Automotive Business Review July 2009

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From Little Acorns On Your Bike, Otto Eco-Friendly Vehicles Fewer, Bigger, Better Logan’s Run Cadillac Man

The

Phoenix

Take any situation at any point in history and take everything at face value, or look at it in black and white, and the whole thing looks cut and dried. But look at the underlying strengths and weaknesses, which cannot be readily seen, apply some shades of grey, and the situation changes dramatically. History is full of these anomalies, not least the recent Iraqi War. This situation also applies when looking at the future potential of individuals, institutions, companies or mergers and acquisitions. If the imponderables are taken into account, the long term consequences of such decisions could radically alter these decisions. The best decision maker is hindsight, which unfortunately comes after the event. Size, or relative size, tends to skew the analysis. For example, if an alien power arrived in our solar system and took a rudimentary look at our planet, using size as the yardstick, they would quickly come to the conclusion that the sperm whale is the dominant species on earth. A more detailed analysis would quickly uncover the fact that they are being harpooned out of existence, or at least they are always under this existential threat. A closer look would rapidly reveal that the groot meneer on the third rock from the sun, by a country mile, is homo sapiens. Even closer analysis would show that this strange species seems hell bent on wiping itself out, by varying depths of hedonism, materialism and selfish behaviour. Apart from this self destructive behaviour, what really terrifies the human race does relate to size, but not the big whales, rather the small bugs. And it goes back a very long time. The history of mankind has shown decimations on a large scale, and the usual culprits cannot be seen, be it smallpox, bubonic plague, Aids, Spanish Flu, and lately Swine Flu could be the next pandemic– this is what terrifies us. Yet, from a foreign policy viewpoint or corporate policy sense, we seem to have a blind spot, and size does seem to impress us and to dull our senses. Who would have predicted in the halcyon post war decades that behemoths such as General Motors and Chrysler

would declare bankruptcy in the first decade of the new century, primarily because of their bloated corporate structures and gung ho deals with the unions? Similarly, H.G. Wells relied on our fear of things big and powerful to scare the bajeezus out of us with his “War of the Worlds”, only to bring us and the Martians down to earth via the intervention of a small and unknown enemy. And, if the truth be told, it was not the big muskets that brought the New World to its knees, it was firewater and smallpox. This has been a long and convoluted introduction to get to the point of our cover illustration – David vs. Goliath, and the suggestion that everything is not always as it seems. Size is relative, and growth comes from small beginnings and big decisions, and sometimes from unexpected quarters, this is the message of our cover, and of our cover story. Go to page 14, and make your own conclusions and hypotheses, both in the macro and micro sense. This dissertation on size is also relevant to my second point, which is that size or longevity can also lead to complacency or even a touch of arrogance. Large or well established companies should celebrate their roots, and honour their founders. This acknowledgement of humble beginnings, and remembrance of what made a company great, is an integral part of the continued success, or even existence of that company. I make particular

reference to the Boardroom Edition of RMI 101 (see details under this editorial), and the reaction to this memorable memento. The response to this endeavour has on the whole been enthusiastic, with the majority of those approached realising the significance of the project, but there are a few companies, thankfully in the minority, with rich and honourable pedigrees that have decided not to participate, mainly because of the current economic circumstances. This is most unfortunate, as their absence would not only diminish this publication, it will be a snub to the founders of the organisation and a disregard of the pioneers in forging its growth. It also reveals a dangerous mindset. Dangerous in that it is a form of self fulfilling prophecy. I appeal to the current custodians of these organisations, “don’t laager yourself into oblivion”. Honour your founders, honour your pioneers, honour their ideals, and honour your histories, and look forward to the next 101 years. Don’t come to regret a short sighted and short tem decision. And finally, take a look at the heading for this editorial – this is indeed WORDS IN ACTION, saying many things, whilst letting the reader see more than one message. This is one of ABR’s ideals, and hopefully something to celebrate in the future.

w w w. a b r b u z z . c o . z a Boardroom Edition of RMI 101

T

rilogy Publishing has been commissioned by the RMI to produce a prestigious edition of the history of the RMI, and a history of the companies that contributed to the development of the South African automotive industry, in all its forms, over the past 101 years. Scheduled for publication in November 2009, the RMI 101 serves the primary purpose of celebrating the centenary of the Retail Motor Industry Organisation, whilst also informing the automotive community of the role the organisation plays today. The RMI 101 issue has another exciting purpose – to provide a forum for the who’s who of the auto-

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motive industry to tell their stories, and to contribute to this rich tapestry of our pioneering history. The editorial copy shall be written by highly qualified and esteemed journalists assigned the task by Trilogy Publishing, with the welcome participation of the companies involved. The compilation of RMI 101 shall commence in August 2009, and is scheduled for completion in October 2009, and distribution is planned for November 2009, as it will serve as a wonderful year end gift. We shall only be allowing 101 companies, basically first come first served, so we recommend that you indicate as soon as possible whether you wish to be involved in this venture. Trilogy

Publishing and the RMI will truly appreciate an enthusiastic response from the industry in compiling an accurate and magnificent acknowledgement of the pioneers of the automotive industry in our country and something worthwhile to serve as a memorable memento of our wonderful history. Please contact Stanton Porter Marketing at 012 654 2745; or Graham Erasmus at 083 709 8184 or [email protected] for more details on how you can participate at incredibly low rates. Don’t delay; this opportunity only comes once every 101 years! July

2009

Contents

8

6

10

12

4

The Phoenix

8

What’s the Buzz

12

Focus on Forsdicks

Forsdicks Approved Repair Centre

14

Cover Story

From Little Acorns …..

18

Frankly Speaking

Painting Your Wagoner into a Corner

20

MISA Minutes

16

Auto Topical

On your Bike, Otto!

24

The Chery Story

Keeping the Cost of Motoring Down

26

Health Care

Managing Your Health

28

Customer C.A.R.E.

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

34

Managing the Risks

Under Pressure

36

Weighty Issues

The Rapidly Disappearing Truck Market

38

Tony’s Take

Economic Recovery or Alphabet Soup?

42

AutoZone Update

A Comprehensive Service Offering

43

AIDC

Automotive Industry Conference 2009

44

Personal profile

Q & A with Stanley Anderson

46

Tyre Safety

Tyres’ Contribution to Safety in Motoring

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

Goliath vs David

Gamble, Austin Keeg, Howard McCleery, Roger Twine, Tony Wilde, Fingal Published by: Trilogy Publishing

Advertising Sales: Stanton Porter Marketing Werner Kolver Tel: 012 654 2745 Cell: 082 577 8411 e-mail: [email protected]

Contents

14

56

72

48

Diamond Dialogues

The Importance of the Automotive Aftermarket

50

The Tipping Point

Eco-Friendly Vehicles

52

Industry Update

Life Goes On

54

From the Cockpit

Groenewald Shows his Class

56

Innovation

See What You Mean

58

Capricorn Insights

Fewer, Bigger, Better

60

AIDC Quiz

20 Questions

61

Wilde Things

A Call to Alms

62

Robert Bosch

30 years of safe braking with Bosch

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e-CAR

The Deep Roots of the Goldfields

65

Burford on Brands

Logan’s Run

66

Partinform

Partinform Blooms in Bloemfontein

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Vehicle Evaluation

Cadillac Man

74

Corporate Conscience

It’s More than just Business #2

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Road Safety

DWD as bad as DUI

76

Fast Wheels

The Brawn Formula One Team Rolls On

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The Last Writes The publisher and contributors have done their best to ensure the accuracy of the articles and cannot accept responsibility for any loss 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.

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]

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

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What’s

the

Buzz?

Hyundai and Kia Score at FIFA Confederations Cup 2009 On 5 June 2009, Hyundai Motor Company and Kia Motors Corporation, official Automotive Partners of the FIFA Confederations Cup 2009™, performed the Official Vehicle Hand Over Ceremony to FIFA and the 2010 FIFA World Cup Organising Committee South Africa at the MTN Expo Arena and Conference Centre at Nasrec, Johannesburg. The Confederations Cup serves as a dress rehearsal for the 2010 FIFA World Cup South Africa™, and as the official Automotive Partners Hyundai and Kia are supplying transportation for the players, officials and VIPs for both events. The handover also marked the launch of the right hand drive version of the Hyundai Universe luxury coach in the South African market. Both Hyundai and Kia see Africa as an important market, and they also see football as a core element of their marketing strategies and as an efficient way of communicating with customers by sharing their passion for football and connecting emotionally with them.

The Subaru Impreza WRX sedan is back

Bentley South Africa and Deccan Chargers VIP Cocktail Evening The IPL Cricket Tournament may be over, but the buzz continues. The Deccan Chargers IPL Cricket Team, winners of the tournament, marked the Bentley South Africa VIP Cocktail Evening hosted at Bentley Motor’s Johannesburg Flagship, Pearl Automotive, as thé function of the year. Fittingly, the Chargers (whose franchise fees cost a whopping US$ 107 Million!!), were guests of honour.

Subaru Southern Africa is going back to its roots, introducing a Subaru Impreza WRX in fourdoor guise. The change to a four-door version of the WRX also signals a realignment of the Impreza range, now rationalised to comprise a 2.0R sedan, WRX sedan and STI hatchback. The updated Impreza range now comprises the 2.0R sedan 5-speed manual, which is expected to be launched from R249 000, 2.0R 4-speed automatic from R259 000, the WRX sedan from R349 000 and the STI at R545 000. Pricing includes a three-year, 63 000 km full maintenance plan. The 2.0R models continue largely unchanged apart from detail exterior changes, and ergonomic improvements to the interior which further enhance its functional and user-friendly nature. Under the bonnet is the free-revving 110 kW/196 Nm 1 994 cc DOHC Boxer engine, which uses just 8.9 litres/100 km in mixed driving. The 2009 WRX gets a significantly more powerful 2.5-litre DOHC Boxer engine: the kW rating climbs from 169 to 195, while torque increases by 23 Nm. Automotive Business Review will review these vehicles in more detail in next month’s issue.

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Herschelle Gibbs and Chaminda Vaas were the night’s Bentley Boys July

2009

What’s

the

Buzz?

Made in Thailand Exhibition 18 – 20 June 2009 The Made in Thailand Exhibition was held at the Sandton Convention Centre from 18 to 20 June 2009, the ninth consecutive year that this convention has been held. A little known fact is that Thailand is an automotive assembly hub for south eastern Asia, with assembly plants varying from BMW to various Chinese manufacturers. Of interest to the South African motorist, is that the Mitsubishi Triton and the Mazda BT-50 are assembled in Thailand. Thailand has a distinctive reputation as a quality service provider at competitive prices.

TDAFA Awards recognises tyre industry excellence The Tyre Dealer and Fitment Association, a constituent association of the Retail Motor Industry organisation, held its Inaugural 2009 Industry Awards function at the Bryanston Country Club recently. This follow up event of the initial concept launch in May 2008 has in 12 months gained substantial momentum, with an excess of 200 guests including VIP’s of Industry and Associated Businesses, Government Officials, MEDIA, and various other Dignitaries. The TDAFA is fast establishing itself as the relevant body with regards to tyre and related issues directly representing some 600 dealers and indirectly a further 1000 dealers. The process administered in arriving at the final winners included an Independent Survey Company individually phoning all TDAFA members for nominations in the various categories. “Our members are the end users and distributors of the product range, there are no better judges than them!” said Vishal Premlall Director TDAFA, and Consumer Affairs Manager of the RMI. He went on to say that the 2010 Awards Ceremony will include two more categories i.e. Industry Person of the Year and Tyre Importer of the Year. Premlall said that he was confident the awards would encourage the tyre industry to continuously “elevate standards from the top down” thereby adding value to consumers. “TDAFA’s awards evening is fast becoming the most prestigious event on the tyre industry’s calendar.” For more information on the TDAFA please contact Vishal Premlall at Tel 011 886 6300; e-mail [email protected]; web www.tdafa.co.za

Acclaimed local comic Dr. Riaad Moosa provided light-hearted punctuation to the proceedings, acting as impromptu Master of Ceremonies and introducing each of the evening’s speakers by inducing applause from the assembled guests.

Winners: 2009 Equipment Supplier of the Year Award - Received by Neville Stevenson of SNAP ON / JOHN BEAN; 2009 Tyre Supplier of the Year Award - Received by Mr Dustine Gascoyne, Marketing Director of Goodyear SA; 2009 Dealership of the Year Award - Received by Mr Imtiaz Tayob, CEO of the MALAS Group; 2009 Non Rubber Supplier of the Year - Received by Mr Errol Innes of WILLARD Batteries

The Bryanston Club has many private meeting rooms – The Phoenix Room was of particular significance to ABR

Luminaries of note attended the function

July

10

2009

Focus on Forsdicks A series of articles on Forsdicks Sandton

Brand Pretorius, CEO of McCarthy Limited

Forsdicks Approved Repair Centre

F

orsdicks is a member of the McCarthy Group, South Africa’s leading motor retailer, and in the words of Brand Pretorius, CEO of McCarthy Limited, “is a valuable member of the group, and our BMW approved collision repair shops represent a particular centre of excellence because of their single minded focus on quality, service and customer satisfaction”. Forsdicks Approved Repair Centre in Linbro Park, Johannesburg is a state of the art facility, designed after extensive research and planning, and implementing some of the best practices available at the time. From the offices to the workshop, the design and equipment layout was done to ensure the most efficient output and workflow to the benefit of the customer. Therefore, it is not surprising that this facility is approved by all major insurance groups and receives much of its business from referrals from BMW dealers and fleet owners. It is also not surprising that for many years Forsdicks Approved Repair Centre has consistently scored above 95% in the South African Motor Body Repairs Association (SAMBRA) assessment.

causes greater surface hardness, it also enhances the car’s resistance to environmental factors such as acid rain or bird droppings.

Wide range of services Forsdicks Approved Repair Centre not only offers body and paint repairs, but work such as wheel alignment, aircon repairs, and windscreen fitting is also done in-house. All equipment conforms to BMW's stringent panel shop requirements and even the emissions are controlled within BMW’s strict specifications to ensure a cleaner and healthier environment.

Wheel alignment

Advanced paint technology BMW is committed to using environmentally friendly, technologically advanced processes to enhance the quality of paintwork, both in terms of appearance and functionality. While traditionally environmentally unfriendly organic solvents have been the number one ingredient in conventional paint recipes, the paint used at Forsdicks Approved Centre are waterbased which means that four-fifths of the solvent is replaced with water. This means that when the paint dries, the water that goes back into the atmosphere contains a minimum amount of solvent emissions. Using the water-based paint provides just the right conditions for applying the twocomponent clear paint just before the car is polished. The clear paint not only results in better gloss and brilliance, but because it

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The Naja Electronic Body Measurement Machine utilises main reference points to check that the chassis is straight

The BMW DIS Machine reprogrammes the engine management system July

2009

Cover

Story

From Little Acorns ……. If one is looking for an apt phrase to describe the Imperial Holdings Group, “mighty oaks from little acorns grow” readily springs to mind. The acorn in question is Percy Abelkop’s service station in Main Street, Johannesburg, which opened in 1946.These humble beginnings belie what is now a group “with substantial scale in long-term, sustainable sectors of the South African economy, weighted towards the transport needs of individuals and businesses”.

The Chrysler Imperial, which served as the inspiration for the Imperial Group’s name. This is the 1960 model.

P

ercy Abelkop opened his service station after returning from the North African and Italian campaigns in World War II. He graduated to selling used cars, and in 1959 he opened a Pontiac dealership, and in 1963 serendipity played a role when he acquired a Chrysler dealership, trading at the time as “Barney’s Super Service Station”. Even though Percy Abelkop could not have envisaged the current Imperial Group in his wildest dreams, he was prescient enough to realise that whilst Barney’s would make a great name for a circus, it would not exactly bring a horde of prospective Chrysler owners beating a path to his door. The new name he chose for this dealership was Imperial, which was the flagship vehicle of the Chrysler range. This, from a historical perspective, can be safely taken as the birth year of Imperial Holdings. Things did not go as smoothly as Percy would have liked, with the nascent company having to

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navigate some stormy seas in the late sixties and early seventies, and he and his recently appointed Group Administrative Controller, an Irish émigré named Bill Lynch, took the brave decision to take on the then unfashionable franchise for Toyota vehicles. A long and arduous path followed, as the seventies presented many challenges, not least being the 1973 oil crisis, the 1976 Soweto riots, and a wildly fluctuating interest rate cycle. Who says history does not repeat itself? The rest, as they say in the classics, is history. The Imperial team started to diversify, with forays into truck hire, leasing, and transport, which was an early indication of what was to come. In 1987 Imperial listed on the Johannesburg Stock Exchange, and a transport giant was born. July

2009

Cover Expansion into financial services in the late 80’s, international acquisitions in the late 90’s, and the leveraging of mobility expertise into aviation and tourism in the early part of this decade, followed. Today, despite a global economic crisis not seen since 1929, the Imperial Group, through a restructuring and consolidation process in 2008, is in a sound position to renew its sterling growth record when the good times return in the not too distant future. This quote, taken from Imperial’s Annual report 2008, puts it in a nutshell, “When examining Imperial today, one finds a diversified industrial services group with three clearly defined clusters – Logistics; Car Rental and Tourism; and Vehicle Retailing. These are the areas of Imperial’s focus. However, we should not be measured only in terms of what we are today, because we are creating new centres of growth for tomorrow. In keeping with Imperial’s history of broadening its horizons into new fields of business, we will continue to pursue opportunities that can be aligned to, and improve our existing operations. Therefore, we believe our future

Story

holds more value than our present.” Taking a look at Imperial’s track record, these are not idle words. Consider that in 1987 Imperial’s revenues were R159 million with a pre-tax profit of R8 million, and its market capitalisation was R35 million. In its 2008 Annual Report, Imperial reported revenues of R56 billion and pretax profits of R2,1 billion, and a market capitalisation of R11,2 billion. This, however, does not tell the full story. To get a better idea of Imperial’s record and potential, one needs to look at what Imperial was achieving before its unbundling of its Leasing and Capital Equipment division, and the closure and sale of other businesses. In 2007, Imperial’s market capitalisation was R29,7 billion, its pre-tax profit was R3,6 billion, and when its share price touched record levels, someone who had invested R6 750 in 1987, could have sold their shares for R1,75 million. That same amount, if invested in a fixed deposit at 10% p.a., would have been worth R45 000. Even Warren Buffet would celebrate with a few cherry Cokes!

The Imperial Genes are a Good Fit for Imperial Auto Parts

I

mperial Auto Parts (IAP) has all the hallmarks of an Imperial operation. Conceived in 2004 and operational since March 2005, IAP falls under the Imperial Group’s Vehicle Retailing cluster, and it as yet hardly rates a mention in the 2008 Annual Results. The reason for this is that it is defined as “still being in the developmental phase”, which suits the management team to a tee, who consider themselves as being in a David versus Goliath situation; IAP being David, and the broader automotive parts distribution market in all its manifestations, being Goliath. But IAP does have the might of the Imperial Group behind them, and thus they do not even need to unleash their sling. Their mere presence is enough to make the automotive market sit up and take notice. IAP is following the Imperial template to the letter, the essence of which is encapsulated in six powerful and successful philosophies, honed and perfected over the decades since Imperial’s inception: •

•

Grass Roots Initiatives – without exception (but for Aviation), Imperial’s vast empire has been built up from ground level. All the divisions have grown from small startups. Logistics, Leasing and Fleet Management (since hived off ), Car Rental and Tourism, Distributorships, Motor Dealerships, Insurance and Banking, all did the acorn to oak replication. Prove a Theme – Imperial first “proves a theme”. Once proved, it pours resources and energy into its growth and development. The motivation is that growth comes from innovation and finding a better mousetrap, and doing things differently, and well. Taking this further, if you can

July

2009

do it well in one location, you can do it well in other locations, and from this you get geographical growth. Apply this in equal measure to existing businesses and acquisitions, and from these small bases, you get significant organic growth. •

Decentralisation and Empowerment of Executives – Imperial operates on an intoxicating mix of entrepreneurial flair, conservative financial constraints, strong marketing and solid operational structures. This is defined as a push/pull scenario which creates dynamic harmony, which when implemented with the correct nuances, results in the best wisdom prevailing.

•

Business Building – Imperial is in the business of building businesses. This requires time and patience, and needs a foundation on which the business can expand and prosper. Appropriate support and the correct disciplines are the nutrients that sustain these businesses.

•

Capital is a Valuable Resource – Imperial’s impressive pedigree is in no small measure attributable to the belief that capital is a valuable resource. This universal truth, which is often neglected and even spurned by new age entrepreneurs, is the rock upon which this mighty oak is built. Corollaries that flow from this wisdom are the appropriate return on capital and the dictums that profits shall be re-invested and that any venture must become self sustaining in a required period of time.

•

Mobility – Imperial sticks to the knitting! And the knitting is “mobility”. Despite the recent restructuring, Imperial remains, quoting Hubert Brody, Chief Executive Officer, “a group with substantial scale in long-term, sustainable sectors of the South African economy, weighted towards the transport needs of individuals and businesses”. In other words, if it moves and makes sense, Imperial will get involved.

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Cover

Story

The Genesis and Growth of Imperial’s Automotive Aftermarket Initiatives In 2004, the Imperial Group recognised that with its impressive logistics, car rental, vehicle distribution and motor dealership footprint, that a presence in automotive parts distribution was not only feasible, but imperative. From this recognition, Imperial Auto Parts (IAP) was born, closely followed by an agreement of co-operation with Mikar Spares (and eventually ownership), and further down the line the acquisition of Alert Engine Parts and Engineparts, both specialists in engine parts.

T

he fulcrum for Imperial’s foray into parts distribution was MIKAR, founded in 1999 by a group of eight enterprising and prominent spares outlets based in Pretoria, Kempton Park and Johannesburg, who had banded together to form a members co-operative focusing on respected brand names and guaranteed local and imported product, and the identification of four essential elements of success: • • • •

Customer Support Unity of Members Support of Suppliers Effective Marketing

These elements would bring the benefits of collective buying power, a recognisable enhanced image, access to quality branded product, combined advertising and promotional input, and members’ participation in decisions. MIKAR was a product of the times, and when Chairman Fred Nasser, who together with Derek Blanchard was the driving force behind this creative adventure, was approached by Imperial Auto Parts in 2004, he recognised the synergies, and a handshake of enormous import took place at the offices of IAP in Bedfordview on the 28th October 2004. Less than five years later, MIKAR plays an important role in the strategies of IAP, which itself has gone through a learning curve, and is now positioned to make a significant impact in the South African Automotive Aftermarket.

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In recognition of the pioneering partnership between Imperial Auto Parts and MIKAR, Fred Nasser received the Chairman’s Award at the 2009 Mikar Conference on 18th March 2009, a fitting tribute as it was Fred who instigated this award some ten years ago. Part of the evolution of Imperial Auto Parts, was the eventual coalescing of a strong management team to take IAP forward. This management team comprises chief executive officer, Deon Botha; sales and marketing executive Pieter van Deventer; financial executive Janson Ponting; and procurement executive Terry Brand. This team has been commissioned by the Imperial Group to carry Bill Lynch’s original mandate forward; i.e. to leverage off the strong entrepreneurial spirit that is evident in South Africans of all stripes, and to give these entrepreneurs the chance to go for it, with no pre-conditions, all premised on the Imperial entrepreneur business model. IAP’s message to the market is a mixed bag of rectitude, passion, vision and commitment: • • • • •

IAP will conduct itself professionally and ethically IAP shall provide the market with quality products at affordable prices IAP is dedicated to the independent entrepreneur IAP is here to stay for the long haul IAP is committed to bringing Imperial’s vision to fruition

July

2009

Cover Deon Botha, chief executive officer, IAP “Imperial Auto Parts is now in a position to offer its customers quality products, world class service and a professional and ethical commitment backed up by a reputable organisation. We shall do this with humility and enthusiasm, for the mutual benefit of our organisation and our customers. We shall quietly do our thing, and we shall never forget our mandate. My message to the staff of IAP and our customers is that arrogance shall be avoided like the plague.”

Janson Ponting, financial executive, IAP “We recognise that our strategic advantage is world class information systems and cash management. We have recently implemented a state of the art ERP (Enterprise Resource Planning) system, which is a fully integrated system that covers the A to Z of best practices. This is a multi-million Rand investment that enhances our business both upstream and downstream, and we shall continue to invest in processes that will give us the competitive edge in distribution.”

Story Pieter van Deventer, sales and marketing executive, IAP

“The culture of Imperial Auto Parts is one of an entrepreneurial hands-on team that partners with like minded business partners, be it customers, suppliers, whoever; in fact all stakeholders. Our focus is on nurturing close relationships to create a “unique” strength that bonds for the future, and puts us in a position to aggressively widen and deepen our footprint in southern Africa. To this end, we are relocating and expanding our operations in Cape Town, Durban and Nelspruit”

Terry Brand, procurement executive, IAP “We source locally and globally to give effect to our promise of quality products and competitive prices. Whilst we offer the world’s leading automotive brands, we also scour the world extensively to seek out the best possible suppliers for our RAPS in-house brand, providing a comprehensive range of quality tested and keenly priced alternative product for the cash strapped motorist. Continuity of supply is our promise, so the supply chain becomes a key element of our strategy.”

Product Philosophy The recent proliferation of vehicle brands and models in South Africa has meant that local component manufacturers have been unable to keep up with demand, and the resultant gaps in product ranges has meant that parts distributors have had to look for alternative sources to satisfy the market. This is a situation not of their own making, but to satisfy the needs of the burgeoning car parc, the distributors have no option but to look outside the country. Imperial Auto Parts has met this challenge with the introduction of an exclusive brand, named RAPS (Reliable Automotive Parts Supplies). After an extensive and prolonged product development process, IAP is now in a position to offer its customers a sound brand that has the necessary back up of a reputable organisation. The focus has been on product where there is no local manufacturer, or to import to cover the gaps created by such a diverse car parc. Deon Botha, chief executive officer of IAP, says that with this package, “we can provide our traditional and emerging customers not only with the well known and well loved proprietary brands, which by default give the customers peace of mind, we can now give the broader motoring community a house brand with acceptable quality, affordable prices, and that very important ingredient of assurance that their vehicle can be maintained and kept roadworthy at reasonable prices.”

July

2009

17

Frankly

by Frank Beeton

Speaking

Painting Your Wagoner into a Corner

As these words are written, it has just been announced that General Motors Corporation, which was, at one time, the world’s biggest business, and, until recently, its largest vehicle manufacturer, has entered a judicial process known as Chapter 11 Bankruptcy Protection. Given the unfolding of global events since the emergence of the so-called “subprime mortgage crisis” in the United States of America during 2007, including the subsequent cataclysmic imploding of new vehicle markets, and several huge US government interventions to keep GM and cross-town rival Chrysler LLC cash-liquid, this event was not entirely unexpected. It has, however, added to the list of embarrassments recently suffered by vehicle manufacturers, including Chrysler’s subsequent bankruptcy protection leading to a proposed merger with Fiat, and debt restructuring measures which have become necessary at companies as geographically and culturally diverse as Porsche in Germany, and Tata in India.

B

efore proceeding any further, it would be just as well to record some explanation of “Chapter 11 Bankruptcy Protection”, as this provision seems destined to play an important role in the restructuring of a number of substantial American businesses. In very simplified terms, it is a component of the US bankruptcy Code allowing for the financial reorganization of companies while they follow debt repayment plans, which does not require the liquidation of the business. During this process, the debtor company remains in control of the operation, as the “debtor in possession”, subject to the oversight and jurisdiction of the federal bankruptcy court. Two of the most important provisions of this process are the automatic stay, which requires all creditors to cease their collection attempts, and the ability of the protected company to reject executory contracts, typically with labour unions, dealers, vendors and customers, in which each party has residual contractural obligations. Although it is expected that GM will emerge, albeit in some fairly radically altered form, after the Chapter 11 period, there can be no doubt that these recent events have shaken the very foundations of the formerly world-dominant American motor industry. Only last September, GM celebrated its Centenary, and we were reminded of its early history, starting on September 16th, 1908 when high school dropout William C (Billy) Durant incorporated the company, which, at that time, only listed the Buick and Oldsmobile brands among its assets. Durant’s perception, unpopular among most of his contemporaries, was that a grouping of several carmakers under one corporate umbrella would have better prospects for growth than a stand-alone entity. Durant’s vision proved to be prescient, and, by 1916, Cadillac, Chevrolet, Oakland and GMC had joined the GM “family” that was to emerge as the only serious rival to the then industry-dominant Ford Motor Company. By 1926, GM, under the leadership of the legendary Alfred P. Sloan, Jr., had eclipsed Ford’s dominance. One important aspect of GM’s history was its willingness to invest abroad. Between the World Wars, it acquired Vauxhall in the

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United Kingdom, Adam Opel in Germany, and Holden in Australia. In addition to the continuation of these individual brands under the GM umbrella, other manufacturing and assembly plants were established in many other countries, including South Africa. An important consequence of this policy was that the “mainstream” US products, which had previously been exported all over the world, became progressively isolated from overseas markets, and were used almost exclusively to service the huge North American demand for vehicles, which peaked at 17 million units in Year 2000. This process began to reverse once foreign cars, particularly those of Japanese origin, began to make their mark on the US market from the nineteen-seventies onwards. One of the best examples of international product co-operation was GM’s JCar series medium sedan platform of the nineteen-eighties, which was built in the US, Germany, Australia and Japan, and sold simultaneously as the Opel Ascona, Vauxhall Cavalier, Holden Camira, Chevrolet Monza, Cadillac Cimmarron, Pontiac J2000, Oldsmobile Firenza, and Isuzu Aska. However the American models were, predictably, a little more soft and showy than those built and sold overseas. More recently, the purchase of bankrupt Daewoo’s light vehicle assets in South Korea has established a new value vehicle sourcing string which has benefited GM’s marketing efforts across the globe. Making some rational comment on GM’s current problems from a South African perspective is a challenging exercise, and it would be impossible to cover all the manifold aspects in an article of this length. The real issues that have pulled GM down include a progressively declining North American market share in the face of foreign competition, uncompetitive production cost structures with a highly organised and expensive labour force, negligible export potential for US-built products, and ever-tightening domestic fuel consumption and emission legislation. It also became heavily dependant on larger cars and truck-based SUV products for its profits, while smaller, more fuel-efficient vehicles were demanded by the market. In a situation of falling sales volumes, this developed, with frightening rapidity, into an untenable situation. July

2009

Misa

Minutes

- By Dana de Villiers

MISA Benefit and Funeral Fund This is an important part of the benefits which we provide to the MISA members. The benefit is funded from the normal MISA membership subscriptions and no additional contributions are required. A certain portion of the membership subscriptions is allocated towards this fund to finance the benefits.

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his fund is subject to annual audits by a professional auditing firm, tabled at the annual general meetings of the members in the various Regions for consideration and approval and then submitted to the Registrar of Labour Relations. These are all requirements which need to be complied with in terms of the Labour Relations Act. Many employees in the retail motor sector think that they do not require a benefit like this as they are too young to think about that or they might be too young to die, they have enough provision for funeral cover in the unlikely event of the member or dependants passing away and some are just not giving it a second thought.

I want to share some statistics about this fund that have not been shared previously and are not well known. Since 1985 the benefits paid in respect of claims in total amounts to R 58 864 167! (Yes R58 million). The breakdown of the abovementioned amount in respect of the benefit categories is as follows:

Firstly, none of us are too young to die and it is therefore never too early to start thinking of this type of cover! Secondly, the question they need to answer is whether the provision they made ensures that the money is readily available to pay for the funeral when required or would the dependants have to look to family and/or friends or even their employer to provide payment, until such time that the estate is wound up and the payments and refunds can be made. Whenever a family member passes away it causes grief and enormous levels of anxiety and it certainly is no time then for the dependants to concern themselves with where and how they are going to access funds to cover the funeral costs. The MISA benefit is payable as soon as all the necessary and required documentation is supplied by the claimant. The benefit does not form part of the estate of the deceased and is paid directly to the undertaker, if the funeral is arranged by AVBOB, and the balance to the nominated beneficiary. If the family make use of another undertaker the benefit is paid to the beneficiary who then has to settle the account.

Principal members:

3786

Spouses:

1545

Children above the age of 14:

202

Children below the age of 14:

109

What are the benefits of this fund? •

Membership is automatic so members don’t have to concern themselves with obtaining funeral cover

•

No additional contributions are required to fund the benefit

•

Cover as from receipt of one weeks’ contributions

•

The benefit does not form part of the deceased members estate and is paid directly to the beneficiary

•

Make use of AVBOB as the undertaker and MISA guarantees payment of the funeral to the undertaker up to a maximum of R6000-00

•

No commission is paid to brokers and the fund is administered as part of the union administration reducing costs substantially

MISA legal representation

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ne of the most important reasons for joining a trade union is to ensure that as a member you have access to professional legal advice and support where and when appropriate.

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the overheads which are the seen to be the easiest to manage, although it may be very costly if done unfairly or for no real reason, is the employment costs.

In the overall picture not a lot of the MISA members are involved in any form of disciplinary hearings or unfair labour practices. However, the insurance is required similar to motor vehicle insurance. You might not need to claim for twenty years and then out of the blue you are involved in an accident, and not necessarily of your making!

Commission structures are continuously amended, pressure is put on employees to ensure more unit sales, obtaining more new customers, and customer satisfaction is the new flavour of the decade. Keep the customers happy! General Motors are even implying in their television ads on their “Red Tag Event” that it is required and acceptable to neglect your family, no matter the consequences, just to sell more motor vehicles.

With the current state of the retail motor sector it is inevitable that employers are looking at ways of reducing overheads. One of

There is nothing wrong with managing these issues as an employer. The problems are generated by how these issues are managed. July

2009

Misa The retail motor sector has always had problems at middle to senior management level as not a lot of focus is placed on developing people management and communication skills. The lack of these skills is normally what causes the problems in the workplace leading to disputes. The MISA members have access to a number of qualified and dedicated people who focus on labour relations in the retail motor sector. There are so many consultants and lawyers and even other trade unions selling their services to employees who have no idea of the content of the collective agreements or even the dispute resolution process in our sector. The MISA representatives have a very professional approach to addressing the labour relations problems on behalf of members. There are very specific principles which MISA adheres to which sets us apart from other trade unions. What don’t we do? •

MISA does NOT create problems between members and their employers

•

MISA does NOT create unrealistic expectations with our members

•

MISA does NOT only listen to only one side of the problem

•

MISA does NOT walk away from a member who has a valid case

•

MISA does NOT charge members additional costs for legal representation at whatever level

•

MISA does NOT retain any money from settlements reached or awards obtained on behalf of members to offset legal expenses

I would like to use the case against Madikor Drie (Pty) Ld as an example. In 2002 Henred Freuhauf (Pty) Ltd sold a portion of its

Minutes

business to Madikor as a going concern. There was a Manpower Reduction Policy in place as part of the employee’s letters of employment. When Madicor initiated retrenchments they did not want to pay the retrenchment packages in terms of the Manpower Reduction Policy. They thought that a mere consultation in this regard and unilateral implementation would suffice. MISA represented our members and warned the employer to adhere to the MISA members’ conditions of employment. The employer ignored the MISA argument and paid reduced retrenchment packages. MISA duly declared a dispute on behalf of the members and the legal process started. At all the legal forums where the case was heard MISA obtained the award in our favour and every time the employer would take the next step in the process. Eventually a full bench of the Labour Appeal Court ruled in favour of MISA and our members. The employer had to pay a capital amount of R 2 668 855 and interest of R 766 241 (a total of R 3 435 127) over and above the retrenchment packages paid at the outset on behalf of the 12 members. The added benefit to the MISA members is that they did not have to pay a single cent towards the legal expenses and none of the money is retained by MISA to offset any legal expenditure. Had MISA lost the case the same would have applied in terms of the legal costs. Not bad for a “small, useless, irritating, of no real consequence trade union” for which the employer and its legal representative were not scared of! I don’t want employers to be scared of MISA. I don’t expect employers to like MISA. I do know that they will respect MISA, the principles we subscribe to and the way we protect the interest of our members. Even though some of them will not admit to it!

The MISA members and legal team in the Madicor Drie (Pty) Ltd Labour Appeal Court case: Front row: J Rebelo, E Pearce, H Barker, B Lock (Attorney), M Keyter (National Legal Advisor). Second row: A da Costa, J dos Santos, T Cozen, J Thuysse, L Thuysse Third row: J Blignaut, M de Sousa, J Nortjie, C Beyers July

2009

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

Topical

On your bike, Otto!

Four major technology groups seem set to vie for the attention of motor vehicle producers and their customers, in the not too distant future. Broadly speaking, they are the charge-and-go electric battery platform, the charge-as-you-go hybrid platform, the hydrogen powered fuel cell platform and the mighty mouse micro engine which uses conventional petroleum based fuels in tiny engines with exponentially improved power and torque delivery characteristics. Vehicle technology available by 2015 or 2050 may be difficult to imagine right now, but it seems highly likely that one of these four technical design platforms will develop at the expense of the other three, probably within the next decade.

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ome of the possible technology groups overlap with the others. For instance, battery powered, hybrid and fuel cell cars would all rely on electric motors. Hybrid and mighty micro engine vehicles would both burn petroleum fuels, and so on. Hybrid vehicles, which use small conventional internal combustion engines to provide power and charge batteries, are already well established through the availability of two generations of Toyota Prius SUV’s. Various producers are currently falling over themselves to bring battery powered electric vehicles to the roads. Fuel cell powered vehicles, where hydrogen gas passes across a platinum grid, leaving electrons behind to be used to charge batteries and power motors, are already available, but have several hurdles to go before becoming truly practical. Mighty micro engines, which are small displacement turbo boosted petrol and diesel units, are nothing more than direct descendants of engines that have been around since the term Otto-Cycle was born. A number of global developments may appear to be aligning themselves to accelerate the take-up of new technologies in the automotive market place. Not the least of these must be the scare that the vehicle users, manufacturers and politicians alike were given during 2007 and 2008 by the seemingly unbridled rise in the price of oil. While that particular pressure point may well have been created by financial sector operators, who have largely but by no means completely slunk off to hide in the ruins of their formerly mighty institutions, it certainly acted as either a premature or timely warning of an event which is sure to come back more permanently at some time in the future.

Apart from global oil supply and demand considerations, there are mounting concerns regarding the polluted health of the planet. Green is the attitude of choice across almost all political parties, from the mightiest at the helm of the USA, to the

22

ANC alliance back home in South Africa. None of the four major technology groups sketched above features renewable energy, not even the hydrogen fuel of the fuel cell option, although it possibly comes the closest. While the world is full of hydrogen, most of it is attached very firmly to other elements, and will require energy to persuade it to part company from whatever it happens to be bonded to. Energy equals pollution, at least until the practical harnessing of renewable resources, or the solving of nuclear waste disposal puzzles.

Consumer tastes react to the strangest stimuli, defying both logic and prediction. Who could possibly have foreseen that an 80% increase in the petrol price between January and June 1970 would initiate the hatchback revolution in the South African car market? Combined, the Golf 1 and Mazda 323 of the time had struggled to collectively achieve 4% market share. By the first half of 1980, they were regularly achieving 42% between them. Why? Ostentatious consumption in an inverted dimension, and who says that it cannot happen again?

For some years, hybrid vehicles appeared to be on the front foot as the next automotive technology phase, but the oil price shock of 2008 heightened the level of criticism of even these gas-sippers, with the realisation that outside of heavy urban traffic conditions, they used nearly as much petrol as a reasonably economical conventional vehicle would on the open road. Enter then the mighty micro engine vehicle which is no scientific breakthrough, but simply a way of doing more with less, which was for years pure anathema to the worlds largest automotive market, that of the USA. But the current favoured son of the Internal Combustion Engine appears to be what had become a prodigal son when the first hybrids made their appearance, namely the rechargeable electric car. There are several that had either been (slightly prematurely) shown at the international motor shows of the past 12 months, with some breakthroughs in battery technology, for a long time a stumbling block of the vehicles, having clearly been achieved. Too bad about the pollution aspect, though, as one inevitably has to burn coal or oil in a nuclear shy electricity generating environment, to charge the beasts. But the technologists can invent their way to obscurity, whistling anthems of change through their exhaust manifolds, if consumers do not want to change their tastes.

Ken Ken 8 x 8 How to Play: Like Sudoku, even though difficulty may vary from puzzle to puzzle, the rules for playing KenKen are fairly simple: For a 8x8 puzzle, fill in with the numbers 1-8. • Do not repeat a number in any row or column. • The numbers in each heavily outlined set of squares, called cages, must combine (in any order) to produce the target number in the top corner of the cage using the mathematical operation indicated. • Cages with just one box should be filled in with the target number in the top corner. • A number can be repeated within a cage as long as it is not in the same row or column. Answer on page 76

July

2009

A series of articles on the rise of the Chery automobile

Keeping the Cost of Motoring Down – the Chery Way Times are tough for the motorist, and to add to this burden the cost of new vehicles has been going up relentlessly this past year. And motorists in the market for a new vehicle need to do their sums in more ways than one, because it is not just the initial purchase price that has to be taken into account when purchasing a new vehicle. It is the service costs and the price of crash parts that also need to be closely scrutinised, and availability of these parts will also become a major factor if your car is off the road and in need of repair.

Mike Dawson, After Sales Director of McCarthy Vehicle Imports

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t is these factors that exercise the minds of McCarthy Vehicle Imports executives when they consider the introduction of a new model, and they urge the consumer to do exactly as they do when looking for a car – do the homework! Mike Dawson, After Sales Director of McCarthy Vehicle Imports, says that the homework they do before introducing a car is a comprehensive market study on the cost comparison of the Chery vehicle to a similar vehicle in the market, involving a parts basket of at least 200 parts, comprising a mix of service and crash parts, and other replacement parts, and to sharpen the pencil to ensure that the Chery replacement prices are typically 30% or more below the competitive brands. Assistance from Chery in China, in the form of lower FOB prices, is sometime solicited to ensure that this promise is kept. The upshot of all this is that anyone buying a Chery vehicle not only gets a very reasonably priced vehicle, but they also get very good parts prices, comparatively assessed, and McCarthy Vehicle Imports goes even further by ensuring that the Chery service centres also charge industry beating labour rates, providing the Chery vehicle owner with an extremely competitive and attractive motoring cost package. The proof of the pudding is the latest Kinsey Report, which rates the Chery QQ3 0.8 as the cheapest vehicle to maintain in the Entry Level Category, when it comes to the basic service parts, comprising air filter, oil filter, fuel filter, spark plugs, wiper blades, front brake pads, and rear brake pads/shoes. The Chery QQ3 0.8 also comes out tops on the “major” service package, comprising front and rear shocks, fan belt, front brake disc, cam belt/timing chain, clutch kit, water pump, radiator, radiator cap, and thermostat. The Chery QQ# 0.8 also holds its own in the crash parts segment. The aforesaid confirms the promise made by McCarthy Vehicle This sign is prominently displayed at all Chery service outlets, specifying exactly Imports, that they will offer a comprehensive and afford- what you will be charged for the respective services – which confirms the transable package to the cash stressed motorist. parency of the process

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July

2009

health

care

MOTO Health Care In our May newsletter to all members, Murida Khan indicated in her message that the time to consider benefits and contributions for 2010 is upon us because there are a number of deadlines that have to be to met. The Board of Trustees depends heavily on MHC’s consultants in this process. In order to give members an insight into how this process unfolds, I invited Roseanne da Silva of Toth Resources CC, actuarial consultants to MHC, to tell how this happens. This is what she had to say:

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he Board of Moto HealthCare has the task of determining the benefits and contributions for the benefit options in 2010. This is a complex and difficult process as it requires the Board to balance offering a comprehensive level of benefits while also ensuring the contributions remain affordable.

tricky process in the current economic conditions. They will also need to consider whether any benefit changes are likely to cause members to change benefit options. All members will have the opportunity to select their benefit option at the beginning of 2010.

Once the budget and contribution rates have been determined they need to be submitted to the Registrar of Medical Schemes for approval. The deadline for this submission is the end of September. The staff at the Registrar’s office will scrutinize the assumptions made in drawing up the budget. They also focus on the impact of contribution increases on members and they will often request further information from the Board to justify their decisions.

The Board has already embarked upon the process of benefit review. This involves analysing the current utilisation levels and investigating any trends and variations from what was expected when the budget was prepared last year. The Board considers whether categories of benefits should be enhanced or reduced and even whether new benefit options should be introduced. During this process the Board relies on actuarial analysis of claims data as well as feedback received from members and the Scheme’s staff and the administrators who are regularly interacting with members. One of the particular challenges is addressing new medical technology. New technology can mean, for example, that surgical procedures can be performed quicker or that medication has fewer side effects. But these medical advances are usually associated with higher costs and the Board has to consider carefully whether the additional cost is justified. This is very important since ultimately all the costs covered by the Scheme are funded from the members’ contributions and so additional costs for new technology may lead to contribution increases. Once the Board has drafted a set of benefits for 2010, a budget for the costs needs to be calculated. This is done with the assistance of the actuarial consultants to the Scheme. They will estimate the utilisation levels per benefit category and benefit option in 2010. They will also estimate the likely increase in the cost of medical services for next year. This can be quite a

26

is affordable for members but they also need to ensure that the Fund is responsibly managed and that it will remain solvent in the long-term. If the Board feels that the levels of required contribution increases are too high, they will revisit the proposed benefit levels and even consider restructuring some of the benefits.

Barry Canning, Chairman Board of Trustees - MOTO Health Care

There are also administrative costs for the Scheme that need to be included in the budget. Combining all of these factors, the actuaries will recommend a budget for costs to the Board. The Board will then need to consider how to fund these costs. They need to determine a contribution level that

Once the Registrar of Medical Schemes is satisfied that the contribution increases are reasonable, the Scheme may embark on communicating the benefits and contributions for 2010 to the members. This process is expected to start in November and members will be given the opportunity to select their benefit option for 2010. Since not all members will respond to communications sent out by the Board, the Board will also determine a default basis for members who do not indicate their benefit option choice. This usually means that they remain on the same option as they were on in 2009. Even if you are going to stay in the same option it is important to let the Scheme know that this is what you want to do. The budget process is particularly challenging for the Board as it involves balancing a large number of factors to ensure that the interests of all the members are taken into account so that Moto Healthcare can continue to offer an affordable and comprehensive range of benefit options in a financially sound manner.”

July

2009

Customer

C.A.R.E

Customer Relationship Management

– it’s all science really 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 9 years.

An important aspect of CRM is that you make an effort to interact with your existing customers. Why? Simply, because of our nature, we are unwilling to change. We tend to stick to what we know rather than try the unknown. You do get the exceptions of course, the pioneering spirits among us, the people that just love trying something new every now and then. But these people are rare. We find that this behavior of “sticking to what I know” for items and services of all levels to be far more common. We are ceatures of habit after all. There is a law in science that describes this behaviour very well; it is called Newton’s First Law of Motion. What is says is the following: “Every object persists in its state of rest or uniform motion in a straight line unless it is compelled to change that state by forces impressed on it.”

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lthough this might sound terribly scientific it makes my point very well. There are some interesting things that we can derive from this; firstly, things tend to stay as they are, unless an external force acts upon them. A force in CRM speak could be a bad customer experience, a complaint that is not properly addressed or a friend that is really happy about a product or experience and keeps on talking about it. All this can be seen as forces that can mobilise consumers to try that something else. Conversely, if a consumer likes using a product, it is possible that you can get them to try new products from the same brand, like Nivea, which started with products for women exclusively but are now also promoting products for men. If women were happy to use these products for themselves, it becomes quite easy to convince them to buy it for the men in their lives.

customer thinks of your product or service. Remember, it is all about their experience, not if you are right or wrong. d. Excellent recovery strategies. When you discover that something went wrong, make an effort to win back the heart of your customer. It is worth it! 2. If you are losing market share, you are doing a lousy job. Think about it: your customer already uses your product which means: a. They already know your product. You do not have to educate them and you do not have to convince them - at most you have to re-assure them. b. They already use your product – i.e. – they already know the benefits and they are comfortable with the brand. c. They already accept the price as they are buying it currently.

Two things to be learned from this: 1. If your customer complains, pay attention. Fix what’s wrong – you do not want to disturb the equilibrium! The last thing you want is to create a ‘force’ that could upset the comfortable relationship the customer has with you. Mechanisms that can be applied are the following: a. Excellent customer care processes. This may include the use of a Call Centre (one that works as intended!). b. Quality control of your product or service to prevent bad products reaching your customer. c. CSI or customer satisfaction measurement to find out what your

d. They might already tell their friends about it and therefore promoting your product for free! The best example can think of in terms of this principle is my wife. She has a MINI Cooper S and she simply loves her car and promotes it at every opportunity that presents itself. It is now three years down the line and I think it is time for something else. Despite my best efforts, she is only interested in either keeping the MINI (yes, the Motorplan has been extended already) or a get new MINI. My efforts to get her to try other brands are met with substantial resistance – Newton’s First Law of Motion in action again!

www.t-r-m.co.za T 0861 TRM TRM F 086 686 8382

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July

2009

Customer

Trilogy Customer

C.A.R.E

C.A.R.E. Programme

– sponsored by Federal-Mogul

MODULE TWO - THE ROOT CAUSE OF BAD CUSTOMER C.A.R.E.

I

n Module One we discussed the problem of poor customer service in South Africa. In particular, the surly, slow, uncooperative and unproductive staff behind the counters, telephones, etc. We also looked at the basic essence of CUSTOMER C.A.R.E., which is the emotional and intellectual understanding that C.A.R.E. means CUSTOMERS ARE REALLY EVERYTHING.We now need to look at the root cause of bad customer service - management! Management always claims that the poor customer service their company delivers is because of the poor quality of staff with whom they are forced to contend, and the reasons they put forward for this situation are varied, but the main culprits, the hardy annuals that always crop up, are the culture thing, or the education standards, or the poor socio-economic environment. Yes, these are problems, but I still contend that the root cause of poor customer service is management. To verify this statement, just look at history, which in hindsight is an uncannily accurate measurement. In one word, we are talking LEADERSHIP.

Management should not only manage, but they should also lead. This applies to any situation where there are leaders, and where there are followers. As surely as night

30

follows day, followers tend to follow the lead of their leaders. Take nations, as a clear example. The history of nations is littered with either good or bad results, depending on the behaviour of their leaders; and the followers behaved accordingly, by watching what their leaders did, or watching what their leaders did not do. Nazi Germany is a perfect example of how the followers, who were an educated and cultured people, were led into insanity by a small clique of immoral and decadent thugs. The old South Africa became a blind and bizarre society through the acts of commission by its leaders, and the new South Africa has become a corrupt and criminal society through the acts of omission by its leaders. This happens because the mass of followers, lemming like, watch how their leaders behave, and follow suit. Individualism, unfortunately, is still a rare trait amongst the animal kingdom, over which the human race has divine domain, but still manages to mimic in comic proportions. This applies to all human endeavours, be it sport, religion, business, or the PTA of your local school. All the nations of the world, all the religions of the world, all the sport teams in the world, all the businesses of the world, have peaks and troughs,

depending on the behaviour of their leaders. Customer c.a.r.e. is exactly the same. The customer service levels of your company are in direct proportion to the sincerity of management when it implements customer care strategies.

SPECIFICS Now that we have got the philosophical discourse out of the way, let us start looking at specifics. To do this, we need to understand the SECOND TRILOGY TRUTH ( the first Trilogy Truth is rather esoteric, and therefore will be discussed at a later stage, when you are a little more steeped in the lore of customer c.a.r.e. ). The SECOND TRILOGY TRUTH states that there are three very important steps to achieving superb CUSTOMER C.A.R.E., and that these three steps are indispensable. The first step is a commitment to yourself, the second step is a commitment to your company, and the third step is a commitment to your customer - in that order. There are no short cuts in this process you cannot be committed to your customer if you are not committed to your company, and you cannot be committed to your company if you are not committed to yourself. continued on p32

July

2009

Customer

C.A.R.E

The three simple questions, ARE YOU COMMITTED?

YES

NO

1. COMMITMENT TO YOURSELF 2. COMMITMENT TO YOUR COMPANY

You have one month to think about this. I want you to analyse these three questions, with sincerity and deep thought. Meditate on these issues, shut yourself away for an hour or two and clear your mind of all its clutter, and think clearly and logically and objectively, as to whether you are truly committed in these three areas. Then tick the three boxes, with either a yes or no.

3. COMMITMENT TO YOUR CUSTOMER We shall analyse your answers in the next module. DISCUSSION POINTS 1. What is the essential difference between MANAGEMENT and LEADERSHIP? 2. Give an example of an act of commission.

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3. Give an example of an act of omission.

5. Can you fake sincerity? 6. How do you measure sincerity?

4. Discuss the advantages and disadvantages of individualism.

July

2009

18 Months Warranty

managing

by Séan Jackson

the

Risks

It’s been said a million times before that when the going gets tough, the tough get going. This cliché takes on a new resonance when describing the truck industry. Times may be tough, but trucks are tougher, and truckers are the toughest. This industry is literally the wheels of the economy, so thank goodness that when the going gets tough, the toughest get going. A critical element in this dynamic is the ability to keep costs down, and to ensure that operating costs are kept under tight control. The first port of call in this endeavour is to protect against theft and misuse. The first port of call in this endeavour is to protect against theft and misuse. A close second is thinking smart and keeping costs down. ABR has commissioned Séan Jackson of TRUCKTEK to give our readers a series of tips on Managing the Risks.

Under Pressure Séan Jackson is a music buff, so it was not difficult for him to pick some music for the article this month on tyre monitoring systems. “Under Pressure” was his immediate response when asked the question, and whether you are a David Bowie fan or a Queen fan, you’ll agree that Séan’s choice is most appropriate , because if you are running a fleet of vehicles, you will understand the importance of the tyres being under pressure, and if this vital aspect of fleet management is not given the management it deserves, then the fleet manager and the bottom line soon come under pressure.

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n this article Séan Jackson returns to his favourite theme when discussing the management of risks – it all starts with the driver! Look after the driver, and your costs will come down; it is as simple as that. This applies to every single risk issue which we have discussed; fuel losses, material losses, the role shock absorbers play in extending the value on your fleet, and safety, of course.

We have a few more aspects to discuss, but in this month’s issue it is the turn of tyres, and the need to look after them bearing in mind the job they do, the big loads that are being carried, and the paramount importance of optimum tyre pressures. Séan does not want to labour the point, but he is emphatic that fleet managers need to understand the risks inherent in the event of a tyre bursting, and of the significant effect on balance when a truck loses a wheel – something a fatigued driver may not notice. This is why a tyre monitoring system is so important, and why it is compulsory in America, and that legislation is being promulgated in Europe, and naturally, and hopefully, this will soon follow in South Africa. Safety is a big issue here, particularly for buses, and the many lives at stake at one time. And you need to give the driver the necessary tools for early detection of tyre problems.

ACTSENSOR IT! • Advanced Tyre Pressure Monitoring • Prevents Accidents • Unique Key • Easy to Install • Totally Wireless • Alarm Response • Suitable for Cars, Trucks and Buses TRUCKTEK has chosen Actsensor-It!, an advanced tyre pressure monitoring system, known worldwide as TPMS, that supplies constant information to the driver of any vehicle on all the operating tyres, whether four or thirty two. This is a global system with South African adaptations, and which is perfectly suitable for our unique conditions. The beauty of this system is that it recognises that the driver is the first line of defence, but it can also be linked into a control centre, and can be incorporated into any fleet management system. The driver is kept aware of all the tyre pressures of the vehicle via a dash mounted monitor, or a rear view mirror clip on version, and is warned visually and aurally when a tyre pressure variance of 15% is detected. Next month, Séan shall discuss this subject in more detail, focusing on the dynamics around tyre monitoring.

34

July

2009

weighty

by Frank Beeton

issues

The Rapidly Disappearing Truck Market

Back in the April issue, we asked where the truck market was heading. Our concern, at that time, was centred on a survey that had been carried out by Focus on Transport & Logistics magazine among the management of truck suppliers at the end of 2008. The consensus forecast for vehicles over 3,5 tons Gross Vehicle Mass (i.e, Medium, Heavy and Extra-Heavy Commercials, and Passenger Buses) came in at just less than 28 500 units, suggesting a year-on-year decline of nearly 18%. Given that the then Finance Minister Trevor Manuel, in his Budget speech, had given assurances that the government’s R787 billion infrastructure development plan, including R50,9 billion earmarked for specific transport-related expenditure, would still roll out, we thought that the supply industry was taking an overly-conservative view, and was in danger of forecasting itself out of business.

H

ow wrong we were! To be fair, it took some time for market analysts and forecasters to fully appreciate just how difficult the financing environment for commercial vehicle sales had become. We assumed that the National Credit Act had settled down, and that the prospect of steadily falling interest rates would create a positive arena for the financing of vehicle purchases. It was only when MAN CEO Thomas Hemmerich went public with his frustration that we finally caught on, and the supporting anecdotal evidence then started to pile up. As it turned out, the market results for the first quarter were considerably worse than anticipated by the captains of industry, and, five months into the year we find the market no less than 47,3% off the volume reported for the equivalent fivemonth period in 2008. Unless things improve radically, and fairly soon, reaching a final market total for the year of only 20 000 units could become a major challenge. It is difficult to believe that the current market reflects the true level of demand for new vehicles coming from the local transport industry, and frequent tales of a less than 20% success rate with applications for credit by transport operators tend to bear this out. We must also assume that the local supply industry would have initially procured inventory at a level to support its own 28 500 unit forecast, so product availability, at least in the first quarter of the year, should not have been a seriously limiting factor. The fact that a very large num-

36

ber of new trucks, buses and vans had entered the South African vehicle parc during the boom market years from 2006 to 2008 has given operators the option of extending the lives of their existing vehicles under the currently very difficult financing scenario. There is also the possibility that some operators have chosen to defer their fleet replacement and expansion plans until the global and local economic environments improve, but the magnitude of the downturn in the market has become extremely difficult to rationalise. One of the few potential bright spots in the market has also recently been dealt a severe blow. Several metropolitan Bus Rapid Transit projects were starting to take shape early in the year, with Johannesburg placing orders on Scania for 143 BRT units, while the Department of Transport booking spaces for 570 buses and coaches on the Mercedes-Benz and MAN production lines. However, the presumably well-intentioned efforts of President Jacob Zuma to defuse potential taxi protest action threatening the General Election by effectively putting BRT implementation “on hold”, has thrown a mantle of doubt over the entire process. Meanwhile, back in the marketplace, some new factors have recently emerged. Evidence of sales incentivisation in truck advertising, has reinforced the view that stock availability is not a major limiting factor. More importantly, certain vehicle suppliers have begun aggressively promoting the availability of in-house credit facilities, in a clear response to the difficult financing environment. It is highly

unlikely that this initiative would have been unilaterally underwritten by the local banking fraternity, given their current lack of risk appetite, so it presumably involves some element of risk acceptance by the vehicle suppliers. In May, the market profile showed a swing back in favour of the premium XHCV segment, following the bloodbath in this category earlier in the year, and this suggests that these alternative credit arrangements are having an effect. It is interesting to reflect on the fact that several vehicle suppliers have long-running joint ventures with local banks to provide financing facilities at sales outlets. However, it now appears that, once the going got tough, these JV’s virtually removed themselves from contention. While acknowledging that there are risks in extending credit to some truck operators, the finance companies, presumably, have been in the business long enough now to recognise a well-managed and viable operation when they see one. It is difficult to believe that 80% of South African operators have suddenly become unacceptable risks! However, the unavoidable consequences of an extended period of depressed vehicle sales will include the degradation of operator efficiency, and consequent viability, and the exertion of considerable pressure on truck manufacturers, importers, dealers and suppliers. When these players inevitably reduce their level of exposure to the downturn, the supporting infrastructure that has been painstakingly built up over the recent period of market strength, will start to break down. July

2009

Imperial Auto Parts & Mikar would like to congratulate Martin Grobler on winning a Honda ATV, sponsored by GUD Filters. Martin entered the competition at Mikar Hursthill in Johannesburg.

Hennie Noortman from Mikar Hursthill handing over the keys to Martin

Another happy Mikar customer

July

2009

37

Tony’s

by Tony Twine

take

Economic recovery or Alphabet Soup?

More than one general economic commentator and almost every motor sector supply side participant have expressed their disappointment in the performance of new vehicle sales during May 2009. The dismal performance of April had largely been written off to a combination of both the state of the economic cycle and a host of special random impacts, such as the number of public holidays, the way that they were distributed to form potential pockets of extended autumn vacations by joining the holiday dots with a few days extra leave, uncertainty around the election and the new leadership that it was bound to bring and a general lack of both consumer and business confidence regarding short term economic prospects.

I

n new vehicle show rooms, May evidently started off far more briskly than other recent early monthly periods but momentum fizzled out around mid-month and struggled upwards to its month end rate with some difficulty. In the end, NAAMSA passenger car sales were up a relatively small 9.5% over the woeful levels of April, which meant that a substantial number of sales which may have been expected simply failed to occur. Released early in June, the NAAMSA vehicle sales data for May was accompanied by two equally up to date statistics for that month in the form of the Kagiso-BER purchasing managers index (PMI) and the First National Bank House Price Index. The PMI almost completely mirroring the level of car sales in the month had ticked up from a level of around 36 basis points to 37 basis points, which was scarcely a startling improvement. The FNB house price index showed an annual nominal (unadjusted for inflation) decrease of 11% for May. This was slightly down on Aprils result.

38

These two indicators, alongside the vehicle sales results from NAAMSA, provide some perspective regarding both business and consumer confidence. The PMI, which effectively moved sideways, probably reflects the inertia in business confidence, despite the additional 100 basis point cut in interest rates during the month of May, bringing about a total so far of 450 basis points since December, and restoring the prime overdraft rate to a level only 50 basis points higher than it was at the low point of the previous interest rate downturn (10.5% at the beginning of June 2006). Impacting on business confidence is probably the knowledge that the rest of the world is in even deeper trouble than the South African Economy is, meaning that exporters, and in turn, the people who sell domestically to South African Exporters, continue to face unenviable sales prospects. With over 25% of South Africa’s GDP exposed to exports, the cascade effect of troublesome foreign sales environments quickly spreads through the rest of the business sector. Households continue to be

confronted by the historically high levels of debt, and debt to disposable income ratios that were accumulated during the 2003 – 2006 boom, and which remain far from being paid off. As the chart shows, debt to disposable income ratios are currently still almost half as high again as they were at the beginning of the last upturn in 2003. If that is the average for the household sector, and with lots of households unable to borrow from banks at all, it is easy to imagine what kind of ratio levels the more adventurous borrowers of the past five years (yea, verily, those who buy motorcars included) may be confronting. It could take months or years for the more tattered household balance sheets to be restored to the level of respectability that lubricates the wheels of bank loans. This is even more true in an unusual environment in which asset prices, especially house prices, have fallen continuously for more than a year. Which is cause, and which is effect? Like those who relied on the oracle of Delphi, we could tip out the box of scrabble tiles in the hope of gaining insight into the economic recovery. May tends to indicate that a V-shaped recovery is not going to happen. There might have been a recent relatively sharp recovery in items like commodity and equity prices, and the foreign exchange value of the Rand, but international market watchers are warning of a possible W-shaped phenomenon, with the recent up-tick in these prices forming the upward sloping middle part of the diagram. This writer suspects that we are currently at the beginning of the flat portion of a U-shaped recovery pattern, and that we could drag along the bottom for most of the rest of 2009. If you prefer a greener gardening metaphor, we might see some green shoots as early as the third quarter of 2009, but be careful how you set your lawnmower! July

2009

Update

Spirex – A Comprehensive Service Offering Hundreds of years ago, mobility was a privilege, rather than a right. You either used a horse, or used your own legs to get from A to B, unless you were press ganged into the army or navy, and then you did get around, but at quite a high risk, and you did not choose where you were going. This limited your options, and it was only the wealthy or the fit who managed to see the world beyond their limited confines. The steam engine and the railways improved things somewhat, but it was only after Henry Ford brought personal mobility to the masses some one hundred years ago, that mobility took off, and then it was still only really limited to the gainfully employed and the adventurous.

I

t was World War II that provided the impetus to personal mobility, and it became a God given right, and owning a motor car was no longer a sign of wealth, as it became easily accessible to the common man. Even then, many motorists had to service their own vehicles, because proper maintenance was often out of the reach of the cash strapped motorist. Since the seventies, DIY has declined, due to a more well heeled population, and the propensity of the modern generation to eschew the manual labour associated with vehicle maintenance, and the proliferation of workshops and mobile mechanics offering good and reasonably priced service. However, with the recent global downturn, and the pressing need to look after cash flows, the DIY market is reviving, and the younger generation is finding that maintaining your own vehicle is not so infra dig. The problem herein lies in locating the correct parts at good prices, and the need for a helping hand in “how to” when replacing, installing or simply maintaining your car. This is where AutoZone has stepped up to the plate, and their service offering around their in-house Spirex range of maintenance parts. The Spirex range offers quality parts for the cost conscious DIY and workshop customer, allowing for the service and maintenance of vehicles at discounted prices, whilst still fulfilling the primary need for peace of mind.

• • • • • • • • • • • • • • • • • • • • • •

Vehicle Maintenance Guide Maintaining the Cooling System Maintaining the Wiper Blades Installing the Spark Plugs Replacing Ball Joints and Tie Rod Ends Replacing the Battery Replacing the Disc Brakes Replacing the Brake Drums Replacing the Brake Pads Replacing the Brake Shoes Replacing the Clutch Kit Replacing the CV Joints Replacing the Fan Belt Replacing the Filters Replacing the Fuel Pump Replacing the Gaskets Replacing the Globes Replacing the Oil Replacing the Thermostat Replacing the Wheel Bearings Replacing Universal Joints Replacing Worn Shocks

A further safety net is the 7 day a week, 7am to 7pm technical hot line at 0800 200 993 whereby anyone with a problem can get free expert fitment advice from the AutoZone pit crew. And for those with access to the web, the DIY books, store locators, weekly specials, and much more is available at www.autozone.co.za

The Spirex range, consisting mainly of chemicals, lubricants and service parts, is backed up by the other in-house brands, like AutoKraft, AmPro, EcoTech and Femo, to give the cost conscious customer everything they need to keep their car well maintained and roadworthy, without breaking the bank. These parts are available from the 170 AutoZone stores located right round South Africa, and available at these stores are 22 DIY leaflets, offering hints and tips on the following:

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July

2009

AIDC Automotive Industry Conference 2009

High-level panel to debate critical industry survival issues eTV News anchor Jeremy Maggs will facilitate a panel discussion on the first day of the AIDC's Automotive Industry Conference 2009, which will be hosted at the SA Automotive Week in Port Elizabeth on 7-8 October 2009.

T

he first panel discussion will be in the form of a high level debate about Vision 2020 – is it a fantasy or reality? Panel members include key figures in the automotive industry, Dave Powels (NAAMSA President and VWSA MD), Brand Pretorius (McCarthy Holdings CEO), Steve Koch (GMSA President & CE) and Charlie Eggerding (VP, QAD Software). The panel discussion will be followed by a session where delegates can address questions to the panel.

Barlow Manilal, Managing Director of the AIDC, told ABR that additional value is on offer to delegates at the Automotive Industry Conference 2009 as part of South African Automotive Week, which includes the only NAACAM endorsed International Trade Show in South Africa. The Trade Show is focused on Component Manufacturing, is for trade only and attracts buyers and suppliers from throughout South Africa and around the globe. Site tours to the Coega IDZ, an OEM and Fifa 2010 Soccer World Cup Stadium are among key networking opportunities, which also include golf and the famous Gala Networking Dinner on Port Elizabeth's blue flag beach attended by the who's who of the automotive sector.

A second panel discussion will ask the provocative question: Does the SA automotive industry deserve a bailout? Dr Matthews Phosa, ANC Treasurer, Trade and Industry Barlow says, “The global Minister Maria Ntuli, Coega financial crisis is exactly that: Development Corporation global. It means that the South CEO Pepi Silinga and Africa economy is feeling the NUMSA National Secretary pinch and the automotive Irvin Jim have been invited to industry is equally affected by participate in this discussion. the global downturn. It is This panel discussion will be hurting both domestic sales also be followed by an interacand our export efforts. But, tive Q&A session. The instead of sliding into a state keynote address will be delivof depression over the negaered by Dave Powels and deletives influences now is the gates will also be hearing Attendees will be able to rub shoulders with leading lights across the time to work at improving about a rescue plan for the the fundamentals that will automotive sector from Kevin spectrum, among them, clockwise from top right: Dr Matthews Phosa, ANC Treasurer; Steve Koch, GMSA President & CE; Brand Pretorius, ensure a sustainable automoO’Marah, Chief Strategy McCarthy Holdings CEO; Barlow Manilal, Managing Director of the tive industry in South Africa Officer from AMR Research, AIDC; Dave Powels, NAAMSA President and VWSA MD in the long-term”. USA. Dr Neal Bruton, Response Group Trendline’s CEO, will discuss the status of eco"The AIDC Automotive Industry Conference will address an nomic drivers for new passenger cars. Barlow Manilal, CEO of industry in crisis. Industry role-players are seeing this as a platthe AIDC, says that the theme of the conference is "NAVIGATform to ensure that the industry is equipped with the credible ING THE STORM: A ROADMAP TO VISION 2020." The information, resources, direction and sentiment that will allow first day of the conference takes the form of a plenary session with automotive businesses to make the right strategic decisions for plenty of opportunity for discussion and debate. The second day their businesses," says Lance Schultz, Project Manager at the sees delegates focus on specific areas of interest: Supply Chain AIDC. Diarise the dates now! Conference fees for the two day Development, Supplier Development and Skills Development conference are R4,069 excluding VAT per delegate. The early bird & Training. conference fee presents a saving of over 15% if registration is completed by 31 July 2009. Early bird fees are R3,176.00 excluding Minister of Education, Dr Blade Mzimande, has been invited to VAT. To register, visit the address delegates on the second day before they split into the focus areas. Topics range from practical guides to managing supFor more information about opportunities at ply chains for South Africa, to cost saving case studies, innovation SA Automotive Week please contact Alastair Stead at and the impact of attracting investment to the SA automotive [email protected] call him on 041 363 0310 or visit industry on the skills crisis. www.saaw.co.za. July

2009

43

Personal

profile

Q&A by Roger McCleery

INTERVIEW WITH STANLEY ANDERSON South Africa has produced a host of top motor men who have taken their companies from way down the list to become leaders in the industry. Here is another such man. Stanley Anderson, the 44 year old Marketing Director of Hyundai in South Africa. He has been the Marketing Manager and then Director of the Company since Associated Motor Holdings Group and their newly appointed MD, Alan Ross, took over Hyundai. That was after Billy Rautenbach departed the scene leaving quite a few problems that had to be solved quickly for the sake of the brand and its many customers. You have seen the corporate and product TV ads for Hyundai produced with a certain amount of humour and passion for the brand. Stanley Anderson has been the man behind these. With the retail adverts showing their range and prices, plus the list of dealers, this also did the trick for them over the years. Even today in these tough times for the motor industry in South Africa, Hyundai advertising stands out. Q: What got you into Hyundai? A: I was head-hunted by Hyundai ten years ago when Alan Ross took over as the new MD. Q: What turned Hyundai around for you guys? A: We adopted Hyundai’s quality way of doing everything. Quality products, which Hyundai has proved over the years and a quality way to look after customers with service. Training and parts supply became a big part of our business.

Q: Has Hyundai Motor Company in Korea acknowledged your successes?

personality and then made the decision to go into Marketing. Q: Sport?

A: Besides Hyundai expecting them, we have been awarded many distributor awards over the years. The highlight was being awarded “Global Distributor of the year” in 2005.

A: I played rugby at school and also got my Provincial Colours for cricket and swimming. These days I still play hockey for Tukkies in a Sunday league to keep fit.

Q: What experience did you have before you joined Hyundai?

Q: Who made an impression in your life?

A: I was working at Mercedes Benz in Pretoria with that other great South African motor man, Christof Kopke, who was the MD. I had been there for 14 years and was pretty settled as a Product Manager.

A: I had a solid upbringing with my family. My coach at school, Bokkie Blignaut, instilled in me the importance of team work, discipline and an ability to “vasbyt’. This has stood me in good stead in business as well, particularly today.

Q: Before that?

Q: When you retire?

A: I was working for WesBank Corporate in Pretoria after getting my B.Com. Business Economics Degree at Tukkies.

A: I would like to lecture to Marketing students at UNISA.

Q: Where did you grow up?

Q: Would you like to work overseas if asked?

Q: Range of vehicles? A The range has got better and better. Cars and our commercials were just right for the times at the right prices. Now we even have 39 seat luxury coaches thanks to our involvement in the World Cup, where Hyundai is a main sponsor.

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A: In the North West Province starting in Groot Marico, for the first 7 years: we then moved to Richards Bay and at the age of 14 we moved to Rustenburg where I matriculated.

A: No – I would like to work here in South Africa. Q: Married?

Q: How are you going in today’s depressed motor market?

A: I went to Bergsig Hoërskool in Rustenburg.

A: To Anthea. I also have three children. Keegan wants to be an Architect, Zanco wants to design computer games and our youngest, Shannon, wants to get into Marketing.

A: Although unit sales are down, we have been able to gain market share, which is one of the best ways to measure success.

Q: What did you want to be at school?

Q: Your ambition?

A: A CA, but I soon realised I had a

A: Hopefully to run Hyundai one day.

Q: Schooling?

July

2009

by Marcus Haw

Tyres

and Their Contribution to Safety in Motoring

“In the next issue we will look at as many operational problems and tyre remedies as we can, and we’ll get into some cost saving as well”. This was the promise we made at the end of last month’s issue. Previously we have gone through tyre cost cutting, and the importance of keeping tyre records. Building and keeping histories of tyre performance and failures in fleets are the most effective way of making correct decisions, and thereby keeping costs low. This applies to all fleets no matter what they consist of vehicle wise, what tyres are being used and what routes and loads they are involved with. We will now go through specific problems and remedies experienced over the years focussing on the 4 to 10 ton group of vehicles as in last issue. Looking at specifics we will go through each operation type and the particular challenges they face.

Furniture hauliers There are two main categories here; domestic and office furniture carriers. The similarities in the two businesses are that they are mainly volume carriers, not heavy loads. Their main routes are mostly inter city and include a lot of stop start driving, with highway sections of under seventy kilometres. Most common operational problem: Loads are either one way full and empty return, or a constantly diminishing load also with empty returns. Most common results of operational problems on tyres: Susceptibility to impact damage and irregular wear. This is due to the tyres building heat during the loaded part of the trip which increases the inflation pressures. They then run in an OVER inflated condition on the empty return trip. Remedy: Run the tyres at the lowest practical pressure and reduce speeds while loaded. The SABS 1550 Standards directory will assist in using the correct pressures.

Long distance parcel service Trucks in this category are used in 24 hr long distance express parcel type work. This includes constant high speed driving short stops and heavy loads.

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Most common operational problem: Non stop driving, high speeds and heavy loads. Most common results of operational problems on tyres: General high wear rate, often irregular wear and usually early tyre failure. This is due to the fact that these vehicles seldom get checked, especially the tyres and very often the wheel alignment and suspension components as well. On top of this these vehicles are driven very hard due to delivery time constraints. They are possibly the most conscientiously abused vehicles in the transport industry. Remedy: Remedying these concerns is simply to maintain the vehicle more regularly, and slow the drivers down. This is sometimes difficult as these companies make their money by getting the goods from one door to another in the shortest possible time and it seems that delivery service is more important in this industry than tyre costs.

Supermarket type deliveries Included in this category is all food, refrigerated, pharmaceutical products, meat, milk etc. These operations are very similar, and deliver in the same areas. Loads are pretty close in weight too. Most common operational problem: Similar to the furniture guys the main problem is a constantly diminishing load, and/or one

July

2009

way full and the return trip empty. However these loads are heavier, often over the trucks weight limit. Also a lot of stop start driving, and the biggest problem is the fact that they have to get into all kinds of tight spaces to off-load. Most common results of operational problems on tyres: High wear rate, irregular wear and sidewall damage. Remedy: The wear rate is hard to correct and is a direct result of the stop start driving. Driver training and bonuses for good tyre life have proved effective though. The irregular wear is due to the empty one way trip and the answer is to reduce tyre pressures to as low as one safely can. Refer again to the SABS 1550. The damage to the sidewalls is the hardest to counter, since unless you can convince the shopping centre architects to improve the delivery areas tyres will get damaged. Driver training does produce results, but in all fairness there are some areas which the finest driver in the world could not get into without any damage. It is this kind of challenge which the alert fleet controller can use to show the bosses what he’s made of. This is where the choice of tyre can save a fortune. You can’t stop the damage, but you can save money by buying cheap. The trips are short, the speeds are low, so buy cheap and retread.

Construction vehicles In the construction industry, the trucks in the sizes we are discussing are used in many varied configurations. They are used to carry materials and light equipment in a dropside configuration. Water tanks are fitted and used to spread water to keep dust down and to carry water from site to site, as well as sorting fires out. Where necessary they carry explosives, tools, people, spares, rubble and aggregate. Because of their many uses, their tyre problems are also varied, but there are common factors for all vehicles at the site. Most common operational problems: Extremely harsh underfoot conditions; no roads, rocks, sand, mud, whatever is hidden in the mud etc. Loads are usa everything and tyre valves are prone to leaking from dirt ingress. Most common results of operational problems on tyres: General all round damage to tread and sidewalls. Low tread life, compromised casing life and premature failure. Remedy: Number one is to make sure the valves have steel valvecaps fitted at all times. We have seen a cost saving of 7% in the tyre budget of a construction company just by the conscientious use of steel valve caps. Secondly the correct inflation pressure will go a long way to making the tyres more resilient, and resistant to damage. At construction sites there is usually a workshop set up but it July

2009

is pretty minimal in equipment. It is essential that the compressor is capable of inflating all the tyre types in use and that the tyres are regularly checked and corrected. It is also wise to get expert opinion on the pressures to use. In many off-road situations slightly reduced pressures can be advantageous since the tyres are able to absorb the bumps, rocks and ruts better. However, these vehicles are usually very heavily loaded so it is necessary to be exact with the pressures. Apart from all the above, the construction industry is another one where buying cheap and retreading own casings is the way to go. We must emphasise here that when we say buy “cheap” we don’t mean buy rubbish. You still need to have a good strong product and you need backup on that product. What we mean is buy the best you can at the lowest price you can. Local tyres have a wide price range and to put premium tyres into high damage operations will give no advantage. Buying cheap and nasty, unknown imports though, could work out even more expensive, so buy with thought. In some of these situations crossply tyres offer a sound alternative. So consider your operation type and ensure your tyres and vehicles are in a safe condition at all times.

www.bridgestone.co.za 47

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 interrelated, 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.

The Importance of the Automotive Aftermarket OEM, OES, P&A, Aftermarket. These are all terms that are used liberally, and sometimes glibly, by automotive industry insiders, outsiders and commentators alike, but do we really know to what exactly these terms refer, and what precisely we are saying when we talk about these markets?

A

s a point of departure, Giel Steyn recommends that we go to the source to find out from the horse’s mouth how the OEM’s define these terms. Norman Lambrecht from NAAMSA (National Association of Automotive Manufacturers of South Africa) was kind enough to provide the following definitions: • Original equipment manufacturers (OEMs), comprising passenger car, commercial vehicle and bus manufacturing, as well as sales, primarily through dealerships.* • Original equipment suppliers (OESs), who manufacture and supply automotive parts and accessories directly to the OEMs for their service networks. In this way the parts receive the reliability associated with the brand of the vehicle, which is serviced for nine to ten years after production of the vehicle (CBI, 2004b:10). OESs require global coverage and need to provide “black box” solutions (solutions created by suppliers using their own technology to meet the performance and interface requirements set by the OEMs). • The independent aftermarket, which is responsible for the manufacture and sale of automotive replacement parts and accessories. The sales take place through independent retailers and repair shops directly to the consumer. The aftermarket also remanufactures, distributes, retails and installs motor vehicle parts and products, other than the original parts and accessories. • First, second and third tier component manufacturers who supply manufactured parts and accessories to OEMs, OESs and the independent aftermarket. The distinction between the different tiers of component suppliers is indicative of the component manufacturer’s role in the value chain. First tier suppliers (also known as subassemblers) are responsible for manufactur-

48

ing components that are supplied to the OEMs and the aftermarket. In some instances they design certain assemblies and assemble modules, such as entire dashboards from different components, and are then referred to as tier 0.5 suppliers. They require design and innovation capabilities, but compared with the OESs their global reach may be limited. Second and third tier suppliers provide parts for first tier suppliers and also OEMs, depending on the product. The third tier suppliers supply mostly basic products and generally only rudimentary engineering skills are required. Now that we have the official viewpoint, let us take a look at what Giel Steyn sees as the big mama; the Automotive Aftermarket. Giel views this aftermarket as having a huge influence on the industry, and mostly in an extremely positive light. He also segments this market into two distinct components: Aftermarket # One is the part of the aftermarket that is under the direct and indirect control of the OEMs. This is primarily the franchise dealerships, who sell vehicles, both new and used, fit specialised equipment to these vehicles under the auspices of the OEMs to maintain warranties, provide after sales service through their workshops and parts divisions, and the various financial, insurance and other add ons that are also sold to the customer. All of these activities contribute significantly to keeping the general population mobile, and ensuring that this mobility is as safe as possible. What really gets Giel’s juices flowing is what he defines as Aftermarket # Two. This is the massive component of the automotive aftermarket that is under the control of the independent operators, and the significance of their role in mobility and safety is according to Giel vastly underestimated and grossly underappreciated. To truly appreciate this we have to analyse the South African car parc, by age:

1 – 3 years

22%

4 – 7 years

22%

8 – 12 years

21%

13 – 20 years

28%

> 21 years

7%

Traditionally the first three years of a car’s life falls under the wing of the franchised dealers, either through warranty or service agreements, and new car customers also tend to have a stronger feeling of confidence and peace of mind by going back to where they bought the vehicle. From four years of age and beyond, the independent aftermarket tends to take over the maintenance responsibilities, although with the latest trend of manufacturers offering service plans to five years and beyond, this has moved the curve somewhat. Even taking this into account, one can see that at least 60% of the car parc is being looked after by the independents. And this is where the four significant factors of Technology, Quality, Safety and Value for Money begin to play a HUGE role! The Diamond Dialogues now take on a new meaning, and players in this aftermarket segment need to be scrutinised for their contribution to these four aspects. Grandmark International is one of these players, supplying quality product at reasonable prices, and ensuring that those with older cars continue to have the benefits of technology and safety, and further giving esteem to the industry.

* The

debate starts here. Dealerships are one of the grey areas. They are controlled through franchise agreements by the OEMs, but legally they fall under the terms and conditions of the Bargaining Council legislation. More on this in the next issue of ABR July

2009

The

Tipping

Point

A series of articles based on interviews with Klaus G. Langer, an independent supply chain consultant and self confessed environmentalist who proudly sees himself as a “Cultural Creative”, which is an influential group of new progressives who are disenchanted with materialism and hedonism, and who are at the forefront of prodding mankind to move from conventional to rational and responsible thinking, and to encourage participation in an ethical expansion, focusing on “balanced rather than negative reciprocity”

Klaus Langer

Eco-Friendly Vehicles

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he race is on for more environmentally friendly motor cars, driven by the need to arrest and reverse global warming, dwindling fuel resources, and the realisation by humanity that we simply cannot continue our wasteful ways. Klaus Langer predicts the end of the internal combustion engine within 15 years, and he anticipates completely new engines emerging in the next three to five years. The original equipment manufacturers are now engaged in a battle for survival, and in a very short space of time we are going to see whole new cars, designed from scratch, utilising significantly different power trains, and lightweight materials. Klaus sees this as an exciting era, with the industry responding proactively and positively to the challenges. The initial signs are promising, with examples of innovation already on the showroom floor, and electrifying (excuse the pun) developments around concept cars. The consumers are still behind the eight ball, but they will be forced to go with the flow, as small and eco-friendly vehicles become a statement of responsibility and maturity. All this will happen, sooner rather than later, because humanity has reached a tipping point, and whereas this point requires a total change of mindset, its time has truly arrived.

Meeting the Needs of the Consumer Mobility has become a right rather than a privilege, and the demand for greater mobility will continue. The automotive industry has for over a century provided this mobility, and will continue to meet this demand for another century and beyond. The big difference is that the industry’s love affair with big, powerful, fuel guzzling internal combustion engines is coming to an end, and the future is hybrids, electric cars, and ultimately fuel cell technology will become the Holy Grail. The good news is that these technologies will translate into economic growth, as the new generation of vehicles replace the current car parc. Currently, there are some 580 million not so eco-friendly vehicles moving people around the planet, and the estimate is that this will grow to around 1,3 billion vehicles by 2030 and an astonishing 2 billion vehicles by 2050. From an environmental point of view, these will be eco-friendly vehicles, and from an economic point of view

the future looks bright, as the industry responds to this enormous demand from the consumers. The replacement cycle has already begun, albeit very small at the moment, with Toyota leading the way with over a million Prius’ being sold to date. The Prius has become the Hoover of its age, and Toyota has upped the ante with a plug-in version to be introduced in 2010. The rest of the industry is playing catch-up, with all the manufacturers, from General Motors in America (in a new lean, mean post Chapter 11 guise) introducing the much hyped Volt, through to the rapidly expanding Chinese automotive industry making serious moves with Chery Automobile and BYD leading the way. BYD is a particularly fascinating company. Founded in 1995 by Wang Chuan-Fu, who is described by Berkshire Hathaway’s Charlie Munger as “a combination of Thomas Edison and Jack Welch”, BYD is the world’s largest manufacturer of cell phone batteries and is already selling a plug-in electric car (F3DM) with a backup petrol engine, which puts it ahead of Toyota and the rest. So much for catch-up. This has impressed Warren Buffet of Berkshire Hathaway to the extent that he has purchased 10% of this company, and would buy more if allowed to. More on this and much more in future Tipping Point articles.

The BYD F3DM at the recent Shanghai Motor Show

Industry

Update

Life Goes On By Austin Gamble

Following the Life Goes On article in the June 2009 issue of ABR, I was once again fortunate to attend a media briefing from a chief executive in the South African Automotive Industry, and once again I left the briefing in an upbeat mood, having progressed from “Baa Baa Black Sheep” to “I Could Have Danced All Night”, and eagerly awaiting the opportunity to do my Freddie Mercury impersonation as I belt out “Bohemian Rhapsody”.

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t was the briefing on 8th June 2009 by the recently appointed CEO of Mahindra South Africa, Ashok Thakur, that had me clearing my throat, and whilst I may have a weight problem, as far as the demise of the motor industry is concerned, the fat man is not about to sing. When we do sing, it will be about the resurgence of the automotive industry both globally and locally in the not too distant future. Mahindra definitely believes this, and they have promised an announcement within three months about the details of local assembly of the Mahindra, in both left hand and right hand versions, to service southern, western and central Africa, and who knows, even the American market if their AGOA calculations prove promising. Yes, Mahindra is planning to invade America at the end of 2009, as they feel the downturn in the States is an opportunity, with buying habits changing to more affordable, thrifty, rugged vehicles, and an alternative for which the American motorist is now receptive. Ashok Thakur disclosed that 300 dealerships will be established for the launch, and that significant volumes are expected. General Custer would be at his wits end! To back up these projections, Mahindra is investing over US$1 billion in a green field facility in Chakan, India, whilst also looking at local assembly where possible to take manufacturing to important markets, as there is over capacity worldwide, and the possibility of joint ventures that would previously be undreamed of is now on the cards. For example, Mahindra builds the Logan in India, and it utilises

52

The recently appointed CEO of Mahindra South Africa, Ashok Thakur, is optimistic about the future the facilities of Bavaria Auto Manufacturing Co. in Egypt to assemble the Scorpio, side by side with the BMWs assembled in the self same factory, on the self same lines. Could we soon be driving Scorpios assembled in Rosslyn, with the expatriate workers being exhorted to “Build Mahindras, Wolfgang!”? It is all a manifestation of the globalisation of the automotive industry and the blurring of competitive lines, as the industry struggles to cope with the new realities. Mahindra is obviously taking advantage of these reali-

ties, as it increases its global footprint in off-road vehicles, trucks, tractors and two wheelers. Mahindra is also eschewing the new age technologies, by sticking to the tried and tested when it comes to environmental initiatives. Ashok revealed that Mahindra has no immediate plans to develop hybrid and electrical vehicles, rather focusing on the bio fuel, CNG and stop-start expertise it has, and to meet emission standards with a current generation of engines that meet Euro V requirements. A pragmatic approach, which is the hallmark of Mahindra & Mahindra worldwide, and with a track record of note, Mahindra seems to succeed in whatever they do. Take tractors, for example. Mahindra has over 40% market share in India with their tractors, which are ideal for the smaller farmer. They are now looking for growth in South Africa, with four models soon to be homologated, and they displayed at the recent NAMPO show in Bothaville, and reported keen interest, particularly from the emerging farmers. In conclusion, it is clear from recent media functions that the attitude of the motor manufacturers is one of “Life Goes On”, and if the banks could now start to play ball from a financing point of view, we could expect a modest upswing sooner rather than later. It is time to put our troubles behind us, and to not allow the bearers of bad tidings to fulfil their prophecies. We must wrest the future away from these harbingers of doom, and to ride confidently into the night. Our gambit is one of confidence, and the game of chess does not allow the Knight to take the Queen without a fight. July

2009

From

the

Cockpit

Groenewald Shows his Class The Wesbank V8 Championship is South Africa’s premier motorsport formula, and Automotive Business Review brings you the action from the heart of the battle. Richard Pinard, part of the dynamic Timken duo, gives a track review from the cockpit of his 450kW V8 Jaguar. In this issue, we get a glimpse of the guts and glory in Rounds seven and eight at the high speed East London Grand Prix Circuit on Saturday, 6th June 2009. (keino@quickpic)

Hennie Groenewald shows the rest of the racers “who’s their daddy”

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ith Timken suffering a poor start to the 2009 season, it was a case of do or die for the team at East London, particularly for Hennie Groenewald, who if he was to have a decent chance of defending his championship title for a record 4th time in a row, would need to pull out all the stops. With the Timken duo languishing in 8th and 9th position after rounds five and six, something had to give, and the Timken Team was going to ensure that it was not them, with fastidious preparation at Zwartkops the week before, and bringing the Holden Commodore out of mothballs as back-up for the East London meet. This proved to be a wise move, with one of the Jags breaking a crankshaft during Friday’s practice.

During practice, the Timken top guns were blisteringly fast, with both the Jags and the Holden proving to be very quick, and Hennie recording the fastest lap time, and Richard close behind with the 3rd fastest lap. Unfortunately, Richard came a cropper at Potter’s Pass during practice, going off at 262 km/ph (telemetry tells the tale!), and this spin took a psychological toll. As Richard says, “When you hit the grass at this speed, and you lose all control of the vehicle, you are at the mercy of a car with a mind of its own. No matter what miracles you can achieve on the skid pan, and all the theories about under steer and over steer, at a time like this, with the weight of the car and the very high speed, you simply go into survival mode, and pray that you don’t hit anything solid. Funnily, the major concern that goes though your mind is not your physical danger, but the cost implications if the car is seriously damaged.” And the chances of damaging a car at South Africa’s fastest race circuit are high, with the V8’s hitting speeds of up to 290 km/ph at Rifle, and then braking down to 70 km/ph for the turn. This makes the East London track a great drive, but it does demand high concentration levels. Coming back to the psychological toll, Fridays’ spin did affect Richard, as he was a little too circumspect in qualifying, taking at least a second off his pace, and ending up at 8th on the grid. But the psychological aspect worked in Hennie Groenewald’s favour, as even though

54

there was practically nothing to choose between the Jags and the Holden when it came to lap times during practice, the different feel of the Holden gave Hennie an extra boost of confidence – in the racing game, they call it a “mind thing”. Thus Hennie took pole position, and the die was cast for his great fight back, and wins in both heats. Hennie led from start to finish in the first race, with the other racers made to look very ordinary as they followed in his wake, with Richard struggling with a car that kept jumping out of first gear, which meant a radical revision of his driving style for eight laps, something he likens to riding rodeo – the only difference is that in this rodeo he had 600 horses to contend with! But it was the second heat that proved the class of Hennie. Starting at the back of the grid (the inversion rule giving Clare Vale another gender bending pole position), Hennie worked his way past 12 drivers to take the chequered flag, but not before a great dice with 17 year old Brandon Auby on the penultimate lap. A case of experience and skill trumping youth and enthusiasm. Unfortunately, Richard Pinard’s woes continued. After moving up and toughening it out at 2nd position, he was bumped at Cocabana Corner, which caused wheel alignment problems, and then in the final lap he has another “coming together” before being T-boned at the self same corner, which meant a long walk back to the pits. Two final points. Richard Pinard pointed out that the East London circuit is under threat from developers who want to turn the track into a housing estate. He has appealed to the racing fraternity to stand up and be counted, and to ensure that this historical track does not go the way of so many other iconic venues. It should be remembered that the very first South African Grand Prix was held here in 1936, and Richard says he sees it as a privilege to race on this track. A privilege that is worth fighting for. Secondly, Richard also wishes to thank Timken for their support, and expresses his gratitude to the companies that provide the sponsorship to keep such a wonderful sport alive and vibrant. July

2009

Innovation

See What You Mean The Automotive Supplier Park in Rosslyn, north west of Pretoria, has been the venue for many interesting and cutting edge seminars and forums, and on the 4th June 2009 it was no exception when Dassault By Austin Gamble Systémes, in partnership with CDC, presented the CATIA PLM Forum 2009, to experience, learn, and collaborate around the latest updates on Dassault Systémes products and solutions, on their various platforms, including CATIA, DELMIA, ENOVIA, SIMULIA and 3DVIA.

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or the uninitiated, PLM stands for Product Lifecycle Management, and the purpose of the forum was to reemphasise how PLM can rapidly help companies save costs throughout product development and manufacturing processes. It enhances product innovation and style differentiation, reduces time to market, promotes eco-design and in these stressed economic times, it has the added benefit of saving money, from requirements management to product optimisation through simulation and supplier sourcing management, as well as the optimisation of multi-site collaboration for product and process definition and reduction of manufacturing downtime.

Laurent Couillard, Vice President Value Selling Europe for Dassault Systémes

Laurent Couillard, Vice President Value Selling Europe for Dassault Systémes, gave the keynote presentation “PLM for Innovation and Growth”, emphasising the fact that in the current economic climate, companies must radically change the way they conduct business and how they interact with customers to achieve a competitive advantage. This to a large degree depends on companies’ flexibility and ability to adapt themselves to the new economic environment and their ability to reinvent the future through innovative thinking and behaviour. PLM is a vital cog in this process, as it allows you, as Laurent puts it so succinctly, “to see what you mean”. In other words, PLM is the conjunction of the real world with the virtual world. Recent examples of the effective use of PLM is the “Bird’s Nest” Stadium designed and constructed in record time for the 2008 Beijing Olympics, and this engineering feat shall be repeated with an east European flavour with the design and construction of the main stadium to be used in the Euro Cup in Poland in 2012. Dassault Systémes is the world leader in PLM solutions, mainly because of their devotion to research and development (43% of their 7 800 employees are dedicated to R&D!) and the strong commitment of the shareholders and management, which allows

The TATA Nano – PLM in action

56

the company to deliver unique 3D solutions for most industries and consumers, including aerospace, automotive, shipping, industrial equipment, high tech, construction, consumer goods, packaged goods, life sciences, energy and business services. The automotive industry utilises Dassault Systémes extensively, with iconic brands such as Bosch, Ford, Toyota, Daimler, Nissan, Michelin, BMW, Honda, Volvo and Peugeot/Citroen utilising PLM technology. PLM is extremely versatile, from virtual shopping experiences through to molecular modelling, medical/pharmaceutical training, fabric simulation to assessing environmental impact, which Laurent describes as “3D for all”. It is all based on the reality that to work quicker and smarter, we need: • A virtual universe – to understand • Communities – to talk to each other via social networks • Sustainable supply chains – the capacity to get to these communities in a sustainable way • Knowledge trading – the utilisation of knowledge and the trading therein • People and environment friendly focus – this is the be all and end all Thus the move from PLM V5 to PLM V6, to get it right digitally before implementation in the real world, which dramatically shortens engineering change. Innovation is basically the sum of experience, conceptualisation and technology, and PLM tools allows one to capture this experience, imagine a concept and to develop the technology, all in rapid order. This leads to the increase of a company’s asset value, the escalation of a company’s image and the strengthening of a company’s competitiveness. An excellent example of this in action is TATA. In a very short space of time, which in years can be counted on one hand, TATA’s international image has rocketed from nowhere to a spot in the top 15, and this can be largely ascribed to the NANO – a stroke of genius which could only come from experience, conceptualisation and technology being wrapped into warp time, greatly assisted by PLM techniques. July

2009

What’s

the

Buzz?

Experience the latest ITS technologies at the 16th World Congress and Exhibition on Intelligent Transport Systems and Services The 16th World Congress and Exhibition on Intelligent Transport Systems and Services (ITS) will take place at Stockholm International Fairs (Stockholmsmässan) from 21 – 25 September 2009. The theme of the event is ‘ITS in Daily Life’, exploring how ITS can improve everyday mobility with strong emphasis on co-modality and ITS solutions for all transport modes. It will offer visitors the opportunity to experience an array of Technical Visits and showcases as well as featuring a demonstration theatre within the exhibition hall. The Technical Visits can be attended by any participant for a modest fee of 25 euro. Transportation to the Technical Visits will be conducted in hybrid ethanol buses which are fitted with the latest ITS systems on the market. The Demonstration Theatre in the exhibition hall will offer visitors an opportunity to experience five different scenarios per day demonstrating how ITS in daily life ensures a more efficient, safe and secure future using green solutions. The 30 minute demonstrations are free to attend and cover the following areas: Secure transports; Cooperative systems; Safe and sustainable transport solutions; Extended etransactions – the base for ITS deployment; Daily commuter. In addition to the Demonstration Theatre, other free-of-charge

demonstrations will take place alongside the Congress and Exhibition. Highlights include the outdoor Experience Park, where visitors will have the opportunity to try out the latest state-of-the-art ITS applications and technologies of the future on a small-scale model roadway and a joint demonstration site from four Swedish transportation authorities, giving live demonstrations of Traffic Control Centres for railway, aviation, maritime and road will show a number of different weather scenarios, traffic disturbances and crises. The Exhibition will offer a unique opportunity to visit over 170 exhibitors and meet key buyers from around the world, with particular emphasis on traffic safety, mobility for vulnerable users, implementation of wellcoordinated ITS projects and services and multimodality/comodality leading to cleaner climate. In addition, other ITSrelated topics will also be exhibited. The Congress will run alongside the exhibition and include 245 sessions relating to all modes of transport (road, rail, aviation and maritime). There will be many opportunities to take part in the ITS World Congress and Exhibition as a delegate, speaker, exhibitor and visitor. To register your interest or find further information, please visit www.itsworldcongress.com.

SKF SOUTH AFRICA ON THE V8 FAST TRACK WITH THE AUBY BOYZ RACE TEAM SKF South Africa is sponsoring the winning Auby Boyz Race Team in the V8 Super Cars in 2009. The Swedish multi-national, SKF, has been actively involved in motor sport sponsorship for a number of years. “SKF has enjoyed one of the longest technical partnerships in the history of motor racing with Scuderia Ferrari in Formula 1 and, amongst others, also sponsor NASCAR in the USA”, says SKF Automotive manager, Marchant Taylor, and adds that local sponsorships have been equally successful. “Motor sport sponsorships are particularly rewarding. Motorcar

July

2009

racing is such a powerful, thrilling and very demanding environment and, as a knowledge engineering company, we combine technical know-how with product superiority to offer automotive rotating equipment solutions and play an active supporting role in motor sport”. The formidable Auby Boyz Race Team currently competes in the Wesbank V8s, with two Jaguars driven by Marc and Brandon and Deon driving a Chevrolet.

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Insights

Fewer, Bigger, Better “Barloworld has a proven track record of effectively managing long-term relationships with global principals and customers. We have an ability to develop and grow businesses in multiple geographies including challenging territories and high growth prospects. One of our core competencies is an ability to leverage systems and best practices across our chosen business segments” – Clive Thompson, CEO Barloworld.

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owerful and inspiring words, which would encourage any stakeholder, be it current or potential. Let us look at Barloworld’s Vision, which is “to be a recognised global market leader in the provision of integrated solutions in distribution, rental, fleet management, product support and logistics to customers in our chosen business segments”. Now for the company overview as gleaned from Barloworld’s website; “Barloworld is driven by the maxim of creating sustainable value for all its shareholders. The group offers its global customer base integrated business solutions backed by leading international brands.” This is all distilled into the most powerful statement of all; “What sets us apart is our ability to develop and maintain mutually beneficial long-term business relationships. We like to call it the Barloworld Way”. The reason for this introduction is to explain the ethos behind Barloworld Motor Retail’s decision to become a Capricorn Society supplier. Barloworld Motor Retail is one of the chosen business segments as described above, sharing centre stage with the equipment division, car rental operations, fleet services, and the handling and logistics divisions. It would take reams of paper to do justice to all these operations, suffice to say that they all follow the words of Clive Thompson and fit nicely into Barloworld’s Vision. This is the message ABR took on board when it interviewed Pieter Haak, General Manager After Sales of Barloworld Motor Retail South Africa. Pieter Haak describes these philosophies as “Fewer, Bigger, Better”, underpinned by a conservative and ethical approach. Thus, when he was approached by Rob Mildenhall, Capricorn Society Limited Business Development Manager for South Africa, he did not immediately join as a supplier, even though he and Rob had served together on numerous industry bodies, and he knew the qualities of the individual. He needed to be 100% sure of the viability and sustainability of the organisation, and he also needed make sure that the ethics of the Society fitted the

Barloworld values. Early on in his research, his mind was soon put to rest. Capricorn Society Limited was formed in 1975 in Western Australia and since its inception it has had an impeccable reputation for integrity and it has never compromised on its strict eligibility criteria for workshops and suppliers. These values were carried through to the other Australian states, then New Zealand and South Africa as the Society expanded, and now the Capricorn Society can rightfully Pieter Haak, General appropriate and share Barloworld’s Manager After Sales, claim of “developing and maintaining Barloworld Motor Retail mutually beneficial long-term busiSouth Africa ness relationships”.

Barloworld Motor Retail became a Capricorn supplier some four years ago, and the wisdom of Pieter Haak’s decision is validated by the fact that the Society in now one of the top ten accounts for the division. Capricorn members can now leverage off Barloworld’s strength in motor retail, which includes Volkswagen/Audi; Mercedes-Benz; Chrysler; Ford/Mazda; General Motors; BMW; Toyota and Subaru dealerships, sourcing their parts from hub and spoke operations in Gauteng, Mpumalanga, Western Cape and KwaZulu Natal. The benefits for Barloworld Motor Retail are numerous, including improved turnover, the prompt and guaranteed payment of one account covering many small workshops, increased exposure, and the knowledge that their extended car parc is being maintained by genuine parts whenever a Capricorn member gets involved. Likewise, the Capricorn members get the benefits of price, availability, rebates and less administration. A final word from Pieter Haak – “My relationship with Rob Mildenhall does help, but to be totally honest, his persistence in promoting the benefits of Capricorn, both for members and suppliers, and the assistance and help that he and his staff provide, makes it a pleasure for the suppliers. He will move heaven and earth to assist and help, and this makes the difference.”

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 58

July

2009

Q&A

by Roger McCleery

Roger McCleery asks the questions See how many of these 20 Questions you can answer. 1. What company has signed an alliance with Chrysler in the United States? 2. What company has taken over Hummer? 3. Where is Hummer going to be made? 4, What company sold the most passenger cars in May? 5. What is the top selling LCV (Bakkie) in South Africa? 6. How many people have walked on the moon? 7. When refuelling a Grand Prix car, how many litres of fuel does the car receive per second? 8. What company sponsors a GT Challenge racing series for mainly Porsches and Ferraris racing in South Africa? 9. Who is the current President of the FIA? 10. Name two international motor races run at Kyalami this year. 11. Name South Africa’s only Formula 1 World Champion. 12. What city does he come from? 13. Name three Jewish South African drivers who have competed in Formula 1 Grand Prix Racing. 14. Name the current three-times South African WesBank V8 driving champion. 15. What company sponsors the racing V8 driven by Hennie Groenewald? 16. Who holds the South African Land Speed Record? 17. At what speed? 18. What is the maximum length and time of a Formula 1 Grand Prix? 19. Who is the SAGMJ’s Journalist of the Year? 20. What makes of car leads the World Rally Championship after seven rounds?

Answers on page 65 60

July

2009

Wilde

Things

A Call to Alms

by Fingal Wilde

My column in the June 2009 issue of ABR caused quite a stir. In one fell swoop I managed to piss off a third of South Africa’s electorate and the entire soccer world, all aflame about my comments on the quality of their grey matter. At last, confirmation and affirmation that I must be doing something right! Now, to balance the scales, I am about to have a go at that citadel of masculinity and testosterone, a mere stone’s throw away from the Union Buildings, where strange creatures, with horns on their heads, rings through their noses, and their bodies daubed in blue, pay homage to grown men indulging in steamy physical contact, popularly known as rucking (too close for comfort to the term rutting), and with an unhealthy obsession in getting hold of an oval ball. This temple of worship is known as Loftus Versfeld, or for the true aficionados, just Loftus. The gay pastime that is played here is widely referred to as rugby.

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efore I go on any further, I need to come out of the closet. I do watch this spectacular display of creatine and iron pumping inspired combat. I actually enjoy it, as I believe that rugby union, when played properly, is the best sport on the planet. And the spectators at a rugby match are generally far better behaved than the soccer louts, inside and outside the stadium. Someone once said that soccer is a game designed for gentlemen, played by hooligans, and that rugby is a game designed for hooligans, played by gentlemen. I’m not going to argue with this, but what about the spectators. The less said about the soccer yobs the better, but recently the rugby spectators appear to be going the same route. And it is at Loftus, where the blood runs blue, that this malady is manifesting itself in the form of boorish and unwelcoming behaviour. I have long lamented the insufferable behaviour of spectators booing the visiting side, the referee and that particularly unsporting bit of booing and jeering when the opposing side takes a kick at the posts. This is bad enough and must stop. But recently, when Luke Watson visited Loftus, he was subjected to an incessant barrage of booing and worse by a distinctly unfriendly crowd, simply because of some comments that he had made. Yes, Luke Watson is his own worst enemy, but that does not give anyone the right to behave so badly towards a visiting team. What has happened to the simple concept of courtesy? Once again, at the semi-final and the final of the Super 14, the Crusaders and the Chiefs were met by a cacophony of hoots and howls, and I was truly dismayed. It is time that the officials and the rugby players do something about July

2009

this. Not just at Loftus, but at every rugby ground in South Africa. Manners must come back to this wonderful game. How do we do this? We do this through the players, who surely the fans will On the left is the cranium of a well behaved rugby spectator, listen to. I’ve and on the right the cranium of a yob. noticed that most of booing visiting players is the equivalent of South Africa’s rugby players (and a good the ignorant talk of foolish men, and that portion of the New Zealand lot as well) by staying quiet about this unacceptable make the sign of the cross after scoring, abuse you are abusing your freedom, and and cast their eyes to some higher power that as servants of God you should be above and even make some pointed gesscolding the fans for their behaviour. ture to this deity above. A few seasons ago, Need more? How about the second and Jaco van der Westhuyzen took this wearfourth commandments? You shall love ing of your feelings on your sleeve to even your neighbour as yourself definitely does greater heights by wearing this on his not gel with how your fans are treating the chest. It has also become de rigueur for the visiting neighbours. And you are definitecaptains and the man of the match to ly not honouring your father and mother thank God (usually referred to as the if you allow this sort of abuse in your Skepper) for having given them such name or your team’s name. Need more? amazing talent, so I can safely assume that What about Christian charity, and giving rugby players in the main appear to be alms to the poor. Alms is not just about committed Christians. Thus my appeal giving money, it is about intercessory goes to these bearers of the faith to apply prayer and acts of mercy. Believe me, their fervour to converting the poorly getting the fans to keep quiet while you behaved fans on the bleachers. I definitely are delivering a rugby lesson is indeed an am not a theologian, but I’m going to use act of mercy, and by interceding you are some scripture to get my message across. doing God’s work. I could go on and on Firstly, I quote from 1 Peter chapter 2, with messages from the Bible. verses 15 and 16; “For it is God’s will that by doing good you should silence the Thus ends this lesson. In future, I expect ignorant talk of foolish men. Live as free to hear a pin drop when a kick is taken at men, but do not use your freedom as a Loftus, no matter who is taking the kick. cover-up for evil; live as servants of God”. Anyone for side bets on this happening? I am sure that you guys will agree that

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Robert

Bosch

From Innovation to Standard Equipment – 30 years of safe braking with Bosch ABS Bringing a car to a safe stop was not uppermost in the minds of the early automotive pioneers, who had bigger fish to fry in engine development, suspension improvements and drive line technologies. Braking was then seen as a necessary inconvenience.

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etter and safer braking started to exercise the minds of automotive engineers in the early part of the twentieth century, when it was realised that the locking of the wheels was the chief culprit in accidents, not only in cars, but also in railway vehicles and even in airplanes, and as early as 1936 Bosch was already at the forefront of this thinking when it was granted a patent for “a mechanism to prevent locking of the wheels of a motor vehicle”. The development of anti-locking systems was a slow and tortuous process, with the early designs too complicated and therefore prone to failure. The breakthrough came in 1964, when Teldix began development work on the first fully electronically controlled system. The basic structure of this design, known as ABS1, can still be found today in nearly every ABS. The problem in the early development was that the roughly 1000 analogue components and safety switches meant that the reliability and durability of the electronic control units were not yet good enough for volume production. The next breakthrough came in 1975 when Bosch acquired ABS development form Teldix, and the know-how of the Bosch engineers combined with the increasing possibilities of digital technology, including integrated circuits, meant that the number of electronic components could be reduced to 140. After 14 years of intense development, everything finally came into place in 1978: the first system, known as ABS2, went into series production at Bosch, first been fitted as optional on MercedesBenz S-Class vehicles, and shortly afterwards in BMW 7 series cars. The ABS system was further enhanced in 1986 by the TCS traction control system and in 1995 by the ESP® electronic stability programme – and once again, these systems were Bosch innovations. In 2007, more than three quarters of all new vehicles worldwide were equipped with ABS. At world market leader Bosch alone, some 21 million braking control systems rolled off the production lines in 2008. Now, it is as if ABS has been with us a long time, and in Europe, the U.S., and Japan, ABS is now standard equipment on all vehicles, and the ESP® electronic stability programme is increasingly replacing ABS as a standard feature, and this trend is accelerating, encouraged by the regulation in the U.S. mandating the gradual introduction of ESP® in all light vehicles up to 4.5 tonnes gross weight by model year 2012. Europe has passed similar legislation, and in emerging markets ABS is also becoming the norm, with Brazil taking it to heart, and already in China two out of every three passenger cars features ABS.

30 years of Bosch ABS – development milestones 1936

Bosch is granted a patent for “a mechanism to prevent locking of the wheels of a motor vehicle”

1970

ABS 1 prototypes perform all the required functions, with functional safety limitations

1978

Series production of the first antilock braking system

1985

Bosch ABS installed in US vehicles for the first time

1987

TCS (traction control system) goes into series production

1989

ABS 2E is the first to feature a control unit mounted directly on the hydraulic modulator

1993

Series production of the Bosch ABS 5.0

1995

Introduction of ESP® electronic stability programme

1998

Bosch starts production of ABS 5.7

2001

Series production of Bosch ABS 8

2003

100 million ABS systems

2004

ABS becomes standard equipment in all 15 EU member states

2008

30th anniversary of series production of ABS

More on ABS in the next issue of ABR.

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July

2009

The Deep Roots of the Goldfields The mines are deep in the goldfields of the north western Free State. So are the roots of many who live in the Welkom, Virginia, Odendaalsrus triangle. It is these roots that sustain this close knit community and it’s these roots that gave Ben du Plessis and Willie Claassen the strength to start up du Plessis and Claassen Service Centre, situated at 216 Jan Hofmeyr Street, Welkom, in the heart of the motor trade in this mining town.

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t takes courage and drive to start your own business in the prime of your life, and to leave the cosseted confines of the corporate life. It takes even more courage to start from scratch, but this is exactly what Ben du Plessis and Willie Claassen did, sinking their life savings into a business venture during the height of a global economic crisis. Courage comes from crisis, but this was not a spur of the moment decision. Having worked together for 20 years at the local Mercedes-Benz dealership, and being close friends during this time, Ben and Willie had for many years discussed this possibility during their frequent hunting trips to the Waterberg. It may have been a sub-conscious imperative, but they were simply waiting for the right opportunity, as they did not just want to, in the words of Ben, open a workshop “onder ‘n boom”. The catalyst came in the form of the Johannesburg Motor Show in October/November 2008, when Ben was perusing the show catalogue and came upon the e-CAR concept. After contacting e-CAR and after two insightful briefings, Ben and Willie knew that they had found a home, and the time had arrived for this dynamic duo to divest themselves of their “corporate comfort zone”, and to tackle a new and exciting challenge. The wheels were put into motion, and on the 8th May 2009, du Plessis and Claassen Service Centre was officially opened. The business became an instant success, and with barely two months under their belts, Ben and Willie can already declare with absolute certainty that they have made the right decision. They ascribe their Welkom roots as having played a central role to their success, as their clientele comes from the local folk and the surrounding farming community, the ties to which Willie and Ben have built up over many years, and this local knowledge and inside track made the venture that much easier. The e-CAR name and its links to the Bosch standards relating to equipment and training also played a major role in the seamless transition from a corporate culture to a more family orientated culture. Whilst e-CAR has its rules and guidelines, Ben and Willie love the more informal attitude and the independence granted to them by an organisation focused on excellence with a personal touch. This support covers the whole gamut from technical, parts, training, marketing, all key to the success of a modern workshop, but what Ben and Willie truly appreciate is the ethical and moral support which e-CAR lends to them, aspects that are sometimes undervalued in the hurly burly of the business world.

The sun is rising on Willie Claassen and Ben du Plessis, with a modern workshop staffed by highly qualified technicians, offering 60 years of Mercedes-Benz technical experience and know-how, backed up by the e-CAR concept

Over 80% of the vehicles serviced at du Plessis and Claassen Service Centre are Mercedes-Benz passenger and commercial vehicles, testimony to the ties built up over the past 20 years

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

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July

2009

Burford

on

Brands

Logan’s Run Renault was the first French brand to return to South Africa in by Adrian Burford the 1990s, in a deal with Imperial which saw them launch the Laguna into a market hungry for variety. It heralded the end of a 10 year hiatus, Renault finally giving up on South Africa and its divisive politics in 1985, closing shop in the wake of PW Botha’s infamous Rubicon speech on August 15 that year.

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t also brought the curtain down just as it was going up: in 1984 the Renault 5 (despite being near the end of its lifecycle) and newer 9 were both selling strongly, keeping a well-developed dealer network busy. In 1981 about 7 500 R5s were sold, and in 1984 some 10 000 R9s found homes, numbers which made Renault a mainstream player, if not quite in the same league as Ford and Toyota. Renault South Africa existed as an entity in its own right to handle sales and marketing while the cars were being assembled in Durban by Toyota’s Motor Assemblies operation – as the 5 had been since the mid-70s. The brand had a solid reputation for economy combined with the ride comfort of more expensive cars. Prior to Toyota’s involvement (the brand also marketed the 5 in the earlier years) Renaults had been assembled in East London, with the rear-engined R8 and the slightly larger R10 flying the brand’s flag from the middle 1960s to the early 1970s. For those after spacious hatchbacks there was the evergreen R16, which had a 10 year lifespan. Meanwhile, the imported - and pricey - R8 Gordini and locally-developed - but much more affordable - R10 Alconi were doing wonders for the brand’s reputation on racetracks. A young man called Jody Scheckter cut his teeth in the former.

While there weren’t any new Renaults available from end-1985 until mid-1996, the brand was kept alive by enthusiasts, aided by France’s pragmatic approach to at least supplying parts. To this day, the 5 and 9 remain a surprisingly common sight on our roads. Imperial’s decision to start importing and distributing the quintessentially French brand put them at the forefront of our industry’s rapid regrowth in terms of new badges in the postapartheid era. By the end of the century Renault was doing nicely with a range of Meganes and Lagunas on offer. There was also a luxurious saloon called a Safrane but the less said about it the better. After the Great War Renault had a reputation for building impressive large cars, including some with a giant 3.7 metre wheelbase. The company’s inability to build large cars latterly (think the outlandish Vel Satis and interesting but flawed Avantime) has only been matched by its French cousins Peugeot and Citroen, who should also learn to stick to their knitting.

Answers 1. 2. 3. 4. 5. 6.

Fiat Tengzhong – China Shreveport USA VW Toyota Hi-Lux 12

July

2009

7. 8. 9. 10. 11. 12.

12 Altech Max Moseley A1GP, World Super Bikes Jody Scheckter East London

And that has largely been the case since World War II, and it was post-conflict that Renault was nationalised, company founder Louis Renault dying in prison while waiting to be tried for allegedly collaborating with the Germans. Small cars like the 4CV and Dauphine becoming the company’s stock in trade, Renault then doing a design about face at the beginning of the 1960s when they changed to the front-engined, front-drive R4. The 4 CV was imported to SA from 1953 by Curries Motors and Renault Africa was formed in 1958. Renault lost huge amounts of money in the early 1980s, causing a major shake-up in which they sold many key assets and retrenched thousands of workers, a decision which was said to be the justification for the assassination of MD Georges Besse at the end of 1986. His policies stemmed the tide of red ink though and the company’s ability to compete internationally was further aided by privatisation at the end of the 80s. The company has recently celebrated 10 years of the RenaultNissan alliance, an arrangement whereby Renault owns 44.4 percent of Nissan which in turn owns 15 percent of Renault. By the early 2 000s Renault was the darling of the local media: the Clio 1.4RT was chosen as the Wesbank Car of the Year and in 2004 the bustle-backed Megane II also took the crown. Sales grew rapidly from about 10 000 units in 2000 to 18 625 just five years later, market share peaking at a shade under five percent. Renault South Africa (formed in 2002) seemed capable of doing no wrong. But since then things have gone pear-shaped and the brand has fallen out of favour: sales dropped in ‘06 and plummeted in ’07 and while they’re not the only ones to suffer in that regard, share was down to 1.38 percent last year. However, the company seems to be on the comeback trail in South Africa and not only is there a rush of new product (not least of all the affordable Logan and Sandero twins) but the brand is adamant that their issues with indifferent dealers and poor parts availability and pricing have been addressed. So far this year (January to May) they’ve sold 1 304 units with share starting to climb too. Much of it is on the back of their ‘cheapies’ and Logan/Sandero seems to be the right product at the right time...and not a moment too soon either.

From page 60 13. Jody Scheckter, Ian Scheckter and Eddie Kaizan 14. Hennie Groenewald 15. Timken 16. Johan Jacobs in a Jet Car 17. 504,554 km/h

18. 305 kms or two hours 19. Egmont Sippel 20. Citroën

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Howard Keeg follows the action

Partinform Blooms in Bloemfontein Conceived in 1986, Partinform has grown into a significant parts road show, whereby reputable manufacturers can display their latest products, and to show cutting edge technological advances, and most importantly, to talk face to face with the trade and the end users across the country about the technical challenges facing the industry, and to inform and educate on various matters of interest and concern, such as the professional benefits in buying and fitting guaranteed, quality branded product; and to warn about the dangers of fitting sub-standard or counterfeit parts, the obvious dangers thereof around roadworthiness; and VERY VERY IMPORTANTLY, the implications for the industry of the recently promulgated Consumer Protection Bill. Howard Keeg followed the Partinform caravan into Bloemfontein, where they set up their stalls of knowledge, wisdom and insight, and invited the locals to partake of food, drink, information, education, entertainment and very valuable networking.

B

loemfontein is known as the City of Roses, and things were indeed blooming at the City Hall, where the Partinform Automotive Trade Show was held on Wednesday night, 17th June 2009. 260 attendees were on hand to participate in the action, and by the end of the night, every one of them left with a better understanding of the importance of selling or fitting well known brands, with local support and back-up. It was while observing the goings on during the show that I wondered what Johan Nicolaas Brits would have made of all the fuss, and his take on the amazing advances in the means of mobility, and the emphasis on quality, roadworthiness and safety, and the commitment of the purveyors of the components that make all these good things happen. Farmer Brits was the fellow who owned the farm that became a British outpost in 1846, and where the city

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of Bloemfontein was established by the trekboers. Bloemfontein is famous for its roses, but even more famous for its Cheetahs rugby side, named co-incidentally or purposely after Manguang, the Sotho name for the city; and meaning “the place of cheetahs”. This was also the birthplace of such luminaries as J.R.R. Tolkien, Zola Budd, Allan Donald, Leon Schuster, Hansie Cronje and many more, and if a conurbation is the sum of its parts, these celebrities hold the key to understanding that Bloemfontein is a fusion of culture, side splitting humour, sport, and an area which gives any other city a run for its money. There is also apparently no truth in the rumour that Tolkien found his inspiration for Gollum in Bloemfontein, but who knows what affected him in his formative infant years. Enough of the twisted travelogue, and let us take a look at the action on the night of 17th June:

July

2009

People + products

= Knowledge and Information

July

2009

67

68

July

2009

The Winners

Juan Annandale of BNS Workshop, Bloemfontein, was the big winner of the night. He knew that when disconnecting a battery, the negative battery terminal must be the first terminal to be disconnected, and this knowledge meant that he will be attending the Forza Racing Ferrari Track Experience on Friday 19th November 2009 at the Zwartkops Racing Track, together with the other winners from the other shows. Four more racing experiences are still to be allocated, at the forthcoming shows: • • • •

Durban Tuesday 21st July 2009 Klerksdorp Tuesday 8th September 2009 Port Elizabeth Tuesday 13th October 2009 White River Tuesday 10th November 2009

Make sure that you attend one of these shows, and you could be part of the Ferrari Fun!!!

Other great prizes were up for grabs.

Danie du Toit got some goodies from Bosch

Samantha Botes from Ficksburg Midas picked up a prize from Goodyear RAM

Gerhard from the Volksie Shop walked away with a prize from FRAM Kallie Malan from Lindsay Saker drew the short straw when it came to the questions. When asked the difference between a FRAM filter and a cheap import, his answer that it was of a better quality and had better filtration properties, did not get the nod from the strict judges. What they were looking for is that a FRAM filter has a better contamination holding capacity. For those who will be attending the next shows, be warned – make sure that you do your homework at the stands. You could get a tough question!

Johan Marx and Danie du Toit were the lucky draw winners of the i-POD and Tom-Tom GPS, courtesy of Willard and Sabat Batteries

Competition Corner And if you are a reader of ABR, not only are you highly intelligent, you also have a chance to win a Forza Racing Track Experience. Four lucky winners will be drawn out of the hat at the Port Elizabeth Partinform on the 13th October 2009, and will be advised via e-mail or telephone by the 27th October 2009, and the winners shall also be announced in the November 2009 issue of ABR. Don’t delay. The entries from the previous editions of ABR are already streaming in, so get out your thinking cap and answer these three questions:

1. When was Partinform conceived?

2. Bloemfontein is known as the city of what?

3. What important bill relating to quality, service and back-up, has just been promulgated?

Send your answers to fax 086 6579 289 or e-mail [email protected] with the following details: Name and Surname: __________________________________________________________________________________ Company: ___________________________________________________________________________________________ Position: ____________________________________________________________________________________________ Postal Address:_______________________________________________________________________________________ Contact Tel. no’s:_____________________________________________________________________________________ e-mail address:________________________________________________________________________________________ July

2009

69

Partinform

The CEF Brake Hose you make up on site for your customer, is the same Quality that we supply to the “OE Manufacturers” 1. Fittings Production

3. Inspection

5. test Assembly

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2. Fitting bending Production

4. Assembly

6. Completed Brake Hose

July

2009

Vehicle

by Howard Keeg

Evaluation

Cadillac Man

When I was growing up in the 50’s and 60’s (20th century, for those wondering) there was only one car for me. My aspiration was not a Rolls-Royce, nor a Ferrari, and this was long before the new breed of super cars that in those days were not even a twinkle in the eyes of the designers. The car for me was a Cadillac. The marques of note were the Studebakers, the Hudsons, the Pontiacs, and the like, and on top of the pile was the majestic Cadillac. For Elvis and me, this was our dream car. By the time that I eventually reached driving age in the early 70’s, Elvis had amassed a collection of Cadillacs, but unfortunately economic reality had kicked in, and petrol prices had kyboshed the Cadillac, so my sights were lowered somewhat, with my dream car downsized to a Beetle.

I

magine my emotions when, for one week at the beginning of June, I had the opportunity to experience a Cadillac, courtesy of those nice guys at General Motors. And not just a Cadillac, but a 2009 Cadillac CTS. As I slid behind the wheel of a Cadillac for the first time in my life, those childhood dreams came rushing back with a vengeance. The CTS is a 3,6 litre V6 powered brute, but in one package you have the beauty and the beast, that can only be appreciated by a certain type of motorist, or more accurately, motoring journalist. This species is rare on the ground in both Europe and South Africa, so it is no surprise that the accolades have come from more appreciative climes, with the CTS reaping awards such as the 2008 Saudi Auto Car of the Year, the 2008 Motor Trend Car of the Year – North America, and the engine making it onto Ward’s Autoworld magazine’s “Ten Best Engines”. 229kW of power and 374 Nm of torque makes for effortless driving, enhanced by the 6 speed hydra-matic automatic trans-

mission, which allows for full automatic mode or clutchless manual gear changing via the gear stick or paddles on the steering wheel. Developed on Germany’s famed Nürburgring test track, this Cadillac is a brilliant throwback to the past, being bigger than its rivals in the luxury sports sedan class, and all the bells and whistles befitting a car of its status. I could go on and on about the multi-colour pop-up screen which controls the radio, TV, CD, DVD player, MP3, GPS (when installed), the 40Gb hard drive for storing everything including the kitchen sink, the voice activated channel changing, the on board information available, the seat warming, the stored driver settings, the leather, wood and aluminium finishes, and other features which even Paris Hilton would die for, the superb build quality, the breathtaking handling thanks to a wide track rear wheel drive arrangement on 18” tyres, all for an incredibly good starting price at R425 000 (for the well heeled), but what I really need to say is “Go and experience it for yourself ”. And now I’m a Cadillac Man for life, even if it’s in words rather than deed.

Just in case you can’t make it home for your favourite soap

The Yin and Yang, the ancient and the modern, represented by Maropeng and the 21st century Cadillac.

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July

2009

Corporate

Conscience

It’s More Than Just Business #2 In February 2009, Automotive Business Review began a series of articles under its Corporate Conscience/Industry Update banners, describing the Herculean efforts of Patrick Latouche, General Manager of Sparepro, to reinvent and re-ignite the company with a blend of management disciplines and new wave thinking, putting soul and spirit into the staff, and striving to allow each and every employee to become the best that they can be, and inculcating a “Spirit of Team”. These articles were titled “It’s More Than Just Business”; “Management by Measurement”; “Feeling the Pulse”; “Feeling the Pulse – with Passion and Precision”; and “An Idea Becoming a Reality”, whereby we delved into Patrick’s various management by motivation techniques, and the incredible success that he has achieved so far. For the next two articles, we have gone full circle, as we look again at “It’s More Than Just Business” with a more enlightened eye.

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e visited Sparepro on Friday 5th June at 07h10, some 20 minutes early, and found Patrick already ensconced behind his desk, analysing the previous day’s sales performance in preparation for his daily pep talk to the sales team. This confirmed that behind all his modern philosophies and concentration on the “softer” issues, Patrick knows that the foundation is built on sound business principles and good old fashioned hard work. It was thus only when this daily operational task had been put to bed that Patrick turned his attention to our 07h30 appointment, and he got round to one of his intense passions, and a recurring theme in his approach to business. This recurring theme is that business is like a human being, because it represents the collective souls of the people in the business, and that healthy souls equal healthy business. Even if this does not exist, it can be cultivated, because as Patrick says with an evangelical gleam in his eye. “It is more than just business”. An example of this is the initiative that Patrick has started in assisting Little Eden, a registered non-profit organisation that cares primarily for children affected by Down Syndrome, cerebral palsy, autism, epilepsy, Dandy Walker syndrome, foetal alcohol syndrome or mental trauma as a result of birth complications or physical abuse. Other patients suffer from behavioural problems or mental illnesses such as schizophrenia, thus unable to function in normal society and who have to rely on their carers for help with eating, bathing, dressing and other daily activities. Nevertheless, each one is an individual with something to contribute and very often something to teach us, like patience, joy in small achievements, trust and love. As Domitilla Rota Hyams, the Founder of Little

Eden, says “There is one thing I know: that people with intellectual disability have great value and that God gave them to touch our hearts and make us better people. From the very beginning, Little Eden has been a place where each individual is not only cared for physically, but also emotionally and spiritually.” It is clear that his visit to Little Eden has affected Patrick emotionally. He says “By visiting Little Eden you realise that life is a gift. We tend to take so much for granted, but we should stop to think and to realise how lucky we are to be functional. The kids at Little Eden feel the cold, get hungry, get happy, and get angry, just as we do. The only difference is that they got the short end of the stick when they were born, which they did not ask for. We should realise that but for the grace of God, that could be us, and how would we feel if we were abandoned. We must accept that we are here for a short journey, and we must realise that whatever we do to earn our daily living, we are more than just a business. It is not just balance sheets, income statements, returns on investment. We cannot just measure wealth in monetary terms, wealth is nothing without a social conscience, and people and business have to get involved in worthy causes to redress the balance of life.” Patrick bemoans the attitude of some people who say that if there are no returns, that they will not contribute and just wash their hands. “Children with no future may not give returns in the conventional measurements, but they can give returns in other ways”, he says. More on this in the August 2009 issue of ABR.

Little Eden Founder Domitilla Rota Hyams with Shaun. Shaun looks like a normal little boy, but he suffers from all of the affects of foetal alcohol syndrome – small for his age, physically and mentally disabled, a hauntingly sad and empty gaze. But he was also a beautiful baby who screamed non-stop for days after he arrived at Little Eden, suffering acute withdrawal symptoms after being born to a mother who drank alcohol and took drugs during her pregnancy, but today he smiles and responds to people and can point to his nose and mouth when asked. Shawn will never be normal, nor will he contribute to society in the conventional way, but he has reached a stage where he can touch the hearts of everyone who meets him; a milestone that simply would not have been possible without the dedicated care, encouragement and love of Little Eden’s wonderful therapists and nursing staff. 74

July

2009

Road

Safety

DWD as bad as DUI by Howard Keeg

The Bridgestone Committee for Active Road Safety (CARS), a subsidiary of the South African Guild of Motor Journalists, conducted an interesting pilot study at the Wanderers Club, Illovo, Johannesburg, on 28 May 2009. The purpose of the study was to determine the effect of operating a cell phone in either talk or text mode while driving. The results were rather predictable, as previous research has given us the clue.

Eugene Herbert of Skidpan Advanced Driver Training conducted the study

I

n actual fact, I do not need research to prove what is going on under my very own eyes every day of my life. Whenever I observe slow or erratic driving during the day, my immediate assumption is that the idiot is on a cell phone, and nine times out of ten I am correct. The exceptions are newly minted drivers who obviously did not get their driver’s licences legally, or who simply do not have a driver’s licence. At around midnight, one is confronted with a totally different scenario, with high speed, low speed, erratic driving, and other hair raising antics thrown into the mix, all fuelled by alcohol. Coming back to the study, the results confirmed that DWD (distracted while driving) is as bad as DUI (driving under the influence), which, as I said before, is as simple as ABC (a bloody certainty). Research data from various other studies make for compelling reading: • Distraction from cell phone use while driving (handheld or hands free) extends a driver’s reaction as much as having a blood alcohol concentration at the legal limit of .08% • The number one source of driver inattention is the use of a wireless device • Driving while using a cell phone reduces the amount of brain activity associated with driving by 37% • Motorists on the blood-alcohol edge drive better than sober drivers using cell phones • Phones ringing startle people, and most people feel compelled to answer them regardless of the traffic situation they are in. There are many more such statistics, suffice to say that the logical conclusion is that anyone who uses a cell phone while driving should be incarcerated in a cell for a salutary period. To get full details of the study conducted on the 28th May, you may contact Dr. Lawrence Barit at [email protected] July

2009

75

Fast

Wheels

THE BRAWN FORMULA ONE GP TEAM ROLLS ON

by Roger McCleery

The fairytale entry and successes of the Brawn GP Team in Formula 1 World Championship Racing continues. Jensen Button at the end of the Turkish Grand Prix outside Istanbul at the beginning of June had chalked up 6 wins from 7 starts. Only Jim Clark (Lotus) and Michael Schumacher (Ferrari) had ever achieved that sort of record. If Schumacher had won 6 out of 7 GPs to start the season the British Motoring Press would have been shouting that he and Ferrari are ruining GP racing and he is arrogant into the bargain (which he is not). Button doing it is OK, and I must admit it is fantastic to see a new team and their star English driver, who listens to Brawn, bringing a happy smiling face to the racing. Button takes all in his stride. You can see that the Brawn team is a happy crowd compared to some of the others. With success behind them like this already why wouldn’t they be? After Brawn had a one/two finish in Australia people like Renault’s Briattore cried “Foul” and that they had broken the rules. Everybody said it was the diffuser under the car. Then the “Liegate” saga unfolded in Malaysia with Button having another win and only gaining half points when the race was abandoned early due to a huge storm and fading light. The Chinese Grand Prix, also run in heavy rain saw a Red Bull victory with Sebastian Vettel and Mark Weber leading home Button in 3rd. Bahrain in April saw other teams sprouting diffusers under their cars. It didn’t matter as Button took his third win with Vettel 2nd in the Adrian Newey-designed car. Good to see Toyota in 3rd with Lewis Hamilton 4th and Barricello 5th. Raikkonen picked up his first points for the year for himself and for Ferrari. He finished 6th. Things looked like they were getting closer at last. You reckon? The “Bearded Duo” of Jensen Button and Ross Brawn, the brains behind Schumacher’s success, engineered another one/two for the Brawn GP Team in Barcelona. Button 1st , Rubens Barricello 2nd.

This Monaco Grand Prix will always be remembered for another bit of motor sport folk lore. After his win Jensen Button parked his car in the pits instead of in front of the Prince at the podium. Nothing daunted, he set off on foot and sprinted at least a kilometre in full racing gear to get his trophy, to the cheers of the crowd.

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Lewis Hamilton with the fastest car was 13th. He almost seems to have given up this year or altogether after his “Lie-gate’ scandal seems to have got rid of some of McLaren‘s key people. While all the racing has been taking place, Max Moseley, Bernie Ecclestone and the Formula 1 team is at war, in public. Like the formula 1 technical rules which never aim to make for close racing, the FIA never seems to fail by doing things that none of the public or the teams wanted in the first place. Max wants more teams on the grid spending a lot less money so he has put a cap on it. He has given as much testing and development as they would like. The manufacturers’ teams don’t want the “cheapies” to downgrade the sport. Ferrari, BMW, Renault, Toyota and some of the others say they could depart the sport. It could be the end of the worldwide exposure they get on a Sunday. They are now thinking about suing the teams. An alternate series could be found.. This is the A1 Grand Prix Championship which uses Ferrari power already. It has a good format and lots of passing. One way or another let’s hope they sort it all out for the best.

From p 22

Monaco, said the experts, and for that matter, all the other teams, would even the playing fields. A good qualifying would make all the difference as there is almost no passing on the narrow streets of this Principality. The jewel in the GP crown provided a glamorous afternoon looking at the rich and famous, sunbathing on their top toys floating in the harbour. Result? Another one/two finish for the Brawn GP team. Win number five out of six Grands Prix held so far, with Button seven seconds in front of Barricello. Ferrari got onto the leader board with Kimi 3rd and Massa 4th.

Then the Formula 1 circus went across the Bosphorus to the Asian side of Turkey for Round 7 of the season. Ferrari had won the last four races here and with all sorts of aerodynamic devices now fitted were getting closer. Vettel got pole in practice but it was Button who passed him around the circuit on Lap 1 when Vettel went off on a fast corner and that was that. Vettel was quick and had another go at Button but his choice of tyres failed him and he came home in 3rd spot. Button 1st, Rubens out with gearbox problems. Weber’s 2nd spot was seven seconds behind Button and his best finish ever in a Grand Prix. Toyota and Toyota-engined cars recovered from previous problems with Trulli 4th and Nico Rosberg in his Williams 5th. First Ferrari was Massa in 6th.

July

2009

The

Last

Writes

by Baron Claude Borlz

My dead readers are brilliant. Read on …………. Priceless Observations: Sometimes, when I look at my children, I say to myself, “Lillian, you should have remained a virgin.” – Lillian Carter, mother of Jimmy Carter I had a rose named after me and I was very flattered, until I read the description in the catalogue: “No good in a bed, but fine against a wall.” – Eleanor Roosevelt Lat week, I stated that this woman is the ugliest woman I have ever seen. I have since been visited by her sister, and now I wish to withdraw that statement. – Mark Twain

By all means, marry. If you get a good wife, you’ll become happy; if you get a bad one, you’ll become a philosopher. – Socrates I was married by a judge. I should have asked for a jury. – Groucho Marx My wife has a slight impediment in her speech. Every now and then she stops to breathe. – Jimmy Durante I have never hated a man enough to give his diamonds back. – Zsa Zsa Gabor Only Irish coffee provides in a single glass all the four essential food groups: alcohol, caffeine, sugar and fat. – Alex Levine

The secret of a good sermon is to have a good beginning and a good ending; and to have the two as close together as possible. – George Burns

My luck is so bad that if I bought a cemetery, people would stop dying. – Rodney Dangerfield

Santa Claus has the right idea. Visit people only once a year. – Victor Borge

Money can’t buy you happiness, but it does bring you a more pleasant form of misery. – Spike Milligan

Be careful about reading health books. You may die of a misprint. – Mark Twain

Until I was thirteen, I thought my name was Shut Up. – Joe Namath I don’t feel old. I don’t feel anything until noon. Then it’s time for my nap. – Bob Hope I never drink water because of the disgusting things fish do in it. – W.C. Fields We could certainly slow the aging process down if it had to work its way through Congress. – Will Rogers Don’t worry about avoiding temptation. As you get older, it will avoid you. – Winston Churchill Maybe it’s true that life begins at fifty, but everything else starts to wear out, fall out, or spread out. – Phyllis Diller By the time a man is wise enough to watch his step, he’s too old to go anywhere. – Billy Crystal

Of course, Rodney Dangerfield is famous for his close to the bone one liners, like these which can be printed after censoring, and only for those with a sense of humour. There are many others that simply can’t be cleaned up:

orntery this m e m e c a ing in hind a I was walk hiding be e k lo b a w ing and sa e. graveston "No, e replied, H ." g in orn I said, "M g a s#!t." just havin

Went to my first Iraqi birthday party last week. The musical chairs was a bit slow, but $%#@ me, pass the parcel was quick!!! ys, "Can I on and sa ti a st l o tr e p lks into a hunky?" KitKat C A man wa a e v a h se plea nky itKat Chu ts him a K e , g a ll ti m e s the n behind th "No," say . im h The lady !" @ to # $ s it back you fat % and bring al KitKat, rm o n a d "I wante July

2009

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