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Transcript of Automotive Business Review April 2010
12 Counterfeiting
24 Show and Tell
38 Flower Power
43 Tyre Deniers
52 bottled Horsepower
77 New Challenges
Official Mouthpiece of
All very useful and neces-
sary for those who want
to keep abreast of
trends in the industry.
Adding to the lustre was a high
profile tyre industry conference,
which was a significant feature of
the Tyre Expo, and held on the
Friday alongside the exhibition.
For anyone involved in the man-
ufacture, distribution, retailing of
tyres, or associate industries, this
was a show/conference not to be
missed. And yet, the attendance
at the show was lower than what I
would have expected.
The feedback from the exhibitors was
mixed; some were happy, some not so
happy. Not being an expert on show atten-
dance, and being aware that in many cases
it is the quality of visitor that is important
rather than the quality, I shall not com-
ment further.
However, I do consider myself as some-
thing of a conference buff, and to my mind
the attendance at what transpired to be a
highly stimulating conference was shock-
ing. Shocking in many respects. The
keynote speaker was Sir Tom Farmer CVO
CBE KCSG DL, an absolute global icon in
the tyre industry. Sir Tom is credited as
being the man who revolutionised tyre
retailing in the UK. He was the founder of
the Kwik-Fit retail empire in Scotland in
1971, and built it into one of the world’s
largest automotive parts repair and replace-
ment specialists before selling it to Ford in
1999 for the not inconsiderable sum of
US$2 billion. Subsequently, he has become
a philanthropist of note, supporting a wide
range of charities whilst still keeping an
interest in the industry in his beloved
Scotland. During the conference I had a
chat with “Tom”, and asked what all those
letters behind his name meant, and he
spelled them out; CVO (Commander of
the Victorian Order), CBE (Commander
of the British Empire), KCSG (Knight
Commander with Star of the Order of St.
Gregory the Great), DL (Deputy
Lieutenant). And of course the Sir denotes
a knighthood. All very impressive, but not
as impressive as his keynote address. He
kept the small audience spellbound with
his presentation, regaling them with his
experiences in business and life and the
philosophies behind his success. The
tragedy was that all this experience and
advice fell on so few ears. An indictment
on the South African tyre and fast fit
industry! It was worth it to attend the con-
ference just to hear Sir Tom Farmer, but
there was far more, and much to learn
about from industry leaders and commen-
tators, both domestic and global.
An overview of this conference is on page
55 of this issue of ABR, and we also have
an intriguing view of the proposed tyre
waste disposal plans from Fingal Wilde on
page 43.
I am not sure of the reason behind this apa-
thy, but I intend to investigate this
appalling lack of manners. It
may be a case of closing the sta-
ble door after the horse has
bolted, but once I have ascer-
tained the facts, I will do what I
can to ensure that this appalling
state of events does not happen
again. The next Tyrexpo will
come around in 2012, and the
organisers have told me that
they will once again convene a
conference. Bully for them, and
I appeal to the industry to sup-
port this event the next time
round. The stakes are high, and
we cannot afford to pay the
price of hubris.
Our cover feature is the diametric opposite
of hubris. It is a case study of a corporation
that faced a devastating situation, mostly
not of their making. Circumstance had
combined with history, and had dealt a low
blow. This inspiring story, which is on page
16, could be called Restructuring 101, and
is instructive for anyone facing something
similar. Read it and learn.
T h e P h o e n i x
A P R I L 2 0 1 02
w w w. a b r b u z z . c o . z a
Conference CallDuring March 2010 the automotive industry had the opportunity to visit two or threeshows in the Gauteng area. First up was the Tyrexpo Africa 2010 show held at theSandton Convention Centre from March 4 to 6, and two weeks later there was theWATS show, held in conjunction with the Heavyweight Expo 2010, at the TshwaneEvents Centre, running from March 23 to March 26.
Publishing EditorGraham Erasmus083 709 8184
Editors at LargeAlwyn ViljoenPaul Collings
Intelli-Driving EditorEugene Herbert
CorrespondentsBeeton, FrankBorlz, Baron ClaudeBurford, AdrianGamble, AustinHogg, Gilbert
Horn, GerhardKeeg, HowardMcCleery, RogerTwine, TonyWilde, Fingal
Published by:Trilogy Publishing
Advertising Sales:Stanton Porter MarketingTel: 012 654 2745e-mail: [email protected]
Marlene Erasmus082 837 2668e-mail [email protected]
Editorial Office:81 Alma Road, WendywoodTel 27 11 656 2198Fax 27 11 802 3979e-mail: [email protected]: www.abrbuzz.co.za
Subscriptions and DataManagement:Trilogy Trading & PromotionP O Box 69Wendywood 2144Tel 27 11 802 6020Fax 27 11 802 3979e-mail: [email protected]
Design and Reproduction:j. Kraft Information Design ccTel: 012 997 6946 Fax: 012 997 6987e-mail: [email protected]
Printing:Business Print Centre, Pretoria
C o n t e n t s
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4343 7171
1818 6262
4
The publisher and contributors have done their best to ensure the accuracy of the articles and cannot accept responsibility for any loss or incon-venience sustained by any reader as a result of information or advice in Automotive Business Review. The information provided and opinionsexpressed in this publication are provided in good faith and do not necessaraly represent the opinion of the publisher. No article may be repro-duced in any form without the prior written permission from the publisher, except for the quotation of brief passages in reviews.
Official Mouthpiece of
2 The Phoenix
6 What’s the Buzz
12 AAMA Alert
14 Personal Profile
16 Cover Feature
20 Auto Topical
22 The Chery Story
24 Frankley Speaking
26 Industry Update
28 Tony’s Take
30 Life Goes on
31 Commercial Vehicle News
32 Weighty Issues
33 Spirit of Safety
34 Intelli-Driving
36 Tyre Safety
38 Burford on Brands
42 Customer C.A.R.E.
43 Wilde Things
48 Diamond Dialogues
50 AIDC Quiz
51 e-CAR
52 Top Class Topics
54 Show Time
60 Capricorn Insights
62 Partinform
66 Life Goes On
68 The Golden Triangle
70 Model Revamp
72 Vehicle Evaluation
74 Hyundai Update
76 Toyota Racing
77 Team Timken Thrust
78 Fast Wheels
79 Midas Sport
80 The Last Writes
W h a t ’ s t h e B u z z ?
A P R I L 2 0 1 06
KenKen 4 x 4How 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 1-4.
• Do not repeat a number in any row or column.
• The numbers in each heavily outlined set of squares, called cages, must combine (in any
order) to produce the target number in the top corner of the cage using the mathematical
operation indicated.
• Cages with just one box should be filled in with the target number in the top corner.
• A number can be repeated within a cage as long as it is not in the same row or
column. Answer on page 80
Giniel de Villiers honoured as Bridgestone/Guild ofMotoring Journalists Motor Sportsman of the Year
Giniel de Villiers, winner of the 2009 Dakar Rally in Argentinaand Chile in a factory Volkswagen Race Touareg, is the2009Bridgestone/Guild of Motoring Journalists Motor Sportsman ofthe Year. There were six other nominations for the prestigiousaward, which was first won in 1964 and has been sponsored byBridgestone for the past 17 years. They were Gavin Cronje;Hergen Fekken and Pierre Arries; Evan Hutchison; SheridanMorais; Ralph Pitchford; and Duncan Vos. Winner of the ColinWatling Award for special achievement in motor sport by some-one other than a competitor was Peter du Toit, owner of thepopular Zwartkops Raceway near Pretoria. Also nominated forthe Colin Watling Award were Glyn Hall and Jan Hartzer.
Road safety enhanced throughrevolutionary tyre pressure-monitoring deviceA revolutionary heavy vehicle accessory which monitors tyre pressures on trucks, trail-ers and buses is playing a significant role in improving safety on roads in South Africa.Marketed under the brand name P-Eye, the state-of-the-art device replaces the tyrevalve cap monitoring preset minimum tyre pressure – if the pressure drops more than5% below the required setting an LED lamp starts blinking. This makes it a relativelysimple task for commercial operators to establish tyre pressures on their fleet, as a visu-al check on any vehicle fitted with the device quickly reveals whether tyres are all cor-rectly inflated. The system is thus both safer and more cost efficient than manual checksas it is not necessary to check every single tyre, with action necessary only when theLED’s are blinking.
Preggie Govender & Phumlani Bayeni of Serco witha newly fitted p-eye tyre pressure monitor.
Giniel de Villiers and Peter du Toit with Danie van Jaarsveld, Chairman of the SAGMJ.
(motorpics)
(quickpic)
Gauteng dealershipsmake a clean sweep atRenault’s 2009 dealer
awardsRenault South Africa’s 2009 Club of DiamondsDealership of the Year award has gone to McCarthyRenault The Glen. East Rand Renault, Boksburg tooksecond place overall with Fountains Renault, Tswhanecompleting the Gauteng-based top trio. Bill Louw,Dealer Principal at Renault The Glen said it was an hon-our to once again take home Renault’s top award “whichwe last won in 2007.” Louw predicts good times ahead:“The motor industry has turned the corner and I believethat with the product line-up that Renault now has,their growth in 2010 will be way above that of the mar-ket.” He also praised Xavier Gobille, Managing Directorof Renault SA for his vision, dedication and delivery onall the promises made to the dealer network.
W h a t ’ s t h e B u z z ?
8 A P R I L 2 0 1 0
AIDC TO ASSISTRETRENCHEDWORKERS The AIDC is launching a project to assistretrenched workers in the automotive indus-try by creating a platform on which to show-case their skills and by creating a central jobbank. Barlow Manilal, AIDC CEO, says thatthe Gauteng Provincial Government isaddressing the fact that many retrenchedworkers would not necessarily all have therequired resources to enter a formal recruit-ment process such as a comprehensive CV,access to the internet or even perhaps moneyto call for an interview from a mobile phone."For this reason, we are developing a processto capture the details of retrenched workers in
the motor industry. Employers will then beable to upload the contact details and skillsprofile of retrenched employees, into anational automotive skills database," he says.The initiative is being funded by the GautengProvincial Government's Department ofEconomic Development. AIDC will set up ahelp desk to update records and keep jobseekers informed on the latest employmentopportunities in the automotive and relatedindustries. "The idea is to also link the rele-vant skills of job seekers to other sectors thatcould offer immediate employment while stilltracking the movement of automotive skillsthroughout the country," says Barlow. Theproject will kick-off in April 2010 with thedevelopment of the web portal and databaserunning concurrently with an initiative toupload retrenched workers contact details andskills profiles. Barlow Manilal – AIDC CEO
Hyundai revealed the all-new concept car i-flow (HED-7) at the Geneva Motor Show in March 2010. The i-flow, which advances the ‘fluidic sculp-ture’ form language of Hyundai, was joined on stage by other newcomers, including the facelifted i30 – to be launched as i30U – and a number ofnew, production-ready derivatives with CO2 emissions below 100g/km. A future D-segment contender from Hyundai, i-flow boasts sleek, elegantlines which not only create a bionic, futuristic shape, but also contribute to exceptional aerodynamics. The drag coefficient of 0.25Cd helps toreduce the car’s CO2 output to just 85g/km and fuel consumption to only 3l/100km. Hyundai’s first diesel-electric hybrid powertrain is a key fac-tor in delivering such an environmentally-conscious return. The exciting new U2 1,7-liter engine is augmented by two-stage turbocharging andHyundai’s Lithium Ion-Polymer battery, to give a very efficient and advanced combination, partnered with a six-speed, dual-clutch transmission.The glossy ‘Liquid Metal’ finish – developed by BASF Coatings – adds to the visual impact of i-flow’s exterior. Special-effect pigments in this eco-friendly waterborne coating give the surface a polished metal appearance, and highlight the sculptural character of the car.
Hyundai present eight world debuts at Geneva
TENNECO FORMS NEW JOINT VENTURE IN CHINA WITH FAW SIHUAN TO SUPPLYEMISSION CONTROL SYSTEMS FOR CARS AND TRUCKS
Tenneco Inc. has announced it has entered into a joint venture (JV) with Changchun FAW Sihuan Group Ltd., a subsidiary of FAW GroupCorporation, to supply emission control components and systems for passenger and commercial vehicles. The new JV will be based inChangchun. “We are very excited to be partnering with FAW, one of China’s leading manufacturers of light and commercial vehicles,” saidGregg Sherrill, chairman and CEO, Tenneco. “This new JV not only further expands our market-leading emissions control position in thegrowing China passenger vehicle market, but also gives us better access to China’s commercial vehicle segment, which is the largest in theworld.” The JV has three partners – Tenneco with a 41% equity share, FAW Sihuan with a 49% share and Tenneco Tongtai (Dalian) ExhaustSystem Company Ltd. with a 10% share. Tenneco will have management control due to its 80% equity share in Tenneco Tongtai. Initialcustomers will include FAW-Volkswagen and FAW Jiefeng.
W h a t ’ s t h e B u z z ?
A P R I L 2 0 1 010
ELECTRIC CARS ON THE MOVE ALONG THE A40An innovative group of research institutes and businesses were assigned in March 2010 to run the “E-mobility in commuter traffic” developmentproject for the Rhine-Ruhr Model Region. Together they will be examining the practical implications of “electric commuter traffic between Rhineand Ruhr”. The project partners are RWE Effizienz GmbH, Renault Deutschland AG, the automotive engineering research company,Forschungsgesellschaft Kraftfahrwesen mbH Aachen (fka), and the Institut für Hochspannungstechnik (High-Voltage Engineering Institute) ofRWTH Aachen University. Coordination is carried out centrally by the project control centre, EnergieAgentur.NRW. The vehicle fleet consists of 40Renault pre-production electric vehicles along with 110 converted electric cars that RWE is providing as lease vehicles. Renault is providing modelsof the Kangoo Express Z.E. utility vehicle and the Fluence Z.E. mid-range family sedan. The RWE lease vehicles, based on the Fiat 500 and baptisedKarabag 500 E, are equipped with the most up-to-date lithium-ion batteries. Models based on the Fiat Fiorino are also being used. With a range ofbetween 100 km and 140 km they are perfectly suited to urban driving.
McCARTHY NISSAN SCOOPS THELAURELS AT DEALER AWARDSMcCarthy Nissan was the dominant company at the recent Nissan SA Dealer of theYear awards function, taking no fewer than five trophies, including the overall Dealerof the Year, which went to McCarthy Nissan in Woodmead. McCarthy Nissan wasadjudged Dealer Group of the Year, while McCarthy Woodmead was named SalesDealer of the year - for selling the most Nissans in the country – as well as Dealer ofthe Year in the Mega category, overall Dealer of the Year and having the Sales manag-er of the Year. The End Street outlet, in the Johannesburg CBD had been a finalist inthe Large category of the annual contest. “There was no special action plan in ourMcCarthy Nissan dealerships aimed at collecting these laurels,” said the proud man-aging director of McCarthy NSN, Geoff Jooste, who is responsible for the Nissan,UD Trucks, Renault, Fiat and Alfa Romeo franchises in the McCarthy Group. Jooste,who joined McCarthy 38 years ago, says the awards were the fruit of his Nissan deal-ers sticking to basic business principles by ‘doing all the right things and doing thingsright.’ He also stressed the importance of remaining humble in these times of success,as an arrogant attitude can be a big negative going forward.
Volkswagen Golf VI 1.4 TSI 90 kW Comfortline is namedthe 2010 South African Car of the Year by the SA Guild of
Motoring Journalists
The South African Guild of Motoring Journalists(SAGMJ) announced the Volkswagen Golf VI 1.4TSI 90 kW Comfortline as South Africa’s 2010 Carof the Year (COTY) at a gala banquet at GallagherConvention Centre, Midrand, on Thursday, 18March. The awards function, hosted by competitionsponsor WesBank, was attended by the who’s who ofthe South African motoring industry. Theannouncement of the prestigious accolade comesafter a stringent process of voting and physical test-ing of eligible cars launched onto the SA marketfrom 1 November 2008 to 31 October 2009. An in-depth poll of the SAGMJ full members, followed bya second vote by the COTY jury, arrived at eightfinalists towards the end of last year. The COTYjury, made up of the top motoring journalists in thecountry, then put the finalists through two days oftesting in February and subjected them to a rigidscoring process.
The final audited scores showed the VolkswagenGolf VI 1.4 TSI 90 kW Comfortline as the eventu-al winner of what is widely considered to be themost prestigious accolade in the motor industry. TheSAGMJ, a professional body of qualified motoringwriters, has annually awarded the title of SA’s Car ofthe Year for 25 years. The Volkswagen Golf VI 1.4TSI 90 kW Comfortline beat off strong competitionfrom the Alfa Romeo MiTo 1.4 TBi, Audi Q5 2.0TFSI® quattro® S tronic, Chevrolet Cruze 1.8 LS,Hyundai i20 1.6 GLS, Suzuki Alto 1.0 GLS, ToyotaPrius 1.8 ECVT Advanced and Volvo XC60 3.0TGeartronic, which were the other finalists vying forhonours in the country’s premier motoring event.
Beware ofpotholes!The weather over recentmonths has caused potholesof all sizes on many roadsincluding motorways, somotorists need to take extracare when driving to avoiddamage to their own car.Tyres are especially at risk,because sharp edges and deeppotholes can damage thetread or the sidewalls. "Theholes in the road surfacemean that tyres and rims inparticular suffer" warns BjörnBolze, head of CustomerService for Tyres atContinental. "Moreover ifthe tyres have insufficientpressure, there is a risk thatthe tyre sidewall will besquashed and damaged. Inextreme cases this can lead totyre failure. Low speedreduces the risk." The rimsmay also be damaged in theprocess - and with expensivealloys, consequential costsmay be high. This is a goodreason for checking tyre pres-sure more often than usual inorder to protect the tyre andspot creeping pressure loss.Local councils will probablynot be able to carry out all theroad repairs straightaway - somotorists might need to getused to the idea of living withpotholes for quite a while.
(motorpics)
Over the past two decades, there has been a proliferation of counterfeit product enter-ing South Africa. From DVDs to watches to running shoes to Bafana Bafana jerseys through to automotive parts, there is literally nothing that the ethically chal-lenged counterfeiter will not turn his hand to. Morally, from the buyer’s perspective, there is no difference whether you buy a pirated copy of Avatar or a rip offof a branded engine gasket. It is simply wrong. From a safety, or life and limb perspec-tive, there is a massive difference. Not only is it wrong, it is dangerous, and more damn-ing, unconscionable.
A P R I L 2 0 1 012
Counterfeiting –An Industry Call for a Conscience
Acounterfeit Rolex watch may stop ticking a few days
after purchase. A Springbok rugby jersey may reduce
from XXL to M after the first wash. A snazzy pair of
Nike running shoes may lose its sole during the first
kilometre. All inconvenient and irritating, and an
instructive lesson in the concept of “goedkoop is duurkoop”, but
the only lasting damage will be your pride. And, unless that
incredibly shrinking jersey restricts your breathing, or you swal-
low the watch, there is no physical danger. With automotive parts,
however, it is another story altogether. After you have fitted that
cheap counterfeit brake pad, and you fail to bring your vehicle to
an emergency stop when that taxi runs the red robot, it is more
than your pride and your pocket that is in danger. Your life, and
more importantly, your family’s lives, are worth far more than the
saving of a hundred or so Rands. It goes further than that. In
today’s lawless environment, practically any automotive part may
be defined as a life and limb part. When your car comes to stop
on a lonely and unlit stretch of road at ten o’clock at night,
because that incredible bargain of a clutch plate decided it did not
like the torque it was being subjected to, it is no longer the threat
of an accident that you have to worry about. What should keep
you interested, and what will keep your life insurance assessor and
the executor of your will busy for more than a few months, is that
roaming bandit who thinks that your life is worth less than the
shiny new Blackberry that he craves. The Consumer Protection
Act will be coming into effect later this year, and this Act should
put a brake on the nefarious activities of the counterfeiters, but
the practice will continue.
Such is human nature. And many people think that laws are there
to be broken. However, there is a stronger impediment to coun-
terfeiting, which if practiced will have a far stronger impact than
any piece of legislation or threat of sanction. This is your con-
science. Sigmund Freud identified the Super Ego early in the
twentieth century as an inherent condition of that contradictory
species euphemistically known as Homo sapiens. He was of the
opinion that this is what stood us apart from the rest of the ani-
mal kingdom. And taking this line of thinking further, this is
what has kept the greater mass of humanity on the straight and
narrow since Adam and Eve partook of the fruit of knowledge.
Your Super Ego, or your conscience, is what AAMA is appealing
to when it tackles the scourge of counterfeiting in the automotive
aftermarket, and most particularly, AAMA is appealing to those
who deal in counterfeit product. The cash strapped motorist will
always be looking for bargains, and the emerging market has
many people who are struggling to make ends meet. Thus, the
emerging market which tends to be less informed, are more
inclined to look for cheap product. It is this fact that puts the
onus and critically, the duty of conscience, strongly on the shoul-
ders of the importers, wholesalers, retailers, and workshops and
end user fitters. They are the first and last line of defence for the
informal automotive aftermarket, and thus they bear a strong
responsibility of duty and morality. AAMA trusts that conscience
trumps profit, as businesses run on ethical lines ironically last
longer than those run on purely self-seeking lines. In this case,
conscience equals long term sustainability.
A L E R T
A P R I L 2 0 1 014
SUN MOODLEY
HOW BIG IS BIGFOOT EXPRESSFREIGHT?
“We have six branches around South Africaand a fleet of 135 trucks ranging from 1.5 – 28 tons. Our staff complement is 350at present. They are like a happy family tome. They are all target driven with the rightattitude. We look after 2500 clients a daybetween our branches; Durban, Johannes-burg, Bloemfontein, Cape Town, EastLondon and Port Elizabeth. We provide ajust in time service and our motto is ‘big tosmall we haul ‘em all’ .”
STAFF BEEN WITH YOU A LONGTIME?
There are two male staff members who havebeen with me 26 years, starting out as labour-ers and moving up the ranks. Both have beendrivers now for many years. There are manyother staff members who have been with mefor a great length of time.
HOW DID YOU GET STARTED?
As a youngster I always wanted to do some-thing in transport. My parents had a littlesupermarket in Durban so that is where Ilearnt my business acumen. In 1984 I pur-chased an American Fried Chicken outlet inDurban. Later that year my son was bornand I decided to take a break from retail andpurchased a small transport business of 3trucks transporting sorghum beer. There wasnever a dull moment.
I SUPPOSE YOU WERE UP AGAINSTLOTS OF COMPETITION?
Yes, most definitely. There were many othertransport companies so I had to take everyopportunity to grow. In 1989 I purchased anIzuzu 8 Tonner and from there BigfootExpress began. One of the opportunities I seized was the fact that many transporterswould not take the risk of travelling throughthe Trankei at that time in the late eighties, sowe provided an overnight service to EastLondon and Port Elizabeth, then onwards toCape Town. This allowed us to expand expo-nentially.
WHAT DOES IT TAKE TO MANAGESUCH A BIG FLEET ?
A hands-on attention-to-detail attitude,informed truck purchases, a fantastic FleetManager and a great staff compliment arewhat it takes to manage a fleet the size ofBigfoot Express Freight. From the labourersto the management staff, we all have a greatdeal of respect for one another and worktogether as a unified team. We dispose of ourtrucks every 2 to 3 years. To facilitate reliabil-ity and speed of delivery. At any time thereare 2 drivers in each truck so as to allow oneto rest while the other is at the wheel. We useVolvos for Long distance City to City deliv-eries and; Toyotas, Mercedes Benz and Isuzutrucks for Inter City deliveries. All our horsesuse Michelin Tyres.
YOU HAVE BEEN MOTOR RACINGFOR 9 YEARS NOW?
My son Preyen (25) started karting andreceived a great deal of guidance from GuyBotteril and father Dave Botteril. I decided togive it a try and started in the GP Gearboxclass. As members of the KZN Kart Club wealso participated in races such as thePinetown Street Race in 2004 to 2006.
AND THEN YOU MOVED UP TO THEBIG CIRCUITS?
Naturally. As a lover of Porsche I took part inPorsche Club events and time trials aroundthe country, and also belonged to the BMWClub. From there I went on to Shelby Can-Am Single Seater Sports Car Racing for2008 and 2009. This I enjoyed thoroughlywith a great bunch of guys and went on towin the Border 100 in East London in 2009.
BUT YOU HAD TO RACE PORSCHEAGAIN?
I was invited by a German Racing Team torace two 2009 Porsche GT3 Super Cup carswith sequential gearboxes, at Hockenheim inGermany in 2009. They were magic to driveand I fell in love with these machines.I decided to buy the pair and bring themback to SA. I also brought out one of theGerman professional racers in March for theGT Challenge in East London.
He finished 1st in the Class he raced.
WHAT DO YOU DRIVE ON THEROAD?
I own a Porsche Carrera for every day use,and a Porsche GT3 RS.
DID YOUR CHILDREN JOIN BIG-FOOT EXPRESS?
No, they have decided to make their ownsuccess in the world. My youngest daughterReshni (21) is studying fashion design, herolder sister Renisha (24) has an IMM degreeand is now studying to be a ProfessionalChef. My son Preyen (25) is a GraphicDesigner and owns his own photographicstudio.
HOW DOES YOUR WIFE FEELABOUT YOUR MOTOR RACING?
My wife of 28 years, Rina, is very supportiveof my racing and attends events with me.
YOU SPONSOR MOTOR SPORTASWELL?
Bigfoot Express Freight is a joint sponsor ofSuper Motard racing with Mr Price. We alsopartner sponsor a Go-Kart circuit in KZN aswell as the Annual Sports Car Run down tothe Wild Coast, organised by Tony Day, hasbecome a big event where we see 250 carstaking part. Bigfoot Express Freight has alsosponsored Shelby Can Am and Porsche Racemeetings around the country, The AnnualPorsche Parade and GT Challenge in 2010.
WHAT DRIVES YOU ?
Sheer determination and the will to succeed.To do the things that people say can’t bedone.
WHEN WILL YOU RETIRE?
Never. I love the transport business. I lovemotor racing. One needs to work hard, thinksmart, eat healthily and stay fit of body andmind. Work determinedly towards one’s goalsin order to live ones dream.
P e r s o n a l p r o f i l e by Roger McCleery
He is a sponsor of motor sport and motoring events. He is a racer of note on our national circuits, having raced
single seater Can-Ams and now a Porsche. In fact he has been a Porsche man all his life and once owned the fastest
road going Porsche in South Africa. We are talking about Sun Moodley (55) CEO and Owner of one of the fastest
moving national road freight companies in the country - Bigfoot Express Freight.
Q & A
C o v e r F e a t u r e
A P R I L 2 0 1 016
Federal-Mogul on the Move
Monday, October 1 2001 was a red letter day for the Federal-Mogul Corporationwhen it filed for voluntary protection under the Chapter 11 Bankruptcy Code of theUnited States. Chapter 11 permits a company, and even individuals, when under finan-cial threat, to reorganise under the bankruptcy laws of the United States. On thesame day Federal-Mogul also submitted a similar application in the United Kingdom.Whilst Federal-Mogul Aftermarket Southern Africa (Pty) Limited was amongst the over100 Federal-Mogul operations in 23 countries that were not involved in these appli-cations, it did take the subsequent public relations hit, which was not unexpected.
Based on the aforesaid, why would Automotive Business
Review describe this seemingly dark event as a red letter
day? Simply because, even though it did not appear so
at the time, it was a turning point in the history of this
venerable organisation, which had played such a significant role
for over a century in the automotive industry, and in addition, it
was a timely wake-up call for this automotive icon. Chapter 11
was the cue to restructure, to stick to the knitting, and to face
impending threats with innovation, fortitude and resolve.
Ironically, Federal-Moguls’ troubles were not of their own mak-
ing. The problem that faced them arose out of the injudicious
acquisition in early 1998 of British automotive parts manufactur-
er T&N plc (formerly Turner & Newell, a
building materials manufacturer), and an
underestimation at the time of T&N’s
asbestos related exposure to litigation, arising
from T&N’s brake component operations
and its previous building materials activities.
The problem was growing, with Federal-
Mogul paying out US$89 million in asbestos
claims in 1998, US$178 million in 1999,
and US$351 million in 2000, and escalating
in 2001. In addition, it was facing more than
365 000 unprocessed claims in the United
States alone, and maybe double more still to
be filed. Facing the financial crippling of its
operations, Chapter 11 was effectively the
only option for Federal-Mogul, to separate
the asbestos liabilities from the operating
reports, and to allow Federal-Mogul to con-
centrate on its core activities.
Those dark days are now behind them, with Federal-Mogul
Corporation coming out of Chapter 11 at the end of 2007 with
their reputation not only intact, but enhanced. Two noteworthy
things happened during this six year period. Firstly, the words of
then CEO Frank Macher turned out to be 100% true. Macher
said on that momentous day in October 2001, "Moving forward,
Federal-Mogul will continue to serve its existing customers, fulfil
current contracts and secure new business. I have been in close
contact with many of our major customers and suppliers, who
have indicated that they will support Federal-Mogul during the
restructuring process.”
C o v e r F e a t u r e
17A P R I L 2 0 1 0
The veracity of this statement was confirmed to ABR by Martin Hendricks, Vice President EMEA, Global Aftermarket, Federal-Mogul
Aftermarket Products & Services EMEA, during his recent operational visit to South Africa. Hendricks said that not only did Federal-
Mogul not lose any customers, it gained business from 2001 to 2007, and that it emerged in such a lean and mean condition, that the
first half of 2008 produced the best two quarters in the history of the corporation. The second noteworthy aspect was the trimmed
down, well oiled and healthy functioning condition of Federal-Mogul, and its ability to look forward and plan accordingly. Most
companies were caught napping by the global recession, but not Federal-Mogul. Despite a stellar performance in the first half of 2008,
they kept their feet on the ground, and they saw the storm coming. They restructured during the third quarter of 2008, reducing their
headcount from 50 000 to the current 39 000, and they managed the crisis exceptionally well. 2009 was indeed a rocky year, but
Federal-Mogul saw its financial performance improve in quarters two, three and four, to such an extent that Federal-Mogul emerged
from one of the automotive industry’s toughest years financially robust and cash positive and ready to use that cash for internal growth
or acquisitions in 2010.
Federal-Mogul is also no slouch in
the safety and quality stakes. It has
worked assiduously in reducing
injuries and improving quality,
with annual injuries per 200 000
hours worked coming down from
2,0 in 2005 to 0,9 in 2009, and
parts defects reducing from 29
parts per million in 2005 to 8 in
2009. Thus it is no surprise to
learn that Federal-Mogul now pro-
vides parts globally for over 700
engine platforms, and is in a lead-
ing position as an OE supplier in
engine products, sealing products,
friction products and wiper blades,
and is a reliable and valued tech-
nology partner to the OEMs.
From a South African perspective, Martin Hendricks sees South Africa as a core country for the Group, and he confirmed to ABR that
Federal-Mogul has a clear commitment to be in this country. He says that he is impressed with the size and professionalism of South
Africa’s distributors and their attitude and approach to the premium brands that are in the Federal-Mogul stable. He added that Federal-
Mogul Southern Africa is keen to grow business in this key market, and their marketing and product strategies are inexorably linked to
their customers’ strengths in automotive parts distribution.
C o v e r F e a t u r e
A P R I L 2 0 1 018
Martin Hendricks, Vice President EMEA, Global Aftermarket, Federal-Mogul Aftermarket Products & Services EMEA, outside Federal-Mogul’s offices in City West, Johannesburg, during his visit to South Africa, flanked by two of Federal-Moguls Aftermarket Southern
Africa’s executives; Chris Hillier, Sales & Marketing Director for Africa; and Malcolm Perrie, Managing Director.
A u t o T o p i c a l
A P R I L 2 0 1 0
The analytical exercise involve taking three different
motorcars, a Toyota Yaris 1.0 5 door Sedan, (with a pre-
VAT list price of R121 140), a BMW 120i (R250 000)
and a BMW 530i (R504 824). Reference to the carbon
dioxide emission tables on the www.naamsa.co.za website allows
for calculations of the emissions tax of R525 for the Yaris, R4650
for the BMW 120i and R7800 for the BMW 530i. To the sum of
the list price and the emissions tax must be added the initial VAT
at the time of the purchase of the vehicle.
A vehicle life of 12 years is assumed, with a sale back to the motor
trade to a new owner at the beginning of year 5, and with that
owner selling it privately to a third owner at the beginning of year
9. Further VAT is encountered at each of these two transactions.
An annual distance of 25 000km is assumed for each of the first
four years, reducing to 20 000 for each of the next four years, and
reducing further to 16 000km for each of the final four years con-
sidered. Car magazine consumption rates were applied yielding
annual fuel consumption levels for each of the 12 years. Fuel
levies, excluding the 4cpl excise duty which is estimated separate-
ly, are set at R2.4265/litre, derived from central energy fund data.
This includes premium payments to the road accident fund sys-
tem. Maintenance rates per kilometre were obtained from the AA
website tables, as were replacement tyre rates. Multiplying
through by the annual kilometres assumed provides a Rand spend
on maintenance and tyres, from which the VAT exposure and the
new tyre tax can be imputed.
License fees, a rather small contributor to the fiscal pot, are calcu-
lated, and the types of indirect taxes aggregated into subtotals for
VAT, petrol levies and the sum of excise duty and licensing costs.
These are divided by the pre-tax list price of the vehicle, which
produces the data in the left hand half of the accompanying dia-
gram.
Attention then falls on the direct, or personal income tax exposure
of the vehicles if it is assumed that they are each used for a given
mix of business and private kilometres in any given year (split
identically for each of the vehicle types). This income tax expo-
sure is also divided by the pre-tax list price to produce the right
hand side of the accompanying graphic.
In total the Yaris can be seen to contribute a total fiscal revenue
equivalent to 132% of its original pre-tax list price, while the
BMW 120i contributes 118% of its price, and the BMW 530i
contributes 108% of its price.
At first glance the larger proportional contribution of fuel tax rev-
enue by the Yaris compared to the bigger engine BMW’s appears
counter-intuitive. But, with the same annual kilometres assumed
for all three, it must be remembered that the vehicle price doubles
between the Yaris and the BMW 120i and doubles again to reach
the BMW 530i, while the fuel consumption per kilometre rises by
less than 50% between the smallest and the middle vehicle, and by
only a further 10% for the biggest vehicle. The ratio of fuel tax to
list price mathematically has to fall in these circumstances.
by Tony Twine
Déjà Moo and theFiscal Cash Cow
Déjà Moo is defined as the strange feeling that you get when you feel that you haveheard all this bull before. Mention of the fiscal cash cow in last month’s article aboutthe impending emissions tax to be levied on passenger cars, together with revisions totravel allowance taxation, the 25.5 cents/litre increase in the levies on petrol and dieselfrom 7th April onwards, and the likelihood of a 6% tax on tyres at an as yet unknowndate in the future, led us to wonder what the yield from the good old fiscal cash cow,the motor car, looks like after five years since we last visited the milking shed.
20
This transport company is
called The Big 5 Cab SA and
there is a very good reason
for this. New York is proba-
bly best known for its yellow
cabbies and people in London get around
in their famous black taxis. Africa is most
famous for its wildlife and more specifical-
ly the Big Five. “That is why we chose to
name the company after them,” says Fred
Zulu, Marketing Director of the
Johannesburg operations. “When people
arrive in South Africa asking for the Big
Five, you can ask whether they mean the
animals or the taxis? That is the kind of
recognition we want to achieve with the
name,” said Zulu.
Big 5 Cab SA has a unique price structure
with their 70% and 30% pricing, a most
affordable pricing concept. To understand
the structure take a look at their website
www.thebig5cabsa.co.za. Big 5 are also
special for another reason. They only make
use of Chery products and the model they
have chosen is the extremely comfortable
J5. According to their website, they chose
this vehicle for its quiet luxury and stan-
dard specification list. The J5 comes stan-
dard with a large, elegant interior, ample
space and a large range of features dedicat-
ed to security and comfort. Zulu mentions
that when they initially started the compa-
ny, they went on a search for a vehicle to
suit the needs of the company and the cus-
tomers. They looked at the price of all the
competitors and nobody even came close
to the value they got from Chery.
“We could not find this kindof space from any of the othervehicles we were considering.”
Safety was always going to be a big selling
point to Big 5 and in this respect the J5 did
not disappoint. It comes standard with a
Delphi ABS system, airbags and a reverse
warning system. Chery also tested their J5
to the brink of destruction and it passed all
of the regular crash tests with flying
colours. Even though the standard vehicle
is already one of the safest around, Big 5
took it even further. They fitted a full satel-
lite vehicle tracker and a two way radio to
communicate with the driver. Each J5 also
has a panic button if the worst should hap-
pen to customers.
The safety and comfort of the fare paying
customer is paramount for Big 5, so each
and every driver is trained exceptionally
well to suit the needs of customers.
Big 5 pay particular attention to customer
feedback so they can constantly improve
on their vehicles. They are a bit like Chery
in that way. They also listened to feedback
while designing their fantastic new J1.
South Africans can applaud the arrival of
this company. We finally have a taxi serv-
ice that can get you where you need to go
without the stress usually associated with
public transport. The fact that you can get
there in the quiet understated elegance of
the J5 is a bonus. What a wonderful com-
bination; South African ingenuity com-
bined with Chinese motoring excellence.
22
Big 5 is the Chery on topSouth Africa’s newest andmost professional taxiservice has taken to theroad and they are ready topick up anybody who wantsto move to a different loca-tion. Just in time for theeagerly awaited event ofthe decade, the 2010 FIFAWorld Cup. No tourist, orlocal for that matter, willbe left stranded at theside of the road as long asthey are in the vicinity.
A series of articles on the rise of the Chery automobile
A P R I L 2 0 1 0
A few issues back, I described 2009 as a watershed year for the glob-
al motor industry. Looking back, I have no reason to change my assess-
ment. In fact, the “interesting” period has been extended into the open-
ing months of 2010 by Toyota’s recall crisis, the on-again, off-again General Motors
sale of Saab (finally sold to Dutch sports car manufacturer Spyker), and what
appears to be the end of the road for Hummer. In the midst of all this, however, life
has gone on, and it has been quite enervating to see how much new model activity has
emerged at recent motor shows. In saying this, we should remember that new prod-
uct introductions are not five-minute affairs, and if someone pressed the corporate
button to start a new model launch back in 2008, it would take more than a global
recession to stop it coming to market in 2010. Assuming that its manufacturer is still
in business, of course!
A P R I L 2 0 1 024
So far this year, we have had motor shows in New
Delhi, Detroit and Geneva. Some of the new prod-
ucts on show will play pivotal roles in securing the
futures of their manufacturers. In some cases, sheer
survival is the issue, while in others, a return to cor-
porate profitability will hinge on the ability to wring
every available sale out of recovering global markets. Questions
are also sure to be asked about the level of electronic and techni-
cal wizardry being offered on the new models, and it will be inter-
esting to see if the present spate of recalls (and these have not been
limited to Toyota) have bred a new generation of more conserva-
tive buyers seeking out no-frills product. The following list of
launch events is not exhaustive, but illustrates the recent level of
activity.
In spite of its recent setbacks, the Toyota family has proceeded
with new model introductions. Much media interest has been
directed towards the entry-level Lexus CT 200h compact hybrid
hatchback launched in Geneva, which is aimed at lowering the
average age profile of buyers choosing Toyota’s luxury brand.
Geneva also saw a mildly refreshed version of the long-running
Toyota RAV4 sports utility, while the Etios “concept” on show in
New Delhi looked remarkably like a ready-for-production new
Toyota small car for markets in India, Russia and Latin America.
Volkswagen’s quest for global market leadership has translated
into the introduction of several important models in 2010. The
recently-launched new generation Polo picked up a GTI perform-
ance derivative at Geneva, while the second generation Touareg
large SUV also made its debut in Switzerland. Plans for expand-
ing VW’s North American influence manifested at the Detroit
Show as a sleek hybrid coupe concept, which observers believe
may develop into a Jetta-badged production model. Other “fami-
ly” products to emerge include Audi’s RS 5 mid-size coupe, and
the much-anticipated Audi A1 “premium compact”, both of
which appeared in Geneva. Observers paid considerable attention
to the Suzuki R3 multi-purpose concept on show in India, where
Maruti Suzuki’s market dominance is expected to benefit the aspi-
Show and TellF r a n k l y S p e a k i n g
by Frank Beeton
rations of its new corporate ally, Volkswagen. Fiat finds itself
increasingly in the spotlight these days, as it holds the ultimate
responsibility for Chrysler’s revival. Part of this challenge will be
to educate US buyers to the virtues of smaller cars, and the reveal
of its Twin-Air two-cylinder petrol engine technology in Geneva
reinforces the group’s commitment to sub-1 litre engine dis-
placements for models such as the 500, Panda and Punto.
Evidence of Chrysler’s growing level of integration with the Fiat
family emerged in Detroit, in the form of a Chrysler-badged
Lancia Delta. Meanwhile, Chrysler’s erstwhile corporate partner
Daimler set tongues wagging in Europe with its Mercedes-Benz
F 800 Style concept, combining a new styling direction and
multiple driver aids with a multi-drive platform suitable for elec-
tric traction enabled by fuel cells, or plug-in hybrid technology.
The Hyundai/Kia empire weighed in with an all-new Kia
Sportage SUV, using a common platform with Hyundai’s latest
Tucson. Another Geneva debutant was Mitsubishi’s 5-seater
ASX compact crossover, the European equivalent to the Japanese
market’s RVR. At the same show, Nissan’s new entry-level SUV,
the Juke, came out of its Box (!), and the company also launched
its fourth-generation Micra city car, which is to be manufactured
in Thailand, India, Mexico and China.
Early 2010 market results indicate that Ford is re-emerging as an
American favourite, but the company is still proceeding with
plans to sell off Volvo, most probably to Geely, and scale down
its long-standing technical co-operation with Mazda. Volvo’s all-
new S60 “sedan with a coupe feel” launched at Geneva, there-
fore, will be important for the manufacturer’s future. Mazda has
also been busy with the roll-out of an all-new Mazda5 MPV, and
an updated Mazda6. Arch-rival General Motors promoted the
Opel Insignia-based Buick Regal stateside, while, in Europe,
Opel launched its second-generation Meriva MPV with
rear-hinged back doors.
A P R I L 2 0 1 0
I n d u s t r y U p d a t e
A P R I L 2 0 1 026
KPMG’s Global Automotive Surveyshows bright futureIn recent times the headlines of global and local newspapers have shown us that theautomotive industry has shown some recovery. This is good news for everybody con-cerned; the manufacturers, aftermarket manufacturers and naturally the consumer.
The KPMG survey is done annually. They are a global net-work of professional firms providing audit, tax and advi-sory services. Global automotive executives were askedquestions on four basic fronts and the KPMG looked atthe answers they gave. The different segments of the sur-
vey were; growth prospect, performance angle, product innovationsand consumer change and investments in new markets. This exercisedelivered some shocking statistics and opinions on the automotivesegment. Firstly global automotive executives see a stabilised industryfor 2010. While growth figures may not see an immense improve-ment on last year, it does show signs of recovery. According to GavinMaile, KPMG’s industry leader in Africa, we can only expect to seethe same figures we had in 2006, at the 2016 mark. Furthermore, theexecutives look forward to new investments in technology and growthover the next five years. Mergers and acquisitions are also claimed tobe something to look forward too, but there are still some concernsover profitability. The main concern of the executives seems to be theovercapacity in certain countries. Countries like the USA, WesternEurope and Japan should take a look at their demand and supply fig-ures, because they are claimed to be a serious issue. South Africanautomotive manufacturers initially thought that we would beimmune to the recession. Unfortunately this proved not to be the caseand we suffered even more than expected. The survey showed thatthe only country that had a worse dip in sales figures was Russia. Onthe consumer front the news was less shocking. In line with consumer
expectations the importance of hybrid fuel systems was rated atalmost 85%. The main concern of the consumer is still fuel efficien-cy and this will play a big part in purchases in the next five years.
In conclusion there are many challenges facing the consumer andthe automotive industry. The consumer still has problems withconfidence that could only be improved by improvements in sus-tainable employment and disposable income. Unfortunately thisis not a black and white situation. The affordability of vehicles isdetermined by various factors including inflationary pressures,rand depreciation and interest rates. Furthermore, the availabilityof credit needs to be improved before the consumer has the gutsto spend money again. The automotive industry has enoughtougher challenges to overcome. Firstly the global and local econ-omy needs to grow and heal before anything can be done.Naturally this goes hand in hand with favourable exchange ratesthat have a massive influence on business. They also need the sup-port of Government to build the necessary infrastructures likerail, road, ports and electricity supplies. As we know this is a hugeproblem in South Africa. Unfortunately legislation like the emis-sion tax will also play a big part in the recovery period of the econ-omy. We can only hope that things will eventually lead back to thewonderful year that was 2006. The KPMG seems to think thatthis will be the case. It will take a long time, but eventually themarket will heal and the situation will look a lot less dire.
By Gerhard Horn
Transunion gives good newsAs we know, the worst of the recession is finally over. The recent Transunion TrendForum finally revealed this fact to the media at their annual event. Transunion AutoInformation Solutions are a risk intelligence company that focuses their combinedforces on the automotive industry.
Over the past 18 months, various dealerships had to endureexcruciating hardships. Many dealerships had to closetheir doors, but the time for recovery is now. Leading theway to recovery will be the used car market, said to take
off in 2010. Delivering the good news was Mike von Höne, CEO ofTransunion. According to Von Höne, the “improved sales volumes incoming months would enable the battered dealership market torestore profitable growth and rebuild their balance sheets, providingdealers managed the anticipated uptick without incurring additionaloverheads.”
This information can be taken in good faith since Von Höne useddata on car markets drawn from Transunion’s database of informationon almost 12 million vehicles. The database also consists of data from53 financial providers and 35 000 dealerships networks. The databaseis also updated on a monthly basis to ensure that information is as upto date as possible. Thus, all information by Transunion can be takenin very good faith. The information released by Transunion was sup-ported by data released by NAAMSA in the last few months. The firsttwo months of 2010 saw vehicles sales rise by 18% when measured
against the 2009 figures. This figure is representative of both the newand used market. “Transunion’s expectation is that this trend willcontinue based on the fact that although consumers are remainingcautious, the benefits of stabilised affordability are starting to be felt.”Consumers who endured the worst of the crisis will soon start to takeadvantage of lower interest rates. Customers have also paid off theirexisting debt during the crisis and this means that they will not startto grow at ease with spending again. Since people will initially becareful about spending money, they will rather buy a second-handvehicle instead of a brand new one. This market is where the con-sumer will most likely find the best deals. During the recession theprices of new vehicles went up while the price of second-hand vehi-cles went down. This means that there is a “value gap” between thetwo. Understandably this made the second-hand vehicle the one tohave.
Unfortunately there is a shortage of good quality; low mileage usedvehicles at the moment. According to Van Höne, the price differencebetween new and used vehicles would once again improve if therewere to be an influx of high quality used cars.
By Gerhard Horn
The fact that the South African Government was about to enter a period ofdeficit financing was known as far back as October 2008, when the fiscalyear forecasts for the next three years were presented. In their early days,these projections looked very mild compared to the deficits being anticipat-ed in many developed economies around the world, but by the time of theBudget of February 2009, followed by the Medium Term Budget PolicyStatement of October that year, and then confirmed by the Budget of
February 2010, the depth of the Government Debt problem has crystallised. We can lookat times gone by to try to anticipate what this may do to money market interest rates, par-ticularly to key lending rates for motor vehicle finance, such as the prime overdraft rate.
T o n y ’ s T a k e
A P R I L 2 0 1 028
by Tony Twine,Senior Economist,Director –Econometrix (Pty)Ltd
The disconnection between gov-
ernment borrowing money to
finance its expenditures and car
buyers doing the same thing
appears to come from the nomenclature
used in money and capital markets.
Accountants, marketers, economists,
investors and savers tend to use the same
words to describe different things. High
street banks run “investment account”
products which, according to economic
theory, would better be called “savings
accounts”. A government which borrows
money to build a road is said to be making
a capital investment, as is the company
buying a truck to move goods along the
road. But if government needs to borrow
money to pay the salary of the traffic cop
alongside the road, or the transporter has
to use bank credit to pay for the fuel in the
truck, the expenditure is not considered to
be capital in nature, but both the expendi-
tures on the capital equipment (roads and
trucks) and consumables (salaries and
petrol) are being borrowed from sources
which ultimately narrow down to other
peoples savings, or financial institution’s
capacity to create money out of thin air
through the money or credit multiplier.
At the end of the day, government is just
another sector of the economy, alongside
the business and household sectors. If
either of the latter two sectors get into a
position where they require to borrow to
finance their expenditures, nobody raises
an eyebrow when the resulting financial
environment sees interest rates rising. The
demand for credit has gone up, so the price
of credit reacts by increasing. The applica-
tion of the credit is immaterial, whether it
be for the purchase of productive assets, or
for further rounds of big parties.
“Our public debt is expected to rise from
23 per cent of GDP in 2008/9 to about 40
per cent in 2013, and will only stabilise in
2015,” said Finance Minister Pravin
Gordhan at the presentation of the
National Budget on 17 February 2010.
The accompanying graph shows that the
last time that the government debt to
GDP ratio was at levels higher than 40%
was back in the first three quarters of
2002, after which it declined to a level of
just more than half of that ratio, touching
22.1% in the second quarter of 2008, and
still hold 22.8% by the first quarter of
2009.
The graph also shows the broadly positive
and strong correlation between the ratio of
government debt to GDP and the prime
overdraft rate, a key lending rate in credit
markets. While the two are certainly not
perfectly correlated, there can be little
doubt that, under post apartheid financial
market circumstances, the government
debt ratio and money market lending rates
tend to move in positive harmony with
each other. The only sensible conclusion
appears to be that a greater appetite for
debt by the government
implies a renewal of the
crowding out of private sec-
tor borrowing through
higher prices of credit,
which is, by definition, the
interest rate.
Less private credit creation,
must mean less, not more,
private car sales that would
otherwise be possible.
Perhaps not less sales than
today, because the entire
economy is growing, but
less than might otherwise
have been possible.
Government Debt Prospectsand Interest Rates
L i f e G o e s O n
A P R I L 2 0 1 030
MBSA releases 2009financial figures As we already know, 2009 was a tough year for the automotive industry. Not a sin-gle manufacturer was spared during the recession and sales plummeted by almost50% from 2006. This figure is astonishing, but at least the industry is showing signsof recovery.
Mercedes-Benz made their figures
for 2009 public at a recent
event. While these figures are
indeed shocking, they do show some good
things to expect in 2010. At the moment,
MBSA claim to lead the market rebound.
In 2009 only 224 705 passenger vehicles
were sold in South Africa. MBSA expects
that 240 000 vehicles will find new homes
in 2010. It is very much the same news on
the commercial vehicle front. Only 18
000 vehicles were sold in 2009 and they
are expecting sales of 20 000 in 2010.
These figures are not a massive improve-
ment, but they do show signs that the
recession is finally lifting. During these
tough times MBSA has actually improved
their market share by 0.8%. They stood at
7.8% in 2008 and ended 2009 with an
8.6% market share. The entire revenue
made by the South African affiliate in
2009 stands at R28 billion. “While we
anticipated a decrease in the group’s annu-
al consolidated turnover, we are extremely
pleased at having gained market share in
our business, said Dr. Hansgeorg Niefer,
CEO of MBSA.” Mercedes-Benz South
Africa gained nearly a percentage point in
the premium car sector, while it increased
its commercial vehicle market dominance
by a further 1.8% to lead by an overall
market share of 25.7% in the over 3.5
tonne segments. This amount of revenue
was well spent on the South African econ-
omy, with R650 million going to the tax-
man. Money was also spent on the har-
bour facilities, training of employees and
of course employee wages. To show their
commitment to corporate social invest-
ment, another R23 000 000 was spent.
The company’s financial services also had
a good year, even through the tough
times. Mercedes’ Financial Services pro-
gram financed one of every three passen-
ger vehicles sold by them. They further-
more financed 40% of the commercial
vehicles sales in 2009. Like the rest of the
world their non-performance loans
increased to 4.35%, but they hope to
decrease this figure in the new financial
year. MBSA have also started to play the
insurance game and 2009 saw the success-
ful implementation of the new
ExecuProtect and Valueprotect programs.
Dr. Niefer does not expect great things,
but was instead realistically optimistic
about 2010. “While it’s clear we can’t
expect to improve to our previous peak
within a year, as it took us many years to
reach the highs of 2006 and 2007, we
could possibly be right up there again in
two to three years’ time,” said Niefer. He
has instead chosen to focus on customer
service and sales. With the competition
being so tough between the various man-
ufacturers, they each have to do some-
thing to grab the attention of potential
customers. They also have exciting prod-
ucts in the pipeline which should further
place the company in a favourable posi-
tion. “So we are quite optimistic for
2010. But again, it’s hard work to con-
vince current customers to buy another
vehicle from our stable, as well as lure new
customers currently driving competitors’
products. Painful as it may be at times,
MBSA thoroughly enjoys the fierce com-
petition in SA’s vehicle market; it keeps us
on our toes.”
– by Gerhard Horn
Dr. Hans Georg Niefer
(quivckpic)
C o m m e r c i a l V e h i c l e N e w s
31
Mercedes drivingBafana BafanaMercedes-Benz recently handed over its biggest present of its three year spon-
sorship of Bafana Bafana. Not only did SAFA (South African Football
Association) announce the team, but afterwards they were treated to a brand new
Multego luxury coach from Mercedes. MBSA really are driving the team.
This event was attended by Mr. Kirsten Nematandani,
the president of SAFA and Mr. Leslie Sedibe, CEO of
SAFA. They were joined by the charismatic CEO of
MBSA, Dr. Hansgeorg Niefer. These three men were
honoured to be the first to take their pictures with the bus, to
show support for the national road show that started shortly after-
wards. The bus was branded in such a way that South Africans
could recognise their favourite team as they pass by. This, howev-
er, will change in the near future. The bus will depart soon on a
tour across South Africa so that it may inspire the public to sup-
port the national team. Supporters will have the opportunity to
have their photos taken. These accumulated photos will be made
into a branding image that will be printed on the bus. This means
that every soccer fan has a chance to be part of the Bafana team
once the bus has been handed over on the 1st of May.
“We at SAFA are proud to continue our mutually beneficial rela-
tionship with MBSA. With the support of committed partners
like Mercedes-Benz, we know the national team is being given a
fantastic platform to perform at their best during the FIFA World
Cup™”, said Mr. Nematandani. The Multego is one of the safest
buses on the road, so the team should arrive in one piece every
time. The fans can also look forward to a personalized horn to
announce the arrival of the team.
The interior has been specially made to suit the needs of the team.
It has 40 individual seats covered in high quality cream leather. It
also has a U-shaped couch in the rear, along with a conference
table to comfortably hold important strategy meetings. Further
comfort features include individual lap-belts, DVD entertain-
ment sections, air-conditioning and a host of fridges to keep the
victory champagne cold.
Dr. Niefer ended of by saying that they are 100% confident in
South Africa hosting the world cup. “I am confident we will pro-
duce the best FIFA soccer event ever. Mercedes-Benz will support
South Africa all the way to the kick-off and beyond.” With sup-
port like that, how can we possibly fail?
A P R I L 2 0 1 0
(quickpic)
The announcement, towards the end of February, that the Departmentof Trade and Industry would reveal a development action plan for the
medium and heavy commercial vehicle sector early in 2011, as a component of its clev-erly-named IPAP2 umbrella national programme, elicited some positive reaction. Thesevehicle classes were last regulated by the Local Content Programme that was axedin 1994, and have had little influence from the current Motor Industry DevelopmentProgramme that runs until 2013. They have also been excluded from the AutomotiveProduction and Development Programme, scheduled to take over from the MIDP, but it is completely appropriate that they should be subject to their own unique programme, given the fundamental differences in the way that light passenger andheavier commercial vehicles are put to use.
w e i g h t y i s s u e s
A P R I L 2 0 1 0
At the initial unveiling, no details
of the MHCV plan were
announced, with a period of
studies and, presumably, consul-
tation lying ahead before the action and
business plan components are submitted
for approval in the first quarter of 2011.
The success of this plan will depend heav-
ily on the formulation of logical, practical
and workable proposals that must proper-
ly take into account South Africa’s
extremely limited presence and leverage in
the global commercial vehicle industry,
and avoid any temptation to “re-invent the
wheel”. The main purpose of this article is
to suggest some broad directions that the
plan might follow in order to maximize the
benefit to the local economy.
The best plan would be one that results in
the employment a substantial number of
people, and does not require excessive up-
front investment. Our history is littered
with flawed initiatives that set objectives
too ambitious for a domestic market that
accounts for only around half-a-percent of
global sales, and, hopefully, the lessons
learned from the era when the compulsory
fitment of locally-manufactured Atlantis
Diesel Engines and ASTAS transmissions
gave South Africa the world’s most expen-
sive trucks will be recognized by the indus-
try and government representatives tasked
to thrash out the details of this pro-
gramme. The most appropriate modus
operandi would retain the cost advantages
of importing the more complicated bits
from the most appropriate global sources,
while encouraging the added-value activi-
ties that adapt these vehicles for local oper-
ation, to the productivity and profitability
benefits of their South African buyers.
This is really where the MHCV and APDP
programmes should diverge. Whereas the
average passenger car leaves the showroom
floor with most of the features desired by
the private motorist, commercial vehicle
applications can vary enormously from
operator to operator, and this level of
diversity is reflected in the equipment fit-
ted to individual vehicles. While the
APDP will encourage large-scale manufac-
ture of essentially identical products, the
MHCV plan should seek to create a high-
ly flexible regime that can work efficiently
with relatively small volumes of dissimilar
vehicles. Assembly of heavier trucks and
buses having their own self-supporting
ladderframe chassis is very much a
“Meccano kit” type of operation requiring
basic tools and very little in the way of
complicated equipment or fixtures.
Preparing these units for the marketplace
can also be a fairly straightforward exercise,
with bodies being assembled on the chas-
sis, and loading equipment being fitted
directly to the chassis. The flexibility to
meet diverse job descriptions can be pro-
vided by a wide variety of chassis specifica-
tions, including wheelbases.
The elements of a successful MHCV pro-
gramme could include some, or all, of the
following elements:
• Assembly of chassis/cab and bus chas-
sis units from imported SKD or CKD
kits.
• Local erection of imported KD inte-
gral vans and buses.
• Modification of standard imported
units to meet local dimensional and
specification preferences.
• Fabrication and fitment of bodywork
(trucks, vans, buses, coaches, truck
mixers, refuse compactors, tankers,
bulk carriers).
• Manufacture/assembly and fitment of
load handling equipment (e.g.
hydraulic platforms, tailgate lifts,
cranes, skips, roll-on units).
• Fitment and installation on locally-
assembled chassis of more complex
equipment imported from overseas
(e.g. fire fighting, specialized refuse
handling, drilling etc.)
• Finishing and decoration of complete
units with special colours, decals,
logos, etc.
• Vehicle movements from assembly
plants to equipment suppliers and
finally to the end user.
There is scope to provide these services
either as a “value-add” activity in assembly
plants, or by aftermarket service providers.
Basic body fabrication requires little more
than a large lean-to and some steel bend-
ing, cutting and welding equipment, and
can be readily executed by relatively small
SMME-type operations. However, readers
with longer memories will recall the sub-
stantial businesses that were built up by
the likes of Welfit Oddy and the Poole
family in the days when the public sector
purchased thousands of dropside, tipper
and tanker vehicles every year. Bus body
manufacture, pioneered by the likes of
Busaf in the post WWII years, was also
extremely prolific in South Africa prior to
the eruption of minibus taxis in the nine-
teen-eighties. An effective MHCV pro-
gramme should aim to re-establish some of
these activities through an appropriate
incentivisation environment.
by Frank Beeton
32
A Good Idea
S p i r i t o f S a f e t y
33
Safe Driving Tips for
the Easter Holidays Work hard to anticipatetrouble• Keep at least a three-second safety
cushion between you and the car in
front of you.
• Plan your trip before you start out so
you can concentrate on driving, not
navigating.
• Avoid driving in heavily-travelled or
high-speed areas during rush hour and
bad weather. If possible, change your
route to avoid making difficult left
turns.
• If you are planning to take an unfa-
miliar route at night, try making a
trial run during daylight
• Always be alert for the unexpected.
Focus on your driving soyou have plenty of time tomake decisions• Drive with a large "anticipation zone."
Look down the road far enough to get
a big picture of what's ahead.
• Turn off your radio or keep it at a very
low volume
• Don't drive when you are under stress.
• Ask passengers to help you navigate.
Don't talk with them too much.
• Don't daydream – driving on auto-
pilot.
Make sure you can seeclearly• Get annual eye checkups.
• Clean the inside and outside of your
windscreen and windows. Clean the
mirrors and headlights, too. Dirt can
reduce headlight output by as much as
70 percent.
• Turn on your lights when driving, par-
ticularly in the rain or other poor
weather conditions.
• Have the alignment of your car's
headlights checked regularly, at least
twice a year.
• Avoid, putting on heavily tinted lami-
nates or buying cars with heavily-tint-
ed windshields and windows. Don't
wear tinted glasses or sunglasses when
driving in low light.
Take extra steps to be acautious driver• Always communicate with other driv-
ers what you intend to do. Use your
indicators /turn signals. Position your
car in the proper lane. When neces-
sary, use your hooter to show your
intentions.
• Check your mirrors frequently – every
5 – 8 seconds
• Use a wide, rear view mirror, and the
mirrors on each side of your car, to
help you see what's around your car. If
you don't have a wide, rear view mir-
ror, have one installed.
• Make it a habit to glance over your
shoulder, and in your mirrors, before
changing lanes. Don't assume that
using your turn signal makes the move
safe.
• Always look behind you before you
put your car in reverse. Remember
that up to 80% of rear end smashes
in parking lots are as a result of revers-
ing into an object
A P R I L 2 0 1 0
A P R I L 2 0 1 034
There's a woman living inside me. And she's upset.
Some people might call her a dog, this woman
who threatens to erupt through my pores, fierce
and flailing like Russell Crowe on a rampage in a
New York hotel room, when the guy in front of
me in line at the grocery store is paying with pen-
nies that he's pulling out of his pocket one by one. Or when I
happen to spot the 3-year-old at day care ripping Guess How
Much I Love You out of my daughter's tiny, innocent hands. Or
when my husband runs out to Home Depot for a light bulb and
returns three hours later because he "took a quick spin through
Best Buy." Or when, just last week, after waiting roughly 22 years
at a stop sign, I finally caught a hole in the traffic, zipped out to
make a left turn, and realised that a beige car--that had to be going
at least 20 miles per hour over the speed limit--was bearing down
fast on my rear bumper. The driver crushed on his brakes mere
inches from my minivan, and then rammed his horn as if I'd just
told him his mother was not only ugly but also fat. At that point,
I had a choice to make.....Because she was coming. I could feel her
igniting in my chest, boiling up my throat, fuelled by the man in
the beige car and his crazy eyes that, I could see in my rear-view
mirror, were shooting voodoo rays at the back of my head. I could
have wrestled her down. I could have taken a deep breath…or
two…or 20…and tempered her fury, calmed her impulse to kill,
eased her back down to wherever it is that she waits, like a
Doberman, frothing. I could have pressed the pedal and driven
off, telling myself that this was the sensible thing to do.
Unfortunately for Mr. Crazy Eyes, I didn't think that was the sen-
sible thing to do. Instead, I released her and all her venom, and
she did exactly what she always does in situations like this: She
slowed the minivan down to two miles an hour, forcing him to a
crawl, and roared, out loud, something along the lines of "How
do you like that?! Mwa-ha-ha-ha! Mwa-ha-ha-ha!!!"
by Eugene Herbert
I n t e l l i - D r i v i n g
A woman’s perso This story that I have had on file for a few months is really thought provoking...
35A P R I L 2 0 1 0
"Yes, honey, I know," I conceded to my husband later that night, after I regaled him with
my road rage story of the day. "I know this behaviour is unhealthy. And nasty. And entire-
ly dangerous for everyone involved. Yes, dear…sweetums…love of my loins…I'm well
aware that people have been shot over forgetting turn signals and such things. I under-
stand."
But what he doesn't understand is this: There really is a pissed-off woman living inside me.
Festering. Rumbling. Ravenous for something to catch me off guard so she can surface,
claws out, to protect me. And if I didn't let her loose every now and then, the next time
my husband lies down on the couch in front of Jeopardy! while I wash the dishes from the
dinner I just cooked, I might have a harder time choosing to control her. I might actual-
ly encourage her to rise up and open a can of Linda Blair all over him. Or on the poor
man in front of me in the grocery line. Or, God forbid, on the little 3-year-old at day care.
My husband doesn't understand how good my road rage is for him and for our marriage
and for mankind at large, how letting out my demons while insulated in a locked metal
box that's not only soundproof but also able to spirit me away so I never again have to see
the person I just flipped off six times actually keeps me sane. Actually pacifies my inner
bitch. Actually leaves my rage out there, somewhere, on the road.
nal reflectionI n t e l l i - D r i v i n g
www.bridgestone.co.za
36
This follows on last month’s mention of inappropriate tyres being fittedto various vehicles – and the few suspect dealers who will fit anythinganywhere as long as they make a rand or two.
Afew days after writing that col-
umn, Marcus Haw was travel-
ling towards Ermelo in his lov-
able old donkey, not being capa-
ble of much more than 120km/h, when
he was passed by a Mercedes Vito with a
trailer carrying two off-road motor bikes.
The wheels and tyres immediately caught
his eye and seconds later rounding a bend
he saw a huge cloud of dust. There lying
in the veld among a lot of expensive debris
was the Vito. Being first on the scene
Marcus stopped and helped the very dusty
and shocked young guys out of the wreck.
The EMS later confirmed that they were
luckily unhurt except for a small piece of
glass in the one guy’s eye and the other
one had a broken thumb.
This near tragedy is exactly why we at
Bridgestone need to carry on the fight to
educate the public. The owner of that
Vito had done so many stupid things in
the quest to have the best looking van that
he had ended up with the most dangerous
one! Number one was the tyres; 18” 35
profile ultra high performance tyres of an
unknown make. Number two were the
wheels. Also of an unknown make, they
were of the type which has various stud-
holes at different pitch diameters so that
they can almost be universally fitted.
Number three was the most frightening of
all; since even the multi fitment mag
wheel couldn’t fit the Vito this owner had
his mate make him a set of adaptor plates
cum spacers which facilitated the fitment
of the wheels and allowed them to stand
out further.
Now firstly, the tyres were not load capa-
ble for what he was carrying, especially at
the speed he was doing. Secondly the no-
name rims were under-specced for the
vehicle alone and lastly his engineering
challenged mate had made the spacers
from scrap mild steel. The cause of the
accident was the spacer on the left rear
wheel which had disintegrated.
Had it not, one of the other problems
would have caused an accident sooner
than later. After chatting with the driver
for a while he agreed that the story should
be told to save other people from being so
“ignorant” and that we were welcome to
publically call his and his mates intelli-
gence into serious question.
This is precisely why Bridgestone have
taken on this huge challenge. And while
we are tyre manufacturers, we cannot
ignore the peripheral products closely
linked to tyres, such as rims. Rims too
have designed specifications which have to
be compatible with the vehicle they are
being fitted to. A quality rim will have all
the specs printed on it so there is no
excuse for fitting substandard rims, or for
some over zealous and crooked salesman
to sell them. This particular case is the
worst case of ignorance and stupidity, but
to a lesser degree the same kind of prac-
tices are taking place every day.
Now to get everything into perspective -
At Bridgestone, we do not say that you
shouldn’t accessorise your vehicle by fit-
ting fancy wheels. In fact we understand
that in the current economic times, cars
are being kept longer and the need for
upgrading will be higher than ever.
But the buyer needs to know that he does-
n’t know enough to just choose any wheel
for his vehicle. He needs help so that his
purchase, which is a substantial one, does-
n’t place him at risk. He needs to know
that his wheels and tyres have a capacity,
limited in both speed and load, and can-
not just take whatever he and his vehicle
throw at them. He also needs to under-
stand that the wise fitment should change
the original designed steering and suspen-
sion geometry as little as possible.
Changes to the track width, scrub radius
and other factors can make the car handle
worse than before, and not better. Stresses
and strains on critical components can
lead to breakages, and increased tyre wear
and stress.
The bottom line is that when you plan to
upgrade or enhance your vehicle in any
way, research, thought and understanding
are paramount. Safety must always be
your fist priority.
Marcus Haw
and Their Contribution to Safety in Motoring Tyres
A P R I L 2 0 1 0
W h a t ’ s t h e B u z z ?
A P R I L 2 0 1 0
AUTOMOTIVE MANUFACTURERS FORCED TO INNOVATE
Automotive component manufacturers in the Eastern Cape are being forced to innovate in order toremain competitive or to simply survive according to the Automotive Industry Development Centre(AIDC). AIDC Eastern Cape Supplier Development manager Lance Schultz said local componentmanufacturers were still reeling from the global economic crisis. “The crisis has severely impacted theautomotive industry worldwide. It has also forced the industry here to re-examine its operations care-fully and to a degree re-invent the way it does business in order to create the lowest possible coststructure for its products. It is clearly not a case of business as usual.” Several component makersclosed doors in 2009, including Kolbenco, South Africa's only automotive piston manufacturer,which eliminated the country's ability to manufacture this product. Among other closures were RAHAuto, Powdermet, Vinyde, Eaton Aero Quip and Bloxwich. Listed company, Metair closed its plas-tics business in the Eastern Cape at the end of 2009. Schultz said the AIDC had intensified effortsto assist individual companies make substantial cost gains to stay afloat and to position themselvesfor growth.
MONITOR TYRES WITH TREAD WEAR INDICATOR
Tread depth meters are no longer necessary to monitor thecondition of modern tyres. This is the view of Mandy Lovell,Bridgestone South Africa’s Public Relations Manager “Inpast years, people used a tread depth meter or other ways todetermine whether their tyres were still legal,” she explained.“Some of these other methods included the head of a matchor even coins, however, modern tyres have a built-in wearmonitoring system called the Tread Wear Indicator.” TheTread Wear Indicator (TWI) is a raised section mouldedinto the grooves of a tyre. There may be several TWIsaround the tyre’s circumference and they can be located by
finding a small triangle marked TWI on the shoulder of the tyre. The triangle points towards theTWI. The TWI is approximately 1.6mm high and when the tyre has worn down to the point wherethe tread blocks are level with the raised TWI, it should be replaced.
Flower PowerIf you were a follower of formula one in the 1960s, 1970s and 1980s,you’ll remember the heydays of Lotus, a chassis-builder that was verymuch part of the A-team from the early 1960s onwards, winning theirfirst F1 championships in 1963 and then again in 1965 with the inim-itable Jim Clark. Two years later along came the seminal Lotus 49, a car
which revolutionised the sport thanks to the combination of the Cosworth DFV V8and Colin Chapman’s chassis which used the engine as a stressed member. It won firsttime out at Zandvoort, Clark crossing the line first after his team-mate Graham Hillhad started from pole position.
Chapman had something of an obsession with weight
and from the very beginning his approach to car
design was minimalistic – if it could be made lighter it
would be. This was reflected in small, agile road cars
that benefited from low mass and clever suspension design and
race cars that were sometimes considered fragile and unreliable.
But Chapman’s cars were also fast, helping the likes of Clark,
Jochen Rindt, Emerson Fittipaldi and Mario Andretti to world
championships – seven in total. Rindt, Clark and also Ronnie
Peterson all lost their lives in Lotus race cars. Chapman was a
great innovator and tried anything that would give him an edge.
This included four-wheel-drive, turbine power, the wing car, and
the ever-more controversial double-chassis Lotus 88. He died of a
heart attack in 1982 aged just 54, 30 years after he has founded
Lotus Engineering Limited. Despite drivers of the calibre of
Nelson Piquet, Ayrton Senna and Mika Hakkinen, Lotus as an F1
force was on a downward slide from the late 1980s and never real-
ly recovered. By 1995 it was effectively dead. That’s what makes
the arrival of Lotus back on the formula scene after a hiatus of 15-
years so interesting, even if the team is now owned by a Malaysian
businessman, Tony Fernandes. He’s adamant that the team will
return to its glory days and while the odds might be stacked
against him, drivers of the caliber of Jarno Trulli and Heikki
Kovalainen they just may be able to pull off the odd upset. Only
time will tell. In some ways, the absence from the racetrack has
been good for the road cars, and from the mid-1980s (when
General Motors bought Lotus) the road car business was in
decline too. Product was lagging behind the supercars of the age,
the Esprit ultimately lacking the performance or presence
of the likes of the latest Ferraris and Lamborghinis.
At the end of the 1980s, Lotus started
going back to its roots, introducing
the second generation Elan. Sure, it
was front-wheel-drive (and proba-
bly the best-handling FWD chas-
sis of the time) but it marked a
return to truly compact sports
cars with a good power to
weight ratio and a real seat of the
pants feel. It went out of produc-
tion on 1992 but reappeared
briefly as the Kia Elan, a few of
which found their way to South
Africa.
In 1993 GM flogged Lotus for a paltry £30-million (R345-mil-
lion) to a company controlled by Italian businessman Romano
Artioli, who sold a controlling interest to Malaysia’s government-
backed Proton in 1996. Since then there’s been a steady stream of
brilliance from Lotus Cars (a separate division, Lotus
Engineering, acts as a consultancy business to other car compa-
nies) starting with the original Elise which despite just 90-odd
kW from its 1,8-litre Rover engine could hit 100 in less than six
seconds thanks to a mass of only 750 kilos.
Interestingly, the car was named after Artioli’s granddaughter. The
Exige – the hardtop version – was introduced in 2000 and con-
tinued in the same vein. In the last decade there have been a
bewildering number of derivatives like the 111S, 135R and 240R,
the common thread being agility, speed and the kind of driving
thrills which put the brand on the map over half a century ago.
Practicality, as always, wasn’t high on the list of design priorities.
The Europa has addressed some of those issues, but the 2Eleven
was radical in the extreme, conceived as a car for serious track day
junkies. But the latest and most significant new car from Lotus is
the Evora, introduced locally last month and also shown at
March’s Geneva Show in hybrid form. It represents the next step
for the brand, moving a little closer to the mainstream in terms of
practicality and luxury. With a mid-mounted 3,5-litre V6 with
206 kW and 342 in a car weighing 1 350 kilos it promises to be
brisk indeed, but with appeal for those who have moved beyond
some of the more extreme Lotus offerings of recent years.
by Adrian Burford
A P R I L 2 0 1 038
B u r f o r d o n B r a n d s
It reminds me of the field of preventative maintenance or rather predictative maintenance. This type of maintenance also tries to
prevent failure of components or machinery like any maintenance but by accurately predicting when something is going to fail
and so prevent unnecessary (and many time costly) downtime on production in order to do (maybe unnecessary) maintenance
work. The principle is clear but the trick is to find the ways to measure imminent failure. Ways have been found and are still being
found to achieve this, examples being noise and vibration measurement of bearings, infrared viewing of electrical components, oil analy-
sis of machinery, etc. The good old visual inspection also plays an important role here.
In business we would also like to do ‘preventative maintenance’ and prevent those shocks and surprises that we do not like. The good
news is that there are measurements which act as ‘leading indicators’ which can help us predict future happenings.
One valuable such indicator is the simple CSI measurement. Simply ask your customer from time to time to rate you and see what they
have to say. Do not make it a long tiring exercise, a short list of items with a space to write comments would suffice. If the measure-
ment indicates that your customer is not totally happy (eminent failure), follow through with a personal visit (corrective maintenance)
and try to find ways to turn the potential situation around. Do not outsource or delegate this vital process – get personally involved.
In the same vein one can do a survey amongst your staff or potential customers to get an idea of what the feeling or perceptions are.
These are valuable indicators of future hapenings!
www.t-r-m.co.za
T 0861 TRM TRM
F 086 686 8382
C u s t o m e r C . A . R . E .
A P R I L 2 0 1 042
CRM – an importantmeasure for the futureof your business!It always fascinates me how business people and especially
financially minded business people are always interested
in the accounts of companies. Personally I do not find them
that interesting. They seldom tell me something that I do
not already know (about my company) because they reflect
something that has happened already! They provide what
is called lagging indicators. Something that I value much
more are leading indicators, something that gives me an idea
of what is to come.
Theo Calitz has been work-ing in or involved in the
motor industry for the last16 years.
A Mechanical Engineer by profession, he is passionate
about customer care and hiscompany,
T-R-M specialises in auto-motive CRM for the auto-motive industry and has
been doing it for nine years.
It became clear to me whilst taking in the pearls of wisdom freely availableat the Tyrexpo Africa ’10 Conference, that our government is taking a pre-dictable course in the hoovering up of bags of money, whilst also taking aleaf out of our dear leader’s book of joy and pleasure, and lustfully par-taking in the orgiastic pastime of tyre denial. Apart from the ecstasy to be
had in the locating and reducing, reusing, recycling, recovering, and other euphemisticexpressions, of all these smelly black holes also known as tyres, there is some seriousmoney to be made, merely by passing some obfuscating legislation.
W i l d e T h i n g s
43
In his editorial in the previous issue
of ABR, our esteemed editor wrote
about the profligate ways of our gov-
ernment, and the propensity of the
fiscus to pluck the feathers of the long suf-
fering goose, also known as the taxpayer,
to pay for this profligacy. Not that our
men from the ministry of finance are sin-
gle minded and one dimensional; they can
also be social engineers when the need
arises, and are not averse to putting a hob-
nailed boot into the ribcage of the supine
and defeathered cash machine with a
gusto not seen since the Blackshirts. In his
budget speech in February 2010, Pravin
Gordhan unveiled the worst kept secret of
the budget, slapping an emissions tax on
the new car buyer, and by default the
automotive industry, to show the govern-
ment’s commitment to the environment.
Never mind that the cash strapped buyer
of a modest 1400cc sedan is not an owner
of a pig iron smelter nor a robber baron
posing as a power station utility. All this
poor sucker wants to do is to get to work
as economically as possible. Emissions as
low as 140 gm of CO2 need to be caught
in the financial net, all the better to grab
some more money. I quote from the
Phoenix, “We’ve been sandbagged with an
emissions tax, which whilst justified on
the noble altar of cleaner air, is in reality a
naked grab of our money”. Quite shock-
ing, as Jacob Maroga would say. But let’s
leave that hard working and forward plan-
ning ex-Eskom genius to his thrifty
lifestyle, and focus on the new environ-
mental cash crusade of the fiscus. My gan-
der has been elevated (we can’t get away
from the geese thing, can we) by the news
from Dr. Etienne Human, in his capacity
as the lead consultant of South Africa’s
National Waste Tyre Project, that the gov-
ernment, in their wisdom (and it appears
with the willing participation of the tyre
industry) is busy passing legislation to add
further punishment to the prostate
motorist, by levying a “green” fee on each
tyre purchased, ostensibly to pay for a
grandiose scheme to dispose of waste
tyres. Wow, our government is serious
about the environment! What noble fel-
lows. But hang on; they are not parting
with one cent to finance this scheme. It
will all come from the poor sod who wants
to shod his car. And here comes the kick-
er – Vat of 14% will be added to this levy,
the proceeds of which will go to, guess
where? Not for environmental initiatives.
No siree bob, it will be used for far more
glorious purposes, such as R1,2 million
ministerial vehicles, presidential blue-light
bully boys, Limpopo freeways and bridges
expertly built by the Romans, namely that
Caesar fellow, Julius, and the like.
Is it time for the South African equivalent
of the Boston Tea Party – the Ventersdorp
Moerby Vastrap?
Tyre Deniers
by Fingal Wilde
A P R I L 2 0 1 0
And aha – the power of ABR. Sometime between8th March and 15th March, this is what happened– days after the publication of ABR’s March edition.Thanks to Kentucky Fried Chicken – now all I haveto do is to send you pics of the other 142 611 pot-holes in Johannesburg.
The same pothole has been sitting patiently a mere 30 metres from the
entrance to Megawatt Park, Sunninghill, waiting to chew up more and more
tyres while the JRA sits on their collective large derrieres
And talking of tyres, a quick follow up on last month’s pothole story:
18th February ... 24th February ... 8th March ......
And less than 50 metres from this long running disaster, this is what one sees
– absolutely unbelievable!
A P R I L 2 0 1 044
STEP # TWOWe now initiate the process aptly known
as the DI PHENOMENON. We start to
brainwash the employees, relentlessly
bombarding them with positive images of
the customer. This is not a short term
project, not a medium term project, not
even a long term project. This is a PER-
MANENT project. Day in, day out;
month after month; year after year; decade
into decade; generation after generation;
centuries hence, into infinity, as long as
your organisation exists, the CUS-
TOMER must be relentlessly presented in
a POSITIVE form; daily, hourly, every
minute, every second, every breath that
you take. It is vital that boredom be
avoided, thus new ways have to be found,
continuously, to present this image in an
imaginative and fresh way. This brain-
washing bombardment must go on and
on, until the sub-conscious and the con-
scious meld into one. Every single employ-
ee must be subjected to this propagandis-
tic orgy, from managing director to recep-
tionist, factory sweeper to works manager,
computer operator to systems engineer,
chief accountant to cashier. No one is
exempt, particularly management. If you
want the sure-fire way to derail this
process, exclude management. And they
will be pretty keen to be excluded, for of
course they do not need to be told how
important the customer is, and they are so
terribly busy. Don’t you believe it; when it
comes to ignoring the importance of the
customer, management is in a class of its
own. Preferring to hide behind that fabled
workload, or being busy doing that “man-
agement” thing. I have only four words of
advice - “Don’t fall for it!”
THE MODUS OPERANDIThe question is, “How do we go about it?”
Everyone must be roped into the selling of
the customer. To begin with, immediately
after the wreath laying ceremony, the
Chief Executive must make a conscious
effort of mentioning the customer at every
opportunity, and with every internal
memo and communication. Customer
C.A.R.E. indices, and other relevant infor-
mation, must be introduced into key man-
agement reports, operating meetings and
even board meetings. At every stage of the
operational and functional levels, the
impact on the customer must be dis-
cussed. That is why your organisation
exists - to satisfy the customer, who pays
for your existence. You see, C.A.R.E. real-
ly means CUSTOMERS ARE REALLY
EVERYTHING. The Marketing Division
must be responsible for the promotion of
the customer in-house. Let them unleash
their creative juices on the employees. If
you do not have a marketing division,
then choose a customer care champion, of
which you hopefully have many, to head
up the project. Better still, rotate this
responsibility. This champion must be
empowered with the necessary time and
authority, to enable them to make things
happen, and to ride roughshod over the
doubting Thomas’s, of which initially,
unfortunately, there will also be many.
This is phase one of the glorifying of the
customer; and this phase has to become
part of the furniture, through phase two
and beyond. However, this furniture must
be constantly upholstered.
Phase Two will be our next discussion.
MODULE TEN - THE GLORIFYING OFTHE CUSTOMER
– sponsored by Federal-Mogul
Customer C.A.R.E. Programme
In modules eight and nine, we discussed the DI PHENOMENON, and how the media managed to create an icon that most probably
will last for centuries. We also discussed how we could take the positives from this disturbing fairy tale, and make our customer KING,
but not DICTATOR. This has brought us back to STEP # TWO.
To revise, STEP # ONE was the public admission by the chief executive that the organisation had not shown the necessary apprecia-
tion of the customer, and this was shown by the redemptive act of laying a wreath at the tomb of the unknown customer. This was fol-
lowed by similar expressions of shame and grief, enacted by every single member of that organisation. This was a symbolic, but impor-
tant step. The next step has more substance, but it is still primarily an in-house public relations exercise:
DISCUSSION POINTS
1. C.S.I. = Customer Satisfaction Index.
This measurement is used universally.
Think of other ways that you can
measure customer c.a.r.e.
2. What does C.A.R.E. mean? Just
checking.
3. Everyone has hidden genius. Now is
the time to let in some light. I want
one BRILLIANT idea for promoting
CUSTOMER C.A.R.E. in-house.
4. What has the bell curve got to do with
doubting Thomases?
W h a t ’ s t h e B u z z ?
A P R I L 2 0 1 046
FORD SETS GUINNESS WORLD RECORD FOR THELARGEST FORD PARADE
Ford re-wrote the record books onSaturday, 27 February 2010 bygathering South African Fordenthusiasts from around the coun-try together for the largest record-ed Ford parade in history. Theevent, which took place at PhakisaFreeway in the Free State, saw 586Fords come together to participatein a spectacular parade lap forentry into the Guinness Book ofWorld Records. Ford owners fromaround the country were invited tobring their vehicles to theWelkom-based race circuit tocomplete the 3.2km route in cele-bration of the Blue Oval and its
illustrious history. “It was a fantastic day, the turnout was phenomenal and we’ve been overwhelmed by the loy-alty and enthusiasm of all the die-hard Ford fans who joined us,” Ford marketing manager, Ben Pillay said afterthe record attempt. The final tally exceeded the previous record by more than four times.
Enforcement as a key driver in changing motoristattitudesSouth African roads are fast acquiring a reputation as being some of the most dangerous in the world. Thisis partly due to road conditions and vehicle roadworthiness but more so because of road user attitude. TheAutomobile Association (AA) has noted that the increasing number of crashes on our roads are because of acombination of poor law enforcement, blatant disregard for the law by drivers and the shockingly inept sys-tems that are currently in place when it comes to prosecuting road offenders. The equivalent of at least tenschools’ learners are killed every year on South African roads. “A perfect example of this is the taxi industry.How does a newly licensed driver respect fellow road users when examples of reckless or inappropriatebehaviour when driving are all around them,” says Gary Ronald, AA Head of Public Affairs. “It is still con-sidered “cool” in many conversations when a person mentions how they effortlessly managed to drive homeafter one too many at the bar; how they managed to sweet-talk themselves out of jail by greasing a few palms;how they skipped a red traffic light and lived to tell the tale – the list goes on. Our country’s enforcementleaves much to be desired, and it’s becoming apparent that itwill take more than speed cameras and random road blocks tocurb reckless on-the-road behaviour.” The AA urges all roadusers to be cognisant of the rules of the road and be polite tofellow road users. Ronald says, “Being reckless endangers notonly you but the lives of innocent road users.”
JÄGERMEISTER ‘UNLEASHES THE BEAST’AT SA MUSIC FESTIVALS THIS YEAR
This year, Jägermeister will unleash its brand new creation, the Jäger Truck; onunsuspecting music festival goers up and down the country. A monolithic metalbeast, this ex-army truck has been radically transformed by Jägermeister into a stri-dent-orange mobile music arena that boasts a 5,000-watt sound system, live bandstage, futuristic DJ booth and three plasma screens, blasting out non-stop beats toget your festival flying. Rock-up to the Jäger Truck and catch an intimate live showby a Jäger-music band, a blazing new talent like Die Antwoord, or a festival headlin-er that you’d otherwise never get the chance to see at such close quarters. Add to this,gorgeous Jägerettes selling ice-cold Jägermeister shots and you’ve got a pass to themost surreal happening anywhere in the South Africa this year. Put it in your festi-val diary now to experience it for yourself. Access will be to over 18s only, andJägermeister will be available for sale. Visit www.jagermusic.co.za for a full list ofappearances.
New exhibitorsadd breadthand range toBrityrex’saftermarketappeal Exhibitors from across the aftermar-ket continue to sign-up for October’sBrityrex International exhibition,with both familiar names and newbrands seeking to capitalise on salesopportunities from a post-recessiontyre and equipment marketplace.Among the latest names to be con-firmed by show organiser ECIInternational are battery specialistManbat, Chinese tyre makerGuizhou Tyre Co and a strong handof garage equipment suppliers inSnap-On Equipment, DQN andJHM Butt & Co. Welcoming the lat-est exhibitors to the UK tyre trade’sonly dedicated tyre and equipmentexhibition, Paul Farrant, managingdirector of ECI International says:“The breadth, range and diversity ofexhibitors at this year’s show meansthat visitors will be able to meetpotential new suppliers across almostevery area of their business, fromtyres and retreading to IT, recycling,tools, equipment and consumables.There is no other industry eventwhich can offer so much in return forspending a few hours in the trade-only environment of Brityrex.” The exhibition will take place on 5, 6and 7 October at ManchesterCentral, formerly known as G-Mex.For more details visit www.eci-inter-national.com
S p e e d F r e a k sSouth African statistics show that six times as many speed fines are issued per year now as in 1998. One would expect that this would have made theroads safer. Actually, fatality risk on our roads has doubled since 1998. Relying on speed control for safer roads is a failed experiment which must beabandoned in favour in increased prosecution of moving violations. The extent to which other offences have been ignored in favour of lucrative speed-ing prosecutions is proven by statistics released by the RTMC: for every hundred thousand speeding fines issued in Johannesburg, only 240 fines areissued for disobeying the rules of the road. 98.94% of all fines issued in Johannesburg are for speeding.
P r o d u c t N e w s
47
SKF’s V-belt and Multi-V belt range to complete itsauxiliary drive offer
When the auxiliary belt needs replacement, it often implies that the belttensioner or idler pulley are worn. SKF strongly recommends toreplace the whole system, i.e the belt as well as the tensioner or idlerpulley and offers the most complete auxiliary kit range of the market.
However, one engine can have several auxiliary drives
depending on the customer specification. Too many
kits would be required to cover all applications as we
could have a different belt with the same BTU. Not
turning away from the kit concept but strongly aiming
at providing its customers with a flexible solution, SKF
decided to launch an extended range of auxiliary belts
in addition to the complete auxiliary kits.
For more information, see SKF’s Vehicle Service Market website: www.skf.vsm.com.
No compromise: the SKF Multi-V belts have the exact OElength.
OE length is a main issue: there is big potential risk related to the
belts length like bad tension, noise, vibration. All mechanics
know it: they look for the exact OE length to avoid future prob-
lems.
The right components for every specific repair
The SKF auxiliary drive offer includes 170 complete kits cover-
ing a large part of the car parc as well as an auxiliary belt offer
which, combined with the tensioner units and idler pulleys,
allows for a quick and reliable selection of the right components
for every specific repair.
A P R I L 2 0 1 0
In the March 2010 issue of ABR, we discussed the crazy situation whereby a perfect-ly sound vehicle, needing relatively modest repairs, can be written off by the insur-ance industry, merely because of the insistence from misinformed consumers thatonly “genuine” parts will suffice. This situation leads to higher inflation, increasedinsurance premiums, and a negative effect on general affordability. In this issue, werepeat this exercise with another perspective – the inflating of used car pricesthrough customer ignorance around quality standards and quality marks.
The story that we are about to
relate is instructive. Before we
tell this story, let us partake in a
brief history lesson, namely the
development of glass manufacture through
the ages. The default position, as taught to
students by the colonialist inspired history
curricula, has always been that the first
glass manufacturers were the Phoenicians,
closely followed by the Egyptians, and
some dabbling in Mesopotamia, all around
the second century BC. Proudly, it was
taught that it was the Western travellers to
China, utilising the Old Silk Road, who
brought glass manufacture to the Chinese.
Nice try, but no cigar. New research has
come to light, which traces the develop-
ment of glass manufacture in China, from
the second century BC to today, with each
successive stage taking this manufacture to
new technological heights. For all we know,
we will learn in the future that it goes back
even further, but current thinking is that
glass manufacture started during the Shang
Dynasty (1766 to 1027BC), to the pre-Qin
Dynasty (500 to 400BC), the warring
dynasties to the Han Dynasty (400BC to
220AD), the six dynasties to the Northern
Song Dynasty (220 to 1279AD), and final-
ly to the modern period through the Yuan,
Ming and Qing Dynasties from 1279 to
1900AD, with each distinct period adding
to a rich tapestry of glass making. This is a
seamless history, as opposed to the collapse
of glass making in Europe in the fifth cen-
tury AD, primarily because of the disinte-
gration of the Roman Empire. Glass mak-
ing and the development thereof effectively
stopped in the western hemisphere, and
was only kept alive by the Islamist Empire
in the Middle East, and it only surfaced
again in Europe during the Middle Ages.
Makes one think, and makes one realise the
appalling and overreaching arrogance
behind the belief that only Westerners can
make decent glass. This brings us to auto-
motive glass, and the story that we prom-
ised. It revolves around the replacement of
windscreens and side glass on vehicles.
Once again, it is the consumer who appears
to be the main culprit. It may be anecdot-
al, but one hears time and time again that
the consumer and/or used car dealers are
fitting the most expensive glass when dolly-
ing up their cars for resale, purely because
the consumer complains that the car has an
inferior windscreen, as they have been told
that it is of Chinese manufacture and told
repeatedly that thus it must be inferior.
Take Grandmark glass for example. The
Chinese manufacturer of this glass has the
SABS mark, plus all the other approvals
required by the western world. Their man-
ufacturer actually supplies 10% of
America’s automotive aftermarket needs,
and no one needs to be reminded that
America is the most litigious nation on
earth, where automotive safety standards
are rigidly applied, for fear of the ambu-
lance chasers. Another reason why wind-
screen quality is of paramount performance
is that the design of the modern motor
vehicle has the windscreen as an integral
part of the structure, and thus if not of the
highest standard, the structure could be
compromised, leading to significant safety
implications if the vehicle is in an accident.
Grandmark International is fully aware of
the issues, and thus complies fully with
safety regulations. Grandmark Interna-
tional also welcomes the pending intro-
duction of the Consumer Protection
Act, as it is already ahead of the game.
The CPA will force everyone to supply
good quality product to the South African
automotive aftermarket, which will bring
our country closer to the requirements of
the developed world.
Giel Steyn
D i a m o n d D i a l o g u e s
EditorialPartnership
Consumer Protection– Another Perspective
A P R I L 2 0 1 048
In this series of articles ABR discusses with Giel Steyn of Grandmark International the four significant factors that should be taken intoaccount when purchasing automotive parts - Technology, Quality, Safety and Value for Money. These four characteristics are inter-related, andeach 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 dis-tributor of automotive parts, is keenly aware of the need to source only the best in Technology, Quality, Safety and Value for Money, andtherefore it is appropriate that this series of articles is titled Diamond Dialogues.
Grandmark glass has all the necessaryquality and safety accreditations
Roger McCleery asks the questionsSee how many of these 20 Questions you can answer.
by Roger McCleery
Answers on page 78
1. Who is the 2009 Bridgestone SAGMJ Motor Sportsman of the Year?
2. What winning British (Indian) motor car is returning to race at Le Mans this year?
3. What is the new name of Nissan Diesel?
4. Who makes the QQ3.
5. What parts do Ferodo make?
6. Who makes the Everest SUV Vehicle?
7. What South African manufacturer is going record-breaking in April?
8. Where did Ayrton Senna win his first Grand Prix?
9. What was the VW Beetle amphibian called during World War II?
10. What tractor manufacturer makes sports cars?
11. Who owns the Franschhoek motor museum?
12. What South African woman helped design the new Volkswagen Polo?
13. Who is the reigning South African Rally Champion?
14. Who won the inaugural FIA Formula 1 World Championship Grand Prix at Silverstone in 1950?
15. What cars does Peter Bailey of Johannesburg manufacture?
16. How long does a Formula 1 GP last?
17. What is the name of the motor racing circuit in Meyerton?
18. How old is Alfa Romeo this year?
19. Who is the most successful racing motorcyclist in history?
20. What is Eau Rouge?
A P R I L 2 0 1 050
A I D C Q u i z
From its establishment in 1975 to November 2009, FAS
had only one owner, Ike Eichweber, who over the years
had assiduously built up a dedicated team in both work-
shop and administrative personnel. Ike had the wisdom
to appoint Islyn Knipe in 1980 as a receptionist, who learnt the
ropes over the years, eventually becoming Ike’s right hand woman
and who was virtually running the business these past few years.
When Ike decided to sell FAS in 2009, it was Islyn’s knowledge of
the business from back to front that prompted him to give her the
first option to purchase, and with financial assistance from her
long time friend, Barbara Niehaus, Islyn took the plunge. The
well respected workshop foreman Warren Diack, together with
the other team members, remained in place, so it was business as
usual. Islyn says that “Ike taught me everything I know, so the
transition was smooth, and the past few months have gone
extremely well. Our customers, many of whom I have known for
30 years on a one on one basis, congratulated me immediately
they got the news, and this gave me a very good feeling.”
Ferndale Auto Service’s e-CAR membership also gives Islyn a
good feeling. She notes that ever since FAS joined e-CAR a few
years ago, the already established business benefited significantly
from the move. Membership of e-CAR gives a sense of belonging
and extra credibility, and even more importantly, it gives the
assurance to customers that high standards are being maintained,
and it gives the additional confidence that their vehicles are in
good hands. Islyn also lauds e-CAR’s advertising strategy and its
presence on the web, which is reaping benefits for its members,
who individually do not have the wherewithal to advertise nation-
ally. She particularly likes the fact that e-CAR has ads in women
magazines such as Huisgenoot and You. There are many single mothers, single women and career orientated women who cherish their
independence and who are looking for professional workshops, and e-CAR fulfils this need. Islyn has also noticed that she is getting
more business from people who are going onto the e-CAR website. FAS is now getting at least one enquiry per day from this avenue,
and Islyn attributes this to motorists becoming savvier and who are browsing the web in search of a good workshop.
Ferndale Auto Service cc has been serving the Randburg community from the same site for35 years. 448 Vale Avenue, Ferndale, Johannesburg is something of a geographical iconto the locals, as it stands for stability, consistency, reliability, trustworthiness and allthe good things that go with long term relationships.
51A P R I L 2 0 1 0
FAS at your Service
T o p C l a s s T o p i c s
A P R I L 2 0 1 052
TopClass MD, Richard Pinard
Remember that frightening
experiment carried out by
that even more frightening
science teacher at school?
He did that dramatic flame
thing, by heating sodium
chlorate and releasing
oxygen. Well, for those of
you who did not know, that
is exactly how nitrous
oxide works.
Heat nitrous oxide to 296º Celsius and it splits into nitrogen and oxygen. Pump nitrous oxide into an engine intake system,
and that oxygen release gives you an instant boost in power. Nitrous oxide is also known as laughing gas, and used as an
anaesthetic by dentists, but when nitrous oxide is used by racing enthusiasts, street racers, or even off-road buffs with a zest
for more oomph, they also tend to laugh – at their rivals! But that’s not all the good news – nitrous oxide also has a cool-
ing effect on the intake air, increasing its density, which means more oxygen, so over and above the nitro boost, you can also expect an
incremental six to seven percent kW gain from the cooling effect; similar to what an intercooler does. The conclusion? For those want-
ing more power, it is a no brainer. NOS® is the acronym for Nitrous Oxide Systems, the pioneer of this technique, which now forms
part of the Permatex® stable of maintenance and performance additives. NOS® Automotive Chemicals employ proprietary chemistries
to enhance performance and engine life, through boosting octane, cleaning components and optimising engine efficiency. It is this com-
mitment to quality, proven effectiveness, and performance history that has made NOS a name that is synonymous with performance.
Ask for product code 12003 when ordering
NOS® Max Street™ Octane BoosterNOS maximum performance for the street was developed to increase octane effect up to 30 points or three octane
numbers. Blended with the strongest MMT concentration allowed by law for street use, it also contains the unique
performance enhancing Powertane. It restores and improves horsepower, improves fuel efficiency, and eliminates
knocks, pings and hesitation. It also protects against carbon deposits in the fuel injectors and combustion chamber.
NOS® Octane Booster Racing FormulaNOS performance for the serious racing enthusiast. Developed to increase octane effect up to
60 points or six full octane numbers. Blended with MMT and Powertane, along with Nitro
Methane and unique lubricants specially developed for high performance engines.
Ask for product code 12010 when ordering
NOS® Octane Booster Off-Road FormulaNOS performance for the off-road enthusiast. Developed to increase
octane effect up to 50 points or five full octane numbers in trucks and
sports utility vehicles (SUVs). Blended with MMT and Powertane.
Ask for product code 12007 when ordering
Horsepower in a Bottle
Tyrexpo Africa ’10 ConferenceMakes an Impact
Tyrexpo Africa ’10 made its bi-annual appearance at the SandtonConvention Centre in Johannesburg on the 4th to 6th March 2010,with a few significant changes from the 2008 event. The most signifi-cant change was the holding of the Tyrexpo Africa 2010 TyreIndustry Conference, the first time that a high profile tyre industryconference featured alongside a tyre exhibition. The extension of vis-iting hours also assisted in drawing those visitors who could notfind the time to make it to the show during the day. The three dayshow provided ample time to view, interact and digest, but the star ofthe show was definitely the conference, with insightful and thoughtprovoking presentations.
A P R I L 2 0 1 054
The exhibitors came from
far and wide, to rub
shoulders with their
South African counter-
parts and to prove displays of inter-
est to the visitors from all sectors of
the tyre and fast fit market, from
those looking for exclusive distribu-
tion deals on new tyre brands to
business owners looking to upgrade
or replace their workshop equip-
ment and consumables. ABR gives a
pictorial overview of the exhibitors:
S h o w T i m e
S h o w T i m e
The Kwik-Fit Success Story – Sir Tom Farmer CVO CBE KCSG
DL, founder of Kwik-Fit, one of the world’s largest automotive parts
repair and replacement specialists
Referring to Paul Getty’s quote at the foot of the page, and with the possibility of striking
oil being rather remote, two out of three should do it. Everything is based on a work ethic
and honourable behaviour, and the responsibility of those in charge is to be an excellent role
model. The most expensive investment is people, who come with no operating instructions,
so invest heavily in time and development, and the R.O.I. will be good. Tom Farmer left
school at 15 years of age, and progressed from storeman to industry giant, having founded
a fledgling Kwik-Fit in 1971 and growing it into one of the world’s largest automotive parts
repair and replacement chains before selling it to Ford in 1999 for $2 billion. Farmer attrib-
utes his success to inverting the customer care pyramid, but in reality building up to the cus-
tomer by focusing on the important aspects that make up superb customer care. Thus, self-
motivated people, being good customers to supportive suppliers equals looking after the cus-
tomer, and happy shareholders. Some very good advice to the retail outlets is to make
“Kwik-Fit” the brand. Not surprising,
considering that 60% of tyres sold in
the UK today are non-branded.
Another key to the Kwik-Fit formula
of success is that it was not one big
business, but rather 2 300 small busi-
nesses. He ended an inspirational 45
minutes by lauding the tyre business,
as “there’s no business like it”.
Tom Farmer quotes Paul Getty on the secret of success,
“Rise Early, Work Hard, and Strike Oil”
Tom Farmer with twoindustry icons
Tyrexpo Africa ’10 ConferenceSeldom does a conference manage to cover so many bases in one jam-packed day, but this conference managed just that. From an analysisof the macro economic impact of the BRIC economies on the SouthAfrican tyre business environment, to the challenges facing SouthAfrica’s fleets, to an overview of the impact of new Chinese trucktyres on the European retread market, to an entrepreneurial masterclass from the founder of Kwik-Fit, to expensive world class plans toaddress South Africa’s ever increasing waste tyre mountain.
Tom Farmer does not agree with
the song Que Sera Sera – he does
not believe that whatever will be,
will be, and says it is naïve to
think that the future is not
ours to see.
Macro Economic Impact of the BRIC (Brazil, Russia, India, China) economies on theSouth African Tyre Business Environment – George Schramm, Head of Sales andMarketing, Apollo Tyres S.A. (Pty) Ltd.
With the liberalisation of trade, the Rand appreciation and an import surge, the tyre industry in South
Africa is facing a similar fate to that which the textile industry has recently experienced, i.e. a “shattered
industry”, unless government policy plays a role and some sense of conscious is displayed by the industry.
The pursuit of profit over safety and morality spells danger for South Africa’s four tyre manufacturers and
their 16 000 employees. Brazil and Russia are not big players, with China and India playing contrasting
roles and their divergent business approaches are instructive.
Whilst there are very few Indian tyre brands, the Indian
owned local company invests in people and production, in stark contrast to the 200
plus Chinese brands exported to South Africa, primarily on price. A clear distinction
between a constructive approach vs. the pursuit of profit.
Schramm appeals to the
industry to “make the choice
that makes the difference”
55A P R I L 2 0 1 0
S h o w T i m e
A P R I L 2 0 1 056
Challenges to South Africa’s Fleets – The Imperial Logistics Team
The percentage of bad to very bad secondary roads in South Africa has increased dramatically in the
past 10 years, resulting in a significant increase of impact fractures and side wall damage to the Imperial
Fleet. This has forced the industry to go for sturdier packaging and higher spec vehicles, and is pushing
up costs. Ultimately, the only solution is for the authorities to improve and maintain the condition of
roads in South Africa. In addition, tyre maintenance revolves around the buy-in of management; incen-
tives, skills development and training, scrap analysis and the general improvement of facilities.
World Class Plans toAddress the WasteTyre Situation inSouth Africa – Dr. Etienne Human,Lead Consul-tant ofSouth Africa’sNational Waste TyreProject & CEO SATRP Co.
The challenge is to Reduce, Reuse, Recycle and
Recover. The problem is that tyres are made to last,
and thus degrade slowly. Add to this health issues,
safety issues, social issues, and economic issues, and
you have an intractable quandary. The low value of
waste tyres requires a solution incorporating
government and corporate leadership, legislation
and economic incentives. The US provides a good
model, with 54% of scrap tyres being used as
alternative fuel, 17% being recycled as ground
rubber, and another 12% being used in civil
engineering projects. In South Africa, used tyres are
being recycled, but unfortunately in a most invidi-
ous way, being cleaned up and resold – no wonder
that 17% of accidents are caused by tyre failures!
It is also suspected that a significant proportion of
the “disappearing” used tyres in Europe are ending
up on our emerging market vehicles. These
disturbing statistics, together with environmental
concerns, make up the rationale behind the
SATRP Industry Plan to impose a Green Fee on
the consumer, to be gazetted in March 2010. It has
been a long time coming, but the bad news is that
this green fee will add anything up to 6% on the
retail price of a tyre; because the government has
made it quiet clear that it will not pay for this
clean-up. More on this in Fingal Wilde’s “Tyre
Deniers” article on p43.
Chinese Truck Tyres and their Impact on EuropeanRetread Markets – David Wilson, PublisherSome significant statistics• China is the biggest producer of truck tyres worldwide
• Chinese domestic market is bigger than North America• Chinese retread market is bigger than the retread market in Europe• Chinese new tyres retail slightly below price of premium quality retread
tyre in Europe
The main Chinese tyre manufacturers possess theresources; comply with safety, performance,endurance tests, and have “cradle to grave” con-cepts. The challenge for these manufacturers inEurope is the development of a retread pro-gramme, the low image of their brands, the needto differentiate from the cheaper brands, to con-trol the dumping practices of rogue elements, andto persuade the retreaders that they are not directcompetition.
A well matched team – Paul Farrant, Managing Director, ECI International;Rowena Suthers, Sales Director, ECI International; Liana Shaw,
Publisher/Editor SA TREADS; and Roger McCleery, well known MotoringCorrespondent, Radio Presenter and Raconteur Extraordinaire
S h o w T i m e
A P R I L 2 0 1 058
Two Courses in OneThe good old days when one could attend a show or a seminar at your leisure aregone. Just travelling to a venue adds stress to the busy executive’s schedule. Thusthe double offering of the HeavyWeight Expo and the WATS Expo, held virtually simul-taneously at the Pretoria Show Grounds, together with conferences and seminars,was a master stroke from the organisers. ABR was there to suss out the action.
The first national exhibition and conference dedicated to the latest products, services and concepts in the heavy vehicleindustry was officially opened at the Tshwane Events Centre in Pretoria West on 23 March 2010 by the deputy minis-ter of agriculture, Dr Pieter Mulder. The inaugural HeavyWeight Expo, organised by the Tshwane Business andAgricultural Corporation (Tshwabac) and incorporating the fifth annual Workshop and Aftermarket Technology Show
(WATS), attracted over 170 exhibitors whose products were displayed in three of the biggest halls at the Old PretoriaShowgrounds, covering some 17 000 square metres, and also in a 30 000 square metre outside display area. There were manyhighlights at both shows, and of interest to the automotive retailing sector was the presentation by Jeff Osborne, CEO of theRMI, who spoke on “Why Belonging to the RMI is Better Business” at the conclusion of the WATS show, also summarising theactivities he saw at both shows. ABR’s April 2010 edition went to print before the conclusion of the shows, so a full summarywill be provided on abrbuzz.co.za. For the print version, we provide some eye candy:
59A P R I L 2 0 1 0
A P R I L 2 0 1 060
I n s i g h t s
A Seamless TransitionThe more things change, the more they stay the same. Jean-Baptiste
Alphonse Kerr’s prophetic epigram penned in the nineteenth century
applies accurately to Capricorn Society’s South African realignment after
Rob Mildenhall’s reassignment to Australia’s east coast to increase
Capricorn’s collision repair footprint in that area.
With Rob Mildenhall moving to Australia, Capricorn
Society has taken the opportunity to rezone areas
and to realign responsibilities in its southern
African region. André Changuion, previously Area
Manager for Pretoria and Northern Area, assumes the mantle of
Sales Manager for South Africa, and leadership of a highly moti-
vated team of five people. Whilst André will continue to look after
the northern area, which has been marginally altered, he also takes
overall responsibility for Capricorn’s activities in South Africa, and
will be regularly attending meetings as an integral part of
Capricorn’s Tri-Nations Sales Network. With the realignment, the
Capricorn team now comprises:
André Changuion – Sales Manager South Africa Johan Nel – Area Manager Inland AreasLleana Kaiser-Phillips – Area Manager Coastal SeaboardHelen Viviers – Credit OfficerAmy van den Heever – Administration Officer
ABR had the opportunity to talk to André and Rob the week
before Rob departed our fair shores, and to discuss the impact of
the realignment. This is where Alphonse Kerr’s epigram comes into
play. Whilst there has been a change in management and a mar-
ginal shift in area stewardship, Capricorn’s tried and tested policies
stay the same and its proven support structure will continue to
ensure growth. Rob Mildenhall passes on the baton with confi-
dence, as he knows the calibre of André Changuion. André joined
Capricorn Society eight years ago, having followed Rob from
Gearmax. With André’s Human Resources background and his
valuable experience as an ABET facilitator, he has the perfect cre-
dentials to motivate a team and to interact professionally and effec-
tively with clients. Another advantage is that André has been
involved in sales from day one and has a very good relationship
with Capricorn members and suppliers. André Changuion has a
natural affinity and empathy for people, and he looks forward to
“continue to build relationships with suppliers and members.
I enjoy the Capricorn culture and model. I want to emphasise that
Capricorn does not merely sign up suppliers and members.
We consider the paperwork as incidental to the relationship, and
merely as the formal beginning of a solid partnership.
My goal is to continue to grow our membership on
these principles, and to reinforce the ethics that
have been instilled in our team.”
For those wanting to say farewell to Rob Mildenhall, the perfect
opportunity will be the much awaited Purple Bash, scheduled for
1 May 2010. Capricorn’s annual function has become an event not
to be missed, and this year shall be no different. Whilst the pur-
pose of this function is to update the members and suppliers on
Capricorn’s activities and performance, and to allow the suppliers
to exhibit and to network with the members, it is the festive and
convivial atmosphere that gives this event its iconic status.
Don’t miss it!
Handing over the baton: Rob Mildenhall and André Changuion
To join Capricorn Society Limited call André Changuionon 083 287 3498 or e-mail him at
[email protected] or visit their website onwww.capricorn.com.au
A Trek to the TranskeiPartinform, AAMA’s information and communication arm, takes to the road every sixor so weeks, to impart its important message to the motoring trade, and recently theemphasis has moved to the emerging markets. It’s all about getting a basic and sim-ple point across to the resellers and fitters of automotive parts – don’t mess withother people’s lives by selling or fitting substandard parts. On Tuesday, 9th March2010, the trek was to Mthata (Umtata), an interesting town nestling in the rollinghills of the Eastern Cape. Fifteen manufacturers, representing 23 brands, unpackedtheir displays and offered their unique brand of knowledge, information, advice andtechnical nous to the automotive aftermarket fraternity of Mthata at the Kei FreshProduce Market in Vulindela Heights.
A P R I L 2 0 1 062
P a r t i n f o r m
Information and education
packaged with pizzazz is what
Partinform is all about, and
the locals were entertained
with food, refreshments,
prizes galore and a quiz show,
culminating in a lucky win-
ner, who will be attending a
Forza Racing Driving Experience on 25
November 2010 at the Zwartkops Race
Track. This winner will be joining seven
other lucky winners from the various
Partinform shows around the country,
plus four other lucky winners – three
readers drawn from their entries to ABR
Competition Corner (see page 65), and
one overall winner of Partinform’s
Retailer of the Year competition, nomi-
nated and voted by the Partinform mem-
bers (see following story). There are
many winners at the Partinform shows,
but the real and ultimate winners are the
South African motorists who rely on the
expertise and advice of the parts fraterni-
ty – the majority of whom who play the
game and refuse to dabble in unknown
brands and suspiciously sourced parts.
63A P R I L 2 0 1 0
Anew innovation at the Partinform shows is the introduction of a Retailer of the
Show award. The procedure is straight forward – each Partinform member nomi-
nates a retailer, and the nominations are tallied up at the end of the evening, with
the winner being the retailer who receives the most votes. The criteria for the
nominations are also simple – does the retailer support reputable brands, did the
retailer attend the show, did the retailer bring customers along, and how professional is the
retailer in things such as store layout, image, attitude, product support, customer relations, etc?
The great news is that the Retailer of the Show also goes forward to the next round, which is
Retailer of the Year. And this Retailer of the Year will also be invited to participate in the Forza
Racing Driving Experience on 25 November 2010.
The inaugural Retailer of the Show was Graham Lessing from Buffalo Midas Umtata, who
received seven votes from the members. ABR spoke to Graham, and he said that this was the
first Partinform he had attended, and he was very glad that he did. Whilst he said that he was
not ecstatic about the number of reps he sees and the frequency of visits, he remained a loyal
and patriotic parts reseller, who would “not sell
rubbish”. Thus, you will only find premium
brands on his shelves. He attributes his emphasis
on quality to his longstanding NAPA member-
ship, since 1980, and his belief that even the cost
conscious taxi driver driving an old and well driv-
en Hi-Ace is discerning about parts, and will not
fit poor quality if he has the choice. Graham puts
it succinctly, “I shudder when I see a white box,
as apart from the dubious quality, there is also no
back up and no support, and I look forward to
the full implementation of the Consumer
Protection Act”.
64
Leonard Miller of Super Mac Wheel Alignment & Tune-Up Centre was the bigwinner of the night – a Forza Racing Experience – here an ecstatic Leonard is
congratulated by Colin Murphy, Chairman of Partinform.
There were many other winners on the night
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65A P R I L 2 0 1 0
The readers of ABR also have a chance to win a Forza Racing Track Experience. Three lucky winners will be drawnout of the hat during the year, and they will join the other Schumacher wannabes on 25 November. Here are the threequestions you need to answer
The runner-up for Retailer of the Show with three votes
was Township Auto Spares, Umtata. ABR spoke to,
left to right, Ronnie Venketsamy, Vaughn Mariller,
Joseph Reddy and Cowen Venketsamy. They were
impressed with the show, and looked forward to more
of the same. Their unanimous verdict was that “local
is lekker”. They also added that they believe in branded quality prod-
uct, and that motorists must realise that quality may cost more, but in
the long term, quality counts. Other nominations received on the
night included AutoZone, Diesel Electric Border, Conway Truck Shop,
Argus Motor Company and Parts Centre.
Gaborone – 20 April
Witbank – 11 May
Newcastle – 17 August
Polokwane – 21 September
Rustenburg – 19 October
Soweto – 9 November
Partinform Shows coming to a town hall close to you:
C o m p e t i t i o n C o r n e r
1. What is the basic message of Partinform?
2. How many brands are represented at Partinform?
3. Which magazine is the official mouthpiece for AAMA and Partinform?
Name and Surname: __________________________________________________________________________________
Company: ___________________________________________________________________________________________
Position: ____________________________________________________________________________________________
Postal Address:_______________________________________________________________________________________
Contact Tel. no’s:_____________________________________________________________________________________
e-mail address:________________________________________________________________________________________
Send your answers to fax 086 6579 289 or e-mail [email protected] with the following details:
L i f e G o e s O n
A P R I L 2 0 1 066
Thomas Hemmerich, CEO of
MAN Truck and Bus Africa,
reinforced the African theme
by stating that it was the sales
in both vehicles and parts and servicing in
central and northern Africa that absorbed
the shock of recession in southern Africa
and Europe, and that it would be the
whole of Africa that will lead MAN’s
recovery worldwide. Truck sales in south-
ern Africa have started well in 2010, and
the order intake has been significantly
good, leading to Hemmerich’s prediction
that MAN can expect a 25% to 30%
increase in sales this year. Other good
news is that the credit environment is
much healthier than last year. Credit
approval rates that fell as low as 20% last
year are expected to get back to 80% this
year. South Africa is also leading the way
for MAN in credit innovation, as the
MAN Finance Model is now the bench-
mark for MAN worldwide. Other good
news is that Man Truck & Bus has suc-
cessfully integrated the assembly of VW
truck and bus units into its Pinetown
assembly plant operation.
The event ended on an upbeat and bitter-
sweet note. The upbeat note is the confir-
mation that MAN is getting involved in
2010 World Cup Fever and that South
Africa can look forward to being intro-
duced to the TGS WW later this year.
This durable premium truck has won
many awards, not least last year’s
European Truck of the Year. The bitter-
sweet note came when Dave van Graan
bid totsiens (but not adieu) to the South
African media – Dave, who was the man-
agement board member responsible for
business development and marketing for
Africa, has been promoted to the position
of senior vice-president for sales in the
Middle East, and will be based in Dubai.
MAN Takes StockLiliesleaf Farm was an appropriate venue for MAN’s AnnualMedia Luncheon on 26th February 2010. This was wherethose not afraid of the future laid their plans, and this waswhere those with faith in Africa put their crosses in the sand.by Austin Gamble
Thomas Hemmerich, CEO of
Man Truck & Bus Africa
Dave van Graan, newly promoted to the Middle East
To recap, Carlo has tested the battery and fuses. He’s also
checked the sensor and the pulsating ring, and verified
that there is no damage. He has also checked for clean-
liness, i.e. no dirt, mud, slush, etc. Now it is time to
check the wires from the sensor to the ECU, and more important-
ly, the FSA back-probe phase. After a physical check of the wires,
using the multimeter of the FSA, and testing the continuity of the
wires, Carlo now goes to the FSA scope, and the specific protocol
for wheel speed sensors. Wheel sensors are either hall sensors (usu-
ally three wires) or inductive sensors (usually two wires), but the
important thing is to check for a pulse from the sensor, which can
be done in the workshop by jacking up the car and turning the
wheel by hand. If the scope says that there is a signal, then the
technician needs to back-probe into the ECU to check whether
there is a signal at the ECU. Carlo finds no signal, so to test the
sensor and/or pulsating ring; he swaps these from another wheel.
If he had then got a signal, then the problem lies with the sensor
or pulsating ring, but the problem persists, so the whole
ECU/ABS unit needs replacement. Problem solved.
Carlo reminds us that when you replace, you need to bleed the
system twice – first using the KTS putting it into bleed mode, and
then to bleed the conventional way. Carlo also notes that with the
KTS, you can see the wheel speed with the KTS, whereas the FSA
scope goes further by testing the sensor throughout the cycle.
A series of articles on the versatile FSA 720/740/754 series
R o b e r t B o s c h
The Golden Triangle
– KTS, ESI[tronic], and FSA
A P R I L 2 0 1 068
We continue the saga of the ABS/ESP warning light on the console of a 2006 VWJetta V 2,0i, which stays on after starting. This may be a small electrical problem,but it also may be a far bigger problem. With this in mind, Carlo du Plessis of Cencar,Centurion, does not take chances, and is determined to get to the cause of the prob-lem – which we shall call “Case of the Shining Light”
A dirty sensor – this needs to becleaned!
Carlo du Plessis with his trust FSA, checking the scope pattern of a hall type sensor
Typical look of a scope pattern (inductive)
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The Citi is Dead –Long Live the Vivo
VWSA’s goal is to be the benchmark of auto man-
ufacturing in South Africa, and to have the
benchmark product in each segment of the
market. Not an easy task, but something that the
guys from Uitenhage have been working at for
the past three years, with the three pillars of
attaining market leadership, achieving production and quality
breakthroughs, and putting in place a comprehensive supplier
strategy. The enablers of this strategy have been the creation
of a learning organisation, B-BBEE transformation, and a
leadership brand.
VWSA has basically become a small car factory, producing just
two platforms; the Polo and the Polo Vivo. The rationale is high-
er volumes, local content, less complexity and improved produc-
tivity. This transformation has come at a necessary financial cost,
which must have given the bean counters indigestion, with signif-
icant investment over the past few years. Including the investment
of the suppliers, the bill has come to over R5 billion. Powels must
have been pretty persuasive during his visits to Wolfsburg, but it
appears that it is money well spent. Productivity increases at both
supplier and assembly level have been noteworthy.
To such an extent that VWSA are building Polos at competitive
levels that compare favourably with Western Europe, and with
local content levels, excluding drive train, of 74% for the Polo and
72% for the Vivo. VWSA is now set to become a major exporter
of vehicles, having snagged the contract to be the sole internation-
al supplier of all new RHD 4 door Polos for the global market,
plus additional orders for LHD Polos, as well as the exclusive con-
tract for LHD and RHD Cross Polos. Considering that the
worldwide demand for the new Polo has skyrocketed, this will
translate into over R30 billion in export earnings over the next six
years. Add to this five cylinder EA111 engine exports to India and
China, and no wonder VWSA is smacking its lips.
These statistics were revealed to ABR at a media briefing and
plant tour on 11th March 2010, before the unveiling of VWSA’s
second string to its two platform bow, the Polo Vivo. The Vivo is
the successor to the spectacularly long running Citi Golf and
VWSA were at pains to point out how worthy a successor it is.
Bigger, new generation engines, significantly better chassis,
improved safety and comfort, radically better ergonomics, and
enhanced vehicle security are just some of the reasons why the
Vivo has been introduced.
Our 1600 Vivo sedan in an unusual tomato colour (VW call it Sunrise Red)
by Howard Keeg
“Market leadership is not a target, it is a consequence”, is how David Powels, MD ofVolkswagen of South Africa (VWSA) puts it. This quote encapsulates the recent activ-ity at VWSA, situated on the banks of the Zwartkops River in Uitenhage, Eastern Cape.
M o d e l R e v a m p
71
Priced from R101 500 for the base
line hatch to R150 800 to the top of
the range sedan (a new Fox, for those
diehard Fox fans!), the higher price
compared to the Citi is ameliorated
considerably, if not totally, by higher
residual values and far lower insur-
ance premiums. Consumption and
CO2 emission levels (the new green
craze) are also much lower than the
beloved predecessor. Parts availability
should be good, considering that
VWSA is also spending another
R200 million on a state of the art
parts and accessories logistical hub in
Centurion, due to open in July 2010.
Our hoary band of hacks took the
1400 and 1600 models for a drive to
Cape St. Francis, and the close to
unanimous verdict was that this
revamped previous generation Polo
has got a lot going for it, and should
do well in its designated segment.
But to my mind it has a long way to
go to reach the iconic status of its
forebears, the Beetle and the Citi.
Not yet Viva Las Vegas, more like
Vivo Uitenhage, but it has time on
its side. And don’t be surprised to see
some funky styling as early as 2011.
VWSA’s paint shop is stunning in both technologyand design – and it has an unusual work of art inits reception foyer
This is where the Citi Golf line used to be – there arerumours of sightings of ghostly Citis at midnight
Lining them up for future customers
This is not an angry VW – it is a Cross Polo
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V e h i c l e E v a l u a t i o n
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Purrr..geot PleasureDuring March I had the opportunity of testing three Peugeots back toback. Something like a three course dinner, but in my experience a smor-gasbord of driving experiences. For starters I had a 207, then I tuckedinto the main course of Expert Tepee, and ended off a gastronomicgorging of French flair, styling, innovation and finesse, with a 3008.
The 207 is like onion soup. Classic comfort
food which is like an old friend. No frills,
never lets you down, and with health benefits.
Did you know that onions are regarded as
having aphrodisiac properties in India? No, these are not
the health benefits that I’m referring to – the 308cc fits
the aphrodisiac role perfectly. The 207 is different in that
it encourages a healthy lifestyle. It is stylish, comfortable,
economical, safe, and with all the features a healthy indi-
vidual requires. It also comes with a warranty and service
plan that takes away any anxieties. I am a great believer
in maintenance plans, as it gives a feeling of security that
is far more valuable than its monetary value.
With a warm inner glow, we now tuck into the main course, Coq au vin. Not that the Expert Tepee is an old bird, but is both tough
and tender, depending on what your needs are. I spent many many hours in the driving seat of this wonderful vehicle, having gone down
to Mthata to cover an event, and I experienced the full spectrum of road conditions, from freeways to toll roads to national roads to
regional roads to roads that can only euphemistically be called roads. I must have a chat with my GPS about its definition of roads! The
point I am trying to make is that the Tepee takes anything in its stride. It virtually floats down the well maintained roads, it is not fazed
by inclines, tight corners or pothole dodging regimes, and when asked to negotiate gravel roads and even worse, it is up for the chal-
lenge, with remarkable agility and handling characteristics which had me applauding. As Peugeot says in its press release, the Tepee is “a
generously equipped eight-seater bus aimed primarily at the hospitality industry, but with considerable appeal for those with large fam-
ilies who want an enticing mix of space, comfort and safety.” But it is the Expert DNA that makes the Tepee so durable and function-
al, and it passed the acid test with flying colours. The acid test was my back, which complains strongly when aggrieved. With the Tepee,
having spent over twenty hours on the road in a two day period, my back didn’t say a word. And let me assure you that there are some
passenger vehicles that I’ve driven for merely a few hours that have got my back’s hackles up. Another very impressive thing is the Tepee’s
fuel consumption. Its 80 litre tank will give you well over 1 000 km of pleasurable driving, and with you not having to spare the hors-
es. The 2,0 litre HDi engine confirms Peugeot’s claim that they lead in the turbodiesel field, and verifies the decision to go with a six-
speed box, giving it a combination of pulling power and cruising ability. There are far more positive things to say, but space precludes
further raving. Suffice to say that the price of R339 000 is incredibly good for what you get (it is Peugeot passenger car equipped) and
if I was to start a shuttle service company, I know which box I would tick first.
by Howard Keeg
V e h i c l e E v a l u a t i o n
73
We end off the meal with crème brûlée, a symphony of tastes and sensations, which is an apt description of the 3008. The combination
of the 3008’s aggressive front grille and its refined interior is just like crème brûlée – hard on the outside, soft and inviting on the inside.
As Peugeot puts it, “the Peugeot 3008 derives its strengths and appeal from its ability to combine the best elements of these seemingly
divergent motoring concepts, while adopting a number of new technologies, resulting in an unrivalled package.” The divergent concepts
to which they refer are the sport utility vehicle (SUV), multi-purpose vehicle (MPV) and popular family hatchback segments. This is
not just marketing spin, they are spot on with le Crossover. It does indeed rewrite the crossover rulebook, giving one the best of all
worlds, and more. I was at the media launch in Namibia, and apart from the aforesaid unique characteristics, what really impressed me
was that after a fairly rigorous exploration of the rough terrain on the fringes of the western Kalahari, there was nary a squeak or rattle
from this sturdily built vehicle. Sturdy it may be, but it also personifies style, comfort, and the joie de vivre reputation that the French
have assiduously built up over the centuries. Le Crossover is the ultimate tale of two and more cities, and my joyful first impression in
Namibia of “What the Dickens!” was reconfirmed on the stressful Gauteng streets in my test car. Once again, it was the 2,0 HDi engine
with its incredible torque that had me raving, with its power, flexibility, efficiency and amazing fuel consumption literally taking my
breath away. Not that the 1,6 VTi and THP (Turbo High Pressure) petrol engines were slouches; they just park in the shade of the turbo
master.
Now, whilst I sip my coffee, I can sit back and reflect on the meal. My tummy is full, but not as full as that fellow in the Monty Python
spoof “The Meaning of Life”. My philosophical ruminations are more attuned to motoring needs, and the realisation that Peugeot are
truly making a comeback. Remember the days in the 1970’s when any rep worth his salt drove a Peugeot 404? It was reliable, safe, hon-
est, and economical, and served many needs. It looks like Peugeot wants those days to come back, and they are putting together an
impressive offering of vehicles to assist the process.
Please note that I did not give many technical specifications on these vehicle – I leave this to the petrol heads from other publications
who seem to derive perverse and disturbing pleasure from things such as bore, length of stroke, piston slap, thrust, acceleration to cli-
max, traction control, rough riding, and such. Some of them you cannot even get out of their racing suits. And I hear that the word
emissions has them panting for more and creating another reason for heated seats. All technical information and any specification your
heart desires are available at www.peugeot.co.za or www.peugeot.com
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A P R I L 2 0 1 074
An “I” on value in a compact hatch Hyundai’s long-awaited i30 is here and moves the brand further upmarket and con-firms its status as a maker of high quality cars with mass-market appeal. Says HyundaiAutomotive’s Marketing Director Stanley Anderson: “With the i30 we are focusing onmotorist who want a car with a host of technology, features and safety in a compactpackage - at a price which represents exceptional value.”
StylingFrom any view you see how the design has incorporated the use
of concave and convex curves – all with solid sense of purpose.
From the electrically folding wide-angle door mirrors or the rear
roof spoiler, which houses a high mounted brake light and inte-
grated rear washer nozzle – this car has it all. The i30’s wheelbase
of 2 650 mm is the longest in class though the overall length of 4
245 mm makes it slightly shorter than most rivals. The result is a
car with a footprint wider than most cars in the segment, deliver-
ing an assured and stable stance. Both models ride on lightweight
alloy wheels, the 1,6 with 205/55R16s, and the 2,0-litre with
225/45s on semi-chrome 7x17-inch wheels.
InteriorFrom the driver’s seat the i30's cool blue illuminated instrument
lighting has the benefit of reducing eyestrain and this theme
extends throughout. The adjustable steering column all add to the
comfort of the i30 experience – so too do the light sensors which
detect light levels and automatically activate the car's headlights.
Satellite controls on the left-hand spoke of the wheel allow quick
access to radio channels, the 2.0-litre model also fitted with cruise
control. An additional feature specific to the larger-engined
model: a tilt/slide sunroof and both models feature a panel in the
roof, with a sunglass case and individual map-reading lights.
As well as four speakers and two tweeters, in-car entertainment
includes USB and Auxiliary connections – giving drivers the abil-
ity to listen to their portable media player through the vehicle.
Let’s not forget the boot - in this case it is rated at 340 litres and
can grow to 1 250 litres. A full-size spare tyre on an alloy rim
resides under the floor. The i30 also boasts many clever storage
areas to maximise interior space – in fact there are, all told, 20
storage compartments inside an i30.
SafetyThe i30 has already achieved a maximum 5-star rating in the
Australasian New Car Assessment Programme (ANCAP) and 5-
stars for adult protection and four out of a possible five for child
protection in the pre-2009 European NCAP ratings. The i30
features ABS and EBD and has front and rear crumple zones and
no less than six airbags (front, side and full-length curtain), as well
as active headrests to reduce whiplash injuries and seatbelt pre-
tensioners for front seat occupants. Finally, the i30 comes loaded
with features that take the load off the driver - including an elec-
tro-chromic rearview mirror, one-touch down function for the
window and a single-wipe function for windscreen wipers.
DrivetrainsThe local i30 range makes use of two aluminium powerplants – a
1,6-litre unit and a 2,0-litre. Both are mated to five-speed manu-
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75A P R I L 2 0 1 0
al gearboxes, ratios chosen to suit their specific char-
acteristics. Both engines are long-stroke design, with
a high compression ratio. With numbers of 89 kW
and 153 Nm for the smaller unit and 105 kW and
186 Nm for the larger one, they are both able to offer
eager performance. The 1,6 is able to reach 188 km/h
in top gear, and the 2,0-litre 195 km/h. The larger
powerplant also boasts variable valve timing (VVT) to
enhance the width of the power band and provide
exceptional driveability. Multi-point electronic injec-
tion ensures precise metering of a diet of unleaded,
and contributes to combined fuel consumption of 8,6
litres per 100 km and 7,5 per 100 for the 1,6 and 2,0-
litre respectively. With CO2 taxation on the horizon,
it’s a good thing that the engines generate just 165
and 182 grams of CO2 per kilometre respectively.
ChassisThe i30’s chassis underpinnings combine front
McPherson front suspension with a broad-based
lower control arm, and a multi-link rear suspension
mounted on a compact transverse subframe. Rear
shock absorbers and coil springs are mounted sepa-
rately and for improved ride quality and minimal
intrusion into the luggage area. Gas damping is used
all round to ensure minimal degradation of shock
absorber performance. The steering plays a vital role
in all this and the i30 is fitted with Hyundai’s latest
MDPS (Motor-Driven Power Steering) system. This
electric power-assisted system has relatively high gear-
ing, with just 2.69 turns of the steering wheel lock-to-
lock and an impressive 10.2 metre turning circle. An
added benefit of electrically assisted steering is a fuel
saving around three percent on the open road.
SecurityIn-built security systems can’t be overlooked and the
i30 offers a sophisticated alarm and transponder
immobiliser system, remote central locking and a
window-lock function. The doors are programmed to
lock automatically when the vehicle reaches 40 km/h.
“There is no doubt that Hyundaihas raised its game with this carand the list of standard featuresand equipment shows it,” saysAnderson. “We believe that the
driving of it is the ultimate proof and will confirm just how
accomplished the i30 is.”
The i30 1,6-litre goes on sales at a price of R189 900
and the i30 2,0-litre at R229 900. This price includes
Hyundai’s a 5-year/150 000 km warranty and a
5-year/100 000 km service plan.
Hyundai enters the tough C-segmentThings are looking good for Hyundai. At themoment they are sponsoring the biggest event toever hit African shores, the 2010 World Cup. Interms of corporate social investment, this is huge,and should see their brand going on to become oneof the most recognised in South Africa.
But you don’t get this kind of sponsorship money from building crappy vehi-cles. In the last few years Hyundai has become synonymous with quality andaffordability. Their recent successes include the massive H1 van, the definitivecity car, the i10 and the most recent i20 which was named a car of the yearfinalist. An impressive record by any standards.
They recently continued this trend by launching the new i30. Although thisvehicle is not entirely new, it has been on offer overseas for quite some time, itdoes offer exceptional value for money. On paper it beats the Golf 6 by a bigmargin in the value for money stakes. The Hyundai has a standard specifica-tion list that is unrivalled by the competitors. If you spec these vehicles up tomatch the i30, their prices start to look a bit ridiculous. Two petrol modelswere available at launch. The 1.6 retails at R189 000 and the powerful 2.0can be on your driveway for R229 000. Both models come standard with anMp3 sound system with controls on the steering wheel, climate control, elec-tric windows and leather seats. The 2.0 model also has cruise control, sunroofand special alloy wheels with chrome inserts.
The 1.6 puts out 89Kw and has a claimed fuel consumption of 8.6l/100km.The 2.0 delivers 105Kw and this extra power helps lower the consumption to7.5l/100km. Both these engines help the i30 to feel nippy in traffic and pro-gressive on the open road. The manual gearboxes on both models are smoothand a joy to operate. If you have a green conscience you need not worry. Bothengines emit less than 190g/km of greenhouse gasses. The suspension is set upfor comfort, but never felt too soft through corners. It ironed out the roughparts of the road and kept noise and vibration levels low. Couple this to the impressive list of standard specification and you have a great recipe for lux-ury. Many people believe that space is another important element of luxury.The i30 has space for five people and enough room for their luggage. Thosepreviously mentioned leather seats offer ample support and will keep your bumin a good condition on a long journey. Obviously a vehicle of this kind needsto be as safe as possible. It scored a maximum of five starts in the Euro N-Captest and scored exceptionally well for child safety. Both models have dual frontand side airbags, as well as curtain airbags for the rear passengers. Before anaccident even happens you will be kept in line by the ABS and EBD systems.
Overall the Hyundai i30 is a great car. It just needs to justify its place in thesegment. The Golf 6 is arguably a better car, but you have to ask yourself, isit R40 000 better? This is a massive saving and the i30 certainly doesn’t feelas cheap as it is. Another great car from a great manufacturer.
G e r h a r d H o r n r e p o r t s
T o y o t a R a c i n g
A P R I L 2 0 1 076
Toyota Announces MotorsportChanges for 2010
He also stated that rally
fans can look forward
to “as many as 18
S2000 cars running
at the head of the
field.” Not only will
they be some of the most competitive
vehicles on the field, but they will be using
some of the latest technology available in
the rally world. Over the past two seasons
the stage results have been shockingly
close. A winner now has to be determined
not by seconds, but by tenths of seconds.
Vorster then stated that fans can look for-
ward to a “vintage season.” He further
claimed that the ABSA Off Road series
competition is just as tight with a number
of technically sophisticated SP vehicles
entering the fray. It is then no surprise that
we have entered an environment that is
more competitive that ever before.
The team has already started by building
two new vehicles for Johnny Gemmel and
Mark Cronje, refurbishing Hein Lategan
and Japie van Niekerk's vehicles and the
complete reworking of the original
homologation prototype Auris for VIsser
du Plessis. By the time you read this, these
vehicles will have already competed in the
first event of the season. 2010 will see an
interesting transition for Toyota
Motorsport. It used to be a division of
South Africa’s largest automotive manu-
facturer, but will from now on be a private
entity backed by Toyota. It is fair to say
that they are staring some tough chal-
lenges in the eye. Hopefully they can
extend on their unparalleled success over
the past two decades.
To date Toyota has won 97 national
championship rallies in its 41 years of
competition. It is this level of success that
has made Toyota the dominant manufac-
turer in the 49-year history of the South
African rally championship. This really is
a lot to live up to, but if anybody can pull
it off, it is Glyn Hall. The team stated
that they will draw on an established
strong technology base to improve their
vehicles and to take the fight directly to
the competitors.
Highlights of the Toyota Motorsport
programme are:
• Two Castrol Team Toyota Auris S2000
rally cars with additional backing from
the Innovation Group. These cars for
Johnny Gemmel/Drew Sturrock and
Mark Cronje/Robert Paisley.
• In house preparation of an Auris
S2000 rally car for Japie van Niekerk
to run in the colours of New Africa
Developments.
• Support for two Auris S2000 cars to
run in Pirtek colours for Hein Lategan
and Visser du Plessis. These cars are to
be prepared at SAC Diesel.
• The long standing relationship with
Total continues with support for three
Team Total RunX S2000 cars that
will be driven by J P Damseaux/
Carolyn Swan, Fernando Rueda/
Dave Lewkowicz, and Mohammed
Moosa/Grant Martin.
• Two Hilux SPs to run in Castrol Team
Toyota colours with additional sup-
port from the Innovation Group.
These vehicles are to be fielded by
Anthony Taylor/Robin Houghton and
Duncan Vos/Rob Howie.
“Toyota Motorsport is one of the
strongest brands in the sport in South
Africa,” says Glyn Hall. “It is a privilege
for me to have been selected to take the
organisation forward into the future as a
private organisation and to develop it fur-
ther, both in terms of competitiveness and
in the scope of its operations.
The announcement took place at the
Gourmet Garage, an appropriate venue as
the season promises a feast of mtorsport.
Toyota Motorsport is standing at a door that leads to a new era in their existence.Opening the door and leading the way in will be Glyn Hall who took over the divisionin January 2010. These announcements were made on the 2nd of March by MariusVorster, Toyota’s Vice President Marketing Communications.
T e a m T i m k e n T h r u s t
77
Seeking NewChallenges
Winning can get boring. Many Blue Bulls fans may disagree, but for DanieCoetser, Managing Director of Timken South Africa, four WesBank V8Supercar Championships under the belt are more than enough. Seeking newchallenges in 2010, Team Timken have now set their sights on theBridgestone Production Car Series.
The Bridgestone Production Car Series,
which is historically an extremely com-
petitive racing series, also has its share of
political challenges for Timken. Whilst
not having the intense political intrigue
of the V8 Supercar Championship, all the cars
involved in the production car series run on Timken
bearings, so in effect every single car is flying the
Timken flag, so Danie had to be very careful as to
which vehicle Timken would sponsor under the Team
Timken banner. The Subaru WRX STI, being relative-
ly neutral, was the vehicle of choice, and the gauntlet
was thrown down to Carel Pienaar and his SP Racing
outfit to get the car race ready. Anyone in the know
will tell you that the development of a race car does not
just happen overnight, so SP Racing had its work cut
out in the short space of time from Danie’s decision to
the start of the racing season.
Carel Pienaar has two things going for him. Firstly, the
strong commitment of Team Timken to make the
Subaru race competitive as soon as possible, and the
fanatical support of a true blue racing sponsor.
Secondly, in Hennie Groenewald, Team Timken has a
magician behind the wheel. Hennie, with all his expe-
rience and a racing pedigree of note, can make a lawn-
mower look fast, so don’t be surprised to find the
Subaru racing at the front before the season is out.
Team Timken loves new challenges, so ABR will keep
its readers abreast of the Subaru’s progress through the
season.
When it comes to the Engen VW Polo Cup
Championship, Team Timken has unfinished business.
Bryan Morgan achieved his best ever placing in last
year’s championship, finishing in a very respectable
fourth place, but is hoping for better things this year.
He already has a third place and a second place finish
in the first two meets of the year, at Kyalami and
Killarney. That elusive first place is just around the cor-
ner, and Danie Coetser is holding thumbs that at sea-
son’s end, Bryan will have improved to third position
or even better. ABR will report on Bryan’s progress as
the season unfolds.
Danie Coetser, Managing Director of Timken South Africa, in front of a cherished t-shirt, signed by his grateful drivers.
A P R I L 2 0 1 0
A P R I L 2 0 1 078
It’s Same Again ForF1 in 2010After all the hype of new cars, new teams, new rules and the returnof Michael Schumacher, it was back to the same again, follow-my-leader, motor racing on the hot Gulf Island of Bahrain, on anotherdead boring, wide desert circuit in front of a tiny crowd.
Until Formula 1 and the technical people in the sportget some spectators or marketing people aboard togive advice we are feted to have line astern racing in allnineteen circuits. For goodness sake, get the wings
and double diffusers off and swop the carbon fibre brakes for steelunits. This will allow the finest drivers in the world to genuinelyslip stream without sitting in massive turbulence from the car infront of them. And cars can start to out-brake each other as wellgoing into corners. These drivers could put on a tremendousshow of exciting motor racing with passing and re-passing, that’sif the authorities from the FIA want genuine crowd pleasing rac-ing. Today we have moving billboards, playing host to sponsorswithout a thought for the paying or TV watching public. Theseaerodynamic aids and brakes have turned even the widest mod-ern circuits with radiused corners into no-passing processions.Please, please FIA, let’s see the best drivers at least racing eachother. Also it wouldn’t be a bad idea to start putting numbers onthe cars where they could be seen, plus drivers’ names.Recognising a high speed racing car by the top of the driver’s hel-met is rubbish.
Pit stops? How exciting is a car stationery for 4 seconds in the pitsto change tyres and mess up the entire order of a race. The mas-sive world-wide publicity around Grand Prix racing almostensures huge audiences, which can easily diminish if the showdoesn’t deliver. We all know lots of people who say they don’twatch Grand Prix racing any more as it is boring. Another thingis that the general public think that all motor racing is likeFormula 1 Grand Prix racing, which it is not. Our South Africanmotor sport provides far closer and competitive racing and lots ofpassing in 90% of our formulae.
All that said, as a Formula 1 fan it was good to see more GP cars(24 on the grid) and the return of Michael Schumacher. Nodoubt about it, this 41 year old has revived interest in GP racing.What driver of his age after a three year break, can come back,and with limited seat time, race near the front and come home6th overall, just a fraction of a second off the winner’s lap time.As he said, he is not a magician but needs a little time to sort outhis relationship with the team, his car, all the new innovations inGP racing and some new circuits. My forecast is that he will bepretty close to the top of the charts come the end of the season.
Watch. As the winner of the Bahrain GP, Alonso, said it takes afew GP’s to sort out the form of all the teams and drivers. Onething is for sure, Ferrari, Alonso and the returning Felipe Massa,are ready. A 1 / 2 trouble-free run was the best way to start yourchallenge for the title. The only thing they have to do before theAustralian Grand Prix is find some speed to challenge SebastianVettel in the Red Bull Renault. Seems the trick is, the newexhaust system that designer Adrian Newey has introduced, thatgives them the edge on power. That was until something wentwrong and got too hot and broke, and Vettel then lost the edgeof his engine’s performance.
As we write, teams must be in the Dyno Rooms back home, try-ing to extract more power from engines via the exhaust systems.
Forecasts from all the experts and Formula 1 fundis before theseason started, is that four teams will lead the way in 2010.Ferrari, Mercedes Benz, McLaren and Red Bull, with Williamsand Renault as outsiders, despite Renault providing engines toRed Bull.
So it has turned out although Force India with Ferrari power anddrivers, Liuzzi and Sutil, are there and knocking on the door.Also we forecast Alonso to lead Massa at Ferrari, Hamilton infront of Button, Vettel bettering Webber, and MichaelSchumacher No 1 in Mercedes Benz, ahead of Nico Rosberg.The last one didn’t happen in Bahrain, but give Schumacher acouple of meetings for this to take place. There will be a few sur-prises ahead as every one of the Formula 1 GP drivers is a cham-pion in his own right. Fortune only favours the talented driversin well funded teams. The others all look like also-rans. It hasalways been like that. You have to have the car and the teambehind you to be successful.
With teams racing out in the Far East a long way from home andno chance to make and test more go-fast bits, cars that raced inBahrain will be the same until Round 5 on 9th May and the startof the European Formula 1 GP season in Barcelona, which allteams and drivers know well.
That is when we will see the true form of the top teams.
F a s t W h e e l s
by Roger McCleery
1. Giniel de Villiers – winner
of 2009 Dakar Rally
2. Jaguar
3. UD
4. Chery
5. Brakes
6. Ford
7. General Motors South
Africa
8. Estoril, Portugal
9. Schwimmvagen
10. Lambourghini
11. Johann Rupert
12. Oona Scheepers
13. Hergen Fekken
14. Guiseppe Farina
15. Ford GT40, Ferrari P4 and
Porsche 917
16. Two hours max
17. Midvaal
18. 100
19. Giacomo Agostini – 15
world titles
20. A famous corner on the Spa
Francochamp Circuit in
Belgium
Answers From page 50
Midas is spoilt for
choice, as South
Africa has a rich her-
itage in motorsport.
Today, whilst we no longer have
bragging rights over our very own
Formula One race, we do have a
plethora of track and off-road racing
series to compensate for our one big
gaping hole on our racing calendar.
So much so, that hardly a week goes
by without some form of national or
regional event to whet the appetite.
In reality, it would be physically
impossible for one motoring jour-
nalist to catch all the events on the
racing calendar, even if he or she
spent 365 days on the road.
This reality was top of mind when
Stefan le Roux, Midas Franchise,
Marketing and Commercial Vehicle
Director, had a look at Midas’ 2010
motorsport sponsorship plans.
Stefan understands that with Midas
having the biggest automotive after-
market franchise footprint across
southern Africa, it is important for
the Midas Franchise brand to be
seen to be associated with motor-
sport. He is also aware that high pro-
file sponsorships are simply too
expensive, and that they consume
the biggest budget with rapidity.
Stefan prefers the “spread it around”
philosophy, with something akin to
a focused shotgun approach. He says
that “we need to recognise our lead-
ership role in the automotive after-
market, and to participate in motor-
sport and related activities across the
country and by so doing Midas is
putting something back for our cus-
tomers and franchisees, in a struc-
tured and responsible manner.”
Thus, in 2010 Midas will be partic-
ipating in the following:
M i d a s S p o r t
79
In the Driver’s Seat
WesBank Super Series:Production Cars: The exciting Lotus Exige
with Midas branding will participate in the
Bridgestone Production Car Championship,
driven by Richard Pinard. As a new entrant
the Lotus should receive a lot of media atten-
tion, with the added bonus of all the races
being broadcast on DSTV. In addition, this
car will be available on specials days and super
days at Midas Franchisees.
WesBank V8 Supercars: Midas has a limit-
ed sponsorship of the Fuchs Lubricants Jaguar
driven by Terry Wilford. South Africa’s fastest
racing saloon cars are guaranteed to bring
thrills and spills, and this series is a crowd
favourite.
Pro Tour:On alternate weekends and different race
tracks, Midas is to part sponsor the Formula
Ford Series with Invest Chem. Formula Ford
is a great entry level to single-seater cars. All
18 vehicles to have Midas branding, and all
prize giving and interviews will have the joint
sponsors in the background. In addition,
Midas will sponsor five times National
Champ Robbie Wolk in a Midas branded
vehicle.
Regional and ClubRacing:
Midas shall be sponsoring the well known
Clubman series, which is Cape Town based.
170 cars participate through the year, and
anything from 60 to 70 cars pitch up on any
race day.
The Gauteng guys need not worry; a new his-
toric car tour has been approved and will be
raced mainly in Gauteng. To be held on alter-
nate Saturdays to the WesBank and Pro Tour
Series, all the cars will carry Midas decals.
With seven classes, this tour shall be a winner,
as witnessed at Zwartkops Raceway in January
with 13 000 spectators.
The off track fraternity are also being catered
for. Rally Driver Tjaart Coetzee will be proud-
ly flying the Midas brand in his AWD Subaru.
A P R I L 2 0 1 0
A series of articles on Midas motorsport initiatives in 2010
In line with the building of the various Midas Group brands and in support of its cor-porate responsibilities, Midas is committed to sponsoring social, community, corpo-rate and sports events. With specific reference to motorsport, Midas has deemed itimportant for the Midas Franchise brand to be seen to be associated with motorsport.
A P R I L 2 0 1 080
T h e L a s t W r i t e s by Baron Claude Borlz
“For our more discerning readers .....”
Putting the Cartbefore the HorseIn Lesotho, where large herds of free roaming
sheep crops all the grass in the little kingdom
shorter than the blades of a Rolux Mangum
lawnmower can ever manage, the baSothu's still
manage to get their hardy baSotho ponies fit for
the annual races after the harsh winter. You
could say they have forgotten more about
equine training than most European trainers
ever learn. Those passionate horsemen have a
tribal saying, passed on from generation to gen-
eration: "When you discover that you are riding
a dead horse, dismount and get a live horse."
However, in educative, corporate and govern-
mental Southern Africa, more advanced strate-
gies are often employed by the leadership, such
as:
1. Buying a stronger whip.
2. Changing riders.
3. Appointing a committee to study the horse.
4. Arranging to visit other countries to see
how other cultures ride dead horses.
5. Lowering the standards so that the dead
horse can be included.
6. Reclassifying the dead horse as 'living
impaired'.
7. Hiring outside contractors to ride the dead
horse.
8. Harnessing several dead horses together to
increase speed.
9. Providing additional funding and / or train-
ing to increase dead horse's performance.
10. Doing a productivity study to see if lighter
riders would improve the dead horse's per-
formance.
11. Declaring that as the dead horse does not
have to be fed, it is less costly, carries lower
overheads and therefore contributes sub-
stantially more to the bottom line of the
economy than do some other horses.
12. Rewriting the expected performance
requirements for all horses.
And of course...
13. Promoting the dead horse to a supervisory
position!
If you understand the above, then you are obvi-
ously a South African. (and if you are now
singing "Rolux Magnummmm", you have been
watching SABC a looong time!)
For my East Rand mates:A small zoo in Brakpan acquired a very rare species of gorilla. Within a few weeks
the gorilla, a female, became very difficult to handle. Upon examination the vet
discovered the problem. The gorilla was in season. To make matters worse there
was no male gorilla available. Pondering over their problem the zoo-keeper
thought of Frik van Wyk, a local lad and part-time worker responsible for clean-
ing the animal cages. Frik, like many of the Brakpan men-folk, had little sense
but possessed ample ability to satisfy a female of any species. The zoo-keeper
thought they might have a solution. Frik was approached with a proposition.
Would he be willing to mate with the gorilla for R5000? Frik showed some inter-
est but said he would have to think the matter over carefully. The following day
he announced that he would accept their offer, but only under 4 conditions:
“First”, Frik said “I’m not going to kiss her on the lips!” The keeper quickly
agreed to this condition. “Second”, he said, “You can never tell anybody about
this.” The keeper again readily agreed to this condition. “Third” said Frik “I want
all the babies raised as WP supporters.” Once again it was agreed. “Fourth and
last of all, “Frik said, “You’ll need to give me another week to come up with the
R5000.”
Poor old Toyota. It looks like theirglobal recall campaign will have tobe expanded to Namibia, now that
the authorities have discovered thattheir fork lift trucks are pulling to
the left.
Answer from page 6
After Monday and Tuesday even the calendar says W T F!