autoforum may:june 2016

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AutoForum - May / June 2016

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May / June 2016

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CONTENTSCover StoriesKeeping the SA sector skilled 20

T-Systems Digital transformation event 28

Volvo Trucks at Gerotek 42

Big Blue - The new Iveco Daily 44

News ForumMIWA drives Right 2 Repair SA campaign 14

Repair Information Access Agreement a flop 16

"Dunlop manufacturing site gets a R2Bn upgrade 18

Keeping the SA sector skilled 20

VWSAs 1st black-owned supplier day 22

"Most admired companies in 2016 24

T-Systems Digital transformation event 28

Future drivers still want to actually drive themselves 30

"The market exodus to pre-owned results in even further declines

32

SA Shows launches the Festival of motoring 32

VWSA honours top dealers 33

Merc debuts natural fibre roof 34

Trade TalkAuto Innovation Awards winners 6

Volvo plans On 1M electric cars by 2025 10

Poweroad Africa powers up SA 10

Google partners with FCA to test self driving cars 12

New National Manager appointed at Amasondo 12

Tributes 12

Editorial

The middle of the year is upon us and 2016 is proving to be the toughest yet - not only in the economic slowdown and belt tightening of consumers, but also thanks to large drought across the nation. But we know that what goes down must also come back up again, so keeping afloat at this time is key, while preparing for the upturn is optimal. Consumers who cannot afford a new car are looking at used or hanging on to what they have - teach them why its key to keep those cars in good nick. The continuous education is not only for yourself and staff, it translates into cash where your customers are concerned!

Enjoy the read!Clare

EDITOR: CLARE RUTKIEWICZ

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

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Commercial VehiclesOverloading just defeats all the safety features 36

Beyond the Cost of Ownership 38

"Is your driver the next highway hero? 39

"Big Blue - Iveco launches the new Daily 40

Volvo Trucks at Gerotek 42

"Isuzu Trucks book collection drive 44

Top UD Trucks dealers 46


PAGE 4

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 thepublishers.

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AutoForum - May / June 2016Trade Talk AutoForum - May / June 2016 www.AutoForum.co.za

Auto Innovation Awards winners

Audi claimed three wins at the recent Automotive Innovation Awards, which are presented by the research institute Center of Automotive Management (CAM) and PricewaterhouseCoopers AG (PwC).

Audi won the Most Innovative Premium Brand main prize, as well as receiving awards for its innovations in the categories Connected Car and Vehicle Concepts/Body.

These awards are both praise and motivation for our team, said Dr. Stefan Knirsch, Member of the Audi AG Board of Management for Technical Development.

We are an innovation driver for classic and alternative drive systems, lightweight construction and production processes, connectivity, driver assistance and piloted driving and we are working continuously to maintain our Vorsprung durch Technik.

Over 1,400 innovations from 20 car manufacturers and 50 brands were considered for the award, which were held at the end of April in Frankfurt am Main.

The awards comprise 13 categories. They include awards for the most innovative carmaker, the most innovative car brand, conventional drive systems, alternative fuel powertrains, safety systems, connected cars and vehicle concepts.

The Hyundai Motor Company meanwhile won the Most Innovative Volume Manufacturer in the Alternative Powertrains category.

Automotive Innovations Award (Left to right): - Felix Kuhnert, Leader Automotive Pricewaterhouse Coopers AG; Dr. Stefan Knirsch, Member of the AUDI AG Board of Management for Technical Development; Barbara Hahlweg, Presenter; Prof. Dr. Stefan Bratzel, Director Center of Automotive Management

PAGE 6

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AutoForum - May / June 2016Trade Talk AutoForum - May / June 2016 www.AutoForum.co.za

Poweroad Africa powers up SA

Poweroad Africa is set to make its mark in the electric power market in South and Sub-Saharan Africa.

Born out of the former Powertech subsidiary Powertech Africa, the new company started trading 1 April 2016 and is headed by Darin Mac Allister, Managing Director, and Neil Borthwick, Sales and Marketing Director. The company is currently based at the Powertech premises in Bryanston.

According to a recent statement, the company has its goal firmly fixed on the being the top single source solutions provider (SSSP) for any power needs across the entire power continuum.

It offers an extensive range of world class products and services to help facilitate the flow, distribution and storage of energy from generation through to the plug point.

For each product category, it has teamed up with world leaders in their respective fields. The expanding list of products and international partners currently includes transformers (Beta Transformers), solar panels (Amerisolar), energy storage systems (Alpha ESS), UPS and inverters (Makelsan), LV electrical and lighting solutions (Elmark) and cable accessories (TTAF).

Poweroad Africa explains that it goes beyond product supply and that its core offering includes assisting with entire power projects, in particular in the renewable energy market.

In order to facilitate the entire project from green fields to commissioning, the company offers EPC support of highest quality through select partners. In addition, it facilitates the funding of projects. and thus adds additional value to its customers.

Volvo plans On 1 M electric cars by 2025

Volvo Cars says it is aiming to sell a total of up to one million electrified cars by 2025.

The Swedish company plans to achieve this aim by offering at least two hybrid versions of every model in its range and releasing its first all-electric car in 2019.

It is a deliberately ambitious target, said Hkan Samuelsson, president and chief executive of Volvo Cars. It is going to be a challenge, but Volvo wants to be at the forefront of this shift to electrification.

Volvo Cars has been readying itself for the emergence of electrified vehicles for the past five years. It has developed two all-new vehicle architectures for larger and smaller cars Scalable Product Architecture (SPA) and Compact Modular Architecture (CMA) that can incorporate either hybrid or fully electric car technology.

Its larger 90 series and 60 series cars are to be built on SPA, and it will soon launch a global range of smaller 40 series cars on CMA. All of these cars will have electrified versions. The one million electrified car target is a cumulative total. The new electrified car pledge forms part of a wide-ranging review of Volvos strategic sustainability programme announced recently, which contains several new commitments that place sustainability at the centre of its future business operations. The new commitment has been christened omtanke, which is a Swedish word that means consideration or caring.

PAGE 10

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AutoForum - May / June 2016Trade Talk AutoForum - May / June 2016 www.AutoForum.co.zaGoogle partners with FCA to test self driving cars

The Google Self-Driving Car Project and FCA announced early this month that the two companies would be initiating a new collaborative programme, in which Googles self-driving technology will be integrated into 2017 Chrysler Pacifica Hybrid minivans.

This will see the expansion of Googles existing self-driving test programme taking place in 4 US cities and marks the first time that it has worked directly with an automaker to integrate its self-driving system, including its sensors and software, into a passenger vehicle.

Engineering responsibilities will be shared based on each companys respective expertise - FCA will initially design and engineer around 100 vehicles uniquely built for Googles self-driving technology, while Google will integrate the suite of sensors and computers that the vehicles will rely on to navigate roads autonomously.

Both companies will co-locate part of their engineering teams at a facility in south eastern Michigan to accelerate the design, testing and manufacturing of the vehicle.

Although controversy remains regarding autonomous vehicles (see Drivers still want to actually drive page 30), self-driving cars have the potential to prevent thousands of deaths annually, 94 percent of which are caused by human error.

New National Manager appointed at Amasondo

Mdaba Mhlanga has been appointed National Manager for Amasondo Fleet Services, a 60% owned division of Eqstra Fleet Management. Ndaba will be responsible for the management of a number of PFMA fleet management contracts which include a number of municipalities throughout South Africa and the City of Johannesburg A400B contract.

Tributes:

John Alan Sproson

Leadertreads John Spronson passed away peacefully after a short illness in April of 2016. He is survived by his wife Dawn (ne Field) and his two sons, Mark and Brett. His first wife, Trish (ne Bray) passed away in 2007.

John was born in Surrey, UK, and as his father was in the military during WW II, his family was stationed in Egypt. After the war the family was shipped to Durban, where he entered Highbury School (and interestingly was a classmate of Richard Tolkien, Gillingham 1953), and then Kearsney College.

After matriculating from Kearsney, John joined Goodyear Tire and Rubber Company where he learned the trade. He then joined his fathers retread business in Salisbury and was instrumental in consolidating the major players in the Rhodesian retread business into National Tyres.

In 1965, John and his family moved to Johannesburg and started Regent Tyre Services, with the help of the Suzman family. This evolved, under Johns leadership, into Leader Rubber Company, which supplies 35% of the retread materials to the South African market. The business has operated very successfully for over 50 years and will continue to do so under the leadership of Brett Sproson, who took over as Chairman when his father retired in 2003. We wish the family our sincere condolences.

Eddie Keizen

Another of the tyre industrys leaders and well-known racing driver, Eddie Keizan, also passed away in late May after a brave struggle with illness. Not only did Eddie achieve a great deal of success on the motorsport front, particularly in the 1970s, but he was also a successful businessman, most notably as the founder of the Tiger Wheels concern.

Our sincere condolences to his family and friends.

PAGE 12

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The latest local and global news

MIWA drives Right 2 Repair SA campaign We have written numerous articles in AutoForum over the last ten years, regarding the Right To Repair campaign and the movements growth globally.

The Right to Repair Campaign (commonly referred to as R2R) lobbies for consumers to have the right to select where their vehicles are serviced, maintained and repaired at competitive prices in the workshop of their choice.

Although the movement was launched in SA in 2013 and featured at last years Automechanika event, not much more seems to have been forthcoming since then.

This, says the Motor Industry Workshop Association (MIWA), is about to change.

The organisation explains that it is spearheading a group of organisations that are challenging the existing power the dealer network and Original Equipment Manufacturers (OEMs) exert over the South African public when it comes to car repairs and warranties. Vishal Premlall, Director of MIWA, which represents 2 500 independent aftermarket dealers, says that since last years AM, meetings have been held with some of the larger manufacturers including Nissan SA, AMH Group (TATA head office), Suzuki SA, BMW SA and Ford SA.

MIWA explains that it has also interacted with a number of different associations including the TDAFA (Tyre Dealers and Fitment Association), NAACAM (representing SA automotive components industry), NAAMSA (National Association of Automotive Manufacturers), the OEM Technical Committee, NADA (National Automobile Dealers Association) and NCC (National Consumer Commission).

On the component side meetings have been held with Bosch SA, MAHLE and Grandmark SA.

Premlall confirms however, that reactions have been mixed, with some of the organisations having a very clear understanding of what is happening in first world countries and aware

that it is only a matter of time before we see this legislated in SA, to some having little knowledge of R2R as a whole.

South African legislature needs to follow the international Right to Repair trend which promotes South Africas existing consumer and competition laws. There is a need for a fair and competitive regulatory environment that enables freedom of choice for the consumers and that gives aftermarket Small Medium Enterprises a chance to stay in business.

Premlall adds that it is important for all parties to collaborate during this very important lobbying phase and while it is positive to see the campaign gaining traction is some areas, it is disappointing that despite many efforts to engage with the other OEMs, they have resisted meeting.

It remains an imperative for MIWA that we engage and collaborate with all OEs and importers that may be affected by R2R in SA. He reiterated that access to information is increasingly important in an era of technological advancements. Not having access to certain information has allowed OEMs to monopolise the automotive industry by refusing to provide the requisite codes for security systems, diagnostic systems and telematics systems, to independent aftermarket dealers.

He believes that both the lack of access to information and the stringent framework surrounding warranty, maintenance and service plans, minimises, if not destroys, the consumers right to choose - and places OEMs and their franchise dealers with the exclusive control of that segment of the market.

Premlall concludes by stating that This imbalance needs to be addressed in South Africa as it has in other parts of the world.

PAGE 14

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AutoForum - May / June 2016NEWS FORUM

Aussie aftermarket declares Repair Information Access Agreement a flop Our sister magazine in Australia recently reported that its version of R2R has not gone as well as planned. This article was first published in BodyShop News Australia.

The Australian Automotive Aftermarket Association (AAAA) has declared the voluntary Heads of Agreement - Access to Service and Repair Information for Motor Vehicles* (similar to the Right to Repair campaign) signed by all auto industry stakeholders in December 2014, a total failure.

AAAA Executive Director Stuart Charity said after 15 months the full terms of the voluntary agreement signed by stakeholder organisations has been met by only one car company GM Holden.

A handful of other manufacturers have made some repair and service data available via portals, while the rest have ignored the agreement entirely, he said.

The Federal Government optimism for this voluntary process was badly misplaced. The failure of almost all vehicle manufacturers to meet the terms of this agreement is particularly disappointing given the same companies currently share this data with independent workshops in America, Canada and Europe.

To ensure Australias 13.1 million car owners also have an open and competitive market for vehicle service and repair, it is now clear the industry must operate under a mandatory data sharing system. The Federal Government must introduce a National Automotive Repair and Servicing Portal to maintain a competitive market for consumers, said Charity.

The AAAA will join independent workshop owners during the federal election campaign to advocate for mandatory data sharing in the industry. Across the nation, workshop owners are hosting meetings with their federal MPs to inform them about difficulties arising from a lack of progress on data sharing.

The association said a data sharing incident report portal it launched in July last year has provided strong evidence and actual case studies of the growing problems faced by independent workshops when trying to access technical information from the car companies.

Charity said the extent and scope of this information from workshop operators revealed that data sharing is now an urgent consumer issue.

By withholding information from independent repairers, vehicle manufacturers are manipulating the service and repair market. By restricting access to technical data, car makers will force the owners of newer cars into their dealerships, he said.

Charity said vehicle data sharing is critical for people living in regional Australia, where the nearest manufacturers dealership for their vehicle may be hundreds of kilometres away.

Families and businesses should not endure the inconvenience, wasted time and fuel cost required to travel long distances just to service their cars, he said.

Independent workshops are calling on the Federal Government to urgently resolve this issue. While automotive technology becomes more complex every day, the solution to technical data sharing remains simple.

The Federal Government must introduce a National Automotive Repair and Servicing Portal. As is done overseas, the costs of the portal will be borne by the industry.

Thanks to the car company spin claiming that data access is not a

problem, action on this issue has been stalled by the Federal Government for long enough. Car companies must now be forced to honour to the agreement they signed 15 months ago.

To deliver Australians a competitive consumer market, car companies must provide for a fair price independent workshops access to the same service and repair data that their dealerships get, said Charity. We can only hope our SA version has more cooperation and success!

*Heads of Agreement - Access to Service and Repair Information for Motor Vehicles - This agreement was reached following an extensive review and recommendation by the Commonwealth Consumer Affairs Council in 2012. It was signed in December 2014 by the AAAA, the Australian Automobile Association (AAA), the Australian Motor Industry Federation (AMIF), the Australian Automotive Dealer Association (AADA) and the Federal Chamber of Automotive Industries (FCAI).

PAGE 16

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Dunlop manufacturing site gets a R2Bn upgradeSumitomo Rubber South Africa (SRSA) has announced a R2 billion investment in upgrading and expanding the companys Dunlop tyre manufacturing plant in Ladysmith, KwaZulu-Natal.

SRSA believes the investment is a catalyst for both socio-economic and technological advancement in South Africa, with the direct job creation impact and employment spinoffs as a result of the completion of Phase One already being realised.

CEO Riaz Haffejee comments: Employment levels are already increasing due to Phase One. The first of nearly 120 new employees needed over the next few years, have already been recruited. Phase two will attract a further 300 new employees. This will increase the employment of the plant to more than 1 200 employees on completion of the 2nd investment phase.

Our investment consolidates our commitment to the South African and KwaZulu-Natal provincial economy, as well as the Ladysmith community.

As one of the largest employers in Ladysmith, it will deepen our impact on stimulating job creation through increased production and industrial development competitiveness.

The first R1.1 billion phase commenced in 2014 with the upgrading and modernisation of the plants capacity, as well as the introduction of new technology and equipment.

The latter changes have been aimed at increasing manufacturing output of high quality passenger and Sport Utility Vehicle (SUV) tyres and coincided with the introduction of new SUV tyre models.

This is our response to the market trend and demand for these models in both South Africa and other African markets, Haffejee adds.

Phase Two, at an estimated value of R910 million, focuses on the introduction and manufacture of truck and bus tyres for commercial use.

This Dunlop branded product line is currently being imported into South Africa from SRIs plants in Japan and China, due to the unavailability of suitable manufacturing capacity locally.

The new investment will establish a suitable local manufacturing base and terminate the current import arrangement.

The company highlights what it calls an exemplary model of private-public sector partnership, wherein the Dept. of Trade and Industry (DTI) approved SRSAs application for a support grant of an estimated R300 million, under the Automotive Investment Scheme programme toward this initial phase rollout.

In addition, the implementation of the DTIs Tariff-free Trade Agreement (T-FTA), is expected to enhance foreign trade and is set to strengthen export activity into key African areas.

Indeed, such is the cooperation of the public and private entities, that the Emnambithi Ladysmith Municipality donated the underutilised tract of land adjacent to the existing plant to SRSA at no cost.

SRSA adds that it will explore onsite resource efficiency improvements in renewable energy generation and water management interventions.

PAGE 18

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Keeping the SA sector skilledGeneral Motors South Africa (GMSA) has long been involved in projects related to assisting South Africans gain the skills required to keep up with the increasing move to industrial robotics and technology. Its partnership with the Nelson Mandela Metropolitan University (NMMU) has been seen the acquisition of such skills for motor manufacturing in Port Elizabeth.

Wayne Osborne, the automakers training and organisational development manager, explains that the eight year sponsorship of the Chair in Mechatronics at the NMMU has been key in enabling the institution to contribute meaningfully towards the manufacturing industrys requirements.

The mechatronics training combines a number of aspects of engineering, including mechanical and electrical engineering, robotics, programming and computer-aided design. At this time, NMMU is the only university in the Eastern Cape to offer a Bachelor of Engineering degree in Mechatronics.

GMSA continues that its partnership also involves providing the chance for students to complete their in-service training at the company, participating in GMSA projects and acquiring critical on-the-job training and experience. We make extensive use of mechatronics engineering skills in our plants, which are highly mechanised and use robotic systems. The company has employed several graduates from the programme and will continue to do so in future.

Osborne says GMSA and the current holder of the Chair, Professor Igor Gorlach, were instrumental in establishing

the programme in NMMUs Engineering Faculty in 2009 in a five-year contract with the University. The partnership was renewed from the beginning of 2014. It is encouraging to note the increase in student numbers over the years, especially the growing number of females who graduate in Mechatronics.

To date, more than 30 projects have been completed by Mechatronics students over the years. These projects aim to benefit GMSA through the development of unique and innovative solutions to industry problems, whilst students gain practical industry experience.

Photo 1: Obtaining Merit Awards for their fourth year projects in Mechatronics Engineering in 2015, are from left: Scott Burton, Theo Weyers, Mr Wayne Osborne GMSA Training and Organisational Development Manager), Hein Swanepoel, Richard Kirton and Shaish Gopichand. Photo 2: NMMU Mechatronics Engineering graduate, Nathan Kops, left, is now a full-time employee at GMSA. Inspecting one of the robotic systems in the Struandale assembly plant with him, is Automation Technician, Rais Salie.

PAGE 20

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VWSAs 1st black-owned supplier day Volkswagen Group South Africa hosted its first ever Black-Owned Suppliers Day in Uitenhage in early May.

Attended by the Minister of Trade and Industry, Rob Davies, and MEC for Economic Development, Environmental Affairs and Tourism in the Eastern Cape, Sakhumzi Somyo, the event presented a platform for 45 companies that meet VWSAs stringent supplier criteria to profile themselves to the local automotive industry.

Thomas Schaefer, Chairman and Managing Director of VWSA, said in his opening address: The concept of this pioneering suppliers day in our industry originates from Volkswagens determination to expand its business to black-owned suppliers. This will ensure that we continue to support the economic transformation in South Africa. Volkswagen takes the issue of procurement from black-owned suppliers as a priority from both a moral and legislative compliance perspective. We understand governments priority elements of the BBBEE codes and the drive for ownership. We, however, have difficulty complying with the Enterprise and Supplier Development element set out in the recently-revised BBBEE mandate. This is not because we do not want to, but because it is virtually impossible given the scarcity of black-owned suppliers to the local automotive industry. In our case, this is compounded by our high level of local content in the manufacture of Polo and Polo Vivo, explained Schaefer.

VWSA contacted over 100 organisations, ranging from industry associations, organised businesses, business support bodies and government agencies, to request assistance in compiling a list of potential suppliers.

The contact list included companies from other industries such as Defence/Military, Agriculture, Mining, and Information Technology. As a result of this initiative, Volkswagen now has the first ever database of potential black suppliers to the industry and government agencies associated with the automotive industry.

The compilation of this list motivated us to organise this event in the hope of attracting new black- and women-owned manufacturing suppliers to help us meet, comply with, and earn the relevant points. Today is the start of a new beginning that will allow us to increase the spread of our own and the industries supplier base, as well as grow the number of suppliers that meet the BBBEE criteria for the Enterprise and Supplier Development element, concluded Schaefer.

A total of 430 companies applied to be part of the event, albeit mostly in the services sector. Applications were assessed against a set of criteria and finally only 45 companies were approved to be exhibitors of VWSAs first ever black-owned suppliers day. Successful organisations had to have a minimum of 51% black ownership (includes Coloured, Indian and Chinese as per BBBEE guidelines) and/or a minimum of 30% black female ownership. Another key requirement considered by VWSA was companies that are owned or managed by disabled persons or war veterans.

In his speech Minister Davies took the opportunity to compliment and thank Mr Schaefer and his team for their vision, for showing their commitment to transformation through action, and for providing insight into the challenges that the automotive industry faces in securing relationships with black-owned suppliers.

One of the main events of the days programme was a ministerial roundtable that discussed how black industrialists and black-owned suppliers could be assisted to be part of the automotive sector. The participants were: Minister Rob Davies; the CEO of the Black Business Council, Mohale Ralebitso; CEO of the Automotive Industry Development Centre, Dr David Masondo; and Philisiwe Mthethwa, the CEO of the National Empowerment Fund.

Other high profile guests included the chief executives of Toyota, Ford and Mercedes in South Africa, who used the opportunity to visit the exhibition together with other players from the industry and familiarise themselves with the potential future suppliers exhibiting on the day.

PAGE 22

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Most admired companies in 2016 who, what & why? - Dave ScottThe annual Fortune magazine list of Worlds Most Admired Companies must result in corporate behavior ranging from back-slapping at champagne breakfasts to a biblical weeping, wailing and gnashing of teeth. After all its all about reputation and there are many big egos driving the worlds global corporations. Nobody likes to come second, third and worse still eighth.

Fortune states that there is a new AAA standard in corporate America: the one-two three punch of Apple, Alphabet, and Amazon. For the fourth time, our list of the Worlds Most Admired Companies Top 50 All-Stars is led by a trio of tech giants under 40 years old. Interesting and imprortant to note is that 2 out of these 3 companies are actively eyeing the autospace right now.

Note that Alphabet Inc. (commonly known as Alphabet, and frequently informally referred to as Google) is an American multinational conglomerate created in 2015 as the parent company of Google and several other companies previously owned by Google. And Google has entered English as a verb did you google that?. Now that is branding par excellance!

Here are the attributes around which corporations are judged to be ranked and most admired in 2016:

Quality of products Quality of management Innovation Long-term investment

value

Talent attraction Financial soundness Corporate asset use Social responsibility Global business

The Motor Vehicle Standouts are very interesting:1. Toyota Motor2. BMW3. Daimler4. Hyundai Motor

5. Honda Motor6. General Motors7. Volkswagen8. Nissan Motor

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While Apple leads the global scene and Fortunes Top 50 All-Stars, who in the motor vehicle segment makes the most admired list? And its Toyota that leads the way. Outside of the motor vehicle industry, Toyota and BMW both make it to the Top 50 All-Stars youve just got to hand it to Toyota! After being grilled and roasted in the USA Congress over product defects and recalls, Toyota Motor Company has stuck to the knitting and won back their reputation.

Maybe Toyota never got it right in Formula 1 racing but their product line up is free of scandal now and electric hybrids are once more an environmental alternate to noxious diesels following the VW debacle.

This list raises some very interesting automotive observations: Witness the rapid rise of Hyundai to the global stage Ford is not mentioned and returned to profitability without

USA Government intervention. Ford is also highly innovative and has a very Ford-focused product range

Volkswagens emissions scandal has led to their reputation fall but why is Nissan Motor the bottom of the pack and behind VW?

The VW emissions scandal hurt the global diesel-powered passenger car industry. In the March 15, 2016 issue of Fortune theres a 13-page article on How the massive diesel fraud incinerated VWs reputationand will hobble the company for years to come. This report concludes that in the USA VW is defenseless and grievously exposed. Its stuck on cruise control, hurtling toward a devastating reckoning.

Fortunes eight motor vehicle standout brands are well represented in South Africa with VW and Toyota battling for top position in terms of unit volumes. South Africans dont give a hoot for the emissions scandal so the only local hurt that VW will experience are restrictions imposed by the VW group in their struggle for survival.

So whats relevant for South African motorists? There is little concern for the nine attributes of Fortunes most admired. Locally the real concerns focus around cost of ownership and if a vehicle is financed on an operating lease, its cost of use that matters.

Residual values are critical because they affect that balloon payment or guaranteed buy-back. The arguments rotate around a vehicles ability to resist wear-and-tear that should be fair at the end of a financial term.

This means whether its a truck or car, quality, reliability and availability of reasonably-price parts really matter. Over-priced, unavailable parts destroy a vehicles reputation and its residual value. In trucking terms downtime is the enemy where parts are concerned. No spares mean the wheels stand with very high fixed costs which is even more noticeable when repairing trucks damaged in a crash.

Its all too easy to give credit to sales and marketing the glamour end of the motor industry.

But its the supplying of the spares/parts and the hands fitting them to the vehicles - the aftermarket - which is at the toughest end of the business and which determines reputation and sustainability. No reputation for parts is better than a bad reputation ask some OEMs about this as they are still trying to correct this fact after many years.

To see the full list of the Top 50, or view all 340 companies in 54 industries and see how Fortune conducts the most admired survey please visit Autoforum.co.za/articles/ for links to the original sources.

References: Hoaxwagen - A version of this article appears in the March 15, 2016 issue of Fortune. http://fortune.com/inside-volkswagen-emissions-scandal/

PAGE 26

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Looking forward: T-Systems holds In Touch a digital transformation eventT-Systems held an exceptionally informative event in early May focussing on digital transformation. The theme was In Touch 2016 and aimed to communicate the various aspects of business digitisation and transformation that T- Systems is involved in worldwide and their applications here in SA.

Of specific interest was their collaboration with a number of automotive brands, most notably BMW, with which they are globally partnered. The event was held at their premises in Midrand and the venue was divided into a number of suites where industry and solution specific presentations were conducted, in between key note addresses from the main stage.

The entire event was centred on an app which interacted with visitors as they moved around from suite to suite, and interacted with information accessed via the app at each of the locations. It is a very slick format and really engaged the audience, who were able to live tweet their responses to the speakers and register for prize draws and more by signing in at the various suites.

T-Systems Managing Director, Gert Schoonbee, opened the event with a discussion of what he sees as the danger of business reliance on public cloud services. The risk is that we are allowing for a second colonisation of Africa, but this time it is our data that is being taken offshore he explained, justifying the development of our own platforms for local businesses.

Their cloudifier concept drives the digitisation strategy, enabling businesses to meet new and increasing demands from customers. The biggest challenge being the move

from legacy systems into future models without losing the processes, business models and experience that keep businesses locked into them, because of the value they still deliver. T-Systems role in this is to provide the platform for businesses to utilise this, at a much more cost effective and rapidly deployed level than other solutions.

Futurist Pieter Geldenhuys gave an interesting talk on his view of the future and the technologies that will shape it. Virtual and augmented reality will become more and more prevalent and offer more information - the event itself was filmed in 360 degrees. This tech will allow sports viewers, for instance, to experience multiples angles in 360 degrees, while watching a game. Of relevance to the auto sector are predictions on autonomous driving, digital systems and connectivity of cars.

As mentioned in our article on page 30, these factors will definitely influence how car ownership and, most certainly, servicing will be effected in the next decades. He predicts that by 2025 cities such as London will ban human driven cars within the city centre. T-Systems SA has accompanied BMW SA on its journey into the future. The two companies have partnered to combine expertise in technology platforms, telecoms, and automotive innovation. At the centre is T-Systems Connected Car platform which powers BMW ConnectedDrive. Newer versions of BMWs include an

NEWS FORUM

Main picture: Claycia Johson of BMW and Michael Frans of T-Systems. Inset: the 360 degree camera filming the event.PAGE 28

integrated SIM card fitted within the chassis. This unlocks a number of new benefits in the areas of infotainment, teleservices and emergency response services. For example, emergency calls can be made manually, or automatically on the detection of a collision. The location of the incident is triangulated to the closest base stations to provide emergency response teams with the information they need. Critical maintenance issues within the car will also be picked up by BMW SA, through the BMW Teleservices function and responded with a courtesy call that invites the owner to bring their car in. These safety services come standard with all newer cars. The Connected Drive suite also includes information and entertainment during your journey (such as reading through your social media feeds, or your favourite news websites).

Where it becomes interesting is how drivers can automatically book in their car for its next service, use a range of concierge services, and get real-time traffic information, amongst other services. With the BMW Remote app on ones smartphone, drivers can even lock or unlock their car, remotely.

It will remain to be seen how manufacturers will enable the aftermarket in such a scenario. Claycia Johnson from BMW Brand Management, made reference in her presentation

to how cars can relay information to service partners. It would appear that it is firmly within the motor manufacturers strategies to hold onto much more of the service and supply chain of their vehicles in the future.

For now, these technologies are being built into the car from the start. According to Johnson, BMW believes a company has to benchmark across different industries to retain customers. There is a far higher level of customer to customer dialogue, our market is more informed and this makes them ultimately less tolerant and less brand loyal than before. We have to adapt very rapidly to meet their demands. How to retrofit these systems into vehicles will, I suppose, be the next challenge - once the market accepts and starts to use the services.

Michael Frans, T-Systems Solution Sales Manager for the Automotive division, demonstrated the number of touchpoints that they are currently engaged in with local manufacturers. Were turning data into valuable services for clients who can access our platforms to develop apps, car centric services with the integration of devices, CRM and IT systems for OEMs. It includes lead generation and customer loyalty systems for insurance, and end-to-end solutions for fleets and logistics providers says Frans. The platforms T-Systems offers the automotive industry connect the manufacturer to the customer, directly through the vehicle itself.

Michael Frans explaining the available platforms to a vivitor from Renault SA. MD Gert Schoonbee opens his address. T-Systems has appointed 400M world champion athlete Wayde Van Niekerk as a brand ambassador.. Pieter Geldenhys readies his virtual reality headset for his presentation. PAGE 29


The majority of drivers still want to actually be able to drive themselves in the futureNew research in the UK has found that in excess of 65% of motorists want to retain the right to drive - even though driverless cars are coming.

British organisation IAM RoadSmart formerly the Institute of Advanced Motorists conducted an independent survey of 1,000 British motorists and a separate poll among its 92,000 members.

Those 65% of motorists believe that a human being should always be in control of the vehicle with 53% saying that the focus should be on making drivers safer not just cars.

Members of IAM RoadSmart welcome the hi-tech advances which are improving vehicle safety, but want to maintain their control of a car even though autonomous technology will be able to do it for them.

Sarah Sillars OBE, chief executive of IAM RoadSmart commented: Technological advances that make driving and riding safer for all road users have to be embraced whole-heartedly but British motorists and our members, do want the right to drive.

Intelligent cars will deliver a steep change in road safety by targeting the human errors we make from time-to-time. At IAM RoadSmart we believe a well-trained driver and an ever-vigilant car is a win-win scenario for the future.

She continued: The government is due to consult this summer on how the UK can lead the development of autonomous vehicles; we are ready, willing and able to participate fully in this discussion. One could see a time when motorists might be restricted to driving on designated roads and possibly just for pleasure rather than for work or getting from A to B.

Interestingly, at the T-Systems event held in Johannesburg recently Futurist Pieter Geldenhys predicted that cities such as London will ban non-autonomous driving within the city limits by 2025. Unused vehicles can self park at designated parking sites, alleviating the need for close-by parking lots - which are effectively wasted space in modern cities. How this will effect the attitude to car ownership remains to be seen.

PAGE 30

Why own your own car, when you can just summon the nearest unused one for the rest of your journey? For the time being however the results of the survey clearly outline that currently motorists still want to be in control.

Then again, a mere ten years ago no one predicted the iphone and how a computer manufacturer would revolutionise the mobile industry. Technology has a way of reaching cultural saturation within previously inconceived timeframes.

The Opinium survey of motorists had the following results:

16%thoughtthatdriverlesscarsareanexcitingprospect. 20%thoughtthatdriverlesscarswereagoodidea. 34%thoughtthatdriverlesscarswereabadidea. 65%thoughtthatahumanshouldalwaysbeinchargeofavehicle.

22%thoughtthatdriverlesscarswouldbethenormonUKroads. 52%thoughtthatdriverlesscarswouldneverbethenorm.

When told that 95% of accidents were down to human error and that there was a strong case for taking driver control out of the equation:

24%agreedwiththeproposition. 15%disagreedwiththeproposition. 60%saidwaitandsee.

When asked whether they would consider using a driverless car:

32%saidyestheywould. 38%saidnotheywouldnot. 29%saidthattheywereunsure.

In the poll conducted among IAM RoadSmart members:

87%thoughtthatoncedriverlesscarsarereadilyavailabledrivingshouldNOTbebannedbylaw.

92%wouldwelcomeautomatedsystemsthatstoppedtailgating.

AccidentsDue to Human Error?

Consider using a Driver-lesscar?

Keep driving legal?

24%

22%34%

65%16%

20%

32%

87%

15%

52%

38%

60%

60%

Driverless cars are a

BAD idea

Think that a HUMANshould always be in charge of a vehicle

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Driverless cars are an EXCITING prospect

Driverless cars are a

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PAGE 31


The market exodus to pre-owned results in even further declinesFollowing the unveiling of the April Naamsa sales figure data, WesBank has released its commentary on the car market for the fourth month of 2016.

Naamsas analysis of the total industry new vehicle sales for April showed a decline of 9.2%, year-on-year, with only 40 390 new vehicles sold across all segments during the month.

Passenger car sales fell 13.2%, year-on-year, with sales of 26 077 new cars during April. In the Light Commercial Vehicle (LCV) segment, the arrival of highly anticipated new models helped buck the downward trend somewhat, with a minor 0.1% sales decline, compared to the same period last year. However, this is expected to be short-lived and should normalise within one or two months.

Sales through the dealer channel fell 5%, reflective of consumers continuing to move to the pre-owned market. Passenger car sales through the dealer channel plummeted 13.7% compared to the previous year, while LCV sales through the dealer channel grew 15.6% indicative of the pent-up demand for the aforementioned new arrivals. Growth in the rental channel continued during April, with sales up 17.8%.

Simphiwe Nghona, CEO of WesBank Motor Retail comments: So far, every month this year has seen the new vehicle sales industry take a beating, despite positive growth in the rental channel.

The year-to-date sales figures indicate a decline of 9.7%, which is in line with our forecast for the year in the current economic climate.

The lenders data shows that the demand for new vehicles has slowed notably. During April 2016, application volumes

for new vehicles were down 7.1% compared to the same period last year, a figure that is exacerbated by sustained new car price inflation.

During this past month the average new deal value was R287 000. This compares starkly to April 2015, when the average deal value was R257 000. This 11.8% difference is evidence of sharply rising new car prices.

Household budgets face increasing pressure in the form of rising interest rates and mobility costs. The prime interest rate has been hiked from 8.5% to 10.5%, since January 2014. Fuel prices have increased by nearly R1 per litre since March 2016.

Given this, new vehicles have become even more unaffordable and consumers continue to flock to the used car market in a search for value and affordability. Demand for used cars, as measured by application volumes, grew 9.2%, year-on-year. In April the ratio for used-to-new finance applications was 2.47:1.

Although the Rand seems to have stabilised, the damage of the sustained weakness of the past few year has taken its toll on the market. This affects affordability, which is the biggest driver for consumers moving to the used car market, said Nghona.

Consumers cant control interest rates or inflation, but they can control affordability through the car they buy. In the current economic climate the used vehicle market is their best choice.

SA Shows launches Festival of MotoringMesse Frankfurt together with SA Shows has launched a new show to be held at the revamped Kyalami racetrack complex in August.

Billed as the Festival of Motoring, it essentially becomes the replacement of the JIMS show. Inspired by the Goodwood festival of speed, the show will include a number of new features aimed at expanding its relvance to a wider audience.

At the launch the question of whether we actually need a big auto event was addressed - the organisers feel very storngly that due to the position of the auto sector in the bigger South African picture the industry is seen as a trend setter

and representation of confidence in the country. It also follows the international trend of re-examining the current format of most motor shows to meet the changing needs of the various categories of exhibitors and visitors.

Naamsas Nico Vermulen stated that the location between JHB and Pretoria is ideal, and Messe Frankfurt and SA Shows are reporting good support for the new show early on.

Manufacturers, aftermarket suppliers and service providers are all part of the selection of exhibitors envisaged to fill up a reimagined show layout that really shows off the new track complex and all its features.

NEWS FORUM

PAGE 32

VWSA Honours Top DealersBarons Pietermaritzburg has been named the 2015 Volkswagen Dealer of the Year, its second consecutive honour as the best performing dealership in the Volkswagen network.

Speaking at the annual Volkswagen dealer awards gala dinner hosted in Johannesburg recently, the Chairman and Managing of the Volkswagen Group South Africa, Thomas Schaefer said: The sustained success of Volkswagen in the passenger car market in South Africa comes from the dedication and diligent work of our dealership network which I am convinced is the best in the country. After a rocky and challenging start in 2015, each one of you put their shoulders against the wheel to ensure that we finished the year on the high to become the passenger car market leader for the fifth consecutive year.

Schaefer added: The declining sales in the first quarter have given us an indication that 2016 will be another tough year for the local car market. This will be exacerbated by the weakening currency and uncertain socio-political outlook. We however, remain positive that the strength of our brand and your ingenuity will carry us through the year.

Each year, the 106 Volkswagen dealerships are set targets across various disciplines of the business. The targets

include sales volumes and customer service delivery. The Dealer of the Year award is presented to a dealership that excels in all major disciplines of the business.

The top performing dealerships are invited into the Volkswagen Club of Excellence, where the overall best performer is awarded with the Dealer of the Year status.

Kevin Pillay, Dealer Principal at Barons Volkswagen Pietermaritzburg until October 2015 said: We are honoured and proud to win the Dealer of the Year award for the second consecutive year. This is a fantastic achievement for our team and a massive recognition to the work of our employees. Pillays successor Keith Abrahams added: Our team set a target of doing it again in 2015 after we were presented with the award for our sterling work in 2014. The togetherness and drive to delight our customers have been the recipe of our success in the past year. We will strive to continue with this attitude to ensure that we remain one of the best dealerships in the Volkswagen network.

Kevin Pillay is now the dealer principal of Barons Volkswagen Culemborg in Cape Town. Volkswagen Commercial Vehicles Dealer of the Year award was presented to Hatfield Volkswagen Commercial Vehicles for the second straight year.

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Q1 VPI spells lower sales for dealers But the aftermarket can benefit TransUnion has released its Q1 2016 Vehicle Pricing Index (VPI), which found that - unsurprisingly - economic pressures are pushing up car prices and squeezing sales in South Africa. While the trend has been evident for many months now, the continued tough economic conditions have resulted in higher vehicle prices and lower sales, thanks to consumers needing to purchase more affordable cars or indeed hold onto their vehicles for longer periods. (Which is great news for the aftermarket sector are your marketing plans in order and in effect? Check out our Business section online www.autoforum.co.za for ideas on how trading in a depressed market can benefit your business.) The TransUnion SA Vehicle Pricing Index (VPI) measures the relationship between the increase in vehicle pricing for new and used vehicles from a basket of passenger vehicles which incorporates 15 top volume manufacturers. Vehicle sales data collated from across the industry was used to create the index.

The latest index for new and used vehicle sales showed a marked increase to 6.6% and 2.2% in Q1 2016 from 4.6% and 1.6% in Q4 2015 respectively. Derick de Vries, CEO: Auto Information Solutions at TransUnion comments: The index indicates that consumers are enduring substantial increases on both new and used vehicles, with higher than Consumer Price Index (CPI) on new cars. He adds that this is evident in the percentage of both new and used cars being financed below R200 000, which has increased substantially from 37% to 51% between Q4 2015

and Q1 2016 respectively. This indicates a shifting emphasis on the value proposition that consumers place on their vehicles, as they look for the maximum amount of value from a car. In addition, the company says that its financial registrations data indicates a drop of around 34% and 16% on new and used financed deals respectively in Q1 2016 compared to Q1 2015. A trend which, if continues, will see market contraction for the third year in a row. Although manufacturers have continued through Q1 2016 with marketing incentives, with discounts ranging on average around 5%, this has had little effect on an already depressed market, says de Vries.

In terms of volume of sales, Ford, Toyota and Volkswagen are the only manufacturers which appear in the top 5 for both new and used passenger car volumes from all sectors. Overall, the current economic constraints are affecting both the consumer and most vehicle-related sectors, including dealerships, finance houses and the insurance industry.

In such times, dealers need to focus on marketing and sales incentives and, most importantly, streamline their operations. The latter can be achieved by employing credit solutions to pre-vet customers in order to know exactly what the consumer can afford, avoiding lengthy sales processes and increasing sales conversion rates. For more information and to download the full VPI report please visit: http://transunioninsights.co.za/VPI/.

Merc debuts natural fibre roof Together with the International Automotive Components Group (IAC), a global leading supplier to the automobile industry, BASF has launched the worlds first roof frame for cars made entirely of natural fibre.

Its thanks to the companys Acrodur 950 L binder, a water-based alternative to phenolic resins, that boasts low-emissions and strengthens the natural fibres - enabling an environmentally compatible, dimensionally stable and, above all, lightweight solution for car roof frames.

The IAC FiberFrame lightweight component debuts in the new E-class, which have been on European showroom floors since April.

Natural-fibre roof frames based on Acrodur 950 L are around 40 percent lighter than roof frames made from metal. Hence, we help car makers achieve their sustainability targets because lighter vehicles consume less fuel and have lower carbon emissions, explains Thorsten Habeck, Head of Marketing for

Dispersions for Fiber Bonding at BASF. It was easy to integrate the BASF binder into our production system. The natural fibre components that are strengthened with Acrodur are ideal to mold; they are environmentally friendly and save time during the production of the composites, explains Fritz Schweindl, Director Advanced Engineering at IAC, adding Furthermore, the product is low in emissions, which means that it is safer to work with.

Acrodur binders are used to strengthen natural fibre mats that are further processed into molded parts. Apart from its environmental compatibility, it also ensures the simple and unproblematic processing, assembly and molding of semi-finished products as well as properties perfectly fitting to the material.

The binders are used for the production of high-quality lightweight applications in the furniture and automotive industry.

NEWS FORUM

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50 Old Mill Road, Ndabeni, Cape Town, South Africa, 7430

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Auto Magneto specializes in the wholesale & retail supply of quality Auto

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Overloading just defeats all the safety featuresAdvances in commercial vehicle safety technology could be undermined by dangerous overloading, warns the UKs Society of Motor Manufacturers and Traders (SMMT).

The organisation has highlighted the poor standard of loading of what are classified as vans in that country however in SA the trend is across the vehicle load capacity.

Almost nine in 10 (88.5%) of the 2,381 vans weighed last year by the Driver and Vehicle Standards Agency (DVSA) in the UK were found to be overloaded, a worse record than the previous year in which 84% of the 3,337 checked were illegal.

That readers, is in the UK. We know the poor record in SA thanks to enlightening stories from Dave Scott. If they only knew...

Manufacturers are offering increasing levels of safety on the latest vehicles, including advanced collision warning systems among others and future models will see autonomous emergency braking included as well.

But for all the benefits advanced safety tech brings, an overloaded or poorly loaded commercial vehicle (or car) can still pose a risk to its driver and other road users, adding vital metres to braking distances and affecting handling.

Mike Hawes, SMMT Chief Executive, comments: Vans have never played a more important role (in a countrys economy) so it is a concern that the in-use safety record remains so poor. Manufacturers are investing significant amounts in new safety technology, but this can only do part of the job.

We continue to urge operators and owners to comply with the law to keep themselves and others safe, avoid the risk of fines and keep the threat of further legislation at bay.

In the UK anyone operating a heavy goods vehicle (HGV) is subject to strict rules under the Operator Licensing regime, but those rules do not apply to vehicles under 3.5 tonnes in other words, the vast majority of vans.

In good old SA the focus has been primarily on trucks, but the logic remains the same no matter what you are driving. The more you ignore the weight and load limits, the more you endanger your vehicle and other road users.

Make sure you and your drivers are familiar with the document Loading Of Heavy Vehicles In South Africa as well as Overloading and Road Safety both with links available on http://autoforum.co.za/View-News-Article.aspx?News=10758. You can also find simple, step-by-step guidance on how best to maintain your vans here - www.smmt.co.uk/vansafety.

MISSION ACCOMPLISHED.NEW DAILY. VAN OF THE YEAR 2015.

BETTER FUEL EFFICIENCY.

BETTER LOAD CAPACITY.

BETTER TOWING CAPACITY.

BETTER ERGONOMY.

BETTER AGILITY.

In alliance with

Contact your nearest Iveco dealership today!0800116967

Fully customised maintenance and repair contracts available on request* Structured payment options* Terms and conditions apply and subject to credit approval

A completely revamped heir to a tradition of excellence.

Retail Price: R562 100.00 incl. VAT, Interest Rate: 10.5% (prime), Payment terms: 60 months, Deposit: 10%, Balloon payment: 15%

DRIVE THE BEST

FROM JUST

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2838_Iveco Finance Campaign_Final.pdf 1 2016/04/22 10:49 AM

PAGE 36

MISSION ACCOMPLISHED.NEW DAILY. VAN OF THE YEAR 2015.

BETTER FUEL EFFICIENCY.

BETTER LOAD CAPACITY.

BETTER TOWING CAPACITY.

BETTER ERGONOMY.

BETTER AGILITY.

In alliance with

Contact your nearest Iveco dealership today!0800116967

Fully customised maintenance and repair contracts available on request* Structured payment options* Terms and conditions apply and subject to credit approval

A completely revamped heir to a tradition of excellence.

Retail Price: R562 100.00 incl. VAT, Interest Rate: 10.5% (prime), Payment terms: 60 months, Deposit: 10%, Balloon payment: 15%

DRIVE THE BEST

FROM JUST

R9900pm *

C

M

Y

CM

MY

CY

CMY

K

2838_Iveco Finance Campaign_Final.pdf 1 2016/04/22 10:49 AM


Beyond the Cost of Ownership the Actual Cost of Use - by Dave Scott101 new Mercedes-Benz Actros were delivered last week to national carrier, Bakers SA Limited in a deal valued close to R120 million. Its a seldom-seen one-of-its-kind new truck delivery raising a perception that its all about price and product nothing could be further from the truth.

Its a CPK Cents Per Kilometre contract where the cost of use, not cost of ownership is the real issue at stake.

Its an operating lease wherein the owner, called the Lessor, permits the user, the Lessee, to use an asset for a particular period which is shorter than the economic life of the asset without any transfer of ownership rights.

In this operating lease Bakers recognise that old trucks cost money to run. The use of an asset at a very well-negotiated value is forecast be a better proposition than full ownership and increasing maintenance.

Here is the package and operating lease parameters for the new Actros models, in various drive configurations: Contract duration 48 months Monthly kilometres 13,500kms Mercedes-Benz finance with guaranteed future value, CharterWay complete maintenance FleetBoard telematics with proactive diagnosis, and 650,000km/5-year driveline warranty

And heres the driveline split:

ACTROS Driveline configurations Number6 X 2 446 X 4 204 X 2 37Total 101

Focused on the principle of CPK, the negotiations for the contract began in March 2015. Kobus van Zyl, Executive Director of Daimler Trucks & Buses Southern Africa, records that this operating lease was created on many spreadsheet calculations and modifications.

COMMERCIAL VEHICLES

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Is your driver the next highway hero?The 2016 staging of the now annual Highway Heroes Awards in November will see the winner drive away with R75 000 in cash and prizes, not forgetting second and third placed drivers who will receive prizes worth R40 000 and R20 000 respectively. It is a recognition that is not to be sneezed at and rewards outstanding driving, which can only help fight the dismal SA truck crash stats. Regent Insurance has increased the prize money from almost R100 000 to R135 000 that will be awarded to South Africas top three truck drivers and fleet owner of the first placed driver. Paul Dangerfield, Highway Heroes campaign manager at Regent Commercial Vehicles (RCV), says one of the aims of the Highway Heroes initiative is to raise road users awareness of the many challenges that truck drivers face in the course of their work the daily threat of hijacking being one of the most obvious one.

From our claim statistics, we have pinpointed other challenges that truck drivers face: excessively long hours on the road; being pushed to speed; driving at night; high traffic volume; impatient road users; poor driver training; and that there are not enough safe places for truck drivers to stop overnight.

We also believe that this platform presents a perfect opportunity to start changing road users perceptions that truck drivers are reckless and that they are largely responsible for the unacceptably high accident rate in this country, says Dangerfield, adding: This is simply not true. Regent first introduced the Highway Heroes competition last year and the winner, Themba Vilakazi (45) a driver for Fairfield Long Haul in Howick won R50 000 in cash and prizes. First runner-up, Dumisane Nzimande (Gauteng) won cash and prizes worth R25 000 and Michael Madamo (Mpumulanga), the second runner-up, R12 500.

The first campaign highlighted the important role that truck drivers play in the economy and how 53-million South Africans would be negatively impacted without the thousands of truck drivers in the logistics industry who transport billions of Rands worth of essential goods to every corner of the country 24/7/365.

But to be judged the top driver is no small feat. The participants are evaluated by means of stringent analysis of driving technique and behaviour via telematics data obtained from the fleet owner. This is combined with an analysis of the results obtained over a 60-day period from telematics devices that will be installed in the trucks of the 15 finalists. Entries opened on 1 March 2016 and the winner and two runners-up will be selected from the finalists shortlist before the awards announcement in November this year. The winning driver will win R75 000 in cash and prizes, while the runners-up will receive prizes worth R40 000 and R20 000 respectively. The competition is only open to Regent insured drivers and they can be South African or permanently employed foreign nationals. Fleet owners can nominate their best truck drivers by completing an online entry form or by downloading, completing and emailing an entry form to [email protected].

Nomination forms are also available from Regent Commercial Vehicles Consultants, at selected Regent branches and from Regent brokers. Entry forms must be submitted with a motivational letter from the fleet owner that explains why they believe their driver is the best in the country.

Bakers SA Limited Chief Executive, Abdool Tayob, emphasizes the value of new trucks in the Bakers fleet: 41 units are additional to the fleet while 60 are replacements and an economic update in terms of safety and fuel economy. And then taking a full maintenance package from Mercedes-Benz means less stress on Bakers own internal vehicle servicing and support structures.

And beyond transactions relationships are #1

In a 28-year relationship with Bakers SA Limited, Dave Walker, Garden City Motors Sales Manager, looks back on this as a partnership that has been both hard and fair.

But you cannot engage in an operating lease like this without trust and a long-term relationship. Kobus van Zyl concludes: A 101 new truck delivery is a wonderful wedding now for realism to set in, the marriage. The package and the marriage are the winners!

Abdool Tayob accepts the fleet from Mercedes

AutoForum - May / June 2016COMMERCIAL VEHICLES

Big Blue - Iveco launches the new Daily at Red Star Raceway - by Warwick RobinsonIveco held the launch of the new Daily van at Red Star raceway in Delmas in late April. This is an extremely popular and well renowned vehicle in its category, and the new model promises to improve on this solid global reputation.

Getting straight to the point the new daily is bigger. Bigger than before and bigger than its competitors. Product Marketing Manager Elvis Mutseura introduced the new vans features in a short presentation and quantified their claims with some very specific details on the increased deck space, cubic capacity and leg room statistics.

autoforum may:june 2016

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