AutoForum March 2012

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WWW.AUTOFORUM.CO.ZA MARCH 2012

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

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IN PARTNERSHIPWITH AUSTRALIANBODYSHOP NEWS

InsideDOES SA PAY mORE fOR cARS?

THE WASTE TYRE cHALLENGE

fLEET mANAGEmENT VS TRANSPORT mANAGEmENT

VW mQB

INNO

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ONS

cRAfTY VWUPDATE

e-Tolling outrage

RSA: R20.00 (incl. VAT)Other Countries: US $12.00

AutoForum - March 2012

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Auto SafetyHybrid models better in crashes 30

March 2012

EDITOR CLARE RUTKIEWICZ

CONTRIBUTORS:AUSTRALIAN BODYSHOP NEWS DAVE SCOTTROY COKAYNE ROBERT KAISER

ADVERTISING:GRANT WEST WARWICK ROBINSONC: 076 727 8161 C: 082 855 7750 T: 011 466 3733F: 086 627 1135

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Editorial There is definitely unhappiness in the ranks,

as Gauteng residents fume over the news that -

despite all opposition - it looks as if the dreaded

GFIP e tolling project will indeed go ahead. My

inbox has been flooded with responses from

businesses across the country, their outrage clear

and in my humble opinion, quite warranted. But

go ahead it apparently will, and Gautengers will

have to make a plan. And they will, there may

simply be no choice.

But the questions remain: What happened to

democracy? The population of Gauteng from every

quarter have expressed their absolute rejection of

the concept. How much will government vehicles

pay? How much will Pravin Gordhan pay? The

anger and bitterness about this example of the

antithesis of democracy will take a long time

to resolve.

Cover photo - Thank you to VWSA.

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

CONTENTS

Cover Storiese-Tolling outrage 12

Crafty VW update 17

Does SA pay more for cars? 20

The waste tyre challenge 24

VW MQB 48

Fleet management vs transport management 56

58

52

48

06

12

News ForumImpending court action on tolling 12

Peugeot sets SA targets 16

Crafty updated VW model 17

Ford now greening production in EU 18

Cars cheaper but no great growth in 2012 20

Greening starts at home 22

Service and parts most targetted 23

The waste tyre treatment challenge 24

Comparative vehicle mobility costs study released 26

MBSA continues progress on component supplier initiative

28

Supaquik chooses Hofmann Megaplan 28

US Aftermarket up in arms over proposed bill 29

BodyShop NewsSpot welding – modern cars 32

Trends in alternate parts – a new study released 36

Trade TalkHighlights of global and local industry news 06

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, OBCAlert Engine Parts 27Alfa International 17AUDI Parts 33Autocosmos/Electrolog 64Autozone 5, 34-35Bosch 21, 67First National Battery 19GMSA 9, 37, 63 Highveld Garage Equipment 40Hofmann Megaplan 50Integrated Marketing 10-11,Ital Machinery 18, 57Leatherworx 53MACS 13MED IFC-3MISA 48Motor Merchandise 31Partquip 41Parts Incorporated / Midas Group 15, 61, 65RAM 43SABAT Batteries 51Snap-on/John Bean 29Thailand Trade Show 14Trade Fair Travel 49Trysome 23Tuff Floors 45VW Parts 7Victor Reinz 25Wheelquip 59

Business ForumThe changing face of retail? 42

Meetings: An essential management tool or the bane of your life? 44

A final tally of 2011 and on to 2012 46

Macs staff on the move 47

Commercial VehiclesTrucking visitor gives valuable fuel-saving tips 52

E-Coded driver licences – the 750kg GVM trailer breakpoint 54

Training Benefits UD 55

Fleet & transport management – the difference 56

Tyre Maintenance just as important for trucks 58

Show TimeSAAW set for October 62

Afrimold 2012 trade exhibition 62

InnovationsVW Group launches new production strategy - MQB 48

New EGR cooler is 30% smaller 50

After-Marketplace DirectoryDirectory listings 66

New ReleasesLatest offerings of local products 64

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

Chevy Volt not more dangerousThe US organisation the National Highway Traffic Safety Ad-ministration (NHTSA), recently released a statement regarding the conclusion of its safety defect investigation into the post-crash fire risk of Chevy Volts, and electric cars in general.

The association opened its investigation in November last year into the potential risk of fire in Chevy Volts that have been involved in a serious crash, but found that no discern-ible defect trend exists. It also found that the vehicle modi-fications recently developed by General Motors reduce the potential for battery intrusion resulting from side impacts.

”NHTSA remains unaware of any real-world crashes that have resulted in a battery-related fire involving the Chevy Volt or any other electric vehicle. NHTSA continues to believe that electric vehicles show great promise as a safe and fuel-effi-cient option for American drivers.”

However, as the reports released in conjunction with the closure of the investigation indicate, fires following NHTSA crash tests of the vehicle and its battery components — and the innovative nature of this emerging technology — led the agency to take the unusual step of opening a safety defect investigation in the absence of data from real-world incidents. Based on the available data, the association concluded that it does not believe that Chevy Volts or other electric vehicles pose a greater risk of fire than petrol-powered vehicles.

Generally, all vehicles have some risk of fire in the event of a serious crash. However, electric vehicles have specific attributes that should be made clear to consumers, the emergency response community, tow truck operators and storage facilities. Recognising these considerations, NHTSA has developed interim guidance — with the assistance of the US National Fire Protection Association, the Department of Energy, and others — to increase awareness and identify ap-propriate safety measures for these groups.

PAGE 6

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Parts patent period to change The US House of Representatives recently introduced a bill that will reduce the period during which car companies can enforce their design patents on collision repair parts against aftermarket manufacturers.

The Promoting Automotive Repair, Trade, and Sales (PARTS) Act would reduce the period of design patent protection for car manufacturers from the current 14 years to just 30 months. Under the PARTS Act, the 30 month period would commence as soon as a particular car model (containing a design-patented part) is introduced anywhere in the world.

The patent protection period would only apply to the sale of the parts, allowing aftermarket manufacturers to produce, test, market and distribute parts pre-sale without infringing upon the design patents. The Quality Parts Coalition and many insurance associations expressed their support for the bill.

Fines for Japanese suppliers The US Department of Justice announced that two Japa-nese car parts suppliers, Yazaki Corporation and Denso Corporation, have pleaded guilty and will pay more than $500 million in criminal fines for their involvement in multiple price-fixing and bid-rigging conspiracies in the sale of auto parts to manufacturers in the US.

At the same time, four of their employees, who are Japa-nese nationals, have pleaded guilty and will serve prison sentences ranging from 15 months to two years. According to the court documents, the Yazaki co-conspirators fixed the prices of automotive wire harnesses, instrument panel clusters, and fuel tank sending units. Denso engaged in conspiracies to fix prices of electronic control units (ECUs) and heater control panels (HCPs). All of the conspiracies in-volved products sold to customers in the US and elsewhere.

According to the department, the conspiracies occurred from January 2000 until February 2010. The employees involved will pay a $20 000 criminal fine and assist the department in its ongoing investigation into the automotive parts industry.

In November last year, Furukawa Electric Co. Ltd. pleaded guilty and was sentenced to pay a $200 million fine for its role in the wire harnesses price-fixing and bid-rigging con-spiracy. The department said the federal antitrust investiga-tion into anticompetitive conduct in the automotive parts industry is ongoing.

PAGE 8

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Impending court action on tolling - Roy Cokayne

The introduction of electronic tolling on the Gauteng Freeway Improvement Project

(GFIP) is set to face a High Court legal chal-lenge from a broad-based group of organi-sations. These include the Road Freight As-sociation, SA Vehicle Rental and Leasing Association (Savrala), the Automobile Associ-ation (AA) and the Democratic Alliance (DA).

The action is being planned despite the new SA National Road Agency (Sanral) board early this year suspending the planned implementa-tion of e-tolling on the GFIP from February, to address stakeholder concerns and the R5.8 billion allocation by government in the budget to reduce the financial burden of toll fees on consumers.

However, Finance Minister Pravin Gordhan also announced that e-tolling of the GFIP was to be implemented from April 30 this year and added an extra 20c a litre to the fuel levy.The confirmation by government that it is to proceed with e-tolling despite serious op-position means a court battle now appears inevitable. Paul Pauwen, General Manager of the SA Vehicle Rental and Leasing Association (Savrala), stressed it was wrong to assume that because the toll gantries were already built, there was no turning back on e-tolling. “To press on with tolling our urban roads will be throwing good money after bad. There is a far more viable alternative and Savrala, along with a number of other business associa-tions, will now seriously consider a joint legal

challenge against this process. Initial consulta-tions have revealed significant transgressions of the law and the constitutional rights of the public in this regard.”

Pauwen said the GFIP urban tolling plan has been ill-conceived and thrust on Gauteng road users with minimal consultation or consider-ation to its impact. “It’s not about the fee. Even at 10c per kilometre, it is the principal of tolling our urban daily routes to work and back that is wrong. The implementation of an efficient road infrastructure is one of the roles of government and they are tasked to do this in the most effi-cient manner possible for its citizens,” he said.

Pauwen added that the additional 20c a litre to the fuel levy was a “double whammy”, increas-ing the current R1.77c a litre fuel levy to just under R2 a litre from April and securing about R27 billion a year going forward. Combin-ing this with the existing long distance toll revenues, local licence fees and some input from the national treasury pot and there was sufficient funding for national road infrastruc-ture upgrading and maintenance provided the money was spent wisely. “The fuel levy is the most efficient and equitable user-pay principle, which, when applied ensures that all road users contribute to all our roads in direct proportion of their usage. Every time one fills a tank with fuel, they contribute approximately R140 toward the maintaining and building an efficient road system. To toll the GFIP suggests that all road upgrades in future should be

The latest global news

Roy Cokayne is a senior financial reporter for Business Report.PAGE 12

Impending court action on tolling - Roy Cokayne

tolled – unless SANRAL plans to be inconsistent with this principle. Does one detect a quandary in the making? Why on earth would Gauteng citizens want or need to pay an additional R1.6 billion per annum to manage the collection of these funds when the fuel levy can be applied almost free of administration costs?”

Pauwen said prior to the Budget speech that Savrala would support the implementation of an additional levy that should not exceed 25c a litre, subject to several conditions. The levy proceeds should also be exclusively used for the funding of roads and land transport infrastructural improve-ments countrywide, he said.

Gavin Kelly, a Road Freight Association (RFA) spokesman, also confirmed prior to the Budget release that a broad spectrum of industry stakeholders would be taking legal action against Sanral about the implementation of e-tolling and issues related to it and the legal documentation would be finalised in the next few weeks. Kelly said a third to a half of the capital expenditure of the total cost of the GFIP was just for trying to administer the electronic tolling, which did not make financial sense.

The current fuel levy raised an estimated R34bn last year, while published reports indicated R1.6bn would be re-quired annually to service the GFIP loans, he said.

Neil Campbell, Democratic Alliance (DA) Gauteng transport spokesman, said the DA would join legal action against the tolls, which it believed could be successfully challenged in the courts.

As expected, the opposition to e-tolling and the delays with its implementation resulted in National Treasury mak-ing provision in the budget for the GFIP. This was essential as Sanral has sold R20bn of bonds since 2008 to build the GFIP and intended using tolling revenue to repay its debt and interest.

Kelly said the RFA had given National Treasury a presen-tation in January based on its comments that the GFIP should be financed through the fuel levy. He said National Treasury had asked the RFA to come up with a figure for the financing of the GFIP through the fuel levy and its effect on the economy.

Director at Econometrix, Tony Twine, said taxing petrol through another dedicated or additional amount on top of the general levy was the most obvious alternative to e-tolling. But Twine said National Treasury was highly averse to ring fencing any portion of tax and another possibility was to fund it out of unstipulated general tax receipts.

Mike Schussler, Chief Economist at Economists.co.za, said there was “a good chance” government would take over some of Sanral’s debts.

AutoForum - March 2012NEWS FORUM

PAGE 14

PAGE 15


Peugeot sets SA targets - Roy Cokayne

Peugeot South Africa, a subsidiary of the French vehicle manufacturer,

has aggressive plans to change cus-tomer perceptions of the brand in the local market and to increase its sales by 40% this year.

Francis Harnie, Peugeot SA’s MD, said its major target for this year was to in-crease its market share by 0.3% to one percent. Based on growth forecasts for the total market this year, this would be a 40% increase in Peugeot SA’s sales volumes over last year. Peugeot SA sold 3 226 cars and light commercial vehicles in SA last year, a 14% rise on its sales in 2010.

Naamsa has forecast a 7% growth in domestic vehicle sales this year. Harnie said between 10 to 12% of Peugeot SA’s target of 40% sales volumes growth this year would result from its new “demo programme”. He said the company last year established some test drive clinics and dealers did not have demonstration models for all its different models. “Every dealer will have the whole range of test drive models and from now on all dealerships will have courtesy cars.”

“We also have a totally new sales policy with remuneration based on quality and after sales. We are already on the right track on quality but cannot be happy if we are not in the top three in quality in new cars sales and after sales by 2013. We are working with our dealers to achieve this target.”

Harnie stressed Peugeot SA could not be ambitious in SA for only 12 months and had a plan to more than double its market share to 2% by 2015. He said products were important to drive its sales growth targets and it would be launching two new products later this year, the 4008 compact special util-ity vehicle (SUV) and 2008 B-segment small car. Both these models would be important in achieving the growth.

Harnie said Peugeot SA, which this year was celebrating its 10th anniversary in South Africa, would also be increasing its current 24 dealer network to 31 deal-ers by next year. To address negative perceptions about the price of its spare parts, it has introduced a full 5-year/ 100 000 km maintenance plan. Harnie admitted there was a perception among customers in the past that still remained today that Peugeot was equivalent to

“no spare parts or spare parts that were very expensive”. He said the company had done a lot to get rid of this percep-tion, including relocating to new prem-ises in 2008 that had an 8 000 square metre warehouse, which gave them the opportunity to introduce various fixed parts service priced on various models.

According to Harnie, the full mainte-nance plan was like a motor plan and included everything except tyres and petrol. He added that Peugeot models were not more expensive than most of its competitors and that its competitors had a 3-year service plan or full service plan. He said none of had a full mainte-nance plan.

Harnie said Peugeot SA was not profit-able last year but attributed this only to the exchange rate.

“We were profitable until September and then came the Euro/Rand situation. We did not increase our prices and it negatively affected our profitability. But if you look at the situation now it’s much better, so I think we will be profitable in 2012.”

PAGE 16

Volkswagen Commercial Vehicles recently launched its new Crafter model, which boasts the automaker’s lat-

est generation of the fuel efficient TDI engines. The new four-cylinder 2.0-litre common rail diesel engines mean lowered fuel and CO2 emissions, resulting in – the compa-ny explains – significantly reduced fuel and maintenance costs. It replaces the 2.5-litre TDI engine that was used in all previous versions with 6-speed manual gearboxes. The new four-cylinder engines are available with two pow-er outputs: 80 kW and 120 kW and both are mated to a 6-speed gearbox.

The Crafter 2.0 BiTDI with 120 kW consumes just 8.9 l/100 km (equivalent to 235 g/km CO2) - a fuel savings of up to 1.5 l/per 100 km compared to the previous model. It also boasts a gear shift indicator, which helps drivers to select an ideal gear for fuel economy. And, because the new model is lighter all round, it has allowed its creators to increase maximum payload. In some versions it is possible to load up to 44 kg more cargo – nearly 3% more.

The vehicle comes standard with active safety features such as Electronic Stabilisation Programme (ESP) with braking assistant, ABS, ASR, EDS and emergency braking signal (automatic activation of the hazard lights).

First unveiled to the SA market in early 2007, the model has sold over 4 000 units, making it the second best-selling Medium Commercial Vehicle (MCV) Panel Van inthe country.

Crafty updatedVW model

PAGE 17


Ford now greeningproduction in EU

NEWS FORUM

Ford Motor Company has made a fair amount of noise over the past few years,

about how it is becoming increasingly compli-ant with ‘green’ principles. Most of the activity has been at its US plants, but now it has con-firmed that these efforts will be applied across Europe as well.

The company has announced that it will signifi-cantly increase the proportion of waste re-cycled and reused, while cutting landfill waste by 70% - which will mean a reduction in the average landfill waste generated per vehicle to 1.5 kg, by 2016. Current landfill waste per vehicle is 5 kg.

Ford’s plant at Dagenham Estate in the UK already recycles 85% of the average 5 937

tonnes produced annually, with only 15 going to landfill. It is also looking into an ‘oil rec-lamation’ process that could almost entirely eliminate the landfill quota. Water is another savings area, with a targetted 30% reduction in usage over the next four years. Not only will this be an environmental win, but an estimated

€2.3 million saving over the period.

“This plan represents our pledge to minimise Ford’s impact on the environment both before and after our customers get behind the wheel,” said Stephen Odell, Chairman and CEO, Ford of Europe. “This goes hand in hand with our commitment to develop the most fuel efficient vehicles. Sustainability makes just as much sense for Ford as a business as it does for the environment.”

The new Ford of Europe commitment covers manufacturing in Genk in Belgium, Valencia in Spain, Saarlouis and Cologne in Germany as well as Southampton, Bridgend and Dagen-ham in the UK.

Landfill waste to be cut by 70%

PAGE 18

PAGE 19


Cars cheaper but no greatgrowth in 2012 - Roy Cokayne

The cost of new vehicles, excluding the impact of inflation, are getting

cheaper. Tony Twine, Director of Econo-metrix, said vehicle prices had risen more slowly than other products since 2000 and at a rate lower than consum-er price inflation. He said his analysis of vehicle price increases was based on the list price of vehicles.

Twine stressed that consumers and business could purchase vehicles at even cheaper prices than the list price during this period, because of the various incentive packages offered by manufacturers.

TransUnion Auto Information Solutions’ latest vehicle pricing index released recently revealed that annual new vehicle price inflation dropped to 3.4% last year from 4.7% in 2010, while used car inflation fell to 2.7% from 4.4% in the same period. Its vehicle price index is published quarterly and measures the year-on-year price inflation of a mar-ket weighted basket of new and used vehicles.

Mike von Höne, Chief Executive of TransUnion Auto, said highly competi-tive deals on new vehicles available to consumers during 2011 resulted in new car price inflation dropping to 1.8% in the third quarter, but fewer of these deals now appeared to be available. The inflation rate averaged 5.03% in South Africa last year.

Twine attributed the strong new vehicles sales performance in the second half of last year to pre-emptive buying because of fears of steep price increases due to the weakness of the exchange rate of the Rand. He said vehicle buyers had plenty of experience over the past decade of the weakness in the Rand resulting in the price of cars escalat-ing rapidly, and had developed a reflex reaction of heading off to vehicle show-rooms while prices were still favourable.

According to Twine, the first experience consumers had of this was in 2002 following “the assault on the Rand in 2001” and in 2009 when the industry adjusted prices after the collapse in Rand value in the fourth quarter of 2008. He said consumers acted ratio-nally in August last year to the weak-ening in the Rand by embarking on a pre-emptive buying spree that boosted vehicle sales by about 15 000 units in the last five months of the year.

However, Twine stressed vehicle prices “hardly stirred” last year to the weak-ness of the Rand because the pressure on manufacturers to raise list prices was not as great at the end of last year as it was at the end of 2008 and in 2002.

Twine said vehicle prices did not fall as the Rand strengthened again in both 2002 and 2009 and consumers and business last year failed to realise man-ufacturers had by August last year built up a price buffer with which to absorb exchange rate weaknesses. He said this

buffer had been built up despite plenty of domestic costs escalating and eroding it.

Jeff Nemeth, President and CE of the FMCSA, stressed the consumer price index had increased by about 170% since 2000 and automotive price in-creases were in a similar range despite the impact of the steep increase in other costs, such as energy costs, which had gone up by 200% in the past three years.

Twine said vehicle prices were expected to rise more quickly this year than last year but not at the same pace of 2002 and 2009. Von Höne said most manu-facturers introduced price increases in the last few months of last year on the back of bumper sales of new vehicles throughout the year, which had resulted in quite a significant increase in new car prices. He believed this trend could continue into 2012.

Twine continued that pre-emptive sales last year were unlikely to be repeated this year and could strip sales volume out of the market early this year. Econo-metrix therefore expected negative growth in passenger and light commer-cial vehicle sales this year, but believed the next boom would begin to materi-alise in 2013 through to 2015, before the market flattened out again in 2016.Most vehicle manufacturers and market analysts are forecasting single digit growth in volumes for the motor indus-try for this year.

PAGE 20


Greening starts at home

The issue of tyre waste recycling has been in the spotlight recently (see also page

24) and it seems that certain tyre manufactur-ers are also taking note of the issue. Good-year recently announced that it had invested R2.4 million into a joint investment between it-self and its recycling partner, The Waste Trade Company, in order to address this very issue.

As Pamela Moodley, Goodyear’s Risk Control Manager, explains: “The generation of waste comes with the tyre manufacturing process;

we can’t escape it but we can find the most practical and environmentally friendly ways to manage that waste. Waste is a health and environmental hazard. We look first at all pos-sible ways to minimise the waste, using fewer and less harmful chemicals in our process, for instance. Next, we find ways to reuse and recycle.

According to Moodley, the company now recycles in excess of 98% of its waste and sends the remainder for thermal destruction. This makes it currently the only manufactur-ing facility in SA that has a true zero waste to landfill policy.

The company also uses National Environment Management Waste Act (NEMWA) compliant waste storage methods. “Goodyear’s waste yard has two divisions: hazardous and non-hazardous waste. Most of the area houses

recyclable and general waste, such as food, which is given to pig farmers. There are strin-gent regulations surrounding the storage of hazardous waste. It is kept in a roofed area to prevent rainwater pollution, and on a concrete surface to prevent seepage into the ground. This area is well signposted and kept locked at all times,” Moodley continues.

The company now recycles in excess of 98% of its waste

From left Pamela Moodley (Goodyear Risk Control Manager), Olivier Martel (Goodyear Production Director), Howard Bulkin (owner of The Waste Trade Company) and Kay Hardy

(General Manager at The Waste Trade Company).

PAGE 22

Service and partsmost targetted

According to a new local survey, internal fraud and theft is a massive prob-lem within SA motor dealerships. So much so that a specialist training and

consulting company, Sewells Group SA, has created a ‘Fraud and Theft Health Check’ to help Dealer Principals and automotive retail businesses establish bet-ter preventative strategies.

Says Tania Barlow of Sewells Group South Africa: “Empirical evidence which emerged from our study in 2011, shows clearly that the losses involved are sub-stantial. We also concluded that prevailing social and economic climate is quite likely to stimulate more opportunism in this regard. The impact of internal fraud and theft on dealer profitability cannot be underestimated. We believe that tabling what we have established thus far will assist in identifying the frequency inci-dents, and give a pointer towards where one should be looking for problems.”

The Sewells survey involved data collected from a number of dealerships, which showed a massive 77% of respondents had been victims of fraud or theft more than once (Tables A & B). Of the incident types, cash and non-cash assets (such as parts) are the most commonly stolen items, while the service and parts depart-ments were found to be areas most often targetted.

PAGE 23

P00055.indd 1 2012/01/26 1:59 PM


The waste tyre treatment challenge - Robert Kaiser

We all know what a huge environ-mental challenge is posed by the

waste tyre problem in this country and even those who have been apathetic about this issue have had to have a re-ality check in the light of the frighten-ing statistics illustrating the extent of the environmental problem created by waste tyres that have been widely pub-licised in recent weeks.

The South African Tyre Recycling Process Company (SATRP), which was established years ago with the active support of the local tyre manufacturers, most of the major brand importers, the major ve-hicle manu-facturers and importers and lead-ing retailers, developed a waste tyre treatment plan based on intensive research carried out over an extended period at a cost of R9 million. The Plan presents a bal-anced and in depth process for dealing with the waste tyre problem and cover-ing (the extremely challenging) logistical issues as well as the financial, confiden-tial and transparency issues which are critical elements of any process which involves the necessary funding ar-rangements for the proper and efficient execution of the process. The SATRP Plan was submitted to the Department of Environmental Affairs as long ago as early 2009 and published by the Depart-ment for public comment at that time. Why it has taken so long for the Depart-ment to drive the finalisation of the Plan is a question best left unanswered.

Imagine the surprise created by the publication of another plan end No-vember 2011 (the Redisa Plan) with a date of coming into operation of a levy for all new tyres sold in SA in February this year! The RMI distanced itself from the Redisa Plan as it intimated that it had previously submitted its own plan to the Department which had not yet been finalised. Most surprised was in all

probability the SATRP Company whose Plan has been with the Department since 2009.

At the end of January 2012, the SATRP Company responded by applying to the South Gauteng High Court, Johannes-burg for an interdict to halt the gazetted implementation of the Redisa Plan until such time as its own Plan, which has been in the pipeline for so long, has been properly dealt with by the Depart-ment. The SATRP’s Court application was subsequently withdrawn in terms of an agreement by the Department

to withdraw the implementation of the Redisa-inspired levy and agreement to give the SATRP an opportunity to submit its final Plan to the Department by 30 April this year.

It would appear as if justice has been done for now and that the SATRP and its subscribers who represent the major players in the market, will have the op-portunity to have their Plan approved and implemented.

Says CEO of the SATRP Company Etienne Human: “There is absolutely no question about the fact that the SATRP Plan is one which outlines an all-encom-passing solution to tackling the grow-ing waste tyre hazard in South Africa, based on international best practice and thorough research undertaken over the past 12 years. The implementation of the SATRP will in fact establish a whole new industry in SA and the positive ef-fect on sustainable job creation through the implementation of the SATRP Plan will be significant. The SATRP Company is refining the final Plan in order to de-fine this aspect clearly in order to satisfy the requirements of the Department. There is no doubt that the SATRP Plan

is one of the ultimate solutions for the industry and judging by the support it has received, the major industry players agree.”

With an estimated 160 000 tonnes of waste tyres per annum coming from retail outlets only, plus the accumulated huge volumes of waste tyres all over the country, there is no doubt that SA needs a proper solution to deal with the issue. Hopefully action is imminent…

(For more information on the SATRP and its Plan, go to www.rubbersa.com)

Who are the subscribers to the SATRP Plan? (in alphabetical order): 24-7 Tyres cc T/a Afrityre, A1 Wheel & Tyre (Pty) Ltd, Alliance Tire Africa (Pty) Ltd, Amalgamated Automobile Distributors (Pty) Ltd, Apollo Tyres, Barloworld South Africa (Pty) Ltd, Best Bulk Ultra Tyres (Pty) Ltd, BMW South Africa (Pty) Ltd, Bridgestone SA, Chrysler South Africa (Pty) Ltd, Close-Up Deals 139 CC, Commercial Lock Distributors, Continental Tyre SA (Pty) Ltd, Dodds Trading & Services cc, Expectra 259 (Pty) Ltd, Extreme Lifestyle Center (Pty) Ltd, Fiat Group Automobiles South Africa (Pty) Ltd, Fullimput 128CC, General Motors South Africa (Pty) Ltd, Goodyear SA, Honda South Africa (Pty) Ltd, Hyundai Automotive South Africa (Pty) Ltd, Imperial Daihatsu (Pty) Ltd, Italmoto SA (Pty) Ltd, Iveco South Africa (Pty) Ltd, J Exten-sion Sales, Jaguar Land Rover South Africa (Pty ) Ltd, LFK Imports & Export, Mahindra & Mahindra South Africa (Pty) Ltd, MAN & VW S.A. Truck & Bus, Maxiprest Tyres (Pty) Ltd, Mercedes-Benz South Africa (Pty) Ltd, Newbreed Trading, Nissan South Africa (Pty) Ltd, Perfect Innovations 146 CC, Pirelli Tyre (Pty) Ltd, Reivilo Industrial CC, Renault South Africa (Pty) Ltd, Southern African Tyre Distributors CC, Sovereign Retreaders (Pty) Ltd, Subaru Southern Africa, Suzuki Auto South Africa (Pty) Ltd, Tandem Tyres CC Toyota South Africa Motors (Pty) Ltd, Toyota, Trapeace International (Pty) Ltd, Trentyre (Pty) Ltd, Tubestone, Tyre Source, Tyre Cor-poration Holdings (Pty) Ltd, Tyrecor (Pty) Ltd, Valley Irrigation Of SA (PTY) LTD, Vereenig-ing Tyres (PTY) LTD / Ling Long, Volkswagen of South Africa (Pty) Ltd, Whalinger SA (Pty) Ltd.

With an estimated 160 000 tonnes of waste tyres per annum

coming from retail outlets only

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Comparative vehicle mobilitycosts study released - Roy Cokayne

The cost of owning a vehicle in South Africa is high, according to an in-

ternational mobility study conducted by WesBank. The study involved seven countries, including two developing countries.

The purchase price of the specific entry level vehicle used in the study was most expensive in SA at R149 900, and cheapest in China at only R101 093. In the other countries included in the study it cost R106 529 in the United States, R120 480 in the United Kingdom, R129 425 in Germany, R135 453 in Australia and R127 540 in Brazil. But to highlight the variation in costs faced by consum-ers, the study compared the operating costs of this entry level car in different regions to the annual salary of a public school mathematics teacher with five years experience.

The cost of owning a vehicle in South Africa was equivalent to 95% of the annual salary of a mathematics teacher, the second most expensive of the coun-tries surveyed. It was most expensive in Brazil, where it was equivalent to 122% of a maths teacher’s annual salary. By comparison, it was equivalent to only 23% of a maths teacher’s salary in the United States, 26% in Australia, 33% in both the United Kingdom and Germany, and 68% in China.

However, the annual salary of a math-ematics teacher was R157 122 in SA,

which was higher than both Brazil at R112 985 and China at R149 641.

Chris de Kock, Executive Head of Sales and Marketing at WesBank, said the results of the survey were not surpris-ing, although it was surprising that the total mobility cost of owning a vehicle in Brazil was higher than SA. De Kock said Brazil’s gross national income per capita was higher than SA’s, but the annual salary of a maths teacher was lower.

He said they had always maintained that mobility costs in SA were a lot more expensive than in developed countries. The study showed that mobility costs in first world countries were a quarter of the cost in SA and Brazil.

De Kock said consumers in develop-ing countries were hit with “a double whammy” in terms of the costs of own-ing a car, because cars were cheaper in the developed countries included in the study than the developing countries, while the income per capita in develop-ing countries was less than that in the developed countries.

The ownership and operating costs monitored in each region, based on driving 60 000 km in three years, in-cluded the initial purchase price of the vehicle; fuel and maintenance costs; government taxes, levies and licensing; insurance; cost of finance; and the fixed residual value.

De Kock said the study did not go into the reasons why cars were cheaper in developed countries “because that is not my domain”. He said the most important factors influencing the cost of ownership in SA were labour and transport costs; economies of scale; interest rates; taxes and compliance; and government incentives.

According to de Kock, despite SA’s in-terest rates being at a 30-year low, they were very high compared to developed countries. He said interest was a big component of the cost of owning a car and consumers in the US were paying between 5% and 6% interest on vehicle financing deals, compared to between 11% and 12% in SA.

De Kock said SA fuel costs compared favourably with other countries in the survey and were the second cheapest of the countries surveyed at R9.93 a litre, following the US at R7.36 a litre. The UK had the highest fuel cost at R20.05 a litre.

“From the study, it appears that while the mobility costs for vehicle owners in SA are reasonably high when compared to other countries, this is due more to economic factors rather than higher margins along the supply chain.”

PAGE 26

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MBSA continues progress oncomponent supplier initiative

Supaquik chooses Hofmann Megaplan- Warwick Robinson

Early last month, Mercedes-Benz South Africa (MBSA) announced

that it had held discussions with a number of component suppliers to discuss how to ensure continued sus-tainable future operations at its plant in East London.

This follows a component supplier initiative that was launched in 2011 together with the Department of Trade and Industry (DTI) and the East London Industrial Development Zone (ELIDZ). The initiative is aimed at encouraging growth in the local component supply chain and to openly debate the various challenges facing the industry.

As MBSA President and CEO, Dr Martin Zimmermann, explained: “We wish to achieve a larger measure of localisation and improved competitiveness in this important part of the SA auto industry. The auto manufacturers, in partner-ship with component suppliers, need sustained growth. Together we are a key

contributor in the manufacturing sector and to the economy as a whole.”

The initiative came after the auto-maker’s parent company announced its R2 billion investment into the local plant for the production of the next-generation Mercedes-Benz C-Class, to be launched in 2014.

Dr Klaus Zehender, responsible for Procurement Mercedes-Benz Cars and Vans at Daimler AG in Germany, told delegates that: “MBSA’s commitment to a future business and production plan that is competitive globally was crucial in Daimler AG’s decision to extend production activities in South Africa. Following this it is now vital that all component suppliers based in South Africa seek out every opportu-nity to further improve their competi-tive position, either through their own production optimisation, relevant plant and equipment upgrades, investments

and expansion and most importantly, employee training.”

The DTI’s Rob Davies publicly ex-pressed support for the initiative at the introduction of the programme last year and pledged Government’s commitment to finding optimum solutions within the scope of the existing and future legisla-tive framework for a significant strength-ening of the automotive industry in SA.

According to Arno van der Merwe, Vice-President at MBSA responsible for man-ufacturing: “This initiative, spearheaded by MBSA, has a two goal approach. One aim is to encourage the expansion of component suppliers already based in South Africa. The second aim is to encourage other global component sup-pliers not yet producing in South Africa to join our industry, either through joint ventures or new establishments here and so bring with them their access to global research and development, and innovative technologies.”

Hofmann Megaplan invited us to visit one of their latest clients,

the Bridgestone Select Supaquik in Springs, to see its equipment in situ. “We actually did an A-Z equipping of this store,” points out David Barendse. From the hand, wall mounted and cas-tor toolboxes, the coil spring compres-sors, right to the lifts, tyre changers, balancers and aligners!”.

Based on their strategy of creating a high end tyre shop, as well as want-ing accessibility to the quality brands that suit this strategy, Supaquik head office recommended the company to store owner Mr Tony Nero. The store is particularly well laid out, maximising the space to accommodate a number of vehicles, next to a very comfort-packed client waiting area.

“We have been really impressed with the way David and his team serviced our needs, in addition to the fact that they carry quality brands that we have been using for some time”, says Tony. He added that dealing with the direct importer also helped in making his

choice of supplier. Tyre Africa expo will be held at the sandton convention centre 6,7 and 8 March where Hofmann Megaplan will be displaying its range of selected equipment including some newley released accessories not seen before.

PAGE 28

US Aftermarket up in arms over proposed bill

Legislation currently under consideration by the US’ Okla-homa Senate Business and Commerce Committee could

see new requirements forcing insurers to advise consumers in writing if a non-OEM crash, emission or safety part is to be used in a repair. The proposed bill would also mean consum-ers would need to sign a consent form that would include the following statement: “This estimate has been prepared based on the use of crash parts supplied by a source other than the manufacturer of your motor vehicle. Warranties applicable to these replacement parts are provided by the manufacturer or distributor of these parts rather than the manufacturer of your vehicle.”

Under the bill, an emissions part is defined as an oxygen sen-sor, catalytic converter, exhaust pipe, exhaust manifold, fuel distributor, electronic emission control unit, onboard diagnostic unit or any related parts or components. A safety part is de-fined as a replacement of parts or systems essential to vehicle operation, suspension, electronic control unit, brake parts, safety systems and airbags.

The country’s Automotive Aftermarket Industry Association (AAIA) has, however, opposed the proposed legislation. VP of the organisation, Aaron Lowe, believes that the legislation will give consumers the false impression that aftermarket parts are not of equal quality as their OEM counterparts. He urged the committee to oppose the proposal. “This legislation will provide an unfair and unearned competitive advantage to one industry, the vehicle manufacturers, and significantly harm consumers and many small businesses in the independent vehicle after-market that provide quality parts at affordable rates.”

PAGE 29

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Hybrid modelsbetter in crasHes

A new report by the US safety organisation, The Highway Loss Data Institute (HLDI),

has revealed that hybrid vehicles have a safe-ty edge over their conventional twins when it comes to shielding their occupants from inju-ries in crashes. According to its research, on average, the odds of being injured in a crash are 25% lower for people in hybrids than peo-ple travelling in non-hybrid models.

“Weight is a big factor,” explains Matt Moore, HLDI Vice President and an author of the report. “Hybrids on average are 10% heavier than their standard counterparts. This extra mass gives them an advantage in crashes that their conventional twins don’t have.” He notes that other factors, such as how, when, and by whom hybrids are driven, may also contribute. Researchers, however, included controls to reduce the impact these differences may have had on the results.

In the study, HLDI estimated the odds that a crash would result in injuries if people were rid-ing in a hybrid versus the conventional version of the same vehicle. The analysis included more than 25 hybrid-conventional vehicle pairs, all 2003-2011 models, with at least one collision claim and at least one related injury claim. Hybrids’ injury odds were 25% lower than their twins for collision claims.

In terms of basic crash physics, it is fairly easy to understand that size and weight influence injury likelihood. In a collision involving two vehicles that differ in size and weight, the people in the smaller, lighter vehicle will be at a disadvantage. The bigger, heavier vehicle will push the smaller, lighter one backwards on impact. This means less force on people in the heavier vehicle and more on the people in the lighter one. Greater force means greater risk, so people in the smaller, lighter vehicle are more likely to be injured. Even in single-vehicle crashes, heavier vehicles have an advantage, because they are more likely to move, bend, or deform objects they hit.

Due to this basic fact, even with advances in occupant protection, larger vehicles are still

safer choices than smaller ones, which is why downsizing vehicles to improve fuel efficiency has traditionally resulted in safety trade-offs. The trend among automakers nowadays is to boost fuel economy by designing more efficient internal combustion engines and by adding hybrids to their fleets.

Although hybrids share the same footprint and structure as their conventional counter-parts, they outweigh them because of the added heft of battery packs and other com-ponents used in dual-power systems. For example, at about 3 600 pounds (or over 1.6 metric tonnes), a hybrid Honda Accord midsize sedan, for example, can weigh as much as 480 pounds (around 218 kg) more than a con-ventional Accord.

The Toyota Prius and Honda Insight were excluded from the study because they are only sold as hybrids.

In contrast, a separate analysis by HLDI showed that hybrids may be as much as 20% more likely to be involved in pedestrian crashes with injuries than their conventional twins.

“When hybrids operate in electric-only mode pedestrians can’t hear them approaching,” says Moore, “so they might step out into the roadway without checking first to see what’s coming.”

It’s a problem that has become increasingly more apparent as hybrids have become more common. Recently, the US Congress gave the National Highway Traffic Safety agency three years to come up with a requirement for equip-ping hybrids and electric models with sounds to alert unsuspecting pedestrians.

Automotive safety news

AutoSafety

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PAGE 30

PAGE 31

Contents

In association with BodyShop News Asia and Australian BodyShop News

Body repair insight

32SPOT WELDING – mODERN cARS

36TRENDS IN ALTERNATE PARTS – A NEW STUDY RELEASED


sPot WeldinG – modern cars PART #2 Part tWo oF tHe series based on a recent sambra Presentation to its members. inFormation and imaGes kindly suPPlied by sambra.

What happens during the spot weld-ing process?

The perfect spot weld will be created by good preparation, together with

correct current and time.

The metal sheets are pressed together by the two electrodes and then the welding current starts. The current (e.g. 10 000 amps) has to pass the narrow diameter of the electrodes. This “block-age”, together with the resistance of the steel, causes the sheet metal to get extremely hot between the electrodes.

The clamping force (daN) of the electrodes forges the molten material together. At this time current is shut off, the electrodes open and the material is welded together.

Welding Remember that attempting to weld dif-ferent steels all at the same time, using the same amps and clamping force, is impossible.

There is a belief that all steel has the same density - for example 1.5 mm Boron has the same density as 1.5 mm Galvanised – and that they will therefore have the same impedance curve. This is totally incorrect.

Inverter technology is not only about power. It is how to control the power (Volts and Amps) that is important. The greater the number of cycles per sec-ond, the more control there is over the type of weld produced.

If we take three different steels - ZstE, Usibor and TRIP steel - they all have different melting points. If we tried to weld them with just one weld, the Usibor would have finished the weld and started to shut down long before the ZstE had even started to melt. The weld would then have failed. With the post warming programme, the first part of the weld starts to bring all the melt-ing points more or less in line with one another and then a second weld makes all three steels forge together.

Perfect or NotPerfect Spot Welding means the spot weld lens is perfect, the pressure impact of the electrode caps is optimum, there are no pores and connection of the three sheet metals is perfect.

Bad Spot Welding on the other hand means no spot weld lens, pores, cracks and inserts, insufficient connection of the metals and heavy sparks are visible.

Mig Welding It is important to use the correct wire type for the base metal being welded. Use stainless steel wires for stainless steel, aluminium wires for aluminium, and steel wires for steel.

Remember also to use the proper shielding gas. CO

2 is good for pen-etrating welds on steel, but may be too hot for thin metal – rather use 75% Argon/25% CO2 for thinner steels. Use only Argon for aluminium. You can use a triple-mix for stainless steels (Helium + Argon + CO2).

For best control of your weld bead, keep the wire directed at the leading edge of the weld pool. When welding out of position (vertical, horizontal, or overhead welding), keep the weld pool small for best weld bead control, and use the smallest wire diameter size you can. Be sure to match your contact tube, gun liner, and drive rolls to the wire size you are using.

Clean the gun liner and drive rolls oc-casionally, and keep the gun nozzle clean of spatter. Replace the contact tip if blocked or feeding poorly. Keep the gun as straight as possible when weld-ing, to avoid poor wire feeding and use both hands to steady the gun when you weld. Do this whenever possible. (This also applies to Stick and TIG welding, and plasma cutting.) Finally, keep wire feeder hub tension and drive roll pres-sure just tight enough to feed wire, but don’t overtighten.

OEMs require the use of invertor spot welders for higher strength sheet.

The criteria for spot welding these high strength sheet metals are:

• High welding power of at least 12 000 Amp. This is important so as not to damage the molecular structure of the sheet metal, and is only pos-sible with Inverter technology.

• Only a very short weld time is re-quired. This is due to the fact that a longer weld time makes a bigger burn mark around the spot, thus weaken-ing the sheet metal in the area. This in turn makes the sheet metal suscep-tible to rusting. Steel weakened in this way will not react properly in an accident, with disastrous results.

• The electrode force must be in ex-cess of 300 KN. This is because the elasticity of some of the sheet metal is very high and must be spot welded under corresponding pressure. This weakens the structure of the weld nugget, making it hollow or porous.

• Use only flat electrode tips (Not domed or pointed). A flat tip will hold the panels firmly in position during the weld process, and will produce the correct size weld nugget for the steel thickness. Domed or pointed tips con-centrate all the power in a very small .

Why are inverter spot welders mandatory? If a welding unit cannot meet these re-quirements, it will not successfully weld these new steels. The Inverter welder can be adjusted for any welding require-ment, on any steel, and give perfect results every time. If Inverter welding is correct in car manufacture, it must be correct for the repair industry, and repairers must move with the times. The repairer does not always know which types of steels are being used in the dif-ferent sections of the vehicle, therefore the welding equipment must be able to cope with all the types of steels. It is es-sential that the vehicle be repaired to it’s original state for safety reasons.

BODYSHOP NEWS

PAGE 32* Part applicability dependant on chassis number.* Valid from January to June 2012* Prices are recommended retail inclusive of VAT and are subject to change without notifi cation.

TOOTHED BELT WITH TENSION ROLLER

Part No. 06A-198-119 Model: A3 Derivative: 1.6 Year: 1997-2000

Price: R978,78*

CLUTCH KIT

Part No. 03G-141-015-L

Model: A3 Derivative: 2.0 TDI Year: 2004-2007

Price: R4340,16*

STARTER

Part No. 06H-911-021-A

Model: A4 Derivative: 1.8, 2.0 Year: 2008-2012

Price: R2858,42*

CAM BELT

Part No.06D-109-119

Model: A3/ A4 Derivative: 2.0 Year: 2004-2007

Price: R504,96*

OIL SENSOR

Part No.1J0-907-660-B Model: A3 Derivative: All Year: 1997-2000

Price: R863,26*

BRAKE DISC

Part No. 8DO-615-601-B

Model: A4 Derivative: All Year: 1995-2001

Price: R643,45 each*

OIL FILTER

Part No. 068-115-561-B Model: A4 Derivative: 1.8 Year: 1999-2001

Price: R66,16*

FUEL FILTER

Part No. 8E0-201-511-L Model: A4 Derivative: 1.8 Year: 2001-2005

Price: R420,86*

CV BOOT

Part No. 441-498-203-A Model: A4/ A6 Derivative: All Year: 1998-2005


BRAKE PADS

Part No. 4BO-698-151-H Model: A6 Derivative: All Year: 1998-2001

Price: R871,02*

CYLINDER HEAD GASKET

Part No. 078-103-383-E Model: A4 Derivative: 2.4, 2.6, 2.8 Year: 1995-1999

Price: R379,86*

OIL PUMP

Part No. 06A-115-105-B Model: A4 Derivative: 1.9 TDI Year: 2001-2005

Price: R1711,03*

Audi Genuine Parts

Quality down to the last detail.

Audi Genuine Parts originate during the development of an Audi and all parts are made to work together perfectly. Because of Audi’s stringent quality requirements and the excellent fi tting accuracy of the parts, you can be certain of their safety, reliability and performance. Audi Genuine Parts are exclusively available from your Audi partner. Visit your nearest Audi Dealership for more details.

48628 AUDI Parts Offensive Trade.indd 1 2012/02/20 5:15 PM

PAGE 33* Part applicability dependant on chassis number.* Valid from January to June 2012* Prices are recommended retail inclusive of VAT and are subject to change without notifi cation.

TOOTHED BELT WITH TENSION ROLLER

Part No. 06A-198-119 Model: A3 Derivative: 1.6 Year: 1997-2000

Price: R978,78*

CLUTCH KIT

Part No. 03G-141-015-L

Model: A3 Derivative: 2.0 TDI Year: 2004-2007

Price: R4340,16*

STARTER

Part No. 06H-911-021-A

Model: A4 Derivative: 1.8, 2.0 Year: 2008-2012

Price: R2858,42*

CAM BELT

Part No.06D-109-119

Model: A3/ A4 Derivative: 2.0 Year: 2004-2007

Price: R504,96*

OIL SENSOR

Part No.1J0-907-660-B Model: A3 Derivative: All Year: 1997-2000

Price: R863,26*

BRAKE DISC

Part No. 8DO-615-601-B

Model: A4 Derivative: All Year: 1995-2001


OIL FILTER

Part No. 068-115-561-B Model: A4 Derivative: 1.8 Year: 1999-2001

Price: R66,16*

FUEL FILTER

Part No. 8E0-201-511-L Model: A4 Derivative: 1.8 Year: 2001-2005

Price: R420,86*

CV BOOT

Part No. 441-498-203-A Model: A4/ A6 Derivative: All Year: 1998-2005


BRAKE PADS

Part No. 4BO-698-151-H Model: A6 Derivative: All Year: 1998-2001

Price: R871,02*

CYLINDER HEAD GASKET

Part No. 078-103-383-E Model: A4 Derivative: 2.4, 2.6, 2.8 Year: 1995-1999

Price: R379,86*

OIL PUMP

Part No. 06A-115-105-B Model: A4 Derivative: 1.9 TDI Year: 2001-2005

Price: R1711,03*

Audi Genuine Parts

Quality down to the last detail.

Audi Genuine Parts originate during the development of an Audi and all parts are made to work together perfectly. Because of Audi’s stringent quality requirements and the excellent fi tting accuracy of the parts, you can be certain of their safety, reliability and performance. Audi Genuine Parts are exclusively available from your Audi partner. Visit your nearest Audi Dealership for more details.

48628 AUDI Parts Offensive Trade.indd 1 2012/02/20 5:15 PM


PAGE 34

0018882_AutoZone_Autoforum_September_FP_Advert_To_Print.indd 1 2011/09/19 1:35 PM

PAGE 35

0018882_AutoZone_Autoforum_September_FP_Advert_To_Print.indd 1 2011/09/19 1:35 PM


trends in alternate Parts – a neW study released

A new trends analysis report has been re-leased in the US that looks at trends in

alternate parts usage in that country. Creat-ed by Mitchell, a leading provider of technol-ogy, connectivity and information solutions to amongst others, the collision repair industry, the report is published quarterly highlighting ongoing and emerging industry trends and key performance indicators for auto physical dam-age collision and casualty industries.

The Auto Physical Damage edition of the ITR features the article, “A Look at What Is Influencing Alternate Parts Usage” written by Mitchell’s Vice President of Industry Relations, Greg Horn. Horn analyses an issue key to the collision repair industry because of its impact on automotive claim severity: What does the future hold for alternate (aftermarket and re-cycled) and Original Equipment Manufacturer (OEM) vehicle parts sales?

“To determine the possible future direction of parts sales, we analysed a number of factors influencing parts use, such as new vehicle sales and sales performance for each of the parts types by vehicle model year. Parts use has increased in the aggregate due in large part to the ageing US car fleet. Looking to the future, the decrease in new vehicle sales since 2008 will definitely impact both parts demand and supply, but which will be greater, and which parts supply channel mechanism will benefit most, the aftermarket or the OEM?”

One of the key findings of the report is that there is little dynamic pricing of recycled parts occurring in that market – meaning that prices for recycled parts do not seem to decline as the vehicle ages. With a lower actual cash val-ue of an older vehicle, there is less money to repair with and reduced opportunity to repair a vehicle. While downward pressure should be seen on recycled parts prices to increase de-

mand for parts and repairs – this does not seem to be happening.

The report also includes a section entitled: “Claims Fraud—Addressing Six Key Challenges to Empower Ac-celerated Claims Success”, by Mike Mahoney, a Senior Director of Product Marketing with Mitchell. In this article, Mahoney offers a compelling analysis of the fraud challenges facing claims organisations, and outlines a best-practices approach to combating fraud effectively via the appropriate combi-nation of people, process and tech-nological change. “To address claims fraud, organisations must examine their traditional methods of fraud detection and claims handling and em-brace sophisticated data analytic ca-pabilities,” said Mahoney. “Integrating advanced technologies into standard claims handling processes in “real time” across the life of the claim will empower insurers to proactively detect fraud while accelerating prompt, effec-tive and accurate claims handling.”

For the full report visit www.mitchell.com/industry-trends-report.

PAGE 36

BODYSHOP NEWS

PAGE 37

We guarantee that in the unfortunate event of your vehicle being involved in a collision we take care of the following:

Best repair according to manufacturer’s specification

Fitment of only Genuine GM® Parts

Remember that Genuine Parts are made to fit, you do not make them fit

Maintaining vehicle warranty

Guarantee on workmanship

Ensuring manufacturer safety standards

As a customer you have the right to know if Genuine GM® Parts were fitted

Only repair your vehicle at a GM Approved Body Repairer!GMSA Approved Body Repairer Listing www.gmsa.com


PAGE 40

PAGE 41

AutoForum - March 2012BusinessForum Business insight

The changing face of retail? - Graham Bush

When I started in the retail indus-try in the 70s, we did not have

computers, scientific history, the Inter-net, or cell phones. What we had was good old-fashioned ‘gut-feel’ and rela-tionships, both with our customers and suppliers. Now for the first time in eons, the role of the retailer is changing.

There is no doubt that the Internet is changing the retail experience, and with it how we shop. Many retailers are feeling the pressure of the prices and convenience available via e-commerce that some retailers offer. How many of us go to a travel agent to buy an airline ticket these days?

Recent research shows that shopper satisfaction at retail stores is declining by up to 15% per year. Stores that used to define the diversity of shopping cen-ters, from bookstores and clothing to consumer electronics and home goods, are closing. Small and large brands alike are searching for strategies to react to the change in customer expectation, where online retailers win on prices and convenience.

Change creates opportunities. Retailers must adapt business models and inte-grate local, personalised services with online convenience. The value of the convenience store is continually evolv-ing, driven by changes in distribution. Recently, we have witnessed a shift in retail from physical to experiential,

where the currency of value is the experience. However, we are only at the beginning of an economy driven by virtual goods. For example, while eBook market share is rapidly rising, Kindle eBooks only account for around 1% of total print sales.

While retailers traditionally see online and store marketing as competing busi-nesses, customers ultimately care about convenience and perceived value, and most of all, The Shopping Experience!

As the “goods” we sell change, so do our purchasing behaviours. What was once a simple transactional process becomes a complex web of value shifts across several customer touch points. Now, brands must manage multiple revenue streams, where the retail space may not be primarily devoted to income. Following this trend, wireless service providers such as Verizon (www.verizonwireless.com) have transformed their retail environments into places primarily for customer service, not mon-etary transaction.

Designing these new shopping experi-ences is not just about immediate sales but about creating opportunities to fa-cilitate impulse purchases, up-sell, and cross-sell. The challenge is in building a shopping experience that combines the in-store, transactional, and post-sale goals. The experiences must come together to promote discovery in-store

and the continuation of the sales pro-cess at home. Amazon suggesting a tri-pod with a new camera may not create more value. However, recommending a guide to photographing wildebeest for a camera purchased for a safari trip is more likely to increase perceived value.

We have to radically rethink how retail businesses earn revenue when sales margins are declining. We can learn and apply insights from sectors that have made this move already.

So, what do we do? Firstly, learn from the experts. We are overwhelmed with choice, and most products advertised to us do not match our lifestyle ex-pectations. Too much choice results in confusion and indecision, the stum-bling blocks for purchases. US retailer Nordstrom’s online and in-store growth can be attributed to their innovative ap-proach to handling inventory to match shopper searches. The recent launch of their redesigned website includes editorial features for a magazine-like shopping experience. Online shoppers looking at products can see where they are available nearby and reserve them for pickup. By creating a personalised online and in-store shopping experience, Nordstrom has increased sales by an average of 8%. (http://shop.nordstrom.com)

Brands such as National Geographic are beginning to move into experiential

PAGE 42 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.za

offers by opening entertainment and educational destina-tions. National Geographic’s offering has expanded from a lifestyle publication to include a TV channel, educational website, museum, and store that nurture lifestyle interests and offer products that match lifestyle goals. These brands recognise that the competitive advantage is based on cus-tomer desires and not the range of products and services.

We can also learn from the fashion industry. Fashion stores have radically changed in the past decade. Previously, customers purchased clothes once every season. Now, customers return regularly, anticipating new discoveries as part of the experience. Zara’s secret to success is through encouraging frequent shopping and continuing to inspire by regular reorganisation of store layout and rapid turnover of merchandise. (www.zara.com)

On the other hand, e-commerce still lacks browsing and discovery experiences that satisfy curiosity. The current stan-dard for online shopping revolves around instant satisfaction initiated by a specific search. Etsy is one exception, with rich interfaces and interesting browsing options (color, time spiral, local) that stimulate exploration. (www.etsy.com)

Then we have Brands. Brands have the opportunity to be-come destination spots. Retail spaces can relax customers, offer refreshments, and provide entertainment while creating the conditions to engage in a conversation that builds brand loyalty. A visit to Vodaworld or Pick n Pay’s new concept store provide great examples. Nestlé’s gourmet coffee brand, Nespresso, successfully crafts various types of encounters with their customers. Although the machines are available in several stores, the capsules are only available from the company via mail, phone, Internet, or in Nespresso Bou-tiques. The boutiques are designed to develop and maintain a continuous relationship, even offering a club for coffee con-noisseurs. The boutiques offer complementary coffee, distin-guishing the purchase of new capsules from other repetitive shopping rituals. (www.nespresso.co.za)

So, as sales and profits decrease, business models must change. Retailers must embrace the fact that monetary transactions are moving elsewhere, and often at a different time. As a result, retailers are becoming places that manage customer relationships and form and maintain brand aware-ness. Designing for customer relationships opens exciting opportunities for selling on, or up-selling; cross-selling, and consumer support. These relationships can be built using in-sights from lifestyle editors, fashion, hospitality, and commu-nity to create continuous experiences across retail channels.

In a saturated retail environment, one cannot compete on convenience, price, or relationship alone. To remain relevant, retailers must design experiences that merge the physical and online store. Time to get ‘with-it’ guys!

Additional resource:Fast Company’s Co.Method Co.IPG Media Lab

PAGE 43

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Let’s face it: in business today, or-ganisations use meetings at vari-

ous levels as an essential communica-tion and management tool. Meetings are not only held at governance (board) level, but operational meetings among staff have become indispensable man-agement tools to ensure proper coor-dination, information sharing, plan-ning, strategising, control and planning. However, meetings - if not properly run - can have a disruptive and counter-productive effect, defeating the very object for which they are held. It is the joint responsibility of everyone involved in a committee or board to ensure that a meeting does not become an un-productive time wasting exercise. By merely observing a few basic protocols and some common sense principles, it can be a powerful tool. Let’s start at the very beginning with the reason for the existence of a committee or board in an organisation. If you are involved in any committee or board, whether it is in

your company, representing your com-pany on another forum or even in your private capacity, here are some prin-ciples to help you get the best results from your participation and time invest-ment.

1. The Terms of Reference and Role Players in a Committee Structure

A committee (it could be called a committee, board, council or other suitable name) is a body of elected or appointed representa-tives who have a mandate to deal with specific matters and to make recommendations to another body or take final decisions on matters placed before it.

1.1 Terms of Reference of the committee.

The terms of reference are the cru-cial starting point for a committee

member to acquaint him/herself with the scope of work, respon-sibility and accountability of the committee on which he/she serves. This sets the parameters for the activities of a committee and it is essential that every member should keep the terms of reference of the committee on which he/she serves, foremost in mind. This will assist you to retain focus on the job at hand.

1.2 The Meeting Agenda

The agenda for a meeting contains a listing of the business that needs to be dealt with at a meeting. The agenda will typically be accom-panied by supporting documents pertaining to the business listed therein. In addition, an agenda may refer to minutes of a previous meeting, which need to be con-sidered and formally adopted at a

Meetings: An essential management tool or the bane of your life? - Robert Kaiser

SOME USEFUL POINTERS TO MAkE IT WORk BETTER PART #1

PAGE 44

subsequent meeting. The agenda will normally also provide for an item to review matters arising from the minutes of the previous meeting. This is a valuable tool for a committee to keep track of outstanding issues dealt with at previous meetings and to receive progress reports on actions taken in dealing with such matters.

1.3 The Chairperson

The Chairperson, whether appoint-ed by a higher body or elected by committee members from their ranks, is the person responsible for leading the proceedings at a meet-ing. Meetings of a committee are usually arranged by the Secretariat in conjunction with the Chairper-son. The Chairperson needs to control the flow of the meeting and the manner in which the meeting agenda is dealt with. He/she is ex-pected to play a leadership role in controlling debate and facilitating the resolution of situations where there may be conflicting views among members. It is important for the Chairperson to remain objec-tive and impartial in debate as he/she cannot display partiality from the chair.

The Chairperson needs to en-sure that the committee does not

deviate from its terms of reference and that debate is not allowed on issues which are not in line there-with. He/she needs to interrupt debate when deviation occurs as it may be out of order. Committee members are subject to meet-ing discipline as practiced by the Chairperson.

1.4 The Secretariat

The Secretariat is responsible for executive liaison in a committee structure and the person who ful-fills this role carries the responsibil-ity of ensuring that the resolutions or recommendations of a commit-tee are duly recorded for execution by the responsible party, whether it be a member of a committee or someone else. The Secretariat plays a crucial role in cooperating with and supporting the Chairper-son in his/her duties.

1.5 Committee Members

A member of a committee is a rep-resentative of his/her constituency.

In order to do justice to his/her role, it goes without saying that a committee member needs to be thoroughly prepared for any meetings he/she has to attend. It is therefore essential for a member

to prepare him/herself for a meet-ing by studying the agenda of the meeting which is normally received in good time before a meeting in order to acquaint him/her with the facts of a matter. During prepara-tion a member may well find that it may be necessary to consult with his/her constituency in order to ac-quire background information and/or receive guidance on how to ap-proach a specific issue. It may also be necessary to communicate with the Secretariat if a member finds that he/she needs more informa-tion or an explanation concerning a matter.

Proper preparation for meetings enables a committee member to come to meetings prepared and informed and able to represent his/her constituency through construc-tive debate and being part of an informed decision making process. Failure to prepare for meetings results in an ill-informed member not being able to play a meaningful role in the affairs of the committee, to the detriment of his/her con-stituency and business operations and efficiency.

Read our April Issue for Part 2

PAGE 45


With many buyers holding off reg-istration of their December pur-

chases to January, the combined results of the two months have, tradi-tionally, given the most accurate pic-ture, especially when looking at the whole year trend – however, this year it is not to be.

As a result of a global directive by par-ent company Daimler AG (Germany), Mercedes-Benz South Africa (MBSA) is precluded from reporting detailed, dis-aggregated sales data for the time be-ing. The company will, however, provide a single total sales number for passen-ger cars and commercial vehicles.

“The lack of comprehensive sales data, including export sales figures, by a major company in the South African Automotive Industry also precludes meaningful evaluation of the industry’s performance and trends,” says Naam-sa’s Nico Vermeulen. “It also reduces the ability of component companies, vehicle manufacturers and retail partici-pants in planning and optimising busi-ness operations covering areas such as production, importation, distribution, sales and marketing.”

“Detailed sales data remains a strategic imperative for manufacturers, consum-ers, financial Institutions and govern-ment departments – amongst others.”

Vehicle sales, particularly light com-mercials, are an accurate barometer of business confidence in the economy and an upswing in LCV sales usually

follows an upturn in passenger vehicle sales and, while January did get off to a slow start, it is going to be interesting to see what the results of the Malema affair do for us.

Equally, the ongoing events in Europe and the economy in the US, will have an effect on our currency, business confi-dence and vehicle exports. Aggregate industry sales, including the total numbers by MBSA, improved by 3 144 units or 7.0% to 48 251 vehicles from 45 107 units in January last year.

Overall, out of the total detailed re-ported industry sales of 45 944 (exclud-ing MBSA) vehicles, 79.1% or 36 354 units represented dealer sales, 12.8% represented sales to the vehicle rental industry, 4.7% sales to Government and 3.4% to industry corporate fleet sales.

Toyota South Africa Motors celebrated its 32nd year as market leader in the South African market, ending last year on total sales of 109 413 vehicles and an overall market share of 19.19%. The total market in turn ended the year on 570 012 vehicles, which represents a growth of 15.6% over 2010.

“We are especially proud of what we have achieved in 2011,” says Dr Johan van Zyl, President and CEO of Toyota South Africa Motors. “To maintain the market leadership position in for the 32nd consecutive year against many more competitors and an ever growing number of vehicle choices is significant,

but it is even more impressive in light of the challenges that we have faced.”

Referring to the challenges faced by Toyota, Dr van Zyl mentioned the devastating earthquake and tsunami, which struck Japan in March 2011. This, more than any other event in 2011, severely constrained the supply of fully built up vehicles as well as the supply of specialised parts and components re-quired to maintain vehicle production in South Africa – with that and the floods in Thailand, Honda SA for example lost nearly a third of its market share, simply because they did not have the product to sell.

The damaging effects of the natural disasters in Japan was later followed, and in some ways compounded, by other major disruptions on the local and international front.

“We still vividly remember the unexpect-edly high snowfall in July, which shut the main arteries between our plant in Durban and certain major suppliers and markets. This was followed soon after by a crippling strike in the component manufacturing industry in August, which again put unexpected strain on our own manufacturing activities,” says Dr van Zyl.

Speaking on the general vehicle market in 2011, Dr van Zyl points to a number of clear trends that have developed. He notes the lagging impact of the 2009 economic downturn, coupled with gen-eral pressure on disposable income and

A final tally of 2011 and on to 2012 - Colin Windell

Colin Windell is the Editor of Fleet Magazine.PAGE 46

rising living costs, supported the growth of entry level vehicles in the A, B and so-called sub-B segments

“The commercial vehicle market sur-prised us by showing far more mo-mentum than expected. The market – excluding buses – grew by 23% in 2011 to 25 173 units and we expect a similar overall market in 2012 as the demand for commodities and fast moving con-sumer goods maintain strong,” says Dr van Zyl.

“January vehicle sales numbers show subdued but positive growth in the market,” says Malcolm Gauld, GMSA’s Vice President, Sales and Marketing. “Looking ahead we expect a moderate level of growth in sales for the industry in 2012 but at a lower level than that of the past year.”

Ian Nicholls, GMSA Vice President of Planning, adds: “South African econo-mists are forecasting a rapid escalation in consumer inflation in 2012 com-pared to last year, which will impact the

growth rate. Growth in the South African economy is expected to be around 3% this year.”

VWSA Sales and Marketing Director, Mike Glendinning, says: “While still early in the year current circumstances and expectations seem to suggest slow growth in the new passenger car market during 2012, with growth rates probably remaining in single digits.”

“Undoubtedly, however, new car sales during the year will be supported by a highly competitive trading environ-ment, ongoing attractive new model introductions, and restraint in the pace of growth in new vehicle prices which are currently growing by a low 2.1% in nominal terms on an annual basis.” TOP PERFORMING: NEW PASSENGER VEHICLES

January 2012

Model Volume1. VW Polo 2 100

2. VW Polo Vivo 2 0723 Toyota Corolla 1 4124. Ford Figo 1 337 5. VW Polo Sedan 8926. Toyota Yaris 8827. VW Golf 6 6598. Chev Aveo 6579. Chev Cruze 60610. Nissan Juke 602 TOP PERFORMING: NEW LIGHT COMMERCIAL VEHICLES

January 2012

Model Volume1. Toyota Hilux 2 7742. Nissan NP200 1 5063. Chev Utility 1 1174. Toyota Quantam 9275. Isuzu KB 8006. Nissan NP300 Hardbody 596 7. Ford Bantam 5818. VW Amarok 5029. Mazda BT-50 24310. Ford Ranger 228

Source: Naamsa

Following a company growth spurt, mobile air-conditioning and re-

frigeration specialists Macs, made some personnel changes to ensure the smooth running of their various branch-es. These include Bino Salbego, who has been appointed Export Manag-er, Harald von Ey who is now Region-al Manager for Coastal branches, Jean van Niekerk and Brenda Boyd - Sales Managers Refrigeration and Automo-tive at the Selby office, and last but not least Bryma Haupt who takes over as Depot Manager in Port Elizabeth.

Macs staff on the move Bryma Haupt - Depot Manager - Port Elizabeth

Bino Salbego - Export Manager

Harald von Ey - Regional Manager - Coastal branches

Jean van Niekerk and Brenda Boyd - Sales Managers Refrigeration and

Automotive - Selby

PAGE 47

AutoForum - March 2012INNOVATIONS AutoForum - August 2011

The latest automotive technology

VW Group launches new production strategy - MQB

The Volkswagen Group has announced that it be launching what it describes as “a

turning point in the design and production of future automobiles with transverse-mounted engines”.

The Modular Transverse Matrix – known by the German acronym MQB – will be applicable for the VW, Audi, ŠKODA and SEAT brands, across the A0 to the B segment. It works by standardising many vehicle component parameters across brands and vehicle classes while simultaneously offering access to new technologies. In essence it means that all of

the applicable models could theoretically be produced on the same assembly line – despite their different wheelbases and track widths.

A key characteristics of this new MQB strategy is the uniform mounting position of all engines. There are two systems within the strategy – the modular petrol engine system (MOB) with the new EA211 engine series (40 kW / 60 PS to 110 kW / 150 PS) – this range includes the world’s first four-cylinder engine with cylinder deactivation (ACT) – and the modular diesel engine system (MDB) with the also new EA288

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engine series (66 kW / 90 PS to 140 kW / 190 PS).

This shift will reduce the Group’s en-gine and gearbox variants by around 90% - and it says, “without any nega-tive effects”. Not only does this mean standardised conventional internal combustion engines, but also identical mounting positions for all current alter-native drive concepts without limitations – from natural gas and hybrid versions to the pure electric drive.

According to the Group, the new sys-tem means a wealth of new opportuni-ties, such as producing high-volume as well as niche models at the highest quality and extremely competitive costs over the long term and worldwide. It also means a number of technologi-cal breakthroughs in weight reduction, and 20 other safety and infotainment innovations, such as ‘multicollision brake’, a system that helps to reduce the intensity of secondary collisions – after an initial incident - by automatically initiated braking. It has already received a ‘Yellow Angel’ from the German equivalent of the AA – the ADAC - and

will be standard equipment in the next generations of the Audi A3 and the Golf.

MQB will work in conjunction with Audi’s Modular Longitudinal System (MLB), the Modular Standard System (MSB) with Porsche as the competence centre and the ‘New Small Family’ – the most compact vehicle model series. The strategy has also been nominated as one of five finalists in the ‘Innovation

Award of the German Economy – The World’s First Innovation Award’. The award recognises outstanding technical, scientific and intellectual achievements.

The first new vehicles to be produced based on the MQB will be the succes-sor to the Audi A3 and the next generation Golf.

PAGE 49

AutoForum - March 2012INNOVATIONS

New EGR cooler is 30% smaller

Denso Corporation re-cently announced that

it had developed its first EGR cooler for petrol en-gines – and that it is 30% smaller than the smallest one currently available on the market.

As Akio Shikamura, Senior Executive Director of the compa-ny’s Thermal Systems Business Group, explains: “As (OEMs) around the world look to downsize engines to help meet the increasingly stringent regulations, EGR systems are becom-ing more necessary to optimise the powertrain combustion process and improve fuel economy. Because there is limited space in the engine compartment, an emphasis on size reduc-tion is a major factor in developing EGR systems. Denso’s new and compact EGR cooler will greatly help reduce the overall EGR system size.”

EGR systems recirculate a portion of engine exhaust gas back into the intake manifold to increase fuel efficiency. EGR cool-ers work to decrease the temperature of hot exhaust gases recirculated into the intake manifold, which also increases the density of the exhaust gas. This in turn helps to increase the performance of the EGR system, which reduces engine loss and prevents engine knocking. An additional benefit is that vehicles fitted with EGR systems that include EGR coolers can potentially increase fuel efficiency by 2 to 3%.

What makes the new cooler system unique is its finer slits, which are just 1 mm wide, compared with conventional mod-els with internal fin slits measuring 4 to 5 mm in width. This allows the system to discharge more heat per unit volume and has allowed the system to be 30% smaller than the smallest product in the market, all while offering equal performance.

This EGR cooler is already installed in Toyota’s new Camry and AQUA, also known as the Prius C, and plans are to offer this product worldwide as a solution to meet tighter fuel-effi-ciency and exhaust regulations.

AutoForum - October 2011

PAGE 50

PAGE 51

AutoForum - October 2011

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.

COM

MER

CIAL

truckinG visitor Givesvaluable Fuel-savinG tiPs - Dave Scott

Fuel consumption, ho-hum, it’s so drawn through the ringer, what can we learn

that’s new? A visit to South Africa by Alan Campbell, Iveco UK’s Demonstration Con-sultant Manager, added a few new interesting perspectives from an experienced and inter-national viewpoint. Campbell is responsible for the press fleet, show vehicles, driver train-ing and Iveco demonstration fleet at Iveco UK. And make no error; press road tests in the UK are hotly contested events where coming sec-ond in the fuel consumption stakes is not an option. As Campbell points out: ‘It takes 16 weeks to prep a truck for a press test’. Read on.

It’s worth repeating some facts that get over-looked in everyday operations. So many South African fleets operate with tyre pressures that are all over the place, and should note Camp-bell’s experience on fuel consumption and tyre pressure summarised under these simple facts.

• Truck tyres inflated at 125 psi (860 kPa) on a rig provided 3.52 km/litre (28.4 litres/100 km) – the same rig operating on 100 psi (690 kPa) used fuel at 3.26 km/litre (30.67 litres/100 km). This means a 20% drop in tyre pressure can increase fuel consumption by 7.9%. But maximum

pressure is not necessarily good for tyre life – especially on drive axles – so there’s a trade-off and fine balance that must be met. Fleet audits reveal drive axle tyres, especially the inner of a dual set, running at 450 kPa – this will definitely impact on fuel consumption as it drags when the outer tyre is correctly pressured.

• Also don’t overlook or discount air and fuel filters – if these are clogged fuel con-sumption goes up between 5 -10%.

• And there’s the impact of weather on the road. A 20 mph (only 12.5 kmh) headwind will increase fuel consumption by 21% and standing water on the road adds another 10% to the fuel bill.

Whether it’s in the UK or on Southern African roads, driving with economy in mind remains the challenge. Driver habits the world over increase the fuel bill. Here are a few common problems:• Drivers don’t read the road ahead. Antici-

pating traffic light changes, bends in the road and hazards are part of acceleration and deceleration that involve fuel usage

• Blipping the throttle on a downshift is a fuel waster – it’s so macho and a very ‘Af-rican’ thing as a hangover from the days

PAGE 52

of non-synchromesh gearboxes commonly called a ‘crash-box’.

• Drivers do not get into top gear soon enough

• Lack of engine brake use or incorrect use of engine brake – an operational engine brake is not using any fuel as no combustion is taking place, not even fuel to idle the engine.

• Excess use of cruise control will chow fuel

On the road with Alan Campbell brings out interesting observations. One, is the appalling lack of knowledge that supervisors use in directing and assess-ing truck drivers around fuel consump-tion. One driver reported his boss said that wind had nothing to do with diesel engine performance when the total opposite is true. It appears that fuel consumption training is not just a driver thing – everyone in the road transport chain of command should know this subject and understand what a driver faces on the road to bring down fuel

used. A driver cannot be penalised on a single trip when faced with strong headwinds.

The automated shift transmission – also known as automated manual trans-mission (AMT) – is hard to beat. But some drivers are operating it solely in manual over-ride mode all the way from first gear upwards. This style of driv-ing takes time to get to top gear and misses opportunities to skip-change if gradient and load permit it. Again, is this because a misinformed supervisor has instructed a driver to stay in manual over-ride at all stages? Campbell points out that it is better to leave shifting to automated mode in the lower gears where the transmission makes the deci-sion in conjunction with the engine and use manual over-ride in the higher gears only – that is more fuel efficient! Don’t go out of the green band seems to be a universal instruction in monitor-ing engine revs. But there are times to go ‘beyond the green’. Firstly when in

retardation mode – engine brakes work better with rpm and the green band is not enough. In any event, the engine brake is not using any fuel. Secondly, Iveco’s modern Cursor engine does not need to be lugged all the way back for fuel efficiency – rather stay at the top end of the green band.

What comes out of this training and visit is that the percentage of time using the engine brake is a good indicator of fuel conservation and the right attitude to road safety. If the engine brake is hardly ever used, that’s not good. Even a gearbox retarder starts with engine brake application before a gearbox hydraulic retarder comes into play. So here’s a new thing to measure – not just time in cruise control – percentage time in engine brake! It makes sense.

Reference and acknowledgement – Alan Campbell – Iveco UK

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AutoForum - March 2012COMMERCIAL VEHICLES

It’s not the trailer payload that counts in determining driver licence catego-

ries, it’s the gross vehicle mass – the GVM. And for trailers the breakpoint is 750 kg GVM. This is where E-coded driver licences start. All too frequent-ly drivers are pulling a trailer that looks like a ‘Venterjie’ but is well past the 750 kg GVM breakpoint - this is a risk factor that is overlooked until a road accident and driver licences are scruti-nised in court…ahem, your Honour!

A C1 code licence (that’s an old Code 10) qualifies a driver to handle a truck from 3 500 kg GVM all the way up to 16 000 kg GVM – that’s around 1.5 tonne to a massive 8 tonne payload depending entirely on the weight of the cargo body. But all a C1 licence allows a big 16 000 kg GVM truck to pull is a pimple of a trailer – a 750 kg size ‘Ven-terjie’. You want to pull a bigger trailer? Then the driver needs an EC1 licence.

And it’s no different for a passenger /bakkie B licence that takes us up to 3 500 kg GVM. To pull a double-axle horse box or luggage trailer over 750 kg GVM the appropriate code is EB. Drivers towing a caravan must examine their licences and check that they are properly qualified.

Where will one find the GVM? It’s all embossed into the trailer manufacturer’s data plate riveted to the trailer chassis. GVM is also the benchmark at which exceeding this is a trailer overload. Just remember that GVM is not payload – payload is included inside the GVM and is determined by deducting the empty mass of the trailer from its GVM.

GVM plays a clear role for trailer brakes as well, with 750 kg GVM and 3 500 kg GVM being the breakpoints for the type of brakes required. Legal parameters for trailer brakes are described under Regulation 151 of the Road Traffic Act – Ken Ramsden’s ‘Fleet Management Digest’ translates it into a neat, under-standable table seen below.

Note: there are different brake require-ments for tractors unable to exceed 40 km/h.

Can you tow a ‘Venterjie’ behind a caravan now that you are E-coded and well beyond 750 kg GVM? Regulation 222 (restriction on com-bination of motor vehicles) has been examined by the AA of SA and their published conclusion is: “With respect to the law cited above, it appears the only manner in which a trailer and a

caravan can be towed, are in situations where there is a breakdown and alter-natively, in an emergency. Therefore the towing of a trailer behind a caravan for any other purpose is illegal.”

So there it is in a nutshell – avoid li-ability with appropriate licence codes and brake specs. It’s not the cops you must worry about it’s the insurance assessors.

e-coded driver licences – tHe 750kG Gvm trailer breakPoint - Dave Scott

TRAILER GVM BRAKE REQUIREMENTS

Up to & including 750 kg GVM

• Where the trailer does not exceed half the drawing vehicle’s tare

• Where the trailer exceeds half the drawing vehicle’s tare but does not exceed the tare of the drawing vehicle

• Where the trailer exceeds the tare of the drawing vehicle

• A parking brake or other device for keeping the trailer stationary

• A parking brake and either an over-run brake or a service brake

• A parking brake and a service brake

Exceeding 750 kg GVM up to 3 500 kg GVM

• And not exceed the tare of the drawing vehicle • A parking brake and either an over-run brake or a service brake

Exceeding 3500kg GVM or the tare of the drawing vehicle • A parking brake and a service brake

PAGE 54

These days many companies talk about their training specifically in

relation to their BEE scorecards, but the challenge is to create tangible results for the people in their businesses and in the communities in which they are lo-cated, at the same time providing value to the business. We decided to look a bit more closely at UD Trucks’ train-ing programmes. I met with Tirsa Koen, HR General Manager at UD, as well as Telishia Middleton, the Training and De-velopment Specialist, and Julie Anne Terblanche, the newly appointed Mar-keting Manager. “We embarked on this strategy to not just adhere to a trend, but rather out of a sense of responsi-bility to the local community in Ross-lyn,” explains Koen. “It’s about groom-ing people in and around the business. Creating a pool of talent from employ-ees, their family members and individu-

als based in the local area, extending to the disabled and disempowered.”

UD have focused on manufacturing and engineering activities as well as up-skilling for management, warehouse roles, sales and after sales. “But it extends further than that,” continues Middleton, who comes from a manu-facturing background but was spe-cifically appointed three years ago to manage the programme for UD. She also explained the technicality of an initiative labelled a “learnership” - “for every learnership, the individual actually becomes employed within the business on a contract period”.

The upliftment comes from creating skills for people who previously may have had no formal qualifications, sometimes no schooling. “Between 10 and 15% of all learners actually end up in the organisation,” Tirsa adds, pointing

out that the initiative aims to pro-vide a positive outcome for both sides of the team – upliftment for the individual and for filling potential skills gaps that have been identified in the business.

The merSETA provides access to funding for such initiatives, but in reality the business has also had to put their money where their mouth is, and it has to make financial sense too. On average there is a 2:1 ratio of spend in terms of investment in the business and investment in the community, while conceptually the two have overlaps. UD is evidently seeing the ROI – of the 40 learners trained in 2011, 8 were ap-pointed in full-time positions. In the lon-ger term, it is evidenced by the loyalty of UD’s workforce - some of whom have been employed for more than three

decades. Koen explains: “The 2010 period was a difficult time for everyone in the industry, but UD’s approach was to invest in training heavily for the pe-riod as opposed to retrenchment.” This strategy apparently not only benefit-ted the business and instilled loyalty in employees, but also cemented a strong relationship with the unions.

The training schedule is divided into two main intakes for technicians and experiential learners, as well as pro-grammes for the disabled, and a bur-sary programme.

Programmes aimed at the community include training for the physically dis-abled and mentors locals for business acumen and entrepreneurship. UD also sponsors bursaries for learners enrolled or interested in mechanical and industrial engineering courses. “I actually went from school to school,

visiting more than 20 schools in 2011 looking specifically for youngsters who cannot afford the costs associated with study, but who have the maths and science grades to go into these fields,” says Middleton. “It is an ongoing focus but is extremely difficult to find these individuals,” she continues, even after

UD advertised in the community and communicated the opportunity through the unions.

UD has identified the need for diesel technicians and tradesmen to fulfil re-quirements in the UD retail network. The experiential training is aimed at learners completing their P1 and P2 in technical colleges and hopes to employ 80% of these learners once they obtain their national diplomas. The latest to kick off is the warehousing training starting now in March 2012, which is aimed at raising the skill levels within the organisation, in order to provide a pool of skilled resources to fill upcoming positions. The example being set by UD shows how initiatives based on training have positive outcomes for the HR side of the business, while still satisfying the finance department.

traininG beneFits ud - Warwick Robinson

Programmes are aimed at the community include training for the physically disabled, and mentors locals for business acumen

and entrepreneurship

Tirsa Koen, HR General Manager, Telishia Middleton, Training and

Development Specialist, and Julie Anne Terblanche, Marketing Manager

PAGE 55


Fleet & transPort manaGement – tHe diFFerence - Dave Scott

The view from the top is that truck-ing and transport are operation-

al issues. Time and money is spent on info-technology (IT) strategy, includ-ing hardware and software, but when it comes to efficiency and effective-ness of trucks on the road, the strategic needs of fleet management simply get glossed over. An item much overlooked is how transport IT will seamlessly fit in with the IT systems of the business. In many organisations IT systems lack standardisation, capacity and real use-fulness to the users – the transport divi-sion is usually the last section to benefit from powerful IT software.

The essence of road transport is very operational in character, including a variable chaos factor that demands up-to-the-minute attention. The outcome is that the daily crisis of operational think-ing dominates transport managers, who then miss the opportunity of strategic decision-making. And that is the point of departure between fleet management and transport management.

Many advertising claims offer a total fleet management solution – they are really transport operating systems that cannot possibly answer the strategic questions of fleet management. This

is because operating system data is historical and ‘now’; it’s not forward looking and intuitive, asking typical questions such as the following:• Do our transport operations com-

pliment our corporate image? • Is the fleet strategy expressed in

terms of policy documents and subject to regular review?

• Is road transport a core activity of the business?

• What is the environmental impact of an old fleet and does this match our company ‘green’ intentions?

• Does our truck fleet take advan-tage of road traffic legislation changes and incorporate this into the latest vehicle technology to enhance productivity?

Fleet management is prepared to think of trucks as an essential component of the logistical chain – it adapts trucking to the demands of the interfaces that trucks must match for efficient logistics. This type of thinking and information is much broader than the focused disci-plines of transport operations.

Strategic thinking is the process of planning what the fleet will consist of, how and where it will operate, to meet a future business environment in chosen

market segments and geographic mar-kets. It is the strategic intent of the fleet that should drive operating systems – not the other way around.

Transport management, on the other hand, is concerned with real-time infor-mation, incident control and daily disci-plines. Transport management handles the daily trucking crises via technical staff, drivers, crews and accountants. Here are typical questions driving trans-port management:• Do our truck maintenance people

have all special tools and equip-ment, and are they trained in the use of this equipment to be fully productive?

• Are we monitoring fuel consump-tion per vehicle against standards set for the specific operational conditions?

• Are our vehicle start-up procedures and defect reports effective in ex-tending preventative maintenance?

• Are we measuring and controlling the incidents of road transport that give rise to operational costs?

Operational competency is not nego-tiable in road transport, because only disciplined attention to detail limits expenses and minimises risks. Trucking

PAGE 56

does not allow one to be great at strategy – the fleet management side of the business – while neglecting all the aspects of daily operations that aim at excellent fuel consumption and on-road safety. Operationally competent business will survive but those trans-port operations, both operationally and strategically incompetent, have gone or are closing down every day.

A small fleet of 10 trucks obviously cannot afford to employ both a fleet and transport manager, but must recognise the absence of the strategic element in their businesses when it comes to fleet planning. It is just a fact of life that excellent transport managers do not necessarily make good strategic think-ers – the dominant mindset of operating road transport simply works against the thought processes of road transport strategy.

There is often conflict between fleet management and transport manage-ment over what is best for the fleet in the short-term versus long-term. An old truck fleet due for replacement makes a good example. The transport manager’s

wish is that the whole ageing fleet is replaced as soon as possible – this removes breakdowns, improves fuel consumption and takes the pressure off maintenance. On the other hand, the fleet manager knows that a stag-gered and spread replacement will not severely affect cash flow and flood the market with used trucks that impact on residual values. Instant fleet replace-ment also means that the whole fleet ages simultaneously with accompany-ing growth of maintenance and on-road breakdowns – an average age across the fleet is preferable to a single fleet age.

The strategic option of delay-ing vehicle re-placement and cutting back on vehicle main-tenance, just prior to the sale of a company, has very often been used in the past to pad the image of a

healthy trading account. Shortly after-wards the wheels fall off, both literally and financially.

The trucking goal must be to become strategically and operationally compe-tent. It is not titles that count, whatever name is given to the functions of fleet and transport management, but what can be achieved through these func-tions in both the short and long-term.

Reference: Strategy Pure & Simple – Michel Robert – Published by McGraw-Hill

How do you protect your workshop equipment against contaminated gas??

Contaminated refrigerant gas is a real threat in our industry and more and more we hear of workshops that suffer great losses to service equipment because of this.

MACSAUTO, one of the leaders in the Automotive air-condi-tioning parts industry, understands the effects of this problem and believe that the Ultima units is a must in any Workshop environment.

This problem of contaminated gas is increasing and we advise that any Fitment centre, Workshop etc. who deals with refrig-erant gas make at least one of these units a standard item in their Workshop says Ian Griesel MD of MACS.

The Ultima units are of excellent quality, an exceptional por-table design and easy to use.

The Ultima Mini-ID is extremely affordable and is able to anal-yse and verify the presence and quality of R134a refrigerant in vehicle air-conditioning systems. The rugged construction makes it ideal for a workshop environment and will assist in protecting your business against costly damage.

The larger Ultima units are able to give you a clear identifica-tion of R134a, R22, R22 etc. These units are ideal for larger business with costly equipment and large volume of vehicles serviced on a daily basis.

Phone MACS’ branches countrywide or contact Charmaine Pieters on 011 4980700 or [email protected].

PAGE 57


According to the International Energy Agency, in 2010 global CO2 emis-

sions from burning fossil fuels rose by more than 5%. Over the same period the vehicle industry dedicated huge amounts of resources to reducing CO2 by just a few percentage points. A new study by Volvo Trucks and Michelin, however, shows how commercial ve-hicle drivers can make considerable gains in lowering fuel consumption and emissions with just a few minor adjust-ments to their vehicles. And with the revelation in November that a new in-ternational treaty on climate change will be delayed until 2020 at the earliest, the actions of individual people and com-panies to reduce their carbon emissions will become even more important.

The study findings are not new but showed once again that having the right tyres, tyre pressure and wheel align-ment can reduce fuel consumption

- and therefore CO2 emissions - by up to 15%. In financial terms, it found that companies could be saving up to €8 000 (that’s a whopping R84 000) per vehicle per year.

“We know that wheel alignment, tyre type and tyre pressure all have a major impact on fuel consumption,” says Arne-Helge Andreassen, Business Area Manager for tyres and wheel alignment at Volvo Trucks’ Aftermarket depart-ment. “There is a lack of awareness in the transport industry about the importance of checking tyres and wheel alignment, on both the truck and the trailer. At our dealers, we can help haul-age companies check the entire rig and correct any problems. If everyone did this, it would have a significant impact on carbon dioxide emissions.”

Volvo Trucks and Michelin decided to produce statistical data on just how

much wheel alignment, tyre pressure and rolling resistance affect fuel con-sumption and therefore CO2 emissions. In a two-week long, 1 000 km test, a rig with optimal tyres, tyre pressures and wheel alignment was compared with a vehicle featuring different wheel alignments and tyre parameters. The tests were carried out on a track and in a workshop under the watchful eye of SP (the Technical Research Institute of Sweden). The trucks were equipped not only with fuel gauges, but also with in-struments that monitored exact speed, tyre wear, tyre pressure and rolling resis-tance. The test engineers made adjust-ments in the test results for factors such as wind, rain and temperature.

“All the conditions tested were realistic, and no exaggerations were allowed,” says Andreassen. “Real life is bad enough. Diesel consumption increases dramatically if the wheels are not

tyre maintenance just asimPortant For trucks

Test with tyre manufacturer Michelin. Different combinations

were tested. Between the test cycles, the engineers

replaced the tyres and adjusted tyre pressures

and wheel alignment.

PAGE 58

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entirely parallel. And this applies to all vehicles, for construction and long-haul operations too.”

Analysis of the test results reveals that there can be a difference of as much as 14.5% in fuel con-sumption, depending on how the wheels are aligned and equipped. Choice of tyre can cut consump-tion by as much as 11%; correct tyre inflation brings a reduction of 1%, while proper wheel align-ment can cut fuel consumption by 2.5%.

Jacques de Giancomoni, Techni-cal Account Manager at Michelin, explains that one-third of fuel consumption stems from the tyres’ rolling resistance. “Having the right tyres is of paramount importance,” he says. “And checking tyre pressure - which has a significant effect on fuel consumption - is also important.”

Andreassen says that as a manu-facturer of heavy vehicles, Volvo

has considerable responsibility for the effects of its products, and it takes that responsibility seriously. “We must try to do everything we can to reduce emissions of carbon dioxide,” he says. “It’s not enough to just build fuel-efficient engines; Volvo Trucks works consistently and in a variety of ways to cut the fuel consumption of our vehicles throughout their lifecycle.”

Of course, correcting the tyre pressure and wheel alignment will not stop climate change, but as commercial traffic accounts for 30 to 40% of total carbon dioxide emissions from road transport, it is another small but significant step towards a lower carbon future.

For more examples of how trans-port firms can reduce their fuel consumption through relatively simple measures visit: http://ev-erydropcounts.volvotrucks.com/

Results reveal that there can be a difference of as much as 14.5% in fuel consumption, 11% with choice of tyre,

1% with correct tyre inflation and 2.5% with wheel alignment

PAGE 60

CH1178 210x275.indd 1 2012/02/24 3:05 PM


Afrimold 2012trade exhibition

This year’s AfriMold - the international mould-making and tooling, de-sign and application development trade fair – event will take place from

10–12 October 2012 at the Gallagher Convention Center in Midrand, South Africa. This third staging of the trade fair is expected to attract exhibitors and visi-tors representing the associated sectors of design, materials, simulation, visualisation, engineering, virtual reality, CAD and CAM, rapid prototyping and tooling, patternmaking and prototyping, mould-making and tooling, tools, machine tools, quality assurance and automation, as well as process-ing and finishing. This year’s event theme is Tooling as a Key Enabler for the South African Manufacturing Sector - Climate Change Mitigation, and will feature topics central to the German/South African Year of Science (Yos) conference that it runs in conjuction with. For more information, please contact Louise on +027 82 898 3073, or visit www.afrimold.co.za.

Show Time

SAAW set for OctoberThe South African Automotive Week international trade show will again take place this October in Port Elizabeth. This key automotive event focuses on stimulat-ing trade and partnership opportunities in manufacturing and the related sectors and is endorsed and hosted by the South African industry, including the Naacam, Naamsa, the DTI and more.

With up to 10 000 participants expected to attend the 2012 event from across the globe, it promises to again be a not-to-be missed event on your industry calender.

SAAW takes place 10–13 October. For more information please visit the official website www.saaw.co.za.


PAGE 62

PAGE 63

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New AutoZone web experienceLast month parts giant AutoZone announced the launch of its newly updated website. More than simply an online parts catalogue, the new site boasts more product information, installation hints, road safety and maintenance tips, and of course promotions and specials.

Home to all the major brands in the marke-tas well as its sub brands Ampro, AutoKraft, AutoZone Chemicals, Femo, Elpar Spirex and Vdub, AutoZone has a footprint of 10 wholly-owned wholesale branches, 90 wholly-owned retail branches and 48 member-owned franchise branches. All of these are supported by a sup-plier base of more than 688 world-class suppli-ers and an active parts range of 75 000.

Visit www.autozone.co.za.

IM launches new Priman InflatorIntegrated Marketing has announced that it now has added to the Priman automatic nitrogen tyre inflator, the PN-8820 to its product line-up.

The unit is equipped with preset and manual inflation and boasts two outlets for nitrogen, meaning that it can inflate two tyres at the same time. It is also equipped with an air outlet to fill tyres with air.

With four foot casters, the inflator is more convenient to oper-ate, and it generates nitrogen from your compressed air. It also includes audible and visual end of the cycle signal indicators, as well as automatic vacuum supply and nitrogen-fill.

Other features include:2 Pre-Filters / LED display; and a 55L internal Nitrogen Storage Tank.

For more information please contact: Leoni 011 974 2203

New MiX Fleet app for iPhone Vehicle tracking and fleet management solution company, Mix Telematics, has launched a new MiX Fleet iPhone application, and is expected to soon launch versions for Android and Blackberry too. As Gert Pretorius, Managing Director of MiX Telematics Africa explains: “Extending MiX Mobile to include sup-port for FM customers is a significant milestone for MiX Telematics as we now have a complete range of mobile apps. Practically, it means that irrespective of which MiX Telematics onboard computer our customers have installed, they can now track their vehicles using a smart-phone if they wish to do so.” Just over two years ago, the company was the first in the fleet telematics industry to release a vehicle tracking application for the iPhone. Registered FM-Web fleet cus-tomers will automatically have access to MiX Fleet, using their usual username and password.

PAGE 64

New Releases AutoForum - Nov / Dec 2011 www.AutoForum.co.za

PAGE 65

649 Knowledge Checks to confirm your knowledge

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AutoForum March 2012

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