Automobil June 2023

As always, Automobil brings you the latest automotive and industry news, association updates as well as informative articles on finance, labour, legal topics and much more. This month we bring you the latest news from the Franchise Association of South Africa, Volkswagen, Mahle, the NRCS, NADA, an insightful interview with Eric Scoble. and many more.

CONTENTS

COLUMNS

03 . Driver’s Seat: Jakkie Olivier, CEO of the RMI

03 . Editor’s Letter: Reuben van Niekerk

32 . Tech Talk: Understanding the basics of vehicle suspension

34 . Busting wellbeing myths

35 . Finance: Red Flags are required for timeous fraud detection

NEWS

05 . News

12 . Industry News

21 . RMI News

26 . Association News

FEATURES

28 . Association: SAMBRA creating value and uplifting standards

30 . Interview: Eric Scoble looks back on a career filled with success

36 . Legal: Dodging contract catastrophes

38 . Labour: Understanding the parity principle

REGULARS

40 . New models: Toyota Vitz and Jeep Grand Cherokee

42 . Motorsport: Suzuki conquers Simola Hillclimb

43 . Member Update

44 . Sales: April 2023 vehicle sales figures

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P42

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www.automobil.co.za

June 2023

JUNE 2023

WWW.AUTOMOBIL.CO.ZA

THE DEEPEST BUSINESS REACH INTO THE SA RETAIL MOTOR INDUSTRY

Editor

Reuben van Niekerk

reuben@automobil.org.za

Sub-editor

Suzanne Walker

Regular contributors

Roger Houghton

Nicol Louw

Publisher

Wilken Communication Management

Tel: 012-4604448

Advertising Sales

Greg Surgeon

greg@automobil.org.za

Automobil is produced monthly by Wilken

Communication Management for the Retail

Motor Industry Organisation. The views and

opinions expressed in the publication are not

necessarily those of the publishers or the Retail

Motor Industry Organisation. While precau-

tions have been taken to ensure the accuracy

of advice and information contained in edito-

rial or advertisements, neither the publishers

nor the Retail Motor Industry Organisation can

accept responsibility for errors, misrepresenta-

tions or omissions, or for any effect or conse-

quence arising therefrom. Permission to repub-

lish any article or image or part thereof must be

obtained in writing from the publishers.

Cover image courtesy of SIB

www.automobil.co.za

www.automobil.co.za

June 2023

DRIVeR’S SeAT

For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300

eDITOR’S LeTTeR

his month we are really proud to announce that the RMI

and the Tshwane University of Technology’s Department

of Marketing, Supply Chain and Sport Management have

made history by signing a Memorandum of Understanding

(MoU) to provide stakeholders within the Automotive Retail

Aftermarket with an opportunity to further their studies,

by enrolling for a customised Diploma in Retail Business

Management.

This first of a kind agreement in South Africa will allow

RMI members and their employees to enhance their

knowledge and skills by enrolling for a three year,

fully online qualification, that has been especially

developed for the Retail Motor Industry.

Although the MoU was actually signed some

time ago, due to the COVID-19 pandem-

ic, the accreditation of this programme

was unavoidably delayed. We are now

delighted that Dr Elizma Wannenburg,

Head of the Department of Marketing,

Supply Chain and Sport Management at TUT

has confirmed that everything is in place for the official commencement of

this programme on 1 July 2023.

The first cohort of students (employers and staff) will form part of an

historical event which represents a commendable achievement of which the

RMI is extremely proud.

Over the years professionalisation of the industry has been one of the

key focus areas of the organisation. We have always advocated for closer

collaboration between institutions of higher education and industry in order

to provide more industry-appropriate qualifications that will inspire learners

to educate themselves in a particular field. We hope that this is the first of

many programmes that we can develop together and encourage all employ-

ers within the motor sales, motor parts, equipment as well as the tyre sales

sectors to actively promote this unique opportunity by identifying potential

candidates that can form part of the first cohort of students.

Make sure to read the full article on page 22, which contains curriculum

information and guidelines on how to enrol. Applications will open soon

and space within this specialised qualification is limited so we encourage

employers to actively engage with staff to avoid disappointment. 

Jakkie Olivier , RMI Chief Executive Officer

RMI and TUT sign landmark agreement

he South African motor industry is in an extremely weird

phase right now. The transport sector defied expec-

tations of under-performance in the fourth quarter of

2022 to be the best sectoral performer and all indications are

that the transport sector once again outperformed other sec-

tors of the South African economy during the first quarter of

2023. Statistics South Africa is expected to release the real first

quarter GDP growth rate on Tuesday 6 June, with expectations

of a small positive quarterly growth rate allowing the economy

to avert a technical recession.

Although we might just dodge the official recession classifi-

cation the average South African is certainly feeling the pinch,

a situation that is only being made worse by a variety of ad-

ditional factors including political instability and widespread

loadshedding. However, for some reason the local motor in-

dustry remains largely unaffected.

The recent Simola Hillclimb was one of the best supported

iterations yet and this event has without a doubt become the

pinnacle of South African motorsport. The quality of entrants

was world class with competitors investing massive amounts

of money to improve their times up the hill. The event also at-

tracted support from a large number of manufacturers, who

used the event to showcase or even launch new performance

derivatives. Public support was great too with almost 20 000

spectators descending on the small town of Knysna to witness

the spectacle.

Vehicle sales reflect the same with Lightstone reporting

that overall sales for the first quarter of 2023 were 1.7% higher

than for the comparable period in 2022, and 20% above sales

for the same window in 2021. Probably more significantly, new

vehicle sales are, so far in 2023, 3.1% ahead of the Q1-2019

volume, a sign that the market has essentially recovered to

pre-COVID levels.

Dealer sales represented 83.9% of the 138 571 units sold

between January and March, while passenger vehicle sales

were down 1.4% year-on-year for the three months and sales

of LCVs grew 9.1% compared to 2022.

While the South African economy might be a difficult place

to survive and do business in at the moment, people need to

move and businesses need to move goods and the automotive

industry seems to be more resilient than other sectors for the

time being. 

Reuben van niekerk, reuben@automobil.org.za

Automotive industry continues

to outperform the economy

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