Heels & Horsepower Magazine

AA Says Fuel Price Crises Needs To Be Addressed

By H&H Admin

Government needs to find a definitive solution to the ever-increasing fuel costs; and they need to do so quickly.

The Automobile Association (AA), says Government must act quickly to find ways to mitigate against rising fuel costs which are negatively impacting on all consumers in the country.  One way to do this is through a review of the current fuel pricing model.

“Our economy is closely linked to the fuel price; it is a major input cost in the manufacturing, retailing and agricultural sectors. We have noted before that a review of the current structure of the fuel price, as well as an audit of all the elements which comprise the fuel price, should be done sooner rather than later. We therefore call on the Minister of Finance to initiate such a review during his Budget Speech on 23 February,” says the AA.

In addition, the Association again urges the Minister not to increase the fuel levies which are part of the fuel price.

“We know all too well of the economic challenges facing the country, and of the importance of the revenue raised through the two main levies. We are also aware that, as was the case last year, delivering a Budget in the current economic environment is tricky and difficult and that the pressure to ease government’s financial burden is immense. However, increasing the levels of the General Fuel and Road Accident levies will be counter-productive as this will impact mostly on the poorest of the poor,” says the Association.

The General Fuel Levy is currently pegged at R3.93 per litre (up from R3.77 in 2021) and the RAF levy at R2.18 per litres (up from R2.07 in 2021). Combined they add R6.11 to every litre of petrol and diesel sold in the country. Any adjustments announced by the Minister in the February Budget Speech are implemented annually in April.

Neighbouring countries who buy fuel directly from South Africa do not add these taxes to their fuel pricing, making their fuels cheaper than it is in the country which supplies them.

2021 saw fuel prices reach record levels and they are again touching those levels despite a decrease to fuel prices in January. The Association says any adjustments to the collection rates of these levies will have severe consequences for consumers and they should not be altered.

“Our country faces enormous and complex economic challenges. High fuel prices are adding to these challenges and instead of accepting the current model, we must seek solutions that benefit consumers, not place them in more financial distress. One immediate solution for us, for instance, is to review the funding of the poorly managed Road Accident Fund (RAF). Our reliance on the RAF is a direct result of South Africa’s poor road safety and that’s where more attention needs to be given for a long-term solution,” urges the AA.

Source: The Automobile Association of South Africa

A Million Reasons To Choose Chery

by H&h Admin

Chery South Africa is giving South African motorists a million reasons to choose its modern and stylish SUVs.

Chery South Africa is giving South African motorists a million reasons to choose its modern and stylish SUVs.

The company recently launched its Tiggo 4 Pro with an astonishing 10-year or 1-million-kilometre engine warranty. This beats the best industry warranties by 40%.

The warranty has two elements. A standard 5-year / 150 000 km factory warranty applies to all new Tiggo 4 Pro models sold. This warranty remains with the vehicle.  The second, a free extension for another 5 years and a massive 850 000 km focussed on the engine, is added automatically at the end of the first warranty, provided that the vehicle is still owned by the original owner. 

As is the standard practice throughout the industry, the warranty requires the service and repair of the vehicle by Chery Dealerships, within Chery standards and using original Chery parts and components.

Added to this industry leading warranty, Chery recently announced its agreement with the Automobile Association of South Africa to provide roadside assistance and support for five years unlimited kilometres. This means that Chery owners can expect roadside support – with services ranging from help with flat tyres or batteries to safe overnight vehicle storage in case of an accident.

In the past decade, Chery has completely reinvented itself as a global design, engineering and manufacturing powerhouse.

“Modern Chery vehicles represent the best in terms of technology and performance while meeting CNCAP five-star safety standards,” says Tony Liu, Executive Deputy General Manager of Chery South Africa.

At the same time, explains Liu, Chery has partnered with industry leaders like Aisin, Getrag, Bosch and Schaeffler to perfect its internal combustion, hybrid and all-electric powertrains. All this forms part of Chery’s 457 plan, which will see Chery focus on four new energy product platforms, five universal subsystems and seven core technologies, including all types of propulsion.

“We have invested heavily in our own capabilities and now employ over 5 500 people in our Research and Development department that now develops everything from traditional petrol engines to all-electric powertrains, hydrogen systems and even aeronautical engines.

“It is with this in mind that we are supremely confident in offering this decade-long, 1-million-kilometre engine warranty,” says Liu.

Chery has partnered with 30 dealers across South Africa and will soon expand its partnership to more dealers with the aim of offering complete coverage of all the major towns and cities.  This will ensure that Chery owners have easy access to Chery technical specialists for services and warranty support.

“We hope the 1-million-kilometre engine warranty will set the benchmark and that our service and parts support through our dealer network will seal the deal. There is now no reason at all not to test drive a Chery Tiggo 4 Pro,” says Liu.

Fuel hits record highs in SA – breaches R18/l

The price of all fuel will, from midnight tonight (3 August), hit record highs across the country, outstripping by some margin the priciest fuel has ever been in South Africa. According to the Automobile Association (AA) fuel first hit record highs in April when 95 ULP in Gauteng was priced at R17.32 a litre, and R16.61 at the coast. Record highs were again recorded in July with the price pegged at R17.39 inland, and R16.67 at the cost.

The last time fuel was priced above R17/l was in October/November 2018 when the price reached R17.08 for 95 ULP in Gauteng. In the same months a litre of fuel was priced at R16,49 at the coast, the priciest it had ever been before.

 

However, these figures pale against the R18.30/l (Gauteng) and R17.58/l (coast) which come into effect for August. Petrol 95 ULP is now 23.15% more expensive than it was in January in Gauteng, and 24.15% more expensive at the coast. Diesel is between 20.31% and 21.13% more expensive in Gauteng and the coast compared to January numbers. The biggest shock is the steep increases to illuminating paraffin prices; a litre of paraffin in Gauteng is now 30.31% more expensive than it was in January and 33.84% more expensive at the coast than in the beginning of the year.

The AA says given the fluidity of the two key factors which influence the local fuel price – the Rand/US Dollar exchange rate and international petroleum product prices – it’s impossible to forecast the trajectory of future fuel price movements in the coming months.

June fuel forecast: Good news on Petrol but not such good news on Diesel

The Automobile Association (AA) is forecasting that petrol users are set for some month-end relief at the pumps.

The Association is predicting that petrol will be 11 cents a litre cheaper in June. Diesel, meanwhile, is set to increase by about 22 cents a litre and illuminating paraffin by 21 cents.

“The Rand continued to strengthen against the US dollar throughout May, while international oil prices remained mostly flat. But the sharp spike in oil at the start of the month is still spilling over into the data, with the prices of refined diesel having seen a bigger impact than petrol,” notes the AA.

The AA says this will be disappointing news for transport companies who rely on diesel to power their fleets.

“It will also not be welcomed by citizens who use illuminating paraffin for cooking, lighting, and especially heating during the winter months,” says the AA.

Drunk driving amendment misses the mark – AA

The AA is proposing that the 0.05% limit be reduced to 0.02% which is in place in many countries.

Changing traffic laws relating to drink driving is meaningless and will be ineffective if current laws that regulate alcohol and driving are not properly implemented and enforced first. This is the view of the Automobile Association (AA) following the announcement tonight by Transport Minister Fikile Mbalula on the proposed changes to the legal Blood Alcohol Concentration (BAC) limit for drivers to be reduced to zero percent.

The Association says drinking and driving can be more effectively combated by reducing the allowable alcohol limits for drivers, and that the courts should impose tougher sentences on offenders. The current enforcement of drunk drivers will not stop those who regularly exceed the limits because there are simply no consequences for their actions. The AA says a zero BAC limit is not going to change this behaviour.

Reducing the blood alcohol limit to zero will not solve the problem of road deaths in South Africa if it is not supported by a thorough, scientific diagnosis of the problem of drink driving…

– Automobile association

Although South Africa’s current Blood Alcohol Concentration (BAC) limit of 0.05% is not out of line with world standards, the crisis on South Africa’s roads demands a tougher approach. The AA is proposing that the 0.05% limit be reduced to 0.02% which is in place in many countries.

The AA notes that the proposed move to reduce the legal limit to zero does not take into consideration the fact that some medications such as cough syrups may contain alcohol. In these cases drivers may find themselves with criminal records for taking one dose of this medication when it will have no material effect on their driving ability.

“Reducing the blood alcohol limit to zero will not solve the problem of road deaths in South Africa if it is not supported by a thorough, scientific diagnosis of the problem of drink driving with proper statistics which back such a move. Behavioural change is needed to solve this problem and that requires proper enforcement of existing laws, and more intensive education of the dangers of drunk driving, both of which do not currently occur,” says the AA.

It is our view that people who drink and drive will not alter their behaviour because there are no consequences…

– AUTOMOBILE ASSOCIATION

The AA says current analyses of drunk driving in South Africa are fragmented and disparate, with no conclusive findings besides those which call for greater research on the matter, a move the AA supports.

“But we cannot have a situation where the government is guessing to what extent alcohol is a contributor of road deaths with no actual plan to deal with the road safety crisis in South Africa as a whole other than to amend the law. This approach amounts to dealing with the issue of drunk driving without first addressing the issue of current enforcement and lack of education,” says the Association.

“It is our view that people who drink and drive will not alter their behaviour because there are no consequences so they’re willing to take that gamble of being caught. Ensuring proper law enforcement should be the first step before amending laws. If law enforcement doesn’t change how it operates now, how will changing the law make a difference?” asks the AA.

Pedestrian safety remains a huge concern but little is being to deal with this problem

– AUTOMOBILE ASSOCIATION

The AA says apart from these concerns, the overall safety of roads in South Africa should enjoy priority before amendments such as these are made.

“Pedestrian safety remains a huge concern but little is being to deal with this problem. Road safety requires a total approach which deals with vehicle safety, pedestrian safety, and more education on road safety,” the AA says.

The AA says it stands by its support of the wide-ranging proposals by the Traffic Law Enforcement Review Committee last year to improve traffic law enforcement in the country. It says implementing these recommendations and not focusing on one element of road safety such as drunk driving is needed to deal more effectively with the country’s annual road fatalities which it says amount to a national disaster every year.

“There are practical, workable plans on the table to improve traffic law enforcement which were compiled by experts and traffic officers themselves. Yet there are those who seem intent on focusing on one aspect of road safety – drunk driving – as a panacea for road fatalities. It is, in effect, putting a band aid on a gaping wound with the hope that it will stop the flow of blood. It won’t,” concludes the AA.

Vehicle warranties offer lifeline when you need it most

With people in South Africa relying so heavily on their vehicles this product is a lifeline to owners

– David Chard, Managing Director of AA warranties

In the current economic climate consumers are becoming more demanding about the products they buy, and are looking at getting the most value from anything which costs money. David Chard, Managing Director of AA Warranties says for this reason people must do their homework before making any significant purchases, particularly those which relate to their vehicles.

 “A product such as an extended warranty, offers peace-of-mind to an owner. With people in South Africa relying so heavily on their vehicles this product is a lifeline to owners. It means the vehicle can be operational far quicker than if the owner first has to raise the money to get any repairs done. A major benefit is that some extended warranties are available on a pay-as-you-go basis so buyers can get them on a monthly basis if needed,” explains David.

You should ask yourself if the vehicle you have, or one you are considering buying, is particularly expensive to repair, or if it is generally repaired at a low cost.

– DAVID CHARD, MANAGING DIRECTOR OF AA WARRANTIES

He says, however, that owners must think carefully about any warranty product they want before signing on the dotted line.

 “You should ask yourself if the vehicle you have, or one you are considering buying, is particularly expensive to repair, or if it is generally repaired at a low cost. Knowing this upfront should partly inform your decision on which product to get. And, with the AA-Kinsey Report (https://www.aa.co.za/tools-and-information/aa-kinsey-report) it’s easy to get the right information,” David says.

He says if the vehicle’s repairs are generally expensive, a warranty product with a high total claim limit – or high limits for key parts – could be an option. An owner with a vehicle which has a generally lower repair cost could consider a policy with lower limits, and thereby save on monthly premiums.

 “I also always urge people to investigate the typical mechanical failures on the specific make and model of their vehicle. They can do this by, for instance, consulting owner groups or visiting online forums of their specific vehicle. This will ensure more appropriate cover for the more common problems they’ll encounter. If, for instance, there is a specific vehicle which is known to have gearbox issues, make sure your warranty has generous cover for transmission-related claims,” David advises.

It’s tempting to think the cover won’t expire, but it will

– DAVID CHARD, MANAGING DIRECTOR OF AA WARRANTIES

Another key fact, says David, is to think about how long you’ll be keeping the vehicle, and for how long the factory or manufacturer’s warranty is still valid. He says it’s an important consideration too few people make when buying a vehicle.

 “It’s tempting to think the cover won’t expire, but it will. In the short-term you are covered, depending on the length of the manufacturer’s warranty left on the vehicle. But, if there’s only 12 or 18 months left on the warranty, and you want to keep the vehicle for five years or longer – which is the current trend in South Africa – then you have to ask yourself what happens when that cover runs out,” he says.

We often see people buying cars and then failing to get additional cover when the existing warranty expires

– DAVID CHARD, MANAGING DIRECTOR OF AA WARRANTIES

He says when buying a vehicle, consumers should consider buying additional cover to kick-in when the manufacturer’s cover stops (known as an extended warranty), or to buy a policy which engages when the manufacturer’s warranty expires (known as used vehicle warranty). Either way, he says, a warranty is an essential risk-reducing product which should not be overlooked when buying a vehicle.

 “We often see people buying cars and then failing to get additional cover when the existing warranty expires. When something happens to the vehicle and the costs estimates start to come in, they often way exceed what that owner has readily available to repair the vehicle. Those people are then left stranded, or reliant on others to get around, and it often causes great distress. Don’t get yourself caught in a tricky situation, get covered now,” concludes David.

Research conducted by the AA in 2019 indicated that more than 90 percent of South Africans are keeping their vehicles for longer due to the economy, with just over 40 percent saying they are keeping their vehicles for between five and ten years.

AA launches petition to extend validity period of licenses

The Automobile Association (AA) has launched an online petition to encourage the Minister of Transport, Fikile Mbalula, to extend the validity period of vehicle licence discs and driving licence cards.

According to the Road Traffic Management Corporation (RTMC), “All Learner’s Licences, driver’s licences, motor vehicle licence discs, temporary permits, roadworthy certificates and professional driving permits (PrDPs) that expired during the period that commenced from 26 March to 31 May, are deemed valid and their validity period is further extended with 90 days from 1 June to 31 August 2020”.

However, despite this concession, the AA believes it does not take into account licences which expired after 31 May, nor the reduced capacity of Driving Licence Testing Centres (DLTCs) to renew driving licences, and the South African Post Office to process discs.

…the majority of drivers in South Africa prefer to remain compliant with the regulations, and to be on the road legally

– Willem Groenewald, AA CEO

In a letter to the Minister on 29 June, AA CEO Willem Groenewald noted that there are problems with the current legacy operational framework of the DLTCs combined with unforeseen circumstances such as COVID-19 which make it difficult for them to service drivers within that timeframe. He said that the current National Traffic Information System (NaTIS) on which people must book appointments continues to be problematic and that centres may be closed intermittently due to COVID-19.

“Our experience is that the majority of drivers in South Africa prefer to remain compliant with the regulations, and to be on the road legally. Despite the system being problematic, drivers take the necessary steps to ensure they remain within the law. However, given the current constraints on the system, many are faced with the real possibility that they may not be able to do this,” Mr Groenewald said.

An added issue, Mr Groenewald noted, was that drivers who are unable to renew discs or driving cards may have problems if they are involved in crashes as insurers may repudiate claims based on the fact that the drivers are not on the road legally.

Our proposed extension date also makes provision for the closure of DLTCs over the festive period…

– WILLEM GROENEWALD, AA CEO

The AA has called for a further extension beyond the end of August to the end of January 2021, which it says it a more feasible option to the current date of 31 August.

“Our proposed extension date also makes provision for the closure of DLTCs over the festive period, and for further potential closures as a result of COVID-19,” he noted.

In support of the Minister resolving the problems, the AA is offering its national network of agents to assist drivers renew their licences. The Association says the Minister should consider allowing third party agents – such as the AA – to perform vehicle disc and driving licence card renewal services which are currently only offered through the DLTCs and the Post Office.

It said that not only will this go a long way in dealing with the current and historical backlogs, it will also alleviate the pressure on the DLTC infrastructure going forward. The AA has not received a response from the Minister nor his office to the letter sent at the end of June. However, the AA will continue to raise this issue wherever it can in an effort to ensure the validity of licence discs, driving licence cards and other licences is extended, and that drivers can drive with peace of mind.

In this regard, the AA is launching an online petition available at: https://www.aa.co.za/petition-to-extend-the-licence through which it wants to attract signatures in support for its call to pass on to the Minister as a sign of the backing its call enjoys among the public.

Fuel Price Increase July

South African motorists will be hit with another hefty fuel price hike in July, effectively wiping out most of the fuel price relief that lockdown brought.

Commenting on unaudited month-end data, the Automobile Association is predicting a petrol price increase of R1.73 a litre from next Wednesday, July 1, while diesel is set to go up by R1.74 a litre and illuminating paraffin by R2.14.

The latest increase will drive the price of 95 Unleaded petrol up to R14.43 per litre at the coast and R15.13 inland, where the cheaper 93 ULP grade will rise to around R14.93. This is just 78 cents less per litre than this year’s price peak of R15.71 for 93 ULP just before lockdown.

This means a tank of petrol will cost between R52 and R130 more, depending on what car you drive.