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14 An Impending Crisis? 22 APDP Takes Effect 36 Cell Phone Use 44 A Champion of Quality 52 TDAFA Road Show 68 Calmer Khama Karma Official Mouthpiece of

Automotive Business Review May 2010

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

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Page 1: Automotive Business Review May 2010

14 An Impending Crisis?

22 APDP Takes Effect

36 Cell Phone Use

44 A Champion of Quality

52 TDAFA Road Show

68 Calmer Khama Karma

Official Mouthpiece of

Page 2: Automotive Business Review May 2010
Page 3: Automotive Business Review May 2010
Page 4: Automotive Business Review May 2010

Irrespective of motive or

circumstance, we must

not lose sight of the fact

that this unthinking act,

in one split second, took away a

father, a son, a husband, a

brother, a colleague, a friend,

an entrepreneur, a visionary,

and more. Far, far more. Not

least someone who had built up

a reputation as an astute and

deliberative businessman, and a

maverick who was not afraid to

challenge the status quo. From

an industry perspective, the

most tragic aspect was that

Peter Granat had just that very

day signed a deal, the details of

which had been tantalising the

automotive aftermarket for

many months. It was rumoured

that he was on the cusp of

something revolutionary in the

parts market. The industry had

picked up many hints of what

was to come, but only those in

his inner circle knew what was

in the offing.

From a personal perspective, I got to know Peter during the early

1990’s, when he was taking Fast Parts Roodepoort to unimagined

heights. My interaction with him was as both a supplier and a

friendly business associate. As a customer, he was as tough as nails,

but you always knew exactly where you stood with him, and fair-

ness was his mantra. As a business associate he was both warm and

distant, which encapsulated a complex character, but also gave an

indication of his single minded commitment to a long term goal.

This masked an intense desire and it obviously informed everything

he did and said. With the signing of a very important document on

the very day of his passing, Peter was clearly close to his promised

land, and from anecdotal evidence, he was on the verge of leading

his flock of 2500 employees to a new and exciting phase in their

business lives. Unfortunately, evil played its hand.

There is a lot of evil in our country, in various guises and disguises.

I can personally vouch for this. But I also know that evil, when con-

fronted, can be contained, and even defeated.

The secret is to identify the threat

so that it can be isolated and dealt

with. There are powerful forces in

the universe that counter evil,

and they give their support when

called upon. This is the message

that I have for those who are left

to carry the flame that burned so

bright. Do not despair, go for-

ward with courage and character,

and fulfil Peter’s vision and des-

tiny. A bullet may strike a man

down, but it cannot kill an idea,

nor can it kill faith and

endurance. One cowardly and

evil act is nothing when con-

fronted with many positive steps

and the power of good. Go for it.

Show your mettle. Honour a

great man’s memory.

From Automotive Business

Review, a fond farewell to a brave

crusader. May you rest in peace

and grace. The May 2010 issue of

ABR is dedicated to Peter Granat

and his brave band of warriors.

Please see page 40. Our condo-

lences to his family, his friends, his colleagues and his contempo-

raries.

No matter the circumstances, the brutal reality is that life goes on,

so our May issue continues the tradition of journalistic excellence

that from its inception ABR introduced to a moribund automotive

aftermarket publishing segment. Part of this excellence is to work

with AAMA (Automotive Aftermarket Manufacturers Association)

to identify trends and/or threats in the industry, and to alert the

stakeholders to these trends and/or threats. This month we look at

a ticking time bomb facing the industry – the issue of training and

resources, and the impending crisis if action is not taken by govern-

ment and industry. The article may be found on page 14. This sub-

ject is of such strategic importance for both the industry and the

country that ABR has decided to allocate significant space and

resources in the future to looking at various aspects and opinions,

which we shall bring to our readers on a continual basis.

T h e P h o e n i x

M a y 2 0 1 02

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

Monday night, 29th March 2010, saw the untimely and tragic death of anautomotive aftermarket industry icon. Peter Granat (53), at the timeManaging Director of AutoZone, was ruthlessly murdered and cut down inhis prime by callous, evil, and cowardly thugs, adding to the appallingcrime statistics of this country.

A Tragic Waste of Talent

Page 5: Automotive Business Review May 2010
Page 6: Automotive Business Review May 2010

Publishing EditorGraham ErasmusCell: 083 709 8184

Editors at LargeAlwyn ViljoenPaul Collings

Intelli-Driving EditorEugene Herbert

CorrespondentsBeeton, FrankBorlz, Baron ClaudeBurford, AdrianGamble, AustinHogg, Gilbert

Keeg, HowardMcCleery, RogerMcCrae, AlisonTwine, TonyWilde, Fingal

Published byTrilogy Publishing

Advertising SalesMarlene ErasmusCell: 082 837 2668E-mail: [email protected]

Editorial Office81 Alma Road, WendywoodTel: 27 11 656 2198

Fax: 27 11 802 3979E-mail: [email protected]: www.abrbuzz.co.za

Subscriptions and DataManagementTrilogy Trading & PromotionP O Box 69Wendywood 2144Tel: 27 11 802 6020Fax: 27 11 802 3979E-mail: [email protected]

Design and Reproductionj. Kraft Information Design ccTel: 012 997 6946 Fax: 012 997 6987E-mail: [email protected]

PrintingBusiness Print Centre, Pretoria

C o n t e n t s

88

1212 7474

22 6060

4

Official Mouthpiece of

2 The Phoenix

6 What’s the Buzz

12 Personal Profile

14 AAMA Alert

16 Auto Topical

18 The Chery Story

20 Frankly Speaking

22 Life Goes on

24 Burford on Brands

25 Industry Update

26 Tony’s Take

28 Weighty Issues

30 Customer C.A.R.E.

34 Tyre Safety

36 Intelli-Driving

37 AIDC Quiz

40 The Phoenix

44 Diamond Dialogues

45 Industry Update

46 Launch Technologies

48 Vehicle Evaluation

50 Capricorn Insights

52 Tyre News

54 The Golden Triangle

56 Training and Resources

57 e-CAR

58 Imperial Update

60 KIA Motors Update

64 Show Time

66 Wilde Things

68 Partinform

72 Fast Wheels

73 Midas Sport

74 The Fink

75 The Last Writes

The publisher and contributors have done their best to ensure the accuracy of the articles and cannot accept responsibility for any loss orinconvenience sustained by any reader as a result of information or advice in Automotive Business Review. The information provided andopinions expressed in this publication are provided in good faith and do not necessaraly represent the opinion of the publisher. No article maybe reproduced in any form without the prior written permission from the publisher, except for the quotation of brief passages in reviews.

Page 7: Automotive Business Review May 2010
Page 8: Automotive Business Review May 2010

W h a t ’ s t h e B u z z ?

M a y 2 0 1 06

KenKen 5 x 5How to Play:

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

playing KenKen are fairly simple:

For a 3 x 3 puzzle, fill in with the numbers 1-4.

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

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

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

operation indicated.

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

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

column. Answer on page 75

TomTom goes to WORK

TomTom WORK, a division of the leading provider of navigation solutions TomTom NV, is abusiness solution for fleet management combined with navigation and is now providing commu-

nication products and services to the South African business market. With the online tracking and tracing service, customers can monitor their fleets’movements in real-time and communicate with their teams, whether it be for deliveries, meetings or other urgent messages. Each TomTom WORKoffering is designed specifically for each customer’s reporting needs and made available with a simple click of a button. “We know our colleaguesTomTom SA have experienced great success with lifestyle navigation solutions and we believe that there is a significant gap in the market for B2Bnavigation opportunities that are able to improve business management and fleet control and at the same time generate positive financial results”, saysThomas Schmidt, Managing Director for TomTom WORK.

Can’t absorb the shock? Steering wheel vibrations, knocking noises, roll effects when cornering, bad road grip and con-stant steering correction could be not only symptoms of worn out shock absorbers but couldalso signal wear on protection and mounting kits. As usual Tenneco brings you the solution:Monroe from Tenneco Inc. recommends that installers check protection Kits (dirt shield andcompression bumper), Mounting Kits (rubber block and bearing) as well as shock absorbersevery 20 000 km and replace them every 100 000 km, or when replacing shock absorbers.

Don’t Give your Tyres Grey Hairs…

Get the best out of your tyres by following simple guidelines. Good tyre care ensures youget the most out of your tyres, says Mandy Lovell, Public Relations Manager for Bridgestone.“A set of tyres for a mid-range car can easily cost four to six thousand Rand, yet our tyre safe-ty survey shows that many people do not protect this investment,” she commented.“Incorrect inflation is the major cause of reduced tyre life, and when we survey tyre pressures,we find that the majority of tyres whose pressures are incorrect are underinflated,” sheexplained. “This causes the tyre to wear more rapidly on the shoulders. Over-inflated tyreswear more rapidly in the middle, although we don’t find many over-inflated tyres in ourstudy.” she commented. Moral of the story: Check your tyres regularly and avoid anyobstructions in the road at all costs, especially the dreaded POTHOLES! You will thenincrease your tyre-life and in turn save considerably.

Fast-paced actionreturns

The Suzuki Acceleration Series is back. Following asuccessful debut at venues around the country during2008, Suzuki Auto South Africa has decided to run asecond, extended season of the Acceleration Series,with significant prizes at stake. The Suzuki AccelerationSeries features the complete Suzuki passenger car range,and offers members of the public an opportunity toparticipate in two challenging activities. The first ofthese is a timed precision driving challenge in a SuzukiSwift and a Suzuki Alto around a predeterminedgymkhana track, while the second consists of a loadingtask, during which participants have to fit as manyblocks as possible into the cargo compartment of aSuzuki SX4. The full range of Suzuki passenger carswill also be on hand for testing, allowing the publicconvenient one-stop access to Suzuki’s Alto, Swift andSX4 passenger car models. As before, the AccelerationSeries will be run in all major centres around the coun-try, but this year will consist of a total of 20 events.Professional drivers are specifically excluded, as theevent is aimed at normal motorists with no special driv-ing or motorsport experience. Scores for both tasks willbe averaged to determine a winner at each of the 20Acceleration Series events. These winners will partici-pate in a final, to be held at the end of the year, with anew Suzuki Swift Sport up for grabs as the grand prize.

Page 9: Automotive Business Review May 2010
Page 10: Automotive Business Review May 2010

W h a t ’ s t h e B u z z ?

8

72 HOUR RECORDBREAK MISSIONACCOMPLISHED FORISUZU At 2pm on Tuesday 20 April a group of 51 Drivers (including14 media, 6 GMSA Engineers, Gerotek Test Drivers and anumber of professional drivers) set off on a mission to break anumber of existing South African speed and distance recordsfor diesel bakkies over 72 hours. For the mission GeneralMotors nominated 3 Isuzu KB 300 D-TEQ LWB LE bakkies,2 Isuzu KB 250 D-Teq Extended Cab LE bakkies. To achievethe goal of exceeding the previous overall distance record atleast one of the Isuzu KB300 D-TEQ single cab bakkies wasrequired to average more than 160 km/h, including time inthe pits for refueling, tyre changes (no routine servicing wasrequired as all Isuzu diesel bakkies are serviced at 15000 kmintervals). To achieve the goal the drivers worked in shifts witheach of them facing an average 2 hours 30 minutes in the carat a time (as per MSA safety regulation). At the end of the 72hours the leading KB 300 D-TEQ bakkie had completed 12243.385km kilometres at an average speed of 170,047 km/hover 72 hours smashing the previous distance record by722.721 kilometres. The Isuzu KB 300 D-TEQ rewrote the record book for its class and set new overall records for diesel bakkies over the 72 hourendurance event. The KB 250 D-TEQ fared equally well with the KB 250 D-TEQ beating the previous class record of 11 024 km (previously held bya 3.0 litre diesel) by 471 km with a new record distance of 11 495.567 km. In the quest for a new set of overall speed and distance records over 72 hoursthe Isuzu team rewrote 15 overall speed and distance records.

Nissan South Africa appoints newDirector to its Board Neil Craddock has been promoted to Director of Manufacturing at NissanSouth Africa (Nissan SA), effective 01 April 2010. The former PlantGeneral Manager who currently oversees all aspects of manufacturing atthe company’s Rosslyn operation, as well as facilities, maintenance andsupport, will now also be responsible for supply chain management andproduction control-related functions. He is the first BEE Director to beappointed to the Board of Nissan South Africa. Craddock started his careerat Nissan SA as an engineering student under Nissan’s student scheme in1988, following completion of a three year mechanical engineering courseat Durban’s then ML Sultan Technikon. One of the industry’s first blackengineering students, he worked his way through the ranks of design-,process- and value engineering, as well as project management. He alsoenjoyed a three-year secondment as liaison engineer at Nissan MotorCompany Limited (NML), Nissan SA’s Japan-based parent company.Following a six-year break, during which time he joined the telecommuni-cations industry, Craddock returned to Nissan SA as General Manager ofQuality Assurance before taking up positions as General Manager ofProduction and Plant General Manager in 2006 and 2007 respectively.

2010 Winner of the ‘Winthe Car of the Year’collects her prizeSummya Khan, a medical typist at Flora ClinicRoodepoort, has become the “owner for a year” ofSouth Africa’s 2010 Car of the Year – the VW GolfVI 1.4 TSI 90 kW Comfortline. The prize includesfree servicing, free comprehensive insurance fromHollard, and funding of free petrol for a year’smotoring from Total. The value of the prize is esti-mated to be well in excess of R100 000. TheVolkswagen Golf VI 1.4 TSI Comfortline becamethe Guild’s 25th Car of the Year when it took thetitle at the WesBank-sponsored COTY Banquet onMarch 18.

(quickpic)

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(motorpics)

M a y 2 0 1 0

Page 11: Automotive Business Review May 2010
Page 12: Automotive Business Review May 2010

W h a t ’ s t h e B u z z ?

M a y 2 0 1 010

“INDESTRUCTIBLE” TOYOTA CONQUERS THE VOLCANOTHAT EMPTIED THE SKIES

A new chapter has been written in the world-conquering history of Toyota’s mighty Hilux as it took on the ice and fire of Iceland’sEyjafjallajökull volcano, just hours before its eruption brought chaos to the skies of Europe. The legendary pick-up that Top Gear simplycould not destroy and which was the first car to be driven across the Arctic to the Magnetic North Pole proved the perfect transport forscientists racing to set up monitoring equipment before the long-dormant mountain blew its top and sent a vast cloud of ash 9,000 minto the sky. The vehicles used for the expedition were prepared by specialist firm Arctic Trucks to the same extreme environment speci-fication as the Hilux used by Jeremy Clarkson and James May, of Top Gear fame, for their historic polar expedition. Arctic Trucks havealso prepared the tough Hilux research vehicles that are on duty in Antarctica. With giant low pressure 38-inch tyres, the go-anywhereHilux had the measure of every challenge in its path as it made its way through ice and snow towards the volcano’s fiery heart. With

Europe’s most advanced aircraft rendered powerless by the ash-filled atmosphere, it’s Hilux that once again has proved itself the masterof everything man and nature can put in its path.

ROAD MAP FOR ELECTRIC CARS IN MILTON KEYNES (UK)Milton Keynes Council and the Renault-Nissan Alliance have passed a major milestone for the future of greener driving in Milton Keynes by signing a definitive agreement, which sets out a road map for the roll-out of electric vehicles and infrastructure in the Borough. The agreement formspart of the council’s Low Carbon Living agenda which aims to put Milton Keynes at the forefront of low carbon living nationally and international-ly. Last year, Milton Keynes signed up to the Joined-Cities Plan which will create a network of vehicle recharging points across the country. Earlierthis year, Milton Keynes Council secured funding through the Government’s £30-million Plugged-in-Places scheme to help build the charging infrastructure. The council will support the development of a network of charging posts and the Renault-Nissan Alliance will make electric vehiclesavailable for the public to buy.

NISSAN DIESEL TEAMS UPWITH SPRINGBOK LEGENDNissan Diesel South Africa has joined forces with the well-known Kobus Wiese to drive their new marketing campaign leading up to the company’s brand change in thelast quarter of 2010. The company will be renamed UDTrucks and the implementation of the new name andbrand will peak during the last quarter of 2010, whereafterthe campaign will roll out to the company's dealer networkwithin a period of eight months. Kobus Wiese was part ofthe Springbok team that won the Rugby World Cup in1995, and is currently a prominent rugby commentatorand presenter on SuperSport. Wiese is also the owner ofthe highly successful Wiesenhof Coffees, which has been inoperation since 1996 and has franchises across the country.“In our mind, Kobus Wiese represents everything we strivefor in our daily interaction with our customers – he is passionate, professional and dependable,” said NissanDiesel South Africa’s CEO, Johan Richards. "He hasalready assisted in inspiring and motivating our team bysharing his experience and insights as a respected interna-tional rugby player and successful businessman, and believehe will add great value to our marketing efforts this year."

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Page 13: Automotive Business Review May 2010
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M a y 2 0 1 012

JEFFERY NEMETH

WHERE IS FORD GOING HEREAND OVERSEAS?

Under our President, Alan Mulally, Fordhas formed a global strategy to make glob-al products. We have an operating teamout to make this company more competi-tive in the world and of course, more prof-itable in the years ahead. The world hasbeen broken down into regions. Africa ispart of the Asia Pacific area. Our manymanufacturing plants around the world aregoing to change from making a multiplemodel line-up of cars or platforms to a fac-tory assembling far fewer models. In SouthAfrica we are going to have one platformfor the future global compact pickuptruck. 75% of these will be exported tointernational markets.

THE ADVANTAGE OF THIS?

One of course is the economics of scalethat long runs bring you, plus even betterquality. It also makes sense for local suppli-ers manufacturing components. Ford hasmade the biggest investment ever. We areputting R3bn into the assembly plant inSilverton and our successful Struandaleengine plant in Port Elizabeth, which willbe manufacturing 4 and 5 cylinder Pumaengines. This all fits in with the SouthAfrican Government APDP due to start in2013. Silverton will be on line in the sec-ond half of 2011, PE at the end of March2011. In the meantime we have some newproducts coming this year as well.

WHERE DID YOU GROW UP?

In South Bend, Indiana, where my fatherwas a school teacher of maths and science.My grandparents, incidentally, had workedfor Studebaker all their lives, which was sit-uated in the same town.

WHAT DID YOU WANT TO DOWHEN YOU LEFT SCHOOL?

Go into Engineering and Business. My dadwas a car nut and over the years I used tohelp him maintain his Ford, Chevs and aDodge, and learned a great deal aboutmotor cars from him.

SPORTS AT SCHOOL?

I participated of course in American foot-ball and basketball and golf as well. Golf ofcourse you can play all over the world.

AFTER SCHOOL?

Went into the bank for a year and then tothe University of Notre Dame to graduatewith a BBA and an MBA. After my stud-ies twelve of my friends in class went toFord and two of us were employed byGeneral Motors where I worked on Saturnfor ten years. This brand has now beendropped lately by GM. My friends keptnagging me “Come to Ford” and in 1995,needing a new challenge, I joined the com-pany in the Customer Service Division asCustomer Parts Operation Analyst. ThenI was promoted to Global Profit ReportingSupervisor after a year. Two years later Iwas Assistant Controller in Ford Credit.This lasted for a couple of years until 1999when I moved to Taiwan as FinancialDirector of Ford Lio Ho. I helped restruc-ture the company in a market downturnperiod and built the brand in a Japaneseorientated country.

FORD CERTAINLY KEPT YOUMOVING AROUND THE WORLD?

Three years of this and I was back inDearborn before moving to Mazda inJapan for a further three years as GeneralManager of Corporate Strategy. Then inFebruary 2007 I was appointed Presidentof Ford Lio Ho to grow Ford and Mazdaand oversee day-to-day operations of Ford’sTaiwan’s manufacturing facility. I am nowin South Africa and following a few of mypredecessors who went out East. I just lovethis country and its people.

ANYBODY MAKE A BIG IMPRES-SION IN YOUR LIFE?

Yes. John Parker, who headed up FordTaiwan and ran the Asia Pacific regionbefore going to Mazda. Born in the UK, hegrew up in South Africa. He had an incred-ible amount of business acumen, alwaysbelieving “Business is always about

the product”. He was also the one who gotme to come over to Mazda.

MARRIED?

To Nancy, who has been with me throughall this travelling. We have three boys whoare all at school in Johannesburg. Blake(15) wants to be in the USA Rugby SevensTeam in 2016, Coleman (13) a golf profes-sional and Declan (7) still to make up hismind.

YOUR AMBITION?

To put everything into what I am doing atthe moment and sort out things as theycome along.

RETIRE?

Haven’t thought about it but I think withmy background I would like to teach,coach or lecture at a university to pass onsome of my knowledge. And also maybejoin the PGA Masters Circuit.

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

Ford Motor Company has been in South Africa for over eighty years. In fact the first Fordcar ever exported from America came to South Africa. Ford certainly is part of the SouthAfrican way of life, having provided cars and bakkies, and in the old days big trucks, tothis country. One thing I have noticed is that all the top men sent out by Ford lately torun the company in South Africa are all friendly and experienced motor men and carenthusiasts who have gone on to greater things overseas. The latest appointment asPresident and CEO is a motor industry man with great experience, Jeffery Nemeth.

Q & APRESIDENT AND CEO OF FORD MOTOR COMPANY OF SOUTHERN AFRICA

Page 15: Automotive Business Review May 2010
Page 16: Automotive Business Review May 2010

M a y 2 0 1 014

Training and Resources – an Impending Crisis?

A L E R T

Oscar Wilde was a renowned wag, who said many a truth in jest. During his first visitto America in the late 19th century he made a comment that upset the locals. Hisobservation was that “America is the only country in history that went from the bar-baric state to decadence without the advantage of civilisation in between”. Not true,of course, and designed to stoke up emotions, and guaranteed to get many an invita-tion to dinner withdrawn.

Corsa Utility changes brandThe next array of South Africa’s most popular half ton bakkie to grace show-room floors across the country will be branded Chevrolet. Produced at thesame GM factory in Struandale, Port Elizabeth, the Opel Corsa Utility, will be

branded Chevrolet Corsa Utility. The only difference to the vehicle will be the gold bowtielogo which replaces the chrome Opel logo, said Malcolm Gauld, General Motors SouthAfrica (GMSA) vice president of sales and marketing. “This change is in line with the globalpositioning of the brand. South Africa is the only market where the vehicle is branded Opel,in all other markets it is branded Chevrolet,” Gauld explained.

(quickpic)

Upon reflection, and I am sure that Mr. Wilde wantedreflection; it did have elements of perspicaciousness;and if handled properly it was the basis for greatdebate. On this premise such an observation could be

made about the South Africa automotive aftermarket, as “the onlyindustry that went from backyard mechanics, DIY fanatics andrepair shop assistants to an anarchic state without the benefit oftraining and skills development in between”. Also untrue, but itdoes contain a kernel of truth that if not addressed urgently, astatement that may be considered highly prophetic in ten years’time. The onus on industry and government is to do somethingabout it, and to get proactive at a rate of knots, otherwise we aregoing to be left behind the technological curve, with devastatingconsequences. It is not hyperbolic to say that we are literally sit-ting on a threatening volcano, and something far more threaten-ing than that easily pronounceable Eyjafjallajökull which ventedits spleen recently.

The South African automotive aftermarket has lost a lot of skillsthese past two decades, and the majority of the people leaving theindustry through either emigration or career changes have beenprimarily in the prime age bracket of between 25 and 45, withoutany significant replacement through the schools and tertiary insti-tutions. Thus, the skills pool of automotive technicians has beenboth diminishing and aging. A scary situation, which may not beso serious if the technology curve was pretty static. Unfortunately,the exact opposite is happening. Automotive engineers have beenbusy bees these past 15 years, with the result that the modernmotor vehicle is today a technological bag of tricks, which willexercise the mind of the best trained automotive technician. Andthe bad news, or good news, depending on which way you lookat it, is that technological advances are going to be introducedexponentially. The challenge for the global automotive aftermar-ket is to keep the world’s car parc in roadworthy condition, a factthat has not been lost on all the developed nations, and SouthAfrica cannot ignore this imperative. In fact, South Africa’s chal-lenge is even more severe, because as a developing nation it needsto grow faster than the world average, and with growth comesmobility, or inversely, with mobility comes growth. The solutionis multi-faceted, with the lead needing to come from theDepartment of Trade and Industry, MERSETA, and other gov-

ernment institutions, all with an enthusiastic helping hand fromindustry. It is no longer a case of creating apprentices from a poolof school underachievers and turning them into mechanics whopass an early twentieth century trade test at Olifantsfontein. It isnow of vital national importance to attract talented young menand women to the combined professions of automotive engineer-ing, mechatronics, autotronics, and whatever other term thattakes your fancy. This is a profession that must be seen as theequal, if not superior, to the professions of accountancy, medicine,law, computer science, et al. Many institutions, from universitiesto technical colleges, to on the job training and corporate trainingcentres, must be added and hitched to the yoke of responsibility.This cannot be a half hearted effort, and it must be tackled withefficiency and verve by everyone. We need centres of excellence tobe created across the breadth and depth of the country, and nolonger can we afford the bureaucratic approach that is currentlythe currency of government. MERSETA is a tragic case in point.The poor return on investment that is characterised by badly con-ceived institutions such as MERSETA is a big subject on its own,which we shall discuss in future articles. But it is not a case ofbeing at a point of no return, so let us be positive and look at thepriorities:

• Attracting young school leavers and turning them into skilledtechnicians at all levels

• Keeping these people in the industry, and ensuring that theystay up to speed with technological advances

• Upskilling the existing pool of technicians, and ensuring thatthis valuable resource stays relevant in today’s fast changingworld

We are at a crossroads, and we have a simple choice – either takethe high road, or take the low road. Many companies in the auto-motive industry are already taking the high road, at both OEMand IAM level. These are the centres of excellence previouslyreferred to, that must be replicated over and over again, with thesupport of industry and government. AAMA and ABR commitsto be part of this revolution, and ABR shall devote many pages infuture to this matter of strategic importance. We shall also bepassing on many points of view, and on page 56 we give you theopinion of one of the more proactive companies in South Africa,Robert Bosch South Africa.

Page 17: Automotive Business Review May 2010
Page 18: Automotive Business Review May 2010

A u t o T o p i c a l

M a y 2 0 1 0

In October, 2009, BMW South

Africa Managing Director Bodo

Donauer announced a three-year

investment programme totalling

R2,2 billion to upgrade his compa-

ny’s Rosslyn plant and supplier base. Two-

thirds of this investment amount was to

enable the plant to increase its annual pro-

duction capacity from 60 000 units to 87

000 units, while the balance was intended

to be diverted to its local supplier network.

Trade and Industry Minister Dr. Rob

Davies said, at the time, that the DTI had

provided certain guarantees to BMW in

the absence of finality on the APDP and

related Automotive Investment Scheme

(AIS) offsets, which complement the provi-

sions of the APDP.

This was followed a month later by clarify-

ing statements made by David Powels,

Managing Director of Volkswagen of

South Africa, concerning his company’s

participation in the global manufacture of

the Volkswagen Polo series. This followed a

R3,5 billion investment programme, initi-

ated in 2008, covering new plant, local

content development and preparation for

the manufacture of the latest level Polo (at

70% local content level) with right-hand-

drive in Uitenhage.

The programme was planned to continue

into 2010, with a further investment of

R 500 million. The export component of

the new Polo programme had already com-

menced in July 2009, and destination mar-

kets for this product were identified in the

United Kingdom, Ireland, Australia, New

Zealand, Malaysia and Singapore. It was

stated at the time that Volkswagen’s suppli-

ers had made their own independent

investments totalling some R600 million

into the adjacent Nelson Mandela Bay

Logistics Park.

It has subsequently become known that

this programme also supported the contin-

uing production of the previous level Polo,

as the Polo Vivo, to replace the long-run-

ning Golf 1-based Citi Golf model. It was

also announced, early in March 2010, that

supplementary offshore orders would push

VWSA’s production volume up to 113 731

units in 2010, nearly double the final 2009

volume of 59 487 units. This production

would include new Polo, in both RHD and

LHD formats, Polo Vivo, the entire global

production of right and left-hand-steer

Cross Polo soft roaders, and 100 000

engines. Total vehicle exports for the year

were forecast at 71 500 units. Powels esti-

mated that the company was due a pay-out

of some R750 million from the AIS as a

result of its recent investment activities.

Ford Motor Company of South Africa

president and CEO Jeff Nemeth

announced early in April that his company

was to invest R3,0 billion in its Silverton

(Pretoria) and Struandale (PE) plants to

enable the local production of a new gener-

ation global compact pickup, and a new

diesel engine named Puma. This revised

number roundly doubled the 2008

announcement of Ford’s intended invest-

ments in South Africa, and will be used to

increase the level of plant mechanisation

and fund local content development. The

new pick-up production is due to start at

Rosslyn in the second half of 2011, some

six months after the new engines roll out of

Struandale. Plant capacity at Silverton

would be increased from 2009’s level of 28

000 units at four days per week to 110 000

units per annum, with around 75% of the

production estimated for export to Africa

and Europe. Local content levels are

planned to rise from 35% to more than

60%. Statements made by Nemeth and

Davies at the announcement hinted at

some level of comfort having been provid-

ed by the DTI to Ford ahead of the final

announcement of AIS terms.

Probably of less high profile, but equally

demanding in terms of faith in the upcom-

ing combination of the APDP and AIS

support for the industry, was the launch

into production during 2009 of the

Renault Logan platform based Sandero and

Nissan NP200 hatchbacks and pick-ups

out of the (previously) purely Nissan plant

in Rosslyn. This represents the return of a

badge to local manufacturing, all be it

shared with the Nissan name for the first

time since the Renault 5 ceased to be

assembled at the Motor Assemblies (now

Toyota) plant in Prospecton in 1985.

This all represents votes of significant con-

fidence in whatever it is that DTI is happy

to put on the table by way of investment

sweeteners, particularly at a time in which

the global motor industry is sweating blood

to keep production plants open in more

advantageous market locations than here at

the foot of Africa. One wonders exactly

what happens in those smoke filled back

rooms both here and abroad.

by Tony Twine

Since the somewhat skeletal announcement of the Automotive Production andDevelopment Programme (APDP) in September 2008 there has been a growing list of majorproduction investment activities by South Africa’s existing original equipment manufactur-ers, particularly the European owned companies, totalling over R9 billion at the timethat the announcement that Ford SA would double its investment in the new light pick-upprogramme from R1.5 to R3 billion over the next few years.

16

Page 19: Automotive Business Review May 2010
Page 20: Automotive Business Review May 2010

March 26 at 9am Beijing time marked the momentous milestone for Chery, the biggest car exporting automotive compa-

ny in China. It took eight years (1999 – 2007) to produce the first million, and less than three years to pass the 2-mil-

lion mark. The off-line ceremony was witnessed by 1300 people including China’s finest and very important people; such

as leaders from China’s National Development and Reform Commission, Ministry of Industry and Information, Ministry

of Science and Technology and Ministry of Finance. The function took place at the purpose-built manufacturing facility located in the

town of Wuhu, Anhai province, and will be remembered as a historic event for all involved.

Chairman and General manager for Chery, Mr Yin Tongyue announced at the off-line Ceremony, “From today on, Chery people will

stand on the new height of two million, continue independent innovation and compete in the world arena, taking surpassing five mil-

lion and ten million as the new journey!” With such confidence and a positive outlook coming from the powers that be, we are sure

to only be further impressed by Chery’s future progress.

As the only independent Chinese brand to reach this high point, Chery has now become the top selling independent Chinese car brand

for 11 consecutive years. It has also been the biggest car exporter from China for seven consecutive years. With a track record like this we

have no doubt that Chery will go from strength to strength, providing the motor industry with top quality cars suitable for everyone.

So to everyone in the industry… Watch this space!

18

Two million reasons to choose Chery!As a car manufacturer, you know you’re doing something right whenyou can boast that your 2-millionth car has come off the assemblyline, attracting attention of millions.

A series of articles on the rise of the Chery automobile

M a y 2 0 1 0

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

The story of the globalisation of the Chinese motor industry still lies,

largely, in the future. Despite the numerous traumas of 2009, and the

emergence of China’s domestic vehicle market as the largest in the

world, the country’s automakers are still a long way from being seriously interest-

ed in exporting their products. Yes, they are getting incrementally active in various

South American and Asian markets, but very little has yet transpired in Europe or

North America. The reason is simple: the effort required to break into these markets,

which are still subject to a substantial amount of anti-Chinese prejudice, will con-

sume a huge amount of resource, which could be put to much more affect, under pres-

ent circumstances, in satisfying China’s own burgeoning domestic demand levels.

M a y 2 0 1 020

This will not always be the case, however. Once the

Chinese market stabilises, growth opportunities will

have to be exploited overseas. Preparation for this step

is already taking place, in two distinct stages. The first

involves participation in relatively small export markets dominat-

ed by global suppliers, such as Australia and South Africa, which

gives the Chinese manufacturers valuable insight into the expec-

tations of sophisticated buyers, and the performance of their

products and support systems in an openly competitive environ-

ment. The second phase revolves around the acquisition of failed

or cast-off global brands, which are expected to bring status, tech-

nology and credibility with them.

There are already several examples of this latter modus operandi.

Following the demise of UK manufacturer MG Rover in 2005,

two Chinese companies were left holding intellectual rights to the

company’s processes and products. Shanghai Automotive Industry

Corporation bought the rights to certain individual models, some

of which subsequently re-emerged under the wonderfully inven-

tive “Roewe” nameplate, while Nanging Automobile Corporation

acquired the British company’s physical assets, and has subse-

quently started selling MG-badged products from the former MG

Rover lineup. While neither MG nor Rover were big players in

the global car market, they were instantly recognisable names with

a lengthy heritage. “Roewe” may have been something of a carica-

ture, but the intent to draw attention away from Shanghai

Automotive, and exploit a linkage with the days when British cars

enjoyed a solid reputation for quality and reliability, was unmis-

takable.

More recently, we have seen an ultimately unsuccessful attempt to

transfer the Hummer brand lock, stock and barrel to China, but

the just-in announcement that Zhejiang Geely Holding Group

Company Limited has agreed to buy the Volvo Car Corporation

from Ford Motor Company elevates this debate to a considerably

higher level. The announcement of this deal on March 28th,

2010 follows a period of protracted negotiation stretching back

well into 2009, which probably indicates the sensitivity of the

subjects under discussion, and it has been reported that the $US

1,8 billion transaction also includes an ongoing component sup-

ply and research/development relationship between Ford, Geely

and Volvo.

Despite its tribulations (mainly financial) as a member of Ford’s

erstwhile Premier Auto Group, Volvo retains a largely intact rep-

utation as a manufacturer of safe, quality cars. Geely will, natural-

ly, attempt to exploit this, and has announced that Volvo’s manu-

facturing presence in Sweden and Belgium will be retained, with

the strong likelihood that a Chinese operation will also be estab-

lished. The interaction of Geely, Ford and Volvo has considerable

potential to muddle the brand’s image going forward, and man-

aging this process will be key to the success of the exercise. Geely

would obviously like the Volvo image to beneficiate its own-

branded products, and Ford would equally obviously like to avoid

excessive leakage of its technology and intellectual property,

through Volvo, into China. Past experience has shown that the

control of IP in China by foreign companies involved in local

joint venture enterprises has been a problematic area, with the

local legal system not proving very helpful in protecting the rights

of foreign-based partners.

At the same time, many global manufacturers will want to exploit

the favourable economics of manufacture in China, in order to

enhance the competitiveness of their products. Their challenge

will be to achieve this without unwittingly building the credibili-

ty of unrelated Chinese brands, by geographic association, with

their local joint ventures. It could be that a similar linkage

between the now General Motors-controlled former Daewoo

assets in South Korea, and the indigenous Hyundai-Kia alliance,

has been a positive factor in the latter’s rapid growth to global

prominence, particularly in the US. In order to reduce the

chances of a similar positive “rub-off” for Chinese brands, global

manufacturers will need to carefully “submerge” the local connec-

tion to a level well below their nameplates, while ensuring that

products from that source are fully compliant with their global

quality and engineering standards.

The good thing for the global giants is that this process is taking

place at a fairly relaxed pace, thanks to burgeoning Chinese sales.

They are thus being given plenty of time to develop and imple-

ment their strategies, in an environment where competition from

China has been limited to a controllable number of smaller mar-

kets. If they sit on their hands, however, the resulting sensation of

“pins and needles” could become very unpleasant indeed, a few

years from now!

Eastern PromiseF r a n k l y S p e a k i n g

by Frank Beeton

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

L i f e G o e s O n

M a y 2 0 1 022

In this World Cup year, the form team appears to be the South Africanautomotive industry, scoring goals with gay abandon. The catalyst is obvi-ously the Automotive Production & Development Programme (APDP), andthe Lionel Messi of this team is the Automotive Investment Scheme (AIS).

The APDP may be three years

away, but deals are obviously

being done in smoked filled

backrooms at the Union

Buildings. I’d love to be a fly

on the wall during these dis-

cussions, because someone has ants in the pants,

putting a flea in the ear of the automotive

industry. I think that the AIS’s generous 20% to

30% refund over a period of three years is

mouth wateringly enticing, and it is clear that

the APDP is going to have a bigger impact than

the MIDP (Motor Industry Development

Programme) over the longer term. BMW,

Volkswagen, and now Ford, have taken the car-

rot with a gusto that would have Sancho Panza’s

Rucío applauding. Over R9 billion of invest-

ment has been promised over the past few

months, and more is undoubtedly to come.

On 8 April 2010 in Johannesburg, Ford Motor Company of

Southern Africa (FMCSA) announced plans to invest more than

R 3 billion to expand operations for the production of Ford’s

next-generation pickup truck and Puma diesel engine. That is an

extra R 1.5 billion on top of the previous announcement in 2008.

This increased investment represents the higher levels of mecha-

nisation and component development required to deliver vehicles

of world class quality. The investment commenced in 2009 with

the upgrade and expansion of production facilities at the compa-

ny’s assemble plant in Silverton, Pretoria, and its engine plant in

Struandale, PE. The assembly plant in Silverton is supposed to

begin production of its all new compact pick-up truck in 2011,

with a high-volume, flexible single platform line that will accom-

modate the new pickup truck – very exciting news for all in the

motor industry. The plant will be positioned as the Ford region-

al centre of excellence for the new global compact pick-up truck,

a very nice notch to have on South Africa’s belt. The re-vamp of

production facilities at the Struandale engine

plant are also underway. The plant will start pro-

duction of the next generation Puma diesel engine

in early 2011, which will utilise Ford’s latest power

train technologies. The investment will increase

total annual capacity at the Silverton assembly

plant to 110 000 units, with approximately 75%

of the vehicles being produced for export, mostly

in Africa and Europe. “This investment represents

a significant next step in the ongoing expansion

plan of Ford's Asia Pacific and Africa region and

underscores the central role of our South Africa

operations," Jeffery Nemeth, FMSCAs President

and CEO, says. “With the continued support of

the South African government and hard work and

dedication of all our partners, we will continue to

drive our operations forward in South Africa."

That’s not all – as part of the investment, FMSCA

plans to continue working with the South African government to

accelerate and enhance human resources training and develop-

ment of the auto industry’s current and future workforce to ensure

the posses the necessary skills required to support the launch.

"It's critical for the South African government to continue to

support initiatives that help foster a strong and globally competi-

tive auto industry – one that is prepared to capitalise on future

opportunities and realise the potential for growth and success,"

Nemeth emphasised.

"We'll also continue to work closely with our partners to ensure

there is total alignment and commitment to deliver the cost com-

petitiveness and world-class quality and safety standards that have

secured this investment." Local suppliers to the FMCSA stand to

benefit from the increased investment – working with roughly

66 different South African suppliers, annual spending on local

components will increase from an estimated R 2 billion each year

to approximately R 6.5 billion.

by Austin Gamble

APDP Takes Effect

Page 25: Automotive Business Review May 2010

P r o d u c t N e w s

Damage Analysis of MLSCylinder-head GasketsDamage to multi-layer steel cylinder-head gaskets mostly involves two seal-ing elements: beads and elastomercoatings.

The beads can fracture due to variousfactors, and elastomers can becomedetached from the substrate materialor be scorched.Both of these damageprofiles indicate different causes.

Bead Fractures due to excessively highComponent DynamicsPossible causes for excessively highcomponent dynamics are faulty,reused or unlubricated cylinder-headbolts, incorrect bolt torquing due toexcessively high friction during installa-tion, as well as damage to cylinderhead or engine block.

Component distortions can also be theresult of engine overheating. Similarly,if an engine is operated under pingingconditions (pre-ignition), the high tem-peratures and pressures can lead tohigher componentdynamics and possi-ble bead fractures.

Leaky, Damaged, Defective

Premature FailuresIn MLS CHG

Detached Elastomer Coating due to OverheatingClassical causes for overheating are defects of the water pump, radiator, thermostat or hoses, but also insuffi-cient coolant or incorrect venting of the coolant system can lead to thermal problems. Failure of the catalyticconverter can also result in higher temperatures due to increased exhaust back pressure.

Page 26: Automotive Business Review May 2010

French IconAs well as being a great engineer and innovator, Andre Citroen was also oneof the first motoring men to truly understand the benefit of marketing hisproducts. He never seemed to be short of an idea, and one of his first wasto illuminate the Eiffel Tower in Paris with his company’s name, in 30 metrehigh letters from the very peak of Paris’s famous landmark down to the sec-

ond viewing platform. From 1925 until 1934 the word Citroen was permanently displayedthanks to a quarter of a million light bulbs and 600 kilometres of electrical cable.Legend has it that Charles Lindbergh used these lights to navigate the final stretch ofhis epic, solo non-stop flight across the Atlantic in 1927.

Before that, Citroen’s vehicles had already completed

record-breaking feats on terra firma; a convoy of

Citroen half-tracks crossing the Sahara from Touggourt

to Timbuktu in 1922/23 and in a second expedition a

year later - the Croisiere Noire - eight similar vehicles travelled the

length and breadth of Africa, and as far as Tananarive on the

island of Madagascar. Five years later, Citroen organised the

Croisiere Jaune, from Beirut to Beijing, crossing some of the most

hostile territory on the planet in the process. Teams left both cities

simultaneously, meeting up in the heartland of China nearly three

years later. In the early 1930s there were also high-speed record

runs in the famous Rosalie racers, driven for periods of up to 54

days and distances of up to 135 000 km non-stop. Citroen was

soon well-known, and sold 71 472 vehicles in 1933. A year later

the Traction Avant was launched, a pioneer of front-wheel-drive

and unibody construction. But there was trouble in the land.

Citroen, despite being the biggest brand in Europe and second-

largest in world terms, was broke, partly as a result of the expense

to develop the Traction. Michelin – Citroen’s largest creditor –

effectively took over the company and rationalised production,

making 8 000 workers redundant. Andre Citroen died, almost on

cue, on July 3, 1935. Fortunately, the Traction Avant turned out

to be a great car and saved the company. In a 20 year production

span nearly 760 000 were made, its long life assured thanks to an

advanced yet sound original design.

Another car synonymous with the brand is the 2CV, its launch

delayed due to World War II. When France fell, Citroen engi-

neers hid the prototype and the model was finally presented at the

1948 Paris Motor Show. With a nine horsepower (6.7 kW)

engine it wasn’t going to set any speed records but it did live up

to its design brief of being able to carry four people and fifty kilos

of luggage at a speed of 60 km/h. Over five million were made

(including 1,25-million vans) before production ceased in 1990.

Both the Traction Avant and the 2CV were the work of the fertile

mind of Andre Lefebvre but he wasn’t done yet. Arguably saving

the best for last, he designed the radical DS, unveiled in Paris

(where else?) in 1955. Like the Traction Avant, the basic design

was good enough to last 20 years. Some say Citroen lost its way

from about 1976 onwards, in the wake of Peugeot taking a major-

ity stake in the brand to set up PSA Peugeot Citroen. There were

still occasional flashes of brilliance, but sometimes it seemed the

company was being different for the sake of it, trying desperately

to retain a separate identity. The only true volume model ever

sold in South Africa was the GS, built in Port Elizabeth from

1973 to 1979. Nearly 20 000 left showrooms, but the takeover by

Peugeot South Africa soon ended Citroen production. Citroen

came back to SA via a consortium of investors in 2001, heavily

backed by Imperial. The brand has struggled in recent years and

the distribution arrangement was terminated at the beginning of

this year when Peugeot Citroen South Africa was formed, and

Citroen in South Africa came under the wing of the internation-

al parent company as a wholly-owned subsidiary. Already a raft

of new models has been launched, and certainly, the sheetmetal

looks exciting. But there’s no question that the brand has a moun-

tain to climb. With what appears to be 25 000 largely unhappy

owners out there, Citroen needs to rebuild confidence in their

after sales support and dealer network, which initially will largely

consist of existing Peugeot outlets.

Starting with a relatively clean sheet is difficult but in this case it

probably isn’t a bad thing and the double chevron deserves to be

talked of with the reverence it once so richly deserved. Hopefully

we’ll see it happen.

by Adrian Burford

24

B u r f o r d o n B r a n d s

FEDERAL-MOGULRELEASE ENGINE PARTSCATALOGUE

Federal Mogul has announced the launch of the latest edition of its Engine PartsCatalogue. The 2010 / 2011 edition is hot off the presses and is distributed toengine rebuilding companies, spares and parts outlets, as well as workshops andgarages. An electronic version in pdf format is also available.

Enquiries: Hedley Judd – Technical Services ManagerFederal-Mogul Southern AfricaOffice: 011 630 3000Fax: 011 630 [email protected]

Federal Mogul has just released the2010/2011 edition of its Engine PartsCatalogue to the market. An electronic

version is also available.

M a y 2 0 1 0

Page 27: Automotive Business Review May 2010

I n d u s t r y U p d a t e

25M a y 2 0 1 0

2010 SILVERTON RADIATORS FRANCHISE AWARDS FORPERFORMANCE IN THE YEAR 2009

The management and staff of Behr Hella Service, the Head Office for the Silverton Radiators Franchise network,

would like to congratulate the category winners for 2009. We also thank their local communities for their support,

without which, these awards would not have been possible.

From left to right Winner Category A -Gys van Rooyen (Rustenburg) Winner category B -Hollies Holtzhauzen (Phalaborwa) JuergenLaucher (Joint MD Behr Hella Germany) Runner up Category C - Grobbie Grobbelaar (Frankfort) Willie Fourie (MD Behr Hella SA)

Gerhard Steenkamp who collected the award on behalf of Jade Steenkamp, (Kroonstad winner category C) Runner Up category B - Harold Lang (Francistown) Runner Up category A Hennie Greyling (Bloemfontein)

Page 28: Automotive Business Review May 2010

T o n y ’ s T a k e

M a y 2 0 1 026

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

International Producer PriceInflation Set for Blast-offThe traditional launch pad countdown of ten, nine, eight ... should bereversed to climb upwards into double digits as a prelude to anticipated pro-ducer price inflation rates over the coming months in many of the world’smost developed economies. This is likely to shock voters, politicians and reg-ulators all around the world, perhaps acting as an initial trigger for high-er interest rates in those countries, which would decimate their fragile realeconomic growth performances.

Up to the end of 2009, the ten

year escalation rates of many of

the world’s most developed

industrial economies, whether

measured in terms of producer prices at the

factory gates, or consumer prices which

includes the prices of goods and services,

have been modest to say the least. The

USA has had annual average PPI inflation

of 1.27%pa, Euroland (in the nine years for

which data has been collected) have

reached an even more modest 0.53%pa,

while Japan showed negative long-term

producer price inflation of -1.03%pa. Even

the somewhat more inflation prone UK

economy has had subdued compound PPI

inflation over the past 10 years of 2.51%pa.

By contrast, the air bubbles in the land of

milk and honey, South Africa, have con-

tributed PPI inflation of 6.86%pa in the 10

years to the end of 2009.

2008 and most of 2009 showed negative

rates of PPI inflation for most of these

economies, including South Africa during

the middle quarters of last year. By the

fourth quarter of 2009, producer prices had

begun moving upwards as the global reces-

sion turned gently into a recovery phase.

Producers became less defensive, and grow-

ing end-user confidence underlined the

price recoveries of many manufactured

items. In the short term, however, this will

now present a problem as even very modest

quarter on previous quarter price increases

are anticipated to lift developed economies

PPI annual inflation rates into double digit

territory. While this would not be of any

great shakes to an economy like South

Africa’s, the prevailing low rates of PPI

inflation in those economies outlined above

provide a backdrop that could suggest

panic as the figures are published over the

next months and quarters. The accompany-

ing graph paints the rather startling picture

that is anticipated to confront policy mak-

ers after the first quarter of 2010. The tab-

ulated data for three regions which includes

five of the G7 group of most industrialised

nations, shows the reason for the high

annual escalation rates – it has a lot more to

do with what happened to prices in 2008

and 2009, than it has to do with any abnor-

mally high PPI inflation forecasts from one

quarter to the next in the remaining

months of 2010 and 2011.

Page 29: Automotive Business Review May 2010

T o n y ’ s T a k e

27M a y 2 0 1 0

While South Africa appears to be the odd man out in terms of the

graphed forecast of annual PPI inflation rates, this is because of

the hammering that our PPI took from (mainly) commodity price

inflation during 2008, which was only partially offset by negative

PPI inflation during the final three quarters of 2009. Prospects for

PPI inflation in the United Kingdom in the short term lie between

those of South Africa and the other named areas which experi-

enced far more drastic negative inflation on an accumulated basis

up to the third quarter of 2009.

Because the threatening levels of

inflation in the G7 countries are

expected to come about in the

base (historic effects) rather than

rapidly rising prices in the next

few months to come, one cannot

be too sure about government’s

responses to the highly newswor-

thy future expected escalation

rates. The pump priming of

most of these economies in an

effort to halt the financial sector

melt-down and then reverse the

negative real economic growth

rates there after the middle of

2008 were theoretically guaran-

teed to raise price levels and

inflation rates. If the modelled

forecasts presented here materi-

alise, the day of rising interest rates in those countries could be

close at hand – if that is the developed economies’ reaction it adds

yet another pint of petrol to the anticipated coming fire under

South African interest rates late in 2010 and beyond.

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Page 30: Automotive Business Review May 2010

Effective February 1st, 2010, Japanese truck manufacturer Nissan Diesel Motor Company

changed its corporate identity to UD Trucks Corporation, and it has been announced that

the South African subsidiary will follow suit to become UD Trucks Southern Africa this

September. The new name reflects Nissan Diesel’s long-standing practice of branding and

badging its vehicles “UD”, initially as a pointer to their “Uniflow Diesel” engines, employ-

ing the two-stroke combustion process and Roots-type scavenging blower, and later, when

four-cycle technology was adopted, claiming “Ultimate Dependability”. Several of Nissan

Diesel’s overseas marketing operations were already operating under UD corporate iden-

tities prior to the announcement, so this change has minimum potential for disrupting the

company’s sales or communication efforts.

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

M a y 2 0 1 0

Nissan Diesel was first estab-

lished in 1935 as Nihon

Diesel Industries, and had a

long association with Nissan

Motor Company, which included the larg-

er concern acquiring an equity sharehold-

ing in the specialist truck and diesel engine

manufacturer in 1950. In 1999, French

carmaker Renault bought control of

Nissan, and by association, its interests in

Nissan Diesel. In March, 2006, Volvo AB,

which had joined the Renault-Nissan con-

glomerate in Year 2000, and was tasked

with managing its trucking interests, pur-

chased a 13% controlling stake in Nissan

Diesel out of the Nissan Motor sharehold-

ing, and, by the following February, the

Swedish manufacturer had started the

process of raking in the balance of ND’s

shares to make it a wholly-owned sub-

sidiary. The present name change can be

seen as a move to distance UD Trucks

from Nissan, and position it more square-

ly in the heavy-duty alliance made up of

Volvo, Renault Trucks and Mack, with

Samsung of Korea and Chinese manufac-

turer Dongfeng on the fringes.

Nissan Diesel has had a long, and success-

ful, involvement in the South African

truck market, dating back to the early

Nineteen-Sixties. Despite the novelty of

Japanese vehicles at that time, the brand

progressively established itself through a

strategy of direct participation in key deal-

erships, extensive local testing and devel-

opment of products, and strong aftermar-

ket support in the areas of servicing and

parts availability. During the nineteen-

eighties, when the compulsory fitment of

locally-manufactured Atlantis Diesel

Engines and ASTAS transmissions drove

many other brands away from the market,

Nissan Diesel enthusiastically took on the

engineering challenge of adopting stan-

dardised local components, and expanded

its market coverage.

With the subsequent removal of the strin-

gent local content requirements in the mid

‘nineties, Nissan Diesel moved rapidly to

reintroduce “thoroughbred” products,

and, once again, expanded its marketing

footprint at both ends of the payload spec-

trum, to include both Medium

Commercials, and a high-powered truck-

tractor for use on linehaul duties. When

this development took place, Yours Truly

occupied the lofty position of General

Manager: Product Planning in Nissan

South Africa’s truck department, and faced

the challenge of bringing the new product

to market with the minimum disruption

to the brand’s established top-three sales

ranking. At this point, I hope you’ll excuse

a little blowing of my own private

vuvuzela, because a basic decision that I

took back then has made NDSA’s rebrand-

ing task a whole lot easier some fifteen

years down the line.

Remembering the UD badges that

adorned those early Nissan Diesels, and

were still in evidence at home in Japan and

in other overseas markets, I proposed the

use of “UD” as part of the model nomen-

clature on the new South African models,

with a numeric component indicating

nominal payload in tons on the smaller

models, or horsepower on the larger, pre-

dominantly multi-axled units, which also

gained additional suffixes to indicate the

axle/drive configuration and intended

application. This was approved by man-

agement both locally and in Japan, and

examples of the resulting designations

included UD 60, UD 95, UD 290 KT and

UD 430 WT. We even added a prominent

“UD” emblem to the front of the cab, and

relegated the “Nissan Diesel” script to the

black trim panel just below the wind-

screen. Fortuitously, succeeding genera-

tions of local management continued this

badging and designation tradition after my

departure in Year 2000, with the benefit

that there is now a clearly established asso-

ciation between Nissan Diesel and “UD”

in South Africa, which should make this

year’s rebranding exercise a whole lot less

problematical than is usually the case.

One of the important side benefits of

Nissan Diesel’s long and successful history

in the local market is the substantial popu-

lation of these vehicles currently operating

at the foot of the African continent, and

this will add huge value to the future UD

brand and franchise. It has been estimated

that, of the more than 60 000 Nissan

Diesels that have entered the local vehicle

population over the past 47 years, some 39

000 remain in regular service. The fact that

more than 33 000 of these units were

shipped out of the Rosslyn plant with UD

badges attached to their cab front panels

will not do any harm, either!

by Frank Beeton

28

Nissan Diesel BecomesUD, and my VuvuzelaRings Out!

Page 31: Automotive Business Review May 2010
Page 32: Automotive Business Review May 2010

Acquisition

Every business wants to grow or diversify

or increase its market potential. This

involves acquiring new customers. This

involves many activities but a strategy that

is quite popular in the motor industry at

the moment is to buy data which has

accurate information and preferably has

information about what the individual

currently drives or earns and then

approaching these individuals through a

variety of campaigns. These campaigns

can make use of e-mail (cheapest),

SMS/MMS, telephone or direct mail-ing (most expensive). This is one of the

cheaper ways of acquiring new business

but with new legislation (like the new

Consumer Protection Act) is going to

become trickier to implement and it is not

always easy to get the required market

intelligence from this process. Other

aspects of acquisition have to do with

responding well and appropriately to cus-

tomer inputs. Examples are lead man-agement and response managementwhich have to do with the effective

response to customers approaching us,

e.g. customer submitting a lead or ‘config-

uring’ their car on the website or asking

for a brochure. Customers give us many

opportunities to do business with them

but we often do not grab the opportunity

to allow them to do that. I covered a sur-

vey we did with lead management in the

automotive industry a few articles ago and

it illustrates how badly the industry still

responds to leads.

Retention

This vital area has to do with retaining the

customer and the obvious immediate

springs to mind: customer care – having

someone attend to the complaints and

issues of the customer, customer satis-

faction – where we ask the customer to

rate us and helpdesk – where we allow

the customer to interact with us freely.

These are all incredibly important and

must not be neglected. From a CRM per-

spective I believe we can do more with

reselling to our customers. Not only is it

a great selling strategy but few things

mean more to our customers than us

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

M a y 2 0 1 030

CRM – a profitableview of the customerCRM started as a concept coined by two people (Martha Rogersand Don Peppers) and it had to do with a simple concept as Ihave been discussing in my previous articles. It is something thatwe intuitively agree with. But like all concepts it needs to betranslated into something practical that can be executed effec-tively. Today I am going to use CRM to build a profitable view ofa customer; how can we make more money from our customers byapplying CRM principles? With reference to the figure, we cansee that it involves a lifecycle and that CRM is not just aboutretention but about acquisition and optimisation as well. Thereare many lifecycles diagrams but I will be using this one to illus-trate the point. A very important and crucial part of this dia-gram is the customer database. Everything revolves around andinvolves the database. I will explore every area briefly.

Theo Calitz has been work-ing in or involved in the

motor industry for the last16 years.

A Mechanical Engineer by profession, he is passionate

about customer care and hiscompany,

T-R-M specialises in auto-motive CRM for the auto-motive industry and has

been doing it for nine years.

Page 33: Automotive Business Review May 2010

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

31

approaching them for more business. It is

a great compliment and does wonders for

their egos! If I drive a particular brand

(because I believe in it and it represents

me) I would really appreciate and enjoy an

invite to the launch of the new model or

any other activity. It would definitely per-

suade me to buy more – probably beyond

what I would have spent otherwise.

Another very important strategy is that of

win back. Winning back customers is

worth every cent, it is still cheaper than

getting new customers and it does

improve their loyalty.

Optimisation

CRM processes and strategies work in a

cycle and this should be the next phase of

the cycle. As a cycle, the stages are interde-

pendent and continuous. As you move

from one stage to the next, you gain

insight and understanding that enhances

your subsequent efforts. The idea is to

become increasingly sophisticated in your

implementation of CRM processes and,

over time, become increasingly profitable

by doing so. It is important to understand

your customer base and align it with

your company strategy (and vice versa!). It

is worthwhile applying specialist knowl-

edge ito your CRM strategy. Try new

strategies, measure ROI and refine the

strategy. Companies that apply CRM

strategies more effectively than other tend

to be more profitable and robust during

challenging financial times. Some ideas

(but by no means the only ideas) are doing

customer research to increase your

knowledge of your customer. This allows

you to segment your customers and

develop a unique strategy for each seg-

ment with up/cross/next selling ele-

ments.

The trick is to be innovative – take the

time to develop your strategy and review it

from time to time. Do not be hesitant to

obtain assistance. It keeps you ahead of

the pack!

In the previous chapter, we finalised PhaseOne of the Customer C.A.R.E. consciousnessprogramme for your company. We called itPhase One for ease of reference, because itis really a permanent on-going effort, cuttingthrough all the phases, repeated andrenewed continually throughout the life-span of the company, hopefully ad infinitum.

M a y 2 0 1 0

www.t-r-m.co.za

T 0861 TRM TRM

F 086 686 8382

AN IDIOT’S GUIDE TO CUSTOMER C.A.R.E. - A ONE YEAR PROGRAMME TO TAKE YOU INTO THE NEXT

MILLENNIUM BY DR. TRILOGY

– sponsored by Federal-Mogul

Customer C.A.R.E. Programme

CHAPTER ELEVEN - THE ELECTRICITY SUB-STATION

Continued on page 32

Page 34: Automotive Business Review May 2010

Phase One is exciting and

stimulating, and requires

very little formal effort,

because it follows a bare

minimum of rules, and is

concentrated on bringing

the customer to the fore of all business

dealings and decisions, both consciously

and sub-consciously.

Phase Two and Phase Three requires more

effort, because these phases have defined

roles in the Customer C.A.R.E. pro-

gramme, and have to reach a certain level

of performance before Phase Four can be

implemented. These phases do have one

significant thing in common with Phase

One - they are never completed. Phase

One is an on-going exercise, and this also

applies to Phase Two and Phase Three.

The major difference is that at a certain

stage of Phase Two and Phase Three, Phase

Four may be implemented. Phase Four

does not rely specifically on Phase One for

implementation.

Phase Two may be called the Customer

C.A.R.E. Formalisation Stage, whilst

Phase Three is the Customer C.A.R.E.

Training Stage. Both run concurrently,

and both must be measured. Both have

peaks and troughs in their levels of activi-

ty, and both have high and low levels of

intensity, which is necessary for maintain-

ing interest, and momentum. Neither fiz-

zles out, and both continue throughout

the life span of the company. Whereas

Phase One is the emotive stage of the pro-

gramme, with emphasis on Pentecostal

type behaviour, Phase Two is the nuts and

bolts stage, with Phase Three being

focused on attitude training.

PHASE TWO - THEFORMALISATIONSTAGE

This is the process whereby everyone gets

involved in bringing the customer focus

formally into the decision making process-

es of the company. This is done by basical-

ly re-structuring the company to not only

allow for this to happen, but to encourage

the thought processes to flow in this direc-

tion. I am not saying that you must turn

the company upside down to achieve this;

but by going through this process, you will

not only sensitise your staff to specific

functions, you will also identify areas of

performance that need attention. A varia-

tion of new brooms sweeping clean, or of

being able to see the wood, in spite of the

trees. Each company is different, with its

own quirks, so I cannot give specific

advice on all functions. What I can do, is

create a fictional company, and discuss this

process for that company. You can then

pick out what applies to you, and adapt to

your circumstances, and put flesh on the

skeleton. This fictional company is called

WECARE (PTY) LTD., and it imports

ECSTASY seat covers, a revolutionary new

product which, when fitted to the driver’s

seat, gives the driver a sense of well-being,

and creates a higher tolerance level, which

reduces road rage, with all the concomi-

tant benefits. Being a revolutionary new

product, there is still a high level of prod-

uct development activity, with customer

input being of critical importance. Even

though this is a new product, many com-

panies have jumped on the bandwagon,

and there is no patent on the concept.

Therefore, WECARE competes against

local manufacturers and other importers

of similar products, at similar prices.

SERVICE, naturally, is very important.

WECARE has accepted that C.A.R.E.

means CUSTOMERS ARE REALLY

EVERYTHING, and they have also

realised that this must be understood both

intellectually and emotionally by every

staff member, for WECARE to have the

competitive edge. With this important

knowledge, the chief executive has done

the wreath laying thing, and the propagan-

distic orgy of customer idolisation has

been implemented, with the staff being

bombarded from all angles with pro-cus-

tomer slogans, pamphlets, announce-

ments, etc.

Phase One, with Step # One done, and

Step # Two well on its way, is part of the

furniture.

It is now time for Phase Two.The Formalisation Stage.How do we go about it?Next chapter, we begin.

AN IDIOT’S GUIDE TO CUSTOMER C.A.R.E. - A ONE YEAR PROGRAMME TO TAKE YOU INTO THENEXT MILLENNIUM BY DR. TRILOGY

– sponsored by Federal-Mogul

Customer C.A.R.E. Programme

DISCUSSION POINTS1. Are you confused? If so, why?

2. Describe, in your own words,Phase One, i.e. Step # One andStep # Two.

3. Draw a diagram, listing PhaseOne, Phase Two and PhaseThree, and describe each level.

4. Can you guess at Phase Four?

M a y 2 0 1 032

CHAPTER ELEVEN - THE ELECTRICITY SUB-STATION

Page 35: Automotive Business Review May 2010
Page 36: Automotive Business Review May 2010

www.bridgestone.co.za

34

Now conversely some fleet owners actually do stipulate

these specs when buying tyres; especially the load rat-

ing. And then they ignore all logic and overload the

vehicle. Recently after being called out to inspect a

fleet it was found that every tyre was rated at exactly the same load

index. We were impressed with the operators attention to this

detail until we discovered that he was continuously overloading

his vehicles by about 600Kgs per vehicle. These are express parcel

delivery type vehicles which work 24 hours and do long distance

at constant high speeds. Now one has to question the logic behind

this operators practices, not being interested in what load the tyres

could carry, but had previously had an insurance claim turned

down after an accident because the tyres were underrated for the

vehicle. All his vehicles are the same in carrying ability and all

have the same original tyre load index, but are more often than

not carrying loads way above their ability.

Now doing the right thing for the wrong reasons is just as silly as

those not knowing what they are doing in the first place.

Overloading not only places excessive stresses on the tyres, but on

every component of the vehicle. Safety is compromised all the

time, and these people think they are doing a fine job and mak-

ing profit. This example is not an uncommon one. We constant-

ly come across vehicles which are being dangerously overloaded.

Previously this was the domain of the heavy transporter. The

advent of weigh-bridges on many main trucking routes has

reduced this considerably. It still happens, and sometimes money

changes hands and these hands miraculously “reduce” the loads.

However, these weigh-bridges concentrate on the heavy vehicle

and the parcel type guys, along with bakkies and taxis carry on

overloading with ever increasing abandon.

The fleet operator who runs a fleet with such blatant disregard for

safety should be banned from the transport industry.

Ok, so enough about the load and speed bit. If you haven’t got the

message by now it’s not going to happen and you’re going to end

up in the same category as just discussed. But load and speed are

not the only factors which need to be looked at when choosing

the right tyre for the right job. There are many other things to

look at when trying to get the best life and the best performance

from your tyres. Even tread design is specific to requirements.

Shoulders and sidewalls are designed with purpose of operation in

mind. These are not the sort of things that the average buyer

would know about, but certainly fleet operators should take all

these things into account when bulk buying for a fleet he should

know the needs of. He should for example know from previous

experience if his fleet needs strong or flexible sidewalls. He should

know if his operation builds tyre heat or if he runs at reasonable

temperatures. He should be able to base his buying decisions on

knowledge of his operational needs. And even if he doesn’t know

what tyre is best suited he should be able to provide the seller with

enough information on his operational requirements to ensure

that he gets the right tyres for his particular operation. No one

does this and they don’t understand that this is the way tyre buy-

ing should be done. By following these rules tyres will be in a

situation where they would be perfectly suited to the functions

they are required to perform. Therefore they would perform to

their full potential and be most economical.

Most importantly, they would be performing within all their

safety parameters.

Next month we will go into this a bit further. Until then, THINK

SAFETY and travel safe!

and Their Contribution to Safety in Motoring Tyres

M a y 2 0 1 0

We have been talking in previous issues about using the correct tyres for the purpos-es they were designed. Specifically we have mentioned the load and speed limits oftyres. We have stated how people should buy tyres which can take the loads andspeeds they will be using the tyres at. We have also slated some dealers for sellingthe wrong tyres.

Marcus Haw

Page 37: Automotive Business Review May 2010
Page 38: Automotive Business Review May 2010

M a y 2 0 1 036

The subject this month has to do with the matter of cell phone use. While we know that legislation permits “hands free” operation there

are those that still

a) Persist in using phones illegally - are you one of them? And

b) Make use of such devices when it is patently unsafe, albeit hands free

The information featured below is virtually “hot off the press” and details what the NSC in the United States has found with regard to

the use of mobile phones. For those who would like a copy of the ‘WHITE PAPER’ referred to please drop us a line and we will mail

a copy to you. My e-mail address is [email protected].

The National Safety Council Releases White Paper on Brain Distraction duringCell Phone Use While Driving

Itasca, IL – The National Safety Council today released a white paper describing the risksof using a cell phone while driving. The white paper, “Understanding the distractedbrain: Why driving while using hands-free cell phones is risky behaviour,” addresses thelack of understanding about the dangers of cell phones and hands-free devices. The whitepaper includes references to more than 30 scientific studies and reports, describing howusing a cell phone, hands-free or handheld, requires the brain to multitask – a process itcannot do safely while driving. Cell phone use while driving not only impairs drivingperformance, but it also weakens the brain’s ability to capture driving cues...

The paper describes how drivers who use cell phones have a tendency to “look at” butnot “see” up to 50 percent of the information in their driving environment. A form ofinattention blindness occurs, which results in drivers having difficulty monitoring theirsurroundings, seeking and identifying potential hazards, and responding to unexpectedsituations. Numerous public opinion surveys show most drivers believe using a cellphone while driving is dangerous. However, many admit they regularly talk or text whiledriving. At any time, 11 percent of all drivers are using cell phones, according to theNational Highway Traffic Safety Administration. NSC estimates more than 1 out ofevery 4 motor vehicle crashes involves cell phone use at the time of the crash.

“Cell phone use while driving has become a serious public health threat,” said JanetFroetscher, NSC president and CEO. “This white paper provides the necessary back-ground and context for lawmakers and employers considering distracted driving legisla-tion and policies. Several states and municipalities have passed legislation allowinghands-free devices while driving. These laws give the false impression that hands-free phones are a safe alternative, when the evidence is clear they are not.Understanding the distraction of the brain will help people make the right deci-sion and put down their cell phones while driving.”

by Eugene Herbert

I n t e l l i - D r i v i n g

Cell Phone Use in a Motor Vehicle

– either way it’s a no brainer

Page 39: Automotive Business Review May 2010

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

by Roger McCleery

Answers on page 72

1. How old is the Volkswagen Beetle this year?

2. What is the Governing body of 4-wheeled motor sport in the world called?

3. What made Ford and Firestone merge?

4. What motor company in South Africa has led vehicle sales for 30 years?

5. When did Fiat take over Alfa?

6. Who owns the 1928 Bugatti GP car that won the first Monaco Grand Prix in 1928?

7. Who owned a psychedelic painted Rolls Royce Phantom?

8. What country organised the first Grand Prix for cars?

9. Great Britain imposed a speed limit in 1865. What was it?

10. Where is Skoda made?

11. What is the name of Ford South Africa’s new MD?

12. What car has replaced the Citi Golf in South Africa?

13. What current F1 driver has won the Australian F1 Grand Prix twice in a row (2009 and 2010)?

14. How many Fords gathered to set up a new record in the Guinness Book of Records at Phakisa Raceway recently?

15. How many air cooled Volkswagen Beetles were produced?

16. What manufacturer had a model called an Isetta?

17. Where was the first F1 Grand Prix held behind the Iron Curtain?

18. How many Bugattis were made by Ettore Bugatti?

19. Who made a car called an Air Flow?

20. Where is the oldest National motor racing circuit in South Africa?

A I D C Q u i z

37M a y 2 0 1 0

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T h e P h o e n i x

M a y 2 0 1 040

Farewell to a Friendand ColleagueThe untimely passing of Peter Granat, Managing Director ofAutoZone, on 29th March 2010, generated an outpouring of griefand accolades over the next few days, and to accommodate themany who wanted to show their respects, two memorial serviceswere held, over and above the private funeral service.

One memorial service was held in White River, for Peter’s beloved community and for sup-

pliers, colleagues and friends who could make the trip. A follow up memorial service was

held at AutoZone’s premises in Denver, Johannesburg, for staff and those who could not

attend the White River ceremony. In addition, all the AutoZone branches around the

country closed between 13h30 and 14h00, to allow the staff at the branches to also show their respect

for the “Boss”. ABR was at the ceremonies in White River and Denver, and in tribute to an icon in the

automotive aftermarket, we provide a montage of words of praise and poignant pictures, taken from

the final farewell at AutoZone on Friday, 9th April 2010.

Page 43: Automotive Business Review May 2010

41M a y 2 0 1 0

T h e P h o e n i x

“A great idea finder whose dreamshall never die”

“AutoZone was Peter – he has now made roomfor those who are left to be AutoZone”

“With his high work ethic, he took a fragmentedbusiness and 35 stores and created the largest

automotive parts retailer chain in South Africa”

“Leaders touch a heart before askingfor a hand”

“He was driven by outcomes, not activity”

“With his detail orientation and his firm beliefin relationships, Peter was the driving force

behind AutoZone”

“He cared for all at AutoZone, he displayed self-less loyalty and he did the right thing at all

times”

“He always stood up to be counted”

“He was one of the great men that I knew, andhe has left us with a job to do”

“On behalf of the warehouse staff, he was hum-ble and soft, who focused on our job security –

there will be no other Peter”

“He was the ideal boss, and the perfect rolemodel – the personification of simplicity, toler-ance, and understanding – a Super Boss and a

Humanitarian”

“He inspired us to be More. His passion andcommitment made for fulfilment, challenge andsometimes frustration, which meant that mira-

cles were performed regularly”

“I shall remember Peter for his love of life”

“Peter was a visionary, a Giant in theIndustry”

“He knew every aspect of the business, was hardto please, did not procrastinate, and Got Things

Done”

“He loved his staff, and this was reciprocated”

“He was a colour blind boss that everyone couldtrust, with an open door policy”

“He changed the lives of people, and supportedmany charities discreetly. He turned the Denver

Hostel into a peaceful place”

“He changed US and THEM into One Team”

“He taught me humility, and he taught meabout life. He was humble, passionate, andunassuming, and success never changed him”

“He gave generously and discreetly to many, andto many he was a Father Figure”

“He saw the best in everyone, and he alwaysstood up for the downtrodden”

“A symbol of greatness, touchable, my Leader,my Mandela”

“A Giant in the Motor PartsIndustry”

“Greatness comes to only a few exceptionalhuman beings, and we now have to do things

better in his memory”

“We shall do Justice toyour legacy at AutoZone”

Page 44: Automotive Business Review May 2010
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Page 46: Automotive Business Review May 2010

“It is an immutable law in business that words are words, explanations are explana-tions, promises are promises – but only performance is reality”. This is Giel Steyn’sfavourite quote when the subject of quality comes up. He marries it to the words ofJim Wade; the driving force behind the UK based Business Improvement Network, whosays that “in any organisation, at any one time, quality is precisely defined by theorganisation’s current measurable objectives”.

These quotes were uppermost in

Giel’s mind when he reflected

on the South Africa automotive

aftermarket’s journey of discov-

ery from the mid 1990’s when the shackles

of sanctions were lifted, and many excited

distributors, wholesalers, and even retail-

ers, made the pilgrimage to the factories in

the east, and to the many automotive trade

shows, where South Africans were wel-

comed with open arms. The result was an

enormous influx of imported parts. It was

as if the gates of Aladdin’s Cave had been

opened, but the honeymoon was short and

not so sweet. Many distributors soon

realised that there was a tremendous vari-

ance in quality in the goods flooding in,

and that those wonderful prices put flesh

on the maxim that “the common law of

business balance prohibits paying a little

and getting a lot – it can’t be done”. Today,

most of the distributors and importers of

automotive parts share this understanding,

and are fully aware of the need to deal in

quality parts. The Consumer Protection

Act which comes into effect later this year

will accelerate this thinking, and it is with-

out doubt that once again the trailblazers

in embracing this Act will be those who

comprehend the pitfalls in dealing in prod-

uct of unknown quality, and who appreci-

ate the business fundamentals of conserva-

tive trading. These are the disciples of Jim

Wade and who identify with his values,

and who seek product that pass the inter-

national quality and safety tests, and who

want to be part of the solution.

Grandmark International is one of the

organisations who support this philosophy

in both word and deed. An example of this

attitude is the TYC automotive lamps that

Grandmark are importing for resale into

the competitive South African market.

TYC automotive lamps have received

accreditation from the SABS, and with the

SABS mark the parts fraternity can have

complete confidence in these high quality

lamps. The intention of the Consumer

Protection Act is to encourage high quali-

ty parts and accredited product and TYC

fits the bill perfectly. Grandmark

International is a true champion of quali-

ty, in all its facets.

We wish to pay gratitude to Peter Granat,

the recently deceased Managing Director

of AutoZone, was also a champion of qual-

ity, and he would have not only approved

of the goals and objectives of the CPA, he

would have been an enthusiastic imple-

menter of all the aspects of the act. The

South African automotive aftermarket will

be the poorer without him.

Giel Steyn

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

EditorialPartnership

A Champion of Quality

M a y 2 0 1 044

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.

Page 47: Automotive Business Review May 2010

I n d u s t r y U p d a t e

M a y 2 0 1 0

Junior Lions FCTriumphant in SKF

SA’s Meet the WorldSoccer Tournament & Secures Spot in

Sweden’s Gothia Cup

SKF South Africa’s commitment to the local devel-

opment of sport and other skills in communities

and schools once again came to the fore with the

company’s recent sponsorship of the ‘SKF Meet

the World’ Soccer Tournament. The SKF Meet the

World tournaments are a pre event to the Gothia

Cup which is widely acknowledged as one of most popular and

well-known international youth football tournaments in the

world. Sweden has been hosting the Gothia Cup for the past

30 years and the tournament has attracted 1 500 teams and

some 770 000 youths from over 127 countries. SKF is the

main sponsor of the Gothia Cup. By sponsoring the Gothia

Cup, SKF aims to create a meeting place for young people to

meet across boundaries and develop respect for one another’s

cultures and differences. “Soccer is one of the most popular

sports internationally and South Africa is no exception. The

search for young talent continuous apace and in a country

where there are still many underprivileged schools and sports

clubs, it is vital for captains of industry to sponsor development

of young players with potential”, comments SKF South Africa

Managing Director, Gavin Garland.

The great skill and accuracy of the JUNIOR LIONS FC,

secured their win! SKF South Africa will be sending this team,

as well as a few extra selected players to the Gothia Cup which

will take place from 18th to 24th July 2010. The prize includes

an all expenses paid trip to Sweden, a dedicated coach, pre-

arranged training days and friendly games from end April to

beginning July 2010.

Page 48: Automotive Business Review May 2010

L a u n c h t e c h n o l o g i e s

M a y 2 0 1 046

X-431 Master Flying offthe ShelvesIn its March 2010 issue ABR broke the news of Launch Technologies South Africa’sextremely attractive upgrade offer on the X-431 Master, and we promised to give fur-ther information on this versatile and useful workshop tool. We are happy to do this,but far more importantly we need to urgently advise the market that this promotionhas been a phenomenal success, and to encourage existing X-431, ADC2000 andCarlink owners to place their orders now, as the X-431 Master is literally flying offthe shelves. The reason that we do this is that there is a strong possibility of stockshortages in the coming months.

ABR spoke to Hans Coetzee, Marketing Manager of

Launch Technologies S.A. (Pty) Ltd., who attributes the

possible savings of 60% as the major factor behind the

success of the programme. Hans describes this promo-

tion as one of the most “realistic programmes” that he has been

involved in, as it enables workshops to upgrade to a world class

product at realistic prices. The global success of the X-431 Master

is testimony to the qualities of this top class piece of equipment,

and it is this worldwide demand that concerns Hans as to avail-

ability in the coming months.

Despite this, Launch Technologies S.A. is prepared to continue

with its offer to its valued customers to upgrade their existing

Launch diagnostic machines at a cost saving of up to 60% on the

price of the X-431 Master, depending on the age and condition of

their existing equipment. The Launch X-431 Master still uses the

same proved, user friendly operating procedure as its predecessor,

but has a considerably larger vehicle data base (55 marques vs. 28

for the Super Scanner), and with its increased computing power

it communicates with vehicles much faster than the X-431 Super

Scanner. It also comes with a unique 16 pin connector which

incorporates the BMW 16, Can-Bus II, OBD II and Smart OBD

II plugs amongst many others.

The success of the programme has meant that Launch S.A. now

has many traded-in Super Scanners in excellent condition, which

are now available to new customers, particularly those in the

emerging market, at very good prices. Launch has upgraded these

machines to the latest specs available for these machines, and

where additional data is required, downloadable software is

available at reasonable prices. In addition, there will be a

three month warranty on these machines. For further

information, current and new users may contact

Launch Technologies S.A. (Pty) Ltd at one of the

following contact no’s/addresses:

Tel 011 397 3072/3; Fax 011 397 6489;

Hunter 082 418 2257 or Email: [email protected];

Hans 082 701 4203 or Email:

[email protected].

For those wishing toupgrade the details

required would be model,serial number, physical

address, contact person,contact number and service

agent.

Page 49: Automotive Business Review May 2010
Page 50: Automotive Business Review May 2010

V E H I C L E E V A L U A T I O N

The Citroën C5 – a Real Meneer

Apparently, some journalists in Europe are describing the new Citroën C5 as the bestGerman car ever built in France. After a week in the company of this vehicle, in therange topping 3.0 HDi V6 AT, I can report that I believe the French are short chang-ing themselves.

This car, to my mind, is unique in many aspects, and it

is unflattering to compare it to any other vehicle, and

particularly to bring nationalities into the frame. The

French must get over this Franco-Prussian thing and let

us seal off the Maginot Line once and for all, and rather describe

this car as the best global car ever to come out of France.

You may think that I am taking it too far in describing this car as

unique. But unique it is. Let me explain why I say this. I hate traf-

fic jams. I despise gridlock. I would rather give a pint of blood

than be stuck in one of Gauteng’s interminable parking lots (note

that I do not use the term freeway) for longer than five minutes.

And when it comes to gridlock for over half an hour, I need to

have that pint of blood removed just to take my blood pressure

down to reasonable levels. I honestly would prefer to face Bakkies

Botha in the boxing ring for ten rounds, than to endure our hor-

rific roads. I simply cannot wait for retirement so that I can retire

somewhere in the Karoo where there are no robots and a vehicle

population of less than ten. But, there could be salvation around

the corner, in the form of the Citroën C5. On the day that I had

to return the car, I was stuck in the mother of all traffic jams on

the R21 just outside the airport, for 90 minutes, and moving

about 200 metres in that time. Normally, I would have assaulted

my fellow passengers with language that would have had sailors

applauding and taking copious notes. I would have implored the

Lord to take me there and then. I would have immediately con-

tacted my estate agent to start sussing out Phillopolis. Guess

what? With this vehicle I didn’t bat an eyelid.

I just put the seat massage into overdrive, reclined the backrest,

and had a happy and constructive discussion with my fellow pas-

sengers about what a sterling fellow that Julius Malema was, and

how fit he was to lead the nation. This car does that to you. For

the more detail orientated readers, I could go on and on about the

vehicle’s understated and classy styling, the level of specification,

the innovative Hydractive 111+ active suspension with different

modes, the Euro V turbo diesel engine that gives power, perform-

ance and fuel consumption that makes hybrids obsolete, the

active and passive safety features, and my personal favourite, the

integrated tyre pressure monitor, but all I’m going to say is go find

out for yourself.

I did embarrass myself when I gave the car back. It is not a pret-

ty sight to see a grown man lose it, but the paramedics were

understanding and I do need the rest. I’m not yet ready for dis-

charge, but if anyone can lend me R465 000, then I can solve the

problem.

M a y 2 0 1 048

by Howard Keeg

Page 51: Automotive Business Review May 2010

V e h i c l e E v a l u a t i o n

49

The Last Car

In 1992 Francis Fakuyama wrote a book titled “The End ofHistory and the Last Man”. This book was in response tothe collapse of communism, and Fakuyama’s belief thatdemocracy was the final form of government. This waswhat came to mind while I was evaluating the ChevroletCruze 1.8 LS.

The Cruze is not going to excite many motoring journalists, but it did get the

nod as a finalist in the South African Guild’s 2010 Car of the Year competi-

tion, and for good reason. As I drove this vehicle around the highways (high-

ways!) and byways of Gauteng, I started to come to the conclusion that the

Cruze is the ultimate functional car. It does all that is required from it with a

minimum of fuss, and isn’t that what it is all about? Forget the frills, the adrenaline rush, the

fevered arguments in the pub – we are talking about the end of history and the last car. As

I ticked the boxes; boot space – a big yes;

passenger space – yes; driveability – yes;

safety – yes; comfort – yes (this would

not satisfy Sepp Blatter, but the average

Joe, yes); style – yes, but once again, not

Piranfarina’s cup of tea; I realised that

there are simply no bad cars anymore,

and that the Cruze could very well be the

hypothetical last car. Performance, fuel

economy, price, all are in the top quartile,

and as an overall package, this is

Fakuyama’s dream car. Humanity is

reaching its end, so we may as well cruise

into the functional future.

Brian Olson ; GMSA General ManagerMarketing (foreground) and MalcolmGauld - GMSA Vice President Sales andMarketing were ecstatic at the announce-ment that the Chevrolet Cruze 1.8 LSwas a Wesbank/SAGMJ 2010 Car of theyear (COTY) finalist

M a y 2 0 1 0

Page 52: Automotive Business Review May 2010

M a y 2 0 1 050

I n s i g h t s

Another SuperCapricorn Supplier

With the immense benefits relating to the Capricorn co-operative concept

for both members and suppliers, it is not surprising that ABR has come

across yet another happy union. With the solid reputation that Capricorn

has built up in Australasia and South Africa, it is natural to find out-

standing suppliers such as Imcomex who have joined the growing band of

Preferred Capricorn Suppliers.

Imcomex was founded in 1994 and initially focused on parts for the truck and bus market, but has adapted over time, keeping up

with the rapid changes in the automotive aftermarket. With a philosophy of quality parts, and service and delivery at competitive

prices, Imcomex was bound to grow, and today is a well known and respected distributor of replacement parts for Mercedes Benz,

BMW, Audi and Volkswagen vehicles as well as Mercedes Benz and MAN trucks. This reputation was built on the MEYLE brand.

Wulf Geartner Autoparts (MEYLE) was founded in 1958 and has grown into a global export and trading organization. With its head

office in Hamburg, Germany, MEYLE now serves more than 120 countries, distributing in excess of 12 000 line items to the independ-

ent parts sector, and with product that often exceeds OE specifications. Imcomex has leveraged off these positives. Having initially

focused on the Gauteng area, Imcomex now services wholesalers, retailers and independent workshops countrywide, and has branches

in Centurion, Cape Town and Windhoek, Namibia.

The Imcomex team comprises highly motivated people, who work hard and play hard, and the vibe is positive and resonant of a “can-do” philosophy

www.capricorn.com.au

Page 53: Automotive Business Review May 2010

I n s i g h t s

51

The bottom line is that for the Capricorn model to work

it needs a critical mass of members and suppliers. This

has already been achieved, but respected aftermarket

suppliers like Imcomex are welcome to apply and are

readily accepted into the fold. With Imcomex being specialists in

replacement parts for Mercedes-Benz, MAN, BMW to name a

few, the partnership is poetry in motion.

And the benefits are definitely mutual for both parties involved:

• Imcomex knows that at the end of every month there will be

no need to follow up and hassle the Capricorn members for

payment as this comes from one account, which cuts down

considerably on time consuming admin and also improves

cash flow

• Capricorn members have ease of access to Imcomex products

and do not have to go through credit checks or fill in endless

paperwork to purchase, all they need is their Capricorn mem-

bership number

• Imcomex has countless networking opportunities through

Capricorn’s annual functions and web based facilities

• Capricorn members are guaranteed the highest quality parts

from a solid brand with Imcomex being a Capricorn supplier

Brand association is vital in these partnerships and at the end of

the day makes the various brands involved only stronger and more

far reaching. We look forward to many more positive Capricorn

developments… as they make life easier for both its members and

suppliers.

M a y 2 0 1 0

To join Capricorn Society Limited call André Changuionon 083 287 3498 or e-mail him at

[email protected] or visit their website onwww.capricorn.com.au

The Capricorn link…

Imcomex now offers a wide range of MEYLE products: Steering, suspension and chassis parts; Rubber metal parts; Brake parts; Filters;

Water pumps; Engine and Transmission parts; Electrical parts; Lighting, Cooling components.

Imcomex has also concluded exclusive distribution agreements with other well established German companies, such as VIEROL AG,

Jurgen Witte GmbH, Hagen Truck Parts GmbH (HTP), and MVI Motorenteile GmbH, and can now boast an additional range of well

known brands such as Vaico, Vemo, Hengst, SM, Bilstein, BF Germany, ST, and Cool Expert. These suppliers enable Imcomex to cover

a range from electric, electronic, air conditioning replacement parts; body parts; chassis and steering and suspension parts; specialised

shock absorbers; filters; engine parts; and gearbox parts, supplied at competitive prices and backed up by a 24 month warranty.

There is a bright future for Imcomex, and the cherry on the cake is now its Capricorn link. Ever since Imcomex signed up as a Capricorn

supplier, its business with Capricorn members has increased twofold. The reasons are not hard to find:

Page 54: Automotive Business Review May 2010

T y r e N e w s

M a y 2 0 1 052

TDAFA Road ShowThe TDAFA (Tyre Dealers and Fitment Association) recently held a series of roadshows around South Africa to keep their members abreast of the latest developmentsaffecting their businesses. ABR attended the Highveld & Northern Region’s showheld at the Constantia Hotel & Conference Centre on 19th April 2010.

The TDAFA is one of the more proactive constituent

associations of the RMI (Retail Motor Industry organ-

isation), and this road show was packed with informa-

tive presentations, and valuable feedback on two vital-

ly important issues that will soon affect the tyre industry. Hats off

to Vishal Premlall, Director of the TDAFA; and Hermann

Erdmann, National TDAFA Chairman; for representing South

Africa’s independent tyre dealers with such passion and commit-

ment. Sponsored by Chemvulc, IQUAD, and Nedbank, the road

show focused on the impending Consumer Protection Act and

the submission of an integrated industry waste tyre management

plan by the TDAFA to the Department of Environmental Affairs.

There was also a fascinating presentation by Frans Cronje of the

South African Institute of Race Relations on the future scenario

facing our country. And of course, the looming wage negotiations

have become a hoary annual.

The Consumer Protection Act, No. 68 of 2008, was signed on 24

April 2009, and came into partial effect on 24 April 2010, and

will be fully effective on 24 October 2010. This is a revolutionary

piece of legislation, as it gives unprecedented protection to the

consumer, and when it takes full effect it will make the South

African consumer amongst the best protected in the world, and it

will also change the way business is conducted in South Africa.

With this power in the hands of the consumer, businesses will be

accountable for what they sell and the services they provide. The

ambulance chasers are licking their lips, but well run businesses

that communicate effectively with their customers, and have their

documentation well drawn up, will have very little to fear.

Conversely, shoddily run businesses will have to get their act

together, or face financial ruin. ABR shall be covering this ACT

in greater detail over the coming months, to prepare our readers

for October 2010.

The Waste Tyre Regulations 2009 which were promulgated on

13th February 2009 are another kettle of fish. ABR expressed its

concern in its April 2010 issue about the high price to be paid by

the long suffering motorist to clean up our tyre habits, as detailed

by the SATRP Company at the Tyrexpo Conference in March

2010, and we are happy to know that we are not alone. We quote

from the TDAFA’s submission to the DEA, “the plan put togeth-

er by the SATRP Company to deal with waste tyres is not work-

able nor is it sustainable in the South African economy. The cir-

cumstances in South Africa are unique, and we are looking for an

African solution to a uniquely African problem. The draft SATRP

plan is not a solution to the industry’s problems and is not sup-

ported by the independent tyre dealers.” The TDAFA, together

with the Tyre Importers Association, have now submitted their

own plan, and ABR shall be watching the saga unfold and shall be

reporting back to our readers on a regular basis on developments.

Hermann Erdmann, National TDAFA Chairman, updated the delegates on TDAFA issues

Jeff Osborne, CEO of the RMI, openedthe TDAFA Road show and welcomed

the delegates

The Legal Eagles willlove the CPA

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

Carlo du Plessis is a member of this august body

of “vehicle paramedics”, and as the proprietor of

Cencar Centurion, a Bosch Service Centre, he

also relies strongly on the golden triangle of the

KTS Compact Control Unit Diagnostic Tester,

the ESI[tronic] Service Information System,

and the FSA Engine Management System. Carlo relies on these

three products to solve any problem thrown at him. Recently

Carlo had to respond to a crisis call. A customer’s Volkswagen

2004 Golf III 1600i had cut out on a stretch of lonely road and

was refusing to start. It was late at night, so response time and

action was of the essence. In a flash, Carlo was at the scene. Failing

to solve the problem on site, Carlo arranged for the car to be

towed in, so that he could throw the full weight of the golden tri-

angle at the technical puzzle. Being of a methodical bent and pos-

sessing a bloodhound’s instincts, Carlo knows that there are sim-

ply three things that are required to make a petrol engine run:

• Fuel• Compression• Spark

These three key aspects need to be investigated, so Carlo gets to

work. Anyone who has been following this series of articles will

know exactly where Carlo will start his investigation; the battery.

As Carlo reminds us at every visit, it all starts at the battery, so the

battery needs to be the first thing to be checked. In this case, the

battery passes the test, but because the car is not starting, Carlo

cannot test whether it is charging. This he shall test later. Now

Carlo checks the fuses. They also check out okay, but these rudi-

mentary checks have to be carried out, to obviate unnecessarily

time consuming tests further down the line. Since the Golf III

utilises the MP9 system, it has a diagnostic socket, so out comes

the trusty KTS to check for error codes. The first set of codes are

irrelevant, because of the non-starting condition of the car, so

these are cleared, to see if the car will

start after this procedure. The problem

remains, so Carlo goes to the basics,

checking actual values where available

against the KTS. Then, critically, Carlo

checks whether there is power supply to

the ECU. If not, that is the direction to

go, but in this case, the power supply is

okay, so the next step is a relative

compression test utilising the FSA. The

FSA also gives a print-out on the

compression at each cylinder, which is

useful feedback, and it can be given

to the customer for information and

reassurance. Once again, everything

checks out okay, so the investigation

continues – which we shall cover in the

June 2010 issue of ABR.

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

R o b e r t B o s c h

The Golden Triangle – KTS, ESI[tronic], and FSA

M a y 2 0 1 054

Variety is the spice of life. Not many jobs satisfy this requirement, but for today’sautomotive technician this pleasurable aspect is a daily reality. Modern vehicles areno longer mere mechanical marvels. They are also highly efficient computers onwheels, utilising many different modern technologies and innovative techniques toperform their mobility function flawlessly for many years. With anything as dynamicand utilitarian as this versatile people and goods carrier, things naturally do gowrong. It is the nature of hard working parts, but in the case of the motor vehicle,fortunately a rare occurrence. However, when disaster does strike, this is the cuefor the caped crusaders, better known as automotive technicians, to go into action,and to turn their years of training and fabled diagnostic skills to good use. Theseinvaluable members of society identify the problem, source the parts and ancillaries,and then repair and/or replace where necessary, and after the grand deed is donethey send off another grateful and satisfied motorist.

“This is an example of a relative compres-sion test, which may be handed to the cus-

tomer”

Page 57: Automotive Business Review May 2010
Page 58: Automotive Business Review May 2010

M a y 2 0 1 056

Modern VehicleTechnology – are ourTechnicians Ready?

The modern motor car, and even commercial vehicles,

are today almost a computer on wheels. The electron-

ics in vehicles today take care of ensuring the engine

runs smoothly and economically, the automatic gear-

box adapts to the load of the engine, the braking system supports

control in emergency situations, the suspension adapts to differ-

ent weight configurations, the air conditioning or heating sets at

the desired temperature, the windows & sunroof operate on com-

mand, and all these can happen at the same time.

Someone has to repair and maintain these systems, should they

malfunction. Equally important is that “someone” has to secure

the knowledge from somewhere. Of course, we are not referring

to basic training , but advanced sophisticated training using spe-

cialised tooling and computerised equipment; after all the vehicles

they are expected to maintain are as equally sophisticated.

As an example, Robert Bosch SA has a high tech training facility

providing training to the Automotive Industry. In existence since

1981, it offers a range of technical courses covering Auto

Electrical, Electronics, Vehicle Safety and Comfort, Engine

Management, Vehicle Braking & Servicing as well as Diesel Fuel

Injection for both conventional and High Pressure electronic

diesel systems.

Vehicle technology in South Africa is as close to the vehicles’

country of origin. Today more Vehicle Manufacturers (OEM’s)

are represented in South Africa than only ten years ago, and many

of them bring in only fully imported vehicles. Likewise, new

models launched in Europe, Far East or USA, are available in

South Africa sometimes only a few months later. This means there

is little technology delay between the country of origin and South

Africa. We have to be capable of addressing this technology as

soon as it appears on our shores, as these vehicles will be in the

hands of South African motorists expecting prompt and quality

service. A motor car in South Africa is a costly investment and for

many a “pride and joy” asset. If a modern high tech vehicle can be

imported to South Africa the motorist expects South African

workshops and technicians to be able to service and maintain it

irrespective of circumstances.

Many workshops already use the Bosch Diagnostic tester and

Software to perform system diagnosis and identify and rectify

faults in a vehicles electronic system. The training provided by

Bosch reinforces the technician’s ability to use the equipment

effectively and productively. To contribute towards creating a

desirable standard for technicians and workshop owners, Bosch

further introduced the Bosch Systems Technician, Bosch

Diagnostics Technician and Bosch Diesel Technician certification

courses. These allow technicians, who have attended a prescribed

range of Bosch courses, to qualify to attend one of these examina-

tion courses. These examination courses tests the technicians the-

oretical and practical knowledge on the various systems within a

modern motor vehicle and only those passing the required tasks

will be awarded the Certificate and Badge.

The successful workshop today needs to close the “competence”

triangle, being;

Only this will enable a workshop to provide a cost effective qual-

ity repair with sustainable profitability.

The development cycles in vehicle technology have accelerated rap-idly in recent years. Above all, the increasing number of electroniccomponents in modern vehicles has brought about changes in auto-mobile production, thereby changing the demands on vehicle work-shops. These days, the primary task facing vehicle mechanics, techni-cians or engineers is to deal with testing and diagnostic technology,sensors, electronic actuators and on-board computers safely andefficiently. By contrast, purely mechanical tasks have been pushedinto the background in the workshop environment.

by Dave Stalker General Manager,

Automotive TechnicalService, Bosch Automotive

Aftermarket Division

the right person;

correct tooling & equipment;

and specialist training.

T r a i n i n g & R e s o u r c e s

Page 59: Automotive Business Review May 2010

Despite the new street names, Lichtenburg is truly a his-toric town, founded in 1866, with many firsts andmany achievements. It has two of the largest cementfactories in South Africa, it has South Africa’s largest

cheese factory, it has the deepest sinkhole in the country(Wondergat), and it also boasts a unique game breeding centre,adding to the world’s population of addax, mohr gazelle andpygmy hippopotami. The world’s biggest pure red diamond wasdiscovered in Lichtenburg in 1927 during the diamond rush thattook place there from 1925 to 1935. And of course, the greatGeneral de la Ray is buried in this agricultural centre. Lichtenburgis also the centre of much agricultural activity and this means thatthere are many forms of motorised transport in Lichtenburgrequiring vehicle maintenance facilities such as West End AutoElectrical. West End Auto Electrical was founded in 1982 by Dickdu Randt’s father. This business, now run by Dick du Randt withthe assistance of his wife Ilse and son Marchant, plus JohanGrobler, has built up a solid reputation over the past 28 years, pro-viding an excellent service to the Lichtenburg townsfolk and sur-rounding community. Dick is the General Manager, whilst Ilse isthe “Minister of Finance”, and Marchant is the Service ManagerAuto Electrical, and Johan is the Service Manager Mechanical.West End Auto Electrical is particularly renowned for its after salesservice, which has earned it important contracts both near and far.Word of mouth is particularly strong in the rural communities, tosuch an extent that West End Auto Electrical even looks after theMAN truck fleet at the Mogwase Game Park in the PilanesbergReserve. The importance of businesses such as West End AutoElectrical has increased significantly in recent years as a result ofthe closing down of OEM dealerships in the smaller towns. Onthe upside of these closures is that West End has inherited quali-fied technicians from these dealerships, which has upped the skillslevels, and allows for a high level of technical service.

Being on the main road to Zeerust, West End is visible to passingtraffic, but since the du Randt’s joined e-CAR in 2009, this visi-bility has increased significantly. Despite their excellent reputationin the area, the du Randt’s realised that with the rapid changes inthe automotive aftermarket, they needed to join a strong aftermar-ket brand, to give them the benefits of a national identity, worldclass visual standards, continuity of quality parts supply, and atechnical standard that is continually evolving. e-CAR providesthis, and more. Having recently passed the AA Quality AssuranceAudit, and now members of the RMI, which are part of therequirements for e-CAR membership, West End Auto Electrical iswell positioned to remain the workshop of choice in Lichtenburg,and is even surprising its customers with free soccer balls duringthe months leading up to the World Cup, courtesy of e-CAR’sinnovative marketing initiatives.

Ever heard of the old joke about the mayor’s convention,when the mayor of Lichtenburg introduced himself to themayor of Kakamas, and proclaims, “Ek is die lig vanLichtenburg”? He then enquires, “En wie is jy?” An old joke,but still a classic, which is worth repeating in light of oure-CAR article this month. ABR recently visited this histori-cal town in the North West Province, in search of the reallight of Lichtenburg, and found it in the imaginatively namedThabo Mbeki Drive, which runs parallel to the equally imag-inatively named Nelson Mandela Drive.

57M a y 2 0 1 0

The Light ofLichtenburg

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 00ECAR)

Part of the service orientated team at West End Auto Electrical.Dick du Randt was not available as he was away doing what he

does best – servicing customer’s vehicles.

West End Auto Electrical services the entireneeds of the town.

Page 60: Automotive Business Review May 2010

Preparing for Soccer’sWorld Cup

I m p e r i a l U p d a t e

M a y 2 0 1 058

This year is an exciting one for all South Africans. We should take pride in theforthcoming Soccer World Cup that will place South Africa on the map as a foot-

balling nation and an enticing holiday destination.

With over 130 locations across Southern Africa and

prime positions at all major airports, IMPERIAL’s

rebranded Europcar is a prominent force in the

car rental market, while Tempest has become a

trusted brand in the low-cost car rental market. The group’s car

rental services are supported by the largest used car dealer network

in South Africa. Wholly owned tourism interests include inbound

tour operations and niche-tourism services. According to

Europcar’s annual review, a decline in travellers to South Africa

and a decrease in used car sales over the same period resulted in

slightly lower revenue, though margins were largely maintained.

The review says the successful rebranding of Europcar raised its

profile, with expected long-term benefits, while acquisitions

expanded the brand’s footprint and capacity. “Tourism businesses

benefited from sporting events and are well-positioned for 2010

opportunities and beyond. We decided to pursue scaleable oppor-

tunities in the tourism sector that will amplify our leading posi-

tion in inbound operations and coach touring,” the review adds.

It concludes that a slow but sure recovery is expected in the inter-

national inbound tourism market and business travel, while the

FIFA World Cup will provide further stimulus for car rental.

However, the hosting of such an event brings with it

a variety of new challenges to which the motor

industry will need to adapt. The vehicle rental mar-

ket is one of those industries and we at Europcar

and Tempest Car Hire have already begun our planning to meet

the needs of the soccer spectacular. Historically we de-fleet 3 000

vehicles from our rental fleet after the Easter weekend to end of

June. However owing to the expectation of increased demand,

we will not be doing this in 2010 – we will retain the vehicles

until the end of May, when a decision will be made as to how

many cars will be released into the pre-owned market. The

impact of two months depreciation on these vehicles is minimal.

Furthermore, we have increased our people carrying and luxury

vehicle fleet by 250 vehicles to accommodate anticipated

demand. Springbok Atlas, our luxury coach division, is already

fully booked for the duration of the World Cup and 162 coach-

es will be in action, transporting fans and dignitaries. Not only

have we managed to achieve impressive coach rentals through

Springbok Atlas but, in conjunction with Hyundai, we will be

transporting the 32 teams during the tournament. Each team

will be provided with two luxury coaches to take care of all their

transport needs to and from hotels, training and the stadiums.

Rather interesting are the sold out bookings for our motor-

homes and 4x4 vehicles indicating a tourist who intends to

explore the country beyond the realm of the football stadia.

However, not all is as anticipated, and to date only 20% of our

passenger rental car fleet has been booked, the trend being

echoed in the hospitality and air travel markets where hotels are

releasing rooms back to the local market and airlines are being

forced to reduce their fares. If these bookings are not more pos-

itive in April and May Europcar and Tempest will de-fleet

accordingly.

Business as a whole will face challenges during the period and we

will all need to keep on our toes. Dealerships sales will slow

down and the extended school holidays will mean a drop in pro-

ductivity during the tournament. Conversely, food and accom-

modation suppliers will be busier than ever.

The 2010 FIFA World Cup is a fantastic opportunity to show-

case our country as a destination and we will hopefully see the

benefits in years to come, when foreigners return for their annu-

al vacation. We need to prove to the world that we have a cul-

ture of service. We have done it before, so let’s do it again!

Outlook positive for car rental and tourism

Page 61: Automotive Business Review May 2010
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U p d a t e

M a y 2 0 1 060

Durban Hosts KIA MascotFriend Campaign

13 April 2010. Kia Motors, an official automotive partner of the FIFAWorld CupTM, gave six young children from Kwa-Zulu Natal, Durban theopportunity of a life time: to experience the thrill of the FIFA World CupTM

up close and personal with the official FIFA Mascot, Zakumi.

The KIA Mascot Friend Programme, which was

launched on 27 March 2010, searches for children

between the ages of 8 and 14 to accompany Zakumi,

the official Mascot of the 2010 FIFA World CupTM,

onto the pitch before match kick-off for each of the 64 matches.

The Durban search for the six youngsters took place on 27 March

at the Gateway Shopping Centre. Through a massive media

campaign children were encouraged to come along and show off

their talents in either, dancing, singing, acting or their ability to

play a musical instrument.

The participants were judged on their power to surprise, confi-

dence, personality, and audience appeal. Judges on the day were

Idols star Munro du Toit and well known sports presenter Sibo

Mkhize from Ukhozi FM. Of course Zakumi attended the event

keeping a close eye on his future friends who will be accompany-

ing him on match days.

Of the 97 entries judges finally decided on: Bosisiwe Shangase,

Nikhil Devchander, Brian Kkomonde, Subramoney Cohen,

Nevali Mohan and Maegan Graham.

Mohan won on her singing and dancing which she performed to

the tune of J-Ho from the movie Slumdog Millionaire. “ I could-

n’t wait to see Zakumi, I rushed to see him, and I am so fortunate

to be part of such a wonderful experience, thank you so much

Zakumi and KIA”

The road show will travel to all nine venues where matches will be

played and allow the same opportunity to other children of the

same age. On Saturday, 17 April 2010, it will be the chance for

youngsters in Johannesburg (Sandton City) and Nelspruit

(Riverside Mall) to show us their talent.

KIA also offers many other programmes that gives soccer enthu-

siasts a ‘once in a lifetime’ opportunity to experience the 2010

FIFA World CupTM live. For the latest KIA news and models visit

www.kia.co.za. Kia Motors is an official partner of the 2010 FIFA

World CupTM.

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S h o w T i m e

M a y 2 0 1 064

The Castrol Extreme Auto Show hasbecome a SEMA mini me, and a mustsee for those interested in cars,across the spectrum, from classicto fast, and the sixth show held inApril 2010 at the Dome, Northgate.ABR was there to take in the action.

Euroquip andPhilips BrightenCastrol ExtremeAuto Show

From an automotive aftermarket perspective, the

shining light at the show, both figuratively and

literally, was the Euroquip stand. ABR spoke to

Prakash Bhagwan, Director, who was displaying

his growing range of brands, including Valeo, Hella,

OCAP, and his latest shining star, Philips. Euroquip is the

exclusive importer and distributor of Philips automotive

lamps and Prakash is understandably excited in being able

to supply the South African automotive aftermarket with

the world’s most technologically advanced lamps.

Philips Automotive Lighting, a business group of Royal

Philips Electronics, is one of the world’s largest suppliers

of lamps to the automotive industry and aftermarket,

whose products enhance the safety and comfort of the

world they illuminate. You can find their light sources in

almost every car on the planet, and their strategic ambi-

tion is to set the pace in the lighting industry as the first-

choice innovative partner for the supply of safety and per-

formance oriented lighting solutions.

An outstanding example of Philip’s technological innova-

tion is their use of UV Quartz glass for optimal lamp per-

formance. By implementing UV-blocking quartz glass,

Philips increases the pressure inside the bulb and conse-

quently generates more light. In addition, only an illumi-

nated quartz glass bulb is capable of withstanding severe

thermal shocks, protecting against premature failure and

giving double the working life compared to the normal

bulbs. Protection against ultraviolet rays is another

unique plus for Philips. UV blocking Quartz Glass offers

far better protection against ultraviolet rays than standard

quartz glass and consequently prevents plastic head light-

ing units from yellowing.

Prakash promises to keep the market informed on the

wonderful properties of Philips automotive lamps and

tips on optimal performance, and ABR shall always be on

hand to pass this information on. As an appetizer,

Prakash gave this important safety advice:

What you should know beforechanging your lamps

1. Change lamps by pair

2. Replace headlamp bulbs every 30,000 kms or every two-years

3. Adjust all lights regularly to avoid dazzling

4. Check all signaling and interior lamps

5. Regularly clean headlight lenses

6. Always have a spare kit in your glove compartment in case ofemergency

7. Upgrade your automotive lights to homologated and originalquality lamps

Director Prakash Bhagwan and General Manager Yusuf Joosub doingduty at the Euroquip stand

Page 67: Automotive Business Review May 2010
Page 68: Automotive Business Review May 2010

W i l d e T h i n g s

M a y 2 0 1 066

The gruesome gunning down of Peter Granat, MD of AutoZone, has got me thinking, and

reflecting on what is going horribly wrong in our country. A country that was on the verge

of something great in 1994; a rainbow nation, and a shining beacon for the rest of the world.

Little did we know that the seeds of hatred were deep in the hearts of young teenagers such

as Julius Malema, who would have been a mere nine years old at the time of the unbanning of

the ANC and the release of political prisoners, an act that has been described as magnani-

mous by many commentators. Surely at that age you cannot be bitter for life! Particularly

when you have been such a fortunate beneficiary of the new dispensation.

The murder of Peter Granat

may have little to do with

crimes of hatred. It also may

not be a mindless and ran-

dom hijacking that went

horribly wrong. It could be far deeper

than that, as many are suggesting. It may

have been an evil act perpetrated by those

dark forces that lurk in the shadows of

high flying businesses, and who are used

when the pace gets too hot. Shades of the

Brett Kebble murder.

I was intrigued by a recent television inter-

view given by Guy Kebble, when he

repeatedly compared Glenn Agliotti to a

“putrid bag of puss”. More intriguingly,

there appears to have been no reaction to

this rather unflattering description.

Maybe on the premise that it is better to

let sleeping dogs lie, rather than stirring

up a hornet’s nest? Personally, I can relate

to Guy Kebble’s rather florid language, as

I have also looked evil squarely in its face,

and it is not a pretty sight. Something like

a putrid bag of puss, but worse! It may

hide behind a well constructed facade, but

when it lets the mask slip, it assaults all the

senses. Your skin crawls and your hair

stands up, your eyes squint in protection

against the unworldly haze, your nostrils

blanch from the stench of Hades, your

tongue distorts into a furry ball as it tries

to process a sulphuric mass, and your ears

echo with the sound of darkness. Believe

me, I know what I’m talking about; I have

been there. I have confronted the devil’s

spawn and I’ve met his disciples head-on.

I know what damage they can wreak. But

the devil must be confronted; otherwise

he will march on remorselessly. The good

news is that the devil is basically a coward,

and does not like confrontation. He

prefers to deal with malleable souls.

But enough of the evil amongst us. This is

a worldwide phenomenon, and there are

enough forces of good to keep this scum

in check. Let us rather look at the unique

South African phenomenon known as the

ANC Youth League. There is simply no

other organisation like it. It is led by a

poorly educated buffoon, and is reported

on by news organisations which should

know better. Malema is not evil; he is sim-

ply an idiot harbouring hatred. Anyone

who disputes this just has to go to

YouTube and listen to his “discussion”

with Barack Obama in late 2008, with

thanks to Darren Wackhead Simpson.

Wackhead exposed the true Malema with

a brilliant spoof, but nobody appears to

have taken notice. Not those in power,

anyway. The problem is that his ignorant

spouting can be leveraged by the forces of

evil, and his incredibly stupid and naive

followers can be incited to commit evil. If

it is true that Zuma is too scared to rein

him in because of the massive support he

enjoys, then God help us. If the majority

of ANC supporters are behind Malema,

then I am afraid to say that we must have

the most cretin mended electorate on the

planet. But I don’t believe it. I think that

the vast majority of South Africans,

including the ANC voters, are appalled by

Malema’s utterances and behaviour. It is

simply not credible to think otherwise. It

is Zuma who is playing the more danger-

ous game, by not sending this appalling

adolescent back to the kindergarten,

where he belongs. To allow Malema to

play court jester is not wise, and definite-

ly not statesmanlike.

Now to the positive face of South Africa. I

have been travelling the length and

breadth of South Africa for many decades,

and I can report that unfailingly I have

only experienced goodwill and friendli-

ness wherever I have gone. We are a great

nation, of happy and upbeat people, no

matter their circumstances. When the

people do behave badly, it is because they

have been stirred up by the small clique of

power hungry thugs as represented by

Malema. And maybe Zuma, who could be

playing a deceitful and dangerous game?

This will explain his silence. Let us turn

our face against these bad people, and let

us show our true face – a face of tolerance,

optimism, and forbearance. We simply do

not deserve our current crop of leaders.

Come on, fellow citizens, let’s do some-

thing about it.

South Africa – a Nation ofContrasting Facesby Fingal Wilde

Page 69: Automotive Business Review May 2010
Page 70: Automotive Business Review May 2010

Botswana is a shining beacon in southern Africa, and

serves as a good role model for its neighbours. The sta-

bility in Botswana is testament to the foresight of its

great statesman, Sir Seretse Khama. Born into nobility,

but banished because of a perceived inappropriate marriage,

Khama eventually returned from exile as a private citizen in 1956

to become Prime Minister of then Bechuanaland in 1965, and he

immediately set about negotiating independence for his country.

As President of Botswana, he promoted the ideal of multiracial

democracy and achieved universal free education, whilst diversify-

ing and strengthening the country’s economy. His class, nature,

disposition and character created an ethical cause and effect,

which ultimately meant that Botswana had a calmer khama

karma. His son Ian is carrying on the tradition under the title

President Lieutenant General Seretse Khama Ian Khama.

This tranquillity was evident at the Maharaja Conference Centre

in Broadhurst, Gaborone, and provided a rare opportunity for the

Partinform manufacturers to interact with the attendees; work-

shops, parts shops, and a few DIY customers; to promote the con-

cept of branded quality product. Colin Murphy, Chairman of

Partinform, told the assembled crowd that “the automotive after-

market has different levels of affordability, but everyone wants to

keep their cars going longer and in roadworthy condition. The

message of quality is getting across, and when people are given the

choice, nine times out of ten they will pay more for quality. The

human being is a rational animal, and therefore it is important for

resellers and fitters to give their customers the intelligent choice.

And as professionals, it is important for them to explain the dif-

ference. Whilst the South African Consumer Protection Act may

not apply in Botswana, it is still unwise to hide behind the skirts

of anonymous overseas suppliers – it is the local supplier’s reputa-

tion that is on the line, and the simple solution is to only sell

branded quality product”. In Botswanese, Colin was peddling his

own version of calmer khama karma.

P a r t i n f o r m

Calmer Khama Karma

M a y 2 0 1 068

The Partinform Automotive Trade Show crossed the border into Botswana on theevening of the 20th April 2010, and hosted some 150 visitors, roughly half fromspares shops and half from workshops. A good mix from the organisers’ point ofview, and a good indication of the balance in the Botswana automotive aftermarket.

Page 71: Automotive Business Review May 2010

69M a y 2 0 1 0

The Prize Winners

Page 72: Automotive Business Review May 2010

70 M a y 2 0 1 0

RETAILER OF THE YEAR COMPETITION

Page 73: Automotive Business Review May 2010

71M a y 2 0 1 0

The readers of ABR are not being ignored – three proactive readers will be drawn out of the hat to join the ForzaFerrari Racing Experience party at the Zwartkops Race Track Pretoria on 25 November 2010. Just answer thesethree questions, and send to fax 086 6579 289 or e-mail [email protected]:

Witbank 11 May 2010

Newcastle 17 August 2010

Polokwane 21 September 2010

Rustenburg 19 October 2010

Soweto 9 November 2010

LOOK OUT FOR THE NEXT PARTINFORM IN YOUR AREA:

C o m p e t i t i o n C o r n e r

1. Who is the current President of Botswana?

2. When it comes to the purchase of parts, what is the intelligent choice?

3. Which magazine covers the Partinform Trade Shows?

Name and Surname: __________________________________________________________________________________

Company: ___________________________________________________________________________________________

Position: ____________________________________________________________________________________________

Postal Address:_______________________________________________________________________________________

Contact Tel. no’s:_____________________________________________________________________________________

e-mail address:________________________________________________________________________________________

Page 74: Automotive Business Review May 2010

M a y 2 0 1 072

Rain Saves F1 inMelbourneRain not only saved the Formula 1 GP race in Melbourne but turnedit into one of the most exciting and entertaining Grands Prix. Not dif-ficult to do after the boredom of Bahrain run on a featurelessdesert island circuit in front of the few folk – mostly immigrant -workers, I would imagine.

Vettel retiring his Red Bull Renault made it a 1 – 2 for

Ferrari with Alonso leading home Massa to give the

Maranello team a 22 point lead in the Manufacturer’s

Championship. Good start for Ferrari, after a disas-

trous 2009. Comes Round 2 and the Aussie GP in the State of

Victoria. Not exactly known as a road circuit with lots of passing

opportunities other than drivers going off into the gravel traps, the

fans were doubtful that the current F1 rules would provide a bet-

ter race than in the Middle East. Ironically a huge Aussie crowd

pitched up – probably to see the returning Michael Schumacher,

and to see if Mark Webber could pull off a win.

Then the rain arrived. Jesse Adam of The Star said, “The wet

weather is a wonder-drug and miracle cure for dull motor racing”.

Not a deluge but enough to wet the track and neutralise the cars

and drivers and to get all the team members in the pits involved

in the race. And action and drama we had aplenty on Lap 1.

Schumacher had his front wing taken off in the notorious first cor-

ner where his brother, Ralf, launched his car into retirement six or

seven years ago. A Sauber flew over a competitor’s car, when its

brakes supposedly failed. Kobayashi, Hulkenberg in his second

Grand Prix, and Buemi all retired on the first lap. Alonso also spun

his Ferrari. Then genius or luck? Jensen Button, the winner of the

Aus Grand Prix in 2009, did a Senna. He was going nowhere

down in the pack on wet roads so had to do something different.

He went into the pits to change onto unsuitable slick tyres after

nine laps. But the roads were drying out and he passed all, land-

ing up in front after Vettel retired with something wrong with the

front end of his car on lap 26. That was Vettel’s second retirement

in two GP’s. The skill of the drivers in basically equal machinery

because the down-forces are not so good on wet roads and visibil-

ity a problem – was brilliant. Ten cars / drivers, retired mainly

through collisions. What was left racing was certainly exciting to

us watching on TV.

Kubica, the Pole, did wonders for Renault with a second spot after

new aerodynamics had been fitted since Bahrain. Massa and

Alonso were 3rd and 4th to ease further ahead in the Drivers and

Manufacturers Championship. Rosberg was 5th again in the

Mercedes Benz ahead of Lewis Hamilton, who was tagged by

Webber with a lap to go. Liuzzi, the Italian, brought the Force

India car home in 7th. They have never won a race yet, but give

them time. Altogether what a GP should be. Human drama,

excitement and close racing with youngsters like Alguersuari

showing we have class talent on the way up.

Malaysia and Round 3 was guaranteed to be a cert for rain. It was.

But not during the race, which was run on bone dry roads.

Webber was on pole in the wet qualifier which was stopped when

the track became unraceable.

In hot – HOT – weather, Seb Vettel out-dragged his team-mate,

Webber, to the first corner and as he had done in the first two GPs,

and that was that. A 1 – 2 for the Red Bull Team which puts them

3rd in both the Drivers and Manufacturers Championships. An

interesting event on the widest and fastest roads but no great GP

as far as passing was concerned. We are back to Bahrain problems.

No overtaking. Lots of drivers trying to get through but not much

happening as the turbulence behind the cars prevents passing and

keeps them well apart.

Nico Rosberg got his first podium position in 3rd spot with the

Mercedes Benz. A fast improving Renault and Kubica getting bet-

ter all the time with even more bits fitted since Australia, led a pro-

cession home of Sutil (Force India), Lewis Hamilton who was

unable to get past. Massa and Button were on Hamilton’s tail with

the same problem. Alonso’s Ferrari came to a steaming stop while

Michael Schumacher stopped with a left rear wheel nut missing

altogether!! Bet that got the pits talking long into the night.

Pray for rain in China and Round 4 when the featureless Shanghai

Track plays host to Formula 1. Maybe pray for light showers for

the rest of the season before Vettel clears off into the blue.

F a s t W h e e l s

by Roger McCleery

1. 75 years

2. FIA (Federation Int.

Automobil)

3. 1947 – William Clay Ford

married Martha Firestone.

4. Toyota

5. 1986

6. Johann Rupert

7. John Lennon

8. France

9. 5 kmh

10. Czech Republic

11. Jeffery Nemeth

12. VW Polo Vivo

13. Jensen Button

14. 586

15. 22 million

16. BMW

17. Budapest Hungary (1989)

18. 7900

19. Chrysler

20. Cape Town (Killarney)

Answers From page 37

Page 75: Automotive Business Review May 2010

Apart from the lure of the brand, it was the David vs.

Goliath nature of the vehicle that appealed to Stefan

le Roux, Midas Franchise, Marketing and

Commercial Vehicle Director. “The innovative con-

cept, the radical thinking behind the design, the

Lotus racing pedigree, the potential controversy around the classi-

fication of the car, and the guaranteed visibility because of these

factors, all played a role in

our decision to sponsor this

vehicle” explains le Roux.

The potential controversy

that le Roux is referring to is

the fact that the Lotus Exige

has turned design on its head,

being a production car based

on a racing car, and not the

other way round. Thus, any-

one with a family would not

be advised to buy this car,

because the very ethos behind

the concept of this vehicle is

weight reduction. Colin

Chapman, the founder of

Lotus, was obsessed with

weight, and this resulted in

fast small cars with ground-

breaking suspension solu-

tions. And therein lies the

rub for the Midas Lotus

team. Over and above the

massive disadvantage of

power against the other cars

in the production car series (a

1,8 litre engine vs. 3,0 litre

brutes), which is mitigated by

weight and agility, the SP

Racing outfit, who are tasked

with the set-up of the vehicle,

have to contend with a frisky

and temperamental animal. The nature of the production car series

requires production car attributes, i.e. normal road tyres, whilst

the Lotus Exige is far more suitable to slicks. Something like

expecting a pedigreed race horse to run with clunky horseshoes.

Thus, the set up of the vehicle becomes a fine art, and getting it

right assumes critical proportions. Help is at hand, with SP Racing

getting useful feedback from Gianluca Pisanello, Lotus Race

Engineer, and Jarno Trulli, Formula One Racer, who have teamed

together at Lotus Motorsport overseas to set up the new Lotus

Evora Cup racer. Thus, as the Bridgestone Production Car

Championship gathers steam, you can expect further development

of the Exige’s aerodynamics, suspension and engine calibrations,

and you can look forward to exciting racing. Richard Pinard, the

driver of the Exige, tells ABR that the potential of the car really

excites him. Pinard says that he feels privileged to be part of the

Lotus global racing renaissance. “Ever since the Malaysian compa-

ny Proton took over

Lotus, they have been

making a racing

comeback”, says

Pinard. Pinard stresses

that whilst Lotus’

Formula One foray is

the high profile activi-

ty, it is a global effort

across many classes,

and that with its spon-

sorship Midas is play-

ing a trail blazing role

in bringing the Lotus

racing brand back to

South Africa. “I still

remember Ayrton

Senna’s maiden victo-

ry in the 1985

Portuguese Grand

Prix at Estoril in his

black and gold Lotus,

when he beat second

place Michele

Alboreto in his Ferrari

by over a minute. It

was a driving master

class. And who knows,

maybe before the end

of the season, I can do

something similar in

the Exige?”

We leave the last word to Stefan le Roux, “Midas is the preferred

distributor, value added provider and franchisor to the automotive

aftermarket in South Africa, and we prefer to fly under the radar,

so we can relate to the Lotus brand and its values. We are happy to

be the catalyst to the Lotus racing renaissance in South Africa, and

we look forward to seeing our lightweight racer putting it over the

big boys in the future, in true David vs. Goliath style”.

M i d a s S p o r t

73

In the Driver’s Seat

M a y 2 0 1 0

A series of articles on Midas motorsport initiatives in 2010

A lot of interest has been generated by the Midas Sport entry in theBridgestone Production Car 2010 Championship, not least because of theiconic status of the Lotus brand.

The Lotus Exige on display at the Castrol Extreme Auto Show – displaying this vehicle at shows and dealerships is an integral part

of the Midas sponsorship strategy.

Page 76: Automotive Business Review May 2010

T h e F i n k

M a y 2 0 1 074

ABR receives many letters to the editor, for which we thank our readers. The problem is that most of the letters are too nice.The majority compliment the magazine, and if we were an airline publication we would dutifully print the best, and reston our undeserved laurels. But, once in a while, we get interesting letters, which sometimes deserve a response, and sometimesdeserve to be aired. Not for content, but rather the emotions they stir up. These are the letters we are looking for, so please seeif you can outdo this month’s effort. We have appointed Fabius Ignatius Nathaniel Krance of the Department of CivilLiberties to act as intermediary. You will find that Mr. Krance is perfectly suited to this task.

The first letter, hopefully the first of many, is from Ms BH of KwaZulu Natal, who was concerned abouta photograph in our March 2010 issue, and particularly our description of the photographas “eye candy”. Here are the findings of Mr. Krance.

1st April 2010

To: BH

From: Fabius Ignatius Nathaniel Krance

Dear Madam

I represent the Department of Civil Liberties, an arm of the Directorate of Intrusive Behaviour and Inappropriate

Actions. My official title is Chief Nanny for automotive publications, with titles beginning with the letters A to C. My

role is to respond to letters, faxes, e-mails and sms communications concerning matters of national interest. Your

missive of 19 March 2010 to ABR has been forwarded to me for urgent attention, as the content is extremely appro-

priate and this matter has been defined as being as close to Armageddon as we’ll ever get.

To fully investigate and respond, I need to know what exactly your query is about – you ask ABR to “explane your-

self”. I have looked in the dictionary and even the internet and there is no such word. Are you asking them to leave

a plane (ex plane)? Or do you wish for ABR to divest itself of woodworking implements? Or did you mean to use the

word explain. If so, to ask ABR to explain themselves requires a long dissertation about their origins, their history,

their current situation, their philosophies, etc. Or are you asking them to explain the reference to the phrase eye

candy, as in “please explain the reference”? If so, I can report after extensive investigation and over two hundred

interviews conducted in great secrecy that the two ladies in question are members of the “Eye Candy Teetotaller

Society”, which meets once a month at an appropriate venue. The Society comprises various bodies representing

many constituencies, all concerned about the total consumption of tea at political, industrial, and commercial

events. The photographer was keen to photograph all 27 representatives who were attending this event, but could

only get two ladies who were prepared to be photographed at the time, hence the term “SOME eye candy”.

Unfortunately, this is indicative of sloppy reporting, as it clearly confused you. I do not know what has become of our

standards! The offending journalist has been summarily dismissed and has been put on the National Registry of

Sloppy Journalism. But that is not all; he has also had his fingernails removed and castrated without any anaesthet-

ic balm. Thus, he will think twice before scratching in other people’s business, and he definitely will no longer have

the balls to confuse and insult such luminaries as yourself.

I trust that this matter of national importance has been adequately addressed. Thank you for bringing this to our

attention. The very fabric of our society is dependent on the eagle eyes of citizens such

as you. You are to be commended for your puritan approach and your unwavering

commitment to keeping everyone on the straight and narrow. I shudder to

think what this world will become if not for such sturdy individuals as BH.

The people of the North Coast of KwaZulu Natal are extremely fortunate to

have you in their midst.

If this does not satisfy you, the matter can be upgraded to RED ALERT,

and all that is required is for you to give the go ahead, and I will expe-

dite your letter to the Chief Underwriter, National Tasks. His name and

title is Frederick Urquhart Clarence Knoetze, Official Fiduciary Friar.

Yours in supine admiration

F.I.N. Krance – Chief Nanny

Page 77: Automotive Business Review May 2010

I have a friendfrom Mpumalanga

who is into alternative humour. Thisone is as old as the hills, haha, and istruly appalling. That’s why I’m inflict-ing it on our readers:

It’s a dark and stormy night. Bob Hill and

his new wife Betty were vacationing in

Europe... as it happens, near Transylvania.

They were driving in a rental car along a

rather deserted highway. It was late and

raining very hard. Bob could barely see the

road in front of the car. Suddenly the car

skids out of control! Bob attempts to con-

trol the car, but to no avail! The car

swerves and smashes into a tree. Moments

later, Bob shakes his head to clear the fog.

Dazed, he looks over at the passenger seat

and sees his wife unconscious, with her

head bleeding! Despite the rain and unfa-

miliar countryside, Bob knows he has to

get her medical assistance. Bob carefully

picks his wife up and begins trudging

down the road. After a short while, he sees

a light. He heads towards the light, which

is coming from a large, old house. He

approaches the door and knocks. A minute

passes. A small, hunched man opens the

door. Bob immediately blurts, "Hello, my

name is Bob Hill, and this is my wife Betty.

We've been in a terrible accident, and my

wife has been seriously hurt. Can I please

use your phone?" "I'm sorry," replied the

hunchback, "but we don't have a phone.

My master is a doctor; come in and I will

get him!" Bob brings his wife in. An older

man comes down the stairs."I'm afraid my

assistant may have misled you. I am not a

medical doctor; I am a scientist. However,

it is many miles to the nearest clinic, and I

have had a basic medical training. I will see

what I can do. Igor, bring them down to

the laboratory." With that, Igor picks up

Betty and carries her downstairs, with Bob

following closely. Igor places Betty on a

table in the lab. Bob collapses from exhaus-

tion and his own injuries, so Igor places

Bob on an adjoining table. After a brief

examination, Igor's master looks worried.

"Things are serious, Igor. Prepare a transfu-

sion." Igor and his master work feverishly,

but to no avail. Bob and Betty Hill are no

more. The Hills' deaths upset Igor's master

greatly. Wearily, he climbs the steps to his

conservatory, which houses his grand

piano. For it is here that he has always

found solace. He begins to play, and a stir-

ring, almost haunting melody fills the

house. Meanwhile, Igor is still in the lab

tidying up. His eyes catch movement, and

he notices the fingers on Betty's hand

twitch, keeping time to the haunting piano

music. Stunned, he watches as Bob's arm

begins to rise, marking the beat! He is fur-

ther amazed as Betty and Bob both sit up

straight! Unable to contain himself, he

dashes up the stairs to the conservatory. He

bursts in and shouts to his master: "Master,

Master! ..... The Hills are alive with the

sound of music!"

If you ever feel a little bit stupid,just read this; you'll begin tothink you're a genius..

Question: If you could live forever,would you and why?Answer: "I would not live forever, because

we should not live forever, because if we

were supposed to live forever, then we

would live forever, but we cannot live

forever, which is why I would not live for-

ever," – Miss Alabama in the 1994 MissUSA contest - She won!.

"Whenever I watch TV and see those poor

starving kids all over the world, I can't help

but cry. I mean I'd love to be skinny like

that, but not with all those flies and death

and stuff." – Mariah Carey

"Smoking kills. If you're killed, you've lost

a very important part of your life," –Brooke Shields, during an interview tobecome spokesperson for federal anti-smoking campaign

"I've never had major knee surgery on any

other part of my body," – WinstonBennett, University of Kentucky basketball forward.

"Outside of the killings, Washington has

one of the lowest crime rates in the coun-

try," – Mayor Marion Barry,Washington, DC

"That lowdown scoundrel deserves to be

kicked to death by a jackass, and I'm just

the one to do it," – A congressional candidate in Texas.

"Half this game is ninety percent men-

tal." – Philadelphia Phillies Manager,Danny Ozark

"It isn't pollution that's harming the envi-

ronment. It's the impurities in our air and

water that are doing it.."– Al Gore, VicePresident

"I love California. I practically grew up in

Phoenix." – Dan Quayle

"We've got to pause and ask ourselves:

How much clean air do we need?"– LeeIacocca

"The word "genius" isn't applicable in

football. A genius is a guy like Norman

Einstein." – Joe Theisman, NFL footballquarterback & sports analyst.

"We don't necessarily discriminate. We

simply exclude certain types of people." –Colonel Gerald Wellman, ROTCInstructor.

"Your food stamps will be stopped effective

March 1992 because we received notice

that you passed away. May God bless you.

You may reapply if there is a change in

your circumstances." – Department ofSocial Services, Greenville, SouthCarolina

"Traditionally, most of Australia's imports

come from overseas."– Keppel Enderbery

“If somebody has a bad heart, they can

plug this jack in at night as they go to bed

and it will monitor their heart throughout

the night. And the next morning, when

they wake up dead, there'll be a record."

– Mark S. Fowler, FCC Chairman

....Feeling smarter yet?

75M a y 2 0 1 0

T h e L a s t W r i t e s by Baron Claude Borlz

“For our more discerning readers .....”

Answer from page 6

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