April 2023
WWW.AUTOMOBil.CO.ZA
THE DEEpEST BUSiNESS rEACH iNTO THE SA rETAil MOTOr iNDUSTrY
CONTENTS
COlUMNS
03 . Driver’s Seat: Jakkie Olivier, CEO of the RMI
03 . Editor’s Letter: Reuben van Niekerk
30 . Tech Talk: Understanding how oil protects your engine
32 . Wellbeing: Rethinking wellbeing
33 . Finance: What does the 2023 budget mean for you
NEWS
05 . News
10 . New products
12 . Industry News
16 . RMI News
24 . Association News
FEATUrES
22 . Behind the Scenes with the TEPA NEC
26 . Campaigning for the rights of tyre and parts dealers
28 . Interview: Barry Canning remains involved following a stellar career
34 . Legal: Drafting a will for foreign assets
36 . Labour: Think before you ink
rEGUlArS
38 . New models: Hyundai Venue Cargo and Renault Captur
40 . Motorsport: Manufacturers committed to Simola Hillclimb
41 . Member Update
42 . Sales: February 2023 vehicle sales figures
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.
www.automobil.co.za
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www.automobil.co.za
April 2023
we have made great progress in the standardisation of our branding
amongst our membership.
Three years ago the RMI proudly launched a new corporate identity,
however we noticed that there were still members who had not replaced
their branding, so in September last year we advised members
production of RMI branding material, specifically to assist
our members, in bringing their premises up to date with
the new RMI branding. This enables members to represent
our brand consistently and uniformly, as we appreciate
changes to signage can prove costly.
The new accredited branding has just returned from
the manufacturers and is ready for distribution to our
regions. Accredited RMI members in good standing
will receive free branding, which includes two
small and two large Accredited Member decals
as well as a high quality RMI Perspex board
to proudly display for staff and customers.
The branding is currently being distrib
uted to all of our regional offices coun
try-wide and will be ready for collection at
our regional offices shortly or at our planned regional roadshows later in the
year. Members will receive a letter imminently advising on all the relevant
arrangements.
We believe this is an excellent branding opportunity for members and
one which will definitely assist our members in transitioning to the new
RMI branding and thereby ensuring that the RMI’s corporate identity is
adhered to.
Showing our best face with the correct logo, is vitally important as it is
the one element that makes us distinctively recognisable by industry, key
tee administrators, and most importantly, amongst the motoring public.
It allows the RMI to provide you, our members, with tangible evidence
of the importance in belonging to the RMI and helps create a feeling of
cohesion amongst our members and it should also assist in attracting con
sumers to member businesses.
I thank you for your support and really encourage all associations to
embrace the change and find innovative ways of encouraging members to
make the change if they have not already done so. Let’s work together to
ensure all old branding is replaced.
The transport sector defied expectations of under-perfor
mance in the fourth quarter of 2022 to be the best sectoral
performer, admittedly amongst multiple laggards. The neg
ative impact of the prolonged Transnet strike had depressed
the transport sector’s contribution, with the sector growing by
only 0.7% on a quarterly seasonally adjusted basis compared
to growth of 3.6% in the third quarter.
The ongoing challenges of harsh load shedding, inflated liv
ing costs, high production costs due to high fuel prices, rising
wage demands and elevated interest rates, all contributed to
the country’s dismal economic performance in the fourth quar
ter of 2022. With little indication of a notably different economic
environment in 2023, but rather even lower economic growth
ment is expected to remain dismal and challenging.
This performance by businesses that form part of the auto
motive industry is remarkable and shows just how resilient the
industry has been. But for how long can this continue? Surely
at some stage something has to give?
Vehicle industry experts warn that vehicle pricing might be in
for a tough time. While stock levels have normalised factors such
as the exchange rate have resulted in substantial new vehicle
price increases. In addition, the effects of low stock volumes
during the COVID-19 period could soon be felt in the pre-owned
market. With low sales numbers in 2020 there is now no one to
two-year-old stock available in the pre-owned market and buy
ers who traditionally shopped in that market now need to look
elsewhere, either at more affordable new vehicles or older pre-
owned vehicles as the stretch to a new model in their traditional
segment is simply too much for already pressured budgets.
The industry is going to have to seriously consider innovative
financing options such as plans that allows motorists to drive the
vehicle they want without the burden of a traditional finance to
own repayment agreement. I suspect the current market might
force an accelerated move to the popularisation of leasing mod
els. This in turn will have an effect on the automotive aftermar
ket as motorists will no longer be responsible or have the ability
covered under the relevant leasing agreement.
This all sounds like a serious disruption for the automotive
industry but as always, I suspect that the industry will display re
silience and reward those that are innovative in their offering.