The National Association of Automobile Manufacturers of SA (Naamsa) reports total domestic sales for October 2011 as up by 8309 (19%) to 52 338 from 44 029 from October 2010.

78% THROUGH DEALERS

Total year-to-date domestic sales so far in 2011 are still 16.5% ahead of 2010 but October exports (25 860) were down by 712 on the same month a year ago.

Overall October 2011 reported sales break down as 78% through dealers, 14% to the car rental industry, five percent to the state and three percent to corporate fleets.

Total new car sales during October were 36 826, up by 6076 on last year, helped by above average demand by car rental companies which accounted for 19% of total new car sales.

In addition, consumers would have been encouraged to bring forward planned purchases in light of expectations of future price increases as a result of the rand’s depreciation against the dollar.

Sales of light commercials, bakkies and minibuses at 12 994 were up by 1754 on 2010 (16%) and are 11% up on the first 10 months of 2010.

The new car market for 2011 is now expected to show an improvement of between 16-18%, in volume terms, on 2010.

[Info from Wheels24]

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According to the US National Highway Traffic Safety Administration, the German automakers saaid the recall would involve 2009-12 VW Jetta, Jetta SportWagen and Golf. The engine affected is the German automaker’s 2.0 TDI which is also used in Audi’s A3.

The recall includes 161 144 VWs and 7131 Audis. No fires, crashes or injuries have been reported.

FAULTY MATERIAL

VW said 20% of vehicles recalled had fuel-injection lines with potentially faulty material. The automaker said one supplier used a faulty part in assembling fuel-injectors and the failures only related to one of four injector lines.

The company began investigating the issue in March 2010 after a warranty return due to a single fuel leaks report. The German automaker did not discover the cause of the leak but plans to notify dealers and owners in November.

In February 2011, the NHTSA investigated the 2009-10 diesel VW Jetta, Golf and Audi A3 models after it received 160 complaints and field reports alleging incidents of engine stall and/or loss of power. The problems appear to be related to high-pressure fuel-pump failures.

WV has said it believes the problem is caused by contaminated diesel fuel consumers using the wrong fuel.

Wheels24 contacted Volkswagen SA and they commented that at less than 200 local vehicles will be affected by the recall.

“VWSA has evaluated the impact on cars sold in South Africa and less than 200 vehicles could be affected. As a precautionary measure, the affected customers will be contacted directly to bring in their cars for a check at their nearest dealership,” said VWSA.

[Story from Wheels24]

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“August 2011 aggregate industry domestic sales had improved by 5 144 units or 11.1% to reach 51 436 vehicles from 46 292 vehicles sold during August last year. Total year to date domestic sales in calendar 2011 remained 14.5% ahead of the corresponding eight months in 2010,” Naamsa said on Friday.

Out of the total 51 436 industry reported sales in August, 40 534 units or 78.8% represented dealer sales, 15.2% represented sales to the car rental industry, 3% sales to government and a further 3% represented industry corporate fleet sales.

August 2011 export sales, at 24 835 vehicles, registered an improvement of 5 230 units or 26.7% compared with the strike-affected total of 19 605 in August last year.

Decline in momentum

According to the association, total new car sales in August, at 36 197, units reflected an improvement of 2 672 new cars or an increase of 8% compared with the 33 525 new cars sold in August 2010.

“The latest sales figures reflected a further decline in the growth momentum in the new car sales cycle and the year-on-year increase represented the lowest monthly improvement in the past nineteen months.”

For August 2011, the sale of industry new light commercial vehicles, bakkies and minibuses exceeded expectations. The 12 933 units reflected an increase of 2 140 units, or a gain of 19.8%, compared with the 10 793 units sold in August 2010. In the first eight months of 2011, new light commercial vehicles sales were ahead by 7.5%.

Sales of vehicles in the medium and heavy truck segments of the industry, at 730 and 1 576 units respectively, recorded an increase of 144 units or 24.6% in the case of medium commercial vehicles, and a gain of 13.5% for heavy trucks and buses compared with August 2010.

Sales of extra heavy commercial vehicles showed exceptional performance, rising by 40.7% from 764 units in August last year to 1 075 units in August this year.

Total year to date sales of medium, heavy commercials and buses remained 23.8% ahead of the corresponding eight months of 2010.

Growth rates to slow

There was an increase in exports of South African produced motor vehicles at 24 835, reflecting an 26.7% increase, compared with August 2010’s low base of 19 605 units exported when industry production for exports was negatively affected by industrial action at the time.

“The domestic macro environment going forward was likely to become less supportive. Modest growth in private sector credit extension and in money supply, sharply higher administered price increases, including electricity and fuel costs, would pressurise consumer disposable income and demand for durable goods,” said Naamsa.

For the rest of the year new vehicle sales are expected to continue to show growth but at a lower rate.

Source: BuaNews

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“In the short to medium term, a number of unfavourable developments will impact on demand for and sales of new motor vehicles,” Naamsa said in its quarterly review of business conditions submitted to the department of trade and industry.

“Sharp increases in manufacturing input costs, including electricity and labour, without proportional increases in productivity continue to pressurise component and vehicle manufacturing.”

Naamsa said the industry would be affected by the uncertainty of the global economy and the turbulent financial markets, and this could have an impact on future export sales.

“Domestic sales will probably continue to show growth but at a more subdued rate,” Naamsa said.

In the second quarter of 2011, there were signs of a slowdown in growth in the new car, light and medium commercial vehicle segments. However, Naamsa said the entry level segment of new car sales remained strong.The heavy and extra-heavy truck segments also showed robust growth.

During the quarter under review, the high number of public holidays in April and isolated component shortages as a result of the earthquake in Japan resulted in some production delays.

Aggregate employment in the industry declined by a marginal 0.3% from the first to the second quarter, to 28 085 jobs.

Naamsa said purchasing managers’ indices in most major economies had been falling sharply, indicating a loss of economic momentum over the medium term.

“South Africa, with its relatively open economy, will be affected by any slowdown in world economies and consumer spending in South Africa is also likely to decrease in future,” Naamsa said.

[SAPA]

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US safety regulators have opened an investigation into an estimated 120 000 BMW 7-Series sedans for a potential issue with the car not shifting into park and then rolling away.

The National Highway Traffic Safety Administration said it has opened a preliminary probe of the BMW cars from model years 2002 through 2008 after receiving a complaint that a 2006 model rolled away after the consumer parked and exited the vehicle.

Reports involving similarly equipped cars also describing roll-away incidents were submitted by BMW, according to the NHTSA website.

A BMW spokesperson said they are co-operating with the NHTSA and are not aware of any reports of accidents or injuries related to the issue.

A preliminary investigation is the first step in a process that could lead to a recall if regulators determine that a safety issue needs to be addressed by a manufacturer.

According to the complaint filed with NHTSA, the car was equipped with BMW’s electronic access and ignition system, and an electronic transmission shifter with a gear selector mounted on the steering column.

The shifter is designed to automatically shift the vehicle to park under a variety of conditions, including when the driver turns off the engine, according to the NHTSA website.

The NHTSA said no cause has been identified for any of the incidents.

- Reuters

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Question:

I don’t seem to find any material on the law in South Africa around motorised bicycles.

What I want to do is put a motor on a bicycle and ride it around. I want to find out what the max speed is that the bike may go and the engine size and the min age and if I need a license and what are all the requirements that the bike needs as it is just like a bicycle but only powered.

Could you please direct me to find out more about this.

Answer:

The moment it is motorised it is considered a motor vehicle and the normal rules for motor vehicles apply.

See the def of motor vehicle in section 1 of the Act and the exemption clause in reg 5

“motor vehicle” means any self-propelled vehicle and includes—

(a) a trailer; and
(b) a vehicle having pedals and an engine or an electric motor as an integral part thereof or attached thereto and which is designed or adapted to be propelled by means of such pedals, engine or motor, or both such pedals and engine or motor, but does not include—
(i) any vehicle propelled by electrical power derived from storage batteries and which is controlled by a pedestrian; or
(ii) any vehicle with a mass not exceeding 230 kilograms and specially designed and constructed, and not merely adapted, for the use of any person suffering from some physical defect or disability and used solely by such person;

Motor vehicle exempt from registration

Reg 5. (1) A motor vehicle—

(a) propelled by electrical power derived from electrical cabling affixed to the vehicle and that is not used on a public road;
(b) which has crawler tracks;
(c) which is not—
(i) self-propelled;
(ii) a caravan;
(iii) designed principally for the conveyance of persons or goods, or both; and
(iv) operated on a public road;
(d) which by reason of its dimensions or the mass thereof or the mass of a part thereof may not be operated on a public road in terms of the Act, and which is not so operated;
(e) referred to in paragraph (c) and which is drawn by a tractor whether or not it is operated on a public road;
(f) of which the Department of Defence is the title holder and owner;
(g) which is designed exclusively for racing, and includes a micro midget car or cart and a go-cart, and by virtue of its design, does not comply with the provisions of Parts II, III, and IV of Chapter VI and by reason of such design may not be operated on a public road in terms of the Act;
(h) which is a self-propelled lawnmower and by virtue of its design, does not comply with the provisions of Parts II, III, and IV of Chapter VI and by reason of such design may not be operated on a public road in terms of the Act;
(i) which is designed exclusively to be used on a golf course and by virtue of its design, does not comply with the provisions of Parts II, III, and IV of Chapter VI and by reason of such design may not be operated on a public road in terms of the Act and for the purpose of this paragraph operate on a public road shall not include the operation of such vehicle within the confines of a golf course;
(j) which is a type of motor cycle on which a person stands, generally known as a motorised skateboard, and by virtue of its design, does not comply with the provisions of Parts II, III, and IV of Chapter VI and by reason of such design may not be operated on a public road in terms of the Act; or
(k) which is a type of motor vehicle designed for the purpose of being operated specifically by a person younger than 16 years of age and by virtue of its design, does not comply with the provisions of Parts II, III, and IV of Chapter VI and by reason of such design may not be operated on a public road in terms of the Act;
(l) which the steering wheel is on the left hand side, excluding motor vehicles referred to in regulation 200 (2) (b), (d) and (e),
shall be exempt from registration and shall not be registered in accordance with the provisions of this Part: Provided that if the ownership of a motor vehicle is to be transferred from the Department of Defence to another person, such Department shall register such motor vehicle prior to such transfer.
(2) For the purposes of subregulation (1) (c), the words “operated on a public road” shall not be so construed to include the presence of such motor vehicle on a public road for the purpose of—
(a) being driven to the premises of the owner in order to take delivery thereof;
(b) crossing a public road from the one premises of the owner to another over a distance of not more than one kilometre; or
(c) proceeding to or from a place where repairs are to be or have been effected to such motor vehicle.
(3) If a motor vehicle exempt in terms of subregulation (1) (c) is operated on a public road contrary to the provisions of subregulation (2), the title holder of such motor vehicle shall be liable for the registration thereof on the date referred to in regulation 7 (1) (a) (vii)

Regards

Alta Swanepoel & Associates

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When sales from Associated Motor Holdings and Amalgamated Automobile Distributors – which report separately – are stripped out, sales went up by 11.1 percent to 39,472 vehicles compared with July last year, NAAMSA said in a statement.

“Whilst sales in all segments had registered an improvement on the corresponding month last year, there were clear signs of slower underlying momentum in demand for new cars,” it added. – Reuters

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Know the Facts: Easy insurance guides from MiWay

Writing off a car, or having one stolen, is a stressful event. Things can get even more stressful, though, when it comes to claiming from insurance – many people get an unpleasant surprise when their payout is less than they expected. So how do you avoid this disappointment? Here are the top things you need to know:

1.     The difference between retail value, trade value and market value

The retail value of your car is the average of what the same vehicle is currently selling for at car dealerships, and is the highest price you can insure it for. The trade value is what you would get if you traded it in. The market value or fair value is the average between retail and trade value. The value of your car further depends on the condition and mileage on the car.

2.     How car values are determined

Car values in South Africa are determined (and benchmarked against) a system called the TransUnion Auto Dealers Guide. Every month, TransUnion collects data from motor manufacturers and dealers across South Africa on the sale prices of over 40,000 vehicles. With over four decades of experience, they are the experts at valuing vehicles and their guides are the standard reference when it comes to setting prices.

3.     The danger of shortfall

If you are still paying for your car and it is stolen or written off, you may find yourself in the nasty position where what you owe the bank is more than what you are insured for. This is called a shortfall. To avoid this, it is usually a good idea to insure your car for its retail value, especially if it is financed with a residual or balloon payment. You might also want to consider taking additional credit shortfall insurance. Check with your insurance provider about this.

4.     Lower premiums mean lower payouts

Insurance companies work out their premiums based on what they expect to pay out if they need to replace or fix your car. If your car is insured for its retail value, they will pay out more than if it is insured for trade or market value – so the premiums will be higher. In the same way, insuring for a lower value means you pay a lower premium.

5.     Consider your lifestyle and needs when you choose insurance

Anytime you choose an insurance product, you have to make a decision about which is more important to you: Paying a lower premium now, or getting a larger payout if you need to claim. If you are a disciplined saver, you might choose a lower premium, but put aside some extra money every month to make up the difference if you ever need to claim. If you don’t have any savings and don’t trust yourself to put extra money away every month, it might make sense to pay a higher premium in return for the peace of mind of knowing you are insured for a higher amount.

[Info byRené Otto]

About MiWay

MiWay offers a range of financial products and services direct to the consumer. MiWay’s offering includes short-term motor and household insurance, motor warranties and credit life. The company’s long-term plan is to extend this to offerings such as investments, personal loans and possibly credit cards.  MiWay will ultimately offer a complete array of services under one convenient umbrella, directly contracted with the client and all managed online.

For more information about MiWay, their offerings or to get an expert opinion on insurance related topics, please contact Carine Conradie-Haffejee directly. MiWay experts are available for interview on topics ranging from claims handling to insurance rates and premiums or general insurance insights.

René Otto, the CEO of MiWay, is a seasoned business personality and expert on all topics related to direct or broker-based insurance.

www.miway.co.za

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In May, aggregate industry domestic sales rose 6.1% to 41 555 from 39 166 on an annualised basis.

For the first half of 2011, total domestic sales remained 15.7% ahead of the corresponding six months in 2010. This was down from the 16.4% year-on-year growth for the first five months of the year, the association said. Export vehicle sales were up 23.7% to 25 295.

Naamsa said that out of total June industry sales of 44 880 vehicles, 85.7% represented dealer sales, 7.8% sales to the car rental industry, 3.6% industry corporate fleet sales and 2.9% sales to government.

[Source: I-Net Bridge]

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Over 150 people have died on the country’s road since the beginning of the Easter holiday. In the latest horror accident eight people were killed in a collision involving two vehicles on the N9 outside Rouxville in the Free State.

The Department of Transport’s Logan Maistry says law enforcement officials deployed across the country have fined thousands of motorists for various traffic violations with more than 250 arrests for offences including drinking and driving, reckless and negligent driving.

Maistry says traffic volumes are expected to peak on particularly the N1 south from Polokwane to Pretoria, the N4 West from Nelspruit to Pretoria as well as the N3e from Durban to Johannesburg.

Roads are also expected to be busy on Wednesday – Freedom Day – as well as during the coming long weekend on Workers Day and the Public Holiday on Monday.

Meanwhile, hiking spots along the N1 in Limpopo are starting to experience high volumes of hitchhikers seeking transport to various destinations. Traffic between Musina and Polokwane is also picking up.

Toll plazas along one of the country’s busiest routes are also experiencing high volumes traffic heading south. Some hitch-hikers say they prefer hitch hiking instead of taxis at the ranks. They say hitch hiking is faster public transport. Taxis and busses are some of the most vehicles seen on the road heading south.

[Info from SABCnews.com]

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