial loads.These bearings are manufactured for OEM use


Coega Development Corporation explores CKD establishment - Roy Cokayne

The Coega Development Corporation is in discussions with three motor manufacturers about the possibility of establishing completely knocked down (CKD) manufacturing facilities in the industrial development zone.

Gustav Meyer, the senior manager International Markets – Transport Industry at the corporation, declined to identify manufacturers involved in discussions, but confirmed that one of the companies was a Chinese motor manufacturer and two others European motor manufacturers, one of which was a heavy truck maker.

Meyer said there were different timelines for a decision on the possible investment by the three, with the first around mid-year and the others a bit further away. The Chinese motor manufacturer is believed to be Beijing Automotive International Corporation (BAIC), China’s fifth largest automotive manufacturer. Last year BAIC confirmed it would be investing R11 billion in a new vehicle manufacturing plant in SA.

The Industrial Development Corporation (IDC) also previously confirmed it would have a shareholding of between 20% and 35% in the venture. The IDC said the balance of the shareholding would be held by BAIC.

Meyer said the Coega IDZ was the biggest industrial development zone in the country and the gateway to global markets, with two ports serving the logistic needs of investors. He confirmed some of the changes made last year to the APDP had stimulated increased interest in the Coega IDZ.

This included the reduction in the annual volume threshold for vehicle production from 50 000 units to 10 000 units to qualify for APDP incentives. This change was made to stimulate new entrants into the domestic motor manufacturing industry.

Meyer added there had been some interest by motor manufacturers in establishing semi knocked down (SKD) plants in the IDZ prior to the APDP changes, but CDK plants were getting preference now, particularly following the depreciation of the Rand.

“Coega remains confident that some of the OEMS currently exploring South African shores will expand operations and choose the Coega IDZ as a location to serve Africa and other export markets,” he said.

He continued that the automotive sector was already one of the key sectors situated in the Coega IDZ, while about 35% of the domestic automotive components industry was located in the Nelson Mandela Bay area.

The catalysts for this were the presence of General Motors, Volkswagen, the Ford engine plant and First Automotive Works (FAW) in the area. Meyer added that many suppliers in Nelson Mandela Bay were also key players in the component supply chain of Mercedes Benz South Africa in East London.

“Coega IDZ’s intention is to continue to grow and develop the automotive sector through attraction of investment in new and replacement models, as well as the manufacturing of automotive components.”

Meyer said the automotive industry was one of the growing industries dominating in manufacturing nationally and globally. It was the largest manufacturing sector in the SA economy, contributing about 7.2% to GDP in 2014.

Meyer also pointed to the President’s State of the Nation Address, that government incentives for the automotive sector had attracted investments of more than R25 billion over the last five years.

He said President Zuma’s comments were indicative of South Africa’s position as a developed and established automotive sector base that had shown resilience and potential to compete globally. (One wonders if any statements being made by those in government are helpful at all in these times.)

NEWS FORUM

Roy Cokayne is a senior financial reporter for Business ReportPAGE 26

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Untitled-1 1 2015/08/11 01:46:40 PM


KPMG Auto Survey: Auto connectivity & digitalisation are the key trends to 2025According to the latest KPMG International Global Automotive Executive Survey (GAES), connectivity and digitalisation is the number one most important trend that will hold through to 2025.

The 17th edition of the annual survey was released in South Africa in March and showed the top trend, which jumped from its ranking of 10th last year, and surpassed growth in emerging markets and alternative drivetrain technologies as the key sector issues. This latest survey comprised responses from 800 auto executives from 38 countries regarding their insights into topics such as business model disruptions, connectivity and digitalisation, customer data, new products and who will be the winners or losers in this industry currently undergoing massive change.

In addition, the survey includes insights from more than 2100 customers from around the world. Driven By Data

According to Dieter Becker, KPMG’s Global Head of Automotive: “Nothing will stay as it is in the automotive industry.” He adds that: “Ever-changing service and data-driven business models should be paving the way towards owning, securing and keeping the key stakeholder – the customer. In order to meet their current needs, becoming a customer-oriented service provider is of utmost importance. One way traditional car makers can add value and offer customised client experiences is by leveraging the massive amounts of data that both the car and its driver(s) produce.”

Most respondents, close on 70%, believe that the use of data and the application of informational engineering is still at the very beginning stages, and some that it is barely used at all.

According to Gavin Maile, Automotive Sector Leader for KPMG in South Africa: “This year the views of auto executives with regards to who will retain the customer relationship has shifted. Vehicle manufacturers’ views have dropped substantially from 72% to 33%, whilst their views on ICT company ownership has increased from four percent to 22 percent.” “Indeed, customers are aware of the value of their data and KPMG’s GAES results show that for these stakeholders, cash is king. When given the option to rank several response choices, 82 percent of the customer respondents across all age groups say that monetary benefits for their data is the most attractive benefit desired; followed closely by ‘customer incentive schemes’ (75 percent), and individualised service and customer experience over the whole customer lifecycle (71 percent),” commented Becker. What is clear is that auto executives place high importance across all benefits they would offer to customers for their data.

This KPMG believes, suggests that they are unsure of where to place their bets.

NEWS FORUM

Digitisation jumped

10 places from

2015 to 2016!

Graphics courtesy of KPMG Global Automotive Executive Survey 2016PAGE 28

Different from customers, auto executives place monetary benefits (82 percent) behind equal figures for individualised service and customer experience over the whole customer lifecycle and ‘customer incentive schemes’ (88 percent for both). The survey results also show that receiving nothing in exchange for data is not attractive to customers (30 percent – 4th place), yet still 43 percent of the executives surveyed believe doing nothing is acceptable. Emerging Market Presence

Presence in emerging markets remains a fundamental success factor for auto companies. In fact, for most auto companies it is volume-wise the most important pillar of their success.

“Emerging markets have recently suffered greatly due to the growth of the mature economies. With their exchange rates showing weakness and increases in interest rates, the consumer is under severe financial pressure, receiving little benefit from the lower oil price and affordability is out of reach for many customers,” adds Maile. The GAES found that over 58% of the auto execs surveyed believe it will be Toyota with the biggest piece of pie in years to come, predicting that the automaker will have the largest market share among OEMs in the next five years.

Toyota’s raking jumped from ninth place last year to first this year – however the competition is supremely strong: GAES respondents place BMW and Volkswagen just one to two points behind (57 and 56 percent respectively).

This represents a large shift downward for Hyundai, which fell from the top spot to fourth place - 50% of respondents expect an increase in market share. In general, most auto executives responding to the survey are optimistic and only few expect a decrease in any of the OEMs market share. For many of the OEMs, respondents see stability in their future.

At the same time, BMW and Toyota are expected to lead the fields of e-mobility and autonomous driving. They are also ranked in the top spots as being the most groundbreaking innovators in the future followed by Honda, Ford and Tesla.

Becker explains: “Some may ask how it is possible that two traditional players are occupying the first two ranks in fields of electro mobility, ahead of Tesla, the former master of e-mobility. The results are not surprising, since BMW has established a strong e-mobility brand with their i8 and i3 models, which are leading the way for electric cars.

Toyota is currently building up a new future oriented and innovative image with the fuel cell model Mirai to which customers and media had a positive reaction. However, although fully electric vehicles like the Tesla Model S/X have got a lot of attention over the last year, the total amount of fully electric vehicles and their applicability for daily use is still far away from the mainstream needs of today’s customers.” The executives surveyed are optimistic that traditional manufacturers will be the groundbreaking innovators in the future. However, as they are facing a new highly digitalised and connected age with numerous new players, OEMs seem to be aware that these developments are not (yet) reflected in their business models. However, by having a closer look at the view of the different stakeholder groups participating in the survey, it is most surprising that OEMs themselves expect ICT companies (35 percent) to be the most groundbreaking innovators in the future — not traditional automotive companies, and therefore not themselves. The executives from the ICT companies on the other side are convinced that they themselves will be the leaders in fields of innovation over the next five years (53 percent) – far ahead of all other players or market entrants. “We believe these changes will help to convert the industry into the next development cycle and we should see these changes as an opportunity rather than a risk,” concludes Becker.

The changing OEM business model for the next decade

PAGE 29


Topgear Zambia, 60 years and 1st approved aluminium body repair shop - Grant West

Topgear Limited, an iconic body repairer based in Lusaka, recently celebrated double milestones in its history. Registered 60 years ago by the original owners as United Panel Beaters – one of only 3 panel beating shops in Lusaka at the time, Topgear was accredited as the only approved aluminium body repair facility in Zambia by Alliance Motors – the official Jaguar and Land Rover importers and distributors in Zambia.

Current owner and Managing Director Barry Savage and his wife bought the business in 2002 and, after buying the property in 2012, have implemented a number of renovations and improvements. This strategy of upgrading the business resulted in discussions with Jaguar and Land Rover representatives in 2014.

Barry says those discussions instigated the further upgrading of the facilities, equipment and skills in order to achieve the benchmarks required of an approved Jaguar / Land Rover aluminium repairer.

Andre Bonthuys is the General Manager of Alliance Motors Zambia Ltd, the sole official distributor of the Jaguar and Land Rover brands in Zambia, and was instrumental in the move to aluminium body repair. This move included the acquisition of the required equipment and technology, ensuring that Topgear are now accredited and qualified to effect repairs to the brands’ high standards.

Andre said he was: “Proud to officiate at the opening of the upgraded facilities” and advised guests at the launch that all Jaguar and Land Rover official repairs would henceforth

Above:The Savage family celebrate a double milestone in their business. Opposite Clockwise from top: Andre Bonthuys, General Manager, Alliance Motors Zambia the official distributors of Jaguar and Land Rover; The “Branded” Beer bar; Guests discuss the upgraded facilitiesPAGE 30

be facilitated only through Topgear as the sole approved repairer in Zambia.

The alignment of Alliance Motors and Topgear has ensured that all Jaguar and Land Rover products in the region can be serviced, repaired and maintained according to the benchmarks set by the manufacturer.

This includes all the vehicles operating in the tourism industry of the country and its neighbours. In the early days, the current Topgear was an all round one stop shop, that repaired and serviced the whole vehicle from tune-ups, engine rebuilds and gearboxes through to body repair and refinish.

When Barry consolidated the businesses he continued with the Topgear brand, taking advantage of its recognized name and reputation in the marketplace.

Employing 13 members of staff in 1993, this number grew to 61 staff members delivering 6 vehicles per day in 2011/2.

With the modernisation and efficiency of the new equipment and facility, the staff compliment has been lowered to 48 and the business now targets a delivery of 12 vehicles per day from the shop.

Topgear has an assortment of chassis benches and Korek frames, in addition to 2 combination drive-thru spraybooths/ovens, one of which accommodates the “sprinter” type vehicles & 6 preparation bays.

Barry admits that with the current economic climate, they are a couple of vehicles short of reaching this target, but

is confident that he will have achieved these targets by year end.

PAGE 31


“The business’ efficiency is in a large part due to our staff.” he adds, but his hands-on management of the workshop continues to drive and enhance the reputation of Topgear. In addition, his policy of learning the business from the bottom to the top applies across the board.

Barry describes trading conditions in Zambia as being unique to the region. The closest motor manufacturers are in South Africa, but the majority of vehicles in the region are imports from Asia - with a growing number coming from Europe. Barry estimates that currently 85% of the repairs placed through Topgear are insurance business.

Topgear have an offices in Johannesburg, as well as in Dubai sourcing all required parts and spares. Thier staff will price-check all suppliers, including the local agents, to ensure the parts are procured at the best prices and in the shortest time period possible.

The business uses only Standox automotive paints via Plascon, which are supplied pre mixed and colour matched for the upper end range of vehicles, including Jaguar and Range Rover.

Barry uses the Kapci range of paints from Mix & Match, who, he says, keep good stock levels and are also able to supply pre-mix colour matched stock on a reliable basis for the

balance of his needs.

With only one recognised training facility for panel beaters in Zambia, skills shortage is an issue. Barry however, has a philosophy of upskilling his staff through experience and a strict adherence to the systems and work practices he has in place within the business, with a natural progression based on skill level.

NEWS FORUM

This page top left: The early days of body repair at Topgear; Guests at the event. Opposite page: Some of the 6 modern preparation bays; Car-O-Liner chassis repair bench in the dedicated Aluminum repair section; Barry chats to his customers about the upgrade to the business.PAGE 32

Due to the intricacies involved in doing business in Zambia, Vehicle repairers like Topgear have had to adapt their quoting systems in order to cope with the range of vehicles, including vehicles we would term “Grey imports,” available in the country and its neighbours.

Perhaps due to - or even in spite of these issues - Barry remains committed to continuing Topgear’s growth and range of services into the foreseeable future.

PAGE 33

AutoForum - March / April 2016BusinessForum Business insight

Resilience, Focus and Persistence: your antidote to a listless business climate - Robert Kaiser

There is no doubt that 2016 has not started particularly well and is instead living up to the forecasts by economists that this is going to be a tough year. This does not mean all is lost and that we should cover ourselves in ash and sackcloth. There is always a way forward and what is required for us to survive is focus, resilience and persistence! There are challenges but also opportunities for the retail automotive sector during the following months. Let’s look at some of them:

The Ever Present Challenges

•Taxes and Utility CostsThe Government budget presented in Parliament in February is widely seen as being an expression of prudent fiscal management and there was an absence of what many economists believed would be significant interventions in the form of tax increases, except perhaps the rather hefty increase in the fuel levy from 1 April. From a business point of view therefore, the 2016/17 budget is one that business could live with, but that is unfortunately not the whole story. Expect increases in property taxes and utility costs (water, sewerage, refuse removal, electricity) that will most assuredly be implemented by local authorities countrywide during the course of the year, usually by 1 July, the start of the financial year for most local authorities. We already know that Eskom has been granted an increase of 9, 4 % in electricity tariffs and that is the first salvo in the next round of increases.

• Interest Rates We are in an upward spiral and expect further increases in interest rates as the year progresses. Not a good time to run an overdraft or incur debt. Cash is King!

•Labour If your business is part of the automotive aftermarket, you will be affected by the negotiations for a new substantive (wages and other benefits) agreement. The current 3- year agreement in the retail motor industry expires at the end of August this year. Hopefully the parties to the Motor Industry Bargaining Council (MIBCO) where negotiations will take place, will reach an agreement without strike action, which we certainly do not need. Be aware and stay informed on this issue. If you are a member of an employer’s association that is a party to the Bargaining Council, you will have an opportunity to participate in the mandating process preceding the commencement of negotiations. It is very important that you participate and support your associations as they can only negotiate what they are mandated for by their members. The employers’ associations who are parties to the Bargaining Council are the RMI, FRA and Neasa.

•Cash FlowManagement of your cash flow on a daily basis is always an imperative for a business to stay healthy and solvent. Enough said!

•Credit ControlA debtor’s ledger should not be allowed to grow a beard and if you are managing your cash flow, your appreciation of the necessity for tight management of credit control will grow. Beware of granting credit, it is easy to make very costly mistakes!

So What Opportunities Are Available?

•Marketing and Training We know that a tight economic situation calls for cost cutting and prudent management and marketing and training budgets are favourite first line casualties for cost cutting. To me, it just doesn’t make sense to cut on marketing activities when you are actually trying to be out there in the market to only retain existing customers, but winning new ones? The same goes for training of staff; the market moves fast and in most areas there is a constant need for training of your staff to ensure that your business has the necessary skills in place to provide relevant and superior products and service to clients and ensure that the business can deliver what its clientele needs and expects. Having said that, it does not mean that you do not need to review the manner in which you apply your marketing and training spend; there may be ways and means by which you could fulfil your marketing and training objectives in a more cost-effective manner. There are always opportunities for cost-cutting and improvements in efficiency if some focused thinking is applied to all the processes in the business.

• Identify New Markets and Niches This may be a good time to reflect on your business and the environment in which you operate; do some serious research to determine if there are any opportunities for your business to introduce a new product or service or in some other way to set your business apart from the mainstream in your sector, which would enhance the

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uniqueness of what you offer to your customers, without going the discounting route (which could be commercial suicide!)

•Your TeamPeople make or break a business and in tough economic times, a motivated, passionate, skilled and loyal employee corps can make a gigantic difference to ensure survival. Justice cannot be done to this important and complex subject here, but suffice to say that it is a matter that requires deep and thorough consideration by any business owner and manager.

•The Retail Motor Industry Remains Viable Even In A Tight EconomyA huge advantage of business in the retail motor industry is that it remains viable, even in a tough economic climate; vehicles need to be repaired, fuelled, tyred and accessorised. The drop in new vehicle sales has to date not assumed disastrous proportions, used vehicle sales are holding up and the age of the car parq is steadily increasing, thereby enhancing business opportunities in the aftermarket.

This is borne out by the latest Motor Trade Sales Stats for the quarter ended 2015, which was released by Stats SA at end February. The figures speak for themselves. The recurring nature of vehicle maintenance makes customer retention and aggressive marketing to woo new customers so important in this industry.

What an opportunity - There is still light in the tunnel, and no it isn’t a train!

Few people realise that the South African GDP is dwarfed by the total value of the Johannesburg Stock Exchange (JSE), the 19th largest stock exchange globally and the largest, by far, on the African Continent.

The total market capitalisation of the JSE is a whopping 300% larger than the value of the SA GDP. Add to that the value of thousands upon thousands of unlisted companies and the figure may well be staggeringly high in comparison.

If this truth alone does not give you hope and reassurance that we are not going south, but are just experiencing a blip on our northerly trajectory, what will? Now is not the time to give up hope but rather to look for an dcapitalise on opportunity.

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Moving within the digital evolution While the digital revolution has changed the way we do business, making life easier for the most part, it has also seen the introduction of a number of challenges. These include a faster work pace, big data overflow and increased information management risks – sadly these disruptions have not bypassed the automotive industry. The auto industry is in transition from a ‘brick and mortar’ environment to a more online orientated setup – although for many businesses in the sector, the move is taking place slower than in other industries. An area that this transition is clearly evident is in car sales.

According to TransUnion, the South African market showroom traffic is reducing as a result of customers doing their vehicle research online. This, it says, brings a number of risks for the consumer and challenges for the industry - especially within the private vehicle sale market.

Consumers are accessing information via the web to make decisions and the auto industry will need to become cognisant of this online buying trend. TransUnion continues that dealerships are now required to become more competitive by changing their thinking, marketing and sales initiatives through the adoption of an increased level of online activity.

The key factor to consider is how they engage and convert customers that are currently in an ‘online’ world of choice.

In a release to the media, the company commented that while dealers need to be cognisant of a change in customer interaction – from traditional dealership visits to online vehicle shopping – and adapt to target and engage prospective customers online, it is important to understand the risks presented by an online interaction.

Customer identification and verification should be central to any engagement strategy to mitigate the risk of doing business with a customer who is not who they say they are. “Fraud and theft in the automotive industry is a significant challenge and TransUnion’s 1Check app assists dealers to reduce these risks. TransUnion’s extensive database of over 19 million consumer records coupled with the TransUnion Auto database - the largest database of vehicle manufacturers, financing and valuation records in South Africa – is at the heart of the app, where real-time information provides motor dealers with the ability to make instant, informed and less-risky decisions.”

The app includes a number of features including ‘Test Drive’ which utilises TransUnion’s Fraud Prevention Model (FPM) to enable dealers to evaluate the level of risk associated with a potential customer prior to entering into a sales negotiation, or even before allowing a customer to take a vehicle on a test drive.

‘Quick Credit’ assists dealers to evaluate the credit standing of a consumer before entering into lengthy sales negotiations on a vehicle for which a consumer may, or may not, be able to obtain financing.

BUSINESS FORUM

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Additional features include a ‘Verification Report’ which delivers extensive manufacturer information, SAPS interest and datadot, mileage etc., ‘Valuations’ provides the latest trade and retail valuations for vehicles, ‘Stockloader’ enables dealers to easily upload and manage stock and ‘Accident Indicator’ to assess whether the vehicle has any accident history. Although this change in consumer behaviour is evolving the way in which dealerships and independent dealers’ approach the market, this shift in behaviour offers an array of benefits to the industry with the most vital opportunity being presented in data availability.

The data collected from these online sources provides access to the much needed information around customer behaviour. Dealerships are now able to harness this information to amend and adjust their sales and marketing strategies, further ensuring they are able to target the right customer with the right information.

With this information at hand dealerships should pursue an integrated marketing approach that cuts across different channels and customer touchpoints.

It is now the manufacturer’s task to also close the gap between desire (advertising) and experience (test drive) in the sales process.”

Interestingly, TransUnion have noted that although many consumers are researching online, they are still purchasing offline, at a dealership. Critical to closing the deal, dealerships will be required to facilitate a seamless transition from online to the physical dealership experience.

Efficient customer engagement is arguably key to converting an online shopper to an offline purchaser and with TransUnion 1Check dealers can verify and identify the opportunity presented by the customer in a matter of seconds – a win-win for both customer and dealer. The online trend is presenting the auto industry with both challenges and opportunities. This change has provided the industry with the much needed insights and data, and is also driving a faster online transition.

This opens many new avenues and brings along new customers for dealerships, especially in these tough economic times when competitive advantage is vital.

Making use of products, services and the right partners will ensure the auto industry is able to tackle the challenges they face and successfully take the step into the new online world.

Wesbank presents: “Salesmageddon” 2016 vehicle sales to drop 12% WesBank has released its prediction for new car sales for the year, and it is not good news. The South Africa vehicle financier expects total new vehicle sales will decline 12% this year – that is down from total sales of 617 691 vehicles in 2015 , to 543 306 units.

The forecast was presented at the annual SAGMJ WesBank Car Of The Year banquet dinner, where CEO Chris de Kock cited many of the current macroeconomic headwinds as reasons for the expected decline in sales this year.

WesBank’s forecast is based on the anticipation of a low GDP growth rate, changes in the interest rate, inflation, a downgrade of South Africa’s credit rating and the deterioration of the Rand. Over the next three years the interest rate is likely to be hiked 125 basis points, keeping inflation within target bands. However, WesBank says it does expect that South Africa’s sovereign credit rating will be downgraded to “non-investment grade”, or “junk” status. Finally, the Rand will continue to decline against the US Dollar, with WesBank forecasting that in 2019 the American currency will sit at R17.20.

“The movement of the Rand will be key for the new vehicle sales performance in South Africa. A deteriorating currency will force manufacturers to increase prices more aggressively. This will push new vehicle price inflation well outside that of

headline CPI, thus sending more buyers to the used car market,” said de Kock. “Interest rates will also play an important role in affordability and the demand for credit, as has historically been the case.”In line with seasonal trends in the market WesBank has staggered its forecast for 2016’s vehicle sales performance.

It further predicts that in the first half of 2016 industry sales will be down 10%, year-on-year, with passenger car and light commercial vehicle (LCV) sales declining 10% and the remainder of the commercial vehicle segment falling 12%.

The second half, it says, will be tougher, mainly as a result of accelerated price increases for new cars as well as higher interest rates. Passenger car sales will likely decline 15.5%, year-on-year, with LCVs only down 10% for the same period. Sales of larger commercial vehicles will slide 14.4%, year-on-year, as businesses opt to not to replace existing assets with new models.

Combined, the full year will see passenger car sales end down 12%; LCVs 10% lower than last year’s performance; and commercial vehicles down 13.3%.

Buckle up SA businesses – we are in for a bumpy ride.

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CoM

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New Transaction Authoristion App Frees Up Fleet Managers

Standard Bank Fleet Management has launched a new IOS app that works with its already successful Transaction Authorisation system.

The bank claims the system has already seen fleet managers save over R350 million in the 2015 period. The app now takes it a step further, allowing control of the fleet-card transactions of an entire fleet via a mobile phone, in real time. “One of the most urgent needs of a fleet manager is to know when someone is trying to commit fraud with one of the company’s fuel cards, and to be able to sort it out on the spot. Finding out tomorrow, or later today when you’re back at the office could simply be too late,” says Dr David Molapo, Head of Standard Bank Fleet Management. “With our new Fleet Authorisations app, we have put this power into the pocket of the fleet manager – without adding to their administrative duties.”

The Fleet Authorisations iPhone app launched simultaneously with a mobi site to give the same power to fleet managers with Android phones. It is available to fleet managers who use Standard Bank fleet cards and vets every fuel-card swipe automatically against 30 different criteria. These include: Has the card been reported lost? Has the card been cancelled? Is the driver trying to buy more fuel than the tank capacity of the vehicle? Is the driver trying to fill up too often? If a transaction oversteps any of the 30 parameters set for a specific card, the transaction is automatically declined and the fleet manager notified. It is then up to the fleet manager to decide whether to override the automatic decline by authorising the transaction.

“Until now, fleet managers were able to monitor all the transactions in real time on their PCs through the Transaction Authorisations website, where all declined transactions are flagged to make monitoring easy. To approve a declined transaction, fleet managers have had to contact a call centre,” Dr Molapo says.

One of the primary benefits of the app is the ability to approve a declined transaction through the app itself, without having to phone in to the call centre. “So drivers no longer have to spend unnecessary minutes waiting at forecourts to have their declined transactions approved,” says Dr Molapo. The app works in tandem with a system of SMS alerts. A fleet manager can choose to receive a SMS alert either every time a transaction takes place, or only for those transactions that are declined. In the app, they will find the full details of each transaction: the vehicle, the service station where the transaction was attempted, and the reason for the decline.

The latest figures from Standard Bank’s Transaction Authorisation system shows that a total of R406 million’s worth of transactions were declined in 2015. This is R117 million less than the year before, which indicates that drivers are adapting to the stringent discipline of Transaction Authorisation. Of the R406 million’s worth of declined transactions, fleet managers had subsequently approved transactions worth R55 million, which were deemed valid, resulting in their direct savings of R351 million.

R8.0 million’s worth of the transactions were attempts at fraud, for instance using a stolen card, which is down from R12.3 million the year before. This shows the extent to which fraud syndicates increasingly regard the system as too robust to scam. Dr Molapo says that the Transaction Authorisation app is only one step on the path that Standard Bank has been pioneering to put fleet managers in complete charge of their fleet transactions.

The challenge is to empower the fleet manager without overwhelming them with too much information. “As always, we will be listening carefully to how our clients use the app, and with time, will improve it in order to continue to empower them even more,” says Dr Molapo.

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Mornè Stoltz is the Head of Business Insurance at MiWay.

Commercial vehicle insurance: What you need to know - by Mornè Stoltz

South Africa’s notoriously dangerous road system poses a myriad risks to any business dependent on mobility. Given the enormous financial and logistical ramifications faced as a result of the loss or theft of a commercial vehicle, it’s vital that local enterprise owners understand their specific insurance needs and ensure they have a solution in place that adequately meets their needs. When it comes to commercial vehicle insurance, many insurers offer standardised packages, along with optional extras, such as Roadside Assistance and Towing & Recovery. But not all commercial vehicle operations are created equal - the roadside assistance needs of a truck owner differ greatly from those of a fleet owner, and businesses covering shorter distances face significantly less risks than their long-haul counterparts.

As such, it’s important that you understand what kind of cover your business needs so as to avoid unnecessary excess payments, stock deterioration and loss of revenue. Here are a few handy tips to help you pick out the perfect insurance solution for your operation:

•Opt for a flat excess rateMany insurance companies apply something known as percentage excess, whereby the first amount payable by a client is often astronomical, given the high value of the vehicle. In order to make budgeting easier and to avoid any cash flow crises, rather opt for a flat excess, which makes budgeting in a time of loss far more manageable.

•Plan aheadYou never know when an employee might find themselves incapacitated or unable to work. Rather than losing out on potential business or risking sending an uninsured driver onto the roads, opt instead for an insurance option where the individual drivers do not need to be named or specified on the policy, thus reducing the risk of complications down the line.

•Choose deposit coverEven though your insurance company might pay you out in full in the event of a vehicle being stolen or written-off, the potential loss of revenue while you wait can be devastating to your business. As a result, it’s wise to opt for deposit cover, which allows you to claim a cash amount of up to 10% of a vehicle’s value, thus enabling you to get back on the road far quicker.

Like-for-like car hire cover allows you to rent a similar vehicle and keep your business operational while your claim is assessed and processed and your vehicle repaired. As an alternative, vehicle-loss-of-use cover pays a daily allowance towards the rental of a similar commercial vehicle while your vehicle is being repaired.

•Plan your routesIf your business endeavours takes the insured vehicle out of the country from time to time, it’s important to make sure that your insurance policy covers you in full for any incidents that might take place outside the country’s borders. It’s also critical that you specify the times of day you’re planning to be on the roads, as premiums and cover levels differ between day and night driving.

•Pay as you goIf your business operation extends no further than the boundaries of your immediate metropolitan area, you shouldn’t be paying the same premium as a fleet owner transporting goods between Johannesburg and Cape Town on a daily basis. As such, make sure to specify the nature of your commercial vehicle business, as well as the parameters of its operation, so as to ensure that you receive a fair premium price.

•Protect your stockTransporting perishable goods presents an additional risk for commercial vehicle owners, as a breakdown or unforeseen incident can compromise large quantities of stock. As such, it’s always wise to invest in Deterioration of Stock cover to avoid unnecessary losses. In some instances, it also benefits you to link the cover of your goods in transit to a specific vehicle, as this can substantially lower the premiums you pay.

•Manage your exposureThose little optional add-ons offered by your insurer might seem unnecessary at the time, but they can have an enormous impact down the line. Lock and key cover and comprehensive roadside assistance etc. can help you to manage your risk more effectively by creating less inconvenience in difficult situations.

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No panacea for SA truck crash stats - by Mornè Stoltz

Although small motor vehicles (47.9%) and minibus taxis (10.1%) accounted for over half the accidents over the 2015-16 festive season, light delivery vehicles (22.7%) and trucks (4.8 %) were also responsible for a high number of accidents resulting in 1 755 people losing their lives during this short period. According to Arrive Alive, the most common factors contributing to road accidents include unroadworthy vehicles (smooth tyres, faulty brakes), bursting tyres, inappropriate speed, driving under the influence of alcohol and unsafe overtaking. Although relatively few in number, some truck accidents have made headlines because of the high number of fatalities when a large vehicle loses control. The large number of heavy vehicles on our roads makes it imperative that measures are put in place to reduce the number of accidents involving trucks.

MiWay believes that reversing this trend will take a concerted effort from all role-players and a multi-pronged strategy to produce lasting change. Quite understandably, most media reports focus on the high number of deaths caused in these accidents. However, we also need to bear in mind the costs to the economy of vehicle accidents. Direct costs were recently estimated at R306 billion, which includes hospital care, police time, clearing accident scenes and so on. To this must be added the indirect costs of lost work hours and, for transport operators and their customers, delayed or destroyed cargos. In addition, the cost to the insurance industry is very high and is ultimately reflected in higher vehicle insurance premiums, something that affects the entire insurance market. For the trucking and logistics industries, technology can hold some of the answers.

For example, the compulsory use of retarders to augment the primary braking systems on heavy vehicles could help prevent the frequent accidents caused by the overheating of brake friction pads on long, steep passes such as Van Reenen’s Pass. It is the view of MiWay that such a requirement would have to be accompanied by stringent and uniform enforcement. If the whole industry does not buy into the idea, and it is not enforced properly, those operators who do install retarders will actually be disadvantaged because they are incurring higher overheads. We also believe that enforcement of these or any other safety regulations is only part of the solution. The industry as a whole has to be convinced that paying greater attention to safety makes sound business sense. Fewer accidents and less delays will help logistics companies improve their operating costs and enhance their reputation with satisfied customers. Improved safety precautions are also likely to lead to lower insurance premiums, particularly as on-board “black boxes” become standard in heavy vehicles. Other factors to consider in a multi-faceted approach to road safety would be better management of drivers’ needs for proper, regular rest and also advanced driving instruction. Initiatives like these have proven to reduce the number of accidents in which professional logistics companies are involved, with considerable benefits for them. Heavy vehicles are integral to today’s efficient supply chains. Without them, the supply chain would be broken, and goods would not reach their destination at the correct time. Improving the safety record of this vital industry is clearly important and it can only be done, MiWay believes, if major role-players such as insurance companies, the Department of Transport, logistics companies and drivers all commit to a strategy that addresses and reduces the causes of truck accidents in particular.

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Isuzu Trucks eyes the parts market with deals on OEM partsIsuzu Truck South Africa has announced its new drive to sell genuine replacement parts to truck owners, in order to add value at a price that they feel is far more competitive.

The heavy duty vehicle maker says it is a business imperative to ensure that, despite ever inflating costs and competing needs, new and existing Isuzu customers have access to genuine Original Equipment Manufacturer (OEM) parts - arguing that these ensure optimal performance, longevity, safety and proper functioning of their Isuzu Trucks.

ITSA confirmed in a media realease that it has “stocked up” on OEM parts in bulk, directly from Isuzu headquarters in Japan. The drive is clearly aimed at securing a bigger marketshare in the and is aiming to deliver better value to customers. They assert that they are tapping into substantial discounts, which will be passed on directly to customers.

This, says Isuzu, was made possible by the company’s recent growth and success as South Africa’s top-selling chassis-cab, forward-control configuration truck, excluding panel vans, and heavy busses for both 2013 and 2014. It asserts that using these parts means that in the event of a breakdown, the same parts that were used to build the truck are fitted, thus prolonging the life cycle of the vehicle. In addition allowing for the cover of a 12-month warranty.

Moreover, if fitted by a qualified and Retail Motor Industry Organisation (RMI) approved technician, the truck owner is

assured of backup and assistance by Isuzu in the event of a breakdown or malfunction of the part.

Isuzu parts automatically facilitate access to a wide variety of backing, such as national dealer support with a parts warehouse stocking over 16 000 parts, and a dealer group offering the sustenance to facilitate a seven-day-a-week backup process and peace of mind. “Isuzu Japan has assisted Isuzu Truck South Africa in manufacturing an alternative part using the same stringent engineering and product reliability code with a reduced cost base to extend our cost of ownership to Isuzu customers,” said Wayne Morgan, the General Manager: Aftersales & Parts of Isuzu Truck South Africa. “Isuzu parts and components are created and tested according to the manufacturers’ specification and high standards; genuine OEM items are guaranteed to be high quality. Having parts that are made specifically for your Isuzu means that they fit very well into your truck. This means that not only are the parts safer, and thus make your truck safer, but they last longer. The Isuzu genuine OEM parts are guaranteed to be compatible with Isuzu trucks and to perform according to factory specifications, especially where the trucks require cargo-bodies and equipment to complete the unit.”

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Volvo Trucks launches I-Shift + Crawler GearsVolvo Trucks has announced the introduction of its I-Shift with crawler gears, which provides specialised start capability for trucks carrying heavy loads in demanding situations.

The heavy duty vehicle maker explains that the gears are added to the vehicle’s automated transmission, and that the system is entirely unique for series-produced extra heavy trucks. The new version of I-Shift makes it possible to add up to two new crawler gears, which means two things, the ability start-off from standstill and transport a gross combination weight (GCW) of up to 325 tonnes.

Malcolm Gush, Sales Director at Volvo Trucks South Africa explains: “I-Shift with crawler gears offers entirely new scope for extra heavy trucks with automated transmission to regulate their speed when crawling slowly and even reversing.

The driver can haul a heavy load without worrying about getting into situations that may lead to costly standstills. This new technology will also be available in South Africa where extreme road and weather conditions often have a big impact on a fleet’s productivity, safety and profitability.”

According to Volvo Trucks, the new crawler gears allow the truck to drive at speeds as low as 0.5 to 2 km/h, which allows for precision manoeuvres such as in construction and maintenance tasks.

“The vastly improved driveability and starting capability with the new crawler gears makes the driver’s job far easier when operating in difficult terrain on slippery surfaces with heavy loads, such as at construction sites, in mines or in forests. The heavier the transport operation and the poorer the surface or the terrain, the more the driver gains from a truck with crawler gears,” adds Gush.

For haulage firms carrying out heavy transport operations on demanding surfaces as well as regular highway driving, crawler gears also offer considerable flexibility and the possibility of improved fuel economy.

“I-Shift with crawler gears makes it possible to start-off from standstill in extreme situations. Combining them with a suitable rear axle ratio that optimises engine revs at high speeds results in lower fuel consumption on the highway. This is a significant benefit to haulage firms operating in these scenarios,” said Gush.

Depending on application area, I-Shift is available with one or two forward crawler gears, and with or without two reverse crawler gears. Reverse crawler gears make it possible to reverse extremely slowly, which is a major advantage when reversing manoeuvres require immense precision.

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AMR 2016 - Spring in Beijing - Warwick Robinson

Early March saw Beijing’s Auto Maintenance and Repair (AMR) show take place, again based at the New China International Exhibition Centre.

AutoForum and BodyShop News International’s relationship has extended over a number of years and once again, it was interesting to see the show evolving and growing.

CAMEIA (The China Auto Maintenance Equipment Industry Association); CAMRTA (China Automotive Maintenance and Repair Trade Association); and Beijing Traders-Link International Exhibition Company are the official sponsors of the show, and as AMR’s official media partners for Africa we once more attended and covered the growing show in 2016.

As reported on the last few years’ events, the show has grown to become probably the most important “garage equipment” focussed events, with it’s wide array of all sorts of automotive and repair equipment manufacturers.

This year’s show was the 66th staging and the statistics show that it keeps growing in size and attendance. 110 000 square meters of show area and over 53 500 visitors in 3 days keeps AMR in the top 3 shows worldwide in terms of exhibition space and variety of exhibitors, and is far and away the biggest equipment focussed show.

As in previous years, the exhibition areas cover all aspects of the automotive sector, including: Repair Equipment, Tyre Repair Equipment, Tyre Repair Products, Testing And Diagnostic Machine, Coatings, Car Care, Tools, Machine Tool, Teaching Aids, Purification Systems, Environmental Protection And Energy-Saving,

Electronic Apparatus, Car Safety, Car Service Chain Stores and many more.

Notably, the event attracts more and more traditionally European and American exhibitors, and with them a number of buyers, with the major eastern European representatives at this year’s event as well.

The show plays host not only to the exhibitors from around the globe but also offers visitors several forums and seminars over the course of the event.

Overall it was clear that visitors are spoiled for choice at AMR, and facilities provided by the organisers make for an efficient visit, such as free internet access, visitor badge pre-delivery, VIP lounge, souvenirs and much more.

Once again we were proud to represent Africa at the show and noted a number of local buyers and distributors perusing the halls, looking for new opportunies and catching up with their existing partners and suppliers from the East.

ShowtimeSh

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me

Pictured opposite top left: The BodyShop News team together at AMR 2016 - Mr Yung from South Korea, Mr Michel Malik from Australia and Warwick Robinson from AutoForum.

PAGE 46

The business-to-business VIP meeting area really enables good networking and it was great to see new relationships being formed through our own network of buyers and distributors at the show. Watch AutoForum and BodyShop News Africa for more news and updates about special offers from the organisers. They are a wonderfully supportive organisation and go out of their way to ensure a successful trip for visitors, even covering complimentary hotel accomodation through AutoForum’s association.

If you missed the 2016 event – make sure you get in touch and get to AMR 2017.

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AutoForum - March / April 2016Aftermarketplace

Ferodo takes it online

Ferodo South Africa is bringing its expertise and expert product information home to you – making life for repairers and customers that much easier, with its YouTube channel.

With inserts covering all kinds of topics, including the latest on braking, learning from the experts has become a whole lot easier. You can even subscribe to the channel to keep up to date with new videos currently in production.

Monroe launches new online catalogue

Monroe recently announced that it had launched its updated electronic catalogue, which is available for download. The Tenneco brand confirms that the latest edition features all recent changes and additions and may be accessed via PC or Mac, using the links below.

You can also visit the AutoForum website – www.autoforum.co.za - to click straight through to the download page or download the updated app via the App Store.

WINDOWS https://drive.google.com/file/d/0B2FgoIQHwWJxZ0cxelR1S3poV00/view?usp=sharingMAC https://drive.google.com/folderview?id=0B2FgoIQHwWJxYkw2dnFTZWV3aXc&usp=sharing

Bosch Power Tools “Exchange Campaign 2016”

South African repairers have the opportunity to own Bosch Professional power tools at a 20 percent discount off the retail price. It is part of the company’s ‘Exchange Campaign 2016’ that runs from March to June.

Bosch explains that the campaign forms part of Bosch Power Tools’ ongoing focus on growing its business in Sub-Saharan Africa. “Our ambition is to change the power tool landscape in Africa by offering affordable yet robust and long lasting quality products, that professionals can use with pride,” says Bosch Power Tools SA senior brand manager Juergen Lauer. The idea is for the customer to hand in any brand of old power tools to a participating dealer and receive a 20 percent discount on a selected Bosch Professional power tool.

Products that will be discounted as part of the Bosch Exchange Campaign 2016 include; GSR 1080-2-LI and GSR 1800-LI cordless drill/ drivers; GSB 1080-2-LI and GSB 1300 impact drills, GBM 320 and GBM 1000 rotary drills, GWS 6700 and GWS 22-230 H angle grinders, GST 8000 E jigsaw, GHO 6500 planer and the GAS 15 vacuum cleaner.

In addition to the discount, customers purchasing a Bosch professional power tool during the Exchange Campaign 2016 period will also receive a complimentary Bosch-branded baseball cap.

You can also register online with the campaign to stand a chance of winning a Bosch Professional GML 50 jobsite radio. Lauer concludes: “This campaign will help us retain our valued customers, in addition to creating new ones too.”

PAGE 49

AutoForum - March / April 2016 AutoForum - March / April 2016Aftermarketplace

PAGE 50

Corghi’s drive-through aligment system

Corghi’s latest addition to their touch-less wheel alignment equipment, the REMO Rapide, addresses a rapid diagnostic need designed to be used at service workshop entrances.

It is contact free and clamp-less, allowing a drive-through alignment diagnosis that not only takes seconds, but can also be controlled from the driver’s seat of the vehicle.

Nic Kruger of Wheelquip, explains that the system is essentially a much more efficient way to quickly pre-check a customer’s alignment at drop-off stage. This would enable the service provider, in both tyre and service outlets, to let the customer know that alignment should be included in the service being performed, or that it is un-necessary.

If needed, the vehicle can then be directed toward an alignment adjustment machine. Splitting diagnosis and adjustment means that only those requiring adjustment take up time on that station, and therefore improves the workshop’s efficiency and ability to service higher volumes.

For more info contact Wheelquip.

nOIsE In YOUR WORKpLACE

Blend itCould it be good advice?

AUdAtEx ABUntEx IntROdUCtORY COURsE

sHERWIn-WILLIAMs BUYs vALspAR

FEstOOL & 3M tO JOIn FORCEs

Contents

Body repair insight in association with BodyShop News International

March / April 2016


BoDY

ShoP

BODYSHOP NEWS

AkzoNobel to acquire BASF’s industrial coatings business AkzoNobel has made an agreed offer to

acquire BASF’s Industrial Coatings business

for €475 million.

The transaction includes technologies,

patents and trademarks, as well as

securing supply to customers worldwide.

Two manufacturing plants – one in the UK

and one in South Africa – would also be

transferred to AkzoNobel.

The business generated revenue of about

€300 million in 2015 and supplies products

for a number of end uses, including

coil, furniture foil and panel coatings,

wind energy and general industry, and

commercial transport.

“This proposed acquisition will strengthen

our position in the important coil coatings

market and fits well with our existing

business, allowing us to offer essential

solutions to our customers,” said AkzoNobel

CEO Ton Büchner.

The planned transaction is expected

to be completed in the second half of

2016, subject to regular consultation with

employee representatives and satisfaction

of certain closing conditions, including

receipt of required regulatory approval.

Audatex Abuntex introductory course

Audatex has announced that it will be

providing training on the Abuntex system in

the coming months.

The training will allow body repairers to

learn how to turn practical body shop repair

skills into professional comprehensive

vehicle damage assessments, using the

Abuntex system.

Other highlights of the 2-day introductory

course include gaining understanding

of how to use system features and

functionality to maximum effect; increasing

efficiency as a vehicle damage assessor /

estimator: attaining the skills required to

achieve your Abuntex Certification.

The course is ideal for Body Shop

Managers, Supervisors and Administrators,

but please note that in order for you to

successfully complete this course, you must

have Windows experience and knowledge.

For more information, visit the website

http://www.audatex.co.za/index.php/

training/estimating-solution-training

PAGE 52

Sherwin-Williams buys ValsparThe Sherwin-Williams Company and The Valspar

Corporation have announced that they have entered into

a definitive agreement under which Sherwin-Williams

will acquire Valspar for $113 per share in an all-cash

transaction, or an enterprise value of approximately

$11.3 billion.

The companies described themselves as having highly

complementary paint and coating offerings and that the

combination will enhance Sherwin-Williams’ position as a

premier global paints and coatings provider.

According to John Morikis, President and Chief Executive

Officer of The Sherwin-Williams Company Valspar is an

excellent strategic fit with Sherwin-Williams.

“The combination expands our brand portfolio and

customer relationships in North America, significantly

strengthens our Global Finishes business, and extends

our capabilities into new geographies and applications,

including a scale platform to grow in Asia-Pacific and

EMEA” he explains.

He went on to say that “Customers of both companies

will benefit from our increased product range, enhanced

technology and innovation capabilities, and the

transaction’s clearly defined cost synergies.”

The transaction is expected to close by the end of Q1

calendar year 2017, and is subject to the approval of

Valspar shareholders and customary closing conditions.

Under the terms of the merger agreement, in what

both companies believe to be the unlikely event that

divestitures are required of businesses totaling more than

$650 million of Valspar’s 2015 revenues, the transaction

price would be adjusted to $105 in cash per Valspar

share.

Sherwin-Williams would have the right to terminate the

transaction in the event that required divestitures exceed

$1.5 billion in 2015 revenues.

The combined company would remain based in Sherwin-

Williams’s headquarters in Cleveland, though it would

keep a “significant presence” in Minneapolis, Valspar’s

home.

The deal is expected to close by next March, pending

approval from Valspar’s shareholders and government

regulators.

The combined company is expected to have 58,000

employees and accelerate Sherwin-Williams’ growth

strategy by expanding its platform overseas, particularly

in Asia.

Festool & 3M To Join Forces Late last month, 3M and TTS Tooltechnic Systems,

the producer of Festool brand products, announced

a strategic collaboration to provide customers in the

global automotive collision repair industry “a new and

comprehensive surface preparation and finishing system.”

The collaboration will see the combination of 3M’s

best-in-class abrasives, global sales and distribution

capabilities with Festool-branded premium power tools,

dust extraction technologies and customer service.

The move will see 3M’s Automotive Aftermarket Division

(AAD) eventually become the exclusive supplier of 3M and

Festool Automotive Systems products in the automotive

aftermarket.

The new system is expected to launch in the U.S. and

Canada later in 2016, with additional countries to be

announced at a later date.

3M’s Automotive Aftermarket Division spans the globe,

serving the automotive collision repair industry through

more than 70 subsidiaries.

Festool has been a manufacturer of premium power tools

for 90 years, and boasts a reputation for innovation and

quality strategy by expanding its platform overseas,

particularly in Asia.

PAGE 53

AutoForum - March / April 2016BODYSHOP NEWS

Technical advice: Just blend it? - by Lori Lorenz

A while ago I had a discussion with a paint rep regarding

my concern about colour accuracy. He did not see it as

a problem and claimed that all colours in their system

were ‘blendable’. He even went on to say that there is no

longer a need to colour match or even make spray out

cards: “Just blend it!”

Needless to say that this was totally against my grain!

How rough can you get? What happened to quality and

workmanship?

If you take any pride in your work, this has most likely

provoked a similar reaction in you; however I was recently

rethinking my position and will explain why.

What sparked my rethink was the Lexus below with a

shocking mismatched colour.

The car was parked on the side of a road and whenever I

see a below-standard repair like this, I take pictures that

I later use for my training. It is not about pointing fingers,

but a lot can be learned from these cars.

Why did the paint flake off? What caused the rust? Why

did the mould fall off? Or in this case, why was the colour

not better matched? My first assumption was that it was

the crafty workmanship of a backyarder, but no, it was a

clean job except the colour was way out. As I pondered

over the car and took my photos, the owner walked over

wondering what my interest in his car was.

He told me that he bought the car new and it was never

involved in an accident. Of course my first thought was

that maybe his wife or his son damaged the car and had

it repaired somewhere quickly and cheaply behind the old

man’s back.

Possible, but I think that this car was damaged in transit

to the dealership when it was brand new. We all know that

these things can happen and understand the high repair

standard that is required, especially if it’s an upmarket car

like a Lexus.

The most likely scenario is that the car was repaired in

a quality repair facility - no cost was spared to make it

look brand new again and it most likely did. They used

a quality paint system and the spray painter took great

pride to match the colour so he could go edge to edge on

the bonnet and he even blended the door.

So what went wrong?

PAGE 54

Simply the colour faded and as it looks, the aftermarket

paint stood up better than the OEM paint.

There are a few things we can learn from this. One is the

blend in the door. It is slightly angled, but if the blend

was going diagonally across the door from the mirror to

the bottom right edge, it would have made the blend less

visible. Also the blend itself: is it really a blend or is the

door simply ¾ painted? Because the colour was near

perfect this was not visible, but now the poor blending

technique is revealed.

My apprentices learn blending with contrasting colours

and it is an exercise they enjoy.

What we are looking for is a wide and smooth transition. If

this technique was used to blend the Lexus door, it would

still not be visible to an untrained eye, even though the

paint has faded significantly.

But this brings me to the initial question, should we spend

the time to match the colour or simply ‘just blend it’?

There is a lot of skill involved to colour match

and technicians are rightly proud of a

perfect match, but is it really needed?

I don’t need to tell you how much time is needed to match

a colour. Unfortunately these efforts are wasted if the

colour is fading and it most likely will, so why do we make

such an effort to match it?

Consider the savings. I am not exaggerating when I

calculate that one hour could be saved per car if we

would ditch the colour matching process.

‘Spectro’ the car, no spray out card, spray it and blend

well with a wide transition area. If you are doing 20 cars

per week this could result in a massive saving per year,

which would look good on anyone’s balance sheet.

Of course there is no straight answer for whether we

should match or just blend. Each job is different – that’s

what makes our trade so interesting. But I think that I

need to swallow my pride and agree with this paint rep

that ‘just blend it’ has a lot of merit.

PAGE 55

Wide transition AreaDarkColour Light Colour

AutoForum - March / April 2016BODYSHOP NEWS

Noise in your workplace - Timur Dede

Noise induced hearing loss in workplaces represents a serious, but avoidable health issue. Australian BodyShop News cites figures of 16 500 successful workers’ compensation claims for industrial deafness involving permanent impairment due to noise, between July 2002 and June 2007, in Australia alone.

In that country between 2007-08, it amounted to $41 million in workers’ compensation payments and had an estimated total economic cost of around $240 million (Safe Work Australia 2009). The bottom line is that the issue has a negative impact on the economy at large and more so for a small business.

What is “noise”?

Noise in an occupational setting is regarded as unwanted or damaging sound. Noise is measured in decibels. A decibel, dB, is a unit of measure that indicates how loud a sound is. In refinish and smash repairs, employees may be exposed to noise whilst undertaking routine tasks such as grinding, sanding, spraying and hammering. As a general rule of thumb, if you need to raise your voice to talk with someone an arm’s length away, the noise level may be over the exposure standards.

According to the South African Department of Labour’s Environmental Regulations for Workplaces, 1987, under the section: “Noise and hearing conservation” the following points were highlighted as follows: 7. (1) This regulation shall apply to all employers (herein

referred to as employer) at a workplace where the equivalent noise level (equivalent sound pressure level) resulting from activities at such workplace, to which any person in such workplace is exposed, is 85 dB (A) or higher.

(2) Subject to the provisions of subregulations (3) and (4), no employer shall require or permit an employee to work in an environment in which he is exposed to an equivalent noise level equal to 85 dB(A) or higher.

(3) The employer shall reduce the equivalent noise level to below 85 dB(A) or, where this is not reasonably practicable, he shall reduce the level to as low as is reasonably practicable and take all reasonable steps to isolate the source of the noise acoustically.

(4) Where the equivalent noise level in any workplace cannot be reduced to below 85 dB(A), as contemplated in subregulation (3), the employer shall -

(a) demarcate the boundaries of all noise zones in such workplace by posting up notices to that effect in conspicuous places along such boundaries and at all entrances to and exits from any room where the whole of such room constitutes a noise zone; and

(b) prohibit any person from entering a noise zone unless such person wears hearing protectors.

Timur Dede is the Managing Director of Total Safety Consulting. He has over 10 years of experience in the field of Health, Safety and Environment (HSE). His experience has been gained across a number of senior roles within global manufacturing organisations such as General Electric and PPG. He has a degree in industrial engineering and engineering management as well as a diploma in occupational and environmental health.

PAGE 56

And further 9) The employer shall properly instruct any person who is

required to wear hearing protectors in the use of such protectors and inform him of noise zones where the wearing thereof is compulsory.

(10)The employer shall -(a)ensure that every employee employed in a noise zone is subjected to audiometric examinations conducted in accordance with section 7 of SABS 083, by an audiometrist approved by the chief inspector;

(b) keep records of the results of each audiometric examination and make such records available for inspection by an inspector if he so requires; and

(c) keep such records for a minimum period of 30 years after termination of employment: Provided that if the employer ceases activities all such records shall be forwarded to the regional director.

(11)In order to comply with the provisions of subregulation (4)(a), the employer shall obtain the services of an approved inspection authority, or an employee whose ability is verified by an approved inspection authority to ensure that noise zones are determined in accordance with section 4 of SABS 083.

What you should consider as a business owner?

The goal for businesses is to ensure that employees are not exposed to noise above the global exposure standards. The exposure standards are 85 decibels (85dB(A)) over an eight hour shift, or a peak noise level of 140 decibels (140dB(C)) at any time.

Table 1 outlines some common noise sources and their sound levels.

If your employees are required to use hearing protection, you should also arrange for hearing tests, otherwise known as audiometric tests, on a regular basis.

Testing should be conducted within three months of the worker commencing the work; and at least every two years.

Hearing damage and overexposure

Hearing damage is painless (unless exposed to high noise levels, for example an explosion) and invisible. Damage to the hearing system generally occurs over an extended period of time and affects your ability to understand conversations.

Signs that one has been overexposed to harmful noise levels include developing a buzzing/ringing sound in the ears. Another sign may be if the individual does not hear as well as they normally would until several hours after having left the noise location.

A number of common industrial chemicals, such as Toluene and Xylene found in solvents and solvent-based coatings, can also cause hearing loss themselves or intensify the effects of noise.

These chemicals are referred to as ototoxic. What is essential to keep in mind is that hearing damage cannot be reversed!

Minimise the risk

There are numerous ways to control the risk of noise exposure, including but not limited to:•Having your workplace assessed to identify noise levels and

employee exposure, as well as ototoxic chemical exposure•Ensuring that all employees working with ototoxic

substances and in areas where harmful noise levels exist, understand the risks and controls

• Isolating workers from noise sources where possible•Training your employees in the proper use, limitations and

care of personal protective equipment, such as ear plugs•Ensuring your employees’ hearing has been tested in

accordance with state legislation.

There are a number of free and extremely useful publications which outline how you can minimise the risk to your employees and your business. These publications are a great place to start.

Please Note: The material in this article is intended to provide you with general education and information to increase overall safety awareness associated with the storage and use of flammable liquids. It is not intended to cover all aspects of relevant legislation or your specific obligations, and should not be taken as legal or other expert advice or services.

No responsibility is accepted for any actions taken by readers of the above material which results in any liability, loss, injury or risk.

Sound Level (Db) Equivalent Noise

65 Normal Conversation

80 Hair Dryer

85 Smoke Alarm / Hand saw

90 Lawn Mower

95 Loud Crying / Circular saw

100 Jackhammer @ 10m

105 Chainsaw @1m

110 Siren @10m

115 Sandblasting / Rock Convcert

120 Threshold of pain

PAGE 57

AutoForum - March / April 2016D

IRE

CTO

RY

LIS

TIN

GDirectory

To advertise your listing in AutoForum Aftermarketplace Directory contact us on

0861 222 878 or email: [email protected] ELECTRICAL

Auto Cosmos - Electrolog Electronic Parts (Electrical) Catalogue 012 327 6210

Bosch Parts, Accessories & Batteries 011 651 9600

AAAS - Parts Incorporated Africa Automotive Components & Accessories 011 879 6000

AIR CONDITIONING

Highveld garage Equipment Air Conditioning Specialists 012 330 0540

Snap-on Equipment Diagnostics Equipment 0861 762 766

BODY REPAIR EQUIPMENT

Aer-O-Cure Spray Booths,Chassis Aligners, Compressors & Welding Equipment 011 444 6454

Allied Paint Solutions - Sikkens Automotive Paints 012 940 0381

BASF - glasurit Automotive Paints 012 681 9200

Hurricane Chassis Aligners, Compressors & Spray Booths 083 628 2288

CLEANING EQUIPMENT

Aer-O-Cure Pressure Washers & Vacuum Cleaners 011 444 6454

Highveld garage Equipment Pressure Washers & Vacuum Cleaners 012 330 0540

AAAS - NAPA Tools & garage Equipment 011 879 6000

DIAGNOSTIC EQUIPMENT

Aer-O-Cure Electronic Chassis Straighteners 011 444 6454

Beissbarth Wheel Alignment Equipment 011 651 9600

Bosch Diagnostic Equipment 011 651 9600

garage Trade Supplies Wheel Service Equipment and Diagnostics 011 908 5199

Highveld garage Equipment Engine Analyser & Diagnostic Scanners 012 330 0540

Leaderquip Wheel Alignment Equipment 011 334 1680

AAAS - Midas Diagnostic Tools & garage Equipment 011 879 6000

Snap-on Diagnostics Diagnostics Equipment 086 176 2766

Tenneco - Monroe Shock Absorber testers 011 574 5602

GARAGE EQUIPMENT & TOOLS

Aer-O-Cure Tools & garage Equipment 011 444 6454

Beissbarth Wheel Alignment Equipment 011 651 9600

Bosch Diagnostic Equipment 011 651 9600

garate Trade Supplies Tyre & Lifting Equipment & Tools 011 908 5199

Highveld garage Equipment Tyre & Lifting Equipment & Tools 012 330 0540

Hurricane Tools & garage Equipment 083 628 2288

Ital Machinery Brake & Clutch Machinery 011 483 3737

John Bean - Snap-on Equipment Wheel Service Equipment 086 176 2766

Leaderquip Tyre & Lifting Equipment & Tools 011 334 1680

AAAS - Midas Tools & garage Equipment 011 879 6000

PCL - AEI Workshop equipment & Tools 011 474 7480

Snap-on Tools Tools & garage Equipment 086 176 2766

PARTS MANUFACTURERS & DISTRIBUTORS

Alfa International Brake Drums, Discs, Linings & Pads. Clutches & Flywheels 011 608 0801/3

AUDI Parts genuine OE Parts 086 043 4838

Auto Magneto Alternators, Starter motors, electric & electronic parts 021 531 8144

Bosch Parts, Accessories & Batteries 011 651 9600

AAAS - Midas Aftermarket Parts & Accessories 011 879 6000

Mahle Engine parts, Filters & Thermal management 041 408 3598

AAAS - NAPA Aftermarket Parts & Accessories 011 879 6000

AAAS - Parts Incorporated Africa Automotive Components & Accessories 011 879 6000

Tenneco Shock Absorbers 011 574 5602

VW Parts genuine OE Parts 086 043 4737

ZF Lemforder genuine Replacement Parts 011 457 0000

SERVICES

Auto Cosmos - Electrolog Electronic Parts (Electrical) Catalogue 012 327 6210

Bosch Automotive Training Courses 011 651 9600

PAGE 58

Secure the future of your workshop!Bosch - your optimal workshop concept partner

Drive your business forward with Bosch through the automotive evolution and stay ahead of the pack. Bosch offers various workshop concept solutions meeting your individual needs. As a Bosch workshop concept partner you can offer your customer first class quality and you can profit from distinct advantages when partnering with Bosch:

Internationally recognised brand Distinctive corporate identity Effective marketing and advertising programme Customer retention programme Comprehensive technical support portfolio, including ESI[tronic], Bosch diagnostics, technical training, hotline and field support Quality automotive parts at competitive prices National Deal Partner support programme Fleet Program

Share the success of a strong brand in the workshop market, for more information, visit www.boschservice.co.za, or call Customer Careline 0861 267 247

*Terms and conditions apply

Secure the future of your workshop!Bosch - your optimal workshop concept partner

Drive your business forward with Bosch through the automotive evolution and stay ahead of the pack. Bosch offers various workshop concept solutions meeting your individual needs. As a Bosch workshop concept partner you can offer your customer first class quality and you can profit from distinct advantages when partnering with Bosch:

Internationally recognised brand Distinctive corporate identity Effective marketing and advertising programme Customer retention programme Comprehensive technical support portfolio, including ESI[tronic], Bosch diagnostics, technical training, hotline and field support Quality automotive parts at competitive prices National Deal Partner support programme Fleet Program

Share the success of a strong brand in the workshop market, for more information, visit www.boschservice.co.za, or call Customer Careline 0861 267 247

*Terms and conditions apply


PAGE 60GraphicWerx • AOC_Training_AutoForum_JN3161

For the full range visit: www.aerocure.co.za

Tel: +27 11 444 6454 • Fax: +27 11 444 5677 • e-Mail: [email protected] Bodyshop Equipment

Welding Equipment

Aer-o-cure (Pty) LTD • SADC Registered Manufacturer and Exporter. 8 Lees Street, Wynberg, 2090, Johannesburg, South Africa. PO Box 137 Strathavon, 2031

Personnel, the cornerstone of any business, drive a company and its development forward. In collision damage, it is the repair team’s skills, know-how and training that ensure safe, high-quality results. In the fast-moving automotive world, knowledge is often short-lived. Only continuous updates and training will ensure a secure repair shop staffed by trained and motivated individuals and Aer-o-cure is equipped and geared to deliver that training.

COURSES FOCUS ON EFFICIENT PRODUCT USE AND PROCEDURE INCLUDING:

• Tailoredcoursestosuityouandyourcompany• CoursesatAer-o-cure’sJHB-basedtrainingfacilityor on-sitetrainingatthecustomer’spremises• Specialisedtraininginsmallgroups(3-5people)• Awell-balancedmixoftheoryandpracticalexercises• Coursessuitableforrepairtechnicians,apprentices, trainees,bodyshopmanagers,owners,insurance assesorsoranyonethinkingofutilisingCar-o-liner’s rangeofequipment• Coursesareconcludedwithawritten/practicaltest.On passing,participantsareawardedacertificateofattendance forCar-O-LinerAcademy’sglobaldevelopmentprogramme.

Enhancing skills and productivity in the automotive refinishing industry.

Aer-o-cure’s mission is to lead the devel-opment of South Africa’s collision repair technicians, providing industry staff with enhanced knowledge and up-to-date repair methods, resulting in:

• Greater productivity• A higher level of repair quality• Increased profitability• Improved employee motivation • An incentive for every participating individual CONTACT US TODAY FOR TRAINING.

Certified training programmes for

AOC_Training_AutoForum_Nov 1 2015/11/06 8:48 AM

20160401 autoforum march / april 2016

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