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THE RMI ✦ Technology: driving change in the retail motor industry

THE RMI ✦ Technology: driving change in the retail motor industry . PRESENTED BY JAKKIE OLIVIER. CAR CONFERENCE  23 OCTOBER 2013. THE PACE OF INNOVATION ACCELERATION. The pace of the development of vehicle technology and innovation is accelerating For better or for worse?

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THE RMI ✦ Technology: driving change in the retail motor industry

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  1. THE RMI ✦Technology: driving change in the retail motor industry PRESENTED BY JAKKIE OLIVIER CAR CONFERENCE  23 OCTOBER 2013

  2. THE PACE OF INNOVATION ACCELERATION • The pace of the development of vehicle technology and innovation is accelerating • For better or for worse? • Technological revolution • Impact on automotive aftermarket (RMI members) • Diverse industry – all impacted either positively or negatively

  3. THE RETAIL MOTOR INDUSTRY IN PERSPECTIVE • Size of retail industry: • 18 000 + businesses • 280 000 + employees • Micro businesses vs. listed companies • 14 Associations – diversity and complexity • Highly regulated environment • Car parc: • ± 14 years (10 951 876 cars as at 30/09/2013) • 70 brands • 2 672 models and derivatives • 2 169 249 (19.8%) within warranty period (1-5 years)

  4. MAJOR AUTOMOTIVE DEVELOPMENTSOVER PAST 128 YEARS • 1885 – 1950 First car developed First electric starter First car radio Electronic indicator lights developed Car air conditioning introduced • 1950 – 1999 Seat belts first introduced Cruise control used for the first time 8-track tape players introduced Cassette tape players introduced Airbags used for the first time Antilock braking system introduced First CD player installed in a car • 2000 + Hybrid vehicles Next-generation electric cars Autonomous cars

  5. EVOLUTION OF THE CAR – AN ONGOING PHENOMENON • Designed for better: Safety Efficiencies Convenience Luxury features Environmental benefits Usage of natural resources • Driven by consumer demand and preferences • Business has no choice and must respond • This presents major challenges to the repair sector

  6. MODERN CHANGES IN AUTOMOTIVE TECHNOLOGY • PowertrainRe-emergence of the electric vehicleLarge-scale displacement of traditional engine production by alternative technologies • Body engineering diversityNeed to make vehicles lighter for improved fuel economy • ElectronicsPresently electronics accounts for 25% of vehicle value, in future it will account for 40% • Connected technology(software and controls)Vehicle-to-Vehicle (V2V) connections and Vehicle-to-Infrastructure (V2I) connections

  7. ADVANCEMENT OF TECHNOLOGY TIMELINE ONE-STOP SHOP SPECIALISATION TECHNOLOGY ADVANCEMENT

  8. CHALLENGES FOR BUSINESS • Access to repair information • Cost of specialised tools and equipment (ROI challenges) • Financial viability shrinking margins increasing costs • Training facilities adequate education system – yes or no? • Consumer preference and/or choices • Gap between new vehicle technology and repair technology

  9. SKILLS CHALLENGES IN SOUTH AFRICA • Vehicle and Motor Body repair • More advanced systems developed because of pollution and emission controls • Equipment changed and became more advanced • New breed of technicians with knowledge of computers and technology, but no old-school understanding of how it all comes together • CDX Technica – new curricula

  10. LABOUR CHALLENGES IN SOUTH AFRICA • Trade union movement • “Strike season” syndrome • Informal sector • Disconnect between labour and business objectives

  11. GAP: NEW VEHICLE TECHNOLOGY vs. REPAIR TECHNOLOGY • Right to Repair initiative Repair shops Franchised dealers (OEMs) • Opposing views Brand protection Warranty Competitiveness/Market share Fighting for survival • Solution: to find synergy between new vehicle technology and repair technology

  12. THANK YOU FOR YOU TIME

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