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

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, everything 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, Eskom,T 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 reduction 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. sure to manufacturer’s stated figure after mounting; Confirmation of correct wheel alignment to reduce unnecessary tyre wear; Correct fastening sequence when tightening wheel nuts or bolts; Correct torque value of wheel nuts and bolts. quickpic Fiat is Europe’s most ecological brand

One of the 25 best-selling automobile brands in Europe and after two years of holding the leadership position, Fiat Automobiles has proven to be the brand having the lowest average CO2 emissions on cars sold during the first half of 2009: 129.1 g/km (the figure was 133.7 g/km just six months ago). Fiat has also set a new record: it is the only full-liner brand that already today has achieved the European average goal of 130 g/km established for 2015. The record of 129.1 g/km set by Fiat was corrob- orated by JATO, a world leader in automotive advisory and research services, founded in 1984 and now operating in over 40 countries. Of the top ten brands, the bottom line shows FIAT ahead of Toyota (132.9 g/km), Peugeot (134.5 g/km), Citroen (138.1 g/km), Renault (138.9 g/km), Ford (140.4 g/km), Opel (149.5 g/km), quickpic Volkswagen (152.5 g/km), Audi (162.6 g/km) and Mercedes (178.8 g/km).

SKF’S FORZA RACING SPONSORSHIP - A SHARING OF VALUES & KNOWLEDGE SKF South Africa’s sponsorship of Forza Racing is a perfect partnership between two companies that are dedicated to offering superior quality products, exemplary service, and a shared passion for motor sport. The SKF group has been involved in the Formula One Ferrari racing team for the past 62 years while the Forza slogan, ‘Ferrari…It is in our blood’ sums up the Forza Racing vision. SKF has, for over a century, maintained a powerful global position as a leading specialist in rotating equipment and related technology. Forza Racing, Forza meaning strength, is South Africa’s premier independent Ferrari specialist and the ‘Go To’ company for all Ferrari owners and enthusiasts. Managing Director, Oscar de Oliveira, who founded Forza Racing in February 2008, has had a love of cars from a very early age and he always managed to stay close to the racing scene. Forza Racing and SKF share a number of ideals, “And” says de Oliveira, ”because we have so much in common, the sponsorship deal is a winner for both companies. It is so important to choose the right partner in this game. There has to be synergies, common ground, a passion for this often cruel and very expensive sport; the SKF team brings all this to the table. This partnership goes beyond the sponsorship of specialised bearings and related products. It is a sharing of values, knowledge, advice and technical expertise”. We also support annual fundraisers and auctions held by the Foundation. We have a very special dream to fulfil in November, for one of the children from the Foundation”.

6 November 2009

What’s the Buzz? Hi-Q Celebrates 10 Successful Years

One of South Africa’s leading consumer tyre retail brands Hi-Q celebrated in September 10 years of exceptional growth within the retail tyre and wheel industry. From just three stores in 1999, the franchise network – one of the country’s youngest major franchise brands – has grown to 178 nationwide. Managing Director Sean Harrison, who joined Hi-Q two years ago, said: “From a franchising point of view, the growth of the Hi-Q network has been phenomenal. In just a decade, the brand has become a household name in South Africa.” Over the past few years – and in spite of the turbulent economic climate – Hi-Q has been the fastest-growing brand in the retail motor industry sector. “We are very proud of Hi-Q and the enterprising individuals that make up our brand,” said Harrison. “At the time of its inception, tyre manufacturers were looking for a channel of distribution that was increasingly reliable and dependable. Global retail trends indicated that fitment centres owned by independent franchisees as opposed to corporate organisations were the best option, as they quickpic were more likely to go above and beyond the call of duty in serving their customer base.”

Renault South Africa aims for 110%

Renault South Africa has launched a powerful national campaign, with the objective of upping service delivery at dealerships nationwide to exceptional levels. The campaign’s implementation coincides with significant improvements in Renault’s market share, and further gains in sales volumes. The ‘110% Campaign’, which went public in October, will see all staff members at Renault SA’s head office, and especially Renault’s dealer network, go out of their way to make the sales, after- sales and service experience at Renault an exceptional one. “While customers expect 100% in terms of service delivery, and rightly so, we want to go one step better,” says Tim Marriott, Vice President – quality and Service, at Renault South Africa. “The 110% Campaign is aimed at ensuring that our dealerships quickpic deliver even more than expected.”

Lexus Leads the Way When it comes to quality and care for the environment, Lexus is a leader in providing the only range of PERFORMANCEHYBRID vehicles in South Africa. It’s also a well known fact that Lexus has dominated quality and customer satisfaction awards for nearly 15 years. The freshly launched RX shows a clear intention to continue that domina- tion, in particular with the RX450h, the world’s only petrol-electric hybrid SUV. The new Lexus RX has raised the bar even further when it comes to quality and cleanliness, and extensive care has been taken to ensure both these attributes reflect the premium brand’s relentless pursuit of perfection. In PERFORMANCEHYBRID guise, the new Lexus SUV really does its bit for the environment, returning class-leading CO2 emissions of just 148g/km, similar to typical 1600 family sedans. But Lexus’ consideration for the environment extends beyond the operation of its hybrid SUV to the impact its manufacturing process has, as well as its ultimate disposal at the end of its usable life. Indeed, clean manufacturing not only leads to limited environmental impact, but its attention to detail shows through in quality terms as well. Lexus’ Kokura plant in Japan is the only dedicated hybrid factory in the world. Its operational philosophy ensures cleanliness and quality throughout thanks to the use of many advanced production technologies that guarantee not only superlative product quality, but consistent levels of accuracy in every single component. quickpic

Nissan Unveils Sketch of its Future Global Compact Car

Nissan Motor Co., Ltd. has revealed the sketch of its global compact car. Planned to be manufactured in 5 countries, including Thailand, China and India, the model will be first launched in Thailand in March 2010 and will be available in more than 150 countries, including South Africa. “We aim to make an impact on the B-segment, the biggest market for passenger vehicles in South Africa” – says Mike Whitfield, Nissan South Africa, MD. This major segment caters for first time car buyers or as a secondary mode of household transport. “We are confident that the new Nissan will offer a stylish, yet value for money package,” concludes Whitfield. Timing for local introduction will be announced in due course.

8 November 2009

What’s the Buzz?

SA Women vote Suzuki Jimny Tops

The pocket-sized Suzuki Jimny 4x4 has kicked dust in the headlights of many of South Africa’s fancied all-terrainers by taking the category laurels in an annual Car of the Year contest voted for exclusively by women. The 2009 Women’s Car of the Year Awards are organised annually by the Women on Wheels motoring supplement. The supplement is edited by seasoned motoring journalist Charleen Clarke, and published in Cosmopolitan, Marie Claire, Oprah and House and Leisure magazines. The Jimny, which quickly established an enviable reputation as a big- hearted, agile and affordable all-terrainer, after being launched in SA in September last year, was one of 10 finalists in the 4xFabs category of the contest. This year’s panel of judges consisted of Clarke, together with fellow motoring scribes Helene Griffiths and Peta Lee, as well as current affairs anchor Fenley Foxen . In addition, readers of the supplement were invited to vote for their favourite choice in each of eight categories.

SOUTH AFRICA’S FIRST LIVE is happening to you. Why would you alone be YOUR NEWLY 24/7 DEDICATED ONLINE CAR privy to such an exceptionally good deal? Why LICENSED AUCTION SITE LAUNCHED are you so lucky? Chances are excellent that you’re about to be scammed,” he warns. The TEENAGER NEEDS Online Car Bid - www.onlinecarbid.co.za - fraudsters are becoming increasingly creative, South Africa’s first live 24/7 dedicated online car and Jacobson reveals that they may pose as an EXPERT TRAINING auction website, launched early in October. agent or staff member at a used car retailer or Through Online Car Bid, consumers and deal- bank. “They are extremely convincing and In the latest available global statistics, South ers will be able to buy or sell vehicles via an Africa ranked the highest in the road fatality rate appear authentic, and it’s relatively easy for them online auction process, which the company’s to dupe trusting members of the public. Their per 10 000 vehicles. A sobering enough local founders believe will revolutionise the local thought, but in October CARS (Committee For schemes are both innovative and sophisticated,” car sales industry. Online Car Bid has already he notes. More Road Safety) revealed that a new study secured partnerships with several of the coun- suggests that our road death toll has been under- try’s largest dealerships and consumers will be MIDAS / IMPERIAL DEAL estimated by more than half. While the able to bid on an extensive range of used vehicles GAINS COMPETITION BOARD Department of Transport gives a figure of 10 across all price ranges. Reserve prices, which APPROVAL 000 each year, CARS says in reality it is nearer reflect the minimum price that sellers will be 18 000. So, if your first experience of handing willing to accept, start at as little as R1. At the The penultimate hurdle in the 56% acquisition over the keys to your newly licensed teenager other end of the spectrum, multi-million rand of the Midas Group by Imperial Holdings was more one of panic than mere trepidation, vehicles will also be available to bid on. Online Limited has been successfully negotiated; it was know this – you have every right to be con- Car Bid is the world’s first online car auction announced on 8th October 2009 by Gordon cerned. Grant McCleery, a multiple SA motor website to offer a full auction house service, Odgers, CEO of the Midas Group. This sport champion, who heads up Yokohama backed by a qualified and dedicated national announcement follows the recent unconditional Driving Dynamics, has been teaching specialised sales team of Auction Ambassadors, who are approval of the transaction by the Competition driving skills for nearly two decades and in his trained to provide a transparent, safe and profes- Board, which clears the way for the procedural opinion, every man, woman and especially sional service to all clients. “Our Auction formalities of due diligence and obligatory legal teenager, needs more than just basic driver train- Ambassadors act as a ’middle man’, providing all processes, as required to finalise the deal. This ing to ensure their safety on our roads. buyers and sellers with a sales representative with announcement also puts to bed months of spec- whom they can liaise and who will assist with ulation around the merits and prospects of the He says “The K53 driver training system is a arranging safe meetings and test drives to ensure transaction. Imperial Holdings Limited had pre- great way to learn the basics but you need more the security of both parties,” says General viously approached the Midas Group with a sophisticated skills to deal with the unexpected, Manager of Online Car Bid, Simon Nainkin. view to acquiring a majority stake, as they saw like avoiding collisions, regaining control of opportunities and synergies for both Midas and your vehicle, recovering from aquaplaning, or BEWARE OF MULTI-MILLION Imperial. Imperial places great store in the finan- even just braking properly in an emergency. RAND SCAMS IN USED CAR cial performance and the strong position of Don’t make the mistake of thinking of these INDUSTRY Midas in the automotive aftermarket, and also skills as the exclusive domain of racing drivers. respects the business model, culture and man- You child needs to know this stuff if he or she is Criminals are coming up with increasingly devi- agement team of Midas, and it is on this basis going to get around safely on our roads.” ous ways of parting used car buyers with their that Imperial has committed to keeping these Yokohama Driving Dynamics has forged an money. Sadly, more and more South Africans are structures in place, and in retaining the unique alliance with General Motors South Africa as its falling prey to these fraudsters, losing millions of shareholding of the balance of shares, i.e. man- preferred vehicle supplier, to ensure that clients Rands in the process. This sobering news is agement, member franchisees and empower- get the very best instruction in quality driving courtesy of Darryl Jacobson, Managing Director ment partners. Gordon Odgers emphasises that and safety. The fleet of cars includes Corsa OPC, of Burchmore’s, who warns that buyers need to Midas is a sound Group illustrating long-term Chevrolet Lumina, Aveo’s and Optra’s and the be extremely cautious when acquiring a used car. growth and cash generation off a solid platform newly launched Cruze. Yokohama Driving “While most used car buying experiences are of well established franchises with a national Dynamics is based at Gerotek and also offers its good ones, we are hearing of new scams daily,” footprint. He continues, “The transaction will courses at a variety of venues, countrywide. For he reveals. “Generally they have one feature in provide a big brother for the Midas Group, will more information, contact the company on common: the buyer is being offered an unbeliev- fit the Imperial strategy perfectly, unlock certain 011-431-2000 / [email protected] or ably good deal.” Jacobson says that these “unbe- management and member franchisee sharehold- visit the website on http://www.drivingdynam- lievably good deals” need to be scrutinised over er matters and enable other opportunities to be ics.co.za/ and over again. “If you’re about to buy a used car embraced and as such has received unanimous at a ridiculously low price, ask yourself why this shareholder and board support.”

10 November 2009

What’s the Buzz?

World's first emission- tourism. The FIA is going to require an exceptional leader with vision to respond to the free foundry needs of the mobility industry.” said Karen Bryden, Managing Director. The election As from 2010, BMW’s Landshut plant will results will be available before this magazine boast the world’s first foundry with emission- hits the desks, so go to www.abrbuzz.co.za to free sand core production. The light-alloy get the results. foundry at the BMW plant is introducing a new sand core production method for gravity die-casting, whereby conventional organic Volvo Cars on the quickpic binders will be replaced by highly eco-friendly move towards a inorganic binders, which generate virtually no future without pollutant emissions. The introduction of this traffic accidents innovative production method will allow the light-alloy foundry to reduce its emissions of In the quest for the ultimate combustion residues by 98 per cent. The plant vision of an accident free will completely decommission its current waste traffic environment, Volvo air treatment systems by 2010. Car Corporation's bold short-term target is that no AA South Africa pledges support one will be killed or injured for Jean Todt FIA Presidential bid in a new Volvo car by 2020. "Zero is the one and only alternative for us. As the The Automobile Association of South Africa leader in car safety we can't announced before the voting that it would sup- accept that people are killed or injured just because they want to transport themselves from A to port Jean Todt in his bid for the FIA presiden- B," says Jan Ivarsson, head of Safety Strategy at Volvo Cars. If we see an aircraft crash it's a disas- cy. “FIA affiliated auto clubs worldwide, repre- ter that we remember forever. But when passing a traffic accident where someone may have been senting 100 million members and the well injured or killed, people are often more concerned with the delay in traffic. It is this attitude, that respected auto club brands, face unique chal- traffic accidents are an inevitable part of our daily lives, that Volvo wants to challenge with its lenges in areas as diverse as the environment; Vision 2020. road safety; road usage and infrastructure and

12 November 2009 What’s the Buzz?

OGILVY CAPE TOWN’S VOLK- SWAGEN COMMERCIAL VEHI- CLES CADDY CAMPAIGN PAYS TRIBUTE TO SMALL BUSINESSES

To thank all their loyal customers for making the Caddy Panel Van No.1 in its class, Volkswagen Commercial Vehicles and Ogilvy Cape Town have initiated the Caddy Panel Van Branding Challenge. The campaign is geared at acknowledging that the success of the Caddy Panel Van Range is largely due to the entrepreneurs and owners of small and medium businesses who have chosen a Caddy Panel Van as their business partner. Tapping into the entrepreneurial spirit, creativity and passion that the Caddy owners have for their business, Volkswagen’s agency of over 30 years, Ogilvy Cape Town, in collaboration with their Ogilvy Interactive team, created the Caddy Panel Van Branding Challenge. The campaign engages the cre- Timken South Africa wishes to congratulate Hennie ative side of these entrepreneurs through the use of an interactive microsite (www.vwcommercial.co.za/desi- Groenewald for winning his fourth successive WesBank gnacaddy). The site gives them the opportunity to win personalised vehicle branding for their Caddy Panel V8 Supercar Championship in stunning style at Van to the value of R30 000, thereby making their hardworking Caddy Panel Van work even harder for Kyalami on the 17th October 2009 their business.

November 2009 13 Cover Story

not just a business AutoZone, Africa’s largest engine and service parts and accessories retailer and distributor, offers more than simply a wide range of aftermarket parts to service the market, AutoZone also offers a service to the market that is unrivaled in the market place. This October, AutoZone had a number of reasons to celebrate, most important of which was the fact that it was AutoZone’s Birthday!

his dynamic business began with 30 multi-branded success going into the future. AutoZone, Africa’s largest engine and stores over 10 years ago. The brands under the service parts and accessories retailer and distributor offers a com- umbrella ranged from Eddies, Elpar, and AutoZone prehensive range of engine parts, service parts and accessories for to Femo and Spareslink. This posed some challenges passenger as well as light and heavy duty vehicles in the South in the AutoZone stable, as the business had no criti- African market. This range comprises of products from another calT mass in terms of power with which to market this wide range important stakeholder in AutoZone’s success, our local suppliers, of brands. The re-branding and expansion journey for AutoZone and is bolstered by the AutoZone House Brand programme. Our began in 2002 as we embarked on a journey to collapse all the commitment to our local suppliers remains unwavering and it is brands into one powerful brand, namely AutoZone. Now in 2009 through commitment and strategic relationships with these suppli- as we sit and look back a couple of years, we saw the successful ers that we will be able to continue focusing on offering the best launch of the AutoZone Member model in September 2005, the available product to our customers. expansion to a footprint of 90 wholly owned stores and an incredible team of over 2000 people who form part of the AutoZone Having established and bedded down our core offering, AutoZone Family. We also saw the evolution of a business and service in this strongly believed that there was still more they could do for their market that are truly unique and a business with a personality we customers in the market. As such the AutoZone House Brand are proud of and are committed to growing. programme was launched. Every single one of our 5 brands was born from the mindset that we needed to offer our customers a Core to AutoZone is our Customer – no matter how big or small genuine alternative product that is cost efficient. These brands, they are, whether they are a long standing customer or the cus- namely Ampro, AutoKraft, Ecotech, Femo and Spirex, comple- tomer who walks through our doors for the first time simply to ment the local brands in the offering and make it unnecessary for shop – and as such our offering to the Customer is crucial to our customers to look anywhere else to satisfy their product needs.

14 November 2009 Cover Story

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

AutoKraft - AutoZone has developed an exclusive range of accessories, all under the AutoKraft range. These range from core categories such as camping and outdoor equipment, to workshop equipment. This world- class range even includes custom car accessories such as car seat covers and wheel covers, all backed by our Hassle-Free returns policy.

Ecotech - The Ecotech range from AutoZone covers all automotive electrical products, and caters for all types of vehicles from passenger vehicles to light and heavy duty commercial vehicles. This range of exclusive products is the largest and fastest growing range of top quality electrical products available. The Ecotech range includes products such as starters, alter- nators with their respective components, trailer plugs and sockets, electrical terminals, and on/off road lighting. AutoZone ensures that all Ecotech products are quality tested and vetted, ensuring that you get the most up to date technology, without paying inflated prices. AutoZone backs this up with their 12 month “hassle-free” warranty, offering you peace of mind.

Femo - Femo is a top quality range of internal and external engine components, designed for a wide range of vehicle makes and models. This broad range includes piston rings, valves, bearings, sleeves, water pumps, fuel pumps and much more. The entire Femo range is also covered by AutoZone’s 12 month No-Hassle Returns Policy.

Spirex – Spirex is AutoZone’s range of top quality automotive hard parts and chemicals. This range of reliable, top quality products is affordable and inclues a wide range of products from brake pads, brake drums, fil- ters, wheel bearings, fan belts, batteries and C.V. joints to oils and other chemical additives.

November 2009 15 With the right products in the right places to satisfy our customers, AutoZone set about getting to know all of our customers and defining what else AutoZone could offer all of our customer types. These key ingredients would differentiate AutoZone from other players in the field. From this search for new offerings came the birth of a number of industry firsts:

• Technical Team – more affectionately known as “The Pit • V.I.P. Cash Customer Programme – AutoZone believes in Crew”, this team of people offer free technical and fitment looking after all of their customers, not only the trade or advice to all our customers. This team is available from 7am account customers. If you are a cash customer at any to 7pm, 7 days a week on a toll free number 0800 200 993. AutoZone store, then you are eligible for the AutoZone VIP Card. This card gives cash customers the ability to earn points • 24 Hour Call Centre – the call centre is a hub of communi- and redeem them for exciting products. The best part is that cation for AutoZone – whether it be in the form of inbound this card is absolutely free of charge! calls from customers who need assistance and direction or outbound campaigns to assess our levels of service to • Dedicated team programmes, retail management develop- our customers. Our Call Centre can be contacted 24/7 on ment curriculum and a programme to grow AMBASSA- 086 11 22 111. DORS in our business and build our AutoZone family.

• We guarantee everything we sell, no hassle! – AutoZone • Independent Spares Shops: Our pipeline to success – is proud of what we sell and stand behind everything we sell. These valued customers have supported AutoZone through AutoZone is committed to always offering the best and various changes in ownership and name, and continue to sup- providing an excellent service overall to our customers which port us. The independent spares shops are an essential aspect includes an after sales service that is not equaled in the of our business success and we are committed to offering market. them the best parts and service at all times.

16 November 2009 Thinking about the future, the AutoZone business is committed to overall excellence in everything we do for our customers – excellence in product, excellence in relationships, excellence in service and excellence in the AutoZone Family. No matter whether you are an engineer, workshop, fitment centre, independent spares shop or an at home D.I.Y. mechanic, next time you need a part, why choose anyone else? AutoZone is not just a business, become part of this Family, enjoy our phenomenal service! November 2009 17 Auto Topical NO NEED TO BE PASSIVE ABOUT FOREX RISK by Tony Twine At the AIDC Automotive Industry Conference 2009, held in Port Elizabeth early in October, an old topic of industry indigestion surfaced once again. It takes the form of dissatisfaction regarding the high level of instability of the foreign exchange value of the Rand, and appeared to be particularly troublesome to local producers of components trying to penetrate export markets. One can see their, and any other South African exporter’s point. Apart from the rolling cycles and sharp random movements that can be seen in the indexed Rand prices of currencies on a month end observation basis over long periods of time, depicted in the accompanying graph, the hurly-burly of even single day trading ranges can make or break anything resembling a profit margin on any deal. A recent example of this was the 24th October 2008, the day during which the crude oil price fell back below $60 per barrel after climbing to $147 on 4th July that year. On that day, the Rand opened trading in South Africa at R10.91 to the US Dollar. By around lunchtime, it had touched R11.76, before returning to close at R10.26. f course, the Rand has not exporters in general, when it comes to try- expected to have these kinds of skills. As a been the only currency with ing to plan export pricing strategies that result, very few of them today have the significant levels of volatility will simultaneously be viable back home time or information resources, or indeed on a daily, weekly, monthly or and attractive to overseas customers. It the skill, to maneuver successfully around Oeven annual basis during recent years. seems unlikely that any sudden medium or international foreign exchange markets, let Since it came into existence a dozen years long term stability will return to global alone other asset markets that may be nec- ago, at an initial exchange rate of $1.14 to currency markets in the medium term essary to hedge against losses of value of the Euro, the European currency has been future, so the only answer for local currencies in general. But there are spe- as low as $0.76 and as high as $1.48. The exporters is to use apparent disadvantages cialists who can either advise or transact on example quoted above of Rand volatility to your maximum advantage. behalf of clients, often starting with an would have been bad enough if the Dollar The point is that exporters, at least for a exporter’s own bank. was the only currency in the automotive time, have assets that are denominated At its heart, foreign exchange exposure for trading mix, but other currencies tend to outside of the Rand, and therefore the any business with either import or export move in directions that either compensate controls of the authorities within the Rand interests, and sometimes both, is really just or exaggerate the movements in the monetary area, namely the SA Reserve another risk. Even within the constraints Rand/Dollar rate over any period of time. Bank. As long as the asset is legally outside of foreign exchange controls, South While that may appear to be a complicat- of these controls it can be traded for other African exporters have plenty of tools to ing factor at first glance, it may supply at currencies, which can act as a type of help turn possible overwhelming risk into least part of a solution to the volatility hedge for the local exporter, until it is nec- profit. We cannot expect the world to give problems facing automotive component essary to bring the asset home, requiring it us a flat line exchange rate against any cur- exporters in particular, South African to be converted to Rands. For decades, the rency, but we can use the lumps and South African business man was not bumps to our advantage.

18 November 2009

Frankly Speaking SA’s Motor Industry: Some Food for Serious by Frank Beeton Thought

Although this column usually looks at issues in the global Motor Industry, it has been known, on occasion, to divert its attention to the South African scene when matters relating to the interface between the local and international industries emerge. Towards the end of 2008, for instance, when details of the Automotive Production and Development Programme were first announced, I spent some time broadly sketch- ing the history of light vehicle manufacture in South Africa, and making some suggestions regarding directions that local industry participants might consider pursuing after the APDP’s introduction in January 2013.

he general reaction to the APDP was positive, Down components should always be more cost-effective than endorsing its key elements of stable and moderate shiploads of Fully Built Up Cars containing large volumes of very tariffs, a Local Assembly Allowance for manufactur- expensive air! Surely, under these circumstances, local assembly ers producing more than 50 000 units per annum, a will always beat FBU imports, irrespective of the level of local tradable Production Incentive providing duty credits content. forT local value added, and an Automotive Investment Allowance amounting to 20% of project value. Early in October, however, Volkswagen SA has enormous experience of both importing and NAAMSA president David Powels, who also happens to be the exporting cars, so David Powels clearly knows something about Managing Director of Volkswagen South Africa, made some inter- optimum local content levels that I don’t. I am quite happy, how- esting comments at the SA Automotive Week conference in Port ever, to accept his position on the competitiveness of local logis- Elizabeth. In a nutshell, he identified problem areas with respect to tics costs, and the lack of finalization of the APDP, which still low levels of local content, uncompetitive local logistics costs, and needs fleshing out in the area relating to component exports, and government policy uncertainty. He predicted that, if these were in particular catalytic converters. This latter situation must be of not addressed, the local motor industry may not survive beyond great concern to an industry subject to long decision lead-times. the next seven to ten years. The present government does not have a good track record when it comes to reacting fast, and I think that the main message on How things have changed! Back in the bad old days of the Local offer here is that it should not consider the continuing existence Content Programme, any suggestion that the local percentage of a local motor manufacturing sector as fait accompli. The should be INCREASED would have been met with horror. The increasing militancy of local labour, and its propensity to strike, problem with that mass-based programme was that to achieve a will also not endear it to the overseas principals of local operations higher local content level meant localising ever more complex who are desperately chasing viability in an increasingly more com- components and assemblies, with accompanying escalations in petitive world market. the amount of investment needed. There was also the situation where overseas plants may have been happy to delete increasing While there may be some qualitative issues that are currently pre- numbers of components from their packing cases, but they cer- venting Indian and Chinese manufacturers from dominating the tainly did not delete their profit margins from the accompanying world stage, we can rest assured that these will not be around for invoices! The South African vehicles may have been “protected” long. Once the burgeoning domestic Asian markets have been sat- by stiff tariff barriers, but the final price paid by the customer in isfied, and start to stabilise, manufacturers in those countries, Eloff Street Extension became extremely high by world standards. with or without the co-operation of the major Western and Japanese firms, will start to look very much more seriously at their This call for higher local content must reflect the greater export- export prospects. Tata already has manufacturing capacity in orientation of the present industry, which has been fully integrat- South Africa, and several other “investigations” into local assem- ed into global supply networks by its overseas parents. Cars bly by Chinese and Indian brands are proceeding. With their required only for local consumption under the APDP would sure- huge domestic capacity, these companies will not invest in South ly be most effectively provided by some mix of local assembly, Africa unless the local industry, and its supporting logistic struc- low-tech local component sourcing and, as I previously suggested, tures, can achieve world-class standards of efficiency, reliability, inter-brand co-operation to get the full benefit of the 50 000 unit quality and cost. They also do not have long histories of giving in Local Assembly Allowance. The current pricing scenario does not to the demands of militant unions, or providing social comfort to provide any clear distinction between imported and locally built their workers. This is something that local politicians and labour cars, despite the 30% import duty on fully built-up imports. It leaders would do well to remember. seems logical that shipping in containers of Completely Knocked 20 November 2009

Engine Remanufacturing Why Remtec? When it comes to replacing an engine, the question is what is the best option? A new engine for a vehicle that is over five years old is most probably out of the question, because of the relative values. The answer seems to be a remanufactured unit, but at what risk? You get remanufactured and remanufactured, so you need some reassur- ance before parting with your hard earned cash. How do you play it safe? With Remtec you play it safe. emtec is basically an OE remanufacturing facility, as it was originally the Volkswagen Remanufacturing facility, and renamed Remtec Manufacturing when purchased by a Port Elizabeth based group in July 1995.R With the majority of staff taken over at the time of purchase, the OE genes are still there, and Remtec is now the exclusive supplier of remanufactured engines to VW of SA, General Motors South Africa, Ford Motor Company of Southern Africa, Nissan South Africa and Land Rover South Africa. Thus purchasing a Remtec engine comes with a significant pedigree, which is great news for the greater automotive aftermarket.

With vehicle sales in a slump, and motorists hanging on to their cars for longer, the demand for remanufactured engines is sure to climb over the next few years, and automotive workshops will need to satisfy this demand with reliable engines and a promise of David Pitt, Managing Director of Remtec Manufacturing, stands peace of mind. Remtec provides this. With their exchange policy next to an engine ready to be shipped to another satisfied customer which keeps turnaround time to a minimum, a passionate commitment to quality, the building of all units to OE specs, nation- back time and time again, for services, tyres, brakes, and more. wide technical and warranty support, and a modern facility that There may be cheaper engines out there, but they are practically can handle increased volumes, Remtec is well placed to efficient- guaranteed to be inferior, as Remtec has access to original parts at ly handle the expected boost in demand. The demand has already competitive prices, and these are unlikely to be matched by other ratcheted up, and thus Remtec is in the fortunate position to rebuilders, unless they are buying down. Remtec’s quality is now report that it has not had any retrenchments during the current internationally renowned, and they have a growing export economic downturn. There are other benefits for the trade. business. Join the global Remtec family, because you should not When fitting a remanufactured engine at such reasonable prices, be asking why, you should be asking why not? the workshop gains a customer for life, and that customer will be

Every complete diesel assembly is dyno tested, and supplied with a dynometer certificate. Every petrol unit is hot tested before shipment.

22 November 2009

Much Brouhaha over a Phantom Bailout

The second edition of the bi-annual South African Automotive Week, held in Port Elizabeth from 7 – 10 October 2009, came with some unique challenges. We use the word “challenges” not because ABR loves the word (in actual fact we believe this is one of the overused words in South African discourse at all levels) but because of the frequent use of this word by practically every single one of the speakers at the AIDC conference. Maybe our attempt at incongruity backfires, because this time the word was used with some justification.

s Andrew Binning, Chief Executive Officer of Inkanyezi plus. Component manufacturers thus hold the key to the survival Event Organisers, the organiser of the event, put it in of the industry, and of course government can play a role in this his foreword to the Visitors’ Guide, “Planning over the dynamic. Another challenge is South Africa’s high cost base, past two years has been complicated by one of the worst which is as much as 40% more expensive than countries such as globalA recessions in history. This has restricted international visi- India and China. As if this is not challenging enough, South tors to the event.” An understatement of note, but Andrew did Africa has the added burden of port charges 10 times higher than have the opportunity to host the AIDC Automotive Industry China, and port productivity at shockingly low levels. Powels Conference as part of the week, which definitely was a master called for more transparency and more collaboration from stroke, and in the opinion of ABR, this event saved the SAAW, Transnet, otherwise options such as the Maputo Corridor will and if we were Mr. Binning, we would be signing up this confer- become increasingly attractive. He also appealed to government to ence for 2011 right now. Another scoop was the appearance of the speed up the introduction of fuel quality standards, as our stan- much touted Joule on show, and hopefully when SAAW 2011 dards preclude the use of the latest engines, and thus the mooted comes round, the Joule would have moved from concept to reali- emission based tax is basically putting the cart before the horse, ty, and flying the South African flag both domestically and glob- and will unnecessarily increase car prices by two to seven percent. ally. Come rain or shine, ABR shall be there to reveal all. As Powels put it succinctly, “Put enablers in place before punitive taxes”. ABR translation: The emission tax is insanity! Powels The highlight of SAAW was, as we said, the AIDC Automotive warned that the honeymoon period for South Africa is over and Industry Conference 2009, with some stimulating and insightful that the silver bullets for survival are: presentations together with sharp repartee on the panel discus- • Increased volumes per platform sions adding spice to an already loaded programme. ABR consid- • Higher local content levels ers that the thrust and parries on display would have impressed an • Supplier competitiveness Olympic fencer or even a busking sabre rattler. The first en garde • Support from the IDC and programmes such as APDP manoeuvre came from David Powels, President of NAAMSA, for an “Industrialisation Strategy” whose day job is MD of VW. In his keynote address, titled “A • Industry to improve productivity reflection on the first year of the economic crisis”, Powels took • Massive investment in training and skills development government to task for not responding aggressively to the crisis, unlike their international counterparts, who have introduced a The response from government, in the form of Deputy Trade and range of measures to assist their domestic beleaguered automotive Industry Minister Thandi Tobias-Pokolo, in her keynote address industries. He pointed out that whilst the global crisis began 12 the following day, was “frank and honest”, and that there would to 18 months ago, the seeds of South Africa’s troubles started be “no further funding for the motor industry”, as the South three years ago, when vehicle sales hit a peak in 2006, based on a African government did not have the finances to provide extra heady mix of low interest rates, a strong currency, pent up money for the sector, as there were more pressing priorities, such demand, and banks doing a credible impersonation of Father as social spending (ed’s note: and rather large defence contracts). Christmas. The industry geared up for a strong run of vehicle sales, and therein lies the drama. With capital expenditure at David Powels, President of record levels, but sales back to 2003 numbers, it is feast or famine. NAAMSA, warns that South Africa must wake up to the reali- Thus the South Africa automotive industry is in a double bind, ty of international competition. having geared up for higher volumes, and now staring down the He predicts the demise of the twin barrels of a rather larger shotgun named recession and uncer- South African automotive indus- tianty. The problem, according to Powels, and he stressed that he try within seven to ten years if was stating opinion rather than fact, is that current local content appropriate action is not taken in the next 12 to 18 months. is only at 35%, and that the challenge is to get this up to 70%

24 November 2009 Panel Discussions: #1 Vision 2020 – is it a reality or a fantasy? #2 Does the automotive industry deserve a bailout? An excellent innovation at the Automotive Industry Conference was the introduction of panel discussions, involving industry heavy- weights. This brilliant idea created inter-active participation and resulted in wide ranging discussions. After the discussions, the conference delegates got the chance to vote on the topics. The votes will not change the situation, but as a matter of interest, there were overwhelming majorities in carrying the votes. Vision 2020, which is the target of 1,2 million vehicles manufactured in SA by 2020, was perceived as a reality. Regarding the question whether the automotive industry deserves a bailout, the overall consensus was no! However, the question was a little unfair, as no one in the industry is actually asking for a bailout – all that has been requested is assistance to see the industry through troubling times. ABR gives its readers some incisive quotes gleaned from the interaction:

Brand Pretorius, CEO, McCarthy Holdings Vision 2020 “We are at a defining moment of our history – the Johan van Zyl, President & CEO, Toyota Motors SA future is not an extension of “The world is not the past” waiting for South Africa to play catch up. We are a can-do Stewart Jennings, President, NAACAM “The auto- nation, and we need motive component industry is in a to negotiate free severe crisis, and is a microcosm of trade agreements with Egypt, Morocco, Nigeria, etc, not China!” the employment and manufacturing challenges facing South Africa, but we are facing an unsympathetic eco- Bailout? nomic and government environment”

The Panel consisted of, from left, Gavin Maile, KPMG; Shakeel Meer, IDC; Johan Cloete (who stood in for Irvin Jim of NUMSA); and Mcebisi Jonas, Eastern Cape Province

Mcebisi Jacobs, MEC Gavin Maile, Partner, KPMG Africa Eastern Cape Department of Economic Affairs Environment and Tourism “The industry does not “Something want a bailout – it wants more robust is needed” support!”

November 2009 25 SAAW may start a new trend

Bob Dylan could have been singing about SAAW 2009 when he sang that “the answer my friend is blowing in the wind”. SAAW 2007 was the start of something great, but the exper- iment of building a giant tent town to house the exhibitors was both expensive and imprac- tical. The maze of exhibition halls made for a disconnected tour, and the real problem was the “seasonal” Port Elizabeth winds. PE is known for its friendly breezes and its windy season runs from January to December, so for SAAW 2009 the decision was taken to host the trade show in a shopping centre’s parkade area. Going underground just got a new meaning, and who knows, SAAW may have started a new trend.

nother trend that SAAW has already established is that it serves as a hook for other events. The AIDC chose SAAW 2009 for its annual automotive industry conference, NAACAM held its AGM during the conference, and a historic breakfast for suppliers was hosted jointly by the major OEMs, simply because of the convenience of having all the major stakeholders in the same place at the same time – government, OEMs, component suppliers, retailers, service organisations, etc. It is for this reason that SAAW is the only national event supported by the three big industry associations; NAAMSA, NAACAM, and the RMI. 26A November 2009 Networking – Glitz, Glamour and Gala Dinners

Networking was the name of the game at SAAW 2009. Opportunities abounded to have one on one discussions, group meetings both formally and informally, and of course the exhibition hall itself was the place to find things old and new, and to meet and make business friends. And what is an automotive show without cars.

atchmaking was an integral part of SAAW2009, and this was facilitated by a Match-making Meeting Programme and the provision of Matchmaking Meeting Rooms, available all through the show, from Wednesday 7th October to Saturday, 10th October. The Gala Networking Dinner was also a great success, where guests from across the spectrum could let their hair down, and to Mnetwork in a relaxed environment.

November 2009 27 Navigating the Storm through Development

The strategic focus of the AIDC is Supply Chain Development, Supplier Development, and Skills Development and Training. To this end, day two of the automotive industry conference was devoted to these three subjects. Space constraints do not allow ABR to go into great detail, so we give you small bites of these mini-conferences:

Supply Chain Development – Creating a to have HR strategies in place, focusing on development, talent winning global location strategy for retention and BBBEE. To close the skills gap, a holistic approach South African automotive suppliers must be adopted. Absolutely critical to this strategy is the provision of training centres, comprising a main campus, shop floor Gavin Maile, Partner - KPMG Africa centres and a commitment to continuous learning. Key aspects of Automotive Practice Leader, presented this this holistic approach are quality of supervision, employee well- paper and he said that the cycle of globalisa- being, morale and stability, communication, and company values tion of automotive supplier operations is and ethics. continuing, through suppliers expanding their operations across borders, and even moving existing capacity across borders. Despite this, or maybe because of this, this globalisation is done in an ad-hoc fashion and cognisance is not always taken of both the risks and opportunities, thus many companies exhibit a strategy deficit. South African component suppliers can use an integrated strategy that balances the competing drivers of growth, costs, innovation and risks, and one that considers the advantages and disadvantages of location decisions in the light of the intrin- sic nature of a business.

Supplier Development – Tirisano Cluster Programme Awards

Johan Erasmus, Managing Director of Automotive Training Academy

The Tirisano (Working Together) Programme has been on the go for quite a few years, and the results in cost savings and productivity gains have been impressive. Each year the AIDC presents awards to the best performing companies, and this year was no exception.

Skills Development and Training - Evaluating the Skills Gap towards realising Vision 2020 HIV and AIDS Survey

Johan Erasmus, Managing Director of Automotive Training The AIDC used the conference as an opportunity to conduct a Academy, gave some startling statistics in his presentation. The baseline study to get a snapshot view of the South African auto- age profile of artisans and technicians in the industry is well over motive manufacturing companies’ awareness and responses to 50. Compounding this reality is the shocking estimate that only the HIV and AIDS pandemic. The results of this survey will be 9% of the 2008 matriculants have been able to find formal presented on a national basis, but disaggregated to show employment. Despite this, Johan warned that the work ethic employer responses per company size, skills level, and by amongst the youth is low. His advice to companies in the sector is province.

28 November 2009 NAACAM not happy chappies

ABR met Roger Pitot, Executive Director of NAACAM, at the NAA- CAM stand, and asked his opinion on the current crisis, and government’s response to date. He said that whilst bridging finance has been provided through the IDC, and the Department of Labour had announced a scheme to assist employees on short time, this was not enough. Pitot put it frankly, “We are disappointed. In February this year, I did a survey and every government around the world had formu- lated responses to deal with their distressed automotive sectors and manufacturing in general, also implementing other indirect measures, such as cutting rates. It seems our government does not know exactly what to do to respond.” The situation is serious, and he added that OEMs insistence on price reductions in this environment, together with delays in payment, compounds the difficulties. Boost for automotive suppliers

Supplier development in the automotive industry has been given a R23,5-million boost through a partnership between the Department of Trade and Industry (dti) and the United Nations Industrial Development Organisation) UNIDO. The funding – announced at the AIDC Automotive Industry Conference 2009 at SA Automotive Week - will expand the scope of the existing business partnership programme run by UNIDO and the Automotive Industry Development Centre (AIDC) since 2003. The funding has been committed over a three-year period and is in line with UNIDO’s strength in cluster development. “The SA automotive industry is our leading manufacturing sector, but local component suppliers are under continuous pressure to improve their performance or lose business to competitors in other emerging economies like Brazil, China and India. We aim to support these suppliers in becoming globally competitive,” says UNIDO representative Tom Kenyon. “In the past five years the AIDC has implemented the Tirisano programme at over 45 companies, training more than 4,000 shop floor workers on basic lean principles and world-class manufacturing. The ultimate ben- eficiaries of this project will be Tier 1 and Tier 2 SME and BEE component suppliers in the SA automotive industry,” says Barlow Manilal, AIDC CEO . “Speaking at the announcement, National Association of Automotive Component and Allied Manufacturers’ executive director Roger Pitot challenged the provincial governments of the Western Cape and KwaZulu/Natal to also provide support for their local auto sectors.

November 2009 Provincial Slugfest The competitive spirit was alive and well at the SAAW 2009, and it was best illustrated by three regions slugging it out to catch the attention of foreign visitors and the media. Each corner of South Africa wants its slice of automotive industry action, and those who started a little late are playing catch up fast.

auteng has the most established supplier park in the country, so it was no surprise to see the opening slot at the AIDC conference go to Amanda Nair, CEO of Blue IQ. Amanda set a positive tone for the confer- enceG with the announcement of BMW’s R2,2 billion investment in its plant in Rosslyn (with strings attached), and she jokingly set a challenge for other OEMs and component manufacturers to “equal or better” this investment – in Gauteng, of course. BMW’s decision was no doubt made easier by the Supplier Park infrastructure right on its doorstep, and this must have served as a red rag to a bull to the assembled delegations punting the East London IDZ, the Maputo Development Corridor, and the Coega Charging Like a Buffalo IDZ. ABR gives a brief overview of these three East London may be the 90 pound weakling in the city stakes, but initiatives, and will go it more than makes up for its size with enthusiasm and innova- into far more depth in tion. Definitely the team with the best spirit at the SAAW, the upcoming issues. East London IDZ also made the major announcement at the show, by unveiling its innovative model for the automotive sector Amanda Nair, CEO Blue – a multi-OEM assembly facility which has already attracted IQ, challenged the indus- interest from companies in India, China and South Korea. This try to “equal or better” BMW’s investment. facility will help those companies who have not yet reached critical mass in terms of volume in South Africa, and of course the bigger carrot is for this to be used as a springboard for export to Europe and the USA, taking advantage of AGOA, etc. No Harbouring of Doubts

When it comes to ports, Port Elizabeth is doing its New York, New York thing. Not satisfied with one harbour, PE has gone ahead and built a new state of the art port at the mouth of the Coega River, just 20km up the coast from its Baakens River brother. And it looks like the Coega Development Corporation loves doing things in twos. It also has two zones for automotive industrial development – the Nelson Mandela Logistics Park situated three kilometres away from the VW plant in Uitenhage, and Zone 2 at the Coega IDZ at the Port of Ngqura. All part of a multi-billion rand initiative aimed to position South Africa as a platform for global manufacturing and export through foreign and local investments.

Gustav Meyer, Business Development Manager: Automotive and Logistics, Coega Development Corporation, briefs guests at the corporation’s spanking new premises Tembela Zweni, ELIDZ Executive Manager: Business Development; located in the Coega IDZ. Corrie Kotze, AIH Consulting; and Simphiwe Kondlo, ELIDZ CEO, announce the exciting multi-OEM model

30 November 2009 Corridor of Certainty

Mpumalanga has relied in the past on its agricultural, min- ing and tourist strengths, but now its geographical location means that its future fortune is inextricably bound to the success of the Maputo Corridor. With a drive for diversifi- cation, under the rallying cry of Linking Opportunities, Creating Growth, the Maputo Development Corridor Flagship is one of the “big five” flagship programmes identified by the Mpumalanga Provincial Government for economic growth, encompassing initiatives such as the Secunda IDZ, Truck Stops, Priority Feeder Routes, Food Technology Centre, Middelburg IDZ, Komatipoort Dry Port and Rail Passenger Border Clearance Facility.

Blessing Manale, CEO Maputo Development Corridor Flagship, hosted a cocktail evening, and at the event made the offer to host the next SAAW and AIDC Automotive Industry Conference.

November 2009 The Crown Joule A star attraction at the show was the much hyped Joule electric car, which many South Africans hope will become the crown jewel of our automotive industry. Kobus Meiring, CEO of Optimal Energy, gave his well polished delivery of the many pros of the electric car in his slot “Breakthrough automotive greening technology”, emphasising his belief that batteries and renewables are the new oil. Kobus is a passionate flag bearer for the electric vehicle, and he quotes Victor Hugo to make his point, “No power on earth can stop an idea whose time has come”. If this is true, then South Africa can be at the forefront of this revolution, as there are many spin-offs to the electric vehicle.

The Joule in all its glory

Kobus Meiring, CEO Optimal Energy

Formula S gives university students a chance to show their talents

he Nelson Mandela Mechanical Engineering, and they have the Metropolitan University bitter sweet task to get a team of young made its presence known bucks to gel into a formidable unit, with at SAAW, and if anyone the goal of participating in Formula cared to dig a little further, Student Germany 2010 in Hockenheim in they would have found August 2010. All very inspiring, and ABR outT that NMMU is the only university in shall give our readers more details in South Africa that is planning to race at the upcoming issues, and we shall also follow Formula S event in Germany in August the action on campus, and keep our stake- 2010. Formula S stands for Formula holders up to speed (excuse the pun) on the Student, and has no connection to that old comings and goings of the little Schumis. shaggy dog story of the customer who orders a souped up VW Beetle with the proviso that a large S be painted on its bon- net. Upon taking delivery of the car, the salesman enquired as to the reason for the Mphathisi Colwana and Alison Richter are large S, to which the customer replied that two of the student engineers on the Formula he wanted people to exclaim as he zoomed S team. Mphathisi is responsible for the past, “Did you see that S car go!” ABR is cooling system, suspension and brakes, whilst Alison looks after the fuel tank, ergonomics very interested in this project, so after the and safety aspects. show we moseyed down to the university’s south campus, to get more information. venture, and that students had been drawn We found that the Volkswagen South from various faculties to participate. Africa – DAAD International Chair in NMMU Racing’s two project managers are Howard Theunissen and Trevor Stroud are Automotive Engineering had allocated Trevor Stroud and Howard Theunissen, the project leaders for NMMU Racing. offices and furniture and equipment to the lecturers in the university’s Department of

32 November 2009 The Party Poopers

ABR’s Austin Gamble attended the AIDC Automotive Industry Conference 2009, and he gives his unique take on the topics and pre- senters, and his views on the punctuality and even worse, the non- by Austin Gamble attendance of certain individuals. ’m a little old fashioned, and I little fib to make him look reasonably well On a lighter note, I have to admit that at believe that if you have accepted mannered. I have drawn my own conclu- long conferences such as the AIC, the an invitation to attend an event, sions, and they are not flattering. Take mind does wonder sometimes. I was that once you have committed, these two questions submitted by the del- guilty, I’m afraid. It all started with a nag- you should move heaven and egates for example: ging feeling that Johan van Zyl reminded earth to meet this obligation. And me of someone famous. Eventually the 1. Why do the unions insist on wage it doesn’t matter who or what you are. In penny dropped. Joachim Phoenix! Don’t I increases and benefits that make actual fact, the higher your exalted posi- think so? Go and look at the movie us less competitive – don’t they tion, the higher the obligation! I also Gladiator, or Walk the Line. This got me understand we compete globally? believe that your performance on these going in a bad direction, and I started to parameters is a very good indication of 2. Why do the unions go on so many have a good look at the other panellists on your character and your trustworthiness. strike actions for wage increases so the Vision 2020 debate. See if you agree much above CPI, and damage with me, by matching our brainy guys On this premise, there were some unfor- South Africa’s image and turn with these actors/luminaries: tunate slips of protocol perpetrated by away investment? those who should know better. Or do they Hot potatoes, which may have made Mr. know better? I was not privy to the why, Jim uncomfortable. I’m sure that he who or where, but judging by the looks on would have handled them with the pre- the faces of some of the organisers, it was dictable rhetoric, but why go through this obviously last minute stuff, and in one if you can just stay away? The problem is particular case, this was confirmed inad- that the panel discussion was the poorer vertently. And taking my line of thinking for it, and the delegates were short a little further, maybe some of the non- changed. Similarly, Minister Rob Davies attendees had good reason for not attend- bailed out at a late stage, leaving the ing. Take Mr. Irvin Jim, the National unpalatable stuff to his deputy, which Secretary of NUMSA, for example. He does leave a distinctly unpleasant odour. was supposed to be an integral part of the And the conference ran an hour late, not panel discussion on whether the South because of the tardiness of the organisers, African automotive industry deserves a but because of the late arrival of MEC bailout. His absence left a gaping hole, as Jonas, who was to do the official opening. his participation in the discussion was a Sure, the traffic was bad, but everyone else vital element. Johan Cloete, an independ- made it. The picture is becoming clearer, ent consultant, was roped in at the last much clearer. And to me, at least, it minute, and whilst he did an admirable explains many things, about Transnet job doing his chameleon act turning from lethargy, Eskom hubris, municipal rate a hard working consultant to an Arthur hikes, etc. Scargill wanabe, he simply could not lend credibility to the role, giving careful and measured responses, a most ununion thing. It also got me thinking that he was in reality scab labour, oh heavens above. And there were hard questions to be answered, which Mr. Jim had convenient- ly ducked. Not so convenient for the organisers, who announced at the com- mencement of the discussion that Mr. Jim had phoned in 30 minutes earlier to give his apologies. Extremely enlightening, as Irvin Jim, National Secretary, NUMSA. the conference was running an hour late, For those delegates who were hoping for the so either Mr. Jim had phoned in half an privilege of seeing him, this picture is a far hour late, or the organisers were telling a from satisfactory substitute. November 2009 33 Yes We Can After two jam packed days of information overload, debate both sedate and intense, and introspective soul searching, the 2009 AIDC automotive industry conference ended not with a bang, but with a whimper. A visibly exhausted Barlow Manilal, CEO of the AIDC, closed pro- ceedings with a summary of the outcomes of the conference, of which the general consensus was that it had been a worthwhile exercise, and that despite the negative economic environment, the industry was down but not out, and that it did have the ability to navigate the storm. In the words of Barack Obama, it was agreed that “Yes we Can”. The key points that came out of the conference were that Barlow Manila, CEO of the AIDC, after • The automotive industry is a key sector in the manufacturing sector of South an exhausting two days, brings the confer- Africa ence to an end. • The government has the responsibility to create an enabling environment for the industry to go ahead and create growth and jobs • Collaboration between government and the private sector is now needed more than ever • It is now absolutely vital to grow and protect investment in the manufacturing sector • Investment in the industry needs to be focused and prioritised

All good and well, but what is really needed is less talk and more action. The AIDC conference was an important and necessary talk shop, but the benefits of the conference will only be clear when all the affirmations are realised. The key is government’s commitment and its translation of words into action. Extremely concerning was the quote from the Deputy Minister of Trade & Industry, who made the telling enquiry, “What makes our production special when compared to Brazil?” It may have been a rhetorical question, but the simple answer from all should be, “Because it is OUR production!” Automotive Site Visits

A trailblazer berthed at Ngqura

n the 9th October, delegates At the VW Museum, some nostalgic speed and some nostalgic relaxation had the opportunity to visit the Volkswagen plant in Uitenhage, the Nelson MandelaO Bay Logistics Park just a stone’s throw away, and the Coega IDZ. ABR went along for the joyride. Some of the highlights of the tour included a visit to the Volkswagen Museum at the Pavilion, in which one could indulge in a little nostal- gia, and the sighting of a ship berthed at the Port of Ngqura. At the time of the visit, only two ships had visited the port since its opening in October 2009, so this was indeed an auspicious occasion.

34 November 2009 What’s the Buzz? BMW Looks Ahead Following in-depth negotiations with government, the BMW Group has announced that it will invest an additional R2.2 billion at BMW Plant Rosslyn, triggering the introduction of the newest BMW vehicle and production technology at the Plant and within its local supplier network. The investment will enable maximum plant capacity to increase from 60 000 to 87 000 units, while securing production in South Africa for the future. The investment announcement follows the signing of a Letter of Commitment with the Department of Trade and Industry (the dti), which will honour the investment under the new support scheme for the motor industry, the Automotive Production and Development Programme (APDP). The APDP will replace the current support programme for the automotive industry, the Motor Industry Development Programme (MIDP), in 2012. At the same time, the German automaker announced a training program for 1,100 associates at Plant Rosslyn. The BMW Group has a long history in South Africa, rich in major milestones, and has had a local presence since 1968. BMW Plant Rosslyn became the BMW Group’s first manufacturing facility outside of Germany in 1975. The company was also the first South African car maker to adjust its entire production configuration to begin an export programme in 1994, ahead of the announcement of the MIDP. KenKen 3 X 3 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 1-3. • 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 mathe- matical 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 45

November 2009 35 A series of articles on the rise of the Chery automobile New Chery J1 Packs a Big Punch at an Affordable Price

hery South segment of the market,” said Brett Soso, Designed in Italy, Chery J1 is the first glob- Africa is set to Managing Director of Chery SA, a division al vehicle from the Chinese automaker and make an even of Amalgamated Automobile Distributors. is aimed at providing stylish, affordable bigger impact “The Chery J1 is set to continue this trend motoring to consumers in Europe, North on the local and reinforce our commitment to provide America, Asia and of course, South Africa. market with the value-for-money motoring to South It features a brand new fuel injected 1.3- launch of its African vehicle owners moving into the litre petrol engine, uniquely developed by new J1 hatch- next segment of the market up from a Chery that will beat off many of its key back. The range Chery QQ3.” The Chery J1 is certain to rivals when it comes to power and fuel consists of two models; the J1 1.3 TE and cater for those who have high expectations economy. The new 4-cylinder Acteco pow- Cthe top-of-the-line J1 1.3TX. Starting at a in their daily vehicle. Its balance of style, erplant, which is Euro III compliant, pro- class-leading price of R109 900, both vehi- practicality and affordability will be vides 61kW at 6 000r/min and 114Nm of cles are equipped with power steering, air unmatched in the marketplace and it has torque between 3 800 and 4 500r/min, conditioning, alloy wheels, as well as criti- its sights firmly set on being a winning while also ensuring less visits to the petrol cal safety items such as dual airbags and combination. “We believe the J1 is a super pump with an average fuel consumption ABS with electronic brake distribution. package and we haven’t compromised on figure of just 6.7/100km. While a great “We believe that since the brand was first specification and safety to get the price focus has been placed on providing the J1 introduced in South Africa in May 2008, it down,” said Soso. with a potent and efficient engine, it is in has changed expectations in the entry-level the specification that it truly excels.

36 November 2009 Large angel eye headlamps light your way the chill in winter. The instrumentation The Chery J1 1.3 TE retails at R109 900, ahead at night, while safety is bolstered fur- has been designed to be aesthetically pleas- whilst the 1.3 TX comes in at R116 900. ther by the inclusion of ABS with EBD, ing while also being fashionable giving a The Chery J1 range has a 3-year / 100 dual airbags, side impact protection bars more upmarket feel to the cabin ambience. 000km warranty. Service intervals are at and high mounted brake light, many of A CD-player audio system with USB port 15 000 km and the range has a 3-year / 75 which are simply not usually available in is also standard on both models. Quality 000 km service plan as standard. Chery is this class of vehicle. Reverse park control is materials pervade the interior with plush continuously aiming to provide customers available as standard on the TX-derivative. carpets and door inlays, while the seats with a good value proposition, not just in have been ergonomically designed to pro- terms of their initial purchase, but also in The J1 has also been subjected to rigorous vide maximum comfort for all passengers. the overall ownership experience. The testing in line with international standards. Power steering makes manoeuvring around company therefore has a well-established This includes numerous tests at the the city a breeze and a turning radius of dealer network in place, with over 30 full National Centre of Supervision and just 4.75m ensures effortless parking in service dealerships. This network is con- Inspection on Motor Vehicle Products even the tightest of spaces. The J1 range is stantly being expanded to give Chery com- Quality in Shanghai. Extensive evaluations equipped with central locking by remote plete national representation and customer have also been conducted in South Africa with the TX having the added ease of con- convenience. Chery South Africa offers a to test the vehicle’s durability and quality venience locking. All the seats in the J1 can range of vehicles to suit the individual under local operating conditions. The be manually adjusted and the steering col- tastes of the country’s motorists, and every onboard computer keeps you informed of umn’s rake can be adjusted to suit the driv- Chery car presents a combination of all the essential information on your jour- ing position. In addition, the J1 1.3 TX unbeatable value and quality. ney, while manual air conditioning keeps also has front and rear electric windows as you cool in summer and totally unaware of well as electric mirrors.

November 2009 37 Tony’s Take The OYLEY Price of Oil An article by Yoshiaki Nohara and Ron Harui on the Bloomberg financial news service, dated 6 October 2009, sent world currency markets into near panic mode, with the SA Rand appreciating from R7.63 the day before to R7.39 that evening (both SA time). The news quoted the UK based Independent Newspaper, saying that the Gulf by Tony Twine, states might be considering quoting oil prices in a combination of Senior Economist, Director – Yen, Yuan, euro and gold. Effectively, this would become an artifi- Econometrix (Pty) cial currency, which we could christen the Oyley, derived from Oil Ltd price in a combination of Yen, Librae, Euro and Yuan.

hy Librae, you may proportion of the base currencies from reflect all the pressures present from time to ask? The Librae is a which it would be derived. This would be time on the constituent items like the Gold singular version of this in setting up a central bank for the OYLEY, price, upon which it is based. With settle- old measure of weight, which would hold reserves of the comments in Dollars, the Gold price of oil is also called a tower modities and currencies upon which the capable of fluctuating very substantially, so Wpound approximating 32 grams, close to a OYLEY was to be based. We could antici- the OYLEY price of oil would be subject to Troy ounce, which is the unit of measure of pate some costs in this regard. similar fluctuations, driven by the Gold traded gold. That is from where the styl- portion of the OYLEY base. It seems like ized letter L, previously employed to Suppose that all that was done, and foreign an awful amount of trouble to achieve denote Pound Sterling, was derived. oil buyers could purchase OYLEY’s from virtually nothing. the OCB (OYLEY Central Bank), with The graph shows smoothed index values of which to settle their liabilities to the oil But the fun would only just be starting at a composite artificial currency made up of suppliers. The oil suppliers would then sit that point. Private banking systems would equal weights or proportions of the gold, with large amounts of OYLEY’s and may very quickly find ways to multiply the euro, yen and yuan prices of crude oil dur- even be able to pay taxes to their respective numbers of artificial currency units that ing the current decade. The first bad bit of governments in those self-same OYLEY’s. they may come to hold. Derivative traders bad news for the artificial currency plan- But then comes a snag – if they want to buy would begin writing options and futures ners is that such an equally weighted artifi- anything outside of the OYLEY currency contracts from the exchange rate of the cial currency would not have produced market, they have to exchange OYLEY’s for OYLEY against most major and minor cur- anything resembling a stable currency for an internationally accepted currency. The rencies around the world. We could expect the price of oil. most commonly accepted means of inter- then, just as there has been in the history of national trade and capital movement settle- the Euro, tussles between the oil producing The next thing for them to consider would ments is the US Dollar, so an exchange governments regarding the rates of be how to create the artificial currency, or mechanism between the OYLEY and the creation of units of OYLEY currency. OYLEY. If it is based on gold and the other Dollar would quickly emerge. If the currencies, every OYLEY unit that they OYLEY was not exchangeable, it would be Out of the fried chicken pan, into the oil wished to create, even if it was only created about as useful as the Zimbabwe Dollar. fire. on paper, would have to be backed by the Of course, the OYLEY would come to

38 November 2009

weighty issues TRUCK SHOWS – A THORNY ISSUE by Frank Beeton

On Wednesday, September 30th, 2009, representatives of the commercial vehicle industry, their suppliers, and the specialist press, made their way to the Tshwane Events Centre (you may know it better as the Pretoria Showgrounds) to attend the launch of The HeavyWeight Expo. This event, scheduled to run from 23rd to 26th March, 2010, was described by organisers TSHWABAC as an “exhibition-cum-conference dedicated to the heavy equipment sector in South Africa”. The target universe was defined as “the heavy vehicle, bus, construction plant and equipment, special and agricultural vehicle sectors”.

n South Africa there has been My own hands-on experience with truck facilities. Out-of-town based industry exec- much recent debate over the rele- shows goes back to the Royal Agricultural utives have also valued the opportunity to vance of truck shows. There is a Show in Pietermaritzburg during the attend one show that covers both aspects of body of opinion that views partic- Nineteen Sixties, and extends through vari- their business. It is a moot point whether ipation in the Johannesburg ous Sugarmechs, Timbermechs, Rand distributors can justify supporting truck International Motor Show (JIMS) Shows, ITEC Shows and Auto Africa exhi- shows every year, so if HWE is successful, it Ior its Auto Africa predecessor, as less than bitions. Contrary to popular belief, very could impact on the trucking side of JIMS. ideal for heavier commercial vehicles, pri- few large fleets of trucks are sold off show Exhibitors will need to decide which format marily because that ten day exhibition is stands in spontaneous “walk-on” deals, suits them best, but there is likely to be con- shared with the light vehicle community, although this myth has been carefully per- siderable pressure from NAAMSA on their takes truck people away from their day petuated in countless press releases. The real members (most of the major manufacturers jobs for too long, and exposes (expensive) value of shows is to provide relaxed interac- and brands) to continue supporting JIMS. exhibits to wave upon wave of “tyre kick- tion between suppliers and their clients, In the past, where certain companies have ers” and brochure collectors. The alterna- who are shipped in to enjoy hospitality on chosen not to participate in the major tive of adding a truck section to the more the stands. Exhibitors also use the opportu- shows, their competitors have been more trade-focused Automechanika Johannes- nity to build their image by showing off than happy to point out their absence to burg early in 2009 clearly did not work, new technologies not yet available on the mutual customers. A further complication particularly as it was held only a few short local market, although most of their star lies in timing, as it is unlikely that major months after JIMS, so no obvious solution customers would already have seen these on new product launches will always be able to has emerged up to now. The organisers of hosted overseas tours. coincide with events timed by show organ- HeavyWeight Expo obviously believe that isers to suit their own priorities. In the past, they can offer the ideal compromise, in a Despite the valid concerns about the suit- major manufacturers often organised stand- year in which there will be no JIMS event. ability of Auto Africa and JIMS for truck alone events at more appropriate times, and The chosen venue is a lot less intimidating and bus exhibitions, there can be no doubt also to ensure closer control of their visitors. than the vast halls of NASREC, but can that the standard of displays has risen per- After all, anybody attending a show wants easily accommodate the truck and bus sup- ceptibly since these shows have catered for to look around, irrespective of who paid for pliers, body and trailer builders and allied both light and heavy vehicles. Truck-only his travel to the show or his entrance ticket! suppliers that make up the target market. shows have a tradition of being more of the However, it is significant that this event car- “boerewors-and-beer” pattern, which was There are many issues to consider, and it ries the endorsement of the Retail Motor clearly not compatible with car exhibits fea- will be intriguing to see how this dynamic Industry (mainly dealers), and not the turing plush carpets and squads of scantily- plays out. In the particular atmosphere of National Association of Automobile clad young ladies. The incidence of profes- 2009, with vehicle sales still near the bot- Manufacturers of South Africa (NAAM- sionally-built truck stands, with imported tom of the cycle, costs may be a crucial fac- SA), who now “own” the JIMS show. This displays, has increased markedly since tor, but it is likely that the long-term out- raises the question whether NAAMSA will ITEC gave way to Auto Africa, and in those come will be dictated by strategic issues. have a benign attitude to Heavyweight cases where light and heavy vehicles are dis- Time, alone, will tell! Expo, or if they will see it as a threat to their tributed by the same organizations, there own event. has been plenty of scope for the sharing of

40 November 2009

health care An update on Moto Health Care

You may recall that in the July edition of ABR Roseanne Da Silva, Moto Health Care’s consulting actuary gave us an insight into the process followed to determine the benefits and the budget for the following year. I am pleased to announce that this review process has now been completed for 2010.

adly the Scheme is expected to Hospicare. This option is targeted at incur an underwriting deficit for younger, middle-income members who do this year. The key contributor to not require out of hospital benefits. In this deficit is the Classic option. order to contain costs on this benefit ThisS deficit would be substantially larger if option the benefits are accessible through a it was not being mitigated by an improve- network of Designated Service Providers ment in the position of the Custom (DSP). The adjustments for 2010 are as option. The Hospicare and Optimum follows: options are also operating at deficits. Further there has been a reduction in the • Cover for in hospital specialist costs total membership for the year to date of will be at 100% of the National 11% largely brought about by a clean up Reference Price list; of data conducted by the current adminis- • Members will be required to use a trator, loss of employment and affordabili- Classic. This option has been restruc- Designated Service Provider (DSP) for ty, a direct consequence of the economic tured in line with trends in the market for in-hospital treatment and for their downturn. those targeted at middle to high income chronic benefit treatment plans (for earners looking for comprehensive cover the 26 chronic disease list (CDL) con- The Trustees adopted the following princi- and flexibility in their benefits. The cate- ditions). A25% co-payment will apply ples to determine the benefits for 2010: gory B limit has been converted to a sav- for other providers; ings account basis. The level of annual • The maternity benefit limit will be • To offer a comprehensive range of ben- savings is equivalent to the current level of removed. efits; the category B limit and the savings struc- In next month’s article I will deal with the • To ensure that the options are distinct ture has the advantage of members being Custom and Essential options and share in their benefit offerings; able to carry any unused portion of the with you the key elements of the 2010 • To minimise the risk of buy-down by benefits forward to the next year for their budget. At the time of writing this article, higher claiming members; own use. Members will also have greater a road show is being planned to introduce • To achieve a breakeven financial result. flexibility in determining how they use the new benefits for 2010 to stake holders their out of hospital benefits. The adjust- Guided by the above principles and after and to receive input from them. I trust ments for 2010 are as follows: many meetings the benefit design team has that at least some of you will have made an proposed the following amendments to • Cover for in hospital specialist costs effort to attend one of the road show the current benefits: will be at 150% of the National presentations. Reference Price list; Optimum. This option is aimed at • Chronic cover will be extended to high income earners and offers a compre- include 8 additional conditions (with a hensive range of in and out hospital bene- limit of R2675 per beneficiary and fits. The adjustments for 2010 are as fol- R5350 per family on these benefits); lows: • There will be a R850 co-payment on • Cover for in hospital specialist costs non PMB (Prescribed Minimum will be at 200% of the National Benefits) in hospital procedures except Reference Price list; where the member uses a DSP; • A R850 co-payment on specified scope • The maternity benefit limit will be procedures except where the member removed; uses a Designated Service Provider • Out of hospital benefits will be paid (DSP); from a savings account where 22% of • The limit on maternity benefits will be contributions are allocated to this; removed; • Appliances and prostheses will be cov- • Inflationary adjustments to all finan- ered by the Fund with inflationary cial limits; adjustments to the limits: • The DSP providers must be used for • The DSP providers must be used for treatment plans for chronic patients treatment plans for chronic patients (for the 26 chronic disease list (CDL) Barry Canning, Chairman Board of (for the 26 chronic disease list (CDL) Trustees - MOTO Health Care conditions) conditions). November 2009 42

MISA Update

– STATEMENT TO CONTRIBUTORS – MOTOR INDUSTRY RETIREMENT FUNDS (Administered by : MIFA (Motor Industry Fund Administrators (Pty) Ltd.) Recently, Mamodupi Mohlala the former Pension Funds Adjudicator publicly introduced a ‘so-called’ SCORE-CARD against which she rated 290 of the country’s 13 000 registered retirement funds, in an attempt to gauge their performance.

he Adjudicator was not appointed to usurp the func- MIFA administers two Pension Funds (defined benefit Funds) tions of the FINANCIAL SERVICES BOARD, the and two large Provident Funds on behalf of the retail motor Body that regulates the Retirement Industry, but mere- industry employees. The total active membership is 200 662. ly to deal with member complaints against their funds. During the past twelve months no less than 38 000 claims were T successfully finalised by the Funds’ Administrator. Any attempt by This limited role of the Adjudicator was publicly acknowledged in Insurance Brokers/Agents to capitalise on the score-card publicity the press by Mr. Jurgen Boyd, the Deputy Registrar of Pension must be seen as pure opportunism. Funds, who further stated that the retirement industry is in good health and that the threat issued by the Adjudicator that funds It is a fact that frivolous cases are often referred to the Office of performing poorly in terms of her scorecard, “could have their the Adjudicator. It is also a fact of life that nobody has any con- licences revoked”, is a non-issue, as Pension Funds were not trol over the submission of a frivolous complaint, totally devoid of licensed entities. Funds were merely required to register with the substance. Both the Funds and the Office of the Adjudicator sim- Financial Services Board for regulatory purposes. ply have to deal with it and inform the complainant of his/her legal rights and benefits available in terms of the rules of the rele- However, the TRUSTEES responsible for the management and vant fund. administration of the MOTOR INDUSTRY RETIREMENT FUNDS were appalled to learn that the Motor Industry Pension Even if all known complaints, whether frivolous or not, are taken and Provident Funds had been included in her list of 20 “most into account it would represent only 0.12% of the entire mem- poorly rated funds”. bership served by MIFA! Most importantly, the

Her public utterances and rating of the industry have been poor- Pension Fund’s Adjudicator has not found it necessary to issue a ly researched and unfounded. They are both damaging to the single determination against ANY of the Funds administered by retirement fund industry and irresponsible. A public apology and MIFA over the past two years! Over the past ten years only one retraction would be appropriate. determination went against us!

The Motor Industry Pension Fund was merged some four years The TRUSTEES are deeply disappointed that the outgoing ago with two other pension funds to create a closed pension fund Pension Funds Adjudicator, in her enthusiastic attempts to proof some 8 000 pensioners. At the same time the Motor Industry mote her “score-card” legacy, made public utterances, damaging Provident Fund was established currently with some 40 000 to the good reputation of our Funds (earned over some 56 years) members. Both funds function extremely well and are closely without proper prior research. We refute in the strongest terms monitored by the TRUSTEES, the Fund’s ACTUARY, separate the inclusion of any of the Funds administered by MIFA in her firms of EXTERNAL and INTERNAL AUDITORS and most list of twenty poorly rated Funds. importantly THE FINANCIAL SERVICES BOARD in its role as regulator. The MIFA Management and Board support sound Issued by the BOARD OF DIRECTORS OF MIFA AND governance principles and ongoing monitoring by the FSB, valu- TRUSTEES OF THE FUNDS UNDER ADMINISTRA- ing the impeccable relationship developed over the years. TION BY MIFA.

44 November 2009 Benteler Automotive brings investment and jobs to Uitenhage Benteler Automotive has announced a R178 million investment, which will bring with it 250 jobs, into the Nelson Mandela Bay Logistics Park in Uitenhage. The company is the ninth investor into the Park, and will directly supply to next door neighbour, Volkswagen of South Africa. Benteler Automotive will produce dashboard carrier pan- els and body parts, front and rear bumpers and chassis parts to VW of SA. “Benteler’s supplier status forms part of Volkswagen of South Africa’s business strategy to increase the local content of vehicles manufactured for both the domestic and export markets. The company’s all-out initiative is to achieve 70% local content in its South African produced vehicles,” said VW of SA Managing Director, David Powels. “In addition to the local content benefits the company’s investment brings to VW of SA, it is also beneficial to the region due to the skills transfer that will take place from a multinational such as Benteler. We welcome and congratulate Benteler on their investment in the region,” continued Powels. Construction of the company’s 19 125m2 facility started on 1 October, and the scheduled date of completion is June next year. The company will start to install its equipment in March, and it expects to start production by mid-June. The total size of the company’s property is 50 000m2. OVER INFLATION COSTS TYRE LIFE, TRACTION Over-inflating your car’s tyres will cost you money and could affect your safety on the road, according to SA tyre maker Bridgestone. Romano Daniels, General Manager of Group Communications and Marketing, explained that tyres are designed to function best when correctly inflated. “If tyres are pumped too hard, they start to bulge in the centre of the tread,” he explained. “That means the shoulders are no longer in proper contact with the road and that the centre of the tread has to carry the entire load of the tyre. This is why over-inflated tyres wear so much faster in the middle,” he said. Daniels also explained that the reduced contact patch can have serious safety implications. He said that the tyre’s resistance to road debris might be reduced; meaning a sharp stone or nail might puncture the tyre more easily. He also said that the road holding of a car with over-inflated tyres would be compromised. Daniels recommended that motorists check their tyre pressures at least once a week and inflate them to the manufacturer’s recommended values using an accurate tyre gauge. “Consult your owner’s handbook to ensure the pressures are correct – you’ll be extending your tyre life and ensuring that your car handles safely and pre- dictably,” he concluded.

Answer from page 35

November 2009 45 Schaeffler Shorts The Timing is Right INA was founded in 1946 by Dr. Georg Schaeffler, together with his brother Wilhelm, in the town of Herzogenaurach (near Nurenberg) in Germany. Three years later, Georg Schaeffler put INA on the world map by developing the needle roller bearing with cage assembly, which made the needle roller bearing a reliable component for automotive and industrial applications. In 1965, INA invested in a new company named Luk (Lamellen und Kupplungsbau GmbH), which was situated in Bühl, near Baden-Baden in south western Germany. INA eventually took full control of LuK in 1999, and in 2001 it continued with its acquisition activities with the acquisition of FAG Kugelfischer Georg Schäfer AG, Schweinfurt. FAG (Fischers Aktein-Gesellschaft) is an iconic brand registered in 1905, and Friedrich Fischer, the first man to manufacture absolutely round steel balls, is cred- ited as the man who gave Schweinfurt its status as the ball bearing capital of the world. In 2002, FAG, INA and LuK were merged to form the Schaeffler Group.

The Schaeffler Team, left to right: Cavin Hearne, Product Manger Bearings; Phillip Erasmus, Customer Service Manager; Daniel Wolff, Business Development Manager, Engine Componentry, Schaeffler Group Automotive Aftermarket; Tim Langdon, General Manager Automotive Aftermarket

he reason for this historic introduction is because tappets, finger follower and hydraulic pivot elements, tripod whilst the South African automotive industry is rollers, axial and radial bearings, tripod rollers and much more. fully aware of the LuK and FAG brands, the INA Chassis, gearbox and engine transmisson products have grown brand has tended to take a back seat in our neck over the years, and INA is now at the forefront in providing of the woods, primarily through historical cir- mature solutions for the engine, such as hydraulic and mechani- cumstances. This oversight has meant that the cal bucket tappets, rocker arms, finger follower and hydraulic INAT brand’s worldwide status and recognition, and its extensive pivot elements as well as water pump bearings and other innova- product range, are not well known in this country in the tive products. In addition, a large number of timing belt drive Aftermarket . The Schaeffler Group has decided to correct this components are available: idlers, mechanical and hydraulic belt anomaly, and as part of this INA awareness programme it recent- tensioners or overrunning alternator pulleys, et al. With a market ly sent Daniel Wolff, Business Development Manager, Engine share of 55%, INA is the market leader in supplying timing and Components, Schaeffler Group Automotive Aftermarket, to visit front end accessory belt drive components to car manufacturers our shores, to begin a series of initiatives around the INA brand and the aftermarket, and it it is with this heritage behind them and product range. ABR met with Daniel at the Partinform held that Schaeffler South Africa is launching a local timing and front at the East Cape Training Centre, Port Elizabeth on the 13th end accessory belt tensioner range to create a footprint in South October, to learn more about his mission. Daniel confirmed that Africa. The initial range will cover 90 part no’s, but will be grad- INA has a global presence in the original equipment and automo- ually rolled out to eventually cover the 700 applications for our tive aftermarket in passenger cars, LCV and commercial vehicles, car parc. Daniel Wolff says that there is room for this product in represented on every continent, and with vehicle manufacturers the aftermarket in South Africa, and it fits into the Schaeffler throughout the world relying on application solutions developed strategy of finding the right time for INA products. Service and by INA. INA is particularly strong in Europe, whilst also being a availability will be the focus in a targeted marketing campaign to significant player in Asia and the Americas. INA’s product range specialist workshops, the wholesale trade and retail shops, to get for timing belt drive transmission systems and front end accesso- the market to accept the INA name and to expand the range in ry drive systems (FEAD) trains is extensive and includes clutch the future, as it takes its rightful place alongside the more estab- release bearings (well known in South Africa), hydraulic bucket lished LuK & FAG brands.

46 November 2009 1

and Their Contribution to Tyres Safety in Motoring by Marcus Haw

At this time of the year, a number of “events” usually take place which have a direct effect on tyres and road safety.

n this issue we would like to take a we have an increase in daily mileage, on parked around you. While doing this keep look at a few of these and warn fleet rapidly deteriorating roads, and to add to in mind that once standing water exceeds controllers about the possibilities. the adventure of the season the smooth or equals the depth of your tread you will Fleet costs can rise rapidly if these tyres start showing up as the roads get slip- ride on top of the water not though it. factorsI are ignored, but with a little pery. Fleet controller’s nightmare has Remember too that tyres are THE ONLY thought, can easily be contained.The most arrived! things between you and the road. Once regular and obvious is the start of our you are on top of the water all control is Gauteng summer rains. These bring all Amazingly this all happens every year. lost. After a good downfall it is very com- the diesel and dirt from the dry winter More amazingly people ignore it every year mon to find patches of water deeper than months to the surface and more damaging and end up with smooth tyres as the first 5mm almost everywhere. Why do people to tyres, they quickly result in the develop- rains arrive. This was graphically illustrat- insist on taking chances? They die on our ment of hundreds of potholes. No roads ed to us recently when we did an roads every day. They know these facts, are exempt from this. Highways, back impromptu survey of a small fleet. The they are not hidden. roads and urban and suburban roads are fleet was made up of the director’s car, the all affected. sales manager and his three rep’s cars and For the fleet controller, this ignorance, four hardworking bakkies. The average apathy or stupidity of the average driver Our roads also tend to get busier around remaining tread depth between all the must be a nightmare. The cost of new tyres this period, possibly due to reps putting in tyres on all these vehicles was below 4mm. is no longer a piddly consideration. But some hard work to reach their targets The director’s car was fitted with four when compared to the cost of panel beat- before year end. Seriously though, as the month old tyres so you get a picture of ing, funerals and training new staff they year gets into it’s final haul there seems to how bad the rest were. This example is not are a bargain. But to monitor the tyres in a be a rush of business with daily inter city as unusual as one would hope. Next time big fleet is a considerable undertaking, and travel on the increase. The breaking up of you are at your favourite shopping centre, relying on the drivers to be responsible the roads is therefore made even worse. So just take notice of the tyres on the cars is taking a chance to say the least.

52 November 2009 The only answer is put controls in place stood those holes. We certainly wouldn’t The above rhetoric is given in the hope which somehow highlights the “tyre have done what he did not even in a 4X4 that all readers, both fleet controllers and change time” per vehicle. And then disci- with huge off-road tyres. private users get to understand the safety pline the drivers to heed the rules. concerns involved here. While it tends to This is a problem that both fleet owners be worse during the coming period, these In the previous issue we spent some time and tyre dealers share. When tyres are are factors which should be of concern at on the fact that more and more vehicle treated in this way, and they fail, there is all times in all areas. It is impossible for manufacturers are choosing lower and just no chance that one will get the truth the fleet owner to be in total control of all lower profile tyres for their latest offerings. out of the driver. They all blame the tyre aspects of all his vehicles all of the time, As mentioned, they are needed for the and usually want to change brands. A tyre but it is in his interests to at least get con- handling precision required by today’s dealer can tell if the tyre has been abused, trol of his tyres. The safety of his staff and cars. and can refuse to claim the tyre. But how all road users depends to a large extent on does the fleet owner/controller react to all those in charge of fleets taking respon- We however need to understand the pit- these lies and excuses from those he works sibility for the safety aspects of the vehicles falls and manage our resources. Low pro- with. There’s no way he can prove what in their control. Just the same as we are file tyres do need some thought and man- happened to the tyre, and even if experts responsible for the safety aspect of our agement where potholes are involved. are consulted, it remains their word vehicles, so should all road users be for Understand that as good as these tyres are, against that of the user. But his costs are their vehicles. and as strong as they may be, they are going to skyrocket if he can’t take control. never the less very much more rigid, and Especially during the current economic less flexible than tyres with higher profiles. It makes a very good case for tyre pressure climate, costs are an enormous considera- Damage through pothole impact is often monitors though. At least if the tyre’s pres- tion, although safety should still be a fatal to a tyre, and the instances involving sures are correct, they have a better chance higher consideration. Maybe the purchas- total destruction of the tyre are higher of resisting pothole damage. As we have ing of those tyre gauges mentioned before with extremely low profile tyres. We wit- previously discussed tyre pressures are so should be done really quickly now, and nessed recently, while driving through a neglected that the chances of anyone con- maybe serious consideration should be badly potholed area how people react. The sidering that they should take extra pre- given to pressure warning systems. They car in front of us slowed down to about 40 cautions because of road breakup is high- may just be the best investment you’ve km/h, as we did, and was weaving in and ly unlikely. But a buzzer screaming in their ever made. out avoiding the potholes. The driver was ear might actually force some reaction out driving an X registration (very new vehi- of them. Travel safe, Think Safety cle) executive saloon with accessory rims – Think Tyre Safety! and ultra low profile tyres. But after about Whatever method is used, one should be a kilometre of slow driving, his patience found to maintain the pressures and force ran out and he sped off into the sunset, the drivers to take more care of their tyres. obviously with no feeling for his expensive As already mentioned if the road death car or it’s equipment. More likely, it was a toll doesn’t get them thinking, nothing fleet car. But the worry is more the safety will. And so, all the vehicles in a fleet aspect. The way he was driving he was could have smooth underinflated tyres going to damage both tyres and rims. just when the rains start. As I said, a fleet There’s just no way they could have with- owner’s headache! www.bridgestone.co.za

November 2009 53 Diamond Dialogues

Editorial Partnership Giel Steyn

In this series of articles ABR discusses with Giel Steyn of Grandmark International the four significant factors that should be taken into account when purchasing automotive parts - Technology, Quality, Safety and Value for Money. These four characteristics are inter-related, and each cannot stand on their own, and together they become a motorist's best friend. Similarly, diamonds are also judged on four characteristics, known as the “four c's” - carat, clarity, colour and cut; and of course, diamonds are a girl's best friend. Grandmark International, as a distributor of automotive parts, is keenly aware of the need to source only the best in Technology, Quality, Safety and Value for Money, and therefore it is appropriate that this series of articles is titled Diamond Dialogues. Opening the Doors of Perception to Standards and Controls In 1954 Aldous Huxley explored “the doors of perception” in an iconic book, and a title that he borrowed from William Blake, looking at mankind’s confusion with the real and perceived world, and the inability to see the big picture because of the narrow crevices of observation. From an automotive aftermarket perspective, Aldous Huxley could also have been writing about the SABS, and people’s perception of what actually the SABS is all about. To clarify this and to clear the uncertainty is very important, because it impacts strongly and has an effect on the diamond dialogues of technology, quality, safety, and value for money. Thus, Giel Steyn, who for years carried the man- tle of responsibility for policing quality and standards in the retail motor industry, wishes to open the doors of perception on standards and controls.

o kick off, Giel Steyn would like primary purpose of protecting the con- to compliment the SABS for the sumer, and serving a national need. role it has played and continues Initially, both standards and the regulation to play – in the past, in the pres- thereof were managed by the SABS, and ent,T and in the future. Standards bodies this did tend to cause confusion and even like the SABS play an essential role and are the perception of a conflict of interest. assets to any country, because as Giel puts This was solved by a new Act for the cre- it, “no country or organisation without ation of a National Regulator of standards has a long term future”, and Compulsory Standards, independent of organisations such as Grandmark the SABS, which is now covered by a International are proud of the quality stan- revised Standards Act. To take this line of dards that the SABS maintains, and are thinking further, the SABS consists of two proud to be associated with these stan- major entities: a Standards Division, to dards. In addition, the SABS mark, which fulfil its primary role, and a Commercial guarantees a high level of consistent quali- Division, which runs on a profit motive ty, performance, safety and durability, and and charges for its services. The Standards is conferred by the commercial division of Division creates, establishes and maintains the SABS, is strongly accepted, and once standards, in conjunction with industry again Grandmark International proudly and consumers. It has a very broad man- uses this mark on certain important prod- date, covering an incredibly diverse and uct categories such as glass and lamps. broad canvas of product and services, ranging from automotive, buildings, paraffin The question on many people’s minds may stoves, condoms, even the grading of still be. “What exactly does the SABS do?” tourism facilities It has marketing and This question may apply to automotive commercial functions, and as part of these product, it may apply to domestic appli- activities it has set itself up as an interna- ances, and it may apply to many other tional standards body with representation things that we use in our daily lives. on the international ISO committee, and Irrespective of what the product is, the operates various testing facilities which are principle remains the same. The SABS internationally (SANAS) accredited. The originally served twin functions under one Commercial Division assists industry in Act of Parliament; known as the Standards meeting these standards, but with a com- Act, including the regulation of compulso- mercial edge. ry specifications. Thus the SABS was an institution created by Parliament, with the More on this in the next issue of ABR.

54 November 2009

Personal profile by Roger McCleery Q & A INTERVIEW INTERVIEW WITH DARRYL JACOBSON – MD OF BURCHMORE’S When you think of vehicle auctions, only one name comes to mind. Burchmore’s. When you think Burchmore’s, only one man comes to mind there as well. Darryl Jacobson. Despite the World and South Africa being in recession, Darryl and his team have turned Burchmore’s into a company that is the jewel in the crown of the McCarthy Motor Holdings Empire. Q: Are the banks helping you sell these days? A: Lately they seem to be loosening up and we are fortunate that we sell at market prices. Thus there is more equity in the deal. Q: Where did you grow up? A: I am a Yeoville boy, born and bred. I went to King Edward School and played cricket and did some competitive swim- ming. Q: What did you want to be after school? A: My first choice was hotel management but was persuaded to do accounting by protective parents. Q: After school? A: I did my National Service and then Q: You are one of the old style motor have two auctions per week in each of these obtained a degree at Wits University but men? centres. the Board exam caught me out. Q: Burchmore’s are specialists? A: Yes – my policy is you are in the motor Q: Are your two children ambitious? business to sell cars and to give service to A: Yes, we specialise in selling motor vehi- A: Kelly, my daughter is a BA.LLb and your customers. Stick with these two basics cles only, unlike some of the others, who Adam, my son, is studying for his Masters and you will be successful. are all things to all people. We are a true in Actuarial Science. They are far cleverer motor car auction group which has now Q: How long have you been in the than me. motor business in South Africa? expanded into selling off the floor which is a unique worldwide concept. In essence a Q: You have another ten years or so to A: For the last 24 years. customer can buy off the floor or on auc- go before you retire. What would you like to do? Q: Where did you start? tion. Q: You don’t only sell to the Trade? A: Consult in the Used Car Industry, A: I started off in the motor business with which is probably the most important part A: No, we sell to both the trade and pri- Currie Motors as a Financial Accountant. of the motor industry. They and I soon realised this was not for vate sector off the floor and on auction. Q: Other ambitions? me and I started selling cars in Pretoria and We auction Bank repossessions and also ended up as a Dealer Principal for them. McCarthy trade-ins to help the McCarthy A: Go to the U.K. and become a full-time In 1985 I joined the McCarthy Group branches to move stock that is not part of professional fan of Tottenham Hotspurs with City Motors selling Mazdas in the their franchise. Besides that, we are the Football Club. I have always supported centre of the city. biggest Dealer for the Chinese Chery them. brand in South Africa, which is also start- Q: Mentors in your life? Q: What got you into auctioneering? ing to do well for us and will expand in the A: There have been a number. Harold A: Errol Richardson, who was a heavy at future. Bromberg of Currie Motors, Ray McCarthy’s, offered me a job in 1992 to Q: How do you find the current car Nethercott who was my Principal head up Burchmore’s, which had become market? at Burchmore’s and obviously Brand part of the McCarthy Motor Holdings A: There is a sensitivity to price. People Pretorius, CEO of McCarthy’s. Group. Since then it has been my life. We want value for money and this is what we have expanded successfully from Sandton give them. Thus the concept of wholesale to Durban and Cape Town. Generally we to the public.

56 November 2009

Alert

There are many issues confronting the automotive industry, most of them impacting on all the players across the spectrum. The automotive aftermarket segment of this dynamic and complex industry plays a vital role in the mobility of South Africans, and matters of concern are relevant to the industry as a whole. Automotive Business Review has introduced a monthly column, titled AAMA Alert, to bring to light the pros and cons of specific matters impacting the industry. A Volatile Rand

isten to any news bulletin on the radio, or watch the political shenanigans, and even (pathetically in the case of New news on TV, and you’re bound to learn what you’ll be Zealand) the fortunes of rugby and cricket teams, and the gender paying for an ounce of gold or a barrel of oil on that of its athletes. The sporting analogy may be taking it a bit too far, particular day. All important, because our psyche is but there is no doubt that domestic and international events play inextricably bound to the fortunes of gold, and our a significant role in the performance of our currency, and that the economyL is inextricably bound to the ups and downs of black speculators have a field day when big news is about to break, or gold. You’ll also be apprised of how the stock markets are faring breaks, or even may never ever break. It is all a crazy St. Vitus across the globe, because the wealth of nations rides on the whims dance egged on by the suits in corporate suites and opulent offices of speculators like a demented roller coaster. And definitely, you’ll in Wall Street, or Throgmorton Street. Great grist to the mills of be informed how many Rands you’ll need to part with to purchase Fleet Street, and headline grabbing stuff for the financial fourth one US Dollar, or one Euro, or other important currencies in estate, but gut wrenching poison for those involved in the legiti- which we trade, such as the Japanese Yen, the British Pound, or mate business of manufacturing, trading and servicing. These the Zimbabwean Dollar. My apologies, scratch the last one. The poor slobs are desperately looking for some certainty, so they reason why we are fed this information, ad nauseam, on the hour, indulge in hedging to try to inject some sanity in their plans, but is that the way our currency performs across the globe is impor- even hedging has become something of a slippery slope to nego- tant to many people, not least the businesses importing and tiate, and many high profile businesses have been gored on the exporting product, and in the case of the automotive industry horns of an injudicious gamble, not least being SAA. many businesses’ very existence depends on it. At the very least, a volatile currency can make planning an absolute nightmare. From AAMA’s perspective, this horror story is the scenario facing the executives responsible for the financial performance of auto- Many executives must yearn for the good old days, when curren- motive component manufacturers and traders in the South cies were pegged as per the Bretton Woods Agreement, and African automotive aftermarket, day in and day out, and particu- Reserve Bank Governors and Finance Ministers were consigned to larly for those who are subsidiaries of multinationals, and who are ceremonial roles. Investment decisions and procurement policies expected to make investment decisions and to deliver a decent were based on cast in stone currency values, and not the hit and return on that investment, not in Rands, but in the particular for- miss affairs that characterise today’s long term planning meetings. eign currency of the head office of the multinational. It all makes South Africa is particularly vulnerable to the whims and fancies of for a wild river ride akin to a number six rapid. ABR shall look at the arbitrage cowboys, as our currency is one of the highest trad- this subject in more depth in the December 2009 issue. In the ed on the planet. The Rand ebbs and flows on the neap tide of interim, we suggest that you take a look at Tony Twine’s article on Dow Jones and FTSE indices, commodity booms and busts, page 18. 58 November 2009

Customer C.A.R.E. Customer Relationship Management – some grasp the value but most companies seem Theo Calitz has been working in or involved in the motor industry for the last 16 years. to miss it altogether or A Mechanical Engineer by profession, he is passionate about customer get it wrong! care and his company, T-R-M specialises in automotive CRM for CRM is definitely a concept that has become part of our everyday the automotive indus- lives. Some of our encounters are actually quite pleasant (which try and has been doing is what it is supposed to be!) and some of the interactions are it for nine years. downright irritating.

et me illustrate. One of the first elements of a to cheap ways to communicate with them (like e-mail) does not CRM programme is to build a database about mean that people should be harassed. One always wonders where your customer in order to understand them they get your details… better and meet them at their point of need. Sometimes this is great, like the Amazon.com Because of this phenomenon the authorities are finding it neces- experience. By tracking my buying patterns sary to implement legislation in order to protect the public and they know what type of books interest me. The the pending Consumer Protection Act of 2009 is a pivotal exam- information they share with me is therefore ple. This is an extensive piece of Legislation (380 pages long!) and great and relevant. Although not as sophisticated I also find value to my knowledge the largest Act ever to be promulgated. There fromL the things Fanatics (the Exclusive Books Loyalty are now more laws governing the rights of the customer rights Programme) does. It also seems that the banks (especially the than laws governing the health profession! This indicates that smaller ones like Investec and BOE) seem to get it right with their something is going wrong – very wrong and I somehow feel that private clients. the inappropriate application of CRM principles is responsible….

Unfortunately it also seems that a lot of companies who do not The positive thing here is that the unscrupulous elements are understand these concepts or do not want to make the proper being managed better and that the companies that do understand investment to do it right jump on the bandwagon. Consequently and apply the elements correctly will not be affected by these laws. we all get these endless streams of irritating SMS’s, e-mails and The concept of free choice for the customers and opting into phone calls about some product which I do not need (like a cell being contacted is healthy and right. phone contract – how can that be useful if I am already locked into a 2 year contract!?). Sometimes the experience borders on With the necessary checks and balances in place where customers harassment. Having information about your customer and access are only contacted for the right reasons, maybe CRM can take its rightful place again.

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

60 November 2009

Customer C.A.R.E. Programme – sponsored by Federal-Mogul MODULE SIX – STEP # ONE : COMMITMENT TO YOUR CUSTOMER

We discussed the problem of LIP SERVICE in chapter five, and the failure to live up to promises and commitments. I promised that we shall look at ways of avoiding this, and to explore the first steps to creating a customer care culture in your company. Well, I do keep my promises.

ou may have said that “Customer Care is a Science, not established that a sense of humour is not a noticed that in the an Emotion”. Once again, I agree, but bad thing. What we are really saying is that previous modules I with an important rider. Customer Care IS you must have fun in the workplace. Enjoy addressed the short- a science, not an emotion, but it MUST be what you are doing, and gain sustenance comings of compa- treated with PASSION! That is why I and growth from it, be enriched by it. You nies in the art of repeat over and over again that CUS- are spending most of your waking life at customer care, with TOMER C.A.R.E. is the intellectual and work, so why waste your life? We’ll come a strong touch of EMOTIONAL understanding that back to this important point in later issues. hyperbole. Such an observation is correct. C.A.R.E. means CUSTOMERS ARE But back to what I promised, and have IY have tended to go over the top, and to REALLY EVERYTHING. been threatening to do for some time - to over-dramatise both the situation and my tell you how to create a customer care cul- reaction. Why do I not approach the situ- There is a lot to be said for treating other ture in your company. It’s easy - and it is ation dispassionately, and clinically dissect disciplines with passion, and maybe one only the first part that could be tough for the facts, with a detailed plan to address day some lateral thinking accountant ( do the chief executive. As I’ve said frequently, the shortcomings in a structured, unemo- they exist? ) will come up with some pro- customer care begins with the chief execu- tional and rational manner? As a well- gressive and innovative new GAAP’s. tive, so we have to start there. trained manager, I should analyse the situ- Imagine an accounting tome with the title ation, define the objectives, assess the “Perspiring over the Double Entry”, or “I resources and logistics, prepare a plan, ini- got spanked on the bottom line”. In the STEP # 1 tiate the recommendations, review the per- same vein, what do accountants use for The first step is for the chief executive to formance, implement corrective action, contraception? Their personalities! acknowledge that customer care is impor- etc. etc. etc. I agree. You are correct. Enough of this bean counter bashing - tant to the company, and important to Customer Care should be treated as a some of my best friends are accountants. him/her. I don’t want shallow behaviour management discipline, and a very impor- We have just indulged in what may seem here, we are talking true blue commit- tant one at that. It should be subjected to to be some irrelevant and irreverent banter. ment, and something akin to a born again the same checks and balances as, for exam- However, it is not irrelevant, because a experience. Therefore, we need a “ public ple, production management, or financial sense of humour is an important attribute “ ceremony. By public I mean in-house, management, or personnel management. for any job, and it is vital for the correct where every single employee is present. At treatment of customers. I quote Victor this ceremony, it is important that the You are right, but so am I. Customer Care Borge, “Laughter is the shortest distance chief executive publicly acknowledges policies, of course, must be exposed to the between two people”. This, I heartily his/her sins of the past, and to promise same management scrutiny as all the other endorse. So, we have established that pas- that from this day forth, the customer will activities in the company. Someone once sion is OK in customer care, and we’ve also take precedence over anything else.

62 November 2009

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

This is not an extraordinary promise, for in a true customer care culture, all activities in the organisation would always be customer orientated anyway. I DISCUSSION recommend the laying of a wreath at the tomb of the unknown customer. An actual physical monument should be erected for this occasion, as a reminder POINTS of this very auspicious moment. This is to recognise the fact that many customers have been lost because of past misdeeds, but more importantly, it is to 1. Tell a joke about your profession, atone for these sins, and to publicly symbolise the commitment to never for- e.g. if you’re an engineer, let’s get who the most important person is in everyone’s working life - the CUS- hear one about engineers. TOMER! Heavy stuff, but symbolically important. If you believe that this is all a bit rich for your company, then come up with something else, which is 2. Why is it important to be able to more suitable for your culture, or personalities. But a heavy symbolism is nec- laugh at life, and particularly, to essary, as it carries a certain weight. Don’t pooh pooh what I am saying; be able to laugh at yourself? remember the over the top funeral for Princess Diana, which was taken extremely seriously by billions of people. Or, closer to home, the public adula- 3. Do you think that it is demeaning tion of President Mandela on his 90th birthday. Everyone loves icons, and a bit for senior management to “dirty of pomp and ceremony. Now that you have made a public spectacle of your- their hands”? self, the process begins where everyone else is subjected to the same treatment. Everyone has to make this commitment to the customer, in front of his/her 4. You may not like the idea of hav- peers. Remember that at this stage everything is still symbolic and in-house. ing a tomb for the unknown cus- You are still a long way from telling your customers how wonderful you are. tomer, or the wreath laying ceremony. In the next module, we shall continue the saga of the unknown customer. What suggestions do you have for a physical reminder, and a ceremony?

64 November 2009 65 Q&A

by Roger McCleery Roger McCleery asks the questions See how many of these 20 Questions you can answer.

1. Name the driver who has led the Formula World Championship all year.

2. Who is his closest competitor?

3. What does CC mean on the latest Volkswagen luxury sedan?

4. What driver has won the South African Off-road Championship for the second time this year?

5. Who makes a motor car called “Linea”?

6. Who is the number 1 driver for Team Timken in the WesBank V8 Supercar Team?

7. What car manufacturer from Europe is going to establish an office in South Africa?

8. Name the two biggest motor retail groups in South Africa.

9. Who is the new Chairman of Renault in South Africa?

10. Who is the new MD of Motorsport South Africa?

11. Who are the likely drivers for Ferrari in 2010?

12. Who is the VP of Sales and Marketing at General Motors in South Africa?

13. What company imports Hankook Tyres from Korea into the country?

14. What make of car finished 1st and 2nd at the Le Mans 24-hour Race in 2009?

15. How many years has Volkswagen officially been in motorsport in South Africa?

16. What company manufactures the Renault Logan?

17. How many years has the Hi-Q Tyre Retail Group been in operation in South Africa?

18. What engine was voted – “Engine of the Year” in 2009?

19. What company has supplied 125 buses to the new Gautrain feeder fleet?

20. How many Mini’s have been produced since BMW took over the brand in 2001?

Answers on page 86 Show Time Dunlop/Apollo’s Schramm confirmed as a keynote speaker for Tyrexpo Africa’10 conference A leading figure from the African tyre industry has agreed to speak at next year’s TyrexpoAfrica conference in Johannesburg. Georg Schramm, head of marketing and sales for Apollo Tyres South Africa (Pty) Limited, will be a keynote speaker at the inaugural event next March. lem in South Africa and support a sustain- working week. By the beginning of able waste tyre producer industry. September, floor space for Tyrexpo Africa Members of the body include Bridgestone, 2010 was more than 65% occupied and on Continental, Dunlop and Goodyear, track to meet targets set by the organisers. Michelin, Pirelli, Maxiprest and Trentyre. There is a current balance of 40% national to 60% international companies exhibit- “We are delighted with the support we’ve ing, with strong representation from received from the industry in putting China, India, south east Asia, the Middle together the conference programme,” said East, Europe and the US. Commenting ECI managing director Paul Farrant. “In on recent developments, Paul Farrant, Georg Schramm we have a senior figure said: “It’s clear from the response we’ve had from one of the country’s major tyre man- from exhibitors that tyre businesses are ufacturers, while Dr Human will provide taking a very positive approach to 2010, an update on how the industry is respond- expecting that the worst of the economic ing to the challenge of dealing with the squeeze will have passed. Despite the slow scrap tyre issue that affects all producers down, Southern Africa remains an attrac- and distributors.” tive place to do business for international buyers and sellers.” Further speakers for the one-day conference that will run alongside the exhibition Tyrexpo Africa 2010 will provide trade vis- will be announced in the coming months. itors with direct access to tyre suppliers In other news, South African exhibitor including Stamford, Infinity, BKT, Tubestone will be showing a new range at Tandem, Techking, Tubestone and SA Tyre the exhibition for the first time, following Distributors, while those involved in the announcement by managing director retreading will be able to do business with Pieter Kruger that the company is set to the likes of Elgi Rubber Company and distribute the well-known Taiwanese Treadsdirect. Garage and workshop r Schramm is responsible for all brand, Nankang. A full range should be equipment will be well represented by sup- marketing and sales for the available by the time of the show. ECI has pliers such as Leaderquip, Hofmann MDunlop brand in South Africa also confirmed that visitors and delegates Megaplan, Rema Tip Top and Steinbichler as well as Botswana, Namibia, Lesotho and can now use their online pre-registration Optotechnik, for optical measurement and Swaziland. He will provide an expert service at www.eci-international.com to sensor technology. A full list of exhibitors insight into tyre manufacturing in the guarantee fast and hassle-free entry to the can be found on the ECI website at African market. He will be joined at the show. Exhibition hours have been struc- www.eci-international.com. conference by Dr Etienne Human, chief tured to include late night opening on executive officer of SATRP, the South Friday until 8.00pm, allowing conference The third staging of Tyrexpo Africa Africa Tyre Recycling Programme. Dr delegates and visitors to attend after busi- will take place at the Sandton Human will outline the work and remit of ness hours. The last day of the exhibition Convention Centre, Johannesburg the not-for-profit organisation that was will be a Saturday, offering further incen- (SCC) on 4, 5 and 6 March 2010. established to tackle the waste tyre prob- tive for those unable to attend during the

November 2009 67 Robert Bosch ESP® Basics ABR discussed the significance of ESP® (Electronic Stability Programme), in both the technological and safety implications, in its September 2009 issue, and we promised to revisit ESP® and to have a closer look at the technical aspects. The subject is vast, so we shall discuss this revolutionary invention in broad strokes, as whilst ABR tries to be all things to all people, we cannot claim to be a technical journal.

efore we go any further, some clarification, if you please. ESP® is the most commonly used acronym, but there are different names for the same safety benefit. 80 percent of vehicle manufacturers in Europe use the acronym ESP® for the Electronic Stability Programme. Some carmakers market the ESP®B under different names, such as DSC (Dynamic Stability Control), VSA (Vehicle Stability Assist) or VSC (Vehicle Stability Control). The functionality and operation of the ESP®, as well as the gain it provides in driving safety, is the same. The rationale behind these systems is clear. Skidding is one of the main causes of road accidents. International studies show that at least 40 percent of all fatal traffic accidents are caused by skidding. ESP® could prevent up to 80 percent of all skidding accidents. ESP® recognises if skidding is imminent and intervenes at lightning speed. The driver stays in control of the vehicle and does not get into a skid provided that the physical limits are not exceeded. ESP® is always active. A microcomputer monitors the signals from the ESP® sensors and checks 25 times a second, whether the dri- 1. Hydraulic modulator with attached control unit – the ver's steering input corresponds to the actual direction in which modulator executes the commands from the control unit and the vehicle is moving. If the vehicle moves in a different direction regulates, via solenoid valves, the pressures in the wheel ESP® detects the critical situation and reacts immediately – inde- brakes. The modulator is the hydraulic connection between pendently of the driver. It uses the vehicle's braking system to the master cylinder and the wheel cylinders. It is located in the "steer" the vehicle back on track. With these selective braking engine compartment. The control unit takes over the electri- interventions ESP® generates the desired counteracting force, so cal and electronic tasks as well as all control functions of the that the car reacts as the driver intends. ESP® not only initiates system. braking intervention, but can also intervene on the engine side to 2. Wheel-speed sensor – the control unit uses the signals from accelerate the driven wheels. So, within the limits of physics, the the wheel-speed sensors to compute the speed of the wheels. car is kept safely on the desired track. Two different operating principles are used: passive and active, both measuring the wheel speed in contact-free mode via ESP® substantially reduces the complexity of the steering process magnetic fields, with the emphasis on active, identifying both and lessens the demands placed on the driver. ABS, TCS, and the direction of rotation and standstill of the wheel. ESP® were all introduced to the market by Bosch, and the contin- 3. Steering-angle sensor – the task of the steering-angle sensor uous development of the Electronic Stability Program ESP® by is to measure the position of the steering wheel by determin- Bosch engineers offers a variety of hardware variants and software ing the steering angle, and thus, combined with the vehicle functions tailored to the requirements of different types of vehicle speed and the desired braking pressure or the position of the i.e. passenger cars or light commercial vehicles. In addition, ESP® accelerator pedal, the driving intention of the driver is calcu- is the future enabling technology: By networking the ESP® with lated (desired state). other systems in the vehicle Bosch realises a new dimension of 4. Yaw-rate and lateral-acceleration sensor – the yaw-rate driving safety. The Bosch CAPS (Combined Active Passive Safety) sensor registers all the movements of the vehicle around its networks ESP®, the airbag system as well as driver assistance and vertical axis. In combination with the integrated lateral-accel- vehicle communication systems. The fundamental task of ESP® is eration sensor, the status of the vehicle (actual state) can be to prevent skidding. The possibilities offered by the ESP®, howev- determined and compared with the driver’s intention. er, go far beyond this. As ESP® can build up braking pressure independently of the brake-pedal position, a series of so-called 5. Communication with engine management – via the data value-added functions can be realised with ESP®. These provide bus, the ESP® control unit is able to communicate with the additional driving safety and allow the driver to experience engine control unit. Thus, the engine torque can be reduced enhanced driving comfort and driving agility. ABR shall look at if the driver accelerates too much in certain driving situations. this in future issues. Similarly, it can compensate for excessive slip of the driven wheels provoked by the engine drag torque.

68 November 2009 A series of articles on the versatile FSA 720/740/754 series The Golden Triangle – KTS, ESI[tronic], and FSA

In the October 2009 issue of ABR, South Africa’s premier automotive aftermarket publication, we began a real life examination of how the golden triangle of the KTS Compact Control Unit Diagnostic Tester, the ESI[tronic] Service Information System, and the FSA Engine Management System Analyser; work in sync with a qualified and experienced technician to solve a diagnostic teaser. We continue where we left off.

o recap briefly: the owner of a five year old BMW 535i to define the trouble codes around spark plugs, a relative compres- (e39) brought the car in, complaining of hard starting sion test utilising the FSA to get an indication of the mechanical- and no oomph. Carlo du Plessis, proprietor of Cencar, ly sound status, or go on to an air flow meter to measure air flow, and a fan of the golden triangle procedure, had pro- and as a corollary Carlo adds that he defines the lambda sensor as gressedT to identifying that the problem definitely did not lie on the nose of the modern mechanic, as it smells trouble if there is the power supply side, using Bosch equipment and a judgement any trouble around. call based on experience. The detective work continues, and the next step is to look at the trouble codes (anything from one to Interestingly, in this case, the technician’s nose can also play a role, twenty codes) as identified by the KTS via a physical print-out. as the odour of fuel is a telltale sign, and with this problem, the This print-out also has another important function, in the realm whiff of something strange did lead Carlo to the eventual prob- of customer care, which is to keep the money paying customer in lem (but we will leave this for later). The modern car uses lamb- the loop. Once this vital function is completed, the next thing da sensors to do the sniffing, as it is these sensors that detect that Carlo does is to clear these trouble codes, and to repeat the unburnt fuel or lack of fuel residue, which is used for feedback to procedure. If one or two codes don’t clear this indicate that some- the ECU, and this clever little computer then regulates fuel and thing is definitely wrong, and this is where the focus now moves. air supply to bring everything back into balance. If all codes clear, then Carlo recommends a test drive to build up the codes again, because the codes that are left after the repeat Incidentally, the perfect ratio for the lambda sensor is 14,7 : 1 for procedure are the most likely culprits, and they are causing all the the perfect burn mixture, for reasons which we may go into in the other error codes. Thus the hunt is on in a focused way. future.

A trained and qualified technician together with the Back to the problem. golden triangle makes for an unbeatable combination. Everything is still check- ing out okay, so the sleuthing continues, which we shall cover in the next issue of ABR – once again, watch this space.

Step number three for Carlo is to look at the fuel pressure, utilising the FSA and his experience. The usual suspect if the car is jerking will be the spark plugs, whereas intermittent jerking and power loss indicates to Carlo a fuel problem. Now with the golden triangle Carlo has an embarrassment of riches. He can use the KTS

November 2009 69 Insights Capricorn Society – an Effective Marketing and Sales Tool in the Automotive Aftermarket Supply and Service Chain South Africa has an increasingly diverse car parc of over eight million vehicles plying its congested roads. Over five million of these vehicles are passenger vehicles, and together with their larger cousins, they are a veritable goldmine for the purveyors of automotive parts and service. The problem is that this goldmine is not just a few shafts in one location. It is spread across the width and breadth of our vast country. Granted, 71% of this car parc is concentrated in just three provinces; Gauteng, the Western Cape and KwaZulu Natal, but this is still a substantial area. And the other 29% spread more thinly over the other six provinces cannot be ignored. Irrespective of where you find these vehicles, the vast majority of which are in daily service, either private or commercial, they do need to be kept on the roads in serviceable condition, and this is where the greater automotive aftermarket supply and service chain plays a vital role. Capricorn Society Limited is an integral part of this supply and service chain. he Automotive Aftermarket is huge and diverse, FMA can purchase additional reward points to increase the incen- and no one has come up with a definitive number tives on specific promotions, which allows them to target specific of the participants, but the accompanying box customer groups, leveraging off the Capricorn data base. There are provides a reasonably accurate guideline of who’s many benefits to this, says Malcolm Perrie, not least the access to who in the aftermarket zoo. Over 15 000 estab- a “phenomenal network of workshops”. Malcolm says that it is a lishments; small, medium and large; who have to win-win situation, as the product is pulled through the tradition- beT communicated with on a regular basis, which is a daunting task al distributor/wholesaler/retail channels, thus benefiting the entire no matter the size of the organisation. Magazines such as supply chain, and not being a threat to FMA’s distribution part- Automotive Business Review can play a respectable role in com- ners. In addition, it creates a marketing platform for promotions, municating with the automotive aftermarket, but for day to day branding, and awareness campaigns. And it even uplifts the work- interaction an army of representatives is required, which is simply shops, as with the extra reward points they can offset against pay- not economically feasible. Organisations thus have to make do ment towards their account thus freeing up capital in the business with varying levels of resources and utilise a range of procedures to purchase such necessities as tools, uniforms, etc. Malcolm and and actions to get their message across, and to create demand for Chris are in agreement that “it is another string in our bow, and it their products. ABR caught up with Malcolm Perrie and Chris sustains a great partnership, which is built on trust and respect.” Hillier, CEO and Sales & Marketing Director respectively of Federal-Mogul Aftermarket Southern Africa (Pty) Ltd, at the Midas/NAPA Conference held recently at the Emperors Palace, Gauteng, on the 24th October 2009, to discuss one such support mechanism, the Manufacturer Alliance Partner Programme of Capricorn Society Limited. This programme is a vehicle created by Capricorn to allow manufacturers and suppliers to cost effectively get their message across to the Capricorn members, and very importantly, to provide goods and services. The verdict from both gentlemen was loud and clear – the Capricorn Preferred Supplier Loyalty Programme is a winner. It allows suppliers such as Federal- Mogul Aftermarket (FMA) to manage their supply chain and to create demand pull right through the chain via incentives such as The peripatetic duo of Malcolm Perrie and Chris Hillier, reward points through the Capricorn Reward Points scheme. respectively CEO and Sales & Marketing Director of Federal- Mogul Aftermarket Southern Africa (Pty) Ltd The Automotive Aftermarket • 4400 garages and fuel stations (most with service • 150 “other” manufacturers workshops) • 1700 tyre specialists and retreaders • 1800 specialised repairers • 480 engine reconditioners • 1350 new car dealerships • 170 body builders • 1580 used vehicle outlets • 2770 parts dealers • 300 component manufacturers • 180 farm vehicle and equipment suppliers

To join Capricorn Society Limited call Rob Mildenhall on 083 654 2094 or e-mail him at [email protected] or visit their website on www.capricorn.com.au

70 November 2009

Marching to Pretoria Mark Ratzer describes himself as the proud owner of Pretoria Diesel Centre cc. Not in an arrogant way, but rather in the confident and self-assured manner befitting someone of his background and training as a Bosch Diesel Technician, which has given him the tools and ability to solve any diesel problem thrown at him. retoria Diesel Centre was estab- partners are prime, and the support struc- lished in 1968 by Mark Ratzer’s ture is prime. Pretoria Diesel Centre was father-in-law as a Bosch Service already a high value business in 2004; now Centre under the auspices of with the e-CAR connection its value has PDiesel-Electric (Transvaal). Diesel-Electric increased substantially. South Africa looked after the interests of the Bosch brand in those days, before becoming a wholly owned subsidiary of Robert Bosch South Africa in 1983. In the 1960’s and 70’s Pretoria Diesel Centre did a lot of work for the mines and the defence force, with the army being only too happy to march to Pretoria whenever specialised diesel repair work was required. Today the clientele is far more diversified, and it was on this basis that Mark decided to join e- CAR as a Gauteng pioneering member on 9th September 2004. Mark realised that to secure his future he needed to belong to a Mark Ratzer is a pioneer in his field. strong national network, and when e-CAR The first company in Pretoria to offer EDC was introduced by the Diesel-Electric (Electronic Diesel Control) repairs, the second e-CAR in Gauteng, and the first e-CAR organisation, based on a successful with a Diesel Pump Room European format with a few South African tweaks, Mark had no hesitation in joining Five years later, Mark has no regrets, only this “new” concept in South Africa, as he plaudits. He has the legendary Diesel- was familiar with the model and had even Electric support, access to Bosch training, and the flexible marketing package avail- suggested some ideas suitable for the Potgieter Street is one of Pretoria’s busiest South African market. He also saw it as a able to e-CAR members which allows for streets, which puts Pretoria Diesel Centre in homecoming as an ex Bosch outlet, and he local marketing campaigns designed just a prime position. With over 40 000 cars had confidence and trust in the Diesel- for Pretoria Diesel Centre, over and above streaming past every day, this welcoming e-CAR sign pulls in 70% of PDC’s clients Electric philosophy of building up a net- the national marketing initiatives. Mark off the street, which is an amazing statistic, sees this as an all round package ideally work for the good of all parties, i.e. not a and testament to the pulling power of South one sided deal. suited for him, as his locality is prime, his Africa’s fastest growing workshop concept

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

November 2009 73 MIDAS moment Midas NAPA Convention Ends on Emotional Note

The 2009 Midas NAPA Convention, held at Emperors Palace, Gauteng, on 23rd/24th October 2009, was despite the straightened economic times, a vibrant affair. Over 400 delegates were unanimous in their praise for the content, the organisation, the entertainment, the presentations, and the all encompassing family feel. Poignancy did creep in during the final stages at the Gala Awards Dinner, when CEO Gordon Odgers “handed over the baton” to Warren Espinoza, incoming COO. Gordon is staying on as Ceo, but passing on the day to day responsibilities to Warren, thus allowing him time and space to play a key strategic and consulting role for the Imperial Group with regard to future opportunities in the automotive aftermarket. The Imperial Group received in early October approval from the Competitions Board to acquire 56% of the Midas Group.

In an emotion charged atmosphere, Gordon Odgers ceremonially and formally hands over the baton to Warren Espinoza. Warren later revealed that he was offered his first job at Midas by Gordon in 1997, over a beer in Port Elizabeth. Who says that beer is not good for you!

n a rare concession to emotion, Gordon Odgers wiped away 7. Respect the Shareholders, its their money at risk and the a tear as he bid adieu to 12 years at the helm of Midas, which Group does not belong to the Management. he had joined in 1997 in a tough turnaround role, being sec- 8. Participate in Industry initiatives and illustrate responsible onded from the Dorbyl Group, which in those days held the market leadership. Icontrolling interest in Midas. Gordon described the bumpy ups 9. Leave the environment in a better place than you find it. 10. Finance is only a consequence but requires attention in detail, and downs during his tenure (which he describes as the best job focus on controls and a diligent forward look to ensure the he has ever had), and acknowledged that Midas was at times on necessary platform is in place for the Group’s needs. the precipice during the early part of his stewardship, but its inherent strengths saw it through, buttressed by the support of a Warren Espinoza, in his acceptance speech, graciously accepted strong and committed team, and the invaluable guidance of the values which Gordon had instilled in Midas, and committed Chairman Chris Ransome. Gordon thanked each executive indi- to their continuance. He acknowledged Gordon as his mentor, vidually for the role they played in taking Midas to the heights and praised him for his long list of achievements, and mentioned where it is today, and passed on ten principles to his successor, that many pundits had over the years underestimated the success which he has always lived by: that Midas has achieved. He pointed out that Gordon’s stature in the industry was exemplified in his receiving the RMI Person of 1. The Customer is King, Queen and Prince. the Year award in 2007, an award that only comes with immense 2. If in doubt, go with what the market needs. 3. Respect the Business Model, only alter a pillar if the market personal sacrifices. He described Gordon as a Supreme Strategist, has illustratably moved on. a Clear Thinker, and most importantly, a Nice Bloke. Warren 4. Respect the Midas Associates. Tough love encompasses the thanked Chris Ransome for the confidence shown in him, and he required philosophy. assured the convention delegates that he takes the responsibility 5. Value our Partner Suppliers by exceeding their market share bestowed upon him seriously, and committed to maintaining the aspirations. Midas culture, which facilitates personal growth, and encourages 6. Don’t bet the farm, too many lives are at stake. debate from a diverse range of personalities. For more information on the Midas Napa 2009 Convention, please see insert in this magazine. Also available at www.abrbuzz.co.za under the Aftermarket section 74 November 2009

A series of articles on Launch Technologies SA (Pty) Ltd Launching Customers for Life Launch Tech Co was established in Shenzhen, Gaungdong Province, China, in 1992, a scion of a small computer company of the same name that had been manufacturing personal computers since 1987. Launch Tech Co blossomed, riding on the back of the surging Chinese automotive industry, and is today the leading Chinese company in automotive diagnostics and a global supplier to the automotive aftermarket. South Africa has been a beneficiary of this growth.

aunch Technologies SA (Pty) perspective in that Jackie Li, the CEO, has Ltd. was registered in South direct contact, and is in daily contact with Africa in 2000. Launch’s Head Launch Tech Co Ltd’s head office in Office is based in Jet Park, Shenzhen. Jackie Li spends a lot of time at LJohannesburg, Gauteng, and it has a Launch’s head office, and has his own branch in Durban, KwaZulu Natal, and office at headquarters, and his close rela- distributors in Cape Town, Western Cape, tionship with the President allows him to and Port Elizabeth, Eastern Cape. These stay abreast of all the latest developments distributors, together with a network of and projects, and gives him favoured sta- sales agents throughout South Africa, have tus as an international ambassador for allowed Launch to become a major suppli- Launch. In actual fact, he is merely a er of automotive aftermarket service phone call away from the President, and equipment to the automotive and allied this special relationship industries in Southern Africa. The quality translates into extra range of Launch equipment and products special service are fully backed-up and serviced by infor Launch’s house after-sales service teams. South Launch is acutely aware of African Launch Technologies is committed to the need for workshops to customers. keeping its customers for life, and this have access to finance and philosophy extends to offering trade-ins Therefore it credit for both capital and upgrades at very good discounts, soft- is no wonder requirements and opera- ware upgrades, and hands-on training that that of the tional costs and working cap- focuses on how to use the equipment. workshops in ital, so it is a preferred supplier Launch also recognises the need to take South Africa to Capricorn Supplier Limited, a this training one step further, and one of using Launch forward looking cooperative that offers the many projects it is working on is the equipment, that 70% of a range of innovative business assistance proposed establishment of franchised their requirements are met by Launch packages. quick repair shops, to facilitate further Technologies. training on how to take diagnosis and Launch Technologies SA is also in the trouble-shooting further, on actual repair relatively unique position from a global techniques.

76 November 2009

Howard Keeg follows the action Algoa Bay Welcomes Partinform

In 1799, a fort was built on a hill overlooking the mouth of the Baakens River, as a lookout for enemy ships, and cannon emplacements were in place to repel anyone foolish enough to set foot ashore. A lighthouse was also built on the Donkin Reserve some time later to warn the ancient mariners that they were too close to shore. Not very friendly, but Port Elizabeth is today a far more welcoming place, and Partinform was warmly welcomed at the ETC Training centre at the entrance to the Ibhayi suburb on the evening of 13th October 2009. ABR Readers Strike Gold ABR’s readers had to wait a long time, but it was worth the wait, particularly for those who struck gold. At the Port Elizabeth Partinform event, four winners were drawn from the hat, to join the eight others at the Forza Racing Ferrari Track Experience on 19th November 2009. These readers have been sending in their entries since early this year, and the four that came out of the hat in Port Elizabeth were: • Denise Darlow, Associated Brake and Clutch, Port Elizabeth • Keshin Govender, Kapico South Africa, Krugersdorp • Marius Crous, City Council of Matlosana, Klerksdorp • Prean Govender, Diesel-Electric Vaal, Vereeniging

In a big coincidence, Andre Rossi of Associated Brake & Clutch, soon to be trading as CBS Port Elizabeth, was present at the draw, and he was quickly on the phone to give an incredulous Denise Darlow the good news. ABR asked Andre how excited Denise would be to drive a he reason for this friendliness was not just a Ferrari, and he assured us manifestation of the modern Port that Denise is “up for any- Elizabethan character, but an acknowledge- thing”. He also wistfully ment that Partinform was the purveyor of added that she seemed to have a propensity for winning competitions – but importantT news, and a message that will resonate with then you have to enter to win, which is what Denise did, folks, so remember anyone in the automotive trade who has pride in their this when the competition comes around next year. work, pride in their tools, and pride in their commitment to fitting only quality parts. Quality parts equals branded parts, quality parts equals professionalism, quality parts equals safety, quality parts equals value for money, and quality parts equals customer care. This message was on display at every single stand at Partinform and this message was on display in the exciting competition held to find a winner for the Forza Racing Ferrari Track Experience, which will take place on Friday 19th November 2009. The responsibility of each and every participant in the logistics chain of providing these quality branded parts comes down to keeping South Africa’s car parc in pristine condition. The modern motorist is feeling the pinch, and with the car par aging, the onus rests on the automotive aftermarket to provide superior levels of service in all its aspects; from the provision of decent product at realistic prices, to the provision of after sales support in technical and warranty prolongation. 78 November 2009 The big winner of the night was Leslie Kretzmann of Triple L Plant Hire, Port Elizabeth. Here Leslie is seen exhaling in surprise as the magic briefcase opens in his favour. Leslie will be joining the other 11 winners at the Forza Racing Ferrari Track Experience on 19th November 2009.

November 2009 79 The Project Coordinators for the Nelson Mandela Metropolitan University Formula S project made a pit stop at Partinform, to introduce themselves to the Partinform guys, and to see what was on show. Left to right, Malcolm Perrie, AAMA Chairman; Howard Theunissen and Trevor Stroud, NMMU; Colin Murphy, Partinform Chairman

An international flavour was added to the evening with the attendance at the Schaeffler stand of Daniel Wolff, Business The Schaeffler Team, left to right: Cavin Hearne, Product Manger Development Manager, Engine Componentry, Schaeffler Bearings; Phillip Erasmus, Customer Service Manager; Group Automotive Aftermarket. Daniel was visiting South Daniel Wolff, Business Development Manager, Engine Componentry, Africa in his capacity as an INA specialist. Schaeffler Group Automotive Aftermarket; Tim Langdon, General Manager Automotive Aftermarket

80 November 2009

Commercial vehicle Update South Africa’s Toughest

Warrior By Richard Macaskill “The name Warrior was established in 1997 for our tough-as-nails bus range.” This is what Paul Richardson, DFM Warrior’s national sales manager, has to say about the brand’s etymology. The DFM comes into the name because of the relationship that Warrior formed with Dongfeng Motors; which is one of the three giant automakers in China according to Richardson. he bold statements continued when Mr Lee of DFM the day’s luncheon: “It will be China’s leading heavy duty truck on Commercial Vehicles in China stated, “In a few years, the basis of its reliability, safety, comfort and economic efficiency.” DFM will be the number one commercial vehicle brand to come out of China.” Bold statements “Warrior has been assembling, marketing and selling DFM com- indeed, especially considering the harsh conditions mercial vehicles in South Africa since 2002,” notes Richardson. The thatT trucks are forced to deal with in South Africa. However, these statements were made with good reason on this occasion. The occasion was the launch of what DFM Warrior claim to be a notorious- ly tough truck, the Kinland.

The official launch of the vehicle is 20 October 2009, but major clients were invited to Gerotek for a day of information sharing and vehicle testing one week earlier. While the Kinland range is new to South Africa, it has been operational elsewhere since 2006 and is said to have returned nothing but benefits. In fact the Kinland, marking DFM’s foray in to the heavy duty segment, has enjoyed record-setting growth, being pegged as the fastest growing vehicle measured in the same market. The Chinese vehicle hosts a French engine from Renault under its cabin, but this seems to be a multinational partnership that really works. According to Richardson, DFM’s Kinland range went through rigorous testing, going through myriad road and weather conditions ranging from -40° C The new DFM Warrior Kinland carries maximum load with to 40° C, and did so for over a million km. no problems.

That said, Gerotek’s testing grounds should have proved no prob- manufacturer itself though, has been in operation since 1969, and lem, and true to the Kinland form, they didn’t. The rigs were fully it has experienced substantial growth over the past 40 years. Today, laden, some weighing up to 59.3 t. Technically an overload given DFM’s assets are in excess of 15 billion Yen. the legal limit of 56 t, this was not an issue at Gerotek, and also not an issue for the Kinlands. Customers were invited to experience the However, despite this massive growth, Richardson comments that thrill of a high-speed trip around Gerotek’s oval circuit in the the most important things to DFM are caring and being both reli- Kinland, and none left unimpressed. able and professional. “The customer is at the centre of DFM’s focus,” he states. This is clearly illustrated through the products that The vehicles were put through their paces in front of customers’ the Chinese manufacturer offers. The DFM Warrior Kinland, eyes, and this only served to further entrench the toughness of while living up to the DFM traditions of quality, safety and effi- DFM Warriors, the Kinland specifically, in their eyes. Testament to ciency, also proves that it is tough enough to bear the Warrior the vehicles versatility though, is what Mr Lee said in conclusion at name.

82 November 2009 green News Going slowly, but going somewhere By Richard Macaskill All over the world people are going ‘green’. Companies sing praises of their carbon neutrality, corporate social responsibility has moved almost exclusively to preserving our environment and vehicle manufacturers, of course, punt their new, fuel-efficient and environ- One of Nissan's new Euro 2-compliant engines in the flesh, sure to keep the environ- mentally-friendly vehicles. ment green as well as keeping your fleet on the street. ot to take anything away from the aforementioned pending regulations, Nissan Diesel used the opportunity to categories; many people have invested millions of launch a new series of engines, ones that will be Euro 2 compli- Dollars in looking after our environment, and they ant even when coupled with the heaviest of trucks. should be commended. But doesn’t it feel like South AfricaN didn’t get an invitation to the green party? One hears of the “We have to listen, first and foremost, to our customers require- Euro 5 and 6 regulations that are coming into play in Europe, yet ments, but we also have a responsibility to bring in products that in South Africa we are only on Euro 2 – and that’s not even all comply with legislation,” states Shulz. According to Shulz, we are vehicle segments. only on Euro 2 because fuels in South Africa are not of a high enough quality yet to power engines that are Euro 4 and 5 com- Heavy duty trucks, for example, were excluded from the Euro 2 pliant; the vehicles would not work. “We want to offer customers compliance made mandatory in 2008. Why, you ask? Why are we a vehicle that will work equally well in Johannesburg and so far behind our northern counterparts? The fact of the matter is Potchefstroom,” Shulz added, “but because of the fuel quality we that South Africa is just not ready yet. Our fuel is not up to can’t do this yet. scratch - we got an invitation to the party alright, we just didn’t bother to dress up and go. “We are a developing country, and we don’t have the luxuries that developed countries do.” Shulz further noting that it is important “We have Euro 4 and 5 technology available that we could bring to develop the technology at a reasonable rate. “This technology to South Africa tomorrow,” notes Rory Shulz, general manager of is affordable; there’s no big price increase.” This is a critical ele- corporate planning and marketing for Nissan Diesel. Things are ment of developing green technology in South Africa. moving forward in South Africa though, and Nissan Diesel is at the tip of the spear. The Cradle of Humankind was an appropri- It is simply not realistic to develop too much too quickly in a ate venue for the manufacturer’s Euro 2 presentation held on 6 country such as our own – the technology will become more October. From 1 January 2010, all vehicles in South Africa must expensive and less reliable due to the lack of infrastructure. comply with Euro 2 regulations, this time including heavy duty Christie mentioned that the automotive industry as a whole has a vehicles. responsibility to work with the South African government to develop our environmental conscience at a reasonable rate, not Said the guest speaker, Lloyd Christie, senior associate and an too slow and not too fast. environmental specialist at Edward Nathan Sonnenbergs: “Transport has a significant impact on the environment, and this So it’s true, we may have missed the bus to the green party, but at has led to it having to be regulated.” In order to comply with the last, we’re on our way there now.

November 2009 83 LIFE GOES ON Power GM Trio Briefs the Media

Saturday, 19th September 2009 was an auspicious and epiphanetic* day for me. I had been invited third hand to a function at GM’s Woodmead offices, and not having the benefit of knowing what exactly the function was all by Austin Gamble about I, unlike Jane Austen, went with very little expectations. As the offices are a mere five km from my home, it was still 50/50 that I was going to attend a mere 30 minutes before the function. Wow, was I glad that I went along. It provided great grist to my Life Goes On series mill, as three men with great responsibilities, one in the past, and two in the future, gave a wide ranging overview of the South African and global automotive industry, and one was left with a sense that GM is in safe hands.

teven Koch, until recently the GM President of African image, which GM is working assiduously in improving via a Operations & GMSA Managing Director, was the voice provocative marketing campaign. Apart from Europe, GM is from the past, and his successor, Edgar Lourencon, togeth- doing well in Asia, South America and other emerging markets. er with Nick Reilly, General Motors International South Africa is looking good, and from a micro perspective Nick OperationsS President and parent company General Motors Vice- says that GM is working very hard with the suppliers, as localisa- President, were the voices of the future. Steve Koch is still a young tion is very important. In a final aside, Nick says that the number man, but because of the recent upheavals at GM, a window of one priority for GM in America is to pay back the government opportunity vis a vis retirement, had opened up for his generation, loans by the end of 2010 and to go public again, and in so doing and it would have been financially imprudent for him not to avail to thank those who have made sacrifices and to pay them back by himself of the generous option. It was thus a bitter sweet farewell surviving and staying humble. for him, because as he pointed out sincerely, the last two years had been for him the best time of his life. The times were challenging, Edgar Lourencon hopes to bring some Brazilian flair to South but GMSA had come out of the crisis in good shape. Labour rela- Africa (maybe he can assist with Bafana Bafana), and his vision is tions are as sound as they could be, dealer satisfaction levels at an to see South Africa emulate Chile, where GM has been top dog for all time high, the relationship with dealers ditto, positive cash 27 years. Edgar’s primary experience has been in South America, flow, a big investment in the Parts Distribution Centre at Coega and he says that his experience of the Argentinean that should help showing confidence in the future – and this during trying times! him, as it is of a similar size and similar conditions. Edgar is real- Steve said that whilst there was still a long way to go, the platform ly looking forward to his time in South Africa, and acknowledges has been laid for a bright future. As he put it, “Keep your eyes on that he is having to fill some big shoes and has a great responsibil- GMSA”. From a global perspective, Nick Reilly says that GM is ity in keeping GMSA on the right track. This responsibility he rel- in survival mode with an overwhelming sense of humility. The ishes and he also regards himself as a lucky man, being at the helm global downturn and the Chapter 11 humiliation had been during the Soccer World Cup. His last three assignments have instructive for all, and have made him question everything he been Chile, Argentina and South Africa, and as he say, “three does. GM’s cost levels in America are down to such an extent that beautiful countries, and all making great wine!” they are in a position to make money at industry levels of 11 million unit sales. Historically, 16 million units have been the norm More on this wide ranging discussion in the December issue and they will go back there. Even in 2010 they should be at 12 to of ABR. 13 million units, so as long as GM can turn around market share, 2010 should see some profits. The big challenge is the company’s *a nod to Words in action 84 November 2009 Corporate Conscience Midas Scores Way Above Par By Richard Macaskill Yes, you did read that correctly. Although it was a golf day, birdies and pars were not the order of the day, because Midas was way above par at its annual charity golf day held at the Royal Johannesburg and Kensington Golf Club on 15 October 2009. Midas’ golf day alone raised over R100 000 for charity, including three schools and hospices nationwide. Donations on other days put the total closer to a quarter of a million Rand. The golf was good... but the fund raiser was definitely the highlight of the day.

he schools are the Dias Farm School in Port Elizabeth, Facility improvements, bursary programmes and feeding the Phaphamani Primary School in Durban and the schemes are just some of the ways through which Midas further Madibatlou Middle School in Olifantsfontein, plus of aids its charities. course, the hospices. So while these entities benefit fromT the charity, these are passed on to the less fortunate people The focus of the evening was more about fun than formality, that fall under their varying umbrellas, meaning that hundreds and this was a hugely successful formula. From auctioning off of people will reap the benefits of Midas’ 2009 charity golf day. insulting t-shirts for more than original Bulls rugby jerseys to a golf trip to the United Kingdom being sold for a phenomenal “The sole reason for this golf day is to raise funds for charity,” R60 000, Midas managed to make people not only feel good said Warren Espinoza, COO of the Midas Group. “This is about donating to charity, but to have one hell of a good time Midas’ primary charity event of the year.” With a focus purely on while doing it. raising money, it is no surprise that Midas’ fourth annual charity golf day was such a vast success. Importantly though, Midas Although no-one won the Harley Davidson on offer for a hole does not just raise the money and give it away. “It is more than in one at the fifth, everyone truly enjoyed themselves. Months of just the money,” stated Espinoza, “Our focus is to uplift the hard work paid off, and no-one will be happier than those whose community.” This is done through performing community proj- lives are positively affected by Midas and its charity. R100 000 ects and improving not only the schools and hospices that Midas later, it seems Midas has its slogan right then – because there helps, but improving the lives of those involved as well. really is more to Midas.

November 2009 85 Corporate Conscience The Tree Bears Fruit For close on a year, ABR has been banging on about the Herculean efforts of Patrick Latouche, CEO of Sparepro, in bringing change to the culture of the organisation. There has been a hidden agenda in these articles, which is to prove that employee morale and motivation, together with committed customer care, charged with energy and focus, and all based on sound business principles and a sincere corporate conscience spiced with community and social initiatives , can have remarkable results.

ll of the ideas and projects initi- value is changing for the better, and respect of your employees, your customers ated by Patrick Latouche are Sparepro’s customers no longer look at and your competitors, and the key to it all closely aligned with the princi- pricing as the be all and end all. Customer is dignity. ples that ABR espouses to, so service, customer relationships, and cus- thereA has been a significant amount of tomer loyalty is gaining traction. The cus- champing at the bit to reveal the results of tomer is now starting to equate delivery these efforts, whilst also appreciating that performance; warranty support; supplier the changing of a culture takes time and commitment, empathy and reliability with persistence. The good news is that Patrick value for money. The customer is also has finally relented, and during our starting to support the set of overall values October interview he disclosed that since that the business stands for. June 2009, the business has consistently performed above targets, culminating in Patrick says that this has been a long term the month of September 2009 which was a process. He compares it metaphorically record month for Sparepro, in sales, mar- with the planting of a tree. Once you plant gins, and bottom line. Working as individ- a tree, you need to water it, fertilise it, to nurture it, even to take a leaf from Prince uals, and more importantly working as a This avocado tree was nurtured and team in a friendly but competitive envi- Charles’ book, and talk to it. This energy nourished, and these efforts bore fruit. ronment, every single member of the 14 and nourishment will eventually bear fruit, person sales team achieved their targets, and Sparepro’s September performance is whilst seven broke their all time sales living proof. Patrick’s surname is indeed records, resulting in Sparepro’s sensational appropriate, as his light touch in making a September results. The truly heartening point rather than a heavy handed aspect is that this was done without ridicu- approach, has produced the results with lous prices, which may have been the appreciative acknowledgement. He says modus operandi of the past in business that the days of aggressively attacking the generally, and is testament to the growing competition and starting price wars are sophistication of the automotive aftermar- long over, as these tactics have short term ket traders and customers, who are becom- effects with detrimental long term conse- ing increasingly savvy, and who no longer quences. The light touch involves finding get excited about unrealistically low prices the right balance between market share – conversely, the savvy trader gets suspi- and acceptable returns on investment, This avocado tree was left to fend for cious, and rightly so, as there is no such based on solid strategies and sound busi- itself, and whilst it has survived, it has thing as a free lunch. The perception of ness principles. This is the foundation to a yet to bear fruit. successful business, capped with the

Answers From page 66

1. Jensen Button 11. Alonso and Massa 2. Rubens Barricello 12. Malcolm Gould 3. Comfort Coupe 13. Tiger Wheel and Tyre 4. Duncan Vos 14. Peugeot 5. Fiat 15. 25 6. Hennie Groenewald 16. Mahindra in India 7. Citroën 17. Ten years 8. McCarthys and Imperial 18. Volkswagen 118 kW 1.4 TSi Engine 9. Mannie da Canha 19. Mercedes Benz 10. Francois Pretorius 20. 1.5 million.

86 November 2009 SABAT HOSTS THE 7th ANNUAL POWER WHEELCHAIR RACE AT KYALAMI DURING THE VODACOM POWER TOUR ON THE 17th OCTOBER 2009

SABAT hosted 30 quadriplegics from the QuadPara Association of South Africa (QASA) for the Annual Power Wheelchair race around one kilometre of the Kyalami circuit on Saturday 17th October 2009.

his was the seventh year the event, the Errol Innes pres- only one of its kind in the world, was ents Arie Seirlis held. 30 quadriplegics lined up at the of QASA with a bottom of Mineshaft at one hour after commemorative Tmidday and raced to the finish line at the end of picture. the main straight at Kyalami to see who would be crowned "The fastest Quad". The event is open to both men and women, who all use SABAT batteries to power their appropriately prepared wheelchairs. SABAT have an ongoing relationship with QASA, sponsoring all members who use power wheelchairs with a pair of batteries per annum to keep them moving and mobile. "This project enables quadriplegics the opportunity to remain mobile through the use of SABAT batteries and thus save hundreds of Rands. The race event gives those of us who use power wheelchairs an oppor- Quads hit the track tunity to re-discover the joy of competitiveness and feel the adrenalin, often lost through disabil- ity" says Ari Seirlis, National Director of QASA. 30 000 Kyalami spectators were on hand to cheer the participants on race day, while top speeds of 16 km/ph were achieved by the front runners. Power Wheelchairs cost between R20 000 and R100 000 and these essential mobility aids allow quadriplegics the freedom and independent Corne Strydom movement they deserve. QASA encourages quad- of Powertech riplegics and paraplegics to participate in sport Batteries chats and hobby activities and the SABAT POWER to Ari Seirlis of QASA. WHEELCHAIR RACE is a perfect platform for the users of power wheelchairs to demonstrate their toggle driving skills and to enjoy the thrill of some wind in the hair competition.

November 2009 87 Show Time

First HeavyWeight Expo attracting great interest from industry Great interest has been shown by potential exhibitors in the country’s first national exhibition dedicated to the latest products, services and concepts in the heavy vehicle industry, which will be staged at the Tshwane Events Centre in Soutter Street, Pretoria West from March 23 to 26 next year (2010). “The Tshwane Events Centre is proud to host this first ever confex dedicated to the heavy equipment sector in South Africa. We have identified this exhibition-cum-conference as a need within the industry which was confirmed by major role players,” says Wim du Toit, CEO of TSHWABAC, organisers of the event. Tshwane Events Centre and HeavyWeight Expo Director, Fanie Fourie, is excited about the enthusiastic response received since the HeavyWeight Expo was announced earlier in September. “We are expecting around 80 representatives of the heavy vehicle, bus, construction plant and equipment, special and agricultural vehicle sectors to attend the official launch function of the inaugural HeavyWeight Expo,” said Fourie.

“All the major players have expressed an Management (TRM), specialists in cus- interest and once we have fully briefed tomer relationship management in the them on what the show will offer them, automotive arena. TRM provides a range we will be getting into the hard marketing of services aimed at enhancing customer of the exhibition. The excellent response care and customer satisfaction strategies we have received so far reinforces our and boosting customer relationship initia- belief that it is time for a show of this tives. nature, that will showcase the heavy vehicle industry, which is a key sector of the Jeff Osborne, CEO of the RMI, com- transport business,” Fourie added. Three ments: “The RMI, which is in its 101st of the biggest exhibition halls at the old year of existence, is pleased to offer the Pretoria Showgrounds have been made HeavyWeight Expo its full support. We available to exhibitors. Halls C, J and L enjoy a world class automotive industry in will provide around 17 000 square metres South Africa, as was evidenced by last of exhibition floor space and in addition year’s Johannesburg International Motor there will be a further 30 000 square Show. We believe that the creation of an metres of outside space. While the additional show dedicated to showcasing HeavyWeight Expo, which is endorsed by the heavy vehicle industry is entirely the RMI, will provide a unique platform appropriate and we urge all players in the for the leading manufacturers, suppliers industry to give HeavyWeight Expo 2010 and service providers to display their their full support. It is being organised by products and do business with existing enthusiastic professionals who enjoy an and new customers, industry related busi- impeccable track record and, I am sure, it ness conferences and workshops will be will be a great success.” organised by Omega Investment Research. Exhibitors will also have access to the services of Total Relationship

88 November 2009 Show Time

The fifth annual Workshop and Aftermarket Technology Show (WATS) will run in tandem with the HeavyWeight Expo for two The Heavyweight Team behind of the four days. The 120 or so WATS exhibitors will occupy one of the three exhibition halls. The 6th WATS Expo – Workshop the Heavyweight Expo and WATS Aftermarket & Technology Show has been extended to two days (24-25th March 2010) thus bringing an exciting variety of Manufacturers, Distributors and Agents of Heavy Duty Vehicles, Plant, Agricultural Equipment, Automotive Parts, Garage Equipment, Tools, existing & newly released Diagnostic Scanning Equipment with live demonstrations, Parts Suppliers, Aircon suppliers, IT Accounting/Workshop Control & Job Tracking Software. For the very first time, Mechanical, Auto Electrical & various other Automotive Training Centres together with RMI, SDF’s ( Skills Development Facilitators ) & MerSETA will be on hand, to advise you on all your training & up skilling needs. Training is Crucial in ensuring that your business becomes a success story to be proud of. “The timing of the Expo’s is perfect,” adds Osborne, pointing to the potential upswing in the economy & the forthcoming 2010 FIFA World Cup Soccer as big incentives for visitors & exhibitors alike. “The RMI feels that the combination of these two shows makes practical sense and we’re looking forward to what they have to offer.

“We need to train up our new and existing technicians to compre- hend and master the new technologies entering our markets on a daily basis in the form of sophisticated new products, technologies and vehicles,” says Johann de Bruyne, organiser of the WATS Show & Managing Director of Kigima Auto Electrical Training Centre. In addition to the shows, WATS will host a number of mini 30min workshops between 6 & 9pm on 24th & 25th March and the Heavyweight Expo will host a series of 4, half day workshops & conferences over 23-26th March addressing a number of vital issues pertinent to stakeholders in the automotive aftermarket and heavy commercial vehicle and machinery sector. Stands for exhibitors @ the WATS Expo Hall “L” - total cost for the 2days, R4,950.00 + Vat for a basic 3x3m stand. Space for exhibitors @ Heavyweight Expo starts at R140 per sq meter (open flooring).

November 2009 89 Intelli-Driving INFORMATION ON AARTO IMPLEMENTATION

here has been so much confusion regarding driving, on the other hand, is a whole the implementation of AARTO and mis- cluster of bad or inconsiderate driving representation by some, albeit well meaning behaviours. These are the more com- by Eugene Herbert individuals. The following we hope will monplace, but negligent, driving serve to clarify matters as it emanates from habits, including rude gestures, blowing the hooter, speeding, tail- a reputable and well known expert on these gating, failing to indicate, driving on the shoulder (emergency matters. Please feel free to call us for infor- lane) to pass other cars, and unsafe lane changes. Of course, any of mation on the Advanced Driver AARTO these behaviours could also result in a situation where retaliation programme – a must for any organisation wanting to protect and turns violent. But more often, no physical harm is done. Often it enhanceT their drivers’ (and sales personnel) effectiveness. AARTO is a case of stressed, frustrated drivers taking a mistake too person- is an Act of Parliament. It must be implemented by way of a ally and reacting without thought to consequence. Could that be proclamation signed by the President. If AARTO is implemented called "rage"? Perhaps, but calling it thus could fuel fears and in a new area, it will also be done by way of a proclamation. The undermine the seriousness of those confrontations that turn into only proclamations that have been published thus far have imple- assault. What are the characteristics of a likely "road-rager"? mented the Act in the municipal areas of Johannesburg and Studies abroad show that, on a statistical level, men under 30 are Tshwane. The CEO of the RTMC, Mr Rakgoale, has issued an most often the offenders and the victims of road rage. But anyone extensive press release addressing all the issues that news paper could be struck by road rage. The difference is that most people are reports raised over the last few weeks. You can have a look at the able to suppress urges to react. What can I do about my own road information about the RTMC on their website www.rtmc.co.za. anger or frustrations? AARTO information is available on www.aarto.co.za. The Points Demerit System cannot be implemented without a notice in the Don't get into the driver's seat angry. "High-anger" drivers share a Government Gazette implementing regulation 24 and schedule 3, habit of taking their everyday aggressions into the car. Avoid this column 7 of the AARTO Regulations. Information is published recipe for rage by planning ahead. Give yourself plenty of time to weekly in the Government Gazettes to inform when there is a get where you're going. Steer clear of high-traffic routes, or pull off notice in the Government Gazette concerning the implementation the road for a break when you feel angry or overwhelmed. Notice of AARTO in further areas. When you receive a notice for a traf- if certain conditions - rainy or overcast days, construction obstacles fic infringement and have to sign for it at the Post Office, you have - seem to trigger your temper and avoid them when you can. to deal with the ticket in terms of the AARTO system. When you receive it by standard mail it is issued in terms of the Criminal Don’t judge other drivers. Unless a fellow driver puts you in immi- Procedure system. Note: Old tickets in Johannesburg and nent danger, why would you expend any mental effort condemn- Tshwane were also issued in terms of the criminal system. If a ing their driving skills? Does it really matter if that guy forgot to notice is served to you in person and it states AARTO 01 – it is an indicate his turn or that some lady slows down to get a closer look AARTO fine, if it states section 56 – it is a criminal offence. News at a street sign? Give the benefit of the doubt; it's not always an paper reports cannot stop the AARTO Act from being functional inconsiderate driver, just a momentarily distracted one. And in a specific area. A person must act on the notices to avoid fur- remember that we all make mistakes now and then. ther notices being sent to him or her. Remember, it's usually nothing personal. People prone to road rage Commuter Stress and Road Rage are often more sensitive to perceived attacks on their self-esteem. They may see bad driving as disrespectful or as a personal insult. So-called "road rage" runs the gamut from cranky drivers laying on But keep in mind that your fellow drivers have their own prob- the hooter to full-on assault with a deadly weapon. And yet "road lems, their own worries, and their own agendas that have nothing rage" is a relatively new term. Could the use of it be reckless in to do with you. itself? By some accounts, up to 90% of us will encounter road rage, either as a victim or as a witness, at one time or another in Seek treatment. Be proactive about handling your anger and frus- any given year. But overseas law enforcement officials and experts tration. Training in relaxation and coping skills have helped some in public safety emphasise the importance of making a distinction people deal with anger and impulse control. You might also try a between aggressive driving and road rage. What is the difference course in driving instruction to pick up some tips and tricks for between road rage and aggressive driving? There is no scientific dealing with tense moments on the road. definition for road rage, but many road safety experts agree that it is a criminal matter, not a threat to road safety. It occurs when a Set a good example for children. If you have children in the car traffic incident escalates, resulting in a far more serious situation, with you, consider everything you do a possible example of how to such as if someone overreacts to an event and retaliates with vio- act behind the wheel. This includes your negative reactions to lence... So, the term should be used to classify intentional acts of other drivers and the comments and gestures you make. Wouldn't violence and assault that happen in the context of driving. In other you prefer a future of alert yet level-headed drivers on the highways words, assault is assault no matter where it takes place. Aggressive to one filled with irate cranks flipping each other the finger?

90 November 2009

From the Cockpit Highveld Storm Washes the Blues Away It had been, in the words of Hennie Groenewald, “a long year, but you couldn’t have wished for a better finish to the season”. An exciting finish was provided for by per- sistent rain at Kyalami on the 17th October 2009, when the final two races of the season were held, and the rain blessed Team Timken’s Talent and Team Timken’s Tenacity in the WesBank South African V8 Supercar Championship.

The championship all came down to the second heat, from an inverted grid, and Groenewald, sitting in ninth position, had the task of passing the Auby’s who were at sixth, seventh and eighth respectively. Hennie realised that he was to receive no favours, so he decided to take the bull by the horns, despite atrocious racing conditions. Hennie told ABR after the race that the conditions actually favoured him, as his daring driving in treacherous conditions caught everyone napping. Cars were aquaplaning which required a cautious approach, and Hennie barrelled past two of the Auby’s on the outside of turn one, then nipped past the third Auby on the inside before turn two. His audacious approach then took him past the rest of the field, and after an astonishing half lap of brilliant driving; he was in first place by turn six!!! Not that the other guys were not trying, it was just an irresistible whirlwind Hennie Groenewald and Richard Pinard – a racing duo of note and orange blur that had gone past them. In front of all this oing into the Kyalami meet, Marc Auby in his ELT action, Hennie’s team mate Richard Pinard had also shown his International Jaguar was the favourite to take the racing prowess by going to the front, but when he spied the championship with a five point cushion, and with the orange Holden in his rear view mirror he gave away the racing line knowledge that he had led the championship from to allow Hennie through. By so doing, Richard showed his value theG start of the year. Hennie Groenewald had other ideas, and was as a team man, and this allowed Hennie to build up a sizeable hoping to cap an incredible comeback in his Team Timken cushion, which allowed him to hang on despite tyre problems, Holden, after a year characterised by bad luck and administrative taking the checkered flag to cap an amazing season. snafus. The fairy tale ending was set up at Killarney on 26th Danie Coetser, Managing Director of Timken South Africa, had September when Hennie made up 24 points on Marc, whose luck showed his faith in his racing team by inviting 90 guests to the had turned and who only managed to garner one point in two dis- Timken boma, and they were there to celebrate with Danie and appointing races. Hennie, who was looking dead and buried his team. Hennie revealed that their prayers on the day were before Killarney, suddenly had the momentum with him, and he answered, and he and Richard Pinard reiterated their thanks to a could literally smell his fourth successive WesBank V8 Supercar support team who never wavered in their faith, and praised Championship after holding on to win the first heat in wet con- Timken for their generous sponsorship, and their commitment to ditions, with Marc Auby second and brother Brandon third. motorsport in South Africa, under trying conditions.

Hennie Groenewald leads the way through a corner

92 November 2009

Fast Wheels ANOTHER CLOSE FINISH TO THE FORMULA 1 SEASON COMING UP by Roger McCleery Some people say they gave up watching Formula 1 Grand Prix racing on TV during the Schumacher era due to the predictability of the results and lack of passing. A dearth of passing remains this year despite a committee being formed to try and correct this, except in the pits. Seeing the smart work by the various teams of mechanics in the pits getting their men all fuelled and equipped with new rubber in a few seconds adds a bit of interest. It is not really exciting. eal passing, however, does take place on the real the entertainment value of Grand Prix racing, which is badly need- Grand Prix circuits that don’t feature tight 90º cor- ed. It is not helped by the English commentators always justifying ners and chicanes. Lately the Grand Prix races on any little mistake at high speed with “rules are rules”. The enter- classics like the Belgian circuit at Spa or in Italy at tainment value for the public, who pay huge money, is often lost, Monza, or the Japanese Grand Prix at Suzuka are thanks to this anonymous bunch of officials. theR best. The old Kyalami track would have done the same. The Brazilian Grand Prix in Sao Paolo always brings high speed racing Have you noticed how few competitors have been caught speeding and lots of drama. This could be the scene of another world cham- in the pits lately after it was mentioned to the FIA that their tim- pionship decider with its fast straights, high speed corners and ups ing equipment could be inaccurate. The timing was used to and downs. enforce drive-through penalties which also wrecked the races. The one exception was Webber who drove through the pits and went Circuits like Valencia which is a dressed up harbour and the on to win the German Grand Prix. Singapore Grand Prix with street lighting, does nothing for what is supposed to be the pinnacle of motor sport. Grand Prix racing The normal musical chairs have started for the driver line-up for should test the drivers and cars to the limit. Let’s hope the brand 2010. Alonso is driving for Ferrari with Massa, if he is fully recov- new track at Abu Dhabi which will conclude the 2009 season is ered from his injuries. Kimi Raikkonen could be joining Toyota. not another Middle Eastern track like Dubai or Qatar (for the Robert Kubica is also penned in for this team, despite rumours of bikes). These are just flat featureless tracks, have stop-start racing the withdrawal of Toyota from the sport. Kubica could also be and almost no passing for the small audience they attract to their going to Renault. Talk is that Raikkonen will replace fellow-Finn stands. Predictability? Not this year for sure. Brawn GP cars were Kovalainen at McLaren. Other drivers’ seats opportunities haven’t on their way to win everything when suddenly the rubber they been mentioned yet but there are quite a few vacant seats with lots were using wouldn’t warm up sufficiently whilst all the other teams of talent to fill them. Renault desperately needs to win again, without this problem made whoopee and caught up. It can’t only although their engines do well in the Red Bull cars. The Renault have been the diffuser box behind or below the Brawn cars that did chassis seems to be a dog despite the brilliance of Alonso. They it. It seemed to come right at Monza when Barricello and Button have lost their manager, Briatore, who has departed the scene, came home in 1st and 2nd spots but went away again at Suzuka although Bernie Ecclestone says that decision was pretty harsh. where they looked average. It does, however, add to all the excite- Watch developments on that one. ment and blows predictions out of the window for the last two rounds of the championship. These are going to be worth watch- Prost, who has replaced Briatore at Renault, in my book might be ing. We hope all this close competition will happen without the French and a four-time Formula 1 World Champion, but his pre- intervention of the race stewards. It seems the instructions come vious attitude and experience running his own team came to from the Race Director to penalise competitors during a GP. This nought. A great team like Renault will go the same way. Nobody is wrong. They can almost manipulate the results of any race. seems to want to drive for them. Interesting months lie ahead. The plea to the FIA is to give us racing with lots of possibilities of If there is an infringement, give the penalty at the end when both cars passing each other. Let’s have less of your behind-the-scenes sides of the story have been heard. For instance, Rosberg lying 2nd politics in offices and at race tracks. This appears to be a pointless in Singapore went over a white line coming out the pits. He gained fight over power and greed. no advantage but was virtually banished to being a tail-ender and out of contention. They must have been spitting blood in the We have supported and watched your Formula 1 GP Racing from Williams pit. What about all the people who had come to see the start, so let’s have it back as the pinnacle of motorsport as it Rosberg and Williams racing? Stupid rules like this that can wreck should be.

94 November 2009 The Last Writes by Baron Claude Borlz A selection of light hearted humour from various sources …

This one I got from the SAAW Times, issued • The geology professor discovered that during the SAAW in PE early in October. her theory of earthquakes was on shaky Question: What is the truest definition ground. of Globalisation? • The dead batteries were given out free of Answer: Princess Diana's death. charge. • If you take a laptop computer for a run Question: How come? Answer: An you could jog your memory. English princess with an Egyptian • A dentist and a chiropodist fought tooth boyfriend crashes in a French tunnel, and nail. driving a German car with a Dutch • A bicycle can't stand alone; it is two engine, driven by a Belgian who was tired. drunk on Scottish whisky, (check the bottle before you change the spelling) • A will is a dead giveaway. followed closely by Italian Paparazzi, on • Time flies like an arrow; fruit flies like a Japanese motorcycles; treated by an banana. American doctor, using Brazilian medi- • A backward poet writes inverse. cines. • In a democracy it's your vote that This is sent to you by an African, using counts; in feudalism, it's your Count Bill Gates’ - (an American) technology, that votes. and you're probably reading this on • A chicken crossing the road: poultry in Dear beloved Boss! your computer, that use Taiwanese motion. chips, and a Korean monitor, assembled by Bangladeshi workers in a Singapore • If you don't pay your exorcist you can plant, transported by Indian lorry-driv- get repossessed. Please take the attached picture ers, hijacked by Indonesians, unloaded • With her marriage she got a new name and frame it in your office so you by Pakistani men, and trucked to you by and a dress. will know why I’m always late at Mexicans ...and now being read by a • Show me a piano falling down a mine- person sitting in ???? who should be shaft and I'll show you A-flat miner. work. I WILL BE LATE working instead of wasting time like this! • When a clock is hungry it goes back four AGAIN ON MONDAY. (I am seconds. That, my friends, is Globalisation. Ed’s note: in the white car?) and Diana’s son was chummy with a • The guy who fell onto an upholstery machine is now fully recovered. Zimbabwean girl who studied in SA. • A grenade fell onto a kitchen floor in Regards France, resulted in Linoleum Some phonetically challenging teasers Blownapart. for those with nothing better to do: • You are stuck with your debt if you can't For Everyone Who Has Ever • Police were called to a day care where a budge it. Missed A Deadline... three-year-old was resisting a rest. • Local Area Network in Australia: The • Did you hear about the guy whose LAN down under. whole left side was cut off? He's all right • He broke into song because he couldn't now. find the key. • The roundest knight at King Arthur's • A calendar's days are numbered. round table was Sir Cumference. • A lot of money is tainted: 'Taint yours, • The butcher backed up into the meat and 'taint mine. grinder and got a little behind in his work. • A boiled egg is hard to beat. • To write with a broken pencil is point- • He had a photographic memory which less. was never developed. • When fish are in schools they sometimes • A plateau is a high form of flattery. take debate. • Those who get too big for their britches • The short fortune teller who escaped will be exposed in the end. from prison was a small medium at • When you've seen one shopping centre large. you've seen a mall. • A thief who stole a calendar got twelve • If you jump off a Paris bridge, you are in months. Seine. Ed’s note: and those who don’t • A thief fell into wet cement. He became believe anything and fall into a Cairo a hardened criminal. River, are in denial. • Thieves who steal corn from a garden • When she saw her first strands of gray could be charged with stalking. hair, she thought she'd dye. • We'll never run out of math teachers • Bakers trade bread recipes on a knead to because they always multiply. know basis. • When the smog lifts in Los Angeles, • Santa's helpers are subordinate clauses. U.C.L.A. • Acupuncture: a jab well done. • The math professor went crazy with the blackboard. He did a number on it.

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