Africa Automotive: Mecho launches service tracker app

For fleet owners and private vehicle owners alike, keeping track of work in progress with repairs is hard but, sometimes even tougher is finding the right person to do the job.

MechoAutotech, a Nigerian platform providing global automotive spare parts and vehicle repairs and maintenance services, will launch a version v2.0 of its vehicle management app that connects vehicle owners to qualified and vetted mechanics.

Mecho will also launch Mecho Mart, a marketplace for high-quality aftermarket spare parts and original OEM spare parts for wholesalers and enterprise fleet owners. The soon-to-be-launched products signal a shift in strategy as Mecho looks to double down on improving Nigeria’s $6BN fragmented and informal automotive aftersales market which is characterised by substandard automotive spare parts and frequent stockouts.

Preserve

With the app, customers can access financing to pay for vehicle repairs and maintenance to preserve their cash flow. After undergoing an easy and fast verification process, eligible customers can receive overdrafts of up to 10-million naira, which are deposited in the Mecho app wallet.

 Customers also have more flexible servicing options: they can drop off their vehicles at any of Mecho’s 100 partner workshops in Lagos, Abuja and Port Harcourt, or arrange for pick-up.

In the new improved 2.0 Mecho app, customers can track all their expenses, maintenance requests, and vehicle history. Corporate fleet owners can manage multiple mechanics, including Mecho and other third-party service providers, to streamline the maintenance and repairs process in one easy-to-use app.

Mecho will also roll out an IOT integration allowing corporate fleet owners to track their vehicles. The 2.0 vehicle management app will be free to use.

Also in Q3, Mecho will launch Mecho Mart, a marketplace for high-quality aftermarket and original OEM spare parts for wholesalers and enterprise fleet owners.

Genuine

Customers will be able to buy genuine auto parts such as tyres, shock absorbers, brake pads, lubricants and filters. Using the marketplace, spare parts wholesalers can stock up on inventory with top-quality parts, secure financing, and increase profit by avoiding stockouts.

With support from Global Brains, a Japanese venture capital firm that invested a seven-figure sum in the company, Mecho aims to build partnerships with global automotive aftermarket spare parts manufacturers to source genuine and affordable spare parts to build a reliable vehicle spare parts supply chain in Nigeria.

“When we launched in the market two years ago, we focused on providing high-quality vehicle maintenance services. But over time we learned that we had to prioritise fixing the broken automotive spare parts supply chain – a more urgent problem in the industry and a bigger driver of its value.

“Spare parts represent $6BN out of Nigeria’s $8BN vehicle aftersales market. Since we pivoted our business, we have serviced more than 50 corporate fleet owners and spare parts wholesalers and provided spare parts from 5 global automotive manufacturers. By improving the availability of high-quality spare parts, we believe that we can play a role in improving Nigerians’ vehicle longevity and road safety,” says Olusegun Owoade Mecho Autotech CEO/co-founder.

Nigeria has more than 12 million registered vehicles of which more than 90% are imported used vehicles. Given the predominance of used vehicles, the automotive aftersales industry is highly fragmented and informal with a broken aftermarket spare parts supply chain. Spare parts wholesalers struggle to access high-quality and original parts and suffer frequent stockouts as they are unable to access working capital to purchase inventory.

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Colin-on-Cars - New parts store for Chery

The Chery brand has taken off in South African and the local company has now opened a new parts warehouse in Parkhaven, Boksburg that will house stock worth around R70-million of 4 500 part lines.

“In 2022, Chery’s first full year of sales, the company welcomed 13 142 new customers to the brand. This is a new record for any new entrant in the South African market and it makes Chery the seventh most popular brand in the country. We hope to further improve on this ranking in 2023,” says Tony Liu, Executive Deputy General Manager of Chery South Africa.

“Our choice of the warehouse in Boksburg gives us easy access to all main arteries in and out of Gauteng. It will allow us to dispatch parts to every dealership every day and to receive parts and components for storage throughout the day and night,” says Liu.

The new warehouse not only represents a major increase in size but also in complexity. The new facility uses state-of-the-art electronic identification systems to easily find, pick and dispatch stock.

“We are aiming for an industry-leading fill rate of 98%, which will ensure that customers do not wait longer than normal to have their vehicles serviced or repaired,” says Floris du Toit Head of Aftersales Services at Chery South Africa.

Adequate

Du Toit notes the fill rate also applies to repair parts for vehicles damaged in an accident. Chery South Africa already holds more than adequate body panels and other vehicle replacement parts that can be ordered by any of its 117 nationally approved panel shops in South Africa.

Chery has steadily expanded its range of lifestyle and functional accessories, including electrically retractable side steps on the Tiggo 8, a range of tow bars for all vehicles and additional cargo and styling solutions for the Tiggo range.

These accessories will be stocked at the new warehouse and delivered, with a comprehensive warranty, to all dealers in the Chery network.

“We hope to instil the same level of confidence in our range of Chery accessories as we do in our products. As such, we encourage our customers to buy and fit their accessories directly from their nearest dealer to make sure that it remains within warranty,” says Liu.

These benefits will also apply to customers of Chery’s new fleet-sales division. 

“Chery has seen a significant increase in sales to large fleet operators. Many of these fleet companies have strict requirements for the amount of time that a vehicle is allowed to be booked in for services or repairs. Our new warehouse will ensure that we not only meet but exceed these strict requirements,” says Du Toit

Aside from offering significantly more warehouse space and easy access for delivery vehicles, the new warehouse also has space available for future expansion. Chery is also investigating smaller regional distribution centres that would further improve parts distribution by placing the high volume service parts closest to customers.

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Colin-on-Cars - Global hub for spare parts

A truck fleet is only as good as its service backup and Daimler Truck has re-organised its spare parts logistics by opening a new global supply hub in Halberstadt, Saxony-Anhalt, Germany.

As the heart of the global supply of spare parts, a completely new logistics hub – the so-named Global Parts Center and, in the future parts deliveries will be made from this central location, eliminating additional transport routes and cutting the time until parts are available.

The new logistics hub will deliver up to 300 000 different items – from the smallest screw to a finished truck cab – to almost 3 000 vehicle dealers in 170 countries around the world. The Global Parts Center thus will make an important contribution to ensuring the international flow of goods.

Thanks to state-of-the-art storage and conveyor technology, all vehicle parts will be available for immediate retrieval in an automated high-bay warehouse and an automated small parts warehouse. Construction is scheduled to begin this year, with commissioning scheduled 2028.

Contribution

Karin Rådström, CEO Mercedes-Benz Trucks, says “Halberstadt and the Global Parts Center will play a key role in the future: Spare parts from our new logistics hub will make a significant contribution to keeping our customers and their trucks up and running, thereby delivering on our ambition ‘Trucks you can trust’.”

Jörg Howe, General Representative Daimler Truck AG, responsible for Global Communications & External Affairs, added “Our new Global Parts Center is the biggest logistics project in our company's history. In the future, the Halberstadt site will play a crucial role in keeping our trucks running and thus our economy and society. Without trucks, factories stand still and supermarket shelves remain empty.”

About 2 600 Mercedes-Benz Trucks’ suppliers will provide the logistics hub with their parts in the future so Halberstadt will become the heart of the worldwide supply of spare parts for Mercedes-Benz Trucks. Fuso parts supply in Europe will also be handled by Halberstadt in the future.

In a three-stage logistics process, the new location will serve around 20 regional logistics centres worldwide – in, for example, various European countries, Turkey, the United Arab Emirates, Brazil and China – which in turn will supply regional dealers with parts.

In the first stage of expansion, the new building in the East Industrial Park in Halberstadt will have a gross floor area of around 270 000 square metres with around 260 000 square metres of logistics space. Up to 450 qualified jobs will be created on site. After further construction stages and the assumption of additional activities in connection with global parts logistics, up to 600 jobs will be created at the site.

Energy

The new logistics location is planned from the start for CO₂-neutral operation; the energy concept completely dispenses with fossil fuels. Neither natural gas nor oil is required. The location will be heated with electric heat pumps that bring heat into the building via underfloor heating systems. Due to the low heating water temperatures and the storage effect in the industrial floors, a high level of energy efficiency will be achieved.

In addition, it is intended to equip the roofs with photovoltaic systems, which can generate up to 13-million kWh of electrical energy per year. This is more electricity than will be consumed at the site. Surplus energy from the Global Parts Center will be made available to other Daimler Truck locations in Germany. The roofs of the outbuildings will be greened.

Employees will be provided with a large number of charging stations for e-vehicles and e-bikes. Appropriate charging options will also be available for suppliers’ trucks, whose fleets are gradually being electrified.

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Colin-on-Cars - The case for remanufactured parts

There is a strong case to be made for transport operators to use remanufactured replacement parts that goes well beyond the simple cost saving.

Transport operators have to consider a multitude of fixed and variable factors that have an impact on their cost of operation, and subsequently, their business’ bottom line. These include fuel costs, financing, labour, insurance, maintenance and repair.

When a vital component breaks down the question that inevitably arises is how you should replace it. Repair, buy new or go for a remanufactured part?

To make the right decision for your business it’s vital to consider all your options to essentially solve the same problem.  

“Buying a new part could be your first instinct when something breaks down; after all you want something that works, has a warranty, and is guaranteed to fit your truck. A new part will also come with the latest technology, have the longest life expectancy and work efficiently. 

"But it will also mean a higher price tag and you will have to evaluate how this will impact your operating costs and total cost of ownership of your truck,” says Eric Parry, sustainable solutions manager at Volvo Trucks South Africa.

Eric Parry

When you repair a part, the malfunctioning or worn component gets replaced while the rest stays the same. While repairing can save you money it’s good to be aware repairing also almost always comes with certain downtime as the truck will have to be in the workshop for a while.

Understanding remanufacturing

Before considering whether remanufactured parts are the right option for your business, it’s important to distinguish remanufacturing from rebuilding a piece of equipment.

Remanufacturing is a standardised industrial process in which worn-out parts are returned to a condition that is as good as new in technical specifications and performance. It is usually a good idea to replace heavier components with remanufactured parts as these tend to be more expensive.

Engine, chassis parts, transmission brakes and steering are just a few of such components. When it comes to electronics, starter motors, control units and alternators can be replaced using remanufactured parts as well.

“When we remanufacture parts at Volvo Trucks this process includes dismantling, cleaning, re-machining, assembling and testing the equipment. The process is much like the original manufacturing process, except that some of the components have had a previous life,” says Olga Naert, remanufacturing business development manager at Volvo Trucks.

There are a few reasons why a remanufactured part might be the right investment if you are facing the breakdown of a critical component.

“The most obvious is of course the lower cost compared to a new part. When you buy a reman unit, all parts will be updated with the latest technology,” explained Naert. “Quality is another plus as remanufactured parts meet OEM standards for performance and always comes with a warranty.”

Last but not least, a remanufactured part also has a much lower impact on the environment as a lot less raw material, energy and water is used in the production process.

Concern about the environment and diminishing resources is a great reason to choose remanufacturing.

A newly produced part is made using 100% new raw material whereas a remanufactured part only uses 15% since most of the material comes from the core (the faulty part).

“Using remanufactured parts also saves energy, reduces landfill waste and it means that dangerous residuals inside worn components are taken care of,” adds Parry. “The process of remanufacturing, which is labour intensive, can also be seen as sustainable from a societal perspective as it creates demand for high-skilled jobs.”

In addition to quality and lower cost, remanufactured parts can also be a quick fix compared to repairing thanks to their growing popularity and availability. In fact, choosing a remanufactured part could put you back on the road just as quickly as purchasing a new product.

“At the end of the day whatever purchase strategy you decide on will depend on the specific needs of your business,” explained Parry. “Remanufacturing can be a great option if you are cost sensitive but also want a high-quality product. The cost of a remanufactured part can be up to 50% cheaper than a new one, depending on the type of part.”

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Colin-on-Cars - Team Sa does well in service competition

Sometimes it is not necessary to come first in a competition to be a winner – and that is what Team South Africa is bringing back from the recent Volvo Trucks global service market competition, Vista, where it finished in eighteenth place.

The winning team at the final in Volvo Trucks’ hometown of Gothenburg, Sweden was team Kiired Insenerid from Estonia followed by teams from Denmark and Sweden.

Global

More than 16 000 technicians in some 4 500 teams from Volvo Trucks and Volvo Buses’ global dealer network, participated in this year’s Vista championship – a global event that was first run back in 1957.

Team South Africa, which was made up of four service specialists and technicians from Volvo Trucks Cape Town, came in a respectable 18th position out of the 43 teams that participated in the world final. 

Improve

“Our mechanics play a key role in contributing to our customer’s success by keeping their trucks on the road, and Vista is a great way for them to improve their workshop skills. I’m very impressed by the technical knowledge of the teams this year and the speed with which they solved the challenges presented to them,” commented Roger Alm, President of Volvo Trucks.

The main objectives of the Vista competition are to encourage competence development and to build team spirit and pride. Highly skilled and motivated technicians enable Volvo Trucks workshops to carry out fault diagnosis and fix trucks’ problems ‘right first time’, promptly and to high-quality standards.

These skills are key in helping customers achieve maximum uptime for their trucks. In the end, this leads to improved customer service.

In the finals held in Gothenburg, 43 teams of technicians and service market staff competed for two days to complete six stations, on topics including CAN Link fault-tracing, I-Shift and bodywork.

Electric

Two stations were VR stations with a focus on electric vehicles, one assignment consisted of installing an electric motor on a truck. The numbers of electric trucks and buses are now quickly growing and safely working with electric motors is an important skill for technicians in practically every workshop around the world.

Waldemar Christensen, MD of Volvo Trucks South Africa, said although the SA team did not walk away from the competition with top honours, they learned invaluable lessons were learnt that will benefit local customers.

“Vista is not only important for Volvo Trucks’ aftermarket personnel, but also of great importance for the entire company. It is a way of showing how much we all value the hard work carried out at our workshops all over the world, and that we invest in what our customers appreciate most – world-class service,” says Christensen.

*Vista stands for Volvo International Service Training Awards. It started in 1957 and was originally a competition for Volvo technicians in Sweden. 20 years later, by 1977 it had reached out across all continents, attracting authorized Volvo dealers from all over the world. Today Vista is a biennial event and the biggest competition for service market personnel in the world.

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Colin-on-Cars - Pre-emptive service pricing from Ford

The digital space continues to expand and Ford Ranger owners can now do an online quote for their vehicle’s next service.

Ford claims this offers customers complete price transparency on vehicle servicing costs.

“This new Online Service Price Calculator echoes our Ford values,” says Harm Kruyshaar, FCSD Retail Manager at Ford South Africa. “We are committed to modernising our systems within the ambit of the service sector, especially when it leads to simplified solutions and more direct customer care. We are confident that by giving our customers more control and transparency they will continue to service their vehicles at Ford dealerships.”

Option

The Online Service Price Calculator, which is currently available only for derivatives of the Ford Ranger (but will soon roll out to other Ford model ranges), has been created to give customers the option of using Ford genuine parts or, where available, more cost-effective Motorcraft parts, which are alternative Ford approved parts that are engineered to Original Equipment (OE) specification.

Once the online quote has been generated, and a booking has been made, it can be taken to the relevant dealer and the vehicle will be serviced at the quoted price. Customers are given the option to compare quotes at more than100 authorised Ford dealers around the country.

Log on to www.ford.co.za/owner/service-price-calculator/ and, after filling in a few of your vehicle’s details, such as year model and mileage, the Online Service Price Calculator will generate a quote showing the breakdown of parts and labour costs.

Online

Customers can also download a copy of their Ranger’s Service Schedule and make an online service booking via a link to the online service booking portal at www.myfordjourney.co.za.

Customers who did not opt for the Ford Protect Service Plan when purchasing their vehicle can still use the Online Service Price Calculator and take their vehicle to a Ford dealership where all servicing and repairs are done to the highest standard with a guarantee on all workmanship and parts.

Another convenience initiative currently being rolled out across the Ford Dealer Network is the Express Service offering. It offers customers further convenience by allowing them to book a specific service timeslot, and having their vehicle serviced within 60 minutes by two trained technicians working on the vehicle in sequence. Express Service is currently offered at select Ford dealerships and needs to be requested when making the booking with the service advisor.

Ford vehicles come standard with a comprehensive four-year/120 000km warranty, four-year/unlimited distance roadside assistance and five-year/unlimited km corrosion warranty.

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Colin-on-Cars - Ford unbundles service plans

Ford South Africa is to unbundle all the Ford Protect Service Plan costs from the price of new vehicles with effect from November 1 in terms of the new Automotive Aftermarket Guidelnines that were established in response to the successful public cmapaign called ‘Right to Repair’.

Accordingly, in line with the guidelines, customers that purchase a new Ford vehicle from  November 1 are able to purchase a Ford Protect Service Plan separately, should they wish to do so, as has been the case with the optional comprehensive Ford Protect maintenance plans and extended warranties.

Furthermore, customers that choose not to purchase a Ford Protect service or maintenance plan have the option of servicing at a Ford franchised dealer. Servicing at a Ford dealer guarantees quality workmanship using factory-trained and certified technicians, genuine Ford parts and lubricants, and access to the latest diagnostic equipment.

“We are committed to delivering the very best products, services and customer experiences, and are focused on treating each customer as part of the Ford family,” says Neale Hill, President, Ford Motor Company Africa. “Ford is acutely aware of consumers’ growing desire and right to choose where they wish to service, maintain or repair their vehicles.

“As a result, we have been working to implement the systems and processes necessary to unbundle the Ford Protect service plans,” Hill says. “It has taken some time to deal with the complexities of unbundling the service plans from the price of the vehicle, but we have now implemented the changes and customers can choose to purchase these separately when buying a new Ford.

“Customers have the option of selecting where to service their vehicle, but it’s important that they familiarise themselves with the guidelines,” Hill explains. “For example, if you choose to service your vehicle outside of the Ford dealer network while you have a Ford Protect Service Plan in place, Ford is not obliged to pay the Independent Service Providers (ISP) for any services rendered. The ISP cost will be for your own account - and although the Ford warranty remains in place, should there be a failure as a result of the parts used or the workmanship of the ISP, that portion of the repair may not be covered by the Ford warranty.”

Customers should note that only Ford dealers are authorised to conduct recall repairs on Ford vehicles, which are performed at no cost to the owner. Similarly, factory warranty repairs may only be performed by a Ford dealer.

While the Service Plan is now an added-cost option, the vehicle’s standard original equipment manufacturer (OEM) warranty remains in place. The Ford Protect package on all new Ford vehicles comprises a four-year/120 000km comprehensive warranty, three-year/unlimited distance roadside assistance and five-year/unlimited km corrosion warranty.

Should a customer choose to use an ISP for the service and maintenance of their vehicle, the standard warranty will not be affected. However, if there is a failure as a result of a part or the workmanship, that portion of the repairs will not be covered by the manufacturer’s warranty. Services also need to be done according to the manufacturer’s applicable service intervals.

“Guaranteeing the quality of work done and the parts used on what are increasingly sophisticated vehicles is essential in delivering the best ownership experience,” Hill states. “This is part of Ford’s commitment to ensuring that the reliability, durability and safety of the vehicle meets the needs and expectations of our customers.”

Ford Protect Service Plans, Maintenance Plans and Extended Warranties are fully backed by Ford Motor Company, which gives the customer peace of mind that all work on their car is performed to the highest standard, and that all workmanship and parts are guaranteed.

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 Volkswagen launches new service plan

Legislation changes making it possible for car owners to service outside of a franchised delaer group and the fact automakers have to specify the cost of service plans and make them optional mean the processes have to be re-imagined. 

Volkswagen has kicked this off with its EasyDrive Vehicle Plans that offer a comprehensive service and maintenance programme. 

“The EasyDrive Vehicle plans give our customers peace-of-mind motoring and benefits like protection against inflation as prices are fixed at today’s rates for future servicing and maintenance costs, transferability from the current owner to a new owner and enhanced resale value with a full service history,” says Steffen Knapp, Head of the Volkswagen Passenger Car Brand.   

Customers have the option to extend the EasyDrive Maintenance and Service Plans up to 10 years/ 300 000 km. 

The comprehensive EasyDrive Maintenance Plan covers all costs (parts and labour) associated with scheduled vehicle services, repairs of defective components and wear and tear items (excluding tyres) that need to be replaced as well as 24/7 Roadside Assistance. The EasyDrive Service Plan covers all manufacturer-specific scheduled service requirements, including parts and labour costs. 

“At Volkswagen, we offer a seamless after sales customer experience. Included in our EasyDrive Maintenance and Service Plans is access to and the technical expertise of the 109-strong Dealer Network in Southern Africa, more than 40 000 genuine Volkswagen vehicle parts that are available in the country as well as customer care in the form of 24-hour Roadside Assistance,” added Knapp.  

The added benefit of the vehicle plans is the availability of parts in South Africa; Volkswagen has one of the biggest footprints when it comes to vehicle parts in Southern Africa. In South Africa, Volkswagen has 32 000 sq/m Parts facilities in Cape Town and Centurion, Pretoria. 

Using the WeConnect Go App, Volkswagen drivers are able to book a vehicle service on the app. Using the digital Service Cam feature, a technician is able to diagnose an issue on the car and show this to the customer via video, the customer is then able to give approval before repairs are made on the vehicle.

 The Volkswagen Dealer Network uses master technicians who utilise cutting-edge tools and equipment for repair work and to update the latest available software so that drivers can enjoy the best performance and driving dynamics.

The 24-hour Roadside Assistance also offers Volkswagen customers benefits like towing, fuel (for the customer’s account) and jump-starting in the unlikely event of a flat battery.