Automotive Business Review December 2009 / January 2010

The

Phoenix

Good Riddance to 2009 2009 was a watershed year for countries, companies, institutions, politicians and individuals, with practically no one exempted from its effects. The overwhelming majority were impacted negatively, with the result being a general malaise and a lacklustre approach from all and sundry, which does not really reflect reality. But, as the marketers will tell you, perception is fact, so the challenge is to go into 2010 with a new mood, and a new energy.

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rom an automotive industry perspective, 2009 was effectively a tale of two industries. For the new vehicle market, with a dramatic three year cumulative drop in unit sales, it was the worst of times, whereas for the automotive aftermarket, judging from the avalanche of anecdotal evidence, it was the best of times. The problem is that it is all anecdotal, as if the companies riding on the crest of an ageing car parc do not want to gloat or boast, preferring to look glum and nod in sympathy with their tortured siblings. It is also a form of a security blanket, which allows for decisions to be deferred and allowing time to see if the situation will continue. The psyches have indeed been deeply scarred by the misadventures of profligate brokers and bankers. Three recent automotive aftermarket conferences confirmed this prognosis, with all the presentations confirming the better than expected scenario, but no one shouting from the rooftops. Gordon Odgers, CEO of Midas, put it into a nutshell at the Midas Napa Convention 2009, when he said that “the really

good news is that in the automotive industry the aftermarket is the best place to be, despite the challenges.” This should be a call to arms for those sitting quietly on the sidelines. All the economists are saying that we are entering the sweet spot of the car parc; four to twelve year old cars are in the hands of the motorists to an extent not seen before, and the industry should not only be licking its lips in anticipation, it should be aggressively pursuing this market, in many proactive ways; leveraging working capital, advertising, marketing, sales promotions, and all those good things. But all I see is hesitation and hand wringing, the last refuge of insecure businessmen. Come on guys, get out of your funk, and do something to make things happen. The world is your oyster, and is there for the slurping. The automotive aftermarket has never been for sissies, but for goodness sake, all I see is handbags at twenty paces.

and Welcome to 2010….

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BR’s message is to drop this attitude, and to say sayonara to 2009, and to welcome 2010 in an entrepreneurial embrace. As part of this exercise, we have allocated a significant number of pages of our December 2009/January 2010 issue to what we call our “Appreciation Section”. Appreciation that we have seen 2009 through, no matter how good or bad the year actually was. And appreciation that 2010 is going to be better, much better, for all, but with the automotive aftermarket being “the best place to be”. The response from the progressive and appreciative AAMA members has been generally enthusiastic, and other similar minded companies have joined in the celebration. These will be the flag bearers of the 2010 renaissance. To those still on the fence, get out those whips and stirrups, put on your leathers, and ride the bronco with verve and dash. The beast wants to be tamed, but does not appreciate the limp wristed approach. Go get ‘em, cowboy!

ABR wishes its readers a restful and reflective year end. Use the time to charge your batteries and to mend relations with your loved ones, and then …. Come out Smoking.

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Contents

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84

87

2

The Phoenix

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What’s the Buzz

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e-CAR

National e-CAR Indaba 2009

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Show Time

Tyre Expo 2010

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The Chery Story

The Toughest Test

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Auto Topical

The 2010 World Cusp

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Frankly Speaking

2009 – A Watershed year

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Intelli-Driving

Safe Driving Tips

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Appreciation Section # One

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Tony’s Take

King II est mort, vive King III

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Weighty Issues

The Hope Fades

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Appreciation Section # Two

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Top Class Topics

Working Hands Aren’t Always at Work

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Health Care

An Update on Moto Health Care

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Commercial Vehicle News

Peugeot Introduces the Tepee Peugeot Increases its Commercial Vehicle Footprint

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Tyre Safety

Tyres’ Contribution to Safety in Motoring

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Personal Profile

Q & A with Dave Powels

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AIDC Quiz

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Customer C.A.R.E.

Good Riddance to 2009

Customer Relationship Management Trilogy Customer C.A.R.E. Programme

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

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Publishing Editor Graham Erasmus 083 709 8184

Intelli-Driving Editor Eugene Herbert 082 941 3785

Commercial Vehicle Editor Alwyn Viljoen 082 458 9332

Correspondents Beeton, Frank Borlz, Baron Claude Burford, Adrian Gamble, Austin

Hogg, Gilbert Keeg, Howard Macaskill, Richard McCleery, Roger Twine, Tony Wilde, Fingal Published by: Trilogy Publishing

Advertising Sales: Stanton Porter Marketing Tel: 012 654 2745 e-mail: [email protected] Marlene Erasmus 082 837 2668 e-mail [email protected]

Contents

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101

106

72

Diamond Dialogues

Opening the Doors of Perception to Standards and Controls – Part Two

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AAMA Alert

Currency Challenges

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Partinform

River Deep, Mountain High

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Capricorn Insights

A Helping Hand

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Launch Technologies

Launch’s Silver Bullet

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Partinform

What They Were All Waiting For!

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Diesel-Electric Convention

Robert Bosch Announce New Workshop Franchise

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Industry Update

The end of an era

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Vehicle Evaluation

The Z Car

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Industry Update

Passing the Baton

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Life Goes On

Restoring the Status Quo A New Sunrise

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Market Research

Quality, Service, Satisfaction – the Manufacturers Respond

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Burford on Brands

A Reliable Citizen

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Vehicle Evaluation

A Capable Commuting Vehicle Champ All You See

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Two Wheels

The Sting in the Tale

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Hogg’s Wash

Wolf Whistle

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Corporate Conscience

Putting Something Back Fore a Good Cause

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Fast Wheels

Formula S Scandal Ridden Formula One Season Closes

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Wilde Things

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The Last Writes

Get Thee to a Nunnery, Sir!

Editorial Office: 81 Alma Road Wendywood Tel 27 11 656 2198 Fax 27 11 802 3979 e-mail: [email protected] Website: www.abrbuzz.co.za

Subscriptions and Data Management: Trilogy Trading & Promotion P O Box 69 Wendywood 2144 Tel 27 11 802 6020 Fax 27 11 802 3979 e-mail: [email protected]

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Design and Reproduction: j. Kraft Information Design cc Tel: 012 997 6946 Fax: 012 997 6987 e-mail: [email protected]

Printing: Business Print Centre, Pretoria Official Mouthpiece of

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What’s

the

Buzz?

SUZUKI ALTO ACHIEVES 1.67 LITRES PER 100KM IN CITY DRIVING

suzuki@suzuki-media

After a successful New Zealand North-South drive at an average of just over 3.5 litres/100 km last month, the highly fuel efficient Suzuki Alto has taken part in a further fuel efficiency marathon, this time down through Australia, managing to complete the journey at an average consumption of 3.2 litres per 100km overall, an 18.5 per cent improvement over the official Australian combined figure (+13 per cent over European figure) and a staggering 2.0 litres per 100km attained in City traffic – the lowest recorded of any entered vehicle. The Global Green Challenge ran North-South from Darwin to Adelaide and placed conventional and alternative fuel cars against each other in a 3000km real world test. The winner of the challenge was the vehicle judged to have recorded the biggest improvement over its official fuel consumption figure. Alto won the ‘Light’ and ‘Small’ car categories; ‘best urban cycle’ category and an overall CO2 emission of 89.9g/km, using just 123 litres of fuel for the seven day trip.

South Africans move toward eco-friendly vehicles CO2 emissions are becoming increasingly topical, as they are one of the contributors to global warming. A total of 17 % of global CO2 emissions generated by industrial and combustion processes can be attributed to road transport, and reducing such emissions is therefore one of our most important goals. The key is to lower the fuel consumption and to make our vehicles more efficient and environmentally friendly in general. “To this end Mercedes-Benz Cars is pleased to report year-to-date sales of the C-Class C180 Kompressor BlueEFFICIENCY model of 3 481 units which amount to 33 % of the local C-Class sales,” says Eckart Mayer, Divisional Manager at Mercedes-Benz South Africa. Total sales for the C-Class model range in October reached 1 010 units, representing a market share of around 43 % in the medium luxury segment. The newly introduced E200 CGI BlueEFFICIENCY has already made great inroads in the market. Total E-Class sales amounted to 232 units, of which 69 were E200 CGI BlueEFFICIENCY models. This equates to 30% of total E-Class sales. “We are pleased to note that our customers are becoming more and more eco-conscious, as can be seen by the success of our BlueEFFICIENCY models, launched this year,” concludes Mayer.

GM Board Decides to Retain Opel Given an improving business environment for GM over the past few months, and the importance of Opel//Vauxhall to GM’s global strategy, the GM Board of Directors has decided to retain Opel and will initiate a restructuring of its European operations in earnest, it was announced early November. “GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”

Award for outstanding technology The Schaeffler Group has added another renowned award to its comprehensive collection with the “Outstanding Technology 2009 Award”. This important prize is awarded by the Society of Automotive Engineers (SAE) based in the USA. The award for “outstanding technology” was presented during the SAE Technology Congress held in São Paulo in October. Among the milestones in innovation presented in Brazil, such as the dry double clutch for direct-shift transmissions and the twin tandem ball bearing, the jury of experts particularly honored the world’s first fully-variable hydraulic valve control system UniAir. UniAir has been in production since May 2009 and is used by Fiat and Alfa Romeo in the MultiAir models of the MiTo and Punto Evo

series. A total of 123 technical innovations were presented to the 8,500 visitors during the threeday technical conference. 17 of these innovations came from the Schaeffler Group. The decisive factors for the jury’s decision were the product advantages of the fully-variable valve control system, i.e. the significant reduction of fuel consumption and emissions while improving the performance of the engine, and the technical implementation of the concept in the development of a volume produced product. “There is probably no better occasion for a technology award than a renowned technology congress,” explained Sergio Pin, Vice President Automotive Sales and Production Development of the Schaeffler brands INA and FAG in South America.

The Renault-Nissan Alliance, the CEA and the FSI sign intent to create a joint venture to develop and manufacture batteries for electric vehicles in France A letter of intent was signed on 5th November 2009 in Flins between the Renault-Nissan Alliance, the French Atomic Energy Commission (CEA) and the French Strategic Investment Fund (FSI) to set-up a joint venture company that would develop and manufacture batteries for electric vehicles, under the patronage of Christian Estrosi, the French Minister for Industry. Renault, Nissan and the CEA would bring technical expertise and infrastructure support in addition to an equity investment. Consistent with the continuous support and proactive policies of the French government towards zero emission mobility, FSI will join the project and contribute to 125 million Euros. In order to complete the financing of the project, the European Investment Bank (EIB) is considering a loan of up to 50% of the 280 million Euro debt financing. The joint venture between Renault, Nissan, CEA and FSI would focus on advanced research, manufacturing and the recycling of electric vehicle batteries. The joint venture plans to produce batteries from mid 2012 at the Renault Flins plant, located 30km from Paris. Production capacity is targeted at 100,000 batteries a year. The investment value of the first phase of the project is estimated at 600 million Euros.

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Exhilaration. Emotion. Evolution What a great start. The first cars are barely off the production line and already the first all-new Lotus in 15 years, the Evora, is winning awards. Not just any awards either. How about CAR Magazine’s (UK) prestigious 2009 PCOTY Award. The starting field of 30 performance cars was divided into 5 groups with the Evora being lined up at Rockingham Race NEVER IN THE S.A. AUTOMOTIVE INDUSTRY Circuit against the Porsche Cayman S, Audi TT RS, Nissan 370Z, BMW Z4 3.5, Infiniti G37 and Mazda MX5 in the sports cars category. With HISTORY HAS THERE BEEN A MORE CRUCIAL less than a second separating the Porsche, Audi and Lotus, the lap times TIME FOR AN AFFORDABLE AUTOMOTIVE were sizzling. The cars were assessed, pushed and scrutinized in detail. And then there were five. The finalists in their respective classes were the COMPONENT AND TECHNOLOGY SHOW! Lamborghini LP670-4SV, Mercedes-Benz E63 AMG, Renault Clio Cup 200, VW Golf GTi and the Evora. And the overall winner, the Lotus Sayings of old, such as: “When the going gets tough, the tough get going” Evora. The Lotus Evora will arrive in South Africa in early 2010. It will and “Ask not what your country can do for you? But what YOU can do for your Country” - truly apply to the times we are going through at present. It retail for R 899 000. is a time for creativity and doing our bit to make a difference in our own back yard. Our industry needs every ounce of positive stimulation that it can get and the WATS Expo (Workshop Aftermarket & Technology Show) had this in mind from as far back as 2005. WATS is perfectly aligned, willing and able to do just that. Where else can exhibitors get a 3x3m Stand with a Basic Shell Scheme for a mere R 4,950.00 plus Vat? Only at WATS! A Big Bang for your hard pressed Buck! Have you registered for your stand s a distributor of automotive spares for over 25 years, ACSA- yet? 24-25th March 2010 @ The Pretoria Show Grounds. WATS for 2010 MAG has grown to become a leading distributor of auto-elec- will run for 2 days, in the same week as the Heavyweight Expo that also trical spares throughout the KwaZulu-Natal region, offering a takes place at the Pretoria Show Grounds from 23-26th March 2010. Will massive range of high-quality branded automotive aftermarket you play your part in stimulating our Industry in 2010? Or will your comproducts including ACSA-MAG, BRITAX, MAG BRAKES, TRUCK- pany be “Inconspicuous by its Absence” - a powerful quote from a pioneer LITE, WARN, COME UP, UNIONTECH, TERRIER ! and ECH- of the original WATS planning Team. Activity breeds interest! Activity LIN. The company was also appointed by Control Instruments makes things happen! Activity kills lethargy! Activity is Healthy! Period! A Automotive as one of its distributor for KZN and has recently taken on second show is planned in September or October 2010 in Bloemfontein, for the distribution throughout the province for HELLA automotive which HUGE interest has been shown, some stands already tentatively wiring. The company also has a subsidiary business - FIXEM POWER reserved even before the Floor Plan has been formulated! The organisers will STEERING & SUSPENSION SPECIALIST, which has three branch- finalise the Venue and Date for this show by the end of November 2009 and es in the region offering repairs to power steering systems (racks and will make the details available on the WATS website during pumps), conversions from manual to power steering and repairs to vehi- December/January and in their WATS January 2010 Press Releases. For furcle suspension. ther information visit www.wats.co.za where you can also register on-line or contact Miranda on: 082 9680 214 & [email protected] or Johann on: 082 5515 061 & [email protected]. The WATS Expo’s are fully Endorsed by the Tel 031 312 1030, Fax 031 312 1070 RMI (Retail Motor Industry Organisation of S.A.)

ACSA-MAG now also distributing TERRIER!

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e-mail [email protected]

FINALISTS ANNOUNCEMENT - 2010 SAGMJ / WESBANK CAR OF THE YEAR A vote consisting of the full members and a jury made up of 30 selected members of the SAGMJ have chosen the following eight finalists to partake in the 2010 SAGMJ / WesBank Car of the Year competition to compete for honours in the country’s premier motoring event:

Alfa Romeo MiTo 1.4i Turbo Petrol Audi Q5 2.0 T S tronic Chevrolet Cruze 1.8 LS Hyundai i20 1.6 GLS

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Suzuki Alto 1.0 Litre GLS Toyota Prius 1.8 ECVT Advanced Volkswagen Golf VI 1.4 TSI 90 kW Comfortline Volvo XC60 3.0T Geartronic The next step in the process is to determine the winner from a two-day test session to be held in February 2010 at the Gerotek test facility near Pretoria, where the cars will be assessed independently by the jury members. ABR shall do an analysis of the finalists in its February 2010 issue.

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Bridgestone supports Cape Leopard Trust Bridgestone South Africa has added the Cape Leopard Trust to the organisations it is supporting under its corporate social investment umbrella and Bridgestone’s global One Team, One Planet initiative. The support is in the form of a set of new tyres, including spares, for the Trust’s fleet of five 4x4 vehicles as well as a substantial cash donation. The Cape Leopard Trust was formed in 2004 to facilitate conservation of the Western Cape’s predators through the combination of conservation strategies, research projects and tourism initiatives. The Trust operates in wilderness areas in the Cederberg, Swartberg/Gamka corridor and Namaqualand areas. “We are delighted to associate ourselves with the Cape Leopard Trust,” said Romano Daniels, Bridgestone South Africa’s general manager of group marketing and communications. “They are doing important conservation work, while at the same time providing valuable learning opportunities, in particular to children, about the endangered Cape mountain leopard. Our support is in line with our commitment to conservation and the environment as embodied in our 4x4 Fundi programme.”

TREAD CAREFULLY IN SUMMER RAINS Correct tread depth is vital to ensure that your car is controllable on wet roads. This is according to Romano Daniels, Bridgestone South Africa’s General Manager of Group Communications and Marketing. “Many people think that the purpose of tread on tyres is to grip the road,” he said, “but it’s actually to disperse water on wet roads. If your tyres are worn, they might not be able to clear away standing water fast enough and the tyre will then begin to skim along the surface of the water. This is called aquaplaning or hydroplaning,” he explained. He said that aquaplaning was very dangerous because the tyre was no longer in contact with the road, meaning the vehicle could not be braked or steered. “Motorists in the summer rainfall areas of South Africa should pay careful attention to their tread depth to ensure proper traction in the sudden downpours which are common at this time of year,” he added.

(from left) Bridgestone’s 4x4 specialist Johan Mostert, Bridgestone GM Western Cape Errol Momsen, Cape Leopard Trust’s Elizabeth and Quinton Martins, and Mandy Lovell of Bridgestone Corporate Communications.

Bridgestone South Africa wins Focus on Excellence best tyre award For the third time in four years Bridgestone South Africa is a winner in the annual Focus on Excellence Awards, sponsored by WesBank and hosted by Focus on Transport and Logistics magazine. The Focus on Excellence award for best tyre was awarded to Bridgestone South Africa for its Bridgestone brand for the second year in succession. Bridgestone’s popular Firestone range won the inaugural award in 2006. Bridgestone provides transport operators with a comprehensive range of commercial vehicle tyres, ideally suited for a wide variety of applications. Julio Fava, general manager of producer sales at Bridgestone SA, accepted the award: “I’d like to thank each and every transport operator and manufacturer who bought even one Bridgestone tyre in the past year. Without our customers we have no business, so thank you for the continued support.

Yujiro Kanahara (centre), chairman and CEO of Bridgestone South Africa, with Julio Fava (right), general manager producer sales, and Romano Daniels, general manager group PR and marketing.

KenKen 9 X 9 How to Play: Like Sudoku, even though difficulty may vary from puzzle to puzzle, the rules for playing KenKen are fairly simple: For a 9 x 9 puzzle, fill in with the numbers 1-9. • 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 107

Setting the record straight: The November 2009 Automotive Business Review, on page 87, had a heading titled: "Sabat hosts the 7th annual power wheelchair race at Kyalami during the Vodacom Power Tour on the 17th October 2009." This was an error. The event at Kyalami on 17 October was in fact the final round of the WesBank Super Series - a sponsorship WesBank took over from Vodacom some 3 years ago. ABR regrets the error.

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National e-CAR Indaba 2009 It all happened on Saturday, 7th November 2009, at Emperor’s Palace – “The Palace of Dreams”. The National e-CAR Indaba 2009 comprised an exciting programme of updates, announcements, business presentations, branding advice, economic overviews, motivational talks and much more. It all ended with a dinner and show at the fantastic Theatre of Marcellus, with the guests treated to Richard Loring’s “Midnight Hour”, featuring Clint and Co, taking the audience on a non-stop nostalgic musical experience.

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he e-CAR nationwide chain of vehicle service centres has taken South Africa by storm since its introduction in 2004, a mere five years ago, and now boasts a membership of 60 highly committed e-CAR outlets. e-CAR outlets offer a wide variety of services to today’s discerning motorist, and thus it is no wonder that e-CAR is the fastest growing workshop network in South Africa. The Indaba’s vibrant presentation and participation lived up to this reputation. Wolfgang von Ey, Chairman of DESAMARK, opened the conference with a compliment to the e-CAR management team, and lauding the “unbelievable growth of e-CAR”. He also gave the sage advice that the e-CAR chain is only as strong as its weakest link, and that unity is strength.

Rolf Krull, MD of DESAMARK, outlined the four success components of e-CAR, and its value added package: •

•

•

e-CAR (Pty) Ltd. – the brand custodian and the network developer. • Preferred Suppliers – Ate, BOSCH, Gabriel, GUD, Hella, Osram, Ram, SACHS, Valvoline – quality products, sales support and training. Diesel-Electrics – training, promotions, product info, sales support, competitive pricing & specials, efficient delivery service, quality brands, financial support e-CAR Members – quality customer service, local advertising/promotions, national warranty, quality products, technical expertise, financial support

Development Highlights:

Wilfried Langenbach – Manager e-CAR (Pty) Ltd.

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21 new members appointed in 2009: Alrode Hauser Benoni Gear Chatsworth Advanced Turbos Durban Autospec Durban Millers Edenvale DTC Tuning Ermelo Car Doc Fourways Motormax Isando M&M Petrol & Diesel Isithebe Powertrans Klerksdorp Bonding Kuruman GGMC Lichtenburg West End Auto Electrical Marble Hall Marble Auto Electrical Meyerton Exhaust Tech Modderfontein Top Care Auto Clinic Nelspruit Performance Auto Northam Northam Auto Clinic Stanger Max Power Thabazimbi Thaba Auto Electric Welkom du Plessis and Claassen

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Barry Hauser Gary & Rika du Preez Anthony Pillay Faried Adam Sunil Soonalall Mike & Shellene Marshall Frank Thomas Deon & Angela Cosky Michael Botes Shokes Naidoo Warren & Kevin Hengst Gert Roselt Dick & Ilse du Randt Marius Stassen Manie Prinsloo Craig & Glen Emmerich Wayne & Stella Masher Mohammed Dudhia Anil Dhaver Karel & Jacob Stassen Ben du Plessis / Willem Claassen

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Highly successful regional meetings e-CAR formed part of the award winning Diesel-Electric stand which achieved Gold Award status at Automechanika South Africa in March 2009 Monthly Internal Newsletters Quarterly Newsletters for Motorists Outstanding Performers in 2009, giving extraordinary support to e-CAR: Pinetown Cape Town Stellenbosch Durban Randburg Woodmead Sasolburg Rustenburg Phalaborwa

Chris Swale Motors Beemer Auto Tomson Motors B&R Auto Ferndale Auto Service Corporate Car Clinic Car & Truck Rustenburg Auto Phalaborwa Auto Electrical

Chris Swale John Clay Sean Thompson Babu Salik Ike Eichweber Brent Curtis Hamish Kiddle Joao Amorim Thys Taljaard

Future Activities • • • • • •

Continue Building e-CAR Brand Speed up Network Development Encourage Members to Attend Training Courses To add weighting on training for “Workshop of the Year” Competition Further Emphasis on Technical Assistance Upgrading of Workshop Standards

The responsibility in raising standards rests at e-CAR head office, Diesel-Electrics, and e-CAR members

Awards

“Workshop of the Year” Winner – Car & Truck: Hamish Kiddle

“Best Results Achieved in Bosch Training” went to Nick Papamalis of Sparky Auto Electrical, Brakpan

“Workshop of the Year” 1st runner-up – Rustenburg Auto Electrical: Joao Amorim

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“Workshop of the Year” 2nd runner-up – Corporate Car Clinic: Brent Curtis

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Benefits and Responsibilities of e-CAR membership

“We Need to Belong” Clients have been spoilt radically by OEM dealerships – treated with respect, high class reception areas. Now once their car is five years old, they migrate to non-OEM workshops and expect similar treatment First impressions are important: - reception area - corporate clothing - spotless workshop - handled professionally - customer etiquette Hamish Kiddle – Car & Truck

Only deal in top quality parts, train your staff, obtain the right equipment, spruce up your business, make use of technology to communicate with customers, make your customer want to come back

Andy Roth, Owner Diesel-Electric (Rand) - “A little bit of this, a little bit of that” Profit is not a dirty word Bosch at the forefront of advances in vehicle safety

“Technology is endless – if you don’t train and keep up with technology, you will be left behind” Do’s and Don’ts Do:

Don’t:

Stick to OEM specs Stick to top suppliers Treat the customer and his property with respect – better than your own car Communicate with your customer Be positive, reliable, punctual and honest Run your workshop professionally

Fit parts supplied by the customer Make functional repairs Modify vehicles Fit inferior products because of price Make your customer lose face Play around – ask for help

“We will not participate in the economic downturn” arples

Gavin Sh

t, changea n e r e f f i d Be ude, taktehe t i t t a r u o y e up to risk, wauknities, be opport tic, be honest, authen t the balance and ge on’t just think right. D the box, DO outside the box. outside

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Ewald Faulstich, Director Automotive Aftermarket Division, Robert Bosch SA – Strategic Importance of a Sustainable, Successful e-CAR Concept

“The battle is on for the hearts, minds and soul of the motorist” The automotive aftermarket will benefit from the high car sales between 2004 and 2007, that are now out of warranty and are looking for competent aftermarket workshops. The biggest challenges for these workshops in a dramatically changing workshop market are to master complex and state of the art vehicle technology and the fact, that the motorists have a vast choice between many workshops. The biggest needs for workshops are to build strategic partnerships with winning wholesaler organisations, to join a leading aftermarket workshop concept, to develop best in class technical competence for all their workshop mechanics and to develop the absolute understanding for the need of best in class customer care and relationship management for all workshop staff members. The “brand performance” of a workshop organisation is a result of an outstanding corporate design, highest possible corporate competence (mainly technical competence) and highest possible corporate “behaviour” (mainly customer care management) at all times by all members of this workshop concept.

Tony Twine, Director

– One Man’s Poison Econometrix

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he world rode a wave of false prosperity for 20 years based on the rise of commodities, equities, and assets; and everyone felt amazingly rich as the banks pumped more money into the system, and then someone dislodged a card in 2007. The banks stopped lending, and worst of all, the banks stopped lending to each other. The collapse of Lehman Brothers in Sept 2008 brought everything to a head, and fixed capital formation and sales of durable goods simply hit a brick wall. The drop in demand for commodities and the contraction of all economic activity exposed the camouflaging of risk, and the chickens came home to roost, leaving no one unaffected. The concomitant loss of confidence was exacerbated in the motor industry, which was also feeling the effects of a fundamental shift vehicle production worldwide, and the move to more environmentally friendly vehicle technology. The result for the automotive industry was the tsunami of the century. In South Africa, car sales hit a peak in Oct 2006, then dropped 10% in 2007, 25% in 2008, and 25% in 2009. The loss of confidence was amplified by nervous banks. Paradoxically, all this bad news is good news for the automotive aftermarket. The meat of the car parc will move into a lucrative band from 2009 to 2011, and this is the opportunity to build customer retention for the slightly leaner years from 2012 to 2014. Growth will stabilise in 2014/2015, so those who prepare well will benefit from the bulge and beyond.

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r, Group Chris KoglleDirector, Managinnd Sampson Interbra

ce of The Importan brand R A C e e h t Upholding

where your ily – this is m fa a as d your bran • Think of re of choice for identity sts. hop network ks or w e h “t r ands fo • e-CAR st otorist”. motor plan m of t the ou an a logo much more th • Brand is mise Kept e Made, a Pro is m ce ro P a is ding experien • A Brand the total bran ct fe af at th ployees, points • So many – investors, em ts en u it st n impacts all co • A Brand , t, evaluation consumers , managemen on ti ea cr – has cycles • A brand re-evaluation ake a choice e customer m th s p el departh d a marketing • A bran st ju ot n t, se as is a business • A brand act, build, ment erience – attr p ex an d an e e-CAR br • Make th capture romise your brand p • Live up to

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Show

Time

Sir Tom Farmer joins speakers at Tyrexpo Africa’10 tyre industry conference Sir Tom Farmer CVO CBE KCSG DL, the man credited with revolutionising tyre retailing in the UK, will present a keynote speech at the TyrexpoAfrica industry conference in Johannesburg next March. Sir Tom, founder and chief executive of the Kwik-Fit retail empire, is one of the most recognisable names in the global tyre industry. He founded Kwik-Fit in Scotland in 1971, developing it to become one of the world’s largest automotive parts repair and replacement specialists, before selling the company to Ford in 1999.

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mong many honours, Sir Tom was awarded the CBE in 1990, received a Knighthood in 1997 and in the same year was made a KCSG (Knight Commander with Star of the Order of St. Gregory the Great). In 2009 he was created a Commander of the Victorian Order (CVO) in the Queen’s New Year’s Honours. He now supports a wide range of charitable and philanthropic causes while maintaining an interest in the UK tyre business through his involvement with the Farmer Autocare retail group in his native Scotland. His presentation to delegates will cover the Kwik-Fit success story; the challenges facing today’s tyre retailers and the ‘customer experience.’ He will also provide an expert insight into key business areas such as price discounting, staff motivation and the added value factor. “Sir Tom Farmer is universally known and admired for his stellar achievements with Kwik-Fit so we regard it as a real coup to have secured his involvement in the TyrexpoAfrica conference,” says Rowena Suthers, sales director with exhibition organiser ECI International. Sir Tom will join an impressive gathering of speakers in Johannesburg that includes Georg Schramm, head of marketing and sales for Dunlop/Apollo, South Africa; David Wilson from the UK Retread

December

2009

–

antee fast and hassle-free entry. Exhibition hours include late night opening on Friday until 8.00pm, allowing conference delegates and visitors to attend after business hours. The last day of the exhibition will be a Saturday, offering further incentive for those unable to attend during the working week.

Manufacturers Association and Dr Etienne Human, lead consultant with South Africa’s National Waste Tyre Project and CEO SATRP Co. Further speakers for the one-day conference on March 5 2010 will be announced in the coming months. As the conference continues to build, so does the number and quality of exhibitors supporting the event. Leading automotive equipment manufacturer Robert Bosch & Beissbarth SA and tyre repair specialist Chemvulc are among the latest well-known suppliers to confirm their involvement in the show.

More about TyrexpoAfrica 2010 Delegates can now use online pre-registration (www.eci-international.com) to guar-

January

2010

TyrexpoAfrica 2010 will provide trade visitors with direct access to tyre suppliers including Stamford, Infinity, BKT, Tandem, Techking, Tubestone and SA Tyre Distributors (Federal & Hercules), while those involved in retreading and repair will be able to do business with the likes of Chemvulc, Elgi Rubber Company and Treadsdirect. Garage and workshop equipment will be well represented by suppliers such as Robert Bosch and Beissbarth, Leaderquip, Hofmann Megaplan, Rema Tip Top and Steinbichler Optotechnik. A full list of exhibitors can be found on the ECI website at www.eci-international.com. The third staging of Tyrexpo Africa will take place at the Sandton Convention Centre, Johannesburg (SCC) on 4, 5 and 6 March 2010.

17

A series of articles on the rise of the Chery automobile

The Toughest Test South Africa is not for sissies. We are of pioneering stock and we have tamed the land and tamed the rivers with a fortitude that equals any other endeavour on our planet. We are tough and expect the same toughness from our means of mobility. It goes back to the 1800’s when we used oxen and horses to turn South Africa from a barren hinterland into an agricultural giant, and now in the early part of the twenty first century we continue the tradition with our mechanical steeds.

J

annie van der Walt is one of the people who uphold this tradition. Jannie works for OVK (Oos Vrystaat Kaap Operations Limited), a farming co-operative that covers a vast track of land encompassing the Eastern Free State, the Northern Cape and the Eastern Cape. OVK is in the business of agronomy, from maize, wheat, sunflowers, dry beans, asparagus, cherries, fruit and vegetables, through to planted pastures, natural grazing veld, wool/mutton, dairy/beef, horse breeding and ostrich farming. Jannie is based at OVK’s offices in Hopetown in the Northern Cape, and he lives in van der Kloof, on the banks of the van der Kloof dam, the second largest dam in South Africa and one of only two hydro power dams in South Africa. The van der Kloof dam wall is 108m high, and when full the dam stretches for over 100 km, holding some 3,2 billion cubic meters of water. This gives one some perspective of the distances Jannie has to travel when visiting his clients in the Northern

Cape, and thus he averages a good 5 000 km per month in carrying out his duties as a wheat marketer. With the high price of petrol, and the rough gravel roads he traverses on a daily basis, Jannie needs a tough and fuel efficient vehicle. So when his 1400 bakkie gave up the ghost in August 2008, Jannie took a “chance” on a Chery QQ 0,8 TE, with the knowledge that McCarthy stood behind this vehicle with warranties and maintenance plans. South Africa’s lowest priced car seemed to be a good bet for Jannie, so he took the leap of faith. The result? A very happy Jannie van der Walt told ABR in the last week of November 2009 that he has now done 71 000 trouble free kilometres, achieving a consumption of 23 to 24 km per litre (4,25 l/100km), and the little warrior handles the gravel roads with aplomb and exceptional comfort. It has passed the toughest test with flying colours and he describes this purchase as “one of the best buys I’ve ever made”. More power to your elbow, Jannie!

A very happy Jannie van der Walt with his Chery QQ 0,8 TE

18

December

2009

–

January

2010

Auto

Topical

The 2010 World Cusp by Tony Twine

Put together the Author of the Book of Revelation, Scrooge, Milton Friedman, an Astrologer and Tony Twine and check your forecasts for 2010

The last book of the Christian Bible, Revelations warns us that, as the end time draws nigh, we will hear of wars and rumours of wars. In these, the last days of 2009 we are hearing of economic recoveries and rumours of economic recoveries. Astrologers, unlike their hopefully more scientific counterparts in economics and weather forecasting, use the term “cusp” to describe a transition or boundary zone between two star signs or era’s – perhaps it is safer to apply that term to short term economic forecasts than to call a virile and vibrant recovery for the battered world economy in 2010.

G

lobal markets for equities, commodities and currencies outside of the US Dollar all took heart in November when the G7 leaders announced that they would continue to support the fledgling turnaround of the levels of activity in their respective economies which had become visible after the mid-point of 2009, by continuing to pump cheap credit into them. Readers of these columns over all the months that ABR has existed will recall that money illusion created by cheap credit is held by many to be the cause of, rather than the solution to the fall-out in financial markets, the credit squeeze and the subsequent toppling of real economic activity levels around the world after 2007. In looking forward to the year 2010, the level of confidence with which we enter the year, must surely be better than it was 12 months earlier. Economists often avoid talking about confidence within their scenario building rationales, largely because it is difficult to measure, highly individualistic and difficult to aggregate, and even more difficult to predict in terms of tipping points or major changes of direction. Forecasts inevitably assume a flat trajectory at point of departure levels for the mood of both suppliers and consumers in a mul-

20

titude of markets, which is the main reason that even the most sophisticated of statistically informed forecast scenarios hardly ever turn upwards or downwards with the venom that reality and the wisdom of hindsight seem to dish up. Putting this set of ideas together, it certainly appears that global economic fortunes are in the process of changing for the better, but the reason for the change (continuous pump priming of large economies by easy credit creation), could be the hallmark of the lack of sustainability of the next upturn, just as it was the primary cause of the rise and fall of the economic and business cycles the last time around. 2010 is unlikely to be as bad on the margin as 2009 turned out to be, largely because the sentiment that sat with us at the Christmas Dinner table last year is decidedly more cheerful than it has been for 18 months or more. This is as true for the large economies of the world as it is for us back home in South Africa. This alone should make both the consumer and business sectors of most economies that much more open to taking risks, even if they are only relatively modest ones, which will stimulate both the demand and supply sides of the global real economy. But

December

Scrooge’s ghost of Christmas Future lingers in the wings of this combined biblical and astrological forecast scenario. Just as Scrooge was promised a grey, nihilistic future because of his then current behavior, it is difficult to believe that the world economy can revert to, and then sustain, sturdy levels of real economic growth by simply taking more of the same drugs which got it into the trouble that it was in between 2007 and 2009. The reliance on force feeding economies with credit may literally paper over the widening cracks for a time, and that time could well extend throughout and even beyond 2010. But the forces of economic gravity will inevitably return if the ever heavier façade is not supported by a comparable strengthening of the steel and concrete structures papered over by ever increasing amounts of cheap credit. Therefore, brethren, let us eat, drink and be merry this Christmas, and carry our new restored confidence into 2010, but be mindful of the growing layers of wallpaper on the world’s economic walls. If the dead Presidents depicted on the various denominations of US Dollar Bills are smiling, ask yourself why they are crossing their fingers? After all, Scrooge’s late partner, Jacob Marley, is dead. Isn’t he?

2009

–

January

2010

2009 Frankly

2

by Frank Beeton

Speaking

0

0

9

– A Watershed Year

When, at some time in the future, we look back on 2009, it is quite likely that this year will be recognised as a fairly substantial watershed in the history of the global motor industry. Although some very important issues, such as the sale of Volvo Cars by Ford and Volkswagen’s takeover of Porsche, still have to be finalised, enough has happened already for us to mark 2009 as a year when the industry changed direction, and after which it was never going to be the same again.

A

t the beginning of the year, there was still no certainty that two of the world’s largest vehicle manufacturers, General Motors and Chrysler, would survive. It was only after a great deal of financial intervention by the US government (estimated to be heading towards the $US 100 billion mark) that they were able to enter a period of bankruptcy protection, and re-emerge in considerably scaled-down forms, to carry on with “business, but not as usual”. In the process, GM probably gave up any hope of regaining the position at the top of the global pecking order that it previously occupied for 77 years, while Chrysler found itself effectively taken over by Fiat, who had been absent from the US market for a quarter of a century, and was looking for a way back in. In this process, there were a considerable number of casualties. These included the closure of more than 20 North American manufacturing plants, the cancellation of more than 4 000 dealer outlets, and, in an industry that was already shedding jobs, more than 30 000 additional redundancies. The “Chapter 11” bankruptcy protection process used by both GM and Chrysler made it legally possible for them to make these cuts, in spite of previously binding contracts. Somewhat perversely, the Ford Motor Company was busy polishing its marble while its compatriots were going through the pain and humiliation of bankruptcy. Ford had chosen to go it alone, using “normal” commercial avenues to fund its business and turnaround plan. It had also woken up to the fact that its overseas subsidiaries were building some outstanding products, with North American marketing potential. Ford’s avoidance of invoking state aid was positively received by the very taxpayers who were being asked to finance GM and Chrysler’s survival. The disposal of Jaguar/Land Rover, plans to sell Volvo, and the scaling down of Ford’s long-standing shareholding in Mazda, caused nary a ripple. The year 2009 will, almost certainly, be the first in which the United States no longer lays claim to the world’s largest domestic vehicle market. Indications, at time of writing, are that China will

22

finish the year with more than 10 million unit sales, while the US languishes at around the 9 million mark. The US market has now fallen to just more than half of its all-time record level of 17½ million units set in Year 2000, but most analysts believe that Chinese production and sales volumes will rise to even higher levels during the next decade. While all this was going on, we were witnessing the apparent power struggle between Volkswagen and Porsche. Early in the year, we envisaged a “minnow-eats-whale” scenario where the relatively miniscule sports car manufacturer (11 000 employees, 100 000 cars per year) was positioning to take control of the global giant (300 000 employees, 6 million cars per year). However, after three years of building up its VW shareholding, Porsche’s plans, together with its cash flow, came undone, and by mid year, Volkswagen was talking “merger”, and Porsche’s role was reduced to becoming yet another brand in an expanding VW portfolio! The process is still rolling out, but it now seems inevitable that the absorption of Porsche will become just another stepping stone on VW’s intended path to World Number One. To get there, of course, Volkswagen will need to unseat new incumbent Toyota, who had, in turn, arrived in that position at precisely the wrong time! Having assured a skeptical world that it never intended to get there, the Japanese firm had to admit, among falling volumes and rapidly disappearing profits, that it had been executing a world leadership strategy (surprise, surprise) all along, but would, in future, follow a more prudent course. Does that mean waving Volkswagen serenely by into first place? Not likely, Toyota is too proud for that, but methinks that they will both be confronting threats from Hyundai-Kia, and the larger Chinese groupings, before too long. We haven’t even mentioned new technical directions, like plug-in hybrids and all-electric cars, but the evidence presented above is enough to support the “watershed 2009” theory. As we approach 2010, there is a general expectation of some improvement in global car markets, although most forecasts are still fairly conservative. Vehicle manufacturers will be hoping for considerably less drama than was the case in 2009, but 2010 could still turn out to be an “interesting” year.

December

2009

–

January

2010

Intelli-Driving

Safe Driving Tips

by Eugene Herbert

In this competitive world where margins are being pressed it is important to see where added value can be introduced, particularly when there is significant expenditure involved. With that in mind it is important to see how encouraging safe driving practices makes good business sense. Here are two very good reasons for continuing with activities that enhance both the qualities of people’s lives and reduce business costs

Helping Your Business Business has never been more competitive. Margins are being squeezed and the constant challenge is to drive for better efficiency in all areas of your business. This drive for efficiency means developing ‘best practices’ and ensuring that you have properly trained people to implement your strategy. Recently, proper training of staff has become an increasingly important part of this success - and rightly so. Thousands through to millions of Rands are invested in equipment and processes which need to be protected by the provision of adequate training. Nowhere is this truer than in the use of company vehicles. A very significant amount of capital is invested in the company fleet – whether they are cars mainly used privately or commercial vehicles. Yet teaching people how to drive is an often neglected part of the process. Why? Because it is assumed that if someone has a licence that they “know how to drive”. Unfortunately not everyone can drive well.

Road Safety for Your Staff Here are a few reasons that you should have a planned driver training program in place to protect your staff: • •

•

•

•

Your staff should be provided with a safe workplace, this includes their travel to and from work. A vehicle used for work purposes can be classed as a workplace and should have the same level of safety and training provided as per an office, workshop or building site. Vehicles with corporate signage are a billboard of your brand. It is important that driver behaviour is of an appropriate standard if driving a sign written vehicle or a driver’s action could reflect poorly on your business. Staff who participate in a Drive to Survive defensive driving course will learn life skills beyond that of their workplace, helping them to keep their family and friends safe on the roads also. Staff feel rewarded by employers who provide driver training as it is more than the usual ‘training’ courses normally associated with a workplace (i.e., computer training, systems training, etc).

Navigate your way out of trouble We often take for granted the things we need to do which will ensure our safety while on the road. With that in mind we thought it prudent to share a tip which could prevent the driver from becoming a road victim. Obviously, initially we would recommend that everyone driving a fleet vehicle is properly trained so book them all onto our Drive to Survive defensive driving

24

course before handing over the keys but an issue for fleets that has become more relevant nowadays is the use of satellite navigation systems, usually suctioned onto the windscreen. Two problems exist with these sat-nav systems; one is that the positioning of the sat-nav on the windscreen is often detrimental to the view of the road and surrounding area and the second issue is that thieves see either the system still plugged to the windscreen or the suction cup mark on the windscreen and will target the vehicle for a smash and grab (they know that even when a sat-nav is not in its cradle on the windscreen most people leave them ‘hidden’ in the console). These problems can be avoided in one of two ways, select sat-nav as a fitted option at time of vehicle purchase or have your fleet drivers place the sat-nav in a position out of sight of thieves which will also usually move the unit away from obscuring vision out of the windscreen.

Teen Tips As you may recall we recently launched a website dedicated to teen driving -www.teendriving.co.za. It has been gratifying to see that some parents have acted on our suggestions for a Teen/Parent Contract. The wisdom of having some level of accountability is highlighted in the following article from a US Blog. For those who haven’t visited the website please do so as it is really practical and it contains some interesting features which will facilitate learning some good driving disciplines. Amongst others there are: • • •

SAFED – an interactive program The anatomy of a Teen Car Crash & A reaction test for driving and texting

Remember our teens are our leaders of tomorrow – we don’t want them disabled or worse still DEAD. A recent American survey released has shown the role parents can play to ensure their teenagers are safe when driving on the road. According to the survey done by the Children's Hospital of Philadelphia, 25% of teen drivers who either own cars or have free use of one were involved in crashes. Those who have to ask for permission to use a car have far fewer accidents. Parents know when their children get behind the wheel that is risk involved. "The moment they get into that car and leave, I'm a nervous wreck because they're first time drivers," said Charlene Anderson. Not surprisingly, teenagers have a different view. "It gives a sense of freedom to teenagers and it makes them feel older," said 16-year-old Marissa Dutra. "You feel you don't have to rely on your parents to go anywhere you want." Traffic crashes are the number one cause of death for U.S. teenagers with about 5,000 a year. Other highlights of the survey: Teenagers who have clear rules set by their parents had fewer accidents and parents who are actively involved in setting those rules cut the risk of drinking and driving by 70%. December

2009

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January

2010

Tony’s

Take

King II est mort, by Tony Twine, Senior Economist, Director – Econometrix (Pty) Ltd

vive King III!

In the grand tradition of Royal succession, the King Committee published its third report on Corporate Governance in South Africa on 1 September 2009. There is little doubt that its recommendations will be pursued by companies throughout the South African Economy during 2010, if they have not begun the process already. Better, more effective governance inevitably places greater loads on executive and non-executive directors of enterprises. Here follows an imagined set of notes from the laptop of an equally fictitious director of a motor sector company, making the transition towards some of the provisions of King III at a last imagined board meeting at the end of 2009.

Recent U-turns to be monitored:

Motor Industry

•

Education policy

•

•

HIV Aids policy

APDP – set up committee to review details next December, if there are any

•

Arms procurement policy

•

•

Principle of equal force when used by police

Buy rights from US Military to build civilian version of Abrahams Battle Tank

•

Free floating exchange rate

•

Energy conservation – no more electric seats, windows, windscreen wipers or washers and reduce power of headlights, tail lights and break lights. Our indicator lights have been optional for years!

•

Labour broking

•

Deployment of inadequately skilled comrades to key positions

•

Helen Zille’s list of 700 laws / legislations hampering growth and employment

Government Relations •

•

•

•

40

Must contact Min. Gordhan before Budget on 17th February 2010 to find out the maximum number of cars that can be bought with 70% of a cabinet ministers annual salary Remember not to confuse Gill Marcus at SARB with the other GM when sending out correspondence UK Elections: post early sympathy card to Gordon Brown, in case Royal Mail is on strike! School holidays 2010 – to be made continuous with SADTU strike days and consolidated days absent by Teachers – no school possible after 24th March.

•

Ask Julius what the Venda word for hetero co-stochasticity is. If there isn’t one, we can stop worrying about it!

•

See if we can get a James Bond Aston

Martin for Mo Shaik (Double-O-Mo, or did M also stand for MO) as new head of the Secret Service. •

Play down the heads up by Zapiro regarding Presidential plumbing.

Energy •

Alternate fuel program – must get hold of Renegade Oil Minister Ethel al Kohol to discuss prospects

•

Electricity supply – find out who’s the boss!

•

Spotlights for Soccer Field – why is output measured in candle power?

Sponsorships •

Sport Sponsorship – which is fastest: Cheetah? Shark? Bull holding its breath?

•

Formula 1 sponsorship – are we still on the Button?

Treasury matters •

Soccer World Cup •

SWC 2010 – how many Ivorian elephants can we get into a Mini Cooper?

Solution to cash-flow matter to end of financial year: In February, all company Visa credit card accounts for January to be paid with company Master Cards, in March all Master Cards to be paid with Amex Cards, and April it is the new financial year.

Useful topics for Dinner Table Chat: •

Must fast-track plan to dispose of all the rental vehicles after SWC tournaments

De-ja-moo, which is the feeling that you have heard this bull before!

•

Sick notes signed by Schabir Shaik’s Doctor

•

Zimbabwe political solution – see note on rental cars above

•

Judge Motata’s school of judicious driving

•

Check fixed armament on BRT vehicles.

•

December

2009

–

January

2010

weighty

issues

The Hope Fades... by Frank Beeton

Back in the August issue, you would have caught us singing the praises of South Africa’s newly-appointed Transport Minister, Sibusiso Ndebele, and his Deputy, Jeremy Cronin. The cause of our celebration was an apparent appetite to take on the minibus taxi “industry”, and ensure that Bus Rapid Transit actually got off the ground to provide a real public transport service to South Africa’s long-suffering commuters ahead of next year’s Soccer World Cup. Subsequent events seem to have confirmed this direction, and the relatively peaceful inauguration of Johannesburg’s Rea Vaya system is a tribute to the steadfastness of the new management team at the national Department of Transport.

H

owever, subsequent events have caused us to put our celebrations on hold. In October, the Department of Transport sent a letter to transport stakeholders advising of a strategy proposal that will reduce the maximum permitted axle massload of trucks on secondary roads from 9 000 kg to 8 000 kg, and designate certain commodities which, in future, would be banned from road transport. It is necessary to state, at the outset, that more detail relating to the definition of a “secondary road”, or identification of the commodities that would, perforce, be moved to rail transport, is unavailable, so the following comments must be seen as a broad response to a particularly vague proposal.

In fact, we had rather hoped that this kind of vague reasoning had disappeared from the Department of Transport, together with the past incumbents of its Ministry. Even the most cursory consideration of the possible outcomes, however, would identify certain obstacles which the implementation of such a strategy would encounter. Consider the following: •

42

How many truck journeys are solely confined to “primary roads”? The existence of differentiated axle limits for specific road classes will provide transport operators, drivers, and, not least of all, the law enforcement authorities with a nightmare scenario. They are all having enough trouble with the present, unified, legislation, now we propose to make it more difficult for them.

•

The rural road infrastructure that the DoT is aiming to protect is largely devoid of permanent weighbridges. How will the enforcement authorities enforce axle load legislation on these roads without them?

•

Lower axle limits = less payload. Less payload, if you want to deliver the same tonnage of coal to the power stations = numerically more truck(load)s. How does this help to reduce wear and tear on the roads?

•

Transnet Freight Rail (think of it as the successor to the good old SAR) has experienced considerable difficulty in satisfying its customers on the dedicated one-product lines running into Richards Bay and Saldanha (these are really dream operating scenarios for any rail operator). Transnet’s ability to provide satisfactory levels of time/cost/security efficient services on general freight haulage between ports and the interior has been in question for some time. Any reduction in the level of service currently provided by road haulage, if and when designated goods are diverted through legislation on to rail, will, inevitably, result in lower levels of National productivity.

No, Minister Ndebele, this is not the way to solve the problem. The real solution lies in regular, quality road maintenance, and effective, consistent, and honest law enforcement. Yes, the rural roads have been abused, but reducing legal axle limits will only increase the margin of abuse, not its frequency. Road transport legislation is already complex, and making it more so will not bring about a quantum leap in December

infrastructure conservation. As in so many other cases, the government is, once again, exhibiting a propensity to change legislation, rather than effectively enforce what is perfectly adequate and already on the statute books. It hasn’t worked before, and it won’t work this time. As far as Transnet Freight Rail is concerned, it’s all about management. This parastatal must realise that it needs to be a provider of transport solutions, not just an operator of trains. There is an excellent national case for moving goods from road to rail, but this must be achieved through the provision of time/cost/security benefits. Once shippers become convinced that rail is the most cost-effective solution to their transport needs, it will not be necessary to bring about modal shift through legislation. There is no evidence that the huge swing to long distance road transport, since deregulation in the 1990’s, has come about because people like trucks, in fact there is considerable public agitation in favour of banning trucks from busy roads at peak traffic times. The simple fact is that road transport has helped the national economy to grow, whereas compulsory use of the eroding rail system would, surely, have applied the brakes. Much of the strategic thinking that has emerged in DoT policy documents since 1994 is quaintly socio-political, and not reflective of the realities of business in modern South Africa. What South Africa needs now, more than ever, is pragmatic policy making, to produce the most desirable outcomes for the country. Minister Ndebele, please don’t spoil the party so early in your term of office!

2009

–

January

2010

Top

Class

Topics

Working Hands Aren’t Always at Work... Waterless Hand Cleaners for Working Hands Since 1909, quality Permatex® products have been used in workshops, garages, and at racetracks around the world. Behind these products is the understanding that the automotive technician’s needs is Permatex’s primary concern. Innovation through research and development is a Permatex hallmark, and hand cleaners, whilst being considered a “soft” product, is one of the areas within which Permatex excels.

P

ermatex’s fast selling Fast Orange® line features a broad selection of formulas and sizes for removing the most difficult dirt, and they’ve been doing it for over 50 years, and have become in America the hand cleaner of choice for the hard working technician. Wherever hands are getting seriously dirty, there’s a place for Fast Orange, because the hard working technician needs clean hands to do other daily chores, and he needs a waterless hand cleaner that really cleans – without turning his hands into sandpaper. He needs the strength to remove grease, grime, paint, adhesives and all other dirt his working hands get into, plus conditioners to prevent cracking and drying out. In South Africa, Top Class Automotive focuses on the Permatex Fast Orange Smooth Cream Hand Cleaner, available in a 14 oz. plastic tub, and a 4.5 lb. container (product codes 33013 and 33406); and the Permatex Fast Orange Pumice Lotion Hand Cleaner, available in a 15 fl. oz. bottle, a 15 fl. oz Brush-Up® bottle with nail brush, a half gallon bottle with pump bottle, and a one gallon bottle with pump (refs. 25116, 25113, 25217 and 25218). Note: one fluid ounce = 29,57 millilitres, one gallon = 3,785 litres, one oz. = 28,35 grams, and one lb. = 0,454 kg.

TopClass MD, Richard Pinnard

50

December

2009

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January

2010

health

care

An update on Moto Health Care In last month’s edition I covered the amendments to the current benefits that will be implemented in 2010 for the Optimum, Classic, and Hospicare options. I also undertook to deal with the Custom and Essential options in this edition. So here goes.

Custom. This option is targeted at income earners who are looking for cost effective access to affordable private hospital cover as well as comprehensive primary care benefits. A preferred provider network basis for primary care has been used to maintain affordability. The benefit adjustments for 2010 have been based on feedback received from members during 2009 and include: •

A comprehensive HIV benefit

•

The addition of a chronic medication benefit covering the Chronic Disease List conditions through Chronicare as the preferred DSP. This is a capitated benefit and it does not include the treatment plans.

•

An out of hospital specialist benefit of R2 500 per beneficiary and R5 000 per family subject to pre-authorisation and use of a DSP provider.

•

A denture benefit per adult beneficiary.

•

An emergency transport benefit.

Essential. The Essential option offers only primary care benefits but at a comprehensive level through a preferred provider network to maintain affordability. This option is targeted at those income earners who are not able to afford a more comprehensive benefit offering but without compromising on their emergency or primary healthcare needs. For 2010 it is proposed that new members need to have an income of less than R3 500 in order to be eligible to join Essential. The other benefit improvements are: •

An emergency stabilisation benefit in private hospitals (this benefit is restricted to events threatening loss of life or limb only )

•

A public hospital benefit limited to R50 000 per family per annum .

The above financial performance will sustain the fund’s solvency ratio at 31, 6%, well above the minimum ratio of 25% set by the Council for Medical Schemes, and satisfies the principle that a breakeven financial result be targeted. However, please bear in mind that in determining the projections certain assumptions are made and historical data is used, such as the membership numbers at certain Barry Canning, Chairman dates. Any material deviations Board of Trustees - MOTO Health Care from these could have a significant impact on the projected results one way or the other. In the November article I alluded to the road show that was being planned to introduce the new benefits to stake holders. This has since taken place and I am pleased to report that feedback indicates that the new benefits for 2010 were well received, particularly the Classic option’s savings plan. Here is further clarity on the mechanics of the savings plan: •

22% of the contribution will be allocated to the savings. This is in line with the requirements of the Medical Schemes Act.

•

A sum equal to a full year’s savings will be available for claim payments in the first month, pro-rated if a member joins during the fund year.

•

Should a member terminate membership and a shortfall exists between claims paid and the amount saved, the scheme reserves the right to recover such shortfall from the member.

•

Any savings accrued at the date of termination of membership will be refunded within four months of termination date, but the scheme may offset any debt owed to the fund against such savings, e.g. outstanding contributions. No interest will be paid or charged on the savings account.

MHC’s 2010 Budget. The financial projections for 2010 are as follows: Gross contributions

R983,333,000

•

Net risk contributions

R856,037,000

Net relevant healthcare expenditure

R767,215,000

Gross healthcare result

R 88,822,000

Admin expenditure

R 85,245,000

Finally, a summary of benefits for 2010 and an option selection form have been sent to all members. I urge all members to carefully consider their healthcare needs for next year and to select the most appropriate option. Even if a member elects to remain on the same option he/she is still required to complete the form to enable the administrator to verify and update each member’s details on the data base. In the event some members missed the deadline of 30 November, 2009, for the submission of the option selection form, I urge them not to leave it but still to submit it without further delay.

Managed Care Net healthcare result

52

R 20,468,000 (R 16,891,000)

Investment income

R 23,743,000

Net surplus

R

6,852,000 December

2009

–

January

2010

Commercial

Vehicle

News

Peugeot introduces the Tepee to the South African Market

The 2010 World Cup is almost upon us, and the hospitality industry will soon be making demands on vehicle manufacturers to deliver people movers with class and panache. With this in mind, Peugeot Motors South Africa has introduced the Tepee, a generously equipped eight-seater which also won’t go unnoticed by families who want an enticing mix of space, comfort and safety.

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eugeot Motors SA says in its press release that life is too short to drink instant coffee; life is too short to drink blended whisky, and not too short for single malts. It adds that people are meant to travel in style, even if they travel en mass. That’s why they’ve introduced the Tepee to the local market. The Tepee shares chassis fundamentals with the acclaimed Expert van range, making it eminently suited to an application where it may be required to spend many hours on the road everyday, much of that time with a substantial cargo of passengers and their luggage. In essence, the Tepee represents a new way of travelling thanks to its bold design, car-like dynamics, and an exceptionally spacious and comfortable cabin which can quickly and easily be configured to carry between two and eight occupants. And with Peugeot’s leadership in the turbo diesel field with their HDi engine range, the Tepee’s power plant is ideally suited for its function. Under the stubby bonnet is a willing and able version of the company’s direct injection, common-rail 2,0-litre HDi, rated at 88 kW at 4 000 rpm and 300 Nm at just 2 000 rpm – this high torque output at a low speed makes it ideal for carrying heavy loads at low engine speeds. When mated to the light-shifting ML6C six-speed box its breadth of capability is enhanced further, giving it a combination of lugging power and open road cruising ability which is hard to match. The engine meets Euro 4 emission standards and emits just 198 grams of CO2 per kilometre. This translates into fuel consumption of just 7,5 litres per 100 km in the Combined cycle, dropping down to 6,5 on the open road. With an 80 litre fuel tank, operators will waste little time at the fuel pumps and because it is so clean-burning, oil changes are required only every 30 000 km.

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Speed-sensitive electro-hydraulic steering and the combination of MacPherson struts with a coil-sprung torsion beam axle at the rear ensures ride comfort for all three rows, and a cabin designed by Pininfarina meets the driver’s needs in terms of comfort and convenience, further attended to by a height-adjustable seat with lumbar support and a steering column which adjusts in vertical and horizontal planes. All doors lock automatically once underway and cruise control is just the press of a button away to reduce the driver’s workload once on the freeway. The front passenger also gets an individual seat, which like the driver’s, has a folddown armrest. Passengers are able to dictate their own heating and cooling requirements thanks to separate air conditioning controls, while there are sliding windows for those in the second row, and hinged rear quarter lights for those even further back. All of this results in an open and airy ambience, conducive to a pleasant motoring experience. Access to the second and third rows is via a sliding door on each side of the vehicle, with a tilt/fold mechanism for the 60:40 split ensuring easy access to the third row from either side. The Tepee is a first-class people carrier and because people invariably come with luggage, there’s plenty of space for that. There is 761 litres of storage space when loaded to window level and a giant 1 195 litres up to the roof. And that’s before a single seat has been removed. In addition to a high level of dynamic ability from a chassis which behaves with decorum seldom associated with people-carriers, the Tepee benefits from Peugeot’s deep-seated belief in occupant safety as a core of vehicle design. The Tepee model sold in South Africa also has driver and passenger airbags and disc brakes all round enhanced by anti-lock and electronic pressure distribution systems.

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2009

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January

2010

Commercial

Vehicle

News

Peugeot Increases its Commercial Vehicle Expertise Footprint in South Africa During the Peugeot Tepee Launch in Gauteng on 6th November 2009, it was revealed that PSA (Peugeot and Citroen) is the leading commercial vehicle manufacturer in Europe, and that PSA had a remarkable LCV market share of 22%. This is a startling statistic, compared to the South African scenario. Granted, South Africa’s LCV profile is dramatically different to Europe, but it was instructive to learn that in the fussy and demanding European market, PSA rules the roost.

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ith this in mind, and in the knowledge that Peugeot has what it takes, Peugeot Motors South Africa has dramatically increased the appeal of its light commercial vehicle range, by equipping and up-skilling four dealerships to cope specifically with the needs of the business user and fleet operators, and with the intention for “the lions to take control of the concrete jungle”. Dubbed Light Commercial Vehicle Centres, these outlets, as well as continuing to sell passenger vehicles, will direct additional focus towards the Partner, Expert and Boxer lines. This will give the market access to one of the most modern and competitively-priced ranges of vans in the country, with a size and load capacity to suit the vast majority of users. Situated at key points around the country (East London, Tyger Valley, Pinetown, Woodmead and Isando) these outlets will be staffed with specially trained sales and service personnel and will be equipped with the necessary infrastructure to maintain and support this kind of vehicle. However, commercial vehicles, including the recentlylaunched Expert Tepee eight-seater bus, can be sold by any of the 26 Peugeot franchises across Southern Africa though not all as yet have the infrastructure and staff to provide the tailored aftermarket support. More dealers will qualify as LCV outlets over time with the objective of making it possible to meet customer needs anywhere where there is a ‘Blue Box’. “A van has become a far more practical and intelligent method of carrying a large load in a secure environment, protected from the elements and secured in a safe manner,” says Jean Francois Bacos, Peugeot Motors South Africa’s Managing Director. “Cargo is extremely valuable and an enclosed vehicle increases the chances of it getting to its destination safely. This also extends to the dynamic ability and feaDecember

2009

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Anthony Olivier, General Manager - Sales, and Jean Francois Bacos, Peugeot Motors South Africa’s Managing Director, are confident that they have the winning combination of vans and people carriers

tures such as the low floor of a Peugeot van ensures minimal dynamic penalty when laden. We have also accelerated technical training at these outlets and showroom and workshop staff have been given the necessary skills, with the key objective being to ensure minimal downtime for the end user in the event of the vehicle needing servicing or repairs. Each dealership is obliged to meet high standards in terms of training, and commercial vehicle experts have worked with sales staff to ensure they understand the specific needs of the commercial vehicle buyer. This includes gaining knowledge on aspects such as the legislation pertaining specifically to loading a vehicle, as well as the necessary technical knowledge to enable them to make informed decisions on aspects such as how gearing, torque, load and road gradient affect a vehicle’s suitability for a specific task.” Each outlet has also invested in equipment and special

January

2010

tools to enable them to service and maintain these models. Light Commercial Vehicle Centres will also have access to a dedicated parts contact at Peugeot head office in Johannesburg for speedy ordering and delivery of parts. As well as keeping an inventory of fast-moving items (which will be constantly monitored and measured to see how these patterns change), breakdown parts not on this fast-moving list will be delivered overnight. “There is huge room for growth at this end of the market and as the end-user becomes more mature, the advantages of a van-based solution to transportation needs is becoming more apparent,” says Bacos. “These outlets will enable us to better meet the needs of existing Peugeot commercial vehicle owners and give prospective buyers another compelling reason to buy Europe’s leading LCV”.

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Commercial

Vehicle

News

BOXER The Boxer heralded the start of Peugeot’s assault on the local van market and in 2002. A former European Van of the Year, it remains the lynchpin of the brand’s commercial vehicle line-up, with two wheelbase choices and high and low roof heights for a total of five van derivatives, as well as chassis/cab configurations with long and short wheelbases. Two HDi turbo diesel engine capacities – 2,2 and 3,0-litre are available; the smaller rated at 88 kW/320 Nm while the larger one has an impressive 116 kW and 400 Nm. All Boxers have a height-adjustable steering column and a fourway adjustable driver’s seat. The electronic instrument cluster wouldn’t look out of place in a Peugeot passenger vehicle and the large, clearly-marked gauges have plenty of class. Every aspect of the cabin layout and design was shaped by one consideration: minimising the driver’s load. Therefore convenience features include a removable clipboard, an A4 storage compartment, mobile phone holder, ashtray with cigarette lighter, and a 12 Volt power point. There is plenty of additional oddment space in the doors too.

PARTNER The Partner, released locally just over a year ago, is already making an impact in the way it provides an affordable, secure and practical solution to mobility needs in a compact package. Internationally, nearly 1,5-million Partners have been sold since 1996 in a segment which continues to grow. The Partner is available with either a 1.6-litre HDI or a 1.6-litre petrol power plant, and is capable of carrying a 3.3 cubic metre volume and a payload of 850 kilograms. Significantly, the width between wheel arches is sufficient to accommodate a standard Euro pallet, which measures 1,2 by 0,8 metres. With a wheelbase of 2 728 mm, the Partner can comfortably swallow two of these. Designed by professionals for professionals, one of the new Partner’s key features is the Multi-Flex bench seat, which means it can legally carry three occupants. Its modular design incorporates a fold-flat outer seat enabling Partner’s interior to be quickly reconfigured to carry a load length of three metres. In addition, the backrest of the centre seat can be folded forward to act as a handy work surface.

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EXPERT Spending all day behind the wheel of a van loaded with a valuable cargo can be a tiring business, which is why Peugeot chose Pininfarina to design the Expert’s cabin with minimal driver fatigue as a prerequisite. Features include a height and reach adjustable steering column, a gearlever which sprouts from the centre console (and is therefore just a hand-span from the rim of the steering wheel), and a massive windscreen with a glass area of 1,68 m 2 to provide a commanding view of the road. The Expert is an exceptionally distinctive vehicle, but the styling isn’t just about getting noticed. With its steeply-raked windscreen and tight-fitting curves it has a wind-cheating shape, and when coupled to an efficient 2,0-litre HDi turbo diesel ensures low fuel consumption and emissions. Expect fuel consumption in the region of 7.2 litres/100 km in the European Union combined cycle and just 194 grams of carbon dioxide emitted per kilometre from the 88 kW/300 Nm power unit. A six-speed gearbox results in it being exceptionally frugal when cruising, as well as providing a el for, so trav spread of ratios which enable it to cope easily in n catered ee b o ls a e v y ha stop-start conditions when fully laden. xi fraternit in style, folks!!!! And the ta

by Marcus Haw

Tyres

and Their Contribution to Safety in Motoring

As we approach the festive season our nerves become overactive. Especially on the roads! Our roads seem to have a large percentage of bad drivers on them all year. But at this time of the year they seem to double in numbers and the stress of the year; the increase in alcohol freely handed around at Christmas parties etc, doubles the mayhem, not the numbers. What ever the reasons, it seems the road user behavior gets worse. This is tragic for the country, horrific for the families involved and extremely costly in all ways. For the fleet owner, the cost implications can be catastrophic, and as mentioned in the previous issue, planning for the future can reduce incidences of disaster to a large extent. Very few if any fleet controllers or private users take the season seriously enough to bother. We can’t really expect it when the deaths on the roads each year affect the road users themselves so little that they don’t even try to change their habits. So we have a situation where the very people who own and control the highest percentage of vehicles on the roads become those who take no responsibility for any of the actions which add to the scenarios which lead to the “Season of Death”. You want to read some interesting facts about tyres, how to get better life out of them and how to save money with them. You should have a responsibility, making sure that the vehicles are used in the correct and respon-sible way. However, at this time of the year so many fleet owners don’t see to any of these key aspects. We are also road users, and we have spent a lot of time and effort on trying to get the road safety message across to you all. We do it through showing tyres as the safety critical items they are, and by showing you how to use them correctly

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and safely. As road users alone we have the right, but we would be remiss if we didn’t connect the dots with our road safety inter-ests. The problem does not lie with fleet controllers alone. The problem lies with the culture we have all developed. A culture of a lack of care; a lack of consideration for others and a total lack of respect for the law. And the worst is that it is a culture that is growing. Witness how stop street signs have all become yield signs. When last did you see someone take any notice of the or-ange light on a robot? They used to mean CAUTION, slow down a red light is about to come on. Now they seem to mean “hit the loud pedal” and get through the red light before the other traffic starts moving. Witness too, while sitting in a traffic snarl-up on a highway, how many people fly past you in the emergency lane. What has happened to us? Eve-ryone we speak to agrees that we should consider revoking licenses. The point is that road laws appear to be a thing of the past. And those who like to blame others but themselves need to look again. The culture is growing! And while we hear all the platitudes of how policing is going to be improved, the question has to be asked; WHEN?? Our roads are a nightmare and tyres are a part of it all. Have you noticed the growth in roadside tyre dealers? Have you noticed that more and more road users are actually buying

their tyres from irresponsible traders? It is scary. We have actually seen a guy with an ML350 parked at one of these traders while they fitted tyres to his trailer. Believe it, people behave strangely. And they still don’t see tyres as the safety critical items they are. So you see, while the blame for all the idiocy, madness and recklessness, we face on our roads does not lie solely with the fleet owners/controllers, we have to look at one fact very seriously. Around 60-70% of the cars on the road are fleet owned. Probably a similar amount of the bakkies on the road are fleet owned and the great majority of HCV vehicles are fleet owned. These are not verified figures but can’t be too far off, and the fact we have to face is that therefore a very large percentage of responsibility for the way they are used rests with the fleet owners and controllers. And if they are not taking the necessary care of their tyres, you can put your years salary on the fact that they are not looking at other factors either. Road safety rests with each and every one of us who use the roads. It’s not up to the ‘others’. It’s up to us. Placing a “How am I Driving” sticker on the rear of your vehicle doesn’t take care of your corporate responsibility. Your corporate responsibility should include the highest standards of vehicle maintenance. It should include the highest standard of driver training, and the highest penalties for drivers transgressing road laws. It should include leading by example, and the top company people

should be the first to attend advanced driving courses, proudly displaying their certificates in the reception areas. Their vehicles should be in immaculate condition at all times and be exceptionally clean. And their tyres should be of the finest quality, in the best condition. The fleet vehicles should become industry leaders in appearance and quality of workmanship and maintenance. How many of you are taking your responsibilities seriously? How many of you care enough to take the steps mentioned above?

If the surveys we have recently been involved with, all of which have been fleet related, then none of you are. The tyres which have been checked in these surveys have been remarkable in two main ways. One is that that the inflation pressures were not as bad as we had expected them to be. In fact we found a bigger percentage of overinflated tyres than under. Very unusual! The second remarkable fact was the amount of tyres with extremely low remaining tread depths. It is most likely a sign of the economic panic, but it is a very frightening situation. If the tyres on fleet vehicles are being allowed to run with dangerously shallow tread, at the start of the rainy season and the start of the holiday period,

there is a serious lack of responsibility within the minds of those in control of those fleets. Only six fleets were involved, so no-one is suggesting that this is a country wide phenomenon but it remains a major worry. How many fleet vehicles are in this condition? How many fleet controllers are taking chances like this to get their budgets looking better?

One last thought. How many of you have arranged transport for your staff to get their inebriated souls safely home after the imminent parties? Those that have, well done, but please check the tyres on those vehicles before you load your staff in them.

Tyres are a wonderful indicator of the true overall condition of a fleet. If the tyres are not being looked after, you can

lay big odds that the brakes are not being looked at, service intervals have been lengthened and general maintenance has become low priority. The fleets we have recently checked were not impressed with our reports, and any future dealings with them are seriously in doubt. Road safety is a serious matter, and anyone stupid enough to play with it should be arrested for attempted murder. This is not an exaggeration, because people will die on our roads this festive season, and you as fleet people can increase these deaths, or you can reduce them. This is a fact. We are all responsible, but you have more vehicles in your control, so your responsibility is greater.

Have a wonderful Christmas and a safe and restful getaway. Let’s all look forward to a year of recovery and prosperity. Think Safety and Drive Safe.

www.bridgestone.co.za 63

Personal

Q&A by Roger McCleery

profile

INTERVIEW WITH DAVE POWELS MD OF VWSA

South Africa has produced great motor men over the years. Whether they be local or foreigners, they have led some of the biggest motor companies in the world with distinction. The two biggest motor companies in South Africa are Toyota and VWSA both run by top young South Africans. One of these is Dave Powels, the MD of Volkswagen, who has been in the firing line in the motor business for the last twenty years – here and overseas. When did you join VWSA? In 1989 when I was 27. I was appointed as a Supervisor in the Tax Accounting Department before moving into Purchasing Logistics, which is the heart of any assembly plant. In my third year I was given the job of managing the Export Department at a time when we were only exporting components abroad but with bigger plans to export complete cars in the future. In a competitive market it was important to keep our customers overseas happy with the correct parts and proper packing. When did you start exporting cars? In the early 90’s we received big orders from an emerging market in China for the A2 Jetta, which was a defining moment for us at VWSA. From then it was travelling all over the world looking for customers to supply components and cars to. By then I was the GM of Finance Controlling which is a vital part of this business. I did this for three years. Did you stay in South Africa? No. I was called to Head Office in Wolfsburg to work in the Finance Department for a few years and then down to Audi’s Head Office at Inglostadt where I worked for the company’s Finance Director. Do you speak German? I learned German there as did my wife, Kathi and my son, Christopher, now 13, who was born in Germany. After all that experience in Germany? Then it was back to South Africa as Financial Director at VWSA. This was at a time when the country was starting to go through an economic decline so the job was just that bit more difficult. I did this until I was offered another position abroad again. Where did you move the family to this time? To Sao Paulo in Brazil, which is the heart of the motor industry in South America. What language did you speak? Portuguese. So did the family. My daugh-

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ter, Rebecca (8), born in Port El.izabeth, speaks fluent Portuguese, as does Rachel (5), who was born there and has a totally Brazilian attitude to life. Big things happened in Brazil during the five years you were there? I was Vice-President responsible for Financial Services and Corporate Strategy as VW in Brazil was big into car and component exports and getting into trucks as well. This was challenging in 2002. I timed it right once again. Brazil was going through a currency collapse. Going into 2007? I was sent back to South Africa as MD of VWSA Group responsible for Volkswagen, Audi and Commercials. Guess what? More challenges in South Africa as the country was going through a currency collapse as well. Policy of VW in South Africa in the future? Volkswagen has been in South Africa for 58 years. We are dominant in the passenger car market and we mean to continue. Commercials will be a big part of our strategy. Now that the market is so open it brings big pressures. Priorities are to be competitive cost-wise and of course, quality, which is a given and which is ongoing. Exports are an essential part of any vehicle plant in South Africa. We have exported cars and components since 1991. First was the A2 Jetta, followed by the Golf 4 and the Golf 5, the Polo and the Jetta 5. More local content in our product is a must otherwise why have a car plant in South Africa. We have introduced new models in 2009 and will continue to do so. A one-ton pick-up from Argentina is high on our list which will help us in our bid for new business. People play a big part in our strategy. After all, we make people’s cars. We must give our stake-holders and share-holders a good return on their investment. We are fortunate that Germany and particularly our Chairman, Dr. Jochem Heizmann, who is a Volkswagen Board Member, understands the BEE policy in the country, our needs and other quirks. December

Where did you grow up and go to school? I was born in P.E. and went to school at Marist Brothers and then UPE. From my school days I always wanted to be a Chartered Accountant like my father. After qualifying I went to Deloittes for a while and then wanted to go into banking. Before making up my mind on this, I decided on a more exciting future, something which was more global. Sports you like? Number 1 is rugby. Coming from PE I have done the lot. Swimming, wind-surfing, water-skiing, athletics and cricket. I go to gym three to four times week. Mentors in your career? Peter Searle, former MD of Volkswagen, who way back had faith in me and took a chance offering me a job that didn’t exist at the time. The other one was Hans Christian Maergner, who was the MD in Brazil, who was also an MD of VWSA. I worked with this impossibly demanding man for seven years. He opened my eyes to the technical side of the motor business and also how to handle adversity with a never-say-die attitude of guts and determination. Did you have a love of cars when you were growing up? Always. When I was at UPE, I loved Alfa Romeos and bought a GT Junior for R600. I totally dismantled it and rebuilt it, and got to know the workings in detail of a motor car the hard way. What will you do when you retire? At 47 I am way off that but I would like to help under privileged people, to give them opportunities that I have got in my life from VW. Also, I get restless and if I am healthy, I would love to travel.

2009

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January

2010

Q&A

by Roger McCleery

Roger McCleery asks the questions See how many of these 20 Questions you can answer. 1. How many Citi Golfs (Golf 1’s) did Volkswagen South Africa manufacture (to the nearest 1000) in 31 years? 2. Who owns Zwartkops Racing Circuit? 3. Who is the new President of the FIA? 4. Name three teams who have withdrawn from Formula 1 in the last year. 5. What tyre company is withdrawing from Formula 1 at the end of 2010? 6. Knysna had a first ever motorsport event in 2009. What was it? 7. Who was the first winner of this Knysna Motorsport Event? 8. How many makes of motorcycles have won the 500c /MotoGP Championship since 1949? 9. Name them. 10. Where was the Trabant – the world’s worst car ever made – produced? 11. What company in the USA designed the first Jeep? 12. Stirling Moss was a World Motor Racing Champion. In what class? 13. In what year was the first Cape Grand Prix held at Killarney? 14. What was Elvis Presley’s favourite make of car? 15. What company patented the first plastic bodied car in the 40’s? 16. In what year was the last Volkswagen Beetle manufactured in Uitenhage? 17. The late Angela Heinz founded the annual “Angela’s Picnic” in Johannesburg. What car did she drive? 18. Two South Africans competed in the 1964 Monte Carlo Rally in a 1071 Mini Cooper Super S. Who were they? 19. How many different vehicle manufacturers compete in the South African Car Market? 20. Castor Bridge just outside White River in Mpumalanga is famous for what?

Answers on page 107 December

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Customer

C.A.R.E.

Customer Relationship Management – doing a real live example Theo Calitz has been working in or involved in the motor industry for the last 16 years. A Mechanical Engineer by profession, he is passionate about customer care and his company, T-R-M specialises in automotive CRM for the automotive industry and has been doing it for nine years.

I am currently working on a proposal for one of the automotive companies in South Africa. Going through the details of the plan I realised that this illustrates a typical CRM strategy very well and for those readers that have not had a lot of exposure to CRM, this will give a nice condensed look at what CRM is all about.

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RM is normally part of the marketing department however some motor companies also have CRM personnel in their after sales department. This area of specialisation is different to other marketing activities in the sense that the strategies normally spreads over a number of years and, very importantly, this area can normally measure its effectiveness in outcomes like sales, unlike other marketing and sales departments.

Let’s look at the elements of the CRM concept I am working on: Customer Database: This is the heart of any CRM programme. In order to develop the relationship with the customer, you need information about them. The better the data, the better the ability to meet the customer’s need even to the point where you can ‘wow’ them time after time. This is not easy though. The data must be correct and up to date otherwise there is a real risk of actually irritating or even upsetting the customer. It always feels to me that my bank wants my information over and over again. If they do not seem to be able to keep my data, why bother giving it to them? I am always surprised at how few automotive companies actually get this right. They have these streams of data coming via the internet or campaigns, normally what we would call Leads or Prospects. They also get information from dealers for warranty purposes, etc. The dealers are notoriously bad though, they want to hit their targets and providing the right and complete data is not high up on their priority list. The more successful automotive companies address this challenge by actually paying the dealers for good data (!). Once a good quality database is established the next challenge is to manage the data flows very well in order to prevent corruption of data. Example of data flows: the customer phones into the call centre and there is an opportunity to validate and update information, a customer fill in a OTP (Offer to Purchase) at a dealership or when a customer is phoned to establish their satisfaction with the service received (CSI), etc. The important thing is the database must not be spoiled in any way by overwriting good data with bad data or creating duplications. For this reason the best companies has a dedicated person in charge of their customer database with the data going into it. This person’s job is to achieve maximum data accuracy and they tend to use words like cleaning, scrubbing and deduping!

this is where the fun starts. Having the data means that you can see who your customer actually is. You can do profiling. This indicates the demographics of your customer like gender, age, where do they stay, where do they work, etc. as well as psychographics like what sport or hobbies do they enjoy, are they family orientated, adventure seekers or art freaks. What radio stations do they listen to and what magazines do they buy. Exciting stuff! All this helps tremendously with the questions marketing people grapple with; where should they advertise, what media should be used, what exact magazine or newspaper? What type of marketing campaign would be most effective to which group? With all the new electronic media coming to the fore like MMS and Mobi sites, Mixit and Facebook, there is a proliferation of possibilities. Loyalty Programme: This is where the data really starts to work. The idea is to encourage and recognise loyalty of customers. It mostly starts in the form of a Contact Programme where regular interaction with the customer is established. This can start with a Welcome Pack and/or a welcome message (e-mail, SMS or letter in the mail), followed by regular e-newsletters or magazines (which is quite costly to produce but nevertheless quite popular with customers if it is a high quality magazine). The next step is to respond to important events like birthdays, birthdays of product (e.g. the car) and other events like Valentine’s Day, Woman’s Day, Father’s and Mother’s Day, etc. More sophisticated campaigns attempts to identify important events in customer’s lives like a baby being born, child matriculating, relocation or even separation. These events many times results in a change of sorts which affects the mobility needs and a good time to be interacting with the customer. Invitations: It is always difficult to know who to invite to events and launches of new products. Interacting with the customers does help to identify the big fans and product ambassadors out there. These people will always promote your product and it is important to recognise this by involving them in these activities. This is than also an objective of a CRM strategy. In summary: As can be seen by this example; the idea of CRM is very simple but the execution to a database of customers that can be many thousands is a bit more involved. Please remember next time you receive your personalised invite to your favourite brand’s new model launch; a lot of work has gone into that invite!

www.t-r-m.co.za T 0861 TRM TRM

Extracting and Profiling: As can be seen a lot of effort goes into setting up a database but what happens now with this data? Well,

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F 086 686 8382 December

2009

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January

2010

Customer C.A.R.E. Programme – sponsored by Federal-Mogul

Module SEVEN - THE ROAD TO DAMASCUS Before you read module seven, please refresh your memory by reading modules one to six. This is important, as you should regularly refresh yourself with the philosophies expounded - this is necessary to fight the bombardment of negative images of the customer that one is exposed to continuously in the working environment. We have to fight fire with fire, and the antidote to negative brainwashing is positive brainwashing. Therefore, read and reflect, read and reflect, over and over again. Remember, you are fighting years of indoctrination.

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e ended off the last module with the chief executive looking like an idiot, with the laying of a wreath at the tomb of the unknown customer. And this same humiliation must also be the fate of every single employee. Why do I use words like idiot and humiliation? Is it not better to use words like pride and celebration, or victory and enthusiasm? We should soar with the eagles, not gobble with the turkeys. Yes, we should, but these superlatives will come later. For now, at the beginning of the process, we are looking for humility. Humility is the cornerstone of customer care. It is the foundation on which the three Trilogy Truths have been conceptualised, and is the bedrock on which a true customer care culture is built. Customer care comes from the realisation that one is nothing without the customer. It is a feeling similar to that of the philosopher who looks upwards at the immense array of stars, or of the mariner who looks over the vast expanse of ocean, and they realise how insignificant one really is. But it also gives one a sense of awe, a feeling of peace, and a surge of power, knowing that you are part of this wonderful, inexplicable uni-

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verse. This humility is the start of the customer care journey, and the inexorable path to the road to Damascus experience, the blinding realisation that C.A.R.E. simply means CUSTOMERS ARE REALLY EVERYTHING. As I’ve said many times before, and I’ll say it thousands of times again, once this is understood intellectually and emotionally, everything you do from 8 to 5 will fall into place, and you will have the right perspective. If the truth be told, once this basic premise is in place, no further training is necessary, as you will automatically be a customer care professional. Unfortunately, even if you are one of these very rare creatures (endangered or extinct might be closer to the mark), it is very likely that your staff do not agree with you. As a word of warning, if you do not prepare them properly for this earth shattering realisation, and just announce it out of the blue, they will most probably consider you off your rocker. The secret is to get them to come along for the ride. And let us not fool ourselves; it will be a crazy roller-coaster ride. But we MUST have a go. The alternative is ghastly enough to contemplate -- crushing boredom, rutted day after rutted day, surviving month to month, management account after management account, annual audit after annual audit, and not having

December

the faintest clue as to how we actually put something on the bottom line, despite ourselves. Therefore, take your staff on this wonderful journey of adventure, to explore exotic parts of your business that have never been seen before, and where they actually get fascinated by the customer.

WHAT - THE CUSTOMER? Of course, we all know that customers are smelly little creatures. They are manipulative, scheming, always looking for a bargain, taking credit where no credit is due, wanting everything for nothing, en so voorts, en so voorts. I could go on and on and on ......For all we know, in their private lives they could behave quite badly. They could be bulimic, adulterous, vain, rebellious (not necessarily a bad thing), spiteful, hurtful and shallow. They may even cheat on their golf handicap. Yet, with all of these faults, we MUST get our employees to be fascinated with the customer. Not only fascinated, they must be besotted with the customer, and very importantly, they must LOVE the customer. Whoa, hold it right there, I’m talking emotional love, not physical love.

2009

continued on p70

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Customer C.A.R.E. Programme – sponsored by Federal-Mogul

from p69

CAN THIS BE DONE? Do you believe that this can be done? Can we take our staff ’s minds off next Saturday’s rugby game, or that drink at the club tonight? Can we make our staff absolutely fascinated and moonstruck over the customer, even a customer with all the faults mentioned above? YES, WE CAN ! And it has been done before - there is a significant precedent to prove that perceptions can be amazingly manipulated. Reality can be so distorted that we can make “Alice in Wonderland” look quite pedestrian. In the next chapter, this incredible story shall be unveiled. A true story, a story which is stranger than fiction, which shall serve as the driving force, and the confirmation of my belief, and our strategy, to make the customer KING, for everyone.

DISCUSSION POINTS 1. We are constantly being exposed to negative images of the customer. Give some examples. 2. If you start becoming fascinated by the customer, it will allow you to explore exotic parts of your business that have never been seen before. What am I talking about? 3. People are always trying to get a bargain, and merely the perception of getting something for nothing excites them. This is human nature. Are you different? Discuss. 4. Why do people look forward to the week-end? Discuss the good reasons and the bad reasons.

Mud and Guts On the 17th of October 2009 the WCCC (Western Cape Challenge Club) hosted the Monroe National 4x4 Extreme Challenge at Dirt & Dust, Durbanville. This is the only National event in the Western Cape for the year and competitors took up the challenge enthusiastically to pit their skills against drivers and their vehicle. Participants arrived in a smorgasbord of vehicles with varying levels of modification to tackle the course with gusto. The vehicles had to negotiate obstacles that were designed with a great deal of imagination and a desire to make it really, really difficult. However, despite the fact that the word Obstacle means to: impede, stand in the way of, or hold up progress, the mud, water, steep climbs and ditches – merely added to the determination of the teams of driver and co-driver. The adrenalin pumped (in both the spectators and participants) and there were some seriously anxious and exciting moments. And large dollops of humour. Philip Lutz commented that "Monroe is once again very pleased to be able to sponsor this important annual 4x4 event which we have been doing since 2006. We have an extensive off-road range of shocks such as the price competitive heavy duty Monroe Gas-Magnums, the high performance gas heavy duty Monroe Adventures or the ultra heavy duty gas tri-tube 9-way adjustable Ranchos’, an event such as this is a good fit with the company’s products range and target market."

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Anyone got mud vision? The driver didn’t let this little ‘challenge’ stop him from driving out of the water hazard anyway

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Diamond

Dialogues

Editorial Partnership Giel Steyn 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 distributor 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.

Opening the doors of perception to Standards and Controls – Part Two Last month, we discussed what the SABS (South African Bureau of Standards) does, and gave a brief history of this valuable institution and the recent legislation enacted to create the NRSC (National Regulator for Compulsory Standards) to bring effect to the separation of duties of the SABS and the newly created NRCS. We now discuss the rationale behind the NRCS.

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he National Regulator for Compulsory Specifications Act (Act 5 of 2008) was promulgated in Government Gazette 31216 on 4th July 2008 and took effect on 1st September 2008. The Act transferred the Regulatory Division of the SABS and all regulatory functions of the SABS to a new statutory Department of Trade and Industry (DTI) institution - NCRS. The new Act also transferred all the employees in the SABS Regulatory Division to the NRCS, together with relevant regulation including compulsory specifications, agreements, assets and obligations. The legislation was the culmination of a 10year process intended to align South Africa with world best regulatory practice and to meet the requirements of the World Trade Organisation (WTO) agreement on TECHNICAL BARRIERS TO TRADE (WTO TBT Agreement).

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Thus the NRCS effectively replaced what used to be known as SABS Regulatory, and the reason for this change was the realisation that, together with the problems around perception, that the SABS as an entity, no matter how principled or pure its objectives, could not be seen to be both judge and jury, and even prosecutor and defence lawyer, for all the activities under its jurisdiction. A clear delineation of duties was necessary. With the creation of the NRCS the SABS was relieved of this odious burden and could revert to the critical role of setter of standards, and the equally important function of being a testing house, without the additional encumbrance of being the body to enforce these standards. It was simply unreasonable to expect the SABS and its employees, who were working with various companies in different roles and capacities, sometimes with emotional ties, to show no bias whatsoever. The SABS was in the invidious position of playing both good cop and bad cop, and it was clear that another oversight body was needed, to clear up the confusion, and perception, no matter how right or wrong this was. The NRSC solved all that.

in the interest of Public Health; Safety; and Protecting the Environment. From an automotive perspective, the products that are covered are typically those that fall under the “life and limb” category, such as hydraulic brake hose, glass, lamps, friction material, seat belts, tyres, baby seats, side mirrors, motorcycle helmets, and reflective tape for commercial vehicles, buses, and trailers, etc. Giel Steyn does mention that it is surprising that there are no compulsory standards for suspension parts, and comments that this should be addressed urgently. The NRCS inspectors focus on the specified products that fall under the compulsory specifications via inspection and they have the right to inspect anyone who distributes this product. They also have the authority to impound or quarantine this product at warehouses, outlets, ports, or wherever this product is stored. If the necessary procedures are followed, this product can even eventually be destroyed if it is deemed to imperil public safety or health.

The preamble of the NRCS Act states that the right of the public to health, safety and environmental protection is entrenched in South Africa's Constitution, and it adds that the National Regulator for Compulsory Specifications (NRCS) protects these rights by administering and enforcing compulsory specifications

In the next issue of ABR, we shall look at what exactly is a compulsory specification, and how responsible companies such as Grandmark International go about in following the procedures as laid down in the importation of product that meets and even exceeds these standards and at reasonable prices. December

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Alert In the November 2009 issue of ABR, we introduced AAMA Alert, a monthly column to look at the issues that affect the automotive aftermarket. In the first column, we brought to light the problems associated with a volatile rand, and promised to look at this subject in more depth in the next issue of ABR.

Currency Challenges Challenge is a word that is frequently used and abused. To such an extent that some commentators have even suggested that the word be banned from business discourse, as “challenge” has become the flavour of the month, displacing “problem” as the description of choice to describe a situation which requires action and foresight. However, it would definitely not be hyperbolic to describe currency fluctuations as extremely challenging for the South African businessman.

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o get a handle on this, let’s look at a real life scenario. Company A is a company that trades in automotive product. It has a manufacturing base, but also has access to manufacturing bases around the world, as it is part of a multi-national. This multinational makes decisions the old fashioned way, i.e. it sets up manufacturing bases where it is economically relevant. This relevance is based on factors such as costs, location, viability, and very importantly, long term sustainability. Company A, being a patriotic company, wants its parent company to set up a widget plant in South Africa, and does its business study based on a Rand/Dollar exchange rate of 10:1 (Don’t laugh, the Rand was over ten to the Dollar a mere ten months ago!). This commodity is available from the parent company’s other plants worldwide at 13 dollars, and Company A needs to meet this and wishes to make a 30% gross margin. Thus a landed cost of 10 dollars is the target, and all the sums are done, and the figures come out just right – it can be done. Company A can make the widgets for R80, and with judicious expense control and fast turn of inventories, the targeted return on investment can be met. Hooray! Problem solved, and a challenge met. The factory is built, with parent company investment, and the future looks rosy for all and sundry. The parent company gets the product at the right price, Company A achieves its financial targets, and the country earns much needed foreign exchange. The contracts are signed and amongst much fanfare a ceremony is held with the attendance of many digni-

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taries, and the first sod is turned with a gold plated shovel. Let the good times roll! Unfortunately, before the factory has reached roof height, the rand has strengthened to 7,5 to the dollar. Good news for inflation, and good news for the petrol price, but not so good news for the sleep patterns of the CEO for Company A, because his number crunchers have told him that the 10 dollar selling price for his widgets now translates to R75, R5 below his cost price. Eish, a great business plan in flames, and a CEO in the hot seat. Of course, his local profits now look great when reported in dollars, and his imported product racks up the margins, but what is the mix, and how do you plan intelligently for the future? It makes a night out on the tables at Monte Casino look like a well managed portfolio.

Each business has its unique characteristics, but whatever situation you are in, intelligent planning is well nigh impossible. The automotive aftermarket is crying out for a more stable environment. This means a stable currency. The question is, what interventions are needed to achieve this? More on this debate in the future. December

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Howard Keeg follows the action

River Deep, Mountain High

On the e scarpmen t of Mpu River sit malanga, s amongs White t deep rive mountain rs and h s, but on igh the evenin 10th Nov g of Tues ember 20 day, 09, the h and thre eavens o atened to pened turn Whit ly into a e River r series of apidgrade six confirmin g its wat rapids, a nd e rway nam the thun e. My oh der was a my, s loud as klap, and an Ike Tu the light rner ning and as vivid a downpou nd gliste r was ning as T ina’s tor so.

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he final Partinform show of the year, held at the Ingwenyama Conference & Sport Resort, was nearly engulfed by this extraordinary show of strength by Mother Nature, but she flattered to deceive, and after half an hour of pyrotechnics that would have made Vincent van Gogh proud, and a deluge that would have quickened Noah’s pulse, the gods rested and the show went on. But it was a close thing, and at 17h15, a mere 15 minutes before the guests were due to arrive, odds were being taken by some sub continent bookies as to whether anyone would turn up at all. The organisers’ ashen faces brightened at 18h00 as the turnstiles started to click, and by 19h00 the festivities began, with a solid turnout of over 135 guests, testament to the pioneering spirit of the Lowveld folk. And their fortitude was rewarded with a parts display, technical information, one on one involvement with the manufacturers and representatives of top class brands, networking with their Lowveld colleagues, prizes galore and the opportunity for one lucky guest to be part of the Forza Racing Ferrari Track Experience on 19th November (see following story).

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Before.......

The Indhlovu Hall at the Ingwenyama Conference & Sport Resort leaked like a sieve during the downpour. M.C. Stander, Food & Beverage Manager at the Resort, said that it was the first time in his four years at the resort that he had seen the hall leak, and he described the deluge as “the mother of all storms”

At 17h30, the stands were ready, with nowhere to go. The Partinform personnel were at their posts, but with only one straggler to talk to.

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After....... At 19h00 a relieved Alex Christodoulou of Axis Event Management and Master of Ceremonies Duane Rockwell could get the show on the road. Duane had driven up from Johannesburg, haven given himself ample time to arrive by 17h00, but only arrived at 18h00, because of “the biggest rainstorm I’ve ever driven through, and a most frightening experience”. Duane said that he was amazed at the turnout, as if no one had turned up, he would not have been surprised.

Colin Murphy, Chairman of Partinform, welcomed the intrepid guests, and gave them an update on the current trends in the automotive aftermarket. He emphasised the need for the industry to support the motorists who were keeping their cars longer, and to assist them in keeping their vehicles in tip top competition, by the provision of quality branded parts, and after sales service. He also warned of the dangers inherent in the imminent Consumer Protection Bill, as everyone involved in the supply chain would be jointly and severally liable for inferior product and consequential damage. Three of the guests who m ade it to the were Rusty show and Marlene B ourne of Ru Bourne Mid sty as, Cape Tow n, and Mar Bourne of Low ise veld Garage Equipment. Bournes have The recently mov ed to White Riv and the inten er sity of the st orm had even prised Rusty, surnot unused to the Cape Storms. Desp of ite having seen their newly la garden wash id ed away by a one metre wall of wat high er a few m in utes before, Bournes show the ed their spir it by shruggin off and arrivi g it ng at the show as if nothing happened. had

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An ecstatic Riaan Vosges of Horst Auto Workshop discovers that he is the winner of the Forza Racing Ferrari Experience. Riaan took part in the Partinform Quiz after been drawn out of the hat. He told ABR that he expected a “broekskeur moeilik” question, but could easily answer in the affirmative as to whether Luk was a major supplier of clutches to the South African automotive manufacturers.

Part of the Mpumalanga Manne that braved the elements to get to Partinform December

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Insights

A Helping Hand 2009 was a tough year for the automotive industry. Who would have thought at the Capricorn Society’s annual bash events in Durban and Gauteng during November 2008 what was awaiting us? Upon reflection, the members of Capricorn had very little to worry about, because the Society was proactive and prescient from day one, and proved that it was a partner that offered realistic assessments and genuine benefits, and the Capricorn ship and those who sailed on her navigated the storm with relative ease, albeit with the sails trimmed to take into account the circumstances.

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BR has observed from both a distance and close-up how professionally and business like Capricorn Society, and its members and suppliers, have confronted the issues, and this behaviour has set them apart from the rest. To appreciate the authenticity of these words, one just needs to peruse the back copies of ABR from February 2009 to November 2009, and to reread the series of articles under the banner of “Capricorn Insights”: February 2009: Capricorn Society signalled its intention to tighten up its criteria for membership, a move welcomed by the South African founder members. March 2009: In reaction to the global financial crisis, Trent Barlett, CEO of Capricorn Society, sent out an open letter to its suppliers committing to prompt payment of its accounts and the guarantee of no bad debt, proving that Capricorn was “an organisation that you can trust and rely upon”. April 2009: Capricorn Society staff were a prominent feature at the Autodata stand at Automechanika South Africa in March 2009, to ensure that all members who visited the stand were aware of the benefit of free technical vehicle data to Capricorn members. May 2009: The first MIWA/RMI “Mystery Shopper Programme” winner, Bruno Burri of Swedo Tech Services, attributes his membership of Capricorn Society as a key factor in his success.

June 2009: Rob Mildenhall, Capricorn’s South African Business Development Manager, explained the rationale behind Capricorn’s emphasis on debt collection, prompt supplier payment, and integrity when doing business. July 2009: Pieter Haak, General Manager After Sales, Barloworld Motor Retail South Africa, explained to ABR about the philosophy of “Fewer, Bigger, Better” and how Capricorn Society fitted the Barloworld values, and how happy Barloworld was to be a Capricorn supplier.

August 2009: The parade of happy suppliers continued, with Louis Nel, Franchise Parts Manager, McCarthy Motors, expounding the virtues of Capricorn Society, and how its service offerings fitted Mercedes-Benz DNI (Distribution National Inventory) system like a glove. September 2009: ABR devoted an article to the International Day of Cooperatives, a day set aside by the United Nations to honour and recognise the effective role that cooperatives play in global business and development October 2009: ABR interviewed four loyal Capricorn members to confirm that the procedures put into place by the Society to protect and enhance its values, had the full support of the members. November 2009: An interview with Malcolm Perrie and Chris Hillier of Federal-Mogul Aftermarket put the cherry on the cake, through the affirmation that Capricorn Society is an effective marketing and sales tool in the automotive aftermarket supply and service chain, with particular reference to the Capricorn Preferred Supplier Loyalty Programme. A litany of praise indeed, and ABR spoke to Rob Mildenhall about this huge vote of confidence from suppliers and members alike. Rob said that “Capricorn is a pragmatic organisation that is not scared to take tough decisions for the good of the whole. An example of this is our decision to postpone our year end function to early in 2010, as we realise that 2009 has been a tough year, and this has put pressure on our suppliers and partners. With this approach, we have been an invaluable catalyst in the automotive aftermarket. Our guarantee of payment, and the reduced exposure to debt for the suppliers, has encouraged and grown business in the industry, even in these depressed times. Our loyal members believe in the cooperative concept and continue to build our cooperatively minded company. They are the heart of the company, and 2010 will see further growth, as all our combined hard work bears fruit, and we look forward to expansion in the next year.”

To join Capricorn Society Limited call Rob Mildenhall on 083 654 2094 or e-mail him at [email protected] or visit their website on www.capricorn.com.au 80

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

Launch’s Silver Bullet Launch Technologies SA (Pty) Ltd has only been operational in South Africa since 2000, but in this short space of time Launch has established itself as a major supplier of automotive aftermarket service equipment to the automotive and allied industries in Southern Africa. One of the major reasons for this success is that the quality range of Launch equipment and products are fully backed up and serviced by inhouse after sales service teams. Thus it comes as no surprise to learn that of the workshops in South Africa using Launch equipment, that 70% of their requirements are met by Launch Technologies.

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ll good and well, and very necessary. But Launch’s silver bullet is its X-431 Super Scanner. The origins of the X-431 began in 1994, when Launch Tech Co. in China developed its first generation scanner named the LE100. Over the years Launch improved on this scanner significantly, and in 1998 they developed the fourth generation of the 431ME and the enhanced 431ME 1 model. Development continued apace, and in 2004 the X-431 was ranked among the top 20 service tools of the year, and in September 2004 it was rated number one in the kfz-Meister Service appraisal. International acceptance continued with the granting of certification by California’s BAR association in 2005, and the rating of Top Product of the Year 2005 in February 2006 by the UK’s Professional Motor Mechanic Magazine. Further awards have followed, and the X-431 has become the trailblazer of Launch product, with worldwide use in over 80 000 workshops. Its open platform diagnosis represents the latest technology and the future of vehicle diagnosis. Just read what Launch claims in the product brochure:

• The most powerful diagnostic scan tool in the world that covers more vehicle makes and a wider range of systems than any other, including all major North American, European and Asian models • Wide language choices, from English to Chinese • Upgrades via www.x431.com up to 400 times every year • Reliable hardware, proven platform, software and technology • Display data stream in waveform • Equipped with international standard ports for the connection with all vehicles • Provision of a whole list of distinctive functions, including handwriting input, P.D.A. facility and a calculator amongst other features • Offering 32-bit access due to the advanced hardware 82

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Howard Keeg follows the action

What they were all waiting for!

… and the reason why we get so many speeding tickets Eight Partinforms under the belt, ten ABR’s read and entry forms completed, and ten months of waiting was over. D Day had eventually arrived. On a cool cloudy day, with rain threatening but thankfully holding off enough to allow for a Forza Racing Track Experience, the twelve lucky winners gathered on Thursday 19th November at Zwartkops Race Track to partake in an experience of a lifetime. For those who did not make it for 2009,the Partinform roadshow shall be on the road again in 2010 and twelve more racing experiences will be up for grabs once more – details to follow in the February 2010 issue of ABR.

Malcolm Perrie, Chairman of AAMA, welcomed the guests and explained the rationale behind the establishment of AAMA, and the important role that the Partinform shows play in getting the message of quality branded product across to the trade

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e last vered at th It was discot Riaan Vosges of a minute th Workshop did not Horst Auto ing licence, which v have a dri him from particidisqualified the full schedule. pating in s made up for it iser The organ iaan two hot laps R g in iv g y ps. b d Zwartko n u ro a December

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Diesel-Electric

Convention

Robert Bosch announce new Workshop Franchise for South Africa The Diesel-Electric Convention 2009, held on Friday 20th November 2009 at Maropeng in the Cradle of Humankind, came electrifying alive just before afternoon tea, when Ewald Faulstich, Director Automotive Aftermarket Division at Robert Bosch (Pty) Ltd, made the announcement that Robert Bosch was soon to launch a new workshop concept, AutoCrew, into South Africa, and by so doing, following the lead of their parent company in Germany.

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or anyone who has been following the global trends in the automotive aftermarket, and reading between the lines from previous presentations from Ewald Faulstich and other commentators in the industry, this announcement comes as no surprise. In actual fact, this has been a long time coming, considering that the “Bosch Dienst” workshop concept was launched in Germany in 1921, and later expanded globally, and by the time the first Bosch Service opened in South Africa in 1937, the need for professional workshop support for the growing vehicle car parc was moving from a good idea to an absolute imperative. Robert Bosch was simply ahead of its time and with today’s technologically complex and advanced vehicles, the need for more professionally run and well supported workshops is simply not being met in South Africa. Based on this fact, and the realisation that a vacuum was being created which will eventually be filled by someone else with an eagle eye and deep pockets, the rationale behind the move makes perfect sense. Many entities have made the attempt the past few years, with limited success, but as Ewald Faulstich put it, “someone will eventually find the right formula and hit the jackpot”. The Diesel-Electric organisation saw the trend over five years ago, and made the first move with the introduction of the e-CAR workshop concept in this country in 2004, which is today the fastest growing workshop network in South Africa, and now boasts 60 members. However, Robert Bosch apparently feels that the vacuum remains unfilled, and they evidently want to head off potential interlopers at the pass, or at least create barriers to entry which will discourage any aspiring newcomers. And the figures that Ewald gave at the convention made for a compelling case. 80% of workshops in Europe are IAM Franchised, whereas this figure is roughly 20% in South Africa. To put it into perspective, four out of five workshops in South Africa are independently run, and whilst they may offer a high level of personalised service, they will soon fall behind the technological curve, and will need to join a bigger organisation to remain relevant. This is the pond in which the Bosch Service, the e-CAR, the AutoCrew, and other national franchises are going to cast their nets.

We Keep Vehicles Moving The keynote address at the Diesel-Electric Convention 2009 was presented by Gürcan Karakaş, Senior Vice President, Automotive Aftermarket, Sales Independent Aftermarket, Robert Bosch GmbH, who emphasised that from day one the Robert Bosch Group was built on research and development, and that its

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globalisation was built on the genetic code of Bosch. Today, 74% of Bosch sales revenues come from outside Germany, which is not a recent trend, as even before WW1 80% came from outside Germany. Gürcan Karakaş’ presentation was on “The Independent Aftermarket in Challenging Times”, and his prognosis was that the battle for profit in the aftermarket is today focused on the second tier of the trade, i.e. independent and franchised workshops; national workshop chains; DIY/petrol stations; OES owned workshop franchises; and IAM workshops owned by OEMs. The emphasis is on more professional management, international workshop concepts, adaptation to legislation, and the making use of intermediaries. In the mature markets, the trend is for more and more workshop generalists, whilst on the distribution side the move has been to concentration and rationalisation. South Africa needs to recognise these trends, and to identify the business opportunities and threats therein. He concluded with the following key messages to the delegates: • • • • • •

Long term aftermarket growth potential exists but competition will increase Positive and negative industry trends require different strategic solutions Meeting workshop needs and binding workshops is key to success Parts & Bytes strategy is a key pre-requisite for continued success Together with its partners Bosch AA will increase market share Continuous market changes require organisational adjustments both at Bosch and its partners

Ewald Faulstich echoed these sentiments, and warned the delegates not to underestimate the battlefield, and to this end Bosch was to focus on four concepts/strategies: Parts, Diagnostic, Workshop, and Communication. He said that the “middle age car parc” was where the battle would be most intense, and that the key to acquiring a large part of this business was to enlarge the circle and to build walls around the circle. Central to this theme was the incremental expansion of workshop franchises, through additional e-CAR, AutoCrew, Bosch Diesel and Bosch Car Service outlets. Enhancing this would be an emphasis on supply chain management, and creating an image of “Best in Class” brand performance and brand value. As both Ewald and Gürcan said, “If we do not shape the market, the market will shape us”. With this philosophy, we can be assured that Bosch does indeed intend to keep vehicles moving! December

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Diesel-Electric

Convention Wolfgang von Ey (Snr) from Vaal/OFS was presented with a Most Valued Diesel Electric Business Partner “Life Time” Award after 25 years service, and he regaled the delegates with a history of the organisation

The two key presenters at the Diesel-Electric Convention were Ewald Faulstich Director Automotive Aftermarket Division at Robert Bosch (Pty) Ltd, and Gürcan Karakaş, Senior Vice President, Automotive Aftermarket, Sales Independent Aftermarket, Robert Bosch GmbH

The convention allowed for some intense networking

The coveted Diesel Electric of the Year trophies went to Welkom (Category B) and Rustenburg (Category A).

Lilian Hansen was the sole female presenter, who enlightened the delegates on the initiatives around brand management, advertising, sales promotions and e-commerce. Lilian managed to let her hair down at the Gala Dinner.

After the convention ABR managed to collar the male side of the technical presentation team, who played a crucial role in updating the delegates on the Bosch Business Concepts and Strategies, and the detail therein. The convention was held at Maropeng, in the heart of the cradle of humankind. An appropriate venue, as the theme centred on the concept of “Adapt or Die”

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Industry

Update

The end of an era It all started in 1974 with the introduction of the Golf 1 in Europe. And it ends in the first quarter of 2010, when the last Citi Golf leaves a VW showroom. 36 years of an icon that even the most optimistic of planners could not have foreseen.

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olf 1 became an immediate success when it was launched in South Africa in 1978, four years after it was launched in Germany, as it was the small car successor to the even more iconic Beetle. But it was the impending launch of the Golf 2 in 1984 that gave VWSA a headache, as it was about to lose a popular entry level vehicle. Thus was born the Citi Golf, after an initial look at an “Econo Golf ”, and a young, vibrant team from VW’s advertising agency, which included fashion designer, Jenni Button; copywriter, John Cooke; art directors, Brian Plimsoll and Mel Miller; illustrator, “Zippie” Zimmet, took this vehicle to unimaginable heights. Ironically, it was Brian Plimsoll who came up with the “freedom of the Citi” slogan, and 25 years later, the freedom will no longer be, as announced by David Powels, Managing Director of VWSA, at a media conference in Midrand on 2nd November 2009. In reality, the Citi’s freedom will roll on, because VWSA built 517 384 units of the A1 derivative from May 1978 to August 2009, and as Powels promised at the conference, VW will “continue to service and support the Citi Golf as long as it takes”. The goodbye will be long and extended, as VW has built up stock of the Citi Golf, and is being coy about the Citi’s successor, which will only be revealed in the first quarter of next year. Volkswagen of South Africa is paying homage to the original Golf 1, with the introduction of a final limited edition Citi, aptly branded, Citi Mk1. Only 1000 of these collectors’ cars will find their way into the hands of motoring enthusiasts in South Africa and around the world. Two of the last produced Citi Mk1 units will join other Volkswagen Classic cars that are on permanent display at the Autostadt, the Volkswagen Group Museum and Brand Expo in Wolfsburg, Germany and at the Volkswagen AutoPavillion Brand heritage centre in Uitenhage. In addition, during November 2009 VW embarked on a goodbye tour around the country, and also

Three proud godfathers of the Citi Golf, at the announcement of the Citi Golf ’s demise on 2nd November 2009. l to r, Mike Glendinning, Director, Sales & Marketing Director; David Powels, Managing Director; Bill Stephens, Division Head, Communications. auctioned unit number 003 and the last Citi produced to be available to the public, the proceeds going to a community-based organisation, Ubuntu Education Fund in Port Elizabeth.

Interesting facts about Citi •

Over 120 employees currently working at VWSA production plants in Uitenhage have only worked on the A1 line (Golf 1 and Citi) production. Collectively, they have 2700 years of experience on the Citi.

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In 1984, only 300 Citi Golf units were sold per month. 25 years later, over 1600 units are sold in a single month.

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In 2006, an average of 130 units were produced per day and 28 550 units were sold.

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In 1984, the retail price of the Citi Golf started at R 7 630 and in 2009 the retail price starts at R84 700.

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Citi has outlasted five generations of the Golf range.

The last MK1 Golf comes off the production line in Uitenhage on 21 August 2009

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Vehicle

Evaluation

The Z Car by Howard Keeg

For one week, courtesy of Nissan South Africa, I was Zorro, the caped crusader, patrolling the streets of Gauteng in the classic Nissan 370Z Coupe, the ultimate Z car. A 7 speed automatic, with a naturally aspirated fuel injected 3,7 litre V6 engine, pushing out 248kW @ 7000 rpm, and 366Nm @ 5200 rpm, and acceleration of 0 to 100kph in roughly 5,5 seconds, and a claimed 0 to 200 kph in 20,8 seconds, this car is a meneer.

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t may not be the fastest sports car on the block, nor does it have the bells and whistles that some of the over the top fire belching bling vehicles have, but this is a true blue sports car, with a nod to the heritage of this genre. And at R516 200, it is affordable and perfect for my age group. Actually, it is perfect for any age group, but from my perspective it is the car for me if I was so inclined. It has all the power that one needs, its dynamic weight balance gives a feeling as if it runs on rails, and it has phenomenal braking, thanks to 19” wheels and 14” front brake discs with four piston callipers. It is a thoroughly modern sports car, but remembers its 240Z roots from 1970, and a full redesign of the 2003 350Z. I did not have the opportunity to really test this baby, which requires some illegal driving, but for the week that I had it, I managed to do 750 km on one tank in mostly city and freeway driving, with an estimated 9,7l/km. I did not nurse the car, so this is very acceptable fuel consumption. What I really liked was the long paddles if one moved to manual mode, which was not really necessary as the automatic box is great, and the whole console moving with the steering wheel on adjustment, thus always giving full view of the dials. One quibble, and that is the road noise, but I did notice that the tyres on my test car were scuffed, which could have contributed – those motoring journalists, tut, tut. And finally, this car does some amazing things for my masculinity. With my normal sedan, no one seems to notice me, but with the 370Z, I was being escorted into parking bays, and the opposite sex did not seem to mind that I am hirsutely challenged. On second thoughts, I am so inclined. December

2009

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This is a true Z car. Wherever you look, you see a Z.

January

The laws of attraction With the Z car.

Without the Z ca r.

2010

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Industry

Update

Passing theBaton ABR ONE ON ONE WITH Warren Espinoza Q: The phrase “commitment to stakeholders” is a much bandied about term. What does this represent to you? A: This is a broad question, but we take all our stakeholders seriously. Shareholders, customers, franchisees, suppliers, staff, the community in which we operate, they are all uppermost in our minds. From the broader automotive aftermarket angle, of which your magazine is particularly interested, we are acutely aware of the responsibility we bear towards our suppliers in ensuring improved market penetration, and the need to be the standard bearer for quality product. Over achieving the expectation of our customer base is paramount to growing their loyalty and support hence our mantra of “Delivering the Promise”. Naturally, we also take the responsibility of protecting our employees’ jobs extremely seriously, and we will move heaven and earth to sustain this position. I would also like to add that our commitment to social projects is important to Midas. We are deeply committed to assisting underprivileged communities and deserving cases, and are already assisting three schools and various hospices. There are financial constraints, of course, so in addition to our company funding, we raise money for these projects, and we proactively disburse these funds as efficiently as possible, with the aim of inculcating a self sufficiency ethos amongst the recipients. I recently attended a prize giving at the Madibatlou Middle School in Olifantsfontein and it was gratifying to see that our efforts are bearing fruit. We also intend being more active in environmental projects in future, and all I can say at this stage is watch this space. Q: What are the big issues that are currently exercising your minds? A: Quality and cost issues are always in the debate, but the bigger issue at the moment is the impending Consumer Protection Act. This is going to have a material impact on the market. The exact ramifications of the CPA are as yet not clear, however, we understand that we will have to restructure our agreements with our suppliers and franchisees to take this impact into account. We think that overall the CPA will be good for the industry. Midas of course will comply with the CPA, as it will favour those who deal in quality. It is a new factor that will affect business, to an extent still to be assessed.

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Q: And challenges for the future? A: Pricing is a challenge, and the pressure on margins will increase. The market is going to get more competitive, which is good news for the consumer. Service, like quality a few years ago, is becoming a given, and expectations continue to increase. Supply chain efficiency will become a challenge, and the ability to feed an increasingly insatiable market demand for a wider and wider range of vehicle models whilst retaining acceptable working capital levels will definitely be a challenge. Outlets carry less stock and expect multiple deliveries a day. The challenge is to meet this requirement whilst managing the increased cost that is associated with a higher service offering. Q: What will the market look like in five years time? A: The market will be more competitive, but paradoxically it will be less cluttered. The current recession is already taking casualties, but the outlets that survive will be leaner and meaner, with the trend moving even stronger to quality and service. Thus there will be a strong bias towards franchised outlets as the consumer turns to brands that can be trusted. Brand loyalty will strengthen amongst consumers, and they will be looking for good deals on KVI’s (Known Value Items). The consumer will be more educated and demanding, with the CPA accelerating this trend. However, Midas is well positioned and confident that it will meet the market needs over the medium term. Q: Do you intend the steer the Midas ship for the next 12 years, like your predecessor? A: When I was studying to be an Accountant I never even dreamt I was going to end up in the automotive industry. I thought that I was going to end up in some form of banking, as I did have a stint at Lloyds in London. I really enjoy the industry and more importantly the people I work with every day. I love the people, and the culture of a strong team working together is great. This philosophy stands us in good stead, and I really appreciate the support that I get from this team, which is a solid combination of experience and youth. I look forward to the future with relish.

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Industry

Update

In the November issue of ABR, we covered the 2009 Midas Napa Convention, held at Emperors Palace, Gauteng on 23/24 October 2009. The event ended off emotionally with the “passing of the baton” from Gordon Odgers, CEO, to Warren Espinoza, COO, in respect of the day to day responsibilities of the Midas Group. ABR waited for the hubbub to die down before interviewing both gentlemen, with the view to finding out whether it was business as usual at South Africa’s largest automotive aftermarket organisation, and what was the anticipated effect of the acquisition of 56% of Midas by Imperial Holdings.

ABR ONE ON ONE WITH GORDON ODGERS Q: Corporate Governance has become the big buzzword recently. From your perspective, what are the differences from 12 years ago and today? A: Twelve years ago we were a listed company, with our major shareholders being Dorbyl and the McCarthy Group. I remember spending my life doing reports on corporate governance matters. Most of these reports had no positive impact on the business, but the best practice characteristics around corporate governance were very useful, particularly the audit committee, the regular board meetings, the internal audits and the trading updates. When we delisted we retained the best practice features, whilst throwing out the chaff. This allowed us to focus on trading issues, and to spend executive and management time on improving our competitiveness and growing market share. We also achieved huge cost savings by not sweating the small stuff. With the Imperial deal, we remain unlisted but are now a subsidiary of Imperial Holdings. This will bring some additional corporate activity, but not to the extent of a listing. The additional corporate requirements burden does not constitute a big deal, as these past few years we have not only kept in place the best practice aspects we brought forward from the Dorbyl days, but actually improved on them. Q: The emphasis on trading issues is obviously dear to your heart. Has this environment changed in the past 12 years? A: Legislation has started to impact the trading environment. The NCA (National Credit Agreements Act) had an effect on the industry, and the CPA (Consumer Protection Bill) will have a profound impact on the industry. Not necessarily a bad thing, and in many ways a very positive effect should come through in the long term, after the short term disruptions. I think this is playing a role in the move from independent stores and workshops to franchise operations. There is also a lot more emphasis on logistics and supply chain management, and the elimination of inefficiencies in these areas. The market has also been clearly delineated between premium priced branded product and the more value orientated house brands. This market differentiation is not being driven by us, but by the consumers, who want the choice between A and B. We find that as a vehicle gets older, the motorist is more inclined to purchase the B product. There is even a C segment for the really old cars, but Midas does not participate in this segment December

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of the market, as there is no space for dubious quality, and the CPA will have a very big impact on those who dabble in white box product. I believe that this will accelerate the consolidation that is currently taking place, What I do find concerning is the recent trend of OES/P&A operations crossing over into the independent aftermarket, who are using the benefit of low OEM pricing to penetrate the market, to my mind unfairly. Q: From a personal point of view, what are the big issues confronting Midas at the moment? A: My total focus at the moment is the bedding down of the acquisition by Imperial Holdings, who have taken a majority stake in Midas. By the time your magazine hits your readers’ desks, the transaction should be in the final throes of execution. I am very excited about this deal, as this transaction should unlock certain shareholder issues, and substantially improve the financial situation of Midas, and providing intra-Imperial opportunities. What Midas likes particularly about this deal is that Imperial has adopted a non-interference approach, and very importantly, they have respect for Midas management who will continue to run the business, and have respect for the Midas business model. Another big issue is the strong Rand. This is putting pressure on the automotive aftermarket, and we are seeing that whilst we are growing in terms of units, this is not reflected in the financial statements. This is also having a detrimental effect on the local manufacturers, with a cost base in Rands, and the pressure to grow earnings. Q: What do you see as your role in the future? A: I will be CEO of Midas until the end of 2011, with total responsibility for the Midas Group and reporting to the Board. After that, I will stay on in a non-executive role. But that is still two years away, thus I cannot dwell too long on this, as in the interim I will have my hands full in satisfying the shareholders, the customers, the franchisees, the suppliers, our employees, who all have a stake in the future success of Midas. This is more than enough to exercise my mind, but I love the challenge, as operational issues are what it is all about and the front line is where you will find me.

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LIFE

GOES

ON

Restoring the Status Quo In May 2009, in the heart of the darkness, ABR decided to introduce its Life Goes On series. This was in response to the general negativity and pessimism that was seeping into the very fabric of the automotive industry. The problem that ABR had picked up was that this negativity was no by Austin Gamble longer a superficial fear of the unknown, but rather that it had penetrated the psyche of practically everyone, from the chief executive through to the tea lady. Life Goes On was a psychological call to arms, and ABR roped in Austin Gamble to weave his words of magic. Serendepitiously, Austin was assisted in his endeavours by two optimistic presentations from General Motors and Ford in the same month, and this served as the base for a series of increasingly upbeat articles. Now, six months later, whilst we have not gone full circle, we’ve taken the first careful steps to recovery, and Austin can toast some of the “green shoots”. We’ve also asked Richard Macaskill to look at this issue from an economic perspective, as outlined by Cees Bruggermans in a recent address to the industry.

Steven Koch

G

Hal Feder

M is clawing its way back from the brink, and this was outlined by Nick Reilly, International Operations President and GM Vice President, during his lightning visit to SA in mid September. Nick pointed out that GM is number one in China, the world’s biggest market, and is aggressively pushing ahead with its alternative fuel vehicle programme. GM has also not cut back on its R&D programme, which consumes US$7,5 billion per annum, with the only difference that it is now getting more bang for this particular buck. Reilly assured us that GM will be ready for the global upswing, and at the same conference Steven Koch, then retiring GM President of African Operations & GMSA Managing Director, confirmed that GM is in South Africa for the long haul. He said that GM’s regional strategy was to be “a coalition of one”, and that come what may, “we’ll be the last OEM standing”. Brave words, but said with conviction. This is what is required for the industry, some backbone. A delightful little soufflé of optimism, but the cherry on the cake came during Ford South Africa’s media breakfast on the 3rd November, when Hal Feder announced Ford’s global third quarter results. Hal commemorated the occasion by wearing a green tie, to celebrate the swing from red figures to green figures; green shoots indeed. Ford celebrated a pre-tax profit of US$1,1 billion, and the really good news is that this profit came from all the regions. North America was particularly gratifying, with a US$357 million operating profit. This all translates into improved cash flow and a pervading sense of optimism that Alan Mulally’s “Turbo Machine’ is getting better, and moving forward. The only dark spot was the Volvo results, but even these are getting better. Ford may be talking to interested parties, but

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Nick Reilly

Jean Francois Bacos

maybe they should imitate GM, who on second thoughts have decided to hold onto Opel. This Swedish marque has such a good heritage, that it may be better for Ford, to paraphrase Volvo’s singing Scandinavian cousins, to revaluate and to “take another chance on Volvo”. As long as it’s not their Waterloo, but let’s not get into that pernicious pessimistic mode. On Friday, 6th November, it was Peugeot South Africa’s turn to show confidence in the future. Displaying their range of commercial vehicles to their media, and predicting better things to come, it was good to hear MD Jean Francois Bacos say that Peugeot saw South Africa as a growing market, and that apart from South Africa being a good testing ground from a development point of view, it was the niche markets that provided opportunities for Peugeot in their commercial vehicle endeavours. At about the same time as the Peugeot presentation, Chrysler Group LLC, parent company to Chrysler South Africa (Pty) Ltd, importers of Chrysler, Jeep and Dodge vehicles as well as MOPAR parts and accessories, held a comprehensive press conference at their Auburn Hills headquarters in Michigan. The Group divulged an unprecedented detailed future five-year plan including both business and product aspects going forward to 2014. The good news for South Africa is that changes are not anticipated in the current Chrysler, Jeep and Dodge brand offerings, with the promise of a range expansion. Chrysler’s local dealer network has expanded over the last three years adding some seven new sales outlets to reach a total of 35. This represents a clear commitment by the dealer body to build and fund ongoing Chrysler Group expansion in the local market. Life does indeed go on. December

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LIFE

GOES

ON

A New Sunrise In the October issue you were left with a slight teaser in one of ABR ‘s Buzz items – a brief article titled Down, But Not Out was concluded with the phrase “Life Goes On.” Down, but not out explored a topic worthy of much more space than it received, that of the economic recession – or, more accurately, the economic recovery. That’s right, Cees Bruggermans, chief by Richard Macaskill economist of First National Bank, spoke not about how bad things are, or even about how bad they have been, but rather about what the path to economic recovery is going to be like for South Africa. This fact makes it a very apt topic for this month’s Life Goes On column because life does indeed go on, and whether it is rainy or sunny outside, whether we are in an economic downswing or upswing, bad time or good, we all need to keep moving forward in spite of it. “I have titled my presentation Catching the next wave,” commenced Bruggermans, starting on a positive note immediately. One thing Bruggermans made clear is that before we can see where we are going, we must first see where we have come from, and to do that we need to understand why we had an economic crisis in the first place. “It was the failure of the collective imagination of some very bright people,” he joked. He further emphasised two major mistakes that people tend to make, one of which is that people sometimes think it is hard to break a system when it is in fact very easy, and the other is that sometimes people think it is very easy to break a system when it is actually very difficult. The latter is the important one, as this is the mistake people made in forming their attitudes regarding the economic recession. “It is actually very difficult to destroy the international financial system,” stated Bruggermans. As discussed last month, people will always come up with new ways of making money, but these will be the first to fall away during times of recession. “The stress-tested, residual innovations from the past thousand years are what we are left with,” noted Bruggermans. The sub-prime lending crisis was one of the newer methods of making money, and this is why it fell away so dramatically. It is important to note that this was not in fact the cause of the recession though. The world was already heading into a recession when this happened. The economy is a cyclical thing and, as such, there will always be upswings and downswings; it is the natural economic cycle of the world. Pre-Lehman, as it was referred to on the day, the economy was already weakening. Oil had hit almost $150/bbl, and this took approximately $2 trillion out of the

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collapse, worse in many places, like Germany, which experienced a 25% industry collapse due to the fact that they are so highly specialised, and as Bruggermans put it, “The greatest recession in 80 years was borne.” We all know what happened during the recession, and it is probably not something worth musing upon. While it is vital that we learn from the hard times, it is not vital that we linger on them. What is important though, is how we drag ourselves from the situation in which we currently are.

world’s income. The sub-prime lending crisis was, however, a major contributing factor to the recession and the sheer depths the economy was plunged into. What people did, was panic, and as Bruggermans joked, “When we panic, we do it in style.” This panic led to a debt spiral, which caused loss of trust and in turn loss of stability, loss of solvability and ultimately the loss of credit flows. Bruggermans said that according to estimates, wealth loss during the recession was somewhere in the region of $3 – 4 trillion worldwide. This refers to paper, or financial losses, and while the panic may have been a human phenomenon, Bruggermans commented that “the damage was very real.” 30% seemed to be the magic number during the recession – this was approximately how much production was cut across the board, and this meant that people became very defensive in the way they handled their cash flow. There was almost immediately a 16% industry December

“What it really took was someone with power,” noted Bruggermans, “to say that this will not stand.” This person was Ben Bernanke, chairman of the Federal Reserve Bank. “I was not going to be the Federal Reserve Chairman who presided over the second Great Depression,” Bernanke said. And with that statement, the road to recovery had been embarked upon. Bernanke had the power to make a difference, and that is exactly what he did. He started by guaranteeing the banks in order to restore trust, after which arranged takeovers were put in place to restore solvability. New capital was injected to improve solvability and interest rates were collapsed to kick start credit flows once again. And that is exactly where we stand today. It is important to remember that the recovery is not a V-shaped curve though. There is no sharp kick after which everything is great again; instead it is Ushaped, it is a gradual transition, a slow transition, but a transition to the positive nonetheless. We are not out of the woods by any means, but it seems that at last, we have found the map that will eventually lead us out, and back into the sunshine.

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Market

Research

Quality, Service, Satisfaction – the Manufacturers Respond

The Mercedes-Benz E Class had a phenomenally low 33 problems per 100 vehicles in the first few months of ownership by obviously ecstatic customers, as indicated by the Synovate Quality Awards.

Two important market research survey results were announced early in November 2009, with both surveys indicating that companies are beginning to respond to the needs of their customers. From an automotive perspective, the results indicated a good match, with one notable exception.

Q

uality, service, satisfaction, and other relevant criteria go hand in hand, and this has been validated time and time again by market research and the various awards that are dished out to acknowledge this are gratefully accepted by those companies that strive to meet and even exceed expectations. The predicament for these companies is that each time a company ups its game, the expectations go higher and higher, with the cycle becoming both virtuous and vicious. Virtuous in that standards continue to improve, which is good for the overall health and sustainability of the company; and vicious in that it is a cycle that never ends, and a treadmill that just gets faster and faster, with no letup. Such is the customer service conundrum. There is no room to hide, because customer C.A.R.E. means exactly that, Customers Are Really Everything. To the awards. First to the plate was Ask Afrika on 3rd November at the Venue, Melrose Arch, with the Orange Index 2009 awards. The Orange Index rates service excellence across brands and industries, which is instructive in itself and a candidate for a full blown article all by itself. ABR was particularly interested in the automotive category results, with Audi taking first spot, followed by Toyota, Mercedes-Benz, BMW, Mini, Nissan and Volkswagen. Some glaring exceptions (which ABR shall investigate further), but on the whole the usual suspects are there, but Audi does surprise because at the Synovate Quality Awards on 9th November down the road at the Campus, Bryanston, Audi was practically a no show, with only the Audi A4 getting 3rd spot in the medium passenger vehicle segment, and the other models performing quite badly. It is accepted that Ask Afrika is all about service excellence whilst the Synovate survey is all about quality, but as per past experience, the two should correlate. As previously mentioned, ABR shall dig a little further into this with future articles.

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Looking at the Synovate results, it is clear that automotive companies have responded magnificently to their customers in terms of quality. In 2001, the average number of problems per new car was 182 per hundred vehicles (1,82 problems per vehicle). In the 2009 survey, this has dropped to 93 per 100, less than one problem per vehicle! And the majority of those problems are squeaks and rattles, electrical hitches, brakes and handbrakes. Hardly a serious mechanical problem in sight. The overall winner was the Mercedes-Benz E class, followed by the Mercedes-Benz C class, then the Mercedes-Benz A Class, which was closely followed by the Mercedes-Benz A class, thus it was no surprise that Mercedes took top spot for the best local plant manufacturing passenger vehicles, and the top spot for best luxury passenger car brand overall. Audi didn’t come close, which brings us back to the correlation question. As a matter of interest, Toyota and BMW took second and third in the local plant category, and Volvo and BMW took second and third in the luxury brand category. When it came to best volume passenger car brand overall, Mazda and Toyota tied for first place, with Peugeot taking third spot, a significant improvement on past performances. The two vehicles that took the two bottom places were the Citi Golf and the Fiat Palio, both whose days on the showroom floor are numbered. This confirms what they told you in business economics; that quality comes from two areas: design and manufacture. These are old designs with tooling about to give up the ghost, so the odds were stacked against them. In the seventies and eighties they would have been vying for top spot, but now time and technology has caught up with them. Old war horses that are now going to pasture, with their heads held high. Go to www.abrbuzz to get the detailed results. December

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Burford

on

Brands

A reliable

CITIzen

by Adrian Burford

Normally this column discusses brands, as in Toyota, Porsche, Alfa, and so on. This time we’re drilling down a bit and featuring Volksie’s Citi, a car which has just been discontinued but certainly qualifies as a brand in its own right.

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grew up in the Citi Golf era. In fact, the Citi debuted in the year (1984) I legally qualified to drive – not that I wanted a front-wheel-drive shopping trolley with bright ‘Mondrean’ colours: I had my eye on a rotary-engined Mazda Capella with a very loud exhaust and the ability to be driven very sideways. But most of my school mates – at least the smart ones with clear-headed parents who had never smelt hot oil while drinking cold beer on the cheap seats at Kyalami – had been given hand-me-down 323s, Corollas, Y-series Datsuns and of course early Golfs. It was ideal student fare: practical and economical, albeit rather dull. Volkswagen’s marketing people saw the opportunity in this and because a bigger and significantly more expensive Mk II Golf was on the way, the stories goes that they hatched a plan to stay in that student/first-time buyer market by relaunching a ‘new’, stripped-out Mk I to be called the Econo Golf. Then the advertising people were brought into the loop and they said: ‘hmmm... kak idea: why not rather make it youthful and funky and paint it in bright primary colours and fit it with white bumpers and white wheels and make it a teeny bit more expensive and call it the CitiGolf? So they did, and no one looked back for a quarter of a century. It was a stroke of genius but even the gurus underestimated its longevity and relevance. The forecast in 1984 was that they would sell about 300 per month and the lifespan would be five years at most. In July this year 1 630 Citis were sold, just a month before the last and 377 484th one came down the line.

There probably aren’t many South African families that haven’t owned a Citi and it has become the de facto entry-level car in this country. Simple, soundly engineered and cheap and easy to maintain and repair, an entire industry has sprung up around it. Being popular with the youth, every second Citi boasts tinted windows, lowered suspension, a rowdy exhaust and a set of mags. Being light means the larger-engined versions are very rapid and there is no shortage of seriously fast ones around. It has also given dozens of drivers an ‘in’ to motorsport. While it remained largely unchanged for much of its life, by the late-1990s Volkswagen South Africa started a programme to address its shortcoming. Ventilation was improved, the dated ergonomics were helped dramatically by the Polo-esque interior and a repositioned gearlever, the old-school front quarterlights (which made the exterior mirrors pretty useless) eventually gave December

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way to one-piece side glass, tail lights grew larger as did the petrol tank, and (from early 2009) you could even have a Citi with an airbag. The brakes, traditionally one of the car’s weakest points, were improved though not by much! There were myriad special edition models, including the Sport (with a 1.8-litre engine) Rhythm, Storm, Blues, Deco, Sonic and even a Bafana Bafana version. The hottest were the CTi (82 kW) and the 90 kW Citi R. And let’s not forget the Shuttle and Chico, hire company fodder and maybe not all that far from the Econo Golf concept... The final 1000 have simply been called the Citi MkI and will sell for R113 500 (a far cry from the R7 630 which the base model cost in 1984) but they will benefit from a quarter-century of development and will be generously-specced and individually numbered. Two of these will join other Volkswagen classics on permanent display at the Autostadt, the Volkswagen Group Museum and Brand Expo in Wolfsburg, Germany and at the Volkswagen AutoPavillion brand heritage centre in Uitenhage. Late in its life the Citi took some flak for being ‘unsafe’. Sure, it was seriously old but it was also fundamentally a sound design and even in the early 1970s Germans were well aware of crumple zones and the like. It also handled in a predictable manner with suspension which isn’t vastly different in concept from some current-generation cars. While it doesn’t make the grade in terms of passive safety and brakes when compared to 21st century offerings, the fact remains that it put hundreds of thousands of South Africans on the road. If ever a car was right for the times, it was the Citi.

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Vehicle

by Howard Keeg

Evaluation

A Capable Commuting Vehicle

In August 2009, Suzuki introduced its fun and funky Alto subcompact vehicle to the media at a launch in Bloemfontein. The initial impressions were good, but I waited until I got the car for a week, before giving it a full evaluation. This duly happened, and I am happy to report that this little car stayed true to its promises during the week that I had it.

T

his truly impressive little car, with a rev counter that goes to 8 000 rpm, but does not allow you to go beyond 6 500 revs, really delivers the goods as an easygoing commuter vehicle. It will not suit a family, nor a rep with a lot of luggage to lug around, but to go from A to B as economically as possible, and with low CO2 emissions, it sure is a winner. I drove 550 km on its small petrol tank, all city driving, and still had a quarter tank left when I reluctantly parted with a vehicle that was growing on me. It was the realisation that with a small sacrifice to the comforts and add-ons that a bigger car offers, one could still get around nippily and easily, and at a significantly reduced fuel bill, that got me thinking that maybe we as a species have gone beyond the pale. I commute 90% of the time all alone, and to drag an extra few hundreds of kilograms, and some superfluous air in the cabin, will one day appear to be totally ludicrous to a more evolved homo sapiens, who will look at the

denizens of planet earth in the early part of the 21st century as a particularly stupid and selfish knuckle dragging species. The future anthropologists/psychologists will also spend a lot of time in analysing and pontificating on the incredibly low levels of self esteem that caused such aberrant behaviour. Many PhD’s will be earned on the back of our Neanderthal type conduct. And we shall deserve the opprobrium. In the midst of a global warming crisis, we have stuck to our profligate ways, and the debate in a few decades time will focus on why we still had our heads in the sand, with our backsides in the leather seats of mobile dinosaurs. It is truly a cerebral paradox, an enigma wrapped in a riddle. When will we reach the tipping point? Next year, or in five years time, or even later? No one knows, but it is clear that we shall not do it alone. It will require some disaster or government legislation to change our Malthusian habits. As a modern day Marie Antionette would be inclined to say, “Let them drive Altos”.

The interim solution to our commuting and environmental crisis is under our noses. Who will take the lead in changing our nasty habits?

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Two

Wheels

The Sting in the Tale Goedkoop is Duurkoop must be one of the most appropriate and accurate axioms ever invented. It is a maxim that is confirmed over and over again, every minute of the day somewhere in this world. This has been going on since time immemorial and yet, as I write this, some idiot (used advisedly) is perpetrating this folly, either at a roadside stall, or an antique shop, or an auction house, or a vegetable counter at Pick ‘n Pay, or a motor spares shop, or a motorcycle dealer, or even through the purchase of a pirate DVD at the robots. The pirate DVD is particularly instructive, because you are running quite a few risks, of buying a dud, or a bad copy, or even been prosecuted for buying counterfeit product. The list is endless.

Stress Free City Driving

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his thought crossed my mind as I listened to a presentation at the Vespa dealership at the Design Quarter in Fourways, Johannesburg. The premise of this presentation was to not just look at upfront costs, but to look at the costs over the life of the product, and the lights kept on going on in my head about my previous skirmishes with customers over this obvious observation. In my past life I used to market and sell clutches to the automotive trade, and it never ceased to amaze me that many otherwise intelligent people were happy to buy and fit a “white box” clutch kit which was doomed to fail prematurely, in anything from one to ten thousand kilometres (it was simply a case of pot luck), rather than procure a premium quality clutch that was designed to last for 150 000 km upwards. The discounts on the white box clutches ranged from 30% to 70%, but even if the discount was 100%, it was still absolute folly, because the labour involved in replacing a clutch was anything from three to four hours, and in certain Italian psychological experiments, up to eight hours! Labour rates are no laughing matter, so any perceived saving at the counter was quickly negated once the cheep, cheep clutch gave up the ghost, unless you could find a fellow idiot (used advisedly) to fit the clutch for free; and let’s not go into the ramifications about the quality of the fitment from such a philanthropic fool! I could go further and fill December

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reams and reams about all the stats revolving around downtime, loss of hair, induced diarrhoea, and general gemoedsbekakking* when a vehicle breaks down between Pofadder and Hotazhel, or on the road running past Diepsloot. This story is about the Italian Wasp, the Vespa, so let’s get to it. When the Italians were chewing over what they were to call the world’s first scooter, they wanted to signify many things – agility, brilliance, familiarity, forthrightness, attractiveness, reliability, spontaneity and a certain amount of natural elegance without any formalism. No, wasp does not do this, but Enrico Piaggio realised that the shape of his first scooter, with a narrow waist and large hindquarters, brought to mind the body of a wasp. “Vespa” means Wasp in Italian, so no other name was considered. A good choice, it turned out, as the modern interpretation of the association with a wasp is that the Vespa scooter has a gentle buzz with a sting in its tail. And for those who go for a cheaper scooter, the sting in the tail comes in the lifetime costs of the scooter, and not the upfront costs. Therein lies my article, which in the spirit of ABR’s Words in Action, does have a sting in the tale. *And for those wondering, gemoedsbekakking is a wonderfully descriptive Afrikaans word for stress. Words in Action!

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Hogg’s

by Gilbert Hogg

Wash

The thought first crossed my mind during the Currie Cup Final between the Bulls and Cheetahs that today when teams are equally matched, rugby games are no longer won by an act of individual brilliance, or a superior fitness regime, or the incisive minds of the coaching staff. Unfortunately, today rugby games are more often won through the pernicious mood or bias of the referee and his assistants, who seem to favour the home team, egged on by fans driven by adrenaline, nationalistic fervour and alcohol, in equal measure.

Wolf Whistle T

his thought went from supposition to affirmation during the Springboks/Leicester game, and the theory was rock solid and more like fact by the time Wayne Barnes blew his wolf whistle after 80 minutes of frustration in Toulouse, an appropriate name for any visiting team to this decidedly one-eyed supporters den. Wolf whistle? I hear you ask. Because these guys are wolves in sheep’s clothing, without any threat of sanction as they decimate the hopes of teams, coaches, and supporters alike. The sheep may represent purity, but I say bah humbug, and bah, bah black sheep. Let’s first take a look at the Bulls Cheetahs fixture at Loftus Versfeld. Good old’ Jonathan Kaplan, he with the natural silver highlight in his hair, got this game seriously wrong. Someone, who I assume is a Cheetahs supporter, sent me an e-mail the other day with a detailed account (and pictures which confirm the accusation conclusively) of all of Kaplan’s errors. Damning indeed, but this e-mail did not even mention the illegal scrumming method of Gurthro Steenkamp, for which he got away scot free for the first half an hour of the game, courtesy of an “experienced” referee and his insomniac linesman. This had a profound influence on the outcome of the game, let alone all the other errors. Put this all together, and there definitely would not have been a celebratory bus ride through Pretoria. Oh no, it would have been the City of Roses which would have displayed the silverware. Next, the grubby city of Leicester played host to a third rate Springbok side (is Earl Rose Pieter de Villiers’s love child?). Once again, Gurthro Steenkamp did his illegal boring in, which Stuart

Wayne “Clown Prince” Barnes

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Stuart DICKinson

Dickinson gratefully picked up. However, Dickinson, who manages to make all other referees look competent, also picked up many other things, which only a drug crazed zombie could fathom, and nine times out of ten, guess what? went in favour of the home team. The result? A mediocre English league side beat a demoralised South African Coloured Invitation XV, who by the time the final whistle blew, were too scared to even pick up the ball from a static ruck, so abysmal was the refereeing. But the piece de resistance was the performance of Wayne Barnes. Apart from only seeing the imperfections of the frustrated fellows in the green and gold, he committed the cardinal sin of allowing a blatant off-side French player to steal the ball from the up and under, which resulted in a try. This was after the Springboks had absorbed the initial onslaught and were leading 13 – 3 and gaining the ascendancy, and must have been gut wrenching for the Boks. Together with his penalties against the Bok scrum whether they were going forward or going back, and every single 50/50 decision going for les bleus, this turned the game completely, and a fired up French team eventually shut out the doomed Springboks, who had been reduced to mere spectators by the whistle of clown prince Barnes. How do we solve this? There has to be a ruthless examination of referees’ errors and bias by an impartial panel, and the appropriate punishment. Suspensions, just like the players have to endure, would rapidly change the behaviour of these home town favourites. What’s good for the goose is good for the wolf in sheep’s clothing!

Quiet, I’m on the phone....

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2009

I got away with it!

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January

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Vehicle

Evaluation

Champ by Howard Keeg

All You See

You’ve got to hand it to the French. They’ve got style, class, and joie d’vivre. And they know it. You would also be a little arrogant if you had the Louvre, the Eiffel Tower and the Château de Versailles. Oh, did I mention champagne and the can-can? Southern Africa’s equivalents respectively are the loos in Diepsloot, the Hillbrow Tower and the Zimbabwe Ruins. Oh yes, and sparkling wine and the toyi-toyi. France also has the Peugeot 308cc, whilst we have the …… ummm.

T

his is what was racing through my mind when I took delivery of the stunning 308cc from Peugeot’s head office in Linbro Park, and my immediate reaction was to lighten the inferiority load by going into convertible mode, despite threatening dark skies. After three hours of blood, sweat and tears, I had the top down (sorry, old joke). No, a mere 20 seconds later, I was on my way, with air streaming aerodynamically past my bald pate, and anxiously on the lookout for an Isadora Duncan wannabe so that I could complete the picture for the close to agog spectators. Someone from above has a sense of humour, because in a matter of minutes the skies opened, and by the time I had found a safe place to park, and the 20 seconds to get the roof back up, I was doing a credible impersonation of a drowned rat. 20 seconds is a short time, but still inadequate when someone is pouring a bucket of water on your head. However, I accept that I was tempting fate, and paid for it. Stupidity may be a more accurate description. After this inauspicious and drenched start, things got much brighter and sunnier, and I had time to appreciate this French beauty in both coupe and open air versions, and savouring freeway, town and rural driving. It is simply sublime, and you soon forget that this rather large car has only a 1600 engine. But not just any petrol engine, a powerful (110kW) yet refined twin-scroll turbocharged 1.6 engine, with technology such as high pressure direct petrol injection, which gives plenty of power and torque plus real fuel efficiency. And with a 60 litre tank, you do not have to visit the petrol station very often, which pleases forecourt phobes like me. This car has all the bells and whistles that you would expect from a R336 000 vehicle. Sounds a lot, but in this time of madness when some small B segment cars are going for R200 000 plus, it’s actually a bargain. We do live in interesting times, and in a better economic environment this car would sell well, because it deserves to. Now how do I solve my problem of car claustrophobia that has befallen me ever since I gave this beauty back? December

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Corporate

Conscience

Putting Something Back Sparepro has been riding the wave of an ageing car parc, and 2009 has been a good year for them. Irrespective of how the year has been, Sparepro has been building up a tradition, in both hard times and good times, of giving something back to the community of South Hills, with many social and charity initiatives put into place by the management and staff of Sparepro. Patrick Latouche, General Manager of Sparepro, says that Sparepro’s philosophy is one of “service”, in all its facets and forms. Thus, on 28th November, 2009, Patrick and his staff were hard at work in inculcating this philosophy and “walking the talk”. A Christmas lunch, with all the trimmings, was served to the elderly folk from the surrounding community at a municipal hall in Moffat View. ABR was there to give a pictorial overview of a blessed event.

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Corporate

Conscience

Fore a Good Cause

Trysome Auto Electrical Parts Distributors Held their Annual Golf Day at the Benoni Lake Golf Course on the 10th November 2009, with all the proceeds going to charity. ABR was there to bring you the action.

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Fast

Wheels

Formula S by Howard Keeg

No, it is not baby formula. Nor is it a cheap hotel. No, Formula S stands for Formula Student, an international competition for students from all over the world, founded in 1981, to encourage students to cut their teeth, technologically speaking, via the development and manufacture of a single seater racing car. The vehicle is then subjected to rigorous testing on a racetrack, with the emphasis not just on speed, but on an overall package based on the whole process of car development, including design, performance, financial planning and marketing.

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o replicate the real life experience, the students have to assume that they have been engaged by a manufacturing entity to produce a prototype car for evaluation as a production team. The target market is the non-professional weekend racer, which requires a low cost, easy to maintain, reliable car that has high performance in terms of acceleration, braking, and handling dynamics. The car must also look good, be easy to drive, and use common parts. With an estimated production run of 1 000 vehicles per annum, the challenge for the students is to design and manufacture a prototype that best meets these goals and parameters. Each year, this team of Rory Byrne wannabes then competes with other teams to see which team has the best overall car. In August 2010, the location of this challenge will be in Germany at the famous Hockenheim race circuit, and the Nelson Mandela Metropolitan University (NMMU) will be the first and only team from Africa to participate in this international event, once again putting Port Elizabeth on the map as the South African city with practically every first in sports events, following rugby, cricket, tennis, bowls, hockey, and many more. We are sure that windsurfing must be in that group. NMMU intends to maintain its presence in international Formula Student competitions, so it is the duty of the country to get behind these pioneers in all aspects of support. Last year the competition was won by the University of Stuttgart, with the University of Hertfordshire coming in second, and the University of Western Australia taking third spot. Since this is NMMU’s first attempt it would be stretching it a bit to expect a win, but to finish ahead of the skaapsteekers would be great (before I’m accused of being anti Aussie, I must point out that some of my best friends are snakes).

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The project leaders for NMMU Racing, Howard Theunissen and Trevor Stroud The competition in Germany will not only evaluate the technical aspects of the completed car, but will also evaluate the different marketing and sales plans of the competing teams. This requires a multi-disciplinary approach, and NMMU has not taken any chances, with an all inclusive approach, involving the faculties of arts; business and economics; education; engineering and information technology; health sciences; law and science. Quite a formidable force, but they can do with even more support, from the automotive industry. I am aware that NMMU is talking to AAMA, but let everyone get behind our boys and girls. Anyone who wishes to assist, in any way possible, please contact either of the project leaders for NMMU Racing, Howard Theunissen or Trevor Stroud; [email protected]; [email protected] or 082 775 8536, 083 419 3707.

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Answers

From page 65 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

1. 2. 3. 4. 5. 6. 7. 8. 9.

517 000 Peter du Toit Jean Todt BMW, Honda and Toyota Bridgestone A Hill Climb Sarel van der Merwe 8 AJS, Norton, Gilera, MV Agusta, Yamaha, Suzuki, Honda, Ducati 10. East Germany

What’s

The American Bantam Car Company F2 in a Cooper Borgward in 1959. 1960 Cadillac Ford 1978 A pink Morgan Gene Bosman and Gus Menzies 52 A car museum.

the

Buzz?

Seen from the highway...

From the west,

and

from the east...

Is this spring cleaning or is something up! More on this in the February 2010 issue of ABR.

Answer from page 35

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Fast

Wheels

SCANDAL RIDDEN FORMULA 1 SEASON CLOSES Sport in this world suffers from scandals. Either the greed by Roger McCleery of officials who profess to run things or drugs in the case of non-mechanical sport, where a lot of heavily disguised turbo-charging pills or injections help gets results. Motorsport is no exception, although I must say so far Moto GP and World Superbike Racing, two of our best sports as far as exciting entertainment for the fans goes, is scandal free. So far. One thing scandal does with all its pros and cons is draw attention to a sport.

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ould we say that Formula 1 is no exception? Put the rich, influential beautiful people and the self-interest of politicians together with the colour, glamour and exciting noise of factory grand prix cars and add a few investigative journo’s looking for stories and hey presto - you are in the headlines. It has happened for years. We had the President of the FIA, Max Mosley, involved in a sex scandal that was supposed to rock the very roots of Grand Prix racing. It didn’t. Given time it went away because nobody other than his family really cared. So scandal sells books and promotes ticket sales to events. Flavio Briatore, the team boss of Renault, who has done great things for that team and drivers, resigned from his position after Nelson Piquet Jnr, spilt the beans about a deliberate crash in Singapore in 2008. Felipe Massa was highly upset about this as this incident basically lost him his world championship. McLaren with their $100m fine for using Ferrari IT technology was another one a few years ago, and so on. Through all this, Formula 1 will survive and carry on. It will have a new look but will continue whether BMW, Honda and Toyota depart the scene or not. Renault is discussing its Formula 1 position as we write but basically want out. These teams are all doing it for themselves and certainly not necessarily for the sport. Through all this, Formula 1 in the main provided the most unpredictable season in history. Jensen Button winning the Formula 1 Championship in Brazil brought a new happy face to GP racing along with his team-mates, Rubens Barricello, (sometimes) Sebastian Vettel, (the next Formula 1 Champion?), Mark Webber, Fisicella and Lewis Hamilton. Gone are the miseries that used to occupy the Winners Podium, like Prost and Senna, plus of course the Finns, who can be forgiven for this attitude, coming as they do from a country with eight months of a bitterly cold winter and also the language problem. Have you seen the joy on the faces of the Moto GP, Superbikes and the Americans in Nascar and Champ Car racing when they win? That’s what we would like to see on a Sunday in Formula 1. The Brawn GP Team under the genius, Ross Brawn, formed only three weeks before the first Grand Prix in 2009 in Australia, without any

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fuss or politics led the season from the start and were never headed throughout the year both in the Drivers or Manufacturers Championship. What a fairy tale story that makes. Mighty things were expected from the McLaren and Ferrari teams who held sway in 2008 and were all set to do it at the beginning 2009. But they were made to look very average until they stopped talking and started getting some results by adjusting their cars to suit the rules. Mercedes Benz and Renault engines dominated the scene. Toyota nearly had the performance but not the results. A messy power struggle between the FIA and the Formula 1 Teams nearly resulted in splitting Formula 1 forever. Cool heads put things on the back burner given a promise that Max Mosley was giving up his FIA Presidency. Max has actually done great things for motor sport and road safety in his 11 years at the top. Now the newly elected President, Jean Todt, who competed himself at the top level in rallying, has taken over the reigns and we should see Formula 1 taking on a new look. Todt of course steered Ferrari to its greatest successes ever. He knows the goings-on of the sport first-hand. So what can we expect in 2010? A few teams have departed, four other teams have been accepted in the line-up with the new owner of BMW hoping to get a spot. Some technical rules have changed and refuelling has been discontinued. Nobody has really made the effort to design cars that are passer-friendly, except on the traditional Grand Prix Circuits like Silverstone, the Nurburgring, Monza, Belgium, Brazil, Japan and now Turkey. The follow-my-leader circuits with brilliant facilities that in some cases must have cost a fortune to build, remain. But they do take this world sport to countries that were never thought of before and have no motor sport history or indeed a motor industry. To those of you who might have stopped watching Grand Prix racing or so you say, get to a GP somewhere, sometime in the future, and you will be thrilled and amazed with the sheer speed, exciting noise and cornering capabilities of F1 cars with the world’s best driving talent at the wheel. Roll on 2010.

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2010

Wilde Fingal Wilde is back, with a story he has been threatening to write for some time. He’s back because of an avalanche of requests from our readers. Both of them threatened to pull their subscriptions if Fingal was not back, so we have no option...

by Fingle Wilde

Things

Get Thee to a Nunnery, Sir! South Africa is a unique country, in many aspects. One of its unique aspects is the ability of anyone on wheels to buy a good portion of one’s monthly requirements at the robots. A dangerous pastime in many respects, and frustrating for those behind you while you process the procurement requirements, covering such things as haggling, entreating, and in the case of pirate DVD’s, furtive exchange. Very strange indeed, but what is even stranger is that the traffic authorities allow this extremely dangerous pastime, whilst spending an inordinate amount of time and effort in nailing the lunatics who dare to go 72kph in a 60 kph limit in their modern marvels of safety. Diarrhoea inducing indeed.

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ack to the subject of robot shopping. Of course, many of those hassling you at the robots are not trying to sell you something. Some are begging, and some are just trying to offload pamphlets for which they are paid a pittance, considering the safety hazards and the environmental dangers. My sympathies lie with the pamphlet purveyors, so I always endeavour to relieve them of their burden, because I will read almost anything. I have even been known to read telephone directories in lonely hotel rooms when nothing else is available. The flavour of the month in robot literature seems to be some outrageous promises made by a motley crew of professors and doctors, relating to penis size, lovers, business success, bad spells, weight loss, and much much more. These guys, who go under a variety of exotic names, are seriously impressive all-rounders. Monikers such as Prof. Sampoa, Dr. Mama Osman & Dr. Ali, Prof. Wakho (very appropriate) and Dr. K.K. Victor abound. But one small pamphlet stands out (excuse the pun) from the rest. The name is also different, resonating legal partnership or high flying consultants; Tony & Associates, and it addresses both men’s and women’s needs. One solution proffered is the promise to solve virginal discharge. This got my mind racing in all directions, and my first thought was that it must have been a very naughty nun! And it is amazing how far the mind can wander when so severely provoked. For some reason I got round to Hamlet and Ophelia, and the realisation that Shakespeare was one prescient dude, and that he was doing his Nostradamus thing when he put these words into Hamlet’s mouth; “Get thee to a nunnery, why woulds’t thou be a breeder of sinners?” You see, ever since I saw the da Vinci Code, I can unravel any puzzle. Shakespeare was actually talking about Julius Malema. Ophelia is code for “Odious prick has everyone looking into Australia”. And Shakespeare was warning us about this Peter Pan fellow. The nunnery reference could indicate where nun’s stay, but I prefer the theory that nunnery was Elizabethan slang for brothel. And he was warning us that Julius Malema is actually a closet hermaphrodite, who frequents brothels but fortunately cannot pass on his seriously disturbed genes. Yes, I know, there is no Pedi word for hermaphrodite, but that didn’t deter Shakespeare, who is reputed to have had a vocabulary of some 30 000 words, which is about 29 900 more than Julius’ Pedi vocabulary. Please be assured that this is not a Pedi bashing exercise, some of my best friends are North Sotho. In actual fact, according to the sometimes outrageously wrong Wikipedia (notice the pedi in Wikipedia), the American spelling of paediatrician is pediatrician because it is a tribute to the childlike nature of such Pedi luminaries as our Julius. And pedicure originally denoted, before it was bastardised to its present usage, that Julius was taking his foot out of his mouth. That’s all folks, I have to go. Those two hermaphrodite looking nurses have arrived to put on my long sleeve jacket, and to take me back to my nice room with the soft walls.

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The

Last

Writes

by Baron Claude Borlz

The greatest source of humour and Pathos in South Africa is the ABR reader:

Some aphorisms to mull over: 1. The nicest thing about the future is that it always starts tomorrow. 2. Money will buy a fine dog, but only kindness will make him wag his tail. 3. If you don't have a sense of humour, you probably don't have any sense at all. 4. Seat belts are not as confining as wheelchairs. 5. A good time to keep your mouth shut is when you're in deep water. 6. How come it takes so little time for a child who is afraid of the dark to become a teenager who wants to stay out all night? 7. Business conventions are important because they demonstrate how many people a company can operate without. 8. Why is it that at class reunions you feel younger than everyone else looks? 9. Scratch a cat and you will have a permanent job. 10. No one has more driving ambition than the boy who wants to buy a car.

Suid Afrika se nuwe popgroep sensasie

12. There are worse things than getting a call for the wrong number at 4 am - it could be the right number. 13. No one ever says "It's only a game." when their team is winning. 14. I've reached the age where the happy hour is a nap. 15. Be careful reading the fine print. There's no way you're going to like it. 16. The trouble with bucket seats is that not everybody has the same size bucket. 17. Do you realise that in about 40 years, we'll have thousands of old men and old ladies running around with tattoos? (And rap music will be the Golden Oldies!) No! Say it isn't so!

* Late Flash... Tiger Woods has applied to join the group

18. Money can't buy happiness -- but somehow it's more comfortable to cry in a Porsche than in a Yaris. 19. After 60, if you don't wake up aching in every joint, you are probably dead!

11. There are no new sins; the old ones just get more publicity.

And new additions to Murphy’s Law: Law of Queues: If you change queues, the one you have moved from will start to progress much faster than the queue you have moved to. Law of Telephones: When you dial a wrong number, you never get an engaged tone. Law of Mechanical Repairs: After your hands become coated with grease, your nose will begin to itch. Law of the Workshop: Any tool, when dropped, will roll to the least accessible order. Law of the Alibi: If you tell your boss that you were late for work because you had a flat tyre, the next morning you will have a flat tyre. Bath Theorem: When the body is immersed in water, the telephone rings. Law of Encounters: The probability of meeting someone you know increases exponentially when you are with someone you don’t want to be seen with. Law of the Result: When you try to prove to someone that a machine doesn’t work, it will! Corollary to the Law of Result: When you try to prove to the workshop that your car is playing up, it will perform faultlessly. Law of Biomechanics: The severity of the itch is inversely proportional to the reach. Law of Coffee: As soon as you sit down for a cup of hot coffee, your boss will ask you to do something which will last until the coffee is cold.

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