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14 From Little Acorns

22 On Your Bike, Otto


50 Eco-Friendly Vehicles
58 Fewer, Bigger, Better
65 Logan’s Run
72 Cadillac Man
The Phoenix

Take any situation at any point in history and take everything at face value, or look at it in
black and white, and the whole thing looks cut and dried. But look at the underlying
strengths and weaknesses, which cannot be readily seen, apply some shades of grey, and the
situation changes dramatically. History is full of these anomalies, not least the recent Iraqi
War. This situation also applies when looking at the future potential of individuals, institu-
tions, companies or mergers and acquisitions. If the imponderables are taken into account, the
long term consequences of such decisions could radically alter these decisions. The best
decision maker is hindsight, which unfortunately comes after the event.
Size, or relative size, tends to skew the analy- would declare bankruptcy in the first decade reference to the Boardroom Edition of RMI
sis. For example, if an alien power arrived in of the new century, primarily because of their 101 (see details under this editorial), and the
our solar system and took a rudimentary bloated corporate structures and gung ho reaction to this memorable memento. The
look at our planet, using size as the yardstick, deals with the unions? Similarly, H.G. Wells response to this endeavour has on the whole
they would quickly come to the conclusion relied on our fear of things big and powerful been enthusiastic, with the majority of those
that the sperm whale is the dominant species to scare the bajeezus out of us with his “War approached realising the significance of the
on earth. A more detailed analysis would of the Worlds”, only to bring us and the project, but there are a few companies,
quickly uncover the fact that they are being Martians down to earth via the intervention thankfully in the minority, with rich and
harpooned out of existence, or at least they of a small and unknown enemy. And, if the honourable pedigrees that have decided not
are always under this existential threat. A truth be told, it was not the big muskets that to participate, mainly because of the current
closer look would rapidly reveal that the brought the New World to its knees, it was economic circumstances. This is most unfor-
groot meneer on the third rock from the sun, firewater and smallpox. This has been a long tunate, as their absence would not only
by a country mile, is homo sapiens. Even and convoluted introduction to get to the diminish this publication, it will be a snub to
closer analysis would show that this strange point of our cover illustration – David vs. the founders of the organisation and a disre-
species seems hell bent on wiping itself out, Goliath, and the suggestion that everything gard of the pioneers in forging its growth. It
by varying depths of hedonism, materialism is not always as it seems. Size is relative, and also reveals a dangerous mindset. Dangerous
and selfish behaviour. Apart from this self growth comes from small beginnings and big in that it is a form of self fulfilling prophecy.
destructive behaviour, what really terrifies decisions, and sometimes from unexpected I appeal to the current custodians of these
the human race does relate to size, but not quarters, this is the message of our cover, and organisations, “don’t laager yourself into
the big whales, rather the small bugs. And it of our cover story. Go to page 14, and make oblivion”. Honour your founders, honour
goes back a very long time. The history of your own conclusions and hypotheses, both your pioneers, honour their ideals, and hon-
mankind has shown decimations on a large in the macro and micro sense. This disserta- our your histories, and look forward to the
scale, and the usual culprits cannot be seen, tion on size is also relevant to my second next 101 years. Don’t come to regret a short
be it smallpox, bubonic plague, Aids, point, which is that size or longevity can also sighted and short tem decision.
Spanish Flu, and lately Swine Flu could be lead to complacency or even a touch of arro-
the next pandemic– this is what terrifies us. gance. Large or well established companies And finally, take a look at the heading for
Yet, from a foreign policy viewpoint or cor- should celebrate their roots, and honour this editorial – this is indeed WORDS IN
porate policy sense, we seem to have a blind their founders. This acknowledgement of ACTION, saying many things, whilst letting
spot, and size does seem to impress us and to humble beginnings, and remembrance of the reader see more than one message. This is
dull our senses. Who would have predicted what made a company great, is an integral one of ABR’s ideals, and hopefully some-
in the halcyon post war decades that behe- part of the continued success, or even exis- thing to celebrate in the future.
moths such as General Motors and Chrysler tence of that company. I make particular

w w w. a b r b u z z . c o . z a
Boardroom Edition
of RMI 101

T
rilogy Publishing has been com- motive industry to tell their stories, and to Publishing and the RMI will truly appreci-
missioned by the RMI to produce contribute to this rich tapestry of our pio- ate an enthusiastic response from the indus-
a prestigious edition of the history neering history. The editorial copy shall be try in compiling an accurate and magnifi-
of the RMI, and a history of the written by highly qualified and esteemed cent acknowledgement of the pioneers of
companies that contributed to the develop- journalists assigned the task by Trilogy the automotive industry in our country and
ment of the South African automotive Publishing, with the welcome participation something worthwhile to serve as a memo-
industry, in all its forms, over the past 101 of the companies involved. The compilation rable memento of our wonderful history.
years. Scheduled for publication in of RMI 101 shall commence in August
November 2009, the RMI 101 serves the 2009, and is scheduled for completion in Please contact Stanton Porter Marketing
primary purpose of celebrating the cente- October 2009, and distribution is planned at 012 654 2745; or Graham Erasmus at
nary of the Retail Motor Industry for November 2009, as it will serve as a 083 709 8184 or bigheart@iafrica.com
Organisation, whilst also informing the wonderful year end gift. We shall only be for more details on how you can partici-
automotive community of the role the allowing 101 companies, basically first pate at incredibly low rates. Don’t delay;
organisation plays today. The RMI 101 come first served, so we recommend that this opportunity only comes once every
issue has another exciting purpose – to pro- you indicate as soon as possible whether you 101 years!
vide a forum for the who’s who of the auto- wish to be involved in this venture. Trilogy

4 July 2009
Contents

8 10 12

4 The Phoenix Goliath vs David

8 What’s the Buzz

12 Focus on Forsdicks Forsdicks Approved Repair Centre

14 Cover Story From Little Acorns …..

18 Frankly Speaking Painting Your Wagoner into a Corner

20 MISA Minutes

16 Auto Topical On your Bike, Otto!

24 The Chery Story Keeping the Cost of Motoring Down

26 Health Care Managing Your Health

28 Customer C.A.R.E. Customer Relationship Management


Trilogy Customer C.A.R.E. Programme

34 Managing the Risks Under Pressure

36 Weighty Issues The Rapidly Disappearing Truck Market

38 Tony’s Take Economic Recovery or Alphabet Soup?

42 AutoZone Update A Comprehensive Service Offering

43 AIDC Automotive Industry Conference 2009

44 Personal profile Q & A with Stanley Anderson

46 Tyre Safety Tyres’ Contribution to Safety in Motoring

Publishing Editor Intelli-Driving Editor Gamble, Austin Advertising Sales:


Graham Erasmus Eugene Herbert Keeg, Howard Stanton Porter Marketing
083 709 8184 082 941 3785 McCleery, Roger Werner Kolver
Twine, Tony Tel: 012 654 2745
Commercial Vehicle Editor Correspondents Wilde, Fingal Cell: 082 577 8411
Alwyn Viljoen Beeton, Frank e-mail: abr@stanport.co.za
082 458 9332 Borlz, Baron Claude Published by:
Burford, Adrian Trilogy Publishing

6
Contents

14 56 72

48 Diamond Dialogues The Importance of the Automotive Aftermarket

50 The Tipping Point Eco-Friendly Vehicles

52 Industry Update Life Goes On

54 From the Cockpit Groenewald Shows his Class

56 Innovation See What You Mean

58 Capricorn Insights Fewer, Bigger, Better

60 AIDC Quiz 20 Questions

61 Wilde Things A Call to Alms

62 Robert Bosch 30 years of safe braking with Bosch

64 e-CAR The Deep Roots of the Goldfields

65 Burford on Brands Logan’s Run

66 Partinform Partinform Blooms in Bloemfontein

72 Vehicle Evaluation Cadillac Man

74 Corporate Conscience It’s More than just Business #2

75 Road Safety DWD as bad as DUI

76 Fast Wheels The Brawn Formula One Team Rolls On

77 The Last Writes


The publisher and contributors have done their best to ensure the accuracy of the articles and cannot accept responsibility for any loss or inconvenience sus-
tained by any reader as a result of information or advice in Automotive Business Review. The information provided and opinions expressed in this publica-
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e-mail: bigheart@iafrica.com 7
What’s the Buzz?

Hyundai and Kia Score at FIFA


Confederations Cup 2009
On 5 June 2009, Hyundai Motor Company and Kia Motors
Corporation, official Automotive Partners of the FIFA Confederations
Cup 2009™, performed the Official Vehicle Hand Over Ceremony to
FIFA and the 2010 FIFA World Cup Organising Committee South
Africa at the MTN Expo Arena and Conference Centre at Nasrec,
Johannesburg. The Confederations Cup serves as a dress rehearsal for
the 2010 FIFA World Cup South Africa™, and as the official
Automotive Partners Hyundai and Kia are supplying transportation
for the players, officials and VIPs for both events. The handover also
marked the launch of the right hand drive version of the Hyundai
Universe luxury coach in the South African market. Both Hyundai
and Kia see Africa as an important market, and they also see football
as a core element of their marketing strategies and as an efficient way
of communicating with customers by sharing their passion for football
and connecting emotionally with them.

The Subaru Impreza WRX sedan is back Bentley South Africa


and Deccan Chargers
VIP Cocktail Evening
The IPL Cricket Tournament may be over, but the
buzz continues. The Deccan Chargers IPL Cricket
Team, winners of the tournament, marked the
Bentley South Africa VIP Cocktail Evening hosted
at Bentley Motor’s Johannesburg Flagship, Pearl
Automotive, as thé function of the year. Fittingly,
the Chargers (whose franchise fees cost a whop-
ping US$ 107 Million!!), were guests of honour.

Subaru Southern Africa is going back to its roots, introducing a Subaru Impreza WRX in four-
door guise. The change to a four-door version of the WRX also signals a realignment of the
Impreza range, now rationalised to comprise a 2.0R sedan, WRX sedan and STI hatchback. The
updated Impreza range now comprises the 2.0R sedan 5-speed manual, which is expected to be
launched from R249 000, 2.0R 4-speed automatic from R259 000, the WRX sedan from R349
000 and the STI at R545 000. Pricing includes a three-year, 63 000 km full maintenance plan.
The 2.0R models continue largely unchanged apart from detail exterior changes, and ergonom-
ic improvements to the interior which further enhance its functional and user-friendly nature.
Under the bonnet is the free-revving 110 kW/196 Nm 1 994 cc DOHC Boxer engine, which
uses just 8.9 litres/100 km in mixed driving. The 2009 WRX gets a significantly more power-
ful 2.5-litre DOHC Boxer engine: the kW rating climbs from 169 to 195, while torque increas-
es by 23 Nm. Automotive Business Review will review these vehicles in more detail in next
month’s issue. Herschelle Gibbs and Chaminda Vaas were
the night’s Bentley Boys

8 July 2009
What’s the Buzz?

Made in Thailand
Exhibition
18 – 20 June 2009
The Made in Thailand Exhibition was
held at the Sandton Convention Centre
from 18 to 20 June 2009, the ninth con-
secutive year that this convention has been
held. A little known fact is that Thailand is
an automotive assembly hub for south
eastern Asia, with assembly plants varying
from BMW to various Chinese manufac-
turers. Of interest to the South African
motorist, is that the Mitsubishi Triton and
the Mazda BT-50 are assembled in
Thailand. Thailand has a distinctive repu-
tation as a quality service provider at com-
petitive prices.

TDAFA Awards
recognises tyre
industry
excellence
The Tyre Dealer and Fitment Association,
a constituent association of the Retail
Motor Industry organisation, held its
Inaugural 2009 Industry Awards function
Acclaimed local comic Dr. Riaad Winners: 2009 Equipment Supplier of the Year Award - Received
at the Bryanston Country Club recently.
This follow up event of the initial concept Moosa provided light-hearted punctu- by Neville Stevenson of SNAP ON / JOHN BEAN; 2009 Tyre
launch in May 2008 has in 12 months ation to the proceedings, acting as Supplier of the Year Award - Received by Mr Dustine Gascoyne,
gained substantial momentum, with an impromptu Master of Ceremonies Marketing Director of Goodyear SA; 2009 Dealership of the
excess of 200 guests including VIP’s of and introducing each of the evening’s Year Award - Received by Mr Imtiaz Tayob, CEO of the MALAS
Industry and Associated Businesses, speakers by inducing applause from Group; 2009 Non Rubber Supplier of the Year - Received by Mr
Government Officials, MEDIA, and vari- the assembled guests. Errol Innes of WILLARD Batteries
ous other Dignitaries. The TDAFA is fast
establishing itself as the relevant body
with regards to tyre and related issues
directly representing some 600 dealers The Bryanston Club has many private
and indirectly a further 1000 dealers. The meeting rooms – The Phoenix Room was
process administered in arriving at the of particular significance to ABR
final winners included an Independent
Survey Company individually phoning all
TDAFA members for nominations in the
various categories. “Our members are the
end users and distributors of the product
range, there are no better judges than
them!” said Vishal Premlall Director
TDAFA, and Consumer Affairs Manager
of the RMI. He went on to say that the
2010 Awards Ceremony will include two
more categories i.e. Industry Person of the
Year and Tyre Importer of the Year.
Luminaries of
Premlall said that he was confident the note attended
awards would encourage the tyre industry
to continuously “elevate standards from the function
the top down” thereby adding value to
consumers. “TDAFA’s awards evening is
fast becoming the most prestigious event
on the tyre industry’s calendar.” For more
information on the TDAFA please con-
tact Vishal Premlall at Tel 011 886 6300;
e-mail vishal.premlall@rmi.org.za; web
www.tdafa.co.za

July 2009
10
Focus on Forsdicks
A series of articles on
Forsdicks Sandton

Forsdicks Approved
Brand Pretorius, CEO
of McCarthy Limited Repair Centre

F
orsdicks is a member of the causes greater surface hardness, it also
McCarthy Group, South enhances the car’s resistance to environ-
Wide range of
Africa’s leading motor retailer, mental factors such as acid rain or bird
services
and in the words of Brand droppings. Forsdicks Approved Repair Centre not
Pretorius, CEO of McCarthy only offers body and paint repairs, but
Limited, “is a valuable member of the work such as wheel alignment, aircon
group, and our BMW approved collision repairs, and windscreen fitting is also done
repair shops represent a particular centre of in-house. All equipment conforms to
excellence because of their single minded BMW's stringent panel shop requirements
focus on quality, service and customer sat- and even the emissions are controlled
isfaction”. Forsdicks Approved Repair within BMW’s strict specifications to
Centre in Linbro Park, Johannesburg is a ensure a cleaner and healthier environ-
state of the art facility, designed after ment.
extensive research and planning, and
implementing some of the best practices
available at the time. From the offices to
the workshop, the design and equipment
layout was done to ensure the most effi-
cient output and workflow to the benefit
of the customer. Therefore, it is not sur-
prising that this facility is approved by all
major insurance groups and receives much
of its business from referrals from BMW
dealers and fleet owners. It is also not sur-
prising that for many years Forsdicks Wheel alignment
Approved Repair Centre has consistently
scored above 95% in the South African
Motor Body Repairs Association (SAM-
BRA) assessment.
Advanced paint
technology
BMW is committed to using environmen-
tally friendly, technologically advanced
processes to enhance the quality of paint-
work, both in terms of appearance and The Naja Electronic Body Measurement
functionality. While traditionally environ- Machine utilises main reference points to
mentally unfriendly organic solvents have check that the chassis is straight
been the number one ingredient in con-
ventional paint recipes, the paint used at
Forsdicks Approved Centre are water-
based which means that four-fifths of the
solvent is replaced with water. This means
that when the paint dries, the water that
goes back into the atmosphere contains a
minimum amount of solvent emissions.
Using the water-based paint provides just
the right conditions for applying the two-
component clear paint just before the car is The BMW DIS Machine reprogrammes
polished. The clear paint not only results the engine management system
in better gloss and brilliance, but because it
12 July 2009
Cover Story

From Little Acorns …….


If one is looking for an apt phrase to describe the Imperial Holdings Group, “mighty
oaks from little acorns grow” readily springs to mind. The acorn in question is Percy
Abelkop’s service station in Main Street, Johannesburg, which opened in 1946.These
humble beginnings belie what is now a group “with substantial scale in long-term,
sustainable sectors of the South African economy, weighted towards the transport
needs of individuals and businesses”.

The Chrysler Imperial, which served as the inspiration for the Imperial Group’s name. This is the 1960 model.

P
ercy Abelkop opened his service station after returning navigate some stormy seas in the late sixties and early seventies,
from the North African and Italian campaigns in and he and his recently appointed Group Administrative
World War II. He graduated to selling used cars, and Controller, an Irish émigré named Bill Lynch, took the brave deci-
in 1959 he opened a Pontiac dealership, and in 1963 sion to take on the then unfashionable franchise for Toyota vehi-
serendipity played a role when he acquired a Chrysler cles. A long and arduous path followed, as the seventies presented
dealership, trading at the time as “Barney’s Super Service Station”. many challenges, not least being the 1973 oil crisis, the 1976
Even though Percy Abelkop could not have envisaged the current Soweto riots, and a wildly fluctuating interest rate cycle. Who says
Imperial Group in his wildest dreams, he was prescient enough to history does not repeat itself?
realise that whilst Barney’s would make a great name for a circus,
it would not exactly bring a horde of prospective Chrysler owners The rest, as they say in the classics, is history. The Imperial team
beating a path to his door. The new name he chose for this deal- started to diversify, with forays into truck hire, leasing, and trans-
ership was Imperial, which was the flagship vehicle of the Chrysler port, which was an early indication of what was to come. In 1987
range. This, from a historical perspective, can be safely taken as Imperial listed on the Johannesburg Stock Exchange, and a trans-
the birth year of Imperial Holdings. Things did not go as smooth- port giant was born.
ly as Percy would have liked, with the nascent company having to

14 July 2009
Cover Story
Expansion into financial services in the late 80’s, international holds more value than our present.” Taking a look at Imperial’s
acquisitions in the late 90’s, and the leveraging of mobility expert- track record, these are not idle words. Consider that in 1987
ise into aviation and tourism in the early part of this decade, fol- Imperial’s revenues were R159 million with a pre-tax profit of R8
lowed. Today, despite a global economic crisis not seen since 1929, million, and its market capitalisation was R35 million. In its 2008
the Imperial Group, through a restructuring and consolidation Annual Report, Imperial reported revenues of R56 billion and pre-
process in 2008, is in a sound position to renew its sterling growth tax profits of R2,1 billion, and a market capitalisation of R11,2 bil-
record when the good times return in the not too distant future. lion. This, however, does not tell the full story. To get a better idea
of Imperial’s record and potential, one needs to look at what
This quote, taken from Imperial’s Annual report 2008, puts it in a Imperial was achieving before its unbundling of its Leasing and
nutshell, “When examining Imperial today, one finds a diversified Capital Equipment division, and the closure and sale of other busi-
industrial services group with three clearly defined clusters – nesses. In 2007, Imperial’s market capitalisation was R29,7 billion,
Logistics; Car Rental and Tourism; and Vehicle Retailing. These its pre-tax profit was R3,6 billion, and when its share price touched
are the areas of Imperial’s focus. However, we should not be meas- record levels, someone who had invested R6 750 in 1987, could
ured only in terms of what we are today, because we are creating have sold their shares for R1,75 million. That same amount, if
new centres of growth for tomorrow. In keeping with Imperial’s invested in a fixed deposit at 10% p.a., would have been worth
history of broadening its horizons into new fields of business, we R45 000. Even Warren Buffet would celebrate with a few cherry
will continue to pursue opportunities that can be aligned to, and Cokes!
improve our existing operations. Therefore, we believe our future

The Imperial Genes are a Good


Fit for Imperial Auto Parts

I
mperial Auto Parts (IAP) do it well in one location, you can do it well in other loca-
has all the hallmarks of an tions, and from this you get geographical growth. Apply this
Imperial operation. Con- in equal measure to existing businesses and acquisitions, and
ceived in 2004 and opera- from these small bases, you get significant organic growth.
tional since March 2005,
• Decentralisation and Empowerment of Executives –
IAP falls under the Imperial Group’s Vehicle Retailing cluster,
Imperial operates on an intoxicating mix of entrepreneurial
and it as yet hardly rates a mention in the 2008 Annual Results.
flair, conservative financial constraints, strong marketing
The reason for this is that it is defined as “still being in the devel-
and solid operational structures. This is defined as a
opmental phase”, which suits the management team to a tee,
push/pull scenario which creates dynamic harmony, which
who consider themselves as being in a David versus Goliath sit-
when implemented with the correct nuances, results in the
uation; IAP being David, and the broader automotive parts dis-
best wisdom prevailing.
tribution market in all its manifestations, being Goliath. But
IAP does have the might of the Imperial Group behind them, • Business Building – Imperial is in the business of building
and thus they do not even need to unleash their sling. Their businesses. This requires time and patience, and needs a
mere presence is enough to make the automotive market sit up foundation on which the business can expand and prosper.
and take notice. Appropriate support and the correct disciplines are the
nutrients that sustain these businesses.
IAP is following the Imperial template to the letter, the essence
of which is encapsulated in six powerful and successful philoso- • Capital is a Valuable Resource – Imperial’s impressive
phies, honed and perfected over the decades since Imperial’s pedigree is in no small measure attributable to the belief that
inception: capital is a valuable resource. This universal truth, which is
often neglected and even spurned by new age entrepreneurs,
• Grass Roots Initiatives – without exception (but for
is the rock upon which this mighty oak is built. Corollaries
Aviation), Imperial’s vast empire has been built up from
that flow from this wisdom are the appropriate return on
ground level. All the divisions have grown from small start-
capital and the dictums that profits shall be re-invested and
ups. Logistics, Leasing and Fleet Management (since hived
that any venture must become self sustaining in a required
off ), Car Rental and Tourism, Distributorships, Motor
period of time.
Dealerships, Insurance and Banking, all did the acorn to oak
replication. • Mobility – Imperial sticks to the knitting! And the knitting
is “mobility”. Despite the recent restructuring, Imperial
• Prove a Theme – Imperial first “proves a theme”. Once
remains, quoting Hubert Brody, Chief Executive Officer, “a
proved, it pours resources and energy into its growth and
group with substantial scale in long-term, sustainable sectors
development. The motivation is that growth comes from
of the South African economy, weighted towards the trans-
innovation and finding a better mousetrap, and doing
port needs of individuals and businesses”. In other words, if
things differently, and well. Taking this further, if you can
it moves and makes sense, Imperial will get involved.
July 2009
15
Cover Story

The Genesis and Growth of Imperial’s


Automotive Aftermarket Initiatives
In 2004, the Imperial Group recognised that with its impressive logistics, car rental,
vehicle distribution and motor dealership footprint, that a presence in automotive
parts distribution was not only feasible, but imperative. From this recognition,
Imperial Auto Parts (IAP) was born, closely followed by an agreement of co-operation
with Mikar Spares (and eventually ownership), and further down the line the acquisi-
tion of Alert Engine Parts and Engineparts, both specialists in engine parts.

T
he fulcrum for Imperial’s foray into parts distribution was In recognition of the pioneering partnership between Imperial Auto
MIKAR, founded in 1999 by a group of eight enterpris- Parts and MIKAR, Fred Nasser received the Chairman’s Award at
ing and prominent spares outlets based in Pretoria, the 2009 Mikar Conference on 18th March 2009, a fitting tribute
as it was Fred who instigated this award some ten years ago.
Kempton Park and Johannesburg, who had banded together to
form a members co-operative focusing on respected brand names
Part of the evolution of Imperial Auto Parts, was the eventual coa-
and guaranteed local and imported product, and the identifica-
lescing of a strong management team to take IAP forward. This
tion of four essential elements of success:
management team comprises chief executive officer, Deon Botha;
• Customer Support sales and marketing executive Pieter van Deventer; financial exec-
• Unity of Members utive Janson Ponting; and procurement executive Terry Brand.
• Support of Suppliers This team has been commissioned by the Imperial Group to carry
• Effective Marketing Bill Lynch’s original mandate forward; i.e. to leverage off the
strong entrepreneurial spirit that is evident in South Africans of all
These elements would bring the benefits of collective buying
stripes, and to give these entrepreneurs the chance to go for it,
power, a recognisable enhanced image, access to quality branded
with no pre-conditions, all premised on the Imperial entrepreneur
product, combined advertising and promotional input, and mem-
business model. IAP’s message to the market is a mixed bag of rec-
bers’ participation in decisions. MIKAR was a product of the
titude, passion, vision and commitment:
times, and when Chairman Fred Nasser, who together with Derek
Blanchard was the driving force behind this creative adventure, • IAP will conduct itself professionally and ethically
was approached by Imperial Auto Parts in 2004, he recognised the • IAP shall provide the market with quality products at
synergies, and a handshake of enormous import took place at the affordable prices
offices of IAP in Bedfordview on the 28th October 2004. Less • IAP is dedicated to the independent entrepreneur
than five years later, MIKAR plays an important role in the strate- • IAP is here to stay for the long haul
gies of IAP, which itself has gone through a learning curve, and is • IAP is committed to bringing Imperial’s vision to fruition
now positioned to make a significant impact in the South African
Automotive Aftermarket.

16 July 2009
Cover Story
Deon Botha, chief executive Pieter van Deventer, sales and
officer, IAP marketing executive, IAP

“Imperial Auto Parts is now in a position “The culture of Imperial Auto Parts is
to offer its customers quality products, one of an entrepreneurial hands-on team
world class service and a professional that partners with like minded business
and ethical commitment backed up by a partners, be it customers, suppliers, who-
reputable organisation. We shall do this ever; in fact all stakeholders. Our focus is
with humility and enthusiasm, for the on nurturing close relationships to create
mutual benefit of our organisation and our customers. We shall a “unique” strength that bonds for the future, and puts us in a
quietly do our thing, and we shall never forget our mandate. My position to aggressively widen and deepen our footprint in south-
message to the staff of IAP and our customers is that arrogance ern Africa. To this end, we are relocating and expanding our oper-
shall be avoided like the plague.” ations in Cape Town, Durban and Nelspruit”

Janson Ponting, financial Terry Brand, procurement


executive, IAP executive, IAP

“We recognise that our strategic advan- “We source locally and globally to give
tage is world class information systems effect to our promise of quality products
and cash management. We have recently and competitive prices. Whilst we offer
implemented a state of the art ERP the world’s leading automotive brands,
(Enterprise Resource Planning) system, we also scour the world extensively to
which is a fully integrated system that seek out the best possible suppliers for
covers the A to Z of best practices. This is a multi-million Rand our RAPS in-house brand, providing a comprehensive range of
investment that enhances our business both upstream and down- quality tested and keenly priced alternative product for the cash
stream, and we shall continue to invest in processes that will give strapped motorist. Continuity of supply is our promise, so the
us the competitive edge in distribution.” supply chain becomes a key element of our strategy.”

Product Philosophy
The recent proliferation of vehicle brands and models in South Africa has meant that local component manufacturers have been unable
to keep up with demand, and the resultant gaps in product ranges has meant that parts distributors have had to look for alternative
sources to satisfy the market. This is a situation not of their own making, but to satisfy the needs of the burgeoning car parc, the dis-
tributors have no option but to look outside the country. Imperial Auto Parts has met this challenge with the introduction of an exclu-
sive brand, named RAPS (Reliable Automotive Parts Supplies). After an extensive and prolonged product development process, IAP is
now in a position to offer its customers a sound brand that has the necessary back up of a reputable organisation. The focus has been
on product where there is no local manufacturer, or to import to cover the gaps created by such a diverse car parc. Deon Botha, chief
executive officer of IAP, says that with this package, “we can provide our traditional and emerging customers not only with the well
known and well loved proprietary brands, which by default give the customers peace of mind, we can now give the broader motoring
community a house brand with acceptable quality, affordable prices, and that very important ingredient of assurance that their vehicle
can be maintained and kept roadworthy at reasonable prices.”

July 2009 17
Frankly Speaking

Painting Your Wagoner


by Frank Beeton into a Corner
As these words are written, it has just been announced that General Motors
Corporation, which was, at one time, the world’s biggest business, and, until recent-
ly, its largest vehicle manufacturer, has entered a judicial process known as Chapter
11 Bankruptcy Protection. Given the unfolding of global events since the emergence
of the so-called “subprime mortgage crisis” in the United States of America during
2007, including the subsequent cataclysmic imploding of new vehicle markets, and
several huge US government interventions to keep GM and cross-town rival Chrysler
LLC cash-liquid, this event was not entirely unexpected. It has, however, added to the
list of embarrassments recently suffered by vehicle manufacturers, including
Chrysler’s subsequent bankruptcy protection leading to a proposed merger with Fiat,
and debt restructuring measures which have become necessary at companies as geo-
graphically and culturally diverse as Porsche in Germany, and Tata in India.

B
efore proceeding any further, it would be just as well United Kingdom, Adam Opel in Germany, and Holden in
to record some explanation of “Chapter 11 Australia. In addition to the continuation of these individual
Bankruptcy Protection”, as this provision seems brands under the GM umbrella, other manufacturing and assem-
destined to play an important role in the restructur- bly plants were established in many other countries, including
ing of a number of substantial American businesses. South Africa. An important consequence of this policy was that
In very simplified terms, it is a component of the US bankruptcy the “mainstream” US products, which had previously been export-
Code allowing for the financial reorganization of companies while ed all over the world, became progressively isolated from overseas
they follow debt repayment plans, which does not require the liq- markets, and were used almost exclusively to service the huge
uidation of the business. During this process, the debtor compa- North American demand for vehicles, which peaked at 17 million
ny remains in control of the operation, as the “debtor in posses- units in Year 2000. This process began to reverse once foreign cars,
sion”, subject to the oversight and jurisdiction of the federal bank- particularly those of Japanese origin, began to make their mark on
ruptcy court. Two of the most important provisions of this process the US market from the nineteen-seventies onwards. One of the
are the automatic stay, which requires all creditors to cease their best examples of international product co-operation was GM’s J-
collection attempts, and the ability of the protected company to Car series medium sedan platform of the nineteen-eighties, which
reject executory contracts, typically with labour unions, dealers, was built in the US, Germany, Australia and Japan, and sold
vendors and customers, in which each party has residual simultaneously as the Opel Ascona, Vauxhall Cavalier, Holden
contractural obligations. Camira, Chevrolet Monza, Cadillac Cimmarron, Pontiac J2000,
Oldsmobile Firenza, and Isuzu Aska. However the American mod-
Although it is expected that GM will emerge, albeit in some fair- els were, predictably, a little more soft and showy than those built
ly radically altered form, after the Chapter 11 period, there can be and sold overseas. More recently, the purchase of bankrupt
no doubt that these recent events have shaken the very founda- Daewoo’s light vehicle assets in South Korea has established a new
tions of the formerly world-dominant American motor industry. value vehicle sourcing string which has benefited GM’s marketing
Only last September, GM celebrated its Centenary, and we were efforts across the globe.
reminded of its early history, starting on September 16th, 1908
when high school dropout William C (Billy) Durant incorporated Making some rational comment on GM’s current problems from
the company, which, at that time, only listed the Buick and a South African perspective is a challenging exercise, and it would
Oldsmobile brands among its assets. Durant’s perception, unpop- be impossible to cover all the manifold aspects in an article of this
ular among most of his contemporaries, was that a grouping of length. The real issues that have pulled GM down include a pro-
several carmakers under one corporate umbrella would have better gressively declining North American market share in the face of
prospects for growth than a stand-alone entity. Durant’s vision foreign competition, uncompetitive production cost structures
proved to be prescient, and, by 1916, Cadillac, Chevrolet, with a highly organised and expensive labour force, negligible
Oakland and GMC had joined the GM “family” that was to export potential for US-built products, and ever-tightening
emerge as the only serious rival to the then industry-dominant domestic fuel consumption and emission legislation. It also
Ford Motor Company. By 1926, GM, under the leadership of the became heavily dependant on larger cars and truck-based SUV
legendary Alfred P. Sloan, Jr., had eclipsed Ford’s dominance. products for its profits, while smaller, more fuel-efficient vehicles
were demanded by the market. In a situation of falling sales
One important aspect of GM’s history was its willingness to invest volumes, this developed, with frightening rapidity, into an unten-
abroad. Between the World Wars, it acquired Vauxhall in the able situation.

18 July 2009
Misa Minutes - By Dana de Villiers

MISA Benefit and Funeral Fund


This is an important part of the benefits which we provide to the MISA members. The
benefit is funded from the normal MISA membership subscriptions and no additional
contributions are required. A certain portion of the membership subscriptions is allo-
cated towards this fund to finance the benefits.

T
his fund is subject to annual audits by a professional audit- I want to share some statistics about this fund that have not been
ing firm, tabled at the annual general meetings of the shared previously and are not well known.
members in the various Regions for consideration and
approval and then submitted to the Registrar of Labour Relations. Since 1985 the benefits paid in respect of claims in total
These are all requirements which need to be complied with in amounts to R 58 864 167! (Yes R58 million).
terms of the Labour Relations Act. Many employees in the retail
motor sector think that they do not require a benefit like this as The breakdown of the abovementioned amount in respect of the
they are too young to think about that or they might be too young benefit categories is as follows:
to die, they have enough provision for funeral cover in the unlike-
Principal members: 3786
ly event of the member or dependants passing away and some are
just not giving it a second thought. Spouses: 1545
Children above the age of 14: 202
Firstly, none of us are too young to die and it is therefore never
too early to start thinking of this type of cover! Children below the age of 14: 109

Secondly, the question they need to answer is whether the provi-


sion they made ensures that the money is readily available to pay What are the benefits of
for the funeral when required or would the dependants have to
look to family and/or friends or even their employer to provide
this fund?
payment, until such time that the estate is wound up and the pay- • Membership is automatic so members don’t have to concern
ments and refunds can be made. themselves with obtaining funeral cover
• No additional contributions are required to fund the benefit
Whenever a family member passes away it causes grief and enor-
mous levels of anxiety and it certainly is no time then for the • Cover as from receipt of one weeks’ contributions
dependants to concern themselves with where and how they are • The benefit does not form part of the deceased members
going to access funds to cover the funeral costs. estate and is paid directly to the beneficiary

The MISA benefit is payable as soon as all the necessary and • Make use of AVBOB as the undertaker and MISA guarantees
required documentation is supplied by the claimant. The benefit payment of the funeral to the undertaker up to a maximum of
does not form part of the estate of the deceased and is paid direct- R6000-00
ly to the undertaker, if the funeral is arranged by AVBOB, and the • No commission is paid to brokers and the fund is adminis-
balance to the nominated beneficiary. If the family make use of tered as part of the union administration reducing costs sub-
another undertaker the benefit is paid to the beneficiary who then stantially
has to settle the account.

MISA legal representation


O
ne of the most important reasons for joining a trade the overheads which are the seen to be the easiest to manage,
union is to ensure that as a member you have access to although it may be very costly if done unfairly or for no real
professional legal advice and support where and when reason, is the employment costs.
appropriate.
Commission structures are continuously amended, pressure is put
In the overall picture not a lot of the MISA members are involved on employees to ensure more unit sales, obtaining more new cus-
in any form of disciplinary hearings or unfair labour practices. tomers, and customer satisfaction is the new flavour of the decade.
However, the insurance is required similar to motor vehicle insur- Keep the customers happy! General Motors are even implying in
ance. You might not need to claim for twenty years and then out their television ads on their “Red Tag Event” that it is required
of the blue you are involved in an accident, and not necessarily of and acceptable to neglect your family, no matter the
your making! consequences, just to sell more motor vehicles.
With the current state of the retail motor sector it is inevitable There is nothing wrong with managing these issues as an employ-
that employers are looking at ways of reducing overheads. One of er. The problems are generated by how these issues are managed.

20 July 2009
Misa Minutes
The retail motor sector has always had problems at middle to sen- business to Madikor as a going concern. There was a Manpower
ior management level as not a lot of focus is placed on developing Reduction Policy in place as part of the employee’s letters of
people management and communication skills. The lack of these employment. When Madicor initiated retrenchments they did
skills is normally what causes the problems in the workplace lead- not want to pay the retrenchment packages in terms of the
ing to disputes. Manpower Reduction Policy. They thought that a mere consulta-
tion in this regard and unilateral implementation would suffice.
The MISA members have access to a number of qualified and
dedicated people who focus on labour relations in the retail motor MISA represented our members and warned the employer to
sector. There are so many consultants and lawyers and even other adhere to the MISA members’ conditions of employment. The
trade unions selling their services to employees who have no idea employer ignored the MISA argument and paid reduced retrench-
of the content of the collective agreements or even the dispute res- ment packages. MISA duly declared a dispute on behalf of the
olution process in our sector. members and the legal process started.
The MISA representatives have a very professional approach to At all the legal forums where the case was heard MISA obtained
addressing the labour relations problems on behalf of members. the award in our favour and every time the employer would take
the next step in the process.
There are very specific principles which MISA adheres to which
sets us apart from other trade unions. What don’t we do? Eventually a full bench of the Labour Appeal Court ruled in
favour of MISA and our members. The employer had to pay a
• MISA does NOT create problems between members and their
capital amount of R 2 668 855 and interest of R 766 241 (a total
employers
of R 3 435 127) over and above the retrenchment packages paid
• MISA does NOT create unrealistic expectations with our at the outset on behalf of the 12 members.
members
The added benefit to the MISA members is that they did not have
• MISA does NOT only listen to only one side of the problem to pay a single cent towards the legal expenses and none of the
money is retained by MISA to offset any legal expenditure. Had
• MISA does NOT walk away from a member who has a valid
MISA lost the case the same would have applied in terms of the
case
legal costs.
• MISA does NOT charge members additional costs for legal
Not bad for a “small, useless, irritating, of no real consequence
representation at whatever level
trade union” for which the employer and its legal representative
• MISA does NOT retain any money from settlements reached were not scared of!
or awards obtained on behalf of members to offset legal
I don’t want employers to be scared of MISA. I don’t expect
expenses
employers to like MISA. I do know that they will respect MISA,
I would like to use the case against Madikor Drie (Pty) Ld as an the principles we subscribe to and the way we protect the interest
example. In 2002 Henred Freuhauf (Pty) Ltd sold a portion of its of our members. Even though some of them will not admit to it!

The MISA members and legal team in the Madicor Drie (Pty) Ltd Labour Appeal Court case: Front row: J Rebelo, E Pearce, H Barker,
B Lock (Attorney), M Keyter (National Legal Advisor). Second row: A da Costa, J dos Santos, T Cozen, J Thuysse, L Thuysse
Third row: J Blignaut, M de Sousa, J Nortjie, C Beyers

July 2009 21
Auto Topical

by Tony Twine,
Senior Economist,
Director –
On your bike, Otto!
Four major technology groups seem set to vie for the attention
Econometrix (Pty)
Ltd of motor vehicle producers and their customers, in the not too
distant future. Broadly speaking, they are the charge-and-go
electric battery platform, the charge-as-you-go hybrid platform, the hydrogen powered
fuel cell platform and the mighty mouse micro engine which uses conventional petrole-
um based fuels in tiny engines with exponentially improved power and torque delivery
characteristics. Vehicle technology available by 2015 or 2050 may be difficult to imag-
ine right now, but it seems highly likely that one of these four technical design plat-
forms will develop at the expense of the other three, probably within the next decade.

S
ome of the possible technology ANC alliance back home in South Africa. Consumer tastes react to the strangest stim-
groups overlap with the others. None of the four major technology groups uli, defying both logic and prediction.
For instance, battery powered, sketched above features renewable energy, Who could possibly have foreseen that an
hybrid and fuel cell cars would not even the hydrogen fuel of the fuel cell 80% increase in the petrol price between
all rely on electric motors. option, although it possibly comes the clos- January and June 1970 would initiate
Hybrid and mighty micro est. While the world is full of hydrogen, the hatchback revolution in the South
engine vehicles would both burn petrole- most of it is attached very firmly to other African car market? Combined, the Golf 1
um fuels, and so on. Hybrid vehicles, elements, and will require energy to per- and Mazda 323 of the time had struggled
which use small conventional internal com- suade it to part company from whatever it to collectively achieve 4% market share. By
bustion engines to provide power and happens to be bonded to. Energy equals the first half of 1980, they were regularly
charge batteries, are already well established pollution, at least until the practical achieving 42% between them. Why?
through the availability of two generations harnessing of renewable resources, or the Ostentatious consumption in an inverted
of Toyota Prius SUV’s. Various producers solving of nuclear waste disposal dimension, and who says that it cannot
are currently falling over themselves to puzzles. happen again?
bring battery powered electric vehicles to
the roads. Fuel cell powered vehicles, where For some years, hybrid vehicles appeared to
hydrogen gas passes across a platinum grid, be on the front foot as the next automotive
leaving electrons behind to be used to technology phase, but the oil price shock of
charge batteries and power motors, are 2008 heightened the level of criticism of
already available, but have several hurdles even these gas-sippers, with the realisation
to go before becoming truly practical. that outside of heavy urban traffic condi-
Mighty micro engines, which are small dis- tions, they used nearly as much petrol as a
placement turbo boosted petrol and diesel reasonably economical conventional
units, are nothing more than direct descen- vehicle would on the open road. Enter
dants of engines that have been around then the mighty micro engine vehicle
since the term Otto-Cycle was born. which is no scientific breakthrough, but
simply a way of doing more with less,
A number of global developments may which was for years pure anathema to the
appear to be aligning themselves to acceler- worlds largest automotive market, that of
ate the take-up of new technologies in the the USA.
automotive market place. Not the least of
these must be the scare that the vehicle But the current favoured son of the
users, manufacturers and politicians alike Internal Combustion Engine appears to be
were given during 2007 and 2008 by the what had become a prodigal son when the Ken Ken 8 x 8
seemingly unbridled rise in the price of oil. first hybrids made their appearance, name- How to Play:
While that particular pressure point may ly the rechargeable electric car. There are Like Sudoku, even though difficulty may vary
well have been created by financial sector several that had either been (slightly prema- from puzzle to puzzle, the rules for
operators, who have largely but by no turely) shown at the international motor playing KenKen are fairly simple:
means completely slunk off to hide in the shows of the past 12 months, with some For a 8x8 puzzle, fill in with the numbers 1-8.
ruins of their formerly mighty institutions, breakthroughs in battery technology, for a • Do not repeat a number in any row
it certainly acted as either a premature or long time a stumbling block of the vehicles, or column.
timely warning of an event which is sure to having clearly been achieved. Too bad • The numbers in each heavily outlined set of
come back more permanently at some time about the pollution aspect, though, as one squares, called cages, must combine (in any
in the future. inevitably has to burn coal or oil in a order) to produce the target number in the
nuclear shy electricity generating environ- top corner of the cage using the mathe-
matical operation indicated.
Apart from global oil supply and demand ment, to charge the beasts.
• Cages with just one box should be filled in
considerations, there are mounting con- with the target number in the top corner.
cerns regarding the polluted health of the But the technologists can invent their way • A number can be repeated within a cage as
planet. Green is the attitude of choice to obscurity, whistling anthems of change long as it is not in the same row or
across almost all political parties, from the through their exhaust manifolds, if con- column. Answer on page 76
mightiest at the helm of the USA, to the sumers do not want to change their tastes.

22 July 2009
A series of articles on the rise of the Chery automobile

Keeping the Cost of


Motoring Down
– the Chery Way
Times are tough for the motorist, and to add to this
burden the cost of new vehicles has been going up
relentlessly this past year. And motorists in the market
for a new vehicle need to do their sums in more ways
than one, because it is not just the initial purchase
price that has to be taken into account when purchasing
a new vehicle. It is the service costs and the price of
crash parts that also need to be closely scrutinised,
and availability of these parts will also become a major
Mike Dawson, After Sales Director
factor if your car is off the road and in need of repair. of McCarthy Vehicle Imports

I
t is these factors that exercise the minds of
McCarthy Vehicle Imports executives when they
consider the introduction of a new model, and they
urge the consumer to do exactly as they do when
looking for a car – do the homework! Mike
Dawson, After Sales Director of McCarthy Vehicle
Imports, says that the homework they do before introduc-
ing a car is a comprehensive market study on the cost com-
parison of the Chery vehicle to a similar vehicle in the mar-
ket, involving a parts basket of at least 200 parts, compris-
ing a mix of service and crash parts, and other replacement
parts, and to sharpen the pencil to ensure that the Chery
replacement prices are typically 30% or more below the
competitive brands. Assistance from Chery in China, in
the form of lower FOB prices, is sometime solicited to
ensure that this promise is kept. The upshot of all this is
that anyone buying a Chery vehicle not only gets a very
reasonably priced vehicle, but they also get very good parts
prices, comparatively assessed, and McCarthy Vehicle
Imports goes even further by ensuring that the Chery serv-
ice centres also charge industry beating labour rates, pro-
viding the Chery vehicle owner with an extremely compet-
itive and attractive motoring cost package. The proof of the
pudding is the latest Kinsey Report, which rates the Chery
QQ3 0.8 as the cheapest vehicle to maintain in the Entry
Level Category, when it comes to the basic service parts,
comprising air filter, oil filter, fuel filter, spark plugs, wiper
blades, front brake pads, and rear brake pads/shoes. The
Chery QQ3 0.8 also comes out tops on the “major” serv-
ice package, comprising front and rear shocks, fan belt,
front brake disc, cam belt/timing chain, clutch kit, water
pump, radiator, radiator cap, and thermostat. The Chery
QQ# 0.8 also holds its own in the crash parts segment. The
aforesaid confirms the promise made by McCarthy Vehicle This sign is prominently displayed at all Chery service outlets, specifying exactly
Imports, that they will offer a comprehensive and afford- what you will be charged for the respective services – which confirms the trans-
able package to the cash stressed motorist. parency of the process
24 July 2009
health care

MOTO Health Care


In our May newsletter to all members, Murida Khan indicated in her message that the
time to consider benefits and contributions for 2010 is upon us because there are a
number of deadlines that have to be to met. The Board of Trustees depends heavily
on MHC’s consultants in this process. In order to give members an insight into how
this process unfolds, I invited Roseanne da Silva of Toth Resources CC, actuarial
consultants to MHC, to tell how this happens. This is what she had to say:

T
he Board of Moto Health- tricky process in the current economic is affordable for members but they also
Care has the task of deter- conditions. They will also need to consid- need to ensure that the Fund is responsibly
mining the benefits and con- er whether any benefit changes are likely to managed and that it will remain solvent in
tributions for the benefit cause members to change benefit options. the long-term. If the Board feels that the
options in 2010. This is a All members will have the opportunity to levels of required contribution increases
complex and difficult process as it requires select their benefit option at the beginning are too high, they will revisit the proposed
the Board to balance offering a compre- of 2010. benefit levels and even consider restructur-
hensive level of benefits while also ensur- ing some of the benefits.
ing the contributions remain affordable.
Once the budget and contribution rates
The Board has already embarked upon the have been determined they need to be sub-
process of benefit review. This involves mitted to the Registrar of Medical
analysing the current utilisation levels and Schemes for approval. The deadline for
investigating any trends and variations this submission is the end of September.
from what was expected when the budget The staff at the Registrar’s office will scru-
was prepared last year. The Board consid- tinize the assumptions made in drawing up
ers whether categories of benefits should the budget. They also focus on the impact
be enhanced or reduced and even whether of contribution increases on members and
new benefit options should be introduced. they will often request further information
During this process the Board relies on from the Board to justify their decisions.
actuarial analysis of claims data as well as
feedback received from members and the Once the Registrar of Medical Schemes is
Scheme’s staff and the administrators who satisfied that the contribution increases are
are regularly interacting with members. reasonable, the Scheme may embark on
communicating the benefits and contribu-
One of the particular challenges is address- tions for 2010 to the members. This
ing new medical technology. New tech- process is expected to start in November
nology can mean, for example, that surgi- and members will be given the opportuni-
cal procedures can be performed quicker ty to select their benefit option for 2010.
or that medication has fewer side effects. Since not all members will respond to
But these medical advances are usually communications sent out by the Board,
associated with higher costs and the Board the Board will also determine a default
has to consider carefully whether the addi- basis for members who do not indicate
tional cost is justified. This is very impor- their benefit option choice. This usually
tant since ultimately all the costs covered means that they remain on the same
by the Scheme are funded from the mem- option as they were on in 2009. Even if
bers’ contributions and so additional costs Barry Canning, Chairman Board of you are going to stay in the same option it
for new technology may lead to contribu- Trustees - MOTO Health Care is important to let the Scheme know that
tion increases. this is what you want to do.

Once the Board has drafted a set of bene- There are also administrative costs for the The budget process is particularly chal-
fits for 2010, a budget for the costs needs Scheme that need to be included in the lenging for the Board as it involves balanc-
to be calculated. This is done with the budget. ing a large number of factors to ensure that
assistance of the actuarial consultants to the interests of all the members are taken
the Scheme. They will estimate the utilisa- Combining all of these factors, the actuar- into account so that Moto Healthcare can
tion levels per benefit category and benefit ies will recommend a budget for costs to continue to offer an affordable and com-
option in 2010. They will also estimate the the Board. The Board will then need to prehensive range of benefit options in a
likely increase in the cost of medical serv- consider how to fund these costs. They financially sound manner.”
ices for next year. This can be quite a need to determine a contribution level that

26 July 2009
Customer C.A.R.E

Customer Relationship Management

– it’s all science really


An important aspect of CRM is that you make an effort to interact
with your existing customers. Why? Simply, because of our nature, we
are unwilling to change. We tend to stick to what we know rather
Theo Calitz has been
working in or involved in
than try the unknown. You do get the exceptions of course, the pio-
the motor industry for the neering spirits among us, the people that just love trying something
last 16 years. A mechani- new every now and then. But these people are rare. We find that this
cal Engineer by profession, behavior of “sticking to what I know” for items and services of all
he is passionate about levels to be far more common. We are ceatures of habit after all.
customer care and his
company, T-R-M There is a law in science that describes this behaviour very well; it
specialises in automotive is called Newton’s First Law of Motion. What is says is the follow-
CRM for the automotive ing: “Every object persists in its state of rest or uniform motion in
industry and has been a straight line unless it is compelled to change that state by forces
doing it for 9 years. impressed on it.”

A
lthough this might sound terribly scientific it makes my customer thinks of your product or service. Remember, it is all
point very well. There are some interesting things that we about their experience, not if you are right or wrong.
can derive from this; firstly, things tend to stay as they are, d. Excellent recovery strategies. When you discover that something
unless an external force acts upon them. A force in CRM speak went wrong, make an effort to win back the heart of your cus-
could be a bad customer experience, a complaint that is not prop- tomer. It is worth it!
erly addressed or a friend that is really happy about a product or
2. If you are losing market share, you are doing a lousy job.
experience and keeps on talking about it. All this can be seen as
Think about it: your customer already uses your product
forces that can mobilise consumers to try that something else.
which means:
Conversely, if a consumer likes using a product, it is possible that
you can get them to try new products from the same brand, like a. They already know your product. You do not have to educate
Nivea, which started with products for women exclusively but are them and you do not have to convince them - at most you have
now also promoting products for men. If women were happy to to re-assure them.
use these products for themselves, it becomes quite easy to con- b. They already use your product – i.e. – they already know the
vince them to buy it for the men in their lives. benefits and they are comfortable with the brand.
c. They already accept the price as they are buying it currently.
Two things to be learned from this:
d. They might already tell their friends about it and therefore
1. If your customer complains, pay attention. Fix what’s wrong promoting your product for free!
– you do not want to disturb the equilibrium! The last thing
you want is to create a ‘force’ that could upset the comfort-
The best example can think of in terms of this principle is my wife.
able relationship the customer has with you. Mechanisms
She has a MINI Cooper S and she simply loves her car and pro-
that can be applied are the following:
motes it at every opportunity that presents itself. It is now three
a. Excellent customer care processes. This may include the use of a years down the line and I think it is time for something else.
Call Centre (one that works as intended!). Despite my best efforts, she is only interested in either keeping the
b. Quality control of your product or service to prevent bad prod- MINI (yes, the Motorplan has been extended already) or a get new
ucts reaching your customer. MINI. My efforts to get her to try other brands are met with sub-
c. CSI or customer satisfaction measurement to find out what your stantial resistance – Newton’s First Law of Motion in action again!

www.t-r-m.co.za
T 0861 TRM TRM
F 086 686 8382

28 July 2009
Customer C.A.R.E

Trilogy Customer C.A.R.E. Programme


– sponsored by Federal-Mogul

MODULE TWO - THE ROOT CAUSE OF BAD


CUSTOMER C.A.R.E.

I
n Module One we discussed the follows day, followers tend to follow the depending on the behaviour of their
problem of poor customer service in lead of their leaders. Take nations, as a clear leaders. Customer c.a.r.e. is exactly the
South Africa. In particular, the example. The history of nations is littered same. The customer service levels of your
surly, slow, uncooperative and with either good or bad results, depending company are in direct proportion to the
unproductive staff behind the coun- on the behaviour of their leaders; and the sincerity of management when it imple-
ters, telephones, etc. We also looked at the followers behaved accordingly, by watching ments customer care strategies.
basic essence of CUSTOMER C.A.R.E., what their leaders did, or watching what
which is the emotional and intellectual their leaders did not do. Nazi Germany is a SPECIFICS
understanding that C.A.R.E. means CUS- perfect example of how the followers, who Now that we have got the philosophical
TOMERS ARE REALLY EVERY- were an educated and cultured people, discourse out of the way, let us start look-
THING.We now need to look at the root were led into insanity by a small clique of ing at specifics. To do this, we need to
cause of bad customer service - manage- immoral and decadent thugs. understand the SECOND TRILOGY
ment! Management always claims that the TRUTH ( the first Trilogy Truth is rather
poor customer service their company deliv- The old South Africa became a blind and
esoteric, and therefore will be discussed at
ers is because of the poor quality of staff bizarre society through the acts of commis-
a later stage, when you are a little more
with whom they are forced to contend, and sion by its leaders, and the new South
steeped in the lore of customer c.a.r.e. ).
the reasons they put forward for this situa- Africa has become a corrupt and criminal
The SECOND TRILOGY TRUTH states
tion are varied, but the main culprits, the society through the acts of omission by its
that there are three very important steps to
hardy annuals that always crop up, are the leaders. This happens because the mass of
achieving superb CUSTOMER C.A.R.E.,
culture thing, or the education standards, followers, lemming like, watch how their
and that these three steps are indispensable.
or the poor socio-economic environment. leaders behave, and follow suit.
The first step is a commitment to yourself,
Yes, these are problems, but I still contend Individualism, unfortunately, is still a rare
the second step is a commitment to your
that the root cause of poor customer trait amongst the animal kingdom, over
company, and the third step is a commit-
service is management. To verify this which the human race has divine domain,
ment to your customer - in that order.
statement, just look at history, which in but still manages to mimic in comic
There are no short cuts in this process -
hindsight is an uncannily accurate meas- proportions.
you cannot be committed to your
urement. In one word, we are talking customer if you are not committed to your
LEADERSHIP. This applies to all human endeavours, be it
company, and you cannot be committed to
sport, religion, business, or the PTA of
your company if you are not committed to
Management should not only manage, but your local school. All the nations of the
yourself.
they should also lead. This applies to any world, all the religions of the world, all the
situation where there are leaders, and sport teams in the world, all the businesses
where there are followers. As surely as night of the world, have peaks and troughs, continued on p32

30 July 2009
Customer C.A.R.E
The three simple questions, ARE YOU COMMITTED?
You have one month to think about this.
I want you to analyse these three questions,
YES NO with sincerity and deep thought. Meditate on
these issues, shut yourself away for an hour or
1. COMMITMENT TO YOURSELF
two and clear your mind of all its clutter, and
think clearly and logically and objectively, as to
2. COMMITMENT TO YOUR COMPANY whether you are truly committed in these three
areas. Then tick the three boxes, with either a
yes or no.
3. COMMITMENT TO YOUR CUSTOMER
We shall analyse your answers in the next
module.
DISCUSSION POINTS
1. What is the essential difference 3. Give an example of an act of 5. Can you fake sincerity?
between MANAGEMENT and omission. 6. How do you measure sincerity?
LEADERSHIP? 4. Discuss the advantages and disad-
2. Give an example of an act of vantages of individualism.
commission.

32 July 2009
18 Months Warranty
managing the Risks
It’s been said a million times before that when the going gets tough, the tough get going. This cliché takes
on a new resonance when describing the truck industry. Times may be tough, but trucks are tougher, and
truckers are the toughest. This industry is literally the wheels of the economy, so thank goodness that when
the going gets tough, the toughest get going. A critical element in this dynamic is the ability to keep costs
down, and to ensure that operating costs are kept under tight control. The first port of call in this endeav-
our is to protect against theft and misuse. The first port of call in this endeavour is to protect against theft
and misuse. A close second is thinking smart and keeping costs down. ABR has commissioned Séan
by Séan Jackson Jackson of TRUCKTEK to give our readers a series of tips on Managing the Risks.

Under Pressure
Séan Jackson is a music buff, so it was not difficult for him to pick some music for the
article this month on tyre monitoring systems. “Under Pressure” was his immediate
response when asked the question, and whether you are a David Bowie fan or a Queen
fan, you’ll agree that Séan’s choice is most appropriate , because if you are running a
fleet of vehicles, you will understand the importance of the tyres being under pres-
sure, and if this vital aspect of fleet management is not given the management it
deserves, then the fleet manager and the bottom line soon come under pressure.

I
n this article Séan Jackson returns to We have a few more aspects to discuss, but
his favourite theme when discussing in this month’s issue it is the turn of tyres,
ACTSENSOR IT!
• Advanced Tyre Pressure Monitoring
the management of risks – it all and the need to look after them bearing in
starts with the driver! Look after the mind the job they do, the big loads that • Prevents Accidents
driver, and your costs will come are being carried, and the paramount • Unique Key
down; it is as simple as that. This applies to importance of optimum tyre pressures. • Easy to Install
every single risk issue which we have dis- Séan does not want to labour the point, • Totally Wireless
cussed; fuel losses, material losses, the role but he is emphatic that fleet managers need • Alarm Response
shock absorbers play in extending the value to understand the risks inherent in the • Suitable for Cars, Trucks and Buses
on your fleet, and safety, of course. event of a tyre bursting, and of the signifi-
cant effect on balance when a truck TRUCKTEK has chosen Actsensor-It!, an
loses a wheel – something a advanced tyre pressure monitoring system,
fatigued driver may not notice. known worldwide as TPMS, that supplies
This is why a tyre monitoring constant information to the driver of any
system is so important, and vehicle on all the operating tyres, whether
why it is compulsory in four or thirty two. This is a global system
America, and that legisla- with South African adaptations, and which
tion is being promulgated is perfectly suitable for our unique condi-
in Europe, and naturally, tions. The beauty of this system is that it
and hopefully, this will recognises that the driver is the first line of
soon follow in South defence, but it can also be linked into a
Africa. Safety is a big issue control centre, and can be incorporated
here, particularly for buses, into any fleet management system. The
and the many lives at stake at driver is kept aware of all the tyre pressures
one time. And you need to give of the vehicle via a dash mounted monitor,
the driver the necessary tools for or a rear view mirror clip on version, and is
early detection of tyre problems. warned visually and aurally when a tyre
pressure variance of 15% is detected.

Next month, Séan shall discuss this subject


in more detail, focusing on the dynamics
around tyre monitoring.

34
July 2009
weighty issues

The Rapidly Disappearing


by Frank Beeton Truck Market
Back in the April issue, we asked where the truck market was heading. Our concern, at
that time, was centred on a survey that had been carried out by Focus on Transport &
Logistics magazine among the management of truck suppliers at the end of 2008. The
consensus forecast for vehicles over 3,5 tons Gross Vehicle Mass (i.e, Medium, Heavy
and Extra-Heavy Commercials, and Passenger Buses) came in at just less than 28 500
units, suggesting a year-on-year decline of nearly 18%. Given that the then Finance
Minister Trevor Manuel, in his Budget speech, had given assurances that the govern-
ment’s R787 billion infrastructure development plan, including R50,9 billion
earmarked for specific transport-related expenditure, would still roll out, we thought
that the supply industry was taking an overly-conservative view, and was in danger of
forecasting itself out of business.

H
ow wrong we were! To be ber of new trucks, buses and vans had unlikely that this initiative would have
fair, it took some time for entered the South African vehicle parc dur- been unilaterally underwritten by the local
market analysts and fore- ing the boom market years from 2006 to banking fraternity, given their current lack
casters to fully appreciate 2008 has given operators the option of of risk appetite, so it presumably involves
just how difficult the extending the lives of their existing vehicles some element of risk acceptance by the
financing environment for commercial under the currently very difficult financing vehicle suppliers. In May, the market pro-
vehicle sales had become. We assumed that scenario. There is also the possibility that file showed a swing back in favour of the
the National Credit Act had settled down, some operators have chosen to defer their premium XHCV segment, following the
and that the prospect of steadily falling fleet replacement and expansion plans until bloodbath in this category earlier in the
interest rates would create a positive arena the global and local economic environ- year, and this suggests that these alternative
for the financing of vehicle purchases. It ments improve, but the magnitude of the credit arrangements are having an effect.
was only when MAN CEO Thomas downturn in the market has become
Hemmerich went public with his frustra- extremely difficult to rationalise. It is interesting to reflect on the fact that
tion that we finally caught on, and the sup- several vehicle suppliers have long-running
porting anecdotal evidence then started to One of the few potential bright spots in the joint ventures with local banks to provide
pile up. As it turned out, the market results market has also recently been dealt a severe financing facilities at sales outlets.
for the first quarter were considerably blow. Several metropolitan Bus Rapid However, it now appears that, once the
worse than anticipated by the captains of Transit projects were starting to take shape going got tough, these JV’s virtually
industry, and, five months into the year we early in the year, with Johannesburg plac- removed themselves from contention.
find the market no less than 47,3% off the ing orders on Scania for 143 BRT units, While acknowledging that there are risks in
volume reported for the equivalent five- while the Department of Transport book- extending credit to some truck operators,
month period in 2008. Unless things ing spaces for 570 buses and coaches on the the finance companies, presumably, have
improve radically, and fairly soon, reaching Mercedes-Benz and MAN production been in the business long enough now to
a final market total for the year of only 20 lines. However, the presumably well-inten- recognise a well-managed and viable opera-
000 units could become a major challenge. tioned efforts of President Jacob Zuma to tion when they see one. It is difficult to
defuse potential taxi protest action threat- believe that 80% of South African opera-
It is difficult to believe that the current ening the General Election by effectively tors have suddenly become unacceptable
market reflects the true level of demand for putting BRT implementation “on hold”, risks! However, the unavoidable conse-
new vehicles coming from the local trans- has thrown a mantle of doubt over the quences of an extended period of depressed
port industry, and frequent tales of a less entire process. Meanwhile, back in the vehicle sales will include the degradation of
than 20% success rate with applications for marketplace, some new factors have recent- operator efficiency, and consequent viabili-
credit by transport operators tend to bear ly emerged. Evidence of sales incentivisa- ty, and the exertion of considerable pressure
this out. We must also assume that the local tion in truck advertising, has reinforced the on truck manufacturers, importers, dealers
supply industry would have initially pro- view that stock availability is not a major and suppliers. When these players
cured inventory at a level to support its limiting factor. More importantly, certain inevitably reduce their level of exposure to
own 28 500 unit forecast, so product avail- vehicle suppliers have begun aggressively the downturn, the supporting infrastruc-
ability, at least in the first quarter of the promoting the availability of in-house cred- ture that has been painstakingly built up
year, should not have been a seriously lim- it facilities, in a clear response to the diffi- over the recent period of market strength,
iting factor. The fact that a very large num- cult financing environment. It is highly will start to break down.

36 July 2009
Imperial Auto Parts & Mikar would like to congratulate Martin Grobler
on winning a Honda ATV, sponsored by GUD Filters. Martin entered the
competition at Mikar Hursthill in Johannesburg.

Hennie Noortman from


Mikar Hursthill handing
over the keys to Martin

Another happy
Mikar customer

July 2009 37
Tony’s take

Economic recovery
by Tony Twine
or Alphabet Soup?
More than one general economic commentator and almost every motor sector supply side
participant have expressed their disappointment in the performance of new vehicle sales
during May 2009. The dismal performance of April had largely been written off to a com-
bination of both the state of the economic cycle and a host of special random impacts, such
as the number of public holidays, the way that they were distributed to form potential pock-
ets of extended autumn vacations by joining the holiday dots with a few days extra leave,
uncertainty around the election and the new leadership that it was bound to bring and a
general lack of both consumer and business confidence regarding short term economic
prospects.

I
n new vehicle show rooms, May evi- These two indicators, alongside the vehicle confronted by the historically high levels of
dently started off far more briskly sales results from NAAMSA, provide some debt, and debt to disposable income ratios
than other recent early monthly perspective regarding both business and that were accumulated during the 2003 –
periods but momentum fizzled out consumer confidence. The PMI, which 2006 boom, and which remain far from
around mid-month and struggled effectively moved sideways, probably being paid off. As the chart shows, debt to
upwards to its month end rate with some reflects the inertia in business confidence, disposable income ratios are currently still
difficulty. In the end, NAAMSA passenger despite the additional 100 basis point cut almost half as high again as they were at the
car sales were up a relatively small 9.5% in interest rates during the month of May, beginning of the last upturn in 2003. If
over the woeful levels of April, which bringing about a total so far of 450 basis that is the average for the household sector,
meant that a substantial number of sales points since December, and restoring the and with lots of households unable to bor-
which may have been expected simply prime overdraft rate to a level only 50 basis row from banks at all, it is easy to imagine
failed to occur. Released early in June, the points higher than it was at the low point what kind of ratio levels the more adven-
NAAMSA vehicle sales data for May was of the previous interest rate downturn turous borrowers of the past five years (yea,
accompanied by two equally up to date sta- (10.5% at the beginning of June 2006). verily, those who buy motorcars included)
tistics for that month in the form of the Impacting on business confidence is prob- may be confronting. It could take months
Kagiso-BER purchasing managers index ably the knowledge that the rest of the or years for the more tattered household
(PMI) and the First National Bank House world is in even deeper trouble than the balance sheets to be restored to the level of
Price Index. The PMI almost completely South African Economy is, meaning that respectability that lubricates the wheels of
mirroring the level of car sales in the exporters, and in turn, the people who sell bank loans. This is even more true in an
month had ticked up from a level of domestically to South African Exporters, unusual environment in which asset prices,
around 36 basis points to 37 basis points, continue to face unenviable sales prospects. especially house prices, have fallen contin-
which was scarcely a startling improve- With over 25% of South Africa’s GDP uously for more than a year. Which is
ment. The FNB house price index showed exposed to exports, the cascade effect of cause, and which is effect?
an annual nominal (unadjusted for infla- troublesome foreign sales environments
tion) decrease of 11% for May. This was quickly spreads through the rest of the Like those who relied on the oracle of
slightly down on Aprils result. business sector. Households continue to be Delphi, we could tip out the box of scrab-
ble tiles in the hope of gaining insight into
the economic recovery. May tends to indi-
cate that a V-shaped recovery is not going
to happen. There might have been a recent
relatively sharp recovery in items like com-
modity and equity prices, and the foreign
exchange value of the Rand, but interna-
tional market watchers are warning of a
possible W-shaped phenomenon, with the
recent up-tick in these prices forming the
upward sloping middle part of the dia-
gram. This writer suspects that we are cur-
rently at the beginning of the flat portion
of a U-shaped recovery pattern, and that
we could drag along the bottom for most
of the rest of 2009. If you prefer a greener
gardening metaphor, we might see some
green shoots as early as the third quarter of
2009, but be careful how you set your
lawnmower!

38 July 2009
Update

Spirex – A Comprehensive Service Offering


Hundreds of years ago, mobility was a privilege, rather than a right. You either used a
horse, or used your own legs to get from A to B, unless you were press ganged into the
army or navy, and then you did get around, but at quite a high risk, and you did not
choose where you were going. This limited your options, and it was only the wealthy or
the fit who managed to see the world beyond their limited confines. The steam engine and
the railways improved things somewhat, but it was only after Henry Ford brought person-
al mobility to the masses some one hundred years ago, that mobility took off, and then it
was still only really limited to the gainfully employed and the adventurous.

I
t was World War II that provided • Vehicle Maintenance Guide
the impetus to personal mobility, • Maintaining the Cooling System
and it became a God given right, • Maintaining the Wiper Blades
and owning a motor car was no • Installing the Spark Plugs
longer a sign of wealth, as it • Replacing Ball Joints and
became easily accessible to the common Tie Rod Ends
man. Even then, many motorists had to • Replacing the Battery
service their own vehicles, because proper • Replacing the Disc Brakes
maintenance was often out of the reach of • Replacing the Brake Drums
the cash strapped motorist. Since the sev- • Replacing the Brake Pads
enties, DIY has declined, due to a more • Replacing the Brake Shoes
well heeled population, and the propensi- • Replacing the Clutch Kit
ty of the modern generation to eschew the • Replacing the CV Joints
manual labour associated with vehicle • Replacing the Fan Belt
maintenance, and the proliferation of • Replacing the Filters
workshops and mobile mechanics offering • Replacing the Fuel Pump
good and reasonably priced service. • Replacing the Gaskets
However, with the recent global down- • Replacing the Globes
turn, and the pressing need to look after • Replacing the Oil
cash flows, the DIY market is reviving, • Replacing the Thermostat
and the younger generation is finding that • Replacing the Wheel Bearings
maintaining your own vehicle is not so • Replacing Universal Joints
infra dig. The problem herein lies in locat- • Replacing Worn Shocks
ing the correct parts at good prices, and
A further safety net is the 7 day a
the need for a helping hand in “how to”
week, 7am to 7pm technical hot
when replacing, installing or simply main-
line at 0800 200 993 whereby any-
taining your car. This is where AutoZone
one with a problem can get free
has stepped up to the plate, and their serv-
expert fitment advice from the
ice offering around their in-house Spirex
AutoZone pit crew. And for those
range of maintenance parts. The Spirex
with access to the web, the DIY books,
range offers quality parts for the cost con-
store locators, weekly specials, and much
scious DIY and workshop customer,
more is available at www.autozone.co.za
allowing for the service and maintenance
of vehicles at discounted prices, whilst still
fulfilling the primary need for peace of
mind.

The Spirex range, consisting mainly of


chemicals, lubricants and service parts, is
backed up by the other in-house brands,
like AutoKraft, AmPro, EcoTech and
Femo, to give the cost conscious customer
everything they need to keep their car well
maintained and roadworthy, without
breaking the bank. These parts are avail-
able from the 170 AutoZone stores locat-
ed right round South Africa, and available
at these stores are 22 DIY leaflets, offering
hints and tips on the following:

42 July 2009
AIDC Automotive Industry Conference 2009

High-level panel to debate


critical industry survival issues
eTV News anchor Jeremy Maggs will facilitate a panel discussion on the first day of
the AIDC's Automotive Industry Conference 2009, which will be hosted at the SA
Automotive Week in Port Elizabeth on 7-8 October 2009.

T
he first panel discussion will be in the form of a Barlow Manilal, Managing Director of the AIDC, told ABR that
high level debate about Vision 2020 – is it a fan- additional value is on offer to delegates at the Automotive
tasy or reality? Panel members include key figures Industry Conference 2009 as part of South African Automotive
in the automotive industry, Dave Powels Week, which includes the only NAACAM endorsed International
(NAAMSA President and VWSA MD), Brand Trade Show in South Africa. The Trade Show is focused on
Pretorius (McCarthy Holdings CEO), Steve Component Manufacturing, is for trade only and attracts buyers
Koch (GMSA President & CE) and Charlie Eggerding (VP, QAD and suppliers from throughout South Africa and around the
Software). The panel discussion will be followed by a session globe. Site tours to the Coega IDZ, an OEM and Fifa 2010
where delegates can address Soccer World Cup Stadium
questions to the panel. are among key networking
opportunities, which also
A second panel discussion will include golf and the famous
ask the provocative question: Gala Networking Dinner on
Does the SA automotive Port Elizabeth's blue flag
industry deserve a bailout? beach attended by the who's
Dr Matthews Phosa, ANC who of the automotive sector.
Treasurer, Trade and Industry
Minister Maria Ntuli, Coega Barlow says, “The global
Development Corporation financial crisis is exactly that:
CEO Pepi Silinga and global. It means that the South
NUMSA National Secretary Africa economy is feeling the
Irvin Jim have been invited to pinch and the automotive
participate in this discussion. industry is equally affected by
This panel discussion will be the global downturn. It is
also be followed by an interac- hurting both domestic sales
tive Q&A session. The and our export efforts. But,
keynote address will be deliv- instead of sliding into a state
ered by Dave Powels and dele- of depression over the nega-
gates will also be hearing tives influences now is the
about a rescue plan for the Attendees will be able to rub shoulders with leading lights across the time to work at improving
automotive sector from Kevin spectrum, among them, clockwise from top right: Dr Matthews Phosa, the fundamentals that will
ANC Treasurer; Steve Koch, GMSA President & CE; Brand Pretorius,
O’Marah, Chief Strategy McCarthy Holdings CEO; Barlow Manilal, Managing Director of the ensure a sustainable automo-
Officer from AMR Research, AIDC; Dave Powels, NAAMSA President and VWSA MD tive industry in South Africa
USA. Dr Neal Bruton, in the long-term”.
Response Group Trendline’s CEO, will discuss the status of eco-
nomic drivers for new passenger cars. Barlow Manilal, CEO of "The AIDC Automotive Industry Conference will address an
the AIDC, says that the theme of the conference is "NAVIGAT- industry in crisis. Industry role-players are seeing this as a plat-
ING THE STORM: A ROADMAP TO VISION 2020." The form to ensure that the industry is equipped with the credible
first day of the conference takes the form of a plenary session with information, resources, direction and sentiment that will allow
plenty of opportunity for discussion and debate. The second day automotive businesses to make the right strategic decisions for
sees delegates focus on specific areas of interest: Supply Chain their businesses," says Lance Schultz, Project Manager at the
Development, Supplier Development and Skills Development AIDC. Diarise the dates now! Conference fees for the two day
& Training. conference are R4,069 excluding VAT per delegate. The early bird
conference fee presents a saving of over 15% if registration is com-
Minister of Education, Dr Blade Mzimande, has been invited to pleted by 31 July 2009. Early bird fees are R3,176.00 excluding
address delegates on the second day before they split into the VAT. To register, visit the
focus areas. Topics range from practical guides to managing sup-
ply chains for South Africa, to cost saving case studies, innovation For more information about opportunities at
and the impact of attracting investment to the SA automotive SA Automotive Week please contact Alastair Stead at
industry on the skills crisis. alastair@inkanyezi.co.za call him on 041 363 0310 or visit
www.saaw.co.za.

July 2009 43
Personal profile

by Roger McCleery
Q&A
INTERVIEW WITH STANLEY ANDERSON
South Africa has produced a host of top motor men who have taken
their companies from way down the list to become leaders in the
industry. Here is another such man. Stanley Anderson, the 44 year
old Marketing Director of Hyundai in South Africa. He has been the
Marketing Manager and then Director of the Company since
Associated Motor Holdings Group and their newly appointed MD,
Alan Ross, took over Hyundai. That was after Billy Rautenbach
departed the scene leaving quite a few problems that had to be
solved quickly for the sake of the brand and its many customers.

You have seen the corporate and product Q: Has Hyundai Motor Company personality and then made the decision to
TV ads for Hyundai produced with a cer- in Korea acknowledged your go into Marketing.
tain amount of humour and passion for the successes?
brand. Stanley Anderson has been the man Q: Sport?
behind these. With the retail adverts show- A: Besides Hyundai expecting them, we
ing their range and prices, plus the list of have been awarded many distributor A: I played rugby at school and also got
dealers, this also did the trick for them over awards over the years. The highlight was my Provincial Colours for cricket and
the years. Even today in these tough times being awarded “Global Distributor of the swimming. These days I still play hockey
for the motor industry in South Africa, year” in 2005. for Tukkies in a Sunday league to keep fit.
Hyundai advertising stands out.
Q: What experience did you have before Q: Who made an impression in your
Q: What got you into Hyundai? you joined Hyundai? life?

A: I was head-hunted by Hyundai ten A: I was working at Mercedes Benz in A: I had a solid upbringing with my fam-
years ago when Alan Ross took over as the Pretoria with that other great South ily. My coach at school, Bokkie Blignaut,
new MD. African motor man, Christof Kopke, who instilled in me the importance of team
was the MD. I had been there for 14 years work, discipline and an ability to “vasbyt’.
Q: What turned Hyundai around for and was pretty settled as a Product This has stood me in good stead in busi-
you guys? Manager. ness as well, particularly today.

A: We adopted Hyundai’s quality way of Q: Before that? Q: When you retire?


doing everything. Quality products, which
Hyundai has proved over the years and a A: I was working for WesBank Corporate A: I would like to lecture to Marketing
quality way to look after customers with in Pretoria after getting my B.Com. students at UNISA.
service. Training and parts supply became Business Economics Degree at Tukkies.
a big part of our business. Q: Would you like to work overseas if
Q: Where did you grow up? asked?
Q: Range of vehicles?
A: In the North West Province starting in A: No – I would like to work here in
A The range has got better and better. Groot Marico, for the first 7 years: we then South Africa.
Cars and our commercials were just right moved to Richards Bay and at the age of
for the times at the right prices. Now we 14 we moved to Rustenburg where Q: Married?
even have 39 seat luxury coaches thanks to I matriculated.
our involvement in the World Cup, where A: To Anthea. I also have three children.
Hyundai is a main sponsor. Q: Schooling? Keegan wants to be an Architect, Zanco
wants to design computer games and our
Q: How are you going in today’s A: I went to Bergsig Hoërskool in youngest, Shannon, wants to get into
depressed motor market? Rustenburg. Marketing.

A: Although unit sales are down, we have Q: What did you want to be at school? Q: Your ambition?
been able to gain market share, which is
one of the best ways to measure success. A: A CA, but I soon realised I had a A: Hopefully to run Hyundai one day.

44 July 2009
and Their

by Marcus Haw
Tyres Contribution to
Safety in Motoring
“In the next issue we will look at as many operational problems and tyre remedies as we
can, and we’ll get into some cost saving as well”. This was the promise we made at the
end of last month’s issue. Previously we have gone through tyre cost cutting, and the
importance of keeping tyre records. Building and keeping histories of tyre performance
and failures in fleets are the most effective way of making correct decisions, and there-
by keeping costs low. This applies to all fleets no matter what they consist of vehicle
wise, what tyres are being used and what routes and loads they are involved with. We will
now go through specific problems and remedies experienced over the years focussing on
the 4 to 10 ton group of vehicles as in last issue. Looking at specifics we will go through
each operation type and the particular challenges they face.

Most common operational problem: Non stop driving, high


Furniture hauliers speeds and heavy loads.
There are two main categories here; domestic and office furniture
carriers. The similarities in the two businesses are that they are Most common results of operational problems on tyres: General
mainly volume carriers, not heavy loads. Their main routes are high wear rate, often irregular wear and usually early tyre failure.
mostly inter city and include a lot of stop start driving, with high- This is due to the fact that these vehicles seldom get checked, espe-
way sections of under seventy kilometres. cially the tyres and very often the wheel alignment and suspension
components as well. On top of this these vehicles are driven very
Most common operational problem: Loads are either one way full hard due to delivery time constraints. They are possibly the most
and empty return, or a constantly diminishing load also with conscientiously abused vehicles in the transport industry.
empty returns.
Remedy: Remedying these concerns is simply to maintain the
Most common results of operational problems on tyres: vehicle more regularly, and slow the drivers down. This is some-
Susceptibility to impact damage and irregular wear. This is due to times difficult as these companies make their money by getting the
the tyres building heat during the loaded part of the trip which goods from one door to another in the shortest possible time and
increases the inflation pressures. They then run in an OVER inflat- it seems that delivery service is more important in this industry
ed condition on the empty return trip. than tyre costs.
Remedy: Run the tyres at the lowest practical pressure and reduce Supermarket type deliveries
speeds while loaded. The SABS 1550 Standards directory will Included in this category is all food, refrigerated, pharmaceutical
assist in using the correct pressures. products, meat, milk etc. These operations are very similar, and
Long distance parcel service deliver in the same areas. Loads are pretty close in weight too.
Trucks in this category are used in 24 hr long distance express par- Most common operational problem: Similar to the furniture guys
cel type work. This includes constant high speed driving short the main problem is a constantly diminishing load, and/or one
stops and heavy loads.

46 July 2009
way full and the return trip empty. However these loads are heav-
ier, often over the trucks weight limit. Also a lot of stop start driv-
ing, and the biggest problem is the fact that they have to get into
all kinds of tight spaces to off-load.
Most common results of operational problems on tyres: High
wear rate, irregular wear and sidewall damage.
Remedy: The wear rate is hard to correct and is a direct result of
the stop start driving. Driver training and bonuses for good tyre
life have proved effective though. The irregular wear is due to the
empty one way trip and the answer is to reduce tyre pressures to as
low as one safely can. Refer again to the SABS 1550. The damage
to the sidewalls is the hardest to counter, since unless you can con-
vince the shopping centre architects to improve the delivery areas
tyres will get damaged. Driver training does produce results, but in
all fairness there are some areas which the finest driver in the world
could not get into without any damage. It is this kind of challenge
which the alert fleet controller can use to show the bosses what he’s
made of. This is where the choice of tyre can save a fortune. You
can’t stop the damage, but you can save money by buying cheap.
The trips are short, the speeds are low, so buy cheap and retread.

Construction vehicles is pretty minimal in equipment. It is essential that the compressor


is capable of inflating all the tyre types in use and that the tyres are
In the construction industry, the trucks in the sizes we are dis- regularly checked and corrected. It is also wise to get expert opin-
cussing are used in many varied configurations. They are used to ion on the pressures to use. In many off-road situations slightly
carry materials and light equipment in a dropside configuration. reduced pressures can be advantageous since the tyres are able to
Water tanks are fitted and used to spread water to keep dust down absorb the bumps, rocks and ruts better. However, these vehicles
and to carry water from site to site, as well as sorting fires out. are usually very heavily loaded so it is necessary to be exact with the
Where necessary they carry explosives, tools, people, spares, rubble pressures.
and aggregate. Because of their many uses, their tyre problems are
also varied, but there are common factors for all vehicles at the site. Apart from all the above, the construction industry is another one
where buying cheap and retreading own casings is the way to go.
Most common operational problems: Extremely harsh underfoot We must emphasise here that when we say buy “cheap” we don’t
conditions; no roads, rocks, sand, mud, whatever is hidden in the mean buy rubbish. You still need to have a good strong product
mud etc. Loads are usa everything and tyre valves are prone to leak- and you need backup on that product. What we mean is buy the
ing from dirt ingress. best you can at the lowest price you can.
Most common results of operational problems on tyres: General Local tyres have a wide price range and to put premium tyres into
all round damage to tread and sidewalls. Low tread life, compro- high damage operations will give no advantage. Buying cheap and
mised casing life and premature failure. nasty, unknown imports though, could work out even more
Remedy: Number one is to make sure the valves have steel valve- expensive, so buy with thought. In some of these situations cross-
caps fitted at all times. We have seen a cost saving of 7% in the tyre ply tyres offer a sound alternative.
budget of a construction company just by the conscientious use of So consider your operation type and ensure your tyres and vehicles
steel valve caps. Secondly the correct inflation pressure will go a are in a safe condition at all times.
long way to making the tyres more resilient, and resistant to dam-
age. At construction sites there is usually a workshop set up but it www.bridgestone.co.za
July 2009
47
Diamond Dialogues

Editorial
Partnership
Giel Steyn

In this series of articles ABR discusses with Giel Steyn of Grandmark International the four significant factors that should be taken
into account when purchasing automotive parts - Technology, Quality, Safety and Value for Money. These four characteristics are inter-
related, and each cannot stand on their own, and together they become a motorist's best friend. Similarly, diamonds are also judged on
four characteristics, known as the “four c's” - carat, clarity, colour and cut; and of course, diamonds are a girl's best friend. Grandmark
International, as a distributor of automotive parts, is keenly aware of the need to source only the best in Technology, Quality, Safety
and Value for Money, and therefore it is appropriate that this series of articles is titled Diamond Dialogues.

The Importance of the Automotive Aftermarket


OEM, OES, P&A, Aftermarket. These are all terms that are used liberally, and
sometimes glibly, by automotive industry insiders, outsiders and commentators alike,
but do we really know to what exactly these terms refer, and what precisely we are
saying when we talk about these markets?

A
s a point of departure, Giel Steyn ing components that are supplied to the 1 – 3 years 22%
recommends that we go to the OEMs and the aftermarket. In some 4 – 7 years 22%
source to find out from the instances they design certain assemblies and
horse’s mouth how the OEM’s assemble modules, such as entire dash- 8 – 12 years 21%
define these terms. Norman boards from different components, and are 13 – 20 years 28%
Lambrecht from NAAMSA (National then referred to as tier 0.5 suppliers. They
Association of Automotive Manufacturers of require design and innovation capabilities, > 21 years 7%
South Africa) was kind enough to provide but compared with the OESs their global
the following definitions: reach may be limited. Second and third tier Traditionally the first three years of a car’s life
suppliers provide parts for first tier suppliers falls under the wing of the franchised dealers,
• Original equipment manufacturers either through warranty or service agree-
and also OEMs, depending on the product.
(OEMs), comprising passenger car, com- ments, and new car customers also tend to
The third tier suppliers supply mostly basic
mercial vehicle and bus manufacturing, as have a stronger feeling of confidence and
products and generally only rudimentary
well as sales, primarily through peace of mind by going back to where they
engineering skills are required.
dealerships.* bought the vehicle. From four years of age
Now that we have the official viewpoint, let and beyond, the independent aftermarket
• Original equipment suppliers (OESs),
us take a look at what Giel Steyn sees as the tends to take over the maintenance responsi-
who manufacture and supply automotive
big mama; the Automotive Aftermarket. Giel bilities, although with the latest trend of
parts and accessories directly to the OEMs
views this aftermarket as having a huge influ- manufacturers offering service plans to five
for their service networks. In this way the
ence on the industry, and mostly in an years and beyond, this has moved the curve
parts receive the reliability associated with
extremely positive light. He also segments this somewhat. Even taking this into account,
the brand of the vehicle, which is serviced
market into two distinct components: one can see that at least 60% of the car parc
for nine to ten years after production of the
Aftermarket # One is the part of the aftermar- is being looked after by the independents.
vehicle (CBI, 2004b:10). OESs require
ket that is under the direct and indirect con- And this is where the four significant factors
global coverage and need to provide “black
trol of the OEMs. This is primarily the fran- of Technology, Quality, Safety and Value for
box” solutions (solutions created by suppli-
chise dealerships, who sell vehicles, both new Money begin to play a HUGE role! The
ers using their own technology to meet the
and used, fit specialised equipment to these Diamond Dialogues now take on a new
performance and interface requirements set
vehicles under the auspices of the OEMs to meaning, and players in this aftermarket seg-
by the OEMs).
maintain warranties, provide after sales serv- ment need to be scrutinised for their contri-
• The independent aftermarket, which is ice through their workshops and parts divi- bution to these four aspects. Grandmark
responsible for the manufacture and sale of sions, and the various financial, insurance and International is one of these players, supply-
automotive replacement parts and acces- other add ons that are also sold to the cus- ing quality product at reasonable prices, and
sories. The sales take place through inde- tomer. All of these activities contribute signif- ensuring that those with older cars continue
pendent retailers and repair shops directly icantly to keeping the general population to have the benefits of technology and safety,
to the consumer. The aftermarket also re- mobile, and ensuring that this mobility is as and further giving esteem to the industry.
manufactures, distributes, retails and installs safe as possible.
motor vehicle parts and products, other What really gets Giel’s juices flowing is what
than the original parts and accessories. * The debate starts here. Dealerships
he defines as Aftermarket # Two. This is the
massive component of the automotive after- are one of the grey areas. They are con-
• First, second and third tier component
market that is under the control of the inde- trolled through franchise agreements
manufacturers who supply manufactured
pendent operators, and the significance of
parts and accessories to OEMs, OESs and by the OEMs, but legally they fall
their role in mobility and safety is according
the independent aftermarket. The distinc- under the terms and conditions of the
to Giel vastly underestimated and grossly
tion between the different tiers of compo-
underappreciated. To truly appreciate this Bargaining Council legislation. More
nent suppliers is indicative of the compo-
we have to analyse the South African car parc,
nent manufacturer’s role in the value chain. on this in the next issue of ABR
by age:
First tier suppliers (also known as sub-
assemblers) are responsible for manufactur-
48 July 2009
The Tipping Point
A series of articles based on interviews with Klaus G. Langer, an inde-
pendent supply chain consultant and self confessed environmentalist
who proudly sees himself as a “Cultural Creative”, which is an influen-
tial group of new progressives who are disenchanted with materialism
and hedonism, and who are at the forefront of prodding mankind to move
from conventional to rational and responsible thinking, and to encour-
age participation in an ethical expansion, focusing on “balanced rather
than negative reciprocity”

Klaus Langer
Eco-Friendly Vehicles
T
he race is on for more environmentally friendly the future looks bright, as the industry responds to this enormous
motor cars, driven by the need to arrest and reverse demand from the consumers. The replacement cycle has already
global warming, dwindling fuel resources, and the begun, albeit very small at the moment, with Toyota leading the
realisation by humanity that we simply cannot con- way with over a million Prius’ being sold to date. The Prius has
tinue our wasteful ways. Klaus Langer predicts the become the Hoover of its age, and Toyota has upped the ante with
end of the internal combustion engine within 15 years, and he a plug-in version to be introduced in 2010. The rest of the indus-
anticipates completely new engines emerging in the next three to try is playing catch-up, with all the manufacturers, from General
five years. The original equipment manufacturers are now Motors in America (in a new lean, mean post Chapter 11 guise)
engaged in a battle for survival, and in a very short space of time introducing the much hyped Volt, through to the rapidly expand-
we are going to see whole new cars, designed from scratch, utilis- ing Chinese automotive industry making serious moves with
ing significantly different power trains, and lightweight materials. Chery Automobile and BYD leading the way. BYD is a particu-
Klaus sees this as an exciting era, with the industry responding larly fascinating company. Founded in 1995 by Wang Chuan-Fu,
proactively and positively to the challenges. The initial signs are who is described by Berkshire Hathaway’s Charlie Munger as “a
promising, with examples of innovation already on the showroom combination of Thomas Edison and Jack Welch”, BYD is the
floor, and electrifying (excuse the pun) developments around con- world’s largest manufacturer of cell phone batteries and is already
cept cars. The consumers are still behind the eight ball, but they selling a plug-in electric car (F3DM) with a backup petrol engine,
will be forced to go with the flow, as small and eco-friendly vehi- which puts it ahead of Toyota and the rest. So much for catch-up.
cles become a statement of responsibility and maturity. All this This has impressed Warren Buffet of Berkshire Hathaway to the
will happen, sooner rather than later, because humanity has extent that he has purchased 10% of this company, and would
reached a tipping point, and whereas this point requires a total buy more if allowed to.
change of mindset, its time has truly arrived.
More on this and much more in future Tipping Point articles.
Meeting the Needs of the
Consumer
Mobility has become a right rather than a privilege, and the
demand for greater mobility will continue. The automotive
industry has for over a century provided this mobility, and will
continue to meet this demand for another century and beyond.
The big difference is that the industry’s love affair with big, pow-
erful, fuel guzzling internal combustion engines is coming to an
end, and the future is hybrids, electric cars, and ultimately fuel
cell technology will become the Holy Grail. The good news is that
these technologies will translate into economic growth, as the new
generation of vehicles replace the current car parc. Currently,
there are some 580 million not so eco-friendly vehicles moving
people around the planet, and the estimate is that this will grow
to around 1,3 billion vehicles by 2030 and an astonishing 2 bil-
lion vehicles by 2050. From an environmental point of view, these The BYD F3DM at the recent Shanghai Motor Show
will be eco-friendly vehicles, and from an economic point of view
Industry Update

Life Goes On
Following the Life Goes On article in the June 2009 issue of ABR, I was
once again fortunate to attend a media briefing from a chief executive in
the South African Automotive Industry, and once again I left the briefing
in an upbeat mood, having progressed from “Baa Baa Black Sheep” to “I
By Austin Gamble Could Have Danced All Night”, and eagerly awaiting the opportunity to do
my Freddie Mercury impersonation as I belt out “Bohemian Rhapsody”.

I
t was the briefing on 8th June 2009 ties, as it increases its global footprint in
by the recently appointed CEO of off-road vehicles, trucks, tractors and two
Mahindra South Africa, Ashok wheelers. Mahindra is also eschewing the
Thakur, that had me clearing my new age technologies, by sticking to the
throat, and whilst I may have a tried and tested when it comes to environ-
weight problem, as far as the demise of the mental initiatives. Ashok revealed that
motor industry is concerned, the fat man Mahindra has no immediate plans to
is not about to sing. When we do sing, it develop hybrid and electrical vehicles,
will be about the resurgence of the auto- rather focusing on the bio fuel, CNG and
motive industry both globally and locally stop-start expertise it has, and to meet
in the not too distant future. Mahindra emission standards with a current genera-
definitely believes this, and they have tion of engines that meet Euro V require-
promised an announcement within three ments. A pragmatic approach, which is
months about the details of local assembly the hallmark of Mahindra & Mahindra
of the Mahindra, in both left hand and worldwide, and with a track record of
right hand versions, to service southern, note, Mahindra seems to succeed in what-
western and central Africa, and who ever they do. Take tractors, for example.
knows, even the American market if their Mahindra has over 40% market share in
AGOA calculations prove promising. Yes, India with their tractors, which are ideal
Mahindra is planning to invade America for the smaller farmer. They are now look-
at the end of 2009, as they feel the down- ing for growth in South Africa, with four
turn in the States is an opportunity, with models soon to be homologated, and they
buying habits changing to more afford- displayed at the recent NAMPO show in
able, thrifty, rugged vehicles, and an alter- Bothaville, and reported keen interest,
native for which the American motorist is The recently appointed CEO of Mahindra particularly from the emerging farmers.
now receptive. Ashok Thakur disclosed South Africa, Ashok Thakur, is optimistic
that 300 dealerships will be established for about the future In conclusion, it is clear from recent
the launch, and that significant volumes media functions that the attitude of the
are expected. General Custer would be at the facilities of Bavaria Auto motor manufacturers is one of “Life Goes
his wits end! Manufacturing Co. in Egypt to assemble On”, and if the banks could now start to
the Scorpio, side by side with the BMWs play ball from a financing point of view,
To back up these projections, Mahindra is assembled in the self same factory, on the we could expect a modest upswing sooner
investing over US$1 billion in a green self same lines. Could we soon be driving rather than later. It is time to put our trou-
field facility in Chakan, India, whilst also Scorpios assembled in Rosslyn, with the bles behind us, and to not allow the bear-
looking at local assembly where possible expatriate workers being exhorted to ers of bad tidings to fulfil their prophecies.
to take manufacturing to important mar- “Build Mahindras, Wolfgang!”? It is all a We must wrest the future away from these
kets, as there is over capacity worldwide, manifestation of the globalisation of the harbingers of doom, and to ride confi-
and the possibility of joint ventures that automotive industry and the blurring of dently into the night. Our gambit is one
would previously be undreamed of is now competitive lines, as the industry struggles of confidence, and the game of chess does
on the cards. For example, Mahindra to cope with the new realities. Mahindra is not allow the Knight to take the Queen
builds the Logan in India, and it utilises obviously taking advantage of these reali- without a fight.

52 July 2009
From the Cockpit

Groenewald Shows his Class


The Wesbank V8 Championship is South Africa’s premier motorsport
formula, and Automotive Business Review brings you the action from
the heart of the battle. Richard Pinard, part of the dynamic Timken
duo, gives a track review from the cockpit of his 450kW V8 Jaguar.
In this issue, we get a glimpse of the guts and glory in Rounds seven
and eight at the high speed East London Grand Prix Circuit on
Saturday, 6th June 2009.
(keino@quickpic)

Hennie Groenewald shows the rest of the racers “who’s their daddy”

W
ith Timken suffering a poor start to the 2009 sea- there was practically nothing to choose between the Jags and the
son, it was a case of do or die for the team at East Holden when it came to lap times during practice, the different
London, particularly for Hennie Groenewald, who feel of the Holden gave Hennie an extra boost of confidence – in
if he was to have a decent chance of defending his the racing game, they call it a “mind thing”. Thus Hennie took
championship title for a record 4th time in a row, would need to pole position, and the die was cast for his great fight back, and
pull out all the stops. With the Timken duo languishing in 8th wins in both heats. Hennie led from start to finish in the first race,
and 9th position after rounds five and six, something had to give, with the other racers made to look very ordinary as they followed
and the Timken Team was going to ensure that it was not them, in his wake, with Richard struggling with a car that kept jumping
with fastidious preparation at Zwartkops the week before, and out of first gear, which meant a radical revision of his driving style
bringing the Holden Commodore out of mothballs as back-up for for eight laps, something he likens to riding rodeo – the only dif-
the East London meet. This proved to be a wise move, with one ference is that in this rodeo he had 600 horses to contend with!
of the Jags breaking a crankshaft during Friday’s practice. But it was the second heat that proved the class of Hennie.
Starting at the back of the grid (the inversion rule giving Clare
During practice, the Timken top guns were blisteringly fast, with Vale another gender bending pole position), Hennie worked his
both the Jags and the Holden proving to be very quick, and way past 12 drivers to take the chequered flag, but not before a
Hennie recording the fastest lap time, and Richard close behind great dice with 17 year old Brandon Auby on the penultimate lap.
with the 3rd fastest lap. Unfortunately, Richard came a cropper at A case of experience and skill trumping youth and enthusiasm.
Potter’s Pass during practice, going off at 262 km/ph (telemetry Unfortunately, Richard Pinard’s woes continued. After moving up
tells the tale!), and this spin took a psychological toll. As Richard and toughening it out at 2nd position, he was bumped at
says, “When you hit the grass at this speed, and you lose all con- Cocabana Corner, which caused wheel alignment problems, and
trol of the vehicle, you are at the mercy of a car with a mind of its then in the final lap he has another “coming together” before
own. No matter what miracles you can achieve on the skid pan, being T-boned at the self same corner, which meant a long walk
and all the theories about under steer and over steer, at a time like back to the pits.
this, with the weight of the car and the very high speed, you sim-
ply go into survival mode, and pray that you don’t hit anything Two final points. Richard Pinard pointed out that the East
solid. Funnily, the major concern that goes though your mind is London circuit is under threat from developers who want to turn
not your physical danger, but the cost implications if the car is the track into a housing estate. He has appealed to the racing
seriously damaged.” And the chances of damaging a car at South fraternity to stand up and be counted, and to ensure that this his-
Africa’s fastest race circuit are high, with the V8’s hitting speeds of torical track does not go the way of so many other iconic venues.
up to 290 km/ph at Rifle, and then braking down to 70 km/ph It should be remembered that the very first South African Grand
for the turn. This makes the East London track a great drive, but Prix was held here in 1936, and Richard says he sees it as a privi-
it does demand high concentration levels. Coming back to the lege to race on this track. A privilege that is worth fighting for.
psychological toll, Fridays’ spin did affect Richard, as he was a lit- Secondly, Richard also wishes to thank Timken for their support,
tle too circumspect in qualifying, taking at least a second off his and expresses his gratitude to the companies that provide the
pace, and ending up at 8th on the grid. But the psychological sponsorship to keep such a wonderful sport alive and vibrant.
aspect worked in Hennie Groenewald’s favour, as even though
54 July 2009
Innovation

See What You Mean


The Automotive Supplier Park in Rosslyn, north west of Pretoria, has
been the venue for many interesting and cutting edge seminars and
forums, and on the 4th June 2009 it was no exception when Dassault
By Austin Gamble Systémes, in partnership with CDC, presented the CATIA PLM Forum
2009, to experience, learn, and collaborate around the latest updates
on Dassault Systémes products and solutions, on their various platforms, including
CATIA, DELMIA, ENOVIA, SIMULIA and 3DVIA.

F
or the uninitiated, PLM stands Laurent Couillard, Vice President Value the company to deliver unique 3D solutions
for Product Lifecycle Selling Europe for Dassault Systémes, gave for most industries and consumers, includ-
Management, and the purpose of the keynote presentation “PLM for ing aerospace, automotive, shipping, indus-
the forum was to reemphasise Innovation and Growth”, emphasising the trial equipment, high tech, construction,
how PLM can rapidly help com- fact that in the current economic climate, consumer goods, packaged goods, life sci-
panies save costs throughout product devel- companies must radically change the way ences, energy and business services. The
opment and manufacturing processes. It they conduct business and how they interact automotive industry utilises Dassault
enhances product innovation and style dif- with customers to achieve a competitive Systémes extensively, with iconic brands
ferentiation, reduces time to market, pro- advantage. This to a large degree depends on such as Bosch, Ford, Toyota, Daimler,
motes eco-design and in these stressed eco- companies’ flexibility and ability to adapt Nissan, Michelin, BMW, Honda, Volvo and
nomic times, it has the added benefit of sav- themselves to the new economic environ- Peugeot/Citroen utilising PLM technology.
ing money, from requirements management ment and their ability to reinvent the future PLM is extremely versatile, from virtual
to product optimisation through simulation through innovative thinking and behaviour. shopping experiences through to molecular
and supplier sourcing management, as well PLM is a vital cog in this process, as it allows modelling, medical/pharmaceutical training,
as the optimisation of multi-site collabora- you, as Laurent puts it so succinctly, “to see fabric simulation to assessing environmental
tion for product and process definition and what you mean”. In other words, PLM is the impact, which Laurent describes as “3D for
reduction of manufacturing downtime. conjunction of the real world with the virtu- all”. It is all based on the reality that to work
al world. Recent examples of the effective quicker and smarter, we need:
use of PLM is the “Bird’s Nest” Stadium
• A virtual universe – to understand
designed and constructed in record time for
• Communities – to talk to each other via
the 2008 Beijing Olympics, and this engi-
social networks
neering feat shall be repeated with an east
• Sustainable supply chains – the capacity to
European flavour with the design and con-
get to these communities in a sustainable
struction of the main stadium to be used in
way
the Euro Cup in Poland in 2012.
• Knowledge trading – the utilisation of
knowledge and the trading therein
Dassault Systémes is the world leader in
• People and environment friendly focus –
PLM solutions, mainly because of their
this is the be all and end all
devotion to research and development (43%
of their 7 800 employees are dedicated to Thus the move from PLM V5 to PLM V6,
R&D!) and the strong commitment of the to get it right digitally before implementa-
Laurent Couillard, shareholders and management, which allows tion in the real world, which dramatically
Vice President Value Selling shortens engineering change. Innovation is
Europe for Dassault Systémes basically the sum of experience, conceptual-
isation and technology, and PLM tools
allows one to capture this experience, imag-
ine a concept and to develop the technology,
all in rapid order. This leads to the increase
of a company’s asset value, the escalation of
a company’s image and the strengthening of
a company’s competitiveness. An excellent
example of this in action is TATA. In a very
short space of time, which in years can be
counted on one hand, TATA’s international
image has rocketed from nowhere to a spot
in the top 15, and this can be largely
ascribed to the NANO – a stroke of genius
which could only come from experience,
The TATA Nano – PLM conceptualisation and technology being
in action wrapped into warp time, greatly assisted by
PLM techniques.
56
July 2009
What’s the Buzz?

Experience the latest ITS technologies at the 16th World Congress


and Exhibition on Intelligent Transport Systems and Services
The 16th World Congress and Exhibition on Intelligent demonstrations will take place alongside the Congress and
Transport Systems and Services (ITS) will take place at Exhibition. Highlights include the outdoor Experience Park,
Stockholm International Fairs (Stockholmsmässan) from 21 – where visitors will have the opportunity to try out the latest
25 September 2009. The theme of the event is ‘ITS in Daily state-of-the-art ITS applications and technologies of the future
Life’, exploring how ITS can improve everyday mobility with on a small-scale model roadway and a joint demonstration site
strong emphasis on co-modality and ITS solutions for all trans- from four Swedish transportation authorities, giving live
port modes. It will offer visitors the opportunity to experience demonstrations of Traffic Control Centres for railway, aviation,
an array of Technical Visits and showcases as well as featuring a maritime and road will show a number of different weather sce-
demonstration theatre within the exhibition hall. The Technical narios, traffic disturbances and crises. The Exhibition will offer
Visits can be attended by any participant for a modest fee of 25 a unique opportunity to visit over 170 exhibitors and meet key
euro. Transportation to the Technical Visits will be conducted buyers from around the world, with particular emphasis on traf-
in hybrid ethanol buses which are fitted with the latest ITS sys- fic safety, mobility for vulnerable users, implementation of well-
tems on the market. The Demonstration Theatre in the exhibi- coordinated ITS projects and services and multimodality/co-
tion hall will offer visitors an opportunity to experience five dif- modality leading to cleaner climate. In addition, other ITS-
ferent scenarios per day demonstrating how ITS in daily life related topics will also be exhibited. The Congress will run
ensures a more efficient, safe and secure future using green solu- alongside the exhibition and include 245 sessions relating to all
tions. The 30 minute demonstrations are free to attend and modes of transport (road, rail, aviation and maritime). There
cover the following areas: Secure transports; Cooperative sys- will be many opportunities to take part in the ITS World
tems; Safe and sustainable transport solutions; Extended e- Congress and Exhibition as a delegate, speaker, exhibitor and
transactions – the base for ITS deployment; Daily commuter. visitor. To register your interest or find further information,
In addition to the Demonstration Theatre, other free-of-charge please visit www.itsworldcongress.com.

SKF SOUTH AFRICA ON THE V8 FAST TRACK WITH


THE AUBY BOYZ RACE TEAM
SKF South Africa is sponsoring the winning Auby Boyz Race racing is such a powerful, thrilling and very demanding environ-
Team in the V8 Super Cars in 2009. The Swedish multi-nation- ment and, as a knowledge engineering company, we combine
al, SKF, has been actively involved in motor sport sponsorship for technical know-how with product superiority to offer automotive
a number of years. “SKF has enjoyed one of the longest technical rotating equipment solutions and play an active supporting role
partnerships in the history of motor racing with Scuderia Ferrari in motor sport”. The formidable Auby Boyz Race Team currently
in Formula 1 and, amongst others, also sponsor NASCAR in the competes in the Wesbank V8s, with two Jaguars driven by Marc
USA”, says SKF Automotive manager, Marchant Taylor, and and Brandon and Deon driving a Chevrolet.
adds that local sponsorships have been equally successful.
“Motor sport sponsorships are particularly rewarding. Motorcar

July 2009 57
Insights

Fewer, Bigger, Better


“Barloworld has a proven track record of effectively managing long-term relation-
ships with global principals and customers. We have an ability to develop and grow
businesses in multiple geographies including challenging territories and high growth
prospects. One of our core competencies is an ability to leverage systems and best
practices across our chosen business segments” – Clive Thompson, CEO Barloworld.

P
owerful and inspiring words, which would encourage any Barloworld values. Early on in his
stakeholder, be it current or potential. Let us look at research, his mind was soon put to rest.
Barloworld’s Vision, which is “to be a recognised global Capricorn Society Limited was formed
market leader in the provision of integrated solutions in in 1975 in Western Australia and since
distribution, rental, fleet management, product support and logis- its inception it has had an impeccable
tics to customers in our chosen business segments”. Now for the reputation for integrity and it has never
company overview as gleaned from Barloworld’s website; compromised on its strict eligibility cri-
“Barloworld is driven by the maxim of creating sustainable value teria for workshops and suppliers.
for all its shareholders. The group offers its global customer base These values were carried through to
integrated business solutions backed by leading international the other Australian states, then New
brands.” This is all distilled into the most powerful statement of Zealand and South Africa as the
all; “What sets us apart is our ability to develop and maintain Society expanded, and now the
mutually beneficial long-term business relationships. We like to Capricorn Society can rightfully
call it the Barloworld Way”. appropriate and share Barloworld’s Pieter Haak, General
Manager After Sales,
claim of “developing and maintaining Barloworld Motor Retail
The reason for this introduction is to mutually beneficial long-term busi- South Africa
explain the ethos behind Barloworld ness relationships”.
Motor Retail’s decision to become a
Capricorn Society supplier. Barloworld
Motor Retail is one of the chosen business
segments as described above, sharing cen-
tre stage with the equipment division, car
rental operations, fleet services, and the
handling and logistics divisions. It would
take reams of paper to do justice to all Barloworld Motor Retail became a Capricorn supplier some four
these operations, suffice to say that they all years ago, and the wisdom of Pieter Haak’s decision is validated by
follow the words of Clive Thompson and the fact that the Society in now one of the top ten accounts for the
fit nicely into Barloworld’s Vision. This is division. Capricorn members can now leverage off Barloworld’s
the message ABR took on board when it strength in motor retail, which includes Volkswagen/Audi;
interviewed Pieter Haak, General Manager Mercedes-Benz; Chrysler; Ford/Mazda; General Motors; BMW;
After Sales of Barloworld Motor Retail Toyota and Subaru dealerships, sourcing their parts from hub and
South Africa. Pieter Haak describes these spoke operations in Gauteng, Mpumalanga, Western Cape and
philosophies as “Fewer, Bigger, Better”, KwaZulu Natal. The benefits for Barloworld Motor Retail are
underpinned by a conservative and ethical numerous, including improved turnover, the prompt and guaran-
approach. Thus, when he was approached teed payment of one account covering many small workshops,
by Rob Mildenhall, Capricorn Society increased exposure, and the knowledge that their extended car parc
Limited Business Development Manager is being maintained by genuine parts whenever a Capricorn mem-
for South Africa, he did not immediately ber gets involved. Likewise, the Capricorn members get the bene-
join as a supplier, even though he and Rob fits of price, availability, rebates and less administration. A final
had served together on numerous industry word from Pieter Haak – “My relationship with Rob Mildenhall
bodies, and he knew the qualities of the does help, but to be totally honest, his persistence in promoting
individual. He needed to be 100% sure of the benefits of Capricorn, both for members and suppliers, and
the viability and sustainability of the organ- the assistance and help that he and his staff provide, makes it a
isation, and he also needed make sure that pleasure for the suppliers. He will move heaven and earth to assist
the ethics of the Society fitted the and help, and this makes the difference.”

To join Capricorn Society Limited call Rob Mildenhall on


083 654 2094 or e-mail him at
rob.mildenhall@capricorn.com.au or visit their website on
www.capricorn.com.au

58 July 2009
Q&A

by Roger McCleery

Roger McCleery asks the questions


See how many of these 20 Questions you can answer.

1. What company has signed an alliance with Chrysler in the United States?

2. What company has taken over Hummer?

3. Where is Hummer going to be made?

4, What company sold the most passenger cars in May?

5. What is the top selling LCV (Bakkie) in South Africa?

6. How many people have walked on the moon?

7. When refuelling a Grand Prix car, how many litres of fuel does the car receive per second?

8. What company sponsors a GT Challenge racing series for mainly Porsches and Ferraris racing in South Africa?

9. Who is the current President of the FIA?

10. Name two international motor races run at Kyalami this year.

11. Name South Africa’s only Formula 1 World Champion.

12. What city does he come from?

13. Name three Jewish South African drivers who have competed in Formula 1 Grand Prix Racing.

14. Name the current three-times South African WesBank V8 driving champion.

15. What company sponsors the racing V8 driven by Hennie Groenewald?

16. Who holds the South African Land Speed Record?

17. At what speed?

18. What is the maximum length and time of a Formula 1 Grand Prix?

19. Who is the SAGMJ’s Journalist of the Year?

20. What makes of car leads the World Rally Championship after seven rounds?

Answers on page 65
60 July 2009
Wilde Things

A Call to Alms
by Fingal Wilde
My column in the June 2009 issue of ABR caused quite a stir.
In one fell swoop I managed to piss off a third of South Africa’s
electorate and the entire soccer world, all aflame about my com-
ments on the quality of their grey matter. At last, confirmation
and affirmation that I must be doing something right! Now, to
balance the scales, I am about to have a go at that citadel of
masculinity and testosterone, a mere stone’s throw away from the Union Buildings,
where strange creatures, with horns on their heads, rings through their noses, and
their bodies daubed in blue, pay homage to grown men indulging in steamy physical
contact, popularly known as rucking (too close for comfort to the term rutting), and
with an unhealthy obsession in getting hold of an oval ball. This temple of worship
is known as Loftus Versfeld, or for the true aficionados, just Loftus. The gay
pastime that is played here is widely referred to as rugby.

B
efore I go on any further, I need to this. Not just
come out of the closet. I do watch at Loftus, but at
this spectacular display of creatine every rugby ground
and iron pumping inspired combat. I in South Africa.
actually enjoy it, as I believe that rugby Manners must
union, when played properly, is the best come back to this
sport on the planet. And the spectators at wonderful game.
a rugby match are generally far better
behaved than the soccer louts, inside and How do we do this?
outside the stadium. Someone once said We do this through
that soccer is a game designed for gentle- the players, who
men, played by hooligans, and that rugby surely the fans will On the left is the cranium of a well behaved rugby spectator,
is a game designed for hooligans, played listen to. I’ve and on the right the cranium of a yob.
by gentlemen. I’m not going to argue with noticed that most of
this, but what about the spectators. The South Africa’s rugby players (and a good booing visiting players is the equivalent of
less said about the soccer yobs the better, portion of the New Zealand lot as well) the ignorant talk of foolish men, and that
but recently the rugby spectators appear to make the sign of the cross after scoring, by staying quiet about this unacceptable
be going the same route. And it is at and cast their eyes to some higher power abuse you are abusing your freedom, and
Loftus, where the blood runs blue, that above and even make some pointed ges- that as servants of God you should be
this malady is manifesting itself in the ture to this deity above. A few seasons ago, scolding the fans for their behaviour.
form of boorish and unwelcoming behav- Jaco van der Westhuyzen took this wear- Need more? How about the second and
iour. I have long lamented the insufferable ing of your feelings on your sleeve to even fourth commandments? You shall love
behaviour of spectators booing the visiting greater heights by wearing this on his your neighbour as yourself definitely does
side, the referee and that particularly chest. It has also become de rigueur for the not gel with how your fans are treating the
unsporting bit of booing and jeering when captains and the man of the match to visiting neighbours. And you are definite-
the opposing side takes a kick at the posts. thank God (usually referred to as the ly not honouring your father and mother
This is bad enough and must stop. But Skepper) for having given them such if you allow this sort of abuse in your
recently, when Luke Watson visited amazing talent, so I can safely assume that name or your team’s name. Need more?
Loftus, he was subjected to an incessant rugby players in the main appear to be What about Christian charity, and giving
barrage of booing and worse by a distinct- committed Christians. Thus my appeal alms to the poor. Alms is not just about
ly unfriendly crowd, simply because of goes to these bearers of the faith to apply giving money, it is about intercessory
some comments that he had made. Yes, their fervour to converting the poorly prayer and acts of mercy. Believe me,
Luke Watson is his own worst enemy, but behaved fans on the bleachers. I definitely getting the fans to keep quiet while you
that does not give anyone the right to am not a theologian, but I’m going to use are delivering a rugby lesson is indeed an
behave so badly towards a visiting team. some scripture to get my message across. act of mercy, and by interceding you are
What has happened to the simple concept Firstly, I quote from 1 Peter chapter 2, doing God’s work. I could go on and on
of courtesy? Once again, at the semi-final verses 15 and 16; “For it is God’s will that with messages from the Bible.
and the final of the Super 14, the by doing good you should silence the
Crusaders and the Chiefs were met by a ignorant talk of foolish men. Live as free Thus ends this lesson. In future, I expect
cacophony of hoots and howls, and I was men, but do not use your freedom as a to hear a pin drop when a kick is taken at
truly dismayed. It is time that the officials cover-up for evil; live as servants of God”. Loftus, no matter who is taking the kick.
and the rugby players do something about I am sure that you guys will agree that Anyone for side bets on this happening?

July 2009 61
Robert Bosch

From Innovation to Standard Equipment


– 30 years of safe braking with Bosch ABS
Bringing a car to a safe stop was not upper-
most in the minds of the early automotive
pioneers, who had bigger fish to fry in
engine development, suspension improve-
ments and drive line technologies. Braking
was then seen as a necessary inconvenience.

B
etter and safer braking started to exercise the minds of
automotive engineers in the early part of the twentieth 30 years of Bosch ABS –
century, when it was realised that the locking of the
wheels was the chief culprit in accidents, not only in cars, development milestones
but also in railway vehicles and even in airplanes, and as
early as 1936 Bosch was already at the forefront of this
thinking when it was granted a patent for “a mechanism to prevent lock- 1936 Bosch is granted a patent for “a mechanism to
ing of the wheels of a motor vehicle”. The development of anti-locking prevent locking of the wheels of a motor vehicle”
systems was a slow and tortuous process, with the early designs too com-
plicated and therefore prone to failure. The breakthrough came in 1964, 1970 ABS 1 prototypes perform all the required func-
when Teldix began development work on the first fully electronically tions, with functional safety limitations
controlled system. The basic structure of this design, known as ABS1,
1978 Series production of the first antilock braking
can still be found today in nearly every ABS. The problem in the early
system
development was that the roughly 1000 analogue components and safe-
ty switches meant that the reliability and durability of the electronic con-
1985 Bosch ABS installed in US vehicles for the first
trol units were not yet good enough for volume production. The next
time
breakthrough came in 1975 when Bosch acquired ABS development
form Teldix, and the know-how of the Bosch engineers combined with
1987 TCS (traction control system) goes into series
the increasing possibilities of digital technology, including integrated
production
circuits, meant that the number of electronic components could be
reduced to 140. After 14 years of intense development, everything final-
1989 ABS 2E is the first to feature a control unit
ly came into place in 1978: the first system, known as ABS2, went into
mounted directly on the hydraulic modulator
series production at Bosch, first been fitted as optional on Mercedes-
Benz S-Class vehicles, and shortly afterwards in BMW 7 series cars. 1993 Series production of the Bosch ABS 5.0

The ABS system was further enhanced in 1986 by the TCS traction 1995 Introduction of ESP® electronic stability
control system and in 1995 by the ESP® electronic stability programme programme
– and once again, these systems were Bosch innovations. In 2007, more
than three quarters of all new vehicles worldwide were equipped with 1998 Bosch starts production of ABS 5.7
ABS. At world market leader Bosch alone, some 21 million braking
control systems rolled off the production lines in 2008. Now, it is as if 2001 Series production of Bosch ABS 8
ABS has been with us a long time, and in Europe, the U.S., and Japan,
ABS is now standard equipment on all vehicles, and the ESP® electronic 2003 100 million ABS systems
stability programme is increasingly replacing ABS as a standard feature,
and this trend is accelerating, encouraged by the regulation in the U.S. 2004 ABS becomes standard equipment in all 15 EU
mandating the gradual introduction of ESP® in all light vehicles up to member states
4.5 tonnes gross weight by model year 2012. Europe has passed similar
legislation, and in emerging markets ABS is also becoming the norm, 2008 30th anniversary of series production of ABS
with Brazil taking it to heart, and already in China two out of every three
passenger cars features ABS.

More on ABS in the next issue of ABR.

62 July 2009
The Deep Roots of the Goldfields
The mines are deep in the goldfields of the north western Free State. So are the roots
of many who live in the Welkom, Virginia, Odendaalsrus triangle. It is these roots that
sustain this close knit community and it’s these roots that gave Ben du Plessis and Willie
Claassen the strength to start up du Plessis and Claassen Service Centre, situated at
216 Jan Hofmeyr Street, Welkom, in the heart of the motor trade in this mining town.

I
t takes courage and drive to start your own business in the prime
of your life, and to leave the cosseted confines of the corporate life.
It takes even more courage to start from scratch, but this is exact-
ly what Ben du Plessis and Willie Claassen did, sinking their life
savings into a business venture during the height of a global economic
crisis. Courage comes from crisis, but this was not a spur of the
moment decision. Having worked together for 20 years at the local
Mercedes-Benz dealership, and being close friends during this time,
Ben and Willie had for many years discussed this possibility during
their frequent hunting trips to the Waterberg. It may have been a
sub-conscious imperative, but they were simply waiting for the right
opportunity, as they did not just want to, in the words of Ben, open a
workshop “onder ‘n boom”. The catalyst came in the form of the
Johannesburg Motor Show in October/November 2008, when Ben was
perusing the show catalogue and came upon the e-CAR concept. After The sun is rising on Willie Claassen and Ben du Plessis, with a
modern workshop staffed by highly qualified technicians, offering
contacting e-CAR and after two insightful briefings, Ben and Willie 60 years of Mercedes-Benz technical experience and know-how,
knew that they had found a home, and the time had arrived for this backed up by the e-CAR concept
dynamic duo to divest themselves of their “corporate comfort zone”,
and to tackle a new and exciting challenge. The wheels were put into
motion, and on the 8th May 2009, du Plessis and Claassen Service
Centre was officially opened.

The business became an instant success, and with barely two months
under their belts, Ben and Willie can already declare with absolute
certainty that they have made the right decision. They ascribe their
Welkom roots as having played a central role to their success, as their
clientele comes from the local folk and the surrounding farming
community, the ties to which Willie and Ben have built up over many
years, and this local knowledge and inside track made the venture that Over 80% of the vehicles serviced at du Plessis and Claassen
much easier. The e-CAR name and its links to the Bosch standards Service Centre are Mercedes-Benz passenger and commercial
relating to equipment and training also played a major role in the seam- vehicles, testimony to the ties built up over the past 20 years
less transition from a corporate culture to a more family orientated
culture. Whilst e-CAR has its rules and guidelines, Ben and Willie love
the more informal attitude and the independence granted to them by
an organisation focused on excellence with a personal touch. This
support covers the whole gamut from technical, parts, training, market-
ing, all key to the success of a modern workshop, but what Ben and
Willie truly appreciate is the ethical and moral support which e-CAR
lends to them, aspects that are sometimes undervalued in the hurly
burly of the business world.

To join the fastest growing workshop network in South Africa and to add a new dimension to your business,
contact Wilfried Langenbach at 0860 003 227 (0860 00 ECAR)

64 July 2009
Burford on Brands

Logan’s Run
Renault was the first French brand to return to South Africa in
by Adrian Burford the 1990s, in a deal with Imperial which saw them launch the
Laguna into a market hungry for variety. It heralded the end of a
10 year hiatus, Renault finally giving up on South Africa and its divisive politics
in 1985, closing shop in the wake of PW Botha’s infamous Rubicon speech on
August 15 that year.

I
t also brought the curtain down just as it was going up: in And that has largely been the case since World War II, and it was
1984 the Renault 5 (despite being near the end of its life- post-conflict that Renault was nationalised, company founder
cycle) and newer 9 were both selling strongly, keeping a Louis Renault dying in prison while waiting to be tried for
well-developed dealer network busy. In 1981 about 7 500 allegedly collaborating with the Germans. Small cars like the
R5s were sold, and in 1984 some 10 000 R9s found 4CV and Dauphine becoming the company’s stock in trade,
homes, numbers which made Renault a mainstream player, if not Renault then doing a design about face at the beginning of the
quite in the same league as Ford and Toyota. Renault South Africa 1960s when they changed to the front-engined, front-drive R4.
existed as an entity in its own right to handle sales and marketing The 4 CV was imported to SA from 1953 by Curries Motors and
while the cars were being assembled in Durban by Toyota’s Motor Renault Africa was formed in 1958. Renault lost huge amounts of
Assemblies operation – as the 5 had been since the mid-70s. The money in the early 1980s, causing a major shake-up in which they
brand had a solid reputation for economy combined with the ride sold many key assets and retrenched thousands of workers, a deci-
comfort of more expensive cars. Prior to Toyota’s involvement (the sion which was said to be the justification for the assassination of
brand also marketed the 5 in the earlier years) Renaults had been MD Georges Besse at the end of 1986. His policies stemmed the
assembled in East London, with the rear-engined R8 and the tide of red ink though and the company’s ability to compete inter-
slightly larger R10 flying the brand’s flag from the middle 1960s nationally was further aided by privatisation at the end of the 80s.
to the early 1970s. For those after spacious hatchbacks there was The company has recently celebrated 10 years of the Renault-
the evergreen R16, which had a 10 year lifespan. Meanwhile, the Nissan alliance, an arrangement whereby Renault owns 44.4
imported - and pricey - R8 Gordini and locally-developed - but percent of Nissan which in turn owns 15 percent of Renault. By
much more affordable - R10 Alconi were doing wonders for the the early 2 000s Renault was the darling of the local media: the
brand’s reputation on racetracks. A young man called Jody Clio 1.4RT was chosen as the Wesbank Car of the Year and in
Scheckter cut his teeth in the former. 2004 the bustle-backed Megane II also took the crown. Sales grew
rapidly from about 10 000 units in 2000 to 18 625 just five years
While there weren’t any new Renaults available from end-1985 later, market share peaking at a shade under five percent. Renault
until mid-1996, the brand was kept alive by enthusiasts, aided by South Africa (formed in 2002) seemed capable of doing no
France’s pragmatic approach to at least supplying parts. To this wrong. But since then things have gone pear-shaped and
day, the 5 and 9 remain a surprisingly common sight on our the brand has fallen out of favour: sales dropped in ‘06 and
roads. Imperial’s decision to start importing and distributing the plummeted in ’07 and while they’re not the only ones to suffer in
quintessentially French brand put them at the forefront of our that regard, share was down to 1.38 percent last year.
industry’s rapid regrowth in terms of new badges in the post-
apartheid era. By the end of the century Renault was doing nice- However, the company seems to be on the comeback trail in
ly with a range of Meganes and Lagunas on offer. There was also South Africa and not only is there a rush of new product (not least
a luxurious saloon called a Safrane but the less said about it the of all the affordable Logan and Sandero twins) but the brand is
better. After the Great War Renault had a reputation for building adamant that their issues with indifferent dealers and poor parts
impressive large cars, including some with a giant 3.7 metre availability and pricing have been addressed. So far this year
wheelbase. The company’s inability to build large cars latterly (January to May) they’ve sold 1 304 units with share starting to
(think the outlandish Vel Satis and interesting but flawed climb too. Much of it is on the back of their ‘cheapies’ and
Avantime) has only been matched by its French cousins Peugeot Logan/Sandero seems to be the right product at the right
and Citroen, who should also learn to stick to their knitting. time...and not a moment too soon either.

Answers From page 60

1. Fiat 7. 12 13. Jody Scheckter, Ian Scheckter 18. 305 kms or two hours
2. Tengzhong – China 8. Altech and Eddie Kaizan 19. Egmont Sippel
3. Shreveport USA 9. Max Moseley 14. Hennie Groenewald 20. Citroën
4. VW 10. A1GP, World Super Bikes 15. Timken
5. Toyota Hi-Lux 11. Jody Scheckter 16. Johan Jacobs in a Jet Car
6. 12 12. East London 17. 504,554 km/h

July 2009 65
Howard Keeg follows the action

Partinform Blooms in Bloemfontein


Conceived in 1986, Partinform has grown into a significant parts road show, where-
by reputable manufacturers can display their latest products, and to show cutting
edge technological advances, and most importantly, to talk face to face with the
trade and the end users across the country about the technical challenges facing
the industry, and to inform and educate on various matters of interest and concern,
such as the professional benefits in buying and fitting guaranteed, quality branded
product; and to warn about the dangers of fitting sub-standard or counterfeit parts,
the obvious dangers thereof around roadworthiness; and VERY VERY IMPORTANTLY,
the implications for the industry of the recently promulgated Consumer Protection
Bill. Howard Keeg followed the Partinform caravan into Bloemfontein, where they set
up their stalls of knowledge, wisdom and insight, and invited the locals to partake
of food, drink, information, education, entertainment and very valuable networking.

B
loemfontein is known as the City of Roses, and things of Bloemfontein was established by the trekboers. Bloemfontein is
were indeed blooming at the City Hall, where the famous for its roses, but even more famous for its Cheetahs rugby
Partinform Automotive Trade Show was held on side, named co-incidentally or purposely after Manguang, the
Wednesday night, 17th June 2009. 260 attendees were Sotho name for the city; and meaning “the place of cheetahs”. This
on hand to participate in the action, and by the end of the night, was also the birthplace of such luminaries as J.R.R. Tolkien, Zola
every one of them left with a better understanding of the impor- Budd, Allan Donald, Leon Schuster, Hansie Cronje and many
tance of selling or fitting well known brands, with local support and more, and if a conurbation is the sum of its parts, these celebrities
back-up. It was while observing the goings on during the show that hold the key to understanding that Bloemfontein is a fusion of cul-
I wondered what Johan Nicolaas Brits would have made of all the ture, side splitting humour, sport, and an area which gives any other
fuss, and his take on the amazing advances in the means of mobil- city a run for its money. There is also apparently no truth in the
ity, and the emphasis on quality, roadworthiness and safety, and the rumour that Tolkien found his inspiration for Gollum in
commitment of the purveyors of the components that make all Bloemfontein, but who knows what affected him in his formative
these good things happen. Farmer Brits was the fellow who owned infant years. Enough of the twisted travelogue, and let us take a
the farm that became a British outpost in 1846, and where the city look at the action on the night of 17th June:

66 July 2009
People + products
= Knowledge and Information

July 2009 67
68 July 2009
The Winners Juan Annandale of BNS Workshop, Bloemfontein, was the big winner of the night. He
knew that when disconnecting a battery, the negative battery terminal must be the first
terminal to be disconnected, and this knowledge meant that he will be attending the
Forza Racing Ferrari Track Experience on Friday 19th November 2009 at the
Zwartkops Racing Track, together with the other winners from the other shows. Four
more racing experiences are still to be allocated, at the forthcoming shows:
• Durban Tuesday 21st July 2009
• Klerksdorp Tuesday 8th September 2009
• Port Elizabeth Tuesday 13th October 2009
• White River Tuesday 10th November 2009

Make sure that you attend one of these shows, and you could be part of the Ferrari Fun!!!
Other great prizes were up for grabs.

Danie du Toit got some goodies Samantha Botes from Ficksburg Midas
from Bosch picked up a prize from Goodyear RAM
Gerhard from the Volksie Shop
walked away with a prize
from FRAM
Kallie Malan from Lindsay Saker drew the short straw when it came to the
questions. When asked the difference between a FRAM filter and a cheap
import, his answer that it was of a better quality and had better filtration
properties, did not get the nod from the strict judges. What they were looking Johan Marx and Danie du
for is that a FRAM filter has a better contamination holding capacity. For Toit were the lucky draw
those who will be attending the next shows, be warned – make sure that you winners of the i-POD and
do your homework at the stands. You could get a tough question! Tom-Tom GPS, courtesy of
Willard and Sabat Batteries
Competition Corner
And if you are a reader of ABR, not only are you highly intelligent, you also have a chance to win a Forza Racing Track Experience. Four lucky
winners will be drawn out of the hat at the Port Elizabeth Partinform on the 13th October 2009, and will be advised via e-mail or telephone
by the 27th October 2009, and the winners shall also be announced in the November 2009 issue of ABR. Don’t delay. The entries from the
previous editions of ABR are already streaming in, so get out your thinking cap and answer these three questions:

1. When was Partinform conceived?

2. Bloemfontein is known as the city of what?

3. What important bill relating to quality, service and back-up, has just been promulgated?

Send your answers to fax 086 6579 289 or e-mail bigheart@iafrica.com with the following details:
Name and Surname: __________________________________________________________________________________

Company: ___________________________________________________________________________________________

Position: ____________________________________________________________________________________________

Postal Address:_______________________________________________________________________________________

Contact Tel. no’s:_____________________________________________________________________________________

e-mail address:________________________________________________________________________________________

July 2009
69
Partinform

The CEF Brake Hose you


make up on site for your
customer, is the same
Quality that we supply to
the “OE Manufacturers”
1. Fittings Production 2. Fitting bending Production

3. Inspection 4. Assembly

5. test Assembly 6. Completed Brake Hose

70 July 2009
Vehicle Evaluation

by Howard Keeg Cadillac Man


When I was growing up in the 50’s and 60’s (20th century, for those wondering) there
was only one car for me. My aspiration was not a Rolls-Royce, nor a Ferrari, and this was
long before the new breed of super cars that in those days were not even a twinkle in the
eyes of the designers. The car for me was a Cadillac. The marques of note were the
Studebakers, the Hudsons, the Pontiacs, and the like, and on top of the pile was the
majestic Cadillac. For Elvis and me, this was our dream car. By the time that I eventual-
ly reached driving age in the early 70’s, Elvis had amassed a collection of Cadillacs, but
unfortunately economic reality had kicked in, and petrol prices had kyboshed the
Cadillac, so my sights were lowered somewhat, with my dream car downsized to a Beetle.

I
magine my emotions when, for one mission, which allows for full automatic
week at the beginning of June, I mode or clutchless manual gear changing
had the opportunity to experience a via the gear stick or paddles on the steering
Cadillac, courtesy of those nice wheel. Developed on Germany’s famed
guys at General Motors. And not Nürburgring test track, this Cadillac is a
just a Cadillac, but a 2009 Cadillac CTS. brilliant throwback to the past, being big-
As I slid behind the wheel of a Cadillac for ger than its rivals in the luxury sports
the first time in my life, those childhood sedan class, and all the bells and whistles
dreams came rushing back with a befitting a car of its status. I could go on
vengeance. The CTS is a 3,6 litre V6 pow- and on about the multi-colour pop-up
ered brute, but in one package you have screen which controls the radio, TV, CD,
the beauty and the beast, that can only be DVD player, MP3, GPS (when installed), Just in case you can’t make it home for your
appreciated by a certain type of motorist, the 40Gb hard drive for storing everything favourite soap
or more accurately, motoring journalist. including the kitchen sink, the voice acti-
This species is rare on the ground in both vated channel changing, the on board
Europe and South Africa, so it is no sur- information available, the seat warming,
prise that the accolades have come from the stored driver settings, the leather, wood
more appreciative climes, with the CTS and aluminium finishes, and other features
reaping awards such as the 2008 Saudi which even Paris Hilton would die for, the
Auto Car of the Year, the 2008 Motor superb build quality, the breathtaking han-
Trend Car of the Year – North America, dling thanks to a wide track rear wheel
and the engine making it onto Ward’s drive arrangement on 18” tyres, all for an
Autoworld magazine’s “Ten Best Engines”. incredibly good starting price at R425 000
(for the well heeled), but what I really need
229kW of power and 374 Nm of torque to say is “Go and experience it for your-
makes for effortless driving, enhanced by self ”. And now I’m a Cadillac Man for life,
the 6 speed hydra-matic automatic trans- even if it’s in words rather than deed.

The Yin and Yang, the ancient and


the modern, represented by Maropeng
and the 21st century Cadillac.

72 July 2009
Corporate Conscience

It’s More Than Just


Business #2
In February 2009, Automotive Business Review began a series of articles
under its Corporate Conscience/Industry Update banners, describing the
Herculean efforts of Patrick Latouche, General Manager of Sparepro, to re-
invent and re-ignite the company with a blend of management disciplines and
new wave thinking, putting soul and spirit into the staff, and striving to
allow each and every employee to become the best that they can be, and
inculcating a “Spirit of Team”. These articles were titled “It’s More Than Just
Business”; “Management by Measurement”; “Feeling the Pulse”; “Feeling the
Pulse – with Passion and Precision”; and “An Idea Becoming a Reality”, where-
by we delved into Patrick’s various management by motivation techniques, and the incredible
success that he has achieved so far. For the next two articles, we have gone full circle, as
we look again at “It’s More Than Just Business” with a more enlightened eye.

W
e visited Sparepro on Friday 5th June at 07h10, some Eden, says “There is one thing I know: that people with intellec-
20 minutes early, and found Patrick already ensconced tual disability have great value and that God gave them to touch
behind his desk, analysing the previous day’s sales our hearts and make us better people. From the very beginning,
performance in preparation for his daily pep talk to the sales team. Little Eden has been a place where each individual is not only
This confirmed that behind all his modern philosophies and cared for physically, but also emotionally and spiritually.”
concentration on the “softer” issues, Patrick knows that the foun-
dation is built on sound business principles and good old fash- It is clear that his visit to Little Eden has affected Patrick emotion-
ioned hard work. It was thus only when this daily operational task ally. He says “By visiting Little Eden you realise that life is a gift.
had been put to bed that Patrick turned his attention to our We tend to take so much for granted, but we should stop to think
07h30 appointment, and he got round to one of his intense pas- and to realise how lucky we are to be functional. The kids at Little
sions, and a recurring theme in his approach to business. This Eden feel the cold, get hungry, get happy, and get angry, just as we
recurring theme is that business is like a human being, because it do. The only difference is that they got the short end of the stick
represents the collective souls of the people in the business, and when they were born, which they did not ask for. We should
that healthy souls equal healthy business. Even if this does not realise that but for the grace of God, that could be us, and how
exist, it can be cultivated, because as Patrick says with an evangel- would we feel if we were abandoned. We must accept that we are
ical gleam in his eye. “It is more than just business”. An example here for a short journey, and we must realise that whatever we do
of this is the initiative that Patrick has started in assisting Little to earn our daily living, we are more than just a business. It is not
Eden, a registered non-profit organisation that cares primarily for just balance sheets, income statements, returns on investment. We
children affected by Down Syndrome, cerebral palsy, autism, cannot just measure wealth in monetary terms, wealth is nothing
epilepsy, Dandy Walker syndrome, foetal alcohol syndrome or without a social conscience, and people and business have to get
mental trauma as a result of birth complications or physical abuse. involved in worthy causes to redress the balance of life.” Patrick
Other patients suffer from behavioural problems or mental ill- bemoans the attitude of some people who say that if there are no
nesses such as schizophrenia, thus unable to function in normal returns, that they will not contribute and just wash their hands.
society and who have to rely on their carers for help with eating, “Children with no future may not give returns in the convention-
bathing, dressing and other daily activities. Nevertheless, each one al measurements, but they can give returns in other ways”, he says.
is an individual with something to contribute and very often
something to teach us, like patience, joy in small achievements, More on this in the August 2009 issue of ABR.
trust and love. As Domitilla Rota Hyams, the Founder of Little

Little Eden Founder Domitilla Rota Hyams with Shaun. Shaun looks like a
normal little boy, but he suffers from all of the affects of foetal alcohol syn-
drome – small for his age, physically and mentally disabled, a hauntingly sad
and empty gaze. But he was also a beautiful baby who screamed non-stop for
days after he arrived at Little Eden, suffering acute withdrawal symptoms after
being born to a mother who drank alcohol and took drugs during her preg-
nancy, but today he smiles and responds to people and can point to his nose
and mouth when asked. Shawn will never be normal, nor will he contribute
to society in the conventional way, but he has reached a stage where he can
touch the hearts of everyone who meets him; a milestone that simply would not
have been possible without the dedicated care, encouragement and love of
Little Eden’s wonderful therapists and nursing staff.

74 July 2009
Road Safety

DWD as bad as DUI


The Bridgestone Committee for Active Road Safety (CARS), a subsidiary of
the South African Guild of Motor Journalists, conducted an interesting
pilot study at the Wanderers Club, Illovo, Johannesburg, on 28 May
by Howard Keeg 2009. The purpose of the study was to determine the effect of operating
a cell phone in either talk or text mode while driving. The results were
rather predictable, as previous research has given us the clue.

Eugene Herbert of Skidpan Advanced Driver Training conducted the study

I
n actual fact, I do not need research to prove what is going
on under my very own eyes every day of my life. Whenever
I observe slow or erratic driving during the day, my immedi-
ate assumption is that the idiot is on a cell phone, and nine
times out of ten I am correct. The exceptions are newly minted
drivers who obviously did not get their driver’s licences legally, or
who simply do not have a driver’s licence. At around midnight, one
is confronted with a totally different scenario, with high speed, low
speed, erratic driving, and other hair raising antics thrown into the
mix, all fuelled by alcohol. Coming back to the study, the results
confirmed that DWD (distracted while driving) is as bad as DUI
(driving under the influence), which, as I said before, is as simple
as ABC (a bloody certainty). Research data from various other
studies make for compelling reading:
• Distraction from cell phone use while driving (handheld or
hands free) extends a driver’s reaction as much as having a blood
alcohol concentration at the legal limit of .08%
• The number one source of driver inattention is the use of a wire-
less device
• Driving while using a cell phone reduces the amount of brain
activity associated with driving by 37%
• Motorists on the blood-alcohol edge drive better than sober
drivers using cell phones
• Phones ringing startle people, and most people feel compelled
to answer them regardless of the traffic situation they are in.
There are many more such statistics, suffice to say that the logical
conclusion is that anyone who uses a cell phone while driving
should be incarcerated in a cell for a salutary period. To get full
details of the study conducted on the 28th May, you may contact
Dr. Lawrence Barit at barit@tiscali.co.za

July 2009 75
Fast Wheels

THE BRAWN FORMULA


ONE GP TEAM ROLLS ON by Roger McCleery

The fairytale entry and successes of the Brawn GP Team in Formula 1 World
Championship Racing continues. Jensen Button at the end of the Turkish Grand Prix out-
side Istanbul at the beginning of June had chalked up 6 wins from 7 starts. Only Jim
Clark (Lotus) and Michael Schumacher (Ferrari) had ever achieved that sort of record.
If Schumacher had won 6 out of 7 GPs to start the season the Then the Formula 1 circus went across the Bosphorus to the Asian
British Motoring Press would have been shouting that he and side of Turkey for Round 7 of the season. Ferrari had won the last
Ferrari are ruining GP racing and he is arrogant into the bargain four races here and with all sorts of aerodynamic devices now fit-
(which he is not). Button doing it is OK, and I must admit it is ted were getting closer. Vettel got pole in practice but it was Button
fantastic to see a new team and their star English driver, who lis- who passed him around the circuit on Lap 1 when Vettel went off
tens to Brawn, bringing a happy smiling face to the racing. on a fast corner and that was that. Vettel was quick and had anoth-
Button takes all in his stride. You can see that the Brawn team is a er go at Button but his choice of tyres failed him and he came
happy crowd compared to some of the others. With success behind home in 3rd spot. Button 1st, Rubens out with gearbox problems.
them like this already why wouldn’t they be? Weber’s 2nd spot was seven seconds behind Button and his best
finish ever in a Grand Prix. Toyota and Toyota-engined cars recov-
After Brawn had a one/two finish in Australia people like Renault’s ered from previous problems with Trulli 4th and Nico Rosberg in
Briattore cried “Foul” and that they had broken the rules. his Williams 5th. First Ferrari was Massa in 6th.
Everybody said it was the diffuser under the car. Then the “Lie-
gate” saga unfolded in Malaysia with Button having another win Lewis Hamilton with the fastest car was 13th. He almost seems to
and only gaining half points when the race was abandoned early have given up this year or altogether after his “Lie-gate’ scandal
due to a huge storm and fading light. seems to have got rid of some of McLaren‘s key people.

The Chinese Grand Prix, also run in heavy rain saw a Red Bull vic- While all the racing has been taking place, Max Moseley, Bernie
tory with Sebastian Vettel and Mark Weber leading home Button Ecclestone and the Formula 1 team is at war, in public. Like the
in 3rd. formula 1 technical rules which never aim to make for close rac-
ing, the FIA never seems to fail by doing things that none of the
Bahrain in April saw other teams sprouting diffusers under their public or the teams wanted in the first place. Max wants more
cars. It didn’t matter as Button took his third win with Vettel 2nd teams on the grid spending a lot less money so he has put a cap on
in the Adrian Newey-designed car. Good to see Toyota in 3rd with it. He has given as much testing and development as they would
Lewis Hamilton 4th and Barricello 5th. Raikkonen picked up his like. The manufacturers’ teams don’t want the “cheapies” to down-
first points for the year for himself and for Ferrari. He finished 6th. grade the sport. Ferrari, BMW, Renault, Toyota and some of the
Things looked like they were getting closer at last. others say they could depart the sport. It could be the end of the
worldwide exposure they get on a Sunday. They are now thinking
You reckon? The “Bearded Duo” of Jensen Button and Ross about suing the teams.
Brawn, the brains behind Schumacher’s success, engineered anoth-
er one/two for the Brawn GP Team in Barcelona. Button 1st , An alternate series could be found.. This is the A1 Grand Prix
Rubens Barricello 2nd. Championship which uses Ferrari power already. It has a good for-
mat and lots of passing. One way or another let’s hope they sort it
Monaco, said the experts, and for that matter, all the other teams, all out for the best.
would even the playing fields. A good qualifying would make all
the difference as there is almost no passing on the narrow streets of
this Principality. The jewel in the GP crown provided a glamorous
afternoon looking at the rich and famous, sunbathing on their top
From p 22

toys floating in the harbour. Result? Another one/two finish for the
Brawn GP team. Win number five out of six Grands Prix held so
far, with Button seven seconds in front of Barricello. Ferrari got
onto the leader board with Kimi 3rd and Massa 4th.

This Monaco Grand Prix will always be remembered for another


bit of motor sport folk lore. After his win Jensen Button parked
his car in the pits instead of in front of the Prince at the podium.
Nothing daunted, he set off on foot and sprinted at least a kilome-
tre in full racing gear to get his trophy, to the cheers of the crowd.

76 July 2009
The Last Writes by Baron Claude Borlz

My dead readers are brilliant. Read on ………….


Priceless Observations: By all means, marry. If you get a good wife, Until I was thir-
you’ll become happy; if you get a bad one, teen, I thought my
Sometimes, when I look at my children, you’ll become a philosopher. – Socrates name was Shut Up.
I say to myself, “Lillian, you should have – Joe Namath
remained a virgin.” – Lillian Carter, I was married by a judge. I should have
mother of Jimmy Carter asked for a jury. – Groucho Marx I don’t feel old. I don’t feel anything until
noon. Then it’s time for my nap. – Bob
I had a rose named after me and I was very My wife has a slight impediment in her Hope
flattered, until I read the description in the speech. Every now and then she stops to
catalogue: “No good in a bed, but fine breathe. – Jimmy Durante I never drink water because of the disgust-
against a wall.” – Eleanor Roosevelt ing things fish do in it. – W.C. Fields
I have never hated a man enough to give
Lat week, I stated that this woman is the his diamonds back. – Zsa Zsa Gabor We could certainly slow the aging process
ugliest woman I have ever seen. I have since down if it had to work its way through
been visited by her sister, and now I wish to Only Irish coffee provides in a single glass Congress. – Will Rogers
withdraw that statement. – Mark Twain all the four essential food groups: alcohol,
caffeine, sugar and fat. – Alex Levine Don’t worry about avoiding temptation.
The secret of a good sermon is to have a As you get older, it will avoid you.
good beginning and a good ending; and to My luck is so bad that if I bought a ceme- – Winston Churchill
have the two as close together as possible. tery, people would stop dying.
– George Burns – Rodney Dangerfield Maybe it’s true that life begins at fifty, but
everything else starts to wear out, fall out,
Santa Claus has the right idea. Visit people Money can’t buy you happiness, but it does or spread out. – Phyllis Diller
only once a year. – Victor Borge bring you a more pleasant form of misery.
– Spike Milligan By the time a man is wise enough to watch
Be careful about reading health books. You his step, he’s too old to go anywhere.
may die of a misprint. – Mark Twain – Billy Crystal

Of course, Rodney Dangerfield is famous for his close


to the bone one liners, like these which can be printed
after censoring, and only for those with a sense of
humour. There are many others that simply can’t be
cleaned up:
orn-
a c e m e tery this m
ing in hind a
I was walk a b lo k e hiding be
w
ing and sa e.
graveston
"No,
in g ." H e replied,
orn
I said, "M g a s#!t."
just havin

Went to my first Iraqi birthday


party last week. The musical chairs
was a bit slow, but $%#@ me,
pass the parcel was quick!!!

ys, "Can I
tr o l st a ti on and sa
p e
lks into a hunky?"
A man wa h a ve a KitKat C
plea se
nky
itKat Chu
g e ts him a K ,
behind th
e ti ll s the n m a
The lady to h im . "No," say @ !"
s it back $ #
and bring you fat %
a n o rm al KitKat,
"I wante d

July 2009 77

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