South Africa’s leading source of news and information on all aspects of the motor industry Issue 18 | 08 March 2012 www.autolive.co.za Commercials Key To Being Number One VWSA Targets LCV market for overall leadership spot VWSA’s Managing Director David Powels: Interview on Page 2 Is communal People’s Wheels Interview: GMSA’s transport in our Industry Movers Surprises Edgar Lourencon future? page 11 page 3 page 6 page 7 Subscribe for free @ www.autolive.co.za Page 2 Editor Stuart Johnston INTERVIEW – David Powels, Managing [email protected] General Manager Director of Volkswagen South Africa Roger Houghton [email protected] In this interview with VWSA’s powerhouse MD David Powels, which was conducted during Sales Bruno Lupini the launch of the VW Cabriolet and also combined the 2012 motorsport team launch, [email protected] David Powels reveals that his company will be targeting Toyota’s dominance in the LCV Address sector, to gain overall market leadership in SA. Suite 106B, MISA Centre 12 Fir Street, Northcliff Johannesburg, 2195 Q: We presume you are happy with but we have yet to make significant traditional players like Ford and GM. the way VWSA performed in the progress in the commercial market. And Toyota will definitely fight back Tel sales arena ion January (this inter- We still have a relatively low share in the passenger market. It’s an in- +27 (0)83 450 9255 view was conducted a week before here at about six to seven per cent, credibly competitive environment. the February sales figures were and we want to grow that, while We are pleased with our long Fax realeased)? retaining our dominance in the range performance. If you look back +27 (0)86 505 8957 A: January was a good month. Obviously passenger market. to 1995, when import tariffs were re- Q: Website in 2011 we saw good progress in the Will you be opting for bigger engines duced and opened the market to im- passenger market with both VW with Amarok? ports, we have maintained our mar- www.autolive.co.za and Audi brands, as we introduced A: No, we’ll have the same engine line- ket share. The challenge is to take it © 2011 WCM Media CC lots of new product. We’re very satis- up. We will be introducing an eight- to a new level of dominance. fied with the performance of our two speed automatic gearbox, though, Q: In terms of your plant’s production, Production volume products, the Polo and Polo later in the year. The consumer will are you operating at capacity levels? Marketing Support Services Vivo. And with the VW brand we have to get used to the idea of plenty A: Last year, and in 2011, we ran three +27 (0)12 346 2168 now have the advantage of a full range of power and torque from a small shifts, in other words 24 hours a day, [email protected] of imported products, and we are engine. with our Polo line. We dropped a shift starting to get traction with the likes Q: In terms of the passenger market at the end of last year because export Layout and Typesetting of Tiguan, the Passat and the CC. particularly, how do you view the demand dropped. Nevertheless, last Bonita Tuson Q: So you have seen sales of these mod- threat of Hyundai? year we exported an historical high A: Disclaimer els on the rise? Basically, Hyundai and Kia have of 80 000 cars. A: Yes, it’s still a huge area of opportu- made significant progress in the This year the export volume looks While reasonable nity for VW. We’re very dominant SA market. Last year they ended up to be in the region of 50 000 to 60 000 precautions have been in the entry-level segments, as well with a combined share of about 16 units. So we expect volume to drop, taken to ensure the as with Golf. The new Jetta has also per cent, which taken together, puts mainly because of the financial situ- accuracy of the advice been very well received in the market. them in the number two position in ation in Europe and the UK. We are and information given to Q: So you are still on target for leader- the passenger segment. So, very cred- going to have a low year at the fac- readers, neither the Editor, ship in 2018? ible competitors, good product, well tory from an export volume point of the Proprietors, nor the A: As you are aware, we have a group priced. view. But the overall plant volume, publishers can accept target to be the number one auto- There are lots of new competitors thanks to strong local sales, will still any responsibility for any maker in the world by 2018. And we in the market, lots of new product, damages or injury which are on track for that in South Africa, and new strategies from the more continued on page 5 may arise therefrom. Subscribe for free @ www.autolive.co.za Page 3 Editor’s Note World is Moving from Car Ownership to Car Usership The People’s Wheels Awards, re- ported in more depth on page 6, was a really interesting exercise, Although most car owners in the developed world are loathe coming as it does just weeks be- to give up the independence and status provided by car fore the South African Guild of ownership those people living in emerging economies are Motoring Journalists’ 2012 Car of the Year is announced, which hap- looking for alternatives to traditional car ownership. This is pens next Wednesday evening. one of the host of informative and interesting trends that have The COTY competition has arisen from KPMG’s 13th Global Automotive Executive Survey. been running since 1985, while this is the inaugural People’s choice, and the way winners are arrived at are two very different By RogeR HougHton more than 25% of the transport market processes. The major difference, of course, is that COTY is chosen in their country by 2020, while. Brazil’s by a select group of motoring journalists who are exposed to up- first car-sharing brand, Zazcar, is already wards of 50 new cars each year. Whereas the People made their The findings of this comprehensive annual a symbol of how that country’s megacity selections based on…., well, perceptions in the main part. survey were presented to a motor industry dwellers are adopting these new concepts. How are those perceptions garnered? By advertising, by interest group in Johannesburg this week It is common knowledge that the tra- published and televised road tests, by visiting showrooms, and by two executives from the South African ditional position of a car as a status sym- by seeing their cars of choice on the road. And owning some of subsidiary of KPMG, being the director/ bol has diminished for the younger urban them too. partner in the construction, industrial dwellers, who tend to be more concerned The fact that the Kia Picanto was the overall winner was sectors, Gavin Maile, and his divisional about the brand of his or her smart- interesting, but a bit misleading too. It gained 59 per cent of the manager, Ashleigh Raine-Botha. phone, tablet, laptop and other personal votes in its category, that of “budget buys” but glancing through Although many executives think possessions. the list of its opposition, one had to say it was the obvious choice. “mobility services” will be a promising It’s only real opposition came from the Chev Spark Lite (a dated solution to many urban transport issues, It is common knowledge that model with 14,6 per cent) and the Hyundai Atos (an even more they believe drivers will be slow to give the traditional position of a dated model at 11,8 per cent). Tata’s Indica, for instance, gained up their personal cars, with only about car as a status symbol has just over four per cent of the votes in this category. 15% prepared to use some form of on- diminished for the younger Toyota’s Yaris Zen was a far more worthy winner in Compact demand service rather than owning a Commuters at 24,5 per cent, beating out Hyundai’s i10 at 18,9 per vehicle outright. urban dwellers, who tend to cent. So too was Volkswagen’s Polo Vivo on 47 per cent, up against The report made much use of the new be more concerned about next-best Ford Figo on 21 per cent. buzz words “mobility services”, which the brand of his or her Nevertheless, this is the first survey to get a grip on how the are used to describe emerging business average car enthusiast relates to all the cars on our market, and models in which single or multiple pro- smartphone, tablet, laptop and advertising and model planning execs should be studying the full viders offer consumers a comprehensive other personal possessions. results closely. transportation solution that may employ The COTY winner, when it is announced, has been the result a short-term rental car or various other Many industry executives believe of lots of painstaking testing and analysis by people who appar- modes of transport to get consumers from transport will be seen more and more as ently are un-swayed by mere marketing hype. It will be interest- A to B as efficiently and cost-effectively a commodity, moving people from A to B, ing to see if Kia’s Picanto 1,2 makes it a double on Wednesday as possible.