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2 Nothing Beats Heritage

14 An Intelligent Hybrid
26 Hegemonic haste
34 Seeking the Devil
66 Peripatetic Partinform
84 F1 Title Race Hots Up!
The Phoenix

Nothing Beats Heritage


Take a look at this month’s cover, and what does it say to you? A simple picture of a spark plug may be
your reaction, but look beyond the physical, and take in the symbolism of a product that has not changed
for 102 years, and counting. This is the plug that powers the Model T Ford, and it is still in production.
The amazing thing is that not only has this plug not changed for this considerable time, its original pack-
aging stays the same, and the ethos behind the development of this plug remains relevant today. A picture
tells a thousand words, and a few hundred of these words can tell you that
the automotive industry is rich in heritage. ABR salutes the pioneers of the
nineteenth and twentieth centuries, and places great store in the pioneers of
the twenty-first century, who will be standing on the shoulders of giants.

T
he challenges facing the industry today are radically dif-
ferent to those pioneering days, not least the need to
develop responsibly. Upon reflection, the differences are
not as big as originally thought. Global warming, and
the driving need to go green, would have piqued the interest of
Henry Ford and his fellow travellers, and what we need today is a
new generation of Henry Fords, who will revolutionise the indus-
try with fresh thinking and innovative solutions. KISS (Keep It
Simple Stupid) may be part of the answer, so this single photo- defining days. The ideas are out there, but just need to be taken
graph of a spark plug re-ignites our pride in our heritage, and our from brain wave to theoretical application, and eventually reality
faith in the future. The brand name of this plug is indeed appro- in practice. ABR’s readers form a significant block of the “cultural
priate, as all of us who want to leave something worthwhile to our creatives”, and we trust that the cover photograph and the cover
grandchildren should become Champions of the Future. There are feature on page 16 will inspire and spark our readers to become
many initiatives for change in which we can participate, whilst still part of the ideas revolution, and to come up with solutions whilst
not forgetting our roots. There are also many ideas that have yet to keeping their feet on the ground. So go for it!
see the light of day, which will also come from us remembering our

Whilst this issue of ABR is jam packed with information, our monthly contribution
cannot do justice to the wealth of information available on a daily basis, so don’t
forget to get your daily fix on our website.
Make sure that you make regular visits to www.abrbuzz.co.za

2 October 2010
Contents

14 19 69

29 74
2 The Phoenix 48 Tyre Talk
6 What’s the Buzz 50 Top Class Topics
12 Cover Feature 52 Capricorn Insights
10 Show Time 54 Corporate Conscience
12 AAMA Alert 56 Entrepreneurship
14 Vehicle Launch 58 ITS South Africa
16 Cover feature 59 AIDC Quiz
20 Personal Profile 60 Wilde Things
22 Auto Topical 62 Burford on Brands
26 Frankly Speaking 63 Consumer Protection Act
30 Tony’s Take 64 Industry Update
32 The Chery Story 66 Partinform
34 Weighty Issues 78 Midas Awards
36 Training Initiatives 82 Motorsport Sponsorship
38 Parts Pricing 84 Fast Wheels
40 Tyre Safety 85 Midas Sport
42 Intelli-Driving 86 The Fink
43 e-CAR 88 The Last Writes
46 Customer C.A.R.E.
The publisher and contributors have done their best to ensure the accuracy of the articles and cannot accept responsibility for
any loss or inconvenience sustained by any reader as a result of information or advice in Automotive Business Review. The
information provided and opinions expressed in this publication are provided in good faith and do not necessaraly represent
the opinion of the publisher. No article may be reproduced in any form without the prior written permission from the pub-
lisher, except for the quotation of brief passages in reviews.

Publishing Editor Hogg, Gilbert Editorial Office Design and Reproduction


Graham Erasmus Keeg, Howard 81 Alma Road, Wendywood Jackie Kraft
Cell: 083 709 8184 McCleery, Roger Tel: 27 11 656 2198 Tel: 012 997 6946
Phitidis, Pavlo Fax: 27 11 802 3979 Fax: 012 997 6987
Editors at Large Twine, Tony E-mail: bigheart@iafrica.com E-mail: jackie@kraftinfo.co.za
Alwyn Viljoen Wilde, Fingal Website: www.abrbuzz.co.za
Paul Collings Printing
Published by Subscriptions and Data Business Print Centre, Pretoria
Intelli-Driving Editor Trilogy Publishing Management Photo Credits:
Eugene Herbert Trilogy Trading & Promotion Quickpics • Motorpics
Advertising Sales P O Box 69
Correspondents Marlene Erasmus Wendywood 2144 Official Mouthpiece of
Beeton, Frank Cell: 082 837 2668 Tel: 27 11 802 6020
Borlz, Baron Claude E-mail: bigheart2@iafrica.com Fax: 27 11 802 3979
Burford, Adrian Graham Hudson-Lamb E-mail: bigheart2@iafrica.com
Foster, Gavin Cell: 083 325 4146
Gamble, Austin E-mail: bigheart3@iafrica.com
Horn, Gerhard
4
What’s the Buzz?

Suzuki Records 10 000th Sale


Suzuki Auto South Africa (SASA) had every reason to celebrate in September: the
company recorded its 10 000th unit sale, only 29 months after commencing oper-
ations in South Africa. The milestone not only confirms Suzuki Auto SA’s status as
a significant player on the SA motoring landscape, but also underscores the grow-
ing demand for the marque’s innovative range of passenger cars and all-terrainers.
Suzuki Auto SA was officially launched in June 2008 with a choice of two model
ranges: the fleet-footed, stylish Swift subcompact hatchback, and the trend-setting
SX4 lifestyle hatch. At the time, the retail and service network consisted of just 15
dealers countrywide, which has now grown to 23 with two more dealerships open-
ing soon. Since then, the brand has shown consistent growth, despite the far-reach-
ing impact of the global recession, which saw the SA market slump to levels well
below those envisioned by Suzuki Auto SA’s initial business plan. “We are both
ecstatic and humbled by the on-going, growing demand for Suzuki’s range of vehi-
cles,” says Kazuyuki Yamashita, managing director of Suzuki Auto SA. “It vindicates
our decision to do business here”. Since mid-2008, the Suzuki model range has
already grown to include the Jimny 4x4, the Grand Vitara all-wheel drive SUV, and
the Alto supermini hatchback. In addition, the SX4 range has been updated, and
now includes both all-wheel drive and CVT versions. The 10 000th Suzuki to be
sold locally under the auspices of Suzuki Auto SA was a Swift GLS m/t which was
handed over to its lucky owner, Ms. Melanie Savvides, by Suzuki Johannesburg
South on Thursday 23 September 2010.

TYRE VIBRATION HAS MANY CAUSES


Tyre vibration can result from many causes and may even be a warning sign of impending tyre
failure. This is according to Mandy Lovell, Public Relations Manager for Bridgestone SA. She
said that damage incurred during the tyres life was the most common reason for tyre vibrations.
“Tyres are manufactured to stringent quality control and dimensional standards, and nowadays
it’s almost unheard of for a factory defect to be the cause of tyre vibration,” she commented. A
common reason for tyre vibrations is external tyre bulges caused by air leaking through the tyre’s
construction from an internal cut. Such cuts often result from driving into pavements or
through potholes. An additional cause of vibration may be that the tyre is beginning to disin-
tegrate due to extreme road damage or severe under-inflation. “If you find your car has a vibra-
tion or ‘shimmy’ while driving, don’t automatically assume the worst,” Lovell commented.
“One of the most common causes of vibration is incorrect wheel balancing, which is simple and
cheap to rectify. But it’s also possible that your problem is being caused by worn shock
absorbers, wheel bearings, or suspension components,” she added. She advised motorists who
were struggling with a vibration problem to first check the basics like tyre pressures and wheel
balancing, as well as ensuring that no tyre damage is present. “If that doesn’t solve the problem, consult a fitment centre or workshop. Vibrations may
be more than a tyre problem – they may be a warning that safety-critical components are reaching the end of their service life,” she concluded.

6 October 2010
What’s the Buzz?

World Record for the Mazda MX-5


Mazda has broken a world record with its cult roadster MX-5,
and entered the Guinness Book of World Records™. On 18
September 2010, 459 officially recognised vehicles formed the
longest continuous MX-5 parade of all time at the grounds of
the UNESCO Zollverein World Heritage site in Essen – clearly
breaking the former world record of 249 vehicles set in New
Zealand. The last seats in MX-5 world record parade were auc-
tioned off at eBay for a good cause. This included co-pilot next
to German actor Ralf Bauer, and one other Mazda MX-5.

BMW Classic branches out into


classic car trade
2010 Paris Motor Show
BMW Classic is offering classic BMW automobiles for sale. A Highlights: Alfa's innovative
BMW M1 and a BMW 3.0 CSL are to be sold by Bonhams auc- TCT twin clutch automatic
tion house in Dubai this October. The two rarities hail from the transmission
company’s own collection and rank among the icons of BMW’s
automotive heritage. The auction of these two cars by Bonhams
in Dubai will be the first time any model from the company’s
own collection has been put up for sale.

KenKen 9 x 9
How to Play:
Like Sudoku, even though difficulty may vary from puzzle to puzzle, the rules for
playing KenKen are fairly simple:
For a 3 x 3 puzzle, fill in with the numbers 1-9.
• Do not repeat a number in any row or column.
• The numbers in each heavily outlined set of squares, called cages, must combine (in any
order) to produce the target number in the top corner of the cage using the mathematical
operation indicated.
• Cages with just one box should be filled in with the target number in the top corner.
• A number can be repeated within a cage as long as it is not in the same row or
column. Answer on page 30

8 October 2010
Show Time

ce o f Tra de
Relevan forc ed at
in
Shows Re nika
Au tom ec h a
Howard Keeg takes a look at the
Automechanika 2010 held in Frankfurt am
Main from 14 to 19 September 2010

I
n the past I was one of the more vocal sceptics of the
relevance of trade shows, but after recently attending
the Automechanika Frankfurt a.k.a. the world’s lead-
ing trade fair for the automotive market, as the guys
from Messe Frankfurt call it, and an objective analysis
of what I had experienced, I can now honestly say
that as a platform for someone to say something or
talk to a broad audience of current customers,
potential customers, and customers you haven’t
even dreamed of, there is no better way.

This analysis applies to all well run shows, but


the Frankfurt event dwarfs them all. Just take in
these stats – 4 486 exhibitors from 76 countries
from Albania to Vietnam, covering parts & sys-
tems, repair & maintenance, accessories & tun-
ing, service stations & car wash, plus IT &
Management. This bi-annual event attracted
155 000 visitors from 180 different countries.
This meant that for six high intensity days the
show halls at Messe Frankfurt were trans-
formed into a multi-national and cosmopoli-
tan glad fest and talk fest, and naturally, some
big deals were done. Space constraints pre-
clude a full analysis, but over the next couple
of months I shall try to bring a flavour of the
show to ABR’s readers. For now, our thoughts
turn to Automechanika South Africa which
will be held at the Johannesburg Expo Centre
from 9 to 11 March 2011. This show will
never reach the dimensions of its German
juggernaut cousin, but it does play an impor-
tant role for the automotive market in South
Africa, and particularly for those who are
interested in doing business north of the
Limpopo. Add to this the planned two day
conference being arranged by the RMI
(Retail Motor Industry Organisation) which
will run in conjunction with the show, and
the relevance of Automechanika SA becomes
even more significant. More on this in future
issues of ABR.

For those wanting more information go Pula Dippenaar and Philip Otto were at the Automechanika in
Frankfurt to drum up support for the South African event.
to www.automechanikasa.co.za.
10
October 2010
ALERT
AAMA CREATES AWARENESS OF THE ISSUES OF THE DAY

Gotcha!
“When it comes to vehicle maintenance, there is a tendency towards consumers trying to save a few Rands in
their initial determination. There is nothing wrong with taking your vehicle to an independent workshop as
opposed to an OEM authorised workshop, and whilst it is tempting to go for cheaper replacement parts dur-
ing vehicle service, be warned that if those counterfeits parts are installed, vehicle performance, reliability and
your safety are severely compromised. In addition, be warned that parts displaying a reputable company logo
on them may not always be the real thing. These parts termed counterfeit are manufactured by unscrupulous
people using inferior products to produce the parts. They also replicate reputable-brand manufacturer identi-
ties by reproducing their logo/branding onto their products/packaging”.

W
e have been banging
on about counterfeit
parts in quite a few
AAMA Alerts this
year, and for good rea-
son. The problem is; what does the man in
the street do about it, particularly if he has
suspicions that he has bought a pig in a
poke? Of course, he could go to the near-
est police station, and lay criminal
charges, or employ an expensive lawyer to
pursue the case. Those with a more dra-
matic bent may even go as far as to
employ a gumshoe (private detective for
those not familiar with Peter Cheyney
novels) to do some investigative work. But
for those living in the real world the best
option is to go to the RMI website at
www.rmi.org.za and to click on
Counterfeit Reporting (third from bot-
tom on left hand side, just above
Consumer Protection Act), and to fill in
the fields as designated. The opening
quote comes from this webpage, and the
RMI (Retail Motor Industry
Organisation) has created this reporting Twala says that all RMI members have to taken, appropriately and accordingly.
method to allow for inexpensive whistle live by the constitution and rules of the Even if the misdemeanour has been car-
blowing. You do have to provide your RMI, and they also have to accept the ried out by a non-RMI member, this
details, so if you want to remain anony- sanction placed on them if found guilty of information is relayed to the manufactur-
mous or provide more detail, alternatively an offence. If a member has been caught ers whose names are being misused, for
you can contact Twala Boco on 011 886 doing something naughty, i.e. dealing in action from their side. Thus, the RMI
6300 or e-mail twala.boco@rmi.org.za. counterfeit product, this matter is dis- Counterfeit Reporting mechanism is an
cussed at the national executive meeting effective means to fighting corruption and
The quote ends with, “For peace of mind, of the MPEA (Motor Parts and counterfeiting, so make use of it.
always buy parts from RMI members”, so Equipment Association), a business asso- Counterfeiting is a cancer in our society,
ABR asked Twala Boco, Director of ciation incorporated into the RMI. and needs to be eradicated – and the good
Quality and Standards at the RMI, about Depending on the severity of the situa- citizens of this country can play a signifi-
the significance of this statement. tion, Twala assures us that action will be cant role in reporting any such activity.

12 October 2010
Vehicle Launch

An Intelligent Hybrid
by Gavin Foster
Some folk drive a hybrid car because it feels so different to anything they’ve ever been in before. It constantly
reminds them and their travelling companions that they’re wafting along in a complicated and expensive piece
of machinery that is greener and thus more politically correct than just about every other car on the road.
Honda’s new CR-Z Coupe caters for the rest of us, though – people who simply enjoy driving cars and don’t
like the experience tinkered with. The Honda’s clean and green, but it feels more like a sports car than a high-
ly sanitised exercise in environmental friendliness. It uses the electric motor as a useful adjunct to the primary
petrol engine rather than a replacement, and the six speed manual gearbox banishes any hint of the illusion
that you’re travelling in a four-wheeled scooter with a permanently slipping clutch. There’s no doubt that
Honda did the right thing by equipping the world’s first hybrid sports coupe with a crisp six speed manual
gearbox instead of the continuously variable transmissions that are commonplace on so many of its rivals.

T
he CR-Z’s primary power source is Honda’s tried and trusted 1,5 litre i-VTEC engine as used in the Jazz, with the valve gear
adapted to deactivate one inlet valve at low engine speeds for faster combustion, higher exhaust gas recirculation, and clean-
er burning. This and other small changes lead to the engine producing 84 kW at 6100 rpm and 145 Nm of torque at 4800
rpm. When more grunt is required the electric motor located between the engine and clutch chips in an additional 10 kW of
power, which isn’t that significant, but the 78,4 Nm of torque that the 100.8 volt nickel metal hydride battery brings to the party from
1000 engine rpm onwards most certainly is. The combined power and torque figures of 91 kW at 6100 rpm and 174 Nm from 1000
rpm to 1500 rpm (these figures don’t really add up as some grunt is lost along the way) place the little car’s performance up there with
that of a conventional 1,8 litre modern petrol-engined car, giving a top speed of 200 km/h and a 0-100 km/h time of 10 seconds. That’s
not particularly brisk for a sports coupe, but it’s very quick indeed for a car that sips a claimed average of just 5 litres per 100 km and
beats the new carbon tax with a CO2 emission figure of 117 g/km.

The Honda boasts what the factory calls the Integrated Motor Assist (IMA) system with a 3-Mode Drive System allowing the driver to
select Economy, Normal or Sport modes. Sport mode, with its snappier throttle response and tauter steering action is by far the most
fun, but for the morning school run the Normal mode would be more than adequate, and bumper-to-bumper traffic conditions would
make the very stingy Econ mode the setting of choice for anybody serious about saving fuel, money and a couple of trees every month.

The rest of the car is – well, it’s a Honda, which means a lot. It’s stylish, well built and equipped, practical – if you don’t need to cart
four adults around too often – and safe. Above all, it’s actually fun, which is unusual in anything so politically correct. At R299 900
with a 3 year / 100 000 km warranty and a 5 year / 90 000 km service plan it’s also not ridiculously expensive.

14 October 2010
Cover Feature

A Company
When ABR was casting around for a title to this cover feature, many options where available and
appropriate, from the heritage loaded “The Legend of Federal-Mogul”, to the descriptive “Technology &
Ingenuity”, and the evocative “Opportunity in Adversity”, or even the latest appropriate slogan, “Driving
Excellence”, but after long deliberation we plumped for “A Company in Motion”.

“A Company in Motion” was the slogan of Federal-Mogul in the Edward F. Lyon as a modest mill supply business, to be later
1970’s, coined because it represented at the time both growing merged with the Federal Bearing & Bushing Company in 1924 to
sales and the company’s rapidly expanding portfolio of industries. become Federal-Mogul, whose growth was driven by innovation,
ABR’s own heritage of Words in Action encourages us to see even acquisition, diversification, mergers, and internationalisation.
more in this description, as motion can also signify action and the Serendipity also played its role. The expansion of highways and
core functions of bearings, pistons, other automotive parts, and automobile manufacturing was critical to Federal-Mogul’s
indeed the automobile. Thus, Federal-Mogul can aptly survival in its formative years. The Federal Road Aid Act of 1916
be described as a company in motion, and to corral all these and the signing of the 1921 Federal Highway Act by President
reflections we can safely say that the legend of Federal-Mogul has Woodrow Wilson were two stellar events, both in America’s
been built on technology and ingenuity, whilst identifying automotive history and in Federal-Mogul’s relentless march to
opportunity in adversity, and culminating in a company that is prosperity. As the number of cars on the roads increased, and
always in motion. high temperatures and high speeds placed more stress on
bearings, research and development became key factors to
There is, of course, much more to Federal-Mogul than just a automotive component manufacturers’ survival. In hindsight,
collection of descriptive words. The Muzzy-Lyon Company was Federal-Mogul’s focus on R&D since 1929 was in equal parts a
founded in 1899 in Detroit, America by J. Howard Muzzy and masterstroke and a necessity.

16 October 2010
Cover Feature

in Motion
The company was also quick to recognise the need to service the
aftermarket, and thus by the mid 1920’s they had already entered
regeneration of Federal-Mogul, has become a rallying call for
what the company stands for today, and provides a fitting
the replacement parts industry, and by 1930 had begun the metaphor for its history of struggle and triumph. But the true
extension of their branch network with the aim of improving story of Federal-Mogul is its success built on the key pillars of
service levels to the burgeoning car park across the width and marketing and distribution, and the identification with the needs
depth of the emerging powerhouse of the USA. of the customer, epitomised by CEO at the time Dennis
Gormley’s announcement in 1990 that “the elimination of time
Not that it was all a bed of roses. To get to where it is today, in dealing with the development, manufacturing, distribution
Federal-Mogul had to survive two world wars, a depression, big and administrative needs of our customers is our major priority”.
and small recessions, labour disputes and the rise of unionism in This strategy of time-based management rather than cost-based
the 1930’s and militant labour activism in the 1960’s, various management, high quality, outstanding customer service
other challenges, and most recently, Chapter 11 bankruptcy. The and continuous improvement, still resonates strongly in the
filing for voluntary protection under the Chapter 11 bankruptcy organisation, and will be the main ingredient of future success.
code in October 2001, and the subsequent reorganisation and

History, Innovation, Invention, Longevity,


Heritage, Perseverance, Sustainability
– in one picture

T
he cover photograph signifies many things. Firstly, it shows the heritage of Federal-Mogul. Secondly, it shows
continuity and sustainability. Thirdly, it makes the statement that good design is everlasting. This photo is also a
strong testament to Federal-Mogul’s commitment to the aftermarket. Over 100 years after the Champion Spark
Plug Company produced the first plug for Henry Ford’s iconic Model T, Federal-Mogul is still manufacturing the
identical plug, packaged in the original box, and in the original wrapping, and shipping this product from America
to local Model T Fords and beyond, servicing the hundreds of Model T Ford associations and clubs across the
globe. The first Model T Ford left the factory on 27 September 1908, whilst the last Model T Ford was manufactured in 1927.
The significance of this car was that it was the first automobile to be mass produced on an assembly line with completely
interchangeable parts, including the spark plug. And finally, this picture tells a thousand words, demonstrating the history and
heritage of Federal-Mogul, a saga of growth built on innovation and acquisition. Federal-Mogul purchased Cooper Industries Inc.
in 1998, and by so doing bought a company that was founded in 1833, but which only came of age in 1989 when it acquired the
Champion Spark Plug Company in that year, a company with its own unique heritage, having been founded by Albert Champion
in 1903.
This is not the actual size -
in fact, it is much smaller

Contrast the Model T


plug with the modern
plug used in today’s
Formula 1 cars –
which disproves the
adage that size counts.
The Model T had a
top speed of 72 kph;
whereas today’s
Formula 1 cars can
reach 415 kph on a
long straight.

October 2010 17
Cover feature

Supporting Motor Racing

M
otor racing was popular in the United States even before there were race tracks. Henry Ford was one of the motor
racing pioneers, so it is not surprising that automotive manufacturers often entered the early races as testimony
to their cars’ performance. Component manufacturers were not far behind, as makers of tyres, shock absorbers,
headlights, bearings and other products advertised their victories. Federal-Mogul was a vibrant part of this activity,
and many of their ads during the 1920s and 1930s proclaimed the success of racing cars using Federal-Mogul bearings.
Federal-Mogul Aftermarket Southern Africa continues this tradition in their own inimitable way, focusing on young talent and
nurturing them for greater things. Taking a leaf out of the Champion Young Racers Programme, which was initiated in America and
Europe in 2007, Federal-Mogul Aftermarket Southern Africa emulated this in 2008 and chose the Engen VW Polo Cup to nurture
young talent, and has had success with Gennaro Bonafede and Devin Robertson, young racers who will go on to bigger things.
Federal-Mogul also looks for other avenues to promote these goals, and as a platform for their high performance parts.

18 October 2010
Cover feature

Driving Excellence – the Legend of Federal-Mogul

I
n 1999, to celebrate 100 years of innovation in
automotive markets, Federal-Mogul commissioned Jeffrey
L. Rodengen to write a detailed history of the company.
This book, titled “The Legend of Federal-Mogul”, has
become a collector’s item, and makes for an enthralling
read. Now, 11 years later, the legend lives on, allowing
Federal-Mogul’s President and Chief Executive Officer, José
Maria Alapont, to stand up at the Automechanika Frankfurt
at a press conference on the Federal-Mogul stand on
15 September 2010, and to proclaim that Federal-Mogul has
built on 111 years of automotive leadership, and remains a
leading supplier of powertrain and vehicle safety technologies
for all major original equipment manufacturers and that these
products are offered through globally recognised brands within
the worldwide aftermarket. Alapont gave a wide ranging
overview of the company’s activities, and touched on the
growing trend of price sensitive consumers who are looking
for a lower price point for vehicle repairs. He said that
Federal-Mogul is addressing this dynamic through major
strategies which leverage F-M’s extensive global presence,
customised according to specific regional market differences.
Alapont ended on an upbeat note, “Federal-Mogul has a
leading and dynamic original equipment and aftermarket
presence in the global automotive markets. Our customer,
product and market diversity is a strength that can be leveraged
by our customers to increase their competitiveness and response
to market trends.

José Maria Alapont


makes a point at the
press conference on
15 September 2010

No more than 5% of our annual revenue comes from any single


customer, and our products are present on over 250 vehicle
platforms and 700 powertrains currently in production. We are
financially strong, prepared for the future and ready to support our
leading customers as they embrace the complexity of future vehicles
and powertrains, both foreign and domestic, in stable and mature
markets, and in the developing BRIC and other markets. In
summary, F-M is a world-class, leading and diversified company
capable of generating Sustainable Global Profitable Growth, with
our strong global presence, extensive portfolio and deep technical
capability”.

October 2010 19
Personal profile

Q&A DIETER HORNI


by Roger McCleery MD OF CONTINENTAL TYRE

C
ontinental Tyre (previously Gentyre) opened for business 24 years ago in South Africa when the first high performance tyres
appeared on locally manufactured Mercedes Benz and Volkswagen saloon cars. Since that time Continental tyres built in Port
Elizabeth to German standards, are the only tyres recommended by all South African manufacturers for fitment to all their
models. Continental tyres hold every South African high speed and endurance record for cars and bakkies. They have won
18 South African Production Car titles on standard road-going tyres. An Opel Rekord travelled 600 000 kms on a Moon Mission in
one year. Conti also manufactured the highest speed rated tyre ever manufactured in this country for passenger cars. They developed a
hard-wearing white sidewall taxi tyre with the right construction for our roads and overloading. The company was also the first to design
and make a recreational vehicle (RV) on/off road tyre for use in this country. At the other end of the scale, Continental Tyre is the only
Tyre Company to make a racing slick tyre with compounds suitable for South African motor racing. Standard truck tyres were also pro-
vided for Super Truck Racing Internationally by Conti with not one failure in twelve years, despite speeds of 160 kmh. Now firmly
established as one of the Big Four International Tyre Companies in South Africa, Continental Tyre has always had a common denom-
inator – the MD is an experienced tyre man. The latest incumbent with a lifetime of tyre industry experience is Dieter Horni (59), who
hails from Frankfurt in Germany.
So how did you find Continental Tyre went through a year of overall training,
and South Africa when you got here? particularly in production, customer serv-
Very exciting. It is different, and a new ice and central order desk. From there it
experience with varied regulations for was into Sales in Frankfurt and here I
tyres. You have to have an open mind to joined the then Controlled Distribution of
know this business, as it is most complex in Continental AG - Vergoelst. After being an
South Africa. Area Sales Manager for 3 years I was
Continental Tyre going forward? responsible for Marketing until the end of
We are working on a lot of things out of 1989.
our state of the art facility in PE. We want Then you went to another company?
to improve and progress our Conti Partner I went to Pirelli for four years from 1990 to
dealers which have been successful over the 1994 and enjoyed another culture and the
last few years. We want a committed Italian way of thinking. Eventually I head-
Partner to influence the market and to go ed up Distribution for Germany. After that
after every sale in an intelligent way. it was back to Continental. I went into the
Continental has improved its distribution commercial vehicle tyre business looking
to make it more efficient in South Africa. after sales in Southern Germany, then all of
New product coming? Germany, as the most important market in
Well, we are sole suppliers for high per- Europe , later also in addition responsible
formance Mercedes Benz SLS sports car for Austria and Switzerland, the so called
with its 19” and 20” low profile, D-A-C-H Region
ContiSportContact 5P tyres. The car is fit- What made you come to South Africa?
ted with the highest speed rated tyres we Since the late 60’s at school it was my
make. A new locally made range of heavy On a personal level, where did you dream to come here. In 2001 I made my
duty truck tyres is in the offing. It features grow up? first visit to South Africa, to Guguletu, PE
the latest tyre technology that will give In the town of Wetzlar, about 60 km north (invited by Dr. Reese a former MD of
truck operators more mileage and better of Frankfurt. It is a town famous for Leica CTSA) and Cape Town, and I was hooked.
fuel consumption due to its low rolling cameras and binoculars and also Buderus Any mentors in your career?
resistance, and of course, lower CO2 emis- heating systems. Yes – three. The two former Chancellors
sions. This will suit African conditions School? Helmut Schmidt and Willy Brandt, who
with its special needs. In Wetzlar where I wanted to be an histo- were symbols for an open mindedness to
Tyres you manufacture at the rian. change in Germany in the 70’s. There was
Continental Factory in PE? Further education? also Alfred Herrhausen, the former CEO
We have + 240 articles of all makes and First I went to do my military service, was of Deutsche Bank, who was killed by the
sizes of tyres for cars, bakkies and heavy promoted to lieutenant on missiles. From Red Army faction. His philosophy, which I
commercials and buses, plus of course there it was on to university, where I got a have always followed, was - What we think
many tyres for specialised needs and uses degree in Economics. – say. What we say – do. What we do –
for the likes of forklifts, mining vehicles Sports? be.”
and tractors. Any additional mould needs a Married?
Handball was and is my passion but I also
minimum of 2500 tyres to justify its cost. Yes, to Monika. I have four children.
participated in rowing and played soccer
Anything over and above the tyres we Victoria (9) and Frederic (6) in South
and was a coach of a youth team.
make we import from Continental Tyre Africa with us. And two in Germany –
How did you get into the tyre business?
Factories situated around the world. Felix (26) just finished his diploma in
In 1978 I applied for a job in the
Exports? Logistics and Henrietta (29) is writing her
Marketing Department of Continental
We export to sub-Saharan Africa through doctorate in economics
AG. My application was successful and I
distributors there.
20 October 2010
Auto Topical

Will a Weaker Rand


Really Help?
After representations in various shapes and sizes to government departments and agencies from
interested parties in the mining and manufacturing sectors of the economy, Finance Minister
by Tony Twine, Pravin Gordhan made a guarded statement about National Treasury’s intention to assist the
Senior Economist,
Director – Reserve Bank to accumulate foreign exchange reserves, with the heavy proviso of “when it is able
Econometrix to do so.” The intention, it would seem, would be to weaken the foreign exchange value of the
(Pty) Ltd
Rand, assisting those industries’ Rand revenues and export sales opportunities.

“When it is able to” may be interpreted in income statement, but who cares because exchange rate environment far worse than
many ways. Presumably such a capacity the foreign currency denominated profits the average for 2009, prices of imported
does not include periods when the local of the unit would fall, as would the profits vehicles or vehicles built predominantly
government is borrowing to cover its own already being generated by all the pre- from imported kits, would not leap
deficits, and would effectively be forced to existing export values when translated to upwards, and consequently any decrease in
buy US government paper to store the for- foreign currency units. demand for OE imports and imported
eign exchange reserves which the Reserve vehicles, would not react in volume terms.
bank would be accumulating. This looks Component exports could react in sever- Imported replacement parts would proba-
like a difficult political point to sell back al ways. If hard currency prices for exports bly escalate sharply in Rand terms, but
home at the Politbureau. remain the same, then there are more these are grudge purchases, rather than dis-
Rands for local producers, but no volume cretionary ones, and their volumes would
But, let us assume for a moment that the increases. The Rands may go to support be unlike to fall under increasing price
Rand could be magically weakened. 5% already inefficient production practices in pressure.
or 10% weaker would not make much dif- SA, or pad the pockets of local sharehold-
ference, so let us consider something ers, or provide a slimmer padding for for- Regrettably, a weakening of the Rand can
meaningful in the order of magnitude of eign shareholders because of the weakened be seen to provide some short term relief to
20 to 25%, which would put the Rand at, exchange rate. Alternatively, foreign cur- an undefined mixture of interests, made
say, R9.00/US$. rency export prices could fall, export vol- up of equity holders and employees of the
umes increase, and the South African fac- component side of the local automotive
The attached table profiles the South tors of production not benefit because of manufacturing industry, but this would
African Automotive Sector’s MIDP linked Rand revenue increases proportionally only be temporary, until rising imported
imports and exports since 2005. A curso- smaller than the valuation of the Rand. goods prices pushed up the general price
ry inspection shows an international trade level of confronting all South Africans,
deficit for the industry of R18.9bn during Meanwhile, because the suppliers of both eroding those temporary gains. Wherever
2009, when the US Dollar bought R8.28. locally assembled and imported vehicles to the next free lunch is being served, it does
the domestic market are already cost and not seem to be wrapped in more Rand per
Now assume the trade position has zero price structured to survive in a foreign foreign currency unit.
exchange rate price elasticity, and move
the Rand/$ rate to R9.00 from the 2009
actual level of R8.28. The automotive
trade deficit would then be valued at
R20.5bn for 2009 volumes. The big
question is, what would happen to the
volumes if the Rand was too weak? It is
certainly not clear that vehicle exports
would increase in number as trade in the
global supply chains is probably not
denominated in Rands, so the price of a
South African made vehicle in Guatemala
would not change because the Rand is
weaker. More Rands would accrue in the
South African vehicle manufacturer’s

22 October 2010
What’s the Buzz?
THE STIG IS DEAD, LONG LIVE THE STIG - CASTROL
DRIVER RANKINGS SHOWS THERE ARE 767 BETTER
QUALIFIED CANDIDATES
The identity of the track hero, the Stig, has been revealed as Le Mans Series driver Ben Collins. Top Gear need not
panic though; since Ben currently sits 768th in the Castrol Driver Rankings, the world’s most comprehensive driver
rankings, there are in fact hundreds of other drivers who could happily qualify as replacements. Currently led by
Sebastian Vettel, the Castrol Driver Rankings include all of the major motorsport series including Formula 1, the
World Rally Championship and the World Touring Car Championship. Whilst the likes of Lewis Hamilton (4th) and
Sebastien Loeb (2nd) might not be able to find time to be the Stig, there are plenty of other drivers further down the
list that do have the right credentials. To see the full Castrol Rankings and register for weekly updates, please go to:
http://www.castroldriverrankings.com

ICELAND TO ANTARCTICA – ARCTIC


TRUCKS TO BUILD HILUX VEHICLES
FOR ANTARCTICA IN SOUTH AFRICA

Toyota South Africa Motors (TSAM) and Arctic


Trucks, the legendary converters of Hilux and other
Toyota products, have signed an agreement to convert
six South African built Hilux pick-ups for use in
Antarctica. Of these vehicles two will undergo full
AT44 conversions. Another two will be converted to
AT44 specification, but with full 6x6 configuration.
These four Hilux vehicles will operate as back up vehi-
cles in the gruelling Antarctic Ski Challenge to the
South Pole, to be held at the end of the year as part of
the Extreme World Races series. The fifth Hilux, also
to AT44 specification, will be built for the Indian
National Centre Antarctic and Ocean Research, while
Hilux number six will be built to AT38 specification.

October 2010 23
Industry Update

SKF South Africa’s Junior Lions - a roar to


be reckoned with at the Gothia Cup in Sweden

S
weden has been hosting the
Gothia Cup for the past 30
years and South Africa’s
winners of the SKF ‘Meet the
World Tournament’ South
Africa, the Junior Lions, who left
local shores to compete with some
of best juniors in the world,
played a game that thrilled sup-
porters that came to Sweden from
far and wide to watch the 2010
Gothia Cup. The Junior Lions
finished in the top 16 out of 144
teams, the spectators loved them
and they remained firm favou-
rites of a soccer crowd that
clearly recognised the talent, pas-
sion and heart that South African
youngsters displayed. The Junior
Lions received a rapturous wel-
come from proud South Africans
when they returned to local
shores on Monday 26th July 2010.

24 October 2010
October 2010 25
Frankly Speaking

by Frank Beeton
Hegemonic Haste
Earlier this year, I asked the question: “Why do motor manufacturers make such an issue of pursuing
global leadership, rather than just growing organically, and maximising profit?” Much of the discussion in
that particular article was prompted by Volkswagen’s much-publicised corporate objective of being
“World Number One” by 2018, and the well-documented trials and tribulations that have beset Toyota since
it arrived in the premier position.

I
t seems that I am not the only person to question the wis- Volkswagen is now investing serious money in its North American
dom of Volkswagen’s ambitions. Writing in the Detroit plant (due to commence production in 2011), and a new mid-
Free Press at the end of August, correspondent Mark sized sedan model specifically aimed at the US market. It is imper-
Phelan was somewhat more direct in his questioning of ative that it gets this strategy right, because a less than successful
Volkswagen’s “risky moves” than I had dared to be. He American enterprise could generate negative global consequences.
defined these as, and I quote: Although there is, superficially, very little similarity between
Volkswagen’s in-house North American venture and the failed
• “Spending billions of dollars on a new plant and vehicles for DaimlerChrysler partnership, it is important to recognise the cul-
the US, tural cross-currents that eventually brought down the latter. The
• Trying to buy Alfa Romeo from Fiat, volume potential offered by broader participation in the US mar-
• Threatening to shut down one of its own brands, and ket was also the main driver behind Daimler’s decision to engage
• Hiring engineers, designers and senior executives en masse”. with Chrysler, but the impact of inadequate performance in that
market generated enormous stress in the DaimlerChrysler family
The strategic actions to which he was referring, inter alia, relate to when the European “parent” was seen to be disadvantaged by the
VW’s new assembly plant currently under construction north of insatiable financial demands of the American “child”. VW is, of
Chattanooga, the unconfirmed reports that the German compa- course, a major volume player in the world market, so is unlikely
ny would like to prise Alfa Romeo from its current Fiat owner- to be as vulnerable to a mediocre American performance as
ship, reportedly unsuccessful efforts to redefine Seat’s image as a Daimler, whose exposure was raised to intolerable levels because
sporty Mediterranean brand (like Alfa), VW’s recent purchase of Chrysler’s volumes made up the majority of group global output.
a 90% shareholding in styling house ItalDesign, and the redeploy- However, the massive business swings that can occur in North
ment of Porsche management personnel across the broader group. America have the potential to put VW very much on the back
Phelan sums it up:” It’s virtually inconceivable that all those plans foot at inconvenient times.
will come off smoothly at the same time. The situation becomes
really fraught if several plans go awry simultaneously. Mistakes It is also interesting to note that VW intends to build 30% of its
can pile up catastrophically when corporate resources are American market sedan model with clean diesel engines. Unlike
stretched thin. Ask Toyota”. their European counterparts, Americans have shown very little
inclination to buy diesel cars up to now, and while companies
While the other elements listed here will undoubtedly play their such as Mercedes-Benz have made major Stateside efforts to edu-
part, the world leadership strategy leans very heavily on VW cate luxury car buyers about the efficiency of these engines, their
expanding its presence in North America, and this is where the impact on the broader market has been minimal. Americans have
main areas of risk apparently lie. The global production volume chosen to address their environmental and petroleum dependen-
gap between VW and Toyota in 2009 was around 1,5 million cy concerns mainly through petrol-electric hybrids, while looking
units, but in more “normal” conditions, this could be as much as forward to the imminent availability of plug-in vehicles.
3 million, which would require VW to increase the size of its base
business by nearly 50%. To do this fairly quickly, it needs to tap The diesel option still appears to be well off the radar screen. One
new market positions, such as that to be exploited by the Amarok of the more bizarre outcomes of Volkswagen’s “empire building”
“robust pickup”, and improve its performance in a seriously big is the recent announcement that group member Scania, has
incremental geographic market, with North America presenting signed a development agreement with Porsche Engineering
as the most obvious target. Phelan says: “The Volkswagen brand Group GmbH to develop the next generation of Scania
does not understand American buyers. There’s a disconnect truck cabs. This Porsche operation provides highly advanced engi-
between VW’s key models – the Passat and Golf – and what neering services in areas such as material analysis, structural test-
American buyers expect from VW and how much they’re willing ing, production equipment design and logistics for automotive
to pay for it. That was never more obvious than a couple of years and other industries. Stand by for one racy truck cab design
ago, when VW fruitlessly revived the Rabbit name because they coming up!
thought that was the way to sell more Golf hatchbacks”.

26 October 2010
What’s the Buzz?
Nissan1400 fever rocks Mokopane!
The infield of the Trever Els oval raceway just outside of Mokopane trem-
bled to the tune of meticulously tuned engines on Saturday 28th August, as
the sun glinted off a healthy crowd of South African legends each built to a
unique formula and specification, but sharing an important common bond.
The Nissan brand affixed to the nose, as well as a well-earned reputation for
total dependability and strength far beyond the cute but racy looks. Despite
one of the vehicles boasting a power output of 1000 horsepower on the
wheels, this isn’t a convention of throbbing GT-R supercars. No, this is
Mokopane’s homage to the epic Nissan 1400 bakkie, perhaps better known
as the venerable Champ. Although boasting dainty dimensions and a budg-
et list price, this vehicle also packs one of the largest hearts in the business,
and has been both trusted work partner and weekend toy for many of the
down-to-Earth residents of this small Limpopo community, and many oth-
ers like it, since 1971. This gathering of all incarnations of Nissan 1400 half-
tonner (model name B140) was arranged to celebrate this legendary LCV,
which endured for nearly four decades as the ideal dual-purpose work-and-play half-ton offering in the South African market. This lovable workhorse
was only recently replaced by the new Nissan NP200, now with an even larger, more robust load area than ever before but the same DNA. Whether
working or playing, the old B140 and new NP200 are peerless in their strength, reliability, and unique sense of panache when the time comes to kick
back and enjoy life.

AUTOMOTION: IS THIS INDUSTRY HEADED IN THE


RIGHT DIRECTION?
Automotive manufacturers have just come out of a damaging strike and labour has initiated additional
strike actions in the component and motor retail sectors. Against the backdrop of crippling public sector
mass action there is a tendency to ask questions about whether government, industry and labour have done enough to mitigate the effects of the reces-
sion. A key issue to be considered by the automotive industry is also whether all stakeholders are doing the right things. This issue will be hotly debat-
ed by a panel of labour and skills experts including Cedric Gina, President of the National Union of Metalworkers of SA at the AIDC's Automotive
Industry Conference 2010 (AIC). The Conference will again include strong representation from industry, government and labour to provide mean-
ingful and topical debate! This year's AIC will take place on 3 and 4 November 2010 at the Birchwood Conference Centre in Gauteng. Under the
theme 'Gearing out of the Recession - What's the Plan' the conference will address vital issues affecting the sustainability and growth of the industry.

28 October 2010
If the Tyre is lacking Air it reaches for the Phone
Continental is making driving safer and more economical for the future with a new applica-
tion that reports the tyre pressure directly to a smart phone. The vehicle electronic is connect-
ed wirelessly with the driver’s smart phone, therefore making speedy data exchange possible.
The Continental Interior Division’s “Filling Assistant” specifies the exact inflation pressure of
each tyre. So when adding air, the optimum tire pressure can be achieved, even when inflation
pumps at the filling station do not measure the pressure accurately. In addition, a brief honk
and blink signal can be given to confirm when the tire has been inflated to the correct pres-
sure level. Technical requirements for the system are a tyre pressure monitoring system with
the corresponding sensors in the tyre and factory-integrated vehicle electronics with a wireless
interface. First series production of the Filling Assistant in new vehicles is expected from 2013
onwards.

October 2010 29
Tony’s Take

Dumbstruck...!
Dressed up as it has been in the full regalia of demands for economic resources, the World
Cup interrupted strike season of 2010 has been a more intensely political affair than South
African employers have been used to since the 1980’s. The term “political” applies in
by Tony Twine
several senses, and is not intended to be disparaging, but more a statement of simple fact.

I
n the first place, economics is said to be the study and prac- but the stock build up that had been available before the strike at
tice of applying limited resources to best satisfy an infinite the assembly plants in July and August was not available as a
number and variety of wants and needs. Quite obviously, buffer in September because of the demands made by the
the fact that resources are limited indicates that only some pre-emptive buying ahead of the emissions tax introduction on
wants and some needs will be satisfied, and some of them rather 1st September.
less completely than others. Politics is the art of allocating those
resources to create the means of satisfying an identified sub-set of The political gain for both the strikes against the assemblers and
all the wants and needs of a particular public. This is as true of later against the component and retail ends of the automotive pro-
politics in social groups (including our marriages), as it is of poli- duction column are probably motivated by the inverse of the gov-
tics in corporate and business settings, as well as the politics of ernment sector strike – new motor sales volumes have increased
local and higher levels of government. well ahead of expectations during the first eight months of 2010,
and second quarter 2010 motor retail trade revenue was 17.7%
Able political leaders at all these levels, defined as those who higher than a year earlier. This has provided fertile ground for
survive any length of time, will keep an eye on both sides of the soliciting double digit pay increases. This is probably another
economic function, namely the available resources as well as the relatively shrewd piece of political timing in terms of cornering
wants and needs of their various publics. This desire for political resources for a year’s time and beyond, when sales and economic
survival by political players may point to the underlying reason for growth may not be anything like as spectacular as they have been
the tenacity of the public sector strike of 2010. so far during 2010

Just less than a year ago, at the Medium Term Budget Framework On a lighter note, a TV news producer contacted our office a few
speech of 2009, Finance Minister Pravin Gordhan indicated days before this was written, saying that there had been moves in
National Treasury’s expectation that the Government Debt to the deadlock over the motor industry strike. The information was
GDP ratio would rise from just over 22% at the end of 2008 to that employers had offered a 10% increase, but that the unions
around 43% by 2013. It does not take rocket science to work out had rejected it, saying that they would hold out of a double digit
that the bill to finance the additional debt will rise to more than increase. So much for maths literacy!
double its current level and to probably even more than that as
government demand for capital will influence both capital and One remembers a placard displayed in the 1980’s strike which
money market rates upwards. Remember that the nominal GDP broke the British Coal Miners resolve. It proclaimed that “10%
is getting bigger over that time as well, so that having twice the of nothing is nothing! We demand 20%!”
ratio of debt on a bigger base number with higher interest rates
points to a surge in government’s interest bill. If government is Some may be dumbstruck by the hard line attitudes of the strikes,
spending more of its income on servicing its debt (not paying it but you have to admire the sense of political timing.
off, just servicing it), there will be less current government income
available to pay for other government expenses, in which salaries
and wages have a budgeted level of 32% share for 2010/11.
Answer

We can be assured that organised labour can do this arithmetic as


easily as we can, and has decided to strike, both literally and figu-
ratively, while the iron is hot, and there is still some spare govern-
ment resource to be demanded. The government unions may well
have been asking for next year’s increase a year in advance,
while there are still funds available, cornering resources before it is
too late.
from page 8

The strike amongst unionised workers in the component manu-


facturing industry and the downstream retail end of the motor
trade, appears to have been at least as damaging to the vehicle
assemblers as it has been to the head and tail of the motor sector
snake. Without parts to assemble, assembly lines ground to a halt,

30 October 2010
A series of articles on the rise of the Chery automobile

Simply Unbelievable
by Howard Keeg Value
The Chery Tiggo has been a familiar sight on South African roads since early 2008, so this budget SUV is no
longer a curiosity. ABR did two articles on the Chery last year – the first one was in May 2009 on the
2.0 TX and its owner Johann Penning, who was as happy as a pig in compromised manure. The second
article in September 2009 was my assessment of the 1.6 TX after it had joined its bigger brother as an even
less expensive contributor to the Tiggo range.

F
or that article I took the 1.6 litre powered Tiggo on a run down to Durban, and I quote from that critique as follows, “this
compact SUV does all that is expected of it and cruises happily up hill and dale at 120/130kph in fifth gear, with fourth gear
only required up such obstacles as van Reenen’s Pass, which is not an issue as the speed limit of 80kph presented absolutely
no problems for this eager little warrior”. (Note from editor: what Mr Keeg did not mention in his column was that he man-
aged to pick up a speeding fine on the uphill on van Reenen’s, which confirms his prognosis – and this was subsequently
docked from his pay after heated discussions). The price at the time was R164 900, which made the Tiggo SUV Simply Unbelievable
Value, and today this vehicle remains the benchmark for budget SUV’s.

However, the vehicle that I took down to Durban had less than 5 000km on the clock, so for this article I requested an older vehicle
with a higher mileage so that I could ascertain the aging characteristics of this Imperial McCarthy backed vehicle. I was duly presented
with a car straight out of their staff fleet (and everyone knows how company fleet cars are treated!) with 33 000 km of wear and tear. I
can happily report that the Tiggo still drove exactly as new, without rattles or squeaks or any other mechanical maladies, and its fuel con-
sumption still as thrifty as before. The interior and exterior remained in pristine condition, apart from some stains on the upholstery –
not the car’s fault I’m afraid, but rather that of some sloppy staff member. This bodes well for the resale value of these vehicles, and a
further reason to acclaim its Simply Unbelievable Value.

I conclude by repeating what I said some 13 months ago, “this SUV is not an expensive latest generation mortgage consuming Sandton
zooming past the Joneses chariot. The corollary to this law is that you have to shelve your Jeremy Clarkson alter ego and bring to the
fore your humbler side, the part of you that relates to the common man, and to be a well-respected man about town driving a well-
respected SUV around the said town”.
32 October 2010
weighty issues

Seeking the Devil


by Frank Beeton

In all the years that I have been involved with analysing and forecasting the South African Truck Market for commercial
vehicles over 3,5 tons Gross Vehicle Mass, the Year 2010 has presented one of the most challenging scenarios to understand,
and predict. In last month’s Weighty Issues, I bemoaned the lack of rational direction currently prevailing in the 2010 South
African Truck Market for vehicles over 3 500 kg Gross Vehicle Mass, so this month we will seek the Devil in the Detail. To
do this, we will examine the trends emerging among the different vehicle application classes. The accompanying chart traces
the quarterly market shares of the seven application splits recognised in the monthly market statistics gathered by the National
Association of Automobile Manufacturers of South Africa. After disregarding the nondescript category labeled “Other”,
which contains miniscule volumes of fire engines, off roaders and specialist cleansing vehicles, we can turn our attention to
the remaining categories listed below, and discuss how each has fared in terms of market share, and the environmental fac-
tors that have influenced the shape and direction of its penetration curve.
• Buses –World Cup preparations and BRT implementation But, as we said last month, there did not appear to have been any
from the third quarter of 2009 pushed the market share of panic buying during the first half of 2010!
Bus sales up from around 5% of the market to above 10% for • Tippers – these units are employed on construction sites,
the final two quarters of 2009, and the first of 2010. moving displaced earth or rock, or for the delivery of bought-
Subsequently this category has fallen back to less elevated lev- in materials. The slight and steady loss of market share, from
els as SWC played out at the end of the study period. around 8% to 5% during the study period, reflects the run-
• Freight Carriers – this category consists of rigid load carry- down of stock as SWC-related projects were completed.
ing vehicles used in the distribution and public service sec- • Truck-Tractor – on average, these vehicles are the biggest,
tors, plus some long-distance linehaul applications. It has and most expensive, in this study, used primarily in the long-
operated in a band between 40 and 50% market share, with distance haulage of goods and commodities, with secondary
peaks in the second quarter of 2009, and the second and usage in construction and mining. While contained in the 20-
(incomplete) third quarters of 2010. The 2009 peak reflects 30% band throughout, a noticeable dip in market share in the
financing difficulties in the Truck-Tractor category while the second quarter of 2009 provided evidence of the business
2010 peak is a response to the beneficial impact of SWC, asset financing difficulties prevailing at that time. The subse-
where a large proportion of these vehicles were employed in quent recovery has been gradual, but undeniable, as the finan-
supporting that event. cial environment normalised.
• Mixers – a relatively small, and very specialised category used So, have we found the Devil? It’s difficult to say, because he is a
exclusively for the delivery of ready mixed concrete to con- master of disguise! However, this study does suggest some inter-
struction sites. There has been no notable deviation in its esting conclusions, the most important of which may be:
market share performance during the study period. 1. No evidence of panic buying immediately before SWC 2010,
• Panel Vans –They were contained in a band between 19% 2. A strong performance by those categories rationally support-
and 11% market share during the study period, but the steady ive of SWC 2010, and
decline suffered since the fourth quarter of 2009 is puzzling, 3. A recovery in the financing environment.
as these ready-to-use load carriers would have presented as Although these conclusions were fairly predictable, this exercise
“excellent” panic-buy options as SWC 2010 approached. could be of use in providing us with a useful base for the assess-
ment of market performance as 2010 rolls out. Watch this space!

34 October 2010
Training Initiatives

AA Training Academy:
Strategically up skilling technicians
for a sustainable future
The AA Training Academy is widely acknowledged as the frontrunner in addressing the serious
issue that is the shortage of skilled artisans and technicians in the automotive industry.
Established in 2006, the Academy aims to ensure that the
industry is able to not only meet demand but also that the
quality of service is secured. “The aim is to essentially up
skill a workforce with a solid educational back-
ground which we see as a sustainable
investment for the future of the indus-
try,” says Derek Hall Jones, Head of
the AA Technical Division.

N
ow in its fourth year of operation, the Academy is
Merseta accredited with facilities in both
Johannesburg and Cape Town. Both facilities offer
apprenticeships for the following: Automotive
Electrician, Automotive Engine Fitter, Diesel Mechanic and
Motor Mechanic. Though the apprenticeship programme forms
the core of our academy, we also offer short courses for artisans
who want to keep abreast of new technologies and up skill them-
selves in specialised auto electrical fields as well as mechanical
technology.

“We work under the pretext of instilling a higher level of disci-


pline into our programme with more stringent selection process-
es, essentially to shift the mindset that this is an “easy” trade,” says
Derek Hall Jones, Head of the AA Technical Division.

Current industry trends have seen skilled mechanics being head


hunted within the industry, which means the cost of labour is
becoming increasingly competitive and costs are being driven
higher. Companies like Volvo have identified the need to invest a
significant amount of time and effort into developing technicians
from scratch and have acknowledged the merit of the Academy,
with 53 of their own apprentices currently on the programme.

“The decision to send our staff to the AA Training Academy was


an easy one, because not only does the AA recognise our need to
get the best training for our apprentices, but they also understand
that this is essential for us from a business perspective. When we
give them feedback and recommendations, they act on them with
the utmost professionalism,” says Steve Griffin, Competence
Development Manager at Volvo Southern Africa.

Volvo has also donated parts to the Academy on which appren-


tices are trained, which ensures that all equipment used is of the
best quality, ensuring only the highest standards for a top level
education.

36 October 2010
Parts Pricing

Citroën Gets Good


Marks from Kinsey by Gerhard Horn

The economic climate has once again become favourable for those who find themselves in need of a new
vehicle, but the very fact that motorists had to change their habits and outlook during the tough times of 2008
and 2009 highlighted a few things. Customers, as an example, are more careful when buying something and
are looking much deeper into all variables before making a final decision.

T
his is why the Kinsey report has become more relevant cerned. Now that the general public has become more cautious
than ever before. The base price of vehicles is easy to with their hard earned bucks, they will perhaps start taking note
find, but what if you want to know what the parts will as well.
cost when they need to be replaced?
Traditionally, the French manufacturers have not done well in this
The Kinsey Reports on car parts prices began in 1990. The details survey. The high price of imported parts, combined with the fact
are quite complicated, but it basically boils down to a system that the home-grown manufacturers made their parts cheaper
whereby various manufacturers are compared according to the right here, left them at the bottom of the pack. In 2008 the
prices of parts in their vehicle. A vehicle is then given a percent- Citroën C1 1.0 had a parts basket that made up 44.47% of its
age figure to show how much of the retail price is made up by the selling price. More than double the Volkswagen Citi 1.4 Sport's
parts basket. This report has become a yardstick for price compar- percentage of 19.92%. Not a great performance from Citroën,
ison and regulation, especially where fleet operators are con- but the news does get better. A whole lot better...

38 October 2010
These Citroën’s that were on display at the launch of Citroën’s revamped fleet initiatives at a function in Johannesburg on 20 September
2010 are not just a range of stunning vehicles at very good prices offered by Citroën SA – they also offer great fleet deals and great
parts basket prices. Vive la Valeur.

The 2010 Kinsey report data was recently released to the motor- price. This might sound like a high figure, but once you take the
ing media. It analyses a vehicle in three specific categories; service competition's figures into account, it becomes a completely
parts, mechanical parts and crash parts. The totals in each catego- different story. Take the Mini Cooper for example. The total price
ry are added together to get a number. The number is compared of all three categories combined comes to R289 385.01,
to the retail price to get the percentage. or 135.23% of the retail price, in Kinsey lingo.

The C1 performed noticeably better this time round. Its parts The rest of the range did not go down without a fight either. The
basket, including service parts, mechanical parts and crash parts Citroën C3 Attraction competed in the largest group against
made up 153.56% of the retail price. This figure seems impossi- some very established competition. In the servicing parts section,
ble, equating to more than the retail price, but remember that the one most relevant to the buying public, it came out just
three different categories, making up a significant portion of the behind the Ford Fiesta and Chevrolet Aveo. This is quite a victo-
entire car, which would not normally be replaced in one fell ry for Citroën when you take a gander at the long list of compe-
swoop, are added up. And the C1 compares favourably against its tition. It may not have beaten the Chevy and the Ford, but it left
competitors. the Honda Jazz, Toyota Yaris and Volkswagen Polo with some-
thing to think about.
The big news is the fact that Citroën has become highly compet-
itive in this regard. No longer are the parts horribly expensive It's the same story with the C4 and C3 Picasso. Both offer excel-
when compared to the others, but they're right there with them. lent value in the crash parts pricing section with a convincing lead
In the entry-level segment, Citroën gave an average performance. over the rest of the pack. The service parts for the C4 are well
They are, however, very competitive in crash parts pricing. ahead of the Mazda 3 and Golf 6 and just a tiny bit better than
the Ford Focus and Renault Megané. The C3 Picasso kept things
The crash parts subtotal is the best in the category, even beating average in the mechanical parts section, but claimed a highly
the Toyota Yaris by R25 000. That's a massive figure to take into respectable second place in the service section.
account, especially at budget level. This reduction in price of the
C1's parts is paltry compared to the rest of Citroën's range of pas- All of this can only lead to one assumption; since 2008, Citroen
senger vehicles. Not only are they extremely competitive, but in have worked hard to make an improvement on the price of their
most cases they obliterate the competition. The Citroën C5 has a parts. The high prices have been slashed and are undoubtedly
percentage of 45.63%, the lowest in the junior executive segment. more competitive than ever before. Combine this with Citroen's
The closest competitor, the Audi A4 3.0 Quattro, comes in at re-alignment of their vehicle pricing this year; and suddenly the
46.27%. The Kinsey Report states that no gearbox prices were French manufacturers are looking like a bit of a bargain.
available for both these models, which puts things into perspec-
tive, but even with the cost of a gearbox removed from the com- If nothing else, they have busted the myth that French cars are
petitors, the Citroen still beats them comfortably. expensive to keep running. It'll be hard for the buying public to
walk past an offer like this. Fantastic cars, good prices, great
The brand-new DS3 performed remarkable as well. The parts servicing cost; what more does one need?
used in this funky, premium hatch make up 49.53% of the retail

October 2010 39
Tyres and Their Contribution
to Safety in Motoring
www.bridgestone.co.za
This month we are going to look at communication. The communication needed between Marcus Haw
the people responsible for the maintenance of tyres in your fleet.

I
n the past few issues we have been Fleet owners and managers need to start
discussing the responsibilities of the merging those two thoughts and they need
workshop and the tyre staff. We men- to get their staff communicating that
tioned the responsibility of management in thinking down the lines. By connecting
getting the staff trained and giving them safety to tyres, the importance of tyres will
some status. But we have not looked at all be elevated in the minds of all the staff.
those involved yet - we’ve left the most Once the mindset is in place the mainte-
important for last - the drivers. Drivers nance and management and care of the
obviously carry the most responsibility of most safety critical items in your fleets will
all. But unfortunately they are also poorly be elevated to an acceptable standard. The
informed, totally untrained and, if what we importance will be realised and the safety
recently witnessed the driver of a yellow of the whole fleet will improve. This will
courier van doing is representative of gen- result in improved economy of tyre usage,
eral road behaviour, completely undis- and an improved bottom line. It is a win
ciplined. And yet it is the approach of the And now for the communication we men- situation all round. Road safety is a dire
driver which determines the life of the tioned earlier. The workshop has obvious concern in this country and does not seem
tyres. Their driving style has a direct effect areas of tyre maintenance that should be to get the attention it deserves. Drivers are
on the way the tyres last. Their attention to part of their regular responsibilities. Then more irresponsible with worsening driving
looking after the tyres during, before and there are the functions that have to be com- habits and like several things in life; the
after driving is a road safety function. But, municated to the workshop by the tyre individual usually believes that he alone
how many know this? Which manager staff; and in the same way they should be can’t make a difference. This is a problem
takes the time and trouble to really look at communicated to them by the drivers. to be faced and corrected because each one
the quality of their drivers? Not many that Equally the workshop will observe tyre or of us can make a difference. Fleet owners
we are aware of or have ever seen. However, mechanical concerns which may have an are in control of more vehicles, and they
let’s look at the driver’s responsibility to effect on the tyres which they need to com- can take the lead instead of setting a poor
tyre management and maintenance. municate to the tyre department, and/or example. We need just one fleet to take up
the drivers. For tyres to be well maintained, the challenge and adopt an internal culture
As mentioned, drivers are the most impor- a team approach is required, and the team of thinking about SAFETY first. The best
tant factor in preserving tyre life and pre- needs to communicate well. A breakdown place to start is with the product that
venting tyre damage. They are closer to the in communication could mean a break- is most overlooked and the most safety
tyres at all times than anyone in the fleet, down at the roadside. Even worse it could critical.
and their actions impact directly and end in an accident.
immediately on their wellbeing. They Proper tyre maintenance results in less
should be checking the tyres for damage We’ve said it before and we will keep saying downtime, improved bottom line, more
before every trip; checking their inflation it; tyres are the only physical contact a vehi- reliability which equals better service deliv-
pressures each week and they should be cle has with the road surface. Tyres are safe- ery and improved ROAD SAFETY. And all
watching the decreasing tread depth all the ty critical items, they give you control and it takes to achieve this is staff training and
time. They should also be checking for they need to be maintained and looked discipline and a change of mindset.
irregular wear and driving with due consid- after.
eration of the tyres at all times. Very little of Tyres and safety – one thought, one goal.
the above checks are happening on a regu- Fleet owners need to adopt a new
lar basis. In fact it has got to the stage that approach. They need to look at driver
many drivers refuse to check their vehicles training, they need to re-write the job
because it’s “not their job”. Management descriptions and they need to get the com-
should not accept this and rather include munication channels open and working.
these tyre safety checks in their job descrip- They need to start thinking and preaching
tions. If a driver isn’t prepared to take safety. Safety and tyres should always be
responsibility for his vehicle, he shouldn’t one thought.
be allowed to drive it on the roads.

40 October 2010
October 2010
Intelli-Driving

Stay Alert, Stay Alive,


by Austin Gamble
and Go Green
The Stay Alert, Stay Alive project is starting to grow legs, and the legs are green! This was clear at
a function at the Wanderers Club held on 30 August 2010, to bring the message of environmen-
tal awareness home to the leaders of tomorrow.

W
hat originally started out as a road safety initiative, As I drove away in my 4 litre SUV, to cover the next motorsport
Stay Alert, Stay Alive is becoming much bigger. event, which to get to I needed to board a very environmentally
And to my mind, much better. The road safety unfriendly Boeing aircraft, I got stuck in traffic. While intermit-
aspect is still the raison d’etre, but now the ele- tently idling away and/or edging forward on the highway for two
ment of eco-driving, intelli-driving, and all the good things asso- hours while SANRAL fiddles around on the roads (can’t you guys
ciated with being a “cultural creative” are being added. Avis, Pick just work a little bit faster and a little bit more intelligently) to
‘n Pay, Scania, Nikon, Eco-Drive, Willard, Food & Trees for allow even more traffic on our roads so we can pollute some more,
Africa, Monroe, BP, and others are all pitching in with the green I glugged a beer and threw the can out of the car window, and I
message. The message is one of environmental awareness, sustain- pondered about corporate responsibility. Okay, I didn’t glug a beer
ability, and most importantly, the need to educate the children of and I definitely did not throw the can out of the window (some
today, so that they become the responsible leaders of tomorrow. idiots do this!), but you get the point. The point is that i-driving
Not just responsible leaders, but also role models, each and every should mean intelli-driving and not idiot-driving. Avis gets the
one of them. This is vital, because our generation has blown it. point, so it was a pleasure to hear CEO Wayne Duvenhage give his
angle on corporate responsibility. ABR hopes to give our readers
much more from Wayne in the future, but as an appetiser I give
you some of the points he made. He says that it is all about mak-
ing this planet (our only planet, so listen up folks) and our world
more habitable. And the key question he posed is “what does all
this green talk mean?” It is easy to talk green, but it is our respon-
sibility to ask for substantiation. There is a lot of mystery sur-
rounding green issues, and Wayne says that the way to demystify
is to talk hard facts, and to act on these facts. For Avis South
Africa, it all started in the 1970’s when then CEO Glenn van
Heerden started to get Avis involved in nature conservation, a
Eugene Herbert, CEO of RAC Driving Solutions, with “green” issue that goes back to the efforts of politicians such as
Wayne Duvenhage, CEO of Avis, at the Stay Alert,
Stay Alive function Paul Kruger and Teddy Roosevelt.

Noteworthy, but not new,


and done when the con-
cept of global warming
could only be found in
esoteric scientific tomes. It
has only been in the past
five years or so that Avis
started to debate internally
the role that they could
play in environmental
awareness, and very impor-
tantly, as Wayne will
repeatedly tell you, a
meaningful role.

Much more on this in


future issues of ABR, a
future brought to us all by
The Glenstantia Primary School Senior Choir put the message into music.
far thinking businessmen
such as Wayne Duvenhage.
42 October 2010
A Man with a Brand
Joao Amorim is a self-made businessman, and has found success in his endeavours. He works hard and he plays hard. Having
established Rustenburg Auto Electrical some 28 years ago, Joao is now able to proudly say that it is the foremost independ-
ent automotive workshop in the fastest growing town in South Africa. Whilst still not having the time to take long holidays,
Joao occasionally spoils himself with two day breaks to indulge his passions for flying, biking, fly fishing, scuba diving and
skiing. In short, Joao and his wife and constant companion, Cathy, enjoy life to the full.
Joao and Cathy Amorim work as a successful husband and wife team, and together they have moulded a support crew of handpicked
technicians and admin staff. Their business philosophy is based on the sound principles of honesty, hard work, dedication, customer
care and loyalty. Loyalty to staff, customers, and, of course, self and family. This loyalty is the driving force behind his success, and the
rationale for not resting on one’s laurels. Rustenburg Auto Electrical is always a hive of activity, and not just with the repairing and serv-
icing of cars. Joao is always re-inventing his business, and revamping and improving on a continual basis. Having qualified as a Bosch
System Technician over 20 years ago, he has had the benefit of learning the
“Bosch way”, i.e.
professionalism,
technical compe-
Always look- tence, and always
ing ahead, staying abreast of
and thinking the latest advances.
of his
customers, Thus it was a no-
Joao has brainer when the e-
installed CAR workshop
power concept was intro-
back-up, just duced in 2004,
Cathy and Joao Amorim in their inviting reception area in case
with Rustenburg
Auto Electrical one
of the first to join.

Joao and Cathy related to the national identity, the national and
regional advertising, the catchy e-CAR name, the affordable
workshop model, and the other good things that go with a world
class concept, but the most important thing was that “it is lonely
being a man without a brand”. The good news is that the decision
taken some six years ago has brought its rewards for all and sundry,
and like the biblical story of how the multitudes were fed with just
five loaves and two fish, Joao has fed many fellow citizens of
Rustenburg with e-CAR ads, promotions, and word of mouth
endorsements from satisfied customers. The Rustenburg motorists
now know that e-CAR means good service and value for money in
The recently revamped customer counter is indicative of this platinum inspired town.
Rustenburg Auto Electrical never resting on its laurels

To join the fastest growing workshop network in South Africa and to add a new dimension to your
business, contact Wilfried Langenbach at 086 000 3227 (086 000 ECAR)

October 2010 43
Customer C.A.R.E. Programme
– sponsored by Federal-Mogul

Module Sixteen - THE HUT SYSTEM

Rules and Regulations


To succeed, the Hut System needs to follow the C3 cardinal rule, 10. ALL DECISIONS, and I repeat, ALL DECISIONS taken by
which is COMMUNICATION, CO-OPERATION and CO- the huts, must be taken for the principal benefit of the cus-
ORDINATION. I cannot think of a single company, government tomer. The customer, need I remind you, is the one actually
department, or even a household that would not benefit from the paying for the existence of the kraal.
C3 rule. To succeed and prosper, there are further rules and regu-
lations that need to be strictly adhered to. These are, in no partic- Follow these rules, and you will have a very successful kraal.
ular order of importance;
* PHAMBILI UBUNTU, literally translated, means to go for-
1. Each hut must have a leader, who must be respected by the ward with dignity.
team.

2. Each and every member of the kraal is important, therefore


respect must be shown by and to each and every member of
the kraal.

3. Every specific function must have an owner (leader), with a


specific team, whose members may sometimes be drawn from
numerous other huts.

4. The owners concentrate on keeping the hut clean, and also in


keeping the area in front of the hut clean.

5. Team members may not sweep in front of other people’s huts,


unless specifically requested by the owner of that hut.

6. When a hut is not clean, or the area in front of that hut is not
clean, then every kraal member has the right to discuss this DISCUSSION POINTS
with the “owner” of that hut, but it has to be discussed
according to the rules of the kraal, and with PHAMBILI 1. Why is it important that the huts concen-
UBUNTU. *
trate on keeping their own huts clean?
7. If the hut stays dirty, despite numerous attempts at commu-
nication, then a delegation (minimum 3 people) is entitled to
Discuss.
go to the paramount chief (the chief executive) to discuss the 2. What is your interpretation of the
situation. The paramount chief will make a decision, based on
the FACTS, and should always strive for a SOLOMONIC
phrase, “going forward with dignity”?
result, with the interests of the kraal being, eh, paramount. Discuss.
8. The paramount chief must always seek harmony in the kraal. 3. What do you understand by the term,
9. Sometimes, the paramount chief will not agree with what is “the customer is paying for the existence
happening in a hut, and will then have to take arbitrary of the kraal”?
action. N.B. This should be a very rare occurrence! If not,
then there will be something seriously wrong with either the Discuss.
kraal, or the paramount chief, or both!

46 October 2010
Tyre Talk by Alwyn Viljoen
Correction Help tyres gardens take New tender
Hermann Erdmann, spokesman for the Tyre Dealers and Fitment root deadline
Association , has reacted strongly against the report in ABR that their
Integrated Industry waste tyre management plan includes a proposal to The deadline for provincial
At the time of print, government was still
see the unofficial re-grooving of old tyres (which happens daily in town- tenders to transport and
dithering on finally approving a national
ships) made official. The TDAFA does not support re-grooving of tyres. process waste tyre has been
waste tyre management plan. Meanwhile,
With the introduction of the TDAFA proposed Integrated Industry postponed from the original
the Johannesburg Greenhouse project is
Waste Tyre Management Plan training, safer processes and standards August deadline to “possibly
creating backyard vegetable gardens in
will make provision for the upliftment of these illegal re-groovers to during October/ November
old tyres and they welcome partners who
operate in other areas within this industry within the legal parameters 2010”. Provincial transporters
can help their initiative to feed the nation
and given the various business opportunity arising for the previously will have until next year
take root in other areas. Contact Zini
disadvantaged. Illegal re-grooving of tyres is not supported by the Tyre September to get their logis-
Them on 011-720-3773.
Dealers and Fitment Association and ABR apologises for the mistake. tics in place to collect tyres.

“The problem that we have is that at the moment there are no DEA approved
tyre producer management plans. – SATRP”

Tyres Burning in Limbo


The Vatican’s International Theological Commission officially denied the existence
of limbo, the outer circle of hell, on April 20, 2007. It hasn’t helped our tyre
industry much. Alwyn Viljoen tells why…

A
year after the Department of preparation of waste tyre management Giovanni Lodetti, plant manager at the
Environmental Affair’s Sep- plans, as set out in the Waste Tyre NPC-Cimpor plant at Simuma near Port
tember deadline for tyre pro- Regulations.” This plan has been under Shepstone, told ABR that trial was con-
ducers to submit their plans review for several months, with no dead- ducted specifically to assess what effect it
to manage waste tyres, the line in sight. While the review drags on, would have on their smoke if they mixed
bulk of SA’s annual waste tyre crop are still the entire tyre industry hangs in limbo. As tyres with coal in the 1450 degrees Celsius
being dumped in landfills, or worse, the SATRP website explains: “The prob- kiln. “We are excited and upbeat over the
regrooved and sold informally. lem that we have is that at the moment anticipated results, which are currently
there are no DEA approved tyre producer being analysed locally and overseas as case
For those not embroiled in the tyre recy- management plans, therefore the tyre deal- studies have shown that mixing old com-
cling saga, all tyre manufacturers and er will be obliged to dispose of the waste mercial tyres into coal kilns typically has
importers must subscribe to a plan, tyres in terms of the General Prohibitions no impact on the baseline emission
according to the Waste Tyre Regulation of the WTR, regulation 4.” This regulation results,” Lodetti said. Independent
(WTR) of 2009. Para 6.7 of these regula- allows for waste tyres to be disposed of by research confirms his statement. European
tions states a tyre producer may not man- recycling or energy recovery if authorised results show that a tyre-coal mix can even
ufacture, import tyres or vehicles fitted by law or disposal at a landfill site. The reduce cement kiln emission levels, with
with tyres, or distribute or sell tyres, unless SATRP’s plan favours burning them. the bonus that none of the energy locked
they can demonstrate that they either have up in tyres end up the landfills. Bandag
a management plan approved by the Small wonder then that everyone, especial- SA, which specialises in truck tyre retreads,
Minister, or belong to an existing manage- ly the Earthlife Africa Toxics Group, are so does make a strong argument to use more
ment plan approved by the Minister. The keen to hear the results of the first trial- retreads before burning tyres. The group
section-21 SA Tyre Recycling Programme burn of old tyres at the new Port has a proven best practise in the U.S. called
Company (SATRP) has submitted an inte- Shepstone NPC kiln near Port Shepstone. “reduce, re-use and recycle” which, Bandag
grated plan which is widely expected to Environmental groups opposed to the claims, reuses about 75% of the material in
become the national norm. Environmental burning of tyres raised concerns over toxic more than 14 million medium truck tires
Affair’s chief director of communications, smoke and the possibility that a green fee that are being retreaded annually in the
Albi Modise said: “Of the four Integrated will in fact pay the cement companies to U.S.
Industry Waste management plans which save substantially on their coal costs by
were received, only one met the criteria for burning tyres. The saga continues.

48 October 2010
Intelli-Driving

South African Drivers Hope to


Explode out of the Blocks at
the TNT Drive Me Challenge
6 October 2010 is an auspicious day for Elliot Tau, winner of the inaugural
South African TNT Drive Me Challenge. As the sun rises on the airfield
at Valkenburg, Netherlands, where the event will be held, Elliot and his
co-driver Kobus Fourie, will be girding their loins to take on the other
TNT teams from across the globe, as they compete in the fourth annual
international TNT Drive Me Challenge.

E
lliot and South Africa’s run-
ner-up Lefa Mathibela have
been taking intensive lessons
from MasterDrive this past
month, in preparation for
this keenly contested event. Lefa is on
standby just in case, but judging by
Elliot’s resolve when ABR caught up
with him on 21st September during a
training session, wild horses will not
keep him away from doing South Africa
proud. The training is focused on eco-
driving and precision driving, which
constitutes 75% of the marks allocated Nick Osborne and Derek Kirkby use the Edenvale
in the competition. The remaining 25% Hyperama parking area for parallel parking, ally
is allocated to tasks and customer care, docking, and position of vehicle training, whilst
which the guys are already well versed eco-driving skills are imparted on the road.
in, to which any TNT customer shall
attest. Eco-driving is a big factor, and this is where MasterDrive plays a big role in inculcating
habits that are seldom adhered to by the majority of drivers in this country. It is all about using
less fuel and caring for the environment. ABR spoke to Nick Osborne, MasterDrive Instructor,
and Derek Kirkby, MasterDrive Team Manager, about these concepts. They confirmed that the
biggest challenge as driving instructors is to alter existing driving skills. They encourage gear
changes at 2 500 revs, a keen anticipation of traffic and conditions, smooth driving, and the
avoidance of excessive idling (maximum 40 seconds per stop). They do have other tips, but for
the moment these remain the preserve of the TNT drivers. The MasterDrive fundis confirmed
that whilst Elliot and Lefa had good
driving skills, they initially lacked eco-
awareness, but with each training ses-
sion they were getting better, and
whilst not yet at 100%, the under-
standing of the concepts would put
them in good stead for the day of the
event and future competitions. As Nick
put it, “Elliot is well prepared, and the
only concerns that we have is the possi-
bility that he will be disadvantaged
with an unfamiliar left-hand drive, and
rookie nerves are always a factor”.

Lefa Mathibela and Elliot Tau take a break from the intensive training. Elliot confided that he
was not yet nervous, but maybe he will be on the day of the competition. With passport and visa
in his pocket, he was looking forward to doing well in the competition, and promised to do his
best for his country. He had learnt a lot in the training, and was now up to speed “on stuff I was
not aware of ”. Despite being the bridesmaid, Lefa was taking the training very seriously. He
confirmed that he saw the training as important for next year’s challenge, and that everything he
was now learning he “could apply on the road, and I am already applying what I’ve learnt on
the road, which makes me a skilled driver in all the aspects”.

October 2010 49
Top Class Topics

Permatex –
for Professionals
The modern engine is an engineering marvel, compared to engines of
yore. Advances, particularly in the last 10 to 15 years, have been remark-
able. This progress has however come at a price. Not a prohibitive price,
TopClass MD, Richard Pinard
but the modern engine is rather finicky, and needs to be cared for like a
thoroughbred horse. And engine electronics mean that durability, performance, fuel consumption, and other aspects are
reliant on finely calibrated sensors that work well in optimum conditions, but play up when confronted with incorrect
input or foreign substances. It is thus incumbent on the professional automotive technician to take cognisance of this,
and when undertaking repairs to ensure that only the finest materials and parts are used.

H
elp is at hand for these professional technicians, and has been around for over a century. Since 1909, quality Permatex®
products have been used in workshops, garages, and racing circuits around the world. Permatex offers a wide range of adhe-
sives, sealants, gasket makers, hand cleaners, lubricants, appearance parts, specialty repair kits, and additives. This ongoing
success has been built on always ensuring the right product for the vehicles of the time, and in the words of Andy
Robinson, Permatex General Manager, “providing best-in-the-business performance and value”. But what exactly defines best-in-the-
business? When it comes to gasket makers, gasket removers and carburettor cleaners, best-in-business means that a professional auto-
motive technician can use these products in the knowledge that they are safe for both older engines and modern engines.
Particularly, and crucially, Permatex products are safe for the modern engine.

The Permatex Ultra Series RTV Silicone Gasket Makers


The Permatex Ultra Series RTV Silicone Gasket Makers are non-corrosive,
low odour, vibration resistant, and guaranteed not to leak. They also have
outstanding resistance to oils and cooling fluids. The most important
characteristic of Permatex gasket makers is that they are sensor safe, as
modern engines can be damaged by acid substances in silicone. And cur-
ing time is very important, as uncured silicone can mix with engine oil
and clog oil galleries – this can lead to engine failure. Inferior products can
thus lead to engine failure, so the professional automotive technician can-
not afford to take chances with inferior product, and needs to use best-in-
the-business, i.e. Permatex.

Permatex Gasket Remover


When it comes to removing gaskets, similar principles apply. Permatex Gasket
Remover quickly removes all solvent based gasketing adhesives and sealants.
Speed is of the essence, and the fast-foaming action of this innovative prod-
uct penetrates the most stubborn or baked-on gaskets in 15 to 20 minutes. It
also prepares the flange for the new gasket, and by reducing the need for
scraping and grinding, it eliminates any potential damage to the flanges.

The Permatex Motor Muscle® Throttle


Body, Carb and Choke Cleaner
This OEM certified product cleans and dissolves residue and performance robbing
deposits on air intakes, carburettors, chokes and throttle bodies. Once again,
because of modern technology throttle body cleaners must be sensor safe, and nat-
urally, Permatex fits the bill. The professional automotive technician understands
that throttle bodies get dirty from the engine gas recirculation and thus to maintain
performance they should be cleaned as part of the normal maintenance procedure.

50 October 2010
Gearing up for Growth
Deon Barkhuizen has gearbox oil running through his veins, and gearbox DNA in his genes, having inherited his
passion for transmissions and the like from his father Chris, who worked at Gearmax for 30 years. Therefore, it is
not surprising that, since its establishment in 1999, Centurion Gearbox & Diff Centre has established itself as one
of the leading gearbox outfits in South Africa.

D
eon also cut his teeth at Gearmax, and proved his
mettle when managing the Samcor (Ford) remanufac-
turing contract. When he established Centurion
Gearbox & Diff Centre, his main aim was to deliver
the right product for the aftermarket, and to provide service excel-
lence. This aim was achieved by building around him a hand-
picked team of specialist staff with a hands-on focused approach.
The team, with Deon serving as Managing Director, included his
father Chris (Technical Director), who joined in 2004, Ferdie
Wimpie Geldenhuys, Deon Barkhuizen and Chris Barkhuizen
Victor (Workshop Director), who joined in 2003 after an eight
year stint with Land Rover Pretoria, and Wimpie Geldenhuys
(Financial Director). This executive team runs a tight ship, and
Centurion Gearbox & Diff Centre serves as a beacon for all Land
Rover, Mercedes Benz, Mitsubishi and other brand owners who
need specialised assistance on manual and automatic transmis-
sions, transfer cases, front and rear axles, and propshafts.
Commercial and industrial applications are also catered for.

The commitment to quality and customer satisfaction soon led to


Centurion Gearbox & Diff Centre being appointed as an
approved supplier to Land Rover South Africa in 2004, and today
the company supports all local products with genuine Land Rover They come from far and wide to get their Land Rovers serviced
at Centurion Gearbox & Diff Centre
parts in conjunction with Land Rover SA, supplying all remanu-
factured and reconditioned units directly to the Land Rover SA
warehouse. With this pedigree behind them, Centurion Gearbox Wimpie Geldenhuys, Financial Director, tells ABR that having all
& Diff Centre has now been contracted by the SANDF (South the purchases under one account has streamlined the supply side
African National Defence Force) to maintain their fleet of Land of the business, and he also appreciates the Capricorn clout which
Rover Defenders, bumper to bumper, in their operations in Africa, allows him to buy at competitive prices. Another well received
with a team of specialists flying regularly to remote parts of Africa perk is the year end dividends, and the options allowed with regard
to do the necessary maintenance. Their fame has spread far and to disbursement. The ability to buy capital equipment through the
wide, and Deon and his executive are now looking at additional Capricorn financing system is highly prized by Wimpie, and he
overseas business ventures. truly values the immense support that he receives from Andre
Changuion and the other Capricorn staff members, coupled with
There are several unsung heroes in this scenario, not least being the the personal attention. Wimpie says that in the seven years that he
Capricorn Society. Membership of this co-operative minded com- has interacted with Capricorn, he has never had an issue. Truly
pany has allowed Deon and management to concentrate on the remarkable in this day and age. The biggest accolade Deon, Chris,
operational aspects of the business, with the knowledge that the Victor and Wimpie leave for last, “Capricorn is not just a business,
back office needs are in good hands. they are friends”.

To join Capricorn Society Limited call André Changuion


on 083 287 3498 or e-mail him at
andre.changuion@capricorn.coop or visit their website on
www.capricorn.com.au

52 October 2010
Corporate Conscience

The Rotary Club of Johannesburg


presents its 2009 Achiever of
the Year Award
The Rotary Club of Johannesburg, established in 1921, making it the oldest Rotary Club in Africa, presents
an award each year to someone who has made a contribution to our society, and thus someone who has made
a difference. This award, known as the Achiever of the Year Award, is becoming something of an institution,
and the announcement of the recipient is eagerly awaited.

To get some sense of the import of this award, just take a look at recent awardees:
2000 The helicopter squadrons and crews of the SAAF who played a vital role in the Mozambique flood rescues
2005 Reserve Bank Governor Tito Mboweni for his achievements in creating monetary stability
2006 Constitutional Court Judge Zak Yacoob for his contributions to creating a just South Africa
2007 Rugby World Cup Winning Springbok Coach Jake White
2008 Cape Town Mayor Helen Zille for being recognised as Global Mayor of the Year

F
or 2009, the award was made at the Johannesburg
Country Club on 26 August 2010, and the recipient was
Finance Minister Pravin Gordhan. This being a 2009
award, he got the nod in recognition of his leadership
and work in refining the South African tax system during his years
at SARS. The collection of taxes will never be a popular pastime,
but it is a necessary “evil”, and as the nomination for the award
came from a tax practitioner, certain efficiencies in the system
have obviously delighted those close to the coalface. The out-
come, as the Minister stated in his acceptance speech, has made
South Africa the envy of the developed world, having achieved the
status some years ago of being a politically and fiscally sovereign
nation.

The e-filing system developed under Gordhan’s reign has served


bigger purposes, as it has served as an electronic platform for
many government departments, which eventually has to translate
into sorely needed efficiencies. He lauded South Africa as a nation
of miracles, not least being the recent World Cup under the “fief-
dom” of FIFA, and he called for South Africans to adopt the spir-
it of Rotarians, and the adoption of the highest ethical standards,
a sense of community, and a symbol of responsibility. He warned
that we must not adopt the “Wall Street Spirit of Greed and Self ”,
as corruption is a growing industry in South Africa. We must not Minister Pravin Gordhan receives the Rotary Club
let profit be the prime motivator, and the Rotary community is a of Johannesburg Achiever of the Year
Award 2009 from Past President Neil van Santen
trigger to our consciences. As Mandela says, “The good people
must stand up for what is right – we all have this responsibility”. South Africa needs to take cognisance of this, and to confront the
We all need to build an ethical society, and to strive for a society challenges going forward. Unemployment is the biggest chal-
that ensures we all live well, but in a modest manner. lenge. With four million unemployed youth, we need to become
imaginative about solving unemployment. The youth are the
The Minister pointed out that we live in uncertain times, with future, but we are not giving them a future. The burden falls upon
talk of double dip and bungee recessions, newly coined terms to the business community to mentor these youth. Those with the
explain the erratic economic numbers being bandied about. We wherewithal must take the lead. Wise words indeed, and well
are seeing a shift in the centre of gravity, as the world moves away worth heeding, from the Sate President down to the small
from Eurocentric and Western thinking. employer. All can make a difference.

54 October 2010
Entrepreneurship

Success & Failure Two Sides of


the Same Entrepreneurial Coin
Pavlo Phitidis is a Director of Aurik, an organisation that works with entrepreneurs and their businesses to
grow them into assets of commercial value. www.aurik.co.za

A
re you successful and what does This implies that the entrepreneur has failure, took steps to determine what had
it mean? The definition of suc- come to terms with and taken responsibil- gone wrong, then that indicates the
cess varies from person to per- ity for failure. He has attributed little required thinking of an eventually success-
son, but here, I am referring to blame to others, he now has insight into ful entrepreneur.
business success. Commercial success does what went wrong and he has progressed
not come for free for most of us. For the further after failure than before things Generally, we need to encourage a culture
majority, we have to do things differently went awry. that acknowledges entrepreneurs, whether
and start taking risks which, of course, they fail or succeed, push the boundaries
increases the risk of failure. of economic activity that will ultimately
build a bigger economy with more oppor-
Unfortunately, talking about failure is tunities for all of us. If the wagon trail
taboo when in fact success and failure are started out on the American East Coast
two sides of the same entrepreneurial coin. aiming for California but ended up in
That South Africans have an extremely low Oklahoma, that’s still further than having
tolerance for entrepreneurial failure is evi- stayed put. Entrepreneurs, for all their
dent in the way whispered dinner party efforts, should be lauded as explorers
conversations gleefully report the failures expanding the limits of human economic
of colleagues, friends and relatives. Of activity and service to society by providing
course, this might have something to do better quality, greater access and improved
with the nature of human beings. Could pricing through commercializing their
someone else’s failure simply make us feel innovation. World history is littered with
better because had the potentially success- voyages of discovery that went horribly
ful individual actually succeeded it might wrong at the time but still turned out to
have drawn attention to our own medioc- have a positive impact on human progress
rity? It is interesting to note that a recent later on. Christopher Columbus might not
study found that it’s not having bundles of have found the sea route to India but he
money that makes people happy, but landed somewhere that proved to be rather
rather having bundles more than the next important to the world’s economy a few
person. hundred years later.

It’s not just individuals who refuse to toler- The way South African culture and indeed
ate the failures of those brave enough to By Pavlo Phitidis, CEO at the media shun entrepreneurial flops is dis-
Aurik Business Incubator
try, but the entire South African legal and couraging more of us from becoming
business establishment. As long as no fraud The converse of the above is a victim entrepreneurs because the shame of failure
was involved, those who were trying to cre- mindset which results from the failure to increases the risk involved in leaving that
ate a better future for themselves, their take responsibility for an unsuccessful ven- comfortable corporate job. Let’s encourage
families and erstwhile employees should be ture. The result of the latter is disempow- more South Africans to take the entrepre-
rehabilitated quicker and they should not erment and long-term failure whereas the neurial plunge, creating much-needed for-
be pulverized into the ground. result of the former is empowerment and mal employment for the less-risk averse.
long-term success. We should, of course, Then should they fail, let’s give our eco-
Few people realize that Silicon Valley ven- look at how the initial failure occurred. If nomic explorers a short, sharp kick – not
ture capitalists actually look for signs of the failure was due to the entrepreneur to knock them to the ground, but to
early failure when entrepreneurs come to being reckless and possibly squandering encourage them to get up and try again! By
them for funding. Entrepreneurial failure other people’s hard-earned money, then bringing the valuable experience of failure
is viewed as a badge of honour in the US that is certainly no badge of honour. to bear, the entrepreneur outsmarts and
because it points to a valuable learning However, if the overly-eager entrepreneur outclasses the armchair critic who can only
curve. However, this is only true if the took on a mammoth task that was simply point out what others are doing wrong,
entrepreneur has dealt with early failure in too much, too soon, and then following without ever taking on the risk of potential
a constructive way. failure in the hope of eventual success.

56 October 2010
ITS South Africa
by Austin Gamble Elects New Board
At its AGM on 25 August 2010 ITS South Africa elected its new board for 2010/2011. The AGM was also
an opportunity for ITSSA to confer on guest speaker Jack van der Merwe, better known as Mr. Gautrain, a
certificate of appreciation for making the Gautrain dream come true.
The elected board and management team is:
Mthembeni Mkhize (TCI-Techso) Immediate Past President
Peter Filbey (Tollink) President
Andrew Houliston (Syntell) Vice President
Dr. Paul Vorster Chief Executive
Andrew Aucamp (City of Durban)
Gail Bester (SANRAL)
Andrew Bodibe (Johannesburg Road Agency)
Peter Sole (City of Cape Town)
Jan Coetzee (ITS-Engineers)
Darryl Thomas (TMT)

Jack van der Merwe, in his keynote address, revealed a detail


that upon reflection is far more exceptional than the
Gautrain engineering project. He disclosed that the Auditor
General, in a very brief audit report, recently gave the
Gautrain project, in all its manifestations, a clean bill of
health, i.e. totally unqualified. This is indeed rare in South
Africa, as rare as the Dodo. Thank goodness there are still
people like Jack van der Merwe around. Taking some ques-
tions from ABR and Engineering News, Jack also assured
the august audience that he is talking to Bombela, the
Gautrain operating company, about many issues, and the
good news is that operating times of 5 a.m. to 10 p.m. is
just around the corner – once again, thank goodness that
there are still sensible people like Jack van der Merwe
around – rare, but not extinct. With regard to air passengers The newly elected ITS South Africa Board with Dr. Paul Vorster, Chief
Executive of ITSSA (Jan Coetzee and Gail Bester were absent)
being able to book in at Sandton Station, Jack said that this
is on the cards, but only after the full Gautrain project is
complete. He also revealed that the Gautrain is waiting for
a permit, to allow it to expand to eight carriages, as opposed
to the current four carriages. Passenger numbers are hold- Mthembeni
ing steady at 76 400 per week, which is spot on with the Mkhize (TCI-
original predictions. Before embarking on an experiential Techso)
visit from the Sandton Station to OR Tambo Airport, the Immediate Past
delegates were intrigued to learn from a presentation by
President of
Sport & Traffic Technologies that there are currently 11 218
ITSSA, presents
parking bays with sensors (those red and green lights)
deployed at OR Tambo Airport, and that they are deliver- the certificate of
ing 99,998% accuracy. This translates into a 7% better util- appreciation to
isation of the parking areas, and of course increased Jack van der
turnover for ACSA. This project paid for itself in 18 Merwe.
months, but unfortunately will not result in parking tariffs
coming down – if you believed that ACSA would be that
altruistic then you will also believe in the tooth fairy.

58 October 2010
AIDC Quiz

by Roger McCleery

Roger McCleery asks the questions


See how many of these 20 Questions you can answer.
1. What was the biggest selling passenger car in South Africa in August?

2. Who leads the Moto GP Championship after Misano?

3. Where does he come from?

4. What is the name of the new bakkie from Volkswagen?

5. Who is the fastest man ever in an MG?

6. Who is the second fastest man to drive an MG?

7. What company makes a model called Livina?

8. What is the name of the suburb of Modena where Ferraris are manufactured?

9. Name two South Africans who have won their home Formula 1 GPs.

10. What country built the first dual carriage freeway?

11. For what purpose?

12. Name three Jewish Formula 1 Grand Prix drivers.

13. Where was the first Formula 1 World Championship race held in the USA?

14. The Alfa Romeo pre-war Grand Prix cars were stored where during WWI?

15. What motorcycle uses Desmodromic valve gear?

16. General Koos de la Rey and the Foster Gang drove similar cars. What were they?

17. What Nationality was Ferdinand Porsche?

18. What is the maximum distance for a Formula 1 Grand Prix?

19. How many drivers could win the 2010 World F1 Championship with 5 GP’s to go?

20. Route 66 in the USA runs between which two major cities?

Answers on page 84

October 2010 59
WIlde Things

Calling the Kettle


by Fingal Wilde
Black
A few weeks ago I had the pleasure of spending some delightful time with some well- informed people, and in
listening to an erudite Finance Minister give a well-constructed acceptance speech at the Johannesburg Rotary
Club’s Achiever of the Year Award function, held at the very colonial Johannesburg Country Club in Auckland
Park, Johannesburg.

A
ll very civilised, and all so lovely. The peasants may have behaviour of ministers and ANC heavyweights. These are issues
been revolting, but we were insulated from the hoi pol- that will eventually bring down the emperors. Even Cosatu
loi. As the King of Id said when told that the peasants secretary general Zwelinzima Vavi has identified this as the
were revolting, “I agree”. But, as I drove home, I was Achilles Heel of the current regime, in his vivid portrayal of their
not in a good mood. I was, if the truth be told, in a foul mood. venality and greed; “We're headed for a predator state where a
The company had been good, the gourmet quality food was being powerful, corrupt and demagogic elite of political hyenas are
happily digested, and the excellent wine was being eagerly increasingly using the state to get rich,” says Vavi. What is just as
processed into high qual- bad, even though modest
ity urine, so what was in comparison to what is
the disconnect? It was going on in the offices of
the comments made by the state, is the lifestyle of
Minister Gordhan! He the newly rich and face-
had said all the right tiously famous political
things about his tenure elite. Elite as in defining
at SARS, and he had our “leaders”, rather than
made all the politically e-lite as describing their
correct noises around the contribution to the
on-going strikes, and he country. It still boggles
had set the right tone for my mind that a commu-
the evening with the nist gets a R1,2 million
obligatory plaudits for car with indecent haste as
his hosts. Question time soon as he has his hands
had also been handled on the levers of power,
adroitly, with nary a foot whilst a perfectly func-
been put wrong, or tional vehicle for a
going near the mouth area. But, it was one comment, neatly fraction of the price would be more appropriate, both as a way to
finessed into his speech, which was catching in the craw. The proclaim his non-bourgeois roots, and some sort of perfunctory
comment was that we must not descend to the level of the nod to the situation on the country. And then our newly created
Western world, and that we must not adopt the “Wall Street spir- Generals in the police farce who spend taxpayers money like water
it of greed and self ”! Reasonably innocuous, I hear you say. After to get into plush offices, and to divert some of the budget to
all, those nasty bankers and financiers did take us into a very political cronies. This, Minister Gordhan, should be exercising
uncomfortable recession. True, but when the messenger is part of your mind, and focusing
something far worse, I simply cannot take these words without a your tongue, rather than
large pinch of salt. Make that a cellar of salt. what is happening thou-
sands of miles away.
Before you get onto your lofty stallion, hear me out. This gentle-
man has been the Minister of Finance for the past two years, and Please clean your own
whilst his budgets have been received with general approval, it is doorstep before judging
what he is presiding over that gets my processed urea into a froth. others. Otherwise it is
He may not be guilty of the corruption and falsehoods that have like the pot calling the
become the norm at the Union Buildings, but he is guilty of kettle black at the Mad
presiding over a particularly nasty era in our country’s leaders Hatter’s Tea Party.
custodianship of our finances and moral fibre, with very little
objection, or maybe even more necessary, outright condemnation.
Forget the disgraceful shenanigans around the Imperial Crown
Trading acquisition of mining rights, or the tenderpreneur

60 October 2010
Burford on Brands

Latin
by Adrian Burford
Lightning
Ferrari, for all its visual drama and iconic sports car status, always seems to be in the news, and not always
for the right reasons. At least that’s how it is in the world of Formula One: the scarlet cars are never far from
the limelight.

M
aybe it is because, to quote crat, Count Enrico Baracca, the father of ate for a brand which majors on horse-
Bernie Eccelstone, “if there Francesco Baracca, Italy’s top-scoring ace power.
are no fires in F1, we will in WWI who in 1918 had been shot down
light them’ (a line I have in his SPAD biplane. And boy, have they stuck to their knitting,
unashamedly lifted from Roger keeping car buffs on the edge of their seat
McCleery’s motorsport column in the for more than 50 years as they’ve eagerly
September issue of ABR!). Or maybe it is awaited the reveal of the company’s next
the tradition of wine at lunchtime at the sports car. I’d never say never, but diesel
Ferrari factory or maybe it is merely that power and SUVs still seem as alien to
Latin temperament. And one suspects Ferrari as diplomacy to Bob Mugabe, and
that, even if it isn’t actually going on in I hope I don’t see Ferrari’s Cayenne in my
public, then the screaming and shouting lifetime. And I’m sure Enzo would’ve felt
and wild gesticulating is still happening the same.
behind the scenes: I grew up with a couple
of Italian families and it was often like So we’ve had a steady diet of mid-engined,
that, though it never changed the fact that two-seater supercars: 308, 365, 512, 348,
they all loved one another dearly. Testarossa, 355, 360, 430 and most
recently, the 458. There have been some
Enzo Ferrari was a family man, attending extraordinary front-engined GTs over the
races with his father in his formative years Baracca’s insignia had been a red horse on years too; like the gorgeous 275, the orig-
and the patriarch (who owned a metal- a white background and the Countess inal Daytona, the 456, the 550 and the
working business) was also one of the first Paolina – Francesco’s mother - suggested 575. One of the earliest, the 500
people in the region to own a car, so that Enzo use this emblem on his race cars Superfast, is my personal favourite.
Enzo’s fascination with the wheeled beast to bring him good luck. He considered
started early. this offer a great honour though he opted Then there were the even more exotic
for a black horse on a canary yellow, supercars: going back to the 250 GTO
With the war out of the way – the young shield-shaped background, which was the (for Gran Turismo Omologato) of 1962,
Enzo was conscripted and worked as a colour of his home town of Modena. The the 288 GTO two decades later, and on to
blacksmith – he started to pursue his ‘Cavallino Rampante’ has gone on to the almost visceral F40 and F50 which
ambition of being a race driver. By 1920 become what is arguably the most instant- celebrated the number of years that
he was working for Alfa Romeo and rac- ly recognisable car badge in the world. Ferrari had existed, even if in the case of
ing their cars, finishing second in the the latter it wasn’t quite correct!
Targa Florio at the end of that year. His The Italian colours; red, green and white,
career as a driver was reasonably successful still form a band across the top of the rec- That would be 1947 – if one agrees that
and in 1923 the prancing black horse tangular badge on Ferrari road cars and on the production of the first road car marks
became his trademark. In that year he won most of the race cars the letters SF – the true start of the Ferrari brand – but
the Circuito del Savio, an event which Scuderia Ferrari – has been added. who would want to argue? An automotive
took place near Ravenna in North-eastern Literally translated it means ‘Ferrari stable’ world without Ferrari would be almost
Italy. After the race he met a local aristo- or ‘Ferrari stud’, which is rather appropri- unimaginable.

62 October 2010
Consumer Protection Act
ABR brings you a series of articles on the Consumer Protection Act.

Ready or not, the Consumer


Act will start
Like the non-existent road traffic adjudicator, the act to protect buyers
is not exactly ready to roll, but the show will go on. Alwyn Viljoen
reveals more.
The Consumer Protection Act is due to “One-sided and inequitable conditions are buyer that ABS does not, in fact, stop a
come into effect on October 24. Several prohibited (by the Consumer Act). vehicle over a shorter distance, and that the
legal experts have however been question- Conditions which limit the liability of a new Amarok even has a button to switch
ing the viability of this implementation supplier or require an admission by the the ABS off to enable vastly shorter
date while supporting regulations and consumer must pertinently be brought to stopping distances on gravel.
administrative structures, as required by his attention”.
the Act, have yet to be created. Similar This of course changes the entire sales
shortcomings are already nullifying all Are people who sell their second-hand cars pitch. At least, Volkswagen made things
summonses issued for the Administra-tive to a buyer, using a CNA-type standard easier with an entertaining website that
Adjudication of Road Traffic Offences contract on a voetstoots-basis subject to show just how much shorter legendary
(Aarto). As things stand, Aarto simply does the Act? The short answer is “no”. Such a Sarel van der Merwe managed to stop the
not have appointed officials to deal with sale is a once-off transaction and the seller
appeals. is not a dealer under the Act. Steenkamp

Yet, despite the glaring lack of any sup- “Puffery, deceptive


porting framework for the consumer act,
Daan Steenkamp of TMJ attorneys
statements and even the
advised traders they “had best ready them- failure to correct
selves for its implementation”. (And misunderstanding
Steenkamp should know – TMJ can trace
its roots back to 1898, when the first
is prohibited”
partner R Tomlinson opened his office in
Durban.) As Steenkamp explained, the Amarok on gravel while an anxious rally
Consumer Act aims “to protect the ordi- racer Gugu Zulu stands in the breaking
nary consumer in his dealings with (regu- zone… wearing only his BMW helmet.
lar) suppliers of goods or services in South
Africa”. And even if a dealer's standard contract
was deemed fair to date, it does not make
“The protection covers services, goods, the deal compliant with the new
franchise agreements and services rendered Consumer Act.
by clubs to their members. Larger – more
sophisticated – consumers such as trusts
and companies with high turnovers, are said that a sale by a second-hand car deal-
not protected. er to a man-in-the-street is, however, sub-
ject to the Act.
“Many suppliers have standard terms upon
which they sell their wares. Typically these “In addition to the above, the presale con-
are printed on the rear of the invoice and duct of the agent would be controlled.
limit the seller's liability resulting from the “Puffery (exaggeration), deceptive state-
underperformance of the product,” he ments and even the failure to correct mis-
said. Asked if such conditions would be understanding is prohibited.
acceptable in future, Steenkamp advised “The pre-sale promises, the presentation
“only if the consumer were to read these To take a practical example, lets say a and timing of the conclusion of the
prior to signing and paying.” bakkie-buyer innocently asks a salesperson contract will need to be considered. This
how ABS will make Volkswagen’s new will require additional training of agents in
He warned that the so-called “tees and Amarok stop quicker – a common enough addition to a revamp of existing contracts,”
cees” should also be couched in simple misunderstanding among the buying pub- Steenkamp concluded.
language. lic. The salesman now has to educate the

October 2010 63
Industry Update

A New Era Dawns


lebration
ard s had a double ce day
Johan Richt 8 was also his birth
– Sep

8 September 2010 was a red letter day for Nissan


Diesel (make that UD Trucks), as this day marked the
official changeover from Nissan Diesel to the UD
Trucks brand in South Africa. On hand to witness the
ceremony were overseas dignitaries, management, staff,
guests and the media.

A
s Johan Richards, CEO of UD Trucks, said at the well-attended cere-
mony, “the journey starts here”. Johan added that UD Trucks starts
from a strong platform, particularly with its African footprint.
Already the top truck exporter into Africa, UD Trucks have done
extensive research into the challenges of selling new trucks into this
vast continent, focusing on the fuel quality challenges and the many variants need-
ed to satisfy these markets. Although dominated by used vehicles, things are
changing, and UD Trucks are upgrading their dealerships and getting the funda-
Some gues
mentals right – value for money product, customer support and providing a trans- ts dropped
in unexpec
port solution that is passionate, professional and dependable. ABR was there to tedly
take in the flavour:

e
se to be th
ter than Kobus Wie vy trucks
Who bet bassador for hea
brand am

spectively
C E O a n d CFO re Diesel
relse, Nissan
a rd s a n d Jacques Ca e changeover from
h
Johan Ric s, officially mark th Trucks
ck to UD
of UD Tru

64 October 2010
Industry Update
Some of the co
mpensations fo
r the particip
ants were beau
tiful sunsets

Geely Returns the Lowest Fuel


Consumption in its Class
in Total Economy Run
A lone Geely MK2 1.5 GT Hatch, driven by veteran motor sport commentator and broadcaster Roger
McCleery and navigated by a lesser known journalist, returned the lowest fuel consumption in its class in the
34th Total Economy Run, which took place took place early September in the eastern Free State.

A
ctual fuel consumption achieved over the
1 100-km two-day event was a class-winning
5,715 litres per 100 km. Unfortunately,
a small error which had no bearing on the
consumption, brought a penalty of an aston-
ishing 10 litres, which resulted in them not winning the
class. John Jessup, CEO of Geely South Africa, was
delighted with the result. “We’re very happy that our car
performed so well and we’ll definitely be supporting the
Total Economy Run next year, with more vehicles.” Geely
is the largest privately-run car manufacturer in China and
recently announced new representatives in South Africa in
the form of the Hallmark Motor Group, a sister company
rough
ng was tho of the JSE-listed transportation, supply chain and logistics
Scrutineeri
service provider Cargo Carriers and the family owned
Magic Group, who each hold 50%. Both companies have
extensive motor interests via franchised dealerships of
Mercedes-Benz, Toyota, Volkswagen, Nissan, Hyundai
and General Motors.
nagement
that the engine ma
sure
there to en with
T echno logies was were not tampered
Launch systems

SA.
van Wyk from Geely
Andre
leery with
Roger McC
October 2010 65
Peripatetic Partinform
Piet Retief, Polokwane, Pietersburg, Pofadder, Port Elizabeth, Pinetown, Pretoria, you name it, one day
Partinform will make its way to you. Parys South Africa definitely. Paris France maybe, because Partinform
made its international debut on Wednesday 15 September 2010, when it hosted a networking event at the
Automechanika Frankfurt. Not the Frankfort in the Free Sate, but the real deal in the state of Hesse,
Germany. And the general consensus was that this event was also the real deal.

F
rankfurt am Main has become the exhibition capital Either way, Partinform plays a key role in facilitating debate,
of Europe, and the Automechanika held every two whether it is with a mobile mechanic or a procurement director,
years in this commercial hub has become the pil- and the opportunity to educate one or one hundred is eagerly
grimage of choice for the automotive aftermarket seized upon. Thus, two Partinform events took place within 24
community east of the Cape Verde Islands, and even fours of each other – the first in Polokwane, Limpopo, at 17h30
some from the new world that Christopher on Tuesday 14 September 2010, and the second in Frankfurt,
Columbus stumbled upon. South Africa punches above its weight Germany at 16h00 on Wednesday 15 September. Automotive
in this endeavour, and it was for this reason that Partinform, the Business Review, the official mouthpiece of AAMA and
marketing arm of AAMA (Automotive Aftermarket Partinform, was at both events to take in the action.
Manufacturers Association), decided to do a Mohammed move
on the mountain, and to go where the action was. Unlike the tra-
ditional Partinform show format that takes place locally, the inter-
national event focused on networking and a brief overview of the
Partinform
purpose of AAMA and Partinform, as the profile of the
Automechanika visitor was significantly different to that of the
local Partinform guests. The local version is aimed at the retailers
Polokwane
P
and fitters of automotive parts, thus the recipe is a mixture of olokwane may not be an international metropolis, but
information, one on one technical interaction, the introduction of it does serve as the business centre of the Limpopo
new parts and new ranges, and important advice on the merits of Province, South Africa’s northernmost province. With
quality branded parts vs. parts of unknown origin and dubious over 10% of the population of our country, the major-
quality. And very importantly, the ramifications of dealing in infe- ity of whom are dependent on the much maligned taxi
rior product are spelt out, with specific reference to the impend- industry for their daily transport, Limpopo is an important con-
ing Consumer Protection Act. The international visitors, com- stituency for AAMA. With the yoke of responsibility of transport-
prising procurement personnel from wholesalers and retailers with ing five million commuters comfortably and safely, the taxi frater-
reputations to uphold, are fully aware of these issues, and thus do nity and its parts suppliers need all the help they can get with
not need specific advice on the ramifications, but a gentle regard to information and advice on quality replacement parts,
reminder is not totally pointless. The fact that so many South and the Partinform Trade Show was the ideal place to get this
Africans from the automotive aftermarket were together in one information. All the Partinform members were out in force to get
place was key to the function been held, and with over 60 high the message of quality branded product across and the ancillary
profile visitors attending the event, some serious networking took message of reliability, safety and value for money.
place.

66 October 2010
October 2010 67
Retailer of the Show
After the votes were in, Far North Midas in Mokopane took the “Retailer
of the Show” award. ABR spoke to Wessel Botha and asked about his
secret of success. Wessel said that the kudos belonged to his team. “We are
a young and dynamic team. We enjoy our training to improve the stan-
dards and to improve product knowledge. We offer quality and we take
pride in our customer service”. Well done Wessel, and good luck in the
“Retailer of the Year” competition, which goes to the wire at the Soweto
Partinform on 9 November 2010. The Retailer of the Year wins a Forza
Racing Experience on 25 November 2010.

Quiz King
Phaahla Teneson of Autozone
Polokwane was the quiz king
of the night, and he wins a
drive in a Ferrari racing car
at the Zwartkops Race Track
on 25 November 2010.
Phaahla also got the thumbs
up from the Partinform
ladies.

Co m p e t i t i o n Co r n e r
ABR readers also get a chance to win a Forza Racing Experience on 25 November 2010. The winners will be announced
in our November 2010 issue. All you need to do is to answer three simple questions, and fax to 086 6579 289 or e-mail
bigheart@iafrica.com
Name and Surname:
1. Where did the first international Partinform networking
event take place?
Company:

Position:
2. What brand of spark plug features on the front cover of this
month’s ABR issue?
Postal Address:

3. Which retailer took the “Retailer of the Show” award Contact Tel.no’s:
at the Polokwane Partinform Trade Show?
e-mail address:

68 October 2010
urt
f o r m Frankf
Par tin

Amidst the glitz and glamour of the world’s biggest parts event, generally recog-
nised as Automechanika Frankfurt, one could find hidden gems across the 11
halls, not least in Hall 1.2, which housed the South African Pavilion. This was
the venue for the inaugural Partinform Networking Event, where South African
visitors to this iconic bi-annual shopping frenzy could rest their weary legs after
two hard days of pounding the hundreds upon hundreds of aisles (45km of
walking if you do the whole nine yards), and to compare their copious notes and
to swap blister remedies. As the event was primarily a networking affair speech-
es were kept to a minimum, with Colin Murphy, Chairman of Partinform,
enforcing a strict two minute maximum for the two mini-speeches from him-
self and Malcolm Perrie, Chairman of AAMA. ABR shall also observe this
rule, by keeping our words in action to a minimum, and giving our readers
a taste of the evening:
, wel-
m a n o f Partinform
rphy, Cha
ir of the
Colin Mu sk et ch ed the merits
guests and ing and
comed the bo th in network
form a t, nd out-
Partinform u tlin ed the goals a
ods. H e o e issues
show meth a n d to uched on th
artinform osed to wh
en
comes of P ry to day as opp ilst
ind u st 86, w h
facing the y b egan in 19
ori gin a ll resp si-
on
Partinform et w ee n the legal
guishin g b manufac-
also distin er a tives facing
d moral im p duct. He
bilities an s o f a u to motive pro
importer t each and
turers and on sibility tha
emphasised
th e re sp the fence,
b o th sides of
of us, fr o m eeds and
every one a sp ec ts of the n
meetin g a ll and ulti-
carries in o ti v e aft ermarket, a
e autom rist, from
wants of th u se r, i. e. the moto
en d
mately the aspect.
an ce and safety
perform

October 2010 69
Malcolm Perrie, Chairman of AAMA, took the opportunity to give
some background on AAMA (Automotive Aftermarket
Manufacturers Association), and its purpose. Basically, AAMA is a
group of component manufacturers that focus on the aftermarket
and who promote quality and premium brands. The four legs of
AAMA are

• Training – the pooling of skills and resources to promote train-


ing and to support the product
• Legal action – outlawing of counterfeit and grey imports; devel-
opment and setting of standards, specifically in safety critical
components; activities around the Consumer Protection Act
• Logistics – commercial enablement to assist the distribution of
products
• Trade shows (Partinform) where AAMA reaches the “guys that
throw the box away”, or conversely “to reach the guys that import
the box that you want to throw away”.

The event attracted some big hitters. Here Dr


Norman Lamprecht of NAAMSA and Roger
Pitot of NAACAM are flanked by the dti’s
Trade and Investment champions Vusi Mweli
and Moloko Leshaba. Vusi is the Director:
Export Development and Moloko is the Deputy
Director: Export Promotion

Networking 101:

70 October 2010
A common feature between the local and international Partinforms
was the chance to win a drive in a Ferrari courtesy of the Ferrari
Driving Experience. This time a business card was drawn out the
hat and the lucky winner was Peter Newbery of Alfa Brakes.

Event Opportunity: South Africa 2011

9.3. – 11.3.2011, Johannesburg Expo Centre

Enquiries: amsa@sashows.com www.automechanikasa.co.za Philip/ Karen: 011 494 5002/3

October 2010 71
The South African AAMA Connection
Not only was AAMA involved with a Partinform function, but their overseas
principals were also prominent at Automechanika in one way or the other –
ABR went in search of these global giants:

72 October 2010
Other Automechanika Highlights
The South African Connection con-
tinued with ABR advertisers and
friends. Our intrepid reporters were
on the scent and came upon these
interesting elements at the show.

Prakash Bhagwan and Yusuf Joosub


from Euroquip were there to visit
their main suppliers.

October 2010 73
Garret and Libby Hinkley from
Intrade flank Alfred Wimmer
of Victor Reinz Germany
see every-
qu ence s of trying to as found
conse ow w
This is the e day. This poor fell ly in need of
in g in on desp erate
th the halls, ent
wandering refreshm

Randy Kim, Export Manager of Parts-Mall Corporation, took the time


to tell ABR that he was at Automechanika because it is the biggest and
the best, and allows him to meet his customers from Europe and the
Middle East/Africa. It is also a great forum to look for new customers.
Parts-Mall focuses on its own brand, and offers reliable quality at
affordable prices, which caters for the new market dynamic. Randy says
that the future looks good, and that Parts-Mall has its own sales branch-
es in Malaysia and South Africa, which is proving to be a good business
model as it relies on local knowledge and develops reliable customers in
each market. Randy intends to expand this concept to other countries, as
it has proved to be an excellent template.

74 October 2010
Show Time

WATS Bloemfontein 21st Oct 2010!


– “It’s All Systems Go!”
There will be a strong focus on Vehicle Diagnostic Scanners, Auto Electrical Training, New Products & Technology, Parts, Tools &
Garage Equipment at the very first Workshop Aftermarket & Technology Show (WATS) taking place at Ilanga Estate in
Bloemfontein on 21st October from 16:00 to 22:00. Live Diagnostic Scanning demonstrations will be done on actual vehicles dur-
ing the course of the evening by the Major Diagnostic Scanner suppliers in RSA.

The WATS Expo, which from it’s inception in 2005 has enjoyed the full endorsement of the Retail Motor Industry of S.A. is this
year privileged, to have for the first time worked side by side with RMI Regional Manager for the Free State Mr. Louis van Huyssteen
& his Dynamic Team. We take this opportunity to thank everyone at the RMI Free State offices & Jeanne Esterhuizen for their
untiring help to make this event a success.

This show offers Visitors & Exhibitors the best in:


• Valuable exposure to the Automotive Aftermarket for suppliers & visitors alike.
• The launching of new product brands.
• Networking with quality clients and suppliers face to face.
• Minimal staff absence & overhead for exhibitors on this one day only event. (Fast & Furious)
• Modern & vibrant atmosphere.
• Meet the Editors & Staff of some of the top SA Trade Magazine’s.

This fantastic opportunity should not to be missed by any member of the SA motor industry, as companies will showcase their prod-
ucts & technology to the Automotive Aftermarket of the Free State. There has NEVER before been a TECHNOLOGY expo of this
type in BLOEMFONTEIN or the Free State!!.

• FREE Boerie rolls & Beer/coldrinks to visitors/exhibitors @ 18h00.


• Gorgeous Girls giving away T-shirts in a way you would never expect!
• Prizes to be Won!
• Cash Bar will also be available.
• FREE ENTRANCE with SECURE PARKING!

Free State – Don’t Miss this one!


For further information visit www.wats.co.za where you can register, as a visitor or exhibitor, on-line.
Contact Miranda on: 082 9680 214 & admin@wats.co.za or Johann on: 082 5515 061 & info@wats.co.za

76 October 2010
Midas Awards

Thanks Very Much, Chaps


The automotive aftermarket is a very important part of the South African automotive industry. It often plays
Cinderella to the glamour boy OEMs, but when it comes to keeping the vast majority of the country’s car parc on
the roads and in good condition, the manufacturers, importers, and distributors in the aftermarket play the
absolutely vital role. The executives are normally busy as bees, but every now and then they come together to net-
work and to tell war stories. One of these opportunities is the Midas Group Supplier Acknowledgement &
Appreciation Awards Evening.

T
hus, on Monday evening, 30
August 2010, if anyone wanted
to discuss matters automotive
aftermarket with the movers
and shakers in the industry, the perfect
place to be was the Birchwood Hotel in
Boksburg. The who’s who of the industry
assembled to hear who had received the
nod from the imperial Midas Group, now
part of the impressive Imperial empire.
Warren Espinoza, COO, took the oppor-
tunity to give the glitterati an update on
how life was going under the Imperial
umbrella, emphasising that it has been
business as usual. He applauded the
Imperial hands off style, with the benefit
of the head office boys looking after the
onerous tasks such as managing risk and
observing corporate governance rules,
whilst leaving the guys on the front line to • Availability of product
do what they do best – operate. And the • Proactive range development
very good news was that whilst the amal- • Technological savvy
gamation of Imperial Autoparts did put • Cataloguing, both paper and digital
pressure on margins in an increasingly • Warehouse friendly packaging
competitive environment, the aggressive • Brand promotion – through
reduction of overheads and the growth in advertising! (ed’s strong comment)
market share more than made up for this, • A fair and equitable playing field
with Midas achieving its profit budget, • Disciplined and fair distribution
and the concomitant benefit of a positive policies
cash flow. Midas is thus in a good space, • Pricing to allow margins
improving its warehouse capacity nation- • Facilitation of training
wide, and is prepared to invest in addition- • Feedback on market performance and
al inventory ranges. The message from the market dynamics
COO is that the Midas Group is financial- • Quality product (an absolute given
ly secure, and with the stated intent to today) Warren Espinoza
grow market share via aggressive trading, • Social and environmental awareness COO of the Midas Group
leveraging off its relationship with suppli-
A casual glance would immediately con- Protection Act as the most important issue
ers, in sync and in partnership. He stressed
firm that these are simply elements of best facing the industry, and gave the assurance
that Midas offers impressive distribution
practice, which basically means that any that Midas has embraced this act and is
benefits for its suppliers, whilst also realis-
supplier with its act together would not following the guidelines of the RMI. He
ing its obligations which translates into a
see any of this as onerous. called on the industry to work together on
responsible roll out of private label brands.
the solutions and initiatives to satisfy the
Warren then went on to a brief SWOT requirements of the CPA. He touched on
Of course, the suppliers also had to play
analysis of what is facing the industry. He other issues of the day, and the proactive
their role, which Warren went through
identified the imminent Consumer response Midas is taking to address them.
meticulously:

78 October 2010
Midas Awards
Included in these were: Going Green – This is no longer the read the aforesaid to identify your strengths
flavour of the month. It is going to be and weaknesses. The bulk of this article
Training - Midas has received Merseta flavour of the decade and beyond. Midas could be called “Midas Awards 101”, so go
accreditation for its diesel training centre has embraced this philosophy and has for it and good luck next year.
and is putting a big effort into developing measured its carbon footprint. 600 tons per
on-line training modules. He reiterated month is the startling sum calculated by
Midas’ commitment to the industry as a the boffins, and Midas is to move strongly
whole, and the need for a collective effort to reduce this. The ultimate goal is to be
to address the critical skills shortage in the carbon neutral, but the road will be long
country. and hard. Midas has already identified the
three pillars of Reduce, Reuse, and Recycle,
BBBEE – This is becoming a bit of a and in future will apply all the necessary
hoary annual, but remains a priority to technologies to play its role in the fight
Midas. Midas is aggressively targeting a rat- against global warming.
ing of 5, which will require its suppliers to
be rated as low as possible. This is some- Then it was onto the reason why all the
thing everyone can benefit from, as the suits were there - the awards.
downstream customer base will also gain Congratulations from ABR to the winners,
from progress on this front. and for those who did not make it, just

The winners, from left to right, Philip Lutz and Megan Naiker, representing Monroe Shock Absorbers, winner of the NAPA –
Category A award; Wilfred Gruzd of Stingray, winner of the Midas Group – Category B award; Len Terblanche and Tim Langdon,
representing Luk Clutches, winner of the Midas Group – Category A award; Colin Preddy of GoodYear RAM, winner of the NAPA –
Category B award; Sam Hazley of Sam Hazley, winner of the Auxiliary Supplier award; and Glen Ross of Everspark,
winner of the International Supplier award.

JP Landman, well known political commentator


and avid fan of Carte Blanche, kept the audience
enthralled with his pithy comments under the title
of “Where the Hell is the World Cup?” His presen-
tation focused on the two forces that drive the mod-
ern state:
1. Open society dynamics
2. Economic growth
As South Africa is under serious threat on point
number one, JP Landman extolled the virtues of an
independent media, effective institutions, property
rights, the diversity of voices, and businesses being
operated independent of the state. He did admit
that the downside of a vigorous media included J.P. Landman, doing what political commentators do best, closing his eyes and
looking to the future.
cynical comment confused with investigative jour-
nalism, and the fact that the media tends to talk
only about what is wrong, rather than what works, and of course, the terrific urge to always report out of context. He gave as an
example the good news that only a third of the cabinet is stealing, which the media ignores, focusing only on the third that steal,
whilst not emphasising that two thirds do not steal! With regard to economic growth, the fact is that South Africa’s per capita income
grew by 27% in the last 16 years, and that the odds are strong that this will be repeated over the next 16 years, if not quicker. The
dynamic driving this is both GDP growth and a declining birth rate, so all power to the elbows of the emancipated women of South
Africa.

October 2010 79
Industry update

The Power of Evolution ...


“Supplying customers with trucks that satisfy their unique operational requirements has always been at the core of
MAN Nutzfahrzeuge’s business strategy. For almost a century, MAN has cultivated a truck engineering DNA
based on ever-changing market requirements, one that is constantly evolving to meet the challenges MAN prod-
ucts face in the course of their daily duties around the world, from the Gobi Desert in China to the rain forests of
Brazil,” says Thomas Hemmerich, Head of Global Sales and Marketing, MAN Nutzfahrzeuge.
“MAN’s multi-million Euro R&D initiatives constantly
drive its technological developments, which are guided
principally by what its customers are demanding across
diverse heavy-duty truck markets around the world. The
new MAN TGS WW (WorldWide) is the second series in
the Trucknology Generation®, exemplifying this dedication
to ‘tailor-made’ trucking solutions and continuous improve-
ment – a premium technology truck, with the right breed-
ing for Africa. The new MAN TGS WW is a refinement of
the TGA, equipped with MAN’s latest Trucknology® fea-
tures as well as upgrades to certain components to better
serve South African operators. First and foremost, the TGS,
like the TGA, is a ‘driver’s truck’, a sophisticated workhorse
and luxury home-from-home, making it ideal for long haul
duty,” adds Hemmerich. To be released in South Africa in
September 2010, the MAN TGS WW range of premium-
class extra-heavy duty trucks is based on its immediate pred-
ecessor, the MAN TGA, released locally in 2005 and now a
household name amongst local transport operators. While
the term ‘facelift’ could be applied to the TGS WW range,
At the media launch on 2 September 2010, Johan Cloete, Management each derivative has its proven TGA lineage and has under-
Board Member (Truck Sales – SRA), MAN Truck & gone extensive development and testing in South Africa to
Bus SA (Pty) Ltd, welcomes the new CEO, Markus Geyer. ensure optimum performance in diverse local applications.

Monroe / Napa Okavango Challenge


It started in 2008 with an excursion into the
Kalahari. Last year saw our intrepid motormen
take on the Sani Pass Challenge, and for this year
it was the Okavango.

W
e are talking about the Napa and PIA Monroe
customers who achieved the best results
against sales targets set over a three to five
month period. The winners get a fully paid
for five day excursion to different parts of southern Africa led
by the experienced Alex Smit of Eco 4x4 Africa. Monroe have
chosen this event because it is a good fit with their dedicated
and extensive range of off-road shock absorbers, from the
price competitive Gas-Magnums through to the imported
high pressure gas mono-tubes, and to the premium elite
triple-tube nine-way adjustable gas Ranchos. ABR was there to wish the winners bon-voyage at OR Tambo airport on 2 September 2010.
Awaiting the lucky group was an action packed schedule, including Maun, the Delta channels, the Moremi National Park, the Audi
wildlife camp, and Bird Island. Five days away for these hard working guys may be a shock to the system, but they will be sure to strut
their stuff when they get home. Philip Lutz of Tenneco said that “the event went off very well and all the customers had a great time -
more dry and dusty than expected (very fine white dust that got everywhere). In true African style, we had a number of vehicle break-
downs which were handled in "African time" - but they actually added to the flavour of the event and became discussion points.
Anthony dos Santos of Suburban Motor Spares in Cape Town, one of the lucky participants, commented, “I really enjoyed the trip. It
was a typical African experience, and the hiccups added to the adventure”.

80 October 2010
Motorsport Sponsorship

Applying Objectivity to
Motorsport Sponsorship
Some commentators refer to motorsport sponsorship as a bottomless pit in which to throw vast amounts of
money, whilst some say it is a great way to strengthen your brand. Both of these views have an element of truth,
and both can be challenged. The bottom line is that motorsport sponsorship can be effective and reasonably
cost effective, if approached with a specific objective, and tackled with a mixture of smarts and caution.

T
here are many horror stories, most of them anecdotal,
about companies or their chief executives blowing sig-
nificant portions of their marketing budgets on weird
and whacky sponsorships, from putting money into
the Flat Earth Society to throwing shareholder funds at three
legged midgets attempting to climbing Mount Everest in their
underwear. Motorsport sponsorship can, and does, sometime
descend to the realms of the twilight zone, and many wads of
notes have been passed to wily old racing practitioners, or breath-
lessly handed to the “agents” of the latest Schumacher wun-
derkind, only for tears and recriminations to be the only return on
investment. This is what was going through my mind on the
morning of 28 August 2010 as I made my way to Zwartkops
Raceway to spend a morning with the SP Race Engineering team,
Never let it be said that motor racing is not hard work – ABR
and to “Satisfy your need for Speed”. SP Race Engineering is the
caught Richard Pinard, Hennie Groenewald and Dawie Olivier
official motorsport partner of Subaru Southern Africa, and the after scores of laps of thrilling the sponsors. Tired, but still smiling,
purpose of the event was to thank the sponsors for their previous they and Grant Bowring had some time for the camera.
largesse and to encourage the continuity of the bonds of loyalty
and reciprocity. Carel Pienaar, who heads up SP Race
Engineering, told ABR that he had decided, after an exemplary
record in the WesBank V8 Supercar series (championship title
with Hennie Groenewald behind the wheel in 2006, 2007, 2008
and 2009), it was time to make space for the perennial runners
up, and to move onto the leading formula class is motorsport rac-
ing in South Africa, which is the Bridgestone Production Car
series. 2010 has been the year to suss things out, and as Carel says,
“in 2011 we will mount a total onslaught on the Class A champi-
onship”. A formidable challenge, as these are the most advanced
and complex production cars on the planet, and being the top for-
mula, it is highly competitive. The intriguing thing about the
“competitive” nature of production cars is that the competitive-
ness is primarily artificial, as it comes less from the speed and per-
formance of the vehicles, or the talents of the drivers and their
teams, but more from the regulations applied to the formula,
which apparently is the critical aspect in keeping the races inter-
esting and unpredictable. The tweaking of the rules, practically on
a race to race basis, makes it doubly difficult for the production
teams and Subaru seems to have the biggest challenge. The
Impreza STi’s, if left unregulated, would blow the rest of the field
away, with the benefit of a racing DNA built up over decades on
the rallying circuit, and a forced induction engine and 4WD that
literally gives it an enormous three second per lap advantage on
the small Zwartkops circuit, and much more on the longer tracks
such as Kyalami and East London. Some of the Midas support team
82 October 2010
Motorsport Sponsorship

The sponsors with their cars:


Kevin Hollow
ay, Timken Techn
ical Sales Man
ager

les
for Inland Sa
Simon, Midas’ Executive
Ernest

Thus, power has to be restricted and weight added, to spare the blushes of the
BMW’s, Audis and Nissans. And, if the racing is not up to spectator standard, the
rules are tweaked again. Not entirely satisfactory to have the fate of the champi-
onship more in the hands of the officials than the drivers, but apparently neces-
sary to keep the stands full.

But back to the reason I was there, to get some sense of the rationale behind
motorsport sponsorship. Midas, Sasol and Timken, the three primary sponsors,
were there to explain. I think that the Sasol presentation encompassed what
everyone was saying:
• a platform to showcase performance and technology
• opportunity for research and development Sponsorship
• an experiential platform sol’s Head of Motorsport
t, Sa
• a networking platform Dean Somerse
• to reinforce and maintain awareness of the brand and its involvement in motorsport
For the final word, ABR spoke to Grant Bowring, Marketing Director, Subaru Southern Africa. From Subaru’s perspective, Grant
explained that production cars is a business, and that it teaches and encourages camaraderie, promotes relationship building, and very
importantly, creates heroes. The real buzz for him is that no matter where Subaru races, people are shouting for the team and the driv-
ers – and that is what it is all about! ABR sees no argument with that, but we would like to add our penny’s worth. If you are in spon-
sorship, always leave some budget to leverage off the money spent. It is no use just racing on the track and thrilling a very small niche
market. Then you are wasting your money. Spend a little more to tell the broader automotive community and the even broader public
out there about your exploits. That is the role of magazines such as ABR – we are your voice to the industry, and beyond. Use us, and
then your sponsorship spend starts to gain traction.

An eager crowd waiting for a spin around Zwartkops


October 2010 83
Fast Wheels

F1 TITLE RACE
HOTTING UP
With the European GP season over for 2010 and with five races to go, there are five by Roger McCleery
drivers who can lift the title after nineteen events on 14th November in Abu Dhabi.

T
here were four drivers in with a chance at the start of from England with 165 points. If the heavens do open at any of
Round 14 at the Cathedral of Speed in the Royal Park the remaining five races, Jensen is in with a chance due to his
at Monza. That is until Alonso and Ferrari came good smooth driving style that works in the wet and saves tyres. Also
and won the Italian Grand Prix to go ahead of reigning provided Vettel doesn’t punch him off the track, as he did at Spa
champion, Jensen Button and Sebastian Vettel, who although des- in the rain. Sebastian Vettel (Red Bull) with 163 points, who won
perately quick, has had a few serious bloops along the way in his going away in boring processions in Malaysia and Valencia, shows
Red Bull. What a place for Ferrari and the Spanish twice-World how not to win a World Championship. Pole positions, bad starts,
Champion to start a serious com-back in the front of the faithful collisions and a bad attitude at times, caused by not knowing
“Tifosi”, who flocked to the winner’s podium at Monza in their some obscure rules enforced by the Formula 1 suits, sees him cur-
tens of thousands. If you ever want to see just one Grand Prix in rently in 5th.
your lifetime and to experience what GP racing and Ferrari mean
to a nation, get to the Italian Grand Prix at Monza. The Tifosi just So the pressure is certainly on these talented men and all the oth-
love their motor racing. No. Are fanatic about their motor racing ers in the line-up and their teams that build and maintain these
and know everything about it. Rightfully so as it is a nation that incredibly fast and capable pieces of racing hardware. To make it
has done so much for two and four wheeler sport in the world. exciting for all of us, pray for rain. Then everybody in the team
gets involved and not just the driver and pit-crew. It also brings
Hopefully the remaining Grands Prix in Singapore, Japan and
on more drama. Of the circuits, Singapore at night should be a
Korea for the first time, Brazil and Abu Dhabi will be free of con-
processional bore, except if a team plans to crash and block the
troversy, normally initiated by the stewards. Let’s see all the drama
track and bring out the safety car. Suzuka is one of the tradition-
unfold on the track as 24 very talented drivers in superb motor
al great circuits and it will live up to its reputation of being bril-
cars fight put these final five GP's. Of the five drivers, who has the
liant and quick. Korea is an unknown, if the circuit is in fact fin-
best chance of being the World Champion in 2010? Leading after
ished in time. Interlagos will also be another classic, whilst Abu
Monza, is Australian Mark Webber (Red Bull), with 187 points,
Dhabi with the best facilities will finish the season hopefully as a
who has won four Grands Prix (Spain, Monaco, Britain and
nail-biting decider for the title.
Hungary). He seems the most consistent and level headed of the
lot. Will he join other great Australian World Champions, Jack Teams, despite the rules, must decide on their Number 1 driver
Brabham and Alan Jones and lift the title? Close on Webber’s for the run-in to the end of the year. Ferrari paid $100 000 to
heels is super-fast 2008 World Champion, Lewis Hamilton announce theirs was Alonso, when Massa was told to move over
(McLaren) with 182 points. He has had three wins (Turkey, for him in Germany. Red Bull must back Webber, although Vettel
Canada and Belgium). He also consistently shows flashes of bril- will be the hell-in. McLaren, who always say their drivers are free
liance. In third there is twice World Champion, Fernando Alonso to race as they wish, have got to make Hamilton their first choice.
(166 points) from Spain with three wins as well – Bahrain, Although this time it is difficult with two World Champions in
Germany and Italy. If his Ferrari and team keep up their current the line-up and Button their Number 1 hope if it rains. I am sure
form, he could with a bit of help from the opposition, take his 3rd team instructions in time will be forgotten about or dropped as a
world title. As Spaniards seem to win everything these days – ten- rule in the future.
nis, golf, motor cycling, it would only be right that he adds to
their list of successes. Fourth with two wins under his belt is rain- It is going to be an intriguing end to a dramatic season on this cir-
master and reigning World Champion, Jensen Button (McLaren) cuit.

Answers From page 59

1. Volkswagen Polo Vivo 9. Jody Scheckter and 12. Jody Scheckter / Stirling 18. 305 km plus a lap
2. Jorge Lorenzo Buller Meyer (both from Moss / Eddie Keizan 19. 5
3. Majorca (Spain) East London) 13. Indianapolis at the Indy 500 20. Chicago to LA
4. Amarok 10. Germany 14. Walled up in a cheese
5. Phil Hill 11. Primarily to create jobs and factory
6. Stirling Moss move military transport 15. Ducati
7. Nissan quickly 16. Grey Daimlers
8. Maranello 17. Austrian

84 October 2010
Midas Sport
A series of articles on Midas motorsport initiatives in 2010

Midas Sport makes motor-


sport magic by Steve Wicks
Automotive spares giant Midas returned to motorsport this year with a unique
three pronged circuit racing plan.

M
idas entered the Bridgestone Production Car
arena with Richard Pinard who initially raced a
Lotus Exige. It also secured naming rights for
the 2010 Formula Ford championship which
coincided with the introduction of the Duratec
engine and in addition to taking the naming rights, Midas also
backed the car driven by former champion Robert Wolk.

Having started the year racing the nimble supercharged Midas


Sport Lotus Exige in the Bridgestone Production Car champi-
onship, Richard Pinard switched to a Subaru Impreza STI after the
fourth round. “The Lotus was prepared by Carel Pienaar’s SP In the middle part of the season he won
Engineering team which also prepares the Subaru Impreza STIs six races on the trot to claim the title
driven by Hennie Groenewald and Dawie Olivier, so from an engi- with a round to spare. “The car has been
neering and preparation point of view it just makes a lot of sense good, but it wasn’t an easy champi-
to concentrate on one type of car,” said Pinard. onship as the competition was tough,”
said Wolk who won a kart champi-
Despite the lack of seat time, Pinard quickly got to grips with the onship before moving to Formula Ford
handling of a four wheel drive and was delighted with sixth place where he won the title in 2004, 2005
in his debut race. He went one better in race two where he came and 2008.
home fifth.
Now an integral part of South African motoring culture, Midas is
He was looking forward to the longer third race, but the slippery a retail store designed around the needs of any vehicle owner focus-
track at turn one caught him out and he retired. ing on various product ranges from parts and accessories through
to lifestyle equipment. There are over 265 franchised outlets in
Next stop was Zwartkops where niggling handling issues and a Southern Africa, including Swaziland, Mozambique, Zimbabwe,
down on power motor kept him out of the top six but as he points Botswana, Namibia, Lesotho, Mauritius and of course South
out, “these all-wheel-drive cars are a different kettle of fish and the Africa.
technique needed to get the best out of them is different compared
a front or rear wheel drive cars, so the seat time is valuable. We’ve
found some power and I’m looking forward to the Cape Town
race.”

The Midas Formula Ford series has risen to become the most
important single-seater category of racing in South Africa and the
quality of racing does its status justice.

A fully paid drive in the internationally acclaimed Formula Ford


Festival in England is the prize for winning the championship one
of the reasons why Midas Formula Ford has attracted the cream of
South Africa’s young drivers.

Thanks to unrivalled dedication, Robert Wolk booked his spot on


the grid for the Formula Ford Festival at Brands Hatch on 16th -
17th October.

Driving the Midas Sport liveried Mygale, Wolk has been in a class
of his own this year and clinched the Midas Formula Ford cham-
pionship to bring his tally of his F/Ford titles to four.

October 2010 85
THe Fink

Letters to the Editor


“My liege, and madam, to expostulate what majesty should be, what duty is, what day is day, night night,
and time is time, were nothing but to waste night, day, and time; therefore, since brevity is the soul of wit,
and tediousness the limbs and outward flourishes, I will be brief. Your noble son is mad. . . .”

B
revity is the soul of wit, and also the soul of readers’ letters. Therefore, this month’s “Letter to the Editor” winner is Sifiso
Khumalo, who via this on-line query through www.abrbuzz.co.za even outdoes Polonius. Sifiso’s query was short and to the point,
“What is the economic behaviour in term automobile industry? What is concentration ratio? How much does it contribute to
GDP?” So short, that it required a keen mind to provide an answer, so we went to our economic guru Tony Twine to provide the answers.

“Hi Sifiso,
The economics of the SA motor industry cannot easily be summarised – I reckon there are probably 50 or more post graduate the-
ses written every year at South African universities, and I am aware of more that get generated at foreign universities. I am able to
assist with part of your enquiry, in terms of contribution to GDP, for which please see the attached copy of our Revs newsletter for
April 2010. I am not familiar with the “concentration” measure, as this tends to be a little too micro economic for my office. If
you can indicate what you need to calculate it, I may be able to help you with basic data. I hope this helps.
Regards,
Tony Twine”

Tony is always ready to educate, no matter where the query comes from, and the Revs newsletter for April 2010 provided Sifiso
with an array of data and graphs to satisfy the most enquiring mind. Space constraints do not allow for this to be duplicated on our
Fink page, so we leave you with Tony’s conclusion and outlook:
“The South African motor sector once again lived up to its reputation of being an exaggerated barometer of overall economic activ-
ity within the country. With the economy spending the first half of the year in recessionary conditions, and struggling to move out
of the trough created by negative growth since just after the mid-point of 2008 during the second half of 2009, the performance of
the automotive sector was further debilitated by the crunch on automotive demand which set in around the world at much the same
time. There was literally nowhere for the domestic sector to look for additional turnover or value added, and the inevitable result
was a decline in the sectors proportional contribution to GDP, which ultimately recorded levels last seen when the domestic econ-
omy was very close to being in a recession in the last years of the 1990’s. The decline in GDP contribution reflects a decline in the
sum of the values of rewards to the factors of production of the sector, including the remuneration of labour, returns to capital, and
profits to entrepreneurs within the industry. Inevitably, this led to business closures in both the manufacturing and retail ends of
the sector’s production spectrum.
2010 has begun with three months of significantly restored domestic demand in the new vehicle market, which has been accompa-
nied by even bigger increases in exports of vehicle units. It is believed that the used vehicle market is continuing to enjoy useful
growth in unit sales, which are believed to have increased during 2009, despite revenue to the used vehicle trade having reduced
that year. Sales of accessories within the automotive trade have not reduced throughout the downturn in the activities of both the
sector and the domestic economy at large, and there appears to be no particular reason to suspect that they will do so during the
course of 2010. The only cause for concern may well be that the maintenance, service and repair activities of the retail end of the
automotive sector may continue to show signs of revenue and value added contraction during 2010, driven by the simple fact that
sales of new vehicles, which inevitably drive the volumes through trade workshops, have fallen significantly over the past three years.
Nevertheless, the value added by the vertically integrated automotive sector is likely to grow in both real and nominal terms during
2010, as well as increasing the share of value added within the domestic economy. This is likely to be assisted by recovering glob-
al demand for automotive products, and an already visible increase in South Africa’s exports, at least at the CBU vehicle end of the
product spectrum. GDP share levels of at least the proportion of 2007 (6.7%) could be restored.”

Win a Midas Voucher The judges’ decision, no matter how one-eyed they are,
will be final.
The FINK is looking for letters to the Editor. The more the
merrier, and the more thought provoking of these shall find their
way into ABR. The best letter will win a Midas voucher to the
value of R500. So get out those pens and write to:
The Fink
P O Box 102
Wendywood, 2144
Or Fax 0866 579 289
Or email:bigheart@iafrica.com

86 October 2010
The Last Writes by Baron Claude Borlz

“For our more discerning readers .....”

e d i b l e s tory
An incr as on holiday in Kenya after greadbuushat,inhge SEX AFTER DEATH
r Davies w a hike through
th
In 1986, Pete U niversity . On e leg raised in A couple made a deal that whoever died first would come back and
N or th W es te rn d in g w it h on
from hant stan it very inform the other if there is sex after death. Their biggest fear was that
ac ro ss a yo ung bull elep d , so Pe te r approached
cam e distres se foot, there was no afterlife at all. After a long life together, the husband was
ai r. T h e el ep hant seemed , in sp ec te d the elephant’s
the
t down on on
e knee careful- the first to die. True to his word, he made the first contact: "Marion
fu lly . H e go p ly em be d ded in it. As
care d dee h his ... Marion. " "Is that you, Bob?" "Yes, I've come back like we
fo u n d a la rg e piece of woo w or ke d th e wood out wit
and Peter e ele- agreed." "That's wonderful! What's it like?" "Well, I get up in the
d as ge n tl y as he could, rl y p u t d ow n its foot. Th
ly an t gin ge on its morning, I have sex. I have breakfast and then it's off to the golf
e, af te r w h ic h the elephan it h a ra th er curious look
knif an, and w frozen, course. I have sex again, bathe in the warm sun and then have sex a
t tu rn ed to face the m m om en ts . Peter stood
ph an ral ten se the ele- couple of more times. Then I have lunch (you'd be proud - lots of
, st ar ed at him for seve g tr am p le d . Eventually
face t bein for- greens). Another romp around the golf course, then pretty much
n g of n ot hing else bu d w al ke d aw ay. Peter never
thin ki rned, an r, Peter have sex the rest of the afternoon. After supper, it's back to golf
t tr u m p et ed loudly, tu at d ay . T w enty years late
ph an ents of th son. As course again. Then it's more sex until late at night. I catch some
th at el ep h ant or the ev Z oo w it h his teenaged
go t Chicag o creatures much needed sleep and then the next day it starts all over again."
w al ki n g through the en cl os u re , one of the
w as hant eron "Oh Bob, are you in Heaven?" "No........... I'm a rabbit in
ap p ro ac hed the elep er e Pe te r an d his son Cam
th ey near w h lifted its Arizona." And shame on you who thought he was going to say he
rn ed an d w alked over to ep h an t st ar ed at Peter,
tu bull el t did that was Jacob Zuma.
e st an d in g. The large it d ow n . The elephan
w er , then p u t g at the
t fo ot of f the ground d ly , al l th e while starin
fr on ed lo u not help
ra l ti m es then trumpet r in 19 86 , Peter could
Pig Spotter
se ve coun te up his
an . R em em bering the en ep h an t. Pe ter summoned
m
this was the
same el the enclo-
d er in g if d m ad e his way into Gatiep goes into a bar to have himself a cold one. Twenty min-
w on railing, an in won-
u ra ge , cl im bed over the el ep h an t an d stared back e utes later, a policeman enters the bar and asks," Who owns the
co to the nd on
re . H e w al ked right up n , w ra p p ed its trunk arou dog tied under that tree outside?" Gatiep says it is his. "Your
su ed ag ai ng h im
hant trumpet th e railing, killi
der. The elep him ag ai n st dog seems to be on heat" the officer comments. Gatiep
and slammed t.
of Peter legs the sa m e el ep h an replies, "No way... She's cool 'cause she's tied up under that
bably wasn't
instantly. Pro shade tree." The policeman says, "No! You don't understand.
Your dog needs to be bred." "No way," says Gatiep. "That dog
doesn't need bread. She isn't hungry 'cause I fed her this morning'."
The exasperated policeman exclaims, "NO! You don't understand;
Some one liners that could your dog wants to have sex!" Gatiep looks askance at the cop and
get you into trouble: says, "Well, go ahead. I always wanted a police dog."

In a pub quiz the other day I lost by one point.


The question was where do women mostly have And finally, some profound
curly hair? Apparently, it's Africa. thoughts, courtesy of H L Mencken
One of the other questions was to name two
things commonly found in cells. It appears that ‘A cynic is a man who, when he smells flowers, looks around
Nigerians and Zimbabweans is not the correct for a coffin’
answer.
“There is something even more valuable to civilisation than
My wife told me I was no longer romantic so I wisdom, and that is character”
booked a table for the two of us on Valentine's
Night. Problem was she sucks at snooker and “It is a sin to believe evil of others, but it is seldom a
darts. mistake.”
You can say lots of bad things about paedophiles
but at least they drive slowly past schools. “The great secret of happiness in love is to be glad that the
other fellow married her”
Just put a deposit down on a brand new Porsche
and mentioned it on Facebook. I said "I can't “We must respect the other fellow's religion, but only in the
wait for the new 911 to arrive !" Next thing I sense and to the extent that we respect his theory that his
know a couple of hundred bin Ladens have wife is beautiful and his children smart.”
added me as a friend !!

88 October 2010

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