TOYOTA TAKES OVERALL GOLD MOTY AWARD AS VOLKSWAGEN CONTINUES RENTAL DOMINANCE

 

JOHANNESBURG, OCTOBER 23, 2017 – The Southern African Vehicle Rental and Leasing Association (SAVRALA) – whose car rental members manage over 70,000 vehicles and leasing members account for over 55,000 Owned/Funded and 245,000 managed vehicles per annum in South Africa – held their annual industry Manufacturer Of The Year (MOTY) awards at a gala dinner in Sandton on Friday, 20 October 2017.

Despite Volkswagen claiming the MOTY Car Rental title for the seventh consecutive year, just ahead of second-placed Toyota, a resurgent Toyota dominated the Leasing section, which helped them beat off their long-standing competitor to take the much-coveted Overall Gold MOTY Award. Hyundai were placed third.

Congratulating Toyota, the SAVRALA President, Winston Guriah commented that “the MOTY awards again recognise those manufacturers who continue to understand the evolving needs of both car rental and leasing fleet owners”.

In its twenty-second year, MOTY recognises those motor manufacturers who they feel have provided them with the best possible support and assistance during that period. These awards are based on the results of a continually revised and improved industry-specific survey incorporating 38 criteria reviewed twice annually among 24 of the largest Rental and Leasing companies in South Africa.
Questionnaires are completed not by one individual in each company, but by a panel of individuals who depend on and deal directly with each manufacturer. This results in obtaining an accurate, objective, unbiased and company-wide perspective of the service levels experienced.
The results from this competition enable each manufacturer to identify their strengths and work on areas of weakness as highlighted to them by their customers.
Areas of evaluation scored by the Rental members include:
• Communication: Covering the timeous and accurate information on new models, pricing and vehicle delivery, as well as regular manufacturer contact – declined by 3%.
• Support: Assessing the quality of operational support and ability to accommodate industry specific requirements as well as timeous delivery of vehicles – improved by nearly 2%.
• Maintenance: Rating the technical training, contact with the technical representatives, response to technical issues and warranty claims, dealer support, parts availability and flexibility on Goodwill and Policies – declined 1.7%.
• Value: Covering the protection of residual value and pricing structures, under the current economic challenges – improved slightly above last year’s results.
• B-BBEE compliance: Continued to decline as the new B-BBEE Codes take effect.
The Overall Rental industry score this year dropped 1.4% to 57 from last year.
Areas of evaluation scored by the Leasing members, include:
• Communication / Marketing: Including regular visits, information on production issues, pre-launch and ongoing information.
• Technical Support: Measuring the technical relationship as well as provision of technical information and parts availability.
• Financial: Looking at fleet pricing structures and discounts and residual value.
• Dealer Support: Including delivery issues and aftersales service.
• B-BBEE compliance.
While the overall Leasing score this year dropped significantly to 37.5 from 45.2 in 2014 and is well below the rental score, Guriah suggested that “there is no doubt that the manufacturers will now place more focus on the Leasing members to reduce the current gap between the two sections scores”.

Rental Results for 2017:
Winning for the seventh consecutive year, Volkswagen took the Car Rental MOTY award. Toyota moved up from their third position last year into second this year, pushing Hyundai back from their second position last year into third this year.
Volkswagen also receives the Value award, following their top score in this category on the Rental questionnaire.
Renault receives the award for the Most Improved manufacturer on the Rental side as they managed to improve their Rental score the most since last year.
Awarded to the automotive member who supplies lower and niche vehicle volumes to SAVRALA car rental members, the Tutuka award which means ‘progress’ in Zulu, went to Nissan.
Rental 2013 2014 2015 2016 2016 – final position 2017 Improvement
1st Volkswagen 72.7 70.8 68.5 67.3 1 67.3 0.1
2nd Toyota 65.5 65.9 65.8 64.0 3 65.1 1.2
3rd Hyundai 59.7 63.3 65.1 64.2 2 59.6 -4.6

Leasing Results for 2017:
By quite some margin, Toyota took the honours, followed by Hyundai in second position and Volkswagen taking third.
Leasing 2012 2013 2014 2014 – final position 2017 Improvement
1st Toyota 66.8 75.2 69.9 2 65.2 -4.8
2nd Hyundai 69.7 73.7 63.8 4 58.4 -5.4
3rd Volkswagen 76.3 77.9 70.7 1 53.8 -16.9

Best Representative Awards for 2017:
Best Rental Account Executive for the second-year running was Loshini Pillay from Volkswagen, with Robert Wright, also from Volkswagen, voted the best Rental Technical Representative for 2017.
Best Leasing Account Executive was awarded to Faan Fourie from Toyota, while Ramatjitla Penyane, also from Toyota, was voted the best Technical Representative to the Leasing Industry.
On social media, join the conversation using the hashtag #SAMOTY17.
Photos of the award winners are available here:
https://from.sketchup.co.za/index.php/s/Dl5szWtMDoJpTG5

2017 Motor Manufacturers Of The Year (MOTY) to be announced

Which motor manufacturer will win the coveted title of Manufacturer Of The Year in 2017?

The first round of judging has concluded in the annual MOTY awards process, run by SAVRALA, the Southern African Vehicle Rental and Leasing Association whose car rental members manage over 70,000 vehicles and leasing members account for over 54,800 – Owned/Funded and 244,148 – managed vehicles per annum in South Africa.

In contrast to many other car surveys, this award is based on the largest rental and leasing companies in South Africa scoring their automotive suppliers twice annually on 38 objective criteria which include B-BBEE levels, value for money (eg: vehicle resale, maintenance and cost of parts), vehicle security, communication and support.

The results of the competition are used by motor manufacturers to identify their strengths and improve their areas of weakness as highlighted to them by their customers.

“The vote of confidence given by SAVRALA members to their vehicle suppliers should be an important consideration for the car buying public who also want to buy a vehicle that offers good value for money, reliability and safety,” says Winston Guriah, the President of SAVRALA.

The first round, as voted for by both the rental and leasing sectors, has highlighted the top five manufacturers being Ford, Hyundai, Nissan, Toyota and Volkswagen. In this group, first and second place is separated by less than three points which can easily change the overall scores winners when round two is completed.

“Volkswagen has taken top honours for the past seven years in the rental section, but there has been fierce competition between motor manufacturers where the winning margins have been very small as we are seeing this year. In 2016, Hyundai and Toyota came second and third respectively,” says Winston.

MOTY also identifies the top account representatives and technical representatives from motor manufacturers, evaluating their ability to establish and maintain a successful relationship, and to be proactive and professional in their approach.

Past winners of the MOTY Best Account Representative award include Loshini Pillay from Volkswagen in 2016 and David Maeko from Ford in 2015, while Robert Wright from Volkswagen and Bennita Senyatsi from Nissan won the Best Technical Representative awards in 2016 and 2015 respectively.

“The emphasis on the MOTY results is likely to both increase the service expectation from the rental and leasing companies, while forcing them to look more critically at current service levels provided by manufactures,” says Sandile Ntseoane, the GM of SAVRALA.

“MOTY influences the vehicle purchase decision-making of both the public and large fleet operators who will be comforted by the experiences of the SAVRALA members.”

The results of the 22nd annual SAVRALA MOTY awards will be announced at a gala ceremony in Johannesburg on 20 October.

On social media, join the conversation using the hashtag #SAMOTY17.

Roadblocks and Your Rights

“Roadblocks and Your Rights” featured on the Carte Blanche website on 20 August 2017 provides useful insight into:

  • The two kinds of roadblock
  • What cops are legally allowed to do
  • What happens if you have outstanding fines
  • Under what conditions arrests are allowed
  • What to do if you feel unsafe
  • Can you film the police?
  • Can you ask for identification?

Read the full article here:
https://carteblanche.dstv.com/roadblocks-and-your-rights/

New Accounting Standards – substantial impact for Car Rental and Leasing Companies

IFRS 16 Leases, the new international accounting standard, will come into effect from 1 January 2019.  This will have a substantial impact on car rental and leasing companies.

During a presentation to SAVRALA members by accounting firm Deloitte Touche, Trevor Derwin, A & A Partner in the Johannesburg office explained that the essence of the changes lies in the accounting treatment applied by lessees. At present, the costs pertaining to leased vehicles are not reflected on the balance sheet; in the future all leases will have to be reflected on the balance sheet, with the exception of short term leases (less than 12 months) or low value leases.

“There are a number of considerations to take into account for companies who have lease agreements” said Derwin.  “These include the impact on the company’s financial report, key ratios, disclosures, the cost of implementation, the ability to access desired information, the impact of covenants and debt renegotiations and leasing strategies. It is essential that these companies start discussions with their bankers, analysts and lessor companies to ensure they are ready to implement the new standards.

“However, there will be no difference to the bottom line for leasing and rental companies,” he added.  “Despite the changes, there remains considerable advantages to leasing as opposed to buying vehicles.”

The main changes required by the new standards include the accounting treatment for lessees in a lease (where most leases will be brought on balance sheet as finance leases), the definition of a lease and enhanced disclosures.

Under the new standards, a contract contains a lease if it depends on the use of an identified asset and if it conveys the right to control the use of such an asset.   Further, the customer must enjoy substantially all of the economic benefits from the use of the asset during the lease term. In determining whether a customer has the right to control an asset, the customer must be able to determine how and for what purpose the asset is used.

A further consideration lies in substantive substitution rights.  In this instance, if the supplier has the practical ability to substitute alternative assets, and the supplier benefits economically from this right, the contract would no longer be considered a lease.

Many lease contracts today include both a lease and service component. Under the new standard these should be accounted for as separate components with the lease element capitalized to the on balance sheet lease, while the service component is expensed as incurred. Lessees may, however, elect to not separate non-lease components from lease components by class of asset.

“Identifying a lease will sometimes require a significant amount of judgment based on the elements of the definition of a lease” said Derwin.  “It is also important to determine the lease term, ie whether it is reasonably certain that an extension or termination option will be exercised.  In addition, identifying the appropriate rate to discount the lease payments will require significant consultation.”

“Although the new standards come into effect in January 2019, they will apply equally to existing as well to new lease arrangements,” he concluded.   “For those SAVRALA members who play the role of lessor, there is a business opportunity in that they can assist their customers to find the best solution.   We urge all your members, lessors and lessees alike, to discuss these changes with their auditors to ensure they are informed and ready to implement they changes as they come through”.

Download the PDF of the July 2017 presentation by Trevor Derwin:
IFRS 16 Leases – Technical Update

Volkswagen South Africa wins 2015 Motor Manufacturer Award

p2910SavralaVW-001JOHANNESBURG, OCTOBER 23, 2015 – Volkswagen South Africa (VWSA) wins the SAVRALA MOTY (Manufacturer Of The Year) award for the sixth consecutive year.

Celebrating its 20th year, the SAVRALA 2015 Manufacturer of the Year was revealed during a gala award ceremony at the Hilton Hotel in Sandton tonight, 23 October. Incredibly, for six consecutive years, Volkswagen South Africa (VW) took the accolade of overall car rental winner yet again.

Commenting on this achievement, SAVRALA President Marc Corcoran applauded VWSA’s remarkable achievement and said that one had no choice but to respect the consistent and recognised high levels of service given by VWSA to the car rental industry. “An important insight from this year’s data is the improved scores by almost all automotive brands, demonstrating the competitive nature of the industry,” he added.

RIC_5809-VW-2-001The MOTY 2015 results further reveal that VWSA has gained a distinct advantage over its peers in the key survey category of Communication and Support.

The competitive nature of this year’s MOTY awards was best demonstrated by the 0.1 difference in score between Audi SA and Toyota South Africa Motors which swopped podium places, with Audi taking home silver this year.

Illustrating the extent of how some automotive companies have focused special attention on their car rental customers, the Most Improved Award went to BMW SA which leaped from 11th place last year to 7th this year achieving a phenomenal 17% increase in their 2015 score.

Addressing concerns by some automotive brands that they are at a disadvantage when competing against their larger-volume peers in the car rental industry, a new award called Tutuka was created and won by Audi SA. “The performance of Audi this year clearly demonstrates that winning MOTY is not merely a function of the volumes sold to the car rental industry, but also of satisfying customer needs,” said SAVRALA GM Sandile Ntseoane.

The Value Award in its first year was a tight contest, but was won by Ford SA which, by the narrowest of margins, beat VWSA. Commenting further Marc said this ‘’was an important award as the cost of vehicle ownership is a key consideration for any fleet purchase, whether a corporate fleet or individual purchaser.’’

MOTY 2015 also acknowledged the role of certain individuals the car rental industry:

  • Best Account Executive was won by David Maeko (Ford SA)
  • Best Manufacturer’s Technical Representative was won by Bennita Senyatsi (Nissan SA)

The MOTY evening also saw industry stakeholders recognise the remarkable service given by Dawn Jones, Imperial Car Rental CEO, who leaves the industry next month after 35 years.

“Dawn leaves behind an incredible legacy that few could even imagine achieving. Ever the shrewd car rental operator, Dawn had a remarkable, innate skill in developing warm relationships with her colleagues, customers and competitors. The industry thanks her for contribution and wishes her well in her future endeavours,” concluded Marc.

AWARD SUMMARY MOTY OVERALL

Overall Bronze
Toyota South Africa Motors

Overall Silver
Audi South Africa

Overall Gold
Volkswagen South Africa

Best Account Executive
David Maeko (Ford SA)

Best Manufacturer’s Technical Representative
Bennita Senyatsi Nissan (SA)

Most Improved
BMW SA Group

Value Award (Certificate)
Ford (SA)

Tutuka Award
Audi South Africa

On social media, join the conversation using the hashtag #MOTY2015.

About SAVRALA

SAVRALA is the trade body for companies engaged in the rental of passenger cars and commercial vehicles. Founded in the 1970s, SAVRALA represents South Africa’s the car rental rental industry

We lobby government to ensure that regulation and legislation affecting its members is fair. SAVRALA also works with public sector agencies, industry associations and key business influencers on key road transport, taxation and finance-related issues.

For more information about SAVRALA, please visit www.savrala.co.za or contact Natalia Rosa at natalia@bigambitions.co.za or 083 449 4334.

SAVRALA Golf Day supports Driving Ambitions

Driving Ambitions receives R73,000

Ari Seirlis (QASA CEO – left) receives a cheque of R73,000 from SAVRALA GM, Sandile Ntseoane (right)

Driving Ambitions, a project of the QuadPara Association of South Africa (QASA), are proud to be the beneficiary of the SAVRALA Golf Day who donated R73,000. This project is a driver training program for people with disabilities who need adaptation in vehicles to get their driving license and thereafter, new found freedom and mobility. This contribution will fund driving lessons for 14 Quadriplegics and Paraplegics.

The SAVRALA General Manager, Sandile Ntseoane thanked its industry members for their generosity on the day and was very pleased that both the car rental industry and its vehicle suppliers were able to give back to such a well aligned and deserving beneficiary as Driving Ambitions. Ntseoane encouraged members to ‘continue supporting Driving Ambitions beyond the annual golf day’. He continued that ‘the successful Driving Ambition candidates in time will become both valuable vehicle manufacturer and car rental customers.’

Minister of Transport and SAVRALA to engage directly

Minister of Transport with SAVRALA

Minister of Transport, Dipuo Peters with SAVRALA

The Southern African Vehicle Rental and Leasing Association’s (SAVRALA) much coveted overall Manufacturer of The Year (MOTY) Awards were held this past Friday, 24 October, in a glamorous gala event in Sandton, Johannesburg. Once again, incredibly, Volkswagen walked away with the highest honours again. Volkswagen have now won this prestigious award consecutively since 2010.

SAVRALA President, Marc Corcoran acknowledged what was achieved and said “Volkswagen should be proud of the consistent accolades given from their major fleet customers in such difficult and competitive trading conditions.”

This year, SAVRALA and its guests were truly honoured to have had the Minister of Transport, Dipuo Peters attend the event and give the key note address. While the Minister addressed many aspects of the automotive industry, and some of the challenges the industry and the country faces in terms of the road infrastructure and funding, a key highlight was an invitation from the Minister to engage directly on the various issues affecting their members.

SAVRALA President Marc Corcoran, responded warmly and added that “the industry had recently resolved to try and engage more directly with several key strategic Government departments and had identified the Department of Transport as a priority. The timing of this invitation is perfect and we look forward to making a positive contribution” he said. “As a member of the Tourism Business Council South Africa (TBCSA), SAVRALA had previously engaged with Government via the National Department of Tourism, however, we concluded that a more direct engagement with the National Department of Transport was more desirable to progress transport specific matters. We look forward to discussing a broad range of issue from infrastructure funding, road safety, law enforcement and the role of SAVRALA within the broader transport sector.

Editorial contacts: ADZOO – Manfred Noriskin-Ender 0829010342