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30 Logan’s Run 34 Breakfast at The Palace 40 Refloating Atlantis 45 Iron Men of Thabazimbi 50 It’s time to Act 54 Deep Purple Official Mouthpiece of

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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!

TRANSCRIPT

Page 1: Automotive Business Review June 2010

30 Logan’s Run34 Breakfast at The Palace40 Refloating Atlantis45 Iron Men of Thabazimbi50 It’s time to Act54 Deep Purple

Official Mouthpiece of

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

It would not be hyperbolic to say that training is the

lifeblood of the automotive industry, from the OEMs

down to the workshop on the corner. Even the DIY fanat-

ic requires training, and this should be one of the top pri-

orities of our industry. This shall be the mantra of ABR for

the foreseeable future – training, training, and more train-

ing is required at all levels of our industry, and we shall cover this

subject from all angles, without fear or favour. ABR has the full

backing of AAMA (Automotive Aftermarket Manufacturers

Association) in this endeavour, and they are quite happy for us to

acknowledge all and sundry who are contributing to the upskilling

of our workforce. Thus, our AAMA Alert on page 14 recognises

and salutes the contribution of Nissan South Africa to the training

effort, with an article from our newest contributor, Alison McCrae.

To recap, as we stated in last month’s issue, the priorities for our

industry, particularly for the aftermarket, are:

• Attracting young school leavers and turning them into skilled

technicians at all levels

• Keeping these people in the industry, and ensuring that they

stay up to speed with technological advances

• Upskilling the existing pool of technicians, and ensuring that

this valuable resource stays relevant in today’s fast changing

world

Whilst there is a significant backlog in achieving these priorities,

there are many positive stories. Many companies in the automotive

industry are already on the high road of training, with centres of

training excellence dotted around the country. ABR intends to

uncover these gems, and to parade these efforts via the printed and

digital medium of our publication. We need to create a groundswell

of replication, with the support of industry and government. Every

single automotive business has to caught up in this net, because our

very existence will soon depend on training and the resources allo-

cated to it. ABR shall be part of this revolution. It is both our duty

and our privilege, as South Africa’s leading and most influential

automotive aftermarket publication, to be at the forefront of pub-

licising and promoting training and development. Our country’s

reputation is on the line, so we will brook no negative thoughts.

Another critical aspect that contributes to South Africa’s image in

the automotive world revolves around innovation. When it comes

to innovation, invention, discovery, and original thought, South

Africa has traditionally punched well above its fighting weight. We

have a formidable reputation to uphold, so it was heartening for

ABR to discover a marvellous jewel in the crown of automotive

innovation in Boksburg, of all places. Alfred Teves Brake Systems

(Pty) Ltd have been quietly working away on a revolutionary uni-

versal performance brake caliper, which will come as a godsend to

the owners of hot hatches in this country.

ABR has been aware of this project since last year, but was sworn to

silence until Ate was good and ready to announce their success

story. The time is now ripe, and ABR is indeed proud to scoop this

story, and to place this precious prize on our front cover. Read all

about this wonderful bit of southern ingenuity on page 18.

T h e P h o e n i x

J u n e 2 0 1 02

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

In the May 2010 issue of Automotive Business Review, our AAMA Alert pagefocused on training and resources, and asked whether we were facing animpending crisis. This was going to be the subject of the Phoenix for theMay issue, but an unexpected tragedy in the automotive aftermarket bumpedthis story off the editorial page. After doing the right and proper thing,we now return to this subject.

Training – the Lifebloodof our Industry

For the latest news on the AutomotiveIndustry, make sure to visit

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

Publishing EditorGraham ErasmusCell: 083 709 8184

Editors at LargeAlwyn ViljoenPaul Collings

Intelli-Driving EditorEugene Herbert

CorrespondentsBeeton, FrankBorlz, Baron ClaudeBurford, AdrianFoster, GavinGamble, Austin

Hogg, GilbertKeeg, HowardMcCleery, RogerMcCrae, AlisonTwine, TonyWilde, Fingal

Published byTrilogy Publishing

Advertising SalesMarlene ErasmusCell: 082 837 2668E-mail: [email protected] Hudson-LambCell: 083 325 4146E-mail: [email protected]

Editorial Office81 Alma Road, WendywoodTel: 27 11 656 2198Fax: 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

2828

3434 6767

1919 6161

4

Official Mouthpiece of

2 The Phoenix

6 What’s the Buzz

12 AIDC Quiz

14 AAMA Alert

18 A Shining Halo

22 Personal Profile

24 Bakkie Beat

26 Auto Topical

28 Hyundai Kia Motors Update

30 Frankly Speaking

32 Life Goes on

34 Tony’s Take

36 The Chery Story

40 Weighty Issues

42 Burford on Brands

43 Industry Update

44 Tyre Safety

45 e-CAR

46 Intelli-Driving

47 Spirit of Safety

48 Customer C.A.R.E.

50 Consumer Protection Act

51 Tyre Talk

52 Diamond Dialogues

54 Capricorn Insights

58 The Golden Triangle

60 Vehicle Launch

64 Partinform

72 Industry Innovations

73 Midas Sport

74 LUK INA Sport

75 Fast Wheels

76 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.

Photo Credits: Quickpics • Motorpic • Cover photo: Graham Lamb

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

W h a t ’ s t h e B u z z ?

J u n e 2 0 1 06

KenKen 6 x 6How 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 1-6.

• 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 76

Volkswagen AutoPavilion hits 200 000 visitors

One lucky person was taken by surprise on the 28th April 2010 when she unknow-

ingly became the 200 000th visitor to the AutoPavilion – Volkswagen of South Africa’s

popular heritage centre. Also known as the “Place of cars and legends,” it is still the

only automobile discovery centre on the continent and only the fifth in the world.

A happy Ms Avril Muller from Uitenhage, who celebrated her 26th birthday the day

before (27 April), received a R1 000 gift voucher to spend in the AutoPavilion bou-

tique. Volkswagen opened the doors of this architectural masterpiece in March 2004,

investing millions in creating a unique museum to capture Volkswagen’s heritage.

Since then, school groups, students, foreign and local tourists have been arriving in

droves. On average around 3 000 visitors a month came to enjoy the nostalgia, high

technology and edutainment the AutoPavilion offers. Combined with a fascinating

factory tour twice a day, it has became one of Uitenhage’s most popular tourist attrac-

tions and a ‘must see’ for all car enthusiasts.

A Volvo car ridecan ease allergiesAs wonderful as the spring is for many

people, it is also sheer torture for others.

A person suffering from asthma or aller-

gy has few sanctuaries during the pollen

season. However, a ride in a Volvo car

may make life easier. "The filters we fit

to clean the passenger compartment air

also remove the particles that cause

allergies. A ride in a car can actually

make breathing easier for many suffer-

ers when the problem becomes acute,"

says Andreas Andersson, manager of

allergy-optimised car interiors at Volvo

Cars. The filters that clean the air have

two functions - one blocks particles and

the other is impregnated with active

carbon, which neutralises gases. The air

in the car's passenger compartment is

monitored by an air quality system that

measures the amount of gases in the

incoming air. Well before the levels get

too high, the air intake to the passenger

compartment is shut entirely automati-

cally without any input from the driver.

CHANGE DRIVINGSTYLE TO SUPPORT

GREEN CAMPAIGNTyre maker Bridgestone SA has reminded

South African drivers that they can reduce

their motoring costs and the environmental

impact of motoring substantially by make

just a few small changes in their driving

style. Bridgestone SA Public Relations

Manager, Mandy Lovell, said that the environmental impact of vehicles happens in three

main phases. “The first phase is the design and manufacture of the car, the second phase is

the vehicle’s normal service life and the final phase is where the vehicle is scrapped or

recycled,” she explained. “The FIA’s Bridgestone-sponsored international Make Cars Green

project aims to address all three of these phases by reminding motorists of ten simple points

to reduce the environmental impact and cost of motoring,” she added. “The first tip, Buy

Green, is highly significant – motor manufacturers build the cars consumers want, and it’s

up to each of us to create a demand for more environmentally conscious vehicles,” she

explained. Other tips in the Make Cars Green campaign include advice on driving style, such

as accelerating gently and keeping a more constant speed, as well as maintaining correct tyre

pressures. Journey planning, to reduce excess emissions caused by losing one’s way, is

another issue addressed by the campaign.

Motorists are also advised to offset their CO2 emissions. This can be done in many ways,

from planting trees to installing roof insulation to reduce energy requirements, or even

opting for solar water heating instead of an electric geyser. “The full list of tips, as well as other

useful information, can be found on www.makecarsgreen.com,“ Lovell said. “Each one of us

can play a role in reducing the impact of motoring on our environment,” she concluded.

Page 9: Automotive Business Review June 2010
Page 10: Automotive Business Review June 2010
Page 11: Automotive Business Review June 2010
Page 12: Automotive Business Review June 2010

W h a t ’ s t h e B u z z ?

10 J u n e 2 0 1 0

IMPERIAL Logistics awarded newBMW contract in GermanyGillhuber Logistik Group, a 100% subsidiary of IMPERIAL Logistics International’s

business unit, Panopa Logistiek has been awarded the management of external

warehousing and interplant transport for long-term customer and renowned car

manufacturer, BMW. The additional services will see IMPERIAL Logistics overseeing

1 000 deliveries daily, utilising up to 200 trucks to all BMW Bavarian locations and

its Leipzig plant.

Volkswagen of South Africa inrecord-breaking export In a first for Volkswagen of South Africa and the seaport of Port Elizabeth, the

biggest single vehicle shipment ever - 2 600 New Polo’s and Cross Polo’s - left

the harbour on 30 April 2010. The Morning Cello spent 21 days at sea on its

voyage to Emden in northwestern Germany. From Emden, the vehicles are des-

tined for the United Kingdom, Ireland, Malta, Cyprus, Germany, Italy, France,

Austria, the Netherlands, Ukraine, Belgium, Portugal and the Canary Islands.

THUMBS UP FOR PHAKISA Motorsport South Africa (MSA), the controlling body of motorsport

in the country, conducted a very satisfactory circuit inspection in

early May 2010 at the 4,24km Phakisa Freeway in the Free State, host

of 6 World Motorcycle Grands Prix. Two circuit inspectors, George

Portman and Piet Swanepoel, gave the circuit the thumbs up and it is

all systems go for the rest of the motorsport season’s national, region-

al and club championships. The Protour with national, regional and

club categories took place on 22 May with spectacular classes such as

the Shelby Can Am’s, Midas/Investchem Formula Ford’s, Red Square

Kawasaki ZX10R Masters, Goldwagen Challenge, Altech GT

Challenge and the Altech Porsche Club 924. The scheduled WesBank

Super Series will take place on 14 August. The Grand Prix road course

was designed in conjunction with officials of the FIM in the late

1990’s. It is 12m wide throughout and has 14 turns, five left and nine

right-hand. Although the straights are relatively short, the circuit has

no chicanes, which makes for a fast and flowing ride. On his first visit

to the circuit in late 1999, Alex Barros rated the fast right-hander at

the end of the back straight as the best in Grand Prix bike racing!

After taking to 500cc crown in the 2001 South African MotoGP,

Valentino Rossi said "I love this place - it is one of the most demand-

ing racetracks in the world, and you have to be brave to win here."

Tenneco Aftermarket Europe Wins Top Trade AwardTenneco (manufacturer of Monroe® and Rancho® shock absorbers in South Africa), has been named ADI

Supplier of the Year 2009 for outstanding performance in supplying the European aftermarket with Monroe®

ride control and Walker® emission control products. The award was made during ADI’s recent annual

convention. ADI (Autodistribution International), is a wholesale aftermarket trade group comprising 19 national partners who represent 500

automotive wholesale businesses and a network of more than 2,000 wholesale outlets in over 26 countries. More than 40 international suppliers were

judged in its annual award event. Tenneco scored well in all ten of the judging criteria and achieved first overall position in product know-how,

R&D and innovation and full international range categories. Other categories included OE quality; distribution; logistics and availability; marketing;

advertising, promotions and training support.

Page 13: Automotive Business Review June 2010
Page 14: Automotive Business Review June 2010

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

by Roger McCleery

Answers on page 75

1. Who made a hot sports car called Fair Lady?

2. Who is the reigning South African Rally Champion?

3. What was the biggest selling passenger car in South Africa in March?

4. What make of bakkie holds the 72-hour record for diesels?

5. At what speed?

6. What is Nampo?

7. Who produces the motor sport programme Rapid Motion?

8. Name four things that Deneysville in the Free State is famous for.

9. BMW made a three-wheeled car called a what?

10. What Nationality was Bruce McLaren – founder of McLaren cars?

11. Who was the first Formula 1 Champion in 1950 in an Alfa Romeo 159?

12. Who built the first Japanese car factory in Europe?

13. Name a South African who designed Ducati motorcycles.

14. What does MSA stand for?

15. The first Morris Minor prototype at Earls Court was called a what?

16. Who is the youngest Formula 1 Champion so far?

17. What was the capacity of the 2-stroke engine used in the 3-wheeled Messerschmitt Kabin Roller KR200?

18. What German car was manufactured in New York?

19. What country first introduced one-way streets?

20. What World F1 Champion died of a heart attack at the wheel of a BMW M5 at the Bathurst Raceway outside Sydney?

A I D C Q u i z

J u n e 2 0 1 012

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

J u n e 2 0 1 014

AAMA Salutes Training Initiatives

A L E R T

Nissan goes the extra mile!In a heartfelt ceremony on 7 May 2010 at Nissan’s manufacturing plant in Rosslyn,a total of eight engines were handed over to two Gauteng-based Further Educationand Training Colleges. This being one of the many examples of Nissan’s commitment tohelping communities nationwide.

While recycling these engines could put a few extra

bucks in the their piggy bank – Nissan first

starting donating engines to colleges a few years

back. The programme started in 2007 when

engines were handed over to 15 higher learning institutions in

Gauteng, Limpopo and North West provinces. The objective was

to assist the process in ensuring that students not only obtain a

thorough theoretical knowledge through their course, but also

have the opportunity to apply that knowledge in a practical

situation. Tshwane North College and the Tshwane University of

Technology were the proud beneficiaries of the engines, and stu-

dents as well as staff were delighted to receive them.

Approximately 90 students will benefit from the engines during

this study year – 35 TNC Rosslyn Campus motor mechanic stu-

dents and more than 60 TUT Pretoria Campus students who are

studying thermodynamics (incorporating engine testing) as part

of a mechanical engineering course. General Affairs Manager,

Wonga Mesatywa said, “The manufacturing industry, not

least the automotive sector, continues to

experience a shortage of

critical skills. This is an obvious concern for Nissan SA and our

counterparts. Not only do we need to attract more students to

automotive-related disciplines, but we also need to provide the

tools for enhanced learning. We believe that the engines will be a

vital hands-on aid for students at all of the FET colleges to which

we have donated.”

Clearly, Nissan is well aware of the skills shortage we are experi-

encing in the South African motor industry, and are doing their

bit to combat this problem. The understanding being that

students need to fully experience their chosen course, through

theory and applying this theory in order to enjoy it, at the same

time reinforcing their new found knowledge. Nissan also stress

that graduates and students need support from the industry – this

is where their many graduate programmes come into play, giving

future industry professionals the support and guidance they need

when starting out. Currently their Learnership Programme is

accommodating 225 learners – of whom 50 are disabled. College

representatives Professor Mbarawa and Steve Gerber expressed

their gratitude, “We are grateful that Nissan SA has seen fit to

embark on, and continue, an initiative that will benefit students

at our respective colleges, as well as the automotive

industry at large. It is especially important if

government is to reach targeted growth rates,

already affected by the global recession.”

As part of a socially responsible corporate strategy,

Nissan are involved in many other ventures with

the same sentiment as their Engine Handover ini-

tiative. An example of this is the Nissan Mobile Eye

Clinic in KwaZulu Natal. Nissan converted a car

into a mobile eye clinic where underprivileged chil-

dren can get their eyes tested and sorted out, helping

them perform well at school, instead of dropping out

at an early age because they cannot keep up. As well as

helping communities, Nissan has also gone green and

are doing their bit for the environment. In 2005 Nissan

embarked on an environmental/education programme

involving old billboard ad material. Disabled children

from the north of Jo’burg embarked on this initiative,

making bags out of recycled billboard material. These bags

when then given to rural school children to carry their

books in, replacing the plastic bags they normally use in any

weather. Leaving us feeling all warm and fuzzy, we would

like to say well done to Nissan, and keep up the good work!

We all know our country needs as many good Samaritans as

possible…

Nissan SA’s GM of Corporate and General Affairs

Wonga Mesatywa (left) handing over engines to TNC principal

Steve Gerber (centre) and TNC learnership lecturer

Adam Coertzen (right)

by Alison McCrae

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

W h a t ’ s t h e B u z z ?

J u n e 2 0 1 016

A new electronic RAM catalogue has beenintroduced featuring the entire range of RAMbelts, hoses and miscellaneous products, whichis being well received by Distributors andWorkshop owners alike. The new “Electrolog”offers users an alternative to the traditional hardcopy catalogue.

User-friendly: All products and specifica-tions can be found in the same catalogue, therefore, using the catalogue is far less time-consuming. Users can access information at theclick of a button and search for our productsand their applications by simply entering aRAM number, an item category or a vehicletype.

Regular Updates: The electronic catalogueoffers quicker and simpler notification aboutnew products, specifications and other technicalinformation, as it is updated regularly, i.e. theUser has access to current data at all times.

Easy Access: The electronic catalogue isavailable online 24/7. Users can access the nec-essary information whenever they need to, with-out having to cart around numerous catalogues.

Users are also able to print specific pages per-taining to the parts that they require informa-tion on.

Backed up by Good Service: TheAutomotive Division of Veyance Technologies

Africa, or RAM, want to stress the importanceof fitting dependable, quality Goodyear-branded parts that have been tried and testedunder the harshest conditions. The GoodyearBrand offers peace of mind, backed up by quality service to match and the RAM Teamremains committed to providing the levels ofquality and service that have always set us apartfrom our competitors. We believe it is our dutyto provide a solution rather than simply to supply a product.

RAM is the automotive division of VeyanceTechnologies Africa, a specialist company thatmanufactures and sources quality GoodyearEngineered Products. For more information onRAM products visit www.ramauto.co.za

Federal-Mogul Extends Its Range of PowderMetallurgy Materials For Bushings and Guides Federal-Mogul Corporation is extending its materials range for bushings and guides designed specifically for use

at the very high temperatures increasingly found in turbochargers and Exhaust Gas Recirculation (EGR) components. Turbocharging is already almost

universal on diesel engines and will become even more common in gasoline applications as engineers improve fuel consumption and emissions by

designing downsized engines that have higher specific outputs. The new materials will allow Federal-Mogul to produce components that meet the very

tough durability targets imposed by the increasingly severe conditions seen in this new generation of downsized, low CO2 engines. To achieve enhanced

performance characteristics required by its customers, Federal-Mogul is using Powder Metallurgy (PM) techniques in which components are

manufactured by sintering a blend of powdered metals. The many advantages of PM pressing and sintering include reduced machining and an ability

to precisely tailor the composition of the material to match the performance characteristics required for the component. “Federal-Mogul is among the

first to develop a range of materials specifically for the requirements of the fast-growing automotive turbocharger and high-performance EGR markets,”

said Rainer Jueckstock, Federal-Mogul senior vice president of Powertrain Energy.

LAUNCH OF NEW ELECTRONIC CATALOGUE

Page 19: Automotive Business Review June 2010

T h e F i n k

17J u n e 2 0 1 0

Win a Midas VoucherThe FINK is looking for letters to the Editor. The more the mer-

rier, and the more thought provoking of these shall find their way

into ABR. The best letter will win a Midas voucher to the value

of R500. So get out those pens and write to:

The FinkP O Box 102Wendywood

2144Or Fax 0866 579 289

Or email:[email protected] judges decision, no matter how one eyed they are,

will be final.

Letters to the Editor

The Schaeffler Group is among the top fiveleaders in innovation

With 1,146 registered patents, the Schaeffler Group ranks fifth in

the German Patent and Trademark Office’s list of patent applicants

that is published annually. In this list, 747 patents are for new prod-

ucts from Schaeffler Technologies GmbH & Co. KG with its

brands INA and FAG and 399 patents are from the Schaeffler

brand LuK. You will find more information at: www.dpma.de. This

means that among the new applications for patents by the

Schaeffler Group, important developments such as the world’s first

electrohydraulic valve control system UniAir (developed and

manufactured by INA), FAG’s pioneering wheel bearing concept

with face spline or LuK’s dry double clutch are now protected by

patents. Important components for the hybridisation of motor

vehicles as well as the dual mass flywheel with centrifugal pendu-

lum-type absorber, which is a further product innovation for the

drive train vibration damper in production for 25 years, are among

the patents included in the time period relevant for the publication.

All these elements play a role in reducing fuel consumption and

CO2 emissions.

Page 20: Automotive Business Review June 2010

C o v e r F e a t u r e

J u n e 2 0 1 018

A Shining Halo – South Africa’s Very

Own Universal Performance CaliperSouth Africans are well known for their inventive capabilities, with inventions asdiverse as the Kreepy Krauly swimming pool cleaner and the dolos (a cleverlydesigned concrete block which protects harbour walls). It therefore comes as nosurprise to learn that a revolutionary automotive product has been slowly incuba-ting in the industrial heartland of Boksburg. A product which will be a boon to theyoung guns who have souped up their hot hatches, but have now found that theirstandard brakes are no longer up to the challenge. This product is a universal performance caliper, developed specifically for smaller cars and bakkies.

This invention has echoes of the Oscar winning Forrest

Gump movie, mimicking the theme of a small boy

breaking the bonds of conformity and convention, and

beating the odds to become a national hero and mov-

ing the nation. The difference is that whereas Forrest Gump got

rid of his calipers to reach his potential, this new invention is a

caliper which will allow boy races to reach their potential. It will

not be “Run, Forrest, Run!” - rather “Drive, Forrest, Drive!” - and

for those fitting the caliper, life will indeed be a box of chocolates,

with the guarantee that each chocolate will have caramel and nuts.

The seeds of the Universal

Performance Caliper, which

Alfred Teves Brake Systems

(Pty) Ltd (Ate) plans to

market under the saintly

name “Halo”, were sown

during November/ Decem-

ber 2008 in the research and development facilities of Ate. Two

University of Witwatersrand Bachelor of Science students, major-

ing in Mechanical Engineering, were doing their year end vaca-

tion project in practical design. Andrew Becker and Jamie Bentley

had chosen to design a universal caliper for the VW Citi Golf and

the Opel Corsa, and their university moderator had tasked them

with not only designing this caliper as a theoretical exercise, but

to approach the design as realistically as possible. Thus, the end

result would not only have to pass a hypothetical standard, but it

would also need to pass muster in the real world. This is where the

facilities at Ate and the expertise of its engineers became invalu-

able. Gus van der Leij, Manager: Product Engineering at Ate, says

that “Ate’s upgraded CAD facilities helped significantly in the

design capabilities stage, and we could also assist the students in

producing technical drawings for the machine shop”. Gus and his

team are also satisfied that Andrew and Jamie gained much dur-

ing their sojourn at Ate. “We believe that they learnt a lot about

how to apply theory in practice. We also managed to pass on our

knowledge and experience on materials, manufacturing and

machining capabilities, which budding engineers normally give

short thrift to in their youthful exuberance. This reduced the time

frame significantly, and allowed for the project to be completed in

an acceptable period.” The result was an excellent prototype

model which got the students high grades for their project.

The prototype model was far from the finished article, but Ate did

see an opportunity, so it set about perfecting the Halo, and

preparing it for the market. Ate set high standards for the Halo –

it was enhanced to meet the highest OE specs, and it had to pass

the most stringent tests, including durability tests, burst pressure

tests, seal tests, etc., and only once these tests had been passed

with flying colours, was Ate satisfied. The market potential is big,

as many motorists in South Africa are modifying their Citi Golfs,

Corsas, Tazz’s, Nissan 1400 bakkies, and the like. The modifica-

tions are all good and well, but the increased horsepower and

improved handling characteristics that come with these modifica-

tions require better braking performance. On the open road safe-

ty becomes an issue, and when these pocket rockets are used on

the racetrack, if you cannot slow down sufficiently into the cor-

ners, your speed down the straight becomes a moot point.

Thus the new Halo caliper can serve many purposes.

“Drive,

Forrest,

Drive!”

Wits University students Andrew Becker

and Jamie Bentley

Page 21: Automotive Business Review June 2010

19

The Halo will be available in three colours (gold, blue and black),

and may be purchased as a single unit for those with a mechani-

cal bent, or as a bolt-on kit, with full and detailed fitment instruc-

tions, plus brackets, bolts and hoses to accommodate a wide range

of non-standard rims. Ate is making sure that the Halo customer

gets the real deal, with a locally made brake pad freely available.

This brake pad is uniquely designed and developed for use with

the Halo, and it has a braking compound specifically formulated

for high performance. The Ate Premium Disc, which is drilled

and grooved, and compatible with the Ate pads, will also be avail-

able. The spares for the caliper are also locally made, so availa-

bility and price will never be an issue.

The Halo for Citi Golfs and Corsas will be available from July

2010, and this will progress to a wider range in the coming

months, with the eventual aim to cover the majority of small vehi-

cles. Even bigger cars may be accommodated in the not too dis-

tant future. The true uniqueness of the Halo is that it is aimed at

the lower end of the performance market and is affordable. It

allows for the general motorist, the boy racer, the classic car afi-

cionado, and many more, to upgrade his/her vehicle’s braking

capability without breaking the bank. Norman Bull, Aftermarket

Director at Ate, says that “the Halo will contribute significantly to

road safety, and will also allow car proud motorists to upgrade

their vehicles from both a safety and cosmetic angle. The colour

options will also allow for pimping the ride. We look forward to

seeing many small car owners accentuating their mags with a Halo

caliper”. Norman has also revealed that there will be export

opportunities for the Halo. Enquiries from the UK and France are

already coming in.

J u n e 2 0 1 0

The Ate guys have made a good fist of the project, and with the

fixed caliper Halo, the future looks bright. Left to right, Mike

Basiak, OE and AM Product Development Manager; Norman

Bull, Aftermarket Director; and Gus van der Leij, Manager:

Product Engineering

Page 22: Automotive Business Review June 2010

J u n e 2 0 1 020

Alfred Teves Brake Systems (Pty) Ltd became a subsidiary

of Metindustrial (Proprietary) Limited in July 2009,

and is thus part of the dynamic Metair Group. Based in

Boksburg since 1968, Alfred Teves Brake Systems has a

rich history and heritage of innovation and technical excellence.

Originally a subsidiary of Alfred Teves Germany, the South

African operation moved to its current manufacturing facility in

1977, with its first contract for brake calipers and brake hose

acquired from Mercedes-Benz, and later diversifying to master

cylinders and boosters for Ford South Africa. Today Ate brake sys-

tems are original equipment on BMW, Ford, Mercedes-Benz,

Opel, Toyota and Volkswagen. Internationally, Alfred Teves is a

global giant, with all major motor manufacturers utilising their

brake product. Established in Germany in 1906 with the express

purpose of developing brake systems for automobiles, Ate has

acquired a series of development milestones and automotive

achievements in its storied history. The first Ate Lockheed brake

system was fitted to an Adler Standard in 1926, and within 50

years Ate brake systems had been fitted to over 45 million vehicles

worldwide. The South African operation leveraged off this

strength, garnering contracts and awards from both the original

equipment manufacturers and aftermarket customers. Alfred

Teves Brake Systems (Pty) Ltd gained its independence in 2005

when it concluded a management buyout, and four years later it

became part of the Metair Group, via its acquisition by

Metindustrial.

Alfred Teves Brake Systems’ manufacturing capability includes:

• Machining; including turning, milling, broaching and grind-

ing

• Plating, including zinc and soft chrome plating, and salt spray

corrosion testing

• A friction plant, covering brake pad manufacture and brake

shoe bonding

• Metrology, utilising both conventional and computerised 3 D

measuring

Ate has a strong focus on the automotive aftermarket and with its

technical expertise in-house, it has developed specific formula-

tions for specific applications, often exceeding OEM specifica-

tions, for a wide range of passenger and commercial vehicles, from

the Citi Golf to the Mercedes-Benz Actros. Its local development

for the OEMs includes the complete braking system for the VW

Citi Golf and the Toyota Hi-Ace. Ate covers a wide range of prod-

uct, including fist and fixed calipers, boosters, brake drums, brake

hoses, wheel cylinders, master cylinders, brake pads, brake discs

and brake shoes. Important quality accreditations received by Ate

are the Din En ISO 14001 (Environmental Management

Systems) and the ISO-TS 16949:2002 (Quality Management

Systems), which encompasses a wide range of ancillary quality

awards.

Ate’s Motorsport InitiativesAte is actively involved in providing braking solutions for the

motorsport fraternity. If you see an Ate sticker on a racing vehicle,

you can be assured that the vehicle is fitted with Ate brakes.

Examples of Ate’s success are:

History of Alfred Teves Brake Systems (Pty) Ltd

Off Road Champion Giel Nel

Some of the many awards Ate has received over the years

Formula Ford Champion Robbie Wolk

The SouthAfrican designed

LotusMillennium

Seven Replica hasseriously good

braking, and isattractive to boot,

thanks to Ate

C ov e r F e a t u r e

Page 23: Automotive Business Review June 2010
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J u n e 2 0 1 022

GORDON ODGERS

WHEN DID THE MOTOR BUSI-NESS ALL START FOR YOU?

Basically 1990, when I joined the automo-tive component and manufacturing side ofthe Dorbyl Group. After Ieaving school Iwent to Wits for my B.Com and then myCA, serving my articles with PriceWaterhouse. Later on I did my business-man’s MBA at UCLA in the USA. Workwise I was with Price Waterhouse, thenPremier Milling as Accountant at HeadOffice before joining the mining people,Baker Hughes, as Financial Director.

It was there that I moved from Accountingto Marketing & Sales both SA andInternational. After that I left the MiningIndustry and moved to the Dorbyl Groupat TOSA (Tube Division) which wasmerged with the Barlow Tube Division inorder to remain sustainable. I was retainedin Dorbyl and moved to the AutomotiveComponent Manufacturing Division forthree years. At this time Dorbyl acquired a34% stake in Midas and I was promoted toCEO in 1997.

This is when I took over the running ofMidas with a big job to get it right. Theywere deep in the red and owed the banks ahuge amount of money coupled withunhappy franchisees and suppliers.

DID YOU HAVE A GOOD TEAMTO TAKE ON THIS MASSIVE JOB?

We have had a great team all these years.They have stayed with me for a long time.We set about setting the company straightand expanding the business.

MIDAS WASN’T REALLY DOR-BYL’S TYPE OF BUSINESS.

No. So in 2002 we did a management buy-out and from then on it was all progress.

HOW MANY BRANCHES HAVEYOU GOT NOW?

11 branches in all the main cities and 400Midas franchise dealers throughout SouthAfrica and the neighbouring states.

TURNOVER UP?

We are around R3bn at present with greatcustomer loyalty.

FUTURE LOOKS BRIGHT?

Yes. Our business of selling parts and com-ponents and accessories only starts to lookup in the main after vehicles have been onthe road for four years. So the currentrecession hasn’t hit us as much as someother businesses in the country as we lag the boom of new car sales from 2004 –2006.

AND YOUR SHAREHOLDINGNOW?

We have had a unique Shareholding thathas included management, empowermentand our key customers. We did under-stand, however, that to move to the nextlevel would require a value-adding, hands-off Big Brother. Imperial Holdings andtheir CEO, Hubert Brody, approached metowards the end of 2008. We did a dealover a 6 a.m. breakfast at my house, culmi-nating in Imperial taking a majority stakein December 2009. We have been able toretain our unique Shareholding which isalso seen by Imperial as key.

WHAT HAPPENS TO YOU AT 57YEARS?

The deal was that I must stay on board andthen hand over in time to our COO,Warren Espinoza, who has been groomed

for the job, and our first class team in2011. I have total faith in my colleagues.

LOTS OF OPPORTUNITIES WITHIMPERIAL?

As the biggest motor group in theSouthern Hemisphere, there is a lot of syn-ergy and possibilities to do business withinthe group. Always, I must add – and this istheir policy – if your product pricing andback-up is up to the job.

YOU CAN’T RETIRE AT 57?

My forte is acquiring and setting up busi-nesses and making them operate profitablywith happy people who enjoy their work.I like to strategise and organise. Imperialhas lots of opportunities and I like theirgrowth approach of doing that and makingit happen.

WHAT SCHOOL DID YOU GO TO?

Highlands North.

SPORTS

I loved all sports. Tennis, hockey, rugby,golf and soccer. I actually played forGermiston Callies Colts when I was atschool. My father, who was an engineer,was the captain at Callies when they playedin the NFL – great days.

Golf I love and have played all over theworld. Ireland is next on my list with 12 ofmy buddies. We have been playing as agroup for years. I was also the President ofKensington Golf Club in Johannesburg.

CARS?

Love them. I have got a couple of Porsches.I also love Harleys as well and am a 50%share-holder in Harley Davidson inRivonia.

MARRIED?

Between us we have five children, four ofwhom are married all around the world.It’s just how it is in South Africa at themoment.

P e r s o n a l p r o f i l e

by Roger McCleery

If you think motor spares in South Africa or after-market parts and accessories neededby motorists, you think Midas. They have branches and Franchisees everywhere.

Another South African motor man who has been in business all his life and has been driving and expanding Midas for the last twelve years, is their enthusiastic and hands-onCEO, Gordon Odgers.

Q & ACEO OF MIDAS

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

B a k k i e B e a t

J u n e 2 0 1 0

The theory was simple; GM’s

bakkies would demolish all

the world time and distance

records for three-litre diesel

pickups up to 72 hours and 10000 km

set by Toyota’s Hilux pickups in 2003,

and establish inaugural records in the

new 2,5l and 1,6-2l diesel pickup

classes. The reality was a little more

complex – just pitching up with a

couple of bakkies and a stopwatch

wouldn’t work. There were more

than fifty drivers to be housed, fed

and transported to and from the

track throughout the three days.

There were 60 new tyres to be

acquired and stockpiled, and 12000

litres of diesel to be on hand for the

vehicles, with a couple of hundred

more litres required for the genera-

tors. There were medics to be

recruited and looked after, and

Motorsport South Africa had to be

on site to monitor proceedings and

certify everything as above board.

A team of technicians needed to

refuel each of the seven bakkies every

150 minutes for three days and nights,

check the tyres and replace them if

necessary, check engine oil and the

general state of affairs under the

bonnet, and hasten the new driver

into the cab and send him on his

way as soon as the car was ready to

go, usually just over a minute after

the previous driver pulled into the

pits. There were toilets to be

cleaned, stiff muscles to be mas-

saged, and 4000 meals to be

cooked over the five days

the General Motors circus

was in town at Gerotek.

The vehicles were essentially

dead standard. “The only

modifications allowed before-

hand were that we could change wheel alignment to suit the oval

track with its banking, and we could modify the fuel tank

breathers to allow faster refuelling,” says General Motors vehicle

engineering manager Rob Deas. Keeping a load of spare parts on

hand was not as much of an issue as you would think. “We could

only replace things considered as consumables,” says Robs. “Oil,

tyres, filters and things like that. Other parts, things like radiators,

could only be replaced if they were damaged in an accident.

Because our bakkies service intervals are 15,000 km we didn’t

need to change oil and filters during the event, and the vehicles

used no oil at all so we didn’t have to replace any.”

The start was marked by a tremendous opening of the heavens

just as the dancing girls got really warmed up, and the gods

marked the end of the 72 hour marathon by unleashing an

impressive salvo of hail onto the celebrating drivers, engineers and

guests 20 minutes after the finish. Neither of these climatic inter-

ventions affected the results, though. All in all, between the main

72 hour attempt in April and the 24 hour test run (monitored by

MSA) a few months earlier, Isuzu took 60 World Records –

15 each in the 2 litre, 2,5 litre and 3 litre diesel pickup classes,

plus the overall record previously held by the petrol Toyota. The

bakkies performed faultlessly, with the only problem being an

airlock that delayed refuelling by a few seconds in the second of

the 3 litre vehicles, and a worn shock absorber in the same car that

made its presence felt towards the end of the event. Average speeds

over the 72 Hours were astounding, considering that these are

diesel bakkies. The KB300 averaged 170 km/h, while the less

powerful KB250 managed to 159,661 km/g for the three days –

that was just half a km/h slower then the old absolute record set

by the Toyota petrol pickup. The joker in the pack, though was

the Chevrolet (nee Opel) Corsa 1,7DTi that maintained an aver-

age speed of 154,12 km/h for 72 hours, including pitstops. The

gutsy little pickup set an inaugural class record, and actually broke

Toyota’s old three-litre diesel distance record by 72 km with an

average speed that was 1 km/h faster.

General Motors

South Africa took

the bull by the horns

in April and went

on a World Record

breaking spree with

their Isuzu and

Chevrolet diesel

bakkies.

GAVIN FOSTER

was at Gerotek for

the Isuzu 72 Hour

Challenge.

Isuzu 72 Hour Challengeby Gavin Foster

24

Page 27: Automotive Business Review June 2010
Page 28: Automotive Business Review June 2010

A u t o T o p i c a l

J u n e 2 0 1 0

After putting in a rather surprising

gain in its contribution to the total

value added by the South African

Economy during 2008, mainly on

the back of a sharply improving international

trade performance that year, the South

African motor sector’s contribution to the

country’s total gross domestic product shrank

from a level of 7.3% in 2008 (the second

highest annual contribution on record) to a

level of 5.9% in 2009. This level was back to

those contributed by the sector a decade ear-

lier, but there is some intuitive comfort in the

decline when one considers that it occurred in

the third successive year of sharply declining domestic sales

volumes of original equipment, and in a global automotive envi-

ronment that was, in effect buying its way out of trouble with host

government’s money. The total value added within an economy is

referred to as its gross domestic product, or GDP. Value added

and turnover by a sector or industry are not quite the same thing,

with value added invariable being smaller than the quantum for

turnover. This is because a sector will usually buy inputs from

other sectors, and those other sectors will rightfully claim the value

that they have added in processing the products concerned. The

mining sector extracts the iron ore and the steel sector processes it

before selling it to the automotive sector to press sections or cast

shapes, which is where the motor sector begins to add value.

Likewise, international trade also has to be brought into account

in considering the value added concept. While sales of imported

goods form part of turnover, they reduce the amount of domestic

value added contained within the value of the turnover. Exports

are not counted within domestic turnover, but certainly do form

part of the domestic value added by any sector producing such

exports, including the automotive sector.

The estimates of automotive sector value added are made annual-

ly by Econometrix during April each year, when all the data

components for the previous year become available. Data is assem-

bled from Statistics SA publications on Retail Sales by the motor

sector, SA Reserve Bank Gross Domestic Product statistics, and

ongoing compilations of automotive international trade data

assembled by Dr. Norman Lamprecht, nowadays at NAAMSA,

but who used to manage such statistics at DTI in a previous pro-

fessional incarnation. During 2009, the decline in the sector’s

GDP contribution was split across its manufacturing activities,

which lost 1.0 percentage points, vehicle and component

importers which lost 0.16 percentage points, and retailers and

after market participants which lost 0.23 percentage points of con-

tribution to the country’s total GDP. The decline of secondary

sector automotive production around the world, of which South

Africa has had an increase in share since the advent of the MIDP

in 1995, can easily be seen in the substantial loss of GDP contri-

bution of the manufacturing side of the domestic automotive

sector during 2009,

gains by this side

of the domestic auto-

motive sector having

been principally res-

ponsible for the

growth in the overall

automotive sector’s

GDP contribution

during 2008.

By mid-2010 reco-

veries in retail sales

activities and vehicle

exports were already

hinting that the recov-

ery in the motor sec-

tor’s contribution to

the country’s GDP

under way and the

GDP share could be expected to return to levels closer to the

preceding decade’s average of 6.7%. The recovery in the GDP

contributions by the automotive sector would not be restricted to

parts of the sector concentrating on original equipment sales,

but would include the value added portions of used vehicle sales,

aftermarket sales and sales of accessories.

by Tony Twine

Motor Sector GDPcontribution declines in 2009

26

Page 29: Automotive Business Review June 2010
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J u n e 2 0 1 028

Hyundai-Kia Official Vehicle HandoverCeremony Kick Starts the 2010 FIFA WorldCup Transport Capability With the 2010 FIFA World Cup almost upon us, the most important piece of thetransport jigsaw puzzle was put in place on the afternoon of the 20th May 2010at Soccer City in Johannesburg, with the official vehicle handover ceremony ofthe stunning Hyundai and Kia vehicle fleets. The Hyundai and Kia vehicles willform the backbone of the transport requirements for the teams, officials, dele-gates and official VIP visitors, thus ensuring the smooth and efficient mobility ofthese key people. “Today’s important vehicle handover sees the final logisticalplans for 2010 being put into place,” said Alan Ross, CEO of Hyundai AutomotiveSouth Africa, Hyundai’s local distributor.

Speeches were made by FIFA Secretary General, Jerôme

Vàlcke; FIFA LOC CEO, Dr. Danny Jordaan; Senior

Vice-President of Hyundai Motor Company, Sean Kim;

CEO of Hyundai South Africa, Alan Ross; Director of the

Overseas Marketing Group for Kia Motors Corporation, Soon-

Nam Lee, and CEO of Kia Motors South Africa, Ray Levin.

Guests of honour were the Ambassador of the Republic of Korea,

Mr. Hansoo Kim, and his wife. Hyundai Motor handed over 609

passenger cars/vans and 32 Hyundai Universe Express Noble

luxury coaches, whilst the Kia fleet comprises 207 vehicles,

including the all new Sorento SUV, the Soul urban crossover

vehicle and the spacious Carnival MPV, plus Kia liveried buses.

Back up support for these vehicles will be huge. Hyundai will

operate a 24 hour emergency office and 80 Hyundai mechanical

staff will be on standby throughout the games at the ten stadia in

the nine locations. Kia has developed a Technical Support

Campaign to support their fleet of VIK vehicles, the support

coming in the form of a 24 hour roadside assistance programme

utilising a toll free number and a team of dedicated technicians

per host city venue.

Established in 1967, Hyundai Motor Company acquired the

older Kia Motors Corporation along the way, and today the

Hyundai-Kia Automotive Group is the world’s fourth largest

automaker, and is the only mass car producer that managed to

weather the recent economic crisis, and to actually grow unit sales

in 2009. This position of strength has been built on the five

pillars of quality, speed, aggression, innovation and investment.

Proud as punch: Alan Ross, CEO of Hyundai SouthAfrica; and Manny Da Canha, CEO of Associated MotorHoldings and Chairman of Hyundai South Africa.

U p d a t e

Page 31: Automotive Business Review June 2010

A good example of the Hyundai-Kia Automotive Group approach

is its football sponsorship. Hyundai sees football sponsorship as a

core element of its marketing strategy and as a key way of com-

municating and connecting emotionally with football fans.

Through its football sponsorship, Hyundai aims to position itself

as a dynamic automotive brand. At the handover ceremony, Mr.

Sean S.H. Kim, Senior Vice President of Hyundai Motor’s

Marketing Division, said “We are proud to partner with FIFA

during this historic football event. The opportunity to provide

VIP transport at this momentous tournament gives us the high

visibility we need in Africa and the world to raise awareness of our

brand and products.” Soon-Nam Lee, Director of the Overseas

Marketing Group, Kia Motors Corporation, added “Kia Motors

is delighted to play an important part in the upcoming World

Cup in South Africa. Being involved actively in football market-

ing is an integral part of our vision to become a formidable play-

er on the global automotive stage. We have made a strategic effort

to boost our young and energetic brand identity by ramping up

our presence in major sports sponsorships and to elevate Kia’s

global brand awareness to the next level.” Kia differentiates itself

from Hyundai by promoting Kia as a maker of quality vehicles for

the young-at-heart.

29

Be There With HyundaiAs one of the six FIFA top partners, Hyundai Motor Company announced national team slogans on May 17th, selected through online

voting on the FIFA.com website from April 26 to May 10 – these slogans will be part of the decoration of the 32 national team buses.

32 Winning Team Slogans of ‘Be There with Hyundai’ Programme

J u n e 2 0 1 0

Country Slogan in EnglishAlgeria Star and crescent with one goal: Victory!Argentina Last stop: GloryAustralia Dare to Dream, Advance AustraliaBrazil The whole of Brazil is in here!Cameroon The Indomitable Lions are backChile Red is the blood of my heart, Chile will be ChampionCote D Ivoire Elephants, let's fight for victory!Denmark All you need is a Danish team and a dreamEngland Playing with Pride and Glory France All together for a new dream in blueGermany On the road to get the Cup!Ghana The Hope of AfricaGreece Greece is everywhere!Honduras One Country, One passion, 5 Stars in the heartItaly Italian Azzurro on African skyJapan The Samurai spirit never dies! Victory for Japan!Korea DRP 1966 again! Victory for DPR of Korea!Mexico It is time for a new champion!Netherlands Don't fear the big five, fear the Orange elevenNew Zealand Kickin’ it Kiwi StyleNigeria Super Eagles super fan united we standParaguay The Guarani lion roars in South Africa!Portugal One dream, one purpose… Portugal victorious!Republic of Korea The Shouts of Reds, United Republic of KoreaSerbia Play with the heart, lead with a smile!Slovakia Shake the green field: Go Slovakia!Slovenia With eleven brave hearts to the endSouth Africa One nation, proudly united under one rainbowSpain Hope is my road, victory my destinySwitzerland C’mon Switzerland!Uruguay The sun shines upon us. Go Uruguay!USA Life, Liberty, and the Pursuit of Victory!

U p d a t e

Page 32: Automotive Business Review June 2010

This is the twentieth edition of Frankly Speaking, and I would like to use theopportunity to revisit the subject that I discussed in the very first columnof this series. I must admit to having been thoroughly fascinated by thedevelopment of Renault’s Logan theme, and this is mainly because I respect

business icons who are prepared to step “out of the box” and pioneer new directions. Alltoo often, motor manufacturers just keep on dishing up “more of the same”, and limitingtheir so-called innovations to some fairly predictable cross-breed combinations of theirestablished designs. In recent years, however, we have seen two good examples of diver-gent thinking in the form of Tata’s Nano, and the aforementioned Logan. The logic behindthe Nano was probably the more radical, reflecting intent to mobilise a whole new category of vehicle buyers. It is still far too early to gauge the success, or otherwise,of that project, even though India is probably the most logical place on Earth to develop such a concept, so we will leave our follow-up assessment of Ratan Tata’s dreamto a later date, and stick with Logan for the time being.

J u n e 2 0 1 030

Just to recap, Logan first emerged into the public gaze,

as Renault’s project X90, in 2004. Like the Nano, it was

reputedly the brainchild of a CEO, in this case the soon-to-

retire president of Renault, Louis Schweitzer. According to the

official “story”, he reasoned that the best way to provide emerging

markets with affordable cars was not to go on building obsolete

designs indefinitely, but rather to design value and acceptable

quality into something new and unique, using the leverage with-

in his group to meet a target price initially set at € 5000. As was

the case with the Nano, the pricing target was subsequently found

to be slightly ambitious, but it was an important reference point

for Renault’s engineers, who were set the task of converting

Monsieur Schweitzer’s mental picture into sheet metal.

Subsequently, higher-specification upgraded models have also

been added to the catalogue, priced considerably higher than the

initial target.

The initial result was a fairly good-looking, and surprisingly large,

three-box, four-door sedan, based on Renault’s Clio/Modus “B”

Platform. Closer examination revealed a modern design, based on

digital techniques, which included unibody construction, trans-

verse front-mounted engine and 5-speed transaxle, front wheel-

drive, McPherson strut front, and coil sprung torsion beam rear

suspensions, and front-wheel disc brakes. Cost savings were

achieved through the absence of power steering, anti-lock brakes,

electric window lifts, comprehensive soundproofing, complicated

electronic driver aids and air conditioning from the basic ‘pack-

age”, and the use of as many carry-over components as possible

from its more sophisticated group cousins.

The Logan family of products is now being marketed under sev-

eral different nameplates in various parts of the world. In Europe,

where the Renault marque has a vast footprint, the Dacia badge,

reflecting the main Romanian production and development loca-

tion, is used. This also discourages perceptions that these vehicles

are less pricey alternatives to Renault’s mainstream products.

Overseas, local marketing strategies dictate the nameplate used,

which adds Renault, Mahindra Renault, and Nissan to the list of

possibilities. This multiple branding strategy brings expectations

of global quality standards to the range, to its potential benefit.

In accordance with the overall strategy for the carline, hatchback,

pickup, van, station wagon and Sports Utility spinoffs from the

basic design have emerged, with the van, wagon and pick-up

models using the longer-wheelbase B0 version of the platform.

Production has been established in Romania, India, Russia, South

Africa, Brazil, Iran, Colombia and Morocco, and, in addition to

the original 1,4 and 1,6-litre 4-cylinder petrol engines, Logan

derivatives are also now powered by a 1,5-litre diesel and, in some

markets, by LPG-fuelled engines.

Another interesting development is the recent launch of the Dacia

Duster compact off-roader variant. This is to be made available in

both 4x2 and 4x4 versions, weighing in at 1160 kg and 1250 kg

respectively. The front suspension uses an uprated version of the

standard Logan layout, while the rear has a flexible H-beam (on

4x2 variants) with multi-arm location. Power options include a

1,6-litre, 110 hp petrol engine, or a 1,5-litre diesel with outputs

of 85 or 110 hp, driving through a six-speed manual transmission

with a short first ratio, eliminating the need for a transfer gearbox.

The 4x4 version employs three modes, “Auto” when the front/rear

torque split is controlled automatically, “Lock” when the all-

wheel-drive is electronically locked in, and “2WD” when the

front wheels only are driven

Has Logan been a success? Total sales volumes of 1,8 million units

since 2004 are not overly spectacular, but it must be remembered

that these have been mostly incremental sales, and as far as can be

judged, have not just cut the established Renault/Nissan market-

ing cake into smaller slices. One interesting case in point has been

the use of the Logan long-wheelbase platform in South Africa to

create the successor to Nissan’s almost legendary and extremely

long-lived 1400 pickup. Despite some initial outcries in public

fora, the product has been well received, proving that the option

of indefinite life extension for ancient products is not viable. Even

though the Renault/Nissan Alliance has now chosen to enter into

a product and technology-sharing relationship with Daimler AG,

it may yet find that the benefits of “alternative” product

directions, typified by the Logan family, are the most effective

means of advancing up the global manufacturer rankings.

Logan’s RunF r a n k l y S p e a k i n g

by Frank Beeton

Page 33: Automotive Business Review June 2010
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L i f e G o e s O n

J u n e 2 0 1 032

Two recent events, coincidentally on the same day, 4th May 2010, confirmed that themotor industry is on the mend, both globally and locally. The first event was Ford’squarterly media breakfast, and the second event was the launch of the Hyundai ix35.The presentations of the respective local CEO’s, Jeffery Nemeth and Alan Ross, madeone realise that times may still be tough and the environment extremely competitive, butthe automotive industry is truly an exciting industry to be in.

Both gentlemen were batting for

their respective teams, and both

had their corporate hats firmly

on their heads, but the message

was clear and simple – if you have your act

together, even in today’s’ tough climate,

you will do well. Ford’s 2010 first quarter

results showed profitability in all their des-

ignated regions, with North America

emerging as the shining star. The ONE

FORD; One team, One Plan, One Goal

strategy is indeed proving to be a cash and

profits turbo machine. Globally,

Ford achieved a pre-tax profit of US$2

billion, a US$4 billion turnaround

against the first quarter of 2009.

The Financial Services division had an

amazing quarter, assisted by improving

residual values which allowed for

improved trading profits and a reduction

in bad debts provisions. The interest bur-

den of US$492 billion is still enough to

make an accountant’s eyes water, but with

a US$25 billion war chest, Ford now has

the ability to make investments across the

globe, and South Africa has been part of

this largesse, with the recent announce-

ment of a R3 billion investment at

Struandale and Silverton. With Ford,

Lincoln and Mercury cars now achieving

the highest customer satisfaction rates in

America, there is indeed a Ford in many a

motorist’s future, as confirmed by a US

market share of 16,6%, on the back of

Fusion, F150, Taurus and Focus sales.

Ford is also rapidly bringing down the

ratio of SUV and trucks to passenger vehi-

cles. In 2005 it was 70/30, today it is

60/40, and the goal is 50/50. Who says

you can’t make money on small cars?

Locally, Ford is not doing as well as its

counterparts in Europe and America, but

that is more through conservative fore-

casting than market sentiment. The

worldwide demand for the Fiesta is also

not helping the local cause, but Jacques

Brent, V.P. for Sales and Marketing, says

that the second quarter should be better

with improved supply.

Hyundai is an even bigger success story,

having been the only mass producer to

beat the odds in 2009, and starting 2010

at a frenetic pace. Alan Ross told the

journos at the ix35 launch that the success

of Hyundai (which incidentally means

modern in Korean) is based on the five

pillars of quality, speed, aggression, inno-

vation and investment. Quite a contrast to

the valued Korean concept of KIBUN,

which roughly translates into inner peace,

soul, or good mood. But somehow

Hyundai manages to pull off this contra-

diction, because gone are the days of a

“cheap and nasty” brand that Hyundai

candidly took into America during its first

foray into a world dominated by Detroit.

“Now it is on the verge of becoming aspi-

rational” is how Alex Taylor III describes

the brand in a recent Fortune magazine

cover feature. The seeds for this remark-

able change of image were planted in

2000 when Chung Mong-Koo took over

as Chairman of Hyundai, and he decreed

that the yin of volume and the yang of

quality would be inverted to the yin of

quality and the yang of volume. Thus

quality became a cross-functional respon-

sibility of immense importance, and each

and every Hyundai factory across the

globe is now literally monitored every sec-

ond of the day from a vast IT kingdom on

the 22nd floor of Hyundai’s headquarters

in Seoul. It may sound like Big Brother,

but consider this – in 2001 Hyundai was

rated 32nd out of 37 brands in the J.D.

Power Quality Ratings in America. Today

it rates 4th, and has the highest rating of

all the mass market brands. Hyundai also

ranks 4th globally in the big league of

automotive manufacturers, and it is the

fastest growing automaker by far. It uses

its home market as its springboard, where

it enjoys a frightening 80% market share.

In 2009, Hyundai produced 5,2 million

motor vehicles, and its target for 2012 is

6,5 million units. With an R&D invest-

ment of US$9,55 billion in 2009, and

most probably even more in

succeeding years, Hyundai will change its

entire product line over the next four

years. As Alan Ross says, “impossible

targets are the way they do business”.

Thus the latest buzzword is GQ 3-3-5-5,

which is to be number 3 on the JD Power

Actual Quality ratings in three years time,

and fifth on the J.D. Power Perceived

Quality rating in five years time. In South

Africa, it is all hands to the pump, as the

target of 10% market share is relentlessly

pursued, on the back of a huge investment

in advertising around the 2010 FIFA

World Cup, which is “creating unprece-

dented awareness of the Hyundai brand in

South Africa”.

by Austin Gamble

Never the Twain Shall Meet?

Jeffery Nemeth

Alan Ross

Page 35: Automotive Business Review June 2010

t h e B u z z

DRIVING TIPS WHILST IN SOUTH AFRICAAvis is pleased to be of service to all self drive visitors to South Africa

and have listed a few helpful driving tips to take note of before getting

behind the wheel.

• Consult a map or hire a GPS device before you start driving

• Familiarise yourself with your vehicle (indicators, windscreen

wipers etc) before you get going

• Always carry a valid driver’s licence when you are driving

• Always drive on the left hand side of the road.

• Always wear your seatbelt

• Never talk on a mobile phone without using a hands-free kit – In

South Africa, there are hefty traffic violation fines for this offence

• Drinking and driving is prohibited and strict fines or even impris-

onment will apply

• The permissible limit for alcohol consumption is about one glass

of wine for the average women and 1.5 glasses for the average or

large man

• Road signals will indicate the speed limit, but generally speed

limits are 120kph on the open road and 100kph on smaller roads

and between 60 km/h and 80 km/h in towns and residential areas

• Speeding is strictly enforced and fines are high

• Drivers take it in turns to move off at a four-way stop

• Drivers need to give way to pedestrians when turning left or right

at a green robot

• Also keep language nuances in mind – in South Africa we stop at

robots (traffic lights), we fill up our cars with petrol (gasoline), we

put luggage in our boots (trunks) and our engines are under our

cars’ bonnets (hoods).

• For personal safety, keep doors locked and windows up to avoid

criminal activity such as “smash and grabs” at traffic lights.

• Never leave valuables and luggage visible to pedestrians.

• Keep your car locked when you’re not using it and always lock

valuables in the boot, only if necessary.

• Do not stop at a tourist site if no-one else is present.

• When going out, especially at night, safety in numbers is always

advisable.

• Please note when refuelling, that Avis cars all take High Octane

Unleaded Petrol and only our Minibuses (people carriers) and 4x4

Double Cab vehicles use Diesel.

• In South Africa, fuel prices are regulated and Avis only charges the

normal pump price for fuel used. There is also NO refuelling fee

applied by Avis.

ECO DRIVING TIPSPlease consider the environment by reducing fuel consumption and

carbon emissions in the following ways:

• Change into the highest appropriate gear as quickly as you can.

Revving the engine in low gear consumes large amounts of fuel.

• Maintain a steady speed using the highest gear possible. It’s the

most fuel efficient way to drive.

• Driving at 120 kph uses up to 10% more fuel than driving at

100 kph.

• Don’t warm up the engine for too long prior to driving to save fuel

and produce less carbon emissions.

• Minimise use of air-conditioning to reduce fuel consumption.

Avis wishes you a safe and

pleasurable journey in our

beautiful country.

Page 36: Automotive Business Review June 2010

The butler nudged the Corgiout of the way with a deftflick of his spatted left foot,sending it sliding along theshiny marble floor. Heapproached the breakfast

table, which was littered with newspapersin which almost all the front page headlinesmentioned the country Greece, and solici-tously asked Prince Philip, Duke ofEdinburgh, “any more nectar, your Grace,ambrosia perhaps?”

The Prince grunted indeterminately, andaddressed his wife. “Bad show over inAthens, old thing,” he said, “isn’t there any-thing we can do to bail them out?”

“We have been wondering about that our-selves,” she replied, replacing the lid on themarmalade pot that bore the picture of asmall bear in a duffle coat and wellingtonboots. “But, with you coming from theplace, I don’t see how we can do it withoutappearing to be nepotistic.”

“Nepos is the Latin word for nephew orgrandson,” responded Philip, “not theGreek word.”

“Hoi poloi would scarcely know the differ-ence,” mused Elizabeth. “It says here in theTimes that George Papandreou, the primeminister, was firstly elected MP in 1981with PASOK, the party led by his father,Andreas, and has been included in numerous cabinets under either his fatheror Kostas Simitis, his uncle. The Greeksmight not have originated the word, butthey certainly seem to have got the hang of it.”

“And the Greek word for Greek is the sameas the Latin word for Greek, so I supposethat we had better not do anything toodirectly,” said Philip as he searched for anew line of approach.

“I was looking at the figures while we werestuck up at Balmoral under that ghastly ashcloud last week and we would have to liquidate the remainder of the real estate inManhattan to make even the smallest dentin the debt up which they have run,” shereplied, with the inflection suggesting thatthis might be a desirable point at which toend the discussion.

“Could we not perhaps get your govern-ment chappies to see what they could do?”suggested Philip, apparently unperturbed.“What about that fellow who was high upin the Chancellery, Gordon somebody-or-other?” “Alas,” remembered the Queen,“he is not in a position to help anybodyanymore!”

The Corgi scampered and skidded out of the way as Prince Andrew entered theBreakfast Room with a cheery “good morn-ing Mater, good morning Pater,” and tookup a seat at the breakfast table, unwrappinga napkin.

“Now there’s an idea!” said Philip excitedly.“I remember reading a magazine interviewwith that economist chappie, what was hisname, o, that’s it, Milton Friedman. Seeingyou like this,” he said, nodding towardsAndrew, “reminded me. He used to talkabout dropping money from a helicopter,and the benefit that it would have for thosewho managed to take it to the shops first. Can you still fly one of those navyhelicopters, Andrew?” “Yes, I can,”answered Andrew, “but why don’t you askyour grandson, William? He is qualified,you know?”

“And there we are, back at the definition ofnepos,” said the Queen. “Friedman alsowarned that people who arrived at theshops to spend the money that they hadpicked up later than the first wave of beneficiaries to reach the shops, would findlittle left by the first wave, and anything

that was left, would be more expensive thanbefore the money had landed.”

“Perhaps we could arrange for the old ladyof Threadneedle Street to gently persuadethe Iranians to lend the Greek governmentsome of those oil Dollars that the pressused to write about, we could offer to back-off on the nuclear proliferation debatejust a tad,” mumbled Philip, thinkingaloud rather than making a statement.

“Can you imagine the loan agreement?”asked the Queen, “it would look like thecollected laws of the Greeks and Persians,besides, it would make the Turks, whowould feel caught between two new allies,very uncomfortable indeed.”

Prince Andrew, slightly more attuned tointernational trade finance, asked, “Is therenothing that we could perhaps lend tothem, instead of giving it to them thatmight look a little better than a direct bail-out?”

Philips face brightened. “That’s it!” he saidenthusiastically to the butler. “Get me thecurator of the British Museum on the telephone line immediately!”

Elizabeth pondered for a moment, thenrose quickly to her feet. “No! I forbid it”she snapped.

“What is it?” said Andrew, mystified.“Returning the Elgin Marbles,” answeredthe Queen, “it simply will not do!”

“O, bugger!” sighed Prince Philip. “I hadbegun believing that we had only borrowedthem.”

• George Papandreou, the Greek primeminister, was firstly elected MP in 1981 withPASOK, the party led by his father, Andreas,and has been included in numerous cabinetsunder either his father or Kostas Simitis.

T o n y ’ s T a k e

J u n e 2 0 1 034

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

Breakfast at the Palace

Page 37: Automotive Business Review June 2010

t h e B u z z

J u n e 2 0 1 0

ON YOUR MARKS, GET SET, GO!The trumpeting sounds of the Vuvuzela filled the Tiger Wheel & Tyre auditorium at this year’s

Fitters’ Competition 2010. South Africa’s leading fitment specialists travelled to the Birchwood

Hotel in Johannesburg on Sunday 09 May to compete for the honour of being named the fastest

Tiger Wheel & Tyre. Fifteen teams were chosen from the 71Tiger Wheel & Tyre stores around the

country. As part of the fun, the finalists represented various countries across the globe, making for

a highly spirited and electric atmosphere with over 500 cheering supporters rooting for their

favourite stores. The task at hand was a challenging one: drive a specially designated car onto the

ramp, take off all four wheels, strip them, put new tyres on, balance all four of them and then put

them back on the vehicle – all this to be done in a record-breaking time of under five minutes.

Bridgestone Named 2009 Supplier of the Year by Boeing

The Bridgestone Corporation has been named a 2009 Supplier of the Year (SOY) by the Boeing

Company. Bridgestone was one of fourteen companies honoured for exceptional commitment to

excellence in working with Boeing. This is the first time that Bridgestone has received the title.

Bridgestone was selected from an elite group of among more than 12,000 active Boeing suppli-

ers in nearly 100 countries around the world. This selection was based on stringent performance

criteria for quality, delivery performance, cost, environmental initiatives, customer service and

technical expertise. The award ceremony was held on April 13, in Seattle, Washington, in the

United States.

Page 38: Automotive Business Review June 2010

36

Chery and Messi uniteto create a ‘power team’!The definite highlight at the Beijing motor Show this year was the announcement madeby China’s biggest domestic auto brand Chery that, football super-star Mr LionelMessi himself, will be the new face of the brand. Talk about the ultimate ‘power team’!

The volcanic ash hovering over Europe may have curtailed some Western guests and exhibitors plans to visiting the2010 Beijing Motor Show, but that didn’t stop the event from being a huge global success. China officially becamethe biggest car market in the world in 2009 – and domestic brand Chery has been riding the wave of success tothe fullest extent.

Chery exports to 70 developing countries and spokesman Jin Yibo said the company hopes to double exports this year to100 000 vehicles. Very exciting news from Chery was the announcement at the Beijing Motor Show that they have offi-cially signed world famous football hero Lionel Messi as the new face of Chery.

With the World Cup around the corner, even the non-football enthusiast is sure to have at least heard his name by now.The Barcelona forward is Fifa’s World Player of the Year and has become a shining star in the football world.

“Messi is the best footballer in the world, and thus makes a great ambassador to represent our premium Riich brand,” saidJin Yibo. Messi will also undoubtedly benefit from this partnership. He will surely get more exposure and his income willsurely improve. That’s what tends to happen when two powerful brands join forces.

A series of articles on the rise of the Chery automobile

J u n e 2 0 1 0

“Having a recognised face to promote its brand will make a big impacton Chery’s business in foreign markets,” said Liu LIxi, an analyst withNortheast Securities Co. in Shanghai. “It’s a smart move because thoseunfamiliar with Chinese cars need a famous ambassador to develop aninitial interest.”

And we couldn’t agree more!

With the build up to the much anticipated Fifa World Cup we are sureto see more and more of Messi and Chery! After a fabulous winning yearlast year Messi was quoted as saying,”Now, all I need is the World Cupin South Africa!”

Well, we will all be watching with baited breathe Mr Messi. You bringthe skills, we’ll bring the vuvuzelas.

Page 39: Automotive Business Review June 2010
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Back in the late 1970’s the South African government of the day was

aggressively pursuing its universally unpopular Apartheid policy.

As a result of increasing censure from the country’s main trading

partners, it was busy with a strategy of protecting “strategic industries”,

particularly those that were critical to the prosecution of the Border War. Many of these

were directly related to the production and procurement of weapons, but the local

manufacture of automotive diesel engines was one slightly less predictable “beneficiary”

of this policy. The logic behind this decision was clearly based on the necessity to secure

the supply of motive power for military transport, but to increase the viability of the

venture, all commercial vehicles equivalent to to-day’s medium, heavy and extra heavy

categories (including buses) were drawn into the “protective” net.

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

J u n e 2 0 1 0

The policy duly manifested in the

form of Atlantis Diesel Engines.

A factory was established on the

Cape West Coast, and, after a

bidding process, manufacturing licences

were obtained from Daimler Benz and

Perkins. By 1982, legislation ensured that

all designated commercial vehicles coming

off local production lines were powered by

ADE engines. While the ADE products

were found to be acceptable from technical

and quality viewpoints, most truck and bus

suppliers present in SA had been faced with

costly re-engineering of their vehicles

to accept these engines. Not surprisingly,

several decided to opt out, figuring that this

sort of investment to retain a marginal

share of a highly competitive market

running at just 0,5% of the world volume

could not be justified. In the final analysis,

only five brands stayed to contest the

market with Mercedes-Benz and MAN,

who had suffered less disruption to their

standard world product specifications than

most competitors. The end result was that

South Africa ended up with what were,

arguably, the world’s most expensive trucks.

The high degree of driveline standardisa-

tion was welcomed by many operators,

but the price that they were paying for this

perceived benefit added to the country’s

general level of global uncompetitiveness.

Fortunately, this situation prevailed for

only slightly more than a decade, and by

1994, the first democratic elections were

taking place, and truck and bus manufac-

turers had started returning, in numbers, to

a considerably less dictatorial South Africa.

We were, it seemed, back in the Global

Village, and able to benefit from the

natural flow of technology and competi-

tion, and more normal levels of vehicle

pricing.

However, starting in 1993, the First World

had commenced with the regulating of

vehicle emissions. This process has

advanced progressively, and has had a

major impact on diesel engine design and

operation. Some of the technologies that

have been introduced as a direct or indirect

result of emissions regulation, and accom-

panying low-sulphur diesel fuel, include an

almost universal switch to turbocharged/

intercooled aspiration, catalytic reduction

with urea injection into the exhaust system,

exhaust gas recirculation through the

combustion process, extremely high

pressure fuel injection using common-rail

delivery systems, and electronic engine

management. As this process has advanced,

it has worked its way progressively deeper

into fundamental engine design, making

the selective deletion of the technology less

feasible.

South Africa, in the interim, has staggered

hesitatingly along the emissions highway,

finally reaching Euro 2 enforcement at the

beginning of 2010. By way of comparison,

Europe is already three stages ahead, and

will move even further ahead in 2014.

Most of the world’s significant commercial

vehicle markets are aligned with Europe, or

racing to catch up with the First World

pacesetters. Unfortunately, South Africa is

precluded from participating fully in this

race by the unavailability of the appropriate

level of “clean” diesel fuel, in adequate

quantities, from its refineries. At time of

writing, there is no definitive deadline by

which the bulk of our diesel fuel will

advance beyond Euro 2 compatibility.

The problem that this creates for commer-

cial vehicle suppliers is that they must

supply SA with old fashioned engine

technology compatible with local fuel

quality. The further that SA falls behind the

rest of the world, the more potentially

expensive this realignment of technical

specifications becomes. Remember, we are

only around 0,5% of the world market

volume.

There is a distinct danger that some manu-

facturers may decide the cost of local par-

ticipation is too high (sounds familiar?),

while others may look for alternative

engine supply from manufacturers who can

justify the expense of maintaining the avail-

ability of “old tech”. This will require

extensive re-engineering of products to

accept “foreign” engines, which comes at a

cost (also sounds familiar!)

While it is highly unlikely that Atlantis

Diesel Engines will rise, like a Phoenix

from the ashes, to save SA truck suppliers

with unlimited supplies of archaic engines,

there are remarkable similarities, for

totally different reasons, between the

situation prevailing in the early 1980’s and

the scenario threatening to develop on the

other side of 2010. Inevitably, transport

operators will end up footing the bill for

any special adaptations that have to be

made to vehicles, and with SA’s huge

dependence on road transport, this will

find its way into the broader economy.

There is a very strong case for SA to get its

fuel supply house in order, sooner rather

than later, and this will bring related

benefits to the environmental cause, while,

at the same time, taking some of the

sting out of the upcoming, and arguably

unjustified, CO2 tax on light vehicles.

The time for procrastination has ended!

by Frank Beeton

40

Refloating Atlantis?

Page 43: Automotive Business Review June 2010
Page 44: Automotive Business Review June 2010

Fine ItalianAutomobile, Tony

Fiat, like Italy, never seems able to quite get its act together. The country has aver-aged a government a year – more or less – since World War Two and some of theirpoliticians make ours looks like amateurs when it comes to maximising the personalbenefits which can come with being in a position of influence...

Keeping track of what goes on with Fiat

requires the mind of a litigation

lawyer, the patience of a saint, and

Barry Hilton’s sense of humour.

It is remarkable that it has survived for

more than 110 years.

The brand goes back to 1899, mak-

ing it a true automotive pioneer.

In1908 Fiat Automobile was found-

ed in the United States but for a cen-

tury it hasn’t made an impact in the

world’s most important car market

(China excluded). That might finally

change and now with a 20 percent stake in

Chrysler - or Chrysler Group LLC to be

pedantic - hopes are high that they’ll be able to

leverage this to sink their teeth into the North

American market. Which they didn’t get right in a five-year

liaison with General Motors.

Fiat’s history is tied to the Agnelli dynasty. Giovanni was one of

the founders and played an important role for 50 years. His

grandson, Gianni, headed the company from 1966 to 1996. Italy

loved them and their cars: at one stage Fiat had almost 90 percent

of the home market.

But as any motoring marketing man worth his salt will tell you,

it is all about the product and today few people buy cars because

of loyalty or heritage (not in the mass market at any rate). Now it

has to be at the right price, and it has to start first time 999 times

out of a thousand.

Unfortunately that’s been Fiat’s downfall. For every good car

they’ve built they’ve also built a howler, and when they’ve built

good ones they’ve marketed them badly – at least locally.

South African fans get all nostalgic when they talk about cars like

the 850, 124 and 131 (especially the unique to SA 131 Racing),

but were they any good or are they just seeing the past through

rose-tinted spectacles?

Fiat’s presence goes back to before the First World War but it only

became a serious player in the mid 1960s when a plant was

opened in Rosslyn and production of the 124, 125 and 128

began. About 10 000 were sold in 1970 but five years

later that was down by 25 percent – largely thanks

to the quality and reliability of the emerging

Japanese brands.

By 1980, sales had plunged to about

5 000 and Fiat shut down its passenger

car operations and left the country

towards the end of the year – leaving

Alfa Romeo (which it would acquire

in 1986) to struggle on as the only

Italian brand in South Africa.

It took 10 years for Fiat to come back

and then it was thanks to Automakers,

Nissan’s holding company here. In a savvy

move, they started building the Uno under

licence and rapidly proved that the market needed a

cheap small car. The butt of many jokes (Why do South

African men like the Uno? Because they can drive with an arm

out each window) it was successful enough to change the face of

the market.

In the middle of 1998 Fiat Auto South Africa was formed to han-

dle importation and distribution of both Fiat and Alfa, as well as

overseeing the manufacture of Palio, Siena and Strada half-tonner

by Nissan. Local production was terminated in 2008 however,

with Fiat SA now operating exclusively as an importer.

The current Fiat line-up comprises the recently realigned 500

range (this spunky boutique hatch was undermined by its steep

pricing when launched two years ago), the underrated Grande

Punto, handsome and capable Bravo and the fun and affordable

(albeit aging) Panda. There’s also the Linea for those who want a

compact sedan and the Multipla for MPV families. In addition,

there’s a range of light commercials.

So can Fiat make the cut on the Southern tip of Africa, and get

back to the halcyon days of the late 1960s and early 1970s,

despite intense competition in the compact, sub-compact and

supermini sectors not only from the Japanese but also the Koreans

(not to mention the French)? Forty years ago a Fiat was almost an

automatic choice if you wanted an affordable small car which was

also fun to drive, and the marketing gurus need to work on

reigniting that passion if they are to succeed.

by Adrian Burford

42

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

J u n e 2 0 1 0

Page 45: Automotive Business Review June 2010

SKF’s Xtra Belt Series

SKF are proud to introduce the newestadditions to their power transmissionfamily of high quality products.

SKF Xtra power belts are designed to deliver up to 40%

more power than standard wrapped belts. These belts

will not only cut costs but more importantly extend the

service life of existing applications. An increased service life

and less downtime equal less cost! Varma Parag, SKF Platform

Manager, Power Transmission, explains the advantages, “The

Xtra power belts are homogeneous and have a coordinated

integration of the belt, flank and the pulley groove. They

reduce pulley groove wear due to optimised cover fabric and

offer up to 97% drive efficiency. They are also oil and heat

resistant and have an antistatic cover. You only have to worry

about one-shot tensioning, and there is no need to re-tension

the belts after the initial run in period. They also have

improved smooth running behaviour, low vibration levels and

offer good resistance to shock loads”. Tension members for

the Xtra power belts are of polyester and specially treated pro-

viding high tension loads and low elongation. A fibre filled

compound above and below the tension members allows the

belts to carry higher dynamic loadings with no compromise of

flexibility and full support of tension cords. The cover fabric

provides excellent wear an abrasion resistance while also pro-

viding excellent bending strength. The SKF Xtra power belts

further supplement the existing Power transmission range and

support SKF’s strategy to offer value added products to it’s

customers.

J u n e 2 0 1 0

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

MAZDA: 90 YEARS STRONG

Ninety years ago a spirit was born. The passion-ate spirit of a company that always challenges the statusquo, and an unorthodox spirit driven by a desire to dothings differently. It's the spirit of the unconventional.This year Mazda celebrates nine decades of inspirationaladvancements by people, who dared to be innovators, whowere uncompromising in their approach to revolutionarydesign and engineering. “Many people view Mazda as ayoung brand,” explains Doreen Mashinini, MazdaMarketing Manager. “But in truth Mazda has a seasonedheritage. The company has a legacy of breaking newground and leading innovations in the fields of aerody-namics and engineering. The brand's success with rotaryengine technology is an example of the cutting edgeadvancements pioneered by Mazda.”

Page 46: Automotive Business Review June 2010

www.bridgestone.co.za

44

But this is only one small part of it as tyres are designed

with function in mind. This we have stated many times

before. And while tyres are generally a compromise of

designed needs, it is still logical that there would be lim-

its within these compromises. Equally logical is that as with any

product, exceeding the limits of its’ designed capability will

ultimately shorten its productive life. This is a mostly overlooked

fact by all users, and it is neglected due to a lack of understanding

and education. So, let’s educate some more.

Let’s look at the functions of the tread. The tread performs the

basic functions of transmitting power to move the vehicle, stop-

ping power and directional grip. These are basic for all motor vehi-

cles. However there are different needs even in these basic func-

tions for different vehicles and even for different applications of

similar vehicles. Even passenger cars have different needs: your

average family runabout needs tread which gives average high

speed ability, suitable braking power and safe and predictable

handling and grip. Obviously safe wet condition ability is required

and it is expected to provide a long service life. Your high perform-

ance executive sedan requires a tyre to give extra high performance

ability, very responsive handling, be quiet and comfortable and

have high reserves of braking power. Extreme wet performance and

good looks are important, while long life is less so. Sports vehicles

forgo everything for handling responsiveness and braking power.

Tyre life is almost an afterthought, so important are the other

features.

In heavy commercial vehicles, tread life is ultra important to con-

tain costs. Then there are traction tyres for the drive axles, steer

tyres which must be responsive to lateral input and trailing tyres

which must give long life load ability and braking power. The lat-

ter is probably overkill in this country since most trailers braking

systems are questionable to say the least. However to the tyre

designer, braking power in the tread design of all truck tyres is a

high priority. Then you have all the vehicles in between which

need to have bits of all the above requirements. Tread design is an

extremely complicated art perfected over the decades to suit all

requirements.

But it is for the user to know his requirements and buy the correct

tyres with the right tread designs for his application and use cor-

rectly if he wants the tyre to give him the best results. An example

of this is how many long distance HCVs use high traction type

tyres on their drive axles. They never need the type of traction

those tyres are capable of since they are never in low traction con-

ditions. Sure, the traction tyres are proving excellent in braking

qualities, but the question remains; are they really necessary? There

is a big possibility that if they used highway, steer tyres throughout

the rig there would be significant cost reductions overall in the

long term.

Consider the following; all tyres could be rotated to all positions,

stock holdings would be drastically reduced, spare tyres would be

reduced, the high initial cost of the traction type drive axle tyre

would be averted and there are many more possible arguments in

this context. The one possible negative for example is that of going

down Van Reenens pass in the snow, one could need more braking

grip on the drive tyres for the retarders to work at their best. If

speeds are kept down to suit the conditions, this argument dies.

And with the amount of accidents this sector achieves in those

conditions with current tread choice it is a moot point anyway.

The real point is the question; are they using the correct tread

designs for their applications? Well the jury is

still out but it remains common practice.

The tread of the tyre is what gives it

it’s working life. Wrong tread in the

wrong application and the tyre will

perform poorly.

The intermediate group, those in the

light to light-heavy commercial sector are

equally subjected to a large choice of tread

designs, and are equally guilty of not doing their home work

properly. Those local delivery trucks that spend most of their time

in stop start traffic and short distance work need a different tread

design to those which are running long distances on highways at

higher average speeds. Those which have gravel roads to travel have

different requirements again. Each of these circumstances could

mean that you as the fleet operator could be using your tyres

outside of, or at least at the edge of their designed parameters.

If you are, you are losing out on potential tyre life and ultimate

performance. You will also be compromising the safety of your

staff and vehicles. Look into it and if unsure give us a shout and

we will advise and assist.

Until next time Think Safety, Think Tyre Safety

and Their Contribution to Safety in Motoring Tyres

J u n e 2 0 1 0

As promised last month, we are going to look at using tyreswithin their designed parameters.

Marcus Haw

Page 47: Automotive Business Review June 2010

Rudolf Straeuli may have been on to something, because

they do breed them tough in Thabazimbi, and three of

the iron men of the town are Kallie, Japie, and Kalla

Stassen, who tend to the town’s auto electrical needs at

Thaba Auto Electric cc in, you guessed it, Vanadium Street. Kallie

may also have psychic powers, because when in 1989 he purchased

the property where Thaba Auto Electrical now stands, it was mere-

ly as an investment. Kalla was at the time plant foreman at Kumba

Iron Ore, and little did he know that his son Japie would set the

world alight as an apprentice auto electrician at his cousin’s auto

electrical business in Marble Hall. Japie qualified in record time,

and with the top marks in the country, so dad Kallie provided the

capital in 1998 for Thaba Auto Electrical cc, and today the

business is the most advanced diagnostic workshop in

Thabazimbi, providing world class service during the day and

excellent after hours break down service when required, all built

around the genius of Japie Stassen. Word of mouth is a powerful

advertising medium in the rural areas, so Thaba Auto Electrical is

well known throughout the area, and even does sub-contracting

work for OES dealerships from the surrounding towns.

Despite all these advantages, Kallie knew that there was something

missing, and that something was the need to stay ahead of the

technology curve, and to be part of a bigger family. Independent

workshops today face a tough challenge in keeping up with

technology, so Kallie did his homework and researched all the

options. His research led him to e-CAR, South Africa’s fastest

growing workshop network. Kallie’s cousin, Marius Stassen, at

Marble Auto Electrical, had also joined e-CAR, and his advice was

part of the research. e-CAR provided him with everything he

needed – technology updates, technical training, Bosch back-up,

product support (Thaba Auto Electrical sources quality branded

parts at competitive prices from nearby Diesel-Electric Brits), and

a national image. Kallie, wife Hester, and sons Japie and Kalla, also

following in the family’s auto electrical tradition, plus the other

members of the Thaba Auto Electrical team, have found their

bigger family in e-CAR. They are very happy, and they like the

e-CAR people, a fact which counts for a lot in today’s hard

business climate. The iron men of Thabazimbi are on a roll.

South Africans tend to be descriptive when naming their geographical places.They do not use names such as Winterborne Herringston, Swadlincote, orUpper Slaughter, although on second thoughts Upper Slaughter could behorribly descriptive. The folk south of the Limpopo tend to stick to thebasics – Table Mountain cannot be missed if one is in Cape Town, Platbergjust outside Harrismith is understandably flat, the Vaal River is indeed vaal,and the Crocodile River once did teem with crocodiles. And the less saidabout the Gatberg the better. Therefore, it comes as no surprise to learnthat the town of Thabazimbi lies at the foot of the Ysterberg. Both namesmean mountain of iron in the local vernaculars. No prizes for guessing thatThabazimbi is at the centre of one of the biggest iron mining areas in theworld. The area is rich in platinum as well, so one could say that the area isgeologically blessed. The disgraced Springbok coach Rudolf Straeuli eventook a bet that the metallic powers of the mountain could be passed on tohis charges in 2003, when he took them for a leisurely stroll in the area.

45J u n e 2 0 1 0

Iron Men of Thabazimbi

To join the fastest growing workshop network in South Africa and to add a new dimension to your

business, contact Wilfried Langenbach at 086 000 3227 (086 000 ECAR)

Mix a moti-vated team

with the latesttechnology

and you havean unbeatablecombination.

Page 48: Automotive Business Review June 2010

J u n e 2 0 1 046

This heading is designed to get your attention. And it surely has! To put your mind atrest, this has not occurred as yet and in many persons minds the likelihood of itoccurring are miniscule. But then again who imagined that a volcano would erupt overIceland causing a no fly zone over most of Europe.

In a long list of “pet hates”, one that stands out prominently is that of drivers –

usually parents - who allow children to, at best, sit unrestrained in the rear of the

vehicle or, at worst, to move around freely, even standing in the front of a moving

vehicle. One can almost understand and accept that an adult can choose – even though its

illegal – not to wear a seat belt, but how a parent can act in such an irresponsible manner is

way beyond the realm of sanity. In speaking at seminars, particularly the ones which ‘moth-

ers to be’ are present, there is always expressions of horror when told of the dangers of loose

objects flying around a motor vehicle. This horror is further exacerbated when they learn that:

• Objects, such as a child, if unrestrained, will on sudden and immediate stopping of a

vehicle hit what is in front of it (usually the dashboard) with a mass 30 times its normal

weight. In real terms a 20 kg infant will hit whatever is in front of it at about 600 kg.

On reflection this also calls into question the wisdom of well meaning parents who “share”

a seat belt with a child. Can one imagine the forces exerted on the fragile body of an infant

as adult body weighing 60 to 80 kgs is increased to almost 2 tons?

What can be done to change this is extremely complex and fraught with all sorts of

challenges. Who on occasion has “intervened” and suggested that it was unsafe to transport

children in that manner? Feedback from other persons suggests that most “perpetrators”

react angrily and resent any interference in their ‘domestic’ affairs.

Code of conductIn reflecting on this it appears that of the options available the most positive way would be

to introduce a code of conduct for Parents – similar to the teen driving contract – and which

drivers can subscribe to. Our intention is to provide interested parties with a one pager to

which they will pledge their compliance. The added benefit of which is that one could hand

a parent such a document. Handing the document would, to some extent, obviate the need

to engage in conversation with an “offender”. In addition parents could offer this “code of

conduct” to schools to share with parents. Let us lead by example and encourage those who

do conduct themselves properly a word of commendation.

by Eugene Herbert

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

Driver charged with Murderof Child Occupant

Page 49: Automotive Business Review June 2010

47

The Importance of Careful Drivingby the Stig (Serious Traffic Investigating Guru)

A very interesting e-mail crossed the desk of Automotive Business Review’s Intelli-Driving Editor this past month and it makes for fascinating reading. It is also a salu-tary reminder as to why it is incumbent on every single road user to drive carefully andresponsibly. It is actually a civic duty, and if everyone heeded this call, this couldreduce traffic accidents considerably, and increase the country’s productivity levels.

J u n e 2 0 1 0

S p i r i t o f S a f e t y

The e-mail came courtesy of an article in the London

Daily Mail, about research done in the United

Kingdom about the cause of “phantom” traffic jams.

This research goes a long way in explaining those mys-

terious hold ups that seem to come and go without any apparent

cause. It appears that just ONE driver can cause chaos for hours.

This is in the UK, where most of the drivers are legitimately

licensed, and most of the drivers on the road can actually drive!

South Africa has a much higher percentage of bad drivers, so our

problem is more severe, and thus the onus is on the good drivers

(you and me?) to lead by example. Whilst we cannot solve the

problem as individuals, we can collectively reduce the problem.

Firstly, by not contributing or adding to the chaos, and secondly

by showing restraint and responsibility that will hopefully be

noticed by the bad boys and over time become a self-fulfilling

change of attitude.

Dr. Eddie Wilson, from the University of Bristol in England, says

that, under the right conditions, one individual’s bad driving

could create “a traffic tsunami as far as 80km away”. By analysing

driving behaviour on a 16km stretch of the M42, which is one of

Britain’s busiest stretches of highway (our equivalent would be the

N1 stretch from the Buccleuch interchange to the Brakfontein

interchange), Wilson and his team of researchers found that most

congestion was caused by nothing more than sharp braking,

unnecessary lane changes and trucks overtaking one another.

We quote from the article, “under the right conditions, any one

of these innocuous events could create the ‘perfect storm’ which

could lead to the aforesaid traffic chaos”. It is the small things

such as a car’s lane change that cause all the vehicles around it to

slow down slightly. This is magnified exponentially as each

vehicle behind the initial culprit slows down a little more. This

process creates “stop-and-go” waves in which huge sections of

highway traffic slows down to a crawl – all because of the action

of a SINGLE individual. As Wilson explains, “One error can usu-

ally be absorbed by the surrounding vehicles but if others are

forced to swerve, brake or change lanes suddenly this has a ripple

effect”. Now you know why when after driving through an

unexplained traffic jam you are suddenly confronted by open

road, which you tackle with zest while shaking your head in

disbelief.

As Ripley would say, unbelievable, but true. ABR wants to know

what the its readers think about this – send your comments to the

editor at [email protected]. We’ve got a nice prize for the

best letter.

Page 50: Automotive Business Review June 2010

As stated in the previous module,

the ECSTASY product is

revolutionary, and is still in its

infancy with regard to product

development, refinement and improve-

ment. The technical role is therefore sig-

nificant. Whilst WECARE (Pty) Ltd. is

a fictional company, it is based on a com-

pany with which I worked closely, and I

can vouch for the activities and structures

that we are going to discuss.

RULE # 1: GET EMPLOYEESINVOLVED FROM DAY ONE

Please do not make the mistake that so

many organisations make. Do not take

your top management to an idyllic,

remote resort, and return two weeks later,

sun-tanned and refreshed, to foist some

grand sounding mission statement on the

peasants. Get every single employee

involved from day one. You may have an

idea of which activities are the important

ones, but do not reveal these to the

employees. Let them come up with the

prime activities, and you will find that

they will not stray far from what you have

originally in mind. If you have more than

your fair share of lateral thinkers in your

organisation, you might get a surplus of

innovative approaches, but give them their

heads, and only play a facilitator role when

necessary.

Under your guidance, you will get the nec-

essary outline, and you may even get some

insightful surprises. I can also guarantee

that you will learn some things about your

organisation of which you were not aware,

and your perceptions of your employees

will change, hopefully positively and

hopefully dramatically. The most impor-

tant point of this exercise is that everyone

feels part of the process. The recommend-

ed route is to have an initial meeting with

all managers and supervisors to outline the

project, and then to allow them to have

their own follow-up meetings with their

staff members, and for them to report

back with their findings. All the input

must then be distilled, and reviewed, util-

ising the process of follow-up meetings. If

this requires three, four, or even more

meetings, so be it. When there is general

agreement, the final outcome should be

announced at a big function, with every-

one attending if possible. This all depends

on the size of your organisation - just use

your imagination.

KEY ACTIVITIES

The end result of the process forWECARE (Pty) Ltd. was the following:

1. TECHNICAL

2. LOGISTICS

3. SALES

4. FIELDWORK

5. PERSONNEL

6. ADMINISTRATION

7. MARKETING

These were decided as the 7 KEY ACTIV-

ITIES of the organisation, and very

importantly, as decided by the employees,

they are listed in the order of IMPOR-

TANCE, with one important rider. This

rider we shall discuss in module 13.

– sponsored by Federal-Mogul

Customer C.A.R.E. Programme

1. Most organisations have veryimpressive mission statements, and visions, and values, etc. Do you know your organisa-tion’s dream collection? Andhow they were compiled? And do they contribute to thecustomer c.a.r.e. culture in yourorganisation? Discuss.

2. Is it dishonest to not revealyour organisational thoughts toyour employees?

3. What are the advantages and disadvantages of having lateralthinkers in your organisation?

4. Make use of your lateral thinking abilities, and come up with an innovative way ofannouncing, to all the staff, the final outcome of yourorganisation’s brain-storming sessions.

J u n e 2 0 1 048

MODULE TWELVE – THE FORMALISATION STAGE

We are now into phase two of transforming your company into a customer care machine,which is the Customer C.A.R.E. formalisation stage. We use as our model, the fictionalcompany, WECARE (Pty) Ltd., importing and marketing ECSTASY seat covers. To formaliseour approach to customer c.a.r.e. we need to define the prime activities of the companyand to structure the customer c.a.r.e. approach around these activities.

DISCUSSION POINTS

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

C o n s u m e r P r o t e c t i o n A c t

J u n e 2 0 1 050

It’s time to act…If you are not already aware, the Consumer Protection Act comes into play this yearOctober. This means serious business for everyone in the industry and as much as wewould like to ignore it, it is in your very best interests to be prepared…

The act was signed on 24 April

2009 and gave us all 12 – 18

months for compliance. We as

South Africans tend to procras-

tinate when it comes to abiding by rules,

especially those handed down to us by

government. This act is however very seri-

ous as it is not only the law that will come

after you if you default, but the consumer.

Before the introduction of the act,

consumer protection was largely unregu-

lated and most consumers were at a disad-

vantage when it came to poor products

and service. It is absolutely imperative that

every person has an adequate understand-

ing of what the act entails and how to be

prepared for the implications. All staff

members should be trained and educated

as to the clauses in the act. This will avoid

product liability issues that may arise

within the motor industry. In the wise

words of Mary Poppins, let’s start at the

beginning…

So, why was theact created in thefirst place?The act will promote and advance the

social and economic welfare of consumers.

It will protect consumers against mislead-

ing advertising, marketing and fraudulent

schemes, as well as cover them against any

damage or injury caused by poor quality

parts purchased from a company.

It is basically putting the power back into

the consumers’ hands by giving them the

means to stand up against poor service of

any kind.

What is the mostimportant changebrought about bythe CPA?The CPA introduces a no-fault liability

system supply chain, meaning that the

consumer will merely have to show that

he bought the faulty product from the sup-

plier, or received inadequate warnings or

improper labeling to be able to sue for

liability. So, if Mr Joe Bloggs has an acci-

dent because he bought a faulty part from

your company, you can be held liable for

all damages incurred including that of the

other party involved, as well as any injury

sustained. This may sound preposterous

but it is indeed fact. However, you can

protect yourself and your business. You

just need to make sure you have all the

information and take the necessary steps.

Some pointers…• Consumers will have the right to

inspect the product before purchase.

This makes shrink-wrapped products

or sealed product packaging a bit of a

problem. Make sure your packaging

allows for parts being accessible for

inspection to avoid hassles later.

• If you have fixed term agreements with

your customers you may be required to

give them notice prior to the expiry of

the fixed term. This could place an

administrative burden on you so it is

best to be prepared for that.

• All sale agreements and your advertise-

ments must be placed in plain English.

ABR brings you a series of articles on the Consumer Protection Act.

by Alison McCrae

Page 53: Automotive Business Review June 2010

T y r e T a l k

51

Environment under threat!

RMI vs. SATRP…Which plan will address the tyre waste

management crisis effectively?We are all well aware that in today’s times we owe it not only to ourselves, but tofuture generations to become environmentally conscious. Our planet is under hugethreat from various sources, and if we as its inhabitants don’t wake up and startdoing our bit, there might not be much of it left for our youth to occupy.

Tyre waste is rapidly becoming a huge problem in South Africa.

Rubber does not biodegrade and becomes harmful as it ages.

Burning the tyre waste completely defeats the objective as the air

pollution caused is horrendous.

So what do we do?There are two plans devised at the moment to eradicate the tyre

waste in an effective, environmentally-friendly manner. The

SATRP plan, and the opposing plan being made up of the

TDAFA and TIA under the RMI Waste Tyre Management Plan.

The RMI plan seeks to address the faults found in the SATRP

plan, and have been in communication with the Department of

Environmental Affairs with regard to this.

I’m sure we can all agree that the plan to rid our environment of

these waste tyres needs to be one hundred percent foolproof in

order to be effective. We can’t afford the implementation of a

faulty plan, running the risk of damaging the environment

further.

The main concern that the RMI plan addresses is that the SATRP

plan measures the tyre waste to be managed purely by tyres sold.

This excludes reject tyres produced and not sold, as well as tyres

imported.

The RMI plan also extends itself to a large opportunity for job

creation, which the SATRP plan misses completely. Where the

RMI plan will create many jobs per site, the SATRP plan will in

fact create unemployment.

As far as pricing is concerned the SATRP plan suggests that the

same price will be charged for all tyres, despite the size of the tyre.

The RMI plan states that the pricing should be measured in

accordance to kilograms. Therefore an 18 inch tyre will not cost

the same in Green Fees as a 13 inch tyre, which would clearly

be unfair.

These issues are just the tip of the iceberg in this extremely

relevant debate as to which plan will best service the needs of the

communities and the environment. We plan to bring you all the

facts and developments in detail, so look out for the next article.

J u n e 2 0 1 0

by Alison McCrae

Page 54: Automotive Business Review June 2010

In the previous issue of ABR, Giel Steyn gave us an appetising peek at TYC automotivelamps, with his reference to the Consumer Protection Act, and how TYC lamps meetthe requirements of high quality product and world class accreditation.

Now for the main course. In

tandem with the rapid tech-

nological advances of the

motor vehicle, automotive

lamps have evolved significantly over the

past twenty to thirty years. No longer are

lamps simply a functional product on a

motor car. They are complicated and

sophisticated parts, with many compo-

nents, having to accommodate technolog-

ical progress in the arena of globes, reflec-

tors, and electronic adjusters. Descriptive

terms such as cornering lamps, daytime

running lamps, halogen, non-halogen,

xenon, neon, LEDs, variable intensity and

automatic headlights, which were exotic

things thirty years ago, are now in com-

mon usage. The days of old sealed beams,

which were basically swimming pool

lights, are numbered. The modern auto-

motive lamp has now become part of the

lines and styling of a motor vehicle, and

has become integral to the shape of the

body. Quality, performance and design are

non-negotiable, and the enforcement of

quality control is much more complicated.

Grandmark International’s policy on qual-

ity prompted them to go for the TYC

brand, because of their extensive role as an

OEM supplier and the recently acquired

SABS accreditation. The big advantage of

acquiring a Mark versus merely meeting

the compulsory regulations for a part is

that a major component of the processes to

acquire a Mark is the need to ensure that

the manufacturer must be ISO approved,

and this involves an annual inspection to

verify compliance with ISO standards.

Grandmark International can proudly

announce that this is the third SABS Mark

that they have acquired, and that a fourth

one is imminent. Grandmark is a true

champion of quality, and shall continue to

improve their quality and accreditation

profile in all respects.

Giel Steyn

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

EditorialPartnership

Grandmark – Lighting the Way

J u n e 2 0 1 052

In this series of articles ABR discusses with Giel Steyn of Grandmark International the four significant factors that should be taken into

account when purchasing automotive parts - Technology, Quality, Safety and Value for Money. These four characteristics are inter-related, and

each 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, and

therefore it is appropriate that this series of articles is titled Diamond Dialogues.

TYC is approved by the highly rated CAPA. The

Certified Automotive Parts Association is a non-

profit organisation that certifies the quality of

automotive parts used for collision repairs.

CAPA ensures that parts meet quality standards

for fit, component materials, and corrosion

resistance and provides consumers, auto body

shops, part distributors and insurance adjusters

with an objective method for evaluating the

quality of certified parts and their functional

equivalency to similar parts manufactured by

automotive companies.

The old ...

...and the new

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

J u n e 2 0 1 054

I n s i g h t s

Deep PurpleThe seed for Capricorn Society Limited was germinated in 1974 after 12 service station managers, all part of the Golden Fleece fuel station network in WesternAustralia, got together for a couple of cold beers in a pub in Perth. The discussionturned to how dependent they were on the big boys and their vulnerability to theirwhims in both supply and pricing. The name of the beer was appropriate; “Swan” becamea talisman for these brave men, who over the next few decades, took their future intheir own hands and turned an ugly duckling into a beautiful swan. The originalgrouping was known as Group 11, and it was the catalyst for today’s multinationalCapricorn Society Limited.

Today, Capricorn is one of the largest independent automotive

parts buying groups in the southern hemisphere, providing

services to the entire automotive service and repair industry in

Australia, New Zealand and the Republic of South Africa.

From a light purple in 1974, Capricorn is now a deep purple, and is the

smoke on the water between the three southern nations, acting as

a critical intermediary in the automotive value chain by facilitating strate-

gic partnerships between its members and leading automotive suppliers,

and operating under the seven international principles of co-operation –

Voluntary and Open Membership; Democratic Member Control;

Member Economic Participation; Autonomy and Independence;

Education, Training and Information; Co-operation Among Co-opera-

tives; and Concern for Community.

The idea behind Capricorn is simple – it’s all based on people working

together, for the mutual benefit of all. This philosophy was on display in

living colour, from mulberry to heliotrope, at Capricorn’s annual purple

bash on 1st May 2010 at the Birchwood Conference Centre in Boksburg,

Gauteng. The “year-end” function, which normally takes place in

November each year, was postponed last year, due to the economic crisis,

and is an example of the co-operative approach. Rob Mildenhall, outgo-

ing Business Development Manager for South Africa, explained at the

time of the postponement, “Capricorn is a pragmatic organisation that is

not scared to take tough decisions for the good of the whole. We have

decided to postpone our year end function to April/May 2010, as we

realise that 2009 has been a tough year, and this has put pressure on our

suppliers and partners. 2010 will see growth return, and as our combined

hard work bears fruit, we shall have our function to celebrate this fact.”

Trent Bartlett, CEO and David Fraser, and General Manager Automotive

respectively of Capricorn, had flown across the pond to share the

moment with the South African suppliers and members, and in his

address to the assembled purple people, Trent Bartlett gave the good news

that the Capricorn Society continues to grow strongly, and that interna-

tional research has shown that co-operatives across the globe have contin-

ued to thrive despite the recent financial crisis, which is testament to the

sound business model on which co-operatives are based. He added that

the co-operative concept survives through the loyalty and steadfastness of

its members, and the critical support of the preferred suppliers. Both the

members and suppliers are responsible for the growth of the society, and

www.capricorn.com.au

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I n s i g h t s

55J u n e 2 0 1 0

www.capricorn.com.au

Trent paid homage to the South African suppliers who had recog-

nised the importance of Capricorn from its inception in South

Africa, and gave it their full support. He singled out Peter Granat,

the recently deceased CEO of AutoZone, and Brand Pretorius, the

CEO of McCarthy, as two of the key supporters from day one.

As at 31 December 2009 Capricorn had in excess of 12,000

members, having achieved 3% growth in Australia, 10% growth in

New Zealand, and a 15% decline in South Africa. The reason for

the decline in membership numbers in South Africa is because of

the introduction last year of the Capital Secure credit model, which

meant that some members chose not to remain part of Capricorn.

This has reduced the numbers temporarily, but on the positive side

it has put the South African leg of the co-operative on a firmer

financial base, and creates stronger sustainability and impetus for

profitable growth in the future. Trent thanked the members and

suppliers for their support during this changeover, and he made

particular reference to the loyalty and commitment of Capricorn’s

South African team. The SA team today consists of André

Changuion, Sales Manager South Africa; Johan Nel, Area Manager

Inland Areas; Lleana Kaiser-Phillips, Area Manager Coastal

Seaboard; Helen Viviers, Credit Office; and Amy Joubert,

Administration Officer. Of particular significance was the fact that

despite the 15% reduction in members, the South African turnover

figures, at the end of last December, were only down marginally

(1.8%), an indication of the wisdom of the introduction of Capital

Secure. This bodes well for the future, and with the worst of the

financial crisis behind us, Trent sees great things in the coming

years. The South African Capricorn members can also look forward

to the launch of additional Capricorn Financial Service products

later this year, once the requirements of the National Credit

Agreement Act have been addressed.

In an emotional moment, Trent Bartlett thanked Rob Mildenhall

for helping establish Capricorn in South Africa in 2001, and his

special and unique contribution to the industry. Rob had accepted

the challenge of Business Development Manager for South Africa,

and displayed guts and a leap of faith in moving from the

relative comfort of an established corporate environment, and had

succeeded admirably. Rob had now accepted a position down

under, and once again he would be doing a pioneering role for

Capricorn on the east coast of Australia, establishing and growing

panel business for Capricorn. The South African members need

not be anxious, because the baton is being passed to a Capricorn

stalwart, André Changuion, who has been promoted to Sales

Manager for South Africa. André was Capricorn’s second South

African appointment, so he knows the ropes and has supported

Rob Mildenhall these past nine years. An indication of André’s

standing in Capricorn is the fact that he was recently recognised as

the employee of the month across the three Capricorn countries.

Trent concluded his address by lauding the loyalty and commit-

ment of the members and suppliers, and repeated the mantra that

Capricorn is their other business, and that there is strength in

numbers and that it is all about developing small businesses, which

are the backbone of every economy in the world. He reminded

everyone that 2011 will be the 10th anniversary of Capricorn

South Africa, and that everyone should gird their loins for one big

Purple Bash.

Page 58: Automotive Business Review June 2010

J u n e 2 0 1 056

I n s i g h t s

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 Retail Motor Industry organisation owes a huge

debt of gratitude to Rob Mildenhall. Over the past

couple of decades he has played an important role in

this organisation, and was a proactive member, office

holder and enthusiastic participant in all its facets.

Over the years he has done duty as MIWA President,

Chairman of the RMI Business Chamber, served on the RMI Exco and

RMI Board, was a key participant in the Business making Forum, and

much more. The RMI used the opportunity of the annual Dinner and

Display Event to present to Rob a watch and citation. Jeff Osborne,

CEO of the RMI, made the presentation, and he praised Rob for “his

great passion, candid opinions, and impeccable ethics”. Jeff said that it

was a privilege and honour to serve beside Rob in the organisation, and

that he felt an immense sense of loss with Rob’s move to Australia, and

that South Africa’s loss is indeed Australia’s gain.

It has become a tradition at Capricorn’s annual do to acknowledge the new entrants to the Million

Rand Club. The club is growing, and this year the suppliers who were available to collect their

awards were Mercedes Benz Life Style Centre Menlyn; Audi East Rand Mall; Imcomex;

Barloworld Amstrong Selby; and Chrysler Jeep Dodge Menlyn. Here they are seeing collecting

their awards from Trent Bartlett, David Fraser and André Changuion. Two suppliers that could

not attend and will receive their awards later, were Macs Automotive and TSE Bigmax.

There was one final

twist to the evening.

André Changuion

interrupted the main

course by toasting

Rob Mildenhall with

sparkling wine in sparkling glasses.

Rob took the mike and acknowledged

the debt he owed to all in the room,

for such a wonderfully fulfilling nine

years, and for the knowledge that he

gained during this time. When he

took the job in 2001, he took it upon

himself to get to know every single

member and supplier personally,

and whilst this became a close to

impossible task, he stuck gainfully to

his commitment. Rob thanked David

Fraser and Trent Bartlett for their

support and backing, and he ended

off by acknowledging his dedicated

South African team.

The entertainment for the evening wasprovided by Abbott & Crabb, an

extremely talented and amusing duo.

Page 59: Automotive Business Review June 2010
Page 60: Automotive Business Review June 2010

Carlo, in his emergency role as a “vehicle para-

medic”, and in his medium to long term role

as a “vehicle general practitioner”, and his

intervention role as a “vehicle surgeon”, relies

heavily on the Bosch Golden Triangle – the

KTS Compact Control Unit Diagnostic

Tester, the ESI[tronic] Service Information System, and the

FSA Engine Management System. With these three pieces of

equipment and software, together with his technical training

and analytical skills developed through his “internship” at top

class workshops, Carlo is confident that he can fulfil the gold-

en triangle of “medical” needs, and to solve any mechanical,

diagnostic or electrical problem.

The VW Golf ’s non-starting is just such a problem, and Carlo

knows that if broken down logically, there are just three things

that either make a petrol engine run, or conversely, that stops a

petrol engine from running: fuel; compression; spark. Last

month we looked on as he did the battery check, the fuse check,

and the error code procedure with the KTS. He had also con-

firmed that there was power supply to the ECU, and he used the

FSA to confirm that each cylinder had acceptable compression.

The investigation continues – now Carlo focuses on fuel supply.

Carlo first checks the voltage supply to the fuel pump. It needs

to meet the required 12,5 volts, and does, so next step is to

bypass the fuel pump relay, utilising the

toggle switch, taking out the feed pipe from the fuel rail, and

using a bucket to collect the fuel, switching on for at least

15 seconds. This is known as the Delivery Test, checking if the

pump is delivering fuel. The fuel gushes into the bucket, thus

passing the test with flying colours. Next in line comes the fuel

pressure test, which can be checked by using a fuel pressure

gauge, or using the FSA, but do remember to put the relay back.

To do this test, you need to crank the engine, and the gauge has

to go up to between 2,0 and 2,4 bars, and needs to hold this for

at least a minute. Once again the Golf passes the test.

The sleuthing continues. Next in line is a back probe into the injectors using Channel One of the FSA. The scope pattern confirms that

the injectors are opening and closing, so with deerstalker hat firmly in place, Carlo continues his investigation. Next issue of ABR, we

shall watch as Carlo goes to the Spark – not the Chev, but the spark as generated by the spark plugs.

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

J u n e 2 0 1 058

From Start to FinishLast month, ABR spoke to Carlo du Plessis of Cencar, Centurion, a Robert BoschService Centre, about the 2004 VW Golf III 1600i that had to be towed into his work-shop because of its stubborn refusal to start. In his important role as an automotivetechnician, Carlo’s job is to fix these problems, from start to finish. With a VW thatrefuses to start, Carlo’s mission is simple; to make it start.

Carlo du Plessis using his trusty FSA to do a back probe on the injectors.

Page 61: Automotive Business Review June 2010
Page 62: Automotive Business Review June 2010

by Howard Keeg

J u n e 2 0 1 060

Hyundai are on a roll, and their i generation of vehicles are

leading the charge. The latest i for me is the ix35, a very good

replacement for the long in the tooth Tucson. Better in all

aspects, Hyundai Automotive South Africa are expecting sales

of 400 per month, versus the 270 achieved with the Tucson.

Launched to the media in

early May 2010 at the still to be officially

opened Legend Golf and Safari Resort, which provided a

stunning African backdrop to the ultra-modern Korean car,

the ix35’s combination of good looks, safety features, performance,

fuel consumption, accessories and price threatens to make a signifi-

cant impact in the increasingly important crossover utility vehicle

segment. With prices starting at just R239 900 for the base 2,0 litre

GL 4x2 5-speed petrol version, and ratcheting up to R369 900 for

the flagship R2,0 litre CRDi 4x4 GLS automatic, which has all the

bells and whistles, the finicky consumer is well taken care of. Not

that the base model is a bare bones model; definitely not.

When the engineers got their brief, Hyundai decreed that the dis-

tinctly hatchback proportions of the Tucson was no longer modern

(and Hyundai means modern in Korean, so the decree was appro-

priate), and the result is a sleek, low-line one-box shape. Hyundai’s

pr speak does not spare the metaphors when describing the shape;

telling us that “this new "fluidic" design language breaks new

ground and finds confident expression in the sweeping, gently

curved lines which flow rearward and provide a level of athleticism

not typically associated with this class of vehicle.” Wow, Usiah Bolt

wouldn’t mind being described as such! Hyundai’s Director of

Marketing Stanley Anderson, is a little more businesslike when he

says that “the iX35, which replaces our popular Tucson, is another

manifestation of the rapid progress which the Hyundai brand con-

tinues to make. We are confident it will do the same in the impor-

tant compact lifestyle vehicle segment as the i10, i20 and i30 hatch-

backs have done in the segments in which they compete.” The dis-

tinctive hexagonal grille previewed on the ix-onic concept revealed

at the 2009 Geneva Auto Salon is going to be the key design feature

that will identify the family of future Hyundai products

The good old days of Hyundai engineers having to rely on

Mitsubishi engines are also a faint memory, as Hyundai’s World

Engine - the largest petrol engine programme in the world – is now

at Theta-II stage. South Africans will have the option of the 2,0-litre

and 2,4 four cylinder versions - all-aluminium multi valve engines

with variable valve timing on both the inlet and exhaust camshafts,

plus a two-stage Variable Intake System (VIS) which enables switch-

ing between long and short intake manifold lengths, improving per-

formance and low-end torque, and much better fuel consumption.

My latest experiences with diesel engines have really turned me into

a diesel fan, and the latest Hyundai’s ‘R’ diesel engine family is no

exception, benefiting from the third generation common rail system Ready to take on the 4 x 4 trail.

An i Generation Vehiclefor the Me Generation

V e h i c l e L a u n c h

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61J u n e 2 0 1 0

developed by Bosch whose piezo-electric injectors deliver

fuel at 1800 bar pressure, providing an unprecedented

degree of accuracy and control, and no turbo lag whatso-

ever. Emissions and fuel consumption are as expected

with the modern diesel engine, very good – the six-speed

manual consuming just 6.4 litres of 50 ppm diesel per

100 km while emitting a mere 170 grams of CO2. Please

note that the 50 ppm requirement is non negotiable, so

those who stay in areas still in the darker ages have to

settle for the petrol engined versions. Come on the fuel

industry – get your act together!

I would need much more space to go into all the techni-

cal advances of this vehicle, so all I’m going to say is that

for those of us who consider themselves part of the me

generation, the i generation is made for us.

The extreme 19th hole at the Legends Golf and Safari Resort is set

high up on the impressive Hanglip Mountain, and it is the longest

Par 3 in the world and is accessible only by an exhilarating heli-

copter ride. Golfers are invited to tee-off from the edge of the

mountain in an attempt to hit a hole-in-one on the 19th located

at the bottom of the cliff. A hole-in-one will earn the lucky golfer

US$1m. The green is in the shape of Africa, and Hyundai must

have hoped that no golf balls hit their cars from such a height.

t h e B u z z

Alfa Romeo chooses UmaThurman to launch the GiuliettaFamous actress Uma Thurman and William Shakespeare's verses

- "We are such stuff as dreams are made on" - are featuring in the

advertising campaign that will be revealing the multi-faceted

soul of the new Alfa Romeo Giulietta. The star of Pulp Fiction

and Kill Bill, who combines an ice-cold, untainted image with

aggressiveness, bravery, dynamism and beauty, epitomises the

various souls of Giulietta, a car that knows how to be agile in the

toughest situations and comfortable on everyday roads. This is

the merit of the new "Compact" architecture. Using sophisticat-

ed suspension technical solutions, a dual-pinion active steering,

top-quality materials and state-of-the-art manufacturing tech-

nologies, the Giulietta achieves excellent levels of on-board com-

fort, dynamic features and safety (both active and passive).

Jimny celebrates 40giant-killing years

Some vehicles never grow old, even if they’ve notched up decades of trusty

service. One of the best examples of this ageless phenomenon is the Suzuki

Jimny.The indestructible midget celebrates four decades of giant-killing

greatness this year. There have been five generations of the much-lauded

compact 4x4 since the launch of the original Jimny in 1970, with global sales now

topping more than 2,5-million units. Huge successes can have tiny beginnings.

In 1970, the first Jimny was powered by a tiny two-cylinder, two-stroke engine with

a capacity of jut 359 cc and a maximum output of only 18,5 kW. Today, those sta-

tistics seem almost ludicrous, but that didn’t stop the first Jimny, dubbed the LJ10,

from being successfully launched in Japan. This first Jimny had a soft-top roof with

zip-down canvas doors, and seating for only three, as the space behind the driver’s

seat was occupied by the spare wheel. It was a very basic vehicle, with safety and

convenience features noticeable only by their absence.

V e h i c l e L a u n c h

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J u n e 2 0 1 01

Page 65: Automotive Business Review June 2010
Page 66: Automotive Business Review June 2010

Witbank and Middelburg combine to form a

significant urban oasis on the planes of this

acid rain region, which provides rich pickings

for the automotive aftermarket, and thus it

was no surprise to find the Partinform

Automotive Trade Show making its way on the evening of May

11th 2010 to the Cultural Centre in the imaginatively named

Mandela Avenue (the replacement names are so creative!!).

Partinform is also creative, carrying the message of branded qual-

ity product to all the corners of southern Africa, and allowing the

information starved automotive aftermarket in these areas to meet

the manufacturers and to have one on one sessions on product

information, technical queries, and matters of general interest.

Colin Murphy, Chairman of Partinform, told the 120 high qual-

ity attendees, who represent the cream of the local crop of the

automotive aftermarket, that Partinform is made up of manufac-

turers with “ ‘n goeie agtergrond”, i.e. an impeccable pedigree

which translates into quality in all its facets. Colin continued,

“Quality is not just product quality. Quality also means original

equipment contracts, aftermarket service, availability, after sales

service, warranty support, technical back-up, range development,

technological advancements, genuine parts, and all the good

things associated with companies who are proud of their brands

and are prepared to go to extraordinary lengths to back up these

brands”. Colin also told the enraptured audience that “many

motorists are keeping their cars longer. This does not mean that

they are not looking after their cars. In actual fact most motorists

are looking after their cars better than before, so they look for

quality orientated spares shops and workshops, who have quali-

fied salesman and qualified technicians, and who can advise them

on branded quality product. These spare shops and workshops

also have a name to protect, and the best way to protect this name

is to rely 100% on well known brands, and to avoid white box

product like the plague.”

P a r t i n f o r m

Sandstone Ridge

J u n e 2 0 1 064

Witbank is named after the white sandstone ridge on which it is situated, on the highelevation plateaus of Mpumalanga. Renamed eMalahleni (place of coal) in 2006,Witbank and its sister city Middelburg are bang in the middle of vast coal deposits,which feed a massive mining industry and many power stations and a steel mill.

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65J u n e 2 0 1 0

Colin Murphy also made reference to the new elephant in the

room, which is the CPA (Consumer Protection Act). The CPA,

when it comes into full effect in October 2010, will really set the

cat amongst the pigeons. The cat is the consumer, and its sharp

claws will be the legal eagles looking for an unsuspecting mouse

in the field. The pigeon pie will made up from those who deal in

inferior/counterfeit/unknown brands. What this alliterative and

metaphorical blast means is that the law will make mincemeat

(there we go again) of the retailers who dabble in “Fong Kong”

product, because the CPA makes no distinction between fitters,

retailers, wholesalers, distributors, manufacturers, middle men,

agents, whoever, when it looks for culprits. All will be responsi-

ble, and the easy target is going to be the retailer and fitter,

because they are on the front line. No longer will “Honest Joe’s

Spares Shop” be able to pass the buck, and just replace when con-

fronted by an angry customer. Honest Joe and the middle men

will need to trace the part back to the original manufacturer to get

redress. If Honest Joe cannot do that, his nether regions will be

on the line, because the sanctions will be extremely tough,

covering consequential damage as well. The solution – only deal

with reputable suppliers who deal with reputable manufacturers.

The ultimate solution – look for product that comes from local

manufacturers, who will give the best support. It is as simple as

that. And don’t think that the CPA will be handled as ineffective-

ly as other crime in this country. As Colin told the audience,

“Moenie dink dat ons het nie die mannekrag om die wet te pas

nie” – this is effectively a unique consumer law based on

Canadian jurisprudence which gives the consumer the teeth, and

teeth like a Rottweiler. Our ineffectual law enforcement palookas

will play a small ancillary role in administering the bite.

Rob Stone, Group Sales Manager for Filpro (Pty) Ltd, urged the

attendees to also look at their loyalty to the country. He pointed

out that Partinform represents manufacturers that have invested

heavily in South Africa. Rob said that, “over and above manufac-

turing facilities, the Partinform members have also invested in

other infrastructure and personnel, covering aspects such as

inventory back-up, after sales support, technical backup, range

development, and the like.” Rob added that these organisations

have also spent significant amounts on brand development, and

are continuing to invest heavily in their brands through market-

ing activities such as above and below the line advertising, prod-

uct support and related activities. He contrasted this approach to

the purveyors and hawkers of “Fong Kong” product, whose sole

investment is in a couple of containers packed with white box

product, and who operate from a small office with a

telephone/fax line, and an exotic e-mail address. ABR supports

these sentiments wholeheartedly, and welcomes the commitment

of the local manufacturers to their brands, and particularly their

commitment to keeping these brands highly visible through the

medium of the local media; another imperative for patriotic man-

ufacturers. This is how a brand’s integrity and longevity is assured,

and an investment in brand advertising is a subliminal vote of

confidence in your own brand, and a declaration that South

Africans need to communicate their strengths strongly via their

own brethren, to support each other, and vitally a clarion call and

affirmation that “local is lekker”.

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66 J u n e 2 0 1 0

The Witbank manne werethere to learn. ABR spoketo some of them:

Lenn Lutter, Manager of Always Towing in Witbank, was very impressed

with the overall setup of the show and found it greatly beneficial from a net-

working point of view. He said, ‘This is a great opportunity to meet people

in the industry and get to know the various products available. For people

who are stuck behind a desk and don’t get the chance to network, this show

is a must.” In pic with Lenn: Hermanus Viviers (Account Manager), Marius

Viviers (Owner)

Typhus Mongala of

Diesel Electric Witbank

was very glad to finally

put faces to the names

of his customers and

suppliers. ‘It’s great to

finally meet the people

I deal with on a daily

basis face-to-face. This

show is also a fantastic

place to create new

business and make new

contacts.’ said Typhus.

Thavi Aromogum of Mecca Motorspares in

Witbank found the various catalogues avail-

able very useful, especially with a representa-

tive from the companies on hand to answer

any questions. He said, ‘The show provides

great business opportunities, as well as prod-

uct information which is invaluable. It is an

excellent platform for networking and meet-

ing people in the industry.”

Shakeel Mohameed of Hassens Motors in

Witbank liked the fact that the show

brought the big industry players together in

a convenient environment. ‘The show is fan-

tastic in that it is easy to make contacts and

meet important people from the industry.

Business opportunities are readily available

as well as product information. I would like

to see more catalogues though!’ he said.

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67J u n e 2 0 1 0

None greater than the opportunity to drive a Ferrari racing car at thePartinform Forza Racing Driving Experience at the Zwartkops Race

Track in Pretoria on 25 November 2010. An ecstatic Michael Ferreiraof Battery Centre celebrates the opening of the lucky suitcase.

The Partinform committee introduced a new inno-

vation at the Umtata show in March this year –

the Retailer of the Show and at the end of the year

the Retailer of the Year, judged by the members of

Partinform. The carrot awaiting the overall win-

ner at the end of the year will be a Forza Racing

Driving Experience in November. The criteria includes image,

store layout, professionalism, product support, customer relations,

attitude towards quality, commitment to “doing the right thing”,

and the key element, the retailer’s approach to branded quality

product vis a vis white box product, and his support of the

Partinform show. The winners to date are Buffalo Midas Umtata

and Motovac Gaborone. Joining them from Witbank will be

Witbank Midas Parts Centre, which received a close to unanimous

vote of all but two at the Witbank show. Definitely not a hung par-

liament! ABR spoke to Herman Coetzee, the Manager of Witbank

Midas, who had brought many of his customers along to partake

of the knowledge transfer available at the show. Herman is

Witbank born and bred, so he knows his customers intimately.

And it is his customer orientation that puts him in a league of his

own. He confidently assured ABR that if we asked any of his cus-

tomers at the show if they were happy with the service provided by

Witbank Midas, that the answer would be in the affirmative, and

we are pleased to report that we could not find any evidence to the

contrary. Herman’s formula for success is based on branded quali-

ty product, garnished with superb after sales service. Herman is

also enthusiastic about the impending Consumer Protection Act.

He welcomes this act, because “it will sort out the bad boys”. The

bad boys he is referring to are those who dabble in product of

dubious quality and of unknown origin. Herman also pointed out

that Witbank Midas is part of a larger group of seven Midas stores,

owned by Eddie Moss, another native of Witbank. Eddie has two

Midas stores in Witbank (the other being a satellite store, Stadium

Midas, serving Witbank’s emerging market), two stores in

Middelburg (Middelburg Midas and a satellite store, Mountain

View Midas), two in Pretoria, and one in Bella Bella (Warmbaths).

All these stores subscribe to the same philosophies of Witbank

Midas, so it is heartening to know that the gospel of branded qual-

ity product is being spread far and wide.

There are many winners at the Partinform shows, withmany great prizes.

Retailer of the Year Competition

Herman Coetzee with colleaguesAlfred Gustafson and Nico de

Bruyn at the Witbank Partinform

Page 70: Automotive Business Review June 2010

J u n e 2 0 1 068

To win a Forza Ferrari Racing Experience on 25 November 2010 at Zwartkops,all expenses paid, all you need to do is answer these three simple questions, andfax to 086 6579 289 or e-mail [email protected]:

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. Which store was the Retailer of the Show at the Witbank Partinform?

2. What does CPA stand for?

3. Which quality brand features on the front cover of this month’s edition of ABR?

Name and Surname: __________________________________________________________________________________

Company: ___________________________________________________________________________________________

Position: ____________________________________________________________________________________________

Postal Address:_______________________________________________________________________________________

Contact Tel. no’s:_____________________________________________________________________________________

e-mail address:________________________________________________________________________________________

ABR came across a new face at the Witbank

Partinform. He is Jacques van der Lely, the

newly appointed National Marketing and

Sales Manager of Safeline Brakes (Pty) Ltd.

Jacques began his braking career on the 3rd May

2010, and so the Witbank show was his first

Partinform experience, but definitely not the last, as

there are still four Partinform shows to go for 2010 –

the FIFA World Cup will first be allowed to take over

South Africa in June and July, then it will be back to

the serious business of quality branded parts -

Newcastle on 17 August 2010, Polokwane on

21 September 2010, Rustenburg on 19 October

2010, and finally Soweto on 9 November 2010. The

grand finale for Partinform will be the all day Forza

Ferrari Racing Experience shindig at Zwartkops

Pretoria on 25 November 2010, when all the prize

winners from the various shows, plus the Retailer of

the Year, plus three lucky ABR readers, will show their

prowess in the red and yellow beasts from Maranello.

A New Face

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I n d u s t r y I n n o v a t i o n s

J u n e 2 0 1 072

Leaders in off-road technology

Tenneco has always been at the forefront of developingadvanced ride control technologies and adding newdimensions to performance and very importantly,safety. And off-road is no exception. Monroe’sresearch and engineering team has developed the bestshock absorbers for 4 x 4 vehicles, perfectly adapted tothe off road drivers’ needs. The innovative design ofthis special shock absorber offers you the freedom ofdriving your 4x4 wherever you want to go…

OFF-ROADING WITH RANCHOMyRide illustrates Rancho's commitment to developing products that

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Rancho’s all new RS9000X Pro-Series shock absorbers is seen to be the

ultimate formula for off-road, providing a more consistent performance

over a longer period. The standard tri-tube 9-way adjustable RS9000XL

series without the remote reservoir is available as a stock item in South

Africa.

Noted as the industry's first company to introduce adjustable shock

absorbers, Rancho launched the Rancho MyRide Tuning System in its

RS9000XL and QuickLIFT shock absorbers, which include a combina-

tion of Rancho innovations, like a patented tri-tube, mono-flow design

and oil flow metering system Wireless Controller. Designed for a wide-

range of driver profiles, from the casual truck enthusiast to the dedicated

off-roader, the new Rancho MyRide Tuning System makes it easy for any

driver to adjust the ride from firm to soft and anywhere in between, mak-

ing ride control simple and precise.

The Wireless Controller includes a variety of one-touch presets, including

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Benefits of MyRide in brief:• Operates on an RF band width to avoid interruption

• Is water-resistant

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For more information about Rancho suspensions, shocks and other

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Rancho is at the forefrontof designing technologiesthat the enthusiastdemands... even if it iscompletely cutting edge aswas previously withRancho's all newRS9000XL Pro-Seriesnever seen in the industry

Page 75: Automotive Business Review June 2010

Robbie Wolk has won the S.A. Karting

Championships three times, and he has bagged

the Formula Ford Championship another three

times, in 2004, 2005, and 2008. And the 2010

championship is in his sights, with the added

incentive of being invited to the Formula Ford

Festival at Brands Hatch, England, in October 2010. Robbie got

his taste for speed at an early age, roaring around East London’s

dirt tracks at five years old in a Pee Wee 50cc two stroke mini bike,

until his mom put a stop to it. But the racing bug had bitten, and

with his family being house friends with the Schekters, his fate was

sealed. Robbie progressed to karting, and by the age of 15 had

three SA championships under his belt. Formula Ford beckoned,

and apart from a brief sojourn in production cars in 2006 and

2007, racing BMWs and Mini Coopers, Robbie has been a

dedicated follower and participant in this enthralling entry level

single-seater formula.

Formula Ford was created in the UK in 1966 with the intention

to provide an affordable form of single-seater racing, and its

longevity and popularity is testament to its success in this endeav-

our. The cars in this formula originally ran on road tyres and used

road gearboxes, but today are far more sophisticated, using full

racing suspension setups but not allowing wings for aerodynamic

down force, and specifying a steel space-frame chassis. Thus top

speeds are high, with lower cornering speeds, which guarantees

exciting racing. In South Africa, Formula Ford has two classes. The

entry level class uses an1800cc 16 valve Zectec engine, whereas the

top guns use the lighter and more powerful 1600cc DOHC 16

valve Duratec engine, improving lap speed times by over a second.

Robbie Wolk says that whilst Formula Ford has produced

champions such as David Coulthard, Jenson Button, Emerson

Fittipaldi and Jody Scheckter, he does not have greater ambitions.

It is very difficult for South African racers to progress to the

bigger formulas internationally, so Robbie accepts that he is one of

the older racers in the South African series, at the ripe old age of

24. He approaches his racing as a hobby, and apart from some golf

in his spare time, Formula Ford is his sport. He is also extremely

grateful to Ian Schofield of Invest Chem for Ian’s commitment to

keeping the formula alive in South Africa, and he is ecstatic that

Midas is back in motor sport. Midas is the sponsor of the Formula

Ford Series for 2010. Robbie says that “It’s great to have Midas

back in the fold. It is important for automotive parts companies to

be involved in the sponsorship of motor racing. Formula Ford is

particularly relevant, as its parts are locally sourced. Single-seater

racing is also the purest from of racing, and as it is a nursery for

talented youngsters, Midas is contributing to the development of

the sport”.

The 2010 Midas Formula Ford Championship is very competitive

this year, with 18 entrants and three former champions competing

for the big prize. The Formula Ford Festival awaits the champion,

and Robbie is confident that he will be taking the flight to

Heathrow. He is leading the local championship, and he hopes to

have the chance to improve on his 2005 showing at Brands Hatch,

which was a credible 3rd spot in the semi-finals, and an impressive

5th position going into the final lap of the finals.

M i d a s S p o r t

73

Formula for Success

J u n e 2 0 1 0

A series of articles on Midas motorsport initiatives in 2010

To win a championship, whether it is national or international, requires talent, dedication, passion, commitment, and sacrifice. Just ask GraemeSmith. Thus it was no surprise to discover at the Zwartkops Raceway on themorning of Saturday, 15th May 2010, six times National Champion RobbieWolk hard at work, practising in his Midas Sport Formula Ford, andpreparing for the next Protour event at Phakisa the following Saturday.

Robbie Wolk takes a break from practiceat the Zwartkops Raceway.

Page 76: Automotive Business Review June 2010

S p o r t

J u n e 2 0 1 074

FIA World Touring Car Championship:

Schaeffler Automotive Aftermarket, Technical

Partner of BMW MotorsportWith 22 exciting races in 11 countries on four continents, the 2010 World TouringCar Championship (WTCC) once again offers motorsport at its very best. AndSchaeffler Automotive Aftermarket is onboard. After its debut as official sponsor ofTeam BMW in the 2004 European Touring Championship (ETCC) and several years asofficial partner of BMW in the FIA WTCC, the Aftermarket specialist is now technicalpartner for BMW Motorsport for the first time in this year’s championship series.Schaeffler Automotive Aftermarket is prominently displayed with its company brandsLuK and INA on the 280 PS BMW 320si WTCC, the overalls of its pilots and teamclothing.

Last year’s championship series achieved record popularity among motorsport fans with 75 television networks broadcasting

to more than 430 million viewers in over 160 countries. This year’s WTCC sponsorship gives Schaeffler Automotive

Aftermarket an outstanding opportunity to further strengthen customer relations and industry contacts, while underscoring

its commitment to the international motorsport scene – with its company brands LuK as clutch and transmission specialist;

and INA as specialist for engine, transmission and chassis components, as well as for rolling bearings.

This season, Andy Priaulx and Augusto Farfus are competing for points and podium honours together for the first time as pilots for the

BMW Team RBM. WTCC race events are held on a single weekend and consist of two racing sessions. The top eight finishers of the

first session begin the second session of the weekend in reversed order. Points are awarded in a way analogous to Formula 1 (25, 18, 15,

12, 10, 8, 6, 4, 2, 1).

This year’s BMW 320si WTCC model is the latest in a long line of highly successful 3-series racing models with decades of touring

victories. Prior to this season, BMW has won a total of 24 European and seven world touring car championships. The BMW 320si

WTCC was developed out of a special edition BMW 320si. Like the production model, the motorsport version is powered by a

high-performance 2-litre inline four-cylinder engine.

After the season kicked-off in Curibita, Brazil, the next WTCC races were held on 2 May 2010 in Marrakech (Morocco).

A complete racing schedule, results, team information as well as a comprehensive service area with picture gallery is available at

www.schaeffler-aftermarket.de/races.

Schaeffler Automotive Aftermarket, Technical Partner of BMWMotorsport, with pilots Andy Priaulx (left) and Augusto Farfus (right).

The BMW 320si WTCC front spoiler with partnership logos of the brands LuK and INA –

Schaeffler Automotive Aftermarket,Technical Partner of BMW

Motorsport.

Page 77: Automotive Business Review June 2010

75J u n e 2 0 1 0

F1 Fans Wishes soon to be Number OneAfter years of producing fairly boring, dreary, predictable motorraces, Formula 1 from its supremo Bernie Ecclestone down to teamowners, sponsors and drivers are realising something. If they wantto hold onto TV audiences, circuit audiences worldwide on a Sundayafternoon, their show has to improve.

F a s t W h e e l s

by Roger McCleery

Answers From page 12

1. Nissan

2. Hergen Fekken

3. Volkswagen Polo

4. Isuzu

5. 170 km/h

6. The biggest agricultural

show in South Africa held in

Bothaville

7. Jan Hartzer

8. South Africa’s

(a) First Motorcycle Museum

(b) International Airport

(c) Host biggest Yacht Race in

the world

(d) Biggest collection of differ-

ent birds

9. Isetta

10. New Zealand

11. Giuseppe Farina

12. Nissan in Sunderland in the

United Kingdom

13. Pierre Terblanche

14. Motorsport South Africa

15. The Mosquito

16. Lewis Hamilton

17. 191 cc

18. Daimler

19. France

20. Denny Hulme

The Spanish Grand Prix in Barcelona brought this home,as did Bahrain. Monaco, which has been special since1928 with all the beautiful people in attendance, yachtsin the harbour and the coastline on the South of Franceon view, is always expected to be a procession. It was

again this year with the first six cars staying line astern throughout the70 laps, despite the safety car coming out four times. Highlights werespectacular crashes and Alonso coming from his start in the pit road,right up through the field to 7th spot at the end. Valencia in June andthe Hungaroring in August will be a procession. Boring. With pass-ing only in the pits or at pit stop time. The pole position driver willwin if he makes it to the first corner in the lead. Different tyre com-pounds that have to be used, the introduction of compulsory pit stopsand other rules, like drive-through penalties, are not the answer. AllFIA controlled racing in the world is fairly predictable because rulesare made by engineers or people at the factory, and not by marketingpeople. An engineering committee met two years ago to improve pass-ing in F1. We have seen the result. Processions - unless it rains, whenthe cars are neutralised and the entire team gets involved in the racing.Look, technology is one thing and Formula 1 oozes it and lives on theedge of the ultimate – they can do anything with these cars today butits benefits must be, certainly in Formula 1, to entertain the peoplewho watch it at great cost. Who cares whether a lap-top computer canset up your car from the pits. The American Champ cars pass. Theypass at Indy. In Nascar where they enjoy the biggest crowd in theworld all from one country, passing is constant. Our Formula Fordand Formula Vee single seater races in South Africa are probably thebest racing we have with the results undecided until the flag. Twowheelers, by the way, particularly the World Superbikes, show the wayand produce the best racing on the planet. Maybe it is not as well pro-moted as Formula 1, which is well known. But it supplies the goods.Constant, exciting entertainment. So F1 jack up. You are supposed tobe the number one motor sport in the world. Your processions makepeople believe that all motor sport is like that. It isn’t. Qualifying isprobably the best spectacle we have in F1 racing as far as excitementgoes. Make the wings smaller, or a standard size, as the Americans dofor either oval or road races. Let the teams design their own cars.Gordon Murray said this a long time ago. Give them the maximumlength, height and width and let them get on with it. There are somefantastic designers around. Pull the stickers off the current cars andthey all look the same other than for the odd wing or two. Maybe evenmake engines free. If you want to use turbos or big capacity engines ortiny ones, that is up to you. It would be amazing what these guys couldcome up with. Let them have as many pit stops as they like at anytime, or not at all. Pit stops don’t add to the excitement. They justmess up any potential dice. If penalties have to be given out for aninfringement advise the team during the race as they used to do.

Tell them they have been penalised so that they can something aboutit before the end. Don’t have drivers driving through the pit area andruining a good race for the public. If you come halfway around theworld to see any driver in action, you would be fairly upset if he wastaken out of the running through some little thing like crossing awhite line etc. Increase the Formula 1 field and have qualifying todecide the ideal number. How can a world championship be a worldchampionship when it is a closed shop only to people who have€100m to get in and it is not even run on every continent - no USAor Africa. Some of the positives from the 2010 Formula 1 season is wehave had four different winners at six GP’s so far. There is new foundspeed and handling of the Adrian Newey designed Red Bulls. He usedto design cars for McLaren. We have more teams going for a win withMcLaren, Ferrari, Red Bull and Mercedes Benz. Some of the others areclosing in. Force India, Renault and Williams Sauber Ferrari (strangesounding name that), Toro Rosso, Virgin, Lotus and HRT have someway to go. Young drivers also coming to the fore. Bruno Senna hasbeen in a bum car. Alguersuari at only 20 shows that he is one of thebest as is 22 year old Sebastian Buemi. The 26 year old Russian, Petrov,shows promise. Who would have thought we would ever have aRussian in Formula 1? 23 year old Sebastian Vettel is a champion-elect. With Nico Rosberg (25) another top driver. MichaelSchumacher getting more seat time as predicated needs a car that suitshis style of driving. But he is getting on the pace and is much happi-er. Still it is unbelievable to think what he has done at 41 years, afterbeing out of racing for three years. Besides the talk of how to get theFormula 1 act jacked up, is another question.Who is going to providetyres in 2011? Bridgestone have completed their series contract andhave done it well. Grand Prix Racing would like them to remainbecause teams are used to their rubber and how to set up their cars.So big talks are going on behind the scenes to keep them in place.Bernie, it has been said, would even buy tyres from the tyre people andthen sell them to the teams. As many as 6 separate bids from tyre mak-ers have been received by the FIA and the Formula 1 Committee hasto decide soon. Michelin wants to supply the rubber but only for halfthe field. They also want to sell the tyres @ €3m per year per team.They would like to see 18 inch wheels but have changed their mindsback to 13 inches as used at present. Cooper / Avon staked their claimas well. Pirelli want it as sole suppliers, while Kumho from Koreawould do wonders for the racing, Korea and their Company.

The decision is expected soon.

Now it is off to Turkey with its high speed corners and heavy braking areas, and then on to Montreal Canada for Round 8.

Page 78: Automotive Business Review June 2010

Here is some hope for anyone over 60 ............

J u n e 2 0 1 076

1. Pat Glenn, weightlifting commenta-

tor – "And this is Gregoriava from

Bulgaria. I saw her snatch this morning

and it was amazing!"

2. New Zealand Rugby Commentator -

"Andrew Mehrtens loves it when Daryl

Gibson comes inside of him."

3. Ted Walsh - Horse Racing

Commentator - "This is really a lovely

horse. I once rode her mother."

4. Harry Carpenter at the Oxford-

Cambridge boat race 1977 - "Ah, isn't

that nice. The wife of the Cambridge

President is kissing the Cox of the

Oxford crew."

5. USPGA Commentator - "One of the

reasons Arnie (Arnold Palmer) is play-

ing so well is that, before each tee shot,

his wife takes out his balls and kisses

them ..... Oh my god!!!!! What have I

just said?!!!!"

6. Carenza Lewis about finding food in

the Middle Ages on 'Time Team Live'

said: "You'd eat beaver if you could get

it."

7. A female news anchor who, the day

after it was supposed to have snowed

and didn't, turned to the weatherman

and asked, "So Bob, where's that eight

inches you promised me last night?"

Not only did HE have to leave the set,

but half the crew did too, because they

were laughing so hard!

8. Steve Ryder covering the US Masters:

"Ballesteros felt much better today

after a 69 yesterday."

9. Clair Frisby talking about a jumbo hot

dog on Look North said: "There's

nothing like a big hot sausage inside

you on a cold night like this."

10. Mike Hallett discussing missed snook-

er shots on Sky Sports: "Stephen

Hendry jumps on Steve Davis's misses

every chance he gets."

11. Michael Buerk on watching Phillipa

Forrester cuddle up to a male

astronomer for warmth during BBC1's

UKeclipse coverage remarked: They

seem cold out there, they're rubbing

each other and he's only come in his

shorts."

12. Ken Brown commentating on golfer

Nick Faldo and his caddie Fanny

Sunneson lining-up shots at the

Scottish Open: "Some weeks Nick likes

to use Fanny, other weeks he prefers to

do it by himself."

And finally, some words of wisdomfor those companies wondering whythey’re not growing:

The man who stopsadvertising to save

money is like the manwho stops the clock to

save time.

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

As we get older we sometimes begin to doubt our ability to "make a difference" in the world. It is at these times that our hopes are

boosted by the remarkable achievements of other "seniors" who have found the courage to take on challenges that would make many

of us wither. Harold Schlumberg is such a person. “I've often been asked, 'What do you old folks do now that you're retired'? Well,

I'm fortunate to have a chemical engineering background, and one of the things I enjoy most is turning beer, wine, and other alcoholic

beverages into urine.

Body language: Karkaskletter

Blind date: Steekproef

Boere G-string: John Deertrekker

Breakdown: Kroktrok

Bicycle: Draadkameel

Boffin: Komper-Pomper

Aftree: Kierieverlof

Call girl: Roepkoek

Cockteaser: Morswors

Cycle pants: Voëlverklikker

Entrepreneur: Inisiatiefdief

Face-lift: Hysbakkies

Fart: Holtoeter

Pimp: Hoerherder

Kaalvoet: Kalahari-nikes

Crash helmet: Kletterkappie

Quickie: Kommetjie

Maagwerkings: Drupdrol

Menstruasie: Steekweerder

Morning glorie: Uriene Monster

Onderhoud: Kierie Belasting

Premature ejaculation: Skietverdriet

Sales rep: Kommissiekabouter; koopseblief

Ski pants: Sellulietsokkies

Toilet skoonmakers: Drolpatrol

VIGS: Kiskoors

Afrikaans as a language is still evolving. It has to createwords every day. Here are some examples:

This is very old, but still worth bringing out every now and then for a laugh:

Page 79: Automotive Business Review June 2010
Page 80: Automotive Business Review June 2010