38 The OYLEY Price of Oil40 Truck Shows – a Thorny Issue58 AAMA Alert73 Marching to Pretoria86 The Tree Bears Fruit90 Information on AARTO

The point of this editorial is that for the sake

of our economy our vehicles need to keep

moving. Taking this a little further, every-

thing needs to keep moving, and there is

no better illustration of the damage inflict-

ed when things stop moving than the

absolute frustration experienced and the

concomitant drop in productivity when we

bear the brunt of rolling blackouts, courtesy of Eskom. With

Eskom, we have no

option but to bite the

bullet and put up with

the pain, plus the added

insult of ludicrous price

increases. A painful

crash course in the ben-

efits of competition,

and the dangers of

monopolies and state

intervention. But this is

not an Eskom bashing

exercise, as they do the

job very well themselves. We are looking at the transport industry

and personal mobility, and the need to improve the status quo.

No sane person would ever suggest that the automotive aftermar-

ket is uncompetitive. Our cover story plus our insert in this issue

of Automotive Business Review illustrates the point comprehen-

sively. When it comes to fighting for the heart and soul of the

automotive customer, AutoZone and Midas are the two gorillas in

the room, but there are many other players, of various sizes, and

various flexibilities, who keep these gorillas on their toes. It is an

extremely competitive environment, which is good news for the

consumer, and good news for the economy. And it is an extreme-

ly dynamic segment, with fluidity and positioning being the name

of the game, ever since I started taking notice some 35 years ago.

Both AutoZone and Midas are currently going through a change

of ownership, which has generated much speculation and more

than a passing interest from the competition authorities. An

unhealthy obsession, in my mind, considering the other more

pressing uncompetitive sectors in our economy, but I suppose that

easy targets make one look proactive and relevant. Take our traffic

authorities, for example. But I digress, once again.

Our vehicle parc is paramount to the efficient working of our

economy, and it is my assertion that it is being well served by the

various players in the industry, from the front line of workshops,

spares shops, specialists, service providers, and the like, right

through to the motor manufacturers, who start the cycle. And

feeding this front line are the importers and distributors of parts,

and there is space for all

who deliver. If you

analyse these compa-

nies, you will see that

they all talk the same

language, of implemen-

tation. They are fiercely

competitive, fiercely

independent, and fierce-

ly proud. They are the

pockets of excellence

that Clem Sunter refers

to in his optimistic sce-

nario of South Africa’s prospects, and the most common thread in

their endeavours is cost reduction, which allows for margin reduc-

tion and affordability for those at the bottom of the feeding chain.

Affordability is a key issue for the South African motorist, and this

has also created dual markets; the premium high quality market,

and the cost conscious market, but also with the need for an

acceptable level of quality. This is the fine balance and the thin red

line that the distributors have to walk as they strive to satisfy diver-

gent interests. And they are under constant attack from the fly by

night characters and less ethical operations, but the soon to be

introduced Consumer Protection Bill will cramp the style of these

vultures.

2010 will see a new landscape, and a new dynamic, but the wheels

will keep on moving, thanks to the Herculean efforts of the auto-

motive aftermarket industry.

T h e P h o e n i x

N o v e m b e r 2 0 0 92

w w w. a b r b u z z . c o . z a

Keeping 35 Million Wheelson the RoadEstimates vary, but there is general consensus that South Africa’s car parc is closeto reaching nine million vehicles, and that these vehicles need to be serviced andmaintained at the highest level possible. There is also no definitive average age forthis car parc, as estimates once again vary. The lowest realistic estimate is aroundnine years, whereas the highest credible estimate is touching twelve years. Based onthis, ten years would seem to be the happy medium. Considering that the sweet spotfor the automotive aftermarket industry is in the four to twelve year old bracket,these figures make for some mouth watering statistics.

Which is the better scenario, from the consumer’s point of view?

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88 3232 3434

4

The publisher and contributors have done their best to ensure the accuracy of the articles and cannot accept responsibility for anyloss or inconvenience sustained by any reader as a result of information or advice in Automotive Business Review. The informationprovided and opinions expressed in this publication are provided in good faith and do not necessaraly represent the opinion of thepublisher. No article may be reproduced in any form without the prior written permission from the publisher, except for the quota-tion of brief passages in reviews.

2 The Phoenix Keeping 35 Million Wheels on the Road

6 What’s the Buzz

14 Cover Story AutoZone – not just a business

18 Auto Topical No Need to be Passive about Forex Risk

20 Frankly Speaking SA’s Motor Industry – Some Food for Serious Thought

22 Engine Remanufacturing Why Remtec?

24 AIDC AUTOMOTIVE INDUSTRY CONFERENCE 2009

36 The Chery Story New Chery J1 Packs a Big Punch

38 Tony’s Take The OYLEY Price of Oil

40 Weighty Issues Truck Shows – a Thorny Issue

42 Health Care An Update on Moto Health Care

44 MISA Update Statement to Contributors

46 Schaeffler Shorts The Timing is Right

52 Tyre Safety Tyres’ Contribution to Safety in Motoring

54 Diamond Dialogues Opening the Doors of Perception to Standards andControls

56 Personal Profile Q & A with Darryl Jacobson

58 AAMA Alert A Volatile Rand

60 Customer C.A.R.E. Customer Relationship Management

Trilogy Customer C.A.R.E. Programme

Publishing Editor

Graham Erasmus

083 709 8184

Commercial Vehicle Editor

Alwyn Viljoen

082 458 9332

Intelli-Driving Editor

Eugene Herbert

082 941 3785

Correspondents

Beeton, Frank

Borlz, Baron Claude

Burford, Adrian

Gamble, Austin

Hogg, Gilbert

Keeg, Howard

Macaskill, Richard

McCleery, Roger

Twine, Tony

Wilde, Fingal

Published by:

Trilogy Publishing

Advertising Sales:

Marlene Erasmus

082 837 2668

e-mail bigheart2@iafrica.com

Stanton Porter Marketing

Tel: 012 654 2745

e-mail: abr@stanport.co.za

C o n t e n t s

5N o v e m b e r 2 0 0 9

5858 7878 8787

Editorial Office:

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66 AIDC Quiz

67 Show Time Schramm confirmed as keynote speaker for TyrexpoAfrica 2010

68 Robert Bosch ESP® Basics

The Golden Triangle

70 Capricorn Insights An Effective Marketing and Sales Tool

73 e-CAR Marching to Pretoria

74 Midas Moment Midas NAPA Convention ends on Emotional Note

76 Launch Technologies Launching Customers for Life

78 Partinform Algoa Bay Welcomes Partinform

82 Commercial Vehicle Update South Africa’s Toughest Warrior

83 Green News Going slowly, but going somewhere

84 Life Goes On Power GM Trio Briefs the Media

85 Corporate Conscience Midas Scores Way Above Par

The Tree Bears Fruit

SABAT Hosts 7th Annual Power Wheelchair Race

88 Show Time First HeavyWeight Expo

90 Intelli-Driving Information on AARTO Implementation

92 From the Cockpit Highveld Storm Washes the Blues Away

94 Fast Wheels Another Close Finish to the Formula One

95 The Last Writes

Official Mouthpiece of

5

TYRE FITMENTCENTRES

Bridgestone South Africa has remindedmotorists to only use reputable fitment centres andbe aware of safety-critical aspects when having newtyres fitted. Romano Daniels, General Manager ofGroup Communications and Marketing, said thattyres are safety-critical items which should only bemounted by properly-trained personnel. “Avoid thetemptation to use backyard mechanics or non-spe-cialists to fit your tyres,” said Daniels. “They maynot have the equipment or expertise to ensure yoursafety, and this could result in tyre failure.” Headvised motorists to consult with fitment centrestaff if there was any doubt over the way the tyreswere to be fitted. In particular he said motoristsshould insist on the following: Renewing the tyrevalve at each tyre change; Correction of tyre pres-sure to manufacturer’s stated figure after mounting;Confirmation of correct wheel alignment to reduceunnecessary tyre wear; Correct fastening sequencewhen tightening wheel nuts or bolts; Correcttorque value of wheel nuts and bolts.

Not a Rolling StoneRacing driver Stirling Moss celebratedhis 80th birthday on 17 September2009. He drove for Mercedes-Benz inone season, 1955 – an unforgettableyear for the brand owing to the many,many triumphs. Though an accidentput an end to Moss’ career in 1962and he never succeeded in capturing aworld champion's title, he is regardedas a phenomenal driver. And to thisday he sees himself as an ambassadorof motorsport. Together with co-driver Denis Jenkinson he finished theMille Miglia in a time which stillstands as a record today: after10 hours, 7 minutes and 48 secondsthe silver-coloured car with "722" –the customary starting time of theMille Miglia – painted in red on it waswaved across the finish line as winner.

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N o v e m b e r 2 0 0 96

SKF’S FORZA RACING SPONSORSHIP - A SHARING OFVALUES & KNOWLEDGE

SKF South Africa’s sponsorship of Forza Racing is a perfect part-nership between two companies that are dedicated to offering supe-rior quality products, exemplary service, and a shared passion formotor sport. The SKF group has been involved in the FormulaOne Ferrari racing team for the past 62 years while the Forza slo-gan, ‘Ferrari…It is in our blood’ sums up the Forza Racing vision.SKF has, for over a century, maintained a powerful global positionas a leading specialist in rotating equipment and related technolo-gy. Forza Racing, Forza meaning strength, is South Africa’s premierindependent Ferrari specialist and the ‘Go To’ company for allFerrari owners and enthusiasts. Managing Director, Oscar deOliveira, who founded Forza Racing in February 2008, has had alove of cars from a very early age and he always managed to stayclose to the racing scene. Forza Racing and SKF share a number ofideals, “And” says de Oliveira, ”because we have so much in com-mon, the sponsorship deal is a winner for both companies. It is soimportant to choose the right partner in this game. There has to besynergies, common ground, a passion for this often cruel and veryexpensive sport; the SKF team brings all this to the table. This part-nership goes beyond the sponsorship of specialised bearings andrelated products. It is a sharing of values, knowledge, advice andtechnical expertise”. We also support annual fundraisers and auc-tions held by the Foundation. We have a very special dream to ful-fil in November, for one of the children from the Foundation”.

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

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N o v e m b e r 2 0 0 98

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

Renault South Africa aims for 110%

Renault South Africa has launched a powerful nationalcampaign, with the objective of upping service deliveryat dealerships nationwide to exceptional levels. Thecampaign’s implementation coincides with significantimprovements in Renault’s market share, and furthergains in sales volumes. The ‘110% Campaign’, whichwent public in October, will see all staff members atRenault SA’s head office, and especially Renault’s dealernetwork, go out of their way to make the sales, after-sales and service experience at Renault an exceptionalone. “While customers expect 100% in terms of serv-ice delivery, and rightly so, we want to go one step bet-ter,” says Tim Marriott, Vice President – quality andService, at Renault South Africa. “The 110%Campaign is aimed at ensuring that our dealershipsdeliver even more than expected.”

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

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Nissan Unveils Sketch of its Future Global Compact CarNissan Motor Co., Ltd. has revealed the sketch of its global compact car. Planned to bemanufactured in 5 countries, including Thailand, China and India, the model will befirst launched in Thailand in March 2010 and will be available in more than 150 coun-tries, including South Africa. “We aim to make an impact on the B-segment, the biggestmarket for passenger vehicles in South Africa” – says Mike Whitfield, Nissan SouthAfrica, MD. This major segment caters for first time car buyers or as a secondary modeof household transport. “We are confident that the new Nissan will offer a stylish, yetvalue for money package,” concludes Whitfield. Timing for local introduction will beannounced in due course.

YOUR NEWLYLICENSEDTEENAGER NEEDSEXPERT TRAINING In the latest available global statistics, SouthAfrica ranked the highest in the road fatality rateper 10 000 vehicles. A sobering enoughthought, but in October CARS (Committee ForMore Road Safety) revealed that a new studysuggests that our road death toll has been under-estimated by more than half. While theDepartment of Transport gives a figure of 10000 each year, CARS says in reality it is nearer18 000. So, if your first experience of handingover the keys to your newly licensed teenagerwas more one of panic than mere trepidation,know this – you have every right to be con-cerned. Grant McCleery, a multiple SA motorsport champion, who heads up YokohamaDriving Dynamics, has been teaching specialiseddriving skills for nearly two decades and in hisopinion, every man, woman and especiallyteenager, needs more than just basic driver train-ing to ensure their safety on our roads.

He says “The K53 driver training system is agreat way to learn the basics but you need moresophisticated skills to deal with the unexpected,like avoiding collisions, regaining control ofyour vehicle, recovering from aquaplaning, oreven just braking properly in an emergency.Don’t make the mistake of thinking of theseskills as the exclusive domain of racing drivers.You child needs to know this stuff if he or she isgoing to get around safely on our roads.”Yokohama Driving Dynamics has forged analliance with General Motors South Africa as itspreferred vehicle supplier, to ensure that clientsget the very best instruction in quality drivingand safety. The fleet of cars includes Corsa OPC,Chevrolet Lumina, Aveo’s and Optra’s and thenewly launched Cruze. Yokohama DrivingDynamics is based at Gerotek and also offers itscourses at a variety of venues, countrywide. Formore information, contact the company on011-431-2000 / info@drivingdynamics.co.za orvisit the website on http://www.drivingdynam-ics.co.za/

SOUTH AFRICA’S FIRST LIVE24/7 DEDICATED ONLINE CARAUCTION SITE LAUNCHEDOnline Car Bid - www.onlinecarbid.co.za -South Africa’s first live 24/7 dedicated online carauction website, launched early in October.Through Online Car Bid, consumers and deal-ers will be able to buy or sell vehicles via anonline auction process, which the company’slocal founders believe will revolutionise the localcar sales industry. Online Car Bid has alreadysecured partnerships with several of the coun-try’s largest dealerships and consumers will beable to bid on an extensive range of used vehiclesacross all price ranges. Reserve prices, whichreflect the minimum price that sellers will bewilling to accept, start at as little as R1. At theother end of the spectrum, multi-million randvehicles will also be available to bid on. OnlineCar Bid is the world’s first online car auctionwebsite to offer a full auction house service,backed by a qualified and dedicated nationalsales team of Auction Ambassadors, who aretrained to provide a transparent, safe and profes-sional service to all clients. “Our AuctionAmbassadors act as a ’middle man’, providing allbuyers and sellers with a sales representative withwhom they can liaise and who will assist witharranging safe meetings and test drives to ensurethe security of both parties,” says GeneralManager of Online Car Bid, Simon Nainkin.

BEWARE OF MULTI-MILLIONRAND SCAMS IN USED CARINDUSTRYCriminals are coming up with increasingly devi-ous ways of parting used car buyers with theirmoney. Sadly, more and more South Africans arefalling prey to these fraudsters, losing millions ofRands in the process. This sobering news iscourtesy of Darryl Jacobson, Managing Directorof Burchmore’s, who warns that buyers need tobe extremely cautious when acquiring a used car.“While most used car buying experiences aregood ones, we are hearing of new scams daily,”he reveals. “Generally they have one feature incommon: the buyer is being offered an unbeliev-ably good deal.” Jacobson says that these “unbe-lievably good deals” need to be scrutinised overand over again. “If you’re about to buy a used carat a ridiculously low price, ask yourself why this

is happening to you. Why would you alone beprivy to such an exceptionally good deal? Whyare you so lucky? Chances are excellent thatyou’re about to be scammed,” he warns. Thefraudsters are becoming increasingly creative,and Jacobson reveals that they may pose as anagent or staff member at a used car retailer orbank. “They are extremely convincing andappear authentic, and it’s relatively easy for themto dupe trusting members of the public. Theirschemes are both innovative and sophisticated,”he notes.

MIDAS / IMPERIAL DEALGAINS COMPETITION BOARDAPPROVALThe penultimate hurdle in the 56% acquisitionof the Midas Group by Imperial HoldingsLimited has been successfully negotiated; it wasannounced on 8th October 2009 by GordonOdgers, CEO of the Midas Group. Thisannouncement follows the recent unconditionalapproval of the transaction by the CompetitionBoard, which clears the way for the proceduralformalities of due diligence and obligatory legalprocesses, as required to finalise the deal. Thisannouncement also puts to bed months of spec-ulation around the merits and prospects of thetransaction. Imperial Holdings Limited had pre-viously approached the Midas Group with aview to acquiring a majority stake, as they sawopportunities and synergies for both Midas andImperial. Imperial places great store in the finan-cial performance and the strong position ofMidas in the automotive aftermarket, and alsorespects the business model, culture and man-agement team of Midas, and it is on this basisthat Imperial has committed to keeping thesestructures in place, and in retaining the uniqueshareholding of the balance of shares, i.e. man-agement, member franchisees and empower-ment partners. Gordon Odgers emphasises thatMidas is a sound Group illustrating long-termgrowth and cash generation off a solid platformof well established franchises with a nationalfootprint. He continues, “The transaction willprovide a big brother for the Midas Group, willfit the Imperial strategy perfectly, unlock certainmanagement and member franchisee sharehold-er matters and enable other opportunities to beembraced and as such has received unanimousshareholder and board support.”

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W h a t ’ s t h e B u z z ?

SA Women vote Suzuki Jimny Tops

The pocket-sized Suzuki Jimny 4x4 has kicked dustin the headlights of many of South Africa’s fanciedall-terrainers by taking the category laurels in anannual Car of the Year contest voted for exclusively bywomen. The 2009 Women’s Car of the Year Awardsare organised annually by the Women on Wheelsmotoring supplement. The supplement is edited byseasoned motoring journalist Charleen Clarke, andpublished in Cosmopolitan, Marie Claire, Oprah andHouse and Leisure magazines. The Jimny, whichquickly established an enviable reputation as a big-hearted, agile and affordable all-terrainer, after beinglaunched in SA in September last year, was one of 10finalists in the 4xFabs category of the contest. Thisyear’s panel of judges consisted of Clarke, togetherwith fellow motoring scribes Helene Griffiths andPeta Lee, as well as current affairs anchor FenleyFoxen . In addition, readers of the supplement wereinvited to vote for their favourite choice in each ofeight categories.

Volvo Cars on themove towards afuture withouttraffic accidents

In the quest for the ultimatevision of an accident freetraffic environment, VolvoCar Corporation's boldshort-term target is that noone will be killed or injuredin a new Volvo car by 2020."Zero is the one and onlyalternative for us. As theleader in car safety we can'taccept that people are killed or injured just because they want to transport themselves from A toB," says Jan Ivarsson, head of Safety Strategy at Volvo Cars. If we see an aircraft crash it's a disas-ter that we remember forever. But when passing a traffic accident where someone may have beeninjured or killed, people are often more concerned with the delay in traffic. It is this attitude, thattraffic accidents are an inevitable part of our daily lives, that Volvo wants to challenge with itsVision 2020.

World's first emission-free foundryAs from 2010, BMW’s Landshut plant willboast the world’s first foundry with emission-free sand core production. The light-alloyfoundry at the BMW plant is introducing anew sand core production method for gravitydie-casting, whereby conventional organicbinders will be replaced by highly eco-friendlyinorganic binders, which generate virtually nopollutant emissions. The introduction of thisinnovative production method will allow thelight-alloy foundry to reduce its emissions ofcombustion residues by 98 per cent. The plantwill completely decommission its current wasteair treatment systems by 2010.

AA South Africa pledges supportfor Jean Todt FIA Presidential bid

The Automobile Association of South Africaannounced before the voting that it would sup-port Jean Todt in his bid for the FIA presiden-cy. “FIA affiliated auto clubs worldwide, repre-senting 100 million members and the wellrespected auto club brands, face unique chal-lenges in areas as diverse as the environment;road safety; road usage and infrastructure and

tourism. The FIA is going to require an excep-tional leader with vision to respond to theneeds of the mobility industry.” said KarenBryden, Managing Director. The electionresults will be available before this magazinehits the desks, so go to www.abrbuzz.co.za toget the results.

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13N o v e m b e r 2 0 0 9

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

To thank all their loyalcustomers for making theCaddy Panel Van No.1 inits class, VolkswagenCommercial Vehicles andOgilvy Cape Town haveinitiated the Caddy PanelVan Branding Challenge.

The campaign is geared at acknowledging that the suc-cess of the Caddy Panel Van Range is largely due to theentrepreneurs and owners of small and medium busi-nesses who have chosen a Caddy Panel Van as theirbusiness partner. Tapping into the entrepreneurial spir-it, creativity and passion that the Caddy owners havefor their business, Volkswagen’s agency of over 30years, Ogilvy Cape Town, in collaboration with theirOgilvy Interactive team, created the Caddy Panel VanBranding Challenge. The campaign engages the cre-ative side of these entrepreneurs through the use of aninteractive microsite (www.vwcommercial.co.za/desi-gnacaddy). The site gives them the opportunity to winpersonalised vehicle branding for their Caddy PanelVan to the value of R30 000, thereby making theirhardworking Caddy Panel Van work even harder fortheir business.

Timken South Africa wishes to congratulate HennieGroenewald for winning his fourth successive WesBank

V8 Supercar Championship in stunning style atKyalami on the 17th October 2009

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N o v e m b e r 2 0 0 914

not just a businessAutoZone, Africa’s largest engine and service parts and accessoriesretailer and distributor, offers more than simply a wide range of aftermar-ket parts to service the market, AutoZone also offers a service to the market that is unrivaled in the market place. This October, AutoZone hada number of reasons to celebrate, most important of which was the factthat it was AutoZone’s Birthday!

This dynamic business began with 30 multi-branded

stores over 10 years ago. The brands under the

umbrella ranged from Eddies, Elpar, and AutoZone

to Femo and Spareslink. This posed some challenges

in the AutoZone stable, as the business had no criti-

cal mass in terms of power with which to market this wide range

of brands. The re-branding and expansion journey for AutoZone

began in 2002 as we embarked on a journey to collapse all the

brands into one powerful brand, namely AutoZone. Now in 2009

as we sit and look back a couple of years, we saw the successful

launch of the AutoZone Member model in September 2005, the

expansion to a footprint of 90 wholly owned stores and an incred-

ible team of over 2000 people who form part of the AutoZone

Family. We also saw the evolution of a business and service in this

market that are truly unique and a business with a personality we

are proud of and are committed to growing.

Core to AutoZone is our Customer – no matter how big or small

they are, whether they are a long standing customer or the cus-

tomer who walks through our doors for the first time simply to

shop – and as such our offering to the Customer is crucial to our

success going into the future. AutoZone, Africa’s largest engine and

service parts and accessories retailer and distributor offers a com-

prehensive range of engine parts, service parts and accessories for

passenger as well as light and heavy duty vehicles in the South

African market. This range comprises of products from another

important stakeholder in AutoZone’s success, our local suppliers,

and is bolstered by the AutoZone House Brand programme. Our

commitment to our local suppliers remains unwavering and it is

through commitment and strategic relationships with these suppli-

ers that we will be able to continue focusing on offering the best

available product to our customers.

Having established and bedded down our core offering, AutoZone

strongly believed that there was still more they could do for their

customers in the market. As such the AutoZone House Brand

programme was launched. Every single one of our 5 brands was

born from the mindset that we needed to offer our customers a

genuine alternative product that is cost efficient. These brands,

namely Ampro, AutoKraft, Ecotech, Femo and Spirex, comple-

ment the local brands in the offering and make it unnecessary for

customers to look anywhere else to satisfy their product needs.

Spirex – Spirex is AutoZone’s range of top quality automotive hard parts

and chemicals. This range of reliable, top quality products is affordable

and inclues a wide range of products from brake pads, brake drums, fil-

ters, wheel bearings, fan belts, batteries and C.V. joints to oils and other

chemical additives.

C o v e r S t o r y

15N o v e m b e r 2 0 0 9

AmPro - AmPro tools are a comprehensive range of top quality tools,

designed to last a lifetime. In fact, we have so much faith in AmPro Tools,

that we back them with a Lifetime Warranty! This incredible range of

tools is individually selected to ensure that AutoZone has every tool

required for both the professional and the D.I.Y handyman. The core cat-

egories for this range of tools includes socket sets and accessories, wrench-

es, screwdrivers, electric screwdrivers, pliers, specialty tools, and tool

chests. Why don’t you visit your AutoZone store today and stock up on

this top class range of tools?

AutoKraft - AutoZone has developed an exclusive range of accessories,

all under the AutoKraft range. These range from core categories such as

camping and outdoor equipment, to workshop equipment. This world-

class range even includes custom car accessories such as car seat covers and

wheel covers, all backed by our Hassle-Free returns policy.

Ecotech - The Ecotech range from AutoZone covers all automotive elec-

trical products, and caters for all types of vehicles from passenger vehicles

to light and heavy duty commercial vehicles. This range of exclusive prod-

ucts is the largest and fastest growing range of top quality electrical prod-

ucts available. The Ecotech range includes products such as starters, alter-

nators with their respective components, trailer plugs and sockets, electri-

cal terminals, and on/off road lighting. AutoZone ensures that all Ecotech

products are quality tested and vetted, ensuring that you get the most up

to date technology, without paying inflated prices. AutoZone backs this up

with their 12 month “hassle-free” warranty, offering you peace of mind.

Femo - Femo is a top quality range of internal and external engine com-

ponents, designed for a wide range of vehicle makes and models. This

broad range includes piston rings, valves, bearings, sleeves, water pumps,

fuel pumps and much more. The entire Femo range is also covered by

AutoZone’s 12 month No-Hassle Returns Policy.

The AutoZone House Brands include:

N o v e m b e r 2 0 0 916

• Technical Team – more affectionately known as “The Pit

Crew”, this team of people offer free technical and fitment

advice to all our customers. This team is available from 7am

to 7pm, 7 days a week on a toll free number 0800 200 993.

• 24 Hour Call Centre – the call centre is a hub of communi-

cation for AutoZone – whether it be in the form of inbound

calls from customers who need assistance and direction

or outbound campaigns to assess our levels of service to

our customers. Our Call Centre can be contacted 24/7 on

086 11 22 111.

• We guarantee everything we sell, no hassle! – AutoZone

is proud of what we sell and stand behind everything we sell.

AutoZone is committed to always offering the best and

providing an excellent service overall to our customers which

includes an after sales service that is not equaled in the

market.

• V.I.P. Cash Customer Programme – AutoZone believes in

looking after all of their customers, not only the trade or

account customers. If you are a cash customer at any

AutoZone store, then you are eligible for the AutoZone VIP

Card. This card gives cash customers the ability to earn points

and redeem them for exciting products. The best part is that

this card is absolutely free of charge!

• Dedicated team programmes, retail management develop-

ment curriculum and a programme to grow AMBASSA-

DORS in our business and build our AutoZone family.

• Independent Spares Shops: Our pipeline to success –

These valued customers have supported AutoZone through

various changes in ownership and name, and continue to sup-

port us. The independent spares shops are an essential aspect

of our business success and we are committed to offering

them the best parts and service at all times.

With the right products in the right places to satisfy our customers,AutoZone set about getting to know all of our customers and defining whatelse AutoZone could offer all of our customer types. These key ingredientswould differentiate AutoZone from other players in the field. From thissearch for new offerings came the birth of a number of industry firsts:

17N o v e m b e r 2 0 0 9

Thinking about the future, the AutoZone business is committed to overall excellence ineverything we do for our customers – excellence in product, excellence in relationships,excellence in service and excellence in the AutoZone Family. No matter whether you arean engineer, workshop, fitment centre, independent spares shop or an at home D.I.Y.mechanic, next time you need a part, why choose anyone else? AutoZone is not just abusiness, become part of this Family, enjoy our phenomenal service!

At the AIDC Automotive Industry Conference 2009, held in Port Elizabeth early in October, an old topic of indus-try indigestion surfaced once again. It takes the form of dissatisfaction regarding the high level of instability ofthe foreign exchange value of the Rand, and appeared to be particularly troublesome to local producers of com-ponents trying to penetrate export markets. One can see their, and any other South African exporter’s point. Apartfrom the rolling cycles and sharp random movements that can be seen in the indexed Rand prices of currencieson a month end observation basis over long periods of time, depicted in the accompanying graph, the hurly-burlyof even single day trading ranges can make or break anything resembling a profit margin on any deal. A recentexample of this was the 24th October 2008, the day during which the crude oil price fell back below $60 per bar-rel after climbing to $147 on 4th July that year. On that day, the Rand opened trading in South Africa at R10.91to the US Dollar. By around lunchtime, it had touched R11.76, before returning to close at R10.26.

A u t o T o p i c a l

N o v e m b e r 2 0 0 9

Of course, the Rand has not

been the only currency with

significant levels of volatility

on a daily, weekly, monthly or

even annual basis during recent years.

Since it came into existence a dozen years

ago, at an initial exchange rate of $1.14 to

the Euro, the European currency has been

as low as $0.76 and as high as $1.48. The

example quoted above of Rand volatility

would have been bad enough if the Dollar

was the only currency in the automotive

trading mix, but other currencies tend to

move in directions that either compensate

or exaggerate the movements in the

Rand/Dollar rate over any period of time.

While that may appear to be a complicat-

ing factor at first glance, it may supply at

least part of a solution to the volatility

problems facing automotive component

exporters in particular, South African

exporters in general, when it comes to try-

ing to plan export pricing strategies that

will simultaneously be viable back home

and attractive to overseas customers. It

seems unlikely that any sudden medium or

long term stability will return to global

currency markets in the medium term

future, so the only answer for local

exporters is to use apparent disadvantages

to your maximum advantage.

The point is that exporters, at least for a

time, have assets that are denominated

outside of the Rand, and therefore the

controls of the authorities within the Rand

monetary area, namely the SA Reserve

Bank. As long as the asset is legally outside

of these controls it can be traded for other

currencies, which can act as a type of

hedge for the local exporter, until it is nec-

essary to bring the asset home, requiring it

to be converted to Rands. For decades, the

South African business man was not

expected to have these kinds of skills. As a

result, very few of them today have the

time or information resources, or indeed

the skill, to maneuver successfully around

international foreign exchange markets, let

alone other asset markets that may be nec-

essary to hedge against losses of value of

currencies in general. But there are spe-

cialists who can either advise or transact on

behalf of clients, often starting with an

exporter’s own bank.

At its heart, foreign exchange exposure for

any business with either import or export

interests, and sometimes both, is really just

another risk. Even within the constraints

of foreign exchange controls, South

African exporters have plenty of tools to

help turn possible overwhelming risk into

profit. We cannot expect the world to give

us a flat line exchange rate against any cur-

rency, but we can use the lumps and

bumps to our advantage.

by Tony Twine

NO NEED TO BE PASSIVE

ABOUT FOREX RISK

18

SA’s Motor Industry:Some Food for SeriousThought

F r a n k l y S p e a k i n g

The general reaction to the APDP was positive,

endorsing its key elements of stable and moderate

tariffs, a Local Assembly Allowance for manufactur-

ers producing more than 50 000 units per annum, a

tradable Production Incentive providing duty credits

for local value added, and an Automotive Investment Allowance

amounting to 20% of project value. Early in October, however,

NAAMSA president David Powels, who also happens to be the

Managing Director of Volkswagen South Africa, made some inter-

esting comments at the SA Automotive Week conference in Port

Elizabeth. In a nutshell, he identified problem areas with respect to

low levels of local content, uncompetitive local logistics costs, and

government policy uncertainty. He predicted that, if these were

not addressed, the local motor industry may not survive beyond

the next seven to ten years.

How things have changed! Back in the bad old days of the Local

Content Programme, any suggestion that the local percentage

should be INCREASED would have been met with horror. The

problem with that mass-based programme was that to achieve a

higher local content level meant localising ever more complex

components and assemblies, with accompanying escalations in

the amount of investment needed. There was also the situation

where overseas plants may have been happy to delete increasing

numbers of components from their packing cases, but they cer-

tainly did not delete their profit margins from the accompanying

invoices! The South African vehicles may have been “protected”

by stiff tariff barriers, but the final price paid by the customer in

Eloff Street Extension became extremely high by world standards.

This call for higher local content must reflect the greater export-

orientation of the present industry, which has been fully integrat-

ed into global supply networks by its overseas parents. Cars

required only for local consumption under the APDP would sure-

ly be most effectively provided by some mix of local assembly,

low-tech local component sourcing and, as I previously suggested,

inter-brand co-operation to get the full benefit of the 50 000 unit

Local Assembly Allowance. The current pricing scenario does not

provide any clear distinction between imported and locally built

cars, despite the 30% import duty on fully built-up imports. It

seems logical that shipping in containers of Completely Knocked

Down components should always be more cost-effective than

shiploads of Fully Built Up Cars containing large volumes of very

expensive air! Surely, under these circumstances, local assembly

will always beat FBU imports, irrespective of the level of local

content.

Volkswagen SA has enormous experience of both importing and

exporting cars, so David Powels clearly knows something about

optimum local content levels that I don’t. I am quite happy, how-

ever, to accept his position on the competitiveness of local logis-

tics costs, and the lack of finalization of the APDP, which still

needs fleshing out in the area relating to component exports, and

in particular catalytic converters. This latter situation must be of

great concern to an industry subject to long decision lead-times.

The present government does not have a good track record when

it comes to reacting fast, and I think that the main message on

offer here is that it should not consider the continuing existence

of a local motor manufacturing sector as fait accompli. The

increasing militancy of local labour, and its propensity to strike,

will also not endear it to the overseas principals of local operations

who are desperately chasing viability in an increasingly more com-

petitive world market.

While there may be some qualitative issues that are currently pre-

venting Indian and Chinese manufacturers from dominating the

world stage, we can rest assured that these will not be around for

long. Once the burgeoning domestic Asian markets have been sat-

isfied, and start to stabilise, manufacturers in those countries,

with or without the co-operation of the major Western and

Japanese firms, will start to look very much more seriously at their

export prospects. Tata already has manufacturing capacity in

South Africa, and several other “investigations” into local assem-

bly by Chinese and Indian brands are proceeding. With their

huge domestic capacity, these companies will not invest in South

Africa unless the local industry, and its supporting logistic struc-

tures, can achieve world-class standards of efficiency, reliability,

quality and cost. They also do not have long histories of giving in

to the demands of militant unions, or providing social comfort to

their workers. This is something that local politicians and labour

leaders would do well to remember.

by Frank Beeton

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

N o v e m b e r 2 0 0 920

E n g i n e R e m a n u f a c t u r i n g

N o v e m b e r 2 0 0 922

Why Remtec?When it comes to replacing an engine, the question is what is the best option? A newengine for a vehicle that is over five years old is most probably out of the question,because of the relative values. The answer seems to be a remanufactured unit, but atwhat risk? You get remanufactured and remanufactured, so you need some reassur-ance before parting with your hard earned cash. How do you play it safe? With Remtecyou play it safe.

Remtec is basically an OE remanufacturing facility, as it

was originally the Volkswagen Remanufacturing facili-

ty, and renamed Remtec Manufacturing when

purchased by a Port Elizabeth based group in July

1995. With the majority of staff taken over at the time of

purchase, the OE genes are still there, and Remtec is now the

exclusive supplier of remanufactured engines to VW of SA,

General Motors South Africa, Ford Motor Company of Southern

Africa, Nissan South Africa and Land Rover South Africa. Thus

purchasing a Remtec engine comes with a significant pedigree,

which is great news for the greater automotive aftermarket.

With vehicle sales in a slump, and motorists hanging on to their

cars for longer, the demand for remanufactured engines is sure to

climb over the next few years, and automotive workshops will

need to satisfy this demand with reliable engines and a promise of

peace of mind. Remtec provides this. With their exchange policy

which keeps turnaround time to a minimum, a passionate com-

mitment to quality, the building of all units to OE specs, nation-

wide technical and warranty support, and a modern facility that

can handle increased volumes, Remtec is well placed to efficient-

ly handle the expected boost in demand. The demand has already

ratcheted up, and thus Remtec is in the fortunate position to

report that it has not had any retrenchments during the current

economic downturn. There are other benefits for the trade.

When fitting a remanufactured engine at such reasonable prices,

the workshop gains a customer for life, and that customer will be

back time and time again, for services, tyres, brakes, and more.

There may be cheaper engines out there, but they are practically

guaranteed to be inferior, as Remtec has access to original parts at

competitive prices, and these are unlikely to be matched by other

rebuilders, unless they are buying down. Remtec’s quality is now

internationally renowned, and they have a growing export

business. Join the global Remtec family, because you should not

be asking why, you should be asking why not?

David Pitt, Managing Director of Remtec Manufacturing, standsnext to an engine ready to be shipped to another satisfied customer

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

24

Much Brouhaha over aPhantom Bailout

The second edition of the bi-annual South African Automotive Week, held in Port

Elizabeth from 7 – 10 October 2009, came with some unique challenges. We use

the word “challenges” not because ABR loves the word (in actual fact we believe

this is one of the overused words in South African discourse at all levels) but

because of the frequent use of this word by practically every single one of the

speakers at the AIDC conference. Maybe our attempt at incongruity backfires,

because this time the word was used with some justification.

As Andrew Binning, Chief Executive Officer of Inkanyezi

Event Organisers, the organiser of the event, put it in

his foreword to the Visitors’ Guide, “Planning over the

past two years has been complicated by one of the worst

global recessions in history. This has restricted international visi-

tors to the event.” An understatement of note, but Andrew did

have the opportunity to host the AIDC Automotive Industry

Conference as part of the week, which definitely was a master

stroke, and in the opinion of ABR, this event saved the SAAW,

and if we were Mr. Binning, we would be signing up this confer-

ence for 2011 right now. Another scoop was the appearance of the

much touted Joule on show, and hopefully when SAAW 2011

comes round, the Joule would have moved from concept to reali-

ty, and flying the South African flag both domestically and glob-

ally. Come rain or shine, ABR shall be there to reveal all.

The highlight of SAAW was, as we said, the AIDC Automotive

Industry Conference 2009, with some stimulating and insightful

presentations together with sharp repartee on the panel discus-

sions adding spice to an already loaded programme. ABR consid-

ers that the thrust and parries on display would have impressed an

Olympic fencer or even a busking sabre rattler. The first en garde

manoeuvre came from David Powels, President of NAAMSA,

whose day job is MD of VW. In his keynote address, titled “A

reflection on the first year of the economic crisis”, Powels took

government to task for not responding aggressively to the crisis,

unlike their international counterparts, who have introduced a

range of measures to assist their domestic beleaguered automotive

industries. He pointed out that whilst the global crisis began 12

to 18 months ago, the seeds of South Africa’s troubles started

three years ago, when vehicle sales hit a peak in 2006, based on a

heady mix of low interest rates, a strong currency, pent up

demand, and banks doing a credible impersonation of Father

Christmas. The industry geared up for a strong run of vehicle

sales, and therein lies the drama. With capital expenditure at

record levels, but sales back to 2003 numbers, it is feast or famine.

Thus the South Africa automotive industry is in a double bind,

having geared up for higher volumes, and now staring down the

twin barrels of a rather larger shotgun named recession and uncer-

tianty. The problem, according to Powels, and he stressed that he

was stating opinion rather than fact, is that current local content

is only at 35%, and that the challenge is to get this up to 70%

plus. Component manufacturers thus hold the key to the survival

of the industry, and of course government can play a role in this

dynamic. Another challenge is South Africa’s high cost base,

which is as much as 40% more expensive than countries such as

India and China. As if this is not challenging enough, South

Africa has the added burden of port charges 10 times higher than

China, and port productivity at shockingly low levels. Powels

called for more transparency and more collaboration from

Transnet, otherwise options such as the Maputo Corridor will

become increasingly attractive. He also appealed to government to

speed up the introduction of fuel quality standards, as our stan-

dards preclude the use of the latest engines, and thus the mooted

emission based tax is basically putting the cart before the horse,

and will unnecessarily increase car prices by two to seven percent.

As Powels put it succinctly, “Put enablers in place before punitive

taxes”. ABR translation: The emission tax is insanity! Powels

warned that the honeymoon period for South Africa is over and

that the silver bullets for survival are:

• Increased volumes per platform• Higher local content levels• Supplier competitiveness• Support from the IDC and programmes such as APDP

for an “Industrialisation Strategy”• Industry to improve productivity• Massive investment in training and skills development

The response from government, in the form of Deputy Trade and

Industry Minister Thandi Tobias-Pokolo, in her keynote address

the following day, was “frank and honest”, and that there would

be “no further funding for the motor industry”, as the South

African government did not have the finances to provide extra

money for the sector, as there were more pressing priorities, such

as social spending (ed’s note: and rather large defence contracts).

David Powels, President ofNAAMSA, warns that SouthAfrica must wake up to the reali-ty of international competition.He predicts the demise of theSouth African automotive indus-try within seven to ten years ifappropriate action is not taken inthe next 12 to 18 months.

N o v e m b e r 2 0 0 9

25N o v e m b e r 2 0 0 9

ABR gives its readers some incisive quotes gleaned from the interaction:

Vision 2020

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

Mcebisi Jacobs, MECEastern Cape Departmentof Economic AffairsEnvironment and Tourism

“Somethingmore robust isneeded”

Gavin Maile, Partner, KPMG Africa

“The industry does notwant a bailout – it wantssupport!”

Johan van Zyl, President &

CEO, Toyota Motors SA

“The world is notwaiting for SouthAfrica to play catchup. We are a can-donation, and we needto negotiate free

trade agreements with Egypt,Morocco, Nigeria, etc, not China!”

Stewart Jennings, President, NAACAM “The auto-motive component industry is in asevere crisis, and is a microcosm ofthe employment and manufacturingchallenges facing South Africa, butwe are facing an unsympathetic eco-nomic and government environment”

Brand Pretorius, CEO, McCarthy Holdings

“We are at a definingmoment of our history – thefuture is not an extension ofthe past”

Bailout?

Panel Discussions:#1 Vision 2020 – is it a reality or a fantasy?#2 Does the automotive industry deserve a bailout?

An excellent innovation at the Automotive Industry Conference was the introduction of panel discussions, involving industry heavy-

weights. This brilliant idea created inter-active participation and resulted in wide ranging discussions. After the discussions, the confer-

ence delegates got the chance to vote on the topics. The votes will not change the situation, but as a matter of interest, there were over-

whelming majorities in carrying the votes. Vision 2020, which is the target of 1,2 million vehicles manufactured in SA by 2020, was

perceived as a reality. Regarding the question whether the automotive industry deserves a bailout, the overall consensus was no! However,

the question was a little unfair, as no one in the industry is actually asking for a bailout – all that has been requested is assistance to see

the industry through troubling times.

N o v e m b e r 2 0 0 926

SAAW may start a new trend

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

Another trend that SAAW has already established is that it serves as a hook for other events. The AIDC chose SAAW

2009 for its annual automotive industry conference, NAACAM held its AGM during the conference, and a historic

breakfast for suppliers was hosted jointly by the major OEMs, simply because of the convenience of having all the major

stakeholders in the same place at the same time – government, OEMs, component suppliers, retailers, service organi-

sations, etc. It is for this reason that SAAW is the only national event supported by the three big industry associations;

NAAMSA, NAACAM, and the RMI.

27

Networking –Glitz, Glamourand Gala DinnersNetworking was the name of the game at SAAW 2009.Opportunities abounded to have one on one discussions,group meetings both formally and informally, and ofcourse the exhibition hall itself was the place to findthings old and new, and to meet and make businessfriends. And what is an automotive show without cars.

Matchmaking was an integral part of SAAW2009, and this was

facilitated by a Match-making Meeting Programme and the pro-

vision of Matchmaking Meeting Rooms, available all through the

show, from Wednesday 7th October to Saturday, 10th October.

The Gala Networking Dinner was also a great success, where

guests from across the spectrum could let their hair down, and to

network in a relaxed environment.

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HIV and AIDS Survey

The AIDC used the conference as an opportunity to conduct a

baseline study to get a snapshot view of the South African auto-

motive manufacturing companies’ awareness and responses to

the HIV and AIDS pandemic. The results of this survey will be

presented on a national basis, but disaggregated to show

employer responses per company size, skills level, and by

province.

N o v e m b e r 2 0 0 928

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

Supply Chain Development – Creating awinning global location strategy forSouth African automotive suppliers

Gavin Maile, Partner - KPMG Africa

Automotive Practice Leader, presented this

paper and he said that the cycle of globalisa-

tion of automotive supplier operations is

continuing, through suppliers expanding their operations across

borders, and even moving existing capacity across borders.

Despite this, or maybe because of this, this globalisation is done

in an ad-hoc fashion and cognisance is not always taken of both

the risks and opportunities, thus many companies exhibit a strat-

egy deficit. South African component suppliers can use an inte-

grated strategy that balances the competing drivers of growth,

costs, innovation and risks, and one that considers the advantages

and disadvantages of location decisions in the light of the intrin-

sic nature of a business.

Supplier Development – Tirisano Cluster ProgrammeAwards

The Tirisano (Working Together) Programme has been on the go

for quite a few years, and the results in cost savings and produc-

tivity gains have been impressive. Each year the AIDC presents

awards to the best performing companies, and this year was no

exception.

Skills Development and Training - Evaluating the SkillsGap towards realising Vision 2020

Johan Erasmus, Managing Director of Automotive Training

Academy, gave some startling statistics in his presentation. The

age profile of artisans and technicians in the industry is well over

50. Compounding this reality is the shocking estimate that only

9% of the 2008 matriculants have been able to find formal

employment. Despite this, Johan warned that the work ethic

amongst the youth is low. His advice to companies in the sector is

to have HR strategies in place, focusing on development, talent

retention and BBBEE. To close the skills gap, a holistic approach

must be adopted. Absolutely critical to this strategy is the provi-

sion of training centres, comprising a main campus, shop floor

centres and a commitment to continuous learning. Key aspects of

this holistic approach are quality of supervision, employee well-

being, morale and stability, communication, and company values

and ethics.

Johan Erasmus, Managing Director of Automotive TrainingAcademy

NAACAM not happy chappiesABR met Roger Pitot, Executive

Director of NAACAM, at the NAA-

CAM stand, and asked his opinion on

the current crisis, and government’s

response to date. He said that whilst

bridging finance has been provided

through the IDC, and the Department

of Labour had announced a scheme to

assist employees on short time, this was not enough. Pitot put

it frankly, “We are disappointed. In February this year, I did

a survey and every government around the world had formu-

lated responses to deal with their distressed automotive sec-

tors and manufacturing in general, also implementing other

indirect measures, such as cutting rates. It seems our govern-

ment does not know exactly what to do to respond.” The sit-

uation is serious, and he added that OEMs insistence on

price reductions in this environment, together with delays in

payment, compounds the difficulties.

N o v e m b e r 2 0 0 9

Boost for automotive suppliersSupplier development in the automotive industry has beengiven a R23,5-million boost through a partnership betweenthe Department of Trade and Industry (dti) and the UnitedNations Industrial Development Organisation) UNIDO.The funding – announced at the AIDC Automotive IndustryConference 2009 at SA Automotive Week - will expand thescope of the existing business partnership programme run byUNIDO and the Automotive Industry Development Centre(AIDC) since 2003. The funding has been committed over athree-year period and is in line with UNIDO’s strength incluster development. “The SA automotive industry is ourleading manufacturing sector, but local component suppliersare under continuous pressure to improve their performanceor lose business to competitors in other emerging economieslike Brazil, China and India. We aim to support these suppli-ers in becoming globally competitive,” says UNIDO repre-sentative Tom Kenyon. “In the past five years the AIDC hasimplemented the Tirisano programme at over 45 companies,training more than 4,000 shop floor workers on basic leanprinciples and world-class manufacturing. The ultimate ben-eficiaries of this project will be Tier 1 and Tier 2 SME andBEE component suppliers in the SA automotive industry,”says Barlow Manilal, AIDC CEO . “Speaking at theannouncement, National Association of AutomotiveComponent and Allied Manufacturers’ executive directorRoger Pitot challenged the provincial governments of theWestern Cape and KwaZulu/Natal to also provide supportfor their local auto sectors.

N o v e m b e r 2 0 0 930

Gauteng has the most established supplier park in the

country, so it was no surprise to see the opening slot

at the AIDC conference go to Amanda Nair, CEO of

Blue IQ. Amanda set a positive tone for the confer-

ence with the announcement of BMW’s R2,2 billion investment

in its plant in Rosslyn (with strings attached), and she jokingly set

a challenge for other OEMs and component manufacturers to

“equal or better” this investment – in Gauteng, of course. BMW’s

decision was no doubt made easier by the Supplier Park infra-

structure right on its doorstep, and this must have served as a red

rag to a bull to the assembled delegations punting the East

London IDZ, the

Maputo Development

Corridor, and the Coega

IDZ. ABR gives a brief

overview of these three

initiatives, and will go

into far more depth in

upcoming issues.

Amanda Nair, CEO BlueIQ, challenged the indus-try to “equal or better”BMW’s investment.

No Harbouring of Doubts

When it comes to ports, Port Elizabeth is doing its New York,

New York thing. Not satisfied with one harbour, PE has gone

ahead and built a new state of the art port at the mouth of the

Coega River, just 20km up the coast from its Baakens River

brother. And it looks like the Coega Development Corporation

loves doing things in twos. It also has two zones for automotive

industrial development – the Nelson Mandela Logistics Park sit-

uated three kilometres away from the VW plant in Uitenhage,

and Zone 2 at the Coega IDZ at the Port of Ngqura. All part of

a multi-billion rand initiative aimed to position South Africa as a

platform for global manufacturing and export through foreign

and local investments.

Gustav Meyer, BusinessDevelopment Manager:Automotive and Logistics,Coega DevelopmentCorporation, briefs guestsat the corporation’s spanking new premiseslocated in the Coega IDZ.

Charging Like a BuffaloEast London may be the 90 pound weakling in the city stakes, but

it more than makes up for its size with enthusiasm and innova-

tion. Definitely the team with the best spirit at the SAAW, the

East London IDZ also made the major announcement at the

show, by unveiling its innovative model for the automotive sector

– a multi-OEM assembly facility which has already attracted

interest from companies in India, China and South Korea. This

facility will help those companies who have not yet reached criti-

cal mass in terms of volume in South Africa, and of course the

bigger carrot is for this to be used as a springboard for export to

Europe and the USA, taking advantage of AGOA, etc.

Tembela Zweni, ELIDZ Executive Manager: Business Development;Corrie Kotze, AIH Consulting; and Simphiwe Kondlo, ELIDZ

CEO, announce the exciting multi-OEM model

Provincial SlugfestThe competitive spirit was alive and well at the SAAW 2009, and it was best illustrat-ed by three regions slugging it out to catch the attention of foreign visitors and themedia. Each corner of South Africa wants its slice of automotive industry action, andthose who started a little late are playing catch up fast.

N o v e m b e r 2 0 0 9

Corridor of Certainty

Mpumalanga has relied in the past on its agricultural, min-

ing and tourist strengths, but now its geographical location

means that its future fortune is inextricably bound to the

success of the Maputo Corridor. With a drive for diversifi-

cation, under the rallying cry of Linking Opportunities,

Creating Growth, the Maputo Development Corridor

Flagship is one of the “big five” flagship programmes iden-

tified by the Mpumalanga Provincial Government for eco-

nomic growth, encompassing initiatives such as the Secunda

IDZ, Truck Stops, Priority Feeder Routes, Food Technology

Centre, Middelburg IDZ, Komatipoort Dry Port and Rail

Passenger Border Clearance Facility.

Blessing Manale,CEO MaputoDevelopmentCorridor Flagship,hosted a cocktailevening, and at theevent made the offerto host the nextSAAW and AIDCAutomotive IndustryConference.

N o v e m b e r 2 0 0 932

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

The Nelson Mandela

Metropolitan University

made its presence known

at SAAW, and if anyone

cared to dig a little further,

they would have found

out that NMMU is the only university in

South Africa that is planning to race at the

Formula S event in Germany in August

2010. Formula S stands for Formula

Student, and has no connection to that old

shaggy dog story of the customer who

orders a souped up VW Beetle with the

proviso that a large S be painted on its bon-

net. Upon taking delivery of the car, the

salesman enquired as to the reason for the

large S, to which the customer replied that

he wanted people to exclaim as he zoomed

past, “Did you see that S car go!” ABR is

very interested in this project, so after the

show we moseyed down to the university’s

south campus, to get more information.

We found that the Volkswagen South

Africa – DAAD International Chair in

Automotive Engineering had allocated

offices and furniture and equipment to the

venture, and that students had been drawn

from various faculties to participate.

NMMU Racing’s two project managers are

Trevor Stroud and Howard Theunissen,

lecturers in the university’s Department of

Mechanical Engineering, and they have the

bitter sweet task to get a team of young

bucks to gel into a formidable unit, with

the goal of participating in Formula

Student Germany 2010 in Hockenheim in

August 2010. All very inspiring, and ABR

shall give our readers more details in

upcoming issues, and we shall also follow

the action on campus, and keep our stake-

holders up to speed (excuse the pun) on the

comings and goings of the little Schumis.

Howard Theunissen and Trevor Stroud arethe project leaders for NMMU Racing.

Kobus Meiring, CEO Optimal Energy

The Joule in all its glory

Formula S gives university students a chance to show their talents

Mphathisi Colwana and Alison Richter aretwo of the student engineers on the Formula

S team. Mphathisi is responsible for thecooling system, suspension and brakes, whilstAlison looks after the fuel tank, ergonomics

and safety aspects.

33

ABR’s Austin Gamble attended the AIDC Automotive IndustryConference 2009, and he gives his unique take on the topics and pre-senters, and his views on the punctuality and even worse, the non-attendance of certain individuals.

I’m a little old fashioned, and I

believe that if you have accepted

an invitation to attend an event,

that once you have committed,

you should move heaven and

earth to meet this obligation. And

it doesn’t matter who or what you are. In

actual fact, the higher your exalted posi-

tion, the higher the obligation! I also

believe that your performance on these

parameters is a very good indication of

your character and your trustworthiness.

On this premise, there were some unfor-

tunate slips of protocol perpetrated by

those who should know better. Or do they

know better? I was not privy to the why,

who or where, but judging by the looks on

the faces of some of the organisers, it was

obviously last minute stuff, and in one

particular case, this was confirmed inad-

vertently. And taking my line of thinking

a little further, maybe some of the non-

attendees had good reason for not attend-

ing. Take Mr. Irvin Jim, the National

Secretary of NUMSA, for example. He

was supposed to be an integral part of the

panel discussion on whether the South

African automotive industry deserves a

bailout. His absence left a gaping hole, as

his participation in the discussion was a

vital element. Johan Cloete, an independ-

ent consultant, was roped in at the last

minute, and whilst he did an admirable

job doing his chameleon act turning from

a hard working consultant to an Arthur

Scargill wanabe, he simply could not lend

credibility to the role, giving careful and

measured responses, a most ununion

thing. It also got me thinking that he was

in reality scab labour, oh heavens above.

And there were hard questions to be

answered, which Mr. Jim had convenient-

ly ducked. Not so convenient for the

organisers, who announced at the com-

mencement of the discussion that Mr. Jim

had phoned in 30 minutes earlier to give

his apologies. Extremely enlightening, as

the conference was running an hour late,

so either Mr. Jim had phoned in half an

hour late, or the organisers were telling a

little fib to make him look reasonably well

mannered. I have drawn my own conclu-

sions, and they are not flattering. Take

these two questions submitted by the del-

egates for example:

1. Why do the unions insist on wageincreases and benefits that makeus less competitive – don’t theyunderstand we compete globally?

2. Why do the unions go on so manystrike actions for wage increases somuch above CPI, and damageSouth Africa’s image and turnaway investment?

Hot potatoes, which may have made Mr.

Jim uncomfortable. I’m sure that he

would have handled them with the pre-

dictable rhetoric, but why go through this

if you can just stay away? The problem is

that the panel discussion was the poorer

for it, and the delegates were short

changed. Similarly, Minister Rob Davies

bailed out at a late stage, leaving the

unpalatable stuff to his deputy, which

does leave a distinctly unpleasant odour.

And the conference ran an hour late, not

because of the tardiness of the organisers,

but because of the late arrival of MEC

Jonas, who was to do the official opening.

Sure, the traffic was bad, but everyone else

made it. The picture is becoming clearer,

much clearer. And to me, at least, it

explains many things, about Transnet

lethargy, Eskom hubris, municipal rate

hikes, etc.

On a lighter note, I have to admit that at

long conferences such as the AIC, the

mind does wonder sometimes. I was

guilty, I’m afraid. It all started with a nag-

ging feeling that Johan van Zyl reminded

me of someone famous. Eventually the

penny dropped. Joachim Phoenix! Don’t

think so? Go and look at the movie

Gladiator, or Walk the Line. This got me

going in a bad direction, and I started to

have a good look at the other panellists on

the Vision 2020 debate. See if you agree

with me, by matching our brainy guys

with these actors/luminaries:

N o v e m b e r 2 0 0 9

The Party Poopers

by Austin Gamble

Irvin Jim, National Secretary, NUMSA.For those delegates who were hoping for theprivilege of seeing him, this picture is a far

from satisfactory substitute.

N o v e m b e r 2 0 0 934

Yes We CanAfter two jam packed days of information overload,debate both sedate and intense, and introspective soulsearching, the 2009 AIDC automotive industry conferenceended not with a bang, but with a whimper. A visiblyexhausted Barlow Manilal, CEO of the AIDC, closed pro-ceedings with a summary of the outcomes of the confer-ence, of which the general consensus was that it had beena worthwhile exercise, and that despite the negative eco-nomic environment, the industry was down but not out, andthat it did have the ability to navigate the storm. In thewords of Barack Obama, it was agreed that “Yes we Can”.

The key points that came out of the conference were that

• The automotive industry is a key sector in the manufacturing sector of SouthAfrica

• The government has the responsibility to create an enabling environment for theindustry to go ahead and create growth and jobs

• Collaboration between government and the private sector is now needed more than ever

• It is now absolutely vital to grow and protect investment in the manufacturing sector

• Investment in the industry needs to be focused and prioritised

All good and well, but what is really needed is less talk and more action. The AIDC conference was an important and necessary talk

shop, but the benefits of the conference will only be clear when all the affirmations are realised. The key is government’s commitment

and its translation of words into action. Extremely concerning was the quote from the Deputy Minister of Trade & Industry, who made

the telling enquiry, “What makes our production special when compared to Brazil?” It may have been a rhetorical question, but the sim-

ple answer from all should be, “Because it is OUR production!”

Barlow Manila, CEO of the AIDC, afteran exhausting two days, brings the confer-

ence to an end.

A trailblazer berthed at Ngqura

On the 9th October, delegates

had the opportunity to visit

the Volkswagen plant in

Uitenhage, the Nelson

Mandela Bay Logistics Park just a stone’s

throw away, and the Coega IDZ. ABR went

along for the joyride. Some of the high-

lights of the tour included a visit to the

Volkswagen Museum at the Pavilion, in

which one could indulge in a little nostal-

gia, and the sighting of a ship berthed at the

Port of Ngqura. At the time of the visit,

only two ships had visited the port since its

opening in October 2009, so this was

indeed an auspicious occasion.

Automotive Site Visits

At the VW Museum, some nostalgic speed and some nostalgic relaxation

KenKen 3 X 3How to Play:

Like Sudoku, even though difficulty may vary from puzzle to puzzle, the rules for

playing KenKen are fairly simple:

For a 3 x 3 puzzle, fill in with the numbers 1-3.

• Do not repeat a number in any row or column.

• The numbers in each heavily outlined set of squares, called cages, must combine (in any

order) to produce the target number in the top corner of the cage using the mathe-

matical operation indicated.

• Cages with just one box should be filled in with the target number in the top corner.

• A number can be repeated within a cage as long as it is not in the same row or

column. Answer on page 45

BMW Looks AheadFollowing in-depth negotiations with government, the BMW Group has announced that it will invest an additional

R2.2 billion at BMW Plant Rosslyn, triggering the introduction of the newest BMW vehicle and production tech-

nology at the Plant and within its local supplier network. The investment will enable maximum plant capacity

to increase from 60 000 to 87 000 units, while securing production in South Africa for the future. The invest-

ment announcement follows the signing of a Letter of Commitment with the Department of Trade and

Industry (the dti), which will honour the investment under the new support scheme for the motor industry,

the Automotive Production and Development Programme (APDP). The APDP will replace the current sup-

port programme for the automotive industry, the Motor Industry Development Programme (MIDP), in

2012. At the same time, the German automaker announced a training program for 1,100 associates at Plant

Rosslyn. The BMW Group has a long history in South Africa, rich in major milestones, and has had a local pres-

ence since 1968. BMW Plant Rosslyn became the BMW Group’s first manufacturing facility outside of Germany

in 1975. The company was also the first South African car maker to adjust its entire production configuration to

begin an export programme in 1994, ahead of the announcement of the MIDP.

35N o v e m b e r 2 0 0 9

W h a t ’ s t h e B u z z ?

N o v e m b e r 2 0 0 936

A series of articles on the rise of the Chery automobile

Chery South

Africa is set to

make an even

bigger impact

on the local

market with the

launch of its

new J1 hatch-

back. The range

consists of two models; the J1 1.3 TE and

the top-of-the-line J1 1.3TX. Starting at a

class-leading price of R109 900, both vehi-

cles are equipped with power steering, air

conditioning, alloy wheels, as well as criti-

cal safety items such as dual airbags and

ABS with electronic brake distribution.

“We believe that since the brand was first

introduced in South Africa in May 2008, it

has changed expectations in the entry-level

segment of the market,” said Brett Soso,

Managing Director of Chery SA, a division

of Amalgamated Automobile Distributors.

“The Chery J1 is set to continue this trend

and reinforce our commitment to provide

value-for-money motoring to South

African vehicle owners moving into the

next segment of the market up from a

Chery QQ3.” The Chery J1 is certain to

cater for those who have high expectations

in their daily vehicle. Its balance of style,

practicality and affordability will be

unmatched in the marketplace and it has

its sights firmly set on being a winning

combination. “We believe the J1 is a super

package and we haven’t compromised on

specification and safety to get the price

down,” said Soso.

Designed in Italy, Chery J1 is the first glob-

al vehicle from the Chinese automaker and

is aimed at providing stylish, affordable

motoring to consumers in Europe, North

America, Asia and of course, South Africa.

It features a brand new fuel injected 1.3-

litre petrol engine, uniquely developed by

Chery that will beat off many of its key

rivals when it comes to power and fuel

economy. The new 4-cylinder Acteco pow-

erplant, which is Euro III compliant, pro-

vides 61kW at 6 000r/min and 114Nm of

torque between 3 800 and 4 500r/min,

while also ensuring less visits to the petrol

pump with an average fuel consumption

figure of just 6.7/100km. While a great

focus has been placed on providing the J1

with a potent and efficient engine, it is in

the specification that it truly excels.

New Chery J1 Packs a Big Punchat an Affordable Price

37N o v e m b e r 2 0 0 9

Large angel eye headlamps light your way

ahead at night, while safety is bolstered fur-

ther by the inclusion of ABS with EBD,

dual airbags, side impact protection bars

and high mounted brake light, many of

which are simply not usually available in

this class of vehicle. Reverse park control is

available as standard on the TX-derivative.

The J1 has also been subjected to rigorous

testing in line with international standards.

This includes numerous tests at the

National Centre of Supervision and

Inspection on Motor Vehicle Products

Quality in Shanghai. Extensive evaluations

have also been conducted in South Africa

to test the vehicle’s durability and quality

under local operating conditions. The

onboard computer keeps you informed of

all the essential information on your jour-

ney, while manual air conditioning keeps

you cool in summer and totally unaware of

the chill in winter. The instrumentation

has been designed to be aesthetically pleas-

ing while also being fashionable giving a

more upmarket feel to the cabin ambience.

A CD-player audio system with USB port

is also standard on both models. Quality

materials pervade the interior with plush

carpets and door inlays, while the seats

have been ergonomically designed to pro-

vide maximum comfort for all passengers.

Power steering makes manoeuvring around

the city a breeze and a turning radius of

just 4.75m ensures effortless parking in

even the tightest of spaces. The J1 range is

equipped with central locking by remote

with the TX having the added ease of con-

venience locking. All the seats in the J1 can

be manually adjusted and the steering col-

umn’s rake can be adjusted to suit the driv-

ing position. In addition, the J1 1.3 TX

also has front and rear electric windows as

well as electric mirrors.

The Chery J1 1.3 TE retails at R109 900,

whilst the 1.3 TX comes in at R116 900.

The Chery J1 range has a 3-year / 100

000km warranty. Service intervals are at

15 000 km and the range has a 3-year / 75

000 km service plan as standard. Chery is

continuously aiming to provide customers

with a good value proposition, not just in

terms of their initial purchase, but also in

the overall ownership experience. The

company therefore has a well-established

dealer network in place, with over 30 full

service dealerships. This network is con-

stantly being expanded to give Chery com-

plete national representation and customer

convenience. Chery South Africa offers a

range of vehicles to suit the individual

tastes of the country’s motorists, and every

Chery car presents a combination of

unbeatable value and quality.

An article by Yoshiaki Nohara and Ron Harui on the Bloomberg finan-cial news service, dated 6 October 2009, sent world currency markets into near panic mode, with the SA Rand appreciating fromR7.63 the day before to R7.39 that evening (both SA time). The newsquoted the UK based Independent Newspaper, saying that the Gulfstates might be considering quoting oil prices in a combination ofYen, Yuan, euro and gold. Effectively, this would become an artifi-cial currency, which we could christen the Oyley, derived from Oilprice in a combination of Yen, Librae, Euro and Yuan.

T o n y ’ s T a k e

N o v e m b e r 2 0 0 938

Why Librae, you may

ask? The Librae is a

singular version of this

old measure of weight,

also called a tower

pound approximating 32 grams, close to a

Troy ounce, which is the unit of measure of

traded gold. That is from where the styl-

ized letter L, previously employed to

denote Pound Sterling, was derived.

The graph shows smoothed index values of

a composite artificial currency made up of

equal weights or proportions of the gold,

euro, yen and yuan prices of crude oil dur-

ing the current decade. The first bad bit of

bad news for the artificial currency plan-

ners is that such an equally weighted artifi-

cial currency would not have produced

anything resembling a stable currency for

the price of oil.

The next thing for them to consider would

be how to create the artificial currency, or

OYLEY. If it is based on gold and the other

currencies, every OYLEY unit that they

wished to create, even if it was only created

on paper, would have to be backed by the

proportion of the base currencies from

which it would be derived. This would be

in setting up a central bank for the OYLEY,

which would hold reserves of the com-

modities and currencies upon which the

OYLEY was to be based. We could antici-

pate some costs in this regard.

Suppose that all that was done, and foreign

oil buyers could purchase OYLEY’s from

the OCB (OYLEY Central Bank), with

which to settle their liabilities to the oil

suppliers. The oil suppliers would then sit

with large amounts of OYLEY’s and may

even be able to pay taxes to their respective

governments in those self-same OYLEY’s.

But then comes a snag – if they want to buy

anything outside of the OYLEY currency

market, they have to exchange OYLEY’s for

an internationally accepted currency. The

most commonly accepted means of inter-

national trade and capital movement settle-

ments is the US Dollar, so an exchange

mechanism between the OYLEY and the

Dollar would quickly emerge. If the

OYLEY was not exchangeable, it would be

about as useful as the Zimbabwe Dollar.

Of course, the OYLEY would come to

reflect all the pressures present from time to

time on the constituent items like the Gold

price, upon which it is based. With settle-

ments in Dollars, the Gold price of oil is

capable of fluctuating very substantially, so

the OYLEY price of oil would be subject to

similar fluctuations, driven by the Gold

portion of the OYLEY base. It seems like

an awful amount of trouble to achieve

virtually nothing.

But the fun would only just be starting at

that point. Private banking systems would

very quickly find ways to multiply the

numbers of artificial currency units that

they may come to hold. Derivative traders

would begin writing options and futures

contracts from the exchange rate of the

OYLEY against most major and minor cur-

rencies around the world. We could expect

then, just as there has been in the history of

the Euro, tussles between the oil producing

governments regarding the rates of

creation of units of OYLEY currency.

Out of the fried chicken pan, into the oil

fire.

by Tony Twine,Senior Economist,Director –Econometrix (Pty)Ltd

The OYLEY Price of Oil

w e i g h t y i s s u e s

N o v e m b e r 2 0 0 9

TRUCK SHOWS – A THORNY ISSUE

In South Africa there has been

much recent debate over the rele-

vance of truck shows. There is a

body of opinion that views partic-

ipation in the Johannesburg

International Motor Show (JIMS)

or its Auto Africa predecessor, as less than

ideal for heavier commercial vehicles, pri-

marily because that ten day exhibition is

shared with the light vehicle community,

takes truck people away from their day

jobs for too long, and exposes (expensive)

exhibits to wave upon wave of “tyre kick-

ers” and brochure collectors. The alterna-

tive of adding a truck section to the more

trade-focused Automechanika Johannes-

burg early in 2009 clearly did not work,

particularly as it was held only a few short

months after JIMS, so no obvious solution

has emerged up to now. The organisers of

HeavyWeight Expo obviously believe that

they can offer the ideal compromise, in a

year in which there will be no JIMS event.

The chosen venue is a lot less intimidating

than the vast halls of NASREC, but can

easily accommodate the truck and bus sup-

pliers, body and trailer builders and allied

suppliers that make up the target market.

However, it is significant that this event car-

ries the endorsement of the Retail Motor

Industry (mainly dealers), and not the

National Association of Automobile

Manufacturers of South Africa (NAAM-

SA), who now “own” the JIMS show. This

raises the question whether NAAMSA will

have a benign attitude to Heavyweight

Expo, or if they will see it as a threat to their

own event.

My own hands-on experience with truck

shows goes back to the Royal Agricultural

Show in Pietermaritzburg during the

Nineteen Sixties, and extends through vari-

ous Sugarmechs, Timbermechs, Rand

Shows, ITEC Shows and Auto Africa exhi-

bitions. Contrary to popular belief, very

few large fleets of trucks are sold off show

stands in spontaneous “walk-on” deals,

although this myth has been carefully per-

petuated in countless press releases. The real

value of shows is to provide relaxed interac-

tion between suppliers and their clients,

who are shipped in to enjoy hospitality on

the stands. Exhibitors also use the opportu-

nity to build their image by showing off

new technologies not yet available on the

local market, although most of their star

customers would already have seen these on

hosted overseas tours.

Despite the valid concerns about the suit-

ability of Auto Africa and JIMS for truck

and bus exhibitions, there can be no doubt

that the standard of displays has risen per-

ceptibly since these shows have catered for

both light and heavy vehicles. Truck-only

shows have a tradition of being more of the

“boerewors-and-beer” pattern, which was

clearly not compatible with car exhibits fea-

turing plush carpets and squads of scantily-

clad young ladies. The incidence of profes-

sionally-built truck stands, with imported

displays, has increased markedly since

ITEC gave way to Auto Africa, and in those

cases where light and heavy vehicles are dis-

tributed by the same organizations, there

has been plenty of scope for the sharing of

facilities. Out-of-town based industry exec-

utives have also valued the opportunity to

attend one show that covers both aspects of

their business. It is a moot point whether

distributors can justify supporting truck

shows every year, so if HWE is successful, it

could impact on the trucking side of JIMS.

Exhibitors will need to decide which format

suits them best, but there is likely to be con-

siderable pressure from NAAMSA on their

members (most of the major manufacturers

and brands) to continue supporting JIMS.

In the past, where certain companies have

chosen not to participate in the major

shows, their competitors have been more

than happy to point out their absence to

mutual customers. A further complication

lies in timing, as it is unlikely that major

new product launches will always be able to

coincide with events timed by show organ-

isers to suit their own priorities. In the past,

major manufacturers often organised stand-

alone events at more appropriate times, and

also to ensure closer control of their visitors.

After all, anybody attending a show wants

to look around, irrespective of who paid for

his travel to the show or his entrance ticket!

There are many issues to consider, and it

will be intriguing to see how this dynamic

plays out. In the particular atmosphere of

2009, with vehicle sales still near the bot-

tom of the cycle, costs may be a crucial fac-

tor, but it is likely that the long-term out-

come will be dictated by strategic issues.

Time, alone, will tell!

by Frank Beeton

40

On Wednesday, September 30th, 2009, representatives of the com-

mercial vehicle industry, their suppliers, and the specialist

press, made their way to the Tshwane Events Centre (you may

know it better as the Pretoria Showgrounds) to attend the

launch of The HeavyWeight Expo. This event, scheduled to run

from 23rd to 26th March, 2010, was described by organis-

ers TSHWABAC as an “exhibition-cum-conference dedicated to

the heavy equipment sector in South Africa”. The target

universe was defined as “the heavy vehicle, bus, construction

plant and equipment, special and agricultural vehicle sectors”.

N o v e m b e r 2 0 0 9

h e a l t h c a r e

An update on Moto Health Care

42

Sadly the Scheme is expected to

incur an underwriting deficit for

this year. The key contributor to

this deficit is the Classic option.

This deficit would be substantially larger if

it was not being mitigated by an improve-

ment in the position of the Custom

option. The Hospicare and Optimum

options are also operating at deficits.

Further there has been a reduction in the

total membership for the year to date of

11% largely brought about by a clean up

of data conducted by the current adminis-

trator, loss of employment and affordabili-

ty, a direct consequence of the economic

downturn.

The Trustees adopted the following princi-

ples to determine the benefits for 2010:

• To offer a comprehensive range of ben-

efits;

• To ensure that the options are distinct

in their benefit offerings;

• To minimise the risk of buy-down by

higher claiming members;

• To achieve a breakeven financial result.

Guided by the above principles and after

many meetings the benefit design team has

proposed the following amendments to

the current benefits:

Optimum. This option is aimed at

high income earners and offers a compre-

hensive range of in and out hospital bene-

fits. The adjustments for 2010 are as fol-

lows:

• Cover for in hospital specialist costs

will be at 200% of the National

Reference Price list;

• A R850 co-payment on specified scope

procedures except where the member

uses a Designated Service Provider

(DSP);

• The limit on maternity benefits will be

removed;

• Inflationary adjustments to all finan-

cial limits;

• The DSP providers must be used for

treatment plans for chronic patients

(for the 26 chronic disease list (CDL)

conditions)

Classic. This option has been restruc-

tured in line with trends in the market for

those targeted at middle to high income

earners looking for comprehensive cover

and flexibility in their benefits. The cate-

gory B limit has been converted to a sav-

ings account basis. The level of annual

savings is equivalent to the current level of

the category B limit and the savings struc-

ture has the advantage of members being

able to carry any unused portion of the

benefits forward to the next year for their

own use. Members will also have greater

flexibility in determining how they use

their out of hospital benefits. The adjust-

ments for 2010 are as follows:

• Cover for in hospital specialist costs

will be at 150% of the National

Reference Price list;

• Chronic cover will be extended to

include 8 additional conditions (with a

limit of R2675 per beneficiary and

R5350 per family on these benefits);

• There will be a R850 co-payment on

non PMB (Prescribed Minimum

Benefits) in hospital procedures except

where the member uses a DSP;

• The maternity benefit limit will be

removed;

• Out of hospital benefits will be paid

from a savings account where 22% of

contributions are allocated to this;

• Appliances and prostheses will be cov-

ered by the Fund with inflationary

adjustments to the limits:

• The DSP providers must be used for

treatment plans for chronic patients

(for the 26 chronic disease list (CDL)

conditions).

Hospicare. This option is targeted at

younger, middle-income members who do

not require out of hospital benefits. In

order to contain costs on this benefit

option the benefits are accessible through a

network of Designated Service Providers

(DSP). The adjustments for 2010 are as

follows:

• Cover for in hospital specialist costs

will be at 100% of the National

Reference Price list;

• Members will be required to use a

Designated Service Provider (DSP) for

in-hospital treatment and for their

chronic benefit treatment plans (for

the 26 chronic disease list (CDL) con-

ditions). A25% co-payment will apply

for other providers;

• The maternity benefit limit will be

removed.

In next month’s article I will deal with the

Custom and Essential options and share

with you the key elements of the 2010

budget. At the time of writing this article,

a road show is being planned to introduce

the new benefits for 2010 to stake holders

and to receive input from them. I trust

that at least some of you will have made an

effort to attend one of the road show

presentations.

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

Barry Canning, Chairman Board ofTrustees - MOTO Health Care

M I S A U p d a t e

N o v e m b e r 2 0 0 944

– STATEMENT TO CONTRIBUTORS –

MOTOR INDUSTRYRETIREMENT FUNDS

(Administered by : MIFA (Motor Industry Fund Administrators (Pty) Ltd.)

Recently, Mamodupi Mohlala the former Pension Funds Adjudicatorpublicly introduced a ‘so-called’ SCORE-CARD against which sherated 290 of the country’s 13 000 registered retirement funds, inan attempt to gauge their performance.

The Adjudicator was not appointed to usurp the func-

tions of the FINANCIAL SERVICES BOARD, the

Body that regulates the Retirement Industry, but mere-

ly to deal with member complaints against their funds.

This limited role of the Adjudicator was publicly acknowledged in

the press by Mr. Jurgen Boyd, the Deputy Registrar of Pension

Funds, who further stated that the retirement industry is in good

health and that the threat issued by the Adjudicator that funds

performing poorly in terms of her scorecard, “could have their

licences revoked”, is a non-issue, as Pension Funds were not

licensed entities. Funds were merely required to register with the

Financial Services Board for regulatory purposes.

However, the TRUSTEES responsible for the management and

administration of the MOTOR INDUSTRY RETIREMENT

FUNDS were appalled to learn that the Motor Industry Pension

and Provident Funds had been included in her list of 20 “most

poorly rated funds”.

Her public utterances and rating of the industry have been poor-

ly researched and unfounded. They are both damaging to the

retirement fund industry and irresponsible. A public apology and

retraction would be appropriate.

The Motor Industry Pension Fund was merged some four years

ago with two other pension funds to create a closed pension fund

of some 8 000 pensioners. At the same time the Motor Industry

Provident Fund was established currently with some 40 000

members. Both funds function extremely well and are closely

monitored by the TRUSTEES, the Fund’s ACTUARY, separate

firms of EXTERNAL and INTERNAL AUDITORS and most

importantly THE FINANCIAL SERVICES BOARD in its role

as regulator. The MIFA Management and Board support sound

governance principles and ongoing monitoring by the FSB, valu-

ing the impeccable relationship developed over the years.

MIFA administers two Pension Funds (defined benefit Funds)

and two large Provident Funds on behalf of the retail motor

industry employees. The total active membership is 200 662.

During the past twelve months no less than 38 000 claims were

successfully finalised by the Funds’ Administrator. Any attempt by

Insurance Brokers/Agents to capitalise on the score-card publicity

must be seen as pure opportunism.

It is a fact that frivolous cases are often referred to the Office of

the Adjudicator. It is also a fact of life that nobody has any con-

trol over the submission of a frivolous complaint, totally devoid of

substance. Both the Funds and the Office of the Adjudicator sim-

ply have to deal with it and inform the complainant of his/her

legal rights and benefits available in terms of the rules of the rele-

vant fund.

Even if all known complaints, whether frivolous or not, are taken

into account it would represent only 0.12% of the entire mem-

bership served by MIFA! Most importantly, the

Pension Fund’s Adjudicator has not found it necessary to issue a

single determination against ANY of the Funds administered by

MIFA over the past two years! Over the past ten years only one

determination went against us!

The TRUSTEES are deeply disappointed that the outgoing

Pension Funds Adjudicator, in her enthusiastic attempts to pro-

mote her “score-card” legacy, made public utterances, damaging

to the good reputation of our Funds (earned over some 56 years)

without proper prior research. We refute in the strongest terms

the inclusion of any of the Funds administered by MIFA in her

list of twenty poorly rated Funds.

Issued by the BOARD OF DIRECTORS OF MIFA ANDTRUSTEES OF THE FUNDS UNDER ADMINISTRA-TION BY MIFA.

45N o v e m b e r 2 0 0 9

Answerfrom page 35

Over-inflating your car’s tyres will cost you money and could affect your safety on the road,according to SA tyre maker Bridgestone. Romano Daniels, General Manager of GroupCommunications and Marketing, explained that tyres are designed to function best when correct-ly inflated. “If tyres are pumped too hard, they start to bulge in the centre of the tread,” heexplained. “That means the shoulders are no longer in proper contact with the road and that thecentre of the tread has to carry the entire load of the tyre. This is why over-inflated tyres wear somuch faster in the middle,” he said. Daniels also explained that the reduced contact patch canhave serious safety implications. He said that the tyre’s resistance to road debris might be reduced;meaning a sharp stone or nail might puncture the tyre more easily. He also said that the road hold-ing of a car with over-inflated tyres would be compromised. Daniels recommended that motoristscheck their tyre pressures at least once a week and inflate them to the manufacturer’s recommend-ed values using an accurate tyre gauge. “Consult your owner’s handbook to ensure the pressuresare correct – you’ll be extending your tyre life and ensuring that your car handles safely and pre-dictably,” he concluded.

OVER INFLATION COSTS TYRELIFE, TRACTION

BentelerAutomotivebringsinvestmentand jobs toUitenhageBenteler Automotive hasannounced a R178 million

investment, which will bring with it 250 jobs, into the Nelson Mandela Bay Logistics Park inUitenhage. The company is the ninth investor into the Park, and will directly supply to next doorneighbour, Volkswagen of South Africa. Benteler Automotive will produce dashboard carrier pan-els and body parts, front and rear bumpers and chassis parts to VW of SA. “Benteler’s supplierstatus forms part of Volkswagen of South Africa’s business strategy to increase the local content ofvehicles manufactured for both the domestic and export markets. The company’s all-out initiativeis to achieve 70% local content in its South African produced vehicles,” said VW of SA ManagingDirector, David Powels. “In addition to the local content benefits the company’s investmentbrings to VW of SA, it is also beneficial to the region due to the skills transfer that will take placefrom a multinational such as Benteler. We welcome and congratulate Benteler on their invest-ment in the region,” continued Powels. Construction of the company’s 19 125m2 facility startedon 1 October, and the scheduled date of completion is June next year. The company will start toinstall its equipment in March, and it expects to start production by mid-June. The total size ofthe company’s property is 50 000m2.

Schaeffler Shorts

N o v e m b e r 2 0 0 946

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

The reason for this historic introduction is because

whilst the South African automotive industry is

fully aware of the LuK and FAG brands, the INA

brand has tended to take a back seat in our neck

of the woods, primarily through historical cir-

cumstances. This oversight has meant that the

INA brand’s worldwide status and recognition, and its extensive

product range, are not well known in this country in the

Aftermarket . The Schaeffler Group has decided to correct this

anomaly, and as part of this INA awareness programme it recent-

ly sent Daniel Wolff, Business Development Manager, Engine

Components, Schaeffler Group Automotive Aftermarket, to visit

our shores, to begin a series of initiatives around the INA brand

and product range. ABR met with Daniel at the Partinform held

at the East Cape Training Centre, Port Elizabeth on the 13th

October, to learn more about his mission. Daniel confirmed that

INA has a global presence in the original equipment and automo-

tive aftermarket in passenger cars, LCV and commercial vehicles,

represented on every continent, and with vehicle manufacturers

throughout the world relying on application solutions developed

by INA. INA is particularly strong in Europe, whilst also being a

significant player in Asia and the Americas. INA’s product range

for timing belt drive transmission systems and front end accesso-

ry drive systems (FEAD) trains is extensive and includes clutch

release bearings (well known in South Africa), hydraulic bucket

tappets, finger follower and hydraulic pivot elements, tripod

rollers, axial and radial bearings, tripod rollers and much more.

Chassis, gearbox and engine transmisson products have grown

over the years, and INA is now at the forefront in providing

mature solutions for the engine, such as hydraulic and mechani-

cal bucket tappets, rocker arms, finger follower and hydraulic

pivot elements as well as water pump bearings and other innova-

tive products. In addition, a large number of timing belt drive

components are available: idlers, mechanical and hydraulic belt

tensioners or overrunning alternator pulleys, et al. With a market

share of 55%, INA is the market leader in supplying timing and

front end accessory belt drive components to car manufacturers

and the aftermarket, and it it is with this heritage behind them

that Schaeffler South Africa is launching a local timing and front

end accessory belt tensioner range to create a footprint in South

Africa. The initial range will cover 90 part no’s, but will be grad-

ually rolled out to eventually cover the 700 applications for our

car parc. Daniel Wolff says that there is room for this product in

the aftermarket in South Africa, and it fits into the Schaeffler

strategy of finding the right time for INA products. Service and

availability will be the focus in a targeted marketing campaign to

specialist workshops, the wholesale trade and retail shops, to get

the market to accept the INA name and to expand the range in

the future, as it takes its rightful place alongside the more estab-

lished LuK & FAG brands.

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

Tim Langdon, General Manager Automotive Aftermarket

1

by Marcus Haw

N o v e m b e r 2 0 0 952

Tyresand TheirContribution to Safety in Motoring

In this issue we would like to take a

look at a few of these and warn fleet

controllers about the possibilities.

Fleet costs can rise rapidly if these

factors are ignored, but with a little

thought, can easily be contained.The most

regular and obvious is the start of our

Gauteng summer rains. These bring all

the diesel and dirt from the dry winter

months to the surface and more damaging

to tyres, they quickly result in the develop-

ment of hundreds of potholes. No roads

are exempt from this. Highways, back

roads and urban and suburban roads are

all affected.

Our roads also tend to get busier around

this period, possibly due to reps putting in

some hard work to reach their targets

before year end. Seriously though, as the

year gets into it’s final haul there seems to

be a rush of business with daily inter city

travel on the increase. The breaking up of

the roads is therefore made even worse. So

we have an increase in daily mileage, on

rapidly deteriorating roads, and to add to

the adventure of the season the smooth

tyres start showing up as the roads get slip-

pery. Fleet controller’s nightmare has

arrived!

Amazingly this all happens every year.

More amazingly people ignore it every year

and end up with smooth tyres as the first

rains arrive. This was graphically illustrat-

ed to us recently when we did an

impromptu survey of a small fleet. The

fleet was made up of the director’s car, the

sales manager and his three rep’s cars and

four hardworking bakkies. The average

remaining tread depth between all the

tyres on all these vehicles was below 4mm.

The director’s car was fitted with four

month old tyres so you get a picture of

how bad the rest were. This example is not

as unusual as one would hope. Next time

you are at your favourite shopping centre,

just take notice of the tyres on the cars

parked around you. While doing this keep

in mind that once standing water exceeds

or equals the depth of your tread you will

ride on top of the water not though it.

Remember too that tyres are THE ONLY

things between you and the road. Once

you are on top of the water all control is

lost. After a good downfall it is very com-

mon to find patches of water deeper than

5mm almost everywhere. Why do people

insist on taking chances? They die on our

roads every day. They know these facts,

they are not hidden.

For the fleet controller, this ignorance,

apathy or stupidity of the average driver

must be a nightmare. The cost of new tyres

is no longer a piddly consideration. But

when compared to the cost of panel beat-

ing, funerals and training new staff they

are a bargain. But to monitor the tyres in a

big fleet is a considerable undertaking, and

relying on the drivers to be responsible

is taking a chance to say the least.

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

53N o v e m b e r 2 0 0 9

www.bridgestone.co.za

The only answer is put controls in place

which somehow highlights the “tyre

change time” per vehicle. And then disci-

pline the drivers to heed the rules.

In the previous issue we spent some time

on the fact that more and more vehicle

manufacturers are choosing lower and

lower profile tyres for their latest offerings.

As mentioned, they are needed for the

handling precision required by today’s

cars.

We however need to understand the pit-

falls and manage our resources. Low pro-

file tyres do need some thought and man-

agement where potholes are involved.

Understand that as good as these tyres are,

and as strong as they may be, they are

never the less very much more rigid, and

less flexible than tyres with higher profiles.

Damage through pothole impact is often

fatal to a tyre, and the instances involving

total destruction of the tyre are higher

with extremely low profile tyres. We wit-

nessed recently, while driving through a

badly potholed area how people react. The

car in front of us slowed down to about 40

km/h, as we did, and was weaving in and

out avoiding the potholes. The driver was

driving an X registration (very new vehi-

cle) executive saloon with accessory rims

and ultra low profile tyres. But after about

a kilometre of slow driving, his patience

ran out and he sped off into the sunset,

obviously with no feeling for his expensive

car or it’s equipment. More likely, it was a

fleet car. But the worry is more the safety

aspect. The way he was driving he was

going to damage both tyres and rims.

There’s just no way they could have with-

stood those holes. We certainly wouldn’t

have done what he did not even in a 4X4

with huge off-road tyres.

This is a problem that both fleet owners

and tyre dealers share. When tyres are

treated in this way, and they fail, there is

just no chance that one will get the truth

out of the driver. They all blame the tyre

and usually want to change brands. A tyre

dealer can tell if the tyre has been abused,

and can refuse to claim the tyre. But how

does the fleet owner/controller react to

these lies and excuses from those he works

with. There’s no way he can prove what

happened to the tyre, and even if experts

are consulted, it remains their word

against that of the user. But his costs are

going to skyrocket if he can’t take control.

It makes a very good case for tyre pressure

monitors though. At least if the tyre’s pres-

sures are correct, they have a better chance

of resisting pothole damage. As we have

previously discussed tyre pressures are so

neglected that the chances of anyone con-

sidering that they should take extra pre-

cautions because of road breakup is high-

ly unlikely. But a buzzer screaming in their

ear might actually force some reaction out

of them.

Whatever method is used, one should be

found to maintain the pressures and force

the drivers to take more care of their tyres.

As already mentioned if the road death

toll doesn’t get them thinking, nothing

will. And so, all the vehicles in a fleet

could have smooth underinflated tyres

just when the rains start. As I said, a fleet

owner’s headache!

The above rhetoric is given in the hope

that all readers, both fleet controllers and

private users get to understand the safety

concerns involved here. While it tends to

be worse during the coming period, these

are factors which should be of concern at

all times in all areas. It is impossible for

the fleet owner to be in total control of all

aspects of all his vehicles all of the time,

but it is in his interests to at least get con-

trol of his tyres. The safety of his staff and

all road users depends to a large extent on

all those in charge of fleets taking respon-

sibility for the safety aspects of the vehicles

in their control. Just the same as we are

responsible for the safety aspect of our

vehicles, so should all road users be for

their vehicles.

Especially during the current economic

climate, costs are an enormous considera-

tion, although safety should still be a

higher consideration. Maybe the purchas-

ing of those tyre gauges mentioned before

should be done really quickly now, and

maybe serious consideration should be

given to pressure warning systems. They

may just be the best investment you’ve

ever made.

Travel safe, Think Safety – Think Tyre Safety!

In 1954 Aldous Huxley explored “the doors of perception” in an iconic book, and a title that heborrowed from William Blake, looking at mankind’s confusion with the real and perceived world,and the inability to see the big picture because of the narrow crevices of observation. From an auto-motive aftermarket perspective, Aldous Huxley could also have been writing about the SABS, andpeople’s perception of what actually the SABS is all about. To clarify this and to clear the uncer-tainty is very important, because it impacts strongly and has an effect on the diamond dialogues oftechnology, quality, safety, and value for money. Thus, Giel Steyn, who for years carried the man-tle of responsibility for policing quality and standards in the retail motor industry, wishes to openthe doors of perception on standards and controls.

To kick off, Giel Steyn would like

to compliment the SABS for the

role it has played and continues

to play – in the past, in the pres-

ent, and in the future. Standards bodies

like the SABS play an essential role and are

assets to any country, because as Giel puts

it, “no country or organisation without

standards has a long term future”, and

organisations such as Grandmark

International are proud of the quality stan-

dards that the SABS maintains, and are

proud to be associated with these stan-

dards. In addition, the SABS mark, which

guarantees a high level of consistent quali-

ty, performance, safety and durability, and

is conferred by the commercial division of

the SABS, is strongly accepted, and once

again Grandmark International proudly

uses this mark on certain important prod-

uct categories such as glass and lamps.

The question on many people’s minds may

still be. “What exactly does the SABS do?”

This question may apply to automotive

product, it may apply to domestic appli-

ances, and it may apply to many other

things that we use in our daily lives.

Irrespective of what the product is, the

principle remains the same. The SABS

originally served twin functions under one

Act of Parliament; known as the Standards

Act, including the regulation of compulso-

ry specifications. Thus the SABS was an

institution created by Parliament, with the

primary purpose of protecting the con-

sumer, and serving a national need.

Initially, both standards and the regulation

thereof were managed by the SABS, and

this did tend to cause confusion and even

the perception of a conflict of interest.

This was solved by a new Act for the cre-

ation of a National Regulator of

Compulsory Standards, independent of

the SABS, which is now covered by a

revised Standards Act. To take this line of

thinking further, the SABS consists of two

major entities: a Standards Division, to

fulfil its primary role, and a Commercial

Division, which runs on a profit motive

and charges for its services. The Standards

Division creates, establishes and maintains

standards, in conjunction with industry

and consumers. It has a very broad man-

date, covering an incredibly diverse and

broad canvas of product and services, rang-

ing from automotive, buildings, paraffin

stoves, condoms, even the grading of

tourism facilities It has marketing and

commercial functions, and as part of these

activities it has set itself up as an interna-

tional standards body with representation

on the international ISO committee, and

operates various testing facilities which are

internationally (SANAS) accredited. The

Commercial Division assists industry in

meeting these standards, but with a com-

mercial edge.

More on this in the next issue of ABR.

Giel Steyn

D i a m o n d D i a l o g u e s

EditorialPartnership

Opening the Doors of Perception toStandards and Controls

N o v e m b e r 2 0 0 954

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.

N o v e m b e r 2 0 0 956

INTERVIEW INTERVIEW WITH DARRYL JACOBSON –MD OF BURCHMORE’S

Q: You are one of the old style motormen?

A: Yes – my policy is you are in the motor

business to sell cars and to give service to

your customers. Stick with these two basics

and you will be successful.

Q: How long have you been in themotor business in South Africa?

A: For the last 24 years.

Q: Where did you start?

A: I started off in the motor business with

Currie Motors as a Financial Accountant.

They and I soon realised this was not for

me and I started selling cars in Pretoria and

ended up as a Dealer Principal for them.

In 1985 I joined the McCarthy Group

with City Motors selling Mazdas in the

centre of the city.

Q: What got you into auctioneering?

A: Errol Richardson, who was a heavy at

McCarthy’s, offered me a job in 1992 to

head up Burchmore’s, which had become

part of the McCarthy Motor Holdings

Group. Since then it has been my life. We

have expanded successfully from Sandton

to Durban and Cape Town. Generally we

have two auctions per week in each of these

centres.

Q: Burchmore’s are specialists?A: Yes, we specialise in selling motor vehi-

cles only, unlike some of the others, who

are all things to all people. We are a true

motor car auction group which has now

expanded into selling off the floor which is

a unique worldwide concept. In essence a

customer can buy off the floor or on auc-

tion.

Q: You don’t only sell to the Trade?A: No, we sell to both the trade and pri-

vate sector off the floor and on auction.

We auction Bank repossessions and also

McCarthy trade-ins to help the McCarthy

branches to move stock that is not part of

their franchise. Besides that, we are the

biggest Dealer for the Chinese Chery

brand in South Africa, which is also start-

ing to do well for us and will expand in the

future.

Q: How do you find the current carmarket?A: There is a sensitivity to price. People

want value for money and this is what we

give them. Thus the concept of wholesale

to the public.

Q: Are the banks helping you sell thesedays?A: Lately they seem to be loosening up

and we are fortunate that we sell at market

prices. Thus there is more equity in the

deal.

Q: Where did you grow up?A: I am a Yeoville boy, born and bred. I

went to King Edward School and played

cricket and did some competitive swim-

ming.

Q: What did you want to be afterschool?A: My first choice was hotel management

but was persuaded to do accounting by

protective parents.

Q: After school?A: I did my National Service and then

obtained a degree at Wits University but

the Board exam caught me out.

Q: Are your two children ambitious?A: Kelly, my daughter is a BA.LLb and

Adam, my son, is studying for his Masters

in Actuarial Science. They are far cleverer

than me.

Q: You have another ten years or so togo before you retire. What would youlike to do?A: Consult in the Used Car Industry,

which is probably the most important part

of the motor industry.

Q: Other ambitions?A: Go to the U.K. and become a full-time

professional fan of Tottenham Hotspurs

Football Club. I have always supported

them.

Q: Mentors in your life?A: There have been a number. Harold

Bromberg of Currie Motors, Ray

Nethercott who was my Principal

at Burchmore’s and obviously Brand

Pretorius, CEO of McCarthy’s.

P e r s o n a l p r o f i l e by Roger McCleery

When you think of vehicle auctions, only one name comes to mind. Burchmore’s. Whenyou think Burchmore’s, only one man comes to mind there as well. Darryl Jacobson.Despite the World and South Africa being in recession, Darryl and his team haveturned Burchmore’s into a company that is the jewel in the crown of the McCarthyMotor Holdings Empire.

Q & A

N o v e m b e r 2 0 0 958

Alert

A Volatile Rand

There are many issues confronting the automotive industry, most of them impacting onall the players across the spectrum. The automotive aftermarket segment of thisdynamic and complex industry plays a vital role in the mobility of South Africans, andmatters of concern are relevant to the industry as a whole. Automotive BusinessReview has introduced a monthly column, titled AAMA Alert, to bring to light thepros and cons of specific matters impacting the industry.

Listen to any news bulletin on the radio, or watch the

news on TV, and you’re bound to learn what you’ll be

paying for an ounce of gold or a barrel of oil on that

particular day. All important, because our psyche is

inextricably bound to the fortunes of gold, and our

economy is inextricably bound to the ups and downs of black

gold. You’ll also be apprised of how the stock markets are faring

across the globe, because the wealth of nations rides on the whims

of speculators like a demented roller coaster. And definitely, you’ll

be informed how many Rands you’ll need to part with to purchase

one US Dollar, or one Euro, or other important currencies in

which we trade, such as the Japanese Yen, the British Pound, or

the Zimbabwean Dollar. My apologies, scratch the last one. The

reason why we are fed this information, ad nauseam, on the hour,

is that the way our currency performs across the globe is impor-

tant to many people, not least the businesses importing and

exporting product, and in the case of the automotive industry

many businesses’ very existence depends on it. At the very least, a

volatile currency can make planning an absolute nightmare.

Many executives must yearn for the good old days, when curren-

cies were pegged as per the Bretton Woods Agreement, and

Reserve Bank Governors and Finance Ministers were consigned to

ceremonial roles. Investment decisions and procurement policies

were based on cast in stone currency values, and not the hit and

miss affairs that characterise today’s long term planning meetings.

South Africa is particularly vulnerable to the whims and fancies of

the arbitrage cowboys, as our currency is one of the highest trad-

ed on the planet. The Rand ebbs and flows on the neap tide of

Dow Jones and FTSE indices, commodity booms and busts,

political shenanigans, and even (pathetically in the case of New

Zealand) the fortunes of rugby and cricket teams, and the gender

of its athletes. The sporting analogy may be taking it a bit too far,

but there is no doubt that domestic and international events play

a significant role in the performance of our currency, and that the

speculators have a field day when big news is about to break, or

breaks, or even may never ever break. It is all a crazy St. Vitus

dance egged on by the suits in corporate suites and opulent offices

in Wall Street, or Throgmorton Street. Great grist to the mills of

Fleet Street, and headline grabbing stuff for the financial fourth

estate, but gut wrenching poison for those involved in the legiti-

mate business of manufacturing, trading and servicing. These

poor slobs are desperately looking for some certainty, so they

indulge in hedging to try to inject some sanity in their plans, but

even hedging has become something of a slippery slope to nego-

tiate, and many high profile businesses have been gored on the

horns of an injudicious gamble, not least being SAA.

From AAMA’s perspective, this horror story is the scenario facing

the executives responsible for the financial performance of auto-

motive component manufacturers and traders in the South

African automotive aftermarket, day in and day out, and particu-

larly for those who are subsidiaries of multinationals, and who are

expected to make investment decisions and to deliver a decent

return on that investment, not in Rands, but in the particular for-

eign currency of the head office of the multinational. It all makes

for a wild river ride akin to a number six rapid. ABR shall look at

this subject in more depth in the December 2009 issue. In the

interim, we suggest that you take a look at Tony Twine’s article on

page 18.

Let me illustrate. One of the first elements of a

CRM programme is to build a database about

your customer in order to understand them

better and meet them at their point of need.

Sometimes this is great, like the Amazon.com

experience. By tracking my buying patterns

they know what type of books interest me. The

information they share with me is therefore

great and relevant. Although not as sophisticated I also find value

from the things Fanatics (the Exclusive Books Loyalty

Programme) does. It also seems that the banks (especially the

smaller ones like Investec and BOE) seem to get it right with their

private clients.

Unfortunately it also seems that a lot of companies who do not

understand these concepts or do not want to make the proper

investment to do it right jump on the bandwagon. Consequently

we all get these endless streams of irritating SMS’s, e-mails and

phone calls about some product which I do not need (like a cell

phone contract – how can that be useful if I am already locked

into a 2 year contract!?). Sometimes the experience borders on

harassment. Having information about your customer and access

to cheap ways to communicate with them (like e-mail) does not

mean that people should be harassed. One always wonders where

they get your details…

Because of this phenomenon the authorities are finding it neces-

sary to implement legislation in order to protect the public and

the pending Consumer Protection Act of 2009 is a pivotal exam-

ple. This is an extensive piece of Legislation (380 pages long!) and

to my knowledge the largest Act ever to be promulgated. There

are now more laws governing the rights of the customer rights

than laws governing the health profession! This indicates that

something is going wrong – very wrong and I somehow feel that

the inappropriate application of CRM principles is responsible….

The positive thing here is that the unscrupulous elements are

being managed better and that the companies that do understand

and apply the elements correctly will not be affected by these laws.

The concept of free choice for the customers and opting into

being contacted is healthy and right.

With the necessary checks and balances in place where customers

are only contacted for the right reasons, maybe CRM can take its

rightful place again.

www.t-r-m.co.za

T 0861 TRM TRM

F 086 686 8382

C u s t o m e r C . A . R . E .

N o v e m b e r 2 0 0 960

Customer Relationship Management

– some grasp the valuebut most companies seemto miss it altogether orget it wrong!CRM is definitely a concept that has become part of our everydaylives. Some of our encounters are actually quite pleasant (whichis what it is supposed to be!) and some of the interactions aredownright irritating.

Theo Calitz has beenworking in or involvedin the motor industryfor the last 16 years.

A MechanicalEngineer by

profession, he is pas-sionate about customercare and his company, T-R-M specialises inautomotive CRM forthe automotive indus-try and has been doing

it for nine years.

N o v e m b e r 2 0 0 962

C u s t o m e r C . A . R . E . P r o g r a m m e

MODULE SIX – STEP # ONE :COMMITMENT TO YOUR CUSTOMER

You may have

noticed that in the

previous modules I

addressed the short-

comings of compa-

nies in the art of

customer care, with

a strong touch of

hyperbole. Such an observation is correct.

I have tended to go over the top, and to

over-dramatise both the situation and my

reaction. Why do I not approach the situ-

ation dispassionately, and clinically dissect

the facts, with a detailed plan to address

the shortcomings in a structured, unemo-

tional and rational manner? As a well-

trained manager, I should analyse the situ-

ation, define the objectives, assess the

resources and logistics, prepare a plan, ini-

tiate the recommendations, review the per-

formance, implement corrective action,

etc. etc. etc. I agree. You are correct.

Customer Care should be treated as a

management discipline, and a very impor-

tant one at that. It should be subjected to

the same checks and balances as, for exam-

ple, production management, or financial

management, or personnel management.

You are right, but so am I. Customer Care

policies, of course, must be exposed to the

same management scrutiny as all the other

activities in the company. Someone once

said that “Customer Care is a Science, not

an Emotion”. Once again, I agree, but

with an important rider. Customer Care IS

a science, not an emotion, but it MUST be

treated with PASSION! That is why I

repeat over and over again that CUS-

TOMER C.A.R.E. is the intellectual and

EMOTIONAL understanding that

C.A.R.E. means CUSTOMERS ARE

REALLY EVERYTHING.

There is a lot to be said for treating other

disciplines with passion, and maybe one

day some lateral thinking accountant ( do

they exist? ) will come up with some pro-

gressive and innovative new GAAP’s.

Imagine an accounting tome with the title

“Perspiring over the Double Entry”, or “I

got spanked on the bottom line”. In the

same vein, what do accountants use for

contraception? Their personalities!

Enough of this bean counter bashing -

some of my best friends are accountants.

We have just indulged in what may seem

to be some irrelevant and irreverent banter.

However, it is not irrelevant, because a

sense of humour is an important attribute

for any job, and it is vital for the correct

treatment of customers. I quote Victor

Borge, “Laughter is the shortest distance

between two people”. This, I heartily

endorse. So, we have established that pas-

sion is OK in customer care, and we’ve also

established that a sense of humour is not a

bad thing. What we are really saying is that

you must have fun in the workplace. Enjoy

what you are doing, and gain sustenance

and growth from it, be enriched by it. You

are spending most of your waking life at

work, so why waste your life? We’ll come

back to this important point in later issues.

But back to what I promised, and have

been threatening to do for some time - to

tell you how to create a customer care cul-

ture in your company. It’s easy - and it is

only the first part that could be tough for

the chief executive. As I’ve said frequently,

customer care begins with the chief execu-

tive, so we have to start there.

STEP # 1The first step is for the chief executive to

acknowledge that customer care is impor-

tant to the company, and important to

him/her. I don’t want shallow behaviour

here, we are talking true blue commit-

ment, and something akin to a born again

experience. Therefore, we need a “ public

“ ceremony. By public I mean in-house,

where every single employee is present. At

this ceremony, it is important that the

chief executive publicly acknowledges

his/her sins of the past, and to promise

that from this day forth, the customer will

take precedence over anything else.

We discussed the problem of LIP SERVICE in chapter five, and

the failure to live up to promises and commitments.

I promised that we shall look at ways of avoiding this, and to

explore the first steps to creating a customer care

culture in your company. Well, I do keep my promises.

– sponsored by Federal-Mogul

64

This is not an extraordinary promise, for in a true customer care culture, all

activities in the organisation would always be customer orientated anyway. I

recommend the laying of a wreath at the tomb of the unknown customer. An

actual physical monument should be erected for this occasion, as a reminder

of this very auspicious moment. This is to recognise the fact that many cus-

tomers have been lost because of past misdeeds, but more importantly, it is to

atone for these sins, and to publicly symbolise the commitment to never for-

get who the most important person is in everyone’s working life - the CUS-

TOMER! Heavy stuff, but symbolically important. If you believe that this is

all a bit rich for your company, then come up with something else, which is

more suitable for your culture, or personalities. But a heavy symbolism is nec-

essary, as it carries a certain weight. Don’t pooh pooh what I am saying;

remember the over the top funeral for Princess Diana, which was taken

extremely seriously by billions of people. Or, closer to home, the public adula-

tion of President Mandela on his 90th birthday. Everyone loves icons, and a bit

of pomp and ceremony. Now that you have made a public spectacle of your-

self, the process begins where everyone else is subjected to the same treatment.

Everyone has to make this commitment to the customer, in front of his/her

peers. Remember that at this stage everything is still symbolic and in-house.

You are still a long way from telling your customers how wonderful you are.

In the next module, we shall continue the saga of the unknown customer.

DISCUSSIONPOINTS

1. Tell a joke about your profession,e.g. if you’re an engineer, let’shear one about engineers.

2. Why is it important to be able tolaugh at life, and particularly, tobe able to laugh at yourself?

3. Do you think that it is demeaningfor senior management to “dirtytheir hands”?

4. You may not like the idea of hav-ing a tomb for the unknown cus-tomer, or the wreath laying cere-mony.

What suggestions do you have for aphysical reminder, and a ceremony?

C u s t o m e r C . A . R . E . P r o g r a m m e– sponsored by Federal-Mogul

65N o v e m b e r 2 0 0 9

Q & A

Roger McCleery asks the questionsSee how many of these 20 Questions you can answer.

by Roger McCleery

Answers on page 86

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

2. Who is his closest competitor?

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

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

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

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

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

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

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

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

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

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

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

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

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

16. What company manufactures the Renault Logan?

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

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

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

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

S h o w T i m e

67

Dunlop/Apollo’s Schramm confirmedas a keynote speaker for TyrexpoAfrica’10 conferenceA leading figure from the African tyre industry has agreed to speak at next year’sTyrexpoAfrica conference in Johannesburg. Georg Schramm, head of marketing andsales for Apollo Tyres South Africa (Pty) Limited, will be a keynote speaker at theinaugural event next March.

Mr Schramm is responsible for all

marketing and sales for the

Dunlop brand in South Africa

as well as Botswana, Namibia, Lesotho and

Swaziland. He will provide an expert

insight into tyre manufacturing in the

African market. He will be joined at the

conference by Dr Etienne Human, chief

executive officer of SATRP, the South

Africa Tyre Recycling Programme. Dr

Human will outline the work and remit of

the not-for-profit organisation that was

established to tackle the waste tyre prob-

lem in South Africa and support a sustain-

able waste tyre producer industry.

Members of the body include Bridgestone,

Continental, Dunlop and Goodyear,

Michelin, Pirelli, Maxiprest and Trentyre.

“We are delighted with the support we’ve

received from the industry in putting

together the conference programme,” said

ECI managing director Paul Farrant. “In

Georg Schramm we have a senior figure

from one of the country’s major tyre man-

ufacturers, while Dr Human will provide

an update on how the industry is respond-

ing to the challenge of dealing with the

scrap tyre issue that affects all producers

and distributors.”

Further speakers for the one-day confer-

ence that will run alongside the exhibition

will be announced in the coming months.

In other news, South African exhibitor

Tubestone will be showing a new range at

the exhibition for the first time, following

the announcement by managing director

Pieter Kruger that the company is set to

distribute the well-known Taiwanese

brand, Nankang. A full range should be

available by the time of the show. ECI has

also confirmed that visitors and delegates

can now use their online pre-registration

service at www.eci-international.com to

guarantee fast and hassle-free entry to the

show. Exhibition hours have been struc-

tured to include late night opening on

Friday until 8.00pm, allowing conference

delegates and visitors to attend after busi-

ness hours. The last day of the exhibition

will be a Saturday, offering further incen-

tive for those unable to attend during the

working week. By the beginning of

September, floor space for Tyrexpo Africa

2010 was more than 65% occupied and on

track to meet targets set by the organisers.

There is a current balance of 40% nation-

al to 60% international companies exhibit-

ing, with strong representation from

China, India, south east Asia, the Middle

East, Europe and the US. Commenting

on recent developments, Paul Farrant,

said: “It’s clear from the response we’ve had

from exhibitors that tyre businesses are

taking a very positive approach to 2010,

expecting that the worst of the economic

squeeze will have passed. Despite the slow

down, Southern Africa remains an attrac-

tive place to do business for international

buyers and sellers.”

Tyrexpo Africa 2010 will provide trade vis-

itors with direct access to tyre suppliers

including Stamford, Infinity, BKT,

Tandem, Techking, Tubestone and SA Tyre

Distributors, while those involved in

retreading will be able to do business with

the likes of Elgi Rubber Company and

Treadsdirect. Garage and workshop

equipment will be well represented by sup-

pliers such as Leaderquip, Hofmann

Megaplan, Rema Tip Top and Steinbichler

Optotechnik, for optical measurement and

sensor technology. A full list of exhibitors

can be found on the ECI website at

www.eci-international.com.

The third staging of Tyrexpo Africawill take place at the SandtonConvention Centre, Johannesburg(SCC) on 4, 5 and 6 March 2010.

N o v e m b e r 2 0 0 9

Before we go any further, some clarification, if you

please. ESP® is the most commonly used acronym,

but there are different names for the same safety

benefit. 80 percent of vehicle manufacturers in

Europe use the acronym ESP® for the Electronic

Stability Programme. Some carmakers market the

ESP® under different names, such as DSC (Dynamic Stability

Control), VSA (Vehicle Stability Assist) or VSC (Vehicle Stability

Control). The functionality and operation of the ESP®, as well as

the gain it provides in driving safety, is the same. The rationale

behind these systems is clear. Skidding is one of the main causes

of road accidents. International studies show that at least 40 per-

cent of all fatal traffic accidents are caused by skidding. ESP®

could prevent up to 80 percent of all skidding accidents. ESP®

recognises if skidding is imminent and intervenes at lightning

speed. The driver stays in control of the vehicle and does not get

into a skid provided that the physical limits are not exceeded.

ESP® is always active. A microcomputer monitors the signals from

the ESP® sensors and checks 25 times a second, whether the dri-

ver's steering input corresponds to the actual direction in which

the vehicle is moving. If the vehicle moves in a different direction

ESP® detects the critical situation and reacts immediately – inde-

pendently of the driver. It uses the vehicle's braking system to

"steer" the vehicle back on track. With these selective braking

interventions ESP® generates the desired counteracting force, so

that the car reacts as the driver intends. ESP® not only initiates

braking intervention, but can also intervene on the engine side to

accelerate the driven wheels. So, within the limits of physics, the

car is kept safely on the desired track.

ESP® substantially reduces the complexity of the steering process

and lessens the demands placed on the driver. ABS, TCS, and

ESP® were all introduced to the market by Bosch, and the contin-

uous development of the Electronic Stability Program ESP® by

Bosch engineers offers a variety of hardware variants and software

functions tailored to the requirements of different types of vehicle

i.e. passenger cars or light commercial vehicles. In addition, ESP®

is the future enabling technology: By networking the ESP® with

other systems in the vehicle Bosch realises a new dimension of

driving safety. The Bosch CAPS (Combined Active Passive Safety)

networks ESP®, the airbag system as well as driver assistance and

vehicle communication systems. The fundamental task of ESP® is

to prevent skidding. The possibilities offered by the ESP®, howev-

er, go far beyond this. As ESP® can build up braking pressure

independently of the brake-pedal position, a series of so-called

value-added functions can be realised with ESP®. These provide

additional driving safety and allow the driver to experience

enhanced driving comfort and driving agility. ABR shall look at

this in future issues.

1. Hydraulic modulator with attached control unit – the

modulator executes the commands from the control unit and

regulates, via solenoid valves, the pressures in the wheel

brakes. The modulator is the hydraulic connection between

the master cylinder and the wheel cylinders. It is located in the

engine compartment. The control unit takes over the electri-

cal and electronic tasks as well as all control functions of the

system.

2. Wheel-speed sensor – the control unit uses the signals from

the wheel-speed sensors to compute the speed of the wheels.

Two different operating principles are used: passive and active,

both measuring the wheel speed in contact-free mode via

magnetic fields, with the emphasis on active, identifying both

the direction of rotation and standstill of the wheel.

3. Steering-angle sensor – the task of the steering-angle sensor

is to measure the position of the steering wheel by determin-

ing the steering angle, and thus, combined with the vehicle

speed and the desired braking pressure or the position of the

accelerator pedal, the driving intention of the driver is calcu-

lated (desired state).

4. Yaw-rate and lateral-acceleration sensor – the yaw-rate

sensor registers all the movements of the vehicle around its

vertical axis. In combination with the integrated lateral-accel-

eration sensor, the status of the vehicle (actual state) can be

determined and compared with the driver’s intention.

5. Communication with engine management – via the data

bus, the ESP® control unit is able to communicate with the

engine control unit. Thus, the engine torque can be reduced

if the driver accelerates too much in certain driving situations.

Similarly, it can compensate for excessive slip of the driven

wheels provoked by the engine drag torque.

N o v e m b e r 2 0 0 968

ABR discussed the significance of ESP® (Electronic Stability Programme), in both thetechnological and safety implications, in its September 2009 issue, and we promisedto revisit ESP® and to have a closer look at the technical aspects. The subject isvast, so we shall discuss this revolutionary invention in broad strokes, as whilstABR tries to be all things to all people, we cannot claim to be a technical journal.

ESP® BasicsR o b e r t B o s c h

69N o v e m b e r 2 0 0 9

The Golden Triangle – KTS, ESI[tronic], and FSAIn the October 2009 issue of ABR, South Africa’s premier automotive aftermarket publi-

cation, we began a real life examination of how the golden triangle of the KTS Compact

Control Unit Diagnostic Tester, the ESI[tronic] Service Information System, and the FSA

Engine Management System Analyser; work in sync with a qualified and experienced tech-

nician to solve a diagnostic teaser. We continue where we left off.

To recap briefly: the owner of a five year old BMW 535i

(e39) brought the car in, complaining of hard starting

and no oomph. Carlo du Plessis, proprietor of Cencar,

and a fan of the golden triangle procedure, had pro-

gressed to identifying that the problem definitely did not lie on

the power supply side, using Bosch equipment and a judgement

call based on experience. The detective work continues, and the

next step is to look at the trouble codes (anything from one to

twenty codes) as identified by the KTS via a physical print-out.

This print-out also has another important function, in the realm

of customer care, which is to keep the money paying customer in

the loop. Once this vital function is completed, the next thing

that Carlo does is to clear these trouble codes, and to repeat the

procedure. If one or two codes don’t clear this indicate that some-

thing is definitely wrong, and this is where the focus now moves.

If all codes clear, then Carlo recommends a test drive to build up

the codes again, because the codes that are left after the repeat

procedure are the most likely culprits, and they are causing all the

other error codes. Thus the hunt is on in a focused way.

Step number three for Carlo is to look at the

fuel pressure, utilising the FSA and his expe-

rience. The usual suspect if the car is jerking

will be the spark plugs, whereas intermittent

jerking and power loss indicates to Carlo a fuel

problem. Now with the golden triangle Carlo has

an embarrassment of riches. He can use the KTS

to define the trouble codes around spark plugs, a relative compres-

sion test utilising the FSA to get an indication of the mechanical-

ly sound status, or go on to an air flow meter to measure air flow,

and as a corollary Carlo adds that he defines the lambda sensor as

the nose of the modern mechanic, as it smells trouble if there is

any trouble around.

Interestingly, in this case, the technician’s nose can also play a role,

as the odour of fuel is a telltale sign, and with this problem, the

whiff of something strange did lead Carlo to the eventual prob-

lem (but we will leave this for later). The modern car uses lamb-

da sensors to do the sniffing, as it is these sensors that detect

unburnt fuel or lack of fuel residue, which is used for feedback to

the ECU, and this clever little computer then regulates fuel and

air supply to bring everything back into balance.

Incidentally, the perfect ratio for the lambda sensor is 14,7 : 1 for

the perfect burn mixture, for reasons which we may go into in the

future.

Back to the problem.

Everything is still check-

ing out okay, so the

sleuthing continues,

which we shall cover in

the next issue of ABR –

once again, watch this

space.

A series of articles on the versatile FSA 720/740/754 series

A trained and qualified technician together with thegolden triangle makes for an unbeatable combination.

N o v e m b e r 2 0 0 970

I n s i g h t s

To join Capricorn Society Limited call Rob Mildenhall on083 654 2094 or e-mail him at

rob.mildenhall@capricorn.com.au or visit their website onwww.capricorn.com.au

Capricorn Society – an Effective Marketingand Sales Tool in the Automotive AftermarketSupply and Service ChainSouth Africa has an increasingly diverse car parc of over eight million vehicles plying its congested roads. Over five millionof these vehicles are passenger vehicles, and together with their larger cousins, they are a veritable goldmine for the purveyorsof automotive parts and service. The problem is that this goldmine is not just a few shafts in one location. It is spread acrossthe width and breadth of our vast country. Granted, 71% of this car parc is concentrated in just three provinces; Gauteng,the Western Cape and KwaZulu Natal, but this is still a substantial area. And the other 29% spread more thinly over theother six provinces cannot be ignored. Irrespective of where you find these vehicles, the vast majority of which are in dailyservice, either private or commercial, they do need to be kept on the roads in serviceable condition, and this is where thegreater automotive aftermarket supply and service chain plays a vital role. Capricorn Society Limited is an integral part ofthis supply and service chain.

The Automotive Aftermarket is huge and diverse,

and no one has come up with a definitive number

of the participants, but the accompanying box

provides a reasonably accurate guideline of who’s

who in the aftermarket zoo. Over 15 000 estab-

lishments; small, medium and large; who have to

be communicated with on a regular basis, which is a daunting task

no matter the size of the organisation. Magazines such as

Automotive Business Review can play a respectable role in com-

municating with the automotive aftermarket, but for day to day

interaction an army of representatives is required, which is simply

not economically feasible. Organisations thus have to make do

with varying levels of resources and utilise a range of procedures

and actions to get their message across, and to create demand for

their products. ABR caught up with Malcolm Perrie and Chris

Hillier, CEO and Sales & Marketing Director respectively of

Federal-Mogul Aftermarket Southern Africa (Pty) Ltd, at the

Midas/NAPA Conference held recently at the Emperors Palace,

Gauteng, on the 24th October 2009, to discuss one such support

mechanism, the Manufacturer Alliance Partner Programme of

Capricorn Society Limited. This programme is a vehicle created by

Capricorn to allow manufacturers and suppliers to cost effectively

get their message across to the Capricorn members, and very

importantly, to provide goods and services. The verdict from both

gentlemen was loud and clear – the Capricorn Preferred Supplier

Loyalty Programme is a winner. It allows suppliers such as Federal-

Mogul Aftermarket (FMA) to manage their supply chain and to

create demand pull right through the chain via incentives such as

reward points through the Capricorn Reward Points scheme.

FMA can purchase additional reward points to increase the incen-

tives on specific promotions, which allows them to target specific

customer groups, leveraging off the Capricorn data base. There are

many benefits to this, says Malcolm Perrie, not least the access to

a “phenomenal network of workshops”. Malcolm says that it is a

win-win situation, as the product is pulled through the tradition-

al distributor/wholesaler/retail channels, thus benefiting the entire

supply chain, and not being a threat to FMA’s distribution part-

ners. In addition, it creates a marketing platform for promotions,

branding, and awareness campaigns. And it even uplifts the work-

shops, as with the extra reward points they can offset against pay-

ment towards their account thus freeing up capital in the business

to purchase such necessities as tools, uniforms, etc. Malcolm and

Chris are in agreement that “it is another string in our bow, and it

sustains a great partnership, which is built on trust and respect.”

• 4400 garages and fuel stations (most with service

workshops)

• 1800 specialised repairers

• 1350 new car dealerships

• 1580 used vehicle outlets

• 300 component manufacturers

• 150 “other” manufacturers

• 1700 tyre specialists and retreaders

• 480 engine reconditioners

• 170 body builders

• 2770 parts dealers

• 180 farm vehicle and equipment suppliers

The Automotive Aftermarket

The peripatetic duo of Malcolm Perrie and Chris Hillier, respectively CEO and Sales & Marketing Director of Federal-

Mogul Aftermarket Southern Africa (Pty) Ltd

Pretoria Diesel Centre was estab-

lished in 1968 by Mark Ratzer’s

father-in-law as a Bosch Service

Centre under the auspices of

Diesel-Electric (Transvaal). Diesel-Electric

South Africa looked after the interests of

the Bosch brand in those days, before

becoming a wholly owned subsidiary of

Robert Bosch South Africa in 1983. In the

1960’s and 70’s Pretoria Diesel Centre did

a lot of work for the mines and the defence

force, with the army being only too happy

to march to Pretoria whenever specialised

diesel repair work was required. Today the

clientele is far more diversified, and it was

on this basis that Mark decided to join e-

CAR as a Gauteng pioneering member on

9th September 2004. Mark realised that to

secure his future he needed to belong to a

strong national network, and when e-CAR

was introduced by the Diesel-Electric

organisation, based on a successful

European format with a few South African

tweaks, Mark had no hesitation in joining

this “new” concept in South Africa, as he

was familiar with the model and had even

suggested some ideas suitable for the

South African market. He also saw it as a

homecoming as an ex Bosch outlet, and he

had confidence and trust in the Diesel-

Electric philosophy of building up a net-

work for the good of all parties, i.e. not a

one sided deal.

Five years later, Mark has no regrets, only

plaudits. He has the legendary Diesel-

Electric support, access to Bosch training,

and the flexible marketing package avail-

able to e-CAR members which allows for

local marketing campaigns designed just

for Pretoria Diesel Centre, over and above

the national marketing initiatives. Mark

sees this as an all round package ideally

suited for him, as his locality is prime, his

partners are prime, and the support struc-

ture is prime. Pretoria Diesel Centre was

already a high value business in 2004; now

with the e-CAR connection its value has

increased substantially.

Mark Ratzer describes himself as the proud owner of Pretoria Diesel Centre cc. Notin an arrogant way, but rather in the confident and self-assured manner befittingsomeone of his background and training as a Bosch Diesel Technician, which has givenhim the tools and ability to solve any diesel problem thrown at him.

Marching to Pretoria

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

Potgieter Street is one of Pretoria’s busieststreets, which puts Pretoria Diesel Centre in

a prime position. With over 40 000 carsstreaming past every day, this welcoming

e-CAR sign pulls in 70% of PDC’s clientsoff the street, which is an amazing statistic,and testament to the pulling power of South

Africa’s fastest growing workshop concept

Mark Ratzer is a pioneer in his field. The first company in Pretoria to offer EDC

(Electronic Diesel Control) repairs, the seconde-CAR in Gauteng, and the first e-CAR

with a Diesel Pump Room

73N o v e m b e r 2 0 0 9

M I D A S m o m e n t

N o v e m b e r 2 0 0 974

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

In a rare concession to emotion, Gordon Odgers wiped away

a tear as he bid adieu to 12 years at the helm of Midas, which

he had joined in 1997 in a tough turnaround role, being sec-

onded from the Dorbyl Group, which in those days held the

controlling interest in Midas. Gordon described the bumpy ups

and downs during his tenure (which he describes as the best job

he has ever had), and acknowledged that Midas was at times on

the precipice during the early part of his stewardship, but its

inherent strengths saw it through, buttressed by the support of a

strong and committed team, and the invaluable guidance of

Chairman Chris Ransome. Gordon thanked each executive indi-

vidually for the role they played in taking Midas to the heights

where it is today, and passed on ten principles to his successor,

which he has always lived by:

1. The Customer is King, Queen and Prince. 2. If in doubt, go with what the market needs. 3. Respect the Business Model, only alter a pillar if the market

has illustratably moved on. 4. Respect the Midas Associates. Tough love encompasses the

required philosophy.5. Value our Partner Suppliers by exceeding their market share

aspirations. 6. Don’t bet the farm, too many lives are at stake.

7. Respect the Shareholders, its their money at risk and theGroup does not belong to the Management.

8. Participate in Industry initiatives and illustrate responsiblemarket leadership.

9. Leave the environment in a better place than you find it. 10. Finance is only a consequence but requires attention in detail,

focus on controls and a diligent forward look to ensure thenecessary platform is in place for the Group’s needs.

Warren Espinoza, in his acceptance speech, graciously accepted

the values which Gordon had instilled in Midas, and committed

to their continuance. He acknowledged Gordon as his mentor,

and praised him for his long list of achievements, and mentioned

that many pundits had over the years underestimated the success

that Midas has achieved. He pointed out that Gordon’s stature in

the industry was exemplified in his receiving the RMI Person of

the Year award in 2007, an award that only comes with immense

personal sacrifices. He described Gordon as a Supreme Strategist,

a Clear Thinker, and most importantly, a Nice Bloke. Warren

thanked Chris Ransome for the confidence shown in him, and he

assured the convention delegates that he takes the responsibility

bestowed upon him seriously, and committed to maintaining the

Midas culture, which facilitates personal growth, and encourages

debate from a diverse range of personalities.

For more information on the Midas Napa 2009 Convention, please see insert in this magazine. Also available at www.abrbuzz.co.za under the Aftermarket section

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

N o v e m b e r 2 0 0 976

Launching Customersfor LifeLaunch Tech Co was established in Shenzhen, Gaungdong Province, China, in 1992, ascion of a small computer company of the same name that had been manufacturing per-sonal computers since 1987. Launch Tech Co blossomed, riding on the back of thesurging Chinese automotive industry, and is today the leading Chinese company inautomotive diagnostics and a global supplier to the automotive aftermarket. SouthAfrica has been a beneficiary of this growth.

Launch Technologies SA (Pty)

Ltd. was registered in South

Africa in 2000. Launch’s Head

Office is based in Jet Park,

Johannesburg, Gauteng, and it has a

branch in Durban, KwaZulu Natal, and

distributors in Cape Town, Western Cape,

and Port Elizabeth, Eastern Cape. These

distributors, together with a network of

sales agents throughout South Africa, have

allowed Launch to become a major suppli-

er of automotive aftermarket service

equipment to the automotive and allied

industries in Southern Africa. The quality

range of Launch equipment and products

are fully backed-up and serviced by in-

house after-sales service teams.

Launch Technologies is committed to

keeping its customers for life, and this

philosophy extends to offering trade-ins

and upgrades at very good discounts, soft-

ware upgrades, and hands-on training that

focuses on how to use the equipment.

Launch also recognises the need to take

this training one step further, and one of

the many projects it is working on is the

proposed establishment of franchised

quick repair shops, to facilitate further

training on how to take diagnosis and

trouble-shooting further, on actual repair

techniques.

Launch is acutely aware of

the need for workshops to

have access to finance and

credit for both capital

requirements and opera-

tional costs and working cap-

ital, so it is a preferred supplier

to Capricorn Supplier Limited, a

forward looking cooperative that offers

a range of innovative business assistance

packages.

Launch Technologies SA is also in the

relatively unique position from a global

perspective in that Jackie Li, the CEO, has

direct contact, and is in daily contact with

Launch Tech Co Ltd’s head office in

Shenzhen. Jackie Li spends a lot of time at

Launch’s head office, and has his own

office at headquarters, and his close rela-

tionship with the President allows him to

stay abreast of all the latest developments

and projects, and gives him favoured sta-

tus as an international ambassador for

Launch. In actual fact, he is merely a

phone call away from the President, and

this special relationship

translates into extra

special service

for Launch’s

S o u t h

A f r i c a n

customers.

Therefore it

is no wonder

that of the

workshops in

South Africa

using Launch

equipment, that 70% of

their requirements are met by Launch

Technologies.

A series of articles on Launch Technologies SA (Pty) Ltd

78

Algoa Bay Welcomes PartinformIn 1799, a fort was built on a hill overlooking the mouth of the Baakens River, as alookout for enemy ships, and cannon emplacements were in place to repel anyonefoolish enough to set foot ashore. A lighthouse was also built on the Donkin Reservesome time later to warn the ancient mariners that they were too close to shore. Notvery friendly, but Port Elizabeth is today a far more welcoming place, and Partinformwas warmly welcomed at the ETC Training centre at the entrance to the Ibhayi suburbon the evening of 13th October 2009.

The reason for this friendliness was not just a

manifestation of the modern Port

Elizabethan character, but an acknowledge-

ment that Partinform was the purveyor of

important news, and a message that will resonate with

anyone in the automotive trade who has pride in their

work, pride in their tools, and pride in their commit-

ment to fitting only quality parts. Quality parts equals

branded parts, quality parts equals professionalism,

quality parts equals safety, quality parts equals value

for money, and quality parts equals customer care.

This message was on display at every single stand at

Partinform and this message was on display in the

exciting competition held to find a winner for the

Forza Racing Ferrari Track Experience, which will take

place on Friday 19th November 2009. The responsi-

bility of each and every participant in the logistics

chain of providing these quality branded parts comes

down to keeping South Africa’s car parc in pristine

condition. The modern motorist is feeling the pinch,

and with the car par aging, the onus rests on the auto-

motive aftermarket to provide superior levels of serv-

ice in all its aspects; from the provision of decent

product at realistic prices, to the provision of after

sales support in technical and warranty prolongation.

ABR Readers Strike GoldABR’s readers had to wait a long time, but it was worth the wait, particular-

ly for those who struck gold. At the Port Elizabeth Partinform event, four

winners were drawn from the hat, to join the eight others at the Forza Racing

Ferrari Track Experience on 19th November 2009. These readers have been

sending in their entries since early this year, and the four that came out of the

hat in Port Elizabeth were:

• Denise Darlow, Associated Brake and Clutch, Port Elizabeth• Keshin Govender, Kapico South Africa, Krugersdorp• Marius Crous, City Council of Matlosana, Klerksdorp• Prean Govender, Diesel-Electric Vaal, Vereeniging

In a big coincidence, Andre

Rossi of Associated Brake &

Clutch, soon to be trading as

CBS Port Elizabeth, was

present at the draw, and he

was quickly on the phone to

give an incredulous Denise

Darlow the good news. ABR

asked Andre how excited

Denise would be to drive a

Ferrari, and he assured us

that Denise is “up for any-

thing”. He also wistfully

added that she seemed to have a propensity for winning competitions – but

then you have to enter to win, which is what Denise did, folks, so remember

this when the competition comes around next year.

Howard Keeg follows the action

N o v e m b e r 2 0 0 9

79N o v e m b e r 2 0 0 9

The big winner of the night was LeslieKretzmann of Triple L Plant Hire, PortElizabeth. Here Leslie is seen exhaling insurprise as the magic briefcase opens inhis favour. Leslie will be joining the other11 winners at the Forza Racing FerrariTrack Experience on 19th November 2009.

N o v e m b e r 2 0 0 980

The Schaeffler Team, left to right: Cavin Hearne, Product MangerBearings; Phillip Erasmus, Customer Service Manager;

Daniel Wolff, Business Development Manager, Engine Componentry,Schaeffler Group Automotive Aftermarket; Tim Langdon, General

Manager Automotive Aftermarket

The Project Coordinators for the Nelson Mandela Metropolitan

University Formula S project made a pit stop at Partinform, to intro-

duce themselves to the Partinform guys, and to see what was on show.

Left to right, Malcolm Perrie, AAMA Chairman; Howard Theunissen

and Trevor Stroud, NMMU; Colin Murphy, Partinform Chairman

An international flavour was added to the evening with the

attendance at the Schaeffler stand of Daniel Wolff, Business

Development Manager, Engine Componentry, Schaeffler

Group Automotive Aftermarket. Daniel was visiting South

Africa in his capacity as an INA specialist.

C o m m e r c i a l v e h i c l e U p d a t e

N o v e m b e r 2 0 0 982

South Africa’s ToughestWarrior

The bold statements continued when Mr Lee of DFM

Commercial Vehicles in China stated, “In a few years,

DFM will be the number one commercial vehicle

brand to come out of China.” Bold statements

indeed, especially considering the harsh conditions

that trucks are forced to deal with in South Africa. However, these

statements were made with good reason on this occasion. The occa-

sion was the launch of what DFM Warrior claim to be a notorious-

ly tough truck, the Kinland.

The official launch of the vehicle is 20 October 2009, but major

clients were invited to Gerotek for a day of information sharing and

vehicle testing one week earlier. While the Kinland range is new to

South Africa, it has been operational elsewhere since 2006 and is

said to have returned nothing but benefits. In fact the Kinland,

marking DFM’s foray in to the heavy duty segment, has enjoyed

record-setting growth, being pegged as the fastest growing vehicle

measured in the same market. The Chinese vehicle hosts a French

engine from Renault under its cabin, but this seems to be a multi-

national partnership that really works. According to Richardson,

DFM’s Kinland range went through rigorous testing, going

through myriad road and weather conditions ranging from -40° C

to 40° C, and did so for over a million km.

That said, Gerotek’s testing grounds should have proved no prob-

lem, and true to the Kinland form, they didn’t. The rigs were fully

laden, some weighing up to 59.3 t. Technically an overload given

the legal limit of 56 t, this was not an issue at Gerotek, and also not

an issue for the Kinlands. Customers were invited to experience the

thrill of a high-speed trip around Gerotek’s oval circuit in the

Kinland, and none left unimpressed.

The vehicles were put through their paces in front of customers’

eyes, and this only served to further entrench the toughness of

DFM Warriors, the Kinland specifically, in their eyes. Testament to

the vehicles versatility though, is what Mr Lee said in conclusion at

the day’s luncheon: “It will be China’s leading heavy duty truck on

the basis of its reliability, safety, comfort and economic efficiency.”

“Warrior has been assembling, marketing and selling DFM com-

mercial vehicles in South Africa since 2002,” notes Richardson. The

manufacturer itself though, has been in operation since 1969, and

it has experienced substantial growth over the past 40 years. Today,

DFM’s assets are in excess of 15 billion Yen.

However, despite this massive growth, Richardson comments that

the most important things to DFM are caring and being both reli-

able and professional. “The customer is at the centre of DFM’s

focus,” he states. This is clearly illustrated through the products that

the Chinese manufacturer offers. The DFM Warrior Kinland,

while living up to the DFM traditions of quality, safety and effi-

ciency, also proves that it is tough enough to bear the Warrior

name.

“The name Warrior was established in 1997 for our tough-as-nails bus range.” Thisis what Paul Richardson, DFM Warrior’s national sales manager, has to say about thebrand’s etymology. The DFM comes into the name because of the relationship thatWarrior formed with Dongfeng Motors; which is one of the three giant automakers inChina according to Richardson.

By Richard Macaskill

The new DFM Warrior Kinland carries maximum load withno problems.

g r e e n N e w s

83

Going slowly, butgoing somewhereAll over the world peopleare going ‘green’.Companies sing praises oftheir carbon neutrality,corporate social responsi-bility has moved almostexclusively to preservingour environment andvehicle manufacturers, ofcourse, punt their new,fuel-efficient and environ-mentally-friendly vehicles.

Not to take anything away from the aforementioned

categories; many people have invested millions of

Dollars in looking after our environment, and they

should be commended. But doesn’t it feel like South

Africa didn’t get an invitation to the green party? One hears of the

Euro 5 and 6 regulations that are coming into play in Europe, yet

in South Africa we are only on Euro 2 – and that’s not even all

vehicle segments.

Heavy duty trucks, for example, were excluded from the Euro 2

compliance made mandatory in 2008. Why, you ask? Why are we

so far behind our northern counterparts? The fact of the matter is

that South Africa is just not ready yet. Our fuel is not up to

scratch - we got an invitation to the party alright, we just didn’t

bother to dress up and go.

“We have Euro 4 and 5 technology available that we could bring

to South Africa tomorrow,” notes Rory Shulz, general manager of

corporate planning and marketing for Nissan Diesel. Things are

moving forward in South Africa though, and Nissan Diesel is at

the tip of the spear. The Cradle of Humankind was an appropri-

ate venue for the manufacturer’s Euro 2 presentation held on 6

October. From 1 January 2010, all vehicles in South Africa must

comply with Euro 2 regulations, this time including heavy duty

vehicles.

Said the guest speaker, Lloyd Christie, senior associate and an

environmental specialist at Edward Nathan Sonnenbergs:

“Transport has a significant impact on the environment, and this

has led to it having to be regulated.” In order to comply with the

pending regulations, Nissan Diesel used the opportunity to

launch a new series of engines, ones that will be Euro 2 compli-

ant even when coupled with the heaviest of trucks.

“We have to listen, first and foremost, to our customers require-

ments, but we also have a responsibility to bring in products that

comply with legislation,” states Shulz. According to Shulz, we are

only on Euro 2 because fuels in South Africa are not of a high

enough quality yet to power engines that are Euro 4 and 5 com-

pliant; the vehicles would not work. “We want to offer customers

a vehicle that will work equally well in Johannesburg and

Potchefstroom,” Shulz added, “but because of the fuel quality we

can’t do this yet.

“We are a developing country, and we don’t have the luxuries that

developed countries do.” Shulz further noting that it is important

to develop the technology at a reasonable rate. “This technology

is affordable; there’s no big price increase.” This is a critical ele-

ment of developing green technology in South Africa.

It is simply not realistic to develop too much too quickly in a

country such as our own – the technology will become more

expensive and less reliable due to the lack of infrastructure.

Christie mentioned that the automotive industry as a whole has a

responsibility to work with the South African government to

develop our environmental conscience at a reasonable rate, not

too slow and not too fast.

So it’s true, we may have missed the bus to the green party, but at

last, we’re on our way there now.

N o v e m b e r 2 0 0 9

By Richard Macaskill

One of Nissan's new Euro 2-compliant engines in the flesh, sure to keep the environ-ment green as well as keeping your fleet on the street.

Steven Koch, until recently the GM President of African

Operations & GMSA Managing Director, was the voice

from the past, and his successor, Edgar Lourencon, togeth-

er with Nick Reilly, General Motors International

Operations President and parent company General Motors Vice-

President, were the voices of the future. Steve Koch is still a young

man, but because of the recent upheavals at GM, a window of

opportunity vis a vis retirement, had opened up for his generation,

and it would have been financially imprudent for him not to avail

himself of the generous option. It was thus a bitter sweet farewell

for him, because as he pointed out sincerely, the last two years had

been for him the best time of his life. The times were challenging,

but GMSA had come out of the crisis in good shape. Labour rela-

tions are as sound as they could be, dealer satisfaction levels at an

all time high, the relationship with dealers ditto, positive cash

flow, a big investment in the Parts Distribution Centre at Coega

showing confidence in the future – and this during trying times!

Steve said that whilst there was still a long way to go, the platform

has been laid for a bright future. As he put it, “Keep your eyes on

GMSA”. From a global perspective, Nick Reilly says that GM is

in survival mode with an overwhelming sense of humility. The

global downturn and the Chapter 11 humiliation had been

instructive for all, and have made him question everything he

does. GM’s cost levels in America are down to such an extent that

they are in a position to make money at industry levels of 11 mil-

lion unit sales. Historically, 16 million units have been the norm

and they will go back there. Even in 2010 they should be at 12 to

13 million units, so as long as GM can turn around market share,

2010 should see some profits. The big challenge is the company’s

image, which GM is working assiduously in improving via a

provocative marketing campaign. Apart from Europe, GM is

doing well in Asia, South America and other emerging markets.

South Africa is looking good, and from a micro perspective Nick

says that GM is working very hard with the suppliers, as localisa-

tion is very important. In a final aside, Nick says that the number

one priority for GM in America is to pay back the government

loans by the end of 2010 and to go public again, and in so doing

to thank those who have made sacrifices and to pay them back by

surviving and staying humble.

Edgar Lourencon hopes to bring some Brazilian flair to South

Africa (maybe he can assist with Bafana Bafana), and his vision is

to see South Africa emulate Chile, where GM has been top dog for

27 years. Edgar’s primary experience has been in South America,

and he says that his experience of the Argentinean that should help

him, as it is of a similar size and similar conditions. Edgar is real-

ly looking forward to his time in South Africa, and acknowledges

that he is having to fill some big shoes and has a great responsibil-

ity in keeping GMSA on the right track. This responsibility he rel-

ishes and he also regards himself as a lucky man, being at the helm

during the Soccer World Cup. His last three assignments have

been Chile, Argentina and South Africa, and as he say, “three

beautiful countries, and all making great wine!”

More on this wide ranging discussion in the December issue

of ABR.

*a nod to Words in action

L I F E G O E S O N

N o v e m b e r 2 0 0 984

Power GM Trio Briefs the MediaSaturday, 19th September 2009 was an auspicious and epiphanetic* day forme. I had been invited third hand to a function at GM’s Woodmead offices,and not having the benefit of knowing what exactly the function was allabout I, unlike Jane Austen, went with very little expectations. As the officesare a mere five km from my home, it was still 50/50 that I was going to attend

a mere 30 minutes before the function. Wow, was I glad that I went along. It provided greatgrist to my Life Goes On series mill, as three men with great responsibilities, one in the past,and two in the future, gave a wide ranging overview of the South African and global auto-motive industry, and one was left with a sense that GM is in safe hands.

by Austin Gamble

C o r p o r a t e C o n s c i e n c e

85

Midas Scores Way Above ParBy Richard Macaskill

Yes, you did read that correctly. Although it was a golf day, birdies and parswere not the order of the day, because Midas was way above par at its annualcharity golf day held at the Royal Johannesburg and Kensington Golf Club on15 October 2009. Midas’ golf day alone raised over R100 000 for charity,including three schools and hospices nationwide. Donations on other days putthe total closer to a quarter of a million Rand.

The schools are the Dias Farm School in Port Elizabeth,

the Phaphamani Primary School in Durban and the

Madibatlou Middle School in Olifantsfontein, plus of

course, the hospices. So while these entities benefit

from the charity, these are passed on to the less fortunate people

that fall under their varying umbrellas, meaning that hundreds

of people will reap the benefits of Midas’ 2009 charity golf day.

“The sole reason for this golf day is to raise funds for charity,”

said Warren Espinoza, COO of the Midas Group. “This is

Midas’ primary charity event of the year.” With a focus purely on

raising money, it is no surprise that Midas’ fourth annual chari-

ty golf day was such a vast success. Importantly though, Midas

does not just raise the money and give it away. “It is more than

just the money,” stated Espinoza, “Our focus is to uplift the

community.” This is done through performing community proj-

ects and improving not only the schools and hospices that Midas

helps, but improving the lives of those involved as well.

Facility improvements, bursary programmes and feeding

schemes are just some of the ways through which Midas further

aids its charities.

The focus of the evening was more about fun than formality,

and this was a hugely successful formula. From auctioning off

insulting t-shirts for more than original Bulls rugby jerseys to a

golf trip to the United Kingdom being sold for a phenomenal

R60 000, Midas managed to make people not only feel good

about donating to charity, but to have one hell of a good time

while doing it.

Although no-one won the Harley Davidson on offer for a hole

in one at the fifth, everyone truly enjoyed themselves. Months of

hard work paid off, and no-one will be happier than those whose

lives are positively affected by Midas and its charity. R100 000

later, it seems Midas has its slogan right then – because there

really is more to Midas.

N o v e m b e r 2 0 0 9

The golf was good... but the fund raiser was definitely the highlight of the day.

N o v e m b e r 2 0 0 986

All of the ideas and projects initi-

ated by Patrick Latouche are

closely aligned with the princi-

ples that ABR espouses to, so

there has been a significant amount of

champing at the bit to reveal the results of

these efforts, whilst also appreciating that

the changing of a culture takes time and

persistence. The good news is that Patrick

has finally relented, and during our

October interview he disclosed that since

June 2009, the business has consistently

performed above targets, culminating in

the month of September 2009 which was a

record month for Sparepro, in sales, mar-

gins, and bottom line. Working as individ-

uals, and more importantly working as a

team in a friendly but competitive envi-

ronment, every single member of the 14

person sales team achieved their targets,

whilst seven broke their all time sales

records, resulting in Sparepro’s sensational

September results. The truly heartening

aspect is that this was done without ridicu-

lous prices, which may have been the

modus operandi of the past in business

generally, and is testament to the growing

sophistication of the automotive aftermar-

ket traders and customers, who are becom-

ing increasingly savvy, and who no longer

get excited about unrealistically low prices

– conversely, the savvy trader gets suspi-

cious, and rightly so, as there is no such

thing as a free lunch. The perception of

value is changing for the better, and

Sparepro’s customers no longer look at

pricing as the be all and end all. Customer

service, customer relationships, and cus-

tomer loyalty is gaining traction. The cus-

tomer is now starting to equate delivery

performance; warranty support; supplier

commitment, empathy and reliability with

value for money. The customer is also

starting to support the set of overall values

that the business stands for.

Patrick says that this has been a long term

process. He compares it metaphorically

with the planting of a tree. Once you plant

a tree, you need to water it, fertilise it, to

nurture it, even to take a leaf from Prince

Charles’ book, and talk to it. This energy

and nourishment will eventually bear fruit,

and Sparepro’s September performance is

living proof. Patrick’s surname is indeed

appropriate, as his light touch in making a

point rather than a heavy handed

approach, has produced the results with

appreciative acknowledgement. He says

that the days of aggressively attacking the

competition and starting price wars are

long over, as these tactics have short term

effects with detrimental long term conse-

quences. The light touch involves finding

the right balance between market share

and acceptable returns on investment,

based on solid strategies and sound busi-

ness principles. This is the foundation to a

successful business, capped with the

respect of your employees, your customers

and your competitors, and the key to it all

is dignity.

The Tree Bears FruitFor close on a year, ABR has been banging on about the Herculeanefforts of Patrick Latouche, CEO of Sparepro, in bringing change to theculture of the organisation. There has been a hidden agenda in these arti-cles, which is to prove that employee morale and motivation, togetherwith committed customer care, charged with energy and focus, and allbased on sound business principles and a sincere corporate consciencespiced with community and social initiatives , can have remarkable results.

This avocado tree was nurtured andnourished, and these efforts bore fruit.

This avocado tree was left to fend foritself, and whilst it has survived, it has

yet to bear fruit.

1. Jensen Button2. Rubens Barricello3. Comfort Coupe4. Duncan Vos5. Fiat6. Hennie Groenewald7. Citroën8. McCarthys and Imperial9. Mannie da Canha10. Francois Pretorius

11. Alonso and Massa12. Malcolm Gould13. Tiger Wheel and Tyre14. Peugeot15. 2516. Mahindra in India17. Ten years18. Volkswagen 118 kW 1.4 TSi Engine19. Mercedes Benz20. 1.5 million.

Answers From page 66

C o r p o r a t e C o n s c i e n c e

SABAT HOSTS THE 7th ANNUAL POWER WHEELCHAIR RACE AT

KYALAMI DURING THE VODACOM POWERTOUR ON THE 17th OCTOBER 2009

Errol Innes pres-ents Arie Seirlisof QASA with acommemorativepicture.

Quads hit thetrack

Corne Strydomof PowertechBatteries chatsto Ari Seirlis ofQASA.

SABAT hosted 30 quadriplegics from the QuadPara Association of South Africa (QASA) for the Annual Power

Wheelchair race around one kilometre of the Kyalami circuit on Saturday 17th October 2009.

This was the seventh year the event, the

only one of its kind in the world, was

held. 30 quadriplegics lined up at the

bottom of Mineshaft at one hour after

midday and raced to the finish line at the end of

the main straight at Kyalami to see who would be

crowned "The fastest Quad". The event is open to

both men and women, who all use SABAT batter-

ies to power their appropriately prepared wheel-

chairs. SABAT have an ongoing relationship with

QASA, sponsoring all members who use power

wheelchairs with a pair of batteries per annum to

keep them moving and mobile. "This project

enables quadriplegics the opportunity to remain

mobile through the use of SABAT batteries and

thus save hundreds of Rands. The race event gives

those of us who use power wheelchairs an oppor-

tunity to re-discover the joy of competitiveness

and feel the adrenalin, often lost through disabil-

ity" says Ari Seirlis, National Director of QASA.

30 000 Kyalami spectators were on hand to cheer

the participants on race day, while top speeds of

16 km/ph were achieved by the front runners.

Power Wheelchairs cost between R20 000 and

R100 000 and these essential mobility aids allow

quadriplegics the freedom and independent

movement they deserve. QASA encourages quad-

riplegics and paraplegics to participate in sport

and hobby activities and the SABAT POWER

WHEELCHAIR RACE is a perfect platform for

the users of power wheelchairs to demonstrate

their toggle driving skills and to enjoy the thrill of

some wind in the hair competition.

87N o v e m b e r 2 0 0 9

S h o w T i m e

N o v e m b e r 2 0 0 988

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

“All the major players have expressed an

interest and once we have fully briefed

them on what the show will offer them,

we will be getting into the hard marketing

of the exhibition. The excellent response

we have received so far reinforces our

belief that it is time for a show of this

nature, that will showcase the heavy vehi-

cle industry, which is a key sector of the

transport business,” Fourie added. Three

of the biggest exhibition halls at the old

Pretoria Showgrounds have been made

available to exhibitors. Halls C, J and L

will provide around 17 000 square metres

of exhibition floor space and in addition

there will be a further 30 000 square

metres of outside space. While the

HeavyWeight Expo, which is endorsed by

the RMI, will provide a unique platform

for the leading manufacturers, suppliers

and service providers to display their

products and do business with existing

and new customers, industry related busi-

ness conferences and workshops will be

organised by Omega Investment

Research. Exhibitors will also have access

to the services of Total Relationship

Management (TRM), specialists in cus-

tomer relationship management in the

automotive arena. TRM provides a range

of services aimed at enhancing customer

care and customer satisfaction strategies

and boosting customer relationship initia-

tives.

Jeff Osborne, CEO of the RMI, com-

ments: “The RMI, which is in its 101st

year of existence, is pleased to offer the

HeavyWeight Expo its full support. We

enjoy a world class automotive industry in

South Africa, as was evidenced by last

year’s Johannesburg International Motor

Show. We believe that the creation of an

additional show dedicated to showcasing

the heavy vehicle industry is entirely

appropriate and we urge all players in the

industry to give HeavyWeight Expo 2010

their full support. It is being organised by

enthusiastic professionals who enjoy an

impeccable track record and, I am sure, it

will be a great success.”

S h o w T i m e

89

The fifth annual Workshop and Aftermarket Technology Show

(WATS) will run in tandem with the HeavyWeight Expo for two

of the four days. The 120 or so WATS exhibitors will occupy one

of the three exhibition halls. The 6th WATS Expo – Workshop

Aftermarket & Technology Show has been extended to two days

(24-25th March 2010) thus bringing an exciting variety of

Manufacturers, Distributors and Agents of Heavy Duty Vehicles,

Plant, Agricultural Equipment, Automotive Parts, Garage

Equipment, Tools, existing & newly released Diagnostic Scanning

Equipment with live demonstrations, Parts Suppliers, Aircon sup-

pliers, IT Accounting/Workshop Control & Job Tracking

Software. For the very first time, Mechanical, Auto Electrical &

various other Automotive Training Centres together with RMI,

SDF’s ( Skills Development Facilitators ) & MerSETA will be on

hand, to advise you on all your training & up skilling needs.

Training is Crucial in ensuring that your business becomes a suc-

cess story to be proud of. “The timing of the Expo’s is perfect,”

adds Osborne, pointing to the potential upswing in the economy

& the forthcoming 2010 FIFA World Cup Soccer as big incen-

tives for visitors & exhibitors alike. “The RMI feels that the com-

bination of these two shows makes practical sense and we’re look-

ing forward to what they have to offer.

“We need to train up our new and existing technicians to compre-

hend and master the new technologies entering our markets on a

daily basis in the form of sophisticated new products, technolo-

gies and vehicles,” says Johann de Bruyne, organiser of the WATS

Show & Managing Director of Kigima Auto Electrical Training

Centre. In addition to the shows, WATS will host a number of

mini 30min workshops between 6 & 9pm on 24th & 25th March

and the Heavyweight Expo will host a series of 4, half day work-

shops & conferences over 23-26th March addressing a number of

vital issues pertinent to stakeholders in the automotive aftermar-

ket and heavy commercial vehicle and machinery sector. Stands

for exhibitors @ the WATS Expo Hall “L” - total cost for the

2days, R4,950.00 + Vat for a basic 3x3m stand. Space for

exhibitors @ Heavyweight Expo starts at R140 per sq meter (open

flooring).

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The Heavyweight Team behind

the Heavyweight Expo and WATS

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I n t e l l i - D r i v i n g

INFORMATION ON AARTO IMPLEMENTATION

There has been so much confusion regarding

the implementation of AARTO and mis-

representation by some, albeit well meaning

individuals. The following we hope will

serve to clarify matters as it emanates from

a reputable and well known expert on these

matters. Please feel free to call us for infor-

mation on the Advanced Driver AARTO

programme – a must for any organisation wanting to protect and

enhance their drivers’ (and sales personnel) effectiveness. AARTO

is an Act of Parliament. It must be implemented by way of a

proclamation signed by the President. If AARTO is implemented

in a new area, it will also be done by way of a proclamation. The

only proclamations that have been published thus far have imple-

mented the Act in the municipal areas of Johannesburg and

Tshwane. The CEO of the RTMC, Mr Rakgoale, has issued an

extensive press release addressing all the issues that news paper

reports raised over the last few weeks. You can have a look at the

information about the RTMC on their website www.rtmc.co.za.

AARTO information is available on www.aarto.co.za. The Points

Demerit System cannot be implemented without a notice in the

Government Gazette implementing regulation 24 and schedule 3,

column 7 of the AARTO Regulations. Information is published

weekly in the Government Gazettes to inform when there is a

notice in the Government Gazette concerning the implementation

of AARTO in further areas. When you receive a notice for a traf-

fic infringement and have to sign for it at the Post Office, you have

to deal with the ticket in terms of the AARTO system. When you

receive it by standard mail it is issued in terms of the Criminal

Procedure system. Note: Old tickets in Johannesburg and

Tshwane were also issued in terms of the criminal system. If a

notice is served to you in person and it states AARTO 01 – it is an

AARTO fine, if it states section 56 – it is a criminal offence. News

paper reports cannot stop the AARTO Act from being functional

in a specific area. A person must act on the notices to avoid fur-

ther notices being sent to him or her.

Commuter Stress and Road RageSo-called "road rage" runs the gamut from cranky drivers laying on

the hooter to full-on assault with a deadly weapon. And yet "road

rage" is a relatively new term. Could the use of it be reckless in

itself? By some accounts, up to 90% of us will encounter road

rage, either as a victim or as a witness, at one time or another in

any given year. But overseas law enforcement officials and experts

in public safety emphasise the importance of making a distinction

between aggressive driving and road rage. What is the difference

between road rage and aggressive driving? There is no scientific

definition for road rage, but many road safety experts agree that it

is a criminal matter, not a threat to road safety. It occurs when a

traffic incident escalates, resulting in a far more serious situation,

such as if someone overreacts to an event and retaliates with vio-

lence... So, the term should be used to classify intentional acts of

violence and assault that happen in the context of driving. In other

words, assault is assault no matter where it takes place. Aggressive

driving, on the other hand, is a whole

cluster of bad or inconsiderate driving

behaviours. These are the more com-

monplace, but negligent, driving

habits, including rude gestures, blowing the hooter, speeding, tail-

gating, failing to indicate, driving on the shoulder (emergency

lane) to pass other cars, and unsafe lane changes. Of course, any of

these behaviours could also result in a situation where retaliation

turns violent. But more often, no physical harm is done. Often it

is a case of stressed, frustrated drivers taking a mistake too person-

ally and reacting without thought to consequence. Could that be

called "rage"? Perhaps, but calling it thus could fuel fears and

undermine the seriousness of those confrontations that turn into

assault. What are the characteristics of a likely "road-rager"?

Studies abroad show that, on a statistical level, men under 30 are

most often the offenders and the victims of road rage. But anyone

could be struck by road rage. The difference is that most people are

able to suppress urges to react. What can I do about my own road

anger or frustrations?

Don't get into the driver's seat angry. "High-anger" drivers share a

habit of taking their everyday aggressions into the car. Avoid this

recipe for rage by planning ahead. Give yourself plenty of time to

get where you're going. Steer clear of high-traffic routes, or pull off

the road for a break when you feel angry or overwhelmed. Notice

if certain conditions - rainy or overcast days, construction obstacles

- seem to trigger your temper and avoid them when you can.

Don’t judge other drivers. Unless a fellow driver puts you in immi-

nent danger, why would you expend any mental effort condemn-

ing their driving skills? Does it really matter if that guy forgot to

indicate his turn or that some lady slows down to get a closer look

at a street sign? Give the benefit of the doubt; it's not always an

inconsiderate driver, just a momentarily distracted one. And

remember that we all make mistakes now and then.

Remember, it's usually nothing personal. People prone to road rage

are often more sensitive to perceived attacks on their self-esteem.

They may see bad driving as disrespectful or as a personal insult.

But keep in mind that your fellow drivers have their own prob-

lems, their own worries, and their own agendas that have nothing

to do with you.

Seek treatment. Be proactive about handling your anger and frus-

tration. Training in relaxation and coping skills have helped some

people deal with anger and impulse control. You might also try a

course in driving instruction to pick up some tips and tricks for

dealing with tense moments on the road.

Set a good example for children. If you have children in the car

with you, consider everything you do a possible example of how to

act behind the wheel. This includes your negative reactions to

other drivers and the comments and gestures you make. Wouldn't

you prefer a future of alert yet level-headed drivers on the highways

to one filled with irate cranks flipping each other the finger?

by Eugene Herbert

F r o m t h e C o c k p i t

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

Going into the Kyalami meet, Marc Auby in his ELT

International Jaguar was the favourite to take the

championship with a five point cushion, and with the

knowledge that he had led the championship from

the start of the year. Hennie Groenewald had other ideas, and was

hoping to cap an incredible comeback in his Team Timken

Holden, after a year characterised by bad luck and administrative

snafus. The fairy tale ending was set up at Killarney on 26th

September when Hennie made up 24 points on Marc, whose luck

had turned and who only managed to garner one point in two dis-

appointing races. Hennie, who was looking dead and buried

before Killarney, suddenly had the momentum with him, and he

could literally smell his fourth successive WesBank V8 Supercar

Championship after holding on to win the first heat in wet con-

ditions, with Marc Auby second and brother Brandon third.

The championship all came down to the second heat, from an

inverted grid, and Groenewald, sitting in ninth position, had the

task of passing the Auby’s who were at sixth, seventh and eighth

respectively. Hennie realised that he was to receive no favours, so

he decided to take the bull by the horns, despite atrocious racing

conditions. Hennie told ABR after the race that the conditions

actually favoured him, as his daring driving in treacherous condi-

tions caught everyone napping. Cars were aquaplaning which

required a cautious approach, and Hennie barrelled past two of

the Auby’s on the outside of turn one, then nipped past the third

Auby on the inside before turn two. His audacious approach then

took him past the rest of the field, and after an astonishing half

lap of brilliant driving; he was in first place by turn six!!! Not that

the other guys were not trying, it was just an irresistible whirlwind

and orange blur that had gone past them. In front of all this

action, Hennie’s team mate Richard Pinard had also shown his

racing prowess by going to the front, but when he spied the

orange Holden in his rear view mirror he gave away the racing line

to allow Hennie through. By so doing, Richard showed his value

as a team man, and this allowed Hennie to build up a sizeable

cushion, which allowed him to hang on despite tyre problems,

taking the checkered flag to cap an amazing season.

Danie Coetser, Managing Director of Timken South Africa, had

showed his faith in his racing team by inviting 90 guests to the

Timken boma, and they were there to celebrate with Danie and

his team. Hennie revealed that their prayers on the day were

answered, and he and Richard Pinard reiterated their thanks to a

support team who never wavered in their faith, and praised

Timken for their generous sponsorship, and their commitment to

motorsport in South Africa, under trying conditions.

Hennie Groenewald leads the way through a corner

Hennie Groenewald and Richard Pinard – a racing duo of note

F a s t W h e e l s

N o v e m b e r 2 0 0 994

Some people say they gave up watching Formula 1 Grand Prix racing on TVduring the Schumacher era due to the predictability of the results andlack of passing. A dearth of passing remains this year despite a committeebeing formed to try and correct this, except in the pits. Seeing the smartwork by the various teams of mechanics in the pits getting their men allfuelled and equipped with new rubber in a few seconds adds a bit of inter-est. It is not really exciting.

Real passing, however, does take place on the real

Grand Prix circuits that don’t feature tight 90º cor-

ners and chicanes. Lately the Grand Prix races on

classics like the Belgian circuit at Spa or in Italy at

Monza, or the Japanese Grand Prix at Suzuka are

the best. The old Kyalami track would have done the same. The

Brazilian Grand Prix in Sao Paolo always brings high speed racing

and lots of drama. This could be the scene of another world cham-

pionship decider with its fast straights, high speed corners and ups

and downs.

Circuits like Valencia which is a dressed up harbour and the

Singapore Grand Prix with street lighting, does nothing for what is

supposed to be the pinnacle of motor sport. Grand Prix racing

should test the drivers and cars to the limit. Let’s hope the brand

new track at Abu Dhabi which will conclude the 2009 season is

not another Middle Eastern track like Dubai or Qatar (for the

bikes). These are just flat featureless tracks, have stop-start racing

and almost no passing for the small audience they attract to their

stands. Predictability? Not this year for sure. Brawn GP cars were

on their way to win everything when suddenly the rubber they

were using wouldn’t warm up sufficiently whilst all the other teams

without this problem made whoopee and caught up. It can’t only

have been the diffuser box behind or below the Brawn cars that did

it. It seemed to come right at Monza when Barricello and Button

came home in 1st and 2nd spots but went away again at Suzuka

where they looked average. It does, however, add to all the excite-

ment and blows predictions out of the window for the last two

rounds of the championship. These are going to be worth watch-

ing. We hope all this close competition will happen without the

intervention of the race stewards. It seems the instructions come

from the Race Director to penalise competitors during a GP. This

is wrong. They can almost manipulate the results of any race.

If there is an infringement, give the penalty at the end when both

sides of the story have been heard. For instance, Rosberg lying 2nd

in Singapore went over a white line coming out the pits. He gained

no advantage but was virtually banished to being a tail-ender and

out of contention. They must have been spitting blood in the

Williams pit. What about all the people who had come to see

Rosberg and Williams racing? Stupid rules like this that can wreck

the entertainment value of Grand Prix racing, which is badly need-

ed. It is not helped by the English commentators always justifying

any little mistake at high speed with “rules are rules”. The enter-

tainment value for the public, who pay huge money, is often lost,

thanks to this anonymous bunch of officials.

Have you noticed how few competitors have been caught speeding

in the pits lately after it was mentioned to the FIA that their tim-

ing equipment could be inaccurate. The timing was used to

enforce drive-through penalties which also wrecked the races. The

one exception was Webber who drove through the pits and went

on to win the German Grand Prix.

The normal musical chairs have started for the driver line-up for

2010. Alonso is driving for Ferrari with Massa, if he is fully recov-

ered from his injuries. Kimi Raikkonen could be joining Toyota.

Robert Kubica is also penned in for this team, despite rumours of

the withdrawal of Toyota from the sport. Kubica could also be

going to Renault. Talk is that Raikkonen will replace fellow-Finn

Kovalainen at McLaren. Other drivers’ seats opportunities haven’t

been mentioned yet but there are quite a few vacant seats with lots

of talent to fill them. Renault desperately needs to win again,

although their engines do well in the Red Bull cars. The Renault

chassis seems to be a dog despite the brilliance of Alonso. They

have lost their manager, Briatore, who has departed the scene,

although Bernie Ecclestone says that decision was pretty harsh.

Watch developments on that one.

Prost, who has replaced Briatore at Renault, in my book might be

French and a four-time Formula 1 World Champion, but his pre-

vious attitude and experience running his own team came to

nought. A great team like Renault will go the same way. Nobody

seems to want to drive for them. Interesting months lie ahead.

The plea to the FIA is to give us racing with lots of possibilities of

cars passing each other. Let’s have less of your behind-the-scenes

politics in offices and at race tracks. This appears to be a pointless

fight over power and greed.

We have supported and watched your Formula 1 GP Racing from

the start, so let’s have it back as the pinnacle of motorsport as it

should be.

by Roger McCleery

ANOTHER CLOSE FINISHTO THE FORMULA 1SEASON COMING UP

95N o v e m b e r 2 0 0 9

T h e L a s t W r i t e s by Baron Claude Borlz

A selection of light hearted humour fromvarious sources …

Dear beloved Boss!

Please take the attached picture

and frame it in your office so you

will know why I’m always late at

work. I WILL BE LATE

AGAIN ON MONDAY. (I am

in the white car?)

Regards

This one I got from the SAAW Times, issuedduring the SAAW in PE early in October.

Question: What is the truest definitionof Globalisation? Answer: Princess Diana's death.

Question: How come? Answer: AnEnglish princess with an Egyptianboyfriend crashes in a French tunnel,driving a German car with a Dutchengine, driven by a Belgian who wasdrunk on Scottish whisky, (check thebottle before you change the spelling)followed closely by Italian Paparazzi, onJapanese motorcycles; treated by anAmerican doctor, using Brazilian medi-cines. This is sent to you by an African, usingBill Gates’ - (an American) technology,and you're probably reading this onyour computer, that use Taiwanesechips, and a Korean monitor, assembledby Bangladeshi workers in a Singaporeplant, transported by Indian lorry-driv-ers, hijacked by Indonesians, unloadedby Pakistani men, and trucked to you byMexicans ...and now being read by aperson sitting in ???? who should beworking instead of wasting time likethis! That, my friends, is Globalisation. Ed’s note:and Diana’s son was chummy with aZimbabwean girl who studied in SA.

Some phonetically challenging teasersfor those with nothing better to do:• Police were called to a day care where a

three-year-old was resisting a rest.

• Did you hear about the guy whosewhole left side was cut off? He's all rightnow.

• The roundest knight at King Arthur'sround table was Sir Cumference.

• The butcher backed up into the meatgrinder and got a little behind in hiswork.

• To write with a broken pencil is point-less.

• When fish are in schools they sometimestake debate.

• The short fortune teller who escapedfrom prison was a small medium atlarge.

• A thief who stole a calendar got twelvemonths.

• A thief fell into wet cement. He becamea hardened criminal.

• Thieves who steal corn from a gardencould be charged with stalking.

• We'll never run out of math teachersbecause they always multiply.

• When the smog lifts in Los Angeles,U.C.L.A.

• The math professor went crazy with theblackboard. He did a number on it.

• The geology professor discovered thather theory of earthquakes was on shakyground.

• The dead batteries were given out free ofcharge.

• If you take a laptop computer for a runyou could jog your memory.

• A dentist and a chiropodist fought toothand nail.

• A bicycle can't stand alone; it is twotired.

• A will is a dead giveaway.

• Time flies like an arrow; fruit flies like abanana.

• A backward poet writes inverse.

• In a democracy it's your vote thatcounts; in feudalism, it's your Countthat votes.

• A chicken crossing the road: poultry inmotion.

• If you don't pay your exorcist you canget repossessed.

• With her marriage she got a new nameand a dress.

• Show me a piano falling down a mine-shaft and I'll show you A-flat miner.

• When a clock is hungry it goes back fourseconds.

• The guy who fell onto an upholsterymachine is now fully recovered.

• A grenade fell onto a kitchen floor inFrance, resulted in LinoleumBlownapart.

• You are stuck with your debt if you can'tbudge it.

• Local Area Network in Australia: TheLAN down under.

• He broke into song because he couldn'tfind the key.

• A calendar's days are numbered.

• A lot of money is tainted: 'Taint yours,and 'taint mine.

• A boiled egg is hard to beat.

• He had a photographic memory whichwas never developed.

• A plateau is a high form of flattery.

• Those who get too big for their britcheswill be exposed in the end.

• When you've seen one shopping centreyou've seen a mall.

• If you jump off a Paris bridge, you are inSeine. Ed’s note: and those who don’tbelieve anything and fall into a CairoRiver, are in denial.

• When she saw her first strands of grayhair, she thought she'd dye.

• Bakers trade bread recipes on a knead toknow basis.

• Santa's helpers are subordinate clauses.

• Acupuncture: a jab well done.

For Everyone Who Has EverMissed A Deadline...