THE GDPR LOWDOWN

THE GDPR LOWDOWN

In part two of our GDPR guide, Hayley Pells explains how practical steps will help you be ready.

It hasn’t been a good month for the public’s perception of how companies use their data. You may have noticed that during the coverage of Facebook and Cambridge Analytica on TV that Elizabeth Denham, the UK’s Information Commissioner, would pop up to reassure the public that steps were being taken to regulate how their data was used and stored by companies, which was of course a reference to GDPR. If there was any doubt about how seriously the country is going to take the new legislation, this will be a wake up call.

Last month, we explored the background of GDPR and how it is going to affect your business, this month, we are going to explore a step-by-step guide to show you how you can become legally compliant yourself. If you are unsure of the process there is still time to get some professional help. There are independent consultants all over the country and there are larger organisations who are able to roll out a fast to access service. The average garage owner can do this in-house for themselves, but if you are busy, it could be a more cost effective solution to outsource.

STEP 1
Awareness

Following on from last month’s article, you need to make sure all of your team know about the legislation. In my case, trying to explain it to my father who I work with (and is in his late sixties) is a hoot, but we got there. The key area to get across is the impact this compliance will have on the business and acknowledging the time and cost it will require to implement. Do you have a risk register? It could be useful to have one. Compliance can be difficult if the preparations are left to last minute, especially if you then plan to outsource.

STEP 2 – Current situation

What personal data do you hold about your clients and staff ? Do you really need it? This is a good opportunity to “clean house.” Dispose of the unrequired information responsibly, ensuring that the data is inaccessible at the point of disposal.
What you should be left with is the information that you need. What do you do with it? This is how compliance with the accountability principles of GDPR are achieved. You need to know what information you hold, where it is held and how it
is held. It must be held securely. When sharing data, this needs to be done responsibly. For example, does someone else process your payroll? Now is the time to check that the information you share is being done so in a responsible manner and that your service provider is up to speed with their obligations.

Having assessed your current situation it is a good idea to record it and then outline your strategy for improvement. This is a very similar process to how you would complete a risk assessment.

STEP 3 – Communicating
privacy information
Do you have a privacy notice? Currently, when you collect personal data you need to give people the following information;
– Who you are
– How do you intend to use their information

That information you have probably done without thinking, to continue with the payroll simili “I’m Fred Bloggs, I need your NI number to process your pay.” With the GDPR, this is expanded upon, now there are a couple of extra things you need to tell people;

– Your lawful basis for processing the data
– Data retention periods
– The individual’s right of complaint to the Information Commissioner’s Office

So for this I shall use the example of information that I gather for a MOT test. My lawful basis for collecting information about my client is that I have been tasked with performing a MOT test on their vehicle. I keep this data for one year and the ICO’s website can be found at ico.org.uk – they are the Information Commissioner’s Office, the UK’s independent body set up to uphold information rights in the public interest. The GDPR requires that plain language is used, every step should be as clear and concise as possible.

STEP 4 – Individual’s rights

You should check and record your procedures to ensure they cover the following rights of the individual, include how you would erase personal data or provide personal data electronically in a commonly used format;
– The right to be informed
– The right of access
– The right to rectification
– The right to be forgotten
– The right to restrict processing n The right to data portability
– The right to object
– The right not to be subject to automated decision-making including profiling

Now bear with me, this all probably sounds like something completely new, but before spanners are thrown up into the year and “this modern euro nonsense is just taking over everything, I am but a simple mechanic” is hailed (or was that just my father?). Let us examine what this means practically. A lot of these rights are just basic common sense, you are probably employing them right now – the key areas that are significantly different are mainly within the right of portability, it only applies;

– To personal data an individual has provided to a controller
– Where processing is based on the individual’s consent or for the performance of a contract
– When processing is carried out by automated means With the Data Protection Act, you could, if you so wished, charge a fee for the provision of data to the individual, under the GDPR you cannot and the information provided by the ICO insist that it be provided in a structured commonly used and machine readable form.

STEP 5 – Access Requests
Step four outlined the right the individual has, step five now examines how those rights are handled. It is good practice to have this recorded and share it with everyone in your organisation.
– No charge for information requests
– Information to be given within a month (under the Data Protection Act, this was 40 days)
– You can refuse or charge for requests that are manifestly unfounded or excessive
– If you do refuse a request, you are legally obliged to tell the individual why and that they have the right to complain to the supervisory authority and to a judicial remedy. You must do without undue delay and at the latest, one month.

If you have a large organisation or you handle large numbers of information requests this may be a good time to assess the implications of dealing with requests quickly. It may be worth considering the desirability of systems that allow individuals to access their own information online.

STEP 6 – Lawful basis for processing personal data
As individuals now have a stronger right than under previous legislation to access their personal data in order to achieve compliance with the GDPR, you should document and share your lawful basis for the collection and processing of this data. This is especially important now individuals have the right to deletion of their personal data.

STEP 7 – Consent
Consent cannot be inferred by silence and must not be an “opt out” (no pre-ticked boxes or assumptions). This is quite a broad area and will be explored further next month with detailed guidance. Consent cannot be thrown in with your general terms and conditions as it must be freely given, specific, informed and unambiguous. In my opinion, post 25th May 2018, this is going to be the next big goldmine for all those companies that are currently benefiting from the PPI refunds, it will be an easy area to identify non- compliance if the correct procedures are not in place.

STEP 8 – Children
Before shoulders are shrugged that you don’t deal with children, first understand what is meant by the term “child”, although the consent given by children within this context tends to be more concerned with young children and internet related services such as social networking, it would be a good idea to consider how you handle apprentice’s (or any other employee or client who are under 18) information. Currently the GDPR sets the age at 16, this may be lowered to 13, being mindful of how this age limit may change and implementing into your policy documents for the younger people that you may deal with will be the best method to achieve compliance.

If your organisation does deal with children, you must remember that consent must come from someone with “parental responsibility” and has to be verifiable. Your privacy notice must be written in language that children can understand.

STEP 9 – Data Breaches
What to do if it all goes wrong? The legislation does consider that like locking the door to your home doesn’t stop thieves getting in, you may be subject to a data breach that, in under normal working circumstances, would not happen.

If you have a breach, determining the nature of the breach will direct your next course of action. You only need to notify the ICO if the breach is likely to risk the rights and freedoms of the individual, for example, if it could result in discrimination, damage to reputation, financial loss, loss of confidentiality or any other significant economic or social disadvantage. If this breach is likely to result in a high risk to the rights and freedoms of individuals, you will also have to notify them directly.

In order to achieve compliance with the GDPR you must have procedures in place that detect, report and investigate personal data breaches. Having a good clear out at step two will reduce the risk in this area.

STEP 10 – Data Protection by Design and Data Protection Impact Assessments
Remember when you had to uncheck a prefilled box to opt out of things online? Now you have to check it yourself, this is what that is about. The chances are, if you collect data in this way, this is something that you are already aware of and I am personally at a loss as to why you would have a need to process information in this way within the automotive aftermarket, but I am sure there is someone out there who could enlighten me!

STEP 11- Data Protection Officers If it is everyones’ job, nobody does it. Identifying a person responsible for data protection compliance is now a formal obligation in certain circumstances. You probably won’t be one of them, but it is still good practice to formally appoint someone to oversee your compliance, that person should take proper responsibility for your data protection compliance and has the knowledge, support and authority to carry out their role effectively.

STEP 12 – International
If you are lucky enough to deal internationally with your organisation you should determine your lead data protection supervisory authority and document this. The lead authority will be where your central administration is located but only relevant where you carry out cross-border processing. (This step doesn’t apply to my garage. Currently).

Hopefully, this article will be helpful in becoming compliant for yourself. The advantage in doing this yourself will enable your organisation to be familiar with the new legal responsibilities organisations have with respect to personal data. The next article will thoroughly examine the subject of consent and how it is applied in this context.

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GDPR: WHAT’S THE FUSS?

GDPR: WHAT’S THE FUSS?

Time is running out to get your ship in order for new data regulations

The act of putting one product in the carton of another is something that we all know happens throughout the aftermarket at all levels.

There’s one product in particular that we know is packed in the UK in a dozen or more brand images – and no doubt there are others.

There has been little in the news about the new General Data Protection Regulation (GDPR), which comes into effect on 25 May, so it is hardly surprising that there are many people that either have no idea about it or assume that it has anything to do with them. Put simply, GDPR will give teeth to existing legislation, the Data Protection Act (DPA) and according to consumer polls, over a third of Britons are already anticipating to exercise their rights in accordance with this legislation.

But what does it all mean and more importantly what does it have to do with fixing cars? It is easy to brush off this kind of change, assuming that it only applies to big companies like chain fast-fits and dealerships that obviously have some sort of ivory tower that churns out policies and small print in a factory like manner. They are used to being sued right? They have all the means to support all this bureaucratic nonsense and the small company that only employs a couple of people won’t have to worry about this kind of EU nonsense, plus Brexit and everything else…

Unfortunately this is not the case, this change has happened and it is coming in the next couple of months. On that day and every day after this new responsibility will be handed over to you regardless of your preparedness. A bit like becoming a parent really, only without the panting and sweating that you get to herald this kind of immediate change. So what exactly is it?

THE ACT
To break it down, The Data Protection Act (DPA) was introduced in 1998 to protect the rights of the individual with regards to their personal data and how it is processed. A lot has changed since then, particularly the quantity of data that is collected and the complexity of locations of where it is stored have changed dramatically.

Most of the legislation from DPA will remain the same, GPDR will enforce certain elements of it and although GDPR is an EU directive it will be incorporated into British law post Brexit.

Louder for the people at the back, whether we are in or out we are keeping this.

Before moving on, it is worth clearly defining what we mean when talking about processing data, especially in the context of General Data Protection Regulation.

At its most basic definition this refers to any operation performed using personal data, it does not matter if this is automated, handwritten or typed into a spreadsheet. This includes and is not restricted to collecting it, organising it, structuring it, storing it, retrieving it, sharing it and a whole lot else. The official definition can be found on the Information Commissioner’s Office website.

In short, it will now be considered a breach of data if information that is protected by this legislation is not securely stored. This is so serious that even if a breach of data has not occurred, poor management of this data will be treated in the same manner as if the breach has occurred. Dumb luck is not rewarded. If an organisation has been targeted for data theft or even if a suspicion that data has been potentially put at risk there is guidance on the ICO website on how to manage and report such an incidence, and the ICO are keen to push the ‘tell us everything and tell us quickly’ message in the same way you would speak to your insurance company and the police if someone had broke into your premises.

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COMPANY DIRECTORS UNDER THREAT

COMPANY DIRECTORS UNDER THREAT

Creditors must be taken care of as well as the business itself

Running a company and holding a directorship involves a number of duties and obligations. The law is very prescriptive about this, and for good reason. In exchange for limited liability and general immunity for company debts, directors must care for the success of the business and also, should insolvency loom, protect the position of creditors.

The authorities take a dim view of those that breach the law. Take the November 2017 case of Kieran Jon Fox, the sole director of Doncaster Auto Parts Limited. He was disqualified from being a company director for three years and six months for trading “to the detriment of HM Revenue and Customs” by failing to pay £94,999 in respect of PAYE, National Insurance and VAT – monies owed at the time of liquidation. HMRC’s analysis of Doncaster’s bank account showed that at least £505,877 was spent from the account between 7 June 2015 and 9 June 2016. Over the same period at least £95,687 was paid to him in respect of loans, wages and dividends and at least £373,537 was paid to other parties. Total liabilities to creditors at liquidation were £358,237.

DIRECTOR’S DUTIES
According to Peter Windatt, an accountant and licensed insolvency practitioner with BRI Business Recovery and
Insolvency, companies must have at least one director who is legally responsible for running the company and making sure its accounts and reports are properly prepared.

Directors must be at least 16 and not disqualified; while most have a director’s title, the law recognises what is termed a shadow director. “An individual in this situation,” says Windatt, “is without title but nevertheless acts as if they are a director. Consequently, the law assigns them the duties and obligations of a formally titled director. Avoiding the term ‘director’ doesn’t remove the duties and liabilities from an individual.”

There are a number of general statutory duties placed on directors by the law which Windatt outlines.

“Firstly,” he says, “directors must act within their powers – that is, comply with the company’s constitution and exercise powers only for the reasons they were given.” Windatt explains that directors must critically act in a way they consider is most likely to promote the success of the company for the benefit of its members: “To do this they must have regard to all relevant matters, which the law specifically says involves ‘considering the likely consequences of any decision in the long term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others, as well as the impact of the company’s operations on the community and the environment; and the desirability of the company maintaining a reputation for high standard business conduct; and the need to act fairly as between members of the company.’”

But there are other obligations to note: Directors must exercise independent judgment, that is, not be swayed by others, and must also exercise reasonable care, skill and diligence. This is key for Windatt – he says directors must be diligent, careful and well informed about the company’s affairs: “If a director has particular knowledge, skill or experience relevant to his function (for instance, they are a qualified accountant and act as a finance director), they will be judged accordingly.”

Another duty to note is the need to avoid conflicts between director’s interests and those of the company. This means not accepting benefits from third parties unless the company authorises acceptance, while declaring any interest in a proposed transaction or arrangement before it is entered into.

A final duty is close to Windatt’s own professional interests. Directors should consider or act in the interests of creditors (particularly if insolvency is a possibility) while maintaining confidentiality of the company’s affairs.

WHEN THINGS GO WRONG – DISQUALIFICATION

Of course, many businesses are well run and outlive their founders. However, when a business fails “the Insolvency Service will,” says Windatt, “examine the failure and if the director and his actions have been found wanting, can seek the disqualification of the director(s).”

He offers a note of advice to directors: “To protect their position and to comply with the law, directors should ensure their companies maintain and preserve proper accounting records and should submit them to the relevant authorities upon insolvency.” He frequently sees directors investigated by the Insolvency Service with a view to taking action against them, and says: “Any director that’s been disqualified will no longer be able to act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership; or receive company’s property. For most, this is likely to have a significant impact on their future earnings, especially as they may be disqualified for up to 15 years.”

PENALTIES FOR BREACHING DISQUALIFICATION ORDERS
There will always be some who consider that they can ignore a disqualification order, but they risk severe punishment. In these circumstances, they face imprisonment for up to two years and/or a fine on conviction following indictment; or imprisonment for up to six months and/or a fine on summary conviction. And the threat isn’t idle – there have been convictions.

Interestingly, but not unsurprisingly, Windatt’s seen some directors who are disqualified, either under the CDDA or by virtue of being made bankrupt, have their spouse/partner or other close friend/relative “front” a business while they carry on running it from “behind the scenes”: “This frequent scenario unravels when the business fails. At this point the stooge quickly reveals what they were and who the real controller was.”

To conclude, companies can and do fail for any one of a number of reasons, most of which are unfortunate but not deliberate. But where a director has not acted in good faith or in accordance with their duties, they can expect their activities punished and their ability to earn a living curtailed.

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MAKING FAIR DISMISSALS

MAKING FAIR DISMISSALS

Deciding who makes the cut and telling those who haven’t is never easy. Here are a few tips to smooth the process

No employer likes to make employees redundant. Unfortunately, as the recent decision for 100 planned redundancies at the AA illustrates, and the announced Andrew Page branch closures might mean, sometimes difficult decisions do need to be made.

For the process to work properly, it is important that redundancy dismissals are handled sensitively and in accordance with the law. Any employer that fails to comply with its legal obligations during a redundancy situation could face complaints from employees and claims for compensation for unfair dismissal as a result.

WHAT IS A REDUNDANCY SITUATION?
In an employment law context, redundancy has a very specific meaning. To summarise, the statutory definition of redundancy identifies three sets of circumstances that amount to redundancy situations – a business closure; workplace closure; or reduced requirements of the business for employees to do work of a particular kind.

There is no mandatory procedure laid down by legislation in England and Wales for fairly dismissing an employee for redundancy reasons. Instead, employers must follow a fair procedure involving individual consultation. Dismissal decisions must be fair and reasonable. Case law has determined various principles of fairness that an employer should follow in order to reduce the risk of employees pursuing claims for unfair dismissal.

Generally, these principles require an employer to give employees early warning of the risk of dismissal; consult with employees (and the union if required); identify an appropriate “at risk” pool for redundancy; draw up and apply fair selection criteria; and give consideration to alternative employment.

CONSULTATIONS

First, an employer looking to make a number of employees redundant must check whether the obligation to engage in collective consultation exists. Where there is a proposal to make 20 or more employees at one site redundant within a 90-day period, the employer must engage in collective consultation with a trade union. If no trade union is recognised for that particular employer, then an employee representative will need to be elected, with whom the employer will need to consult. The employer will also need to notify the secretary of state of the number of planned redundancies.

Employers should seek specific advice in circumstances where multiple redundancies are planned as there are a number of obligations.

Even where a collective redundancy situation does not arise, consulting with the employee(s) at risk of redundancy is absolutely vital and will be central to the fairness (or otherwise) of the decision to dismiss. Consultation should be genuine and take place at a time when the employer can properly consider the employees views and suggestions – that is, before the final decision is made.

THE “AT RISK” POOL
Before selecting an employee or employees for redundancy, an employer must consider what the appropriate pool of employees for redundancy selection should be. Otherwise the dismissal is likely to be unfair.

There are no fixed rules about how the pool should be defined and, unless there is a collectively agreed or customary selection pool, an employer has a wide measure of flexibility here.

The question of how the pool should be defined is primarily a matter for the employer to determine and, provided an employer genuinely applies its mind to the choice of a pool, it will be difficult for an employee (or a tribunal) to challenge the choice.

Factors that are likely to be relevant to identifying a pool are the type of work is ceasing or diminishing; the extent to which employees are doing similar work (possibly even those at other locations); and the extent to which employees’ jobs are interchangeable within the workforce.

SELECTION CRITERIA AND SCORING
Once an employer has identified the employees in the at risk pool, it will need to apply selection criteria to determine those at risk of redundancy. To do this, employers will need to develop appropriate selection criteria. The criteria, which of course must be objective and fair, might want to look at things like disciplinary record, length of service and performance. Criteria which relate to protected characteristics such as age, disability, religion or sex must be ignored.

The employer will need to mark each of the potentially redundant employees according to the finalised selection criteria.

Different weighting can be given to different criteria. It can also be useful to ask different managers to independently score employees in the at risk pool in order to ensure objectivity.

ALTERNATIVES TO REDUNDANCY
In many cases, consultation between employer and an employee who is at risk of redundancy will be focused on finding an alternative to dismissal on redundancy grounds. Employers should be prepared to discuss the steps that it has taken, or has considered taking, to reduce the risk of (or number of) redundancies. This might include things like a recruitment freeze and terminating the engagements of agency workers before embarking on the redundancy process.

Equally, employers should provide details of any vacancies to employees who are at risk of redundancy in order to minimise the number of dismissals that might need to be made.

STATUTORY PAY
Lastly, when making redundancies, employers should bear in mind that employees are entitled to an SRP payment where they are dismissed by reason of redundancy and have at least two years continuous employment at the date of the dismissal. The calculation for this can found at: gov.uk/calculate-your-redundancy-pay

Managing a redundancy process to ensure fairness can be difficult. It is crucial that an employer carefully plans the process at its beginning and critically before consultation with employees begins. Getting it wrong can have a big impact – in addition to potentially facing unfair dismissal claims, a poorly planned redundancy process may end up alienating the workforce at a time when the employer requires everyone to be particularly focused on the job at hand and morale is low.

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SECOND ‘EURO ACADEMY’ OPENED IN SUNDERLAND

SECOND ‘EURO ACADEMY’ OPENED IN SUNDERLAND

Factor giant Euro Car Parts has opened its second purpose-built training centre in Sunderland. The facility will deliver the full range of Euro Academy courses with an IMI-accredited ADAS course also available.

 The centre is fully equipped with an Automated Test Lane (ATL) for MOT training, multiple lifts and a fleet of dedicated training vehicles. In addition to offering repairers access to the latest training backed by major parts manufacturers, the Academy also gives technicians the opportunity to try out the factor’s product range.

Courses delivered at the new training facility range from electrics and diagnostics to hybrid vehicle servicing and customer care. Most courses are run over the course of one to two days and some have an e-learning element enabling repairers to go away and undergo further training.

 Speaking about Euro Academy, Bill Stimson, Technical Sales Director at Euro Car Parts, said: “With alternatively-fuelled vehicles on the horizon and diagnostics a daily reality, training is becoming more important for repairers. With the addition of our new Sunderland training centre supporting our existing Avonmouth facility, we are developing a comprehensive, nationwide training provision, which is accessible to all independent repairers”.

 “Training has become a core area of our business over recent years and our aim is to grow our offering to repairers, adding further training centres to our network this year” he concluded

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IS BANNING DIESEL BAD FOR THE ENVIRONMENT?

IS BANNING DIESEL BAD FOR THE ENVIRONMENT?

Scrappage Scheme

Evidence suggests that a rise in petrol registrations is contributing to global warming

Diesel-powered vehicles have been in the news a lot over their environmental performance, or lack thereof. Conversely, industry experts have warned that a clampdown on diesel vehicles could result in the UK actually missing European environmental targets.

Mike Hawes, Chief Executive at SMMT warned that demonising diesel conversley will have an adverse effect on the environment. “Customers are not moving straight from diesel to electric. They’re moving to petrol or staying put in older cars” he said when speaking at the Society’s annual dinner in December. “So we’re seeing a falling market, declining revenues, rising costs, rising CO2. And, yes, this will have an effect on climate change goals. This is not a policy without consequences”.

Data firm CAP HPI has authored a report which concludes that the EU’s 2021 environmental targets could be missed if the percentage of diesel vehicles continues to decline on UK roads.

The report points out that some of the environmental criticism of diesel vehicles is misguided.

All the countries in the report achieved the 2015 CO2 emission target for cars registered in that year. While France and Italy were comfortably below the 130g/km line, the UK is closer, and Germany only cleared the hurdle by 1.4g/km.

UNACHIEVABLE
Matt Freeman, Managing Consultant at CAP HPI and the report’s author, commented that without continuing sales of diesel engine cars, this target reduction is unachievable: “Hitting the 2021 environmental targets for CO2 reduction would be a significant challenge without the likely decline in diesel. Therefore it is imperative that diesels continue to command a substantial share of the new car marketplace.

“If consumers, with no option of transitioning to hybrid or EVs, switch to petrol the environmental impact is clear – their CO2 emissions would likely rise between three percent and 23 percent according to model.”

The report argues consumer education is key as there is an apparent risk that consumers are being led to believe that ‘all diesel is bad’ and that any suggestion that there is a good diesel option is due to the automotive industry seeking to resist change and preserve the status quo. This level of miscommunication needs to be countered if diesel is to have a short- to medium-term future.

SKEWED
However, the media coverage on diesel is, to say the least, skewed against the fuel no matter what the improvements and consumers are confused. At the aforementioned SMMT dinner, Greenpeace crashed the stage to hand VW boss Paul Willis a faux ‘award’ for ‘toxic air’ and coverage in the mainstream press has been hardly less hostile. This has resulted in drop in demand (by about a fifth) in new registrations for diesel powered cars and new registrations for light vehicles as a whole are down 5.7 percent compared with last year. This has lead to several analysts making doom-laden predictions about the future of new car retail through franchises coming to an end entirely. These might be a little wide of the mark, but it does seem that for a private motorist wanting to upgrade to the latest technology, the idea of a conventional powertrain must seem a bit old fashioned.

Most people reading this might wonder why they should care, after all, surely this is a hole that the VMs have dug for themselves? It doesn’t affect the aftermarket… Unfortunately, it does. Tens, if not hundreds of thousands of vehicles won’t go through trade auctions and back into the aftermarket as the VMs are holding their own versions of scrappage schemes. As far as I know, no-one has made a serious attempt to retrofit otherwise efficient Euro- 3 onwards common rail diesel engines with devices to clean up their carcinogenic soot, meaning that they are replaced with petrol vehicles that are only marginally less toxic, but will emit greater quantities of greenhouse gas. Meanwhile, the face of the retail motor industry as a whole is besmirched by the failure of the VMs to get a grip on this situation which is a real pity for all involved.

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INVISIBLE HEAT FROM MINI DUCTOR VENOM

INVISIBLE HEAT FROM MINI DUCTOR VENOM

PROMOTIONAL CONTENT ON BEHALF OF INDUCTION INNOVATIONS

Mini-Ductor® Venom® – MDV-777

Mini-Ductor Venom generates Invisible Heat® to release ferrous and some non-ferrous metals from corrosion and thread lock compounds without the dangers of open flame and up to 90% faster – ¾” nuts are turned red hot in seconds. Venom’s feature set allows users to repair vehicles and equipment faster, safer and more profitably, and to salvage parts normally discarded.

  • Coil Twist Lock
  • Angled Design with Trigger
  • LED Usage Indicator
  • User Controlled LED Switch
  • Two Year Limited Warranty

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THE RIGHT PART GOES BEHIND WHAT FITS

THE RIGHT PART GOES BEHIND WHAT FITS

The rules around replacement parts are complex, but worth getting your head around, writes BM Catalysts Commercial Director Mark Blinston.

While there might be more hot air than hard facts about emissions across the mainstream press about vehicle emissions, there can be no doubt that reducing toxic gas and restoring trust in the motor industry is the greatest problem faced by the trade at the moment.

Everything is geared towards reducing emissions and much of the emphasis seems to be pointed towards vehicles and how we can reduce the impact that they are having on air quality. You may be wondering what we can do about it in the aftermarket; but one thing we can do is making sure the right part is fitted to the right vehicle based on the emissions standard of the vehicle in question – the Euro level.

Vehicles and replacement emission control devices must meet specific standards for exhaust emissions before they can be offered for sale in the European Union. Emissions limits are commonly referred to as Euro standards or levels.

Emissions are measured using a standardised test cycle called the New European Driving Cycle (NEDC). The NEDC was last updated in 1997 and is gradually
being replaced by the World Light Test Procedure (WLTP), which is designed to better replicate real driving conditions. WLTP is now being applied to new vehicles (types) but does not yet apply to replacement parts.

In order to test the durability of each part emission test results are most frequently multiplied by a deterioration factor; with the adjusted result then compared to the legislative limit. Deterioration factors are designed to simulate the likely change in performance of the part after it has aged with use over time. These deterioration factors have become more stringent over time, and so when coupled with the gradual lowering of limits it becomes considerably harder to achieve a pass when testing newer parts and newer vehicles. The largest increase in deterioration factors occurred between Euro four and Euro five.

In order to meet higher emission standards, it is frequently found that the OEM part is made to a higher specification than the lower EU level part it has superseded. Legislation requires a comparison of performance between a replacement part and its OE equivalent and so it naturally follows that tougher standards + higher deterioration factors + higher performing OE parts = a real need for a higher specification replacement part.

RIGHT LEVEL

The Euro level of each vehicle prescribed at the point at which that vehicle is Type Approved. A replacement part cannot be approved to a lower Euro level than that of the original vehicle; so if the vehicle is Euro five then the replacement must be approved to Euro five levels/limits. Testing and approving this part to Euro four would mean that it cannot be proven that it meets the relevant emissions standards and therefore cannot legally be fitted to any Euro five vehicle.

There are many catalytic converter and diesel particulate filter (DPF) references that appear to be physically identical but are, in fact, designed and approved for vehicles that carry different Euro levels. This is made possible as the internal specification of the part is largely the key to the emissions performance of the vehicle. For example, the Euro five version of the close-coupled cat for the Citroen C1 requires a specification that is more than 3 times that of the Euro four version of the part. A similar story is true of the Euro four/five Fiat five00 and Ford KA. Quite apart from it being illegal to fit the Euro four version to a Euro five vehicle, it will cause poor emissions performance with a much higher chance of related vehicle issues and potential part warranty returns. It can be easy to source the cheapest product which isn’t necessarily approved to the correct Euro level – the consequence of which is then a part that will actually not perform to the standards required.

CATALOGUE
The correct cataloguing of aftermarket parts is complex and challenging and many consumers will not be aware of the Euro level of their vehicle. It is therefore down to the garage and parts distributor to ensure that the part that is being sourced is approved for sale to the correct Euro level of the vehicle in question. This is something that has recently been identified as a “problem” in the aftermarket whereby parts can be physically the same, catalogued with the same start and close dates yet be very different both in terms of the internals and what they are legally approved for sale to fit.

In an effort to reduce the number of occasions that the incorrect part is being supplied and fitted to the vehicle, MAM (Autocat) will shortly be introducing the Euro level as a search criteria when identifying the correct part for a particular vehicle. Manufacturers of catalysts and DPFs will be asked to submit the Euro level for which their part has been homologated to enable an accurate match upon lookup. This is a positive step that the aftermarket is taking to reduce vehicle emissions.

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ELECTRIC VEHICLES VS THE AFTERMARKET

ELECTRIC VEHICLES VS THE AFTERMARKET

What challenges does the lubricant industry face? With impending bans on traditional vehicles and increasing market share of EVs

At the end of last year, the UK media reported a sixth month consecutive decline in sales of diesel cars. UK Government’s uncertainty about how to treat vehicles once classed as ‘the green option’ has led to consumer caution about buying cars that might be subject to higher taxation in future.

In July 2017, the UK Government declared that from 2040, sale of motor vehicles powered with internal combustion engines, petrol or diesel, would be banned. This followed similar announcements made by the French Government earlier that year. Even Original Equipment Manufacturers (OEMs) followed suit with Volvo and more recently Jaguar Land-Rover announcing the end of petrol and diesel car sales from 2019 and 2020 respectively.

The impact on the automotive sector, its fuel and lubricant sales, as electric vehicle sales increase cannot be underestimated.

Barclays’ analysts reported that if electric cars with greater efficiency increased to one third of the current automotive sector, this would cut global oil consumption by 3.5 million barrels a day by 2025. This is roughly the equivalent of Iran’s current supply of oil at 3.8 million barrels a day that is the Organisation of Exporting Petroleum Countries (OPEC)‘s third largest member.

Globally, demand for oil is still growing. In their 2017 outlook OPEC signalled that the medium-term demand for oil for the period 2016–2022 would increase by 6.9 million barrels a day, rising from 95.4 million barrels in 2016 to around 102.3 million barrels a day by 2022. Developing countries are expected to account for the majority of this increase, with demand expected to increase here by 43.2 million barrels a day in 2016 to 49.6 million barrels a day by 2022.

A cut in automotive demand for oil would effectively wipe out half the expected increase in global oil demand by 2022. But globally, the demand for oil would still increase.

Transportation is expected to remain the largest consumer of oil products, both fuel and lubricants, well into 2040. Much of the sector faces weak competition from alternate sources of fuel and lubricants although improved efficiencies, the rise of hybrid or electric vehicles and a tightening of energy policies will help to decelerate increases in the demand for oil from this sector.

WHAT IS ALLOWED?
Details of the French and UK Governments’ decision to ban conventional internal combustion engine vehicles is still vague. Will hybrid vehicles still be allowed? What about heavy goods vehicles or diesel powered public vehicles such as taxis? Some analysts believe that Governments might have kicked an emissions issue aligned to poor air quality into the long grass. The UK faced with the prospect of fines by the European Union over the quality of its air in cities, needed to be seen to be doing something positive about the issue.

Today’s vehicles are cleaner and leaner than those of ten or twenty years ago. Exhaust after treatment devices, both catalytic converters and diesel particulate filters, have removed many post-combustion harmful gases. Car scrappage schemes promoted by both Government and car manufacturers have incentivised owners to replace ageing vehicles with more modern cars. Changes to car taxation duties reward cars with lower emissions.

Electric cars might not be the panacea for everyone. Limited battery range and the high cost of lithium power cells means that extended ranges between charges of 300 miles or more are not yet a reality. As local town run-arounds or shopper cars, electric vehicles provide a viable alternative to conventional vehicles for journeys typified by short local stops. For longer commuter journeys then electric vehicles alone do not currently provide a realistic solution in the absence of a national and comprehensive electric charging network.

Much needed investment in electric charging stations along major motorway routes and trunk roads still remains in short supply. The Petrol Retailers Association (PRA) gave evidence to UK Government’s Automated and Electric Vehicles Bill Committee in November arguing against proposals to mandate electric vehicle charge points in petrol stations and motorway service areas. Although subsidies exist for domestic installation, the Bill proposes that a larger commercial network of charging points would be paid for by fuel retailers who would, by implication, pass the charges back to motorists. Government would not fund such a scheme.

REQUIREMENTS
In terms of engine oil and lubrication requirements, hybrid vehicles act in a slightly different manner to more conventional vehicles. A distinguishing feature of hybrid electric vehicle is that the conventional engine switches off when the power available from the electrical cell exceeds that needed to propel the vehicle. This results in lower operating temperatures and higher stress during stop/start for the conventional engine, which could lead to increased sludge and varnish than that of conventional engines.

What of service intervals? In the UK, service intervals of 12,000 miles are usually expected by motorists. In America, some dealers are claiming that hybrid vehicles require oil changes every 5,000 miles or 10,000 miles if using a synthetic, more typical of conventional cars sold in that country. The move to lower viscosity oils could also confuse matters if a motorist has been used to using a 5w30 engine oil in their hybrid ten years ago and today the same, but newer, model of their much-loved car requires a lower viscosity lubricant of 0w20 or less.

For the aftermarket, although electric cars might prove a challenge today, a hybrid car is a more popular and obvious choice for motorists. They provide the assurance of extended ranges for longer journeys similar to that of conventional vehicles, with the benefit of lower emissions under town centre driving conditions.

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EXERCISING CAUTION WHEN HANDLING COMPLAINTS

EXERCISING CAUTION WHEN HANDLING COMPLAINTS

No matter what industry you work in, there will come a time when you receive a complaint based upon the services or goods you have provided.

Unfortunately, the automotive industry is no exception, and it can be easy to see such complaints as an unjustified attack on your company’s good reputation. In the heat of the moment, aggrieved business owners can jump to the defence of their company, engaging in a war of words with the complainant.

According to Gemma Carson, Head of Dispute Resolution at law firm Wright Hassall, they could do more harm than good: “Naturally, business owners can feel like they have a duty to protect their employees, and without thinking, fire back with an angrily worded email, expressing their displeasure with the original complaint.

“When emotions are running high, it is easy to get involved in a heated debate about the rights and wrongs, mistakes and failures, or actions and inactions of one party or another. It is at this point that things can escalate quickly and easily get out of control.

“The most serious issues can occur when promises or threats are made without due consideration given to any existing contractual agreements between the two parties.

“To reduce the risk of worsening the situation, there is plenty that can be done and it should start with a careful consideration of the content of the complaint. The pressure may be on, but take your time and ensure you make no commitments and no threats.

“Allow yourself time to properly cool down before sending a response, as emails sent while emotions are still running high have a nasty habit of biting back later down the line. “Instead, begin by drafting your email and save it to your ‘virtual mantelpiece’. This will give you time to review the situation and think carefully about what you want to say, instead of hitting back with a knee-jerk reaction.

“It is also important to check whether a service agreement and/or a contract exists between the parties. You should read any agreements carefully and check what they actually contain.“With an agreement in place, you may be able to respond to the complaint by highlighting any relevant contractual terms that may help you manage the situation.

DON’T IGNORE
“When dealing with a complaint, it is important to be proactive. By acting quickly, you can help diffuse the situation without the need for any legal involvement.

“Personal, face-to-face meetings will often help resolve issues before they can escalate. It is best to either raise the matter directly or if you suspect it to be more serious, to seek legal advice before you make contact.

“If it does feel serious, you should ensure you retain all of the relevant information relating to the complaint, including documents, correspondence and any products or specimen products from the same batch. It can help if you carry out and document any inspections of equipment or machinery.

GET HELP
“Seeking legal advice early on does not necessarily mean a serious legal dispute has arisen.

“Dispute resolution advice is very effective when delivered soon after the complaint is received, but your lawyers do not need to take an active role in the issue. They can offer strategic legal guidance focused on resolving complaint situations and diffusing potential disputes, whilst preserving the commercial position for the future.

“The most important legal factor to remember is that making a rash statement or taking a knee- jerk decision to stop providing your services or products, by sending that angry e-mail draft without first putting it on the virtual mantelpiece, may cause a serious breach of contract.

“If nothing else you risk a serious argument and potentially a threat of injunctive proceedings. In simple terms, a breach of contract can entitle the party affected by it to terminate the contract and then bring legal proceedings against you for damages.

“For this reason, sending that inflammatory e-mail without firstconsideringthe consequences could be a huge mistake that ends up costing time and money, both of which could be better spent managing or growing the business.

“Finally, where parties have become so embroiled that legal proceedings are not only threatened, but seem the only option, choose to work with experienced lawyers who understand commercial disputes and demonstrate a commitment to reaching an early, commercial and cost- effective resolution” concluded Carson.

Posted in CAT Know-How, Factor & Supplier News, Garage News, Retailer NewsComments (0)

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