www.autolive.co.za Issue No. 104 | 14 December 2017 THE BIG CAR TRENDS FOR 2018

“The automotive industry has faced to achieve this goal by 2025. Impressive and afford- a turbulent 2017. Manufacturer able electric and autonomous models are already exits, global political upheaval available but in 2018 we’ll see the big brands fight to launch the first mass-produced electric vehicle. and recalls have proven that the only certainty for the market is Even smarter cars uncertainty – nonetheless, there CES 2017 (the international Consumer Electronics Show in Las Vegas) was choc-a-bloc with proto- are early indications of new trends types boasting some form of autonomous driving emerging,” said Jeff Osborne of capability and intelligence. The Honda Automated Gumtree Automotive. Network Assistant (HANA) artificial intelligence system and the company’s so-called Safe Swarm concept, enabling vehicles to mimic the behavior Global of schools of fish to ensure safer driving, were the Electricity is very current stand-outs. 2018 is likely to see further exciting India, Norway, Britain, and China have an- developments in this space, especially as tech gi- Jeff Osborne, Head of Gumtree nounced their intention to completely eliminate the ants like Google and Apple are either competing or

Automotive. use of fossil fuels in cars by 2040 and Germany vows continued on page 2

Page 7 Page 10 Page 17 Product recall risks keep Black-owned suppliers get Hino wants to rewrite the growing VW contracts Dakar record book Subscribe for free @ www.autolive.co.za Page 2

Editor and Advertising Manager continued from previous page Liana Reiners some reduction of cost but it will also [email protected] place some strain on dealerships and 083 407 4600 insurers, and will seriously compro- mise the vehicle manufactures ability Contributors to preserve the technical and safety Roger Houghton integrity of their products. [email protected] More shifting sands 082 371 9097 among brands

Advertising Sales Chevrolet withdrew from SA dur- ing 2017, following Daihatsu and Liana Reiners The 2018 Nissan Leaf plug-in electric vehicle will be available in Citroën’s departure the year before, [email protected] over 60 markets, including South Africa. and SsangYong effectively paused 083 407 4600 their operations. But Opel decided to stay, with a new distribution Address and service arrangement, and two 237 Rigel Avenue Chinese brands, BAIC and Haval, ar- Waterkloof Ridge rived. The local market probably has Pretoria too many players for its scale so some PO Box 914 005 more changes can be anticipated but Wingate Park they won’t all be negative – there’s 0153 talk of VW bringing the popular 012 460 4448 Skoda range into the country. Volvo is one of the companies that has already made great Website leeway in the development of autonomous vehicles. Consumers will continue trading in and up www.autolive.co.za partnering with traditional manu- improvement mid-2017. This uptick According to the latest VPI by Facebook facturers to gain a slice of the pie. is likely to continue into 2018, with TransUnion, Pre-Owned car prices the huge proviso that the local politi- are climbing while new cars are www.facebook.com/pages/AutoLive The law chases the tech cal and economic environments are priced below inflation for the first © 2017 WCM Media CC The first autonomous motor vehicle relatively stable. time in years. This will no doubt fatality occurred in 2016, which see many consumers “trading up” Production sparked draft bills for autonomous Movement on the – selling their current vehicle and Right to Repair Marketing Support Services and electric vehicle testing in Europe taking advantage of competitively Danie Dreyer and the USA. 2018 will likely see these The proposed New Code of Conduct, priced new cars, particularly since [email protected] bills fleshed out even further as legis- which seeks to provide consumers private vehicle sales are becoming +27 (0)12 346 2168 lation tries to catch up to technology. with the right to choose independ- more commonplace. Gumtree alone ent workshops and alternative parts sees over 1.4 million South Africans LOCAL Layout and Typesetting without voiding their warranties, browsing the pre-owned car section Vehicle sales recovering could lead to legislation. Should that every month, while tens of thousands Sharon Bredenkamp After 18 months of negative numbers happen, it will provide freedom of of pre-owned cars are listed for sale in SA, the new car market saw some choice for consumers and, possibly, at any given time. ■ Disclaimer While reasonable precautions have been taken to ensure the accuracy of the advice and information given to readers, neither the editor, the proprietors, nor the publishers BAIC was one of two can accept any responsibility Chinese brands that for any damages or injury which arrived on the local may arise therefrom. market in 2017.

MONTHLY SALES STATISTICS The growing amount of advertising in AutoLive has made it necessary to relocate the four pages of detailed monthly vehicle sales analysis to the website www.autolive.co.za. CLICK HERE to access Subscribe for free @ www.autolive.co.za Page 3 Retail Vehicle Sales Editor’s Note Continue to Buck

Following on our road safety message in the November issue Negative Outlook in SA of AutoLive, we focus on another danger facing motorists over Retail new vehicle sales in South Africa con- breakdowns using estimates based on the the Festive Season. Previous tinued to buck the negative outlook in both category totals, but this gets increasingly in- research conducted over this the country and the economy as month- accurate as time goes by and new models are period shows clear spikes in over-month increases continued for the introduced by the non-reporting companies. crime during December, includ- sixth consecutive month. Just when there One can only hope that the dti brings ing hijacking. While the reason was growing fear of further downgrades out a big stick to force detailed reporting by for this can only be assumed, you can take definite action to try in credit ratings and increasing confu- all companies benefitting from state support protect yourselves and your families from finding yourself in this sion around the ANC’s upcoming elective for the motor industry. very dangerous position. conference the local sales figures come out You need to be stationary to be hijacked. While it may seem showing growth over the past six months. NAAMSA has its say rather redundant to say so, coming to a complete standstill is However, year-on-year sales are down Led by a strong performance in the new something many drivers still do. Hijackers need you to be station- 2.1%: the cumulative figure for the first 11 car segment, the overall market registered ary, which is why you should never pull into your driveway until months of 2017 stands at 505 903 units, com- encouraging gains of 7.2%, despite the the gate is open. Instead, wait in the road parallel to your driveway, pared to 516 954 units at the same time in continued difficult economic environment ready to go at any moment, while the gate opens. 2016. Good news is that cumulative exports characterised by political and economic Where possible you should also try to avoid stopping com- between January and November, at 326 113 policy uncertainty. pletely at intersections. If conditions allow, anticipate traffic light units, are 4.6% up on the same period last For the second month in succession, changes and drive slowly up to the intersection to avoid stopping year, when 311 638 units were shipped. new vehicle exports had been affected by at all. Remember, however, these techniques can only be effective What is sad is that there is the shadow the impact of recent inclement weather on if you are aware of your surroundings and spot a potential threat of substantial pre-reporting of sales hang- Durban Port operations as well as the model before it reaches your window. ing over the latest figures as many compa- runout and impending new model intro- Shopping centres are one of the areas where crime levels nies chase targets to qualify for lucrative duction of the Volkswagen Polo range. increase drastically. December is also the time when people spend incentive bonuses, hence the large amounts In the event, November 2017 ag- more time at shopping centres. If you find yourself at a shopping of money being put on the bonnets of a gregate new vehicle sales at 49 754 units centre in the coming weeks find a parking space against a wall. wide range of new vehicles at this time of had increased by 3 357 units or 7.2% from Then reverse your car into the parking space. When you return to the year. the 46 397 vehicles sold in November last your car you can offload your purchases while keeping an eye open year. November 2017 export sales at 27 178 for potential threats. The wall at your back also prevents someone Over the past six months, vehicles had registered a substantial decline from surprising you from behind. the domestic car market of 4 315 units or a fall of 13.7% compared to Children are also more likely to be travelling with you during had performed relatively the 31 493 vehicles exported in November December. While none of us wants to consider being hijacked with last year. our children, the reality is that we should. Before you find yourself positively in a challenging Overall, out of the total reported in this situation, teach your children where to sit in the car and what economic environment. industry sales of 49 754 vehicles, an esti- to do if it does happen. Agree on a keyword which will mobilise car mated 38 986 units or 78.4% represented occupants into action. Remember a car is replaceable but a life isn’t. There is further disappointment dealer sales, an estimated 14.0% repre- Your primary objective should be to get yourself and your family out among industry commentators and sented sales to the vehicle rental Industry, the car as quickly and safely as possible. economists regarding the growing number 4.6% to government and 3.0% to industry As 2017 draws to a close, lets end if off on a positive note. Be care- of companies that are not providing corporate fleets. The contribution by the ful not to drop your guard as you enjoy the holiday season. You do detailed breakdowns of retail sales to the car rental sector to sales was difficult to not need to be afraid to step out the house but you do need to be ready Department of Trade and Industry (dti), determine exactly since four companies should you become the target of criminals. The staff of AutoLive wish which makes comparisons difficult. The presently did not report sales by channel. you a peaceful and prosperous Festive Season and we look forward to present list of non-reporters now numbers Supported by attractive sales incen- continued interaction with you, our valued readers, in 2018. four: Mercedes-Benz SA, BMW, Great Wall tives, the November 2017 new car market Motors, and Porsche. had shown upward momentum and at Liana Reiners, These four companies provide only 32 821 units had recorded a gain of 4 614 Editor aggregate figures in the various major seg- [email protected] ments. Lighthouse Auto provides model continued on page 4

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continued from previous page cars or an improvement of 16.4% compared to a surge in year-on-year sales. This is attributed “It’s clear that the rental the 28 207 new cars sold in November last year. to rental car companies re-fleeting ahead of the car companies are The car rental industry had again made a major holiday season. Another growth driver was the contribution accounting for about 19.8% of new passenger car dealer channel, which grew by more planning for a busy car sales in November 2017 – meaning that one in than 8% year-on-year. Festive Season, with sales every five new cars sold during the month repre- “It’s clear that the rental car companies are growth in this channel up sented a car rental sale. planning for a busy Festive Season, with sales by nearly 3 000 units.” Over the past six months, the domestic car growth in this channel up by nearly 3 000 units. market had performed relatively positively in a However, we cannot discount the strong sales challenging economic environment. The major showing for passenger cars in the dealer chan- Evidence of the slowdown in the used market contributing factors had been the continuation of nel,” said Rudolf Mahoney, Head of Brand, and is seen in WesBank’s data. Demand for new highly attractive sales incentives, sharply lower Communications, WesBank. “This growth is vehicles, as measured through the volume of credit new vehicle price inflation, stable interest rates attributed to three main factors: age, value and applications received, grew 3.6% in November. and the ongoing above average demand by car supply of used cars.” Conversely, demand for used cars slowed 2.6%, rental companies. WesBank’s data shows that the current re- year-on-year. The used-to-new ratio for November Overall, a year on year improvement in ag- placement cycle for new cars is at 44 months. The 2017 was 2.16:1 – the lowest this year. gregate domestic sales of around 2.0% for 2017 was ageing carpark means consumers are ready to re- “The current consumer activity in the new anticipated. Going into 2018 new vehicle exports place their vehicles before service and warranty vehicle market is indicative of the appetite for a were expected to recover on the back of positive plans lapse. These consumers also want new good deal. Consumers are willing to buy new when global economic growth prospects. cars that bring a promise of reliability as well as they can see value,” said Mahoney. “However, buy- NAAMSA expects to be able to release the fuel-efficient technologies. For these buyers, the ers should also be responsible and plan ahead when December 2017 and calendar 2017 sales figures on current marketing incentives from OEMs offer considering a car purchase. In addition to ensur- 9th January 2018. excellent value at a time when they are ready ing their budgets can comfortably afford their to replace their cars. Finally, many buyers are monthly instalments for the next five to six years, WesBank’s view simply unable to shop in a used market where they should also leave enough room to absorb Most of the sales growth came from an incredibly stocks are drying up, resulting in price inflation rising ownership costs such as fuel, insurance and strong showing in the rental channel, which saw for used cars. maintenance.” ■

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SA Gets First Crashworthiness Tests

At the end of November Global NCAP and AA Etios Read the full crash test report South Africa launched #SaferCarsforAfrica, with The Etios achieved a four star rating for adult occu- Watch the crash test video the first independent crash test assessment of some pant protection in the frontal crash test at 64km/h. Download crash test image of South Africa’s most popular compact and small The vehicle structure was rated as stable, offering cars. The crashworthiness results of the five cars good general adult occupant protection. The car Datsun GO+ tested showed a wide range of safety performance, included seatbelts with pretensioners for both front The GO+ achieved a one star rating for its poor from four to zero stars for adult protection, with passengers. Using the child seats recommended by adult occupant protection mainly in the Driver the lowest ratings resulting in a high probability of Toyota, the Etios achieved a three star rating for chest in the frontal crash test at 64km/h. The vehicle life threatening injury in a road crash. child occupant protection. structure was rated as unstable, steering wheel The models tested include South Africa’s best- Read the full crash test report movement, even though a steering wheel airbag was selling car, the VW Polo Vivo. The Datsun Go+, Watch the crash test video fitted, recorded high compression to the chest of the Toyota Etios, Renault Sandero and Chery QQ3 also Download crash test image driver dummy. There was no airbag for the passen- underwent the safety assessment. Combined sales ger. The Datsun GO+ achieved a two star rating for of these five cars account for around 65% of all Renault Sandero child occupant protection using the child seats. the new cars sold in South Africa in 2016. Global The Sandero achieved a three star rating for adult Read the full crash test report NCAP chose the entry-level version of each model occupant protection in the frontal crash test at Watch the crash test video and as a result one of them was not fitted with air- 64km/h. The vehicle structure was rated as stable, Download crash test image bags as standard. The results highlight differences offering acceptable general adult occupant protec- in the structural integrity of the vehicles tested. tion. The car did not include seatbelt pretensioners. Chery QQ3 Said Lauchlan McIntosh, Chairman of Global Using the child seats recommended by Renault, The QQ3 achieved a zero star rating for its poor NCAP: “In 2016 the United Nations General the Sandero achieved a four star rating for child adult occupant protection mainly in driver’s head Assembly adopted a road safety resolution which occupant protection. and chest. The vehicle structure was rated as un- recognised the important role NCAPs play as a cata- Read the full crash test report stable as showed collapsed in some relevant areas lyst for improving vehicle safety standards. The UN Watch the crash test video during the impact. Injury impacts recorded in the has sought to encourage the spread of NCAPs across Download crash test image dummy head and chest in particular led to this re- the regions and automotive markets of the World sult. There were no airbags for the adult passengers. and I am delighted that Global NCAP is helping to Volkswagen Polo Vivo The manufacturer did not recommend specific achieve that goal with the launch of the first ever The Polo Vivo achieved a three star rating for child seats which explains most of the points loss crashworthiness programme for cars sold in Africa. adult occupant protection in the frontal crash for child occupant protection. The QQ3 was given “Working closely with our partners at the test at 64km/h. The vehicle structure was rated a zero star rating for child occupant protection, Automobile Association of South Africa, our new as stable, offering acceptable adult occupant considering the poor vehicle readiness to safely campaign is an important first milestone on the protection. The car did not include seatbelt pre- accommodate the child seats. road to Safer Cars for Africa.” tensioners. Using the child seats recommended Read the full crash test report “The crash tests represent an important step in by VW, the Polo Vivo achieved a three star rat- Watch the crash test video road safety in South Africa. We believe consumers ing for child protection. Download crash test image ■ have a right to know what the safety ratings are on the cars they want to buy. These results are critical to educating the public about vehicle safety, but, more than that, they empower road users to make informed decisions. In the same way emissions and green ratings are displayed on vehicles, we think safety ratings should also be displayed on vehicles, and we don’t believe this should be too much of a challenge to make happen,” added Collins Khumalo, CEO of the AA of South Africa. “It is good to see a four star result in these first ever African crash test ratings. However, it’s extremely disappointing that there’s a zero star car. Such a poor result shows why it is so important for countries like South Africa to fully apply the UN’s crash test standards,” remarked David Ward, Secretary General of Global NCAP. “Consumers need clear, comparative crash test information to help inform their car purchase decisions. This is why Global NCAP supports the introduction of mandatory crash test labelling for all new cars sold in South Africa.” Subscribe for free @ www.autolive.co.za Page 7

Product Recall Risks Keep Growing

A faulty pedal causes a car to inadvertently acceler- insurance industry product recall claims from 28 risk,” said Bentele. “We have already seen recalls ate. An outbreak of contaminated peanuts results countries across 12 industry sectors between 2012 due to cyber security vulnerabilities in cars and in a 25% industry-wide reduction in sales. Each and the first half of 2017. Overall defective product cameras.” Innovative but untested technologies of these incidents triggered major product recalls, or work is the major cause of recall claims, followed such as artificial intelligence and nanotechnology resulting in billion dollar losses. by product contamination. The average cost of a sig- could also transform recall risk. Product-related risk is one of the biggest perils fac- nificant incident is in excess of US$12 million (€10.5 Social media is a fast and effective way of com- ing businesses today, with recall exposures having million), with the costs from the largest events far municating with customers but can also exacerbate increased significantly over the past decade, bringing exceeding this total. Over 50% of losses arise from recall risk if not well-managed. “Social media is a real the potential for larger and more complex losses than 10 incidents. The IT/electronics sector is the third game-changer for product recall,” explained Stewart ever before, warns insurer Allianz Global Corporate most affected industry after automotive and food Eaton, Head of Product Recall, UK, AGCS. “An er- & Specialty (AGCS) in a new report. It highlights the and beverage, according to the claims analysis. roneous post or tweet can cause reputational damage automotive industry as being the most impacted by Automotive recalls account for over 70% of the and directly impact the size of a recall, meaning product recalls, followed by the food and beverage value of all losses analysed, which is unsurprising companies need to react faster than before.” sector, based on analysis of insurance claims. given recent record levels of activity in both the Pre-event planning and preparation can have “Product recalls have risen steadily in the past US and Europe. “We see an increasing number a big impact on the size of a recall and the financial decade. We are seeing record levels of recall activ- of recalls with higher units in the automotive and reputational damage sustained. As part of a ity in size and cost today,” said Christof Bentele, industry,” said Carsten Krieglstein, Regional Head holistic risk management program, specialised Head of Global Crisis Management at AGCS. of Liability, Central & Eastern Europe, AGCS. product recall insurance can help businesses “Tougher regulation and harsher penalties, the rise “This is driven by factors such as more complex recover faster by covering the costs of a recall, of large multi-national corporations and complex engineering, reduced product testing times, including business interruption. It also provides global supply chains, growing consumer aware- outsourcing of R&D and increasing cost pressures. access to crisis management services, and consult- ness, impact of economic pressures in research The technological shift in the automotive industry ants, which can test a company’s procedures and and development (R&D) and production and towards electric and autonomous mobility will offer global support in areas such as regulatory even growth of social media are just some of the create further recall risks.” liaison, communications, product traceability contributing factors behind this.” One of the largest recalls to hit the auto industry and tampering investigations and even genome Defective products not only pose a serious to date, involving defective airbags, is expected to sequencing and DNA testing to understand a safety risk to the public but can also cause signifi- result in some 60 to 70 million units across at least product contamination. cant financial damage to the companies responsi- 19 manufacturers being recalled worldwide. Costs “There is now much more attention on how ble. Defective product/work-related incidents have have been estimated at close to US$25 billion. This companies deal with defective or contaminated caused insured losses in excess of US$2 billion incident exemplifies the growing “ripple effect” products, how responsive they are and how re- over the past five years, making them the largest which impacts the automotive sector, but also other silient their safety systems are. More than ever generator of liability losses, according to analysis of industries. Given the use of many common compo- consumers are also part of the agenda and are insurance industry claims by AGCS. Recall claims nents, a single recall can impact a whole industry. driving company behaviour by making their are a major contributor to this total, alongside Cyber recalls may become an increasing reali- choices subject to how companies deal with crises. product liability claims. ty. Hackers could change or contaminate a product A company that embraces crisis management, and The report, “Product Recall: Managing The by controlling machinery in automated produc- makes it part of its DNA, is far less likely to suffer a Impact of the New Risk Landscape”, analyses 367 tion plants. “Cyber is currently an underestimated major incidence,” Bentele concluded. ■ Subscribe for free @ www.autolive.co.za Page 8

Upskill Opportunity for Motor Industry Apprentices

by companies abroad. “If we really want to be workplace approval and funding opportunities successful in addressing the skills deficit in SA, available through merSETA,” explained Botha. all stakeholders in the industry need to par- At the beginning of October those work- ticipate and create opportunities for youngsters shop representatives who attended were asked to who are passionate about the industry and need indicate their interest in the project. “Just over 100 to be trained formally,” said Ilze Botha, Group companies indicated their interest. A hugely posi- Training Manager, Bidvest McCarthy. tive response,” said Niemand. According to Niemand there are currently Communication followed outlining the many people who have worked in the industry documentation required to participate in the for many years who have not had the opportu- project and the process to be followed. “To date, nity to get their formal trade certificate. “We 31 companies have submitted the initial funding are looking at a culture change in the indus- request documents and are now formally part try where formal training becomes the norm. of the project. We have 88 apprentices that have This will improve the industry’s credibility applied for funding split into 67 from the motor and promote that being a qualified artisan is a trade, 13 from the diesel trade and 7 automotive professional career which in turn will assist in electricians,” explained Botha. Split by region attracting youngsters to the industry.” there are 33 in Gauteng, 23 in KwaZulu-Natal and 32 in the Western Cape. “We are looking at a culture The total value of the project in respect of change in the industry where discretionary grant funding is approximately R13 million. formal training becomes the Once the project implementation is finalised norm.” and the training can commence, the next phase of the project will kick off. This will include The project plan roll-out started with presenta- revisiting the other companies who indicated Pieter Niemand, Director of MIWA. tions to workshop owners around the country their interest but who have not continued with from May to September. Those who attended were the process. A year ago, the Motor Industry Workshop informed about the benefits of apprentice training Niemand believes that although over 100 Association (MIWA) entered into discussions with and the funding opportunities available through responses received is a great start, there is still a Bidvest McCarthy regarding training needs and merSETA (in the form of Discretionary grants) and lot of work to be done. “I want to encourage all possible solutions for the independent aftermarket. SARS (through learnership tax rebates). workshops in the sector to consider the formal To date, 31 companies and 88 apprentices have “Further to just being a national training training of apprentices. We have to start making a applied for funding through this initiative with provider and a trade test centre, we offer as an difference in our industry and this is a great way to the aim to address the artisan skills shortage in additional benefit, assistance with administration, do it,” he concluded. ■ our country. “This is a brilliant step forward for us as an industry,” said Pieter Niemand, Director of MIWA, a constituent association of the Retail Motor Industry Organisation (RMI). He explained that a project plan was mapped out and agreed on in April this year. “We believe we have to mobilise the aftermarket sector of the motor industry to start with formal apprentice training. As it takes four years to train an appren- tice until they qualify, the sooner we start with the formal training process, the sooner the aftermarket sector will start to contribute to addressing the skills shortage in SA.” For many years the industry depended on the larger dealer bodies to train and qualify artisans but this has proved to no longer be sustain- able. Less people are entering the industry and at the top end qualified artisans are recruited Subscribe for free @ www.autolive.co.za Page 9

Automechanika Riyadh Turns Focus on Growth Potential of Saudi Automotive aftermarket

The expected influx of Saudi drivers from 2018 will “Revenues for Saudi’s aftermarket, includ- “It gives us great pleasure to continue our have a significant impact on the auto parts, main- ing tyres, batteries, lubricants, and other engine association with Messe Frankfurt Middle East tenance and services industry, with manufacturers components and accessories, was worth more than and extend the reach of the Automechanika brand and suppliers advised to stake their claim early in a US$6.7 billion in 2016, so it’s already a significant into Saudi’s Central and Eastern regions,” said market full of new opportunities. market, and the largest in the Middle East,” added Hadi Al-Harith, CEO of Automechanika Riyadh’s According to Ahmed Pauwels, CEO of Messe Pauwels. co-organiser, Ace Group. “Saudi’s decision to Frankfurt Middle East, co-organiser of Auto- “Earlier predictions had slated the market to allow women to take to the wheel in the Kingdom mechanika Riyadh 2018, Saudi’s decision to al- be worth US$8.9 billion by 2021, however with this is certainly good news for aftermarket stakehold- low women to drive from June 2018, along with new decree, it will likely be much higher. The key ers, and will add to the buzz on Automechanika other recent economic initiatives, bodes well for now for aftermarket players is to reinforce their Riyadh’s show floor when its doors finally open in many industries, however the Kingdom’s auto- existing presence if they already have one in the February 2018. motive aftermarket is among those that could Kingdom to capitalise on the latent opportunities. “Women comprise about 45 per cent of the to- benefit the most. Or for those that don’t have a presence, the time is tal Saudi population and nearly ten million of them “Saudi already has more than seven million right to establish new partnerships and networks.” are between the ages of 15 and 64. Additionally, passenger vehicles in operation, and this will The strong global and regional presence of ex- around 65 per cent of the Kingdom’s women plan increase significantly in the coming years, with hibitors at Automechanika Riyadh 2018 will be look- to apply for a driving license as soon as the law al- potentially nine million new drivers added to the ing to do just that, spearheaded by the show’s Launch lows it, while around 85 per cent of the women set roads,” said Pauwels. Partners O2Proformance, and Samir Odeh Group, to take the wheel are planning to buy cars. “Automakers will be the first to benefit, along which specialises in the distribution of Original “The resulting growth in vehicle sales is with banks and insurance companies that finance Equipment Manufacturer parts from Europe. expected to have a ripple effect on the aftermar- and underwrite new car purchases, however the af- Other headline exhibitors at Automechanika ket, with significant impact on demand for parts termarket comes next, when these millions of addi- Riyadh 2018 include Dubai-based Mineral Circles and services, procurement, repair and mainte- tional cars require regular repair and maintenance, Bearings (MCB), Japan Toyomoto, American head- nance – the latest of which will be on show at replacement parts, tyres, batteries, accessories, car quartered Donaldson, ZF Services from Germany, Automechanika Riyadh 2018,” added Al-Harith. care and grooming.” and Spanish company Blinker. The inaugural Automechanika Riyadh 2018 is expected to Pauwels’ comments come ahead of the event will also feature country pavilions from attract more than 4 000 Saudi trade visitors and inaugural edition of Automechanika Riyadh, the Germany, Italy, Spain, UK, and China. the inaugural show will also feature the Truck largest dedicated trade show for Saudi’s aftermar- The Riyadh event is the 17th global instalment Competence initiative, where more than half of the ket in the Kingdom’s Eastern and Central regions. of Automechanika, the world’s most successful exhibitors will showcase their products dedicated The biennial three-day event takes place from 5 automotive aftermarket trade fair brand. It will to the entire value chain in the truck sector, from to 7 February 2018 at the Riyadh International alternate between the Messe Frankfurt-organised truck parts and accessories, to workshop equip- Convention and Exhibition Centre, and will fea- Automechanika Jeddah, which will next take place ment, body repair and care. More information is ture more than 150 exhibitors from 20 countries. in February 2019. available at www.automechanikariyadh.com. ■ Subscribe for free @ www.autolive.co.za Page 10

and by offering business mentorship and training VW Awards Black-owned to up-and-coming suppliers, Volkswagen hopes they will rise to great heights in the automotive sector and beyond. Supplier Contracts The five winners in no particular -or der are: Bona Once Bona Twice CC, Jamsco At the end of November, the winners of the Ntinga and Managing Director of Volkswagen Group Automotive Assemblies (Pty)Ltd, KPL Die Project were announced following a full day of South Africa; Takalani Tambani, Head of the Black Casting (Pty) Ltd, Production Logix (Pty) Ltd and presentations. Five Suppliers were named the win- Industrialist Programme (DTI); Siphamandla Thekwini Wire and Fasteners (Pty) Ltd. ners and handed a supply contract which will come Ndawonde (VWSA B-BBEE Trust), Ndulela Canca, “The caliber of presentations today showed in to effect once they complete a 18-month training VWSA Purchasing Manager and Junior Lechaba, us that there is a lot of potential in the market, and mentorship programme successfully. VWSA Quality Manager all these suppliers need is guidance, training and Each of the 10 finalists was given 25 minutes to The Ntinga Project, which was launched on 19 a helping hand,” said Thomas Schaefer, VWSA present themselves, their company and their prod- October with the announcement of the 10 finalists, Chairman and Managing Director. ucts to a panel of expert judges who listened, ques- was followed by intensive mentoring to each final- The five winners now start an intensive tioned and analysed each presentation. The panel ist by an existing and established VWSA supplier. 18-month mentoring programme run by VWSA of judges included Thomas Schaefer, Chairman Ntinga is an isiXhosa word which means to soar Learning Academy, VWSA B-BBEE Trust, ASCCI (Automotive Supply Chain Competitiveness Initiative) and other VWSA divisions to ensure that they receive a wide range of skills that will make them successful at the end of the 18 month mentorship journey. “Volkswagen is committed to developing and supporting these five up and coming black-owned suppliers. We have the resources, skills and know how in-house and together with our partners we can ensure that they will succeed. It’s only five, but it’s a start and we aim to continue to develop B-BBEE suppliers in the Automotive Sector,” com- mented Thomas Schaefer, VWSA Chairman and Managing Director. ■

Thomas Schaefer, VWSA Chairman and Managing Director (far right) with representatives of the five black-owned suppliers who have been awarded contracts. Misconceptions Over Original Parts

The hotly debated draft code of conduct for the mo- aftermarket. These manufacturers produce for the life conditions, thereby providing a part that will tor industry has once again brought into the spot- independent aftermarket according to the same perform to the exact or better standard than the light the issue of original parts. According to Right quality standards. original part.” to Repair SA (R2RSA) Director, Les Mc Master, an Said Mc Master: “Aftermarket parts are a good Mc Master concluded that the new-car mar- impression has been created for consumers that option, especially if your car is three to four years ket in South Africa unfortunately still burdens original parts can only be obtained from Original old. Of course there are inferior parts out there consumers with warranties which dictate the use Equipment Manufacturers (OEMs), that they are but by sticking with brands you know and those of original parts. “In many first-world countries, superior parts, and independent workshops deal in recommended by a reputable, accredited workshop this is a thing of the past and consumers are free to inferior, or commonly referred to as pirate parts. that knows your vehicle and uses the right prod- use aftermarket parts in their vehicles without af- “The reality is that probably 99% of the parts ucts and parts, you can get the same performance fecting the warranty. This is the kind of change we required for repairs (excluding accident repairs) out of aftermarket parts versus OEM and original desperately need in South Africa and which is why and maintenance are manufactured by Original parts, at a lower cost.” R2RSA is at the forefront of lobbying for change Equipment Suppliers (OES) like Bosch, Mahle and He added that the aftermarket also has the and legislating the Right to Repair initiative in GUD. OEMs buy these same parts off the assembly advantage of access to parts with an improved South Africa. Right to Repair has been advocated line, by commission, and sell them to the aftermar- design. “After a vehicle has been on the market and legislated in first-world countries around the ket repackaged with their logo on them,” explained for a few years it becomes apparent what parts fail world since the early 80s. It promotes consumers Mc Master. and for what reason. A quality parts producer will having the right to choose where their vehicles are These same parts from the OESs and the same redesign the part, correcting the fault that only serviced, maintained and repaired at competitive production lines are available to the independent becomes apparent after the part is used in real prices in the workshop of their choice.” ■ TECH COLLEGE AD NOV 3/14/16 12:53 PM Page 1 C M Y CMSubscribeMY CY CMY forK free @ www.autolive.co.za Page 11

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Corporate Social Responsibility

JLR Volunteers Map the Way

In Jaguar Land Rover’s largest ever volunteering During the two-hour event, using the organisations around the world, helping to advance activity, more than 150 employees took part in Humanitarian OpenStreetMap Team Tasking knowledge and improve lives. The company en- the company’s first ‘Mapathon’ event plotting Manager, each volunteer was allocated a square courages employees to join volunteering projects to roads, rivers and buildings across a sprawling of territory to trace through satellite images and support communities globally and to develop skills area in the Kurigram District of Bangladesh outline features such as buildings, roads and rivers. beyond their normal roles. using satellite imagery. The event marked The maps produced are open data, and Red Cross Jaguar Land Rover has supported the International Volunteer Day and celebrated a and other non-governmental organisations can use International Federation of Red Cross (IFRC) and 64-year partnership between Jaguar Land Rover the maps when they respond to crises. Red Crescent Societies since 1954 and has supplied and the Red Cross. In 2016, 25 per cent of Jaguar Land Rover’s 120 vehicles to the IFRC for deployment in all Jaguar Land Rover employees joined a global global workforce volunteered more than 100 000 corners of the globe. community of volunteers mapping areas where hu- hours to support team education visits and com- This initiative covers a variety of humani- manitarian organisations, such as the Red Cross, munity projects focusing on regeneration, the tarian programmes around the world, such as are helping vulnerable people. Bangladesh was environment, education, support for young people health awareness in South Africa; social care chosen to support the Red Cross’ work in the area and charity work. in Italy, Portugal and the UK; resilience in to implement disaster risk reduction activities and With more than 42 000 employees glob- Australia; and water and sanitation projects in increase resilience of communities. ally, Jaguar Land Rover works closely with South Sudan and Burundi. ■

VWSA Invests in the Future of Local Soccer

After stiff competition, the u/12 team repre- tournament in June next year to represent South senting McCarthy VW Constantia (based in Africa and will be competing with countries like Johannesburg) are the winners of this years’ , , France, Germany, Italy, Japan, Volkswagen Junior Masters soccer tournament, Netherlands, South Korea, Spain and the USA. held at Wits University from 8 to 9 December 2017. “Not only is it a pleasure for Volkswagen to The tournament, which sees teams sponsored support this annual soccer tournament, but we by Volkswagen Dealerships from around the are also thrilled to be sponsoring the winning country, saw 16 teams consisting of nine u/12 boys McCarthy VW Constantia team with an all- contesting the championship in a knockout format. expenses paid trip as they represent South Africa “A key differentiator of the Volkswagen at the international tournament in Germany next Junior Masters tournament is the investment year,” added Schaefer. into soccer as well as investing into the talent and The international Volkswagen Junior World skills of young soccer players from previously Masters started in Germany in 1999 and has disadvantaged areas in South Africa. This year’s progressed to be one of the biggest youth football competition saw a quarter of the teams present competitions in the world and is currently held in being developmental teams with youngsters from more than 20 countries. various townships across South Africa,” said “It will be the fifth time that Volkswagen Thomas Schaefer, Volkswagen Group South Africa South Africa will be represented at this interna- Chairman and Managing Director. tional soccer tournament and we wish the boys The McCarthy VW Constantia team will be and technical team well at the tournament,” jetting off to the Volkswagen Junior World Masters concluded Schaefer. ■ Subscribe for free @ www.autolive.co.za Page 13

Corporate Social Responsibility Nissan Gives the Gift of Water

Nissan South Africa has donated a fully function- communities we work in has always been a priority al water system to Bahlologa Secondary School in for Nissan, so when we received the request from Lonsdale, Limpopo. The vehicle manufacturing the Bahlologa Secondary School, we knew we had company unveiled the water system to excited to help. Access to water is a basic human right and learners, teachers and community leaders earlier it’s the gift of life. this month. “After we conducted an analysis, we realised A few months ago, Nissan received a request how important their request was and decided for a water tank from the Bahlologa school and after to do much more than just donate a water tank. conducting a needs analysis, they decided to support Part of Nissan’s global corporate social respon- the school by overhauling the borehole system. sibility strategy is to enrich the lives of everyone The new water system has enabled all four on this planet and this obviously starts in our taps within the school to operate whereas previ- own back yards.” ously, only one tap was operational on the entire Nissan staff have also pledged their time to the school premises. Needless to say, a school with school and shared words of encouragement with hundreds of learners only having access to one the learners in an effort to illustrate that there are functional tap was extremely stressful and chal- companies, such as Nissan, which are willing to lenging for all involved. listen to people and help when they can. ■ Said Keba Matlhako, Nissan SA Corporate Social Responsibility Manager: “Giving back to the

spends a combined total of 10 days working with KIA Renovates Healthcare local people, completing home-visits and joining educational activities. Since 2012, KIA has supported a series of Centre in Uganda communities and initiatives in Africa through its Green Light Project to provide easier access KIA Motors Corporation formally handed over a “As with all of our Green Light Projects, it gives us to health, education and employment. Green healthcare centre in the town of Mayuge, eastern great pleasure to pass management of the Ugandan Light Projects in Ethiopia, Kenya, Mozambique, Uganda, in November, having funded the build of healthcare centre over to the people of Mayuge.” Tanzania and Malawi have resulted in the suc- the facility and its day-to-day management dur- To support Green Light Project, a number of cessful establishment of five schools and a health ing a start-up phase. The centre, which provides KIA employees from around the world visit one centre with a mobile clinic. The latest projects much-needed medical support in the region, has of GLP locations as part of a Green Light Project bring the total number of Green Light Project been renovated and furnished with new medical global employee volunteer group. The group locations to seven. ■ equipment as part of KIA’s ‘Green Light Project’ initiative – a corporate social responsibility (CSR) program which aids social mobility and self-sufficiency. KIA’s Green Light Project – started by the carmaker in 2012 – strives to improve access to healthcare, education and employment for disadvantaged communities in Africa, in particular by helping to establish much-needed facilities. The program seeks to improve social mobility and self-sufficiency, and help people challenge and overcome any obstacle. With the establishment of each Green Light Project facil- ity, KIA’s final goal is to hand over full control to a local community. “KIA has handed over a number of Green Light facilities across Africa, with the aim of providing local people an opportunity to build better lives through improved access to healthcare, education and vocational training,” said Kyehwan Roh, KIA Motors CSR management team leader. Subscribe for free @ www.autolive.co.za Page 14 Subscribe for free @ www.autolive.co.za Page 15

Working Wheels

Hino 500 Now in Local Production

The latest range of Hino 500 Wide Cab trucks has Japan by commercial vehicle journalists and Hino us to regain our dominance in the local heavy gone into production at Hino South Africa’s world SA customers, as well as a public launch at the commercial vehicle market.” class assembly plant in Prospecton, near Durban, Futuroad Truck Expo, which was co-located with The traditional line-off ceremony was -at and units are already on the way to dealer- Automechanika Johannesburg at the Johannesburg tended by senior executives from ships countrywide. The Hino 500 range is being Expo Centre in October. Japan, customers, dealers, media, officials from expanded from five models to 12 in the first full “The increased Hino 500 range, including 6x4 the KwaZulu-Natal provincial government, model change in 14 years. models, will allow us to compete in many niche eThekwini municipality and all the team mem- The start of production follows the longest and segments we were not in previously,” explained bers in the factory. most intensive pre-launch marketing programme Ernie Trautmann, the Vice President of Hino SA, The introduction of this latest model into the by Hino South Africa. This included road shows speaking at the recent line-off ceremony for the Prospecton facility involved an investment of in Gauteng, the Western Cape and KwaZulu- new model. “The many additional features in the more than R20-million by Hino SA, with several Natal and will continue to Namibia and Botswana new Hino 500 model range, as well as competitive significant changes to the assembly process. in January 2018. There were also visits to Hino pricing, and the much bigger line-up should enable Most of these are aimed at improving productiv- ity and quality, while lessening the physical load on team members. The current plant, which has been in opera- tion since 2013, has a production capacity of 5 000 trucks a year on a single shift, with total manning increasing recently by 10 people to a total of 113. Masamichi Mizukoshi, the Managing Officer of Production and Production Control at Hino Motors Limited, who attended the line-off cer- emony, said he was highly impressed with the plant in Prospecton. He challenged the team members to work together to strive to become the highest qual- ity Hino plant outside Japan. “Hino has been in South Africa for 45 years and Toyota South Africa Motors is one of the old- est Hino distributors in the world, so we are very pleased to be able to now offer the latest model in the local heavy truck market,” said Calvyn Hamman, Senior Vice President of Sales, and Marketing at TSAM. “The 500 is a very important model in our local Hino range as we accelerate our sales rate in all segments of the market as part of our 2020 Vision of becoming the top-selling truck brand in South Africa post 2010.” ■ Subscribe for free @ www.autolive.co.za Page 16

Working Wheels

Shell SA Branded Distributor Driver of the Year Announced

Shell Commercial Fuels South Africa announced Health, Security, Safety and Environment (HSSE) each of our distributor drivers go home safely to the winners of their 2017 Trucker of the year com- manager Imraan Ally. their families, and to help reduce the carnage that petition last month. Drivers that do not perform well are re- occurs daily on our roads. As of October 2017, our “We were honoured to have the Executive trained by the driver trainers to reinforce the right results have shown that we have achieved 1764 days Mayor of Sedibeng, Cllr Busisiwe Modisakeng behaviours and only the top two drivers from each of Goal Zero with our distributors and 1036 days of and the Hon. Mohatla Tseki, Member of Roads & distributor enter the finals. Goal Zero results for products.” Transport Portfolio Committee, Gauteng Province “The initiative is in line with our strategy of The Shell Branded distributor model is Shell’s join us in recognising the stars who make the Shell Goal Zero that promotes no harm to people, the extended route to market where small – mostly Branded distributor network the success it is today”, environment and assets,” said Nischal Sancho small medium micro enterprises – are licensed said Shell Downstream SA Commercial Fuels Shell SA Trading and Supply Products Manager. franchisees of Shell who buy and sign into Shell Marketing Executive Millicent Mulelu. “The even- “Our mission is to foster a culture that ensures that values and ethos. ■ ing was a great way to end a hard year’s work and we look forward to the new year and what it will bring.” The competition itself consisted of 5 challeng- ing events that included: first aid and firefighting handling tests, a written theory exam, completing an obstacle course and on road driving assessment. The events took place over two days and final win- ners were announced as follows: ■■ First prize of R15 000 was awarded to – Pieter Jacobs (Sebokeng Fuels). ■■ Second prize of R10 000 was awarded to – Terrence Geduld (Moov). ■■ Third prize of R5 000 was awarded to – Lionel Bergman (Triangle Petroleum).

“The Shell Branded Distributor Driver of the year competition is a Shell initiative aimed at develop- ing excellent driving skills from our distributors. Every month our drivers’ performance is tracked using a proactive and reactive criterion. Positive and negative scores are monitored to ensure that we have a full understanding on where correc- tive intervention is needed,” explained Shell SA

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Hino Aims to Rewrite the Dakar Record Book in 2018

Team Hino Sugawara is ready to tackle the challenges of 2018.

Hino Motors, of Japan, aims to rewrite the record min in Truck No. 1, to be crewed by Yoshimasa entries. The remainder of competing brands are: book in the 208 Dakar Rally which takes place in Sugawara and navigator Katsumi Hamura. Mercedes-Benz and DAF (5 each), , January, starting in Lima, Peru, on the 6th, with a In both cases the engines deliver 2 314 Nm of and Tatra (4 each), Maz and Renault (3 each), Hino rest day in , on the 12th and finishes torque at 1 200 r/min. Transmission is via a (2), Ginaf, Scania and Liaz (1 each). in Cordoba, Argentina on the 20th. six-speed gearbox with hi-lo shifting. Each truck “While the top positions in the truck category This will be the 40th edition of the famous and carries 700 litres of fuel. of the Dakar Rally are dominated by monster very demanding Dakar Rally and the fourth to be Significant changes have been made to the trucks with engines having capacities of more than staged in . The demanding route will suspension and other aspects of these racing trucks 10 litres, the Hino team continues to battle with be made up of 5 000km of timed, racing stages and since the . In addition, the team its rivals under the motto ‘small can prevail over 4 000km of road sections between the timed stages. has participated in the Silkway Rally and Rally large’,” said Yoshimasa Sugawara, the team princi- Hino, which was the first Japanese truck Mongolia in the intervening months to ensure the pal of Team Hino Sugawara. manufacturer to enter the Dakar Rally in 1991, will trucks are both fast and reliable as the team prepares “We are very proud that we continue to be aiming for its third consecutive 1-2 finish, ninth to take on the rigours of the . rewrite the records on reliability by bringing straight win in the class for trucks with engines Team Hino Sugawara will be backed up by a together Hino’s engineering capabilities in truck under 10 litres capacity and the 35th consecu- team of technicians selected from Hino dealerships design, development, manufacturing, and servic- tive entry by driver and director of Hino Team in Japan. ing expertise, with a closely-knit team that has Sugawara, Yoshimasa Sugawara. There are 44 entries in the truck category for accumulated a great deal of experience over the Yoshimasa, nicknamed Iron Man of the Dakar the 2018 Dakar Rally made up of 12 brands. MAN years. We are looking forward to the challenges and now 76, entered the motorcycle category of the is the most popular brand in the field with 11 that the 2018 Dakar Rally will throw at us.” ■ Dakar Rally in 1983 and has competed in every event since then. His partnership with Hino began in 1992 when the rally ended in Cape Town. His 34th entry in the 2017 Dakar was recognised as a Guinness World Record. Yoshimasa’s son, Teruhito, is the team’s lead driver and last year achieved his eighth consecutive win in the under 10-litre category, rewriting the record book which had previously seen Hino notch seven successive class wins between 1996 and 2002. The team will again enter two Hino 500 four-wheel drive trucks with turbocharged, 9-li- tre engines developing 515 kW (600ps) at 2 400 r/min in Truck No. 2, to be crewed by Teruhito Sugawara and navigator Mitsugu Takahashi, and The two Hino 500 four-wheel drive trucks which will contest the 2018 Dakar Rally put in slightly downrated at 493 kW (670ps) at 2 300 r/ some high speed laps at Hino’s test track in Japan. Subscribe for free @ www.autolive.co.za Page 18 Toyota is ready for Dakar 2018

Toyota Gazoo Racing SA recently announced the this year, their third in a , and they team destined for Dakar 2018. The Japanese manu- are looking forward to taking the all-new race facturer has been a force to be reckoned with in vehicle into battle on Dakar 2018. the Dakar Rally since first fielding a Toyota Hilux “The Toyota Hilux has a reputation for reli- in 2012, and their latest all-new Toyota Hilux ability and durability,” said Al Attiyah of the promises a leap forward which, combined with car. “This new version is sure to take all the best an all-star driver line-up, will ensure that Toyota characteristics of the previous model, and deliver Gazoo Racing SA is ready to take on the Dakar new levels of handling and balance thanks to its Rally in January 2018. innovative design.” and . Toyota stalwart and former Dakar win- The third crew in Toyota Gazoo Racing SA’s ner, Giniel de Villiers, will again partner with line-up will be Dutch driver Bernard ten Brinke, I’m really proud to be incorporated as one of the German navigator Dirk von Zitzewitz. The pair who will have French navigator Michel Périn team’s own drivers.” last won the world’s most gruelling automotive beside him in the Toyota Hilux. Ten Brinke is no The three crews will all be driving the all- race in 2009, but have gone on to attain four stranger to the Dakar Rally, having taken part new Toyota Hilux, which features a mid-engine podium finishes for Toyota. since 2012. He raced a Toyota Hilux as part of the layout and a fresh suspension geometry. The new De Villiers recently clinched the South Overdrive Racing team in 2016, but 2018 will be his car conforms to the latest rules as set out by the African Cross-Country Series championship with first outing as a full works driver. FIA, and will race with a 38 mm air restrictor in a round to spare, with navigator Dennis Murphy Dakar 2018. beside him. “The Toyota Hilux has a reputation “The FIA has been working hard to try and De Villiers/Von Zitzewitz will be joined in the balance the performance of the turbodiesel-pow- for reliability and durability,” line-up by Qatar’s Nasser Al Attiyah and French ered cars and the naturally aspirated V8s, such as navigator Mathieu Baumel. The pair also raced ours,” explained Toyota Gazoo Racing SA Team with Toyota Gazoo Racing SA at Dakar 2017, “I’m looking forward to being part of the Principal, Glyn Hall. “This is an ongoing process, winning the opening stage and leading the Dakar factory team,” said Ten Brinke. “I’ve always had and while neither camp will probably ever be before retiring on Stage 3. Al Attiyah and Baumel vast respect for the team, and even though our entirely happy with the rules, we are confident won their fourth FIA Cross-Country World Cup race car has come from South Africa in the past, that the latest changes give us a better shot at Dakar 2018.” The bigger restrictor, 12% increase in suspen- sion travel and lower weight is sure to play a large role, as Dakar 2018 starts in the big dunes of Peru, where the soft sand will sap the Toyota V8 of power. The race then moves to Bolivia, where the stages take place at extreme altitudes, before finally descending into northern Argentina for the final part of the race. The 40th edition of the Dakar Rally starts in the Peruvian capital of Lima on January 6th, and ends in the Argentine city of Cordoba on January 20th. “The Dakar Rally is undeniably the world’s toughest automotive race,” concluded Hall. “The terrain, temperatures, altitude and navigation all play major roles. But to us it is also the ultimate challenge, and we are looking forward to continu- ing our quest for glory this coming January.” “The undeniable toughness of the Dakar Rally is a perfect fit for the Toyota Hilux,” said Calvyn Hamman, Senior Vice-President of Sales and Marketing at Toyota SA Motors. “Dakar provides us with a showcase for the legend- ary reliability of the Toyota Hilux, and we look forward to taking part in the 40th edition of this special race.” ■