Automotive Business Review April 2010

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12 Counterfeiting 24 Show and Tell 38 Flower Power 43 Tyre Deniers 52 bottled Horsepower 77 New Challenges Official Mouthpiece of

description

A refreshing and upbeat monthly review of the automotive industry, from A to Z. Written and presented in a clear, crisp, anecdotal style, imparting information to the busy automotive executive in easily digestible bytes; What you need to know, and not necessarily what you want to know!

Transcript of Automotive Business Review April 2010

Page 1: 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

Page 2: Automotive Business Review April 2010
Page 3: Automotive Business Review April 2010
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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.

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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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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

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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.

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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.

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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)

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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

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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

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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.”

Page 19: Automotive Business Review April 2010

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.

Page 20: Automotive Business Review April 2010

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.

Page 21: Automotive Business Review April 2010
Page 22: Automotive Business Review April 2010

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

Page 23: Automotive Business Review April 2010
Page 24: Automotive Business Review April 2010

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

Page 25: Automotive Business Review April 2010
Page 26: Automotive Business Review April 2010

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

Page 27: Automotive Business Review April 2010

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

Page 28: Automotive Business Review April 2010

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

Page 29: Automotive Business Review April 2010
Page 30: Automotive Business Review April 2010

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

Page 31: Automotive Business Review April 2010
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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)

Page 33: Automotive Business Review April 2010

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)

Page 34: Automotive Business Review April 2010

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

Page 35: Automotive Business Review April 2010

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

Page 36: Automotive Business Review April 2010

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...

Page 37: Automotive Business Review April 2010

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

Page 38: Automotive Business Review April 2010

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

Page 39: Automotive Business Review April 2010

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.

Page 40: Automotive Business Review April 2010

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

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Page 44: Automotive Business Review April 2010

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.

Page 45: Automotive Business Review April 2010

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!

Page 46: Automotive Business Review April 2010

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?

Page 47: Automotive Business Review April 2010
Page 48: Automotive Business Review April 2010

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.

Page 49: Automotive Business Review April 2010

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

Page 50: Automotive Business Review April 2010

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

Page 51: Automotive Business Review April 2010
Page 52: Automotive Business Review April 2010

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

Page 53: Automotive Business Review April 2010

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

Page 54: Automotive Business Review April 2010

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

Page 55: Automotive Business Review April 2010
Page 56: Automotive Business Review April 2010

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

Page 57: Automotive Business Review April 2010

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

Page 58: Automotive Business Review April 2010

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

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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:

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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

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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.

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63A P R I L 2 0 1 0

Page 66: Automotive Business Review April 2010

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

A P R I L 2 0 1 0

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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:

Page 68: Automotive Business Review April 2010

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

Page 69: Automotive Business Review April 2010
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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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A P R I L 2 0 1 070

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.

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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

A P R I L 2 0 1 072

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

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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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U p d a t e

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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U p d a t e

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

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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.

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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

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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

Page 81: Automotive Business Review April 2010

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.

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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!

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