38 the OYLEY Price of Oil 40 Truck Shows – a Thorny Issue 58 AAMA Alert 73 Marching to Pretoria 86 the Tree Bears Fruit 90 Information on AARTO
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38 The OYLEY Price of Oil 40 Truck Shows – a Thorny Issue 58 AAMA Alert 73 Marching to Pretoria 86 The Tree Bears Fruit 90 Information on AARTO The Phoenix Keeping 35 Million Wheels on the Road Estimates vary, but there is general consensus that South Africa’s car parc is close to reaching nine million vehicles, and that these vehicles need to be serviced and maintained at the highest level possible. There is also no definitive average age for this car parc, as estimates once again vary. The lowest realistic estimate is around nine years, whereas the highest credible estimate is touching twelve years. Based on this, ten years would seem to be the happy medium. Considering that the sweet spot for the automotive aftermarket industry is in the four to twelve year old bracket, these figures make for some mouth watering statistics. he point of this editorial is that for the sake easy targets make one look proactive and relevant. Take our traffic of our economy our vehicles need to keep authorities, for example. But I digress, once again. moving. Taking this a little further, every- thing needs to keep moving, and there is Our vehicle parc is paramount to the efficient working of our no better illustration of the damage inflict- economy, and it is my assertion that it is being well served by the ed when things stop moving than the various players in the industry, from the front line of workshops, absolute frustration experienced and the spares shops, specialists, service providers, and the like, right concomitant drop in productivity when we through to the motor manufacturers, who start the cycle. And bear the brunt of rolling blackouts, courtesy of Eskom. With feeding this front line are the importers and distributors of parts, TEskom, we have no and there is space for all option but to bite the who deliver. If you bullet and put up with analyse these compa- the pain, plus the added nies, you will see that insult of ludicrous price they all talk the same increases. A painful language, of implemen- crash course in the ben- tation. They are fiercely efits of competition, competitive, fiercely and the dangers of independent, and fierce- monopolies and state ly proud. They are the intervention. But this is pockets of excellence not an Eskom bashing Which is the better scenario, from the consumer’s point of view? that Clem Sunter refers exercise, as they do the to in his optimistic sce- job very well themselves. We are looking at the transport industry nario of South Africa’s prospects, and the most common thread in and personal mobility, and the need to improve the status quo. their endeavours is cost reduction, which allows for margin reduc- tion and affordability for those at the bottom of the feeding chain. No sane person would ever suggest that the automotive aftermar- Affordability is a key issue for the South African motorist, and this ket is uncompetitive. Our cover story plus our insert in this issue has also created dual markets; the premium high quality market, of Automotive Business Review illustrates the point comprehen- and the cost conscious market, but also with the need for an sively. When it comes to fighting for the heart and soul of the acceptable level of quality. This is the fine balance and the thin red automotive customer, AutoZone and Midas are the two gorillas in line that the distributors have to walk as they strive to satisfy diver- the room, but there are many other players, of various sizes, and gent interests. And they are under constant attack from the fly by various flexibilities, who keep these gorillas on their toes. It is an night characters and less ethical operations, but the soon to be extremely competitive environment, which is good news for the introduced Consumer Protection Bill will cramp the style of these consumer, and good news for the economy. And it is an extreme- vultures. ly dynamic segment, with fluidity and positioning being the name of the game, ever since I started taking notice some 35 years ago. 2010 will see a new landscape, and a new dynamic, but the wheels Both AutoZone and Midas are currently going through a change will keep on moving, thanks to the Herculean efforts of the auto- of ownership, which has generated much speculation and more motive aftermarket industry. than a passing interest from the competition authorities. An unhealthy obsession, in my mind, considering the other more pressing uncompetitive sectors in our economy, but I suppose that www.abrbuzz.co.za 2 November 2009 Contents 88 3232 3434 2 The Phoenix Keeping 35 Million Wheels on the Road 6 What’s the Buzz 14 Cover Story AutoZone – not just a business 18 Auto Topical No Need to be Passive about Forex Risk 20 Frankly Speaking SA’s Motor Industry – Some Food for Serious Thought 22 Engine Remanufacturing Why Remtec? 24 AIDC AUTOMOTIVE INDUSTRY CONFERENCE 2009 36 The Chery Story New Chery J1 Packs a Big Punch 38 Tony’s Take The OYLEY Price of Oil 40 Weighty Issues Truck Shows – a Thorny Issue 42 Health Care An Update on Moto Health Care 44 MISA Update Statement to Contributors 46 Schaeffler Shorts The Timing is Right 52 Tyre Safety Tyres’ Contribution to Safety in Motoring 54 Diamond Dialogues Opening the Doors of Perception to Standards and Controls 56 Personal Profile Q & A with Darryl Jacobson 58 AAMA Alert A Volatile Rand 60 Customer C.A.R.E. Customer Relationship Management Trilogy Customer C.A.R.E. Programme 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 publisher, except for the quota- tion of brief passages in reviews. Publishing Editor Intelli-Driving Editor Hogg, Gilbert Graham Erasmus Eugene Herbert Keeg, Howard Advertising Sales: 083 709 8184 082 941 3785 Macaskill, Richard Marlene Erasmus McCleery, Roger 082 837 2668 Commercial Vehicle Editor Correspondents Twine, Tony e-mail [email protected] Alwyn Viljoen Beeton, Frank Wilde, Fingal 082 458 9332 Borlz, Baron Claude Stanton Porter Marketing Burford, Adrian Published by: Tel: 012 654 2745 Gamble, Austin Trilogy Publishing e-mail: [email protected] 4 Contents 5858 7878 8787 66 AIDC Quiz 67 Show Time Schramm confirmed as keynote speaker for Tyrexpo Africa 2010 68 Robert Bosch ESP® Basics The Golden Triangle 70 Capricorn Insights An Effective Marketing and Sales Tool 73 e-CAR Marching to Pretoria 74 Midas Moment Midas NAPA Convention ends on Emotional Note 76 Launch Technologies Launching Customers for Life 78 Partinform Algoa Bay Welcomes Partinform 82 Commercial Vehicle Update South Africa’s Toughest Warrior 83 Green News Going slowly, but going somewhere 84 Life Goes On Power GM Trio Briefs the Media 85 Corporate Conscience Midas Scores Way Above Par The Tree Bears Fruit SABAT Hosts 7th Annual Power Wheelchair Race 88 Show Time First HeavyWeight Expo 90 Intelli-Driving Information on AARTO Implementation 92 From the Cockpit Highveld Storm Washes the Blues Away 94 Fast Wheels Another Close Finish to the Formula One 95 The Last Writes Editorial Office: Subscriptions and Data Design and Reproduction: Printing: 81 Alma Road Management: j. Kraft Information Design cc Business Print Centre, Pretoria Wendywood Trilogy Trading & Promotion Tel: 012 997 6946 Tel 27 11 656 2198 P O Box 69 Fax: 012 997 6987 Official Mouthpiece of Fax 27 11 802 3979 Wendywood 2144 e-mail: [email protected] e-mail: [email protected] Tel 27 11 802 6020 Website: www.abrbuzz.co.za Fax 27 11 802 3979 e-mail: [email protected] November 2009 55 What’s the Buzz? Not a Rolling Stone TYRE FITMENT Racing driver Stirling Moss celebrated his 80th birthday on 17 September CENTRES 2009. He drove for Mercedes-Benz in one season, 1955 – an unforgettable Bridgestone South Africa has reminded year for the brand owing to the many, motorists to only use reputable fitment centres and many triumphs. Though an accident be aware of safety-critical aspects when having new put an end to Moss’ career in 1962 tyres fitted. Romano Daniels, General Manager of and he never succeeded in capturing a Group Communications and Marketing, said that world champion's title, he is regarded tyres are safety-critical items which should only be as a phenomenal driver. And to this mounted by properly-trained personnel. “Avoid the day he sees himself as an ambassador temptation to use backyard mechanics or non-spe- of motorsport. Together with co- cialists to fit your tyres,” said Daniels. “They may driver Denis Jenkinson he finished the not have the equipment or expertise to ensure your Mille Miglia in a time which still safety, and this could result in tyre failure.” He stands as a record today: after advised motorists to consult with fitment centre 10 hours, 7 minutes and 48 seconds staff if there was any doubt over the way the tyres the silver-coloured car with "722" – were to be fitted. In particular he said motorists the customary starting time of the should insist on the following: Renewing the tyre Mille Miglia – painted in red on it was valve at each tyre change; Correction of tyre pres- waved across the finish line as winner.