autoforum july 2012

WWW.AUTOFORUM.CO.ZA July 2012

I N F O R M E D A N D I N N O V A T I V E

PAGE 37NEWS AFRICA

NEWS AFRICA

IN PARTNERSHIPWITH AUSTRALIANBODYSHOP NEWS

InsideCHECKED YOUR CORPORATE GOvERNANCE?

UNBRANDED, UNTRACEABLE & DANGEROUS

CATALYTIC CONvERTER SECTOR - STILL UNDER THREAT

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DAYTONA’S PUSH ON SUPER BRANDS

No Dent in Motor Industry Jobs

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AutoForum - July 2012

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July 2012

EDITOR: CLARE RUTKIEWICZ

CONTRIBUTORS:AUSTRALIAN BODYSHOP NEWS DAVE SCOTTROY COKAYNE COLIN WINDELLGRAHAm BUSH ROBERT KAISER ADVERTISING:GRANT WEST WARWICK ROBINSONC: 076 727 8161 C: 082 855 7750 T: 011 466 3733F: 086 627 1135 SImONE TREKI C: 082 411 4668

PRODUCTION: KAZ NEL

EmAIL: [email protected]

PUBLISHER:SWIFT PUBLICATIONS & OLYmPIC PARK TRADINGPOSTNET SUITE 174PRIVATE BAG X11HALFWAY HOUSE1684

Editorial There is a little relief in sight. The drop in the fuel price over June and July has certainly made me feel slightly less short of breath than I did in the first half of the year, but it has a long way to go be-fore we all start celebrating. If you are based in the Western Cape and have a bad habit of not paying fines or talking on your cell phone however, I would imagine you may soon be hyperventilating, with the news on how that province is planning on cracking down on serial traffic offenders and will not be issuing license renewals to holders of unpaid fines. The really good news however, is that July signals that we are on the downward slide towards the end of the year. Hold on tight for the rest of this bumpy 2012 ride.

Thank you to McLaren for our cover photo.

AutoForum has an ABC circulation of 12952 ABC (June - Dec 2011)

CONTENTSCover StoriesNo dent in motor industry jobs 14

Catalytic converter sector - still under threat 20

i Store for BMW 22

Checked your corporate governance? 48

Unbranded, untraceable & dangerous 58

Daytona’s push on super brands 59

58

56

36

14

16

News ForumDiesel engine exhaust fumes can cause the big C 12

No dent in motor industry jobs 14

International Engine of the Year Awards 2012 16

Langdon takes the helm at Federal Mogul aftermarket 18

Catalytic converter sector under threat 20

i Store for BMW 22

Ipsos Quality Awards 2012 24

US dealers sue Mahindra 26

BodyShop NewsMore support for competition-stimulating parts bill 40

Auto TrainingEngineering star 36

Auto SafteyNew EU Regulations on safety systems published 28

Driving under the influence …. of fatigue 30

Cars getting safer for pedestrians 32

School bus safety programme 34

Trade TalkHighlights of global and local industry news 06

59

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.

Advertisers Guide

I N F O R M E D A N D I N N O V A T I V E

Aer-O-Cure 38-39, OBC

Alfa International 29

AUDI Parts 31

Autocosmos/Electrolog 64

Bosch 19, IBC

BSE 25

Control Instruments / Gabriel 33

Drivelines 5

Federal mogul Champion 9

First National Battery 15

GmSA 11, 49, 55

Highveld Garage Equipment 51

Hofmann megaplan 17

Integrated marketing 53

Ital machinery 26,34

Leaderquip 41

mED 2-3

midas Group 23

mISA 62

motor merchandise 37

Partquip 27

Parts Incorporated / midas Group 35, 65

SABAT 47

Snap-on/John Bean 21, 57

Trade Fair Travel 30

Tuff Floors 63

Trysome 42-43

VW Parts 7

Wheelquip 13

Business ForumThe winds of change 44

Corporate governance: When last did you give it thought? 48

Misa supports Youth Rally 2012 Programme 51

Making trade shows work for you 52

Uncertain times call for better data 54

Commercial VehiclesGiving a key in exchange for acquiring a risk 56

Unbranded, untraceable & dangerous 58

Show TimeBrand boosting for Daytona 59

Automechanika 2012 and looking forward to JHB 2013 62

After-Marketplace DirectoryDirectory listings 66

New ReleasesLatest offerings of local products 64

AutoForum - July 2012Trade Talk AutoForum - July 2012 www.AutoForum.co.za

Audi Q7

Most sustainable The BMW Group has walked away with two honours at the recent SAM Group Sustainability Awards – earning itself Gold Class Status and the title Sector Leader, as it showed the best result among all vehicle makers.

SAM Group is headquartered in Zurich and rates compa-nies on their sustainability - this was the first ceremony held in Germany.

Michael Baldinger, CEO of SAM Group, commented: “The BMW Group is a leader in terms of innovation management and has demonstrated a clear commitment to reduc-ing negative environmental impact along the entire value chain.”

The company was named most sustainable auto company in the DowJones Sustainability Index for the seventh con-secutive year in 2011, and has for the past 10 years been listed in the FTSE4Good index, one of the most important indices for companies focusing on sustainable manage-ment. It also clinched the top spot last year in the vehicle makers category, in the CDP Global 500 Ranking.

Partinform NelspruitNelspruit hosted another very successful Partin-form show in June. In excess of 200 visitors were able to engage in one-on-one discussions with representatives from the Partinform brands, whilst enjoying light refreshments and the opportunity to win various prizes, based on their knowledge of the brands on show.

Tenneco celebrates 100th m shockTenneco, manufacturer of Monroe and Rancho shock ab-sorbers in SA, celebrated the production of its 100th million shock absorber in mid June.

The milestone shock was produced at the company’s St Truiden facility in Belgium, which is one of five Tenneco ride control plants in Western Europe. Over the last five years the site has enjoyed an investment of €20 million, the ma-jority of which was in the manufacturing plant.

Says Sandro Paparelli, Vice President and General Man-ager, Ride Control Europe: “St Truiden is a critical point in Tenneco’s global map. From here we provide advanced engineering for ride control applications worldwide, support the world’s vehicle manufacturers as they expand interna-tionally with common vehicle platforms designed in Europe and produce products and components for other Tenneco plants across the globe.”

The celebrations were attended by Flemish Minister-President, Kris Peeters, who commented: “I am proud that Tenneco’s most important innovations are developed in Flanders. It proves that Flemish pioneering craftsmanship is also recognised by major foreign companies. The transfor-mation of the automotive industry into an innovative and future-orientated mobility industry spearheads the Flemish government’s new industrial policy.”

PAGE 6

Volkswagen’s Economy Parts are an addition to the current range of parts

that maintain Volkswagen’s quality standard. They are specifically designed

for Volkswagens and Volkswagen Commercial Vehicles that are out of warranty

and are five years or older. For more information, please contact your nearest

participating Dealership or visit vw.co.za today.

Volkswagen Economy Parts. The intelligent choice for older Volkswagens.

Introducing Volkswagen’s Economy Parts range. The affordable way to keep your older Volkswagen a Volkswagen.

Visit vw.co.za and follow us on facebook.com/vwsa

*Part applicability dependant on chassis number. Prices are recommended retail inclusive of VAT & subject to change without notifi cation. Prices valid from 1 May 2012 to 1 December 2012. While stocks last.

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Front Brake DiscPart No.: JZW615301Beetle 2003 - 2007 Golf 4 1998 - 2006 Jetta 4 1999 - 2006 Price: R 412.52

Front Brake DiscPart No.: JZW615301AGolf 5 2004 - 2007 Caddy 2004 - 2007 Price: R 467.32

Front Brake DiscPart No.: JZW615301DBeetle 2003 - 2007 Golf 4 1998 - 2006 Jetta 4 1999 - 2006Polo 2003 - 2007 Price: R 439.71

WiperbladesPart No.: JZW998002GGolf 5 2006 - 2007 Price: R 221.66

WiperbladesPart No.: JZW998002HGolf 4 1998 - 2006 Jetta 4 1999 - 2006 Price: R 138.92

Starter Battery (72Ah)Part No.: JZW915105APassat 2001 - 2007Transporter 1999 - 2007Golf 4/5 1998 - 2007 Crafter 2006 - 2007Caddy 2004 - 2007Jetta 4 1999 - 2006LT 2003Polo 2003 - 2007Touran 2004 - 2007Price: R 1 026.00

Starter Battery (44Ah)Part No.: JZW915105CJetta 4 1999 - 2006 Caddy 2004 - 2007 Passat 2001 - 2007Touran 2004 - 2007Sharan 1999 - 2000 Transporter 1999 - 2004 Golf 4/5 1998 - 2007Polo 2003 - 2007 Price: R 658.05

Rear Brake PadsPart No.: JZW698451Caddy 2004 - 2007 Eos 2007 Golf 5 2004 - 2007 Passat 2001 - 2005 Price: R 571.79

Starter Battery (61Ah)Part No.: JZW915105Transporter 1999 - 2007Golf 4 1998 - 2007Jetta 4 1999 - 2006Passat 2001 - 2007Touran 2004 - 2007Caddy 2004 - 2007Beetle 2003 - 2005Polo 2005 - 2007Sharan 1999 - 2007Price: R 1 026.01

Front Brake PadsPart No.: JZW698151Golf 4/5 1998 - 2007Jetta 4 1999 - 2006 Polo 2003 - 2007Beetle 2003 - 2007Caddy 2004 - 2007 Price: R 399.00

Rear Shock AbsorberPart No.: JZW513025Beetle 2003 - 2007 Golf 1998 - 2006 Jetta 1999 - 2006 Price: R 700.96

Front Shock AbsorberPart No.: JZW413031AEos 2007 Golf 5 2004 - 2007 Passat 2006 - 2007 Price: R 1 187.95

Front Shock AbsorberPart No.: JZW413031BBeetle 2003 - 2007Jetta 4 1999 - 2006 Golf 4 1999 - 2006 Price: R 939.26

Rear Shock AbsorberPart No.: JZW513025EPolo 2003 - 2007 Price: R 364.80

Spark Plug (each)Part No.: JZW905603DBeetle 2003 - 2007 Golf 4/5 1998 - 2007 Jetta 4 1999 - 2006 Passat 2001 - 2007 Polo 2003 - 2007P rice: R 63.73

Front Brake PadsPart No.: JZW698151AGolf 4 1998 - 2001 Jetta 4 1999 - 2001 Polo 2003 - 2007 Price: R 636.12

49911 VW MBR 297x210 OPTION 01 V9.indd 1 2012/06/11 11:04 AM

Trade Talk AutoForum - July 2012 www.AutoForum.co.za

Veyance partners with local hose manufacturer Veyance Technologies Africa has announced that it has partnered with local automotive hose manufacturer, Ten-sile Rubber Hoses (Pty) Ltd, in an effort to support local industry. The latter is a BEE Level 4 company that employs over 45 South Africans on a permanent basis, and who are multi-skilled through in-house training.

As Paul van Zyl, Marketing Manager, Veyance Technologies Africa, explains: “We have been building a relationship with the company since 1989, and are proud to be associated with a quality-driven manufacturer who has a reputation for producing products of international standard, and support-ing local employment initiatives.”

The Pretoria-based company will provide Veyance with what is described as “a comprehensive, vertically-inte-grated suite of services, ranging from initial concept and design, right through to manufacture, test and supply.” The components are manufactured from the highest qual-ity rubber compounds, which are mixed at their modern compounding facility and will be based on Veyance Tech-nologies’ specification requirements. The product range includes the following;- Curved Reinforced and Straight Radiator Hoses- Braided Fuel Hoses- Flexible Radiator Hoses- Heater Hoses- Fuel Filler and Automotive Breather Hoses.

The products are ISO 9001 approved, and an average of 20 000 automotive hose units are currently manufactured to customer requirements on a monthly basis.

Updated TradeXchange TransUnion Information Solutions recently announced that its dealer-to-dealer product – TradeXchange – can now be used for all vehicle types, including passenger, light, me-dium and heavy commercial vehicles, as well as bikes. Other new benefits for dealers include faster, easier to use drop down menus for uploading vehicle details – such as colour, accessories and factory-fitted options details to glass, tyre, exterior, interior and mechanical condition; a section that allows dealers to record details of any repairs that are required; and the ability to load up to 10 images per vehicle. The product also boasts new tools to assist sellers to set realistic prices on vehicles, which includes the availability of a three-month trading history on a specific vehicle make and derivative. Low volume sales vehicles, which do not have trade and retail values included in the Auto Dealers’ Guide, can now be loaded with estimated values. But it’s not just sellers that will be delighted with the updates - buyers also benefit. The additional information available on each vehicle listed means that it’s now easier to accurately assess the condition of the vehicles and evaluate their reserve price in relation to current market conditions. They can also place a bid, print out details and view the associated Verification Report - all on one screen.

Tensile Rubber Hoses is set to manufacture Goodyear-branded rubber hoses for the local automotive markets.

The Veyance ‘Buy Local, Support Local’ initiative supports local rubber technology companies.

PAGE 8

WE’VE PUT IT TO THE TESTNOW WE EXPECT YOU TO

www.federalmogul.comCustomer care number: 0800 555 832

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Champion oil fi lters are designed to provide the best engine protection, thanks to the extra pleating and the thicker and stronger fi ltration paper. We’ve measured our oil fi lter against an aftermarket competitor and Champion came out tops. Not surprising, as all Champion oil fi lters meet original equipment specifi cations. We’ve got the dirt.

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AutoForum - July 2012Trade Talk AutoForum - July 2012 www.AutoForum.co.za

BotY winners announcedLast month saw the 2012 installation of the Sewells Group Businessman of the Year (BotY) banquet. The awards hon-oured three motor dealers as South Africa’s top achievers with best practice performances in small, medium and large categories.

Large category: Johan Coetzee - Land Rover East Rand. Medium category: Schalk Fourie - NTT Toyota Mokopane.Small category: Bertus van Vuuren - New Vaal Motors Bethlehem.

“Most Improved Performance Group” was awarded to Jaen van Aardt of Datnis Nissan King William’s Town.

nAs Tania Barlow, MD of Sewells SA, commented: “Our final-ists – especially the winners – have shown their ability in providing exemplary service to their motoring customers in every aspect of their businesses. They continually prove that to succeed in a highly competitive environment and against the background of a testing economy, one has to be able to meet and exceed the highest expectations of everyone’s mo-toring needs. These fine businessmen do that continually and reach outstanding levels of delivery across the five traditional departments (new cars, used cars, workshops and F&I – financial services). Each year these finalists and the compa-nies they run show proof that can equal and even better the best in the world.”

The winners’ group at the Sewells Businessman of the Year banquet included (from left) John Templeton, of Sewells; Derik Scorer, Chairman of NADA; Brian Riley, MD of WesBank; Jaen

van Aardt, of Datnis Nissan King William’s Town (Most Improved PG dealer); Tania Barlow, MD of Sewells Group SA; Johan Coetzee, Land Rover East Rand, winner large dealer category;

and Schalk Fourie, NTT Toyota Mokopane, winner medium dealer category.

PAGE 10


The latest global news

Diesel engine exhaust fumes can cause the big C

Last month, the International Agency for Research on Cancer (IARC), part of the

World Health Organisation (WHO), classified diesel engine exhaust as carcinogenic to hu-mans (Group 1).

It’s not the first time we have been told that such fumes are dangerous, of course. In 1988, IARC classified diesel exhaust as ‘probably carcinogenic to humans (Group 2A)’, and after that, an advisory group that reviews and recommends future priorities for the research centre, recommended further studies on diesel exhaust as a high priority.

In March, the results of a large scale study by the US National Cancer Institute and the National Institute for Occupational Safety and Health on the occupational exposure to such emissions in underground miners, showed an increased risk of death from lung cancer in exposed workers. The scientific evidence was reviewed thoroughly and the overall conclusion was that there was sufficient evidence in hu-mans for the carcinogenicity of diesel exhaust. The findings showed that diesel exhaust is a cause of lung cancer and also noted a posi-tive association (therefore limited conclusive evidence) with an increased risk of bladder cancer.

Petrol exhaust is still deemed “possibly carcinogenic to humans (Group 2B)” - which remains unchanged from the previous evalua-tion in 1989.

The reality is that large populations are exposed to diesel exhaust in everyday life, whether through their occupation or through the ambient air, with sources including motor vehicle exhausts, as well as exhausts from other diesel engines, and from other modes of transport including diesel trains and ships, and from power generators.

Increasing environmental concerns over the past two decades have resulted in regulatory action in North America, Europe and elsewhere with successively tighter emission standards for both diesel and petrol engines. The

researchers highlight that there is a strong interplay between standards and technol-ogy – standards drive technology and new technology enables more stringent standards. For diesel engines, changes required to lower associated risks in diesel fuel include marked decreases in sulphur content, changes in en-gine design to burn diesel fuel more efficiently and reductions in emissions through exhaust control technology.

The big question remains, however, “how much do all of these changes actually lower the health risks?” and “how much exposure increases the risk?” Realistically it will take time for existing fuels and vehicles without these modifications to be replaced, particularly in less developed countries, such as ours.

Dr Kurt Straif, Head of the IARC Monographs Program, commented: “The main studies that led to this conclusion were in highly exposed workers. However, we have learned from other carcinogens, such as radon, that initial studies showing a risk in heavily exposed occupational groups were followed by positive findings for the general population. Therefore actions to reduce exposures should encompass workers and the general population.”

IARC Director, Dr Christopher Wild, agrees: “While IARC’s remit is to establish the evi-dence-base for regulatory decisions at national and international level, today’s conclusion

PAGE 12

sends a strong signal that public health action is warrant-ed. This emphasis is needed globally, including among the more vulnerable populations in developing countries where new technology and protective measures may otherwise take many years to be adopted.”

So what does that mean for our industry?News agency Bloomberg cited diesel engine makers and car companies in the northern hemisphere as being quick to point out that emissions from trucks and buses have been slashed by more than 95% for nitrogen oxides, particulate and sulphur emissions. Despite this, however, Christopher Portier, IARC working group Chairman said: “Given the additional health impacts from diesel particu-lates, exposure to this mixture of chemicals should be reduced worldwide.”

Other reactions to the findings include that of the European Automobile Manufacturers’ Association, which expressed surprise at the announcement and said that the industry would “have to study the findings in all their details.”The New York Times quoted the Medical Director of the American Cancer Society, Dr Otis Brawley, as praising the ruling, saying the society had “for a long time had con-cerns about diesel”.

“I don’t think it’s bad to have a diesel car,” Brawley added. “I don’t think it’s good to breathe its exhaust. I’m not con-cerned about people who walk past a diesel vehicle, I’m a little concerned about people like toll collectors, and I’m very concerned about people like miners, who work where exhaust is concentrated.”

So, what can you do?• Retrofitengineswithanexhaustfiltrationdevicetocap-

ture DPM before it enters the workplace.• Locatetheexhaustpipesothatdieselfumesaredi-

rected away from the operator and nearby workers. • Useacatalyticconvertertoreducecarbonmonoxide,

aldehydes, and hydrocarbons in diesel fumes. These devices must be used with low sulphur fuels. Using con-verters with high-sulphur diesel fuels may do more harm than good to air quality.

• Ventilate.Openroofvents,doorsandwindows,rooffans, or other mechanical systems can be used to move fresh air through work areas.

• Regularmaintenanceofdieselenginesisessentialto keep exhaust emissions down. Follow the manu-facturer’s recommended maintenance schedule and procedures.

• Turnoffengineswhenvehiclesarestoppedformorethan a few minutes. Idling wastes fuel and increases diesel emissions.

• Witholdervehicles,useelectricstartingaidssuchasblock heaters to warm the engine, avoid difficulty start-ing, and thereby reduce diesel emissions.

• Userespiratorsasaninterimmeasuretocontrolexpo-sure to diesel emissions.

AutoForum - July 2012NEWS FORUM AutoForum - July 2012

The downgrading of the motor industry’s export projections for this year to 270 000

from 300 000 units because of the economic problems in Europe, have failed so far to dent job creation in the industry.

Naamsa reports that a total of 509 new jobs were created in the motor manufacturing industry in the first quarter of this year, despite the poorer vehicle export prospects. Total industry employment improved by 1.8% to 28 656 jobs in the last week of March, from the 28 147 jobs at the end of December.

According to Naamsa, two major vehicle manufacturers recruited new workers during the first quarter, while employment trends at the other plants remained stable. An average of 28 292 people were employed by the indus-try last year.

The downward revision in exports could have been expected to result in stable employment levels and possibly even some job shed-ding. Naamsa has highlighted the growing importance of Africa as a new vehicle export destination, with new vehicle exports into the continent increasing year-on-year by 58.6% to 67 442 units last year, up from 42 533 units in 2010. By contrast, new vehicle exports to Europe increased last year by 7.9% to 97 882 units from 90 734 units in 2010.

South Africa’s automotive industry exported a total of 272 457 vehicles to 80 countries last year. Exports to the Eurozone accounted for 35.9% of the total, while exports destined for African countries represented 24.8% of the total. Vehicle exports to Africa have grown by

74% in the past four years - from 38 767 units in 2007, to 67 442 units last year.

In the same four-year period, vehicle exports to Europe have rocketed by 214% - from 31 191 units in 2007, to 97 882 units last year.

Nico Vermeulen, Naamsa’s Executive Direc-tor, said despite intense competition in African markets from Chinese and Indian vehicle importers and second hand vehicles supplied from Japan, the anticipated relatively high eco-nomic growth projections for Africa “should support further growth in SA vehicle exports to African countries, while the recession in Europe is likely to impact negatively on export sales into that region”.

Vermeulen stressed that export sales would remain a function of the performance and direction of global markets. This led to the downward revision of Naamsa’s export forecast. He added that vehicle exports into Europe were likely to soften, because of the recession and debt crisis in the Eurozone. However, Vermeulen said projected higher exports to African countries and factoring in the contribution of the new Ford global com-pact vehicle programme and the new BMW 3 Series export programme over the balance of the year, should enable the industry to achieve export numbers similar to or slightly below those recorded last year.

“Light commercial vehicle export sales in par-ticular should register strong growth,” he said.Ford’s new global compact vehicle programme involves the new Ranger pick-up.

No dent in motor industry jobs - Roy Cokayne

Roy Cokayne is a senior financial reporter for Business Report.PAGE 14

AutoForum - July 2012NEWS FORUM

The results of the 2012 International Engine of the Year Awards were announced in the

middle of last month, at Engine Expo in Stutt-gart, Germany. Voted tops by an internation-al jury of some of the world’s most respected motoring journalists, Ford’s 999 cc three-cyl-inder turbo engine was named the overall winner of the International Engine of the Year Award.

This is the second win for the automaker, with last year’s honour going to the sub-1-litre winner, Fiat’s two-cylinder ‘Twin Air’ unit. As Dean Slavnich, Editor of Engine Technology International and Co-Chairman of the Interna-tional Engine of the Year Awards, comments: “This was a dominant win by the Ford engine and it is important to remember that the overall engine of the year award is not linked to en-gine capacity or any other criteria beyond the excellence of its engineering and the degree to which it delivers its capabilities in a vehicle and within the broader marketplace. That the small capacity engines continue to impress the most in overall terms, even against the larger, higher performance engines, says a great deal about how the automotive industry has developed in recent years.”

The Ford engine was also named ‘Best New Engine’ and won the ‘Sub 1-litre’ category, while GM’s ‘Range Extender’, the 1.4-litre internal combustion engine that sits within the 2012 European Car of the Year, the Chevrolet Volt, took the title ‘Green Engine of the Year’.

In the last of the non-capacity specific classes, Ferrari once again reigned victorious with its 570 bhp, 4.5-litre V8 engine as featured in the 458 Italia. The engine scooped both ‘Best Per-formance Engine’ and ‘Above 4-litre’ category trophies for the second successive year.

BMW claimed the top spot in four category wins, including the ‘3-litre to 4-litre’ category for its 4-litre V8 found in the M3; the ‘2.5-litre to 3-litre’ category for its 3-litre bi-turbo six-cylinder petrol engine, found in the 1 Series M coupe, 335is and Z4 35is; the ‘1.8-litre to 2-litre’ category for its 2-litre twin turbo four-cylinder petrol engine found across its range; and in the ‘1.4-litre to 1.8-litre’ category for its 1.6-litre four-cylinder turbo engine co-devel-oped with PSA Peugeot Citroën, which was the co-recipient of the same award.

Audi scooped the ‘2-litre to 2.5-litre’ category for its 2.5-litre five-cylinder turbo engine found

International Engine of the Year Awards 2012

PAGE 16

in the Audi TT RS and RS3 Sportback, while Volkswagen’s much-admired 1.4-litre TSI Twincharger engine, once again defended its crown in the ‘1-litre to 1.4-litre’ category.

The category winners are:

Best New Engine 2012Ford 999cc three-cylinder turbo (Ford Focus (100 ps, 125 ps))

Best Green Engine 2012GM 1.4-litre range extender (Chevrolet Volt, Opel Ampera (150 ps))

Best Performance Engine 2012Ferrari 4.5-litre V8 (458 Italia, 458 Spider (570 ps))

Above 4-litreFerrari 4.5-litre V8 (458 Italia (570 bhp))

3-litre to 4-litreBMW 4-litre V8 (M3 Coupe, M3 Convertible (420 ps))

2.5-litre to 3-litreBMW 3-litre bi-turbo six-cylinder gasoline (1 Series M coupe, 335is, Z4 35is (340 ps))

2-litre to 2.5-litreAudi 2.5-litre five-cylinder turbo (Audi TT RS, RS3 Sport-back (340 ps))

1.8-litre to 2-litreBMW 2-litre twin-turbo four-cylinder petrol (125i (218 ps), 320i (184 ps), 328i (245 ps), 520i (184 ps), 528i (245 ps), Z4 20i (184 ps), Z4 sDrive 28i, (245 ps), X1 20i, X3 20i (184 ps), X1 28i (245 ps))

1.4-litre to 1.8-litreBMW-PSA 1.6-litre turbo petrol (Mini Cooper S, Clubman Cooper S, Countryman Cooper S, Coupe/Roadster Cooper S (184 ps), Mini Cooper Works, Clubman Cooper Works, Coupe/Roadster Cooper Works (211 ps), Peugeot 207, 207cc, 208, 308, 308cc, 3008, 508, 5008 (156 ps), 308 GTI (200 ps), RCZ (156 ps, 200 ps), Citroen DS3, C4 Picasso/Grand Picasso, C5, DS5 (156 ps), DS5 (200 ps), DS3 Rac-ing (202 ps), DS4 (163 ps), DS4 Racing (200 ps))

1-litre to 1.4-litreVolkswagen 1.4-litre TSI Twincharger (VW Polo (180 ps), Beetle, Golf, Golf Plus, Golf Cabriolet, Scirocco, Eos, Jetta, Tiguan (160 ps), Sharan (150 ps), Touran/Cross Touran (140 ps, 170 ps), Passat CNG, Touran/Cross Touran CNG (150 ps), Audi A1 (185 ps), Audi A3 (180 ps), Seat Ibiza FR, Al-hambra (150 ps), Cupra (180 ps), Skoda Fabia RS (180 ps))

Sub 1-litreFord 999cc three-cylinder turbo (Ford Focus (100 ps, 125 ps))

PAGE 17


A familiar face to those in the industry, Tim Langdon has made the move over to Fed-

eral Mogul Aftermarket as the new Managing Director. It’s quite a challenge to come into a large organisation such as Federal Mogul and on meeting with Tim, our first questions were around what, if anything, he was planning on doing differently. He explained that his history at Schaeffler prepared him to step into anoth-er complex matrix organisation, and to deal with FM’s structural change of splitting into OES and Aftermarket divisions. “We believe that this will allow for greater growth in the aftermarket, but we will be watching the ef-fects closely.”

“Realistically, I have no plans on sweeping away the well implemented plans that already exist within the company,” he said.

“We have very close links to our customers and distribution is working very well.” FM’s well used adage of getting to “the guy who throws away the box” remains in place and small changes primarily driven by the market will naturally occur.

“We also want to optimise our portfolios with existing distributors and customers,” which obviously includes the recent entry into the local filter market. High fuel prices mean lower mileage, with the direct translation into longer service intervals, so introducing its worldwide product lines previously not marketed in SA, should only grow the company’s marketshare. “Federal Mogul has been in the filter business for a long time, and it is an opportunity to ex-tend customer satisfaction. The focus remains getting the customer what he wants, when he wants it.”

Langdon takes the helm at Federal Mogul Aftermarket

PAGE 18


Dark clouds are hanging over South Africa’s multi-billion Rand export-

orientated catalytic converter indus-try. Its future is under threat because of lack of clarity about long-term govern-ment policy and support for the indus-try, despite changes to be made to the Automotive Production and Develop-ment Programme (APDP) to provide ad-ditional support to “vulnerable prod-ucts”, including catalytic converters.

The APDP, which will be implemented in January 2013, will initially provide the industry with the same level of sup-port as the current MIDP. However, this support will be slashed after two years, down to the standard APDP production incentives.

The industry, which supports 5 200 direct jobs and a further 30 000 indirect jobs, has for many years been SA’s top

automotive component export by value. However, catalytic converter exports were worth R16.5bn last year, com-pared to R20bn in 2007.

Catalytic Converter Interest Group (CCIG) Executive Director, Ken Dewar, said there was a 10-year time horizon for new vehicle models, but there had been five years of policy uncertainty while the transition from the MIDP to the APDP was debated. This uncertainty had resulted in many new catalytic con-verter platforms being lost to countries in Eastern Europe, Mexico and other low cost countries.

Dewar said there had also been a de-cline in catalytic converter exports be-cause of depressed global new vehicle sales, caused by the global economic crisis. He said the industry had partially recovered from the substantial dip after

2008 but was still operating at about 70% of industry capacity.

Projections by industry players, based on long-term orders, were that without any significant new interventions, the in-dustry would be down to less than 50% of the 2007/08 peak by 2016, he said.“We are living on current programmes that run out after 2014/15 that are not being replaced. We will not get business back to where it was while there is this lack of clarity.”

Dewar said the industry could disinvest from SA and move to other countries. In terms of the new APDP, the support for vulnerable sectors was effectively at the same level as the current MIDP.But Dewar said this support declined 5% a year after the second year, to the standard APDP production incentives,

Catalytic converter sector under threat - Roy Cokayne

PAGE 20

without any clear alternative currently in place to cover it.

“The incentives the catalytic converter industry needs are really logistical sup-port assistance for such things as ship-ping, finance costs and cargo duties because we are more than 5 000 miles and six weeks from the major markets.”

Dewar explained that SA catalytic converter prices were competitive ex-works, but not when delivered into OEM facilities in Europe, without govern-ment support measures. He believes the Trade and Industry Department has assisted the industry as much as it is able, because it had a finite pool of duty funds from which to draw.

The structure of the APDP had resulted in a change of emphasis away from high material value export components, which was threatening many industries, not only catalytic converters, he said.Dewar continued that the catalytic con-verter industry was looking at initiatives to keep the local industry viable. “We

are trying to find some common ground within the beneficiation industry and have been talking to the Department of Mineral Resources to find a model that will work for the industry.”

Sidwell Medupe, a DTI spokesman, confirmed a package of enhanced support had been put in place for those industries considered “vulnerable” in the transition from the MIDP to the APDP.Medupe said the initial list of these subsectors/prod-ucts was agreed on in December, following an extensive stakeholder consultation process.

“The submissions received have been analysed and appropriate recommen-dations have been passed on to ITAC [International Trade Administration

Commission] for implementation. These will be announced as part of the guide-line publication. However, the relevant

industry bodies have been made aware of all progress in this regard. The process is now closed and no new sub-missions are being considered.”

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Later this month the BMW Group will officially open the first BMW i Store

worldwide in London, which the au-tomaker describes as offering “a com-pletely new brand experience focused on sustainable mobility”. The auto marque sees the move as its response to changing customer needs as well as the fact that sustainable mobility is be-coming an increasingly important part of the modern urban lifestyle.

The store was previewed in June, and BMW Board Member Ian Robertson commented: “BMW i Park Lane marks a completely new approach. Situated next to BMW Park Lane and MINI Park Lane, it gives people a perfect opportunity

to learn more about electromobility and get close to our future electric and plug-in hybrid BMW i vehicles. This is a further demonstration of our commit-ment to electromobility.”

The preview was also used to give at-tendees a sneak peak at the new BMW i3 Concept produced with sustainable natural material interior, and the group’s first fully-electric series production vehicle, which will be available to EU customers from late 2013 and the BMW i8 in 2014.

Some of the other highlights of the preview event were the launch of the i Wallbox charger which promises to

make home-charging both easy and efficient; the hint that new customer contact points were in the pipeline (in-cluding mobile sales forces and online purchasing channels); and the new i strategy, that Robertson believes “ad-dresses people’s e-mobility concerns with a holistic 360° approach”.

BMW’s i strategy aims to make elec-tric car owners feel more supported with products that include: assistance services; public charging; home charg-ing; and flexible mobility solutions, such as loans of a conventionally-powered BMW for occasional longer distance travel needs.

i Store for BMW

PAGE 22

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What once were known as the Synovate Quality Awards – now

the Ipsos Quality Awards – have an-nounced the latest top performing car brands for 2012.

The awards, which have been in exis-tence for some eight years, recognise outstanding achievers in the following categories: Passenger Vehicle (PC) Purchasing Experience; PC Servicing Experience; Light Commercial Vehicle (LCV) Purchasing Experience; and LCV Servicing Experience. The awards are based on interviews with customers who purchased or serviced a vehicle between January and December 2011, and the study makes up part of the largest survey of South African vehicle

owners. The survey questionnaire cov-ers all elements of both the sales and service process, from the appearance and staff at the dealership itself to the financing or pricing aspects of the sale or service and then to the post-sale or post-service follow up. Complaint resolution is also a key part of the questionnaire for customers who do report problems.

As Richard Rice, Head of Loyalty Re-search at Ipsos South Africa explains: “There is much to be said of the effort that manufacturers and dealerships have put in over the last year to improve their customers’ experience. There have been significant advances in technol-ogy, facilities, systems and financing

processes. All of these factors play a big role in the overall customer experi-ence, as well as the product itself of course. However, given the complex-ity of the human interaction during the sales and service transactions, the brands that have focused on the more ‘personal’ elements are the ones that have done particularly well.”

Audi was named the top brand in the PC Purchasing Experience category for the second year, with a scoring of 96%. According to Ipsos, the top three in the category were very close in terms of score and the category yielded a high average of 93.5%. This is up from 90% in 2011. The ‘lowest’ score fell just short of 90%. Second place was taken by

Ipsos Quality Awards 2012

PC Purchasing Experience

89.8

90.8

91.6

91.6

92.1

92.2

92.5

93.6

93.6

94.8

95.0

96.0

70 76 82 88 94 100

CJD

Peugeot

Nissan

Ford

Opel

Mazda

Renault

Toyota

Mercedes-Benz

Chevrolet

Volkswagen

Audi

LCV Purchasing Experience

88.4

91.4

91.8

92.0

92.8

92.9

70.0 76.0 82.0 88.0 94.0 100.0

Nissan

Mazda

Ford

Chevrolet

Toyota

Isuzu

PC Servicing Experience

73.378.5

79.280.0

81.381.9

83.685.2

85.986.5

87.287.587.687.988.0

60.0 66.0 72.0 78.0 84.0 90.0

PeugeotVolvoFord

RenaultCJD

MazdaNissanToyota

Mercedes-BenzMitsubishi

AudiOpel

VolkswagenLexus

Chevrolet

LCV Servicing Experience

81.6

84.0

84.1

84.4

87.2

87.5

88.0

60.0 66.0 72.0 78.0 84.0 90.0

Ford

Mitsubishi

Mazda

Nissan

Toyota

Isuzu

Chevrolet

PAGE 24

VW (95%) and Chevrolet (94.8%). Rice continues: “The top performers in this cat-egory include a nice mix of brands – both mass and luxury vehicles are represented. This reflects very nicely on the automo-tive industry, because it shows uncondi-tional treatment regardless of the ‘type’ of consumer”.

Chevrolet (88%) topped the PC Servicing Experience category, followed closely by Lexus (87.9%), VW (87.6%), Opel (87.5%), Audi (87.2%), Mitsubishi (86.5%) and Mercedes-Benz (85.9%). “With a category average of 84.8%, there is a huge oppor-tunity for new ground to be broken and a chance for manufacturers to differentiate themselves in the market based on the quality of their service,” comments Rice.

The LCV Purchasing Experience category resulted in five Gold Awards and an aver-age of 91.7%, up from 88.0% last year. Top performers include Isuzu (92.9%), Toyota (92.8%), Chevrolet (92%), Ford (91.8%) and Mazda (91.4%). Rice believes this category has “some catching up to do” to get it to the level of PC Purchasing Experience.

The top achievers for the category of LCV Servicing Experience were Chevrolet (88%), Isuzu (87.5%) and Toyota (87.2%). This category’s average score is up from 80% in 2011 to 85% in 2012. “As is the case with passenger vehicles, manufac-turers need to break through these thresh-old scores and differentiate themselves based on their unique consumer focus and understanding.”

“To conclude, we must compliment the manufacturers on an excellent perfor-mance this year and improvement across all of the categories,” says Rice. “This is especially impressive given that the pressure for sales during the recession has relaxed somewhat and the drive for happy customers is still such a priority. With such high and close scores, there is an opportunity for all the OEMs to push the envelope and set a new standard within the market… the key to which lies in understanding customers to an even greater extent.”

The Ipsos survey represents approximate-ly 83% of all new vehicles sold in the PC market and 98% of the LCV market.

PAGE 25

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AutoForum - July 2012NEWS FORUMNEWS FORUM

Car dealers from across the US filed a law-suit last month accusing the Indian truck

manufacturer Mahindra & Mahindra and its US counterpart of fraud, misrepresentation, and conspiracy.

The lawsuit alleges that Mahindra duped hundreds of US auto dealers and walked away with more than $60 million in cash and trade secrets. It continues that the Indian manufacturer then reneged on its promises.

According to attorney Michael Diaz, the Managing Partner of Diaz Reus & Targ, who leads the plaintiffs’ legal team: “Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the US market. However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the US and elsewhere in clear violation of their commitments.” Dealers across the country paid initial dealership fees, undertook marketing on Mahindra’s behalf, built Mahindra showrooms, display platforms and showcases, and hired additional per-sonnel, all at Mahindra’s urging, according to the lawsuit. “Through their false representations, the defendants lured the US dealers into making investments and promoting Mahindra’s brand name,” says Diaz. “Mahindra is going to learn that trying to outsmart the dealers was a serious

mistake, as we will aggressively seek justice for our clients.” According to the lawsuit, Mahindra began laying the groundwork to enter the US market and build a nationwide dealer network in 2004. In a high-profile move to court the US dealers, Arun Jaura, a senior Mahindra executive, attended an Atlanta automotive show in 2007 where he repeatedly proclaimed, “I love America!”

It was here that, according to the suit, Mahindra executives presented promotional videos that showcased its vehicles’ durability, purportedly showing them being driven on differ-ent terrains. Jaura also provided a set time-line for introduc-ing Mahindra’s four-door truck to the US market at the end of 2008, and its two-door truck and SUV in the third quarter of 2009.

The automaker’s pitch was highly successful, and ulti-mately, it obtained $9.5 million in fees from the dealers, according to the lawsuit. It continues that through a barrage of press releases, sales pitches, advertisements, and news articles orchestrated by Mahindra, Jaura’s comments were subsequently used to entice more US dealers to agree to carry Mahindra’s vehicles. The dealers believe that while over the next two years Mahindra continued to reassure them that its certification process was on target, it was in fact delaying submitting its documentation to regulators as a pretext for terminating its agreements.

US dealers sue Mahindra

PAGE 26


New eU RegUlatioNs oN safety systems pUblished

InterRegs, the international automotive regu-lations organisation, has published a new

EC Regulation No. 661/2009 concerning “type approval requirements for the general safety of motor vehicles, their trailers and systems, components and separate technical units in-tended therefor”. More commonly known as the General Safety Regulation or GSR, it re-quires the fitment of a number of “new tech-nologies”, including the mandatory fitment of advanced emergency braking systems (AEBS) and lane departure warning systems (LDWS) to vehicles of Categories M2, M3, (passenger vehicles) N2 and N3 (goods carriers) in the Eu-ropean Union.

The detailed technical requirements for these “new technology” systems are not contained within the General Safety Regulation itself, but within separate “Implementing Regulations” for each of the “new technology” systems. After many months of discussion and negotiation, the Implement-ing Regulations

covering the detailed technical requirements for advanced emergency braking systems (AEBS), EU Regulation No. 347/2012, and for lane departure warning systems (LDWS), EU Regulation No. 351/2012, were both recently published in the Official Journal.

EU Regulation No. 347/2012 specifies the technical requirements and test procedures for AEBS that detect the possibility of a collision with a preceding vehicle, warn the driver by a combination of optical, acoustic or hap-tic signals and, if the driver takes no action, automatically apply the vehicle’s brakes. The Regulation specifies requirements on the system operation and specifies two test procedures to check the performance of the system -

Automotive safety news

AutoSafety

AUTO

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PAGE 28

one with the vehicle approaching a moving target and one with the vehicle approaching a stationary target. The Regu-lation specifies two “Levels” of limit values on the timing of the warnings and on the vehicle speed reduction to be achieved in each of these tests, with the “Level 2” require-ments being more stringent. To allow time for the develop-ment of suitable systems for lighter vehicles, vehicles with hydraulic braking systems and vehicles with mechanical rear suspension systems, the “Level 1” limits are only ap-plied to M3 Category vehicles, N2 Category vehicles with a GVW greater than 8 000 kg and N3 Category vehicles that are equipped with pneumatic or air/hydraulic braking systems and with pneumatic rear axle suspension systems.

The fitment of AEBS meeting the “Level 1” performance requirements becomes mandatory from 1 November 2013 for new types of vehicle and from 1 November 2015 for all new vehicles. The fitment of AEBS meeting the “Level 2” performance requirements becomes mandatory from 1 November 2016 for new types of vehicle and 1 Novem-ber 2018 for all new vehicles.

EU Regulation No. 351/2012 specifies the technical requirements and test procedures for lane departure warning systems (LDWS) that detect unintentional drift of the vehicle out of its travel lane and warn the driver by a combination of optical, acoustic or haptic signals. The Regulation specifies requirements on the system operation, specifies test procedures to confirm the performance of the system and includes examples of the lanes markings that the system must be able to detect.

The fitment of LDWS becomes mandatory from 1 Novem-ber 2013 for new types of vehicle and from 1 November 2015 for all new vehicles.

Both regulations specify a list of vehicles that are exempt from the fitment of AEBS and LDWS.

PAGE 29

Bike ABS best for new ridersA new study has found that antilock brakes cut crashes for motorcyclists of all abilities, but the benefit is especially large for those new to riding or to a particular bike.

The Highway Loss Data Institute (HLDI) compared the rate at which collision claims were filed for motorcycles equipped with antilock braking systems (ABS) with the rate for motorcycles without ABS, and found the former were 30% less likely to have a collision claim within the first 90 days of a policy and 19% less likely after that.

Preventing wheels from locking up is crucial on a motorcy-cle. On a car, a lockup might result in a skid, but on a mo-torcycle, it often means a loss of balance and a potentially deadly fall. ABS prevents lockup by automatically reducing brake pressure if it detects that a wheel is about to stop rotating, then increasing it again after traction is restored.

AutoForum - July 2012AUTO SAFETY

The Guild of Experienced Motorists (GEM), a UK-based independent

road safety organisation that was es-tablished in 1932, has launched a new three-minute video to raise awareness of road safety issues – especially the effects of driver fatigue. The video high-lights research that indicates drivers are most tired between 3am and 5am and also between 2pm and 4pm, with an increase in fatigue-related crashes re-ported in the UK during these times.

David Williams, CEO of GEM Motoring Assist, comments: “The time of day that you drive can be one of the biggest causes of fatigue and many may be unaware that the afternoon, rather than first thing in the morning, is when you will be most tired. Even when you just want to get home, it is crucial you don’t rush the journey, as having a proper break could prevent an extremely

dangerous or fatal situation. This is particularly important for profes-sional drivers such as those cover-ing long distances or doing shift work late at night.”

The video includes a number of tips to help stave off fatigue during long journeys, such as avoiding even small amounts of alcohol before any journey; taking regular and proper breaks; using caffeinated drinks at least 20 minutes before need-ing the energy boost as they take that amount of time to become effective; avoiding heavy meals; and more.

Williams continues: “Even the slightest feeling of fatigue can impair your ability to concentrate and focus and, in some cases, can have fatal consequences when behind the wheel. We’ve created

this video to encourage drivers to embark on long journeys only when they are at their most comfortable and prepared.”

You can view the video – and allow your staff to do so too – at www.motoringas-sist.com/fatigue.

dRiviNg UNdeR the iNflUeNce …. of fatigUe

PAGE 30

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AutoForum - July 2012AUTO SAFETY

According to the results of the latest Euro NCAP testing, new cars are

becoming increasingly safer for pedes-trians. In the latest set of Euro results, the BMW 3 Series, Hyundai i30, Mazda CX-5 and Peugeot 208 received the safety organisation’s maximum five star rating.

The new BMW 3 Series achieved a commendable 78% in pedestrian pro-tection, which the car safety perfor-mance assessment programme explains is a really good result for a compact executive car with no active bonnet. The Peugeot 208, however, scored 61% for pedestrian protection, only just clearing the 2012 five star threshold of 60%. The Mazda CX-5 scored 64%, while the Hyundai i30 achieved 67%. In both side impact tests - the side barrier and the pole test - the Mazda CX-5 scored maximum points, the only car of the latest release to do so. By contrast, the i30 showed weak protection of the chest in the side pole test, although its score for child occupant protection was the highest in this round of tests.

Both the five star rated Mazda CX-5 and the BMW 3 Series offer an Au-tonomous Emergency Braking System (AEBs), which act independently to stop the car, or to reduce its speed, if a collision is imminent. Dr Michiel van

Ratingen, Secretary General of Euro NCAP explains: “If all cars were fitted with AEB systems, many crashes could be mitigated or avoided altogether. The Mazda CX-5, which has AEB fit-ted largely as standard equipment in Europe, is therefore a good example for other manufacturers to follow as Euro NCAP intends to assess AEB in future testing procedures.”

AEB certainly seems to have safety testing organisations’ backing – and not just for pedestrian safety. In April, the UK’s Motor Insurance Repair Research Centre – Thatcham - reiterated its belief in AEB as a critical element in address-ing that country’s whiplash epidemic, at the Lyons Davidson International Whiplash Conference.

Speaking alongside some of the world’s leading experts on the topic, Head of Thatcham Research, Matthew Avery, told delegates that engineering holds the key, through the continued introduc-tion and availability of Advanced Driver Assistance Systems (ADAS) to prevent and mitigate accidents. Whilst a wide range of ADAS systems are already providing many motorists with an ad-ditional level of safety, it is Autonomous Emergency Braking (AEB) systems in particular that are integral in preventing whiplash. Avery pointed to real world

international claims data demonstrating a claims frequency reduction of both personal injury and accident damage of more than 25% in a year-long study based on Volvo’s AEB system ‘City Safety’. Other international studies reveal a similar trend for crash reduction associated with AEB fitment and depen-dent upon the functionality of individual systems.

Thatcham Research is working on a number of initiatives both with insurers and vehicle manufacturers to drive this forward, these include the development of AEB testing protocols to measure system performance both for car–to–car and car–to–pedestrian impact sce-narios. The organisation is currently proposing these test procedures to Euro NCAP, for potential inclusion within their vehicle safety ratings by 2014.

But it was not just AEB that has im-proved the outlook for pedestrians. Audi received the coveted Euro NCAP Ad-vanced reward for its ‘ PreSense Front Plus’ technology. Available on the Audi A6, which achieved five stars in 2011, the system works by virtue of two long range radars positioned at the front of the car. These detect vehicles and other obstacles (such as pedestrians) ahead that the car is likely to hit unless action is taken by the driver.

caRs gettiNg safeR foR pedestRiaNs

PAGE 32

Gabriel Advertorial AF July 2012 NEW FA.indd 1 2012/06/29 2:58 PM


Ctrack has launched an initiative and sponsorship pro-gramme aimed at improving school bus safety, which

will see five buses being fitted with tracking systems, all supported by Ctrack service contracts.

The first school to have the system installed is Belve-dere School on the East Rand of Johannesburg. Principal Hannes du Plessis explains: “Improving safety is our main objective and this new system sponsored by Ctrack will give us online visibility of our school buses and enable us to monitor the driving habits and behaviour of our school bus drivers. The information that will be provided by the Ctrack systems will help the school proactively improve the safety of transporting our children to and from school. The risk of theft and hi-jacking is also very real, and the Ctrack systems provide advanced early warning that would help in the fast recovery and safe guarding of the buses and, more importantly, the precious cargo inside. Another safety im-provement is the “crash alert” which, if activated at a severe level, will ensure that Ctrack automatically dispatch ER24 ambulances to the site.”

Ctrack explains that the system will also solve other trans-port related problems and improve efficiencies by monitor-ing excessive idling, cutting fuel costs and maintenance requirements and improving tyre life. The school will also be able to predict, with a good level of certainty, if a bus is running late and where the bus is located at any time. The system also includes an ICE portable GPS/GSM location and communication solution, which incorporates a panic alarm with programmed numbers, in case of emergencies.

school bUs safety pRogRamme

PAGE 34

AUTO SAFETY

CH382 2011 motopart engine.indd 1 2011/07/20 3:56 PM

AutoForum - July 2012 AutoForum - July 2012

eNgiNeeRiNg staR

Goodyear took an opportunity in early June to highlight its Eastern Cape apprentice

school, with the recent achievements of one of its star students.

Everton Fischer, who has finished his training as an Instrumentation Technician, is one of just two people to have qualified in this niche in the engineering field within the Eastern Cape in the past few years – both of whom trained through Goodyear’s apprentice school.

According to Plant Engineer Titch Booth, the company closed its original school in 1995 after government withdrew funding for appren-tice programmes, but reopened after noting the resulting nationwide shortage of critical industry skills. “We needed electronic and in-strument mechanicians at Goodyear’s factory in Uitenhage, but there were none to be found and no suitable courses were available either. We realised in 2008 that we would have to pro-vide our own training. This group of candidates is the first to have successfully passed their trade tests.”

“Everton is an exceptional talent, developed and nourished by Goodyear. We are proud of his achievements and pleased to have him on

board in a permanent position from this year. Not only did he pass his trade test certificate after three years instead of the usual four, but he also achieved the highest marks in the country. What’s more, although he was required to have an N3 in order to attempt his trade test, he studied in the evenings after work and successfully went all the way to an N6, obtaining first class passes in many sub-jects along the way!”

“These achievements are all the more remark-able because Everton and the other successful candidate, Pheiliswa Kohliso, were the only two apprentices registered outside Gauteng and KwaZulu-Natal. This underscores the serious shortage in the Eastern Cape. There is simply nobody offering instrument mechani-cian training, other than Goodyear.”

But what exactly does an Instrumentation Technician do on a day-to-day basis? Fischer describes his job as “making sure machines are properly calibrated and running as they should”. Sounds simple enough, but consider-ing the number and complexity of machines in use at this large tyre manufacturing facility, this is certainly no easy task.

Automotive training news

AutoTrainingAU

TO T

RAIN

ING

Goodyear Instrument Technician Everton Fischer is

one of only a handful to qualify in South Africa recently.

PAGE 36

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AutoForum - July 2012BODYSHOP NEWS

BODY

SHOP

NEW

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moRe sUppoRt foR competitioN-stimUlatiNg paRts bill

A US bill entitled “Promoting Automotive Repair, Trade and Sales (PARTS) Act,”

which was initiated in 2009, seems to be gain-ing supporters. According to the North Ameri-can country’s Quality Parts Coalition (QPC), the proposed legislation maintains customer’s right to benefit from a competitive auto re-placement parts industry.

The QPC comments: “American drivers cur-rently have access to alternative auto replace-ment parts that can save them between 26 to 50% when repairing their cars after an accident, but car companies are trying to force consumers to buy their parts only and eliminate the competition.”

“Car companies have been acquiring US design patents on exterior auto repair parts – such as hoods, bumper covers and mir-rors – and enforcing them against independent suppliers who have been selling these more af-fordable and quality alternative parts for more than 60 years. This means less competition, which could cost drivers an additional $1.5 billion annually.”

According to the QPC, the new Act if made law, would stop the automakers from growing a parts “monopoly”, by reducing the period

during which they can enforce their design patents against alternative suppliers. The cur-rent laws allow protection for 14 years, while the new bill would like it to be reduced to 2.5 years. To prepare to enter the market, the al-ternative parts industry would be permitted to manufacture, test, market and distribute parts without infringing on the design patents during the 2.5-year period.

“If enacted, this new bill would not only save consumers money, but it would also protect jobs nationwide,” the QPC explains. “The auto repair parts industry (in the US) employs tens of thousands of workers in jobs ranging from manufacturing to distribution to repair. More than 40 000 collision repair shops carry alternative repair parts that contribute to quicker repairs, getting consumers back on the road faster.”

Eileen Sottile, Executive Director of the QPC, added: “The Quality Parts Coalition applauds the new bill co-sponsors for fighting for motor-ists’ rights when it comes to repairing the cars, especially during these tough economic times. We’re urging Congress to pass this bill to stop car companies from growing their profits at the expense of budget-conscious consumers and the independent auto repair parts industry.”

PAGE 40

www.leaderquip.co.za [email protected] 17 Rosettenville Rd Village Main Johannesburg, South Africa Tel. +27 (0)11 334 1680 Fax +27 (0)11 334 1694 Jan +27 (0)83 252 1920 Jose +27 (0)83 450 6063

EVERY INDUSTRY HAS A LEADER


PAGE 42

With the winds of change having blown through the halls of power,

we can only hope these will bring posi-tive results – certainly in the case of the Transport Ministry our new incumbent, Minister Ben Martins, has a massive load on his shoulders.

Transport is the lifeblood of the country and it will take not only application and dedication, but a genuine interest in the task to untangle the ball of string it has become. We wish him well.

Against the backdrop of a still shaky Europe, it is possibly surprising the local auto industry continues to gain ground – evidenced by eight or more new model launches (excluding deriva-tives) in the past month. Not the least of these was an aggressive approach from Mercedes-Benz with its new M-Class, launched into – still – one of the fastest growing segments of the market.

Even though the German automaker is still not releasing detailed sales figures, aggregate industry sales had improved by 8 604 units or 20.7% to 50 229

vehicles from 41 625 units in May last year, substantially above the growth rate in industry total sales of 9.4% for the first five months of the year.

Overall, out of the total detailed (disag-gregated) reported industry sales of 47 717 vehicles (excluding MBSA), 90.3 % or 43 089 units represented dealer sales, 4.3% represented sales to the vehicle rental industry, 3.8% to industry corporate fleet sales and 1.6% sales to Government. From a seasonal perspective, sales to car rental com-panies should improve from June 2012 onwards as the car rental industry starts to re-fleet.

The year-on-year growth momentum in May new car sales improved, rising to its best level in the past eight months, with year-to-date new car sales 11.3% ahead of the corresponding five months of 2011. New car sales during May 2012 recorded the highest daily selling rate since June 2007.

Including estimates for MBSA commer-cial vehicle sales by segment – sales of

industry new light commercial vehicles, bakkies and mini buses at 12 907 units during May 2012 reflected an increase of 2 287 units or 21.5% compared to the 10 620 light commercial vehicle sales during the corresponding month last year.

Sales of vehicles in the medium and heavy truck segments of the industry at an estimated 881 and 1 621 units, re-spectively, had recorded an increase of 135 units or 18.1%, in the case of me-dium commercial vehicles, and a rise of 183 units or 12.7%, in the case of heavy trucks and buses, compared to the corresponding month last year. Most manufacturers in these sectors reported strong order books going forward.

Rising sales in the commercial vehicle sector is always a good sign of busi-ness confidence – something sorely needed as cost of living pressures continue to mount.

“The increase of 20.7% year-on-year, and 17.9% up on April provide a mis-leading view on the growth rate of the

The winds of change - Colin Windell

AutoForum - July 2012BusinessForum Business insight

Colin Windell is the Editor of Fleet Magazine.PAGE 44

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Bosch brake pads are manu-factured using the latest design, premium quality materials, modern manufacturing technology and are designed to provide maximum safety under all driving conditions. The pads offer complete reliability, with a highly stable friction-coef-ficient and high wear resistance. What’s more, Bosch also has a comprehensive range of disc brake pads covering most makes for the automotive aftermarket.

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industry,” says Malcolm Gauld, GMSA’s Vice President Sales and Marketing. “Total sales of 50 228 units were slightly below our expectations, but still pro-vided a welcome boost to year-on-year growth. The industry total for the first five months stands at 228 070 vehicles for a gain of 9.4% on the same period last year. May was the 30th succes-sive month that the motor industry has experienced year-on-year growth.”

“May saw strong support at dealer level with 43 088 of total sales delivered through the dealer channel, a good indicator of buyer participation in the market. Passenger vehicles accounted

for 34 820 sales, up 20.8% on May last year. Light commercial vehicles contrib-uted 12 907 units to the total to show a gain of 21.5% on May last year. This number provides an indication of posi-tive activity in the business sector, but is also indicative of the inventory position in the market.”

“There was significant new model activ-ity in the market during May together with a high level of promotional activity that will have supported sales. There is a strong accent on affordable vehicles at this time with excellent value propo-sitions for customers. An example of this is the repositioning of the Chevrolet Spark, now a locally produced model for GMSA, with significant price reduc-tions announced with the localisation of this model.” (See also AutoForum June issue.)

“Looking ahead we see no firm basis to increase volume forecasts for the year. Year-on-year sales are approaching the upper limit of those forecasts but this may not be sustainable. High fuel costs and pressure on the Rand are factors

that will likely impact on the market in the months to come.”

“The budget sector of the motor industry has grown significantly over the past few years. It remains fuelled by increasing pressure on living costs and lingering economic uncertainty. We believe that the market will remain the main driver for passenger vehicle sales going forward,” says Dr Johan van Zyl, President and CEO of TSAM.

“The passenger car market in May 2012 performed above expectation. From the perspective of the seasonal pattern of demand for new passenger cars in

South Africa, May is usually relatively quiet. The month recorded the highest selling rate of new cars per day since June 2007. It continued a slow but steady improvement in the underlying momentum in demand that has been evident in the first months of 2012,” says Mike Glendinning, Director: Sales and Marketing, Volkswagen Group South Africa.

“The more robust than expected performance of demand for new pas-senger cars in the first half of 2012 is, however, not fully supported by other key economic indicators. GDP growth has disappointed, reflecting an improve-ment of only 2.7% seasonally adjusted and annualised during the first quarter of the year. Manufacturing production in March 2012 decreased by 2.7% com-pared with March 2011.

“Despite these developments the consumer demand side of the economy continues performing relatively well. This is reflected not only in the perfor-mance of demand for new passenger cars, but also in retail sales which in real

terms increased by 6.8% year-on-year in March 2012. It was also supported by ongoing growth in demand for instal-ment sales finance, which in April grew to 12.5% annualised, the highest rate of growth since January 2009,” added Glendinning.

Exports of South African produced motor vehicles, including MBSA export sales data, during May 2012 at 22 620 vehicles registered an improvement of 560 units or 2.5 % compared to the 22 060 vehicles exported in May last year. Industry export sales were expected to improve over the balance of the year as the Ford global compact vehicle export

programme and the BMW new 3 series export volumes were ramped up. The industry’s export performance, however, will remain a function of the direction of the global economy.

Vehicle exports into Europe are likely to continue under pressure as a result of the recession and debt crisis in the Eurozone.

Factors that will support the domestic market include the ongoing improve-ment in the financial position of con-sumers, historically low interest rates, continuing improvement in vehicle affordability in real terms, the highly competitive trading environment and new model introductions.

The recent sharp depreciation in the exchange rate is likely to result in pre-emptive buying over the next few months as consumers seek to purchase vehicles to avoid the possible impact of the lower exchange rate on new vehicle prices.

The increase of 20.7% year-on-year, and 17.9% up on April provide a

misleading view on the growth rate of the industry

PAGE 46


Corporate governance: When last did you give it thought? - Robert Kaiser

Most businesspeople have heard about the King III Report on Cor-

porate Governance, but actually read-ing the report may not have topped the must read list of the owners and man-agers of many small and medium sized concerns. Why would that be? Prob-ably because there is a perception that issues of corporate governance apply to large entities that are large employ-ers and where it is essential that the rules of behaviour and the principles of accountability and responsibility for the way the entity is run, are properly de-fined and followed.

This perception is of course way off the mark. Although the King III Report is probably aimed at larger entities, the principle of sound corporate gover-nance lies at the heart of the sound and effective management of every busi-ness. Small and medium businesses should not merely rely on their auditors to deal with issues that may be regard-ed as matters of corporate governance; remember that this is not strictly the function of an external auditor (process and risk identification being an internal audit issue) and whatever an auditor finds in terms of possible neglect in issues affecting corporate governance is nearly always history, being in respect of a review period rather than the pres-ent. It has already happened and to rec-tify any issues highlighted in an external auditor’s report may not compensate

for losses or liabilities that may already have been incurred.

Fundamental to ensuring that principles of sound corporate governance are established and maintained in any busi-ness is the need to take note of risks to which the business may be exposed in its daily operations and to take the ap-propriate steps to avoid or manage risk areas effectively. Here are some practi-cal examples of what to consider:

1. Records: Hard copy and electronicWhether they are hard copy or elec-tronic, sound record keeping is an area of the utmost importance for any business. Do you have a well-classified and reliable record keeping system that enables you to access records quickly and efficiently when required? More importantly, do you have backup re-cords available? Are hard copy records scanned and filed on an electronic filing system and do you have arrangements for offsite storage of records? If there were to be a disaster such as a fire or flooding on your premises, would you be at risk of losing your records, which could be a crippling blow to the business?

Although there will always be hard copy records to be kept, business today is increasingly being conducted electroni-cally and this could be a major risk area if your systems are not up to scratch.

Backups of not only documents, but also email correspondence, is essential. Do you have sufficient backup capac-ity on your computer? How much of your records are disseminated on the hard drives of individual computers and not stored centrally on a network server? Do you have offsite backup of all electronic records? Depending on the size and nature of a business, offsite backups can be done electronically on an online basis to a service provider, or discs could be fetched by a service provider on a daily basis for offsite stor-age. Whatever solution is appropriate, neglecting to maintain a proper backup system for business records could be disastrous. Letting an employee or manager take a backup disc home is neither effective nor wise.

2. Financial Administration and Controls

It may be appropriate to review your financial administration to evaluate the effectiveness of your systems and ar-rangements. When last did you check on the signing powers in respect of your business accounts with your bank? Are changes to update the authorisa-tions perhaps necessary? In a time when most payments are by electronic funds transfer (EFT), are you sure that the authority to release payments are in order and correct? It may well be that staff changes occur in the business and that, although new authorisations have

Robert Kaiser has been intimately involved in the motor industry for the past 25 years. He established Retail Motor Consultants in 2002, a consultancy providing relationship management, marketing and staff recruitment services as well as apprenticeship management programmes and through an associated

company, unique Black Economic Empowerment transformation programmes for both large and SME businesses.PAGE 48

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been undertaken to accommodate such changes, are you sure that all previ-ous and not invalid authorisations have been deleted?

Although EFT has become the most utilised method of payment, believe it or not, there are still businesses that pay their accounts by cheque and actu-ally mail cheques to creditors using ordinary mail! During the past months I have personally witnessed cases where cheques with five and six figure values are committed to the ordinary postal channels, unregistered, which payments (as could be expected) never reached creditors, as the cheques were stolen in the mail and fraudulently deposited through the banking system. To mail cheques is asking for trouble. EFT pay-ment facilities are widely available and if done correctly, are safer. There is no reason why any business today should use cheques to make payments. If, however, it is unavoidable and personal delivery or collection is not possible, then at least reduce the risk of fraud by using a dependable courier service for the delivery.

3. ProcurementTo give someone an order book is like giving them a blank cheque book. An order number given to a supplier raises a liability on the issuer for the worth of the goods ordered. A business cannot disclaim liability for orders issued in error for the reason that the person who issued the order was not authorised to do so. In law, it is accepted that a per-son who issues a purchase order in the name of a business is duly authorised to do so. The supplier to who an order

has been issued has no way of discern-ing whether such person has been duly authorised to do so or not.

Who carries the order book in your business and is that person authorised to issue purchase orders on behalf of your business? Is there a process in which orders issued are verified by another member of management? Once delivered, is delivery properly recorded and matched with the correspond-ing purchase order to ensure that the goods/services as ordered were actually received? The fact that purchase orders are increasingly issued electronically increases the need for vigilance against possible abuse.

What about your supplier list? When last have you checked that the relation-ship between your business and its suppliers is sound and that there are no “cosy” relationships between your and their staff that could lead to abuse - which could take many forms? Think about the process as it applies in your business and the risk areas that need to be reviewed from time to time.

4. Compliance with applicable legislation and regulations

There is a plethora of different legisla-tion and regulations that govern business and a thorough review of com-pliance with applicable legislation by the business must be undertaken from time to time. Some examples of legislation affecting most businesses are occupa-tional health and safety and workmen’s compensation issues, which, if neglect-ed, could raise serious liability issues for any business. This is especially true in

the retail motor industry, where the risk of accidents in workshops is higher than in other establishments. If employees are not registered for workmen’s com-pensation and levies are not paid, the employer could be held liable for any cost associated with injuries on duty.

5. InsuranceInsurance is like any other product or service; you generally get what you pay for. Grudge purchase as it may be, insurance cover is vital and the extent of cover for damage and liability needs to be reviewed regularly to ensure that it has kept pace with any changes in the business environment. For workshops, defective workmanship cover is an item sometimes overlooked. With the consumer protection legislation what it is nowadays, one cannot afford not to ensure that the business risks are adequately covered. Insofar as expen-sive equipment is concerned, look for adequate replacement value cover. Consult a knowledgeable and profes-sional broker who can provide you with the best possible advice.

The pointers discussed here are by no means a comprehensive list of issues that should form part of an ongoing agenda to ensure that governance issues and business risks are prop-erly taken into account. It is so easy to neglect these matters when having to cope with the ongoing pressure of daily business activities and realising how expensive oversight of such issues could be.

PAGE 50

Misa supports Youth Rally2012 Programme

FEDUSA Vice President of finance and CEO of MISA, Dana de Villiers

launched the Youth Month Campaign at Hoerskool De Burger, in Bergbrom, at the beginning of June. The theme of the campaign is“This Is Your Future - What will you do to create a better future for us all?”

The pupils and staff were addressed by Vic van Vuuren, Director of Interna-tional Labour Organisation Southern African Office, who described interna-tional and local labour trends before introducing the assembly to Minister in the Presidency for National Planning, Trevor Manual.

After an enthusiastic welcome, the learners were enthralled by Minister Manual’s description of Government’s efforts to create an interactive com-munication platform via social media

networks – such as Facebook. He encouraged learners to be more aware of and to participate in their future, by expressing their opinions via the Gov-ernment’s social media networks.

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I was privileged to attend a hardware trade show recently in Johannesburg.

Over the past thirty odd years I have at-tended many of these types of shows, and I have to say that this rated as one of the best. It all started with an exciting and dynamic invitatiaon process, with a ‘teaser’ campaign that started about three months prior to the event. Signifi-cantly, the invitation targeted specific customers in person – not by company.

The hall was full, with no empty stands and yet there was adequate ‘aisle space’. The flooring was comfortable, which is very important when you con-sider how many hours your prospects and customers have to trudge around looking for something new and exciting. For the most part exhibitors were sleek and professional in both their presenta-tion and stand appearance, however, there were some that ‘missed the boat’ and I fear went back to their offices the next day and reported that it ‘was a waste of time’.

Exhibiting on trade shows can be very expensive, time consuming and de-manding, so it’s really important to get as much from them as possible. Most companies have a brand worth protect-ing, and its visual identity is a huge part of that. This remains the case at a live event – any old furniture and a fuchsia

coloured carpet shouldn’t suddenly be-come acceptable. Such events may be one of the few times a year that you have a physical presence in the real world, and whereby you can meet your customers and decision-makers face to face. With this in mind, investing in pro-fessional stand design and customisa-tion makes a lot more financial sense. Begin with a brief and a blank piece of paper, and then work out what you want to achieve, and just as important-ly, what will your customers and poten-tial customers want to experience at your stand.

We often talk about short print runs helping relevancy. Making postcards specifically, or tailoring your business cards to the trade show you are about to attend helps you to stand out and get noticed. The same should go for when you are exhibiting – marketing materials shouldn’t be left over from a different exhibition – the money you save handing out the leftovers may well be negated by the customers who take their business to someone with a more relevant offering. Make sure everything you hand out is fresh, current and tar-geted to its recipient.

Some display stands pop out from a mile away, even if they are tiny – be-cause they look vibrant, or clinical or

crazy or fun – what matters is that they support the company brand, and appeal to the type of customers you want to engage with.

Some prospects walk up to a stand and ask “what are your show specials?” You need to decide if discounts and specials are part of your events plan and strat-egy, and if they are not you can still be generous in other ways. Give people some time, listen, ask them some ques-tions and find out a little about them. If a prospect leaves your stand with a firm idea in mind that might benefit their business it is far more powerful than a discount flyer or another pen. The best ‘gift’ I received at this show was a memory stick (dongle?) from a cement manufacturer (my family shared out the pens and key rings). Of course, by investing the time in finding out more about your customers, and using that information in your future marketing, retailing and product planning, you are getting out even more than they are.So what works best at a trade show? This one is simple – the best way to learn what works well at any specific show is to see for yourself. Look at every stand (both the busy ones and the quiet ones), and speak to the teams working there. Here are my five top tips for any exhibitor, bearing in mind that in

Making trade shows work for you - Graham Bush

Graham Bush is one of Southern Africa’s leading retail gurus, and over the past 30 years has inspired thousands of businesspeople. He has a relaxed style, and along with his humour delivers powerful and motivational talks and

presentations. www.thebushkitchen.co.zaPAGE 52

my history of retail I have been on both sides of the show stand.

1) PlanningSpend months preparing and defining your goals. Then develop a strategy. Send a pre-show postcard, email or news release to clients and media who’ll be there. Set up appointments and create networking opportunities. Plan to create specialised, eye-catching marketing materials and put a huge, two-word headline on it. The idea is to get attendees to stop. Think of your marketing materials as “bait for fishing in the aisles”.

2) SignageEnsure that you make your signage as focused as your overall trade-show approach. Your backdrop should be simple and concise – five or six words to tell your story; something that people cruising by will get quickly. Think about designing double-sided business cards for the event. Include contact info and a photo on one side, with a list of benefits /products on the other.

3) Stand LocationWhere you position yourself is crucial. Ideally a corner, an island or a ‘penin-sula’ is the most ideal situation because of traffic flow and visibility. And don’t sit. Sitting behind an exhibit sends the message that you’re not interested or aggressive. People will just keep on walking. 4) NetworkMake the most of networking, but don’t spread yourself too thin. A lot of people try to gather as many business cards as they can, however, they’d be much better off really connecting with five or 10 people. Don’t stay anchored to your stand. Designate people to man it while senior staff work the hall. Find your prospects and invite them to your stand, reach out to them, don’t rely on them taking the time to walk by and pop in to your stand. Networking also involves following up when the show is over. A trade show is only as good as the business it generates, so don’t stash that stack of business cards in a to-do-later file. Call, email or send a

handwritten note as soon as you can, at most within the first week after the show. Wait too long and you’ve lost them.

5) EvaluateYou must have a ‘post mortem’ after the show with everyone concerned. What worked, and what didn’t? Did you achieve your objectives, and if not, why not? As I mentioned, shows cost a lot of money so it is vital to focus on results – unless you are one of those Blue Chip companies that just want to ‘fly the flag’ as a tax concession?

Trade shows still continue to be big business for all businesses. According to The Center for Exhibition Industry Research (CEIR), business-to-business spending for trade shows is third to advertising and promotion. In a world of websites, emails, and voice mails, trade shows offer one of the true opportuni-ties to build relationships with face-to-face contact. Something every business can use a little more of.

PAGE 53


BUSI

NES

S FO

RUM

Uncertain times call for better data

In June, automotive market intelligence com-pany RGT Smart, released a statement to

the press in which it reported that the local in-dustry’s uncertainty regarding prospects for remainder of the year is placing players at sig-nificant risk of making incorrect decisions. CEO Paul De Vantier is quoted as saying that both importers and exporters are at the mercy of both the general global uncertainty and the Eurozone crisis. “The vast majority of cars sold in South Africa are imported, which means supply chains are long. Importers need to make decisions now based on what they believe they are going to sell in six-months’ time. In the current climate, they face the very real risk of shipping in large quantities of vehicles or components that may not sell if the car market in South Africa turns negative – a potentially disastrous scenario for them.” It’s for this reason that the sector is more reli-ant on accurate data and forecasts, as well as accurate and insightful customer service experience data, than ever before.

“Industry players also need to provide ex-ceptional service in order to keep customers loyal.” De Vantier says he is also seeing a significant increase in interest for information and data amongst local companies looking to expand into Africa.

According to RGT Smart’s outlook for local vehicle sales for the remainder of 2012, growth levels are expected to taper off from current levels, with single digit growth expected. “We are forecasting growth of around 6% for 2012. This should be seen in the context that a num-ber of other markets, including retail and hous-ing, have turned negative.” De Vantier believes some of the recent strong growth in the vehicle market could be due to consumers buying ahead and taking advantage of the reduction in real car prices over the last few years.

Paul De Vantier

PAGE 54

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giviNg a key iN exchaNge foR acqUiRiNg a Risk - Dave Scott

Whatever happened to a cash deal? It seems a ‘cash deal’ belongs to the pre-

vious century, while now use of an asset has taken over from ownership. Now it’s all about the package and not the truck. That’s exactly what happened when Crossmoor Transport & Plant Hire took delivery of 30 new MAN TGS WW 26.440 truck tractors – Crossmoor was

handed the keys to the fleet to use for three years and MAN Truck & Bus South Africa ac-quired the risk.

Let’s define the risk. This R30 million (or more) deal includes a 4-year 600 000 km warranty and a ‘pre-negotiated’, guaranteed buy-back after three years or 450 000 km, whichever

Dave Scott is a member of the S.A. Guild of Motoring Journalists, and is a monthly contributor to the press on transport and trucking related

subjects. In 2002 and 2003 Dave Scott was the S.A. Guild of Motoring Journalists winner of the category ‘Business Motoring’. As a member of the S.A. Institute of Tribology he takes a keen interest in the application of lubricants to road transport maintenance and the cost of ownership.

His key writing focus is on fleet management including the technology of trucks and road transport.

Key handover – Bruce Dickson, Deputy CEO MAN Truck & Bus SA, hands over the symbolic

fleet key to the Naicker family management team at Crossmoor Transport

PAGE 56

comes first. This is a guaranteed buy-back, not a trade-back, which means the truck operator is not forced to replace the fleet with the same brand. Crossmoor does not run the risk of being tied to MAN – any divorce will be a one-sided affair in favour of the truck operator.

Modern extra-heavies have a major driveline component life that extends far beyond the 450 000 km buy-back bench-mark and it’s this expectancy that MAN has in forecasting a second life for the used unit being offered to the market with a 2-year warranty.

Coupled to all of this is a service contract with a fixed CPK (Cents-Per-Kilometre) rate that underpins the warranty. Barring a hotly-contested ‘driver abuse’ factor, this squarely places the burden of any component failure at the door of MAN Truck & Bus SA and its dealer network.

Extra-heavy trucks only begin to chow spare parts after three years. So there’s not much to be gained from selling filters and lubes over three years, but perhaps just a few labour hours will bring some profit.

At least fuel consumption, as an operating cost, remains with Crossmoor. Fuel costs are around 45% of the total cost of ownership and Crossmoor has done its homework in this department. Bruce Dickson, Deputy CEO of MAN Truck & Bus SA, states that “The 30 TGS 26.440’s going into the Crossmoor fleet join forces with the five that were intro-duced last year, which to date, I am pleased to announce, have set new fuel economy benchmarks in Crossmoor’s tanker division.” According to Dickson the MAN TGS 26.440’s are delivering figures between 15 to 20 percent lower than competitive models operating in the fleet. And Crossmoor don’t play games with fuel consumption – every fuel tank is fitted with a colour-coded, serial-number seal that only gets broken at each official refill.

Each of these trucks will travel some 12 000 km every month, as far afield as Zambia. It’s time spent getting through border bureaucracy – that’s where they cut red tape lengthways – that hampers trucking productivity. Is a monthly 12 000 km achievable? Maybe not, but this will ensure the overall buyback target of 450 000 km.

Crossmoor has been in business for 40 years – they are sharp business people. When you get a deal like this, and you qualify under the terms and conditions, then it’s a no-brainer. The real risk here is forecasting the future for the used truck market in three years time, but that’s not Crossmoor’s risk.

We will file this article for review in three years – time march-es rapidly and we trust the light at the end of the tunnel is not an express train coming to meet us. Oh for the days of a ‘cash deal’!

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AutoForum - July 2012COMMERCIAL VEHICLES

UNbRaNded, UNtRaceable & daNgeRoUs

A truck tractor fifth wheel is a very visible component, but we tend to look straight

through it as a chassis appendage only. How-ever, let’s all agree that a truck-tractor fifth wheel is a safety critical component in semi-

trailer operations. So when an un-branded, untraceable

fifth wheel ap-pears on the market it’s time

to ring alarms. This has been re-

cently spotted in the Gauteng road

transport market-place. What’s more is

that this item provides every reason to regard

it as a low-quality, un-tested part that has a

suspect D-value.

D-value – what’s that? D-value is the manu-facturer’s rated towing capacity of a fifth wheel expressed in kilo-Newtons (kN) and it’s the basis for comparing the towing capacity of any trailer coupling – fifth wheel or tow hitch. Any respectable trailer coupling manufacturer is not only brand-proud, but plates and marks the coupling with full detail of the product code, date of manufacture and a serial number. This is all part of configuration management that relies entirely on traceability – see AutoForum Nov/Dec 2011 – ‘The Best Truck Brands Rely on Configuration Management’.

The reality of South African transport op-erations is that fifth wheels tend to remain in a coupled condition for far too long and

abnormal wear sets in. This unbranded component will remain hidden until it fails in service. Trailer kingpins and rubbing plates also require degreasing and wear checks that they generally do not receive, which amplifies fifth wheel neglect. The absence of a rubbing plate gauge in fleet workshops is proof of this – see AutoForum October 2009 – ‘The Missing Fleet Tool’.

Fifth wheel maintenance is also governed by determining the ratio of off-road to on-road operating conditions. Where a truck operates on-road, and is fitted with mudguards, clean-ing, conducting wear checks and re-greasing a fifth wheel should be conducted within 15 000 km. In off-road conditions this falls to 7 500 km or even once a week, depending on the type of dust and severity of road surfaces.

Where are these obviously ‘low-cost’ fifth wheels likely to appear? Used trucks will be a real target as many used trucks have suspect fifth wheels and a used truck does not have to conform to OEM and SABS standards. The spending culture on used trucks is one of get-ting it out of a used lot at lowest cost. Also, do not expect roadworthy inspectors to spot this one when it’s covered in grease.

And then there’s just plain product liability. If this fifth wheel fails in service – its low qual-ity is perceived to make failure a likely event – then responsibility will rest with the owner of the vehicle, as the rest is untraceable. The legal profession will feed where the forensic trail ends.

• Reference and acknowledgement – Jost Transport Equipment

It is important to match the fifth wheel strengths and

weaknesses to the operating environment. This fifth wheel

has an E-Type mounting on the pedestal (pin and bush). The only thing standing between

the shock load of the trailer and the drive-train of the towing

vehicle is the shock absorption offered by the fifth wheel. In

this case with the pin and bush type mounting as seen here, there will be little to no shock absorption. This accelerates

wear and failure even further.

This fifth wheel carries no name plate, no batch number, no serial

number, no max imposed load rating, no max D-Value rating

and GCM rating, no date of manufacture and no origin

The handle has no wear indicator. Even though it does have an adjusting bolt there is no way of knowing when the locking

mechanism components (if obtainable) need replacement and this would unnecessarily complicate maintenance.

PAGE 58

Show TimeAutoForum - July 2012

Brand boosting for Daytona- Warwick Robinson

SHOW

TIM

E

Daytona group have had a busy winter so far. After meeting some of the guys at the

McLaren driving day, I stopped in at the show-room to discuss the campaign and what it means to Daytona.

CEO Justin Davaris and Operations Manager Ryan Barwell were discussing the recent initia-tives that Daytona Group have been engaging in. Not only did they recently complete a coun-trywide roadshow to showcase the McLaren MP4-12C, together with a range of Aston Martins and Rolls Royce vehicles, they also managed to scoop the title “most generous in class” by delivering the largest single automo-tive sponsorship in SA – the Audi R8 Spyder now in the clutches of Francois Hoegaard.

“We really just wanted to get the Daytona brand a visibility boost in the market”, says Davaris. “We distribute some of the world’s most luxurious and recognisable brands, but it is equally important to communicate that the Daytona Group delivers these cars to market”.

The group has a number of interests run-ning from the Rolls Royce, Aston Martin and McLaren agencies to Mini, BMW and Audi dealerships, as well as luxury yachts and even jewellery. “Our business is, to use a cliché, based on relationships with our clients. They spend large sums of money and want to know that the quality of the product is matched by the quality of the service – and the fact that we do return business with most of these high worth individuals says it all”. Apparently 28 MP4-12C’s have already been sold in SA.

Continued on page 60

Francois Hoegaard sitting in his new Audi R8 Spyder.

PAGE 59


SHOW

TIM

ESHOW TIME

Sitting in Davaris’s offices, I have to admit that you do notice the showroom floor, and find your self wanting to pay it some serious at-tention. Covered with some of the world’s most exclusive automotive technology, I defy anyone not to feel like a kid in a candy store. The McLaren F1 is on display, there is a shiny new MP4-12C waiting for collection and Ferraris, Porsches, Aston Martins, Jaguars and Rolls Royce keep your eyes moving around the pretty shiny things.

We were fortunate enough to have actually driven the MP4-12C, and while I may be new to the experi-ence of supercar driving, I can honestly say it has become most appealing! International reviews of the car have tended to be based on comparison’s to its nearest market rival – the Ferrari 458. I’m sure that many a bar-room argu-ment can debate the merits or failings of either car – but when it is your backside strapped into the magnificent buckets seats of the McLaren, comparisons really don’t seem important.

Admittedly I was a bit nervous about driving someone else’s R3 million (upwards) car, but the interesting part was its drivability. It felt at home in suburban streets (besides of course, the spinning necks of passersby) even dealing with speedbumps easily. But it’s the absolute mix of pure joy and terror as the car accelerates that gets you hooked. McLaren claim a 0-100 time of 3.2 seconds, and while I am certain I did not push it to its limits, the world certainly moves by quickly as you push the go button! Now feeling quite snobbish, I drove both the V12 Aston Martin Rapide, and the Rolls Royce – which is something you have to do at least once. But the little packet of McLaren branded dynamite won my heart on the day – we can all dream, and if your ticket comes in with the right numbers – I suppose you know where to go spend that loot!

McLaren MP4-12CBrand

boosting for Daytona

PAGE 60

McLaren MP4-12C

PAGE 61

Aston Martin Rapide

AutoForum - July 2012SHOW TIME

Automechanika 2012 and looking forward to JHB 2013

The next instalment of the ever-popular trade exhibition Automechanika, will take

place in Frankfurt am Main, from 11 to 16 September this year. The organisers of the event have already highlighted some of the

key changes for this year’s exhibition, which includes the moving of Bosch from Hall 8 to Hall 9.0, which Robert Hanser, President of Bosch Automotive Aftermarket, explained gives the company the chance to present all

PAGE 62

THE INTELLIGENT ALTERNATIVE

THE INTELLIGENT ALTERNATIVE

Membership is open to all Offi ce -, Stores -, Sales – and Clerical

employees, Artisans and Apprentices in the Motor Industry.

( 0 1 1 ) 6 7 8 6 3 2 8 , ( 0 4 1 ) 3 6 4 0 1 0 2 , ( 0 3 1 ) 2 0 7 7 5 4 8 , ( 0 5 1 ) 4 4 7 5 3 3 9 , ( 0 2 1 ) 5 5 1 2 8 2 2

JOIN MISA AND EXPERIENCE PEOPLE WHO REALLY CARE AND MAKE A DIFFERENCE.

TRADE UNIONS ARE NOT ALL THE SAME !

its brands together for the first time.

This move means that the western section of Frankfurt Fair and Exhibi-tion Centre will focus on the complete range of products for Body Repairs and Paintwork (Hall 11), Workshop Equip-ment and Tools (Halls 8 and 9.0) and Filling Stations, Car Washes and Car Care (Southwest outdoor area and Hall 10). Another highlight is the addition of basic and advanced training activities in the Galleria, the vaulted glass hall between Halls 8 and 9, which is set to become a hive of activity with practical workshops and training courses. These will provide concentrated information about jobs and job hunting and, for the first time, will see certificates awarded to participants.

A new visitor guide entitled ‘Truck Com-petence’ will be published mid year, and will offer orientation for all visitors in-terested in products and solutions in the field of commercial vehicles, such as transport companies, forwarding agents, fleet operators and specialists from service companies in the commer-cial vehicle field.

Exhibitors were consulted as to what they wanted included in the brochure, and the spectrum extends along the entire commercial vehicle value chain from parts and accessories, as well

as workshop equipment, to bodywork repairs and care. From the middle of this month, visitors will also be able to search specifically for exhibitors and products using the ‘Truck Competence’ filter online at www.automechanika.com. This initiative will be repeated at the Automechanika Johannesburg event.

Just a few months later, a record number of exhibitors and visitors are ex-pected to attend the largest ever Auto-mechanika Shanghai, which will be held 11-14 December 2012 at the Shanghai New International Expo Centre, China. Highlights of this year’s event include additional support for overseas compa-nies wanting to gain a share of China’s auto market, with new International Zones in the product halls, in addition to the well-established International Hall; expanded Repair and Maintenance as well as Accessories and Tuning halls; and a wealth of new exhibitors.

If you are unable to get to Germany or China, you certainly will be able to attend the third biennial Automechanika Johannesburg, which takes place at the Expo Centre, Nasrec, from 8-11 May, 2013.

Says Show Director, Philip Otto: “I believe our show has matured since the first one was held in 2009 and can

proudly take its place alongside the established shows that make up this famous global brand.” The number of exhibitors was up 32% in 2011 to 547 companies, while there was a 10% increase in show visitors, rising to 9 036 last year.

Automechanika Johannesburg will again follow the international example of dividing the show into six categories: Parts and Systems; Accessories and Tuning; Repairs and Maintenance; IT and Management; Service Stations and Car Wash; Safari and Off-road Vehicles. Tyres and Batteries will also receive special focus.

This year’s added focus on training is very much in line with what will hap-pen at Automechanika Frankfurt in September. Explains Otto: “Already we are in discussions with the merSETA as well as other organisations to ensure this (training) aspect of Automechanika Johannesburg 2013 plays an even more important role in the vital areas of em-ployment creation and skills upliftment.”

The event will again include a major conference to be staged under the auspices of the Retail Motor Industry organisation (RMI), which is one of the upcoming show’s endorsing bodies.

PAGE 63


Solus® Ultra Diagnostic Scan ToolSnap-on has launched its new state-of-the-art, full function, Solus Ultra Diagnostic Scan Tool to the SA market, and promises that it will make solving diagnostic challenges a breeze.

Some of the features of this product – the EESC318SA Solus® Ultra - include:• “Steadycharge”batterytechnologythatchargesthe

unit directly from the vehicle,•Asingle,keylessadapterthatcoversallOBD-II

applications,• Theabilitytooperateallfunctionsfromthetouch

screen or from the 4-way keypad and Y/N button,• Auniquecauseandeffectdiagnosis,• Nowaitingtobootup,astheunitisreadytoworkin

ten seconds.

The scan tool also boasts enhanced coverage; the ability to graph from one to four live data parameters simultane-ously; and custom controls; amongst many more.

For more information, please visit the website, www.snapon.co.za.

New Releases AutoForum - July 2012 www.AutoForum.co.za

New piston rod design for RanchoRancho recently announced that the piston rod design on its adjustable RS9000XL range now boasts ad-vanced “Nitro-carburised design technology”.

The company points out that this process is not only environmentally responsible - unlike chroming - but also corrosion, chip, flake and crack resistant. The new design piston rods are identifiable by their darker colour, which is closer to black than the current brighter chrome rods.

The 18 mm diameter piston rod, liquid metallic finish, nitrogen gas-charged shock includes a protective boot. The nine-position adjustability piston rods, combined with long-lasting polyurethane bushings, provide a con-sistent performance over a longer period, and are ideal for serious off-roaders. The RS9000XL range works in conjunction with the brand’s wireless MyRIDE remote tuning system, which makes adjusting the ride from firm to soft and anywhere in-between, simple and precise from the comfort of the cab.

The new piston rod design will be phased in throughout the year, but will require no changes to the part num-bers, weights, applications or dimensions.

CI to distribute Vision X LEDs Control Instruments Automotive has been named the sole dis-tributor of US-based LED lighting manufacturer, Vision X. The low-energy LED lighting products are designed for the mining, military, engineering, industrial, security, agriculture and 4x4 markets.

According to Product Manager Leonard Chester, LED lights are the most energy efficient and environmentally friendly light sources, as they reduce carbon footprint and CO2 emissions and, when discarded, do not leach poisonous mercury into the water system. He continues that LED products realistically last over 25 000 hours, compared to the 250 hours of halogen lights, while emitting very little heat. At the same time, the tech-nology requires 60-90% less energy than incandescent lighting, which far outweighs the higher upfront cost of the product.

Says Chester: “Vision X is able to manufacture custom lights to almost any specification.” He continues that the brand’s LEDs produce nearly twice the light of normal LEDs and include its Electronic Thermal Management (ETM) technology to keep the lights at safe low-operating temperatures. ETM boasts en-hanced optics that optimise beam distance and depth, giving the LED its full 50 000 hour potential.

The products will be available directly from Control Instruments Automotive and from Safari Centre branches countrywide. All the products come with a three-year warranty.

PAGE 64

After-Marketplace DirectoryTo advertise your listing in AutoForum After-Marketplace Directory

Contact us on 011 466 3733 or Email: [email protected]

DIR

EC

TOR

Y L

ISTI

NG AUTO ELECTRICAL

Auto Cosmos - Electrolog Electronic Parts (Electrical) Catalogue 012 327 6210Bosch Parts, Accessories & Batteries 011 651 9600First National Battery Industrial & Automotive Batteries 011 741 3600MED Motor Electro Diesel AutoElectrical Components & Accessories 021 505 4000Parts Incorporated Africa Automotive Components & Accessories 011 879 6000Trysome Auto Electrical Parts, Accessories & Batteries 011 823 5650AIR CONDITIONING

Connoisseu Automotive Air Conditioning Specialists 021 419 7188Highveld Garage Equipment Air Conditioning Specialists 012 330 0540Macs Automotive Air Conditioning Equipment 011 498 0700Snap-on Equipment Diagnostics Equipment 0861 762 766BODY REPAIR EQUIPMENT

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

BSE Body Shop Equipment 011 452 9688Motor Merchandise Consumables 086 010 1317CLEANING EQUIPMENT

Highveld Garage Equipment Pressure Washers & Vacuum Cleaners 012 330 0540Motor Merchandise Consumables 086 010 1317DIAGNOSTIC EQUIPMENT

Aer-O-Cure Electronic Chassis Straighteners 011 444 6454Beissbarth Wheel Alignment Equipment 011 651 9600Bosch Diagnostic Equipment 011 651 9600Diesel Electric Aftermarket Parts & Accessories 08600 03227Gabriel - C I Automotive Shock Absorbers 086 124 2886Highveld Garage Equipment Engine Analyser & Diagnostic Scanners 012 330 0540Macs Automotive Air Conditioning Diagnostic Equipment 011 498 0700NAPA/Midas Group Aftermarket Parts & Accessories 011 879 6000Snap-on Diagnostics Diagnostics Equipment 0861 762 766Wheelquip Wheel Alignment Equipment 021 949 0010

FLOORING

Tuff Floors Industrial Interlocking Floors 011 873 1292GARAGE EQUIPMENT & TOOLS

Aer-O-Cure Tools & Garage Equipment 011 444 6454Beissbarth Wheel Alignment Equipment 011 651 9600Bosch Diagnostic Equipment 011 651 9600BSE Body Shop Equipment 011 452 9688Diesel Electric Aftermarket Parts & Accessories 08600 03227Gabriel - C I Automotive Shock Absorbers 086 124 2886Highveld Garage Equipment Tyre & Lifting Equipment & Tools 012 330 0540Hofmann Megaplan Complete Range of Garage Equipment 011 472 7279/5954Integrated Marketing Sales, Service & Repairs to all Equipment 011 974 2202/3Ital Machinery Brake & Clutch Machinery 011 483 3737John Bean - Snap-on Equipment Wheel Service Equipment 0861 762 766Leaderquip Tyre & Lifting Equipment & Tools 011 334 1680Macs Automotive Air Conditioning Equipment 011 498 0700Motor Merchandise Consumables 086 010 1317NAPA/Midas Group Aftermarket Parts & Accessories 011 879 6000Snap-on Tools Tools & Garage Equipment 0861 762 766Wheelquip Wheel Service Equipment 021 949 0010PARTS MANUFACTURERS & DISTRIBUTORS

Alert Engine Parts Distributors of Quality Parts 021 590 8250Alfa Brake Drums & Discs Brake Drums & Discs 011 608 0801/3AUDI Parts Genuine OE Parts 086 043 4838Bosch Parts, Accessories & Batteries 011 651 9600Diesel Electric Aftermarket Parts & Accessories 08600 03227Drivelines C.V's and Driveshafts 011 763 3212Federal Mogul Champion Aftermarket Parts & Accessories 011 630 3000First National Battery Industrial & Automotive Batteries 011 741 3600GM South Africa Aftermarket Parts & Accessories 080 042 2777Gabriel - C I Automotive Shock Absorbers 086 124 2886Macs Automotive Air Conditioning components 011 498 0700MED Motor Electro Diesel AutoElectrical Components & Accessories 021 505 4000Midas Aftermarket Parts & Accessories 011 879 6000NAPA/Midas Group Aftermarket Parts & Accessories 011 879 6000Partquip Steering, Suspension & Driveline components 011 634 7600Parts Incorporated Africa Automotive Components & Accessories 011 879 6000RAM Belts & Hoses 011 248 9400SABAT Batteries 08600 SABATSafeline Brake Pads 011 549 7333Trysome Auto Electrical Electrical Parts, Accessories & Batteries 011 823 5650Victor Reinz Aftermarket Parts 011 432 2667VW Parts Genuine OE Parts 086 043 4737SERVICES

Auto Cosmos - Electrolog Electronic Parts (Electrical) Catalogue 012 327 6210Bosch Automotive Training Courses 011 651 9600

Diesel Electric Aftermarket Parts & Accessories, Vehicle service & repair 08600 03227

MED Motor Electro Diesel AutoElectrical Training Courses & Catalogue 021 505 4000Misa Staffing Association 011 678 6328Technica Automotive Training Courses 011 879 6065Trade Fair Travel Travel Packages 031 916 1414

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autoforum july 2012

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