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CONTENTS

Building on a century of achievement iii


A Remarkable Track Record / Salutations iv
Close Collaboration is the Key / Growing the Industry v
The Changing Motor Industry Landscape / “What Interesting Times These Were” vi
An Exclusive Club of Forward Thinkers vii
The Beginning x
The Need for the RMI xi

Who is the RMI? 1


The Dynamic RMI Executive Team 2
The RMI Associations 3
RMI Centenary Dinners 6
Robert Bosch - An Entrepreneur with a sense of responsibility 9
The Dealer Bank 19
There is More to Midas 24
Go Green ….. Go Willard 29
Nissan – a Global Player with true South African Roots 33
Giving Birth to Tonii 36
AutoZone - Creating Synergy 39
Barloworld - 50 years of Change 41
Bridgestone – nearly 75 years of service in the tyre industry 43
Supplying and Nurturing the South African Automotive Aftermarket 45
Federal-Mogul Aftermarket – Champions of the Industry 47
The Grandmasters in Quality Automotive Parts Supply 49

page i
CONTENTS

Launch Tech Co Ltd 51


Lazarus Motor Company – The humble acorn grows into a mighty oak 53
Taking Care of our own 55
Striving for Excellence 57
“We Do Things Differently” 59
Toyota Continues to Lead the Way 61
Progress over half a century 63
Automotive Aftermarket Manufacturers Association 65
Promoting World Class Competencies 66
Achieving Maximum Productivity 67
Thermal Management Comes of Age 68
The Power of Three 69
Life Begins at 40 70
Tri-Nation Alliance 71
Castor Oil Started the Castrol Success Story 72
Clear Vision Ahead 73
From F Hoppert to Diesel-Electric 103 Years Service to South Africa 74
Leaders in Ignition Engineering 75
Formidable Combination of Drive, Innovation and Skills 76
Econometrix - Road Maps for Future Business 77
Equipment that keeps us Moving Forward 78
Ferobrake: More than a Century of Service 79
Getting Exided About Batteries 80
Focused on Commitment, Dedicated to Excellence 81
A Head Above the Rest 82
As Much a Part of SA Culture as Braaivleis and Sunny Skies 83
Support and Service for Durban’s Harley Owners 84
Henkel – a Brand like a Friend 85
The Royal Seal 86
To the World with Perfection 87
McCarthy – a Major Player with a Proud History 88
MISA : The Trade Union of Choice 89
Permatex – 100 Years of Innovation and Leadership in Chemical Tools 90
A History of Exceptional Service to the South African Auto Industry 91
The Prufe of the Pudding 92
Tenneco on Top of the World 93
Timken Celebrates 77 Years in South Africa 94
The Fusion of Passion and Excellence 95
Making Traxx 96
In Safe Hands 97
RAM Belts & Hoses - Standing the Test of Time 98
Z is for Zoom! 99

Index 100

RMI Code of Conduct and RMI Objectives 101

page ii
MESSAGE FROM THE CEO

Building on a century of
achievement
The RMI has achieved much in its one hundred and one years’ existence. It is not easy to unify a diverse
conglomeration of automotive industries and personalities, particularly in an industry that has had more
than its fair share of larger than life characters and a wide range of ambitions and egos. However, the
RMI has managed to achieve the practically impossible with very little exception over its rich and storied
history, delivering on its vision of service, quality and professionalism. This is indeed an indication of
the quality of its founders and the successive torch bearers. Our mission today and in the future is to
extend and elevate these aspirations to the highest levels amongst our members, and to broaden this
dynamic reach to all corners of South Africa and to all segments of our society, from the multinational
manufacturers, importers, distributors and dealers, government and big business, right down to the
customers and consumers who have sustained our industry for a century, and will continue to sustain
these valuable service providers for many years to come.

A
s I write this, I reflect on cling to old ways.” The only difference
how the industry has re- to past challenging times is that the rate
cently gone through a of change we face is now at an unprece-
traumatic period, facing dented pace. Advances in technology
economic challenges in ex- and its application are incalculable and
tent not experienced before. The last year nigh impossible to predict. The RMI is
has seen significant consolidation and ra- striving to up its game and to advance to
tionalisation among dealerships and net- a level of proactive engagement where
works, as the industry has girded its loins solid research and effort leads to practical
and looked for ways to weather the crisis, solutions that create optimal solutions
with a commitment to come out of the for all its members. Our track record in
crisis stronger and in a better position to implementing solutions speaks for itself,
weather future shocks. The good news is but we realise that we cannot afford to
that the economy is starting to recover, drop our guard, or to take our eye off the
and the RMI has played a role in ame- ball. It is imperative that we increase our
liorating the situation by researching all local skills base and that we retain quali-
aspects pertaining to turbulent economic fied technicians by making all the aspects
and market conditions, and by providing of our trade highly regarded and profes-
practical advice for workable solutions to sionally relevant. We must recognise the
its members. We also realise that we as ships impacting the economy, and this changing global dynamic and address the
an industry are not alone in these en- combination of uncertainty and adver- emerging east as a priority consideration
deavours. And South Africa is also not sity negatively affected general business in our business models. We also have a
unique in having to face the vagaries of and consumer sentiment. This is not responsibility to transform the industry
economic cycles. The realities we face are unique, and it has happened many times into a more representative demographic
the realities the world faces, and these re- in the past, and we have always pulled without throwing the baby out with the
alities are not only impacting on the au- through. This knowledge sustains and re- bath water. Let us roll up our sleeves and
tomotive industry, but on every facet of assures us. As I said in my executive ad- prepare our industry for the next 101
commerce and society, throughout the dress last year, “as always, these things years, side by side!
globe. Our country has also recently shall pass. In these dark times, we need
Jeff Osborne
gone through a period of political insta- to accept a universal truth, that of
bility, which added to the tangible hard- change. We cannot stop it and we cannot CEO of the RMI

page iii
PRESIDENTIAL REFLECTIONS

A Remarkable Track Record

I
n 1908, Sir Albert Atkey formed the Throughout the very rich history of the organisation, members’
South African Society of Motor needs as well as the macro-environment have driven its strategic
Traders, the first forerunner of the direction. We have a remarkable track record, and we have not
RMI. There were 17 Johannesburg only made significant progress in recent years, but have continued
motor traders who made up the mem- to attain outstanding achievements in many facets of our business.
bership. Today, 101 years later, the RMI The organisation has never been stronger or more stable. Assur-
boasts a constituency of nearly 7800 ance and commitment to the interests of the motoring public in
members across South Africa in terms of a code of conduct honoured by all our members, is what
13 different constituent associations. strengthens the RMI’s brand and reputation. The motor industry
As an organisation, we are of the same has always been a barometer for the growth or decline of the econ-
era as many remarkable feats of history. omy. There are huge challenges currently facing our membership
At the beginning of the 20th Century, in terms of the prevailing economic climate. The future requires
Henry Ford was determined to build a simple, reliable and more focused business efficiency, innovation and resilience, and
affordable car. On 1st October 1908, the first model T Ford rolled the same kind of endurance that has carried the RMI through for
off the production line in Detroit in the USA. The purchase price 100 years. As President, I am immensely honoured to be associ-
was $825, with 10 000 being sold in the first year. The second ated with the RMI at the time of its centenary. As a member, I am
innovation at the same time was the assembly line, and while not even prouder to carry through its values and commitment to the
conceiving the concept, Henry Ford perfected it. It is hard to imag- consumer.
ine how this was achieved 100 years ago without the technology
we have at our disposal today. Many other interesting events Ferose Oaten (Mrs)
happened at the beginning of the 20th century. The RMI was President of the RMI
already 10 years old when Nelson Mandela was born.

Salutations

T
here is no doubt that the better. It is certainly deserving of our continued support.
motor industry with all its I found my tenure as President of the RMI a very stimulating,
challenges, remains an excit- learning experience. At McCarthy’s we have always taken our
ing industry to be involved in. It is broader industry responsibilities seriously and I was therefore
dynamic and multifaceted, with privileged to have followed in the footsteps of legends like
many stakeholders. The role it plays Errol Richardson and Theo Swart. Our commercial director
in both the economies of countries as Lazola Madikizela, who is serving on the RMI board at pres-
well as the lives of people, is signifi- ent, is continuing this McCarthy tradition. It was also a spe-
cant. No wonder then that it is such cial privilege working with a most professional board that gave
a high profile industry, also here in me wise counsel, and a committed executive team under the
South Africa. The customer facing re- leadership of Jeff Osborne.
tail sector in particular, tends to enjoy a lot of attention. It is
in this regard that the RMI, and its predecessor the MIF, have What about the future?
played a valuable role over the past 101 years. I am proud of I am hopeful that we will see an improvement in trading con-
the manner in which our organisation has consistently pro- ditions, soon. The next phase of growth is likely to start early
jected the image of our sector, and how they have represented next year. Due to the nature and complexity of our industry
us on many national forums over the years. I salute the many we will continue to face many challenges in the future. For
office bearers and volunteers who distinguished themselves in this reason the need for an organisation like the RMI will only
the quality of their service to the RMI, for the benefit of all increase. “Unity is strength” has never been more appropriate.
its members. The ability of our sector to speak with one voice The RMI under the capable leadership of Ferose Oaten can
has definitely stood us in good stead when it comes to matters certainly count on my support as well as good wishes for the
of common interest. So many examples can be given where next 101 years!
the RMI successfully negotiated changes to legislation, regu-
lations and policies. From my perspective I can state with con- Brand Pretorius
fidence that the RMI has succeeded in making our businesses Immediate Past President of the RMI

page iv
A NOD FROM NAAMSA

Close Collaboration is the Key

N
AAMSA congratulates the Re- R4,2 billion in 1995 to R94,2 billion in 2008. Close on 1,5 million
tail Motor Industry Organisa- South African manufactured vehicles have been exported since
tion (RMI) on its positive 1995 to date. The export growth has been accommodated by major
contribution to the interests of con- investments in best practice assets and state-of-the-art equipment,
sumers and the broader automotive in- skills upgrading, productivity gains and upgrading of the whole
dustry in over 100 years’ existence in automotive value chain. Currently first world economies are in the
South Africa. The specialist role and in- middle of severe recession as a result of the global financial and
terface of the RMI between vehicle man- economic crisis. This is having a negative knock on effect on
ufacturers, importers and distributors of emerging market economies, including South Africa. Going
motor vehicles and the industry’s con- forward, the South African automotive industry will have to
sumers has added tremendous value over continue focusing on significant improvements in its international
the past century and remains critically competitiveness in respect of production costs, without compro-
important for the future growth and development of the entire mising high quality levels.
South African automotive industry. Close collaboration between
all role-players in the domestic automotive industry is key to the The future and fate of the South African automotive industry, its
future sustainability of the industry in South Africa. The South contribution to the country’s economy as well as the country’s con-
African motor industry incorporates the manufacture, distribution, tribution to the continent will largely be determined by the effec-
servicing and maintenance of motor vehicles and plays a vital role tiveness of responses to global pressures. The positive developments
in South Africa’s economy, contributing during 2008 about 7,3% and achievements in the South African automotive industry, since
of the country’s R2 283 billion Gross Domestic Product (2007: 1995, have been driven by a supportive automotive policy regime.
R1 995 billion). Since the implementation of the MIDP in Sep- The Automotive Production and Development Programme
tember 1995, the South African automotive sector has grown in (APDP) to replace the MIDP from 2013 onwards should enable
stature to become the leading manufacturing sector in the country’s vehicle manufacturers and their suppliers to plan strategically for
economy. A compounded annual growth rate of 27% in rand value the future and to finalise investment decisions with confidence and
terms for completely built-up vehicles (CBUs) and automotive certainty. It should also enable various manufacturers to tender for
components exports has been achieved from 1995 through 2008. the production of new models in South Africa.
Total automotive industry exports (CBUs and components) in rand
David Powels
value terms increased more than twenty-two fold from the
President, NAAMSA

Growing the Industry

T
he National Association of Both the RMI and NAAMSA are trade organisations commit-
Automobile Manufacturers of ted to the principles of free enterprise and the promotion of the
South Africa (NAAMSA) interests of the broader South African motor industry. Both
salutes the Retail Motor Industry organisations have built up a constructive working relationship
Organisation (RMI) on over 100 years in matters of mutual interest and this in turn has provided a
of outstanding service to the automo- strong platform to support the further growth of the industry
tive industry and its customers in the in future years.
areas of new and used vehicle sales as
well as vehicle servicing, maintenance NAAMSA looks forward to continuing to work with the RMI
and repair. Over the past century, the to grow and develop the industry and to enhance the welfare
South African motor industry has of our customers.
developed considerably evolving progressively from initially an Nico Vermeulen
importing sector into an increasingly self-sufficient industry
Executive Director, NAAMSA
comprising vehicle manufacture, distribution, servicing and
maintenance. As is the case globally, there is a large degree of
interdependence amongst all the role-players in the South
African automotive industry. In case of South Africa, however,
it is significant to emphasise the constructive way in which
industry, labour and government co-operate to maximize the
contribution of this key sector to the South African economy.

page v
NAACAM NOTES

The changing motor industry landscape

T
he RMI's start to the organisa- nents are a guarantee of quality and ensure safe motoring. Imported
tion's second century has found components from some countries are a safety concern, with at
itself in a very difficult economic times the public and members of the auto service industry sacri-
environment. Local production of ficing quality for price and therefore putting lives at risk on the
motor vehicles in 2009 will in all prob- roads. It is vitally important during these tough times for the South
ability be less than 350 000 vehicles, a African industry, NAAMSA, NAACAM and the RMI to work
far cry from the heady heights of 700 even closer together to ensure that our industry pulls through this
000 we have been experiencing in the mighty recession, and emerges strong and more unified. The
immediate past. The industry is going brighter news is that spring always follows winter. We remain con-
through a severe correction, and unfor- fident that our industry will emerge strongly from this economic
tunately due to a lack of stimulus from correction. The important aspect is that we all ensure that our busi-
the government we will just have to ride nesses learn the lessons from the excesses we have enjoyed in the
out the cycle. This the industry will do, we have done it on a few 'boom times' and that most importantly we tackle the 'hard issues'.
occasions over the last 30 years, and I have no doubt we will do it The new road infrastructure and the FIFA world cup next year,
again, but it will bring about a changed motor industry landscape. will I am sure provide the impetus to get our industry back on
In terms of the immediate future, component companies and RMI track. The most important strategy going forward is to ensure that
members, will need an even closer relationship between NAACAM the motor industry becomes more united, and that the three major
and the RMI. Component manufacturers need to supply the af- industry organizations work even closer together and support each
termarket more aggressively to offset the falling demand to OEMs other. The motor industry is the most energized sector in the SA
and the challenge to component exports caused by the strong local economy, and we need to build on this strength to improve our
currency. The good news is that the number of cars on our roads great industry which is the cornerstone on which our entire econ-
has swelled significantly over the last five years to over eight million omy rests. Congratulations to the RMI on going into your second
vehicles, all these vehicles need to be serviced, and a very important century, only truly great organisations can endure and thrive that
thrust for the component industry is to encourage South Africans long. NAACAM looks forward to working with you even more
to buy local components. The country urgently needs to support closely as we move into a new era in our industry.
our local industry, not only does it help to create and maintain em-
Stewart Jennings
ployment, the country’s primary need, but South African compo-
President, NAACAM

‘What interesting times these were’

N
AACAM was established in accordingly. The first dark clouds came in the mid-eighties with
Port Elizabeth in July1980 by the developing nations crisis which dramatically weakened the
representatives of twenty Rand and pushed vehicle prices up. The resultant rethink of eco-
major automotive component manufac- nomic policy caused government in the late eighties to change the
turers who felt the necessity for a strong local content measurement from weight to value and allowed
organisation to represent their interests exports to count towards the targets, the so-called Phase VI of the
effectively to Government, vehicle man- Local Content Programme. Suddenly, suppliers had to think about
ufacturers and other authorities. Most efficiency and costs a lot more seriously, as an element of compe-
of these companies had been members tition began to creep in! To make matters worse, the Phase VI
of the Motor Industries Federation, the period coincided with the toughest years in memory for the vehicle
RMI’s predecessor, but this divorce was market, with sales back to levels last seen twenty years previously,
amicable, and happened with the MIF’s and 38% below the 1981 peak. As a result of these factors,
understanding of the necessity. What interesting times these were. employment by component companies fell to their lowest recorded
The car market was growing from strength to strength and about levels – less than 50 000 compared to over 80 000 in the early ‘80s.
to reach a peak that would not be surpassed for 23 years! Manda- Fortunately the replacement market remained strong, and the
tory local content had just been extended to include light commer- establishment of fitment centre franchises around the country gave
cial vehicles in addition to cars, and there were talks of a much-needed boost to the parts market and strengthened ties
political sanctions against South Africa which would have required between NAACAM and the RMI. Since then the MIDP and the
even more local content. No wonder the component manufacturers globalisation of the South African industry have changed the face
decided to flex their muscles! By 1985 there were over 100 member of the market, and with both NAACAM and the RMI having
companies, mostly locally-owned, and the Association decided to grown and remaining strong, and working together to ensure future
move to Gauteng, which had taken over from Port Elizabeth as the growth for another 101 years!
major automotive producing region. To be honest, up until that
time the component manufacturers had it fairly easy, because since Roger Pitot
1960 there had been mandatory local content, and so a number Executive Director, NAACAM
of companies had virtual monopolies and ran their businesses

page vi
NOTE FROM THE PUBLISHER

With over 35 years in the automotive industry, in various management roles, from financial
to marketing to chief executive, Graham Erasmus is an industry all-rounder. Now in auto-
motive aftermarket publishing, Graham subscribes to Motilal Nehru’s maxim that there are
two types of people; those that get the work done, and those that take the credit for it, and
that it is better to be amongst the former as there is too much competition amongst the latter.
Also does not disagree with the adage that there are three types of individuals; those who
make things happen, those who watch things happen, and those who say “what the hell hap-
pened?” Loves all of humanity, but does struggle intensely and passionately in suffering fools
gladly. He has a B.Comm (Accountancy) from the University of Port Elizabeth. Professional
memberships include MTCCA, MIMM, AFEC, and the SAGMJ.

An Exclusive Club of Forward Thinkers


When Trilogy Publishing was commissioned at the end of March 2009 to produce a prestigious edition celebrating 101
years of the Retail Motor Industry Organisation, it was with a sense of humility that we approached the project. Not only
did we have to do justice to a century of achievement, we also had to include the history of the companies that contributed
to the development of the South African automotive industry, in all its forms, over the past 101 years, and to provide a
rich tapestry of our pioneering past, and an acknowledgement of those who came before us, those who are today adding to
this history, and those who are still to add to the chronicles in the future. A daunting task, which we tackled with relish,
as it is a fantastic sense of achievement just to participate in such a wonderful venture.

T
he major obstacle in our endeavours was the question which we believe has added to the superb feel and finish, and
of space. In today’s frenetic times, space in all its man- contributes to an inspiring manuscript and record to be treas-
ifestations is at a premium, and we recognised the fact ured forever. Our only concession to colour is the RMI logo
that we could not indulge ourselves in covering one hundred at the foot of each page, and our montage of the vibrant gala
and one years through the luxury of chapter and verse. We are, dinners that the RMI held in 2008 to commemorate their cen-
after all, in the Twitter age, and attention spans are not what tenary. These gala dinners were made possible through the
they used to be. Thus, we initially decided to limit this glori- generous sponsorship of WesBank and Bosch. This publica-
ous commemoration and remembrance to 50 companies and tion is a remembrance of what we are, an acknowledgement
organisations, later revised ambitiously to 101 entities and of where we’ve come from, and a pointer of where we are
eventually revised to what we eventually ended up with, an going. Our endeavours to get an all encompassing participa-
exclusive club of 54 forward looking establishments. And we tion came to nought, because many in the industry com-
added the extra burden of brevity on our writers’ shoulders by mented that this was a difficult time to bring out this tome,
insisting on economy of words. We assembled a fabulous team and therein lies the reason why we had to bring it out. Even
of motoring journalists to write this history, with a tight but in the darkest times, there is a silver lining, and remembering
flexible brief: to distil the essence of each company’s contri- the good times helps us through the bad times, and allows for
bution to the South African automotive industry into a short us to seek the future.
and vivid account of the past, the present and the future, and
to recognise the global influences, but to seek out the local We started to approach sponsors in May 2009, during the
highlights and the nuggets of idealism which lie buried in each midst of one of the deepest recessions since 1929, and whilst
and every story. Sounds quite tight, but we gave the writers the reception to RMI 101 was initially encouraging, by early
free rein to do this with their individual flair. And we trust August 2009, as the recession deepened, we realised that the
that you agree with us that they have delivered, in spades, in appetite for celebration was not very high. So we adjusted our
bringing to you unique eureka moments. sights, and decided to let market and emotional forces dictate
the size of the publication, based on a triad of marketing pil-
In the early stages of this project, we realised that with South lars; we were to promote our venture through three specific
Africa being a melting pot of cultures, class and heritage, and routes: e-mail communication, advertising, and personal ap-
with historical documents mainly in black and white, and in peals. This would effectively be a distillation process that
various states of condition, that colour would impinge on the would separate the wheat from the chaff, with the resulting
classical nature of this book, so we settled for a sepia finish, book, no matter how thin or how thick, representing the

page vii
NOTE FROM THE PUBLISHER
cream of the crop, the crème de la crème of the automotive exercise, but an imperative based on the fact that the oppor-
industry. In this publication, you will then find companies tunity had been lost the previous year, and this was a creation
with advanced perception, comprehensive understanding, of a vehicle to correct this oversight. Many companies, partic-
total vision, reverence for what they represent, and content- ularly those who provide ancillary services to the automotive
ment and a feeling of fulfilment about who they are and what industry in various forms, such as research, financial, auditing
they are about, all gelling into a celebration of their past, their and consulting services, and who basically feed off this won-
present, and their future. A real life demonstration of Maslow’s derful and giving industry, were approached but deemed it fit
Hierarchy of Needs; not from a personal perspective, but in not to participate, which is a great pity, but which serves as
reality an organisation actually reaching self actualisation. an indication of the mindset that causes companies to fail in
Thus, this compilation is a gem, a collector’s item, and a pub- the bad times; but a plea nevertheless to those missing from
lication of historical import; something to be savoured, cher- the RMI 101 honours list to add a codicil to your wills, in-
ished, and treasured as a historical milestone identifying and structing your grandchildren and great grandchildren to def-
honouring those who refuse to be bowed by historical circum- initely participate in the 150 and 200 year editions – if your
stance, and those who realise that life goes on, and these are companies are still around, that is! Another notable omission
the people, companies and institutions that one can rely on is a foreword from the Minister of Trade and Industries, not
to pull the cart through the drift, no matter how strong the for lack of trying on our part. The 50 year and 75 year RMI
back pull. On this premise, you are holding in your hands editions did have forewords from the Ministers of Economic
not a blockbuster in the conventional sense of the word, but Affairs in 1958 and 1973, but this was not possible for this
an exclusive collection of very special companies and very spe- issue, as our publishing deadline could not be met by the pres-
cial people, a physical manifestation of entities and personal- ent incumbent. Maybe better luck next time.
ities that will be around for many years to come, and who will
definitely be in the RMI 150 and RMI 200 year editions. Please treasure this book of celebration. It deserves great
A big thank you to the visionaries who made this project pos- care, and so do you.
sible, a project that from the outset was never a money making 8th October 2009

Howard Mellet – Managing Editor


Howard Mellet is a veteran of more than 25 years in the publishing industry in South Africa. He was instrumental
in launching SA LAN Times magazine in 1989. He has had associations, in consulting editor roles, with other
publications, including the South African edition of Information Week. He has been published in Business Day,
Millionaire Magazine, Finance Week, Anytime Magazine, Drive, TopBike, Automobil and others. He is a past
projects editor of Truck & Bus magazine and editor of AutoInsight magazine. He is a member of the SA Guild of
Motoring Journalists (SAGMJ).

Jackie Kraft – Concept, Design and Development


Fifteen years in the graphic design and marketing field. After reading for a Bachelor in Visual Arts at the University
of Pretoria, majoring in Information Design, she moved to a leading advertising agency in Johannesburg before
founding J.Kraft Information Design (KID). KID specialises in the complete spectrum of visual communication
from print design to electronic media and marketing campaigns. For relaxation, Jackie can be found at her local
golf course, when not burning the midnight oil.

CONTRIBUTING EDITORS

-
Adrian Burford Adrian Burford has been writing about cars and motoring for 21 years, joining
the now-defunct Drive magazine as a cadet reporter in 1988. A freelancer for the last decade, one of his main
clients is the AA Traveller magazine. As the motoring editor his prime objective is to look at motoring from the
perspective of Joe and Jane Average, and prevent them from making poor decisions. A keen cyclist, his pet hates
are taxis, potholes and mindless SUV drivers, not necessarily in that order. When the test car well occasionally
runs dry, he is found behind the wheel of his classic BMW 2002, which, as he puts it, acts as a great reality check.

page viii
CONTRIBUTING EDITORS

-
Peter Burroughes Peter Burroughes is a freelance motoring journalist and PR/marketing con-
sultant who is in his fifth decade of observing, promoting and reporting motoring and motor sport. He has worked
in both print and electronic media, in advertising and public relations and has travelled the world in the course of
his assignments. He currently covers national championship circuit racing, off road racing and rallying for various
clients and is media consultant to Team South Africa competing in the A1GP World Cup of Motorsport and also
to Gauteng Motorsport Company. He is a member and past chairman of the SA Guild of Motoring Journalists
(SAGMJ) and a recipient of Motorsport South Africa’s Lifetime Achievement Award.

Paul Collings -
Paul Collings is a freelance journalist and Special Report Correspondent for Fleet-
Watch Magazine. He has specialised in writing about and photographing commercial vehicles since 2004. He is
also a published author and winner of the 2003 Anglo Platinum Short Story Award. He lives in Johannesburg and
is father to a son, Alex.

Gavin Foster - Gavin Foster began his freelance career as a fulltime photojournalist in 1993. Able to
write on just about any topic, his work was in constant demand. He is a jury member for the SA Guild of Motoring
Journalists (SAGMJ) Car of the Year competition. A keen motorcyclist, he won a Magazine Publishers Association
of South Africa (MPASA) PICA award for Profile Writer of the Year in 2008.

Teddy Knoetze - Teddy Knoetze began his career at Die Burger in Cape Town after graduating from
the University of Stellenbosch. In a career spanning more than 40 years he has worked for various newspapers, and
book and magazine publishers, both on a permanent and freelance basis. Together with his wife, Dina, he wrote a
series of language and science text books for use in schools. He started his own publishing company, Motorcomm,
in 1992, which concentrates mainly on publishing magazines and translations relating to the motor industry. He is
a member of the SA Guild of Motoring Journalists (SAGMJ).

Leo Kok - Leo Kok started his career in 2002 as a journalist at Sake-Beeld. He progressed to senior financial re-
porter where he covered trade and industry and automotive sectors. He subsequently moved to MotorBeeld as editor
until early 2009, when he pursued other interests in the corporate sector. Leo majored separately in languages, and in-
dustrial psychology and communication sciences at the University of Johannesburg (UJ). He also holds an honours de-
gree in Journalism from UJ and an MBA from the Gordon Institute of Business Science (GIBS). Leo has continued his
passion for writing as a part-time freelance writer and he is the current treasurer of the SA Guild of Motoring Journalists.

Richard Macaskill -Richard Macaskill is one of the young bloods in the motoring industry. Ed-
ucated at Hilton College, Richard matriculated in 2003, after which he studied a Bachelor of Arts degree at the
University of Johannesburg with majors in Journalism, Communications and Economics. Richard also has an in-
troductory mechanics’ course to his name, completed in May 2008. An avid writer and passionate about motoring,
Richard wasted no time in getting into the industry and seized the opportunity when he was awarded the South
African Guild of Motoring Journalists’ Commercial Vehicle Bursary in mid 2008. The following year Richard was
offered the guild’s Car Bursary, which is the position he currently holds.

Alwyn Viljoen - Alwyn Viljoen sold his first essays while at school, (charging two sandwiches a page).
He has long since realised that hacking out facts puts more bread on the table than scribbling fiction. His media career
evolved from corporate writer to political reporter to humour columnist to magazine journalist and culminated as
publisher. After selling his shares in the publishing company, he took to the road as freelance transport and travel
writer. Along the way he picked up a motley but useful collection of qualifications, ranging from speed reading to
police science 101 to sheep management. He is a listed couch-surfer and closet librarian.

page ix
The Beginning
It was on Monday, 4th June 1897, at 4pm, that the future of mobility in South Africa
changed forever. Not that those present knew it at the time.

T
he event was the un- merchant A H Jacobs to be used in
veiling of South promotions. Customers, according to
Africa’s first motor the size of their coffee and tea
car, or horseless car- purchases, could either have a look at
riage, and the first the vehicle, or even take a short drive.
public demonstration Under supervision, of course. Unfortu-
of the Benz Velo, imported into the nately, the Velo met a fiery death when
country by Hess & Co. This event was the business burnt down, but by this
also in reality South Africa’s first motor time the South African public had
show, because the owner of the Velo, J woken up and smelt the coffee, and
P Hess, charged a two shilling and six- their love affair with motor cars had
pence (25c) entrance fee. The demon- begun in earnest. No longer did love
stration took place at Berea Park, and marriage go together like a horse
Pretoria, and it was indeed a momen- and carriage. It was far more serious
tous occasion, with the attendance of ment of the vehicle, as no story appears than that, and man’s passionate embrace
President Paul Kruger (who declined to to have been filed, but we do have it on of motor cars and internal combustion
take a ride) and Dr. W J Leyds, the State good authority that he partook heartily engines provided great grist to Sigmund
Secretary, who became the first official of the complimentary food and drink, Freud’s mill, and many other psycho an-
motor car passenger when he accepted and thus he constructed another first, alysts after him. Today, cars are not sim-
the offer to ride pillion in this revolu- and began the journalistic tradition of ply means of transport; they are works
tionary contraption. The driver was A freeloading. The Velo was undeniably a of art, they are objects of desire, they are
E Reno, the owner of the Pretoria trailblazer, as its short history also fore- statements of manhood, they are phallic
News, so it can also be safely assumed told of the love affair that South symbols, and in their latest manifesta-
that Mr. Reno was the first South Africans, who are not alone in this, tion they are willing participants in the
African motoring journalist. Unfortu- would have with the motor car. The emancipation of women.
nately, there is no record of his assess- Velo was sold to a local coffee and tea

“For six straight days


God worked, and on the
seventh day He tinkered
with His V8”
- anonymous

The man who started it all, John Percy Hess,


leans on the rear fender of the Velo, with
Dr J P Leyds, the first passenger, sitting next to
A E Reno, the first motoring journalist. Paul
Kruger is not in this picture, most probably be-
cause he was making sure that he was well
away from this new fangled mechanism,
Photo credits: SA Veteran and Vintage Association and UCDD which “could take fright if a dog barks”.

page x
The Need for the RMI
“Some horsepower, some horsepower, my kingdom for some horsepower”
- With apologies to Shakespeare: Richard III

T
he early days of motoring in the then Transvaal, to be followed in a
South Africa were trying, to say couple of months by the Continental
the least. The first cars had no Garage. The other provinces played
protection against the weather, and mo- catch up, and by 1908 there were well
torists had to carry a considerable load of over 50 motor dealers in South Africa
spares (not in the modern sense): cans of and a proportionate number of service
petrol, lubricating oil, water; and tools, dealers. The car parc had reached 500
spare tyres and a spade for digging them- and was growing apace, and the need for
selves out of trouble. No cars had spare collective representation was sensed. Sir
wheels so the many punctures required Albert Atkey, who had taken over the
tyre changes with the wheel still bolted Johannesburg Motor Company and set
to the axle. Lubrication was rudimentary, up the Johannesburg Motor Mart in
so mechanical breakdowns were the Malcolm Irving, President of the MTA 1903, was instrumental in the formation
norm rather than the exception. The (1923 – 1924) and the first man to of the South African Society of Motor
establish a workshop in
motorist had to do the servicing himself Traders, based on the British Motor
South Africa, in 1901
because garages and mechanics were vir- Trade Association. This was the birth
tually non-existent. Petrol stations were for technical assistance was recognised, date of the MTA, later to become the
also rare animals, so petrol had to be car- with the establishment of the Rudge Motor Industries Federation (MIF) and
ried on the vehicle for long trips. And Whitworth Company in Cape Town, the now the appropriately named and inclu-
long trips were pioneering affairs. Frank first motor works in South Africa. That sive Retail Motor Industries Organisa-
Connock and Robert Jefferson were the same year, Malcolm Irving (later to be- tion (RMI). The first President of the
first to do the Durban to Cape Town trip come the President of the MTA from Society was Arthur Gaydon, at that time
(via Johannesburg) in May 1907, which 1923 to1924), at the request of the the Johannesburg manager of the
they achieved in the relatively short pe- Royal Automotive Club, established the Dunlop Rubber Company Limited.
riod of 16 days. This was done on very first workshop to exclusively undertake
bed roads, and sometimes close to im- the repair and servicing of motor vehi- The RMI and its forerunners have
passable rivers, forging some intrepid cles. The Anglo Boer War slowed things played a sterling role in the history of the
crossings on railway bridges. These early up north, so it was a year later in 1902 automotive industry in South Africa
tribulations did not deter the motoring that the first motor firm, the Johannes- since those groundbreaking days, and
pioneers, and as early as 1901 the need burg Motor Company Limited, set up in there were many highlights and low
points in this history. The purpose of the
RMI 101 publication is to celebrate the
past 101 years of industry activism and
to acknowledge the role that the RMI
plays today, and to look forward to the
next 101 years, which are sure to bring a
surfeit of surprises and twists and turns
that the most prescient of us will not
even come close to predicting, but one
Robert Jefferson and Frank
thing will remain constant, and that is
Connock with their Rover
which took them from the need to look after the motorist of the
Durban to Cape Town in future, with professionalism, integrity
1907 and enthusiasm, and a commitment to
staying abreast of whatever turns the in-
Photo credit: Leyland dustry takes and to react to government
South Africa initiatives and strictures.

page xi
Who is The RMI?
With a membership of 7 209, the RMI provides a very effective collective voice that gives
members considerable clout in negotiating better trading conditions.

A
s the lead voice in the motor industry, the RMI nies, motor manufacturers, various banking and insurance
is a member-driven organisation that constantly institutions.
seeks solutions to concerns raised by members
in the day-to-day running of their businesses. • Disseminates valuable industry information to members and
Members’ needs are serviced through six regional consumers.
offices, manned by 83 professional staff. In addition, the RMI • Encourages consumers to do business with members
is the major employer representative of the Motor Industry Bar- through the accreditation and grading of member busi-
gaining Council, playing a significant role in labour negotiations nesses.
as well as the industry’s social benefit schemes, dispute resolu-
tion processes and exemption procedures. • Access to other business partners in industry offering indus-
try specific products, ie Capricorn.
Objectives of the RMI
• Quality & Standards enforcement through the elimination
• To promote, protect and encourage the interests of members of counterfeit parts and illegal importation and notification
and the motoring public by setting and maintaining proper to members, thereby protecting both members and mo-
standards of service and ethical trading conditions in the in- torists from the consequences of mechanical failure due to
dustry. the use of sub-standard components.

• Facilitates the settlement of disputes between members and • The RMI is an endorsee of national motoring exhibitions
their employees, members and the motoring public by con- such as the Johannesburg International Motor Show, Auto-
ciliation/mediation/arbitration. mechanika South Africa, South African Automotive Week
and the Workshop and Technology Show.
• Regulates relations between members and their employees
and/or trade unions and protects and furthers the interests • The RMI has vibrant national Consumer Affairs Depart-
of members in that regard. ments dealing with matters raised by consumers and mem-
bers alike where the RMI acts as intermediary in resolving
• Promotes, supports or opposes when necessary, any pro- disputes amicably.
posal, legislative or other measures affecting the interests of
members. • Brand awareness campaigns through media reports, radio
and television interviews, national radio advetising and gov-
• Affiliated with, and participates in the affairs of other bodies ernment liaison to promote RMI members, with particular
sharing common interest with RMI members i.e. focus on consumer awareness in doing business with RMI
NAAMSA, NAACAM, SABS, DoT, BUSA, Nedlac, members and promoting the Code of Conduct.
SAPIA, DTI, etc.
• Business Directors managing specific Associational needs
• To maintain high standards of business ethics and service and activities.
delivery to the motoring public by members of the RMI,
and where necessary provide upliftment programmes to im- • Regional and National Executive Committees representing
prove the knowledge and professionalism of members. members and encouraging member interaction and partic-
ipation in the successful role of specific Associations.
Services offered by the RMI
Training Focus
Business Focus
• Sourcing of training interventions through the RMI Train-
• Representation of member's interests with various govern- ing Department.
ment and other industry bodies, i.e. AA, SABS, DTI, DoT,
NAAMSA, NAACAM, AIDC, MIDC, AMID, oil compa- • Seven qualified Skills Development Facilitators based at all

page 1
RMI regional offices assisting members to implement skills • Representation at DRC, CCMA and Labour Court forums;
development plans. and

• Representation of members, and addressing their training • Presentation of seminars on various labour related issues.
needs, by serving on various forums of the Merseta, ie Au-
thority-, Executive and Merseta Motor Chamber Commit- Social Benefits
tees, including bodies such as BUSA and DoL. • Healthcare - Moto-Health Fund available for members and
Labour Focus their employees offering very competitive contributions with
excellent benefits.
• Highly qualified IR consultants nationally at six regional
offices; • Pension & Provident Funds - excellent funds available for
members and their employees.
• Negotiation at MIBCO level with unions on wage and
substantive issues; The above are just some of the more tangible reasons for
belonging, but in time to come, the consumer will more
• Free telephone assistance and advice on employment issues
and more insist on exclusively doing business with RMI
within member establishments;
members and remember, the greater our numbers, the
• Highly competitive low-priced on-site assistance by our stronger our voice!
skilled IR staff;

THE DYNAMIC RMI EXECUTIVE TEAM

Jeff Osborne Jakkie Olivier Gary McCraw Aruna Ranchod Claire Patterson
CEO Executive Director Organisational and IR/HR Director Communications
Board Secretary; Director
NADA/MDA
Director

Twala Boco Paul Britz Vishall Premlall Moeketsi Wa Mitane Aleeshen Kisten
MPEA/MIMA/Quality ERA/MIWA/ TDAFA Director NAAASP Director SAMBRA Director
& Standards Director SADFIA/ACRA
Director

page 2
Peter Noke Nunben Dixon Len Whiteley Sibongile Mtapoane Angela Calogero
SAPRA Director Financial Manager Training Manager General Manager Regional Manager
Highveld Northern Region

Louis van Huyssteen Annette Stewart Joy Oldale Jan Schoeman Erwin Stroebel
Regional Manager General Manager Director SAVABA General Manager Regional Manager
Free State & KwaZulu Natal & NVTA Western Cape Region Eastern Cape
Northern Cape Region

THE RMI BUSINESS ASSOCIATIONS


Automotive Component Remanufacturers' Association
The Automotive Component Remanufacturer's Association (ACRA) represents component remanufacturers
involved in both the remanufacture of safety critical components and radiators. ACRA's objectives include
the promotion and protection of the interests of the motoring public and members. The RMI/ACRA ac-
creditation programme ensures that all members meet the standards and criteria set by ACRA and members
pledge to both the RMI Code of Conduct and ACRA's Code of Business Practice. The remanufacture of safety critical components is a
growing industry and ACRA has identified the need for the development of specialised training courses for technicians and operators in the
component remanufacturing industry. ACRA has a close working relationship with the South African Bureau of Standards dealing with all
issues pertinent to members.

Engine Remanufacturers' Association


ERA represents the cream of the automotive engineering industry in South Africa. ERA members use state
of the art equipment and highly skilled staff to perform the full range of automotive engineering operations
required to repair and overhaul all components of the modern petrol and diesel engines on our roads. Sec-
ond-hand engines are available in the market; however, it is recommended that such engines are only pur-
chased from reputable bona-fide accredited ERA members, as engines purchased from other sources often
leads to premature engine failure. These engines may also not always be compatible to local conditions. ERA members supply only the
finest components and highest quality of workmanship. ERA members take pride in providing warranties against workmanship appropriate
to the type of engineering work undertaken. ERA prides itself on being the "Hallmark of Precision Engineering".

page 3
Motorcycle Dealers' Association
The retail motor industry looks to the Motorcycle Dealers' Association as its mouthpiece to protect and
further the interests of the motorcycle sales and service industry. The MDA has on a number of occasions
successfully negotiated with government on issues relating to import taxation and traffic legislation which
was seen to be prejudicial to the interests of the industry and consumers. MDA also periodically liaises with
insurance companies and financial institutions with the view to negotiate better dispensations for its members. An additional important
function of the Association is to liaise extensively with the Association of Motorcycle Importers and Distributors, where MDA represents
the interests of dealers during discussions with South Africa`s major motorcycle importers. Accredited membership of MDA allows propri-
etors to display the RMI Code of Conduct through which it is undertaken to provide products and services at a fair and reasonable price,
and to honour both the letter and spirit of any guarantees accompanying the sale of those products and/or services. Close liaison also exists
with the National Automobile Dealers' Association and various international organisations.

Motor Industry Workshop Association


The motoring public has become increasingly educated and discerning when it comes to servicing and repairing
their vehicles. The demand for quality services and parts has become a prerequisite by the consumer at any ve-
hicle repair establishment. MIWA represents workshops conducting general repairs, auto electricians, driveline
and transmission specialists and vehicle accessory centres. A major focus of MIWA is to further educate the motoring public on how best to
protect themselves against sub standard work. With more than 2200 members countrywide, we undertake to provide you the motoring consumer
with guaranteed service and nationwide support.

Motor Parts & Equipment Association


The Motor Parts & Equipment association represents wholesalers, retailers and independent parts traders
in the replacement motor parts industry.

"A Genuine Reason for Helping the Consumer"


Genuine or Branded parts are quality parts manufactured by reputable companies and in the majority of cases, are also supplied to origi-
nal equipment (OE) manufacturers. These genuine replacement parts are available to the CONSUMER at accredited MPEA spares out-
lets at affordable prices and are distributed throughout South Africa by reputable companies and backed by the manufacturers’ warranty.

Motor Industry Manufacturers’ Association


MIMA is the association that oversees the interests of employers who manufacture motor vehicle parts,
components and accessories. MIMA currently operates under the auspices of the MPEA.

National Automobile Dealers' Association


The National Automobile Dealers' Association is a professional body representing the interests of businessmen
who own/operate new vehicle franchise motor dealerships and qualifying used car only outlets in South Africa.
It is dynamically committed toward the enhancement of the image of the retail motor business; facilitating the
interface between dealers and the motor manufacturers who supply them; building rewarding relationships be-
tween dealers and their customers; and bringing relevant issues facing its members to the attention of government
at all levels. In all forums, NADA is the fully representative and respected voice of the retail motor industry in
South Africa.

National Vehicle Testing Association


National Vehicle Testing Association (NVTA). The NVTA represents vehicle testing stations involved in
the testing and issuing of roadworthy certificates in terms of the National Road Traffic Act and SABS 047.
This is a legal entity. The RMI / NVTA accreditation programme ensures that all members meet the stan-
dards and criteria set by NVTA in accordance with SABS 0216. NVTA members pledge to the RMI Code
of Conduct.

page 4
National African Association for Automobile Services
Provider
NAAASP is the lead voice representing over 1400 informal / semi-formal; automotive traders from previously
disadvantaged Communities (rural and township) nationally. The traders range from Panelbeaters (MBR’s),
motor and mechanical workshops, auto electricians, fitment centres such as tyres, exhaust, audio service
providers to name but a few. NAAASP was founded in late 2004 in Gauteng to deal with the challenges
faced by these traders in the market place. It seeks to provide a platform to traders in dealing with the challenges on procurement related
matters. NAAASP was then adopted by the RMI in early 2006 as a development association. National African Association of Automobile
Service Providers (NAAASP), the development arm of the RMI and the Training Department have merged as a single unit, creating an en-
terprise development strategy. The strategy aims to create a mechanism to migrate informal traders to the formal economy. A daunting
task if one looks at the current economic scenario of fuel hikes and interest rates. The process is a steady rebuilding of an existing informal
business into a high quality productive formal business, able to compete on its own in the formal economy.

South African Diesel Fuel Injection Association


SADFIA represents the highly specialised diesel fuel injection sector of the motor industry, more specifically
the repair and reconditioning of diesel fuel injection pumps for both passenger and commercial vehicles. A
number of SADFIA members are also involved in the supply, installation and maintenance of turbo-chargers.
SADFIA members use high technology and expensive equipment coupled with highly skilled staff to attend to all your fuel injection needs.
SADFIA members take pride in providing warranties against workmanship appropriate to the type of work undertaken. For peace of mind
always use an RMI/SADFIA accredited member! Approved SADFIA members will have displayed on their premises the RMI Code of Con-
duct, RMI and SADFIA branding. Consumers are encouraged to only do business with Accredited SADFIA members.

South African Motor & Body Repairers' Association


SAMBRA, as a proud constituent association of the RMI, represents the interests of the Collision Repair
Industry in South Africa. SAMBRA represents the vast majority of the repairer market in South Africa that
are able to achieve the standards of SAMBRA's grading system. The grading system is devised to allow all
levels of repairer to become a SAMBRA member; however restrictions are placed on our members in terms of
the level of work they are permitted to carry out. All the activities of SAMBRA are aimed at developing a
sound sustainable Industry for all role players that interact with the Industry on various levels. SAMBRA ne-
gotiates industry standard rates of labour and trading margins in order to secure financial viability for its mem-
bers and fair trading conditions for its strategic business partners.

About SAPRA
The South African Petroleum Retailers Association (SAPRA) represents and promotes the interests of
Petroleum Retailers in South Africa. SAPRA is a constituent association of the Retail Motor Industry
Organisation (RMI) consisting of members actively involved in the Petroleum Retail Industry in terms of
the Constitutions of the RMI and the Motor Industry Bargaining

South African Vehicle And Body Builders' Association


SAVABA members are the professional vehicle body builders in South Africa who manufacture commercial
vehicle body applications - tanker, coal-, refrigerated- trucks and trailers; Bus bodies -commuter and tourist
type; Specialised vehicle body applications - ambulance, armoured vehicles, and off-road vehicles. All vehicle
bodies are manufactured using the latest equipment and highly trained staff, to ensure strict compliance
with SABS.

Tyre Dealers' And Fitment Centre Association


TDAFA represents the importers and distributors of major tyre brands both locally manufactured and im-
ported, in compliance with SABS standards and motor manufacturer specifications. TDAFA also represents
the leading tyre retreaders in South Africa. Strict compliance with the TDAFA's accreditation criteria and
applicable legislation ensures the production of quality and safe retreaded tyres. TDAFA members in addi-
tion to selling new and quality retreaded tyres, offer professional wheel alignment, balancing, puncture
repair and other tyre related services such as mag wheel sales, shock absorber- and tow-bar fitment. Your tyres are your vehicles only contact
with the road - don't risk it! You cannot afford to do anything else but settle for the best!

page 5
RMI Centenary Dinners, held across the country
in 2008, were vibrant affairs, made possible by the
generous sponsorship of WesBank and Bosch

page 6
page 7
page 8
Robert Bosch:
an entrepreneur
with a sense of
responsibility
September 23 1861
– March 12 1942

Bosch at a glance: Supplier of technology and services


with a strong global presence
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology,
consumer goods, and building technology, some 280,000 associates generated sales of 45.1 billion euros in fiscal 2008. The
company originated as "Workshop for Precision Mechanics and Electrical Engineering" founded in 1886 by Robert Bosch
(1861-1942). Just a few years after the foundation of the company, the first sales offices were opened in London and Paris.
Today, the Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over
60 countries. Of its 291 manufacturing sites, 225 are located outside Germany. To preserve its technologically leading position,
Bosch spends considerable sums for research and development every year. In 2008, its research and development expenditure
came to 3.9 billion euros, or 8.6 percent of sales. Its most research-intensive business sector is Automotive Technology, whose
research and development expenditure comes to 3.2 billion euros, or roughly twelve percent of sales. Throughout the world,
more than 32 500 associates are involved in research and development for the Bosch Group, 18 300 of them in Germany. The
company's technological competence is also manifested in its large number of patents: with more than 3 850 inventions, Bosch
was the most prolific patent applicant in Germany in 2008. In the field of automotive technology patents, Bosch ranks first
in Germany, first in Europe, and third in the US. Worldwide, Bosch remains the global technology leader, taking first place
for patents granted at WIPO (World Intellectual Property Organisation).

Entrepreneurial responsibility and charitable involvement were cornerstones in the life of Robert
Bosch. He was convinced of their importance and their necessity, and passed this conviction on
to his successors who totally honour his legacy by continuing and building on his work.

H
is sense of responsibility led him to provide the charitable activities of Robert Bosch – from continuing
benefits for his associates. Bosch improved education to international understanding. These activities cul-
working conditions by providing modern minated in the opening of the Robert Bosch Hospital in
workplaces, with good ventilation and light- Stuttgart in 1940, two years before his death. He also made
ing. He created an apprentice training sure that these activities continued. In accordance with his
scheme that offered a solid professional education. He also will, Robert Bosch Foundation GmbH, was founded in 1964,
provided company pensions to care for retirees and their sur- and is actively involved in the sciences, health, international
vivors. Independence, family values, and early preoccupation understanding, society and culture.
with the pressing social issues of his time formed the roots of

page 9
But Robert Bosch knew that only a profitable company would nologies, and an international focus. The personality of the
be able to realise his vision of corporate responsibility and company founder, with his principles and guidelines, contin-
charitable activity. For that reason, he and his – to date – five ues to be a defining influence for the corporate culture. His
successors have invested all their experience and knowledge in legacy forms the basis for the special bond associates feel
helping the company to grow robustly – through innovative worldwide: they are proud to be part of Bosch.
products, new business areas, modern manufacturing tech-

Chairmen of the Board of Management of Robert Bosch GmbH

Hans Walz Hans L. Merkle Marcus Bierich Hermann Scholl Franz Fehrenbach
1953 – 1963 1963 – 1984 1984 – 1993 1993 – 2003 2003 -

The Bosch Business System

S
ince 1886, the Bosch Group has been successful with nomic growth; it also encompassed improvement in living
pioneering and beneficial innovations that have led to conditions. Today we incorporate this standard in our claim
enormous growth. Today, the Bosch Group has a global “Invented for Life.” And the principles and guidelines formu-
network of customers and suppliers, and the never-ending task lated by Robert Bosch still apply today, just as they will in the
is to maintain and further expand this position. Franz Fehren- future. The future needs a past. Our company stands for tra-
bach, the current Chairman of the Board of Management of dition and modernity, and these two pillars are the source of
Robert Bosch GmbH, describes the Bosch blueprint for suc- our strength for the coarse ahead. However, motivation and
cess; in the past, the present, and vitally, in the future; sharing of common goals depend on an informed workforce
that is prepared to assume personal responsibility. To create a
“For our growth, we need a common vision, yet the shared view of what a strong and meaningful development of
more international we become, the less we can as- the Bosch group means, we created a brochure, “House of Ori-
sume that associates will automatically live the val- entation”, to help all our associates to understand and live our
corporate culture – a culture that offers orientation, reinforces
ues and principles that have been handed down to cohesiveness, and creates identification.
us. Besides our commitment to other significant
initiatives, it is our distinct corporate culture, based Understanding and Living
on common foundations, that is an especially im- the Corporate Culture
portant precondition for business success and our Our common goal must be to make the most of our great
ability to continue to evolve in the international performance potential across all business sectors and in every
market environment.” region of the world, and in this way to vigorously promote the
long-term competitiveness of Bosch. The “House of Orienta-
Franz Fehrenbach explained what the distinct corporate cul- tion” sets out how we see our future development, the princi-
ture is that has sustained the Bosch Group for over 120 years. ples of our approach, and the capabilities that we have and
What Bosch stands for, what is Bosch’s common vision, what want to exploit for our continued success in the future. It also
guides their work, and how they deal with change, and what contains information on the standards and values that moti-
are their values and core competencies: vate us in our daily striving for success and improvement.

“The Future Needs a Past”


Robert Bosch gave the company its name and created values
that still apply today. For him success did not just mean eco-

page 10
Vision: Our vision is our shared image of the future. It states where we want
to go, and what drives our actions. It points the way forward for a strong and
meaningful development of the Bosch group.
Mission: BeQIK stands for greater speed in everything that we do, and it
stands for quality, innovation, and customer orientation. Our objective is to
continuously improve our internal processes.
Values: The Bosch values are the foundation upon which the successes of
the past were built, and upon which we will build our future. They guide our
actions and tell us what is important to us and what we are committed to.
Core Competencies: For well over a century our company has built upon
a unique mix of interrelated core competencies – a mix from which we derive
our competitive advantage, and which also forms the basis for the future de-
velopment of our company.
Bosch Business System (BBS): To be able to implement our Bosch Vision, we need to continuously develop and to
manage change. This requires a systematic methodology that shows us in concrete terms where we need to reinvent ourselves,
and how well we are mastering these shifts and structural changes in practice. With our BBS management system, symbolised
by the multi-coloured triangle, we have created just such a methodology.

The Bosch Pedigree


It all began on an early autumn’s day in Albeck, a village to the northeast of Ulm in southern
Germany, when the Bosch family welcomed their eleventh child, Robert, a bouncy and in-
quisitive boy, who went on to found what is today the world’s largest supplier of automotive
parts, among other things. This auspicious day was September 23 1861.
Robert Bosch was born in In 1936, on the occasion of
1861 in the "Gasthaus zur his 75th birthday and the
Krone" - an inn in Albeck 50th anniversary of his com-
near Ulm. He was the pany's establishment, Robert
youngest son of the Bosch fulfilled a long-time
innkeeper, farmer, and dream: he founded a hospi-
brewer Servatius Bosch tal. The facility with 360
and his wife, Maria Mar- beds was officially opened in
gareta. He lived here for April 1940. In 1973, it was
eight years until his family replaced by a medical centre
moved to Ulm. built at another location.

R obert Bosch’s father was a well educated farmer who placed


special importance on a good education for his children,
and from 1869 to 1876, Robert Bosch attended the Realschule
Electrical Engineering in Stuttgart, Germany on November 15
1886, an ambitious and daring leap for a 25 year old. The rest,
clichéd as it may sound, is history. And what a history! Today,
in Ulm, before taking an apprenticeship as a precision mechanic. some 123 years later, Robert Bosch GmbH struts the global
After his apprenticeship, which ended in 1879, the young Bosch stage as an industrial colossus, employing over 270 000 people,
then developed his taste for innovation and invention during and with revenues of in excess of 46 billion euros, and at the
seven years of travel in Germany, the United States and the UK, cutting edge of automotive, automation, packaging, security,
working for, among others, Siemens and Thomas Edison. It is consumer goods and power tools technologies. From day one,
the Edison link that provides a tantalising clue as to where the focus has been on research and development and the concern
Robert Bosch got his tinkering, inventive and pioneering talents, for people’s welfare, which has translated into over a century of
but the most important traits that Robert Bosch had was his en- innovation. Space precludes an exhaustive list of all the wonder-
trepreneurial and philanthropic flair. This was the driving force ful innovations that the Bosch Group has gifted to the world,
behind him opening a Workshop for Precision Mechanics and so we note some historical and world changing milestones:

page 11
1887 – First low-voltage magneto for 1933 – The first Bosch refrigerator
stationary engines 1964 – The first Bosch dishwasher
1902 – First commercially viable high-voltage spark plug 1964 – Robert Bosch Foundation founded
1906 – Introduction of the 8 hour work day 1976 – Development of the world’s first swivel-arm indus-
1928 – The Forfex hair trimmer – the first Bosch power tool trial robot starts
1929 – First TV set from Fernsch AG 2004 – Bosch opens new Technology
Division centre in Abstatt
1932 – First power drill from Bosch 2005 – Night vision system for cars
1932 – Acquisition of Junkers’ natural gas-fired appliances 2008 – Tata Nano, powered by Bosch-
business designed engine, is unveiled
1932 – First Blaupunkt car radio
In 2008, Bosch filed patents for over 3 281 innovations, more
The magneto ignition than any other company in Germany. Many of these patents
device had begun its are esoteric but important in the development process, and
triumphant progress across will not make the headlines. We look at the headline grabbing
the world. By 1906, the automotive innovations since the birth of Bosch in 1886:
100,000th Type D6
magneto ignition device 1897 – First successful application of Bosch low-voltage
had been produced. The magneto ignition in a motor vehicle
growth of his business 1900 – Robert Bosch recognises the importance of trademarks
prompted Robert Bosch and has his name registered, decorated with vignettes
to introduce the eight-
1902 – Delivery of the first high-voltage magneto and the first
hour workday for the
company's 526 associates. Bosch spark plug
1913 – First complete Bosch vehicle electrical system, consist-
ing of magneto ignition with spark plugs, starter,

T
oday, Robert Bosch GmbH stands on three sturdy legs
– Automotive Technology; Consumer Goods and generator, headlights and voltage regulator
Building Technology; and Industrial Technology. 1927 – Series production of diesel fuel injection pumps
The Bosch brand is synonymous with power tools, home begins
appliances, telecoms, and other products, but it is in the 1936 – First Bosch diesel fuel injection in a production car,
automotive field and among the fraternity of car lovers and the Mercedes-Benz 260D
automotive cognoscenti that the Bosch brand really resonates. 1951 – Development of fuel injection for petrol engines
It can also be said with little fear of contradiction that Bosch 1962 – Production of distributor-type injection pumps for
will be the answer every time the question is asked as to which diesel engines
company has had the biggest impact on innovation in the
development of safety, environmental protection and electron-
ics in the motor vehicle. The automotive division is the largest In 1897, Bosch
sector within the Bosch organisation, contributing in excess tested his mag-
of 60% of its revenues, and the strength and growth in this neto ignition
sector is reflected in the fact that Bosch has become the world’s device for the
first time in a
largest supplier to the automotive industry. The bulk of the
motor vehicle.
automotive revenues come from Bosch’s OEM activities,
He replaced
which is logical when one considers the enormous research the breakdown-
and development effort, and the innovations that have flowed prone buzz igni-
from this effort. Robert Bosch also understood the importance tion in a de Dion
of after sales service, and this imperative compelled him to Bouton three-wheeler with a
launch the “Bosch Dienst” (Bosch Service) concept in low-voltage magneto ignition
Germany in 1921. Bosch product innovation started in 1897 device. After demonstrating the
with the low-voltage magneto ignition for vehicles, and has three-wheeler to Messrs. Daimler and Maybach, a proud Robert
continued uninterrupted to this day, with Bosch applying for Bosch wrote to a customer: "Whether at 100 ignitions a minute or
more than 14 patents for developments each working day. 600 a minute, the ignition still works without skipping a beat”

page 12
1967 – First volume production of electronically controlled
fuel injection (VW 1600 TL) The evolution of the Bosch brand and logos
1976 – Production of Lambda oxygen sensors, a momentous
new emission control device
1978 – Bosch Anti-lock Braking System (ABS) introduced for
passenger cars
1979 – Production of Motronic digital electronic engine
management (integrated control of fuel injection and 1907 - 1914 1907 - 1914 1919
ignition)
1986 – Production of electronic traction control (TCS) for
motor vehicles
1991 – Production of Litronic automotive headlight system,
with High Intensity Discharge (Xenon) lamps 1931 1981 2001
1995 – Electronic Stability Programme (ESP®) for enhanced
vehicle stability
1997 – Common Rail Production of VP44 high-pressure
diesel injection pump and high-pressure fuel-injection
2004
system Common Rail
2003 – 3rd generation of Common Rail, with Piezo-inline
injectors
2005 – Night vision system for cars
2008 – Tata Nano, the $2 500 People’s Car powered by a
Bosch-designed engine, is unveiled at Auto Expo in
New Delhi 2008

Bosch Products

T
he origins of Bosch as a supplier of automotive equip- Safe, clean, economical
ment go back to 1887. This was a time when the 25-
year-old electrician and precision mechanic Robert A mission in just three words
Bosch was not yet manufacturing any automotive technology. It was in 1974, the year after the first oil crisis, that Bosch
The car itself was still very much in its infancy. But this was introduced the “3S” programme (sicher, sauber, sparsam - safe,
the year in which Bosch, on behalf of a customer, built a prod- clean, economical) to the public. This simple formula encap-
uct that was later to play an important role in the automobile sulated the corporate philosophy pursued at Bosch for decades,
– a magneto ignition device for a stationary engine. In 1897, a philosophy which still applies today: to protect vehicle
Bosch installed one of these devices in a three-wheeler. The aim passengers and other road users, to make vehicles economical,
of this experiment was to find an ignition system for motor ve- and to lower exhaust emissions.
hicles that was suitable for everyday use. This unwieldy appa-
ratus was a key product of the company. It turned Bosch into Safe
an automotive supplier and a multinational corporation. With
“Safe” relates to active and passive safety in vehicles. Prime
its magneto ignition systems for cars, Bosch helped to pave the
examples of this are the ABS antilock braking system (1978)
way for motorization in Europe. Then, from 1925, production
and triggering units for airbags (1980). Bosch set new standards
was gradually shifted to battery ignition systems, which the
in safety in 1995 with its electronic stability program ESP®.
market was demanding as an inexpensive alternative. Even
Research results showing the significant drop in serious acci-
today, ignition is a Bosch core competence. Ignition systems
dents involving vehicles with ESP® have justified Bosch’s huge
have been further developed, and are now a part of complex
research and development spend on safety systems. Systems
engine management systems. But one thing has remained the
such as ABS or ESP® are now standard equipment in almost all
same: even today, an electric spark ignites the air-fuel mix and
new cars in Europe or will be so before the current decade ends.
keeps gasoline engines running.

page 13
Clean Economical
The “clean” part of the 3S programme relates to the company’s The third pillar of the 3S programme has been and continues
commitment to reduce exhaust emissions. Here too, Bosch’s to be a reduction in fuel consumption. Even 20 years before
efforts in this field go a long way back: as early as 1950, where the programme was inaugurated, Bosch was setting standards
Bosch recommended the careful adjustment of injection with gasoline injection systems in small cars that reduced con-
pumps. In 1967 the company’s commitment to a ‘clean’ car was sumption by up to 20 percent. However, at that time the sys-
upgraded. This was the beginning of the successful application tems were still expensive and gasoline was cheap, making it
of electronic management systems for diesel and gasoline en- difficult to establish the systems in the market. Their main suc-
gines, which easily complied with all statutory regulations. cess was in racing cars, due to the enhanced performance they
Above all, Bosch responded to the aim of lowering exhaust provided. From the 1960’s onwards, however, against the back-
emissions with the lambda sensor, which was produced from drop of increasing oil prices and fuel consumption regulations,
1976 onwards. The lambda sensor made it possible to use a the concepts developed by Bosch began to bear fruit. Bosch’s
three-way catalytic converter, which cuts emissions from a car success was primarily attributable to the exact dosage of fuel
gasoline engine by up to 90 percent. provided by injection systems and to ignition systems that
functioned in a precise manner, and which have been working
even better since electronic management systems were intro-
duced in 1967.

Bosch Service
the old... the new

Staff in front of the entrance of the first Bosch Service Centre in


Johannesburg

The Road to Business largest workshop organisation in


Success the world. Southern Africa is well
served, with over 160 quality-dri-

R
obert Bosch understood the importance of after sales ven Bosch Service workshops serv-
service, and he launched the Bosch Service workshop ing the region.
concept in Germany in 1921. This concept was later
expanded globally, and it eventually found its way to the Ewald Faulstich, Robert Bosch
African continent, with the first Bosch Service opening in South Africa Director Automotive
South Africa in 1937. 88 years after “Bosch Dienst” first saw
Aftermarket Division, says that
the light of day, the Bosch Service network is recognised
worldwide as a brand that offers a bumper-to-bumper service Bosch Service is the road to
model, with 14 500 outlets across the globe, making it the business success.

page 14
He spells out the advantages clearly and unambiguously, and the powerful Bosch and Bosch Service brands, gives
“Fewer industries are developing as rapidly as the Automotive you the competitive edge that sets you far ahead of the
Aftermarket, creating substantial pressure for the independent competition.
aftermarket workshops to keep up with technological devel-
opments. With the growing share of complex vehicle electron- Without effective marketing, a workshop concept cannot
succeed, and marketing is a decisive element of our success.
ics, vehicle systems and parts are becoming increasingly
Our distinctive Bosch Service corporate design is the calling
sophisticated, where workshop employees have to consistently
card to the motorist. Capitalise on corporate design internally
keep their qualifications up to date and in line with the tech- and externally which radiates warmth and professionalism.
nological developments. For example, even the replacement At Bosch, we support our Bosch Service partners with parts,
of parts increasingly requires the use of diagnostics test equip- technology, know-how and a workshop concept; all the essen-
ment. Furthermore, today’s consumer places greater impor- tials under one roof. This is what distinguishes Bosch Service
tance on customer service in addition to quality workmanship from all other workshop concepts and gives the competitive
and reasonable rates. advantage.”

Facing these challenges calls for an effective and comprehen-


sive support package. The Bosch Service concept is designed
to drive the workshop business forward in facing the chal-
lenges. As the world automotive industry’s leading supplier of
original equipment, Bosch has the definitive edge in know-
how from research and development and especially in the ap-
plication of new automotive technologies.

The Bosch and Bosch Service brands are powerful brands and
are recognised for innovative automotive technology, and these
brands are synonymous with efficiency and long service life.
You and your customer can rely on this recognition.
With the workshop concept, diagnostics, service, parts supply

Workshop Challenges • Quality automotive parts at competitive prices


• Software and hardware for diagnostics and trouble-
The automotive workshop business today is experiencing shooting
significant changes
• Expertise and know-how based on technical support
• Manufacturers extended service intervals and training
• Growing complexity of automotive systems and parts • Technical information from the technical hotline
• Replacement of parts often only possible by using • Highly trained field support personnel
diagnostic tools with corresponding software
• Comprehensive warranty programme exclusive to the
• Higher qualification of workshop staff necessary Bosch Service Network
• Considerable investment in diagnostic tools and contin- • Internationally recognised Bosch Service Brand
uous technical training necessary
• Effective marketing and national advertising
• High customer expectations and demands
• Customer orientation programmes and customer care
• Increasing pressure to ensure that servicing quality line
standards are achieved
• Dedicated website promoting the Bosch Service
• Aggressive price competition and demands for full and Network
effective service
• Secure dealer network online information platform
To cope with these considerable challenges, future-orien- • Awards programme to reward to performing Bosch
tated workshops need the support of a strong partner. Service’s
• Strategic national deal partnership
• Bosch Service Marketing Forum
Bosch Car Service Partner-
ship for the future • Service Quality tests ensuring highest level of customer
service
Bosch is the original partner in securing the future of your
workshop, offering a complete system for the workshop
based on:

page 15
Bosch Car Service: Code of Bosch Diagnostics: The Workshop’s
Practice Future
Aim The Diagnostic Concept
Leading edge vehicle technology continues to grow at a rapid pace. In
We at Bosch appreciate that it is not always straight-
order to remain competitive, South African workshops are finding it
forward for a consumer to make an informed choice as
increasingly necessary to partner with Bosch Automotive, whose tech-
to the suitability of the services and standards being of-
nological advantage gives it the capability of offering a full workshop
fered by a workshop. Quite understandably, many cus-
modular support package, known as the Diagnostic Concept, consist-
tomers do not possess a thorough knowledge of how
ing of Test Equipment, Technical Information, Technical Training and
their vehicle operates and equally, many workshops are
a Technical Hotline.
unable to completely secure the confidence of cus-
tomers when they carry out a service or repair. Also, Test Equipment
the workshop sector often receives criticism from con-
sumer organizations and the media. Bosch Automotive’s objective is to offer the best workshop diagnostic
concept to southern Africa’s automotive workshops. The company
The purpose of this Code is to provide consumers with offers an extensive range of diagnostic and test equipment products
a clear guide as to the standards and practices that a enabling workshops to provide superior service for passenger, light and
Bosch Car Service will adhere to and upon this basis, heavy commercial vehicles, whether petrol or diesel. There is a vital
we trust, make an informed and favourable decision to and close inter-relationship between the four elements of the Bosch
use a Bosch Car Service. Bosch Car Services’ are re- Diagnostics package offered to workshops. Ewald Faulstich, Director
quired to comply with the provisions of this Code. Automotive Division at Robert Bosch (Pty) Ltd, describes it succinctly;
These provisions specify how a variety of customer han- “It is absolutely essential that the operator
dling measures and trade practices are to be conducted participates in all the elements. You can-
to the benefit of the customer. Furthermore, each not have the test equipment in isolation
Bosch Car Service is required to fulfill all relevant statu- without the ESI[tronic] software mod-
tory and legal requirements, in particular those relating ules. There is a certain amount of
to Trading Standards, Health and Safety, Environmen- choice and selection here and the
tal Protection and Employment. The procedures out- operator will ‘buy-in’ at the various
lined in this Code are additional to the legal rights available levels A,B,C,D and so on.
assured to the consumer and the content of this Code
is not intended to detract from such laws and their
remedies.

Handling Customer Complaints


The Bosch Car Service and Bosch have a firm commit-
ment to customer satisfaction and therefore endeavor
to work with the customer to resolve any complaint
fairly and speedily. Should the complaint remain unre-
solved despite reasonable efforts to resolve it, the cus-
tomer has the option to have the matter conciliated by
an independent third party. This section of the Code
details the complaint handling procedure.

Customer Participation
Customers of the Bosch Car Service Network have a
real opportunity to help make the Bosch Car Service
Code of Practice work to best possible effect and help
Bosch monitor and improve the performance of indi-
vidual Bosch Car Services’. This section details how
customers may assist.

page 16
ESI[tronic] Software technicians and customers find you getting more and more out
of the systems.
ESI[tronic] software is designed with considerable flexibility in
that it can be used as “read-only” technical instructions on a Technical Hotline
desktop PC, or combined with the Bosch KTS Diagnostic Another key element is the back-up Hotline facility for our
Analysers, as the ECU Fault Detection and Erasing software. trained customers using the Bosch equipment and software. If
Training at any stage they encounter problems or have queries about
what is on the screen, or an intricate diagnostic problem, they
Then a key issue: if you have the test equipment and software, merely pick up the phone and dial our hotline for instant sup-
but your technicians haven’t been trained properly, it becomes port. Our experts will be able to talk them through from screen-
a pointless exercise. Training on the equipment and the pro- to-screen so to speak and our trouble shooting success rate runs
grammes is absolutely essential and will provide you with a par- at almost 100%.”
adigm shift of performance in your workshop as your

South Africa leads the international charge for Bosch

I
n 1906, Bosch had around 600 associates working in South Africa, seeing the foundation of Auto Electrical and in
Stuttgart, where the company originated. The 1971 became a Bosch subsidiary and production site in 1976.
company had been expanding in Europe since 1898,
but now took its first step onto another continent, Robert Bosch South Africa
opening its first sales office in South Africa; a move
On August 6, 1965, Bosch founded Robert Bosch South Africa
that practically coincided with the opening of its first office
(Pty) Ltd in Johannesburg in order to take charge of sales and
in the US Friedrich Hoppert & Co of Hamburg, which had
to establish local production capacities. In 1973, Robert Bosch
an office in Johannesburg, was contracted to sell products
GmbH acquired a 30% holding in Diesel-Electric Holdings
from Stuttgart. It continued to work for Bosch for the next
(Pty) Ltd (DEH), which was also based in Johannesburg and
40 years. The two world wars had a severe impact on business
had until then been selling Bosch diesel and electrical products.
in South Africa, with the Second World War proving particu-
In 1977, DEH was merged with sister company Robosa
larly damaging because of the destruction of the company‘s
Distributors (Pty) Ltd, which handled the marketing and
production facilities in Germany. By 1950, Bosch sales and
advertising of Bosch products, to form Diesel-Electric South
the size of its workforce had exceeded pre-war levels, but
Africa (Pty.) Ltd. – “DESA” for short. In 1983, this company
activities outside Germany accounted for just 10 % of total
became a wholly-owned Bosch subsidiary.
sales. Bosch responded to this situation by re-establishing its
international activities. In South Africa, Technical Supplies Takeover and reorganisation
Company (Pty) Ltd in Johannesburg was granted exclusive
marketing rights in 1950. The year 1985 also saw a great deal of reorganisation, this time
with the merger of Diesel-Electric South Africa and Auto
Diesel-Electric and Auto Electrical & Engineering Co (Pty) Ltd to form Robert Bosch
Electrical Engineering (South Africa) (Pty) Ltd, a wholly-owned subsidiary of Robert
Bosch GmbH. This company coordinated all activities from
Another milestone was reached in 1951 with the foundation
production through to sales. In 1998, the new sales
of Diesel-Electric, a Cape Town-based subsidiary of the above-
centre was opened in Midrand, 70 kilometres from its
mentioned Technical Supplies, which was given the job of mar-
production facility in Brits, bringing sales into line with the
keting Bosch diesel and electrical products. The year 1956 also
needs of the market in South Africa. Today, some 1 000
proved, with hindsight, to be an important year for Bosch in
associates are employed here and at the Brits plant.

page 17
100 Years of Automotive Service to South Africa
From the automotive industry to the home DIY, Bosch is a brand that is trusted by South Africans.
Bosch merchandising ensures that clients actually buy peace of mind and a product that is “in-
vented for life”. Thus Bosch is positioned as the best in class provider of automotive products, power
tools and security systems in South Africa. The company’s main aim is to improve quality and life
through leading technology and innovation advancements for all target groups. These groups are
supported by the respective divisions and their business concepts. The Automotive Division en-
compasses automotive parts, diagnostics and workshop concepts.

C
urrent major accounts for the Automo-
tive Division include all vehicle manu-
facturers (OEMs) and P&As in South
Africa, Diesel-Electric, the Midas Group
and AutoZone. The division is respon-
sible for taking its own message to the market with re-
gard to new products or technological developments.
To enhance the brand, sales and marketing initiatives
are all adopted from centralised corporate guidelines
from Bosch’s parent company in Germany. The Bosch
brand is also visible at exhibitions and other public
events such as the Johannesburg International Motor
Show and Automechanika South Africa. A major high-
light was the centenary event in 2006, “100 Years of
Bosch in South Africa”, which underlined the success
of the company over the last century. The brand is
further enhanced via its e-commerce website, where
Bosch conducts business online for efficient and effec-
tive customer service. Bosch believes that innovation
today ensures business tomorrow. The Bosch values
steer all company actions, a continual guide to priorities
and commitments.

Ewald Faulstich, Director Automotive Aftermarket


Division at Robert Bosch (Pty) Ltd since 2000, says that
the South African operation is committed to upholding
the traditions of the organisation, and he is proud to
represent a company which is so all embracing. “Orig-
inal equipment supplier, replacement parts, workshop
equipment, diagnostics in all its facets, technical train-
ing, technical and warranty support, a customer
hotline, and the commitment that goes with these serv-
ices, I strongly believe that there is hardly any other
company within the automotive environment that fits
the “one for all” title better than Bosch. Consequently,
we from Bosch, as the world’s largest automotive sup-
plier, want to leverage our systems competence for the
benefit of the independent aftermarket. This is our
future; this is our destiny, for the next 101 years.”

page 18
WesBank - the Dealer Bank
The WesBank brand has become almost iconic in South African society. Long known as
the ‘Wheels Bank’ it has grown to become the country’s foremost vehicle and asset finance
company. The organisation also provides fleet finance and fleet management services,
finance for expensive capital equipment for business, import finance and a full range of
insurance and value added products.

T
he bank’s success is due in no
small part to the partnerships it
has established with dealerships.
Dealers are provided with
finance for showroom stock,
training in finance and insurance, as well as
optimal dealer operations. It is through these
partnerships that WesBank is able to integrate
the finance solution with the purchase,
providing customers with optimum conven-
ience and the quality customer services. The
partnership business model has served the
bank well – so well that 90% of business is
currently conducted through partnerships.

A Long History
WesBank’s origins can be traced back to the
late 1800s when Robinson South African
Banking Company was established in Lon-
don. By the early 1900s the company was
known as the Colonial Banking and Trust
Company Limited. In 1968 Colonial Bank
& Trust Company merged with Western
Credit Africa Limited, a company which
focused on finance for the motor dealer, and
seven years later the company was acquired
by Barclays Bank and became known as
WesBank, ‘The Wheels Bank’, thus estab-
lishing the brand that is known today.

page 19
Service the Key
The bank’s service orientation has been well entrenched since the first
‘Wheels’ campaign was launched in 1979 and which promised finance
in 15 minutes, to the Leon Schuster ads of the mid-90s. To this day
service excellence forms the cornerstone of the bank’s offering
with the organisation’s chief executive insisting
that employees do not allow
the sun to set on a
customer complaint.

I
n 2001 WesBank underwent a
brand invigoration exercise.
The result was the birth of a
compelling brand personality
supported with a new communi-
cations campaign which reinforced
the bank’s strong service ethic. The campaign
utilised the payoff line, ‘Our customers thank
us for our great service in the strangest ways.
WesBank – Put us to the test.’ One of the
pillars of the brand offering has been the assur-
ance that the bank is able to deliver on its service
promise.

Based on its philosophy of service, WesBank has re-


ceived more than its fair share of awards: it was
awarded top brands status in both 2006 and 2007
by the Sunday Times and has been rated the number
one vehicle finance company for seven consecutive WesBank’s employees are not allowed to let
years by PricewaterhouseCoopers. In 2007 and 2008
the sun set on a complaint – and this
it was also rated the best large company to work for by
Deloittes. stellar theme was carried through to
In fact, since 2003 the brand has experienced significant WesBank Christmas cards, and the
growth in its business-to-business division. This has been a subliminal promise to take their
strategically fortunate move as the corporate market has
proven itself to be more resilient to the peaks and troughs ex- customers to the stars.
perienced by the consumer market. It is anticipated that the
business-to-business division will overtake the bank’s motor
vehicle finance business in the next few years.

page 20
A String of Firsts
W
esBank has achieved a number of firsts in bringing the product to consumers and acting as an agent for
its long history: it was the first vehicle fi- both the bank and the dealer. WesBank was also the first com-
nance company to have a presence on pany to provide customers in remote rural areas with the op-
dealer floors and the first to write R100 portunity to interact via video with finance and insurance
million worth of new business as early as specialists, the first to provide dealers with a business intelli-
1982. Its growth prospects have continued to exceed expecta- gence portal, the first to market with an Islamic Shariah ap-
tions with the result that today one in three cars is financed by proved vehicle finance offering, the first to introduce a patented
WesBank. The company has a strong presence in the corporate digital pen which removes the need for paper and allows deals
asset market and dominates in the personal loans middle mar- to be captured directly to the bank’s scoring system thereby pro-
ket. Purchasing vehicle finance was typically a disjointed and viding real-time loading of applications, and the first to intro-
disconnected process until WesBank pioneered the concept of duce partner marketing and job creation finance.

Soweto Street Race

Wesbank was the first company to bring the thrills


and spills of motorsport to a Township in July
2009 with the Wesbank Street Race in Soweto.
More than 20 000 Sowetans came to see what
motor racing is all about.

page 21
Turning decades of experience into expertise

T
he bank’s most recent television campaign was international study which set out to discover where true talent
launched in May 2008, the first fully fledged comes from, the new commercial is called ‘the source of talent’.
brand repositioning to come from the organ- The study found that practice does ultimately make perfect,
isation in more than six years. Prior to the supporting the view that WesBank’s 40 years of experience and
launch of this campaign the bank was, to all expertise stands it in excellent stead going forward. Based on
intents and purposes, ticking over from an ad- this finding, the commercial, developed by Johannesburg-based
vertising perspective as it turned its focus onto the aggressive advertising agency Ogilvy, depicts a montage of individuals
development of its partner based business model. WesBank has from different disciplines all set on perfecting their craft through
long relied on its business model for differentiation from its practice. The precision and perfection of the different art forms
competitors. There is no doubt that this strategy served the or- portrayed in the commercial are intensified through ultra slow
ganisation well as its revenue in the corporate and retail markets motion filming. This was achieved by shooting the footage at
grew substantially with the addition of value added services. In 2 000 frames per second. Essentially the commercial commu-
addition to significant growth in the asset finance business, it nicates the fact that being an expert in your field does matter.
also grew its business in terms of financing aviation, yellow To support this view, the payoff line, ‘WesBank – We know
metal and heavy machinery. However, the ‘Wheels Bank’ how’ was developed. This line is also used in internal commu-
premise was no longer providing the brand with any advantage. nication although it is always contextualised. The campaign was
launched at the end of May 2008 with a fairly aggressive televi-
A comprehensive internal and external brand research process sion burst. The campaign was supported by a print campaign
ensued which resulted in the formulation of a new positioning which included functional messages depicting what the organ-
for the brand. No competitor is able to adopt this unique isation actually does, and the campaign continues in various
positioning as WesBank is the only organisation to occupy the forms in 2009.
specialist asset finance space at this stage. In formulating the
new campaign and commercial, the challenge was to identify The bank has become even more conscious of each experience
credible ways of demonstrating the bank’s expertise and know- the customer has with the brand as a result of the launch of this
how and communicate this to the various target audiences. campaign. To this end it has identified customer touch points
The new campaign also needed to stretch WesBank’s stronghold such as the dealer floor, contact centres and the Internet as
from only vehicle finance into the broader category of asset examples, where it measures the outcome of the customer ex-
finance while at the same time creating the same differentiation perience. WesBank’s latest campaign signals the coming of age
on a brand level. In a significant break away from previous of a highly successful brand with a long history behind it. It’s a
advertising, the new television commercial sent a powerful mes- bold promise which the bank is not unaware of, but that it
sage about its people’s expertise and know-how in a sophisti- believes it has the ability to meet and deliver. And the dream
cated and contemporary manner. The campaign builds on its and reality continue.
previous brand positioning as service champions, with an
enhanced promise of expertise and know-how. Based on a recent

page 22
page 23
There is More to Midas
Sitting in the traffic on the way to the Midas Group’s head office in the heart of industrial Johannesburg makes
one realise how pervasive this group is to the national motor industry. With the national vehicle park’s average
age estimated at a decade or older, few can claim not to know the Midas touch, whether it is for replacement
wiper blades at a Midas before a Highveld thunderstorm or to fix the trailer’s wiring at a Motolek-branch before
the trek to the Kruger National Park. Still others can speak off the work done by ADCO, CBS, and Auto Care
and Diagnostics, when the noise under the bonnet signalled more professional help.

I
t is true that a lot has changed in the forty plus years The early years
since a couple of entrepreneurs started Midas in the
late sixties. Looking at the Midas storefront and the Midas, in concept, first opened their doors to the South
company’s long established base in Meadowdale on Jo- African public in 1968. Even in these early years the company
hannesburg’s East Rand, attached to a massive ware- saw a need for a trusted supplier of vehicle parts. The company
house and amongst part manufacturers, mechanics and vehicle explains that the goal then, as it remains now, was to offer
dealerships, shows that much has stayed the same. From this value for money products that would save motorists money,
goal came the internal motto that guides all Midas operations, but to stay well clear of so-called white box parts that offer a
“Delivering the promise”. The Midas-motto has remained true fire sale price but that burn your fingers in the end. Rolf
throughout the years, but the company grew and changed in Gudegast, chairman of NAPA and a member of Midas since
tune with the South African economy. From humble begin- 1976, explains the Midas mindset and development: “A great
nings in the era where Ford and Chevrolet reigned supreme, deal has been achieved in a relatively short history. The next
Midas now serve the local market via hundreds of stores selling quantum leap in our business was achieved with the decision
more than 600 tonnes of automotive related products and to support primarily the local component manufacturing in-
equipment each month. Mirroring the changing demograph- dustry and its leading brands and the introduction of bulk
ics of the country that gave it life, Midas-stores are owned by buying, together with the revolutionary dropshipment con-
hundreds of entrepreneurs in their own right, from every race, cept. Those decisions added new dimensions and created the
creed and background. These entrepreneur-driven stores now foundation for the NAPA buying group and the Retail and
serve drivers of over 50 brands of vehicles in a country where Workshop franchises”.
less than 150 model choices in the swinging sixties blossomed
to a peak of more than 2 000 options by the time the country Time moved on and Midas found that their recipe for success,
celebrated 10 years of peaceful democracy. being a mixture of the ingredients quality, range, availability,

page 24
price and advice, stood the test of time. The company entered Africa’s wide open spaces, Midas was able to gain access to in-
the era of neon clothing, of Billy Idol and of horrific car vestor funds to oil the wheels of its expansion plans. The
colours, with a commanding market share and a now well model was simple. As Midas has done for the aftermarket re-
known presence throughout South Africa. It was in the boom- placement parts market, so it could do with a myriad of similar
ing Eighties that the Midas success story found its way across related sectors. The company expanded upstream to part
the boardroom table of the Johannesburg Stock Exchange, sourcing and supply and downstream to other sectors of the
then still in the heart of downtown Johannesburg. After thor- automotive market. Midas became a corporate force to be
ough investigations and negotiations the management of reckoned with and yet, as the structure of its businesses will
Midas rang the opening bell of the JSE in early May 1986, as show, it never chose to flex its muscles and in the process lose
is the privilege of any newly listed company. Shares started its character as a trusted source of automotive help. It was
trading immediately and continued to do so for the next 16 perhaps this company motto that lead the Midas management
years. to a structured buy-out and de-listing of the company in early
2002. Business has grown, yes, and investors could find little
Building the business fault, but in the arena of public investing a drive for profit
often times pays little heed to long term goals for stable and
Since listing Midas Ltd. found itself in the spotlight of in-
responsible growth.
vestors as much as it has been in that of the motoring public.
With a sound business model and solid foothold in the coun- Midas, the company, phased its move away from the bourse
try where a car was far more than a means of crossing South in two steps. In 2002 it de-listed and started trading as the
private company it was before 1986 and soon afterwards, in
2003, it completed the process by welcoming a selected group
of partners into the business. Money talks, they say, so an
analysis of the shareholders’ structure after de-listing speaks a
lot of the true Midas nature. In forming the private company
Midas stayed in character and it invited its franchises and a
broad based black empowerment group under the leadership
of the well-known Jomo Sono to head into the future with
them. Shares between these groups and the Midas manage-
ment were divided almost equally and this gave the company
broad and balanced representation. Midas also proved, by pre-
empting any pressure from government and lobby groups, that
it was willing to transform the business and that including
partners from previously disadvantaged backgrounds was a
sound strategic business decision.

Further proof to Midas’ nature of being pro-active is clear in


the structure of its franchise operations. The company invited
franchisees from all corners of the country, and its immediate
neighbours, and from all walks of life to buy into the Midas
success. By doing this the company gained strong
demographic representation even before it became a political
prerequisite.

page 25
The franchising model is simple and mirrors the The National Automobile Parts Association (Napa) was one of
shareholding approach. Midas invites existing automotive re- the first divisions to spawn from the original Midas. Formed in
tailers, service centres, clutch and brake specialists or auto- 1973, Napa set its aim on serving the retail sector and its mem-
electricians to join its network, if their store and their level of bers through co-operating on marketing and buying operations.
service comply with the strict Midas requirements. Once you The network now reaches from Namibia to Botswana and
get accepted, however, your title changes to “Associate” and everything in between and it has become a de facto market for
you become a true partner. many products in this sector. The slogan “Delivering the prom-
ise” does of course take a whole new meaning, with Napa serv-
Midas today ing its members and not the general public. Parts Incorporated
Africa (PIA) shares many of the goals of Napa and has as its core
Midas-franchises may be immediately recognisable by its or-
focus the vehicle parc between 4 and 12 years old. The company
ange and black colour scheme, but the size of the Midas
offers products to its thousands of retail members through a
Group may surprise most. With 430 franchises and 9 major
modern trading platform that allows retailers and franchisees to
distribution hubs, Midas is by no means a small player. The
make informed purchasing decisions based on market trends
company remains adamant that it relies on the success of its
and the flow of order data. The system relies on a state of the
franchises for its own success. That is why the company
art software system that allows for trading between members
aligned its corporate division to serve franchises, notably
and PIA itself and it is powerful enough to transact thousands
through marketing and advertising, bulk buying, aligning
of invoices per day, with the current count measuring more than
logistics and distribution services and offering in-house sup-
11 000 every day. Midas’ third business to business division is
port, such as through its free marketing and advertising sup-
its Autocycle Centres. This division serves the somewhat smaller
port division. Out of the hundreds of franchises, Midas itself
motorcycle and quad market with products and services that
owns only 14, which it uses as a direct line of communication
are similar in approach to that of PIA, but far more focussed on
from shop front to managing director and as a marketing sur-
anything that requires a helmet to ride. Here the company
veying tool to help gauge its product and service offerings. The
serves a multitude of small and large aftermarket service and
company further supports more than 7 000 independent
repair shops and its range of products extend to virtually any
stores and service centres through its purchasing and supply
part of the motorcycle community, including niches such as
co-operations.
Moto-X with dedicated brands such as AMA and Izumi.
The big boys Defining Midas
Napa, PIA and Autocycle Centre might not ring a bell to some- – the franchise network
one looking for a quality replacement clutch kit at a Midas store
The Midas franchise shares more than just a name with its
in Bloemfontein, but to Midas franchises and the thousands of
mother company and it is clearly the company’s proudest
other dealers, service centres and even suppliers these names
achievement. Through its network of 265 Midas stores in
means better prices through combined purchasing clout.
South Africa and all of its neighbours Midas (the group) has

page 26
a way of delivering the promise directly to vehicle owners in batteries and all services associated with it, including battery
southern Africa. It is indeed this direct line to Joe Public be- testing and advice. Midas has grown this division to 60 stores
hind the wheel of his trusty old bakkie allows Midas to align nationwide, with more than 40 stores offering Battery Hub
its products and pricing to serve the customer and in doing services. As with the Midas franchise, each product and service
so offer far more than other wholesale-only operations. To carries a national guarantee, even though each Motolek store
prove this point Midas points to the fact that there are stores is still the proud operation of an entrepreneur.
in virtually any part of the country, including four stores in
Soweto, a fast growing market for its products. ADCO joined the Midas fray in preparation for, and
ultimately as an answer to, the growing sales of modern diesel
The Midas team has much to say about the Midas-franchise vehicles. Using the same model of approving and in pre-exist-
benefits. Products and services are all guaranteed for 12 ing specialist stores under the ADCO-brand and Midas
months, nationally, and Midas counts more than 1 000 qual- promise, this division quickly grew to more than 40 stores.
ified sales and service advisors amongst the team that supports ADCO, as Motolek and other divisions such as CBS, offers
the Midas franchise network. The Midas franchise has also in- the added benefit that it is qualified to service vehicles from
creased its range of self-branded value products, which offer your trusty old farm tractor to the major interlink heavy duty
high quality, but at a lower cost. Starting with basic necessities trucks that serve the nation. It also has, through Midas’ whole-

such as Midas-branded motor oil, the range now reaches prod- sale divisions, access to the best and most modern equipment
ucts such as professional tools with a lifetime guarantee and and parts from heavyweights such as Denso, Delphi, Stana-
Moto Part quality guaranteed vehicle replacement parts. dyne, Hartridge, IHI and Yanmar which the Midas Group ex-
clusively supply. Bosch and Zexel are also among the leading
Motolek is the second largest franchise in the Midas group’s brands supplied by Midas Group. All these brands are well
network. Having been incorporated into Midas early in its ex- known amongst original equipment manufacturers, which
istence and boasting more than 25 years in operation, Motolek chose these parts when designing their vehicles. The ADCO
seeks to serve the “Do It For Me” (DIFM) market with auto- network also offers a nationwide guarantee on parts and serv-
electrical services that range from wiring, fault finding and ice on everything it does, from repairs or replacement of high-
general engine diagnostics to alarm systems, tracking devices pressure diesel injectors to turbochargers and diesel pumps.
and even cellphone hands-free car preparation. The Motolek
concept has also expanded to include Battery Hub operations, OK, so replacement parts, auto-electrical concerns and diesel-
which offers a range of well known and self-branded vehicle related problems and service is covered. What remains? A lot,

page 27
says Midas, who also boasts a network of clutch and brake spe- Midas quickly moved to incorporate lifestyle products into its
cialists through the CBS franchise network. CBS applies the philosophy and its product strategy. This has lead to Midas
same success recipe to this market by stocking well known and now importing and supporting products ranging from Patriot
respected products from names such as LUK and Fras-Le, of- cycles to fishing gear from big names such as Okuma, Loomis
fering qualified service and assistance on everything from and Franklin, Bandit and SureCatch and even outdoor gear
brake cylinders and shoes to clutches and pressure plates, back- from names such as CampGear.
ing the service through a national guarantee and again spread-
ing its service from passenger to commercial vehicles. The The future
younger CBS network has already grown to more than 18
Looking at Midas, it is clear that much has changed since the
stores.
early days of ’68. It is also very clear that Midas, under the di-
Auto Care and Diagnostics (ACD), the vehicle service and rection of managing director Gordon Odgers and his team,
maintenance specialists, is the newest kid on the Midas-block has stayed true to the goals it set when it first opened its doors.
and it is proof of Midas’ ability to gauge the market and pro- This approach has given Midas the self confidence to tackle a
actively reacting to modern trends. In this brave new world brave new world where money is tighter than ever, but where
where a computer chip controls everything from your window the Midas offering of value and advice has become even more
mechanism to your fuel injection mixture, Midas recognised attractive.
the need for assistance to owners of these vehicles. ACD is
But the world is changing and Midas is listening attentively.
being developed with modern vehicles in mind, recognising
Vehicles are becoming more and more complex and many peo-
that the world is changing, but that vehicle owners will always
ple are turning to Midas not only for assistance in doing it
look for a helping hand and will no doubt turn to the name
themselves, but also for help in getting it done. In this world
they have trusted since the sixties.
Midas is already well positioned with franchises such as Mo-
Work/Life balance tolek, CBS, ACD and ADCO, but more is to come. Through
this, Midas concedes, it is heeding the call from the growing
Need further evidence that Midas has its ears to the ground population of female vehicle buyers and the growing black
of the South African motorist? Here is your proof. Through middle class, but even more it is staying true to its internal
years of studying the market, Midas recognised that it could motto and to the motto that everyone knows it by, “There is
apply its promise to some, seemingly unrelated market seg- more to Midas”.
ments. Given this feedback from its franchises and markets,

page 28
Go Green…..Go Willard
Willard Batteries is a brand name
that has become woven into the fab-
ric of South African life. This is the
result of long ongoing relationships
with people in a variety of sectors
and in many walks of life and not
just motorists. From the informal
townships in which electricity
wasn’t always available - to people
in their professional capacity - like
telecommunications, mining, farm-
ing or warehousing.

O
f course, massive distribution and nation- recount one of the most exceptional environmental success
wide availability of the brand, has resulted in stories associated with the South African automotive sector;
many thousands of Willard Batteries signs the recycling of lead-acid batteries.
acting as a regular subconscious reminder
and endorsement of the market leader. For some time Willard Batteries has been making a significant
Batteries are somewhat different to most other automotive and contribution to the ‘greening’ of South Africa. Its ‘Go Green,
industrial products in that they are perishable. This has pro- Go Willard’ campaign, in which motorists are encouraged to
vided the opportunity of building strong relationships in the bring old batteries to Willard outlets for recycling, has been a
trade through regular contact. To service the variety of user resounding success and has helped to make our country
markets properly and efficiently, a formidable supply chain cleaner and its citizens healthier.
structure has been put in place, giving a massive range of cus-
tomers exactly what they need when they need it. A portion of the proceeds of the recycling operation is donated
to Food & Trees for Africa, a local award winning non-profit
As a trusted power solution provider, Willard Batteries is able organisation tasked with the planting of trees in areas that
to address the needs of a vast array of challenges, industrial need them most. This commitment is indicative of the posi-
and automotive. In fact, together with a network of overseas tioning of the Willard Batteries brand, targeting the more tra-
affiliates, there is no application that cannot be met, from ditional and conservative automotive and industrial consumer
Auxiliary power and Battery Bays to Utilities and Wireless and encouraging a partnership responsibility for the environ-
Network backup and everything in between. ment.

Willard Batteries has also built a reputation as a good and con- Willard Batteries started trading in 1954, under licence to the
cerned corporate citizen. Working closely with many cus- American company ESB. It focused initially on the manufac-
tomers, there has been a commitment to focus on the positive ture of automotive batteries, but introduced industrial batter-
aspects of the battery and stored energy industry, to give some- ies in 1966, followed by the manufacture of motive power and
thing back and play a role in nation building. stationary batteries in 1967.

With environmental issues having emerged at the forefront of Willard Batteries was acquired by Powertech in 1981, becom-
the global political agenda in recent years, it is appropriate to ing a 100% South African-owned company in the process.

page 29
It also attained a unique position in the domestic battery man-
ufacturing arena by becoming the first South African manufac-
turer to be awarded the Quality Management System 0157 Part
II listing for its automotive production facility. It was later
awarded the same listing for its industrial operation.

In June 1988 this was changed to the SABS ISO 9002 quality
accreditation, to be followed by all the important quality ratings
- including the ISO 14001 and OHSAS 18001 approvals, the
Ford Q101 rating, the VDA6 rating, and the ISO/TS 16949:001
rating.

One of the most significant of the standards is the ISO


14001:1966. This is an international voluntary environmental
management standard aimed at minimising the harmful effects
on the environment caused by an organisation’s processes and
activities.

Importantly, it provides a framework of control for an Environ-


mental Management System against which a third party can cer-
tify an organisation.

This standard is applicable to any organisation that wishes to:


• implement, maintain and improve an environmental man-
agement system
• assure itself of its conformance with its own stated environ-
mental policy
• demonstrate conformance
• ensure compliance with environmental laws and regulations

A portion of the proceeds of Willard Batteries’ recycling operation is


donated to Food & Trees for Africa, a local non-profit organisation
tasked with the planting of trees in areas that need them most.

page 30
With increasing environmental consciousness have come The road to certification for Willard Batteries on this
increasing demands of businesses, as well as their customers Management System was less challenging than its ISO 14001
and suppliers, to demonstrate higher levels of commitment to certification, with fewer hurdles to overcome. The manage-
the preservation of the environment and the conservation of ment of Willard Batteries’ PE site committed to achieve
natural resources. OHSAS in 2007. Implementation of the System took almost
exactly a year. The certification audit was conducted in early
Willard Batteries’ PE site embarked on the road to certification December 2008 at the end of which Willard Batteries PE site
on the ISO 14001:1996 Standard in 2001. Initially, the proj- was recommended for certification on OHSAS 18001:2007.
ect seemed insurmountable as the number of environmental The recommendation was accepted by the certification body
hazards present at the site at the time meant that certification in Germany. The Port Elizabeth lead acid battery manufac-
would be a challenging exercise. Nevertheless, Willard Batter- turer is, once again, the first lead acid battery manufacturing
ies was committed to the achievement of the ISO 14001 cer- company in South Africa to achieve this accreditation.
tification. A generic environmental management system was
sourced and adapted to battery manufacturing processes and Willard Batteries considers its employees its most valuable
activities. assets and undertakes to safeguard them, as far as reasonably
practicable, from injury or damage to health arising from any
ISO 14001:1966 certification was finally achieved in June of the operations or activities associated with its business.
2004 and Willard Batteries became the first lead acid battery OHSAS 18001:2007 regulates this commitment and
company in South Africa to achieve this certification. As a the certification will bind the organisation to this
member of the Powertech Group, the Port Elizabeth company commitment.
became the first in the group to achieve this status.

Subsequent surveillance audits maintained the certification.


The Standard had, meantime, been upgraded from the 1996
version to the 2004 version.

The company achieved certification on the new Standard in


June 2007 and has since been successful in a subsequent sur-
veillance audit in June 2008. A second audit was conducted
in December 2008. This audit, too, was successful.

Willard Batteries remains


committed to the preservation of the
environment and the conservation of
natural resources.
Passing another milestone, Willard Batteries also achieved
OHSAS 18001 certification at it PE site. OHSAS 18001 is
a certification specification for Occupational Health and
Safety Management Systems. OHSAS 18001 is an audit/
certification specification, not a legislative requirement.
Organisations registered to OHSAS 18001 can be more
confident about meeting the requirements of OHS legislation
and creating a workplace that is safe and without risk to the
health of its employees.

page 31
New Technology in the Latest Gen-
eration Batteries Behind the Recycling Process

T
Previously, the aftermarket batteries manufactured he recycling of lead-acid batteries is a multi part process. Ini-
at Powertech Batteries’ Port Elizabeth plant were tially the battery is broken apart in a hammer mill. The broken
defined as hybrid batteries – consisting of one plate pieces go into a vat or flotation pond where the lead and heavy
calcium coated and the other plate coated with the materials sink to the bottom while the plastic remains afloat.
previous generation antimony based alloy. The lat- At this stage of the process the polypropylene pieces are scooped away and
est generation calcium-calcium silver plus batteries the liquids are drawn off leaving the lead and heavy metals behind.
have both plates coated with calcium, which
equates to a high performance battery with a The polypropylene, or plastic pieces are washed, air dried and then
higher charging rate. These batteries require very melted together into an almost liquid state. The molten plastic is then
little maintenance and under normal conditions put through an extruder that produces small uniform plastic pellets.
will never need topping up with water. With the These pellets are then used to manufacture new battery cases.
electrodes now being manufactured in a continu-
ous process, to much closer tolerances – together The lead grids, lead oxide and other lead parts are cleaned and melted
with tamper free caps – modern Willard Batteries together in a smelting furnace along with additives used to help in the
have the benefit of not requiring maintenance by removal of impurities. The molten lead is poured into ingot moulds.
the motorist. After a couple of minutes, the impurities, or dross, float to the top of
the still molten lead in the moulds and is scraped away. The ingots are
then left to cool. Once they have cooled they are removed and are then
Other Willard Battery features
ready to be re-smelted to produce new lead plates and other parts for
include: new batteries.
• Expanded metal technology plates on both pos-
itive and negative electrodes An additional aspect of Willard Batteries’ commitment to the environ-
• The new patented positive calcium-silver grid ment is its association with Arbor Week. This has involved the planting
alloy results in improved corrosion resistance of trees at selected schools around the country. For Arbor Month 2009,
the focus shifted to organic food gardening at schools.
• Improved technology and equipment for cur-
ing provides much stronger electrodes A number of schools were selected according a set of criteria and were
• Products are assembled on new automated as- given a Permaculture Starter Pack that fitted their specific needs.
sembly lines for improved consistency and
product quality Permaculture is much more than organic food gardening. It is a response
• Water consumption is reduced even further to the environmental crisis we face on our planet and is about designing
with the use of calcium alloys a system to provide food harvested from plants that are integrated into
the local ecology. Thus humans become ‘part of ’ rather than ‘separate
• Improved self discharge characteristics. The use
from’ nature, natural systems and cycles.
of calcium alloys allows for a longer shelf life
compared to hybrid batteries Willard Batteries’ support of these projects – which had a competition
• A high performance battery putting out high element linked to them so that scholars were more easily motivated to
Cold Cranking Amps participate – is expected to aid the development of communities by en-
• Low self-discharge provided there is no electri- hancing diet and nutrition, and expanding their members knowledge
cal drain on the battery and skills base.
Powertech Batteries continues to develop its man- To attain good health and nutritional status, people need sufficient
ufacturing activities in its plant in Neave Town- knowledge and skills to grow their own fruit and vegetables.
ship, Port Elizabeth. Production takes place at the
same location where it all started for Willard in Linking nutritional education through Permaculture at school level
1954. The production line has been constantly up- breeds good practices at household and community levels. Sustainable
graded and today has a capacity of around two mil- food gardening in a school setting will inevitably influence home gar-
lion batteries per annum. It is a cutting-edge, high dening and in other areas, communal gardening, which are important
technology manufacturing facility that will not be in improving food security – and the health of all South Africans.
out of place in any country of the world.

page 32
Nissan – a Global Player with true
South African Roots

Nissan South Africa can trace its beginnings back half a century, to 1959, when the company called Datsun Motor
Vehicle Distributors was formed. The first vehicles imported from Japan were 38 one-ton pickups, which arrived
in 1960, and local manufacture, from completely knocked down units, started in Durban in 1961 with the
launch of the Bluebird passenger car.

T
he importation and local assembly operation can trace its roots back to 1911 when the Kwaishinsha Auto-
was followed by the establishment of manufac- motive Company was formed to produce the first Datsun cars
turing facilities at Rosslyn, near Pretoria, and in Japan. This company was taken over in the early 1930s and
Nissan and its forerunner Datsun have provided the Nissan Motor Company was first registered.
transport solutions for South Africans ever
since, while making a significant contribution to the develop- As Nissan became more and more established as a global motor
ment of the local motor industry. Today, with the transforma- manufacturer, US production facilities commenced in 1980 and
tion of the country and along with it the unrestricted, and the UK plant opened in 1984. By the 1990s, Nissan was ac-
highly competitive, motor vehicle market, Nissan is well knowledged as a world leader in technology with many of its
placed to continue its role in the South African automotive international manufacturing facilities being the envy of its com-
market. Nissan currently enjoys around 10% of the total petitors. Motor industry expansion continued and it became
South African vehicle market with a comprehensive range of obvious that global production overcapacity was becoming a re-
passenger cars and light, medium and heavy commercial ve- ality and motor companies began to suffer, including Nissan.
hicles as well as recreational and specialised vehicles. To meet To ensure their survival into the new millennium many motor
its objective of significantly growing its market share, Nissan companies - including some old established names - were taken
South Africa is currently engaged in a dynamic programme of over and others formed international alliances.
new model introductions. A total of over 2 500 people are em-
ployed by Nissan in South Africa and, as part of its social re- In 1999, Nissan Motor Company formed a strategic alliance
sponsibility efforts, the company is committed to training, with France’s Renault group. The alliance between Nissan and
educating and advancing its workforce to the maximum po- Renault was a natural fit as the two companies were of similar
tential of each individual. Other elements of Nissan’s invest- size, the products fitted extremely well and their respective
ment in upgrading the social fabric of society focus on adult strengths were generally in different markets. The alliance cre-
and child education, child welfare and job creation. Nissan ated the fourth largest automobile company in the world.

page 33
In 2000, Nissan Motor Company Limited increased its invest-
ment in South Africa by purchasing the 37% stake which the
Sanlam Group held in Automakers. The investment gave Nis-
san Motor Company control, which was subsequently in-
creased to 98,7%. In 2001 the South African company’s name
changed from Automakers to Nissan South Africa. Nissan
South Africa’s vehicle assembly and manufacturing operation
in Rosslyn is a leader in South Africa with regards to sound en-
vironmental practice in its manufacturing process and has won
numerous awards and recognition both locally and internation- Essential to the ongoing success and growth of Nissan Manu-
ally for its environmental efforts. These include the exclusion facturing is access to Nissan’s worldwide technology, research
of chlorofluorocarbons and other harmful chemicals from all and development input has already been incorporated into Nis-
phases of its manufacture, chemical and other waste manage- san vehicles in other parts of the world where similar climate
ment; water and power savings efforts; a man made wetland and road conditions to South Africa are found. The investment
which is a catchment area for storm water; recycling; and work- by Nissan Motor Company of Japan into Nissan SA further fa-
ing closely with its numerous suppliers and dealers to ensure cilitated this close technological cooperation.
sound environmental practice. All Nissan vehicles benefit from
Nissan’s international lifecycle approach of environmentally Among the company’s
sound vehicle design, use and recycling. achievements are:
• The first South African motor company to achieve the
internationally recognised ISO 9001 and subsequent 14001
quality certification from the SABS in all its plants.
• An autospray facility to give Nissan vehicles a quality paint
finish in line with the best in the world.
• All production lines are highly automated to ensure consis-
tent quality.
• All Nissan vehicles undergo the company’s unique e-coat
anti-corrosion process prior to painting and consequently
have a three-year rust and corrosion warranty.
• All phases of the assembly process make extensive use of
computerisation for tracking, quality standards and vehicle
testing.
• Awarded the highest safety rating, Noscar, by the National
Occupational Safety Association for 20 consecutive years.
Nissan is currently the only South African motor manufac-
turer to hold this award.
• Two National Productivity gold awards for productivity
advancement.

Racing improves the breed states. It was soon after the first Datsun passenger car arrived
in Durban in knocked down form in 1961 that the reigning

N
issan and motor sport are synonymous in South
South African champion rally driver, Ewold van Bergen,
Africa. The Rosslyn-based company, which has its
bought a 1200 cc Datsun 310. A mechanical engineer, he can
own state-of-the-art motor sport department in
justly be regarded as the father of Nissan’s motor sport career
Midrand, where it designs and builds off-road racing Navara
in South Africa. He developed the little Datsun into a potent
pickups for both domestic and international competition, has
rally machine and attracted the attention of Datsun in Japan.
long recognised the benefits of motor sport as a valuable mar-
He became a technical adviser and thus began a successful col-
keting tool and brand image builder. Success over the years in
laboration that was to last for some 15 years, while he estab-
all forms of motor sport, from circuit racing to rallying and
lished himself as one of the all-time greats of South African
off-road racing, has built a reputation for performance, relia-
rallying, winning a further three drivers’ championships and
bility and durability as well as a large, vociferous and knowl-
assisting Datsun to win the manufacturers’ title five times.
edgeable fan base throughout the country and in neighbouring

page 34
Old-timers will fondly remember the Datsun SSS, which made and has gone on to remain unbeaten for nine consecutive years,
its first appearance in rallies in 1969. Van Bergen, who joined first with the Hardbody and then the Navara. Nissan’s success
Datsun full-time in 1966 as a development engineer, was inti- in the domestic off-road championship with the Hardbody de-
mately involved in the development of the SSS, both as a desir- veloped by Glyn Hall and his team saw them being commis-
able road car which set new standards of driving pleasure and sioned to build two pickups for French Nissan dealer team
as an all-conquering rally car. This was the car that a young Sarel Dessoude to enter in the 2002 Dakar Rally. Five stage wins un-
van der Merwe started his rally career in, finishing a remarkable derlined the competitiveness of the South-African built Hard-
fourth overall in a standard 1600 SSS in his first Total Interna- body and resulted in Nissan Japan entering the 2003 event with
tional Rally in 1973. Another all-time rally great, Jan Hettema, three pickups for former Dakar winners, Kenjiro Shinozuka of
drove for the official Datsun works team in 1978, a notable year Japan and Finland’s Ari Vatanen, plus De Villiers.The Proudly
for the company as it was the number one selling brand in South African Hardbody pickups proved their mettle with De
South Africa. In 1980 Hannes Grobler began a career as a Nis- Villiers finishing fifth and Vatanen seventh. Hall and his team
san works driver that was to last right up to 2009 and result in were then entrusted with the development of an evolution truck
10 national rally and off road championships. In 1986 he won for the 2004 Dakar. Four were built in Midrand and lined up
both the national off road and rally championships – the only at the start in the hands of Vatanen, De Villiers, Frenchman
driver to achieve this feat in the same year. Yves Loubet and Colin McRae of Scotland.It was a much
tougher Dakar than 2003. Loubet and Vatanen retired, McRae
Datsun was also a name to be reckoned with on the motor rac- finished 20th and De Villiers was again the top Nissan finisher
ing circuits in the 1970s, with drivers like Sarel van der Merwe, in seventh place.
Jan Hettema, Hennie van der Linde and George Santana. Dat-
sun changed its name to Datsun-Nissan and then Nissan in the Nissan enjoyed its greatest Dakar success as a factory team in
early 1980s, but the success rate of the Japanese cars in motor 2005, when De ViIliers finished fourth in the Proudly South
sport remained unchanged. Van der Linde enjoyed a remark- African Hardbody. There was no works involvement in 2006
able string of saloon car championship successes in the 1980s, or 2007 and the event was cancelled in 2008 because of security
winning the title in 1984, 1985 and 1986 in Nissan Skylines. concerns in some African countries. In 2009 the Dakar moved
to South America and four privately entered South African-built
Under the leadership of current motor sport manager Glyn Nissan Navaras took part. Norwegian Ivar Tollefsen and Briton
Hall, Nissan Sentra touring car drivers like Grobler, Nic de Quin Evans performed a memorable giant-killing act of finish-
Waal, Duncan Vos and Giniel de Villiers helped develop the ing a remarkable fourth overall, one place ahead of Pole
basis for the Nissan Primera that won four successive touring Krzysztof Holowczyc and Belgian Jean-Marc Fortin.
car championships from 1997 to 2000 with De Villiers at the
wheel. With the demise of the formula at the end of 2000, Hall Nissan Motorsport returned to circuit racing in 2005 with a
and his team quickly transferred their skills and enthusiasm to Nissan 350Z. Leeroy Poulter won the championship in 2006,
the national off-road racing championship. Nissan Motorsport finished third in 2007 and was a close runner-up in 2008 in
won the production vehicle championship at its first attempt what was to be Nissan’s last year in circuit racing.
in 2001 in stiff competition with Toyota, Ford and Mitsubishi

page 35
Giving birth to Tonii
It is eight o’clock on a Friday morning and the Sparepro staff members are standing in a circle in the warehouse,
holding hands, and praying. They’re praying for the ongoing health of the company, their families, their fellow
workers, and also for mentally-handicapped children at Little Eden in Edenvale, to which they made a financial
donation recently. This is not a one-off event, and every Friday morning is marked by prayer. The practise of
assistance to the needy (handicapped children, underprivileged women and destitute elderly people) by staff
members and the company; is ongoing, as is moral, emotional and financial support of employees who find
themselves struggling to cope.

Management team (left to


right): Price Govender,
Ahmed Kolabhai,
Vani Chetty and
Patrick Latouche are
the quartet which have
steered Sparepro into a
powerful position in the car
parts market

S
parepro is better known as Tonii, a broad range The man behind Sparepro (and behind the Tonii name, but
of aftermarket automotive parts which has carved more of that later) is Price Govender, who in the mid-1990s
for itself an impressive position in the market- spotted an opportunity to import car parts from the Far East.
place thanks to a combination of price and quality He travelled widely and found that the doors were starting to
which the end user is equating with solid value. open: there were many manufacturers willing and able to work
Not only are they growing their market share but with foreigners. A number of relationships were formed –
in February the company hit a record turnover and seems to often with tiny entities – but since then these associations have
be bucking the general economic downturn. Not only is flourished and the businesses in question have grown together.
turnover growing nicely, cash flow is positive (debtors and stock Price’s understanding of the needs of local spares retailers and
being well managed) while net profit is strong thanks to careful the ability for his suppliers to react quickly gave him an edge
cost control. The end result is that the shareholders are getting in the marketplace and soon Sparepro was distributing parts
an impressive return on their investment. nationwide.

page 36
While his wife Vani handled the marketing aspects and a third did not have motoring or spares industry experience, but he
partner Ahmed managed the financial/general management knew how to extract value from a company, and how to fine-
side of the business, Price handled all interaction with suppliers tune systems (human and otherwise) for high efficiency.
and also vetted the quality and suitability of a growing list of
components. As the business grew, the management team “When I joined the company there were over 100 employees
realised the need for a more professional footing to secure its but they needed direction and a clearer sense of purpose,” says
position in a highly-competitive market by adding solid back- Latouche. “I set about creating mechanisms to measure and
end functionality to the ability to continue to put sound assess performance so that targets could be set and incentives
products into the marketplace at highly-competitive prices. put in place for achieving those targets.”

Part of that process was the introduction of the Tonii brand Doing this rapidly helped to improve internal efficiency and
name. The brand name comes from the name “Tony” which reduce shrinkage – almost inevitable with this kind of opera-
was given to Price Govender by his suppliers in order to avoid tion. Relationships with the customers have been improved
and the sales team has been revitalised, each salesperson being
Warehouse managers: Dean Gounden (left) and given a clearer idea of who he or she is looking after.
Charles Simmadari keep things running smoothly in the
Low overheads and careful control of stock levels has contributed
warehouse, which after all, is the heart of the operation to Sparepro’s strong profitability recently. 40 percent of the products
account for 80% of sales

the element of confusion between his Latouche is a great believer in employees being part of the
first name and the word ‘price’ which is organisation and he believes in a simple principal: people must
invariably an important part of any pricing negotiation do the work, not the hours.
anyway! The name “Tony” evolved to “Tonii”, a new brand
name was born... and the rest is history! “People are a major part of the puzzle and about 70% of the
workforce is in the warehouse and they move thousands of in-
Today, virtually everything in the Sparepro arsenal is branded dividual items each day,” he says. “We conducted time and
Tonii, and the company sells about 6 000 fast moving different motion studies when I started and the result is a more
products in nine broad categories. The name Tonii first efficient way of doing things.”
appeared on parts boxes in 2005, following a spectacular
launch of the brand and since then it has become a household One of the other issues surrounding aftermarket parts remains
name. That looks set to continue but by the end of 2009 the the Q-word: Quality.
plan is for the branding to evolve somewhat to reflect different
“I think it is fair to say that quality is no longer an issue with
coloured packaging dependent on what sort of product is
imported parts,” says Latouche. Ten years ago it probably was
actually in the box.
but much has changed in the last decade and especially in the
The other significant development was the appointment of last five years. We warranty most of our parts for between one
Patrick Latouche as CEO in March 2008. This livewire month and 3 years from the time of sale to the end user.
Mauritian with a project management/processes background Through our returns policy we can see very quickly whether
there is a real issue.

page 37
“Our total claims ratio is less than 0,1% of parts sold – sourcing a product, to actually getting it into a Tonii box and
and only a portion of those can be traced to genuine product onto the shelf of the customers.
failure anyway,” says Latouche.
Latouche believes they have reached an ideal quality/value
“It has become a key part of the operation to control the ratio but concedes that the exchange rate has been kind to
warranty and return policy efficiently and it isn’t unheard of them in recent months. Nevertheless, he is fanatical about
to get parts ‘returned’ which aren’t even ours. So we need to containing costs. Sparepro distributes to the whole of South
be very alert but when there is a valid claim we investigate Africa as well as to Botswana, Swaziland, Namibia and
thoroughly to ensure that it is sorted out promptly.” Lesotho, and to a smaller extent, to Zambia, Malawi, Mozam-
bique and Zimbabwe where the mix of price and performance
This is backed up by a technical department which is con- is raising eyebrows. An alliance with a dynamic, up-and-
stantly analysing what is going on in the marketplace. Feed- coming logistics service provider (Brago Logistics) is saving
back from a sales department of 14 individuals who regularly the best part of R200 000 per month. Brago deliver both in
interact with their clients, helps to provide market intelligence Gauteng and the Greater Durban area and, for example,
– both in terms of products which are popular/unpopular and if a retailer places an order by 3.30 in the afternoon, they’ll
also in terms of any reliability problems – and keeps a finger have the parts some time the following day in normal business
firmly on the pulse. conditions.

It’s all about popular cars and popular parts, and Tonii is in All in all, the future looks pretty bright for Sparepro, driven
the agreeable position where approximately 40% of products in part by the current economic climate where there’s a
represent 80% of sales. But the plan is to improve on those growing need to keep cars alive for longer, though, as Latouche
ratios still further, so fewer rather than more product lines will is quick to point out, they didn’t wait for a recession to hand
pave the road ahead. Sparepro is very clearly in the volume them a business opportunity. And he adds that there is no
market and dead wood is ruthlessly trimmed out of the inven- reason why they should not look at introducing new products
tory. Currently, the only area where the company is not in the near future, which are unrelated to the automotive
represented is in body parts. industry. Through the network of contacts which has been
established, they could source virtually anything provided it
Market analysis and the age and type of the vehicle population makes business sense. At the end of the day, as Latouche
is also clearly critical: for example, as soon as a vehicle concludes, “It is a combination of focused energy, serving the
nameplate reaches the end of its normal warranty period, customer as a business philosophy and making the Sparepro
Sparepro will be ready to offer the aftermarket alternatives. culture become more than just business. Success has to be
And today it can take as little as six months from Sparepro measured through results and so far, we are on the right track.”
identifying a need to a supplier meeting it: that includes

Sparepro sells about 6 000 different parts, most of which are


sourced from China. “Quality is no longer an issue,”
says CEO Patrick Latouche

page 38
Creating Synergy
AutoZone is a well known market leader in the automotive aftermarket parts industry which grew from the syn-
ergy of many. When Super Group purchased the Elpar, Femo, Spares Link and AutoZone brands, they decided
that one united brand would work better than many smaller brands. Thus, in 1996, AutoZone was born.

T
oday, AutoZone is the automotive parts business Team, also known as the Pit Crew. This team of dedicated ex-
that distributes a wide range of automotive parts perts are available to you to answer any technical questions re-
throughout South Africa and even across our lating to your vehicle. The best part is that they are available 7
borders into Namibia, Botswana and Swaziland. days a week, from 7am to 7pm on 0800 200 993. The Pit Crew
AutoZone has grown over the years, and now even have their own series of DIY leaflets giving you Hints and
consists of over 160 stores, of which over 70 are member Tips for almost any routine vehicle work. This range of 22
(voluntary trading) stores, and AutoZone is still growing. In leaflets will give you guidelines on how to do various auto-re-
2005, a new and improved store concept was introduced in lated tasks, ranging from changing a fan belt to replacing gas-
order to make the customer’s shopping experience more kets. Our specialist categories include the new Turbocharger
personal. The new shopping environment included a Front of range. AutoZone is proud to announce that we now stock a
Store section which allows customers better access to the comprehensive range of Turbochargers. We are the preferred
merchandise. Customers can now see, touch and feel the stockist and distributor for the Garrett® and Holset brands. Au-
products they are buying. Products stocked by AutoZone are toZone also offers you amazing after-sales support and thus the
broken into two sections. These are the "Front of Store" section AutoZone Advantage means that you get:
and the "Back of Store" section. The "Front of Store" section
• World Class Technical Expertise
where customers can select the items themselves includes many
• Pre- and Post Sales Support
ranges such as additives, adhesives, batteries, car care accessories,
• Failure Prevention Solutions
custom items, garage equipment, oils and chemicals, wiper
• Failure Analysis and Reporting
blades and much more.
• Personalised Consulting
• A 12 Month Hassle Free Warranty
Product categories that fall into the "Back of Store" section are
usually products that require more technical knowledge and ad- AutoZone believes in looking after all of their customers, not
vice, and include brake pads, engine parts, spark plugs, filters only the trade or account customers. To cater to the cash cus-
and hard parts. The AutoZone experience is continuously im- tomers in the market, AutoZone offers even more value for
proving in order to further enhance our world-class shopping money! If you are a cash customer at any AutoZone store, then
environment. Customers are always guaranteed great service and you are eligible for the AutoZone VIP Card. This card gives cash
the best value. AutoZone has also continued to expand its foot- customers the ability to earn points and redeem them for excit-
print across southern Africa with the introduction of the Auto- ing products. The best part is that this card is absolutely free of
Zone Hyper formats. These stores are designed to offer the best charge!
wholesale and retail experience available, while still catering to
your every need. AutoZone as a brand offers so much more than Despite the fact that AutoZone has over 100 000 product lines
just the run-of-the-mill automotive parts. We also feature a available, we still strive to ensure that you get the part you are
24 hour call centre, a Technical Team, specialist categories, a looking for. To guarantee this, we have carefully developed a
VIP Cash Card, fantastic house brands and much more. range of house brands. These brands enhance the AutoZone of-
fering by giving you access to a wide range of top-quality prod-
The newly launched 24 hour call centre ensures that your ucts, at an affordable price. These brands are constantly being
queries are answered at any time of day or night by a team of widened, and are fully supported by the AutoZone Technical
trained professionals. Closely linked to this is our Technical Team. The five AutoZone Exclusive Brands are:

page 39
AmPro tools are a comprehensive
range of top quality tools, designed
to last a lifetime. In fact, we have so
much faith in AmPro Tools, that we
back them with a Lifetime Warranty! This incredible range of
tools is individually selected to ensure that AutoZone has every
tool required for both the professional and the D.I.Y handy-
man. The core categories for this range of tools includes socket
sets and accessories, wrenches, screwdrivers, electric screw-
drivers, pliers, specialty tools, and tool chests. Why don’t you
visit your AutoZone store today and stock up on this top class
range of tools?

The Ecotech range from AutoZone


covers all automotive electrical
products, and caters for all types of
vehicles from passenger vehicles to light and heavy duty com-
mercial vehicles. This range of exclusive products is the largest
and fastest growing range of top quality electrical products
available. The Ecotech range includes products such as starters,
alternators with their respective components, trailer plugs and
sockets, electrical terminals, and on/off road lighting. Looking towards the future, AutoZone is committed to growing
AutoZone ensures that all Ecotech products are quality tested our footprint across Southern Africa. This will be done through
and vetted, ensuring that you get the most up to date technol- a dedicated strategy of opening stores in every urban centre in
ogy, without paying inflated prices. AutoZone backs this South Africa, as well as through a forward-thinking buying strat-
up with their 12 month “hassle-free” warranty, offering you egy aimed at expanding our product range to ensure that when
peace of mind. you visit an AutoZone store, you are guaranteed to find the part
you are looking for. AutoZone is also focusing on improving its
AutoZone has developed an exclusive offering to their customers, both trade and cash customers. The
range of accessories, all under the first step in achieving this goal was to implement the 24 Hour
AutoKraft range. These range from Call Centre, which is now up and running. We will also be fo-
core categories such as camping and cussing on improving general customer service to ensure that
outdoor equipment, to workshop equipment. This world-class you feel like part of the AutoZone Family each time you shop
range even includes custom car accessories such as car seat at an AutoZone Store. We will continue to strive to deliver “The
covers and wheel covers, all backed by our Hassle-Free returns Right Part, at the Right Price, Everytime!”
policy.
For queries or comments, please feel welcome to contact
Femo is a top quality range of inter- us on 0860 11 22 111, or go to www.autozone.co.za.
nal and external engine components,
designed for a wide range of vehicle
makes and models. This broad range
includes piston rings, valves, bearings, sleeves, water pumps,
fuel pumps and much more. The entire Femo range is also
covered by AutoZone’s 12 month No-Hassle Returns Policy.

Spirex is AutoZone’s range of top


quality automotive hard parts and
chemicals. This range of reliable, top
quality products is affordable, and
includes a wide range of products from brake pads, brake
drums, pistons, batteries, C.V. Joints, to oils and other
chemical additives.

page 40
BARLOWORLD AUTOMOTIVE

50 Years of change
Within a company that has been a Caterpillar dealer for 80 years and gone on to become a
leader in the field of earthmoving equipment, is a leading automotive company that has a
50 year association with the South African motor industry.

F
ounded in 1902, and with operations in 42 coun- BMW, Supra Toyota and several others. In addition to the above
tries around the world, Barloworld is a distributor retail investments Barloworld invested in the Subaru distribu-
of leading international brands providing rental, torship and still holds a 50% interest, after selling shares to Toy-
fleet management, product support and logistics so- ota Tsusho Corporation in 2008.
lutions. The core divisions of the group comprise
Equipment (earthmoving and power systems), Automotive (car A significant and ground breaking transaction took place in
rental, fleet services and motor retailing), Handling (materials 2003 with the Akoob family and their Durban South Motors
handling and agriculture), and Logistics (logistics management Mercedes-Benz dealership. Following the decision by Daimler-
and supply chain optimisation). The history of Barloworld’s as- Benz to change their dealer distribution model, Barloworld
sociation with motor vehicles starts with a Natal agency for merged their Daimler businesses in KwaZulu-Natal with the
Cleveland and Chandler in 1907 and the establishment of the Akoob family business. Today, the business encompasses a net-
Barlow Motor Company in 1919 with agencies for Thornycroft work of dealerships in Durban, Pinetown and Pietermaritzburg,
trucks, Humber cars, TJ tractors and Pratt & Whitney engines. with a flagship dealership at the Gateway development in Umh-
In 1936 these were sold off so that the company could concen- langa Rocks.
trate on the Caterpillar franchise.
International Growth
Motor Retail In 1997 Barloworld acquired an Australian paint company with
In 1959 Barlows acquired Nagington Motors, Ford dealers on Mercedes-Benz and Mitsubishi dealerships. It was decided to
the East Rand. These were the company’s first motor vehicle expand the automotive business. Two Holden dealerships were
dealerships. Thus began an acquisition trail over several decades added, followed by two Volkswagen dealerships in Sydney and
that included well known businesses such as Armstrong Motors, another in Melbourne. The Australian business has grown into
Auto Atlantic, Barons, Club Motors, Currie Motors, Eriksen a successful operation, with eight dealerships in Sydney and Mel-
Ford Group, Garden City Motors, John Williams Motors, Natal bourne representing Mercedes-Benz, Holden, Volkswagen and
Motor Industries (NMI), Roderick Nissan, Stuart Bromfield Suzuki.

page 41
Avis joins this too represented a first for the company. The success of short-
the group term rentals led to the establishment of the first full maintenance
leasing business in the country. Avis Fleet Services, established
Avis in South Africa in the late seventies met the growing demand for longer term
started out as Zeda Car rentals.
Rental and Tours,
founded in 1967 by A focus on the quality and training of its people has been inte-
Noel de Villiers and gral to the success of Avis in southern Africa, and today it is the
Glen van Heerden of leader in its field. Avis has won the Sunday Times Top Brands
Lambons Ford in Bloem- Survey in the business to business car rental category for the past
fontein. Starting with six years. The business continues to live by its famous brand
two Anglias and a Prefect, the company soon expanded to Jo- promise, “We try harder”.
hannesburg. “We were just two young guys at Lambons Ford,”
recalls Glen van Heerden. “We were always lending cars to Ford Barloworld Automotive
customers from around the country when they visited Bloem- Recognising that the future of traditional motor retailing would
fontein. We realised there was a market for car rental and so change, Barloworld took an initial stake in Avis Southern Africa
Zeda was born. Soon we expanded to Johannesburg and then, in 2000, and acquired the remaining shares in March 2004. In
in 1969, Avis Inc of America approached us and, together with addition to this, a conscious decision was taken to realign the
our shareholders at the time, Federale Volksbeleggings, we en- dealership network focusing on “Fewer, Bigger, Better” dealer-
tered into a 50/50 joint venture and changed the name of the ships, representing the top automotive brands in major metro-
company to Avis. At the time we had about 50 cars in Bloem- politan areas.
fontein and Johannesburg.”
The group’s focus changed to providing customers with a range
The company, with a strong focus on customers, quickly grew of integrated motor vehicle usage solutions to fulfil their specific
operations to cover Cape Town and Durban to meet the growing requirements. This has been achieved through a well balanced
demand for rental vehicles. This strong customer focus required portfolio of complementary businesses that cater for customers’
innovation. In the interest of safety, Avis was the first car rental varying needs. These solutions include the products and services
company to have wing mirrors fitted to all its cars, introduce ra- of the individual business units, namely car rental, fleet services
dial ply tyres and seatbelts as standard on the fleet, and offer cus- and motor retail as well as the unique combination of these
tomers automatic transmission and air conditioning. All of this products and services for customers for who require aspects from
was done in the interests of the customers who included both the various business units, in a seamless combination, effectively
domestic and international inbound travellers. Later on, loca- and efficiently provided by a single supplier.
tions at airports were added to meet travellers’ on-airport needs;

page 42
BRIDGESTONE SOUTH AFRICA
Nearly 75 years of service in the tyre industry
On September 14, 1936 the first Firestone tyre to be built in South Africa rolled off the assembly line in the
company’s new factory in Port Elizabeth in the Eastern Cape. Today, 73 years after Harvey Firestone Jnr, together
with first managing director John Cohill, officially opened the PE factory, the company has grown into a major
supplier of passenger and commercial vehicle tyres to the South African motor, mining and agricultural industries
with factories in PE in the Eastern Cape and Brits in North West Province.

Lifelong friends Henry Ford, Thomas Edison Harvey S Firestone Jr John W Thomas joined Firestone in 1908 as
and Harvey S Firestone. – chairman of the Firestone the company’s first research chemist. Here he
Tire and Rubber Company. watches a synthetic rubber experiment.

“When we began making tyres in Port Elizabeth during Sep- Bridgestone South Africa is a subsidiary of Bridgestone Cor-
tember 1936, the country was in the throes of a major depres- poration, headquartered in Tokyo and the world’s largest man-
sion, the economy was in a poor condition and future prospects ufacturer of tyres and other rubber products. Tyres account
looked very bleak,” wrote then executive vice-chairman and for 80% of Bridgestone Group sales worldwide. The company
managing director of Firestone SA (Pty) Limited, Peter also manufactures industrial rubber and chemical products,
Morum, in a 50th anniversary commemorative booklet entitled sporting goods and other diversified products. It sells its tyres
“The Firestone Story 1936-1986”. in more than 150 nations. The history of Firestone and Bridge-
stone in South Africa is marked with many notable milestones,
“In retrospect, the courage of the management of the Firestone from the day in 1935 when Harvey Firestone Jnr purchased
Tire and Rubber Company in America and their confidence the first 7,06 morgen site on the corner of Kempston and Har-
in the future has been more than justified,” he continued. rower Roads on the outskirts of Port Elizabeth in 1935 (for
“Today, Firestone in South Africa is synonymous with quality, £750!). The original production capacity in 1936 was 350
the product has excellent acceptance and the company has be- tyres a day with 150 people involved in production.
come a household name.”
Today, Bridgestone South Africa’s PE plant has a total of
Twenty three years on, Firestone South Africa has become 43 000 square metres of factory space and a capacity of more
Bridgestone South Africa and the company’s growth has re- than 5 500 tyres per day. The company employs over 800 peo-
flected the growth of the country. “Our continued success has ple and produces tyres from the small steel belted passenger ve-
been made possible by the wholehearted support of dedicated hicle range, weighing 6.8 kg, up to the small earthmover range
employees and a countrywide dealer network committed to weighing over 490 kg. To date the PE plant has produced over
total customer service and satisfaction,” said Chairman and 42 million tyres for the domestic and international markets.
CEO, Yujiro Kanahara. In 1971 the first tyre was produced at the Firestone Brits plant.
It was a tyre made by South Africans, using local materials and
“It is our aim to continue to grow and the most modern equipment available at the time. Thirteen
years later, in 1984, with Firestone’s total commitment to
improve the quality of our products South Africa, vast extensions were completed at a cost of
and our service to our customers.” R37,5 million, making it the most modern tyre manufacturing
plant in the southern hemisphere.

page 43
The Japanese traditional Kagami Wari ceremony,
performed as a celebration – this time on the oc-
casion of the launch of Bridgestone’s Run Flat
Tyre in 2008. On the extreme right is Bridge-
stone South Africa’s current chairman and CEO,
Yujiro Kanahara.
This was a massive investment in the future of Ruben’s Barrichello won the European Grand
steel passenger and truck tyres in this country. Prix in Valencia, Spain, the venue last year of
Today, the Brits plant is producing steel belt ra- Bridgestone’s 200th Formula One Grand Prix.
dials that meet the quality, design and perform- In South Africa, Firestone and Bridgestone’s in-
ance standards equal to those achieved anywhere volvement and support dates back many years
else in the world. It is one of only a few Bridge- and has contributed significantly to the growth
stone plants outside of Japan with the state of the of the sport. Bridgestone supports karting, the
art technology gearing to manufacture Bridge- nursery of motor sport, and the development of
stone RFT (Run Flat Tyre), a technology that young drivers and is also the sponsor of the
Bridgestone Corporation pioneered. Since the Bridgestone Production Car Championship.
first tyre left its mould, the Brits plant has pro- Bridgestone South Africa is a company with a
duced some 29 million tyres. In today’s highly strong sense of corporate social responsibility
Early Firestone advertise-
competitive market, Firestone and Bridgestone ment – dating back to 1919 and subscribes to best employment practice.
steel belt passenger and steel cord truck tyres have – realised the vast possibili- “Through the involvement and generosity of
proved their efficiency and productivity over and ties of truck transport im- our employees, we are engaged in a wide variety
over again with their outstanding performance, mediately post WWI of community initiatives designed to raise living
fuel economy, durability and reliability. At both and health standards in our communities,” says
the PE and Brits plants constant testing and research is con- Romano Daniels, general manager of Group Marketing and
ducted to ensure the quality of the tyres produced. Each plant Communications. “An example is the vegetable-growing hy-
has its own fleet of test vehicles to evaluate the tyres produced, droponics project in the disadvantaged PE community of Bloe-
as well as tyre uniformity grading machines (TUG) and tyre mendal, which falls under the banner of the global One Team,
test rooms with machines capable of testing tyres in excess of One Plant programme.” The company is fully committed to
280 km/h under controlled conditions. Bridgestone Corpora- other global Bridgestone Corporation initiatives like the road
tion of Japan took over control of Firestone South Africa in safety-based Think Before You Drive and the Make Cars Green
1997 in the biggest investment by a Japanese company in programmes.
South Africa and the company’s name changed to Bridgestone
Firestone South Africa. In August 2004 a R700 million invest- “We pride ourselves in our commitment to raising safety stan-
ment was announced in the upgrading and expanding of the dards in both the production of tyres and on South Africa’s
Brits plant and building the state of the art RFT production roads, with such campaigns as our national initiative to encour-
line, bringing the total investment by Bridgestone Japan in age motorists to regularly check the condition and pressure of
South Africa to R1.5 billion. The name of the company be- their tyres. We are also the sponsors of the Guild of Motoring
came Bridgestone South Africa. Bridgestone and Firestone are Journalists’ road safety initiative, the Committee for Active
names indelibly etched in the history of motor sport around Road Safety (CARS).”
the world. In August 2009 Bridgestone, the sole tyre supplier
to the Formula One World Drivers Championship, celebrated Bridgestone South Africa is a member of the South African
150 grand prix wins on Bridgestone tyres when Brazilian Tyre Manufacturers Conference and the South African Tyre
Recycling Process Company.

page 44
Supplying and Nurturing the South
African Automotive Aftermarket
A supplier to the South African automotive aftermarket, Control Instruments Automotive (CI Auto) is
buoyant about the market’s potential, and is looking forward to playing an increasingly important role
in keeping the South African motorist in control and on the road. After a period of intense and frenetic
acquisition, followed by a well considered and controlled restructuring and consolidation, CI Auto is on
a mission, both simple and complex. The simplicity is in the goals, the complexity in the execution.
The fulcrum for all these activities resides at the marketing and sales levels.

F
ounded in 1948, Control Instruments Automotive, a
subsidiary of Control Instruments Group Limited,
manufactures and distributes an extensive range of
quality, branded automotive components, including
instrumentation and off-road products to OEMs and
the automotive aftermarket throughout sub-Saharan Africa. The
company owns a number of brands, each of which holds a unique
position in the aftermarket. Well-known manufactured brands in-
clude Gabriel, Echlin, AutoExcel, MAG-Brakes, Autosave and Au-
tocom. The company is also the exclusive African distributor of a
number of internationally distinguished brands, including Warn,
VDO, Britax, GE, Shurlock, Ring, Eurocable and Unipoint.

Based in City Deep in Johannesburg, the company employs over


200 people who are dedicated to its marketing, warehousing and
distribution operations, as well as a further 250 people at the com-
pany’s manufacturing facilities in Johannesburg and Cape Town.
CI Auto constantly invests in its employees. According to Grant
Fraser, Director Market & Product Development, “Training is cer-
tainly a priority in our business. The company runs a number of
internal training programmes to benefit its employees”. To meet
the demands of the growing export market serviced from South
Africa, CI Auto recently set up an export division for the African Grant Fraser, Director Market & Product Development.
market. “In the last decade or so, exports and automotive products

page 45
in South Africa showed strong growth, so it is important that success. First of all, our people; we have our own IP (Intellectual
we provide the right portfolio of products,” says Fraser. The Property) and a lot of the technology that we have is continually
company also has a team of product managers based in Johan- being developed by our own team. Secondly, from a distribu-
nesburg who work directly under the marketing team, whose tion point of view, we carry premium brands which ensure qual-
responsibility it is to source new products for the emerging mar- ity and availability of product. Most importantly, we offer
kets and to release these products into the new channel. “With customer-focused service. We work closely with our clients to
changing demands in the market, it is imperative that we are make sure we know what their goals are, where they are finan-
able to meet the demands of our customers. We have to be able cially and where they want to be in the future. The service we
to deliver a quality product, particularly in the aftermarket, provide is personal, tailored to fit each customer. Our marketing
which also meets global emission standards,” says Fraser. initiatives are based on the requirements of our customers, and
we drive various national campaigns to support the growth in
Customer relationships are one of the keys to CI Auto’s sales.” Despite the recent economic downturn, Fraser is positive
success. “The relationships we have with our customers are for the years ahead, “The local market shall continue to be
vital,” explains Fraser. “Wherever possible, we pass on any buoyant, due to a combination of larger and younger vehicle
benefits from our manufacturing processes to our major dis- populations. The aftermarket is worth about R3,6 billion an-
tributors, and we are working hard to supply the network.” nually, based on the products that we supply. The primary con-
Adaptability is not the only thing that has made CI Auto a sideration is to access the impending market growth, ensuring
leading player in the sub-Saharan automotive aftermarket. that the operation and brands are positioned to capitalise on
Fraser elucidates, “There are a number of things that create this. There is a lot of potential in this market.”

Photo on previous page: Three Pitts Specials, representing the Gabriel Wings Aerobatic Team, provide a great metaphor
for what CI Auto stands for. To attain the perfection of synchronised flight, and to perform daring aerobatic feats,
requires the right mix. Firstly, tried and tested aeroplanes; secondly, meticulous planning and preparation; thirdly a
talented team totally in sync with each other; and finally a support structure that inspires total confidence. It is a mar-
riage of skill, science and art, which is an alchemic blend of knowing what needs to be done, with a dash of gut feel
and flair, making it all very exciting. The end result is a choreographed masterpiece. Mimicking this set-up is CI Auto,
emulating the Gabriel Wings Aerobatic Team in a real life scenario which is firmly rooted to the ground in reality.
The consolidation of various manufacturing units, distribution hubs, administrative and technical offices, and various
other bits and pieces into one centralised location and one cohesive whole in City Deep, Johannesburg, has
similarly required meticulous planning and preparation, to establish a support structure that inspires confidence, and
to allow a talented team to feed off each other as they begin to push the limits.

A stunning addition to the Gabriel Wings team

page 46
Federal-Mogul Aftermarket -
Champions of the Industry
Federal-Mogul is an innovative and diversified $7 billion global supplier of quality products, trusted premium
brands and creative solutions to the world’s automotive industry. It employs some 40 000 people in 36 countries
and regions including southern Africa.

F
rom a modest beginning in rural Michigan as a mill of T & N and Ferodo in the early 1960s, of T & N and Asseng
and engineers’ supply business (originally called the in 1988 and of Trichamp (Trico and Champion) with Cooper
Muzzy-Lyon Company after founders J Howard Industries to form Cooper Automotive.
Muzzy and Edward F Lyon) to the emerging North
American automotive industry in Detroit in 1899, Federal- As John Koen, the retired logistics director of Federal-Mogul
Mogul’s growth into a market leading supplier of quality prod- Aftermarket Southern Africa recalls, “The big challenge was
ucts, trusted brands and creative solutions to the global to harness the technologies and systems of leading brands AE
automotive industry has paralleled the rise of the importance (engine parts), Champion (spark plugs and windscreen wipers)
of the automobile in our society and has made, and continues Ferodo (brake pads) and Payen (gaskets) and meld them into
to make its own important contribution. The company’s lead- one effective aftermarket company. Frik Nel, managing
ing technologies have helped to drive the development and director of Cooper Automotive, was the first chief executive
growth of the global automotive industry and it has diversified of the new company and it is great credit to him that he and
and adapted to meet the challenges the industry has faced over the team he put together did such an effective job of utilising
the last century and more. the best of the four companies and creating a single cohesive
business.”
The acquisition in recent years of the British T & N (Turner
& Newall) and American Cooper Industries companies con- Nel moved to the United States in 2004, handing over to mar-
solidated a unique basket of premium branded products and ket research expert Malcolm Perrie who had worked with AE
market-leading technologies and resulted in the creation of for many years as a marketing consultant though his company
Federal-Mogul Aftermarket Southern Africa in 1998. The Marketing Shop.

The history of the Southern African company, headquartered Koen played no small part himself in the company’s success,
in Johannesburg, is interesting. It can trace its roots back to having started with Associated Engineering as an 18-year-old
the early 1950s and the founding of the Associated Engineer- in the 1960s and rising to CEO of AE engine parts at the time
ing Company (Asseng), later to become AE, the amalgamation of the Federal-Mogul takeover in 1998.

page 47
Federal-Mogul are manufacturers of AE, Nural, Glyco and tinues today with some of the most successful teams in North
Goetze engine products (including pistons, liners, bearings, America’s NASCAR and NHRA and in the Formula One
valves, valve guides, valve inserts and ring sets), Ferodo disc World Championship (an association that goes back to the
brake pads and linings, Champion spark plugs and ignition very early years of the F1 world championship in the 1950s),
leads, wiper blades and assemblies, National automotive lamps as well as in national championships around the world.
and Wagner sealed beams, and Payen and Goetze automotive Champion spark plugs have been used by four of the last five
gaskets and oil seals. NASCAR Cup champions, the last six NHRA Top Fuel cham-
pions and by cars that won nearly 400 F1 races – more than
There are manufacturing plants in KwaZulu Natal (bearings all other spark plug manufacturers combined.
and valves in Pinetown; brake pads in Durban), in Gauteng
(spark plugs and windscreen wipers in Isando) and in the East- Champion, working with vehicle and system manufacturers,
ern Cape (gaskets in Port Elizabeth). produced a revolutionary micro-sized spark plug that is now
used by more than half of the F1 teams. Champion’s involve-
Today each brand has its own unique history and important ment in F1 has always been, and continues to be, about pull-
place in the southern African market. Ferodo was founded in through from track to road. The technology learnt in F1 and
England in 1887 and led the development of friction materials other forms of racing finds its way into standard production
in their modern form. Today, Ferodo products are designed to Champion spark plugs.
meet or exceed motor manufacturer original equipment spec-
ifications and provide creative automotive aftermarket solu- Champion and Ferodo involvement in South African motor
tions. Ferodo is also a leader in providing superior brake sport goes back many years and current involvement includes
products to motor racing - in rallying, off-road racing and cir- sponsorship of the Champion Young Drivers programme, a
cuit racing. global initiative that helps up-and-coming youngsters to de-
velop in the sport. “This has been a very successful pro-
Ferodo has been in the forefront of motor sport for more than gramme,” says Ronnie Erasmus, motor sport manager of
80 years. In 1998, Federal-Mogul established a special team Federal-Mogul Aftermarket Southern Africa.
at the Federal-Mogul Friction facility in Mondovi, Italy, ded-
icated solely to the development, sales and marketing of new “Both our current young drivers, who are still in their teens,
racing and other high-performance car, kart and motorcycle are past ‘rookie of the year’ winners in the one-make Volkswa-
brake pads. Specialists in racing formulation, working in a gen Cup national championship and are both race winners
prototype plant, they develop new materials. Production takes and contenders for this year’s title.”
place within the plant in a specialised racing cell. All of this
allows Ferodo to remain at the forefront of innovation and ex- Devin Robertson (17) and Gennaro Bonafede (18) are joint-
pertise in motor racing. second on the points log with two rounds of the championship
remaining. They compete in identical Champion spark plugs-
Champion has been a world leader in the manufacture of sponsored VW Polos. The series is restricted to drivers below
spark plugs for every kind of combustion engine and has a the age of 28 and is an important stepping stone to the more
motor racing heritage that spans most of its 100 years. It con- senior circuit racing categories.

page 48
GRANDMARK INTERNATIONAL

The Grandmasters in Quality Auto-


motive Parts Supply
In a marketplace of more and more part brands, one thing will always remain constant in the mind of the
consumer - quality automotive parts at the best possible value. This customer need is exactly what Grandmark International
focused on 15 years ago when they opened their doors. And because of that focus on value for
customers, Grandmark International is now one of the leading distributors of replacement automotive parts and glass
products in southern Africa.

S
tarted in 1994 in Pretoria, Grandmark first began its path mark’s primary import focus was in Asia, they realised the need
to success with the wholesaling of automotive body parts to expand their geographic sourcing presence to ensure they
to the aftermarket industry. Since then, Grandmark has were getting the best products globally. Consequently, Grand-
slowly expanded its product offering in order to meet the mar- mark now sources from Asia, America, Europe and South
ket needs for high quality/high value products. Grandmark America.
now boasts an extensive parts range that covers six major auto-
motive categories – automotive body, glass, cooling products, Furthermore, the company opened up international purchasing
steering and suspension parts, engine and mechanical parts, and offices to ensure close cooperation with these overseas manu-
automotive lamps. Due to this success, they now stock over facturers. From five continents and over a hundred suppliers,
20 000 different part items. While, in the beginning, Grand- Grandmark International brings the best the world has to offer.

Body Glass Steering & Engine Lamps Cooling


Suspension & Mechanical
Bonnets Windscreens Control Arms Wheel Bearings Head Lamps Radiators
Bumpers Door Glass Ball Joints Gaskets Corner Lamps Condensors-(Aircon)
Cradles Vent Glass Tie Rod Ends CV Joints Fog Lamps Radiator Fans
Grills Rear Windscreens Rack Ends Tensioners Tail Lamps Water Pumps
Fenders Quarter Glass And more… And more… And more… And more…
Mirrors And more…
And more…

page 49
Many of Grandmark’s products and manufacturers have the above certifications/qualifications.

Branch Network Growth


With Grandmark’s early success, their branch network also
expanded. Early on, to move closer to the majority of their
customers, Grandmark moved its headquarters from Pretoria
to Johannesburg. Then, to properly service those early Preto-
ria customers, Grandmark expanded the wholesaling opera-
tion back to Pretoria and then a few years later they expanded
further to Cape Town. The reason? To provide customers
with better service and closer personal contact.

The Quality Choice


Early in its existence, Grandmark saw an opportunity in the
marketplace - many importers focused on generic parts at
the lowest cost possible. However, this often tainted the
replacement parts industry as having low quality standards.
Grandmark wanted to change this perception (hence the com-
pany name “Grand Mark”) by bringing in high quality prod-
ucts from the most advanced factories around the world –
many of which supply original equipment manufacturers
(OEMs) in their respective regions.

To ensure customer satisfaction with all Grandmark products,


all products come with a 12-month warranty against fault in
workmanship or defect in material. Furthermore, all of
Grandmark’s suppliers are not only visited by the Purchasing
Department but, personally by the Directors as well. Last,
Grandmark takes pride in offering products that have
obtained globally recognised certifications and qualifications.
Grandmark’s formula for success?
Culture is the foundation
In a world where products, services and management tech-
Only and always quality. This ethic
niques can easily be copied, Grandmark’s advantage rests in
its unique company culture. It’s a culture that emphasises cements the Grandmark value system
teamwork over the individual, fun in the workplace, respect,
trustworthiness, motivation and innovation. and applies to its products, services
The culture stems from its early entrepreneurial days where and company ethos.
everyone pitched in, had fun and worked as a team – they had
to in order to survive. Since then, however, Grandmark has
not lost focus on the importance of that early culture but in-
stead has worked to magnify it. In everything they do, they
seek to always do more for its employees, its suppliers and its
customers. It’s what they call the “Grandmark Spirit”.

page 50
Launch Tech Co Ltd
Shenzhen in Guangdong Province, China, is the fastest growing city in the world, and it was here in 1987 that
a small company named Launch began manufacturing personal computers, developing both the hardware and
software for these electronic devices, which in those days were still in its infancy, and thus Launch had to
innovate and invent most of the applications. Five years later, in 1992, with the Chinese automotive industry
starting to stir, Launch relied on their pioneering skills and electronic innovation to become the first Chinese
company to get involved in electronic engine management engineering and automotive diagnostics.

Launch Tech Co Ltd employs over 300 qualified research and development engineers at its Headquarters in Shenzhen, in an industrial
park consisting of seven identical nine floor buildings, with a total floor area of 189 000 m². Depicted here is one of these seven buildings.

L
aunch Tech Co Ltd was founded in the same year oscilloscope. With the strong international acceptance of both
and has since grown into the leading Chinese the Carlink 5000 and the ADC 2000, it was realised that for
company in automotive diagnostics and a global further growth the company would have to become a public
supplier to the automotive aftermarket, repre- company, and so in 2002 Launch Tech Co Ltd was listed on
sented by 15 companies supporting more than the Hong Kong Stock Exchange, and its future was secured,
400 distributors in 60 countries. Launch also looked to the and further development was accelerated by the establishment
future and foresaw the enormous potential of the Chinese au- of an industrial park in Shenzhen and an R&D facility in Bei-
tomotive industry, and began its annual auto electronic and jing, to concentrate on vehicle management systems.
diagnostic colloquium in Shenzhen, inviting the Chinese
OEM industry to discuss the future of engine management Launch was also diversifying, and adding workshop equip-
systems and diagnostic support, and to look at ways of com- ment and tools to its product portfolio, as it strove to become
bining talent and technology to develop improved systems. a one stop shop for automotive workshops, offering a com-
This vision has paid off, with Launch now being the specified prehensive range of quality aftermarket service equipment to
diagnostic equipment for over 90% of Chinese OEMs. the automotive and allied industries. These products include
scan tools, Creaders, wheel balancers, lifts, engine analysers,
Launch also began to look outside China in 1997, as it realised wheel aligners, tyre changers, injection cleaners, a/c service
that for it to be an international player it had to support all stations, ATF chargers, test lines, inflators, sensor
the OEM brands in both China and overseas. Thus the Car- simulators/testers, paint dryers, spray booths, collision repair
link 5000 was introduced to the world in 1997, to be followed systems, hand tools, and more, the bulk of which are manu-
by the ADC 2000 in 1999, which was both a code reader and factured at a production facility in Shanghai.

page 51
Launch Technologies SA (Pty) Ltd
Launch Technologies SA (Pty) Ltd. was registered in South Africa in 2000. Launch’s
head office is in Jet Park, Johannesburg, Gauteng, and it has a branch in Durban,
KwaZulu Natal, and distributors in Cape Town, Western Cape, and Port Elizabeth,
Eastern Cape. These distributors, together with a network of sales agents throughout
South Africa, has allowed Launch to become a major supplier of automotive after-
market service equipment to the automotive and allied industries in southern Africa.
The quality range of Launch equipment and products are fully backed-up and serviced
by in-house after-sales service teams.

L
aunch Technologies is committed to keeping its customers for life, and this philosophy
extends to offering trade-ins and upgrades at very good discounts, software upgrades,
and hands-on training that focuses on how to use the equipment. Launch also recog-
nises the need to take this training one step further, and one of the many projects it has in the pipeline is the establishment of fran-
chised quick repair shops, to facilitate further training on how to take diagnosis and trouble-shooting further, on actual repair
techniques. Launch is acutely aware of the need for workshops to have access to finance and credit for both capital requirements
and operational costs and working capital, so it is a preferred supplier to Capricorn Society Limited, a forward looking cooperative
that offers a range of innovative business assistance packages. Launch Technologies SA is also in the relatively unique position from
a global perspective in that Jackie Li, the CEO, has direct contact, and is in daily contact with Launch
Tech Co Ltd’s head office in Shenzhen. Jackie Li spends a lot of time at Launch’s head office,
and has his own office at headquarters, and his close relationship with the President allows
him to stay abreast of all the latest developments and projects, and gives him favoured
status as an international ambassador for Launch. In actual fact, he is merely a phone
call away from the President, and this special relationship translates into extra special
service for Launch’s South African customers. Therefore it is no wonder that of the
workshops in South Africa using Launch equipment, that 70% of their
requirements are met by Launch Technologies.

page 52
LAZARUS MOTOR COMPANY

The humble acorn grows into a mighty oak


“True success isn’t measured in currency, but in the trust of families and customers. It’s built on a solid foun-
dation of ethical standards and an unwavering commitment to service. It’s being the best we can be. It’s keeping
our word so that people can trust what we say and have confidence in our honesty and integrity. It’s serving
our customers in the best way possible because we sincerely care about their safety and their complete satisfaction
with their Lazarus experience.” - Colin Lazarus, managing director, Lazarus Motor Company.

T
his philosophy has stood Colin Lazarus in good Over the years Lazarus acquired a Ford dealership in Verwo-
stead in the 29 years since he took over his erdburg (later to be renamed Centurion) in 1991 and then a
father Gerry’s company, R Lazarus & Son in year later the company was awarded the Mazda franchise in
1980. The principles on which he has built the Centurion as a result of its good performance with Ford. By
business started by his grandfather in 1957 has 1996 the company had built a fine reputation for customer
seen the founder’s grandson emerge as one of South Africa’s service with its Ford and Mazda owners and was awarded the
top private motor vehicle retailers. The Lazarus Motor Com- prestigious Jaguar franchise, opening in the Pretoria suburb of
pany’s imposing modern headquarters overlooks the N1 in Hatfield.
Centurion. It is a far cry from the original Lazarus dealership
in Bronkhorstspruit, where Colin was born and raised and In 1999 Lazarus identified a piece of ground in Centurion
where you could buy a Mercedes-Benz or a DKW. next to the N1 and gathered the entire multi-franchise oper-
ation under one roof. At the same time, he was astute enough
Today’s operation is one of the biggest privately owned to realise that in order to succeed long term in the changing
dealerships in the country and, at 30 000 sq m under a single socio-economic and political environment he needed a black
roof, it is one of the biggest in the world. empowerment partner. He found just the man, successful
businessman Peter Malungani, and they have been partners
Country born and bred and educated at an Afrikaans school, for the past 10 years. Malungani bought shares in the com-
Lazarus is a no-nonsense kind of guy and is direct and some- pany, which was renamed Lazarus Motor Company. “We are
times uncomfortably honest. But above all he is a good ‘people a great fit and I have learnt so much having a black partner,”
person’. “It’s not about me, though. Our success has been built says Lazarus.
with our most important asset, the right people. I am fortu-
nate to have the ability to surround myself with good people.
Most of my 255 staff have been hand-picked by me, right
down to the drivers. They make me look good,” he asserts.
Before officially joining the business after completing his ed-
ucation, his father sent him to work at Ford Motor Company
in Port Elizabeth early in 1980, “to learn the business”. “This
was part of a two and a half-year plan to prepare myself for
joining the family business, but just as I was about to go to
the United States to work within the Ford dealer network
there, my father died suddenly and I had to return to
Bronkhorstspruit and take over the company. I was 22 years
old and found myself in the deep end.

“I learnt a lot in those early days. Every Wednesday I would


put on my overalls and spend a day in the workshop. We sold
mostly tractors in those days and also cars.”

page 53
Today, Lazarus Motor Company represents six well-respected A long association and close friendship with multiple power-
international brands: Ford, Mazda, Jaguar, Land Rover, Volvo boating and motor racing champion Peter Lindenberg has led
and, the most recent, Kia. Success did not come overnight, to a number of motor racing initiatives that have brought
but the continued achievements are built on the principles success and valuable exposure for Lazarus Motor Company.
that have guided Lazarus throughout his career.
“We like to sponsor winners and Peter has won more than his
These achievements include being honoured as Centurion fair share of championships, in water skiing as well as power-
Businessman of the Year in 2007, where he surprised the boating and motor racing. We also like to support the sporting
audience with an acceptance speech in Afrikaans. He is teams in our province and have a great relationship with the
immensely proud of the fact that Lazarus Motor Company Blue Bulls, the Titans and SuperSport United. All three are
has won the Ford and Mazda dealership of the year accolade champions. Our involvement with rugby, cricket and soccer
for the past five years (from 2004 to 2008). is also motivated by a desire to help with the development of
these sports. We provide motor cars which are used by the
“We were the first big volume dealer to achieve this distinc- teams’ talent scouts and trainers.”
tion, which is the result of the sustained excellent perform-
ances of all of my key people and the staff who work with No visit to the imposing Centurion headquarters of Lazarus
them.” Motor Company is complete without seeing the company’s
own motor museum. It currently boasts among its exhibits the
Lazarus is a great believer in well conceived marketing and ad- only Ford GT in South Africa (one of only 2 000 built to mark
vertising promotions and enters into these with enthusiastic the company’s centenary), a pristine 1969 Ford Mustang and
involvement, from his office right through the organisation. the Formula Atlantic Chevron in which Ian Scheckter won
He has a successful association with circuit motor racing and one of his six SA drivers’ championships in the 1970s.
has been a long time supporter of the annual national Total
Economy Run, where, invariably, his is the biggest entry.
In 2009 he supplied almost half of the field of 28.

“It’s all about promoting the brand and also our dealership
and we have had more than our share of success in this
regard. We find that the fuel efficiency achievements
of the cars we enter in the economy run are
of interest to our customers and we
advertise the results.”

page 54
Taking Care of our own
In the Goon Show, a radio comedy series aired in the United Kingdom in the 1950s and
key to the later fame of Spike Milligan and Peter Sellers, a pair of villains convinces the
ever-gullible Neddie Seagoon to insure the English Channel – against fire.

T
hat might be taking things to an unlikely Restricted to the motor industry and born out of the conver-
extreme but like it or not, most people protect gence of the Automed and Mimed schemes at the very
themselves against the risk of the un- beginning of 2007, it can offer a compelling portfolio
known...whether it be a fire, theft, a car accident of healthcare products to those working in all strata of the
or the vagaries of nature. We also insure our industry – from manufacturing to retail.
health: it’s called medical aid and who
can afford to be without it? Health- At the helm of Moto Health Care since its inception is Fund
care in the automotive industry is Manager Murida Khan, a savvy industry veteran who has
important and – certainly in the spent pretty much her entire working life in medical aids,
blue-collar area – there’s a fair rising through the ranks after starting as a script assessor at
amount of danger present, so Affiliated Medical Aid in the early 1980s. It would be easy to
you don’t want to leave yourself grow hardened to some of the pain and suffering that often
exposed. goes with this business but Murida seems to have tremendous
empathy for her members.
One of the big names in med-
ical cover is Moto Health Care, an “Fully half of our membership comes from low income groups
organisation which runs closed – petrol pump attendants, cleaning staff at dealerships,
schemes in the motor industry apprentice mechanics – and they rely on us to provide them
and currently has in excess with healthcare which is both affordable and effective,”
of 43 000 princi- explains Khan from her modest Randburg office. “Just because
pal members. they’re from the low income bracket doesn’t mean we should
underestimate their wants and needs...their money is precious
and they don’t want cheap!”

About a quarter of Moto Health Care’s members are on the


entry-level Essential package, with a total contribution of just
R185 per month. It is structured so that even individuals with
a low level of literacy are able to understand exactly what is
and isn’t covered. Another 25% of members use the
Custom scheme, which is a rung up the ladder. These packages
are exempt from providing the Prescribed Minimum Benefits
as laid out by the Medical Schemes Act.

The company has been able to put together these and other
high-value offering by using the membership’s collective
bargaining power, dealing directly rather than using brokers,
and also linking up with Carecross Health as a network
provider: they negotiate directly with doctors and other service
providers, thereby ensuring the best possible rates.

At the helm of Moto Health Care since its inception is Fund


Manager Murida Khan

page 55
This approach has also helped to reduce wastage and dishon- Industry, Fuel Retailers Association and NUMSA – the
est practices and because of the tight controls that are in place, National Union of Metalworkers of South Africa.
there is nothing in the market which offers what Essential does
for such a modest sum, says Khan. Members are guaranteed The administrator of the medical aid is handled by Momentum
of continued healthcare cover unlike many members out there, Medical Scheme Administrators and there are eight walk-in
who by the middle of the year are no longer able to centres around the country where members can seek assistance
access benefits. and advice. In addition, Moto Health Care has 20 service
consultants out in the field on any given day, talking to people
At the other end of the spectrum is a product called in their own language at their place of work. One of their prime
Optimum, which is able to offer real-world benefits that are objectives is to get young people to appreciate the community-
comparable with some of the more glamorous brand-name based aspect of healthcare and get them to understand that by
medical aids. Because of its diverse packages Moto Health contributing now – even when they seem to be in perfectly
Care works well across all levels of an organisation, and good health – their needs will be guaranteed later in life when
dealerships within the big retail holdings such as McCarthy, they do get sick.
Imperial and Barloworld are customers. In the past, Moto
Health Care has steered clear of some of the popular “added- “There is a great deal of empathy from the board and because
value” benefits which have become popular over the years they’re close to our members they know what people are going
(gym memberships, cinema discounts and the like) but from through in the current climate,” explains Khan. “The trustees
this year has implemented an optional Multiple Lifestyle include employers and we look at individual cases on a regular
Programme that offers a number of potential savings in these basis and in many instances provide care over and beyond
areas. what we are obliged to give. It is one of our objectives to be
as humane as possible and dialogue with our members is an
But this is a traditional medical aid and remains focused on essential part of achieving that.
providing real value and packages that are easy to understand:
there aren’t any thresholds or self-pay gaps – once the benefits “There is still scope within this industry for healthcare to be
are exhausted, that’s it, and the member will know when the made more cost-effective and one way of achieving this is
funds are about to run out. to maximise our collective strength. There are still many
motoring entities operating in isolation with their own
While Moto Health Care has seen its membership base medical aids , but if we all operate under one umbrella it
targeted by the large, unrestricted schemes (when the company increases the bargaining power, and will benefit all in the
rose from Automed and Mimed nearly three years ago it had motor industry,” says Khan.
56 000 members – though that number has also been eroded
somewhat by retrenchments) it believes it is able to offer the
industry a better deal on all levels. It also has tremendous
The motto of Moto Health Care is ‘Taking
bargaining power and places those who work in the automo- Care of Our Own’ and they look well-placed
tive field first: Moto Health Care’s board of trustees includes
representatives from organisations such as the Retail Motor to live up to that promise.

page 56
REX DIFF AND GEARBOX
Striving for Excellence
With a mission to set new standards for service and customer care, Rex Diff and Gearbox (RDG)
was established in 1992. It was the brainchild of Gayle and Rick Rex who had decided to pool their
technical and managerial skills and enter the unknown waters that represented the specialist gearbox
and differential repair segment of the auto industry.

T
oday, with Gayle at the helm in the role of
managing director and Rick in charge of the
day-to-day smooth running of the business, as
operations director, this goal has been achieved
by this hard-working, ambitious, husband-and-
wife team. From humble beginnings – working out of a small
residential garage – the two-person business expanded to the
point where, 17 years later, it employs more than 120 highly
trained staff members. RDG’s linear growth is attributed to
the high levels of service it regularly provides its customers,
says Dennis McLachlan, responsible for ArvinMeritor and
RDG’s Consumer affairs.

“RDG employs skilled technicians and staff


who are knowledgeable and experienced, with
in-depth expertise that adds value to the organi- automatic transmission repair bay and purchased a new Sun
sation,” he says. “We pride ourselves on offering diagnostic scanner which is compatible with all vehicles on
the road – even those sourced from other countries.
services performed by seasoned professionals and The company also sets the standard for a working
highly trained technicians. environment that is beneficial to staff, customers,
vehicles and equipment.
“Customer care is of utmost importance and RDG is fully
committed to the concept. It has been the platform from
which our success has been orchestrated.” The emphasis on
service is underlined by Gayle Rex. "We place our customers
on pedestals and strive for excellence in whatever we do",
she says.

Range of services
RDG offers a towing, a 24/7 emergency breakdown and other
services, as well as collections and deliveries anywhere in the
country. The company also guarantees all parts and workman-
ship and offers 30-day account facilities.

One of the secrets of the RDG service is a reduction in costs


to customers by having the ability to replace individual parts
instead of an entire gearbox or differential unit. If necessary,
some parts are imported to ensure the highest quality stan-
dards are maintained. RDG's workshop is equipped with latest
tools and machinery that boasts cutting-edge technology.
RDG recently built a state-of-the-art, controlled environment,

page 57
The emphasis is on cleanliness and order. RDG is an approved
service provider for a number of leading motor vehicle man-
ufacturers, including Isuzu, DAF, Hyundai and

Iveco Trucks. The company is also a member of the Retail


Motor Industry (RMI) Organisation and has been appointed Training is an important focus for RDG and as such we are
as an Approved Specialist Repairer by the Automobile Associ- continuously up-skilling our workers to meet the requirements
ation of South Africa. Being a member of the RMI ensures of the new generation of vehicles on the roads,” he says.
that any work performed in the RDG workshop adheres to
the RMl's strict quality standards. “Modern vehicles - including commercial vehicles – are more
complex than their predecessors. The computer technology
Quality not quantity incorporated in today’s vehicles means they are very different
from those that were in use 10 or 20 years ago.
McLachlan says RDG's philosophy is based upon quality, not
quantity. “We strive to provide an excellent product, at the “Of course these improvements can be seen from two perspec-
same time maintaining a high standard of service and tives. Yes, they have resulted in more powerful and reliable
customer care. We work together as a team of specialists and vehicles than those of previous generations, but their complex-
experts, taking pride in our workmanship and working within ity means they are significantly more difficult to repair should
world class facilities.”RDG recently took occupation of a mod- problems arise. “For example, it is no longer possible for a
ern facility in Jet Park which houses its dedicated commercial technician with basic skills to address most mechanical prob-
vehicle operation. This complements the long-standing Boks- lems on a vehicle. The complexity of systems has forced them
burg facility which has been given over in its entirety to the to specialise in specific aspects of a vehicle's operation and un-
passenger vehicle division. “We completely outgrew our Boks- derstand the role of diagnostic equipment,” adds McLachlan.
burg premises,” says McLachlan. “There simply wasn’t enough
space to service both passenger and commercial “Gearboxes and differentials are no different to engines from
vehicles, so we decided on the move which established yet this standpoint. Their systems have become increasingly
another milestone in the history of RDG.” intricate and can no longer be serviced or repaired with a few
basic tools and a rudimentary knowledge of their operation.”
In 2007, RDG was appointed an authorised agent for Arvin-
Meritor Australia, one of the largest suppliers of automotive Hand in hand with an increasing emphasis on modern
parts in the world with 150 facilities in 27 countries. The part- technology, RDG has not forgotten what has brought it
nership has resulted in RDG being able to offer a broad range success in the first place.
of integrated systems, modules and components for the light
vehicle, commercial truck and trailer and speciality OEMs and “Keeping customers satisfied remains the company's chief
related after markets. Other highlights in its history include priority as we head towards our eighteenth anniversary,”
the opening of operations in Port Elizabeth and Durban in stresses Gayle Rex. "We continue to take pride in what we do
2007. Looking to the future, McLachlan sees training as one and will always go out of our way to satisfy our customers.”
of the most important challenges facing the auto industry.
With this in mind, RDG has opened the doors to its new
training facility adjacent to its Jet Park Truck Division de-
signed to broaden the scope of the training it offers.
Boksburg: 011 823 4393 • Durban: 031 569 6869
“While it is important to run an organised and well-equipped Port Elizabeth: 041 586 3613 • Jet Park: 011 826 2722
workshop, a high-tech facility such as ours is useless unless it www.rdg.co.za
is staffed with appropriately trained specialists.

page 58
‘We Do Things Differently’
SA Warranties are specialists in the development and administration of Mechanical
Breakdown Insurance and Service and Maintenance products for the South African
motor industry.

A
s a financial services provider, SA Warranties Johannesburg. A state of the art call centre was also estab-
conforms to the provisions of the Financial Ad- lished, with all calls handled by qualified technicians. Satellite
visory and Intermediary Services Act of 2002. branches were established in Cape Town, Port Elizabeth, Dur-
All mechanical breakdown insurance warranties ban and Bloemfontein, thus ensuring national representation.
comply with all statutory requirements in terms
of the appropriate legislation of the Republic of South Africa. The management team at SA Warranties realised at a very early
Although SA Warranties was founded only 7 years ago, stage that a key ingredient in today’s service industry is the
(in 2002) the roots of SA Warranties go back to 1978, when ability to offer consistent and professional service to every
Mechanical Breakdown Insurance (MBI) was founded. MBI caller, from individual policy holders through to motor repair-
became the first South African company to offer an insurance- ing and selling dealers, as well as group enquiries. With a team
based warranty, underwritten by SA Eagle. Today SA of highly motivated, well qualified and trained agents, SA
Warranties is underwritten by Regent Insurance Company. Warranties are able to offer world class service via its Call Cen-
Prior to this all mechanical breakdown warranties were based tre (Call: 0860WARRANTY).
on STP, Molyslip and Wynn’s additives, which provided a
measure of mechanical protection. Besides consistently achieving its objective in terms of service
delivery, the company has an ongoing training and mentoring
After negotiations with the late Bill Lynch, past CEO of Im- programme across all its divisions.
perial Holdings, SA Warranties commenced administration of
the Imperial Group’s used car warranty programme, including Since entering the market with used vehicle warranty pro-
various independent vehicle dealers across the country, many grammes, SA Warranties expanded its extensive product range
of whom moved from MBI to the new company. SA War- to include “customised” New and Used vehicle Warranties,
ranties’ client base and product offering was aggressively and Full Maintenance and Service plans (SA DrivePlan Main-
expanded, and today has an impressive list of clients including tenance Plan and SA DrivePlan Service Plan) for the industry
leading financial institutions, motor dealer groups and vehicle and private clients. Warranty cover is also available for the
manufacturers. Amongst SA Warranties client base are: Absa, leisure industry (quads, boats and caravans) and the commer-
MFC, WesBank, IEMAS, Combined Motor Holdings, Super- cial vehicle industry (trucks and yellow goods).
group, Imperial Holdings, Associated Motor Holdings, East-
vaal Motors, Nissan SA, Volkswagen SA, Kawasaki SA. Full maintenance and service plans are handled by SA Vehicle
Maintenance, a subsidiary of SA Warranties, specialising in
Whith demand for its services was increasing by leaps and the development and administration of automotive service and
bounds, additional space was needed. In October 2005 SA maintenance plans for vehicle manufacturers, financial insti-
Warranties moved offices to its present location in Bruma, tutions, insurance brokers, independent dealerships and large

page 59
dealer groups. SA Vehicle Maintenance, covers a wide range SA Warranties also offer unlimited cover on new vehicles, an
of vehicles and offers customised products to suit the needs of “upgrade” option on a warranty, day-one cover, and a three-
the motorist. The company’s leading range of service and year/100 000km warranty on pre-owned vehicles.
maintenance products are designed to give the customer com-
plete peace of mind and the best protection available. One of the most successful innovations was launched in
September 2006 when SA Warranties’ announced its “Bumper
Another popular product is the SA Warranties Drive Care to Bumper cover” warranty, which offers 100% cover on wear
Roadside Assistance membership plan, which ensures that and tear items. This innovation not only changed the face of
motorists are not stranded in the event of a breakdown or the warranty industry in South Africa, but has since become
accident. Members’ vehicles are towed to the closest repairing the most popular and sought-after warranty in the country.
dealer should the vehicle break down or if they are involved
in an accident. This programme offers many benefits The founders of SA Warranties’ founders, Bender Davis and
including, the supply of fuel if a member is left stranded. Miron Milner, grew the company from as small base in 2002
to one of the leading suppliers of warranties in South Africa
The SA Warranties team has been responsible for an today. John Tager, the new Managing Director took over this
impressive list of “firsts” in the warranty industry. These proud heritage from the founding members early in 2009.
include the first: -
Andries Labuschagne, General Manager of Marketing and
• Insurance-based warranty in the country Product Development at SA Warranties, says, “Our products
• Warranty with parts and labour cover from day one have been specially developed and offer our clients reliable
support and peace of mind. Our industry-leading experience,
• Warranty to cover parts not running in oil, e.g. brakes and solid track record, state-of-the-art systems and use of technol-
electrical components ogy, has allowed us to offer our clients the very best Mechan-
• Drive train warranty ical Breakdown Insurance, including Service and Maintenance
plans for their assets.”

page 60
Toyota continues to lead the way
Toyota South Africa is as much about contributing to the world we
live in as it is about making and selling cars.

T
here are three words that underline Toyota’s success With it’s bold attention grabbing presence at one of the South-
in South Africa for more than 40 years: quality, ern Hemisphere’s premier automotive shows, Auto Africa 2004,
durability and reliability. Maintaining leadership in Toyota asserted its leadership position unequivocally – and
a market as volatile as that of selling motor vehicles drove the point home with the unveiling of the new slogan,
is a major challenge for any company as sales success tends to ‘Lead the Way’. It also unveiled new hybrid technology with the
be cyclical. It is therefore unusual for one company to maintain Toyota Prius at the time of launching the new slogan.
a leadership position for a period as long as 29 years, which Toy-
ota South Africa has achieved to date. Japanese manufactured Manufacturing
automotive products were not always perceived as vehicles of
Toyota manufacturing operations in South Africa date back to
choice, but this gradually changed when the great post-war
1966 when the first Corona sedan rolled off the assembly line
Japanese turnaround started. In the late 1950s, Toyota began
in a shared facility based in Natal. Manufacturing operations
adopting new sales methods. In the spirit of innovation, Japan's
moved to the current location in Prospecton in 1972 with the
Toyota Motor Sales Company began to emphasise "scientific
establishment of the Motor Assemblies production facility. In
marketing" over older methods, and set up a research office in
1979, Toyota SA became the sole owner of Motor Assemblies.
1956, shifting focus to demand-forecasting techniques and
Toyota SA has been the subject of a multi-billion rand invest-
preparing marketing plans accordingly. In South Africa, tradi-
ment programme over the past five years. The first phase of the
tional lines of supply were restricted in the 1950s and early
investment programme was gearing up to produce the Hilux as
1960s as Europe and the US recovered from the devastation of
the first true high volume export model for Toyota South Africa.
World War II. In 1960 Toyota Motor Corporation was still a
This phase saw R2,4-billion invested in new facilities. The in-
modest undertaking with a total production of 200 000 vehi-
troduction of the new Corolla required that the Prospecton fa-
cles; whilst General Motors was making 3.5-million units a year.
cility be expanded to enable a volume capacity of 220 000 units
It was at this point that Dr Albert Wessels looked towards the
per annum working on a two shift basis.
East as a possible source of more affordable vehicles for the local
market.

The attributes of quality, reliability and durability (QDR) were


mostly restricted to more luxurious and expensive cars and did
not apply to affordable marques. The slogan, ‘Everything Keeps
Going Right, Toyota’ which was introduced by Toyota South
Africa in 1973, together with its distinctive jingle became an
institution in South Africa. When people think of Toyota prod-
ucts, they usually think of a product that lasts forever. That is
exactly what Toyota set out to do. Toyota’s reputation and quest
for continuous improvement in everything they , so accurately
encapsulated in ‘Everything Keeps Going Right’, changed all
the perceptions and built customer trust and loyalty. It focused
the company’s employees and dealers, it guided the company’s
decisions and actions, and was an important ‘driver’ in taking
Toyota South Africa to market leadership in 1980 – a position
it continues to hold to this day. It was the perfect slogan for the
company, and for the time. However, new innovation, added
excitement, superior technological advancement and a reputa-
tion for good corporate citizenship called for change. Dr Johan van Zyl: CEO and President of Toyota South Africa

page 61
Toyota SA has been the subject of a multi-billion rand investment programme over the past five years

Looking ahead Today Toyota SA’s focus is on developing a company that is


globally competitive on all fronts, through a vision based on
With 29 years of consecutive market leadership, Toyota SA’s fu- three pillars. These pillars include continued domestic market
ture plans hold exciting developments and growth within the leadership; being a reliable supplier of quality products to the
realms of vehicle production and sales on both the domestic and Toyota global supply network; and being a profitable operation
export markets. When Toyota Motor Corporation doubled that is able to fund future growth.
ownership in Toyota SA in 2002, a multi-billion rand invest-
ment programme started. The motivation behind this large scale Toyota continuously seeks out ways to improve systems and
investment has been the transformation of Toyota SA into a state-of-the-art technology to deliver the highest possible level
fully fledged regional production base that is fully assimilated of quality vehicles to their customers. But, perhaps even more
into the Toyota Motor Corporation global supply network and importantly, vehicles that are built and designed to have an
equipped to produce vehicles to the highest global quality stan- emotional connection and a long-term relationship with their
dards. Toyota SA proudly ranks among the top ten international customers, and vehicles that continue to deliver on the promise
distributors. of quality.

Toyota’s Guiding Principles


• Honour the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good
corporate citizen of the world.
• Respect the culture and customs of every nation and contribute to economic and social development through corporate
activities in the communities.
• Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our
activities.
• Create and develop advanced technologies and provide outstanding products and services that fulfil the needs of customers
worldwide.
• Foster a corporate culture that enhances individual creativity and teamwork value, while honouring mutual trust and respect
between labour and management.
• Pursue growth in harmony with the global community through innovative management.

Toyota’s new Hilux, the top selling


vehicle in SA in 2008, was first
introduced in October 1969,
making it 40 years 'young'
this year.

page 62
Progress over half a century
Volkswagen of South Africa has grown from strength to strength since establishing its roots in the industrial town
of Uitenhage, just outside Port Elizabeth, in 1951. The Company remains a key player in the motor industry
not only in the region, but the rest of South Africa and even worldwide. Since its inception, Volkswagen of South
Africa has amassed several accolades locally and internationally, thus ensuring its business confidence in the town
of Uitenhage and the Eastern Cape region. This commitment is exemplified by continued investment in its
operations by the VW Group - to the benefit of communities living in Uitenhage and surrounding areas.

Then....

1958 – South African Motor Assemblers and Distributors Limited (Assemblers of Studebaker and Volkswagen)

Overview of Volkswagen of The highly sophisticated vehicles assembled in Uitenhage


South Africa contain components sourced from around the world, but in-
creasingly, from local suppliers. Volkswagen of South Africa has
Production of Volkswagens in South Africa began in 1951 when a commitment to developing the South African component
the first Beetle rolled off the assembly line in Uitenhage. In manufacturing industry and is actively helping local suppliers
1956, the Volkswagen Group bought a controlling interest in develop relationships with its German counterparts and others
the South African company, making it part of its global supply worldwide - thus ensuring necessary skills and technical
network. Volkswagen of South Africa has come a long way since transfers. Volkswagen of South Africa’s dealer network has put
that first Beetle saw the light of day on August 31, 1951. Flexing its weight behind the Company by continually investing
its not inconsiderable capacity and manufacturing skills, it is millions of rands in upgrades to showrooms, service workshop
one of the biggest exporters of vehicles from the African conti- technology and the development of people skills. In return, the
nent. Allied to this is the fact that it was also the top selling car Company continues to provide them with comprehensive
manufacturer in South Africa for much of the 1990s and into passenger and commercial vehicle ranges to meet the mobility
the new millennium – evidence that Volkswagen of South Africa needs of South African consumers.
has grasped the challenges of the global marketplace. This has
been achieved through an aggressive and focused drive to ensure The Company’s commitment to the self-development of its em-
integration into the international Volkswagen Group supply ployees has also earned it several awards, among them the in-
network and an uncompromising approach to quality. ternational standard, Investors in People.

page 63
Volkswagen of South Africa providing knowledge and skills to its employees across four key
today areas: theoretical classroom based training, standardised
work/line simulation, e-learning modules and practical on the
Volkswagen of South Africa is investing over R3-billion in new job training.
plant, new technologies, new products, and the training and de-
velopment of its people. The investment is expected to further Volkswagen of South Africa’s investment into new plant, new
increase Volkswagen of South Africa’s competitiveness in the do- technology, new products and the training and development
mestic and global manufacturing arena, enabling the Company of its people is reaping rewards. It has ensured the Company’s
to capture more growth opportunities on both fronts. competitiveness in both the domestic and global manufacturing
The most significant change which has taken place is the re- fields, enabling it to capture more growth opportunities in both
vamping of the Company’s Uitenhage based manufacturing markets and thereby securing the future of Volkswagen of South

and Now

2008 – VWSA today. Who knows how this picture will have changed another 50 years down the line?

plant, in preparation for the introduction of future models. This Africa, its Dealer Network, Suppliers and all employees involved
revamp includes the introduction of new production technology in this vast manufacturing and marketing chain.
in the body shop and vehicle assembly operations, as well as a
new engine manufacturing line to supply both domestic and
export markets.

New power and air supplies are other significant improvements,


as is a new automated wheel assembly facility which allows for
wheels to be fitted every 17 seconds. Volkswagen of South Africa
is also in the process of refurbishing its engine plant to a world-
class standard. With an investment value of R500-million, the
equipment is comparable to any installation of its kind in
Europe and within the Volkswagen Group.

The training and development of its people is also key to the


Company. Three new Training Academies strategically located
within or near production have dedicated training teams

page 64
Automotive Aftermarket Manufacturers Association
AAMA can be traced back to 1986, when the Partinform Component Manufacturers Association was conceived,
and in the words of Paul Williams, who served as Chairman from 1994 to 1998, it “was a creation of good
comradeship and the mutual sharing of costs for trade evenings”. Malcolm Perrie, the first Chairman of AAMA,
was more forthright when he announced the formation of AAMA in November 2008, stating that they had
“formalised the old boy’s tea club known as Partinform into a properly constituted and registered association.”

A
AMA came about because the specific needs of the au- inward and outward logistics; customs management, and
tomotive aftermarket were not been met by bodies such the need to lobby strongly on commodity prices.
as NAACAM and the RMI, and the Partinform plat-
At its formative stage, AAMA consisted of thirteen founding
form was there to be built upon, and AAMA brought South
members, all who had been accepted on their credentials as
Africa more into line with international trends and practices.
being existing Partinform members. For future members, the
Malcolm Perrie, Managing Director of Federal-Mogul After-
process is more structured, with an application form to be com-
market, the first Chairman of AAMA, said after the formation
pleted by aspiring members. The entry requirements stipulate
of AAMA in November 2008 that the formalisation of Partin-
that members must be local manufacturers whose route to mar-
form into a far more powerful institution was a necessity,
ket is through the traditional channels, and not via vertically
“NAACAM is primarily an OEM focused body, whereas the
integrated distribution. AAMA now stands at sixteen members,
RMI is a retailed focused organisation. Both do a good job in
with three new members having joined early in 2009.
their respective areas of expertise and focus, and the AAMA
members intend to continue to leverage off the strengths of
these important bodies, but in many cases the specific interests
of aftermarket manufacturers are not being catered for.” To this
end, he added, AAMA did not intend to duplicate what NAA-
CAM and the RMI do, but rather to focus on what they do
not do, or do not do well. Thus AAMA intended to comple-
ment the offerings of these bodies, and to service the unique
interests of the aftermarket manufacturers in four specific areas:
1. Strategic Input: A focus on government lobbying and the
presenting of a united front, for the good of the local after-
market industry.
2. Training Support: The establishment of a training academy
to serve the interests of the local aftermarket industry, The inaugural AAMA Executive: Malcolm Perrie, chairman;
spreading the training net as wide as possible, whilst pooling Murray Long; Norman Bull; Colin Murphy, Partinform chair-
man. AAMA held its first meeting on 21st January 2009.
resources to create training teams that deliver cost effec-
tively.
3. Partinform: The venerable Partinform format continues,
promoting local brands and passing on the vital message of
quality and safety to all corners of the country via the tried
and tested mini-trade show formula – getting face to face
with the end users and retail shop employees in the rural
areas and emerging markets. A focus on educating the in-
dustry on the different quality levels of life and limb parts,
and the how, why and what behind parts availability and
technical support, will play an increasingly important part
of Partinform. The Partinform format is a mixture of glitz, glamour, info-
4. Supply Chain Sustainability: A huge opportunity exists in tainment, one on one interaction and networking. A formula
the area of supply chain management and improvement, via that works well. In 2009 Partinform introduced the chance to
a combined approach to areas of common interest. There win a Forza Racing Ferrari Track Experience, and this created
is tremendous wastage in supply chain costs in many areas: a new dynamic for the attendees.

page 65
Promoting World Class Competencies
During September 1997 key stakeholders in the South African automotive industry got together to map out the future.
With the impending demise of the Motor Industry Development Programme (MIDP) in 2002 (subsequently revisited,
revised and extended to 2012, and reincarnated as the Automotive Production and Development Programme (APDP) in
2008), it was decided that South Africa should enter into the big league of automotive exports, which would require fun-
damental changes in manufacturing methodologies and mindsets. A detailed study by the CSIR and the Fraunhofer Society
in Germany pointed to the requirement of an Engineering Centre of Excellence. Industry, labour and government concurred,
and this led to the establishment of the Automotive Industry Development Centre (AIDC) in October 2000, with the
vision “to contribute to the establishment of a viable South Africa automotive industry that is competitive both domestically
and globally, and which is capable of achieving continuous growth and sustainable job creation.”

T
he AIDC works in partnership While no new assembly plants have
with business, government, and been set up in the last ten years, the
other involved organisations to growing and sustained interest from a
invigorate competitiveness improve- number of foreign vehicle assemblers
ment within the automotive industry, interested in setting up new operations
and its services include supplier devel- in South Africa continues. Confidence
opment, logistical services, design, en- in South Africa has also received a
gineering, testing services, human major boost with the relatively recent
resource development, and government announcements of export programmes.
support programmes. The founding The introduction of new brands, pre-
shareholders were the CSIR and Blue dominantly from India and China, has
IQ Investment Holdings. Barlow Mani- had South African consumers benefit-
lal, managing director of the AIDC ing from a model spread of over 1 000
since 2008, says that the initiatives im- derivatives. South Africa has also estab-
plemented by the AIDC over the past lished itself as a centre of growth in
nine years have borne fruit in many Africa and is on target to become an in-
ways, but the biggest achievement is creasingly important part of the global
mostly unseen and difficult to quantify, automotive industry. South Africa’s track
but without a doubt the AIDC has al- record as a manufacturer and supplier of local automotive industry. The AIDC’s
lowed the South African automotive in- vehicles and automotive components has role as an industry support centre has
dustry to weather the very difficult been firmly established over recent years. progressed well over the past nine years
times over the 2008/2009 period, and The economic crisis will ease in 2010 with the brand realising greater market
to soften the blow. and improve beyond that, and when awareness and positive sentiment,
normal business resumes, importance of despite operating from a relatively well
synergy and collaboration will be more established profile. Thus, future activi-
important than ever.” ties fall within the following key areas:

Strategic Focus • Supply Chain Development - Moving


of the AIDC the INDUSTRY towards global com-
petitiveness
Since a strategic review in 2004 the
AIDC has focused its activities on • Supplier Development - Moving the
three key areas, namely Supply Chain ENTERPRISE towards global com-
Development, Supplier Development petitiveness
and Skills Development and Training.
The AIDC’s strategic focus has been • Skills Development and Training -
aligned on those issues most critically Moving PEOPLE towards global
affecting the competitiveness of the competitiveness.

page 66
Achieving Maximum Productivity
Swedish multinational, Atlas Copco, has a long history in the southern African region and is today a leading
player in numerous industries, including the automotive aftermarket.

A
ccording to Philip Herselman, Business dustry in South Africa which operates predominantly with
Manager of the Industrial Air Division of ‘technical’ oil-free compressed air in which filters are used to
Atlas Copco, the company’s products and remove oil in the air lines originating from oil injected screw
services are designed to assist its customers to compressors. Once the differences between these standard ISO
achieve maximum productivity. “This has 8573-1 Class 1 filters and Atlas Copco’s Class Zero technology
been an Atlas Copco philosophy since its were explained, it was an easy decision for Porsche Centre
establishment,” he says, explaining that the company has its South Africa to install the system - especially when taking into
roots in the 1947 association between Delfos Limited and account the risk of oil contamination, particularly in the del-
Atlas Diesel which evolved into Delfos & Atlas Copco (Pty) icate spray paint processes.
Ltd in 1956. The name 'Copco' is derived from Compagnie
Pneumatique Commerciale, being the name of a Belgian sub- At Porsche Centre an Atlas Copco ZT 50 ID VSD Oil Free
sidiary. When Atlas Copco purchased the remaining shares in compressor with a piping ring main consisting of Atlas
Delfos, the company's name changed to Atlas Copco SA. Copco's AirNet throughout supplies oil-free compressed air
to the entire facility. An Atlas Copco GN 7.2 dual output
Today Atlas Copco enjoys international recognition as a mar- nitrogen compressor supplies nitrogen for tyre installation in
ket leader and specialist in the design, manufacture and supply the wheel fitment bay. This is the first local AirNet piping in-
of clean, tailor-made compressed air systems for various ap- stallation and a breakthrough for Atlas Copco South Africa.
plications. “Our objective is remain ‘first in mind – first in Being appointed sole supplier of clean compressed air for this
choice’ with all our customers and we believe that our combi- prestigious project once again affirms Atlas Copco's values of
nation of product excellence and dedicated staff assist us in interaction with customers, product innovation and commit-
achieving this goal,” says Herselman. The company’s relation- ment to service excellence which the company has adhered to
ship with Porsche Centre South Africa clearly illustrates the over the years.
success of its philosophy. Atlas Copco was selected as the sole
supplier of 100% clean, compressed air and nitrogen equip- “In meeting all our customer's requirements, we supplied a
ment at Porsche Centre’s new home which incorporates sales, unique, tailor-made solution to realise the high expectations
service, body repairs, rebuilds and PD under one roof. It also and standards demanded by Porsche in Germany. We’ve also
boasts 40 service bays, two wheel fitment bays, two spray given Porsche Centre South Africa a firm undertaking to
booths, a PDI centre as well as a training centre. The new maintain and develop this partnership by meeting and even
Porsche premises is one of only a few facilities utilising 100% exceeding every expectation for after-sales and service
oil-free compressed air technology, unlike the body repair in- support,” adds Herselman.

page 67
Thermal Management Comes of Age
If a modern internal combustion engine has one arch-enemy, it is heat and in a country as hot and dusty as ours,
thermal management systems have not only ‘kept the wheels rolling’ but have become a standard fitment to new
vehicles. South Africa has a proud history of thermal management system development stretching back over six
decades, a legacy that has given birth to a truly exceptional partnership between local radiator specialists, Silverton
Radiators, and the global leaders in automotive climate control, Behr Hella.

Through the decades of their worldwide network. These respectively produce


copper and aluminium radiators, air conditioning components
Both Behr and Hella are world-renowned companies and both and exhaust gas reticulators (EGR) primarily for the Original
have over 100 years of experience as system partners of the in- Equipment and Export markets. Behr Service South Africa
ternational automotive industry. Providing a wide range of was established to service the independent aftermarket and act
thermal management systems, air conditioning components as franchisor to the franchised network of Silverton Radiators.
and electronic products for many of the major vehicle manu- As part of a world-wide joint venture with HELLA KGaA
facturers and the automotive aftermarket, both companies Hueck & Co. (Lippstad, Germany), the company became
have been key players in the South African automotive indus- Behr Hella Service South Africa in 2007. Behr Engine Cool-
try for several decades. Silverton Radiators shares much in com- ing’s Pretoria factory includes a special aftermarket facility,
mon with its German partners and although it is now a set up to produce short-run, non-current products on a rapid
franchise consisting of 124 automotive cooling system specialist response basis to meet the aftermarket need for nation-wide
repair and supply outlets throughout Southern Africa, the replacement parts. Distribution takes place through 6 ware-
company originated as the aftermarket division of Silverton houses located in the major centres which service a network
Engineering, a manufacturer of copper / brass radiators, of 124 Silverton Radiators franchised repair shops throughout
established in 1949 in Silverton, Pretoria. During the mid South Africa and its neighbours.
1960’s the Company opened a number of radiator workshops
to service the repair trade. These grew to 46 branches coun- Into the future
trywide. By 1970 the aftermarket operation had grown into a
Behr Hella Service now also has 41 service partners and
substantial business and a separate company with its own
distributes a range of aftermarket automotive air conditioning
management was established under the name Silverton
components including refrigerants and lubricants. The com-
Services. In 1980 the company commenced converting its
bination of home-grown engineering talent and German
branches into individually owned franchises under the
technological innovation puts Behr Hella Services and Silver-
Silverton Radiator banner.
ton Radiators in a unique position to service the local
Across the millennia aftermarket with the widest range of radiators, cores,
condensers and air conditioning components which fully
In 1999 BEHR GmbH (Stuttgart, Germany) bought Silverton comply with international Original Equipment standards set
Engineering and Silverton Services along with two other by vehicle manufacturers. Consumers can now travel with
companies (formerly FHE Technologies & Connoisseur Air confidence knowing they have the world’s best automotive
Conditioning), changing all of these into Behr facilities as part cooling system specialists just around the corner.

page 68
The Power of Three
BRAKE HOSE & COMPONENT SUPPLIES
The Company started from humble beginnings in 1990 with the purchase of a small
company assembling brake hoses for the automotive aftermarket in Pretoria.

I n 1992 CEF in Italy granted the company sole distribution rights for its products in southern
Africa. The development of a unique crimping system conforming to international standards
and the appointment of small, specialised and well trained distributors throughout SA led to an
enormous growth for the company. Having developed a focus on niche brake products Quick
Brake in Denmark was approached in 1994 to appoint the company as it’s distributor for spe-
cialised small brake products including brake springs, fitment kits, bleed screws, copper nickel
brake tube and brake wear sensors. In order to better understand the market it operated in and
ensure that it complied with local legislation BHCS joined the RMI in the mid 1990’s and has been an active member ever since,
making full use of the benefits this organisation has on offer.The company now has over 420 stockists throughout southern Africa,
supplying Automotive aftermarket retail and wholesale outlets, brake repair centres and original equipment manufacturers.
MANIFATTURA GOMMA FINNORD SPA
MANUFACTURER OF CEF BRAKE HOSES
The origins of the company date back to the early years of the post world war II period, when
rubber moulded parts and rubber hoses were produced in a tiny factory in Milan. In 1955,
hose production focused on brake hoses and grease hoses sold in bulk form to hose assemblers.
In 1964 the company moved into production of complete brake hose assemblies and now pro-
duces flexible hydraulic hoses in reinforced rubber and PTFE Stainless Steel, suitable for brakes,
clutches and gear boxes. From the 80s onward the company has maintained a steady growth
pace through some important achievements, supplying products to countries around the globe,
in 1987 it landed its first OEM contract. MGF now entertains long lasting business relation-
ships with vehicle manufacturers and system/module suppliers such as Ford, Iveco, Yamaha,
Piaggio, Valeo, Bosch, TI Automotive, Brembo, LUK and Magneti Marelli. The company has
projecting capabilities, an R&D Team, internal laboratories, is TUV and AMECA accredited
and is ISO 16949 certified. MGF is reorganising its entire organisational structure with the
aim to go global and will be opening operations in a number of countries in the near future.

OJD QUICK BRAKE APS

H aving a background in trading with semi-finished products in steel and non-ferrous metals, Mr Otto Johs Detlefs (OJD)
founded the company OJD Trading on the 30th October 1971. The idea was to become a sub-supplier to the Danish
industry of semi-manufactured products (part components in steel and non-ferrous metals ready for assembly). Parallel with
building the company as a sub-supplier to the industry, brake and clutch companies in Denmark were approached with the
intent of selling copper tubes in boxes. This is why the brand name is Quick. These were coiled in the cellar of his parents, Curt
and Minna Detlefs house near Copenhagen. This was the beginning of the Quick Brake Department. Through out the years
OJD Quick Brake became a leading supplier to the global automotive braking aftermarket and OES with brake parts for passenger
cars and light commercial vehicles and trades with niche brake component products for the automotive aftermarket. OJD Quick
Brake has a complete range of automotive brake parts and accessory kits, brake tubes and brake pad wear sensors.

page 69
Life Begins at 40
From humble beginnings originating in Rhodesia in 1969, Caelex turned 40 years
young in 2009, and what a journey it’s been!

I
n the same year that Neil Armstrong planted a USA renaming of Chris Auto Electrical to CAELEX. The company
flag on the moon, Chris & Susan Gregoriou estab- continued to apply the highest standards and to implement
lished Chris Auto Electrical with only 100 Rhodesian stringent Quality Controls and to initiate improvements, such
Pounds. In 1972 Johann de Bruyne joined Chris Auto as adopting the Electrolog numbering system to simplify
Electrical as an apprentice. In 1976 the Gregorious communication between sellers and buyers of CAELEX Auto
established Chris Auto Electrical in Pretoria, South Africa, and Electrical products. Innovations continued apace, such as the
in 1984 Johann moved to Pretoria as Partner and Managing release in 2005 of the ground breaking RT5551 new genera-
Director. 1985 saw Chris Auto Electrical become the first tion Voltage Regulator tester, the PSSD2005 Pole Shoe Screw-
company in South Africa to recondition starter motor bendix driver Kits, the PCM / computer friendly litebuddy circuit
drives. The company grew apace and in 1991 Chris Auto tester. Caelex was continually looking for ways to improve
moved to its present location in which is housed; a Starter/ customer relations and at the end of 2005 they became a
Alternator rebuild workshop, Bendix rebuilding section, a Capricorn Preferred Supplier. In 2006, CAELEX hosted the
large rewind department which encompasses machine and very first Auto Electrical Technology evening, which has
welding sections, Diagnostic Workshops, a comprehensively grown to become the WATS Show that is hosted in two major
stocked Auto Electrical Store, Counter Sales Area and Work- centres of South Africa every year. CAELEX established the
shop Reception. In 1993 Chris Auto Electrical was rated as Kigima Auto Electrical Training Centre in 2007 and in 2008
the largest Auto Electrical Company in South Africa and the started carrying out Pre-Trade & Advanced Auto Electrical
only Auto Electrical Company to do all aspects of Auto Courses that includes Diagnostic Scanning & Gas Analysis.
Electrical related work under one roof. To celebrate forty years of quality products and committed
service to the auto electrical industry in southern Africa,
1995 saw further growth, with the establishment of a branch Caelex released in 2009 the very first comprehensive online
in Witbank, and the relocation of the Marjon Rewind factory Auto Electrical Catalogue & Quotation and Ordering System.
from Bronkhorstspruit to Pretoria West. 1995 also saw the

page 70
Tri-Nation
Alliance
Capricorn Society Limited is one of the
largest automotive buying groups in the
Southern Hemisphere, established as a
co-operative in Australia in 1975 by
12 service station proprietors. The com-
pany has now grown to over 12 000
member businesses in three countries:
Australia, New Zealand and since 2000
the Republic of South Africa.

T
he 12 000 member businesses, estimated to provides members access to finance products and is a licensed
employ over 38 000 people, serviced and finance broker in its own right.
repaired over 14 million vehicles using almost
R6 billion of products from around 1 300 top The ‘member helping member’ concept of all co-operatives
name suppliers. Capricorn has a Board of has meant that the Capricorn model has had to face some
Directors comprising of six member elected member Directors tough times over the years, as it counts on its members paying
from six different geographic zones and two non-member their bills on time. Members who fall behind on payments
directors. In 2006 Capricorn converted from a co-operative drains the reserves and burden the members doing the right
business under various legislation, to an Australian corpora- thing, so all member accounts are closely monitored. Capri-
tion to allow it to expand its products and services to include corn has built up a strong balance sheet with cash, property
some which would not have been possible under the previous and share portfolio assets now over AU$130 million (R900
structure. Although it changed its corporate structure the new million) to secure its future. It has 140 staff in three countries
Constitution has enshrined the seven principles of cooperation with 35% of those in the field, meeting members and suppli-
as per the ICA (International Co-operatives Alliance) within ers daily to ensure best practice and personal service.
the statutes of the corporation that is now Capricorn Society
Limited. In 2003 Capricorn established Capricorn Mutual The preferred suppliers list to Capricorn reads like a ‘who’s
Limited to provide its members with protection for their busi- who’ of the automotive parts industry as leading companies
ness assets (the Mutual provides protection as an alternative recognise the value of being able to underpin their business
to traditional insurance products). with a large cross-section of their accounts with a guaranteed
payment direct to their bank account from Capricorn. Names
For the first five years the management of this business was like Valvoline, AutoZone, Castrol, First National Battery, and
undertaken by a third party specialist provider. In May 2008 Trentyre plus the local dealerships for all new vehicle fran-
Capricorn brought the management of Capricorn Mutual in chises and hundreds of smaller specialist suppliers make up an
house with the establishment of a new entity called Capricorn enthusiastic group of parts suppliers who work with Capricorn
Mutual Management Pty Ltd. At the same time it also estab- to offers its members great value and great service . . . the key
lished Capricorn Society Financial Services Pty Ltd which has reason Capricorn overall sales numbers have continued to
a joint-venture with UK based Regis Mutual Management grow at 10%+ every year for the past number of years.
Ltd. This joint venture entity, Regis & Partners Pty Ltd, was
developed to manage Mutual entities on behalf of other Member purchases in 2008-2009 were AU$851.5M
industry groups. Capricorn Society Financial Services Pty Ltd, (R5,961M) and it distributed AU$11.1M (R78M) of profits
which is expected to grow substantially over the coming years, to members through either reward points or a dividend.

page 71
Castor Oil Started the Castrol
Success Story
The Castrol name is derived from its original base component – castor oil – with production
of this new lubricant having started in 1909.

C
harles Wakefield, the Johannesburg, Durban and Cape Town
founder of Castrol, laun- and spread to Rhodesia (now Zim-
ched the company from babwe) in 1939.
three small rooms on the
third floor of 27 Cannon Street, in the During the period of the Second World
heart of London and it was there, on War, from 1939 to 1945, the first local
Thursday, March 9, 1899 that the firm 1917 blending plant was established. In 1945
of CC Wakefield & Co opened its a branch was opened in Port Elizabeth.
doors. The Castrol product name was In 1951 Wakefield Deusol engine oils
introduced in 1909, together with the for diesel engines were introduced in
distinctive red, green and white colour South Africa. A new blending plant was
scheme that continues to this day. established at Island View Works in
Durban in 1958. Castrol products are
Charles Wakefield worked with pioneer- still blended in Durban, but it is now
ing motorists and aviators in his bid to carried out by a service provider,
produce the world’s highest quality lu- Blendcor.
1929
bricating oils – and then to improve
them. It was natural that Castrol was the In 1960 the company changed its name
oil of choice for breaking world speed to Castrol South Africa. Castrol was ac-
and endurance records. The Land Speed quired by the British petroleum com-
Record alone has been broken an amaz- pany, Burmah in 1966 and the company
ing 21 times by cars using Castrol lubri- was renamed Burmah-Castrol.
cants. Wakefield was a pioneer in
marketing and his strategy of advertising 1972 also saw the first running of the
1948 1958
his products’ record-breaking and race- Castrol Rally, destined to become the
winning feats put the Castrol name on most famous rally in South Africa. In
the map around the world. 1974 the company’s head office moved
from Isando to Parktown in Johannes-
The company continues to use motor burg. That same year Castrol acquired
sport and record-breaking to promote Durol Oil, a used oil refining company.
the Castrol brand. Many lubricants
started out as special developments for 1968 1992
This company was taken over by BP
motor sport before being made available Amoco (now renamed BP) in 2000 and
to everyday motorists. The most famous Castrol branded lubricants continue to
of these products is GTX, although the be sold around the world and in many
unique smell of castor oil based Castrol countries it is the market leader. The
“R” was synonymous with motor racing business is concentrated on automotive
for many years and is still made in small lubricants, particularly in the consumer
quantities for enthusiasts. local automotive and industrial markets sector, but there is also a strong presence
for 80 years. Originally known as the in business markets such as commercial
Castrol was established in South Africa Wakefield Company, the South African vehicle fleets, marine, aviation and
in June 1929 and has now served the operation opened with branches in specialised industrial segments.

page 72
Clear vision ahead
Windscreens are crucial safety elements in modern vehicles and auto glass installation, replacement and repair
are all critical to the maintenance of acceptable driver and passenger protection standards.

F
or example, in the case of an accident involving a Auto Glass opened its doors in 1999. From a single outlet, the
roll-over or a frontal impact collision, the wind- company has subsequently added a further 10 branches na-
screen represents the first line of defence. An in- tionwide. Over the past decade the company has grown to be-
correct installation, or repair – with subsequent come recognised as a preferred supplier of auto glass to the
failure - could result in injury or death. transport industry, supplying solutions to meet the require-
ments of company fleet managers for tight turn-around times
“This is why our emphasis is on expert workmanship by fac- and demanding contractual requirements.
tory trained technicians and the fitment of quality replace-
ment glass meeting SABS standards,” says Gilo Da Silva, Commercial Auto Glass also provides a service to the insur-
managing director of Commercial Auto Glass, a member of ance market which allows for versatility in maintaining conti-
the Commercial Group of companies. nuity within the glass industry. The product range includes
glass designed to meet strict OEM standards and other criteria
“If a vehicle should roll, the windscreen is a major structural determined by the motor manufacturers in consultation with
component designed to reinforce the vehicle’s roof and prevent the insurance companies.
it from collapsing on the driver and passengers. The wind-
screen also acts as a platform to support the airbags. If the Commercial Auto Glass supplies glass – including door and
windscreen is not installed correctly, the airbag deployment vent glass as well as rear windscreens, together with rubber
could force it off the vehicle,” he explains. seals and mouldings - for most local vehicles and many im-
ported models. Its fitment centres are safe and secure, with
With branches throughout the country, Commercial Auto comfortable waiting rooms for the convenience of owners and
Glass outlets are the only SABS approved windscreen fitment drivers. The company also provides a mobile repair service.
centres in South Africa. All glass supplied is shatter-proof, lam-
inated and highly penetration resistant, as specified by the “All our fitments carry a warranty and customers are provided
SABS. The glass also meets the highest international standards with a ‘fitment care’ brochure once the requested work has
including ISO 9001, ISO 9002, ISO 9003 and QSV9000, been completed and the installation has been inspected and
carrying the ‘E’ or ‘DOT’ marks specified by European and tested. Using the brochure, which outlines our ‘safety first’
American standards authorities. policy, Commercial Auto Glass staff will discuss the need for
an appropriate curing time for the windscreen adhesive with
The company has offered a hassle-free solution for trucks, cars, the vehicle’s driver or owner,” adds Da Silva.
minibus taxis and light delivery vehicles since Commercial

page 73
From F Hoppert to Diesel-Electric,
103 years of service to South Africa
The official birthday of Diesel-Electric South Africa is 1951, when Otto Nagel, then in charge of Technical Sup-
plies Company (Pty) Ltd., invited a Mr. L. Schwabe to form the first Diesel-Electric in Cape Town, the name
chosen because it typified its product range and activities. Growth into the other provinces and neighbouring
territories soon followed, and in 1957 the company achieved a national footprint when Diesel-Electric (Transvaal)
(Pty) Ltd took over the distribution and service functions from Technical Supplies in the then Transvaal area.

H
owever, this is only half the story, because the roots
of Diesel-Electric can be traced back to 1906, when
Friedrich Hoppert & Co was contracted to sell Bosch
products from Stuttgart, and its branch in Johannesburg sold
the first Bosch products in South Africa. Otto Nagel and a Mr
HC Boes, who had ties to both Friedrich Hoppert & Co and
Robert Bosch Germany, started Technical Supplies in 1946 with
a Mr W Weinrich, and they were granted exclusive marketing
rights for Bosch products in 1950, thus completing the circle.
In 1977, Diesel-Electric Holdings (Pty) Ltd, (DEH) was
merged with sister company Robosa Distributors (Pty) Ltd to
form Diesel-Electric South Africa (Pty) Ltd (DESA), and in
1983 this company became a wholly owned Bosch subsidiary.
Today, this network of independently-owned, Bosch contract
partners and franchise holders supplies the needs of Bosch Serv- Otto Nagel, who is credited This establishment can with
ice Dealers, fleet operators, workshops, Independent Specialist as being the founder of justification be defined as the
Repairers, garages, franchise dealers, parts shops and chain stores Diesel-Electric first Diesel-Electric outlet in
in the southern African market. Diesel-Electric specialises in the South Africa
automotive fields of electrical, gasoline and diesel fuel injection ment, but also other brand leaders in the field such as Gedore,
and general safety and service lines. To this end Diesel-Electric Hawkins, Wera, and many others. Bosch regional distribution
supports, distributes and represents not only Bosch Automotive centres in South Africa order their Bosch requirements directly
Products but also a wide range of prestige automotive compo- from the Bosch worldwide distribution headquarters at Karl-
nent brands such as ATE, Beru, Ferodo, Gabriel, GUD, Hella, sruhe in Germany, or in the case of locally manufactured
NGK, Osram, Ram, Sachs, Valvoline, VDO, Zexel and others. products via the Bosch factory in Brits.
The Diesel-Electrics are also involved in Workshop Equipment,
representing not only the complete range of Bosch test equip- In 2004, in response to the ever growing car parc and the ever
Chris Swale Motors in Pinetown, Kwazulu Natal, was the first growing need to service cars out of motor plan, Diesel-Electric
e-CAR workshop in South Africa, putting up the first e-CAR created e-CAR, throwing a lifeline to independent workshops
sign in May 2004 which had the entrepreneurial spirit, but not the where-
withal to provide 21st century service to the modern
motorist. The e-CAR concept was based on a well
established European model, and thus the im-
plementation in South Africa was seam-
less, and today e-CAR is the fastest
growing workshop network in
South Africa, with 60 mem-
bers and counting, each
with a technical hot-
line to Bosch.

page 74
DISTRIBUTOR REMANUFACTURERS SA – AUTO ECU

Leaders in Ignition Engineering


With an extensive history in motorsport, including a national Formula Vee championship to his credit, together
with a mechanical engineering degree, Stan Levin was ideally placed to establish himself in the motor industry.

A
fter a stint at Nissan he realised that an in-depth Ten years ago son Steven joined the business, followed by other
understanding of auto ignition systems – partic- son Simon on completion of his university studies. With their
ularly high performance systems finding their way input, the two businesses have grown significantly over time.
onto racing cars of the mid-1970s - was lacking. So much so that the Levins began looking for a new challenge.
“Of course, the ignition systems of those days They formed a new company – Auto Diagnostics – which is
weren’t the computerised systems of today,” says Levin. “They able to diagnose electronic faults on most cars in the South
relied on points and condensers, but I built technically African car parc. It also does a significant amount of program-
advanced systems that produced more horsepower, which was ming of computer boxes mainly for the auto industry. Among
confirmed on the dynamometer.” his many contributions to the SA motor industry, Levin lists
the inventions of a ‘module tester’ designed to test ignition
modules and an ‘ECU tester’ – both patented. “I also hold the
patent for a device called ‘Block Mark’ which is able to mark an
engine block with an indelible, completely permanent number.
Market surveys among companies concerned with stolen vehicle
recovery were incredibly positive, but my efforts to sell the con-
cept to the motor industry failed because of its reliance on the
replacement of stolen cars to boost sales figures.”

Success on the race track prompted Levin to turn what was ba-
sically a hobby into a full-time profession and so Distributor
Remanufacturers SA was born. In the late ‘70s the Chrysler
Valiant came out with the first electronic ignition system,
dubbed SureFire. Levin realised that this represented the future
– although many industry watchers of the time said it was a
‘passing phase’. He immediately refocused on the technology Looking to the future, Levin says the emphasis on computer
and his company’s leadership in ‘ignition engineering’ was es- systems in new motor vehicles will increase. “Therefore we con-
tablished. Today the company is the largest importer of ignition tinue to build our expertise in this area, because we realise the
system components in SA. It also manufacturers many compo- hybrid cars, electric cars and even hydrogen cars of tomorrow
nents using modern computer numerical controlled (CNC) ma- will be heavily reliant on computer technology.”
chines. Expertise in electronic ignition systems led Levin into
the world of computerised ignition systems and, using his en- Notwithstanding these developments, more than 50% of the
gineering skills, he began experimenting with engine mapping company’s turnover is centred on distributor repairs and replace-
and related technologies. He built test machinery and estab- ment. “It’s a clear indication of the aging of the local car parq
lished a subsidiary – Auto ECU – specialising in the service and the fact that cash-strapped owners are still relying on older-
exchange of electronic control units for most vehicles. generation cars to keep mobile,” he adds.

page 75
DYNAMAX AUTO COMPONENTS
Formidable Combination of Drive,
Innovation and Skills
From humble beginnings 15 years ago, Dynamax Auto Components has blossomed into a flourishing business whose auto electrical
products are today used in hundreds of thousands of passenger and commercial vehicles across the country and overseas.

D
ynamax Auto Compo- their first product. In the first year, they manufacture of the complete range of
nents, with its premises in supplied more than 5 000 units to Prestolite units for both starter motors
Spartan, Kempton Park on GCE/ELPAR. Since then, Dynamax and alternators for passenger and heavy
the East Rand, is owned by Auto Components has produced more commercial vehicles, including tractors,
two enterprising entrepreneurs, Antonio than one million units. The manufactur- commenced.
Sanchez and Joy Jenkins. Its roots go ing side of the business was expanded
back to 1964, when Antonio’s grandfa- and along with field coils for starter mo- Today Dynamax Auto Components
ther, John Lefkaros, established an auto tors, new products related to starter mo- manufactures complete aftermarket
electrical business under the name of tors were introduced, covering most starter motors and alternators (Lucas sys-
Dynamax Auto Electrical. Antonio and electrical systems sold in South Africa. At tem), while expanding their range of
Joy met 15 years ago. At the time, Anto- the same time, the company’s client base products to include other electrical sys-
nio was learning the auto electrical trade of reputable auto electrical distributors tems, such as Bosch, Delco and Japanese
under the tutelage of his grandfather, was expanded on a sole basis, a principle brands. Dynamax Auto Components
while Joy was instrumental in supplying to which they have adhered to this day. does not supply their products directly
products to South African armaments By 1998 Dynamax Auto Components to the public, but to the major distribu-
giant Denel through her company, Au- was supplying Prestolite Electric (previ- tors of auto electric products in South
tomatic Repetition. The two subse- ously Lucas) locally and overseas with Africa, while they also export to Europe
quently bought out Dynamax Auto field coils and starter repair kits. De- and the USA. Dynamax Auto Compo-
Electrical from Antonio’s grandfather mand continued to increase, which ne- nents celebrated their 15th anniversary
and initially rented the premises for their cessitated extra space, and in April 2001 in 2009.
business from him. The right combina- Dynamax moved to their present, bigger
tion of drive, innovation and entrepre- premises on the East Rand. Through “The company is ready to meet the chal-
neurial skills allowed the partners to continued investment in the manufac- lenges of the future and we are ready to
investigate the gaps in the auto electrical ture of their products, the company ex- respond to our customers’ needs,” says
market and come up with solutions and panded into armatures, solenoids and Antonio Sanchez.
products to assist their customers. At the Bendix drives. In 2003 the Local Presto-
time, the copper contacts in Toyota’s Hi- lite Elecric operation closed down and “We are a proudly South African
Ace minibus taxis and panel vans were the partners saw the opportunity of mov- company and are proud of the
imported, and this gave the fledgling ing into alternators, having bought out quality of our products. The suc-
company the opportunity of manufac- the regulator and rectifier plant from cess of Dynamax Auto Compo-
turing these locally. The partners ap- Pretolite and investing substantially in nents is built not only on the
proached a reputable engineering firm to the tooling required. They branched into loyalty of our customers but, im-
fabricate the tooling required to press the the supply of the AS123 rectifier and reg- portantly, also on the loyalty,
contacts, and they sold these to well- ulator, maintaining the stringent quality skill and dedication of our em-
known auto electrical distributor Ger- and supply chain as used by the OE ployees, many of whom have
miston Car Electric/ELPAR.This was manufacturer. At the same time the been with us since the start.”

page 76
Econometrix – road maps for
future business
Times of sharply weakening economic growth rates following record levels of new vehicle sales after the
gold boom of 1980/81 blew itself out, hardly seemed auspicious for launching an economic consultancy.
September 1982 saw the establishment of Econometrix Pty Ltd, under the free thinking leadership of its
founding Chief Economist, Dr Frank Shostak. The Consulting and support team quickly began to grow,
and a year after start-up was joined by one of the company’s earliest industrial clients, Tony Twine who
had previously been the Market Research Manager at Datsun/Nissan SA.

T
his immediately added a which he occupies to this day. He and
strong set of automotive Tony Twine have for a quarter of a
sector orientated skills to century become familiar figures in the
the macro economic manufacturing, vehicle assembly and
forecasting reputation of retail arms of the sector, presenting their
Econometrix, which was rapidly gain- views of the economic environment in
ing attention on the back of which the sector is, and will find itself
exchange rate forecasts that foresaw the operating in the future. For some years,
decimation of the external value of the Lourens Erasmus, who was previously a
Rand well before it happened in the planner at Spoornet, acted as an
middle years of the 1980s. Twine’s no- Account Executive and transport con-
toriety rose just before the January 1985 sultant within Econometrix. Soon after
one-off 54% rise in the petrol price Lourens moved on to join the planning
which few had believed could happen, team at Mercedes Benz, Frank Beeton,
right up to the moment the axe blade who had become a consultant after
fell. At that stage, the Econometrix 10 years at Nissan Diesel SA and
team was joined by another ex-Nissan another earlier decade at General Mo-
man, Ron Dowse, who added both sales tors joined forces with the automotive
skills and consulting inputs before later team at Econometrix. His encyclopedic
moving on to become a dealer principal knowledge of the local and global auto-
in the retail motor trade. motive supply industry is a valuable
asset for both the team and its clients.
A major breakthrough in product devel- Tony Twine
opment terms occurred in 1989, when Since the inception, Econometrix has
WesBank worked with the Econometrix provided a periscope for the industry to
team to build a residual value risk scan at the ocean of information within
management system, with Econometrix which it is. Raw material, component
providing the statistical modeling and and vehicle suppliers, retail dealer net-
software environment skills, Mead and works, finance houses and insurers have
McGrouther the data to calculate used all used the unit’s briefing publications,
vehicle dealer margins, and WesBank presentation skills and one-on-one con-
providing the financed price data for sultation services.
used cars and distributing the output of
the system to its dealmakers on the Twine and Beeton are sought-after edi-
dealership floors. torial contributors to both industry and
general economic publications. They
By 1986, Dr Azar Jammine had taken Frank Beeton clearly have petrol and diesel in their
over the Chief Economists position, veins.

page 77
Equipment that keeps (us)
moving forward
Euroquip is one of the relatively new companies on the automotive block. The company distributes high-quality
parts to the motoring industry, one of the hardest hit industries in recent times. However, its strength has been
highlighted by the fact that despite the closing of a number of established companies during the economic recession,
Euroquip is still around, even though the company only opened its doors in 2005.
“The recession actually helped us to a certain extent, notes “We provide a personal service, the kind of service people don’t
Prakash Bhagwan, director of Euroquip. This is due to the fact get anymore,” Bhagwan comments. The philosophy of Euro-
that, rather than replacing their motor vehicles during the quip, one of great service and unrivalled quality, means that
financial storm, many people chose to weather it and kept their problems are few and far between, and as such the company
current vehicles for a longer period of time, and instead placed has managed to grow despite tough times, and will undoubt-
more emphasis on taking care of their car’s parts. “They turned edly continue to do so.
to us for quality products, so we actually grew during the
recession,” adds Bhagwan. Thanks to Euroquip’s relatively fresh success, it has become
clear that the company has a rich future ahead of itself, and
This is truly a testament to Euroquip’s strength as a company,
one that will help maintain the mobility that South Africa and
particularly as a new one. It is not often that when a multitude
South Africans rely on so very much. Now that the economy
of businesses are closing down, one that has been open for less
is slowly but surely recovering, Euroquip is destined for great
than five years actually grows. “Our dedication to high quality
things, and with the right people at the helm, the company’s
products has led to our success,” notes the director. High qual-
superlative quality, service and growth will keep South African
ity products indeed, as Euroquip only distributes parts
motorists happy for many more years to come.
renowned for their superiority in the motoring industry.
Brands in the company’s stable at present include Valeo, Hella,
Ocap and Philips. There will always be challenges with a new
business though, but in dealing with these, Euroquip has ex-
perienced a number of successes as well. “We have definitely
gotten where we want to be in the past four years,” Bhagwan
states. “We are a very quality conscious company, and further-
more, we wish to expand in the short and medium-term fu-
ture.” In fact, over the next five years, Bhagwan says that
Euroquip is aiming to become a national organisation with
countrywide distribution and coverage. “We really want to go
national. Expansion involves a lot of things, and we want to
expand our database, we want to develop our client base and
we really want to grow our product range in the coming years.

page 78
Ferobrake: More than
a Century of Service
In 1897 Herbert Frood began his experiments into braking
materials in a hut in the garden of his house in Coombs near
Chapel-en-le-Frith, England, UK. His patent for the im-
provement of brake blocks was filed in October 1900 and
production began at Green Street, Gorton the following
year. An increase in trade, largely resulting from a change
in sales tactics - approaching the consumer rather than
the manufacturer - led to Frood renting Sovereign and
Howden Mills in Chapel-en-le-Frith in 1902.

E
xperiments in the use of asbestos began in the first
decade of the twentieth century and by the outbreak
of war in 1914 production of clutch linings and stair
treads had started. The use of asbestos in Ferodo Ltd
(as the Herbert Frood Company became in 1920) friction
products led to the company joining the Turner and Newall
Organisation in 1926. Some 41 years later, in 1965 Ferodo
South Africa established the brake bonding business known
as Ferobrake. In those days it wasn’t limited to the Auto-
motive Industry; in fact a large part of the business was via
ships chandlers, providing braking material in the form of
Ferodo Woven material to the Marine Industry. Ferobrake
also provided services to the Aircraft industry, supplying
many of the Ferodo products illustrated in the attached
war time advertisement.

Ferobrake spread its roots from the shores of Natal


(today KwaZulu-Natal), strategically positioned near
the Ferodo factory, which was initially in Jacobs and
then later Prospecton. During the next 20 years
Ferobrake was owned and sold by Turner and Newall no
less than twice, and finally, in the mid-eighties was
entrusted to an independent group of businessman, many of
whom had been running the businesses for many years. Ferobrake
was then purchased by another large automotive group, and after a series
of acquisitions was renamed CBS, previously a sister company also marketing
the Ferodo brand. This latest acquisition, however, took them out of the fold of Fer-
odo and reluctantly they marketed competitor products. This changed in 1999 when once
again the individual branches were sold off, many electing to rename their businesses Ferobrake.

Today there are 43 Ferobrake outlets across the length and breadth of South Africa, providing a national
footprint unequalled by any competitors. Ferobrake again proudly markets Ferodo Automotive products, and
concentrates on providing specialised brake, clutch and prop-shaft services to the heavy duty industry.
Ferobrake can be contacted on www.ferobrake.co.za.

page 79
Getting Exided About
Batteries
For history buffs, the electric battery provides a rich source of interest, and grist
to the mill of intrigue, false starts, contrasting claims and, naturally, amazing
technical progress, bringing hope that one day vehicles that are propelled electri-
cally will be as ubiquitous as those powered by the internal combustion engine.
The Internet is a rich source of fact and confusion around this subject.

I
n 1748, Benjamin Franklin first coined the term “bat- Africa. A significant percentage of all the new motor
tery” when describing an array of charged glass plates. vehicles sold in this country are fitted with batteries manufac-
Luigi Galvani demonstrated the electrical basis of nerve tured by FNB and the company is an original equipment
impulses in the 1780s, and this led to Alessandro Volta supplier to Mercedes-Benz, BMW, Toyota, Nissan, Mitsubishi,
inventing the first “wet cell battery” in 1800. Whilst Volkswagen and MAN. Another interesting fact is that the
this produced a reliable, steady current, it was John F Daniel majority of locally assembled vehicles exported from South
that improved on its safety with the Daniel cell in 1836. Gustav Africa are provided with batteries made by FNB, while the
Plate is credited with the development of the first practical stor- company’s brands also dominate the replacement automotive
age lead-acid battery in 1859, but what is really astounding is battery market. In the replacement market, FNB markets its
that 20 years before that, in 1839, William Robert Grove batteries under various brand names, whilst also providing bat-
developed the first fuel cell, producing electricity by combining teries for a variety of distributors’ house brands, with annual
hydrogen and oxygen. 170 years later, our scientists are now production of some 2,2 million units.
frantically attempting to make the fuel cell commercially viable!
We could go on and on, but for the purpose of this story and The Exide brand, which has played a significant role in the
which has huge significance, just one more fact, and that is the history of FNB, has a huge heritage, having been created by
establishment of the Electric Storage Battery Co in 1888. the aforementioned Electric Storage Battery Co in 1900, and

Oldham & Son Africa had been producing batteries since 1949 in
The original premises of First National Battery at 6 Buxton Street, a factory in Benoni. This is now the current premises of First Na-
East London, in 1931. It survives today as a parts retailer. tional Battery. The sign on the factory has been carefully preserved.

In South Africa, our fledgling automotive industry relied finding its way to South Africa, eventually under the custodi-
mainly on imports of automotive parts for the first 30 years of anship of FNB, who inherited the brand with the merger of
the twentieth century, but in 1931 a Mr J F Jackson founded Federale Volksbeleggings, Johannesburg Consolidated Invest-
The First National Battery Company in East London, South ments, Wesco (the investment holding company of the Wessels
Africa’s first battery manufacturer, and delivered its first ship- family) and the Nestadt family from Benoni. Interwoven in all
ment of a dozen batteries to motor traders in East London, this was Raylite, Chloride, Oldham & Son Africa and Beacon
Stutterheim and King William’s Town. From these humble be- Batteries, which would require a Warren Buffet to fully under-
ginnings, First National Battery (FNB) has grown to become stand, but suffice to say the Exide brand has had many a day
the leading manufacturer and distributor of lead acid batteries in the sun in the past, and it is about to do a reprise, with FNB
for use in automotive and industrial applications in South restoring this iconic brand to its rightful place in this country.

page 80
Ford Motor Company
Focused on commitment.
Dedicated to excellence
The Ford Motor Company of Southern Africa (FMCSA) has been an active participant
in the South African economy since 1923. It reinvested in SA in November 1994 after
disinvesting in 1986 due to it's stance against apartheid. At this point it acquired 45%
equity in Samcor from Anglo American Corporation and the employees trust.

I
n February 2000 an announcement was made to the Since the turn of the century, FMCSA has launched
effect that Ford Motor Company would be increasing a number of models with particular relevance to SA, including
its investment in South Africa by taking a majority the new Ford Bantam, a South African designed half-ton
shareholding in Samcor and by increasing its share- pickup and the Ford Focus – both built in South Africa.
holding in Ford Credit South Africa to 50%. Today
the Ford Motor Company, which is a now a 100% owner of Ford recently invested more than R 1.5 billion to expand op-
FMCSA, can look back on a long and exciting history of the erations for the production of its next-generation compact
Ford brand in SA. It began in 1904 with the arrival of the first pickup truck and the Puma diesel engine in South Africa.
Ford imported to SA. This was followed by the opening of the Ford’s commitment to the local market is underlined by its
first Ford agent, Arkell & Douglass, in Port Elizabeth a year focus on the upliftment and development of its workforce
later as interest in the revolutionary ‘horseless’ carriage grew. through education and training activities. Also in place is an
The port city was the site chosen for Ford’s first local factory Employee Assistance Programme and an HIV/AIDS Volun-
which was built at a cost of over one million rand in 1930. A tary Counselling and Testing programme for all employees.
second was added in 1948 – the Neave plant – opened by Today this programme is being used as a benchmark in other
General Jan Smuts. A number of iconic cars have carried the countries. In January 2002, Ford was awarded the United
‘Ford oval’ branding over the years including the Ford Anglia States Secretary of State’s Award for Corporate Excellence in
105E, launched in 1960 – and the Cortina which arrived two the multinational category. This award was established to
years later. The popularity of the Cortina, spurred by its many recognise the important role US businesses play abroad to ad-
competition successes around the globe and in SA, persuaded vance ethical practices and democratic values and by display-
Ford to open a R9 million plant for the production of this ing exemplary conduct in overseas operations. The company
model in 1973. Production ceased only 10 years later after also provides financial and physical support to a number of
more than 300 000 Cortinas were sold in SA. In 1964 Henry worthy organisations which are involved in supporting hand-
Ford II opened the Struandale Engine Plant in South Africa icapped people, orphaned children, school feeding schemes
and four years later local production of the Ford Escort began, and people affected by HIV/AIDS. It continues to promote
taking full advantage of the new engine plant – as did the active participation by all its employees in corporate citizen-
Capri which landed in dealers’ showrooms in ‘69. ship projects by providing 16 hours paid leave annually per
employee for this purpose.

One of FMCSA’s proudest achievements is win-


ning the top award for the best business so-
cial investment programme in the
American Chamber of Commerce's
Stars of Africa Awards pro-
gramme. This was for the
Mazda Wildlife Fund
which the company
established.

page 81
A head above the rest
BMW is a brand that can be likened to a staple food in the South African automotive industry. The brand is an
institution the world over, and South Africa is no different. Incidentally though, BMW’s car history in South
Africa does not run as deep as some of the German marque’s other local achievements. Given the high-soaring
level of the brand’s appeal though, it is appropriate that the first BMW in South Africa (or more accurately,
BMW-powered means of transport), was in fact an aeroplane.

T
his was in 1927, and like non dealer-owned BMW-approved
BMW has been on the up panel beaters in that our ones are specif-
locally ever since. 1929 ically for BMW customers, under the
saw the first BMW mo- control and management of the BMW
torcycle come to South dealerships. We want to make our dealers
Africa, and in 1975 BMW South Africa ‘one-stop shops’ and give customers
was established after the full acquisition peace of mind.” He adds that the Pine-
of Praetor Motors in Rosslyn. The South town dealership is close to getting its
African plant was the first BMW assem- own panel shop too, so that all three
bly plant to be established outside of dealers will be self-contained units for
Germany. The Forsdicks dealer network, Trevor Turner BMW customers. “The Sandton dealer-
established by John Forsdick, immedi- ship is coming close to moving to new,
ately recognised the potential for BMW’s bigger premises as well,” Turner adds. It
success in South Africa and became in- is clear that despite the brands success,
volved in the brand. The McCarthy BMW Forsdicks is not content with rest-
Group, one of the oldest and most ing on its laurels and wishes to not only
renowned names in South African mo- maintain its outstanding service and fa-
toring, were already 100% shareholders cilities, but to further improve them. “In
in the Forsdicks name at this point, and the coming years, BMW has two main
had been ever since the full acquisition goals,” says Turner. “We want to enhance
in 1957. Today, BMW Forsdicks has a the customer’s peace of mind through
successful dealer network made up of these ‘one-stop BMW shops’ and we
three branches, namely Sandton, Pine- want to focus on employment equity.”
town and Tygervalley, some of the most Neil Turner Employment equity is a massively im-
highly-rated dealerships in the BMW portant area of South African business,
South Africa stable. In the motoring in- matches up to ISO 14001 levels, thereby and it is encouraging to see a company
dustry, size does count, and according to ensuring that the dealership’s efficiency, the likes of BMW Forsdicks placing a lot
Neil Turner, dealer principal of BMW facilities and customer service is of the of emphasis on it. In conclusion, Turner
Forsdicks Sandton, “The Pinetown deal- highest standard. “It is an analysis of the closes with a quote from the father of the
ership covers an area of 4 000sq metres dealership’s processes to make the busi- high-volume motoring industry, and one
under roof. Furthermore, the dealership ness more customer friendly,” notes that sums up the essence of Forsdicks’
in Tygervalley was the first BMW deal- Turner. All three dealerships are state-of- business philosophy:
ership in South Africa to complete the the-art, fully equipped ones that cover
Quality Management Programme.” The new and used sales and service under one “Nobody can make you serve cus-
Quality Management Programme, or roof. The Sandton and Tygervalley deal-
tomers well – that’s because great
QMA, is a BMW initiative in which a erships even have off-site BMW panel
dealership is audited to ensure that it shops. Neil Turner says, “These are un- service is a choice.” - Henry Ford

page 82
As much a part of SA culture as
Braaivleis and Sunny Skies
Somewhere in the dusty annals of the South African government lies a strange but colourful inscription. In 1926 someone
registered an automotive company in an abandoned wool and hide warehouse in downtown Port Elizabeth, very close to
the present day site.

T
he act was strange indeed. No one before this day new democracy did little to dampen the taste for its cars, which
knew what was happening behind the boarded- at this stage was as much a part of South African culture as
up windows of the old warehouse, yet within braaivleis and sunny skies. Dealers grouped under the newly
days of registering the General Motors Corpora- formed Delta Motor Corporation and GM products such as
tion boasted with a 300 strong workforce, previ- Opel and Isuzu continued to form the basis for the company’s
ously unknown automation equipment and the capacity for ever expanding dealer footprint. In 1997, soon after the dawn
45 brand new cars daily. And this was only the start. GM’s of a new democracy, GM returned with a 49% stake to find, in
introduction to South Africa was unique, because when the GM much the same way as Tuxbury did in the twenties, that GM
pioneer Nathaniel Tuxbury set foot on local soil the “streets” of products was alive and well in South Africa. In this year, the
Port Elizabeth, Cape Town and even Transvaal was crawling company’s dealers celebrated by announcing that the Isuzu KB-
with Buick, Cadillac, Oldsmobile and Chevrolet models. Even range is the biggest selling bakkie in the country and by the next
bigwigs such as General Jan Smuts could be seen behind the year, with the introduction of the Opel Corsa Utility, GM also
wheel of his favoured Cadillac, the vehicle of choice for heads dominated the half-ton segment in the bakkie-loving SA. Busi-
of state. The reason? GM’s reputation preceded it to such an ex- ness was booming and in 2003 GM completed a transaction
tent that independent dealers from up north to far south started that gave it full ownership of the local operations. To mark the
importing and trading in “cars and trucks from the United occasion Chevrolet, one of the biggest automotive brands in the
States that never say die”. world and one of the most well known brands in South Africa,
made its return. Soon afterwards, in tune with the new look
The reputation led to a growing market and by the time dealer-network and growing demand for the full offering of
Tuxbury and his team set up an official channel for GM vehi- GM-products, the company announced South Africa would
cles, dealers was already very vocal in their complaints. With become the manufacturing base for the imposing Hummer H3,
Chevrolet leading the charge, dealers were complaining that which it would build on the same ground as it started in the
their stock levels could not keep up with sales demand and that twenties, yet this time it would be exported across the world.
GM would not be able to satisfy their hunger with a mere 45 Cadillac soon followed suit and within a decade of returning,
cars per day. The deep pool of demand for GM-products re- dealers were able to offer, as they did even prior to GM’s official
mained for much of the next five decades, mirroring the situa- presence in 1926, a full range of GM worldwide products.
tion at home for GM, then already the world’s largest and most
influential vehicle manufacturer. In this era, and up until GM A lot has changed since the days when GM converted a wool
decided to leave the country in the height of apartheid in the warehouse to satisfy local demand, but, now that The General
eighties, GM and its dealers commanded more than a third of is again one of the biggest vehicle suppliers in South Africa,
the local market. General Motor’s absence in the decade to the much have thankfully remained the same.

General Motors’ classic of yesteryear. The V16-engined Cadillac The Cruze is the first of a new family of Chevrolet ‘global’ cars.
Sports Phaeton from the 1930s. It was launched in South Africa in 2009.

page 83
HARLEY-DAVIDSON DURBAN

Support and Service for


Durban’s Harley Owners
Rob Saunders has spent almost half of his 30-year motorcycling career on
Harley-Davidson machinery, so it made sense for the Durban businessman to take
over the local dealership when given the opportunity to do so earlier this year.
“This shop, then called Harley-Davidson 1000 Hills, opened as a sister outlet to Brian Wegerle’s Harley showroom at
Gateway about three and a half years ago, and I was involved as a minority shareholder. When Brian died in ‘07
I left the business – I wanted to buy his share but it wasn’t for sale at the time. Then, earlier this year, I spoke to Harley’s
representatives again. They offered me an exclusive dealership opportunity in KwaZulu-Natal – the
Gateway shop had closed down – and we ended up buying this shop outright.”

H
arley-Davidson head office is very particular accepted or second-hand bikes sold. “We’ve also opened a tyre
about who sells their brand, and dictates exactly fitment centre and I now have a technician at work on Saturdays
how the dealerships should be configured, what to help the guys with minor maintenance issues – check nuts
shopfitting is required, and what products will be and bolts, tighten loose mirrors and so on. It’s a free service to
sold. “Everything’s been approved already and we’re now a fully- the customer so it costs us money, but it’s a benefit that’s exclu-
fledged Harley-Davidson and Buell dealership and service cen- sive to Harley riders.” Rob says that one thing he hasn’t done
tre, known as Harley-Davidson Durban.” Durban is home to is subscribe to the economic recession. “That’s a no-go, and
the oldest Harley club in the country – the Harley-Davidson we’re doing well, with sales picking up every month.”
Club of South Africa was founded in 1967 and is still going
strong. For most of the club’s 42-year history, however, there One of the shrewdest steps taken by the Harley-Davidson fac-
was no official dealer in the province. A num- tory over the last few years was to make accessibility to their
ber of people imported the motorcycles un- products much more affordable. “There’s a good spread of
officially, but it was only in the mid 1990s prices,” says Rob, “and the entry level machines are a lot more
that the American manufacturer took attainable than they were. For somebody looking for a 900cc
proper control of the marketing and sale of machine we can supply a Sportster 883 brand new for around
their products here. Despite this, the R85 000, which is very competitive. Our top-end products go
iconic American motorcycles have always beyond the opposition though, with a top-of-the-range 1800cc
been extremely popular in KwaZulu-Natal, machine coming in at R449 000.”
and Rob estimates that there are around
2000 modern Harleys in and around So what does the
Durban and Pietermaritzburg, with future hold for
numerous vintage machines adding Harley-Davidson
to the total. Harley-Davidson sells Durban? ”Well, we
lifestyles as well as motorcycles, and employ 14 people
Rob is working at merging the two already, but plan to
local Harley Owners Group increase this in the
(HOG) chapters for Gateway and near future. We’re
1000 Hills into one, known as also looking at mov-
HOG Durban Chapter. He’s al- ing down Fields Hill
ready taken steps to attract cus- to be more central.”
tomers to his revitalised outlet by
Ann Saunders and a
expanding his premises to include
happy customer
a pre-owned Harley section – there
were previously no trade-ins
Rob Saunders and staff

page 84
Henkel – a Brand like a Friend
Henkel is a trusted name around the world. The company produces a variety of products that
generations of consumers have come to rely on. Every day millions of customers in 125 countries
place their trust in Henkel brands and solutions. There are innovative products for home care,
DIY enthusiasts and craftsmen, body care and cosmetics and superior technologies for industries
such as transportation, electronics, packaging, durable and consumer goods.

F
ounded by Fritz Henkel in Germany in 1867, Henkel is a preferred partner to all the major OEMs in the
Henkel, with headquarters in Dusseldorf, prides it- South African automotive sector, both in the manufacturing of
self on products that make people’s lives easier, bet- vehicles (eg seam sealing, panel bonding, glass fitment, sound
ter and more beautiful. The company’s advertising deadening and noise reduction, underbody sealing, phosphating
slogan is “A brand like a friend” and when you con- and e-coating) and in the aftermarket. The company’s current
sider the diversity of brands, this message rings true. From po- focus is on the aftermarket business and the body repair and
tato crisp packaging to aerospace technology, its wide variety of panelbeating sector. Vehicle owners are becoming increasingly
adhesive solutions for both consumers and industry – with aware of the benefits of using the same technologies in the repair
which the brand is most commonly associated in South Africa of their vehicles that went into their original production by the
– makes Henkel as ubiquitous as the hadeda or the minibus manufacturer. A manufacturing plant in Alberton in Gauteng
taxi. Henkel’s products, with famous brand names like Loctite, supplies OEM customers and a there are plans to bring in a new
Teroson, Pritt, Persil, Dial and Schwarzkopf, are part of the product range manufactured in Heidelberg in Germany in con-
company’s three operating business divisions: laundry and home sumable-pack sizes (as opposed to bulk for OEMs).
care, cosmetics and toiletries, and adhesive technologies.
Henkel is a former technical partner of the world champi-
The company’s success started with a universal detergent in the onship-winning McLaren Formula One team and currently en-
laundry and home care business sector. Today, the organisation joys a technical partnership with Porsche. Loctite and Teroson
remains under the control of the Henkel family and continues technologies are used in the production of Porsche cars. These
to introduce innovative new products and solutions. One of products are used in both the body and mechanical areas and
these, Teroson, already well-established in Europe, will be in- replace traditional methods of, for example, gasketing and
troduced in South Africa in 2010. Teroson is an internationally thread lockers. A technical partnership also exists with the or-
recognised specialist in bonding, sealing and corrosion protec- ganisers of the Dakar Rally and the company is the official sup-
tion of metals and other materials, particularly in the automo- plier of Loctite and Pattex branded products.
tive industry. A large part of the company’s business in South
Africa is in the automotive sector, where the biggest adhesives Henkel South Africa has a strong social investment programme
business in the world offers a variety of sealing solutions to both and involves itself in the well-being and upliftment of
the original equipment manufacturers and the aftermarket. The the community in which it operates. The com-
product range includes Loctite, a leading specialist in engineer- pany has built and funds a home for AIDS
ing adhesives worldwide and internationally successful with DIY orphans, called Tamaho, in the Natal-
adhesives, superglues, epoxy adhesives and automotive products. spruit/ Khatlehong area.

page 85
The Royal Seal
Imperial – majestic, grand, royal; all synonymous with each other, and also the name behind the biggest motor
dealership network in South Africa.

W
hat is today known as Imperial Holdings, a mono- fully comprehend the scope of products and services offered by
lithic, multinational organisation, was born of the group. Imperial is the sum of many businesses, and a
humble beginnings. The company’s doors opened binding brand was needed to unite the group with one focused
for business in 1946 under the banner of Barney’s Super Service objective – building one brand. “The brand had grown to a
station, a partnership between Percy Abelkop and Barney Lurie. great extent,” notes Philip Michaux, CEO of Imperial Holding’s
In 1951 Abelkop bought Lurie’s shares, and four years later the Motor Division. “In total we have close to three hundred
company was offered sub dealerships to sell Pontiac and dealerships worldwide.” The Imperial name has always stood
Vauxhall vehicles, followed by Chrysler in 1962. The Imperial for quality, so rallying around one brand name offered oppor-
name was adopted in 1964, and March 1971 saw Abelkop hire tunities to unite businesses and create linkages to build on the
Bill Lynch, Imperial’s future CEO. May of the same year was positive associations of the Imperial brand. “We definitely view
when Imperial made the switch from Chrysler to Toyota, after it as a seal of quality,” states Clive Masinga, Executive: Imperial
which the company really started to take off. In 1975 Imperial Holdings. The new brand mark took eight months to create, a
Truck Hire was added to the group’s portfolio, joined four years process that involved intensive research, brand strategy
later by Imperial Car Rental, which is today one of the leading positioning, brand architecture and design. “It’s not an
car rental enterprises in the country and operates under the overnight exercise,” comments Masinga. The new mark, called
Europcar name. Following this rich history, today Imperial the Imperial Flair, represents Imperial’s entrepreneurial
Holdings is a brand so recognised that surveys have indicated dynamism. The symbol is seen to be in constant motion,
such confidence in the name that it is no longer viewed as a symbolising the bridging of Imperial’s past with its future.
brand, but as a seal of quality. Testament to this is the massive
rebranding exercise Imperial has launched, one in which the “It’s a sign of confidence,” adds Michaux. “You’ve got to have
new Imperial brand truly will act as a seal of quality. Imperial confidence in what you offer your customers.” Fast moving,
has always been a company with an entrepreneurial flair, and forward thinking; that is Imperial Holding’s slogan, and one
its initial forays into car dealerships were so successful that the that is appropriate to a company that prides itself on its entre-
business now spans numerous industries, from tourism to preneurial spirit. “We’re not weighed down by too much
logistics, car rental to financial services, and auto retail and bureaucracy,” Michaux says. Imperial is able to deal with the
distribution to dealerships. fluidity so characteristic of business today, and it is encouraging
that a company with as rich a history as Imperial Holdings is
With this growth, and numerous acquisitions, came the chal- embracing the future and continuing to move with the times.
lenges of multiple, fragmented and diverse brands and busi- “It’s important,” concludes Michaux, “we’re a long term-player
nesses, compounded with a large staff complement that didn’t in the motoring industry, and we’re here for the long haul.”

page 86
To the World with Perfection
Egyptian-based Kapci Coatings is the largest company producing automotive refinishing products in the Middle
East. Currently employing around 1350 people and generating revenues of more than $100 million, Kapci boasts
a market that includes Europe, South America, Asia and Africa.

K
apci was established in shown in the brand for the following rea-
1985 as a private com- sons:
pany devoted to the pro-
• The extremely high quality of the
duction of car refinishes.
product in terms of coverage and
In 1999 the company ex-
finish
panded its horizons and began produc-
ing other paint products for parallel • The very competitive pricing struc-
markets. Initially, Kapci’s focus was on ture for a product of this quality
the production of Nitrocellulose car re- • The diversity of refinish products
finishing products. However, in 1996 it available within the range, to suit
introduced the extremely successful two- every requirement in this market.
component Acrylic Polyurethane colour
Local body shops already converted to
mixing system for this application.
the Kapci brand report that not only has
Today Kapci produces a wide range of
their paint bill been considerably re-
Acrylics, basecoats, clear coats, harden-
Nizam Ally, Chairman of the board duced, but the excellent coverage and
ers, fillers, thinners, putties and primers
of Kapci Coatings, drying of the paint has speeded up the
to suit all spraying conditions. In addi-
daily throughput in their workshops - a
tion to the unique Kapci Car Refinish
key benefit in itself. Added to this, the
system, Kapci also produces a large range
excellent colour support software and
of decorative paints and wood finishes.
marketing aids produced by Kapci have
Kapci Coatings operates a paint produc-
minimised colour searches and helped
tion plant in Port Said. Its main opera-
eliminate colour problems.
tion is blending and mixing of raw
materials into several types of paints, The company places a significant em-
coatings and wood finish products. The phasis on training and is in the process
main raw materials are solvents (butyl ac- of commissioning a fully-fledged train-
etate, ethyl acetate, toluene), pigments, ing centre. Here the Kapci team of tech-
binders and additives. Quality control is nical consultants will continue to ensure
an essential and very important function that not only are the distributor staff
and at the Kapci plant it is performed for competent in terms of the application
every batch in production, and strict processes and properties of the paint, but
specifications are met at each and every that this knowledge is passed on to body
stage of the process. The recent award of shop personnel, ensuring that the prod-
the international ISO9001 and Coatings South Africa. This company
uct lives up to it’s potential.
ISO14001 certification is a testament to operates as the sole distributor for Kapci
the high standards set by the Kapci pro- refinish products in the southern African
Backing its claims, Kapci offers car own-
duction facilities. In addition, Kapci region and has branches in Gauteng, the
ers a lifetime warranty on a repair carried
Coatings in Egypt have been accredited Cape and KwaZulu-Natal. It has also es-
out with its products. The warranty gives
by TUV to carry out testing to tablished a network of 96 sub-distribu-
the assurance that the paint repair will
ISO17025 standards. tors covering the southern African region
not crack, peel, fade or otherwise degen-
including Malawi, Namibia, Botswana,
erate - important considerations when
A considerable portion of Kapci’s pro- Mozambique, Zimbabwe, Zambia and
one considers the high cost of motor ve-
duction is exported to South Africa and Swaziland. Since its establishment here
hicles today.
its local joint venture partner, Kapci in 2003, significant interest has been

page 87
McCarthy – a major player with
a proud history
McCarthy Limited has grown over ten decades to become one of the leading motor retail organisations
in South Africa. Its journey passes through two World Wars and several economic highs and lows.

Early Days McCarthy underwent extensive capital restructuring, disposing


of its non-motor interests and returning to a single-minded
The roots date back to two small businesses – the Coventry and focus on the core motor and allied financial services business.
Birmingham Motor and Cycle Company in Durban and Atkin- Under Pretorius’s initiative, McCarthy became a wholly-owned
son’s Motor Garage in Bloemfontein. Both were established in subsidiary of the Bidvest Group in 2004. Record trading
1910 and entered the burgeoning motor car industry during figures, sterling financial results, and rapid growth followed.
the Great War. But it was Justin McCarthy who joined the
Coventry and Birmingham Motor and Cycle Company as a Today and Tomorrow
young accounts clerk that saw the company seal franchises and
Today McCarthy has a dealer network of 120 outlets, represents
list on the London and Johannesburg Stock Exchanges in 1936.
close on 40 different passenger car, commercial vehicle and
Changing Times heavy equipment marques, and sold 75 115 units in the most
recent fiscal, despite extremely tough trading conditions. As
South Africa revelled in an economic upswing after WWII and, McCarthy approaches its centenary year in 2010, its history is
anticipating the changing motor scene, Justin McCarthy a reflection of the dedication and commitment of men and
approached Atkinson-Oates in Bloemfontein and his Durban women whose efforts have created a legend in the South African
rival, Forsdicks, to launch Motor Assemblies, which started motor industry.
assembling Chrysler vehicles in 1948.
“None of these achievements would have been possible
A New Era without the support of our valued customers, our
principals whose brands we represent, and the efficient,
Justin retired in 1957, remaining as chairman, while his younger
driven and principled McCarthy team members,
brother Pat assumed responsibilities as CEO. Justin’s son, Brian,
who continue to embody the McCarthy value system of
entered the business after completing his studies in the US and
honesty, integrity, ethical behaviour, and total
in 1963, when Pat retired, the 39-year-old Brian was appointed
dedication to customer service,” says Pretorius.
to the top position. By this time Toyota South Africa was the
largest single customer for Motor Assemblies, and in 1964 Brian Four of the close to forty marques represented by McCarthy
sold this entity to Dr Albert Wessels, cementing the relationship
between McCarthy and Toyota that still prevails today.

Unprecedented Growth
The company – now called McCarthy Group Limited – began
a journey of unprecedented growth in 1975. Sales soared from
R44-m in 1972 to R661-m a decade later, with total assets of
R30-m and a staff complement of 5 800. During the 1980s and
early 90s, McCarthy diversified and concluded a merger with
Prefcor Holdings Limited in 1992 to form McCarthy Retail
Limited. This entity became a major player in the mass market,
while McCarthy’s motor division, representing all the major
marques, continued to deliver sterling results. During 2000 and
2001, under the capable leadership of CEO Brand Pretorius,

page 88
MISA: The Trade Union
of Choice
In 1929 the Witwatersrand and Pretoria Motor Industry Employees’
Union was started by a group of employees from humble beginnings.
Soon, trade unions in other regions were formed and in 1940 they amal-
gamated into the Motor Industry Employees' Union (MIEU) of SA.
However, De Villiers warns that many of the benefits that have
been negotiated since 1929 could be lost unless the motor re-
tail sector addresses the issues that threaten the survival of
motor retailers. “There is a big gap between the brand-build-
Dana De Villiers, ing expectations of manufacturers and the realities of selling
CEO of MISA, and servicing new and old vehicles in South Africa,” he
stresses. “Based on a-million-car-a-year predictions, the dealers

B
y 1942, some of MIEU’s greatest achievements have been lumbered with Taj Mahal-type dealerships that are
were three weeks annual leave for its members, not financially viable, our franchised service centres are priced
together with tool and overall allowances and a and geared to fix new cars despite the fact that most cars on
mortality scheme which provided for a £50 grant our roads are five years or older, we lose many customers to
to the next of kin (later raised to £250). DIY-repairs and 'informal repair centres' because it is becom-
ing too expensive for the man-in-the-street to service vehicles
MIEU also assisted with the formation of the Motor Industry at dealerships.
Staff Association (MISA) in 1948 in Bloemfontein. In 2003
the two trade unions merged to strengthen their bargaining "The decision-makers in the industry must remember it is nei-
power and to ensure better service, benefits, wages and ther the building nor the logo outside that sells and services
working conditions for all staff. the vehicles, keeps customer satisfaction at an acceptable level
and builds loyalty. It is the MISA members and other employ-
Today MISA represents 29 000 members and plays a vital role ees who create the relationships with the customers and con-
in the Bargaining Council structure not only on behalf of its tribute to the generation of economic value."
own members but also on behalf of non-union employees.
Its members include qualified artisans, learners/apprentices, De Villiers says the 2009 recession caught the motoring retail
sales and administrative staff, and range from dealer principals industry at its most fragmented. “Unless we unite behind
to junior clerks. pragmatic standards in terms of branding, training and serv-
icing, the industry stands to lose most of the benefits we
For Dana De Villiers, CEO of MISA, the focus - in terms of fought for since 1929.
benefits and service delivery - is always on the members.
He says: “The MISA Benefit Fund and Funeral Fund is a “If we do not address these issues, the next decade could very
benefit that automatically covers all members, with the im- well see a local motoring retail industry selling and servicing
portant difference that payments are made directly to the next fewer cars, better public transport in the cities and a stronger
of kin upon the death of a member. The MISA benefits do than ever used-car market,” predicts De Villiers.
not become assets in the deceased person's estate and thus go
a long way to help families when they need it most. More than He adds; “MISA has a proud track record of protecting and
R60 million has been paid to members and /or dependants advancing the interest of our mem-
since 1985. bers, service of the highest order and
benefits offering value for money.
“We also have labour law practitioners who provide free legal We will continue to pool the talent
advice and, if necessary, legal defence. We have an enviable and skills in our association to ensure
success rate, thanks to MISA’s approach that contributes to that MISA remains the trade union
speedy resolution of disputes.” of choice for all employees and their
employers."

page 89
TOPCLASS TOPICS

Permatex - 100 Years of Innovation and


Leadership in Chemical Tools
2009 marks Permatex’s 100th year in business. Since 1909,
Permatex has been the preferred choice in the USA for chemical
tools for motorsports teams, professional automotive technicians,
performance buffs, and general automotive do-it-yourselfers.
The world is also catching on to the wonderful world of Perma-
tex, and the company now operates in the United States,
Canada, Mexico, the UK, and exports products to more than 85
countries around the world. South Africa is one of those
fortunate 85 countries, with Permatex products being marketed
TopClass MD, Richard Pinnard by Timken SA and distributed by TopClass Automotive.

P
ermatex offers a wide range of adhesives, sealants, effectively service customers. TopClass Automotive is part of
gasket makers, hand cleaners, lubricants, appear- this global effort and is looking forward to putting Permatex
ance products, specialty repair kits, and additives, in its rightful place on the South African automotive land-
with now over 350 products making over 1 000 scape. If you are a professional automotive technician, or part
SKUs, providing market-specific formulations and of a motorsport team, a performance buff, or simply a do-it-
application methods for a variety of industries, including au- yourself fanatic, contact TopClass Automotive for more infor-
tomotive, marine, motorcycle, heavy duty, and off highway. mation on the comprehensive range of superb Permatex
The company is constantly working with automakers, parts products. You won’t be sorry.
suppliers, service parts groups, and other aftermarket compa-
nies to develop the next generation of service technology. With
a pedigree like this, it would not be an overstatement to call
Permatex the “Rolls-Royce” of car care products.

It all began in 1909 when Constant A Benoit Sr, the founder


of the company, designed a shellac to bond bicycle tyres to
their rims. In 1915, fate provided an impetus to growth when
Mr Benoit attended a 24 hour endurance race at the
Sheepshead Bay track near his Brooklyn, New York laboratory.
Being of a scientific bent, he observed that many of the cars
were forced to make frequent pit stops to replace blown cylin-
der head gaskets. The mechanic for Ralph DePalma’s car was
at his wits end when the car blew its head gasket for the fourth
time, and Mr Benoit applied some of his experimental gasket
cement and the DePalma car drove the rest of the race without
any further gasket problems. On that day, Permatex entered
the automotive maintenance chemicals business, and the rest
is history. From its Hartford headquarters, Permatex directs a
growing global automotive aftermarket enterprise serving Richard Pinnard - Mr. P - we kid you not is the official mas-
North America, the Pacific Rim, South America, Europe, and cot for Permatex product. Here he is seen at the Auto-
mechanika South Africa show held in March 2009, flanked
Africa. Permatex manufacturing plants, distribution centres
by admiring Timken ladies.
and offices are strategically located to achieve growth goals and

page 90
Schaeffler Group
A history of exceptional service to the South African auto industry
Schaeffler South Africa is the local operation of the giant Schaeffler Group of Germany, which has a world-wide rep-
resentation in the automotive, industrial and aerospace sectors with its three strong brands, LuK, INA and FAG.
The Schaeffler Group produces products as diverse as CVT (continuously variable transmissions), DSG gearboxes,
bearings for jet engines and even minute bearings for dentists’ drills.

S
chaeffler Group Automotive supplies its components
to almost every vehicle manufacturer across the
world. The company makes significant investments
in research and development to address future chal-
lenges. The group-wide advanced quality manage-
ment system ensures that the highest quality standards are met.
The South African company produces and distributes passenger
car clutches to international standards from its modern facilities
in Port Elizabeth for both local and foreign motor car manu-
facturers. As an OE supplier, Schaeffler South Africa is also a
major player in the supply of product to the Automotive After-
market through an approved distribution network. In addition,
the local operation assembles FAG wheel bearing kits and pro-
vides LuK commercial vehicle clutches. The local range is sup-
plemented by product imported from numerous Schaeffler
plants worldwide and includes single bearings for automotive
applications and LuK tractor clutches. The marketing of pas- duty clutch plant in Wadeville was acquired. Now LuK South
senger car, commercial vehicle and tractor products across the Africa, the company started manufacturing clutch facings in
LuK, INA and FAG brands is handled by the Automotive 1998, and it also acquired it first OE export contract – clutch
Aftermarket Head Office in Johannesburg, with customer serv- facings for the German car manufacturer Audi. The ever-in-
ice being supported by Area Managers in Natal, the Free State, creasing demand for LuK South Africa’s products necessitated
Gauteng, and the Western Cape. In addition, a toll-free hotline expansion and as a result an 8 000 square metre building was
(0800 412 106) is maintained during office hours, where any purchased in Port Elizabeth in 2000. Diaphragm manufacture
technical issues can be quickly resolved by highly-qualified staff. started in 2004. In 2007 the INA/FAG warehouse was also
moved to the LuK site in Port Elizabeth. Following the integra-
The history of Schaeffler South Africa goes back to 1963, tion of most of the worldwide operations of the Schaeffler
when a clutch manufacturing company Group into one legal unit per country in 2007, LuK South
was founded in which Repco Africa became Schaeffler South Africa (Pty) Limited in 2008.
of Australia and the In-
dustrial Development The LuK warehouse in Edenvale, Gauteng, was sold and the
Corporation each had Automotive Aftermarket Division was relocated to its present
an interest of 50%. premises in End Street in Johannesburg. The automotive after-
In 1987 LuK of Ger- market requires a constantly evolving product range due to the
many purchased a ever increasing number of models in the South African market.
51% interest in the In addition the increasing complexity of modern vehicles re-
South African com- quires ongoing revision of how customers, from approved dis-
pany, with the IDC tributors through to the end user are adequately serviced.
retaining 49% of the
shares. Five years The Automotive Aftermarket Division of Schaeffler South
later, in 1992, LuK Africa has increased its capacity in terms of providing technical,
bought out the IDC product management and administrative assistance to cater for
interest and in that the growing demand for better information, access to a broader
same year the heavy- range of products and faster turnaround time.

page 91
The Prufe of the Pudding
What makes a great company? Taking this a little further, what makes a great product? These questions have been
asked many times, and there are many answers, some truer than others. What is unquestionable is that time and
history play major roles, and what is even more unquestionable is that achievement above the norm defines a com-
pany and its products. Ronnie and Bertie Lubner, in their foreword to the PG Group’s coffee table edition titled
“PGSI 1897 to 1997 – One Hundred Years”, celebrating a centenary of endeavour; refer to the history of PG as
“100 years of entrepreneurial spirit, fortitude and resolve”. The proof of the pudding is in this fabled history and
together with the PG Group’s accomplishments from 1897 to 2009 they provide a glimpse of this greatness.

S
hatterprufe is part of the PG Group, South Africa’s
leading integrated glass business. Shatterprufe was
established in Port Elizabeth in 1935 to supply the
motor trade and in the same year Pilkington
launched Armourplate Glass, also in Port Elizabeth,
and these two iconic companies eventually found their way into
the PG fold. The PG Group divisions consist of: PFG – Man-
ufacturer of float and patterned glass; Shatterprufe – Manufac-
turer of automotive glass; Glass South Africa – Distribution of
building and automotive glass; PG Glass – retailer of building
and automotive glass with a network of installers; Primador –
Door and window manufacturer; Llumar – laminate film dis-
tributor. Shatterprufe acquired Widney, a manufacturer of slid-
ing windows for vehicles in 1996. Shatterprufe has facilities in
Garankuwa, Neave Township (Port Elizabeth), Struandale (Port
Elizabeth), and a Durban Assembly Facility. In addition, the
Widney facility focuses on transport products for bus and rail,
as well as supplying “slider” products for OEM vehicles. Shat-
terprufe manufactures Laminated and Tempered Automotive
glass for passenger vehicles, light, medium and heavy commer-
cials as well as buses and trains, relying on an advanced logistics
and distribution network that carries out shipments of in excess
Shatterprufe maintains the highest global automotive quality
of 12000pcs of glass per day - globally. Shatterprufe supplies all
standards through a unique combination of automation and
seven South African OEMs (BMW, Ford, GM, Mercedes, Nis- personal attention
san/Renault, Toyota & VW) as well as all the local bus manu-
facturers including MAN and Marcopolo, and exports bus
products to companies in the United Kingdom and supplies ve-
hicle glass repair and replacement companies in Europe. Shat-
terprufe also exports to the USA, South America, the Far East,
Australia, rest of Africa and the Middle East. As a supplier to
OEMs, Shatterprufe is required to either have a global footprint
or a significant technical partnership with a global player. Shat-
terprufe currently has global technical agreements in place,
which will be further enhanced in the years to come. Shatter-
prufe has an exceptional track record in the automotive indus-
try, being one of a few companies that have supplied OEMs
from inception in South Africa. Shatterprufe’s strengths include
the ability to produce low volume niche products, a large range
of auto glass, quality standards equal to the best in the world,
and self-reliance on glass supply.

page 92
Tenneco on Top of the World
Global Profile dampers. Tenneco provides coverage catalitic converters , diesel particulate fil-
of the majority of its emission and ride ters (DPF) for the major OEMs outside
Tenneco is one of the world’s largest control products for aftermarket appli- South Africa.
designers, manufacturers and distributors cations.
of automotive ride control and emission Tenneco has leveraged off its OEM base
control products for vehicle manufactur- South African and international sourcing capabilities by
ers and the aftermarket under its Profile proffering the most extensive and widest
Monroe®, Walker®, Gillet® and Clevite® range available in South Africa, and
South Africa was introduced to the world
Elastomer brand names. The company offering an extensive three year unlimited
of Tenneco when they acquired Gillet
supplies the passenger car, commercial mileage warranty for most Monroe
Exhausts in 1994, and a controlling in-
vehicle and industrial vehicle markets ranges and an exclusive five year or 100
and is also active in the two-wheeler 000 km warranty on its Reflex range.
market. Tenneco's top ten customers With Monroe being the world leader in
include GM, Ford, VW, Daimler- ride control technology and the biggest
Chrysler, PSA Peugeot Citroen, Toyota selling brand worldwide, Monroe RSA
Motor Company, Nissan Motor Com- has seen huge market share growth
pany and BMW. The company benefits during the recent difficult economic
from a balanced customer portfolio and period, on the back of high quality
a diverse geographical footprint that shocks which boast the lowest return rate
enables it to provide its customers with in South Africa.
consistent quality, design, engineering,
program management, manufacturing The future is bright for Tenneco
and assembly services wherever they are South Africa, as with the benefit of
in the world. ISO/TS16949:2002, ISO 14001:2004,
OHSAS18001:2007, and Ford Q1
Emission control products include accreditations received from highly
complete exhaust systems, fabricated acclaimed international institutions, and
manifolds, manifold-converter modules, terest in Armstrong Hydraulics in 1997
the move from the MIDP and APDP
catalytic converters, mufflers and creating a marriage between the world's
emphasising value added, Tenneco is well
resonators, diesel particulate filter and SA's leading manufacturers of ride
placed to take advantage of the new
systems, NOx abatement systems, and emission control products. Gillet
dynamics in automotive component
exhaust heat exchangers, exhaust isolators Exhausts South Africa are mainly export
supply.
and hanging systems. driven. Domestically Tenneco deals with
all of the major motor manufacturers and
Ride control and Elastomer products supplies shock absorbers for the majority
include shocks and struts, computerised of the vehicles that are manufactured
electronic suspension, anti-roll systems, locally, due in no small measure to
suspension modules, suspension bush- Tenneco’s advanced technology designs
ings, coil, air and leaf springs, torque and wide acceptance, together with ex-
rods, engine and body mounts, arms/ tensive quality accreditations. The Ten-
bars/links, cabin dampers and seat neco Emission Control facility provides

page 93
Timken Celebrates 77 Years in South Africa
From its humble beginnings in 1932, Timken South Africa has grown and changed along with both South Africa and
with The Timken Company. The result is a business culture based on a shared sense of purpose built around pride of
product, led today by Chairman Tim Timken and President and CEO Jim Griffith. There is an identity embodied in the
Timken name that has stood firm for more than 100 years and which has come to stand for many worthy things: ethical
business practices, quality products, innovation and independence of thought.

T
he story of The Timken Company started in 1898 when In 2005, Timken South Africa announced its groundbreaking
Henry Timken, a 19th century innovator in carriage Black Economic Empowerment deal - the first of its kind in the
manufacturing, patented the tapered roller bearing. The industry. Timken Bearing Services South Africa (Pty) Ltd was
following year, he formed a company to produce his innovation. formed as a subsidiary of Timken South Africa. TBSSA incor-
His sons, HH Timken and WR Timken, moved the company porates the Southern African rail division of Timken South
to Canton in Ohio in 1901, where it remains today. In 1932, Africa. Bokomoso Investments led by Zandile Jakavula, owns a
Michael Bruce Urquhart Dewar, the then managing director of 26% stake in the company.
the British Timken company pushed the business into South
Africa with the creation of British Timken SA in Johannesburg. This year marked the 77th anniversary of Timken in South
The company was successful in developing a market, especially Africa. This great achievement can be attributed to the joint
for railroad bearings. South African Railways specified Timken efforts of the great visionaries that have led the company and
bearings when it made a large order for new locomotives and the employees that live this vision daily. The company has wit-
passenger cars. To help fulfil such orders, British Timken estab- nessed many changes in the socio-political environment of
lished a plant in Benoni in 1951. In 1958 British Timken hired South Africa and has worked through the challenging eco-
Kendall Brooke, a young South African engineer who graduated nomic environment. This has resulted in very specific focus.
to MD and under his guidance the local facility was renamed Although the economic environment might not improve for
Timken South Africa (Pty) Ltd following the consolidation of another year or so – Timken is in a strong position to take part
British Timken and The Timken Company in the US. In 1968 in any economic improvement.
the company committed to building a new factory in Benoni to
produce AP Bearings and in the 1970s, with the new plant on One thing that hasn’t changed however is that Timken has and
line, Brooke succeeded in extending his into Zimbabwe, Zambia will continue to manufacture and supply bearings of the high-
and Mozambique. Timken’s application engineers began work- est quality to both the local and export markets and provide
ing closely with the designers at Sigma Motor Corporation, and outstanding customer service and technical support.
in 1981, Timken bearings were specified for the new Mazda
323s. In 1982, Timken South Africa celebrated the manufacture
of its 500 000th AP bearing. 1986 saw the start of a successful
partnership between Timken South Africa and the South African
Motor Corporation (SAMCOR) with the introduction of the
Ford Laser for which Timken bearings were specified. Although
local manufacture of automotive sized bearings ceased in 1998
the Benoni site continued to play an important role with the
opening of a Railroad Bearing Remanufacturing facility. In the
wake of Danie Coetser’s appointment as MD of Timken SA in
2001 came an innovation by the local management team that
resulted in small mobile remanufacturing factories being devel-
oped. The rail operation in southern Africa was revolutionised Celebrating Timken’s seventy fifth anniversary in South Africa
with the ability to repair bearings on the customer’s doorstep. are: Mr MW Happach, Mr WT Timken and Mr S D Coetser.

page 94
TOPCLASS AUTOMOTIVE BEARING SYSTEMS

The Fusion of Passion and Excellence


From early beginnings in unpretentious basement accommodation in Edenvale, east of Johannesburg, TopClass Automotive
Bearing Systems has elevated itself to five-star status in the automotive aftermarket arena in the short space of 12 years.

T
he company, led by “Bearings are often seen as a ‘grudge
founder and managing purchase’ but Permatex consumables –
director Richard Pinard, cleaners, thread lockers, silicone sealants
is now a force to be reck- and the like – are perceived differently
oned with, distributing and we will enjoy the challenge of ad-
bearings and other related products to dressing a new market.” Looking to the
South Africa’s growing corps of work- future, Pinard says TopClass will build
shops, service centres and parts outlets. on its strong base and he looks forward
Pinard put his 17 years of service with to 2010 when he predicts a surge in the
multinational bearing manufacturer SKF aftermarket as many of the new vehicles
to good use, having gained an in-depth bought in the boom years of 2005/6
knowledge of the market before leaving will come out of warranty/ motorplan
to start his own business. “After only and find their way into the independent
eight months since we opened our workshops for servicing. On the bearing
doors TopClass was appointed by the TopClass founder and MD front there has been a slew of new de-
FAG bearing company to assemble and Richard Pinard velopments, and the introduction of
distribute its wheel bearing kits in “Today the majority of the bearings we new technologies. “Our emphasis will
South Africa,” says Pinard. “Soon after distribute are from Timken, a reputable be to grow the aftermarket and enhance
that FAG invited us to join its franchise American company. We enjoy an excel- our profile further. We believe con-
system, which, at the time, presented an lent relationship – extending to the race sumers are becoming more discerning
excellent opportunity for TopClass to tracks and sponsorship of a racing team in terms of the parts fitted to their ve-
be relived of the burden of stock hold- for which I drive. I am very fortunate hicles and we’re confident that our qual-
ings and cash flow concerns.” The move to be involved in a business which gives ity brands will outperform ‘whitebox’
opened up new outlets, including the me the opportunity to indulge my pas- and other less-than-optimal solutions.”
growing Midas organisation as well as sion. Motorsport is an integral part of
AutoParts and AutoZone. “We intro- my life and I believe my enthusiasm for Pinard says TopClass can be expected to
duced the brand to Daimler Chrysler, it filters through into my business world expand its product range to address
Ford, BMW and other OESs and estab- which benefits too.” Further broadening parts associated with disk brakes and
lished excellent relationships which en- its range, TopClass has taken on the dis- suspensions. “There are also opportuni-
dure to this day,” he says. In 2002 FAG tribution of the Permatex brand which ties in differential and gearbox repairs
was the subject of a corporate takeover has given the company a push into the and refurbishment - which is another
and in its wake Pinard decided to steer retail sector. Permatex – also US–based avenue worth exploring,” he adds.
TopClass towards independence rather - celebrated its centenary in 2009.
than be shackled to any one supplier.
Nevertheless TopClass was soon ap-
proached by the BearingMan company
and because of the Japanese emphasis in
its product portfolio – an attraction for
Pinard - a distribution deal was struck.
Once again, however, Pinard sacrificed
closer ties, in the form of a partial own-
ership deal crafted by BearingMan, for
his hard-won and much-valued inde-
pendence and in 2007 the organisations
parted company. Motor racing is an integral part of Richard Pinard’s life. He is pictured (left) with
Timken team mates Bryan Morgan and Hennie Groenewald.

page 95
Making Traxx
Traxx South Africa Friction Products was established in 1999,
and has grown into one of the leading suppliers of brake friction
material to the South African automotive market, as well as
that of neighbouring countries. Traxx SA is the sole importer
and distributor of EMAK brake friction products in South
Africa. Traxx’ EMAK range is comprised of brake pads, brake
linings and roll linings for both the light and heavy duty sectors
of the automotive industry. Traxx SA also supplies brake drums,
brake discs and clutches for both sectors of the industry.

T
he brake pads and brake linings Traxx SA has goals to expand further in
are sourced from a state-of-the- the coming years and it is in the process
art production facility just out- of expanding in both its business seg-
side of Cairo in Egypt. “The EMAK ments. Regarding both segments, Van
technical team are rated amongst the Rooyen remarks, “We’ve been expanding
world’s best, ensuring that our formula- at a phenomenal rate.” Without revealing
tions and products are amongst the most too much, Van Rooyen adds that new
advanced in the global market,” states product introductions are key to Traxx’
Paul van Rooyen, managing director of business. He concludes that “In terms of
Traxx SA. All products supplied by Traxx expansion, we definitely have plans in
SA comply with all environmental stan- place.” So as the RMI celebrates its 101st
dards set for the industry. year, Traxx SA SA celebrates its very own
milestone, that of its ten year anniversary;
“Traxx SA Friction Products is commit- an appropriate congruence that high-
ted to providing its customers with prod- Paul van Rooyen - MD lights the success of the motoring indus-
ucts and service that will exceed their try in South Africa as well as the success
be the number one supplier of friction
expectations and requirements in order of Traxx SA’s effective business philoso-
products to the South African market.”
to achieve a mutually beneficial partner- phy. “We have exceeded the goals we have
ship. This will be accomplished by fol- set ourselves to achieve” states Van
Despite this though, Traxx SA has still
lowing our stringent quality objectives as Rooyen.
managed to cause some major coups in
a company culture based on Total Qual-
the industry in recent years. “We have
ity Management.” notes Van Rooyen. However, he knows that there is always
obtained the business of three of the
When competing with some much older, more to be done in the auto industry, and
country’s leading OEMs for light duty
more established and therefore more concludes with what could be the com-
brake pads in the past five years, and we
recognised brands, there are bound to be pany’s mantra: “Product and service qual-
are currently in talks with one more,” Van
tough times for relatively new companies. ity is of the utmost importance to us. We
Rooyen reveals. “Our current customer
“The recent economic environment has aim to provide the right product, at the
base also includes two of the major
been a test for us,” Van Rooyen says. “It’s right quality and cost, in the right place,
OEM’s in the heavy duty sector as well as
always a challenge, but our mission is to at the right time.”
several major transport companies.”

page 96
VALLY’S AUTO WHOLESALERS
“Our main customers today
are retail spares and acces-
sories outlets and other
wholesalers, fleet owners and
many workshops,”
says Ficky. “The Company
has a staff complement of 30
and carries an enormous
range of products, though I
don’t think you would find a
’69 Valiant suspension re-
build kit registered on the
state-of-the-art computer
stock control system.”

In Safe Hands
Forced to relocate from Johannesburg because of the restrictions placed on Indian traders,
Abdullah Vally started a small retail spares shop in Fountain Lane, Durban in 1968. The
shop was strictly retail at first and the product range was small. As most of its customers
were taxi owners, spare parts for the fastest selling products were ball joints and tie rod ends. Abdullah Vally

B
rothers Yousuf and Rafik ’Ficky’ joined the business Vally’s Auto Wholesalers’ reputation as a trustworthy dealer
in 1970. The business relocated to bigger premises grew along with their business and the company is today an
in Beatrice Street later that same year. Renting enormously respected player in the automotive spares industry
premises meant the company was at the mercy of in KwaZulu-Natal. Ironically, Ficky was elected chairman of
landlords. To this end, a property in Lorne Street was the MIF/RMI in the late ‘80s and held the position for almost
purchased and the cottage standing on the property was a decade. Apart from spares and accessories, the Vally family
demolished and a most modern 12-storey building was has branched out in another direction.
erected. Vally’s Auto Wholesalers occupied the first three floors
until 2005 when the business moved to the present bigger “We now manufacture lubricants as well,” he says.
premises on the corner of Lorne and Albert Streets. “Starting
“We have a plant that processes base oil that we buy
up a business for a South African Indian was difficult 40 years
ago, more especially in the motor spares trade. We were not from the refinery. We do the blending, mixing and
allowed to join the Motor Industries Federation - now the packaging in-house and all our Viking lubricants
RMI,” recalls Ficky.
conform to SABS specifications.”
“We had no way of controlling standards, and all Indian
Nearly half a century after it started in a tiny shop in Durban’s
traders were lumped together in the minds of the suppliers
Grey Street area, Vally’s Auto Wholesalers is in the safe hands
and the public. We could neither buy directly from factories of the next generation of the family.
nor would the wholesalers grant us credit. The fact that we
had relocated from Johannesburg meant that we had no
track record or family history in Durban which
didn’t help much either.”

page 97
RAM Belts & Hoses - Standing the
Test of Time
Preddy highlights the amount of research and testing under-
Rubber & Associated Manufacturers (RAM)
taken at Veyance Technologies and says the efforts by highly
is the automotive division of Veyance Technologies trained and experienced staff are directly linked to the reasons
Africa, a specialist company that manufactures why Goodyear-branded automotive replacement products
and sources quality Goodyear deliver the ultimate in performance and value. “The brand
Engineered Products. offers peace of mind for both the supplier or fitment centre
and the motorist and so it’s well worth taking a look at the

I
t wasn’t long after the formation of RAM in 1981 that Goodyear catalogue before making a purchasing decision.
the company was appointed the sole distributor for “For example, you'll often find the belt or hose you need in
Goodyear-branded products in South Africa. As such, our extensive automotive and light truck product line-up,
RAM was ideally placed to bring to market Goodyear’s including Gatorback Poly-V belts which have been proven in
Fan & Poly-V Belts, Automotive Timing Belts, Rubber the tough environment of V8 Supercar racing both here in
Coolant Hose, Rubber Fuel Line Hose, Heater Hose, Air South Africa and the US.”
Brake Hose, Air Conditioning Hose, Air & Multi-purpose
Hose, as well as Hose Clamps, Heavy Duty Belts and Air
Springs. So successful was RAM that Goodyear decided to
purchase the company outright in 1991 and the bold red and
black ‘RAM’ logo became synonymous with Goodyear’s wide
range of quality offerings. On 1 August 2007, Global private
equity firm, The Carlyle Group, closed its purchase of the
Engineered Products Division of The Goodyear Tyre &
Rubber Company. The transaction was valued at US$1.475
billion. Through a long-term license agreement, Goodyear
Engineered Products have continued to carry the Goodyear
brand, while the legal name of the company changed to
Veyance Technologies, Inc.

Colin Preddy, General Manager for RAM (now under the An engine running Goodyear RAM quality timing belts fan
umbrella of Veyance Technologies Africa), says the company’s belts and power transmission belts
conduit to the market is - and always has been - primarily
through the major national automotive spares outlets and the Preddy adds that RAM’s Timing Belts as well as certain of its
larger independent spares outlets. RAM also supplies product Poly-V Belts are sourced from Goodyear Engineered Products
to export houses for shipment to other parts of the globe. plants worldwide. All Fan Belts plus the majority of Poly-V
RAM is a major supplier to the local automotive original belts are manufactured locally at Goodyear’s factory in Uiten-
equipment market (OEM) and many of its products are found hage - making the company the only local manufacturer of
on locally manufactured or imported vehicles which form part Fan and Poly-V belts.
of manufacturers’ local model line-ups. “As the Automotive
Division of Veyance Technologies Africa, RAM understands “These belts, which pass the toughest of tests on the race
how important it is for vehicles destined for the South African tracks every weekend, are ideally suited to everyday use on the
market to be fitted with dependable, quality Goodyear- road. This proven, ‘track-to- street technology’ is just one more
branded parts that have been tried and tested under harsh way we provide products that help our reseller partners to
conditions,” he says. “To this end the RAM team remains boost their businesses.”
committed to providing the levels of quality and service that
have always set us apart from our competitors. We believe it Tel: +27 011 248 9443
is our duty to provide a solution rather than simply to supply Fax: +27 086 636 8163
a product.” Web: www.goodyearep.co.za

page 98
Z is for Zoom!
Zwartkops Raceway, or ‘The Big Z’ as it is colloquially known, is an historic racetrack situated in Pretoria,
Gauteng. Zwartkops held its inaugural race on 18 November 1961, and the track has been a landmark ever
since. That is not to say there have not been changes though; there have. The days of high-speed, minimal-
cornering and somewhat simplistic racing are over, and racetracks have had to move with the times.

A
s technology progressed, so did race cars, and thus Benz Dynamic Driving, Sasol Advanced Driver Programme,
acceleration, top speed, traction and downforce Zwartkops Driving Academy Centre and Zwartkops Off-Road
all improved too. This meant that tracks had to Academy. Not a bad resume by any means...
become more technical, which led to many tracks
being redesigned. For the sake of modern racing It is clear that Zwartkops Raceway places a lot of emphasis on
as well as safety requirements, some tracks were slightly altered advancing the driving talent in South Africa, and this goal is ac-
while some were dramatically revamped, but racetracks of the tually stated in the track’s charter. “Zwartkops is for the devel-
modern era necessitate more corners, more overtaking oppor- opment of domestic talent,” the charter states, “and to help put
tunities and a more technical approach to racing. All of these South Africa at the forefront of automotive technology.”
changes led to close and exciting races, something Zwartkops
Raceway is known for. The old Zwartkops track, two km in Not only is Zwartkops forward thinking in terms of developing
length with only three braking points, had to give way in 2001 talent in South Africa, but in a business sense too. 25% of
to the current 2.4 km track that has five braking points and, in Zwartkops is owned by a trust for empowerment initiative,
the modern day, racing at Zwartkops is better for it. while the remainder is owned in part by the Zwartkops Owners
Club and private investors.
The Big Z is home to a great number of automotive events,
whether it be racing series, advanced driving courses or motor- Those at the helm of the track’s management assert some no-
cycle events. One of the many feathers in Zwartkops’ cap is the table achievements, some of which are key in terms of the track’s
fact that it hosts International Sports Prototypes (ISP) races. charter. One of these is saying that Zwartkops is “One of the
These ISP races include a vast range vehicles from the glory days most advanced and biggest driver training and education centres
of race cars, including Porsche 911s, 917s, Lola T70s, Chevrons, in Africa.” And all of this lies just off the R55 in Pretoria, at
Ford GT40s and yet more American V8 muscle in the form of Zwartkops International World of Motoring; The Big Z.
Mustangs, Camaros and Chevrolet Can-Ams. Zwartkops also
plays host to some more modern racing series such as Thunder-
bikes, SuperHatch and SilverCup. Aside from racing series, The
Big Z houses the BMW Motorrad Rider Academy, Mercedes-

page 99
INDEX

AAMA 65 KAPCI Coatings 87


AIDC 66 Launch Tech Co 51
Atlas-Copco 67 Lazarus Motor Company 53
AutoZone 39 McCarthy 88
Barloworld 41 Midas 24
Behr-Hella 68 MISA 89
Brake Hose & Component Supplies 69 Moto Health Care 55
Bridgestone 43 Nissan 33
Caelex 70 Permatex 90
Capricorn Society 71 RAM 98
Castrol 72 Rex Diff and Gearbox 57
CI Auto 45 RMI 1
Commercial Auto Glass 73 RMI Code of Conduct 101
Diesel-Electric 74 Robert Bosch 9
Distributor Remanufacturers 75 SA Warranties 59
Dynamax Auto Components 76 Schaeffler Group 91
Econometrix 77 Shatterprufe 92
Euroquip 78 Tenneco 93
Federal-Mogul Aftermarket 47 Timken 94
Ferobrake 79 Tonii 36
First National Battery 80 TopClass Automotive 95
Ford Motor Company 81 Toyota 61
Forsdicks BMW 82 Traxx 96
General Motors 83 Vally's Auto 97
Grandmark International 49 Volkwagen SA 63
Harley-Davidson Durban 84 WesBank 19
Henkel 85 Willard 29
Imperial 86 Zwartkops Raceway 99

Copyright 2009 • Trilogy Publishing • P O Box 102 Wendywood 2144 Republic of South Africa
All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means, including information storage and
retrieval systems, without permission in writing from the publisher, except by a reviewer who may quote brief passages in review. Trilogy and the
RMI 101 design are protected by common law in South Africa and in the countries in which they are distributed.

Printed in the Republic of South Africa by CTP Book Printers.

page 100
RMI Code of Conduct
Accredited members are party to the RMI Consumer Code of Conduct in terms of which the consumer is assured that
an accredited member undertakes to:

• Sell his/her quality products and services at a fair and reasonable price;

• Honour both in letter and in spirit any guarantees applicable to products and services sold by them;

• Acknowledges that, should there be a dispute between a consumer/customer and our member which could not be
amicably settled at Management level, the consumer/customer has the right to refer such dispute to the RMI for
investigation;

• RMI's Consumer Services divisions are deployed countrywide;

• Professional intervention ensures a proud record of high success rate in dispute resolution.

Should you be a registered RMI member but not have your Code of Conduct, please contact Killy Scott 011 886 6300 or
Killy.Scott@rmi.org.za

RMI Objectives
• To promote, protect and encourage the interests of members and the motoring public by setting and maintaining
proper standards of service and ethical trading conditions in the industry;

• Facilitates the settlement of disputes between members and their employees, members and the motoring public by
conciliation/mediation/arbitration;

• Regulates relations between members and their employees and/or trade unions and protects and furthers the interests
of members in that regard;

• Promotes, supports or opposes when necessary, any proposal, legislative or other measures affecting the interests of
members;

• Affiliated with and participates in the affairs of other bodies sharing common interest with RMI members (i.e.
NAAMSA, NAACAM, SABS, DTI, etc.);

• To maintain high standards of business ethics and service delivery to the motoring public by members of the RMI,
and where necessary provide upliftment programmes to improve the knowledge and professionalism of members.

page 101

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