A NEW ERA IN CAR BUYING DAWNS FOR VW - AutoLive
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OVER
15 800
SUBSCRIBERS
www.autolive.co.za Issue No. 114 | 25 October 2018
A NEW ERA IN CAR
BUYING DAWNS FOR VW
Barely a day goes by without warnings from as well as their 54 000 employees in Europe. The “This is the right step at the right time,” said
organisations and key figures in the know that the objective is to provide seamless individual around- Jürgen Stackmann, Board Member for Sales of
way dealers do business and their willingness to the-clock support for customers going far beyond the Volkswagen brand. “We have adopted this
adapt to changing trends are critical to survival. vehicle sales on the basis of a unique Volkswagen approach because our business environment is
Traditional sales models are becoming less relevant customer ID. changing at a breathtaking pace in view of new
and consumers continue to change their buying Each year, the Volkswagen brand intends to technologies, changed customer expectations and
habits to keep up with the age of digitalisation. The introduce about 5 million customers to the new new market players.”
message is a clear one: Adapt or die. world of mobility around the globe and to offer According to Stackmann qualified sales and
In this light Volkswagen, together with its them individual services on the basis of their ID. service partners, an established logistics network,
European dealers, is to fundamentally realign its The car buying experience itself will also change a strong product portfolio and extremely loyal
sales model in order to make it fit for the future. as online sales are to be massively expanded and customers place Volkswagen on strong footing for
The new sales model is to be launched in Europe in direct sales are to become possible. Five new sales the future. He said that the new sales model was
April 2020. and service formats – such as city showrooms or the combination of this infrastructure with the
Volkswagen and the European Dealer Council pop-up stores – are to be added. At the same time, new elements which would define business in the
recently presented their vision for the future world the sales organisation is to become more flexible
continued on page 2
to Volkswagen’s 5 400 dealers and service partners and efficient.
Page 12 Page 17 Page 22
Taking the RISK out of SA’s top used Rethink of dealer
used vehicle buying, selling vehicles revealed profitability needed
and values
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Editor and Advertising Manager continued from previous page
access a broad portfolio of services,
Liana Reiners such as We Park, We Deliver or We
liana@autolive.co.za future, such as digital products and Connect, from the Volkswagen We
083 407 4600 services or new on-line sales pos- digital ecosystem. There will also be
sibilities for products and services. services going beyond customers’
Contributors The new sales model is being own vehicles. This will include We
Roger Houghton driven by the progressive digi- Share, the planned car sharing offer-
houghtonr@mwebbiz.co.za talisation and connectivity of the ing from Volkswagen.
082 371 9097 Volkswagen fleet, which will reach Online business will lay a key
a new level with the introduction part in the development of the
Stuart Johnston
of the new, fully connected electric new sales model and is currently
stujohn@netactive.co.za
ID. family in 2020. From then on, being massively expanded. Within
083 450 9255
Volkswagen customers, each with the framework of its new digital Jürgen Stackmann, Board
their own personal ID number, are to partnership with its European Member for Sales of the
Advertising Sales
be at the centre of a fully-networked dealers, Volkswagen will develop a Volkswagen brand.
Liana Reiners world of mobility that will include joint Internet platform which will
liana@autolive.co.za seamless individual support beyond handle the entire purchasing process and customer-oriented, with city
083 407 4600 vehicle purchasing, as well as through to contract conclusion, showrooms, pop-up stores, service
around-the-clock availability. including financing, payment and factories, used car centres or scalable
Address “This way, we will learn more even used car trade-ins. Customers full-feature dealerships.
237 Rigel Avenue about our customers’ needs and will will be able to choose from the entire “We believe in the new business
Waterkloof Ridge be able to develop optimum tailor- brand model range and to complete model as it will strengthen dealers’
Pretoria made offerings for each individual their car purchase with their entrepreneurial responsibility,” said
PO Box 914 005 customer through intelligent data selected dealer online. Although Dr Matti Pörhö, President of the
Wingate Park management. This is already prac- the new platform will, for the first European Dealer Council (EDC),
0153 ticed successfully in other sectors,” time, enable Volkswagen to offer which represents the interests of
012 460 4448 Stackmann continued. the possibility of direct sales, the Volkswagen dealers in Europe.
In this world of mobility, brand intends to use this possibility “In the areas of digitalisation and
Website customers will benefit from a wide mainly in the fields of software and E-mobility – both major tasks for the
www.autolive.co.za variety of tailor-made offerings. online services. future – dealers will play a key role.
For example, vehicles will be kept People who prefer to maintain To shoulder these challenges, dealers
Facebook up-to-date with software updates personal contact with the brand need a firm foundation of profitabil-
www.facebook.com/pages/AutoLive run via cellphone networks. In and the dealer will have a choice ity.” Pörhö praised the fair and open
addition, vehicles will be able to of different points of contact in cooperation with Volkswagen: “We
© 2018 WCM Media CC notify dealers when services are the future. There will be five new actively participated in shaping the
due via the predictive maintenance formats in addition to the traditional business model right from the start.”
Production full-feature dealership with sales and At the event in Berlin,
app. Customers will also be able to
Marketing Support Services service under Volkswagen and the EDC sealed
Danie Dreyer one roof. Each the new sales model, with Jürgen
danie@marketingss.co.za dealer will only Stackmann and Matti Pörhö sym-
+27 (0)12 346 2168 need to have one bolically signing the new contract
full-feature facil- that is to govern relations between
Disclaimer ity in the future. the manufacturer and its dealers in
While reasonable precautions have Dealers will be Europe from April 2020 onwards. By
been taken to ensure the accuracy able to shape the end of November, all European
of the advice and information given their presentation dealers are to sign the new contract.
to readers, neither the editor, the by agreement Watch the announcement at
proprietors, nor the publishers with the relevant https://footage.volkswagen-media-
can accept any responsibility importer to make services.com/VW/videos/mpeg4/
for any damages or injury which Dr Matti Pörhö, President of the European their business download.php?vid=20180823173903
may arise therefrom. Dealer Council (EDC). more effective Nahcie_PRE. ■
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
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Editor’s Note Truck and Bus Sales
This year is certainly flying
Improve Despite SA’s
past at an alarming speed.
Pretty soon the industry will Dire Economic Climate
be winding down towards the
Festive Season and we will
have a clearer picture of how Usually businesses – especially those in business conditions and the general trading
kind – or not – the year 2018 the transport and related industries – hold environment would remain difficult over
has been to us. back on major capital purchases when the the next six to nine months.
At this stage there seems economic environment is in recession, but With three quarters of 2018 accounted
to be a glimmer of light at the end of the tunnel. With three the South African truck and bus manu- for, the indications were that sales in all
quarters of 2018 accounted for, NAAMSA figures seem to facturers and distributors are bucking this major segments, on an annualised basis,
indicate that sales in all major segments, on an annualised trend in 2018. would probably register marginal declines
basis, would probably register marginal declines compared Sales of combined medium, heavy and compared to the previous year.
to the previous year. WesBank, on the other hand, remains extra-heavy trucks as well as buses totalled
hopeful that their prediction of 0.75% total industry growth 19 939 units after nine months, which was a Export sales of 36 781 was
can still be achieved. 2.23% improvement on the 19 489 units sold a monthly record and a
This said, the general consensus is still that the way in between January and September last year.
which business is conducted and the ability to adapt to the Compare this positive result to the drop of
gain of 1.2% over exports in
changing landscape will be key to survival. 0.8% in the overall vehicle market for this September 2017.
Sewells-MSX International believes that to remain period (412 916 units in the first three quar-
profitable and competitive in the long term, dealers need ters of 2018 compared to 416 178 units a year Vehicle exports remained a function of
to rethink their current business model. This will require a previously). Passenger car sales are down by the direction of the global economy which,
radical shift in mindset for many traditional dealerships. 0.3% and light commercials by 2.4%. despite rising protectionism and trade dis-
Volkswagen has already taken the plunge in Europe. Total vehicle sales in September putes, continued to reflect robust conditions.
Together with its European dealers the German manufac- amounted to 49 670 units, which was 1.9% Following the record export sales during
turer is to fundamentally realign its sales model in order to lower than the figure for September 2017, September 2018 and considering relatively
make it fit for the future. but there was a bright spot in the month’s strong order books reported by most vehicle
Speaking of fit for the future, the draft new, voluntary sales figures. This was the performance in exporters, exports were expected to improve
code of conduct for the automotive industry, which is being the export market. Export sales of 36 781 further and reflect strong upward momen-
circulated by the Competition Commission, is drawing was a monthly record and a gain of 1.2% tum in 2019, 2020 and subsequent years.
plenty of comment from affected parties. You can read all over exports in September 2017. The projection of export sales for
about it in this issue of AutoLive. Sales through the retail channels in 2019 was currently 384 000 export units
Also in this issue is a full list of winners in the 2018 September amounted to 78.6% of the total compared to an estimated figure of 340 000
Gumtree Auto Pre-Owned Awards. The awards, now in their volume, with 16.5% representing vehicles for the current year.
second year, are unique in South Africa in their recognition sold to the rental industry. New car sales to
of vehicles which deliver resale value, quality, durability, the rental market totalled a very significant WesBank’s View
overall performance and economy for pre-owned buyers. 23.4%. Sales to government remained low It is worth noting that total new vehicle sales
Only 2016 models with at least six months of depreciation at only 2.2% while corporate fleets bought through the dealer channel have remained
data were considered and five finalists in each of the 11 2.7% of total vehicles. relatively strong, showing an increase of
categories were extensively judged by an expert panel, of 1.9% year-to-date.
which I am proud to have been a part of. NAAMSA’s View Rental sales increased significantly in
We trust that you will find this issue of AutoLive The South African economy continued to September at 20.1% year-on-year but re-
informative and that you will continue to give us your experience recessionary conditions. Fixed mained subdued at -3.6% year-to-date. “The
feedback, constructive criticism and suggestions. capital investment remained under pressure increase in rental sales is a seasonal trend
Happy reading! and consumers’ disposable income, already seen this time of year as rental companies
under pressure, would be further impacted gear up for the pending holiday season,”
by the record impending increase in fuel says John Loxton, WesBank Executive Head
Liana Reiners, prices. Ongoing weakness in purchasing of Fleet Management and Leasing.
Editor manager’s indices as well as the Reserve
continued on next page
liana@autolive.co.za Bank’s leading indicator suggested that
To advertise in contact
Liana Reiners on 083 407 4600 or email on liana@autolive.co.za
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continued from previous page
“Economic headwinds are likely to persist and cause continued strain on the auto-
motive industry,” says Ghana Msibi, WesBank Executive Head of Sales and Marketing.
“As we enter the final quarter of 2018, we remain hopeful that our prediction of 0.75%
total industry growth can still be achieved, but not without some challenges.” ■
Monthly automotive news to and from Africa
Pleasant Surprise
as Exports into
Africa Grow 11.2% Photo: Freepik
There was a pleasant surprise for exporters into Africa at the end of September
when it was confirmed that at last there had been reasonable growth in the built-up
vehicle export figures, admittedly off low bases. Year-to-date the increase was
11.2% and year-on-year, for September, it was 16%.
This could be an indication that the rising oil price is putting some life into
African economies, although major producers Nigeria and Angola only took 622
and 517 units in the first nine months of 2018 respectively.
Total built-up exports into Africa in the first three quarters of 2018 amounted
to 18 217 units, compared to 16 382 for the same period in 2017 and 16 568 for the
corresponding period in 2016.
As usual, Toyota was the pace-setter with 7 286 units shipped into Africa,
which was a 13% YTD improvement. Second-placed Nissan lost share with lower
sales, exporting 4 596 units in the first nine months of 2018 compared to 4 779
for the same period last year. Isuzu was fairly steady with a figure of 2 786 units
exported so far this year compared to 2 596 a year ago. On the other hand, Ford
almost doubled its exports into Africa, going from 952 units in the first nine
months of 2017 to 1 835 units this year.
The number of countries that imported more than one thousand units from
SA in the first three quarter of 2018 increased by two (Tanzania and Mozambique)
compared to five countries a year ago. The top seven importers were: Kenya (2 381),
Ghana (2 341), Zimbabwe (2 295), Zambia (1 977), Mauritius (1 283), Tanzania
(1 149) and Mozambique (1 064).
Exports in September grew from 2 359 units in 2017 to 2 735 this year, both of
which were way better than the 1 638 units shipped into Africa in this month in
2016. Toyota led the way with 1 147 units (943 in 2017), Nissan shipped 700 (638 in
2017), Isuzu 350 (307) and Ford 259 (301).
Photo: PxHere
The only countries to take more than 100 units in the month were: Kenya
(354), Zambia (309), Ghana (308), Zimbabwe (280), Tanzania (239), Uganda (198),
Mozambique (162), Mauritius (160) and Nigeria (136). ■
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Snippets
Opel also Pulled into Dieselgate However, Porsche said it was “not currently cancelled, is currently in custody. Bram Schot is
Opel, the German motor company now owned by pursuing” such a listing. (Porsche had been an the interim CEO.
Peugeot, of France, has been pulled into the diesel independent, listed company prior to the global In June the Volkswagen brand was fined
emissions scandal three years after the authorities financial crisis of 2008/2009. Earlier Porsche had €1 000-million for its polluting four-cylinder
discovered it. Germany’s transport authority has almost gone bankrupt trying to buy the larger diesel engines. ■
ordered the recall of 100 000 Opel vehicles – Volkswagen Group). ■
Cascada, Insignia and Zafira models.
Germany’s KBA motor vehicle authority found EVs are Indirectly
four software programmes capable of altering a Bloodhound Record Attempt Huge Polluters
vehicles’ exhaust emissions in 2015 and ordered Hit by Financial Crunch
Opel to implement a software update in affected So-called “clean” electric cars are currently using
cars to remove these programmes. Subsequently a The world speed record attempt by the British “dirty” batteries that require huge amounts of
fifth software device has been discovered which has Bloodhound rocket-powered contender, planned electricity to make and the resulting greenhouse
been found to be illegal too. KBA told Opel about to take place at Hakskeen Pan in the Northern gas emissions are considerable if the electricity is
this transgression in April, but no action has been Cape next year, has hit financial woes and needs generated by burning fossil fuel.
taken, hence the mandatory recall of 100 000 cars. R475-million to get up to speed again. According to an article in Automotive News,
Opel says it will challenge the recall in court. The company has entered into administra- by 2021 capacity will exist to make lithium ion
Opel and its sister brand, Vauxhall, were tion. The administrators say they are already in batteries for more than 10 million cars running on
owned by General Motors when the affected discussions with a number of potential investors. 60 kW/h packs. Most supply will come from China,
models were developed. ■ Administrator Andrew Sheridan says that the Thailand, Germany, and Poland that rely, in the
amount required is significant, but it is only a main, on coal to generate electricity. Just to build
fraction of the cost of finishing last in the F1 each car battery would emit up to 74% more CO2
Porsche CFO Sees Huge championship or for a team competing in the than producing an efficient conventional car, if the
Potential for VW “Super Group” America’s Cup. battery is made in a place such as Germany, ac-
Project Bloodhound was set up in 2007 with cording to Munich-based automotive consultancy
Porsche could be worth a fortune if the the aim of breaking the 1 600k/h (1 000 mph) Berylls Strategy Advisors.
Volkswagen Group listed its ultra-luxury brands as barrier. Hakskeen Pan was identified as the venue For perspective, the average German car
a separate entity, according to the brand’s finance and it has already been cleared of huge numbers owner could drive a petrol-guzzling vehicle
chief, Lutz Meschke. of stones in preparation. It had been announced for 3.5 years or more than 50 000km, before a
He says that the group of Porsche/Bentley/ recently that the team had hoped to run in SA in Nissan Leaf, with a 30kW/h battery would beat
Lamborghini/Bugatti could easily reach a market October or November next year. ■ it on carbon-dioxide emissions in a country
capitalisation more than three times that achieved where power generation is coal-heavy, Berylls’
by Italian supercar manufacturer, Ferrari, when estimates show.
it listed independently. (Ferrari is valued at about Audi Hit with €800-Million There is another critical issue with these lithi-
€19-billion). Fine for Emissions Violation um-ion batteries and that is how to dispose of them
Some analyst forecasts have gone as high as after they have competed their useful lives. ■
€100-billion for the so-called Super Premium Audi is the latest member of the Volkswagen
Brand Group headed by Porsche). The analyst said Group to be hit with a fine by German authorities
that the remaining Volkswagen Group could also for diesel engine emission violations. This applies Mercedes-Benz Finds the Going
have its shares re-rated higher as it concentrated on to its V6 and V8 engines. Former Audi CEO Rupert Tough in the Bakkie Market
its volume brands. Stadler, who has had his employment contract
Mercedes-Benz is finding the going rough and
tough as it tries to establish its new X-Class in
the ultra-competitive local one-ton bakkie mar-
ket. Sales of the comparatively expensive X-Class
are estimated at an average of only about 50
units a month (MBSA does not currently provide
actual sales figures for its various models, but
its total LCV sales in September totalled only
58 units).
This disappointing sales performance comes
despite ongoing, extensive advertising and pro-
motional programmes for this recently-launched
model, which is based on the Nissan Navara, itself
a slow seller. The upcoming Renault Alaskan also
uses the basic Navara underpinnings.
continued on next page
Bloodhound, the British world speed record contender.
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Snippets
continued from previous page
related auto services will grow six percent annually, Ford Appoints New
reaching a value of US$9.8 billion in 2022. ■ Marketing Manager
The latest advertisement for the X-Class, in
the Sunday Times, invites potential buyers to Ford Motor
“End the year your way with the Mercedes-Benz Suzuki SA Receives Company has
X-Class (with a) 3-month payment holiday and free International Recognition announced the
options/accessories up to R110 000”. ■ appointment
Suzuki South Africa has received international of Doreen
recognition for its sales growth and service Mashinini as
Saudi’s Automotive Sector quality. The local affiliate of the Japanese General Manager,
Set for Rapid Transformation compact car specialist received no fewer than Marketing for
seven Awards at Suzuki’s annual awards in the South Africa and
Saudi Arabia’s automotive ecosystem is set for a Middle East and Africa region. Among these, Sub-Saharan
rapid transformation in the coming years, with 20 Suzuki SA was crowned as the Champion of Africa, effective
per cent of the female population, or three million Champions for its growth in sales and customer 1 October 2018. Doreen Mashinini
drivers, expected to be added to the Kingdom’s service rankings. Mashinini
roads by 2020. Suzuki South Africa received awards for the takes over the position from Tracey Delate, who
An October 2018 report said the lifting of the highest sales in the region, the highest volume is now General Manager, Consumer and Dealer
ban on women driving in Saudi as of June 2018, growth in Africa, the best training of its staff in Experience. Mashinini will be responsible for
along with recovering oil prices and economic Africa, the highest parts and accessories sales in Ford’s marketing and advertising strategies,
policies aimed at boosting consumer spending, Africa, the highest sale of accessories per vehicle and reports to Conrad Groenewald, Director of
will result in an eight per cent per annum increase and the most improved systems and processes Marketing, Sales & Service.
of passenger vehicles sales until 2022. in sales. Before receiving the top award as the She is no stranger to the Ford family, having
The whitepaper, published by global research Champion of Champions, Suzuki South Africa also worked for Ford Motor Company of Southern
company Aranca, added that in addition to new received an award for the best customer retention Africa (FMCSA) from 2000 to 2014.
car sales, the positive impact of a new customer activities and a second-place award for exceptional Mashinini started out at Ford as Fleet
segment over the next 1-3 years will be felt in the automobile dealer management. Business Manager in 2000, and became District
Kingdom’s automotive aftermarket, which was “To be crowned Champion of Champions Sales Manager two years later. In 2004, she was
valued at US$7.4 billion in 2017. among all the Suzuki importers in the Middle appointed Mazda Brand Manager at FMCSA,
The whitepaper further stated that key indus- East and Africa countries is a very big honour. It with her role expanding to include the marketing
try players are already implementing initiatives means that Suzuki South Africa has excelled in all portfolio from 2006 to 2014.
to capitalise on opportunities created by women parts of our business and that our customers have With the establishment of Mazda Southern
being allowed to drive, including the creation benefitted the most,” said André Venter, divisional Africa as an independent entity in 2014, she moved
of women-only car showrooms, auto-insurance manager for sales and marketing at Suzuki Auto across with the brand to the new company and
claims centres and driving schools dedicated to South Africa. headed up the Marketing and Communications
women. Since first breaking through the 1 000 unit division, a position she held until her return to
Meanwhile, the increasing vehicle parc is per month mark in August 2017 with 1 004 sales, Ford at the beginning of October.
setting the stage for solid growth in the Kingdom’s Suzuki has grown in leaps and bounds in a largely Mashinini earned a B-Comm Degree from the
aftermarket. Aranca said 10 million vehicles will pedestrian new vehicle market. It broke its own University of Durban Westville in 1996, followed
ply Saudi roads by 2022, including 6.5 million sales record five times since July 2017 and has by a High Diploma in Marketing (2000) and
passenger vehicles and 3.5 million commercial become a top 10 vehicle brand with regular sales MBL in Marketing and Strategy (2006) from the
vehicles. As a result, demand for spare parts and above 1 000 units. ■ University of South Africa (UNISA). ■
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Carfind.co.za Provides a Positive
Experience for Sellers and Buyers Alike
Online platforms facilitating the buying and many leads a potential buyer has submitted. The providing an equal opportunity for all dealer list-
selling of new and used vehicles have become com- logic here is that a buyer submitting only one lead ings to be represented on their individual respec-
monplace as dealers tussle for a bigger piece of the on a specific vehicle has a higher propensity to have tive merits. There is no prioritising or preferential
customer pie. In this highly competitive environ- seen something he or she likes about that specific ranking of listings based on packages or boosting.
ment Carfind.co.za has set itself apart by always listing. As such their interest/intent is obviously Instead search results are freely determined as per
prioritising the buyer’s needs and in so doing has higher than if multiple leads on numerous different the buyers’ search requirements and every effort is
provided appropriate tools that enable dealers to vehicles have been submitted. made to provide buyers with what they are specifi-
optimally showcase their listings, whilst obtaining In addition, Carfind.co.za supports partici- cally searching for.
the best possible results for their participation pating dealers on the ground with training and Over and above the two primary functions
on the recently updated new look Carfind.co.za technical support. A national Customer Care discussed, there is also a third component to
platform. The Carfind.co.za redesign, released on Team is always on hand to assist dealers with the the Carfind.co.za platform. It provides focused
1 Oct’18, takes into consideration the latest global optimisation of their vehicle listings. advertising opportunities for auto promotions
trends further enhancing the buyer experience. Carfind.co.za is not all about dealers though. in the form of banner advertising packages.
Carfind.co.za is an online advertising platform As mentioned it is very buyer-focused, allowing Additionally, in order to optimise and provide
for new, used and demo vehicles that has, over 18 potential buyers to search for vehicles in a user- additional reach for advertisers making use of
years, built up a considerable amount of market friendly, uncluttered and efficient environment. banner advertising on the website, advertisements
intelligence and has a thorough understanding As with dealers, Carfind.co.za also provides are boosted on the various social media platforms
of consumer behaviour within this digital or some unique features and tools for buyers. These linked to Carfind.co.za.
online space. include a 360 Degree Interior View of a listing, The Carfind.co.za website also has an Allied
As such these unique tools also provide which provides a more detailed visual representa- Offerings page where vehicle-related offerings can
dealerships with a deeper understanding of tion of a vehicle. In addition, a free Product be listed. Much like banner advertising, it provides
what is happening with their listings on the Brochure containing all the relevant information buyers the opportunity to connect with service
Carfind.co.za site. on any specific vehicle is also available to be providers to obtain quotes for vehicle insurance
The first of these tools is a Unique Telephone downloaded, printed or saved in PDF format. or tracking, as well as obtain further relevant facts
Number per Listing. If managed appropriately, it The Product Brochure has proven to be around vehicles. The idea is to provide added value
provides dealers with insights to their individual immensely successful and popular with buy- to buyers and to enhance their overall vehicle
listings and the buyer’s response to those listings. A ers and over 40 000 downloads are done on a buying experience.
key component here is that this allows the buyer to monthly basis. Since Carfind.co.za doesn’t only feature pas-
connect instantaneously to the seller of the vehicle Carfind.co.za believes that with these various senger vehicles, but also includes trucks, motorcy-
they have searched while they are online and tools and features in place, it is able to provide cles, caravans, boats and commercial and leisure
actively engaged with their vehicle search. buyers with the information required to make trailers (all with their own unique and relevant
The Price Check Tool allows dealers to see how informed decisions before submitting leads. The search filters) it is the ideal platform for buyers to
their stock is priced relative to other similar stock final objective is for Carfind.co.za to then deliver find exactly what they are looking for. And as a
on the Carfind.co.za website. This enables them high-quality leads to participating dealers and for result it is also a proven and efficient platform for
to ensure that their stock is competitively priced those leads to ultimately convert to sales. dealers wanting to boost their sales figures.
when buyers do comparative shopping. On the Carfind.co.za platform all listings are Visit www.carfind.co.za for additional
Another unique tool available to dealers is be- afforded equal representation and are displayed information on listing on the website or for
spoke Lead Grading, which offers insight into how as defined by the buyers’ filtered searches, thus advertising opportunities. ■
For all your Motoring requireMents
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Vehicle accessories | www.orangeowl.co.za tarpaulin Branding
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Vehicle lead generation | www.carfind.co.za www.cmssystems.co.za
Paperless on-boarding of new staff
Vehicle auction Platform | www.bid4cars.co.za Gamification of Training & Skills Measurement | www.1huddle.co.za
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Autowatch Ghost Immobiliser Brings
New “Anti Theft” Technology to SA
The Answer to Theft Threat in Modern Vehicles
By Roger Houghton The Ghost is sealed and is so small it can be
installed and wrapped into the harness anywhere
in the vehicle, making it near impossible for a
So, your new ride boasts the latest in vehicle thief to find. Thieves cannot use RF scanning,
anti-theft systems from immobiliser technology to code grabbing technology to detect the security
telematics and coded keys only to be over ridden device fitted to the vehicle as the Ghost, unlike
and hacked by criminals who make child’s play of for cutting wires or adding after-market key conventional security systems, does not transmit
these technologies? fobs. The device is connected to the vehicle’s any signals. It is a Class 4 immobiliser approved
Developing and making systems to protect Controller Area Network (CAN bus) and a by the motor Vehicle Security Association of
vehicles from being stolen or hijacked is a moving personalised PIN code is programmedinto the South Africa (VESA).
target as criminals get wiser to overcoming more Ghost using buttons on thevehicle’s steering The use of the CAN data bus has several
and more complex technologies used in alarms, wheel or dashboard. advantages, including low risk during installa-
immobilisers and tracking systems. Now a local tion, low probability of detection and allows the
company, Autowatch Vehicle Security Systems, Thieves cannot use RF scanning placement of the device virtually anywhere in
a division of PFK Electronics, has introduced an to detect the security device fitted the vehicle. There is also no tell-tale clicking of a
immobiliser, developed in Russia, which does not traditional immobiliser relay.
use a radio frequency so is virtually impossible
to the vehicle as the Ghost does “The unfortunate reality of South Africa’s
to detect. not transmit any signals. high incidence of vehicle theft and hijacking has
I met the team from the Author alarm provided PFK with decades of experience and an
company in Russia at Automechanika Frankfurt. “We see the Ghost as a game changer in the ideal testing ground for developing best-in-class
When I visited their stand I met Rodger Warren, vehicle security market as it stops key cloning and anti-theft solutions,” explained Botha, who had
Group CEO of PFK Electronics, who was signing ECU swapping. A thief cannot simply add a new more than 15 years’ experience in the local track-
up a partnership agreement that has resulted in the key or replace an ECU to bypass the Ghost and ing industry before joining PFK Electronics three
arrival of the Autowatch IGLA Ghost immobiliser start the vehicle. Only inputting the correct PIN years ago.
in South Africa. code will allow the engine to start,” said Bradley PFK Electronics currently has a 70% share
The Ghost is a unique, next generation Botha, Vehicle Security Systems’ National Sales of the local vehicle security product aftermarket
device that secures a vehicle without the need Manager at PFK Electronics. and its products are fitted by 450 installers
countrywide.
PFK’s Nerve Centre, based in Umhlanga, near
Durban, is the engineering and research hub, while
it has an award-winning production facility in
Pietermaritzburg.
The company now markets its products glob-
ally in 28 countries and has local offices in Durban,
Johannesburg, Cape Town and Port Elizabeth.
Visit www.pfk.co.za for additional
information. ■
The Author alarm company developed the game-changing Autowatch IGLA Ghost
immobiliser. Here members of the Russian company are seen at their stand at
Automechanika Frankfurt. They are (from left): Dimitry Shvetsov (Technical Support
Manager), Anna Frantsuzova (Sales Director), Ilya Firsov (International Sales & Bradley Botha, Vehicle Security Systems
Distribution) and Alexander Semkin (International Sales and Distribution). Sales Manager.
Subscribe for free @ www.autolive.co.za Page 10
Draft Automotive Code of Conduct for SA
Motor Industry Draws Plenty of Comment
The draft new, voluntary code of conduct for the by the Competition Commission, however, the pro- “We are a highly regulated industry, and
automotive industry, which is being circulated by posed operational application thereof needs further this protects our South African consumers. It
the Competition Commission, is drawing plenty extensive consideration and review. In this regard, will be impossible to effectively regulate a bigger
of comment from affected parties. The Right to NAAMSA is in the process of preparing a industry in such a short space of time. We also
Repair organisation has been beating the drum response regarding, amongst other things, in- believe strongly that manufacturers have the right
for several months and now both the National warranty work, training, and other elements – for to determine the standards of those that service
Association of Automobile Manufacturers of South submission to the Competition Commission by the their products in much the same way that Boeing
Africa (NAAMSA) and the National Automobile end of this month. does with airliners or Apple does with cell phones,
Dealers’ Association (NADA) have had their say. NAAMSA envisages an evolving process tablets, or any of its exclusive products.
NAAMSA issued a media release while which will involve further discussions with the “We want to build our competition but it’s not
NADA staged media briefings in Cape Town and Competition authorities. NAAMSA also intends reasonable to do it immediately. Our businesses
Johannesburg, besides issuing a lengthy media to engage the Ministry of Economic Development have to meet global manufacturer standards which,
release. NAAMSA, represents the interests of on matters relating to transformation and on average, take many years to establish a return
vehicle manufacturers, importers, and distributors Competition in the Automotive Value Chain. on investment on meeting these standards. Our
in South Africa, while NADA is a professional level of investment is mandatory. We therefore
body representing new passenger and commercial NADA’S View support opening the market slowly and responsi-
vehicle franchised motor dealers and qualifying Here are excerpts from the NADA media release: bly. There are no defined standards in the code yet.
used vehicle only outlets in South Africa. According to Mark Dommisse, National These need to be developed appropriately, and here
Chairperson of NADA, the proposed new Code of we can help.
NAAMSA’S View Conduct will have significant negative implications
This is the media release issued by NAAMSA. for the industry and a requirement for shared Alternate Parts
The industry has considered the proposed thinking is critical. “There is no quality control of alternate parts com-
Voluntary Code of Conduct by the Competition “NADA and its members fully recognise the ing into the country and we don’t believe that this
Commission and, from an industry point of view, need to broaden participation in the automotive is responsible. Our question is: How will the indus-
there is acceptance of the principle to broaden par- aftermarket sector and are committed to co- try ensure quality parts are utilised in consumers’
ticipation in the automotive value chain in South operating and assisting the commission to address vehicles? Who is going to police the parts and
Africa. However, it is important that this should be matters of concern raised in the proposed new vehicles coming into the independent workshop. If
done in an orderly, structured manner considering Code of Conduct. the industry is not required to use genuine or ap-
legitimate commercial interests, international best “The impact of implementing the code in its proved parts, there can be no monitoring of safety
practices and the viability of franchise dealers current form will, however, have a catastrophic standards. And this won’t only apply to passenger
and automotive companies in the SA automotive effect on the economy as it undermines invest- vehicles–heavy commercials, trucks and buses will
value chain. ment, employment and consumer welfare in this also be affected.”
Ultimately, the challenge confronting South important sector of our economy,” says Dommisse. “If the independent workshops are going
Africa is how to balance social imperatives with to use quality parts, made by an original parts
the legitimate interests of stakeholders, particularly Economic Contribution manufacturer (such as Bosch or Denso) and of the
the industry’s customers. Proposed changes should South Africa currently has approximately 1,600 same specification, design, and model, then this
also consider the intensely competitive nature of new franchised automotive dealerships comprising might, one day, in theory, be acceptable. However,
the industry, the legal agreements governing the R48-billion worth of investment. It employs 60,000 the reality is that it is unlikely that all independent
relationship between automotive companies, dealers personnel directly. workshops will use these parts due to the very high
and service providers, intellectual property provi- “Only around 20% of the entire South African cost. It is doubtful that the manufactures will allow
sions and related factors – as well as the rights of car parc comprises in-warranty vehicles, and it’s this during warranty,” says Dommisse.
consumers to product safety and quality of service. this small portion which the new code is ad-
dressing. We feel that significant effort and focus Positive Aspects of the Code
“No Compromise on Safety” should be placed on developing the other 80% of “In general, we agree with the principles noted
Automotive companies are the custodians of their the industry – which is predominantly made up of throughout the code. It is the application and
respective brands and remain responsible for the out-of-warranty vehicles,” says Dommisse. machinations of it that we object to. The changes
safety and operation of their products whether “If we were behaving in an anti-competitive made to draft 2 of the code have not taken on
purchased, serviced, or repaired. There can be no manner, the arbiter would have said so, which board the submissions made to the first draft by
compromise on customer safety and quality of ser- to date hasn’t happened. We want to work with NADA.
vice. Brand and reputational protection comprise government and we want prosperity for all, but “In order for the automotive industry to
singular focus on the interests of consumers and we want it to happen in a responsible manner that continue to contribute positively and sustainably
their safety, particularly in respect of quality of does not adversely impact consumer safety, the to the South African economy, all stakehold-
parts, safety critical repairs and servicing. economy and job creation. We support a code that ers need to engage, discuss and constructively
Automotive companies accept most of the opens up the market in a way that protects invest- develop a meaningful and sustainable new Code of
principles in the Draft Voluntary Code of Conduct ment, economic sustainability, and consumers. Conduct,” concludes Dommisse. ■Subscribe for free @ www.autolive.co.za Page 11
People
Hein’s Wonderful Loyalty to Three-Pointed Star
By Roger Houghton “Customer relations
were far more personal
in my early days selling
A person who has been loyal to a brand for cars. Customers nowadays
more than four decades is not something one are more demanding and
finds often in the retail motor trade these days. finicky. They see the car
Hein Lorentz, of Pretoria, is one of them. He brand they choose as being
has just completed a 41-year career working for an indicator of how they
companies involved with selling Mercedes-Benz see themselves and want
cars. His dedication to the brand has taken him their car to have the latest
from Pretoria to Johannesburg, to Durban and technology, just like their
then back to Pretoria. mobile phones and i-Pads.
Hein, who was born into a family where his “The challenges I have
father was a true motor enthusiast, owning cars faced over the years, have
like Porsches and taking his young son to watch often been daunting, but I
motor racing at Kyalami. This background planted believe the fact I overcame
a seed that has flourished ever since. them has made me a better
Hein now goes into retirement owning a selec- person and well-qualified
tion of concours-condition cars, mainly Mercedes- to have been a leader as
Benz models – including 300SEL with 6.3-litre V8 Mercedes-Benz changed
engine which he has had for 21 years and which has its business model in South
never been in the rain! His collection also includes Africa recently.”
a couple of impeccably restored Rolls-Royces. Hein started his
He says he has always had a soft spot for big working career as a bank
cars with large engines and plenty of power. So, teller after competing his
it is no surprise that his current daily drive is an schooling at Jeppe High in
immaculate Mercedes-Benz 560 SEL. Johannesburg, where he
excelled at sport. He soon realised that working Over the years Hein has received many
“They [Customers] see the car in a bank was not for him and in 1976 he went awards, including Dealer of the Year for the
brand they choose as being to United Car and Diesel Distributors (UCDD), Menlyn dealership in 1997, 1998 and 2000, as
in Pretoria, and asked for a job. (UCDD was the well as Chairman’s Awards in 2015 and 2017,
an indicator of how they see local company with the franchise to distribute with the first award being for the overall best
themselves and want their car to Mercedes-Benz vehicles in South Africa at Mercedes-Benz passenger car dealer and the
have the latest technology, ...” that time). second as the best large passenger car dealer in
He was sent to work at Cargo Motors, which Gauteng North.
Hein’s love of all things motoring even saw was part of the Saficon Group. His first task was He was also nominated for the NADA/Sewells
him racing a Dodge Avenger in the SA production learning how to sell diesel passenger cars, which Businessman of the Year award in 1996.
car championship at one stage! were fairly rare in those days, with very few diesel “I am naturally very proud of these awards, but
“I have enjoyed a wonderful life and career models available in South Africa due to govern- I am humbled by the fact that I could not have won
over the past 41 years and have learned a great deal ment control of diesel fuel usage. them without the supportive and motivated teams
on all fronts,” said the ardent Mercedes-Benz fan. The takeover of Saficon by the Imperial Group I have built up wherever I have been employed in
“Two people have stood out as my guiding icons, in 1995 saw Hein head off to Durban, where he senior management. Each accolade has been the
being Christoff Köpke, who headed up Daimler- joined McIntosh Motors, based in Pinetown, which result of a dedicated team effort, where I was only
Chrysler South Africa, before taking a posting to had the Mercedes-Benz franchise at the time the frontman.”
Germany in 2005, and Brand Pretorius, who was He moved back to Johannesburg in 1997 and Hein has served on the Mercedes-Benz
CEO of the McCarthy Group from 1995 to 2011. this was the start of Hein’s career in the McCarthy National Dealer Council for the last 14 years. He
They are both people who were innovative in both Group, which lasted until his retirement, where has also been active in the wider environment
their thinking and actions and led by example. he ended up as a divisional executive for the of the local motor industry serving on the of
“I have been fortunate to have been involved Mercedes-Benz brand, based in Pretoria. Then fol- the NADA Norther Region Committee and the
in the retail motor industry during its period lowed a promotion to dealer principal at McCarthy Pretoria RMI Committee.
of the most disruption as business models and Mercedes-Benz Menlyn, which later became one of “I have certainly enjoyed my journey
the industry itself changed radically from what the first Lifestyle dealerships. in the local motor industry and am look-
I experienced back in the 1970s when I joined a Hein was promoted to Divisional Manging ing forward to continuing to contribute as a
fairly stable business model that had changed little Director of the Central Region in the McCarthy consultant in the retail trade,” concluded the
in many years. Mercedes-Benz network in 2002. Mercedes-Benz veteran. ■Subscribe for free @ www.autolive.co.za Page 12
Taking the Risk Out of Used
Vehicle Buying, Selling and Values
It’s a conundrum facing dealers and private buyers/ value. It also includes the vehicle’s microdot status What makes the comprehensive report a
sellers alike – determining the vehicles authenticity and confirms information such as VIN number, particularly handy tool when the physical check
and related market value for used vehicles. A key manufacturer, model, derivative, colour and year. is included, is the vehicle can be validated prior to
factor to cover when buying and or selling a used However, it’s important to note this information any cash changing hands.
vehicle, is whether the vehicle presented, to both can only be offered if the VIN is available and the It is important to note that the VehicleFacts
dealers and or the public is in-fact authentic, i.e. vehicle has previously been microdotted. pricing does not replace the M&M trade and retail
not a cloned vehicle. As we all know the adage The fact that average, high and low values pricing but is a quick check to ascertain if the buyer
refers ‘let the buy (and seller) beware!’ are given is a particularly handy aspect as it gives and or seller are on the right track as it relates to
VehicleFacts, comes to the rescue with both an indication of what a vehicle should be worth current market trends.
an online service backed up by the optional whether it has low or high kms on the clock. This Another benefit for dealers using
service of a physical confirmation via DataDot is supplemented by average retail price per Kms VehicleFacts is related to the Second-Hand
Technology’s Approved Vehicle Confirmation category which covers from less than 50 000 Goods Act, which came into effect in 2012.
Centres Nationwide that provide consumers and kilometres to more than 200 000 kilometres. This requires that dealers record the microdot
dealers alike with live market-related information information of all used vehicles it buys and sells.
pertaining to the vehicle that is being bought or VehicleFacts provides valuable The aim is to protect dealers and consumers by
sold. Together with its partners Bid4Cars, CarFind ensuring that the vehicle being traded has not
authentication information
and WePay4Cars the most accurate market and been cloned or stolen.
vehicle related data is collected and supported by and where possible, historic VehicleFacts can provide participating dealers
the physical check of the vehicle to provide the information on that vehicle. with a used car register that is in compliance with
consumer and dealer with the peace of mind that all the stipulations of the law. As with the reports
the vehicle presented is the genuine article. The light report is a valuable tool for prospec- available from the site, this would include informa-
Not only does it take the guesswork out of tive buyers looking to buy or sell a specific brand tion such as registration, colour, make, model,
how much you should be paying or receiving for a or model. Simply by submitting the make, model mileage and microdot information. Training is
vehicle, but it also provides valuable authentication and year, buyers will get an indication of what they provided for dealerships that wish to run this
information and where possible, historic informa- should be asking or paying for such a vehicle. in-house.
tion on that vehicle. The second type of report available from VehicleFacts is part of the C2 Group of
Using the VehicleFacts platform is a simple VehicleFacts is the comprehensive version. Apart companies and is not linked to any retailer, so the
process. The site can generate two types of price from all the information provided in the light services provided are aimed solely on providing
related reports along with the Nation-Wide service report, it delves deeper into the vehicle’s available buyers and sellers of used vehicles with reliable
of a physical confirmation report which is critical history as well as certain market trends which may and up-to-date information that will assist them in
to completing this type of high value transaction. impact on the price. This also shows a three-month making informed decisions.
The first is a so-called light report, which pro- analysis of supply and demand trends on the Visit www.vehiclefacts.co.za to request a report
vides basic information such as the average retail vehicle as well. or to find out more about the services provided. ■Subscribe for free @ www.autolive.co.za Page 13
Toyota’s Johan van Zyl
is a Eurostar
By Roger Houghton Unit; Toyota Motor Europe – President and CEO
as well as being a Senior Managing Officer of
Toyota Motor Corporation.
Dr Johan van Zyl, who was President and CEO of Johan van Zyl (60), is based in Brussels but
Toyota South Africa Motors, from 2003 to 2009, maintains links with South Africa through his
before taking up a series of overseas posting with family and as chairman of Toyota SA Motors. He
Toyota Motor Corporation, has been honoured as was also lauded recently for playing a pivotal role
one of 18 Eurostars for 2018 by Automotive News in setting up a mutually beneficial meeting be-
Europe. He won the award as the best European tween representatives of major SA businesses and
Operations Head. the government following President Ramaphosa
speech on plans to stimulate the economy.
“The executives who are this The achievement of being recognised as
year’s Eurostars have stood out a Eurostar adds Van Zyl to an impressive list
of South African automotive executives who
from their rivals by exceeding have made a success of working outside their
expectations.” home country. In addition, several international
executives from overseas went on to senior posi-
His citation reads: “Under Johan van Zyl tions with their OEMs after a spell working for
Toyota has continued its renaissance in Europe. subsidiaries in South Africa.
Buyers have responded to a push by the company Dr Johan van Zyl.
to make the cars more visually exciting, and Toyota The achievement of being
thwarted challenges from Nissan Hyundai and Kia recognised as a Eurostar adds Bentley), Arno van der Merwe (Mercedes-Benz),
to remain the No. 1-selling Asian brand in the re- Mike Whitfield (Nissan), Jacques Brent (Ford),
gion. Van Zyl has helped make Toyota’s European
Van Zyl to an impressive list Andrew Kirby (Lexus), Ryan Searle (Audi),
business consistently profitable by boosting of South African automotive Mike Glendinning (Volkswagen), Keith Butler-
hybrids to more than half the automaker’s sales in executives who have made a Wheelhouse (Ford/General Motors/Delta, Smiths
Western Europe. He has also started to phase out success of working outside their Group), Richard Carte (BMW/Rolls Royce), Jolyon
diesels from most of Toyota’s European line-up.” Nash (Rolls Royce, McLaren), Gordon Murray
Automotive News Europe said:
home country. (McLaren), Rory Byrne (Ferrari), Pieter de Waal
“The e xecutives who are this year’s Eurostars have (BMW Motorcycles, Zero (electric) Motorcycles),
stood out from their rivals by exceeding expecta- Among the locals who have made their mark Craig von Essen (Ford).
tions.” It added: “Johan van Zyl has the Japanese internationally include: Michael Edwardes (British Among the international postings to SA who
automaker on the fast track because of a strong Leyland), Christoph Köpke (Mercedes-Benz, went on to higher things include Ian Robertson
demand for models such as the C-HR crossover Daimler-Chrysler), Noel Phillips (Volkswagen), (BMW), Jurgen Schrempp (Mercedes-Benz,
and Yaris small car.” Vic Doolan (BMW), David Powells (Volkswagen), Daimler-Chrysler), Bernd Pischetsrieder (BMW,
Van Zyl is currently CEO Europe Region; Johan de Nysschen (Audi, Infiniti, Cadillac), Greg Rover, Volkswagen), Walter Hasselkus (BMW,
Executive Vice President, Production Business Levine (Audi, McLaren), Brian Gush (Volkswagen, BMW Motorcycles, Rover, DAF). ■
Climbing the Toyota Ladder
■ J ohan van Zyl was born in Springs, Gauteng, ■ I n January 2002 he was promoted to the posi- CEO, Europe Region.
in June 1958 and joined Toyota SA in 1993 as tion of President and Chief Operating Officer ■ In April 2016 he was appointed Toyota Motor
Director, Vehicle Sales and Dealer Network. (COO) and in January 2003 became President Europe’s Executive Vice President of a newly-
■ P rior to that he had earned a doctorate in and CEO of Toyota SA Motors. created Production Business Unit, in addition
Business Economics from the University of ■ In June 2009 Dr van Zyl was ap- to his previous responsibilities.
Potchefstroom, where he subsequently worked pointed Managing Officer of Toyota Motor ■ The Production Business Unit includes:
as a professor at the Post-Graduate Business Corporation (TMC) responsible for Africa. strategic production planning and produc-
Management School. ■ In 2011 he was appointed Deputy Chief Officer tion control and logistics, quality, operations
■ H e was appointed Group Marketing Director of Middle East, Africa, and Latin America management development, and supplier
of Toyota SA in March 1995 and was promoted Operations Group for TMC and in April 2013 breakthrough engineering.
to Managing Director, Vehicle Marketing he was appointed CEO, Africa Region, TMC. ■ In April 2017 Dr van Zyl was promoted to
in 1996 and Managing Director, Toyota SA ■ In Aril 2015 Dr van Zyl was appointed Senior Managing Officer of TMC in addition
Marketing in 1997. President and CEO, Toyota Motor Europe and to his previous responsibilities. ■You can also read
