FEMALE BUYING POWER THE IMPORTANCE OF - AutoLive
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www.autolive.co.za Issue No. 88 | 26 August 2016
THE IMPORTANCE OF
FEMALE BUYING POWER
August is women’s month and in South Africa shown that women not only control the purse price, affordability and practicality when buying
many vehicle manufacturers, importers and strings, but are also less emotional than men when cars. Fuel efficiency, safety and reliability also rank
service providers celebrate by offering customers of it comes to buying cars. higher with women than men.
the fairer sex special deals. Are they just talking the “Men should realise that they are likely to buy Locally, Datsun dealers have found that more
talk or have they come to realise that women are an not only what their women want, but in most cases, women than men make inquiries about the fuel
important target market and have increasing influ- will also lose the battle when it comes to deciding efficiency and practical aspects of a vehicle.
ence over the car-buying process and also buying what colour the new car will be. They are definitely “Generally about 55 per cent of purchasers
power of their own? in the driver’s seat, so to speak.” entering our showrooms are female and 25 per cent
“There is no doubt that manufacturers are be- According to Fenner several major surveys tend to visit dealerships on their own. Affordability
coming more aware of the important role women have delivered supporting evidence of this. For is a major consideration by most female customers,”
play in acquiring cars for the family, or for their instance, Bloomberg, the international financial says Fenner.
own driving pleasure,” says Des Fenner, General wire service, found that women in the USA make Jeff Osborne, the Head of Gumtree
Manager of Datsun South Africa. nearly 85% of consumer purchases and influence Automotive agrees, pointing out that there are
South African men may try to persuade their nearly 95% of all buying decisions. some sharp differences in the way women and men
spouses about the benefits of a sports car over a In addition, an iSeeCars.com survey of pre- buy vehicles in SA.
practical sedan, but when it comes to buying a owned car buying habits that looked at the genders “Around 30 per cent of women said they
vehicle their better halves will ultimately make the of more than 500 000 people inquiring about cars consider price to be the most important factor
decision about what will be parked in the garage. revealed that there are stark differences between
continued on page 2
Fenner stresses that local men shouldn’t feel the buying habits of men and women. Amongst
alone though. Reports around the globe have these, the research showed that women consider
Page 6 Page 10 Page 12
NAACAM’s new Vehicle exports take People are the key
executive director a beating to success
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Editor and Advertising Manager continued from previous page
“Nearly half of the male re- Manager at Mitsubishi Motors
Liana Reiners spondents said they knew enough South Africa.
liana@autolive.co.za in the purchase, followed by fuel about cars to make an independent This dealer feedback is supported
083 407 4600 economy and safety. Men rated the decision about which car to buy, by reports from off-road gymkhanas
brand name of the car as the most while 36 per cent of women stated such as the annual Rust de Winter
Contributors important attribute at 19 per cent,” they feel they know nothing about competition, which has recorded
he explains, quoting the results of an cars and needed assistance in order a higher number of female entries
Roger Houghton
online survey by Gumtree Autos. to make a purchase decision,” says in the past year. Organisers report
houghtonr@mwebbiz.co.za Osborne. “But half the female re- greater female interest in the sport
When it comes to making the
082 371 9097 decision in the first place to buy spondents said they actively seek out and an increase in the number of all-
Stuart Johnston a new vehicle, necessity due to information about cars even when female teams and female drivers on
increased maintenance costs is the they aren’t in the market to buy one the technical- and mountain courses.
stujohn@netactive.co.za
key motivator for women at 31%, while nearly three-quarters of men But what about the more
083 450 9255 followed by rising fuel costs (28%) said they would do that, so I do think practical aspects of vehicle owner-
and changing family needs (26%). the behaviour is going to shift.” ship, such as maintenance and
Advertising Sales
For males, changing family needs Osborne also says the sources repair? According to Jessie Mayo of
Liana Reiners (33%) was the most common reason men and women use to seek that Alignment Centre in Johannesburg
liana@autolive.co.za given, followed by fuel cost (25%) information is telling. “Around 53% women are definitely still shying
083 407 4600 and advertising (23%). of all respondents use classifieds, away from the DIY approach to car
“Men are more likely to be 58% use social media and 28% have maintenance, which isn’t a good
Address swayed by advertising, with 22.7% subscriptions to magazines or auto- thing. “It’s very important to take
237 Rigel Avenue of men saying that a commercial related websites.” an interest in your vehicle. Knowing
directly led to their last car purchase According to Osborne, women some basic troubleshooting could
Waterkloof Ridge
– double the amount of women who should trust their gut and use the save your life one day.”
Pretoria said the same,” says Osborne. resources at their disposal when She adds that a lot of women still
PO Box 914 005 Other research revealed that making a purchase decision. fall victim to unscrupulous mechan-
Wingate Park women are also more choosy when “Cars are definitely not the ics because of their perceived limited
0153 it comes to buying a car. On average, domain of men alone. I think it’s knowledge of cars.
women will spend 75 days consider- important that women empower In this regard, Osborne em-
012 460 4448
ing the pros and cons of buying a themselves with information in order phasises that there are still plenty of
vehicle, while men will take 62 days. to make a decision when it comes to good, reliable and honest operators
Website
Women also do more web-based their cars. Women are very active on in the market but there are some
www.autolive.co.za
research on vehicles and dealerships Gumtree when it comes to buying who are solely looking to make quick
than their male counterparts. and selling household items or run- money without investing in the
Facebook
Interestingly, women favour ning businesses, and cars shouldn’t quality of service that will generate
www.facebook.com/pages/AutoLive be any different. Do your research, repeat business.
traditional car colours, whilst men
© 2016 WCM Media CC are increasingly opting for brighter, take a car for a test drive and don’t be According to an article on the
unconventional colour choices. intimidated by the process. After all, Forbes website, Women are the
Production “Female respondents were also a car should match your pocket – but world’s most powerful consumers,
Marketing Support Services half as likely to refer to their dream also your lifestyle and personality.” and their impact on the economy
+27 (0)12 346 2168 cars during questioning, using words In this regarding, it is interesting is growing every year. Women
danie@marketingss.co.za like affordability, reliability and to note that more and more female drive 70 to 80% of all consumer
comfort when describing cars they buyers seem to be opting for off.-road purchasing, through a combina-
Disclaimer would like to buy. Men were more vehicles and SUVs tion of their buying power and
While reasonable precautions have likely to use words like power, trust, “The feedback from our dealers influence. Influence means that
been taken to ensure the accuracy class, style and engineering during suggests that more female buyers even when a woman isn’t paying
of the advice and information given the conversation.” are starting to enquire about Pajero for something herself, she is often
to readers, neither the editor, the The genders also take a different and its off-road capabilities. This the influence or veto vote behind
proprietors, nor the publishers approach when buying a vehicle, suggests that women are showing someone else’s purchase.
can accept any responsibility for with women twice as likely to ask an increasing interest in the male- All things considered, women’s
any damages or injury which may their partners which car to purchase dominated sport of off-road driving,” consumer domination is here for the
arise therefrom. before starting their research. says Braam Faul, National Marketing long run. ■
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 SA Vehicle Sales Take Biggest
Plunge in Seven Years
August was women’s month
and our inbox was literally South Africa’s economic downturn and low or an increase of 2.4% from the 28 358
brimming with press releases consumer confidence levels, probably linked vehicles exported in July last year to 29 042
promoting or celebrating to political uncertainty shortly before the vehicle exports. The momentum of new
that fact. much hyped local elections, took their toll vehicle exports was anticipated to improve
One of the most impor- on new vehicle sales in July. Sales plunged during the balance of 2016 as a result of
tant bits of news was the an- 17% when compared to July 2015. This was an expected increase in light commercial
nouncement of SA’s Women’s the biggest fall since 2009. vehicle exports to Europe.
Car of the Year. Hyundai’s Sales in the passenger car segment fell The industry organisation added that
new Tucson came away with the silverware as overall win- 20.6% year-on-year, which correlates with domestically, based on the industry’s general
ner. I had the opportunity to drive it recently and in this the fall of 20.7% in sales through the retail outlook and prevailing macro-economic
issue of AutoLive I share my two cents’ worth on why it’s a dealer channel. Dealer sales represented conditions, the balance of 2016 was likely to
worthy winner. 82.3% of the total industry sales in July of continue to be characterised by low economic
There are a string of new models to read about too, rang- 44 883 vehicles. Rental again played a big growth and increased pressure on consumers’
ing from the glorious and glamorous new Porsche Panamera part in sales, taking a 13.1% share, while 3 % disposable income. Double digit new vehicle
to KIA’s very capable K2500 workhorse. In fact, in future we represented industry corporate fleet sales price increases – in response to earlier Rand
will be focussing on at least one workhorse vehicle in each and only 1.6% sales to government. weakness, relatively high interest rates and
issue of AutoLive. Year-on-year LCV sales were down fragile consumer and business confidence at a
With autonomous vehicles receiving increasing atten- 9.9%, medium truck sales fell 13.9% time of rising retrenchments across a number
tion from all the major manufacturers and predictions being while heavy trucks and buses were only of sectors – would put further downward
that we could see the first mass produced examples on the down 5.7%. pressure on sales of new motor vehicles.
road, we look at the impact this technology could have on Year-to-date the total market is down
the insurance industry. 11% to 317 357 units. This decline is now Repayment periods are also
The Festival of Motoring happens next week and on the getting very close to the forecast of a 12%
back page Stuart Johnston gives us a sneak peek at some of fall in sales made by Chris de Kock, CEO of
lengthening with the average
the classics that will be on display at the event. Of course all WesBank, SA’s largest vehicle finance house, car finance deal being for
the latest and greatest new models will also be there so it’s at the announcement of the Car of the Year 72 months.
an event not to be missed. All the relevant information is in March. At that time there was a gasp of
available at www.safestivalofmotoring.com. disbelief from the audience. Now it seems The lower levels of new vehicle sales
The highly regarded CAR Conference is also taking as though De Kock was correct in his pes- represented a reflection of current difficult
place at the Festival. The list of speakers at the conference simistic outlook. economic conditions in South Africa. The
reads like the who’s who of the South African automotive Simphiwe Nghona, the CEO of WesBank decline in the Reserve Bank’s leading busi-
industry and includes heavyweights such as WesBank CEO Motor Retail, reported a decline of 22.5% in ness cycle indicator to 90.8 in May from 90.9
Chris de Kock. demand for new vehicle finance and a drop of in April took the index to its lowest level
As always we strive to bring you all the latest news – the 6.4% in applications for loans to finance the since the 2008 global financial crisis. The
good and the bad – from the automotive and related indus- purchase of used vehicles. This meant a fall of decline reinforced the recent decision by
tries. This includes sales figures, predictions and insights. 11.5% in total demand for finance, which is global financial institutions and the Reserve
We trust you will find this issue of AutoLive both entertain- the largest decline since April 2009. Bank to revise downwards South Africa’s
ing and informative and we look forward to receiving your Repayment periods are also lengthening growth outlook for 2016 and 2017.
feedback and we’ll welcome any suggestions in terms of with the average car finance deal being for 72 The decline in the latest Purchasing
future content. months as new vehicle prices rise. WesBank’s Managers Index also did not augur well for
data shows the average price of a new vehicle short to medium terms prospects. One posi-
being financed in July 2016 as being 14.6% tive feature was the imminent significant
more expensive than a year previously. This reduction in the price of fuel.
Liana Reiners, means people have to hold onto their vehicles In contrast, export sales were expected
Editor for longer before trading them in. The aver- to show modest upward momentum over
age ownership period has increased from 38 the balance of the year. New vehicle indus-
to 40 months in the past 12 months. try production should therefore hold steady
NAAMSA reported that industry new with 2016 export sales numbers expected
vehicle exports during July 2016 had regis- to expand to around 351 000 units from the
tered a slight improvement of 684 vehicles 333 802 export sales in 2015. ■
To advertise in contact
Liana Reiners on 083 407 4600 or email on liana@autolive.co.za
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Opinion
How Self-Driving Cars Will Change
Our Cities and Save the Planet
BY JEFF OSBORNE as coal. This is because a self-driving car eliminates
HEAD OF AUTOMOTIVE the need to park…and along with it, the need for
FOR GUMTREE SA parking lots. The presence of these flat, dark sur-
faces can raise the temperate of urban areas by up
to a full degree Celsius (known as the Urban Island
The year is 2025. It’s 8 am on a Monday morning, effect). Removing massive parking lots from malls
Sandton City. You are relaxing with a coffee in and office blocks leaves space for housing, parks
your favourite spot before heading into the office and greenery. And let’s face it – research in densely
for a 8.30 meeting. With a quick tap of a button populated cities such as New York has shown
on your smart phone, a sleek two-seater silver car that 45% of cars on the road are merely looking
pulls onto the shoulder of the road to pick you up. driverless cars on the road. Autonomous vehicles
(If you can afford the price tag, the car belongs to are more prevalent than you might think. By the
Self-driving cars will also stop
you and has driven you to your coffee spot. If not, time Google announced that they had invented the
you are probably subscribed to an Uber-like app technology that would enable us to drive without cities from their ever-expanding
that sends one to your door in the morning and drivers, engineers for the search engine had already outward sprawl and subsequent
drops you off wherever you want to go). You cruise clocked a whopping 225,300 km on the road, with- pressure to keep chewing up
onto the designated lane where traffic is moving at out anyone knowing. Since that announcement in
arable land, because travel will
a steady but free-flowing pace. Perhaps you peer 2010, car companies have been scrambling with
over to the lane of old-fashioned driver-driven cars a mania equal to the 1960s space race and with be more efficient and commuting
that are stacked bumper-to-bumper painstakingly good reason. easier as traffic is reduced.
crawling onto the highway…or perhaps you are The impact is going to be tremendous. It will
too engrossed in your morning paper or e-reader enable roads to carry more traffic and reduce the for parking.
to pay attention to the road. It doesn’t matter, massive infrastructure costs of maintain repairing Compare this to electric cars. Plugging an
because you are riding in a driverless car – the and roads. electric vehicle into your home is the equivalent
transportation of choice. This is the future that the But there are also environmental benefits. In of adding three houses’ to the grid, and if a home
likes of Google, BMW and Volvo are promising us fact, the environmental benefit of introducing self- installs a faster charger, one car –which has to be
and it’s about to happen sooner rather than later. driving cars may be bigger than electric vehicles charged daily – will draw 16,800 watts of electric-
Google and Uber announced a coalition – particularly in a country like South Africa where ity, compared to the average home that uses about
that will work to petition legislators to get more we are dependent on “dirty” energy sources such 3000 watts on average. For countries like South
Africa, that not only has a constrained electricity
supply but uses “dirty” energy sources like coal to
produce that electricity, electric vehicles are simply
not sustainable, environmentally or physically.
Self-driving cars will also stop cities from their
ever-expanding outward sprawl and subsequent
pressure to keep chewing up arable land, because
travel will be more efficient and commuting
easier as traffic is reduced. This is because these
vehicles are able to follow each other very closely
and precisely, and can sync up with Google Maps
to control the flow of traffic. America’s transport
department believes that putting self-driving cars
on the road will allow for five times the volume
of traffic to pass through the roads every day. In
theory, commuters will be able to work further
from home, which could see outlying towns boom.
Self-driving cars can have a huge impact on
the way we operate – and our planet. The down-
side? It takes away one of life’s great pleasures –
driving. Let’s hope we’ll still be able to opt in and
out of the driving experience. ■
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People
NAACAM Appoints New Executive Director
The National Association of Automotive that the automotive component supplier base in SA absolute imperative in SA’s business environment.
Component and Allied Manufacturers both contributes to and benefits from this growth” It is logical that the country’s future economic and
(NAACAM) has announced the appointment of industrial policy results will, amongst others, be
Renai Moothilal as its new Executive Director as “It is logical that the country’s viewed through its ability to deliver an economic
of September 2016. The association has been with- landscape that suits its demographic profile,”
future economic and industrial
out a full time leader since last year. Roger Pitot has remarked Moothilal.
been advising in a part-time capacity. policy results will, amongst others, NAACAM represents approximately 150
A UKZN trained development economist, be viewed through its ability to automotive component manufacturing and related
Moothilal joins NAACAM after spending the last deliver an economic landscape service provision companies, spread across more
decade at the Department of Trade and Industry than 220 production sites across South Africa. In
that suits its demographic profile.”
(dti), most recently as a senior official in the 2015, there were approximately 82 000 direct jobs
Automotive policy unit. associated with component manufacturing. In the
During this time he was instrumental in man- To that extent NAACAM aims to work same year companies in this sub-sector invested
aging various policy and programme related issues towards a vision that maximises the localisa- more than R2.7 billion whilst generating sales in
including the transition from MIDP to APDP, tion opportunities associated with automotive excess of R82 billion. Whilst the role of vehicle as-
institutionalising the Automotive Supply Chain manufacturing for its members whilst actively semblers as value chain drivers is undisputed, the
Competitiveness Initiative (ASCCI), as well as lay- promoting and implementing activities to support components sub-sector is globally recognised for
ing the groundwork for the ongoing development the government’s push to increase broad based its ability to generate significant levels of value ad-
of an Automotive Masterplan from 2020 to 2035. black participation in the country’s industrial dition, employment, skills development and other
Outside of core policy issues, he has been part of landscape. “Sustainable transformation is an cross cutting economic benefits. ■
several incentive adjudication committees as well
as being an advisor to automotive companies on
issues related to investment and production in SA.
NAACAM aims to work towards
a vision that maximises the
localisation opportunities
associated with automotive
manufacturing for its members.
Moothilal’s appointment comes at a time when
NAACAM is looking to enhance its positioning
and role within the SA automotive environment to
deliver greater value for members. In welcoming
him, NAACAM president Dave Coffey said: “We
are pleased at Renai’s appointment. He brings a
unique set of skills and experience and has, in a
fairly short time, made his mark in the automotive
manufacturing sector. He is respected by its key
stakeholders and has a deep and holistic apprecia-
tion of the challenges and opportunities faced by
different sector players”.
According to Coffey the sector as a whole is
operating in an always changing, highly com-
petitive and challenging environment and that
NAACAM had to adapt and grow accordingly.
“We are entering an exciting phase of operations
for NAACAM and the automotive sector as a
whole. Under the leadership of the dti, preparations
are firmly underway to develop an Automotive
Masterplan and supporting policy framework to
optimise growth and economic outcomes from
the sector up to 2035. NAACAM wants to ensure Renai Moothilal, new Executive Director of NAACAM.
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People
JLR Director Wins Prestigious Award
Lisa Mallett, the Marketing Director of Jaguar
Land Rover South Africa and sub-Sahara Africa,
was recently recognised as a regional winner at
the Africa’s Most Influential Women in Business
and Government awards, presented in conjunction
with CEO Global magazine.
Mallett was honoured as a winner in the
Automotive and Components category, which
represents the automotive industry of which she
has been a part since 2006. She has extensive ex-
perience in the premium automotive segment and
has been the Marketing Director at Jaguar Land
Rover South Africa and sub-Sahara Africa since
March 2015.
In her current capacity, Mallett has over-
seen the successful market introductions of
several Jaguar Land Rover models, including
the Land Rover Discovery Sport as well as the
All-New Jaguar F-PACE – the sports car maker’s
first-ever SUV. Lisa Mallett, the Marketing Director of Jaguar Land Rover South Africa and sub-
“To say that I’m humbled by this is an Sahara Africa.
understatement,” said Mallett. “Awards like this
help highlight that it’s entirely possible for female cars, Konaka was responsible for developing and
leaders to be successful in South Africa’s male- implementing Honda’s pan-European strategy
dominated motor industry.” – a task he performed for the past six years. His
The awards cover 23 economic sectors, and experience while in Europe also extends to Honda
honour influential female leaders in Africa’s private motorcycles, in his position held as president of
and public sectors. For the past sixteen years the Honda Poland.
awards have independently recognised those Honda Motor Southern Africa operations
leaders who are at the pinnacle of their industry. director, Graham Eagle has been promoted to vice
The nomination process is open for all individuals, president and will support Konaka as he makes the
with nominees suggested by the business com- transition into the new position. ■
munity – with more than 5 000 names submitted
across all categories. Bridgestone Gets New CEO
“Nominees undergo a rigorous multi-tiered Bridgestone SA recently announced the appoint-
judging process,” says Annelize Wepener, Chief ment of Gavin Young as CEO. This follows the
Executive of CEO Global. “Quality assurance is decision by outgoing CEO, Mike Halforty, to take
provided by KPMG throughout the judging and early retirement.
the highest possible standard is maintained. Those Making the announcement, Bridgestone’s Toshiaki Konaka became president for
individuals whom have been recognised as win- Senior Vice President for the CMA region (which Honda Motor Southern Africa in April.
ners in their field can be assured that they have includes Russia, Turkey, the Middle East and
truly excelled.” ■ Africa), Hakan Bayman, paid tribute to Halforty’s
19 years of service, many of them spent at the Port
Honda SA Has a New Boss Elizabeth and Brits plants, before he was ap-
It happened with very little fanfare, but in April pointed as COO in 2012 and CEO in 2014. “Mike
this year, Toshiaki Konaka became president has put his life and soul into the company and the
for Honda Motor Southern Africa. He replaced Bridgestone brand, and I thank him on behalf of
Yoshiaki Nakamura, who following eight years in the global Bridgestone family for that dedication,”
the role, has retired after a long and distinguished Bayman said. “He will support Gavin in the transi-
career with Honda. tion over the next three months.”
Joining Honda in 1984, Konaka has held a Young (57), is a Process Engineer by profession
number of senior automotive and sales roles. Of and has more than 30 years of industrial experi-
his 32 years with the company, 16 were spent at ence, having held senior leadership roles in South
Honda’s European operations, including heading Africa, the United Kingdom and the United States.
up Honda Spain and Honda Poland, as well as His role will be to engage the entire organisation to
stints in Germany and the UK. In his most recent drive growth and profitability in the South African
position as pan-European director for passenger market over the next few years. ■ Gavin Young, the new Bridgestone SA CEO.
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Snippets
VW Group Tops Sales Chart Corolla Still The World’s “Achieving this status is encouraging as it
Despite “Dieselgate” Favourite Car shows that Dunlop is indeed the brand of choice.
Product usage is a solid proof point that dem-
The Volkswagen Group has overtaken Toyota as Despite Toyota dropping back to second in global onstrates that users trust our product and its
the world leader in vehicle sales at the halfway sales its Corolla remains the world’s favourite performance, especially when we consider that this
point in 2016 despite the ongoing negative publicity vehicle model. According to automotive research is a repeat accolade we have enjoyed over several
regarding the company’s emission-rigging scandal company Focus2move a total of 634 289 Corollas years,” she said.
with some of its diesel engines. The VW Group were sold in the first six months of 2016. Corolla The TGI survey, from where the Icon Brands
delivered 5.12-million units in the first six months sales since launch of this model in Japan in 1966 results are sourced, is the largest of its kind in
of the year, which was a 1.5% rise over the figure in now exceed 37 million units with the current South African with 19 sectors and 163 product cat-
the middle of last year. model being the 11th generation. (The 10th genera- egories. Over 15 000 consumers were surveyed and
While sales of Volkswagen brand vehicles have tion model is still sold in SA as the Quest alongside the data was weighted using the Statistics South
suffered from the scandal the group’s sales have the latest Corolla model). Africa’s population mid-year estimates. ■
been boosted by strong performances from its The second best selling model range in the
Audi, Porsche and Skoda brands. world for the first six months of this year is the
Toyota reported a drop in sales following a Volkswagen Golf, with 500 630 units sold. The Ford SA Still Loves Lighter Colours
series of production stoppages in Japan, Toyota’s F-Series pick-up, which is sold mainly in North South Africans still love their cars in lighter
sales for the first six months of 2016 totalled America, is No. 3 in the popularity stakes with 478 colours. This is according to the latest data from
4.99-million units which was a drop of 0.6% from 384 units delivered. The other models making up Lightstone Auto which shows white to be the
the 5.02-million units sold in the same period last the top 10 were the Ford Focus (367 479), Hyundai overwhelming favourite of both men and women.
year. Toyota has been the world leader in annual Elantra (363 490), Volkswagen Polo (358 602), There has been little change since 2010, when the
sales since 2012. Toyota RAV4 (346 791), Toyota Camry (339 611), favourites were white, silver and black, to the cur-
General Motors remained third in the rank- Honda CR-V (333 597) and Chevrolet Silverado, rent situation where white, silver and grey are top
ings with six-month sales of 4.76-million units. another North American pick-up (307 845). ■ of the list. The colours that follow the top three are
However, Toyota remains the top-selling blue, black and red.
individual vehicle brand in the world with Rory Judd, the Head of Online Marketing at
4.19-million Toyotas sold compared to 3.26-mil- Dunlop Remains A Consumer MiWay Insurance, said there are a number of fac-
lion Volkswagens, 3.11-million Fords and Favourite In SA tors why lighter colours are the better option: “Cars
2.4-million Nissans. ■ in lighter colours are a good buy as they usually
Dunlop has once again been heralded as the have lower insurance premiums than darker colour
leading name in the Tyre Brands Category in the cars and are more visible on the road as well as be-
Ford Wants Fully Autonomous 2016/17 Target Group Index (TGI) Icon Brands ing easier to resell.”
Vehicle by 2021 Survey. This win comes as the fourth triumph Lighter cars also tend to be more comfortable
since 2011 and is testimony to the trust inherent in hot climates and are more practical in not show-
Ford has announced its intention to have a high- in the South African market in Dunlop as a brand ing small scratches. ■
volume, fully autonomous SAE level 4-capable of choice.
vehicle in commercial operation in 2021 in a ride- This achievement represents yet another signif-
hailing or ride-sharing service. icant win for Dunlop’s parent company, Sumitomo Nissan to Display
To get there, the company is investing in or Rubber South Africa (SRSA), who has embarked Innovative Petrol Engine
collaborating with four startups to enhance its on a series of investments over the past two years at Paris Motor Show
autonomous vehicle development, doubling its in enhancing its operating capacities and revitalis-
Silicon Valley team and more than doubling its ing its brand. According to Yvette Govender, acting Nissan will display a new type of petrol engine in
Palo Alto campus. Marketing Director for the SRSA group, the most an Infiniti at the upcoming Paris Motor Show. The
“The next decade will be defined by automa- notable attribute of the survey is that it looks at company claims this engine, which uses vari-
tion of the automobile, and we see autonomous actual product usage. able compression technology, may make some of
vehicles as having as significant an impact on today’s advanced diesel engines obsolete.
society as Ford’s moving assembly line did 100 The reason is that the engine can choose an
years ago,” said Mark Fields, Ford president and optimal compression ratio between 8:1 and 14:1,
CEO. “We’re dedicated to putting on the road an which is a key factor in the trade off between power
autonomous vehicle that can improve safety and and fuel efficiency in all petrol engines. The turbo-
solve social and environmental challenges for charged 2-litre, four cylinder variable compression
millions of people – not just those who can afford engine, named VC-T, has 27% better fuel consump-
luxury vehicles.” tion than the 3.5-litre V6 engine it replaces, with
Autonomous vehicles in 2021 are part of Ford comparable power and torque output.
Smart Mobility, the company’s plan to be a leader The engine is also cheaper to manufacture
in autonomous vehicles, as well as in connectiv- A fully autonomous Fusion Hybrid than today’s advanced turbo diesel power units.
ity, mobility, the customer experience, and data research vehicle on the streets of
continued on next page
and analytics. ■ Dearborn, Michigan.
Subscribe for free @ www.autolive.co.za Page 9
Snippets
continued from previous page
1976. Over this period 12.7 million Accords have this car as his official transport during his period
been sold in this market, with 10.5 million made of office from 1949 to 1964.
Nissan engineers say the VC-T should also meet in the US. The 300 series was built between 1952 and
nitrous oxide and other emissions regulations The Toyota Camry, which has been the best- 1957. This particular car is a so-called 300b model,
in certain markets without requiring costly selling car in the US every year from 1997 to 2015, built in 1955. It was imported to South Africa
treatment systems. except for 2001, and leads the way this year, has by Werner Stucky, in the late 1950s. The current
Nissan says many motor companies have been sold 11.3 million vehicles since this model was owner, Dries de Jager, was a well-known private car
working on variable compression engines, some for launched in the US in 1982. restorer residing in Volksrust. ■
as long as 20 years, but the Nissan VC-T is the first However, the sales of these cars lag behind
of these units to be brought to market. ■ the favourite vehicle in the US, which is the Ford
F-Series pick-up truck. It has sold 35 million units WesBank CEO Will Speak
since launch in 1948 and been the market leader at CAR Conference
Another Show for SA for the past 33 years. ■
For the first time in history, the Speed and Sound Chris de Kock, the
Motor Expo – dubbed MotorEx – will open its CEO of WesBank,
doors to the general public and will coincide with Adenauer Merc Set to Stun has joined the
the 16th year of Speed and Sound Magazine’s exist- Crowds at Inaugural Concours impressive list of
ence as the leading media authority in automotive speakers lined up
performance tuning and car audio. The sheer size and grace of the Mercedes-Benz for the biennial
Kicking off on September 16th, MotorEx will four door 300 W186 model will stun visitors to the CAR Conference,
showcase specialty automotive performance inaugural Concours South Africa, taking centre which takes place on
parts and products as well as high end products stage at Sun City on September 9 to 11. September 1, during
seldom seen at any other car show in South Africa, This massive Merc from the mid-1950s will Chris de Kock, the the SA Festival of
and what better way than to do so than at The be making the trip to Sun City from Nylstroom, CEO of WesBank. Motoring at the
Ticketpro Dome in Johannesburg. and the Concours will give people the chance to Kyalami Circuit and
The weekend’s main highlight is the Meguiar’s see this veritable monument to the recovery of the Conference Centre.
Best of Show and will features the grand unveil- automotive industry after the devastation of World There were gasps when De Kock pronounced
ing of some of South Africa’s ultimate show cars. War Two. in March that WesBank predicted a decrease of
Another fantastic element of the event is the The car is commonly referred to as the 12% in total vehicle sales in 2016 compared to 2015.
huge trade arena whereby 70 performance tuning “Adenauer” Mercedes, as it was the favourite mode However, it seems his prophesy is well on track
and car audio exhibitors will showcase the latest of transport for the first Chancellor of the Federal as the year-to-date decline at the end of July was
and greatest products, parts and services to the Republic of Germany, Konrad Adenauer. The 11%. Nobody else had forecast such a big fall in
huge crowds in attendance over the weekend’s Chancellor employed no less than six variations of sales volume.
festival of everything custom, performance The all-day conference will conclude with a
and collectable. panel discussion on the state of the South African
Tickets are already on sale and prices start automotive industry and change required to
from R200. Visit www.speedandsoundexpo.co.za compete in world markets. The panel will consist
for more information and the full itinerary. ■ of Mike Whitfield, the president of NAAMSA;
Jeff Osborne, the head of Gumtree Automotive;
Thomas Schaefer, the president and CEO of
Honda Celebrates in US Volkswagen SA, Chris de Kock of WesBank, and
Honda is celebrating the fact that the Accord has Dave Duarte, the founder of Treeshake.
been the top-selling passenger car in the United For more details on the 2016 CAR Conference
States for the past 40 years, from its introduction in Mercedes 300b exterior in green. and to book go to www.carmag.co.za/conference. ■
Subscribe for free @ www.autolive.co.za Page 10
Monthly automotive news to and from Africa
Vehicle Exports into Africa Continue to Plunge
Toyota was the leading exporter in July with On a year-to-date basis the total market for
BY ROGER HOUGHTON shipments of 676, which was only marginally more the first half of 2016 at 13 378 units is less than
than the 661 units exported into Africa by Nissan. Toyota’s exports into Africa in the first six months
Ford exported 174 units in the month and GM/ of 2015, when 13 298 units were shipped from the
Exports of built-up vehicles from South Africa into Isuzu Trucks shipped 126. The corresponding Prospecton plant. Toyota only exported a total of
other African countries continue to spiral down- figures for the top three exporters in 2015 were 5 355 units in the first half of 2016. Other major
wards at an alarming rate. Year-on-year the figure 1 528, 871 and 1 345 units for Toyota, Nissan and exporters, with equivalent figures for 2015 in
is down by 60.5% from 4 453 units in July 2015 to Ford respectively. parentheses, were: Nissan 3 663 (7 215), Ford 2 058
only 1 761 units in the same month this year. Ghana was the top market for SA-built vehicles (5 703) and GM/Isuzu Trucks 1 028 (2 167).
Year-to-date the figure has plummeted by in July taking 379 units, with Kenya next best on Nigeria was the largest market at 2 413 units,
55.4% from 29 965 units in the first half of 2015 to 344 units. The only other markets to take more just ahead of Ghana on 2 141 vehicles while Kenya
13 378 units in the first six months of 2016. One than 100 units were Tanzania (125), Zambia (120) was third on 1 098 units. Last year Algeria was the
must remember too that the 2015 figure was 34% and Malawi (105). Two markets which are usually dominant export market with 7 551 units, while
lower than the shipments from South Africa into near the top of the list, Nigeria and Zimbabwe, this year only 470 vehicles were shipped to that
Africa in the first half of 2014. slumped to 86 and 47 units respectively in July. country – 283 Nissans and 187 Fords. ■
New Industry Body Leads Development
of African Automotive Sector
The development and promotion of a cohesive au- CEO of Ford Motor Company Sub-Saharan Africa as Latin America (176) and Asia, Oceania and the
tomotive strategy for the African continent is gain- Region, recently visited Nigeria’s capital city, Middle East (79).
ing new impetus due to the strategic vision and Abuja, to engage with government and indus- “One of the biggest challenges we face in
guidance of the African Association of Automotive try leaders in order to create the framework for Africa is the lack of reliable data on the number of
Manufacturers (AAAM), which was formed in policy development to support the growth of the new and second-hand vehicles sold on the conti-
November 2015 by BMW, Ford, General Motors, local industry. nent, as very few countries have formal reporting
Nissan, Toyota and Volkswagen, focusing on key “The aim of the African Association of or legislative structures to monitor the automotive
markets of the African Continent. Automotive Manufacturers is to unlock the sector,” Nemeth explained. “This is exacerbated
A delegation from AAAM, led by Jeff Nemeth, economic potential of the African continent by by the large number of second-hand imports,
Chairman of AAAM as well as President and promoting a policy environment that is conducive with only a small proportion of new cars sold due
to the development of the automotive sector,” to the high import duties and lack of affordable
said Nemeth. financing options.”
“As the African continent becomes increas- AAAM’s mandate, thus, is to engage with gov-
ingly important within the global economy, it is ernment, industry bodies and representatives from
crucial that we develop an auto sector strategy the motor sector to provide advice on opportuni-
backed up by incremental investments in infra- ties to formalise, develop and grow all aspects of
structure, skills development and in-market locali- the local automotive industry.
sation programmes. This will make new vehicles This includes promoting an investor-friendly
more affordable, boost the industrialisation of the regulatory framework that will support the devel-
economy and lead to the growth of middle income opment and implementation of policies to establish
households, which will be the main driver for new a viable automotive manufacturing industry
vehicle sales.” on the continent that includes both assemblers
Nigeria is recognised as a strategic market over and suppliers.
the long term due to its demographics. However, “To unlock this market potential will require
while the country is recognised as Africa’s largest greater government and private sector partner-
economy, the automotive sector is relatively small, ships to develop a formal legislative environ-
with an estimated 44 vehicles per 1 000 inhabit- ment that is conducive to longer-term growth.
ants, according to Deloitte Africa’s Automotive It needs a more robust automotive strategy that
Jeff Nemeth, Chairman of AAAM and Insights, published in April 2016. This is far below promotes a sustainable and stable environment
President and CEO of Ford Motor the global average of 180 vehicles per 1 000 inhabit- in support of local manufacturing operations,”
Company Sub-Saharan Africa Region. ants, and lower than other developing regions such concluded Nemeth. ■Subscribe for free @ www.autolive.co.za Page 11
Nissan Offers Hassle-Free Vehicle Ownership
A recent independent survey conducted by TNS “Many of the warranties available on new well-trained sales and service staff who are com-
Qualitative revealed that 85 per cent of South vehicles today are riddled with provisions and mitted to resolving any problem and who are on
African customers only rated their detailed un- exclusions. This makes the warranty programme hand to explain any part of your vehicle ownership
derstanding of their motoring plans as 2/10, with difficult to understand and often dilutes the benefit in detail, including the new warranty and service
half of respondents unsure of what plans they were to the customer. With Nissan Assured, we have plan. The team will even inform you of small
actually on. made the warranty as comprehensive and easy to details, such as when your licence disk expires,”
Nissan South Africa has taken the confusion understand as possible,” explained Gobille. Gobille enthused.
out of complicated motoring plans by launching The 6-year/150 000 km warranty covers all Nissan Assured is available immediately
Nissan Assured – one of the clearest and most major mechanical components and service or with a wide range of Nissan passenger, crosso-
comprehensive service, warranty and dealer repair work done at an approved Nissan dealership, ver, performance and light commercial vehicles
improvement programmes in the country. Nissan using genuine Nissan parts. Standard warranty and is available as an optional extra on Nissans’
Assured not only offers 6 years’ complete peace of exclusions on wear-and-tear parts such as shock range of commercial vehicles and the Nissan
mind with one of the best warranty and service absorbers, brake pads and linings and the clutch Micra. Customers who have recently purchased
plans on the market but also a more straightfor- only apply after 3 years or when the first 100 000 a Nissan will have the option of upgrading
ward and easy-to-understand approach. km of the warranty has expired. their warranty and service plan at a nominal
The warranty also includes a range of roadside cost. However, Nissan’s new comprehensive
assistance benefits. These include 24-hour roadside warranty and service plan will not apply to the
“Many of the warranties available
and towing assistance as well as support if you find NV350 Impendulo taxi and GT-R supercar, both
on new vehicles today are riddled yourself stuck with a flat battery, without fuel or of which are covered by plans tailored to their
with provisions and exclusions. even if you lock your keys in your car. unique application. ■
This makes the warranty With the 3-year/90 000 km
service plan Nissan custom-
programme difficult to understand
ers can expect the free service
and often dilutes the benefit to replacement of oils and filters,
the customer.” spark plugs, brake fluid and en-
gine coolant. On specific mod-
“Nissan Assured is our answer to custom- els, items such as the timing
ers’ vehicle ownership, service and repair needs,” belt, differential oil, transmis-
said Xavier Gobille, Managing Director of Sales, sion fluid and transfer fluid are
Marketing and Aftersales. “It is the product of also covered, as are all labour
Designed by Freepik
many hours spent listening to what our customers charges for the servicing and
enjoy about owning a Nissan and their suggestions replacement of these parts.
to further improve their ownership experience to “At the core of our Nissan
create a new benchmark in customer care. Assured programme are
“Creating Business leaders in the South
African Motor industry”
“Join our Advanced Dealers Management
program in September 2016”
Contact
Deidre du Plessis
Head of Delivery
SEWELLS GROUP (SOUTH AFRICA)
Unit A, La Rocca Office Park,
321 Main Road, Bryanston
t. +27 (11) 702-9218
m. +27 (82) 857-2577
e. dduplessis@sewells-msxi.com
www.sewells-msxi.comSubscribe for free @ www.autolive.co.za Page 12
Understanding People is a
Secret For Success
“People are my product. I have a passion for people, particular
understanding how they think.”
This is the business philosophy of William Skinner, The planning is measured against actuals on
who has been through the ranks in the retail motor a monthly basis to assess the accuracy of the plan-
industry and is now a Senior Consulting Associate ning and to develop actions to improve revenue
of Sewells MSX International in South Africa. and reduce costs where necessary. Planning and
Skinner’s speciality is the application of the the results that follow are also evaluated continu-
Business Development Model (BDM) which he ally against industry benchmarks.
developed before joining Sewells SA in 2008. BDM According to Skinner an important feature
is a programme for retail motor dealers, which of Sewells MSXI’s BDM is that probing “what if”
involves detailed financial planning and then the scenarios can be factored in before important
continual evaluation of the plan against actu- decisions – such as major capital expenditure
als as well as the development of remedial action projects – are made and implemented.
where necessary.
“The Sewells BDM addresses the retail motor BDM enables all involved
industry’s need for disciplined planning while managers to be coached
developing an understanding among members
of senior dealership management of the finan-
effectively by a highly trained
cial implications of business planning without Sewells consultant with extensive
being a high powered and qualified accountant,” motor industry experience.
explained Skinner. William Skinner, Senior Consulting
“The driver for coming up with BDM was BDM has another important benefit and that Associate at Sewells MSXI.
the lack of quality managers in many dealer- is its ability to act as an important training and
ships and the resulting lack of planning disci- coaching tool. It enables all involved managers to culture of learning, thereby evolving new
pline in the various departments, which is often be coached effectively by a highly trained Sewells ways of doing business?
poor. Effective use of the BDM shows the dealer consultant with extensive motor industry experi- ■■ There is a need to double the output of each
principal or dealership owner how to get behind ence and then to be held accountable to come up individual in a team every four years.
the thinking of his or her departmental heads so with deliverables according to plan.
that assistance can be forthcoming before any real The Business Development model is offered He also stresses the importance of having the best
damage has been done,” added the experienced by Sewells for a monthly fee of R15 000 with the people – disciplined, trained and informed – to
Sewells Associate. dealership having direct access to a qualified make a success of a business. He believes they
consultant to put the team through the process in a need to be supported by effective communication
proactive manner. This hands-on assistance should and solid business planning so that they under-
“The driver for coming up with
ideally last for 12 months to entrench the system in stand the importance of decision making and the
BDM was the lack of quality the dealership team. potential consequences.
managers in many dealerships Skinner has come up with five business “Over the past eight years, working as a Senior
and the resulting lack of principles which he believes are critical in today’s Consulting Associate with Sewells, I have been
economic environment: able to build substantially on my knowledge of
planning discipline in the various ■■ Is it easy to do business with us and for us? people and the way they think, which is ena-
departments, ...” ■■ Have we cut out all duplication in business bling me to fine tune the Business Development
processes and responsibilities? Model to the mutual benefit of Sewells and all the
BDM guides dealer management through the ■■ Are we effective first and then efficient? dealers and people involved in this programme,”
planning process by making sure all costs are con- ■■ Have we identified potential and created a Skinner concluded. ■
sidered in a practical manner so that nobody in the
team can claim ignorance anymore; it can be used
to identify problem areas in any size dealership.
The BDM creates a variance report which manag-
ers then need to investigate and provide feedback,
which permits the next month’s planning to be
amended if and where necessary.Subscribe for free @ www.autolive.co.za Page 13
Filpro Programme Benefits
Informal Mechanics
Filpro continues to grow its presence in the local Filpro project co-ordinators visited the lubricants and spark plugs, followed by soft skills
market with the recent launch of its automotive en- three townships during July to meet the motor training which includes basic business manage-
terprise development programme to 106 informal mechanics and conduct a needs assessment of ment and bookkeeping.
motor mechanics in the Eastern Cape. The com- their informal service centres. This was used to The Filpro enterprise development programme
pany has partnered with the Uitenhage Despatch determine the mechanics’ requirements to grow is also currently being run in Gauteng, KwaZulu-
Development Initiative (UDDI), a socio-economic their businesses. Natal, Free State, Mpumalanga, Northern Cape,
development agency based in Nelson Mandela The programme commenced with prod- Western Cape and the North West to over 1 000
Bay, for the roll out of the programme over a three uct training on automotive filters, brake pads, informal service centres. ■
year period.
“We are confident that the
training being offered to them will
transform their lives as well as the
communities that they run their
businesses from.”
“We are excited to introduce the Filpro enter-
prise development programme to motor mechanics
operating their businesses in the Kwanobuhle,
Kwa-Langa and Despatch townships. We are con-
fident that the training being offered to them will
transform their lives as well as the communities
that they run their businesses from.” said Mboneni
Magada, General Manager of Filpro. “It is a
privilege to partner with the UDDI who share our
vision to empower informal automotive entrepre-
neurs in the Eastern Cape.” The Kwa-Langa group of mechanics during their product training.
Fast track your Automotive career
Sewells-MSXI Public program offering Contact
Advanced Dealer Management Deidre du Plessis
Delivery Head
5 September 2016 – 22 Contact days over a
12 month period 27 (11) 702-9218+ .t
27 (82) 857-2577+ .m
e. dduplessis@sewells-msxi.com
Service Advisor’s 101 w. www.sewells-msxi.com
22 September 2016 – 2 Contact days
MRA & Business Management
26 September 2016 – 2 Contact days
Parts Sales Boot Camp
13 October 2016 – 2 Contact days
Customer Centricity
24 October 2016 – 2 Contact daysSubscribe for free @ www.autolive.co.za Page 14
We Drive
Ultra-tech on Upcoming Porsche Panamera
Porsche Panamera 2017 model year.
BY STUART JOHNSTON of new electric motors whirring away unseen
to make the seats even more adjustable and
climate-optimised.
In a few months from now, the first all-new All this as added weight, and it is a testament
Porsche Panamera will go on sale here in South to Porsche’s focus on driving pleasure that the new
Africa. Although considered to be “less than beau- car weighs in total just 5 kg more than the out-
tiful” by many car-spotters, the first-generation going model.
Panamera has been a remarkable success story in All new too is the new V8 twin turbo engine
terms of sales, both abroad and in this country. line. These include a diesel V8 and a petrol V8. We
AutoLive’s correspondent was invited to a were taken as passengers around the Lausitzring
special technical preview of the car prior to its Speedway near Dresden in the turbocharged 404
international debut this month, and Porsche set kW petrol V8 by a Porsche test driver and mar-
the tone for this workshop by stating that in reality, velled at the car’s amazingly abilities.
only the badge remained unchanged on the car.
Chief amongst the new technologies at play Real life cutaway of new Panamera twin
Aluminium is now used in
in this new Panamera is the body construction. turbo V8.
Aluminium is now used in practically all the practically all the outer cladding
outer cladding of the car. In this case, special of the car. In this case, special
techniques were employed to join the aluminium techniques were employed to join
to the passenger safety cage. This includes a
the aluminium to the passenger
special roller hemming process, where the alu-
minium is folded around the high-strength steel safety cage.
safety structure of sills and B-pillars and bonded
with special adhesive. This obviates the need for Acceleration was stunning, with the 100 km/h
riveting, which Porsche explained would have mark coming up from rest in just 3,8 seconds,
been all but impossible, such is the hardness of remarkable for a full four-passenger car weigh-
the steel employed. ing about 2 000 kg! Even more impressive was
The new body-shell shed an impressive 70 kg the way this four-wheel drive car turns instantly
in its basic construction. This was a good thing, into a corner with no hint of scrub. Also new in
as the all-new Panamera has had plenty of luxury the Panamera is air suspension, and this imparts
and cyber connectivity features added. The ar- a limo-level ride comfort to the car (until that Porsche’s new Panamera chassis.
ray of buttons on the console has been replaced Sport button is engaged, whereupon it becomes
continued on next page
by touch-screen activity. Also, there are plenty an animal).You can also read
