automotive business review august 2009
DESCRIPTION
A refreshing and upbeat monthly review of the automotive industry, from A to Z. Written and presented in a clear, crisp, anecdotal style, imparting information to the busy automotive executive in easily digestible bytes; What you need to know, and not necessarily what you want to know!TRANSCRIPT
4 Assault and Battery
18 Dodging the Bullet
37 Bank Obama vs Shogun
50 Rooting for the Little Guy
74 Shark Attack
82 Soweto Tastes Motorsport
T h e P h o e n i x
A u g u s t 2 0 0 94
Honesty and Ethics in Publishing
The assault story may be found on page53. It is about an assault on the senses, as perpetrated by Pieter de
Weerdt with his Lamborghini GallardoTwin-Turbo. The assault comes in the formof the G forces that are experienced whenPieter puts pedal to metal, but also from thesheer exhilaration one gets when reading thestats on this vehicle, and the realisation thatus South Africans are capable of some prettycool things. But, as we said, we are a seriousbusiness publication, so the real story is actu-
ally about the phenomenal success story thatis DASTEK, a company that is living testi-mony to the ingenuity of South Africans.The Lamborghini is merely a side show anda project by Pieter to illustrate just what hisunique Unichip is capable of. Go to page 50to read the full story. The battery that we arereferring to is not a Mike Tyson uppercut,but our cover story on, yes, you guessed it,batteries. Another story of South Africaningenuity, in the form of PowertechBatteries, and the commissioning of their
new state of the art production line in PortElizabeth, to produce world class calciumcalcium silver plus automotive batteries. No, I did not repeat myself, there is a reasonfor repeating the word calcium – a brief flitto page 14 will reveal all the glorious details,and you are guaranteed to be inspired.
Now that we’ve had our fun with words, it istime to be super serious, as we discuss:
In the used car game they call it a“haircut” or a “shave”. This is theinsidious practice of turning theodometer back from say 250 000km to 100 000 km, to increasethe value of a banger, and in sodoing to defraud the unsuspect-ing customer, who gets taken
hook, line and sinker. In publishing, theequivalence of a “haircut” comes in theequally insidious practice of claiming a cer-tain print run, or circulation, and then toeither gradually or suddenly reduce theactual quantity significantly, and to take thetrusting but gullible advertiser for a ride indeceit and dishonour. I was alerted to thisdisgraceful act of chicanery by two recentepisodes. Firstly, the alert sent out byeMedia in early July 2009 under the title“Ghost” mag publishers on the rise, andI quote; “More reports about 'ghost' magazines with no ABC listing targetingunsuspecting media planners and otheradvertising executives have emerged, saysJenne` Zilz, on behalf of the AdvertisingMedia Forum. Unsuspecting organisationsare lured into to advertising with the maga-zine which is only set up to dupe the adver-tisers. South African Rates And Data(SARAD) reported that its main modusoperandi is to lure potential advertisers oradvertising agencies to “support” or adver-tise around a construction project that theyalready know. It is alleged that the scam perpetrators will normally send a poorlywritten sales email. Upon convincing theadvertiser, the “publishers” then design theadvertisement and send in proofs. Once theadvertisement is signed off, an upfront payment is requested. The “publisher” thengoes on to print a few dozen copies andsends a few copies to the advertisers as proofand keep a few copies for the next con.SARAD says that in itself must be a red flagand organisations must exercise vigilance
and be very selective in terms of magazinesthey wish to advertise in.”
Fraud, pure and simple, but this is a fly bynight type of operation, and anyone whogets taken by this sort of behaviour canaccept some of the blame for being so trust-ing of a poorly written e-mail and the factthat it is a new venture. It is the variation of
this theme, perpetrated by established pub-lishers, that is the more shocking. In thesame week that I received the eMedia e-mail, I discovered one such fiddle, commit-ted by a publisher in my particular segmentof the market. Faced with deterioratingadvertising revenue and mounting losses,what better way to dig yourself out of thehole than by reducing the print run andmailing quantity by 50% and more, thuscutting overheads significantly and recoup-ing your losses in a couple of deceitfulmonths. Brilliant, isn’t it! Apart from thefact that it is illegal, dishonest and extreme-
ly unethical, it could be defined as a newapproach to business. Apparently, this gangof thieves justify their action by saying thatthey were going to close the magazine any-way. Good Grief! what has happened tobusiness ethics? And, to add insult to injury,they have the cheek to resurface underanother name, offering after the event tothose who have been apprised of theirdeception that they will make up with spe-cial deals, and thus preparing the ground foranother con further down the line. I trustthat the advertisers are not that naïve, andthat they will realise that they are dealingwith the same old discredited faces. Andyou simply cannot make a silk purse out ofa sow’s ear. My message to the broader com-munity of advertisers, institutions, organisa-tions and particularly those individuals whohave the power, prestige, and influence isnot to turn a blind eye to this sort of behav-iour. You have a responsibility to yourselves,your shareholders, in fact all the stakehold-ers, both current and future, to boycott suchpublishers, across the spectrum, withoutfear or favour. The bottom line should be “show me the ABC certificate” before anyfurther discussion. I’ll use a strange andmaybe inappropriate metaphor that I haveborrowed from George Bernard Shaw, toillustrate the consequences of continuing todo business with these rogues, but it will getthe message across – “if you wrestle with apig, you’ll also get dirty.” There is simply noplace in publishing for this sort of hog,washed or not. In actual fact, there shouldbe no place in society for these snake oilsalesmen, however they have sanitisedthemselves, unless it is in a jail cell. Do nottouch them, ostracise them, and removethem from the mainstream. And finally,some gentle advice to those who continue towrestle with these pigs wilfully and know-ingly – you are judged by the company thatyou keep.
w w w. a b r b u z z . c o . z a
Assault and BatteryThe two main stories in this month’s issue of ABR are about assault and battery. Ifyou are wondering, we are not a crime magazine; we are a serious automotive businesspublication that just likes to spice up life with WORDS IN ACTION.
Would you pay prime rates for dubiouscirculation figures to this snake
oil salesman?
C o n t e n t s
3737 5353 5858
6
The publisher and contributors have done their best to ensure the accuracy of the articles and cannot accept responsibility for any loss or inconvenience sus-tained by any reader as a result of information or advice in Automotive Business Review. The information provided and opinions expressed in this publica-tion 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.
4 The Phoenix Assault and Battery
8 What’s the Buzz
12 Focus on Forsdicks Forsdicks Sandton Geared for Customer Satisfaction
14 Cover Story A Thoroughbred from a Leading Stable
18 Frankly Speaking Dodging the Bullet, or a Valiant Attempt?
21 Lux Lite Peter’s Soap Box
22 AIDC Automotive Industry Conference 2009
24 Auto Topical Crossword Puzzle
26 The Chery Story Chery is China’s Top Auto Exporter
28 Health Care An Update on Moto Health Care
30 Managing the Risks Tyre Monitoring
32 Weighty Issues Public Transport – Hope at Last?
34 Tony’s Take Another Winter of Discontent
36 AIDC Quiz 20 Questions
37 Industry Update Life Goes On – without Bank ObamaLife Goes On – the Shogun Way
40 Personal profile Q & A with Alan Ross
42 Diamond Dialogues The Heroes of the Automotive Aftermarket
46 Tyre Safety Tyres’ Contribution to Safety in Motoring
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Correspondents
Beeton, Frank
Borlz, Baron Claude
Burford, Adrian
Gamble, Austin
Hogg, Gilbert
Keeg, Howard
McCleery, Roger
Twine, Tony
Wilde, Fingal
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64 Customer C.A.R.E. Customer Relationship ManagementTrilogy Customer C.A.R.E. Programme
65 Burford on Brands Head of the Class
69 Wilde Things Too Squared
72 Vehicle Evaluation Grand Chalk and CheeseMe Too, Please
74 Partinform Shark Attack
78 Corporate Conscience An Inspiring Invitation
80 Hogg’s Wash Bad Sportsmanship, with a large dollop of Hypocrisy
82 Fast Wheels WesBank brings Motorsport to SowetoThe On/Off Formula One Season Continues
85 The Last Writes
48 Robert Bosch Antilock Braking Systems are now Old Hat
Equipment for all Seasons
50 Innoventions DASTEK - Rooting for the Little Guy
55 e-CAR e-CAR Pioneer
58 Topclass Topics Permatex – 100 Years of Innovation and Leadership
59 Ignition Engineering The Whole Bang Shoot
62 Capricorn Insights Fits Like a Glove
W h a t ’ s t h e B u z z ?
A u g u s t 2 0 0 98
Two stalwarts of the automotive aftermarket left theindustry in the past two months. At the end of JuneNorman Dyer, Director of Midas, hitched up his LandRover and went off into the wilds of Africa, and at theend of July, Barrie Taylor, Wholesale Director of Federal-Mogul Aftermarket, exactly 28 years to the day after join-ing Ferodo, decided to take a creative sabbatical. ABRspoke to both gentlemen.
Barrie Taylor joined Ferodo,then part of T&N, as SeniorSales Clerk in Durban on 1stAugust 1981, and worked hisway up the ladder to theposition of Sales &Marketing Director, andwhen Ferodo was acquired byFederal-Mogul, he movedover as Wholesale Director ofFederal-Mogul Aftermarket.Barrie says that he takes awayfond memories of colleagues
and clients, many of whom are now firm friends. He saysthat he was blessed and fortunate to cultivate great rela-tionships and friendships, whilst being associated withfantastic brands such as Ferodo, Payen, Champion, etc.,all at the pinnacle of their segments. Barrie also experi-enced the inevitable cycles of the industry, and says thatit was fascinating to watch as the wheel turned, always tocome back to its original position; from diversification toconsolidation, from franchises to owned outlets, fromnational warehouses to regional depots, from acquisitionto divesting, and so on. Barrie says that he felt it was timeto move on and to look for new challenges, and to basi-cally be master of his own destiny. He has many innova-tive ideas and concepts that he needs time to develop, but
assures us that he is not entirely lost to the automotiveaftermarket, having agreed to do some consulting workfor companies keen to leverage off his experience andknowledge of the market. He is optimistic about the
future of the industry, and hefinished the interview withABR with a compliment toFederal-Mogul and its CEO,Malcolm Perrie, whom hedescribes as a great leader.
Norman Dyer has been withMidas, in various capacitiesand roles, his entire workinglife. This testimonial fromGillian Whitehead, now atCape Parts Distributors, saysit all,
“I have been lucky enough to have known Normansince 1997. Having worked with him and for him inthe Midas camp and later as opposition, for a shortwhile, he has always been a true gentleman. Normanhas taught me that hard work never killed anyone.He always gave you the impression that he had thetime to talk to you and always offered sound advice, ifasked. A perfectionist in many ways, you didn't oftenget a job signed off the first time, in fact I can onlyrecall that happening to me once. There was alwayssomething that wasn't quite right, be it a full stop, column or comma. He was always upfront and honest and expected the same from everyone he didbusiness with. To a true legend of the motor trade, Iwish him a happy and healthy retirement. Watch outfor him on the golf course, that handicap should comedown a touch.”
Au revoir to two stalwarts of the automotive aftermarketGM 363 Asset SaleApproved by U.S.Bankruptcy Court
General Motors achievedanother milestone in itsreinvention early in July2009 when Judge Robert E.Gerber of the U.S.Bankruptcy Court for theSouthern District of NewYork approved the sale ofsubstantially all of GeneralMotors Corporation’s assetsto NGMCO, Inc., an entityfunded by the U.S. Depart-ment of the Treasury. Inconnection with the closingof the sale transaction,NGMCO, Inc. will changeits name to General MotorsCompany and continue tooperate under GM’s historiccorporate and sub brands.The approval marks anotherstep toward the launch of anindependent new GM. Thenew company will acquireGM’s strongest operationsand will have a competitiveoperating cost structure,partly as a result of recentagreements with the UnitedAuto Workers (UAW) andCanadian Auto Workers(CAW). The new GM willhave lower leverage and astronger balance sheet,which when combined witha lower break-even point,will allow it to reduce itsrisk, operate profitably atmuch lower volume levels,and to reinvest in the busi-ness in the key areas ofadvanced technology andproduct development. GM’ssubsidiaries outside theUnited States will beacquired by the new compa-ny and are expected to con-tinue to operate withoutinterruption.
Good news at Suzuki Auto SA continuesExactly 12 months after entering the South African market, Suzuki Auto South Africa (SASA) can look back on achallenging but satisfying first year in one of the toughest, most competitive new car sales environments in theworld. The company officially commenced local retail operations in June 2008, following a decision by the SuzukiMotor Corporation in Japan to launch a range of Suzuki passenger cars and sports utility vehicles in SA. A dealernetwork of 18 outlets initially offered the advanced Swift compact hatchback, and the SX4 lifestyle hatchback, fol-lowing the simultaneous launch of both models to great acclaim from the SA motoring media. In September 2008,SASA added the Grand Vitara SUV and the Jimny compact 4x4 to the Suzuki line-up locally, allowing it to com-pete in the highly popular leisure vehicle sector, while also broadening the overall appeal of the brand. After its firstfull sales year, SASA has been able to report a total volume of 4 393 units for the rolling year June 2008 to June2009. During that period, Suzuki sales grew by 35 percent – a significant achievement against the backdrop of a29 percent slump in passenger car sales over the same period. Despite the contraction of the world economy, andthe resultant slump in vehicle sales globally, including SA, the local dealer network has also expanded from the orig-inal 18 outlets to 23 dealerships in June this year – a growth of 28 percent.
W h a t ’ s t h e B u z z ?
A u g u s t 2 0 0 910
Secure your future with new business opportunities at BFOE 2009Although the world has gone through massive economic change, this change presents a positive opportunity for new business, particularly within theentrepreneurial scope and specifically based on existing business models that deliver solid returns on investment. This is according to Brian Walsh,CEO of entrepreneur.co.za, who will be participating in the 16th annual Business & Franchise Opportunities Expo (BFOE), taking place from 11 –13 September 2009 at the Gallagher Convention Centre, Midrand. While the current global recession has wreaked havoc with employment, the flip-side is that people facing job uncertainty, retrenchment or forced early retirement are turning to entrepreneurship and new business opportunities tosecure their futures. BFOE presents a range of opportunities to aspiring entrepreneurs, from new business ideas to networking opportunities and fran-chise operations that will put you on the path to successful self-employment. Whether you’re an existing entrepreneur or business owner, or someonelooking for a new business opportunity for future success, you’ll find it at the Business & Franchise Opportunities Expo. For further information visitwww.bfoe.co.za or contact Wendy Graham at Thebe Exhibitions and Projects on Tel: (011) 549 8300 or email [email protected].
AA calls for alcohol limit reductionIt is estimated that 50% of people who die on South African roads have a blood alcohol concentration level above 0.05g per 100 millimetres, whichis the maximum legal blood alcohol limit. It is a well known fact that it is illegal to drive under the influence of alcohol or any other drugs. “Alcoholaffects our vision, judgment, balance and reaction time. Because even one drink can affect you, one should not drink and drive at all,” says GaryRonald of the AA. The Automobile Association continues to lobby for legislation regarding the blood alcohol concentration level to be dropped tothe professional driver limit of 0.02g per 100millimetres, which will limit the legal amount of alcohol consumption to less than one beer.
One in every fifteen drivers on the road in the evenings is over the limit. Morning rush hour bumper bashings are likely as a result of the previousnight’s drinking, with the cost of crashes to the economy being calculated at R52 billion per annum. The fallacy of sobering up quickly by gulpingdown a quick espresso is just that, a fallacy. Your liver has the task of dissipating the alcohol in your body, which happens at a rate of 0.02mg perhour. The maximum punishment for drinking and driving is R120 000 and/or six years imprisonment, as well as the suspension of your drivinglicense. Drunk drivers found to be over the limit are arrested, locked up and bundled with other criminals until sober after which they are charged.Evidentiary breathalyser printouts are admissible as evidence in court. If you are involved in a crash while you are under the influence, it will impacton your insurance payouts. Because you have committed an illegal act by driving under the influence, short-term insurers, life insurers and the RoadAccident Fund can refuse to pay out claims. “Drinking and driving should be something that responsible South African drivers see as an absoluteabhorration and flagrant disregard for other road users,” Ronald concludes.
Bridgestone supports breast cancer initiativeA new mobile mammography unit launched by Cause Marketing Fundraisersin association with M-Net and Pfizer Global Health Partnerships will rely onBridgestone tyres to safely travel around Gauteng Province educating womenon the dangers of breast cancer and the value of early detection. The BreastCancer Mobile Unit is a fully equipped mammography facility based on aMercedes Benz Atego 6-ton truck. Maxiprest Tyres in Randburg fitted sevenbrand new Bridgestone R227 235/75 R17.5 tyres. In addition, Bridgestonehas agreed to provide new tyres for the Breast Cancer Mobile Unit currentlybeing used for education when necessary. This unit is based on an Isuzu N-Series 5-ton truck. “Bridgestone South Africa is proud to be associated withthis important project aimed at women in disadvantaged communities, whoare receiving education about the importance of early detection of breast can-cer and who will now be given the opportunity to receive free breast checksin their communities,” said Romano Daniels, Bridgestone South Africa’s gen-eral manager of group marketing and communications.
Philip Herselman, (left) and Wayne Jacobs
Multinational Atlas Copco, an international leader in the design, manufacture and supplyof technologically advanced, quality compressed air systems with superior operationalcapacity, believes that success depends not only on class leading products but also to under-standing what “value” means to the customer. Wayne Jacobs, Atlas Copco BusinessManager - Oil Free Compressor Division shares the company’s policy on interacting withcustomers: “We have made it a priority to understand the driving forces of a customer’sdecision making process and we believe that the customer is entitled to a product propos-al in layman’s terms to assist them in making an informed decision, as we quite often tendto overlook the fact that not everyone is familiar with engineering terminology. AtlasCopco Business Line Manger, Industrial Air Division, Philip Herselman says that AtlasCopco lives up to being a trusted company that offers the correct, most cost effective solu-tion for virtually any application. “We pride ourselves on our reputation for deliveringsuperior products supported by impeccable after sales and technical services. The compa-ny’s entire product range is engineered and manufactured with environmental safety inmind and to the highest possible standards of efficiency. Atlas Copco’s product portfolioincludes an extensive range of stand-alone and integrated air treatment products, refriger-ation, adsorption and membrane dryers, as well as filters and condensate treatment equip-ment to meet increasingly sophisticated application requirements.
ATLAS COPCO –THE COMPETITIVE ADVANTAGE OF UNDERSTANDING VALUE
When you buy a vehiclefrom Forsdicks Sand-ton, you not only getexpert advice, value for
money, and quality of service.Forsdicks Sandton also prides itself onoffering customers a range of comple-mentary products, such as finance andinsurance, all under one roof. Theseservices are geared to make the cus-tomers’ purchasing experience as pleas-ant and as seamless as possible.
Forsdicks Sandton belongs to theMcCarthy Group, which is the leadingmotor retailer in the country. Fromhumble beginnings almost a centuryago, the McCarthy Group has grownto a national company which todayconsists of more than 200 businessunits, representing more than 30 greatbrands. McCarthy’s business spans 12 motor-related industries; fromretailing to import and distribution,car and van rental, fleet management,insurance, finance, e-marketing, auctioneering, heavy equipment, vehicle servicing, parts, and more! TheMcCarthy Group employs over 7 000 people and sold 89 000 vehiclesfrom its 130 dealerships in the 2008financial year. McCarthy operatesaccording to a set value system, whichsets the company apart. The McCarthypromise is to deal in a fair and ethicalmanner and to have open and trans-parent business dealings. McCarthystaff members are also committed toshowing total commitment to theirvalued customers. McCarthy is aproud member of the Bidvest GroupLimited, a highly successful interna-tional services, trading, and distribu-tion company, which is listed on theJSE and operates on five continents.
Forsdicks Sandton may be foundon Rivonia Road across the wayfrom the Wedge Shopping Centre
A series of articles onForsdicks Sandton
Choosing the right model and make of car is important. Equally important is fromwhom you buy.
Forsdicks Sandton has a dedicated Approved UsedBMW Department and the team of sales executivesinvites customers to experience the offering of superi-or used vehicles, all pre-tested to ensure they adhere
to the strict BMW quality standards. Only aftercompleting rigorous testing to ensure that an
Approved Used BMW adheres to BMW’s qualitystandards, will the vehicle be made available forsale to the public. Every Approved Used BMW is
sold with a one year/25 000 km balance onMotorplan, which can be renewed to a maximum
of seven years or 200 000 km. The enduring qualityof an Approved Used BMWs are guaranteed by theBMW Quality Check reconditioning and prepara-
tion commitment, being thoroughly checked toBMW’s exacting standards, with any faultscorrected before the car is displayed for sale.This is done by BMW trained technicians,
using genuine BMW parts.
Neil Turner, Dealer Principal of ForsdicksSandton
The busy Forsdicks Sandton Service Departmentruns effortlessly like a well-oiled machine with high-ly trained BMW technicians attending to the cus-
tomers’ vehicles’ advanced technology. ServiceManager Wilfried Huyghebaert, supported by hisdedicated service team, is at hand to tend to cus-
tomers’ every need.
Friendly and effi-cient new vehicle
sales consultants offercustomers the bestservice and advice.The team invites
customers to pop infor a chat and a cup
of coffee.
Forsdicks Sandton geared forCustomer Satisfaction
Focus o n F o r sd i c k s
12 A u g u s t 2 0 0 9
C o v e r S t o r y
14
Powertech has five operating divisions, comprising Cable,
Transformers, Battery, Industrial and System Integrators Groups,
encompassing a large number of individual operations which spe-
cialize in the manufacturing and delivery of world class products,
services, expertise and solutions to address diverse needs for elec-
trical and power equipment in South Africa and beyond.
Powertech was founded in 1978, and has experienced consistent
and sustained growth, both organically and by acquisition, in the
intervening years.
The previous paragraph is lifted from the milestones webpage of
Powertech and serves as a perfect introduction to ABR’s cover
story, which is about the Willard Batteries brand, one of two
exceptionally strong brands in the Powertech Batteries stable.
Willard Batteries meet automotive OEM, aftermarket and export
markets’ and industrial needs for high-quality lead acid batteries,
whilst sister companies Battery Technologies and Rentech spe-
cialise in standby and solar panel applications. Another associated
battery company, Dynamic , is a focussed exporter to the U.K.
but for the purposes of this cover story, we shall focus mainly on
the Willard Batteries brand but also on renowned stable-mate
Sabat. Willard Batteries and Sabat are successful examples of the
aforementioned acquisition strategy, having been acquired in
1981 and 1998 respectively, both serving the automotive market,
but with distinct brand identities. Willard Batteries additionally
services the varied mining and industrial markets as well as the
more traditional and conservative automotive consumer, whilst
Sabat has positioned itself as the battery for the fast moving
younger set. This dichotomy is reflected in the brands’ respective
histories and in the distinguishing marketing campaigns.
Sabat Batteries was established
in1967, with its first factory in
Simmonds Street, Johannes-
burg. In 1971 founder Tim
Woolcott decided to put Sabat
firmly on the map via sponsorship of
motorsport, and Sabat quickly became
recognised through a vibrant and well-
orchestrated campaign on TV, radio and
print media – SABAT racing with its dis-
tinctive red, white and black colour
scheme was soon top-of-mind amongst
the consumers, and the SABAT brand
quickly became known as South Africa’s
Fastest Moving Batteries and the orange
power units becoming the battery of
choice in Wesbank Racing. This legacy
resulting from its motor racing sponsor-
ship lasted some 35 years.
Today, Sabat builds its popularity as a
fun, outdoor, lifestyle brand with enthu-
siasts such as motorcyclists and jet-skiers
as well as through meeting the needs of
the “do it for me” generation through
mobile fitment and the innovative use of
the highly visible SABAT Minis and the
vibrant SABAT business reps, who are
attention-grabbers at many events and
functions. Sabat joined the Powertech
stable in 1998, its acquisition being part
of the Powertech expansion strategy.
Willard Batteries out of Powertech Batteries
– A Thoroughbred from a Leading Stable
Power Technologies (Pty) Limited is a wholly owned subsidiary of Altron (AlliedElectronic Corporation Limited), focused on delivering advanced technologies forthe creation, management, distribution, storage and use of electricity across indus-tries. The company’s core businesses include the reliable delivery of high qualitytechnical equipment, support and engineering expertise to support demanding clientrequirements across a range of specialist applications.
Willard Batteries started
trading in 1954,
under licence to ESB,
America, concentrat-
ing initially on the
manufacture of automotive batteries, and
gaining an enviable reputation for excel-
lence in product quality. 1966 saw the
introduction of industrial batteries, and
the manufacture of motive power and sta-
tionary batteries followed in 1967.
Willard Batteries was acquired by
Powertech in 1981, becoming in the
process a 100% South African owned
company, and attaining a unique position
in the domestic battery manufacturing
arena by becoming the first South African
manufacturer to be awarded the Quality
Management System 0157 Part II listing
for the automotive production facility,
and later the industrial operation. In June
1988 this was changed to the SABS ISO
9002 quality accreditation, to be followed
by all the important quality ratings,
including the ISO 14001 and OHSAS
18001 approvals, the Ford Q101 rating,
the VDA6 rating, and the ISO/TS
16949:001 rating. Little wonder that
Willard Batteries is known as a secure,
highly reliable and reputable brand.
A u g u s t 2 0 0 9
C o v e r S t o r y
Hybrids, electric vehicles,
fuel cell technology, and
even more esoteric means
of propulsion are the
flavour of the month.
These terms are on everyone’s lips and the
debate is heating up, faster than the plan-
et, as to which technology will come up
trumps in being the torch bearer for
human mobility in the future. This well
advanced dialogue may be a little ahead of
its time, but it definitely is not to be
sneezed at, because the stakes are high and
the need for reducing carbon dioxide emis-
sions is of critical importance.
The noble drive to clean up our planet is
taking place as you read this, in many
research and development laboratories
around the world, and the race is on to eke
out a technological and competitive
advantage over rival labs, as the automo-
tive industry seeks out a greener world,
and to move away from its position as the
whipping boy for all the world’s environ-
mental ills. The good news is that this will
all come to pass sometime in the future,
and Willard Batteries is leading the way in
environmental awareness through its long-
established green initiatives and its com-
mitment to recycling as it plays a key role
in education and consciousness. However,
the humble 12 volt automotive battery
(which incidentally is a 98% recyclable
product and so is only a bit player in the
CO2 villain stakes), has still a long way to
go before it reaches the end of its lifecycle.
It will continue to play a crucial role in the
electrical needs of the automobile for
decades to come. The internal combustion
engine will remain the dominant means of
propulsion for another 10 to 15 years, and
taking into account that our car parc is
north of the 12 year average, simple arith-
metic tells us that the battery as we know
it is going to be around for another three
decades at the minimum. Therefore it
comes as no surprise that Powertech
Batteries continues to develop its manufac-
turing activities in its plant in Neave
Township, Port Elizabeth.
Production takes place at the self same
location where it all started for Willard in
1954, and those who were involved in
those days must be looking on with pride
and amazement as to how things have
developed. The production line has had a
significant revamp, and when the facility is
fully commissioned by the end of the year,
it will have a capacity of some two million
batteries per annum, and already it can
boast of being a cutting edge manufactur-
ing unit that will not be out of place in any
country of the world. Interestingly, this
plant has been in the planning stages and
on the drawing boards for quite some
time, but Powertech Batteries’ manage-
ment was assessing the “tipping point” in
South Africa’s car parc before going ahead
with a full overhaul of its production line.
This was because the calcium-calcium sil-
ver plus battery (see following story for the
technical information) is ideally suited for
the modern motor vehicle built from
around 1995, and Powertech Batteries was
waiting for the average car parc to reflect
this reality. ABR had the good fortune to
be allowed to tour this facility and can
report back that the Powertech factory in
Port Elizabeth reflects the true South
African spirit of combining imported state
of the art technology with good old South
African ingenuity and know-how, marry-
ing automation with the human touch,
and producing a world class battery effi-
ciently and with passion and pride.
Hannes Viljoen, Chief Operating Officer ofPowertech’s manufacturing facility
15
Lead smelting may be centuries old, butit remains a dramatic sight
Newly coated plates manufactured in acontinuous process to tight tolerances
This three in one operation reflects the ingenuity behind the process
planning
Staying Positive
A u g u s t 2 0 0 9
The Calcium-Calcium Silver PlusBattery’s Technical FeaturesPowertech Batteries’ Port Elizabeth plant manufactures both Willard and Sabat
batteries. Previously, the aftermarket batteries manufactured at this facility were
defined as hybrids, i.e. having one calcium plate and the other plate being anti-
mony based alloy. The latest generation calcium-calcium silver plus batteries
have both plates coated with calcium, which equates to a high performance bat-
tery with a higher charging rate and a battery that needs minimal maintenance
and under normal conditions will never need topping up with water. With the
electrodes now being manufactured in a continuous process to much closer tol-
erances, together with tamper-free caps, the battery has the benefit of never
requiring maintenance by the motorist.
SIGNIFICANT TECHNOLOGICAL FEATURES INCLUDE:
• Calcium –silver positive grid alloy.
• Expanded metal technology plates on both positive and negative electrodes. The electrodes are now made in a continuous process
to much closer tolerances which has resulted in improved quality.
• A new patented positive Calcium-silver grid alloy for improved corrosion resistance.
• Improved technology and equipment for curing provides much stronger electrodes.
• Assembly of products on new automated assembly lines for improved consistency and product quality.
• Tamper proof plugs.
• Water consumption is reduced even further with the use of calcium alloys. No topping up with water is required during the life-
time of the battery under normal operating conditions.
• Improved self discharge characteristics. The use of calcium alloys allows for a longer shelf life compared to hybrid batteries.
• A high performance battery putting out high Cold Cranking Amps.
• Low self-discharge provided there is no electrical drain on the battery.
C o v e r S t o r y
A u g u s t 2 0 0 916
A thoroughly modern production line
Powertech Batteries combines
automation with the human touch.
Robots are used, but only in cases
where efficiency demands it
C o v e r S t o r y
17A u g u s t 2 0 0 9
Adding Value to the Customer BaseThe Powertech Batteries automotive sales team recently visited the
upgraded manufacturing facility in Port Elizabeth. Thirty Business
Representatives and seven Regional Managers had the opportunity to witness
the manufacturing process of the new calcium calcium silver plus product.
Alpheus Hatjevina from Windhoek, Namibia, said “It was amazing to walk
through a fully automated plant, and watch the ‘intelligent robots’ perform-
ing”. The visit is part of an ongoing programme to empower the members of
the sales team through practical and theoretical training to build and main-
tain professional levels of product knowledge. The “order-taking” mentality
of days gone by has been replaced by a focus on adding value to the customer
base. Many of Powertech Batteries’ experienced Business Representatives
have received awards for 20 years service and have developed strong relation-
ships with their loyal customers. Business Representatives have a fixed sched-
ule which requires calling on their customers on a regular basis. This often
translates to travelling 10 000 kilometres or more per month in order to
reach all customers in outlying areas. A dedicated outsourced delivery fleet
follows the representatives to complete the prompt sales and supply process.
All customers are GEO coded on an electronic mapping system and are
prescheduled for delivery. Powertech Batteries is also becoming known for
the vibrancy and high visibility of some of the Sabat business representatives
in particular. Cheryl and Heather from Cape Town spell it out, “We are
proud of our brand and enjoy representing Sabat in our branded Mini
Coopers – Remember It Starts with Sabat!” Itumaleng from Gauteng con-
curs, “I believe to be successful as a Business Representative means not hav-
ing fixed working hours. We have training sessions after hours and are happy
to participate in Super-Saturday promotions. These are great opportunities to
add value and to strengthen relationships with our customers.”
Murray LongMarketing DirectorPowertech Batteries
Corné StrydomGeneral Manager
Automotive, PowertechBatteries
F r a n k l y S p e a k i n g
This new combination of Fiat and Chrysler has
reportedly emerged as the world’s sixth-
largest vehicle manufacturer, sandwiched
between Honda in fifth position and
Hyundai/Kia in seventh. Chrysler Group LLC
will retain a number of former Chrysler man-
agement personnel in key positions, but they are
to be joined by three executives from the Fiat
organization. Richard Palmer will take up the
position of Chief Financial Officer, Pietro Gorlier,
formerly at Fiat’s Case New Holland agricultural
equipment subsidiary, takes over as Chief Executive
Officer of the parts and customer services portfolio, and
Gualberto Ranieri, also formerly with CNH, will head up the
communication function. In contrast to “old Chrysler’s” policy of
shared management accountability, each of the individuals making
up the executive group in the new company will be given full prof-
it and loss responsibility for their respective areas of responsibility.
One thing that is quite clear from these developments is that the
“New Chrysler” will be a very different animal to its predecessor.
Fiat has, in its own right, been absent from the US market for
twenty years, but now finds itself in control of a conglomerate
that will be selling a substantial percentage of its products in
North America. The new management would be well advised to
carefully study the circumstances surrounding the failure of the
former DaimlerChrysler alliance. Some analysts believe that the
Daimler and Chrysler cultures never found an entirely comfort-
able “fit”. With the benefit of hindsight, this is understandable,
given that the German partner’s history was steeped in high-tech-
nology, luxury vehicle manufacture, while the American partner
had traditionally participated in a massive volume market domi-
nated by value considerations. Ultimately, this proved problemat-
ic as Chrysler faced escalating fuel prices and increased foreign
competition, which impacted negatively on both market share
and the profitability of the entire group. Suggestions have also
been made that Mercedes-Benz was very selective in the technol-
ogy it transferred to Chrysler, not wishing its European
brands to be too closely associated with lower price
positioned Chrysler, Dodge and Jeep products.
Fiat should not have the same hang-ups over sta-
tus, as it is very much a volume and value-ori-
ented manufacturer in its own right, but it will
need to fully appreciate the damage potential of
getting its US market strategy wrong. Fiat, like
Daimler, saw control of Chrysler and a substan-
tial participation in the North American market as
its entrée to considerably increased global volume
throughput, but much customer reorientation will be nec-
essary before US buyers fully embrace European design philoso-
phies. Issues such as the American preference for physically larger
vehicles, and lack of interest in diesel engine options, will need to
be tackled. American manufacturers have avoided full-scale com-
mitment to these trends in the past, always preferring to build
dedicated products for their home market. There are early signs of
some change in direction, however, with Ford directing consider-
able attention to the latest European-sourced Fiesta, and General
Motors’ rolling out plans to build a new “compact car” in the US.
Market research has reportedly revealed some US consumer cau-
tion towards the new Fiat-Chrysler alliance. One California-based
consultancy found that 47% of its respondents did not expect
Fiat-inspired products to sell well, while 43% thought that,
notwithstanding the bankruptcy protection process and Fiat buy-
in, Chrysler would still eventually fail. More positive responses
came from 19% who said they would welcome Fiat cars in the
US, while 13% expected the Fiat-Chrysler alliance to succeed.
Although it has not yet been officially confirmed, the first Fiat
product anticipated to appear in the US will be the Nuova 500
minicar model, while the next-generation Chrysler Sebring is
expected to share a platform with Alfa Romeo’s Milano. The only
certainty is that the people controlling the New Chrysler have a
lot of hard work ahead of them!
by Frank Beeton
Dodging the bullet, or avaliant attempt?
On Wednesday, June 10th, 2009, Chrysler Group Limited Liability Company, or the“New Chrysler”, first saw the light of day. This new company was formed to take overselected assets from the “old” Chrysler LLC, which had entered Chapter 11Bankruptcy Protection seven weeks earlier. As widely anticipated, the Fiat Group isto play a pivotal role in “New Chrysler”, providing management expertise, resources,technology and worldwide distribution. Highly significantly, Fiat S.p.A’s CEO SergioMarchionne has been appointed Chief Executive Officer, and the Italian company hasimmediately acquired a 20% equity holding, which is set to rise progressively to 35%as the terms of a predetermined co-operation agreement are fulfilled. The balance ofthe new company’s shareholding is held by the United Auto Workers’ Retiree MedicalBenefits Trust (55%), the US Treasury (8%), the Canadian Government (2%), and thenine-member board of directors will be populated by nominees from Fiat (3), the USGovernment (4), the Canadian Government (1) and the UAW (1).
A u g u s t 2 0 0 918
A u g u s t 2 0 0 9
L u x L i t e
PETER’S SOAP
BOX
Peter Mather has worked in the
field of human capital develop-
ment in the motor industry for the
last twelve years and has enjoyed
great success in facilitating sales
and leadership programmes within
the industry.
I’m back and true to say I missed all your feed-back on my column which is why I enjoy somuch writing in the soap box. This month Iwant to focus on that topic we have longbandied around in this country and one that
the editor Graham Erasmus is passionate about in thisindustry and that’s SERVICE. More importantly cus-tomer service. The other day I had some guests fromAfrica and I entertained them in a city hotel inDurban and I can honestly say the whole experiencewas quite simply the worst service I have ever beenexposed to in my life. In just under a year thousandsupon thousands of foreign people will be descendingupon our beloved country and as I sat there in thishotel I reflected on how these visitors might react tosimilar type service. My guests were from Tanzaniaand what surprised me most was that they weren’t sur-prised - in fact they explained that they had got usedto it having visited many times. That caused me to askquestions and suffice to say it all boils down to atti-tude. Unfortunately changing attitudes is more com-plex than simply one or two training sessions; howev-er it is possible and having worked specifically in thisarea in the automotive industry for well on 15 years itis now as leaders that we need to invest time andmoney in this area if we are going to deliver betterservice to our customers. Attitude is quite simplyeverything and very little is understood as to whatcauses people to have the attitudes they do. Habit ofthought comes close to some understanding of whereour attitude originates from, however the power ofrepetition in the learning process is without doubt thegreatest trigger to our attitudes. Logically therefore ifwe want to change the attitude of our team members,particularly in sales internal and external, we need touse the same process of repetition to build sustainablepermanent change.
Just a quick note on my concept of networkingin the last column I wrote a couple of monthsago. The response was underwhelming so I guesswe’ll leave it for the time being. If you have anyideas of ways of improving customer servicethen I’d love to hear from you - mail them directto [email protected]. In the meantime if youwould like more you can visit www.s2p.co.za andjoin the ever growing members of the s2p club orcontact me direct on 082 456 8479.
by Peter Mather
SA AUTOMOTIVE WEEK LINKUP GIVES AUTOMOTIVEINDUSTRY CONFERENCE DELEGATES MORE VALUE Delegates to the AIDC’s Automotive Industry Conference 2009 in Port Elizabeth onOctober 7 and 8 will benefit from synergies presented through the AIDC’s partner-ship with South African Automotive Week.
All registered delegates will have
free access to a Business
Match-making programme
and the Trade Show, billed by
NAACAM as the “Premier
Trade Show for component manufacturers
in South Africa”. The Trade Show consists of
up to 200 exhibition booths, occupying
5000m2 of floor space. Exhibitors - pre-
dominantly component manufacturers -
will share the floor with OEMs, mega proj-
ects and government agencies. Among the
large manufacturers who will exhibit are
Mario Levi, Tyco Electronics, Kuul, Ying
Lin Machine Industrial, Robor Precision
Tube, Shield Technologies, National
Instruments, DQS, BASF, Schrader SA
(PTY) Ltd, National Engineering Industries
LTD, Shatterprufe, L & J Tools, VRM, Bel-
Tronix, PFK Electronics, Filteg Solutions,
Precision Press Pty Ltd, BTM, Dorbyl,
Acoustex and Bel-Essex. Delegates will also
be offered the opportunity to accept or
request business match-making appoint-
ments with a database of local and interna-
tional industry role-players. AIDC
Managing Director Barlow Manilal said the
AIDC had opted to incorporate the
Automotive Industry Conference into
South African Automotive Week because of
the synergies provided by a combined event.
“We are excited to play a key role in ensur-
ing that South African Automotive Week
reaches its objectives which include the pro-
motion of investment and confidence in the
South African automotive sector,’’ Manilal
said. “At the same time, we can build on the
solid foundation of the AIDC’s previous
conferences in a collective growth strategy
for the sustainability of the industry.”
Manilal urged delegates to participate in
opportunities presented through SA
Automotive Week to gain optimal value.
“The package established for delegates is
aimed at providing access to information
and business leads that will assist their
organisations to survive and then thrive’’.
The theme of South African Automotive
Week is Navigating the Storm: A Roadmap
to Vision 2020. A specialised match-making
company has been retained for the first time
by an auto industry event in South Africa to
ensure that the meetings are productive.
“We understand that there is a shortage of
both time and resources, and that compa-
nies want value added to an industry event
in the form of structured meetings,” says
South African Automotive Week organiser
Andrew Binning of Inkanyezi Events.
Running from 7 – 10 October in Port
Elizabeth, South African Automotive Week
includes a Trade Show, the Automotive
Industry Conference hosted by the
Automotive Industry Development Centre
(AIDC), numerous networking functions,
site visits and the match-making sessions.
The relevance of the AIDC’s Automotive
Industry Conference is demonstrated by the
support of the sponsors, which includes
Blue IQ (Gauteng Provincial Government’s
strategic invest vehicle to stimulate econom-
ic development), the Eastern Cape
Development Corporation, the Maputo
Development Corridor, Collaborative
Xchange, Safcor Panalpina, Trilogiq and
VWSA. NAACAM’s Annual General
Meeting will also take place after the confer-
ence wrap up in the evening on October 8.
Only by achieving the vision of producing a
million cars a year will the South African
auto industry be able to create and sustain
more jobs, says National Association of
Automotive Component and Allied
Manufacturers (NAACAM) Executive
Director Roger Pitot. This was one of the
main reasons that NAACAM was support-
ing the second South African Automotive
Week.
SAAW, supported by the Eastern Cape
Provincial Government, is the only industry
event endorsed by NAACAM, the National
Association of Automobile Manufacturers
of South Africa (NAAMSA), the RMI
together with the Automotive Industry
Development Centre (AIDC).
To view the programme and to register,
please visit the AIDC’s website at
www.aidc.co.za and follow the links on the
home page.
A u g u s t 2 0 0 922
AIDC Automotive Industry Conference 2009
World class roadworthy testing now in South Africa
Recently, DEKRA Automotive Pty Ltd, a joint venture between DEKRA Inter-national GmbH and WesBank a divisionof FirstRand Bank Ltd, celebrated their official launch and opening of their new flagship branch in Gezina, Pretoria.DEKRA is recognised as one of the world’s leaders in periodic vehicle inspections and industrial safety certification.According to Dr Henni Boudjelthia, Managing Director of DEKRA Automotive Pty Ltd, “The importance of qualityvehicle testing cannot be over emphasised as it plays a significant role in reducing vehicle accidents and human fatalities
on our roads.” DEKRA is a well recognised international brand, established in Berlin in 1925 and currently operates in 27 European countries via 166 subsidiaries and associates. The company is also represented in the USA, Brazil, China and the latestaddition South Africa. The company’s presence in South Africa is aimed at positively contributing to the lives of every South Africanand with the opening of the flagship testing station, which is the first step of many initiatives that DEKRA will bring to South Africa.
“MILLION CARS”VISION MEANS
MORE JOBS
A u g u s t 2 0 0 9 23
AIDC Automotive Industry Conference 2009
Only by achieving the vision
of producing a million cars
a year will the South
African auto industry be
able to create and sustain
more jobs, says National Association of
Automotive Component and Allied
Manufacturers (NAACAM) Executive
Director Roger Pitot. This was one of the
main reasons that NAACAM was support-
ing the second South African Automotive
Week (SAAW), an industry show-case and
think-tank that is being held in Port
Elizabeth in October this year. SAAW is the
only industry event supported by both
NAACAM and the National Association of
Automobile Manufacturers of South Africa
(NAAMSA), together with the Automotive
Industry Development Centre (AIDC).
According to Pitot, it would not be possible
to meet an industry target of 70 per cent
local content without much higher produc-
tion volumes.
Hitting the million vehicle a year mark
would increase employment levels in the
auto industry by “50 to 60 per cent”,
according to Pitot. SAAW chairperson
Alfred da Costa, who has interests in com-
ponent manufacturing, says SAAW 2009
will be a mix of a four-day industry expo, a
“Navigating the Storm: A roadmap to
Vision 2020” conference and networking
opportunities.
International interest from manufacturers
in China, India, Taiwan and Holland
showed that the African market was seen as
being a potential growth area by the world’s
auto industry, he said. He urged local com-
ponent manufacturers to turn this to their
advantage by entering into licence agree-
ments with foreign suppliers wanting to
enter the African and local South African
markets.
Over the next two years, the component
industry would be characterised by merg-
ers, take-overs and a consolidation of sup-
pliers by original equipment manufacturers
(OEMs). The pressure was therefore
intense for suppliers to beef up through
partnerships. – the potential of which
existed through SAAW. The local compa-
nies already had the skills, facilities and
infrastructure in place, and would benefit
from technology. “Original equipment
manufacturers demand that local suppliers
have international licensing agreements in
place. Therefore, having international links
in place is not a choice but a necessity.”
The second bi-ennual South AfricanAutomotive Week takes place in PortElizabeth from October 7 to October10. For more information go towww.saaw.co.za.
“WesBank a division of FirstRand Bank Ltd. and DEKRA International GmbH willinvest R120 million to establish and grow the brand and services locally. Additionallythis partnership will create investing opportunities for more flagship stations in viablegeographical positions throughout the country,” adds Dr. Boudjelthia. Having alreadyacquired and upgraded existing AA Test & Drive Stations, DEKRA will now have anational network of 37 testing stations with plans in place to expand to 40 stations bythe end of 2009, staffed by 300 qualified technicians supporting a range of innovativeproducts and services. “Using the extensive skills and experience of DEKRA, we will sig-nificantly contribute to the upliftment of all employees and to the development of uni-form national operating standards. This will be accomplished by working closely withgovernment and by making available to all vendors – whether they are public or private-ly owned – our in house technical training capacity,” he adds “DEKRA represents morethan just roadworthy testing it is focused on adding value to the motor industry as awhole,” concludes Dr. Boudjelthia.
Anybody who had suspected that the Chinese eco-nomic growth fire had been rained out by the glob-al financial melt down and subsequent world wideeconomic recession must have been awoken with ajolt at the news that new vehicle sales in therehad risen at an annual rate of 48.5% in June2009. Evidently, this came on the back of a stimu-lus package which cut vehicle sales taxes and pro-vided subsidies in rural areas, and focussing onsmall pick-ups. Car sales that month reached 872900 units, with total new vehicle sales touching1140 000 units.
A u t o T o p i c a l
A u g u s t 2 0 0 924
While this may provide a bigtick for centrally plannedeconomies, where vehicledemand is what it is because
Beijing said so, and few of the 20 millionindustrial workers laid off over the ChineseNew Year would have featured on the war-ranty cards, this news came in only daysbefore two major announcements regard-ing the South African market, which relatedirectly to a strategic threat that scenarioplanners have been imagining for sometime and which may now well be material-ising in the local motor industry’s ownbackyard.
Not only China but also India is in themidst of a massive urbanisation strategywhich will not terminate within 20 years.China has 50 large cities, housing 500 mil-lion people and plans to build50 more to house 600 millionmore people by 2030. Less cen-trally planned, but with thegreater imperative of a rapidlygrowing population, India isalso on a colossal urbanisationexpansion curve. As the twomost populist nations in theworld urbanise, the bulk of thepopulations there will not beable to support themselves bymeans of subsistence farmingand will enter the marketeconomies of those countriesand the world, and want to pur-chase rather than grow food.The urban settlements them-selves will require huge quanti-ties of raw materials, rangingfrom cement, bitumen, copper,and steel, aluminium to glass,plastics and rubber products.The table alongside shows thatthese economies, alongside theworld’s traditionally largestautomotive producing econo-mies, are already important pro-ducers of, and even moreimportant consumers of food
stuffs minerals and energy. These levelscan only increase if the urbanisation plangoes ahead.
Where will the required natural resourcescome from? There are really only twopotential resource locations of sufficientsize to augment existing raw material pro-duction levels, namely South America andAfrica. Of the two, Africa has the greaterlevel of unexploited reserves, and the big-ger surface area of arable land.
But Africa needs huge levels of infrastruc-tural development in order to get primarysector products to its ports and onward toChindia. Demand for its primary outputscould provide the lift that Africaneconomies have desperately sought for thepast 200 years of global industrial output
growth. This is the most tangible promisethat has ever beckoned the continent andits leaders.
The announcements during July thatChinese automotive manufacturer Chanaand Indian manufacturer Mahindra bothintend setting up production facilities inSouth Africa cannot therefore be much ofa surprise. Exploiting raw material wealthmust translate into vehicle demand inAfrica growing beyond recognition overthe next few decades. Anybody wanting atoe-hold on the continent is likely to beattracted to South Africa first – in fact,that is the main reason why the countryalready has 32 OEM’s contesting about0.6% of the world’s automotive demand.Stand by for more OEM’s, some bearingsaffron on a China plate.
by Tony Twine,Senior Economist,Director –Econometrix (Pty)Ltd
A Crossword Puzzle
A u g u s t 2 0 0 926
A series of articles on the rise of the Chery automobile
Chery products are now available in
more than 70 countries and regions,
including South Africa, and the com-
pany has nine manufacturing facilities in seven
countries. In addition, Chery also has estab-
lished a number of strategic partnerships with
the likes of American Quantum, Johnson
Controls and PPG. In May, Chery Auto sold
its 1.5 millionth vehicle since its inception in
1997, making it one of the fastest growing
vehicle manufacturers in the world. The com-
pany achieved this significant milestone less
than two years after it sold its one millionth
vehicle.
Chery Auto is looking to sell 419 000 vehicles
during 2009, which will be an 18% increase
on last year’s sales. The company has already
launched five new models this year that includ-
ed a Chery J5 hybrid, as well as the G6, a new
range of high-end vehicles. “On a global front,
Chery will introduce 25 new models in the
next five years,” said Soso. “Not only has
Chery achieved the status of the best-selling
domestic car brand in China, it has also
attained international standards for the quality
of its manufacturing processes.”
The company has for this purpose introduced
a “Brand, Quality, Service” strategy, and has
also invested heavily in its independent R&D
facilities.Statistics released by the People’s
Republic of China’s General Administration of
Customs shows that China exported com-
modities worth US$1428.5 billion during
2008, increasing by 17.2% year on year. In the
process, China has become to biggest supplier
of imported commodities to the US, Japan and
Europe.
Chery Auto was China’s top automotive exporter during 2008according to the country’s recently released Top 200 Exporterslist. “As the only auto manufacturer on the list, Chery Auto is def-initely the pioneer of Chinese automakers going abroad,” said Brett
Soso, managing director of Chery SA. “The company has a very sound export strat-egy and as a result exported 135 000 units during 2008, accounting for 50% ofChinese passenger vehicle exports and claiming the top spot for the sixth consecu-tive year.”
CHERY IS CHINA’S TOPAUTO EXPORTER
h e a l t h c a r e
An update on Moto Health Care
A u g u s t 2 0 0 928
One such challenge is the usage of old
membership cards by our members,
despite the Scheme having done a total
card reprint at the end of 2008. The risk
that our members run by using old mem-
bership cards is that their policy options
may have since changed from their previ-
ous options and they may claim for bene-
fits that are not covered within their new
policies. The other risk is that members
may be submitting their claims to the dis-
continued PO Box in Randburg that will
result in claims being paid late or rejected
for them being outside of the 4 month
claim submission period. In light of this,
Moto Health Care requests that all mem-
bers that are using their old membership
cards discontinue this practice immediate-
ly and contact MMSA (0861 000 300)
with their membership number as listed
on their old cards, for the re-issue of
updated cards. Members that have recent-
ly changed their postal addresses also need
to notify the Scheme of these changes in
order for their correspondence to be for-
warded to the correct place of contact.
One of the areas that need ongoing atten-
tion is the maintenance of Moto Health
Care’s data base on MMSA’s system. The
importance of an accurate data base can-
not be stressed enough. Since most trans-
actions such as premium payments and
allocations, claims payments, pre authori-
zations are based on the membership pro-
file on the administrator’s system, it is of
paramount importance that Moto Health
Care is aware of all staff movements and
changes such as dependant additions/ter-
minations that occur. Failure to notify the
Scheme’s administrators of these changes
will result in unnecessary delays in claims
payments, pre authorizations, access to
benefits and incorrect billing statements.
Individual members/pensioners may con-
tact the Scheme’s contact centre directly to
update their details whilst employer
groups have access to a dedicated Internal
Services Consultant that would effect all
member movements authorised through
the payroll or HR department of the
group. MMSA have also created an inter-
active website for employer groups to
effect their own changes on prior to them
receiving billing statements from the
Scheme. This facility is only available to
employer groups or individual
members/pensioners. Members that be-
long to groups need to make all of their
changes through their HR/payroll depart-
ments. By the way, when a group is spo-
ken of in this context it refers to a group of
employees working for the same employer.
2009 has seen a number of changes to the
benefit design of Moto Health Care.
Members are urged to familiarise them-
selves with the benefits that they qualify
for whilst bearing in mind that even if they
have remained on the same options, cer-
tain benefits have changed. Moto Health
Care has attempted to assist our members
where possible and in certain cases have
allowed them to obtain chronic medica-
tion for the first six months of 2009 to pre-
pare them for the benefit transition. These
cases were treated as exceptions rather than
the rule and the Scheme has duly notified
all affected members that these exceptions
will discontinue shortly. Importantly, for
members requiring chronic medication in
the future, we would ask that they please
check if their policy option does cater for
this benefit and also that their treating
physician contacts MMSA with all the
mandatory details when applying for their
medication registrations/renewals. Should
any of you need more details on what is
required by the Scheme in this regard,
please call our Chronic registration depart-
ment on 0861 000 300. Members of the
Custom and Essential option are reminded
that their day to day cover is managed
through Carecross. The Scheme did face
challenges at the beginning of the year in
terms of Carecross provider availability but
that has been addressed and we have seen a
significant improvement in this regard.
Overall, Moto Health Care continues to
offer honest to goodness value in a market
plagued by legislation requirements, rising
healthcare costs, unscrupulous service
providers and our most recent adversary,
the global meltdown. The Scheme is con-
fident that this temporary setback affecting
our members and employer groups will
subside and that the stabilization of our
industry will create sustained growth for
the Scheme.
It’s hard to believe that six months of the year have already passed with Moto HealthCare being administered by Momentum Medical Scheme Administrators (MMSA). In aperfect world the migration to MMSA will have taken place without hitches and MHCwould have a contented membership. But we do not live in a perfect world and therehave been significant challenges to MHC, MMSA, and members. Whilst there has beena significant turnaround in certain areas of administration notably claims paymentsand service providers’ perception of the Scheme, there are challenges that remainahead of us that we need our members and employer groups to assist us with.
Barry Canning, Chairman Board ofTrustees - MOTO Health Care
m a n a g i n g t h e R i s k s
30
In the July 2009 issue of ABR, Séan Jackson discussed the importance of monitoring
tyre pressures, and the need to give the truck driver the necessary tools for early
detection of tyre problems. Séan now discusses the dynamics around tyre monitoring.
Trucktek has evaluated many tyre
monitoring systems, and after
extensive tests and consideration
of local conditions, has chosen
Actsensor-It! as the most suitable system
for South Africa. Known worldwide as
TPMS this system, after local adaptations,
recognises that the driver is the first line of
defence, with the added benefit that it can
be linked into a control centre, and can be
incorporated into any fleet management
system. Thus the driver and the control
room are always aware of the vehicle’s tyre
pressures, with the option of a dash
mounted monitor or a rear view mirror
clip-on version. Visually the driver is
warned when a tyre pressure variance of
15% is detected, and even if his attention
is somewhere else, a warning beep is sure to
get his attention. Further back up is pro-
vided at control room level. All good and
well, you may ask, but why should a
motorist or truck fleet owner fit an
Actsensor-It! System?
• The contact area of your tyre to the
road is less than 3% of the tyre! It is
therefore critical that the driver
should know the pressure of the
tyres, whether stationary or moving.
• It is far safer to be warned of a slow
puncture before a major catastrophe
or excessive damage occurs.
• A tyre, like fuel, is an expensive com-
modity. Properly inflated tyres pro-
vide greater stability, improved han-
dling and braking, and are less sus-
ceptible to blowouts and tread sepa-
ration.
• Properly inflated tyres extend the
tread life by up to 35%.
• Under inflated tyres increase fuel
consumption and hydroplaning on
wet roads
• Generally 75% of tyres are under
inflated; 20% under inflation has
30% less tread life; 30% under-infla-
tion has 45% less tread life.
• Over inflated tyres decrease road sur-
face contact with resultant poor han-
dling and braking. 20% over infla-
tion has 10% less tread life.
• Where double tyres are used on the
rear of the trucks, LDV’s, vans or
taxis; it is difficult to know if one of
the rear tyres is running below pres-
sure or is even flat, resulting in
expensive damage.
The beauty of Actsensor-It is that it is
easy to fit and extremely rugged, having
survived extensive trial runs into Africa
without one failure. The tyre sensors
may be fitted to the outside or the inside
of the tyre valve, and when fitted exter-
nally theft proof sensors are available.
Depending on the type of monitor cho-
sen, there are no wires or aerials visible.
The small lightweight monitor provides
easy read alternate pressure and temper-
ature of each tyre with a red LED display
and a “beep” should a tyre become
under inflated, and various models are
available to suit cars, car with trailer or
caravan, buses and trucks from 4 to 32
wheelers. For fleet operators, a special
sender unit is fitted to notify the control
centre within six seconds of any poten-
tial tyre danger, for backup in case the
driver is for some reason unaware of this.
The real clincher is the low price of the
system. When one considers that a truck
tyre can cost anything from R5 000 to
R12 000 and more, and the value of a
full rig can easily exceed one million
Rand, and that serious injury or loss of
life is incalculable, then the cost of
Actsensor-It is extremely cost effective.
Actually, it is a no-brainer for any
responsible fleet operator.
Séan Jackson
It’s been said a million times before that when the going gets tough, the tough get going. This cliché takes on a new reso-nance 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 getgoing. A critical element in this dynamic is the ability to keep costs down, and to ensure that operating costs are keptunder tight control. The first port of call in this endeavour is to protect against theft and misuse. The first port of call inthis endeavour is to protect against theft and misuse. A close second is thinking smart and keeping costs down. ABR hascommissioned Séan Jackson of TRUCKTEK to give our readers a series of tips on Managing the Risks.
Tyre Monitoring
A u g u s t 2 0 0 9
w e i g h t y i s s u e s
A u g u s t 2 0 0 9
PUBLIC TRANSPORT – Is there some hope, at last?
When newly-elect-
ed President
Jacob Zuma
announced the
composition of
his cabinet of
ministers on May 10th, 2009, there may
just have been some cause for celebration
among South Africa’s long-suffering com-
muting public. The choice of the former
Premier of KwaZulu-Natal, Sibusiso
Ndebele as Transport Minister, with promi-
nent long-serving member of the SA
Communist Party, Jeremy Cronin, as his
Deputy, promised to bring some measure
of life to a ministry that, during the fifteen-
years of democratic government in South
Africa, has promised much, but delivered
very little.
Cynics might say that it has served either as
a repository for people needing a few years’
peace and quiet on their journey out of the
political mainstream, or as a temporary
“holding station” for the most recent
incumbent, Jeff Radebe, who, while breath-
ing the rarified air of the ANC’s top policy-
making echelons, clearly felt less comfort-
able dealing with the real issues clouding
the delivery of efficient transport solutions
in South Africa.
S’bu Ndebele’s legacy in KZN includes
what is, without doubt, the country’s most
effective provincial road traffic law
enforcement environment. While much of
the credit for this must go to the Province’s
tireless Manager of Road Traffic, John
Schnell, a nod must also be given to
Ndebele for creating the space in which
Schnell could do his job effectively.
It could not always have been easy, given
the generally negative perceptions held by
most South Africans towards traffic law
enforcement, and their inevitable propen-
sity to brand any evidence of effective
intervention as a mixture of residual
racism, victimisation or over-zealousness.
This situation has not been helped by the
well-documented tendency of many traffic
officers to pursue self-enrichment through
the offering of “alternative” fine payment
facilities to their victims. Cronin, as the
erstwhile Chairman of the Parliamentary
Portfolio Committee on Transport, has
displayed considerable knowledge of, and
interest in, the public transportation field,
plus a praiseworthy tendency to get his
hands dirty, having played a leading role in
unraveling the unsavoury saga when the
Department of Transport reneged on its
bus subsidy commitments towards the end
of 2008. He also appeared at the South
African Bus Operators Association confer-
ence, held in Pretoria during February,
2009, to make a presentation on the gov-
ernment’s new National Land Transport
Bill. This document, which had passed
Parliamentary scrutiny the previous
month, succeeds the National Land
Transport Transition Act of 2000, and sets
out the policy framework for legislation
governing public transport going forward.
Cronin’s presence at SABOA’s conference,
and his forceful intervention into the sub-
sidies debacle, were positive signs that he is
prepared to engage with the operating
community, and hopefully contribute to a
more healthy relationship between bus
operators, and the Department of
Transport, following a long period where
these interest groups seemed to be perpet-
ually talking past each other.
Any new-found dynamism within the
department will be sorely needed, because
it has some substantial issues to confront.
Cronin’s presentation on the NLTB point-
ed out that the new Bill recognised the fail-
ure of the NLTTA to effectively address
issues such as Taxi Recapitalisation, the
revitalisation of the suburban passenger
rail networks, the resolution of the operat-
ing permit and tender-for-route questions
that have dogged bus operators for years,
and the broadening of public transport
subsidization.
The efforts of the new Department of
Transport hierarchy will have to be direct-
ed at addressing this backlog, but will be
further complicated by the ongoing argu-
ment over the delayed Bus Rapid Transit
system, which is now only scheduled to
begin operations in Johannesburg at the
end of August. The lack of meaningful
prior consultation with the increasingly
militant minibus taxi industry, and Jacob
Zuma’s seemingly well-intended interven-
tion to stave off a crippling taxi strike just
before the General Election have left a
problematical legacy that will take skilful
navigating. Early signs have been promis-
ing, with the new Minister willing to
engage personally with the multifarious
organisations purporting to represent the
minibus taxi industry, and advocating a
direction towards a broader and more
structured role for this ill-disciplined mon-
ster in the formal transportation milieu.
We hope that he is successful, or the slight
illumination at the end of the tunnel may
just turn out to be the Gautrain approach-
ing, at very high speed!
by Frank Beeton
32
South Africa’s public passenger transport situation has been a hotly debated subject forsome time. This reflects its nature as a highly contentious issue, and the generally-heldperception that real solutions to its very deep-rooted problems are not yet evident. Onetheme that has been consistently central in many discussions has been the lack of direc-tion coming from central government, and the seeming unwillingness of our political mas-ters to grasp the fundamental nettles necessary to effect meaningful transformation.The emphasis placed on service delivery during the run-up to, and since the 2009 GeneralElection may, hopefully, spur the new ministerial incumbents into early action.
Participants in any economic activity need to keep tabs on their incomes and outflowsin order to optimise the benefits that they can derive from their economic positions.Economists recognise four major groups of inputs into any productive process, andlabel these as land, labour, capital and entrepreneurship. The various ways of com-bining these four groups of inputs create economic systems of sometimes great andsometimes disastrously wasteful efficiency and effectiveness. Inevitably, there is atussle over who should command the resources and determine the rate at which theyare rewarded as economic inputs, that tussle is called politics.
T o n y ’ s t a k e
A u g u s t 2 0 0 9
Because of the fact that many large
organisations, including general
government and many parastatal
corporations, negotiate wage set-
tlements in the months around mid-year,
the South African winter is now readily
associated as being the time when employ-
er and employee’s toys start flying out of
the cot, with apparent disregard for such
niceties as affordability, equity, survivabili-
ty and economic prospects of a longer
term than beyond the next pay day. Along
the lines of the trench warfare of WW1,
both sides dig into negotiating positions
that are quite deliberately more favourable
to their own sides than the likely settle-
ment point, which is left alone in no man’s
land until both sides are forced to
approach it because of the attritional dam-
age that they have succeeded in inflicting
on the other side, but at considerable cost
to their respective selves. Very often, the
combatants are merely representatives of
greater interest blocs – company directors
and managers represent the interests of
entrepreneurs (shareholders), suppliers of
capital (shareholders and creditors) and the
owners of rights to whatever natural
resources may be involved in the produc-
tion chain on the one side and representa-
tives of labour interest groups on the other.
These generals proceed to slug it out, not
always with either the short or long term
benefit of their respective armies at heart.
Many of the chiefs of staff are paid to be
there to fight, not to make peace.
Thus, in the winter of 2009, the variousnegotiators arrived at a point of negotia-tion departure where the rate of price infla-tion had leapt alarmingly on the back ofmainly absurdly escalating oil and foodprices just after the 2008 round of settle-ments, but which had dissolved under theweight of their own relentless greed andstupidity, an event that has become knownas the global financial melt-down andensuing recession. Labour will alwaysbring to the bargaining table memories of
periods of rapid price rises, and the doubledigit inflation confronting South Africanconsumers a year ago has clearly been apartial, although outdated, link to the dou-ble digit demands for remunerationincreases during the winter of 2009. Theaccompanying graph shows the rise and fallof consumer prices moving into andbeyond the third quarter of 2008. But, italso shows the collapse of the rate of theexpansion of producer prices, ie the pricesof goods as they leave the factory gates herein South Africa, or enter the countrythrough the customs sheds at our ports.Across the five primary and secondary sec-tors of the economy (agriculture, mining,manufacturing, utilities and construction),the basket of prices was scarcely changed interm of its average level between the secondquarters of 2008 and 2009. This collapseof price increases accruing to producers ofgoods came on the back of a rapid slow-down in both the real and nominal rates ofgross domestic product, or the value oftotal production in the local economy.
The real rate of GDP growthreflects production in volumeterms, while the nominal rate ofgrowth represents the change inthe monetary value of that pro-duction.
High positive production growthrates are clearly over for the timebeing. So are periods of rapidoutput price growth. The lever-age of high consumer inflationrates may not have entirely evap-orated, but the fulcrum againstwhich the lever rested, namelyrapid real output growth, hasbeen whipped away by the globalrecession. Apparent labour victo-ries at the negotiating table willhave to be reviewed in a yearstime, to see if all the old jobs atthe new pay rate are still there.
by Tony Twine
ANOTHER WINTER OFLABOUR DISCONTENT
34
Q & A
Roger McCleery asks the questionsSee how many of these 20 Questions you can answer.
by Roger McCleery
Answers on page 39
1 WHO BUILT THE FIRST JEEP IN 1940 FOR THE US ARMY?
2 WHO WROTE “UNSAFE AT ANY SPEED” IN 1965 ATTACKING SAFETY IN THE AMERICAN MOTOR INDUSTRY?
3 WHERE WAS NIKI LAUDA’S FIRST GRAND PRIX WIN ON HIS RETURN TO GRAND PRIX RACING AFTER NEARLY
BEING KILLED AT THE NURBURGRING IN 1976?
4 WHAT DID BMW MAKE BEFORE CARS AND MOTORCYCLES?
5 WHAT MOTOR COMPANY OWNS ROLLS ROYCE TODAY?
6 HOW MANY FORMULA 1 WORLD CHAMPIONSHIPS DID AYRTON SENNA WIN?
7 WHAT FAMOUS CAR BUILDER HELD THE LAND SPEED RECORD FOR A SHORT TIME IN 1900?
8 WHO WAS THE MAN BEHIND WESBANK V8 RACING IN SOUTH AFRICA FOR NEARLY 25 YEARS?
9 WHAT MANUFACTURER USED THE SLOGAN “BRAAIVLEIS, RUGBY, SUNNY SKIES AND …………………… “?
10 IN 1987 A BRITISH CAR ENDED PORSCHE’S DOMINATION OF LE MANS 24 HOUR RACE. NAME IT.
11 WHAT DOES THE 40 IN THE FORD GT40 STAND FOR?
12 IN WHAT CAR DID JIM CLARK WIN HIS FIRST MOTOR RACE?
13 WHO HEADS UP THE RMA (RETAIL MOTOR INDUSTRY) IN SOUTH AFRICA?
14 AT WHAT MOTOR SHOW WAS THE BRITISH LAND ROVER FIRST INTRODUCED?
15 WHAT WAS THE SWISS RACING DRIVER AND ENGINEER CHEVROLET’S FIRST NAME?
16 WHO FIRST PATENTED THE FOUR VALVE CYLINDER ENGINE DESIGN?
17 NAME A FAMOUS SICILIAN MOTOR RACE THAT WAS RUN FOR 60 YEARS.
18 IN WHAT YEAR DID FERRARI CO. MAKE ITS RACING DEBUT?
19 WHAT BUBBLE CAR HAD A SINGLE FRONT OPENING DOOR?
20 NAME THE ITALIAN RACE DRIVER NICK NAMED “THE FLYING MANTUAN”
A u g u s t 2 0 0 936
37
Life Goes On - without Bank Obama The all new Mazda3 was launched to the media at the end of July 2009, and theoccasion was spiced up by Ford’s global second quarter results for 2009, whichHal Feder, President and CEO of Ford South Africa, presented with a smile,because the trend which was starting to emerge from 2009’s first quarter figures,is starting to firm up. Hal also gave the good news that Ford, unlike its Americancousins, is climbing out of the financial hole without the aid of Uncle Sam.
My apologies for not highlighting the sparkling Mazda3, but I am
scheduled to give a full evaluation in the October 2009 issue of
ABR, so apart from a few quick impressions, you will have to wait
two months, but I am sure that in the interim there will be many
glowing reports of this superb C segment
package from the feverish pens of the
other hacks who attended the launch, so
by the time I do my bit, you will already
have a good idea about the car, which is
a definite Car of the Year contender. I
have included some pics just to get the
juices flowing.
Now, back to Hal Feder’s good news
about the second quarter:
• A pre-tax loss of US$424 million, vs. a first quarter loss of
US$1,6 billion, and last year’s fourth quarter loss of
US$3,6 billion
• Structural costs down US$1,2 billion
• Customer satisfaction and vehicle quality levels in the States
now equal to Toyota
• Cash burn under control – situation has stabilised
• Ford Credit’s pre-tax profit of US$595 million – a very good
omen
• In June Ford was Canada’s top selling brand for the first time
in 50 years
• Sales in China up 39% vs. first quarter
• Improved market share across all segments
• South America and Europe in a profit situation
• Mazda division all square
• Traction from the “clunker” programmes
• “Don’t need Bank Obama”
Hal concluded that North America remains the problem child,
but that the losses can be attributed to volume and mix, and once
this improves, things will get better in the land of bluegrass jazz
and apple pie.
A u g u s t 2 0 0 9
By Austin Gamble
The Mazda3 manages to look chunky and sleek at the same time, with the sedan’s lines particularly enticing.
The interior is stunning; with asweeping dashboard that really givesan impression of space and class. Theperformance of the 2,0 litre and the2,5 litre vehicles is not shabby either.We did not get to test the 1,6 litre,which retains the previous Mazda3power train, but we were assured
that with the weight reduction andthe improved aerodynamics that the1600 does have more zip than its
predecessor. The really good news isthat the Mazda3 1,6 litre has actu-ally come down in price, so you’regetting more for less – hooray for
Tito Mboweni!
I n d u s t r y U p d a t e
I n d u s t r y U p d a t e
A u g u s t 2 0 0 938
Life Goes On
- the Shogun wayThis series of articles seems to have legs. In the June 2009 issue ofABR, we heard some upbeat news from Ford and General Motors. Lastmonth it was Tata’s turn, and in this month’s issue, after Ford (seeprevious page) it is Toyota that gets a chance to turn on the charm,based on its mid-year review presented by Johan van Zyl, Presidentand CEO, and Andrew Kirby, Vice President Sales and Marketing.
The presentation at Toyota’s training Academy in Wynberg,
Sandton, on Monday the 6th July 2009, came hot on the
heels of the appointment of Akio Toyoda to the top position
of President of Toyota on 23rd June 2009. To celebrate this mile-
stone, let’s kick off with an uplifting quote from the scion of the
founder Kiichiro Toyoda; “It will always be Toyota’s mission to deal
sincerely with the customers, communities, and societies that we
serve. Toyota will do everything in its power for their benefit. I
believe that this is the main reason for Toyota’s existence. I want
Toyota to be a vibrant and exciting company. During past decades
we have regularly faced challenges. We currently face an extreme
challenge that I am convinced that we can restore the company to
its previous strength. This is a turning point in our history.” The rea-
son for this reassuring statement is that Toyoda takes over the reigns
during a “once-in-a-lifetime crisis” brought on by the global eco-
nomic slowdown, which was his description in a recent interview
with Fortune magazine. To address this crisis, he vows to rein in
overcapacity, reorganise operations to strengthen control, and get
the company back to basics. He especially wants to re-instil dedica-
tion to one of the pillars of Toyota’s production system: genchi gen-
butsu, meaning “go see for yourself ”. Toyota SA in its press release
describes genchi genbutsu as creative thinking and constant techno-
logical advancement, and the philosophy of “teach and be taught”.
Johan van Zyl, in his introductory remarks, utilised his customary
dry wit to reveal that he had been asked by his colleagues to “give a
positive message and a message of hope”. He went on to say that
whilst he could not bring himself to use the latest “green shoots”
buzz phrase, he could state that the seeds of renewal had been plant-
ed and that he was now waiting for rain. The rain that he refers to
is a global economic recovery, the answer to which lies in the reha-
bilitation of financial institutions through the regaining of confi-
dence, financial health and liquidity. As he points out (and many in
the industry are saying this) the demand from consumers is there,
but with the low approval rates from the finance houses this demand
is not reflected in vehicle sales. Stimulus is being applied globally via
government bail-outs (USA) and scrapping allowances (Europe),
whilst locally the NAAMSA/NAACAM working group is looking
for localisation opportunities, with the ambitious target of 70%
local content. The APDP (Automotive Production and
Development Programme) to be implemented in 2013 shall also
provide a huge impetus in reaching this goal. Johan van Zyl predicts
a stabilisation of the industry for the balance of 2009, with modest
growth of three to five percent in 2010 and 2011, and his gut-feel
based on science, “but not an exact science”, is that 2012, and par-
ticularly 2013, will see a return to 2006 and 2007 levels.
By Austin Gamble
I n d u s t r y U p d a t e
39A u g u s t 2 0 0 9
Putting the Cart before the HorseIt was during the mid-term review that Johan van Zyl used the opportunity to criticise the plan by govern-
ment to introduce an ad valorem tax on vehicles, based on carbon dioxide emissions. This tax, due for intro-
duction in April 2010, will increase vehicle prices by anything from 0,3% (Corolla 1300) to 7,2% (Prado)
on Toyota’s higher volume vehicles, whilst the lower volume Prius would benefit by 3,2%. Whilst conceding
that this is the correct way to go, van Zyl says that the timing is not opportune, given the fact that the fuel
industry is lagging behind the technology curve, which is delaying the introduction of fuel efficient vehicles
which are already available, but can only run on Euro 4 quality fuel. A classic case of putting the cart before
the horse.
P&A Sales a Ray of LightAndrew Kirby, in his presentation, revealed that Toyota carries out a balancing act when it prices its vehicles,
as they have to deal with two major conflicting pricing inputs. The depreciation of the Rand against the Euro
by some 10% from Jan 2008 to June 2009 has made exports to Europe more attractive, whereas the Rand’s
depreciation against the Yen of 23% in the same period has put pressure on cost inputs both in built up
vehicles and component imports. The cost accountants must be named Jekyll and Hyde! A more interesting
titbit from Andrew’s presentation was that P&A sales had increased dramatically from 2006 to 2008, influ-
enced by the introduction and expansion of service and maintenance plans, and also by the increase of
Toyota’s car parc to some 900 000 vehicles. The unknown quantity is whether South Africans are starting to
concentrate more on maintaining their vehicles during these tough times? ABR shall revisit this titillating
question in its September 2009 issue.
1 WILLYS
2 RALPH NADER
3 SOUTH AFRICA IN 1977
4 AERO ENGINES
5 BMW
6 3
7 HENRY FORD
8 BRIAN COOK (BROTHER
OF JIMMY COOK, THE
CRICKETER)
9 CHEVROLET
10 JAGUAR
11 40 INCHES HIGH
12 PORSCHE 356
13 JEFF OSBORNE
14 AMSTERDAM
15 LOUIS
16 PEUGEOT
17 TARGA FLORIO AFTER
COUNT FLORIO
18 1947
19 BMW ISETTA
20 TAZIO NUVOLARI
Answers From page 36
Ken Ken 9 x 9How to Play:
Like Sudoku, even though difficulty may vary from puzzle to puzzle, the rules for
playing KenKen are fairly simple:
For a 9x9 puzzle, fill in with the numbers 1-9.
• Do not repeat a number in any row or column. • The numbers in each heavily outlined set of squares, called cages, must combine (in any
order) to produce the target number in the top corner of the cage using the mathe-matical operation indicated.
• Cages with just one box should be filled in with the target number in the top corner.• A number can be repeated within a cage as long as it is not in the same row or
column. Answer on page 76
A u g u s t 2 0 0 940
Q: HOW DID YOU GET TO TAKEOVER HYUNDAI IN 2000?
A: As most of South Africa knows the previ-ous importer of Hyundai in South Africawent into liquidation in 2000. This left over80 000 very annoyed customers strandedwith no parts on hand and nowhere to gettheir Hyundai's serviced on an ongoing basis.All the good brand building that was donewas destroyed in a matter of days. I can stillremember the newspaper reports and one inparticular which said that no one in theirright mind would ever buy another Hyundai.We were under no illusions of the challengeswe would be facing by taking over the fran-chise. Even so, Manny da Cahna roped me into secure the distribution rights on behalf ofthe Imperial Group, through AssociatedMotor Holdings. We were facing some com-petition from a well known local company sothere was a bit of concern about whether wewould be successful. I eventually travelled toKorea. I arrived on a Sunday and met Mr. SSYung (at Hyundai), who is still involved withSouth Africa to this day and had the dealsigned and sealed by that Tuesday. I think itwas the fact that our work ethic is well alignedthat eventually made them decide on AMH.
Q: AND THEN?
A: We came back and met the existing dealersin a Sandton Hotel. We found out about alltheir needs and embarked on an expensiveprogramme of flying in parts on a daily basis.We weren't allowed to import any new vehi-cles, so we supported most of the dealersthrough their used car sales, just to keep thebusinesses afloat.This went on while we werewaiting for the Competitions Board to grantus a licence to import new Hyundai vehicles.After six months we had our licence and westarted selling new vehicles.
Q: WHAT IS HYUNDAI KOREA LIKETO DEAL WITH?
A: Driven. Motivated. Very target orientated.They set very high standards. "Impossible" isnot a word they accept or even understand. Itall comes from the founder of the company.He started as a peasant farm boy and eventu-ally built up the largest company in Korea.This approach has worked. Hyundai producevehicles of the highest quality according to
J.D. Power and Associates and they havemanaged to become the fifth largest Auto-motive Manufac-turer in the world. Toachieve the production volume and maintainhigh quality standards is no easy task.Hyundai has done it very well.
Q: TRAINING?
A: We set up a High Tech Service andTraining Centre in Boksburg, separate fromour Head Office in Edenvale in Gauteng. It isan important part of our success. The trainingcentre provides training for the whole of Sub-Saharan Africa. It is one of only two centresworldwide that conduct training on behalf ofHMC.
Q: DO HYUNDAI APPRECIATEWHAT YOU HAVE DONE?
A: Yes, I think so. Over the last nine years wehave won International awards. This includesbeing named Hyundai Distributor of the Yearin 2006. We've been in the top five for almostsix years now, but nothing comes close to thefeeling when you win it.
Q: WHERE WERE YOU BORN?
A: In Kokstad where the family farmed cattleand sheep. We were three brothers. I was themiddle one. We went to Kokstad High andthen as boarders to Queens College inQueenstown, which I hated.
Q: SPORT?
A: I was good at athletics and soccer. I could-n't play rugby as I had had Rheumatic Fever.When I wasn't playing sport I ran the filmsociety at College where we hired films andalso made a profit.
Q: WHAT DID YOU WANT TO BEWHEN YOU LEFT SCHOOL?
A: Certainly not a farmer. Rather somethingin the Accounting line.
Q: WHAT PATH DID YOUR CAREERFOLLOW?
A; After Matric in 1970, three years at thePermanent Building Society where I was paidthe princely sum of R110 and where theyoffered me a R25 raise. I moved to TankerServices, Tidal Water Transport and then
Quattro Carriers where I worked fifteen yearsas an Accountant and then the MD lookingafter 450 vehicles. During this time I fur-thered my education with a CIS, IAC and aHigher Diploma in Tax Law from Wits. Thiscompany was sold to Bill Lynch, of ImperialHoldings who wanted a long distance transport company. I was there for five to sixsuccessful years until I was offered TYCO inCape Town. My wife, Corlynne, who hadbeen my driver all along, didn't like CapeTown although she came from there. I took aretirement package and went into theRevenue Services to learn all about tax andhow to be a Tax Consultant.
Q: HOW DID YOU GET INTO THEMOTOR BUSINESS?
A: Bill Lynch told me to go and see Manny daCahna as AMH was being established toimport cars. That really got things going. Ibecame the Accountant at a dealership,became Head Accountant at Head Office andthen said I would like to take over the run-ning of Daihatsu. Manny thought about itfor a day before he said OK and I wasappointed MD. I used to go to Manny everySunday to learn about the business. June vanZyl also taught me all the details of the motorbusiness.We set up the Daihatsu DealerNetwork over three years before taking overHyundai in 2000 with a massive job to do.Since then it has been my life, 24/7.
Q: WHO MADE A BIG IMPRESSIONIN YOUR LIFE?
A: Manny da Canha, who knows everythingabout the motor business. Tony Serrano ofQuattro Carriers and June van Zyl of AMH.
Q: YOUR AMBITION?
A: To see Hyundai go to Number One in theSouth African market place.
Q: WHEN YOU RETIRE?
A: I haven't thought about it but I havealways had a yearning to be a Tax Consultant,although by the time I retire I'll probablydevote more of my time to my hobby, whichis electric trains which I have had an interestin all my life.
Q & A INTERVIEW WITH ALAN ROSS
The South African Motor Industry in this tough recessionarytime has been kept going by talented, hard working, energetic,knowledgeable and determined people who know the businessand who don't take 'No' for an answer. Sure times are tough andthe number of car sales is down. But these people will be thefirst to admit that they still need to move the metal. Such a manis "Mr Hyundai in South Africa", 59 year old Alan Ross, the CEOof Hyundai Automotive South Africa (Pty) Limited. This companyimports and distributes cars, bakkies, trucks up to four tonsand 39-seater luxury coaches. Alan's hand picked team of peo-ple have taken Hyundai car sales to 4th place in the market,behind three of the local giants in our industry.
P e r s o n a l p r o f i l e by Roger McCleery
Last month we discussed the segmentation of the automotive aftermarket, and theroles of the various players, from the OEMs at the top of the pyramid, down to thesmall independent workshops, and even further down to the backyard mechanic andthe do-it-yourself buff. All beavering away in their own small way and contributing tothe mobility of the common man. Henry Ford would describe it as such; “Give a man alift, and he gets to where he wants to for a day; give a man a car and he gets to wherehe wants to for the rest of his life”. Karl Marx would prefer to describe it as “oil-ing the wheels of capitalism”. Marie Antoinette would wonder what all the fuss isabout, offering some dietary advice, urging them to “eat cake”.
Irrespective of what shade of red your
politics or economics are, or what
philosophical outlook you have, the
fact remains that if you are not
mobile your productivity and your contri-
bution to the economy and society in gen-
eral drops significantly. Thus, like it or not,
the automotive industry is the most signif-
icant driver of economic activity by far, not
necessarily measured in GDP terms, but
rather in facilitating the means of produc-
tion and critically the means of getting to
where the activity is located. Enough of
the economic socio psycho mumbo
jumbo, let’s get back to the real world, and
the heroes of the automotive aftermarket.
South Africa has a car parc of some eight
million vehicles, and this car parc has been
accumulating over the years, and each year
this number grows, as more people acquire
cars in excess of the disposal and scrappage
rate. Even in a depressed sales year such as
2009, the car parc will still grow (expected
to be 2,5% growth in 2009), so for the
foreseeable future we can expect more and
more vehicles on the road, and both these
roads and the cars on them will require
maintenance. Judging by the condition of
our secondary roads and streets, both in
physical disrepair and the deterioration of
road marking, street signs and lighting, the
authorities are not doing such a good job
and will most probably continue. In con-
trast Giel Steyn says that “the real heroes
are those in the independent aftermarket
who look after the majority of vehicles on
the road”. 56% of South Africa’s car parc is
eight years or older, and this is where fac-
tors such as the diamond dialogues
quadruplex of technology, quality, safety
and value for money take on a huge signif-
icance. The older vehicles’ creaking bones
need loving care, and if it was not for com-
panies such as Grandmark International
which scour the world for quality product
at reasonable prices, those motorists with
older cars and distressed pockets would
have a hard time in keeping their cars on
the road, which in turn would place the
country’s infrastructure under threat, in
terms of mobility, safety, and health care,
leading to issues such as environmental
health, social cohesion and general well
being. Thus hats off to the Heroes of the
Aftermarket.
Even a good part of the younger cars are
being looked after by the independent
aftermarket, for various reasons. This we
shall discuss in the next issue of ABR, and
we shall also come back as promised to the
grey area surrounding franchised dealers
with regard to whether they should be
defined under the OEM banner or the
aftermarket banner.
Add pic
Giel Steyn
D i a m o n d D i a l o g u e s
EditorialPartnership
The Heroes of the AutomotiveAftermarket
A u g u s t 2 0 0 942
“This would be a regular sight if not for companies such as Grandmark International”
Having looked at some possible cost saving techniques regarding the four to ten tontruck segment, let’s now look at some of the causes of the high costs. Let’s look atthe mistakes the fleet operators make in these fleets.
by Marcus Haw
A u g u s t 2 0 0 946
Tyresand TheirContribution to Safety in Motoring
We have previously
discussed some of
these mistakes
which include not
knowing certain
factors of their
operations as well as they could. Taking for
granted that because the route is on tar, all
is well, and not knowing the condition of
the tar at all points as an example we have
used. We have mentioned load distribu-
tion, and the effect empty return trips can
have on tyres, keeping accurate records,
speeds and loads and the list goes on. But
there are more subtle causes of tyre cost
inflation, and less obvious mistakes that
operators make. Let’s investigate these.
There are ten common operator mistakes
responsible for inflated tyre costs, not
always looked at or thought about which
we are going to go through.
1. Underestimating thetyres themselves.In all situations, be it private motoring,
heavy transport, mining or earthmoving,
tyres and their complexity are underesti-
mated. It is a common and costly user phe-
nomenon, most prevalent in the commer-
cial sector, leading to practical problems
such as performance loss, fuel wastage and
downtime. Fundamental understanding of
tyres could eliminate these concerns. The
misconception of tyres as an unmanage-
able and unimportant, but necessary con-
sumable, unfortunately destroys any moti-
vation to learn more about it.
Getting to know how tyres are made, what
they go through during their lives and
understanding their needs should be a pri-
ority for all fleet operators. These few
points can go a long way towards conserv-
ing tyre use, and therefore cutting tyre
costs.
2. Buying irrationally. This includes mixing of brands, buying
cheap, buying up and buying wrong.
Mixing of brands is never a good thing.
Many fleet operators believe that it is bad
practice to “put all your eggs in one bas-
ket”. This is irrational thinking. Always
keep space in your fleet so that you are able
to test new products, but find a brand that
works best for you and standardise.
Standardising your tyres has many advan-
tages: all tyre dimensions are exactly the
same, tyre flex rates are exactly the same,
tread patterns and casing designs are auto-
matically compatible, load and speed rat-
ings would be better matched etc. This
reduces many problems in a fleet and one
can be rest assured your tyres are all work-
ing in harmony. Over and above the tech-
nical factors, one can usually negotiate bet-
ter volume deals, and by all rights, one’s
service and back-up should be assured.
Buying cheap, except for specific purposes
should be avoided. Generally cheap is
nasty and one gets better performance and
service from better products. Many opera-
tors base their buying policies purely on
price. This is a dangerous practice, and
buying policy should be based on value in
conjunction with performance.
Buying up is equally pointless unless it
shows specific performance advantages.
There are those who believe that by buying
a premium brand automatically gives them
premium performance. It doesn’t! If your
operation is perfect, and your maintenance
one hundred percent correct, and your
vehicles have zero problems and if
…and…and……. then one can realistical-
ly have such expectations. Yes, a premium
product will give better performance than a
“run of the mill” in most circumstances.
But the question must be whether the price
difference is worth the performance gain. If
the operation is a harsh one, or your pres-
sure maintenance is poor, or if your vehi-
cles are neglected or old, buying up can be
a total waste of money. This is where the
operator needs to know his operation and
be honestly critical of everything regarding
it. Buy the tyres which give you the most
value and performance which can be realis-
tically expected within the operations nor-
mal parameters. Remember a piece of steel
goes through a premium tyre just as easily
as it goes through a lesser tyre. A premium
tyre fitted to a misaligned axle gets chewed
up as easily and quickly as a cheaper one.
Buying with thought and knowledge is the
only way.
Mismatched Tyres
Tyre Abuse
47A u g u s t 2 0 0 9
www.bridgestone.co.za
3. Incorrect retread prac-tices and understanding. A good retread programme can be a huge
cost saver in a fleet if practiced correctly.
Again though, it would also depend on
the entire approach to the management of
the particular fleet. If the tyre mainte-
nance is good and the casings well pre-
served, then retreading ones own casings is
a good idea. However, if one’s casings are
getting scrapped before they can be
retreaded, there’s a problem. Don’t even
consider stock retreads, or casings which
are already retreaded, and whose histories
are unknown. While retreaders do inspect
the casing as best as they can, they may
have had a very hard life and are often
more trouble than anything else. Leave
these for the scrap metal merchants and
quarry workers to buy. Equally, wrong
tread choice, tread to casing incompatibil-
ity and mixing retread types and patterns
can be extremely expensive in the long
run. Introducing retreads into a fleet
should be done with the same amount of
thought and care as when choosing new
tyre brands.
4. Vehicle maintenance. Neglecting the obvious in vehicle mainte-
nance is one of the most common mistakes
we find in fleets. Not checking and cor-
recting wheel alignment on a regular and
well timed programme causes thousands of
rand to be lost in the industry each month.
Due mainly to the deterioration of the
condition of our road systems, wheel align-
ment concerns have increased by around
thirty percent of the last five to six years.
This is an estimated figure by our own
experience, but won’t be too far off the
mark. If anything, it would be an underes-
timation. In spite of this increase, most
fleet operators don’t check their wheel and
axle alignment often enough. Their think-
ing seems to be that the costs are too high
due to not only the price of the alignment,
but because of the downtime as well. This
is a stupendous mistake in thinking and
costs far more in tyre loss. Suspension
components, spring packs, torsion bars,
torque rods, hanger brackets and especial-
ly all the bushes in these bits wear and get
damaged. Even so, one seldom finds any of
these components in good condition dur-
ing surveys. They are conscientiously
ignored and neglected in the quest of keep-
ing the vehicles on the road at all costs.
Wheel rim and accessory maintenance is
just as important, and is equally neglected
throughout the industry. Consistent mis-
takes are made by experienced fleet con-
trollers.
5. Wheel rim and accessorychoices.Most wheel rims sold in this country are
compatible to our tyre specification.
So finding incompatible rim flanges and
tyre beads is quite rare. But, not unheard
of. More common is the purchasing of
rims with differing off-sets and various
other design differences. There is not
enough space here to go into all the prob-
lems incorrect rim matching can cause.
Let’s just say that standardising the type
and designs of the rims in your fleet is just
as important as standardising on your tyre
choices. Different rims running together,
especially in dual fitment will have serious
consequences on your tyre wear.
Accessories such as valve caps and valve
extensions should also be chosen with cau-
tion and thought. Steel valve caps are the
only ones to go for. Valve extensions must
be strong, flexible and compatible to your
rim design. Wheel nuts and studs and the
way they are fitted and maintained all play
an important role in the overall life of your
tyres. Everything is going to be working
together, and it is important that every-
thing is matched and that nothing is
underestimated.
In the next issue we will discuss the other
five points which can make or break your
tyre program.
Overloading
R o b e r t B o s c h
A u g u s t 2 0 0 948
Antilock Braking Systemsare now Old Hat
ABS is a system that prevents the wheels from
locking, meaning that the vehicle remains
stable even when braking hard, and the
driver can take evasive action. Bosch’s elec-
tronic system was the first solution to be
efficient and reliable enough to be used in vehicles, and
today at least 80% of new vehicles worldwide are
equipped with ABS, and further development now
revolves around the continued enhancement of traction
control. In 2001, Bosch began the manufacture of the
current ABS 8 generation, which has been modified and
improved several times since, and in its currently most
compact version it weighs just 1.4 kilograms, with a mere
14 highly integrated components in a control unit with
256 kilobyte memory. Generation 8 is modular in
design, which allows for various degrees of complexity in
the brake control system, be it ABS, TCS, and ESP®, and
to be manufactured in very similar ways, allowing for
optimisation and synergies in development, design and
manufacturing. More on this in the next issue of ABR,
but let us get back to how ABS works.
The hydraulic modulator is the central component of an
ABS system. It includes valves that control braking pres-
sure at each individual wheel, a return pump, and an
electronic control unit. In addition, each of the four
wheels has a speed sensor. They measure the speed of
each wheel and relay this information to the control unit.
If a wheel is about to lock under heavy braking, the sys-
tem reduces the braking pressure on that wheel alone
until the threat of locking is past. Once the wheel turns
freely again, brake pressure is again increased. The
increase and release of pressure continues until the driver
reduces the force applied to the brake pedal, or until the
tendency to lock is overcome – if there is more grip on
the road surface, for instance. Depending on the partic-
ular system, the brake pedal may pulsate. And remember,
this is all happening in micro seconds, and this is why
they use microprocessors! And in theory that is why a
robot will beat Michael Schumacher around any race
track hands down.
In the northern summer of 1978, Bosch started series production of the first ABSantilock braking system as optional equipment for the Mercedes-Benz S-Class, andeven though ABS was then only accessible to the well heeled, this pioneering momenta decade after the first heart transplant and nine years after man first set foot onthe moon, laid the foundation for all the active safety systems that you find todayin the modern motor vehicle. At the time, ABS was considered revolutionary, buttoday it is regarded as old hat, with the buzz now around the latest enhancementson traction control systems. It is truly remarkable how technology has raced aheadin such a short space of time, so for those of you who were born on the wrong sideof 1960, we take a look at what ABS is all about.
49
Equipment for All SeasonsA series of article on the versatile FSA 720/740/754 series
FSA stands for Fahrzeug System Analyse (Vehicle System Analysis), but anyone whosaw the 1996 movie “A Man for All Seasons” could be forgiven for believing that FSAstands for all seasons, because the FSA is indeed a versatile and invaluable piece ofequipment for the modern workshop, displaying the characteristics of Sir ThomasMore, who against great odds never compromised on his principles, and applied theconventions of the day strictly and to the letter, allowing no short cuts and insisting on propriety and comprehensive analysis.
Sir Thomas
More en-
dured pres-
sure from
Henry VIII
to accept a change in
the rules but he did
not bend, sticking to the
high standards that he had
vowed to uphold, and applying
these standards to everyone, irrespec-
tive of rank. Similarly, in these times, the
modern automotive workshop has to
apply high standards in diagnosis and
repair, whether it is for a 1400 Citi Golf or
the latest Mercedes-Benz S class. This ele-
mentary reality Bosch understands, thus
the development of the FSA series which
provides modern vehicle system analysis,
and is equipped for the future. Present day
complex vehicle systems and components
are increasing exponentially in their preci-
sion and it is essential that they operate
faultlessly to fulfil their respective func-
tions reliably and correctly. Fault analysis,
diagnostics and the subsequent repair or
maintenance work is becoming increas-
ingly important,
with the keyword
being “complexi-
ty”. The modern
workshop’s survival
literally depends on
efficient work
sequences with sys-
tem analysis and
diagnosis, and Bosch is at the
forefront of supporting these workshops
with stationery and mobile ECU diagnos-
tic testers together with extensive work-
shop software ESI [tronic], automatically
detecting vehicles’ control units and com-
paring target and actual values, thus allow-
ing faults to be analysed, and for repairs to
be carried out in a timesaving and cost-
efficient manner. Bosch goes even further
with component checks in the vehicle sys-
tem analysis, which gives even more relia-
bility in fault diagnosis and more time
saving because components that may be
faulty can be checked while still installed,
thus giving the optimised combination of
troubleshooting, diagnosis and measure-
ment technology. The Bosch modular sys-
tem also allows for additions to the vehicle
system analysis to be perfectly tuned to
one another, thus giving workshops a clear
edge over competitors, whilst demonstrat-
ing competence on a long term basis, and
the assurance of a competitive future.
A perfect example of the advantage of the
modular system is the combination of the
Engine System Testing FSA 740 and the
ECU Diagnostics KTS 670, a high-end
solution that is a complete solution for
flexible use in the workshop, but there are
various mixes and matches that both the
established workshop and the budding
entrepreneur can equally evaluate.
Automotive trends and the rapid impact
of vehicle technology on the South
African car parc, is placing the independ-
ent workshop sector in a challenging posi-
tion which requires urgent and innovative
solutions. One of the imperatives is the
impending legislation on emission con-
trols. ABR shall, in conjunction with
Robert Bosch South Africa, look at these
imperatives and the requirements and
their various applications, in future issues.
A u g u s t 2 0 0 9
R o b e r t B o s c h
A u g u s t 2 0 0 950
Rooting for the Little GuyPieter de Weerdt comes from a car family, so petrol runs in the blood, and tinkeringand tuning is second nature. Pieter and wife Gretha have been involved in motor rac-ing for a very long time, so the bloodline is set to continue. Pieter also likes help-ing people, which explains the origins and the continued success of DASTEK (DeWeerdt Automotive Service Technology Group).
The walls of DASTEK bear testament to the awards of recognition and the letters of thanks and acknowledgement that Pieter de Weerdthas received over the years
Pieter de Weerdt has a very simple philosophy, based on the
fact that nothing is true unless you have observed it and it
is true according to your observation. This is the bedrock
upon which DASTEK is founded and which led Pieter to seek the
Holy Grail of modern tuning for the independent automotive
technician. DASTEK was founded in 1971 by Pieter and his
father, Chris, but the essence of the company came about through
the frustration that Pieter experienced as more and more cars
became electronically controlled and he couldn’t tune them any-
more. With his passion for tuning he set out to crack the codes of
the vehicles only to find out that some of the manufacturers were
changing these codes every few months. He also discovered that
the problem with the automotive industry was that no one
worked together, with the concomitant problem that there was
very little sharing of information. He compares the automotive
industry with the medical fraternity, and like a skilled surgeon he
dissects the differences. Whereas doctors have been working on
the same model for centuries, the modern auto technician is con-
fronted with ever changing models every single day of his life.
Thus the doctor knows his subject inside out with the only disad-
vantage he is faced with is to “grind the valves while the engine is
running!” The critical difference, in Pieter’s mind, is that doctors
stand together in most things and share their knowledge and pub-
lish their findings, whilst the automotive industry, from the
OEMs down to the average workshop, simply do not share infor-
mation. In actual fact, they tend to keep things pretty close to the
chest. Pieter condemns this selfish attitude, as he says that there is
a place in the sun for everyone, and his approach to business is to
help his professional colleagues. Thus, his attitude when manufac-
turing both dynamometers as well as his unique Unichip is to
allow anyone interested in tuning to bask in the sun. Thus his
dynamometers are robust machines that do the job with the min-
imum of fuss, without the bells and whistles. The “bells and whis-
tles” he builds into his famed Unichip, the innards of which were
developed to work as a universal system to enable the tuner to re-
map vehicles dynamically. He puts it succinctly, “Our goals are
simply to put control over modern vehicles back into the hands of
the tuners, deliver an excellent quality, value-for-money product
to satisfied customers, and in so doing to ensure a decent and rep-
utable living for ourselves, the distributors and installing agents.”
i n n o v e n t i o n s
51A u g u s t 2 0 0 9
The Unichipproduction line –
a fanaticalapproach toquality and
checking is inplace throughout
the system
Pieter de Weerdt,Managing Director ofDASTEK, stands infront of the X-Raymachine used tomicroscopically exam-ine each and everycomponent before beenpassed for use
In development terms the Q chip representsthe 25th evolution of Unichip technology andis proof that the Unichip remains better thanthe most reliable and effective way of optimis-ing a production vehicle.
The UNICHIP by DASTEKDASTEK makes no claims with their Unichip; they let
the results speak for themselves. With no two cars
being identical it is impossible to predict just how far
from perfect the vehicle was before fitting the Unichip.
What the Unichip does is to bring that car close to per-
fection, so that when the driver drives calmly he will
get optimal fuel consumption and when he “puts foot”
he will have access to as much power as possible.
DASTEK has a success rate of 99,75%, so this is not
an idle boast. And with a success rate of over 80% in
Group N racing, and to be banned from the Total
Economy Run for giving an unfair advantage speaks
volumes for the effectiveness of the Unichip. But don’t
take our word for it, hear what a master tuner says.
Steven Green of Rob Green Auto Services enthuses,
“As far as standard vehicles are concerned, for fuel
economy and more performance, the Unichip is
unbeatable. I have tried every known micro-chip and
none of them come even close. Once you have mapped
a vehicle with a Unichip and seen how user friendly the
software is, and what benefits you get out of it, one
wonders how you have gotten by without it!”
So what exactly is the Unichip, and what was behind
its invention? The catalyst was the increasing sophisti-
cation of engine management systems and the
attempts by the manufacturers to prevent any “unau-
thorised” external interventions. Pieter de Weerdt
came up with a method in 1995 whereby an aftermar-
ket tuner could actually work in harmony with the
engine’s electronics. This system has been refined,
improved upon and enhanced to the extent that in
some cases it is now integral to some original equip-
ment engine control systems, and has been endorsed as
such by individuals, companies and motorsport teams.
Pieter de Weerdt says that “in the interests of safety,
manufacturers tend to adopt a ‘slightly too big’
approach with a tendency to err on the side of caution.
What they’re saying is that since they can only make
one map for many vehicles, too big is safer than too
small. I like to think of the Unichip as a set of tailor-
made clothes for an engine – in other words, to opti-
mise rather than modify it.” The proof of the pudding
is in the eating. Today, there are over 600 dealers across
57 countries dealing in the Unichip, which was the
first piggyback computer for an automotive applica-
tion in the world, which is testament to good old
South African ingenuity.
i n n o v e n t i o n s
i n n o v e n t i o n s
A u g u s t 2 0 0 952
DASTEK contact details: tel 27 12 347 1225/6 or 347 1747 or 347 2372/3; fax 27 12 347 1937; e-mail [email protected]; web www.dastek.co.za
The DASTEK DynamometerDASTEK originally designed their dynamometers for their own use, not out of vanity, but out of necessity. Even the latest state of the
art chassis dynamometers could not function close to requirements, so DASTEK set out to design the perfect rolling dynamometer for
their own use. As word got round about the functionality, stability and sensitivity of this dynamometer, enquiries started flooding in,
and DASTEK went into the dynamometer manufacturing business. The dynamometers are designed specifically for tuning and espe-
cially for re-mapping of computer programmes in motor vehicles, which outs very specific and strenuous demands on a dynamometer.
Braking torque is supplied by a 1600 Nm Thelma retarder, which is far more than the average road tyre can handle. Included in the
package comes a software package that keeps track of every individual vehicle and every instance
that it is tuned, building up running averages for every vehicle type. Another
unique feature is the knurled rollers to prevent tyre slip-
page. An added bonus is that two
weeks of training under the
personal supervision of Pieter
de Weerdt is offered at no cost.
There are numerous other fea-
tures and highlights which can be
obtained from the DASTEK
website.
The DASTEK Dynamometer and Unichip in tandem and in action. The DASTEKDynamometer allows for tuning for all seasons; idling, driving, on road conditions, at full throttle and driving against braking. It takes reality into account, and as Pieterde Weerdt explains, “I want to know everything. I start at the end and work my waybackwards. I think like the customer.” The large, high intensity digits give a stable yetsensitive reading that is easy to read, whilst the bottom display can be switched to display front or rear roller speed, tractive effort, correction factor, temperature or barometric pressure. This display is sensitive and stable enough to show up the extracurrent draw on an alternator by switching the headlights on and off.
A DASTEK Dynamometerbeing individually hand built to
the exact precision which isdemanded for DASTEK’s own
machines, providing stabilityand sensitivity that exceeds most
engine dynamometers!
Once the PC board is manufactured, itundergoes intense scrutiny from bothcomputer and human eye before it is
allowed to go to testing
The workshop at DASTEK, situated in Lyttelton next tothe Waterkloof Air force Base, is always busy, as motorists
seek to eke out that extra bit of economy and power
The actual production of theUnichip, utilising CNC technology
i n n o v e n t i o n s
53A u g u s t 2 0 0 9
If anyone ever doubted the potential of the DASTEK Unichip, then all doubts have been erased by Pieter de Weerdt’s latest proj-
ect, as displayed at the South African Automechanika in March 2009. This car, the Lamborghini Gallardo Twin-Turbo, was built
with the express purpose of showcasing the possibilities that the new Unichip Q brings – and what better way that with what may
well be the fastest-accelerating production-based car in the world? In standard form, the 5.0 litre V10 engine produces some 382
kW, but Pieter wanted 1 350 horsepower, or about 1 000 kW. The easy part was the introduction of the Unichip Q to look after things
like extra fuel injectors, the e-gear shift system, the launch control, and of course engine management. The hard part was the rebuild-
ing of the engine and the modifications required to handle all the extra grunt. The end result was a car that in dynamometer tests does
indeed produce 1 400 horsepower, and the capability of doing 0 to 300 km/h in 14,5 seconds. Not yet achieved, but once Pieter has
sorted out a traction problem between 100 and 200 km/h, he will attempt the impossible. Don’t bet against it.
Calling all Petrol Heads
A u g u s t 2 0 0 954
The Quick Brake universal squeal damping shim isthe solution for many applications where excessivesquealing needs to be controlled. This product iseasy to apply on all brake pad profiles.
1. Brake pad and Anti Squeal Shim(Part no: 2889W)
2. Clean pad backing plate thoroughly
3. Draw outline of pad on the shim. 4. Cut shim to size
5. Peel shim from cover 6. Stick shim on the pad back plateand install in the caliper.
Babu Salik is extremely proud of his pioneering role in the growth of the e-CARnational network. Babu was the second workshop to sign up as a member, on the sameday that Chris Swale of Chris Swale Motors* in Pinetown signed up; Chris signing inthe morning and Babu in the afternoon. The confidence that these two KwaZulu Natalpioneers had in e-CAR was well founded, with e-CAR now a well established concept,and the fastest growing workshop network in the country.
e-CAR Pioneer
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)
Babu Salik places great value in his
Bosch Diagnostic equipment
Proudly displayed is the e-CAR certificate of
membership, denotingB&R Auto Electrical as thesecond e-CAR member in
South Africa
This e-CAR sign on thesidewalk attracts drive-by
customers
55A u g u s t 2 0 0 9
B&R Auto Electrical (the B&R being Babu and Roy Salik)
grew out of Roy’s Auto, a small mobile auto electrical unit
servicing the Jacobs area in Durban. Jacobs is the central
hub of automotive repair in Durban, so B&R, situated at
233 Jacobs Road, is ideally located to play its role of looking after
Durban’s automotive repair needs, with Babu operating as chief
executive and Roy operating as chief artisan, forming a formidable
team. Many people in the Durban area seek B&R out, as they have
developed an excellent reputation for being the “fix-it” specialists.
B&R’s pioneering pedigree also goes back a long way, as they were
also the first Asian Bosch Auto Electrical outlet in KwaZulu Natal
in the pre-1994 era, but it was in 2004 when B&R became the
second e-CAR member in Durban, the second e-CAR member in
KwaZulu Natal, and the second e-CAR member in South Africa, in
that order, that their customer profile changed from purely an auto
electrical outlet to an all round specialist. Babu Salik says that
suddenly their usage of oil went from a few litres a month to hun-
dreds of litres per month, with his business taking off, and the mix
of custom now 60% auto electrical and 40% mechanical/servicing.
Thus he fondly remembers the day that Luis Pires (Diesel-Electric
Director, KwaZulu Natal) and Suresh Ramabacus (Diesel-Electric
Area Representative) visited him to discuss the e-CAR concept.
With his Bosch background, he did not need a second invitation,
and he readily agreed, as he puts it, “to be a guinea pig”. The rest is
history, with B&R receiving many referrals, national warranty work,
and drive-by business, simply because of his association with
e-CAR. With so many satisfied customers, his business continues to
grow, and he credits this to the fact that B&R has the latest Bosch
Diagnostics equipment, backed up by superb Bosch technical
training, plus the added benefit of being able to rely on quality
branded product sourced at competitive prices from Diesel-Electric.
B&R also applies a strict code of conduct, as required through its
RMI and AA accreditations, an obligation of e-CAR membership.
* Next month ABR will be reviewing Chris Swale Motors
Through constant innovation in
sealing materials, specialists
like Victor Reinz have been
able to greatly reduce the num-
ber of sealants needed for repairs. In fact,
just two products, ‘REINZOSIL’ and
‘REINZOPLAST,’ cover all repair needs.
Both sealants are approved for all
European and Japanese automobile
makes. REINZOSIL is a silicone-based
sealant that is solvent-free, fast-curing,
and permanently elastic. It is used on flat
surfaces with sealing gaps, such as those
occurring on engines, transmissions, axles,
cylinder liners, and synthetic parts. It is
also suitable for rough sealing surfaces and
cracks in parts. With its high Shore hard-
ness it can even seal components that are
subject to substantial relative movement
and vibration. In continuous usage,
REINZOSIL can stand temperatures
from –50°C to +300°C.
REINZOSIL-t is a transparent silicone
sealant suitable for use on bodywork
(windshields, lamp housings, glass parts
etc.) It is also suitable for encapsulating
and sealing electrical connections.
By contrast, REINZOPLAST is a non-
hardening, permanently plastic
polyurethane-based sealant. Reinz recom-
mends it for fine or finely worked sealing
surfaces without sealing gaps in engines,
transmissions and axles, including those
which may be subject to high static move-
ment and vibration. Another application
is sealing threads. REINZOPLAST like-
wise covers the –50°C to +300°C temper-
ature range.
Unlike with hardening sealants, parts
assembled using REINZOPLAST can be
simply removed again after extended peri-
ods.
Selection criteriaIn addition to technical product proper-
ties (temperature range, media resistance,
curing time etc.), other important criteria
when selecting a sealant are the applica-
tion (intake manifold, oil pan, etc.) and
the sealing gap. For the first two criteria,
Victor Reinz provides users with tables
and lists. To determine the sealing gap, a
feeler gauge can be inserted into the seal-
ing gap. Sealing gaps under 0.1 mm are
sealed with permanently elastic sealants,
those over 0.1 mm with permanently plas-
tic sealants.
To round out the range, Victor Reinz also
offers a sealant remover called ‘RE-
MOVE,’ that makes it easy to remove all
sealants, as
A u g u s t 2 0 0 9
The use of liquid sealants for repairs is nothing new. However, in the past the searchfor the right product took time and effort, since the technical properties of the var-ious sealants differed widely.
Fewer products, easier choices
56
A u g u s t 2 0 0 958
Permatex offers a wide range of adhesives, sealants,
gasket makers, hand cleaners, lubricants, appearance
products, specialty repair kits, and additives, with
now over 350 products making over 1 000 SKUs,
providing market-specific formulations and application
methods for a variety of industries, including automotive,
marine, motorcycle, heavy duty, and off highway. The com-
pany is constantly working with automakers, parts suppliers,
service parts groups, and other aftermarket companies to
develop the next generation of service technology. With a
pedigree like this, it would not be an overstatement to call
Permatex the “Rolls-Royce of car care products”.
It all began in 1909 when Constant A. Benoit Sr., the founder
of the company, designed a shellac to bond bicycle tyres to
their rims. In 1915, fate provided an impetus to growth when
Mr. Benoit attended a 24 hour endurance race at the
Sheepshead Bay track near his Brooklyn, New York laborato-
ry. Being of a scientific bent, he observed that many of the
cars were forced to make frequent pit stops to replace blown
cylinder head gaskets. The mechanic for Ralph DePalma’s car
was at his wits end when the car blew its head gasket for the
fourth time, and Mr. Benoit applied some of his experimen-
tal gasket cement and the DePalma car drove the rest of the
race without any further gasket problems. On that day,
Permatex entered the automotive maintenance chemicals
business, and the rest is history. From its Hartford headquar-
ters, Permatex directs a growing global automotive aftermar-
ket enterprise serving North America, the Pacific Rim, South
America, Europe, and Africa. Permatex manufacturing plants,
distribution centres and offices are strategically located to
achieve growth goals and effectively service customers. Top
Class Automotive is part of this global effort and is looking
forward to putting Permatex in its rightful place on the South
African automotive landscape. If you are a professional auto-
motive technician, or part of a motorsport team, a perform-
ance buff, or simply a do-it-yourself fanatic, contact Top
Class Automotive at 011 974 1444 for more information on
the comprehensive range of superb Permatex products. You
won’t be sorry.
T o p c l a s s T o p i c s
Permatex - 100 Years ofInnovation and Leadershipin Chemical Tools
2009 marks Permatex’s 100th year in business. Since 1909, Permatex has been the
preferred choice in the USA for chemical tools for motorsports teams, professional
automotive technicians, performance buffs, and general automotive do-it-yourselfers.
The world is also catching on to the wonderful world of Permatex, and the company
now operates in the United States, Canada, Mexico, the U.K., and exports products
to more than 85 countries around the world. South Africa is one of those fortunate
85 countries, with Permatex products being marketed by Timken SA and distributed by
Top Class Automotive.
Mr. P (we kid you not) is the official mascot for Permatex product. Herehe is seen at the Automechanika South Africa show held in March 2009,
flanked by admiring Timken ladies.
Richard Pinard
A u g u s t 2 0 0 9
The Whole Bang ShootA series of articles on the world of ignition engineering, gleaned from interviews with Stan Levin
Distributor Remanufacturers S.A. and Auto E.C.U., highly visible from the N3 Highwayjust after the van Buren Road off ramp, and situated at the corner of Valonia andCydonia Roads, Wychwood, offer a comprehensive range of product and servicesfocused on “the world of ignition engineering”. Distributors, coils, points & con-densers, caps & rotors, photo electric boards, sensors, motor vehicle computers,repairs, services, you name it, you will find it here, the whole bang shoot.
All good and well, but the essence of these two
companies is not in the comprehensive nature
of their offerings, but in the personality and
philosophies of the founder. Stan Levin found-
ed Distributor Remanufacturers S.A. some 35
years ago, and over the past three and a half
decades he has developed iron-clad policies and procedures
which he says were put in place from his “learning the hard
way”. The point of departure around his approach to business
comes from his conviction that any part on a motor car is a “life
and limb” part because no matter where you are in this beauti-
ful but violent country, if your car comes to an involuntary stop,
both your and your family’s lives are in danger. It is for this fun-
damental reason that he will not deal with any supplier or man-
ufacturer who cannot produce at the very minimum ISO 9002
certification, plus an extensive warranty on their product. Stan
takes this further, by colour coding all his suppliers and ranking
them, part by part, on availability, price, range, support and
product quality, on a scale of 1 to 5. If any of these suppliers fall
below a rating of 3,5 they are dispatched with gusto. There are
no grey areas with Stan Levin, only black and white, and what
you see is what you get. As he says, “I’ve been running this busi-
ness for 35 years, and with the philosophies I apply I will be in
this business for another 35 years.” Maybe not Stan Levine, but
definitely his sons Steven and Simon, who have been learning at
the feet of the master for ten years and four years respectively,
absorbing the philosophies that make the business so unique. Stan Levine in his office, watched over by his late father.
I g n i t i o n E n g i n e e r i n g
59
A u g u s t 2 0 0 962
I n s i g h t s
To join Capricorn Society Limited call Rob Mildenhall on083 654 2094 or e-mail him at
[email protected] or visit their website onwww.capricorn.com.au
Fits like a GloveIn 2003, Mercedes-Benz South Africa (MBSA)launched its unique DNI (Distribution NationalInventory) system, whereby Mercedes-Benz utilis-es its franchise dealers as regional inventoryhubs, thus doing away with the necessity of a cen-tral warehouse, and in theory improving servicelevels to the benefit of Mercedes-Benz vehicleowners. The champion of this concept wasChristoph Köpke, then chief executive ofDaimlerChrysler South Africa. Intriguingly, theidea originated at the South African DefenceForce in the 1980s, and the DNI was an evolu-tionary step forward by a visionary team at MBSA.
Six years on, DNI remains a revolutionary concept in
South Africa, and indeed the world. How does it work? In
brief, DNI is administered by MBSA from its Centurion
headquarters. The entire parts inventory is distributed
throughout the country, at selected franchise dealerships, and this
stock is owned by MBSA. The dealership’s role is to receive the
stock, store it safely, pick the parts when required, and to follow
good housekeeping rules. MBSA rewards the dealer, commensu-
rate with the performance of these activities. The McCarthy run
Parts Centre in Soutter Street, Pretoria West, is one of the biggest
and busiest hubs. Louis Nel, Franchise Parts Manager, says that
the system works well. When a part is required anywhere in South
Africa, the central server at Mercedes-Benz in Centurion scans its
files to identify the closest stock location, and issues a picking slip
at this location, and the part is picked and delivered to where it is
needed via a sub-contracted courier service, which is also operat-
ing under strict parameters. All very efficient, reducing lead times
and improving service levels at all the Mercedes-Benz dealerships.
What about the Mercedes-Benz customers out of maintenance
contracts, and the smaller independent workshops servicing older
Mercedes vehicles, who need a genuine Mercedes-Benz part? This
is where Capricorn Society Limited plays its key role, with its
service offerings fitting the DNI profile like a glove. Louis Nel
describes the McCarthy Capricorn alliance as a very good mar-
riage. The Capricorn members have convenient and cost efficient
access to Mercedes-Benz parts, whilst the Pretoria based Parts
Centre effectively supplies the entire Capricorn member base in
South Africa, utilising both the DNI and the Capricorn foot-
prints; a true symbiotic relationship. Another benefit for the
Mercedes-Benz Parts Centre is that all the Capricorn purchases
are collated into one account, with guaranteed 30 day payment,
obviating the burden of accounts receivable management.
Other benefits for both hand and glove is the increase in business.
The marketing activities of Capricorn’s well trained and motivat-
ed regional managers, combined with Capricorn’s efficient com-
munication network, ensures that Capricorn members are fully
aware of where they can purchase Mercedes-Benz parts, and con-
versely the Parts Centre is kept fully updated on new members
and regular feedback ensures that customer service levels are
maintained. Additionally, regional conventions and the annual
gala dinners offer the opportunity for Capricorn suppliers to mar-
ket themselves to the members, and to network with other suppli-
ers. A true partnership of note, which Louis describes as “an excel-
lent relationship”.
The picking parameter set by MBSA is 15 minutes, so the pickingstaff have to be super efficient.
Louis Nel, Franchise Parts Manager, McCarthy Motors
www.t-r-m.co.za
T 0861 TRM TRM
F 086 686 8382
C u s t o m e r C . A . R . E
A u g u s t 2 0 0 964
CustomerRelationshipManagement
Customer Relationship Management is actually something we all can relate to. We likebeing with people we like and trust. As a matter of fact, we like doing business withpeople we like and trust. This can be extended to brands, we like to buy products andservices from brands we like and trust. Companies knows this and that is why so mucheffort is put into creating a brand and even more so, nurturing these brands
Theo Calitz has been working inor involved in the motor industryfor the last 16 years. A mechanicalEngineer by profession, he is pas-sionate about customer care and
his company, T-R-M specialises in automotive CRM forthe automotive industry and has
been doing it for nine years
This focus on brands translates into interesting executions.
One example is that of CI or ‘Corporate Identity’. CI
defines exactly what a brand looks like and what it stands
for and subconsciously we observe these recognisable traits and it
reassures us. It comes down to small things like fonts, colours and
symbols. These identifiers serve to reassure us of stability, consis-
tency and reliability – all things that we relate to quality. These are
great attributes on which relationships are built. The end result is
better business for companies with strong brands and more impor-
tantly, higher margins because people are prepared to pay a premi-
um for the association with a strong brand. A few years ago I had
an interesting experience. The company I worked for was a presti-
gious motoring brand and we were issuing cards to customers as
proof of a service offered. We realised at a point that we do not
need the customers to present these cards as proof because we had
all the up to date details on computer. We subsequently stopped
issuing these cards. To our surprise we had quite a reaction from
the customers – they wanted their cards. Upon researching the
matter we found that these cards (which were the same size and
shape as a credit card) were prized by customers because:
1. They felt reassured by it – it was a tangible proof of an intan-
gible benefit.
2. It gave them a sense of belonging. It is reassuring to know that
I belong to great ‘family’ with it commensurate benefits.
3. It identified who they were. Having the card meant that they
were part of a fairly exclusive ‘club’ – it therefore provided
status.
Needless to say, based on these findings we issued the cards again
in a much better format with a hologram, signature strip, etc.
We have learned our lesson!
Focus Groups are also a fascinating method to learn about people’s
perceptions and opinions. I have sat in many a focus group meet-
ing where the theme ‘quality’ has been discussed and brand names
are mentioned that are in reality volume, low cost brands. Because
these brands have succeeded in building a good relationship with
their clients and are seen as a reliable, trusted brand, they are also
equated to a quality brand and loyalty follows.
Lastly an important facet of CRM and the relationship with the
customer is the importance of not forgetting loyal old friends due
to infatuation with new relationships. New relationships are
exciting and important but it is the old relationships that are more
valuable as discussed before. Do the sums – it is easy to prove!
– from the small to the big
C u s t o m e r C . A . R . E P r o g r a m m e
A u g u s t 2 0 0 966
– sponsored by Federal-Mogul
MODULE THREE – HOW COMMITTED ARE YOU?
DISCUSSION POINTS1. If every single employee of a compa-
ny is committed to themselves, their
company and their customer, it
would not be necessary to utilise the
services of a management consultant.
Do you agree with this statement?
2. If the majority of a country’s work-
force is committed to themselves,
their companies and their customers,
unemployment would be rare.
Discuss the reasons for this fact
(not theory).
3. Define “lip service”.
In the previous module, we explored the
concept of the Second Trilogy Truth,
which can be described as the cumula-
tive effect of being committed to yourself,
your company and your customer, in that
order. We also asked you to evaluate your-
self, and to answer 3 simple questions:-
1. Are you committed to yourself?
2. Are you committed to your company?
3. Are you committed to your customer?
I am sure that over 90% of you answered
quite truthfully “yes” to all three, even after
deep reflection. This is perfectly natural,
because we all like to believe that we are
truly committed to ourselves, our compa-
nies and our customers. However, if this
was true, and 90% of all managers and
employees actually displayed this commit-
ment, then it would not be necessary to
even discuss the subject of customer care.
There would be no problem, and we would
all be living in customer care heaven. And,
many other disciplines of business and
commerce would also be running
like clockwork, and the rate of attrition
amongst management consultants and
gurus would be phenomenal. Unemploy-
ment would also be a minor concern,
except amongst the management consult-
ants. But, alas, this is not true!
We see the results of a lack of commitment
all around us - in two words, poor service.
To be more specific, the hysteria inducing
inability to get through to an individual or
department on that basic communication
device, the telephone. Or the casual turn-
ing up late for an appointment, or not
turning up at all! Or the promise to deliv-
er something at a certain time, and just not
coming close. Or the dynamic salesman
who becomes strangely anaesthetised the
minute he has collected his commission
cheque, making Dr. Jekyll and Mr. Hyde
look quite ordinary. I could go on and on,
ad nauseam. The problem is one of “lip
service”. It is one thing to say that you are
committed; it is totally another thing alto-
gether to show this commitment. To illus-
trate this fact, let us review your “YES”
answers to the 3 simple questions.
COMMITMENT TO YOURSELFI am sure that everyone said “yes” to this
one. How can we be not committed to
ourselves? After all, we are the most impor-
tant person in our lives. But hang on a bit,
let me ask you some more questions which
will throw some light onto your YES
answer: In the past 3 months,
how many times have you
IMPROVED yourself, in any way, atyour own expense, and in your owntime?
have you looked after your body,
through
a) diet
b) exercise
c) moderation in other activitieshow many times have you compli-
mented yourself, and how many timeshave you added value to other people’slives?
After answering these questions, do you
still say that you are committed to yourself?
COMMITMENT TO YOURCOMPANYOf course, nobody will admit that they are
not committed to their company - the
financial implications could be quite seri-
ous. To really find out the depth of this
commitment, we need to ask some more
questions: In the past 3 months,
how many times have you gone
beyond your job description, toenhance your company?
how many times have you RUN
DOWN your company, or its manage-ment, or your fellow employees?
how many NEGATIVE things did
you do, merely to protect your own turf?
After answering these questions, do you
still say that you are committed to your
company?
COMMITMENT TO YOUR CUSTOMERThis is the big lulu. EVERYONE IS
COMMITTED TO THE CUSTOMER!
Or are they? Once again, let us test this
commitment, and here we have to look at
some operational issues. In your company,
who gets the prime parking positions -
management or customers?
when staff training is done, is it done
at the employee’s expense, or the cus-tomer’s expense?
are commission structures based on
sales, or service?
After answering these questions, do you
still believe that you are committed to your
customer?
In the next module, we shall re-visit these
commitments.
B u r f o r d o n B r a n d s
A u g u s t 2 0 0 968
Head of the ClassYou have to hand it to Lexus: when they set their sights on doing something, the go for it with both barrels blazing. It is probably a philosophy they inherited from Toyota, their parent company.
They don’t always like to
mention the two in the same
sentence, just in case it erodes
some of Lexus’s hard-won
brand equity but most everyone knows
they’re closely related. In essence – and yes,
it is an oversimplification – a Lexus is
really a Toyota with a touch of class.
Importantly though, today you can’t get a
Toyota with the same body as a Lexus, and
vice versa. This was not always the case and
the first small Lexus, the ES250, was based
on the Camry.
The Lexus story goes back to the middle of
the 1980s when Toyota decided they need-
ed a premium brand, having spotted an
opportunity in the US market where the
German brands seemed to be priced at too
much of a premium and the local offerings
were a varying mix of poor quality, poor
service, or poor design. Some managed to
offer buyers all three...
Toyota wasn’t the first Japanese brand out
of the starting blocks and Honda beat
them to market by a couple of years with
Acura but it was the Detroit Motor Show
unveiling of the Lexus LS400 at the begin-
ning of 1989 that made the automotive
world sit up and take notice. It was the
culmination of six years of hard work and
the car immediately started raking in the
awards and accolades after its September
’89 launch. Sales were strong too, while
those of BMW and Mercedes-Benz took a
significant knock – not least of all because
the LS undercut similar rivals by some
20 percent.
Lexus, some say, stands for Luxury export
to the United States, but it is possibly just
an adaptation of Alexis, one of many
names put forward initially.
Whatever its origins, Lexus has gone on to
become a major player in the luxury car
segment and at the risk of sounding like a
Lexus spin doctor, it is safe to say the Lexus
nameplate has made an indelible imprint
on the world of luxury motoring. And it
hasn’t yet celebrated its 21st birthday. Part
of this has been a relentless pursuit of qual-
ity and the brand has been rewarded with
regular successes in surveys such as those
conducted by the likes of JD Power and
Associates. Lexus owners seem to be a
highly satisfied bunch indeed. In 1990 the
Lexus LS400 was introduced into the
European market and by 1992 Lexus was
out-selling BMW and Mercedes-Benz in
the US, and had become the most
popular luxury import.
South Africans got their first taste when
Lexus arrived on our shores in 1993. It got
off to a slow start though and while the
virtues of the product spoke for them-
selves, delays in establishing a dealer net-
work, high prices and a buying public
seemingly locked into the
BMW/Merc/Audi triumvirate made it dif-
ficult to gain a foothold. Things moved
along slowly for more than a decade – a
decade in which the brand continued to
cement its reputation in the international
market and introduced a number of new
models, not least of all the RX300 which
in 1998 heralded a move into the premi-
um SUV sector. Just a year later Lexus
posted its best-ever annual sales in the US.
By 2005 Lexus was completely separated
from Toyota in an operational sense, with
its own infrastructure in terms of research,
development and manufacturing. This
coincided with the introduction of the
Lexus brand in Japan, and also the launch
of the world’s first luxury hybrid, the
RX400h. On the Southern tip of Africa
things hotted up in July 2006 and a con-
certed effort with the brand has been made
since then. This was in line with a global
initiative to emulate its success in North
America. Part of the local activity was the
roll-out of 13 new-look standalone dealer-
ships and the introduction of the IS250, a
model capable of going head-to-head with
obvious rivals in the compact premium
sedan segment. The year also saw the
introduction of the latest GS300, and the
fourth-generation LS – the 460 – which
went on to be named World Car of the
Year. The model range has continued to
expand and last years both the RX400h
and GS450h hybrids came ashore, herald-
ing the start of the PERFORMANCEHY-
BRID philosophy. While the former
model was old in terms of design age and
received mixed reviews, it paved the way
for the next generation version, which has
just gone on sale.
Today, Lexus South Africa’s monthly sales
exceeds their average annual sales volume
for the last 11 years and it seems safe to say
that there won’t be another false start.
Both barrels are smoking hot.
by Adrian Burford
W i l d e T h i n g s
69A u g u s t 2 0 0 9
Too SquaredMany Swallows makesa SummersIt is close to impossible to open a newspaper or magazine
today without coming across the most recent Ponzi
scheme, and to read of the numerous victims of various
scams. I was feeling left out until I realised that I am also
a victim of a Ponzi scheme, of sorts. This one is more like
a pyramid scheme, and it’s called Pick ‘n Pay. Think
about it. Every single tin of baked beans, every grain of
HTH, every mm of deodorant, whatever you buy, a
small percentage ends up in the pockets of the guys at the
top of the pyramid. And a minute percentage of an
humongous sum can really add up to something substan-
tial. Most, if not all, businesses operate like this, but what
really galls me is the quality of food that my wife pro-
cures from her weekly visit to the local store. I don’t
know whether my better half has the anti-Lazarus touch,
or she beams some anti-matter particles, or whether she
simply has an uncanny knack for picking out the runt of
the litter each time she selects a product, but whether it
is bananas, or lettuce, or grapes, or milk, or tomatoes,
anything that can be defined as fresh food, they all seem
to expire within hours of purchase. And when it comes
to meat, even the lean mince meat she brings home has
always got an inordinate amount of bone and gristle in it.
This should simply not happen! Thus, when I read that
ex CEO Sean Summers had been taken for a significant
ride by a fellow called Tannenbaum, my first reaction was
that the concept of Karma may have some foundation.
Not that I take pleasure in someone else’s misfortune, but
I must admit that in this particular case, I felt that for
every swallow of overripe tomatoes, curdled milk, soggy
lettuce, mushy banana, and even the cracked tooth*
courtesy of “lean” mince meat, some come-uppance had
manifested itself, and in some small way the balance of
the scales had come more into line. Many swallows may
make a Summers, but Barry’s indiscriminate shotgun had
at least scored one direct hit. * After a painful night, the
tooth was pulled and replaced within an hour by the best
dentist south of the Limpopo, one Pieter van den Bergh from
Centurion. I recommend him strongly.
Metro’s Fiscus at PerilAt the recent launch of the revamped Subaru Impreza, Dawie Olivier
from Subaru revealed that the WRX had been governed so as not to
exceed 210 km/h. This was met by hoots of derision from the assem-
bled petrol heads, who on the whole measure everything in kW, Nm,
speed, acceleration, and other penis enlarging characteristics. This got
me thinking. Not the hoots from the hoi polloi, but the speed limita-
tion. With the maximum legal speed on any road in South Africa set
at 120 km/h, limiting a vehicle to 210 km/h is surely illogical. Why
not govern every vehicle at 140 km/h (to allow for a modicum of over-
taking), and with all the electronic gizmos now available, why not go
even further and control the speed of cars from gantries on the road,
so that no car can exceed the speed limit on that particular stretch of
road by 20 km/h. Imagine the reduction in road accidents, road
deaths, injuries, gridlock, fuel wastage, etc., and the concomitant
improvement in traffic flow and productivity. One negative side effect
would be that entire industries would take a hit – tow truck operators,
paramedics, insurance assessors, panel beaters, and many more would
soon be joining the ranks of the unemployed. The biggest casualty
would be the metro police. Not only would their biggest source of rev-
enue dry up, but the previously diabolically employed would actually
have to get involved in genuine traffic enforcement and productive
and rational police work! Perish the thought, this would be simply
UNTHIKABLE! and not in Wayne’s world.
Murray Mixed-UpHaving spent some time in New Zealand, I believe that I am qualified
to comment on the dysfunctional behaviour of these rather strange
islanders. However, every now and then, they do still manage to take
my breath away. One such occasion was a recent rugby match between
the All Blacks and Italy at Christchurch on 27 June 2009. The game
was not going to plan, i.e. NZ was not putting the expected 50 points
on the scoreboard, much to the chagrin of the one eyed commenta-
tors. Therefore, when the TMO disallowed a NZ try after a blatant off
the ball tackle, Murray Mixed-Up Mexted made the breathtaking
comment that the try should have been allowed because the incident
had occurred before the try line. Wow, it seems that their Suzie blam-
ing days have metastasised into something even more extreme.
Death Becomes HimI’ll keep this brief, because my nausea threshold is severely tested by this story. Does death absolve one of one’s sins? In the case of
Michael Jackson, it does appear so. Within minutes of his death been announced on the news channels, he was being lauded as the
greatest human being ever to have graced this planet, by every single news channel, from Sky to the BBC. With a stroke of the
coroner’s pen, a seriously disturbed individual had metamorphosed from paedophile and plastic surgery’s worst advertisement
to something akin to a saint. It was the equivalent of declaring Adolf Hitler as a strong candidate for the Nobel Peace Prize.
What has happened to good old fashioned objective journalism? I weep for the profession.
by Fingal Wilde
A u g u s t 2 0 0 970
Howard Keeg test drives the Fiat Grande Punto 1.4 T-Jet and the Suzuki Grand Vitara 2.4 a/t 4x4
With my vehicle evaluations, I have been accused of being rather long winded and anecdotal, sofor this issue, the pendulum is going to swing radically, and I shall do my twitter thing. Well, alittle bit more than 140 characters. Before I begin; a little background. I tested these grandvehicles within a week from each other, so my observations are from a comparison point of view.But, even if I drove these vehicles in different years, I think that I would have come to identicalconclusions. All that I can say is that here indeed, despite the shared grand/e suffixes, here weretwo diametrically different cars, and truly chalk and cheese.
Grande Punto - Viva la differenza
Grand Chalk and Cheese
First up was the Fiat Grande Punto 1.4 T-Jet, and what
a revelation. A city car with a difference. No longer
shall I ever claim that all cars are much of a much ness.
With this vehicle, I had my motoring journalist
Damascus moment. A colleague once told me that he
always looked for the soul of the vehicle, and after this comment I
gave him a wide berth as I was convinced that the soul he was talk-
ing about was the sole of his shoe that not only came into contact
with the clutch pedal, but also the sole of the shoe that came into
contact with the socks that he was smoking. But, he does have a
point. He is still an absolute idiot, but in this case he may have
been on to something. This particular Fiat Grande Punto is an
amazing vehicle, with power that belies its engine size and it seems
to do far more than the already impressive 88kW as stated in the
Italian mag Panoramauto, which I use as my motoring bible. For
example, going up the N1 just before the New Street off ramp, at
120 km/h in fifth gear, I accelerated and the car responded mag-
nificently – good grief, up a steep incline! This car kept on surpris-
ing me, and every couple of days I looked under the bonnet to see
if Fiat had sneakily put a 2.5 litre engine under the hood. This is a
city car with a zest that I simply cannot stop talking about, and
must be one of the best kept secrets in South Africa. The NAAM-
SA sales figure of 19 units for the whole Punto range in June 2009
is simply inexplicable. The Fiat marketing guys should be shot.
V e h i c l e E v a l u a t i o n
V e h i c l e E v a l u a t i o n
71A u g u s t 2 0 0 9
Grand Vitara - Suzuki Smooth
There you have it, chalk and cheese, wors and pap, and east meets west, but I’m not so sure that never shall the twain ever meet. It takes allshapes and sizes of vehicles to populate our roads, whether it is French, German, Italian, Japanese, or dare I say it, Chinese. As they say in
the classics, “Se i francesi portano il berretto, gli italiani portano la lobbia.” And hats off to that!
Now that we have dispensed with the chalk, now
for the cheese. But the Suzuki Grand Vitara 2.4
a/t 4x4 is not just any old cheese; this is more like
Béchamel Sauce. This car is smoothness personi-
fied, both on and off road. Not a nippy and zippy
city car like the Fiat Grande Punto, the Grand Vitara is a superbly
built utility vehicle that oozes style and comfort. Whilst this car
could be considered impractical in a first world city, in
Johannesburg it makes absolute sense. Johannesburg is billed as a
world class African city, but anyone who has travelled to other
cities in the world will tell you that Johannesburg is more like an
African class world city, with shocking roads and treacherous pot-
holes lurking around literally every corner. Thus the well sprung
Suzuki, shod with fat Bridgestone Duelers, and with enough
ground clearance to clear all third world obstacles, makes for com-
fortable driving in most circumstances. And if you want to go off
the beaten trail, it will take you there without much fuss. Overall,
a great package for someone who wants an all round vehicle, with
only one small gripe. The automatic box does not like aggressive
pulling off (sometimes necessary with our newly minted and unli-
censed drivers), but this is a small inconvenience in the big
scheme of things.
A u g u s t 2 0 0 972
Me Too, Please When I was invited to the Alfa Romeo MiTo launch on the 8th July 2009, I had aninkling of what to expect, based on the fact that a few weeks earlier I had had thepleasure of testing a Fiat Grande Punto 1.4 T-Jet, and I had become a Fiatistiovernight. Now I eagerly awaited the Alfa experience, and my conversion to an Alfisti.
The Fiat T-Jet 1400 engine pushed out 88 kW, and the specs on
the Alfa MiTo promised a fire breathing114 kW, so I knew that
my socks were about to be blown off, but these guys are full of sur-
prises, and in this case it was not the kW that made the difference,
but the Nm, particularly in Dynamic mode. This became evident
on the appropriately named dynamic track at Gerotek, when you
never had to go down below third gear, even on the first tight
uphill. The car just eats up the tar and literally pulls you through
the corner. And to get the car to misbehave, you have to go to
driving extremes. Dynamic mode, you may ask? Yes, it’s the D in
the D.N.A. which Alfa has introduced, thanks to the latest
and greatest in electronic systems (from Bosch, incidentally) – it
stiffens the suspension, eases off on the nanny parts of traction
control, and loads up the electronic steering. D is for Dynamic
(i.e. boy racer mode); N is for Normal or Neutral (city driving);
and A is for All Weather (maximum safety even in difficult grip
conditions). The A is not really relevant to our part of the world,
as it is basically for snow and sleet, so unless you live in Rhodes or
the Malutis you’ll not be using it much. We drove back to
Johannesburg in N mode, and what a pleasure to drive a car that
is compact but spacious at the same time, sedate but reactive when
required, and thrifty to boot. And naturally, being Italian, very
stylish, taking its cues form the 8C Competizione in things such
as side windows, front bumper, headlights and taillights. The qual-
ity of finish is also top class, with the only nod to bling being the
slightly over the top gear knob. At the introductory price of R228
500, this could be described as a steal. And finally, my apologies
for the Me Too play on words, but Alfa is also guilty, the “Mi”
being derived from Milano, the style capital of the world and
where the design came form, and the “To” from Torino, the more
industrial town that builds the vehicle. I could go on and on, but
I have to leave some space for some stunning pics.
(quickpic)
A u g u s t 2 0 0 974
Shark Attack“We are black, we are white, we are, we are dynamite” is the Sharks war cry, and thiscould be applied to the feeding frenzy at the Hellenic Club in Durban North on theTuesday evening, the 21st July 2009, when the Partinform Automotive Trade Showvisited the city of new street names, to impart its unique brand of knowledge, wisdom,and information all packaged into a brief interlude of networking, infotainment,snacks, and a laid back quiz show.
The eThekwinians may have missed out on the sardine
run this year, but the nets were out at the Hellenic Hall
and the catch at Partinform more than made up for the
paucity of pelagic fish. Over 400 parts purveyors from
Durban and the KwaZulu Natal hinterland attended to take
advantage, in the words of Partinform chairman, Colin Murphy,
of the “opportunity to speak directly to the manufacturers, and to
find out about the ‘Real Deal’ offered by South Africa’s automo-
tive component manufacturers, in the form of quality brands,
technical support, comprehensive range, and value for money”.
Colin also warned of the recently promulgated Consumer
Protection Bill that is coming like a steam train and which is sure
to have a profound effect on the industry. The good news is that
those who deal in quality product will have nothing to fear, as the
bill is aimed at protecting the consumer from shoddy goods and
poor service.
Automotive Business Review was there to take in the action, and
followed the guests around, kibitzing at the stands:
Howard Keeg follows the action
Pravin Gopal, of Bluff Batteries Automotive Spares, Durban,learnt all about Champion’s Eon range of spark plugs. These
plugs only need to be replaced after 60 000 km of sparking serv-ice, and can handle both leaded and unleaded fuel with aplomb,
and are recommended for 95% of the post 1995 car parc.
Ranen Gounder fromSeraps Spares Stangerholds the high qualityCV boot from Huco.ABR was delighted todiscover that Seraps isSpares backwards – welove to see innovationin words as we are theflag bearer for Wordsin Action
When brake pads arereplaced, the springs andclips are sometimesignored and even get bentand twisted in theprocess. Never mind thatthey have already lost their ten-sion because of the variableextremes of heat and cold towhich they have been exposed.Quick Brake recommends thatthese be replaced every time thecar gets new brake pads. GrantDensham of Natal Re SleevingPinetown took this advice toheart.
Vinesh Goberghan fromAlert Engine Spares,Pinetown, inspectingthe MS motorcyclebattery at the Exidestand. He was assistedby Tony Allison, FirstNational Battery’sRegional Manager inKwaZulu Natal.
People + products= Knowledge and Information
A u g u s t 2 0 0 9
Safeline developed the wearindicator for taxi pads, to
warn the taxi driver whenhis pads need replacing.
And to encourage him toreplace these pads, Safelineare also giving a free soccer
ball with every purchaseuntil the 2010 World Cup.
This is what AhmedDawood of Steves Auto
Clinic discovered when hevisited the Safeline stand.
Mark Johnson, Fram’sregional representative, has
an affection for all ofFram’s products. He insist-
ed that Dan Ramluganof Gaydons Motor
Spares, Durban, hear allabout the diesel waterseparator, which doesthe important job of
taking any water out ofdiesel fuel.
Kevin Tupper from Speedy Tyre &Exhaust, Pinetown, was doomedfrom birth to have a fascinationwith all things plastic. His motherhas an extensive collection ofTupperware, so Kevin could notresist the large plastic special cellat the Willard stand. This cell isused for lighting on trains, standby applications, and a variety ofspecial needs. The beauty of thisproduct is that it lasts for 10 yearsand more.
Batteries are dry charged, and then electrolyteis added for activation. To get precision in
this activity, Sabat provides the exact amountin a plastic container for specific batteries.Dennis Govender of Prebco Automotive,
Clairwood, Durban, was the recipient of thisinformation, and he described this solution as
“horses for courses”
Hamid Khan from Motorquip Estcourtinspects the Bosch Aerotwin wiper blade, abracketless twin rubber blade with built in
spoiler, that is utilitarian in that it is vehiclespecific or may be retrofitted.
Sean Schult from Raybel Auto Engineering,839 North Coast Road, Durban, does animpressive job of holding up a metal free
filter from GUD
Henkel SA now has thesole distribution rightsfor WD-40 in SouthAfrica. This is one ofthe things that DhayaNaidoo of FrenchTech Auto, Durban,learnt when he visit-ed the Loctite stand.He was also intro-duced to the O-RingMaking Kit for usein emergencies.
75
A u g u s t 2 0 0 976
Saveen Maganlal of National Midas Ladysmith was warmly welcomed by Scot Arnold and Lynn Dunn to the Goodyear Ramstand, who wanted to give him the full dope on the GatorbackPoly-V Belts in the new colours of yellow and blue, to indicate
that it is a Goodyear Engineered product.
Amon Meyiwa of FieldsAuto, Kloof, was particu-larly interested in Luk’scomplete matched kit forthe VW Sharan, incorpo-rating the Luk developeddual mass flywheel
Nakesh Naidoo of Newlands AutoParts & Accessories drove all theway from Mthata, Eastern Capeto attend the event. And the tripwas worth it, because now heknows all about the Ate PowerDisk, which is designed for thepocket rockets, to help in heatand gas dissipation, whichsolves brake fade whilst alsodeglazing the pads and remov-ing any lingering dust.
The Rancho heavy duty off-road range ofshock absorbers do the job for the premium
SUVs and 4x4’s – here at the Monroe standSogie Govender of Gaydons Motor Spares,
Durban, learns all about the nine wayadjustable feature.
When Faan Pienaar of DurbanFuel Injection Services visited the SKF
stand, he picked up the importantinformation that SKF’s wheel bearinggrease’s temperature range can handleextreme conditions of hot and cold –
from minus 30 degrees Celsius to plus160 degrees Celsius. This picture wastaken whilst Faan was still enjoyingthe evening. Unfortunately, he wastaken to hospital shortly after call-
ing Howard Keeg “oom”.
1. What is the Sharks war cry?
2. What brand does First National Battery use for their motorcycle batteries?
3. What is the temperature range of SKF’s wheel bearing grease?
Name and Surname: __________________________________________________________________________________
Company: ___________________________________________________________________________________________
Position: ____________________________________________________________________________________________
Postal Address:_______________________________________________________________________________________
Contact Tel. no’s:_____________________________________________________________________________________
e-mail address:________________________________________________________________________________________
77
The Winner
Be sure to attend to stake your claim for some Ferrari fun.
In addition to the winners at the Partinform
shows, four lucky winners will be drawn out of
the hat at the Port Elizabeth Partinform on the
13th October 2009. They will be advised via
e-mail and telephone by the 27th October 2009,
and the winners from the shows plus the
October draw will also be announced in the
November 2009 issue of ABR. To enter, all you
have to do is to answer three questions:
Send your answers to fax 086 6579 289 or e-mail [email protected] with the following details:
Competition Corner
The winner of the Forza Racing Ferrari Track Experience, to beheld at the Zwartkops Race Track on Friday 19th November2009, was Gavin Lazarus, whose chance of a lifetime came aboutbecause three was his lucky number on the night. Firstly his namecame out of the hat, secondly he knew that GUD manufacturesand markets three types of filters; air, fuel, and oil; and thirdlybecause he stood next to the lucky lady with the Ferrari briefcase.
Three more racing experiences are still to be won, at:• Klerksdorp Tuesday 8th September 2009• Port Elizabeth Tuesday 13th October 2009• White River Tuesday 10th November 2009
A u g u s t 2 0 0 9
C o r p o r a t e C o n s c i e n c e
A u g u s t 2 0 0 978
An Inspiring Invitation to theAutomotive Aftermarket IndustryIn the previous issue of Automotive Business Review, we looked at Little Eden, a registered non-profit organisation which caresfor persons with mental handicaps. Little Eden is one of the institutions that Sparepro assists as part of their corporate conscience initiatives. ABR takes a closer look at thephilosophies of Patrick Latoucheand how he has responded to theneeds of Little Eden.
Little Eden looks after children who will never be able
to contribute to the country’s economy, and there-
fore the attitude of many is that it is a waste of
money to give money to this project as it is seen as a
waste of money. Patrick sees this as very unfair as the
children did not ask or choose their fate. As men-
tioned in the July 2009 article, Domitilla Rota Hyams, the
Founder of Little Eden, motivates her good work with the philos-
ophy that whilst people with intellectual disability do not con-
tribute to society in the conventional sense, they do have great
value in that they touch our hearts and make us better people, and
that more should be done to ensure the comfort and safety of these
special people. Patrick ascribes to this philosophy, and he has taken
steps to provide Little Eden with assistance on a long term basis.
What Patrick has done is to sign an internal “debit” order where-
by he donates a sum of money each month to an internal fund,
and he has encouraged the Sparepro staff to sign up for at least R10
a month, on a voluntary basis. Sparepro makes this really worth-
while by matching these contributions, Rand for Rand, and
already the amount generated is exceeding R1 600 per month, and
Patrick is hoping that this will grow. Patrick says that the assistance
comes in the form of monthly needs, “The debit order is internal
within Sparepro and not to give the money as such to Little Eden.
The money is used to negotiate a monthly hamper of goods to be
supplied through a supermarket according to the wish list of Little
Eden. It is all done with total transparency”.
Patrick has also issued an invitation to the rest of the automotive
aftermarket industry, to join Sparepro in this initiative. He assures
those who take up this invitation that by doing this they will grow
as human beings, grow as individuals, and grow as businesses. As
Patrick says, “Business is like a human being, because it represents
the collective souls of the people in the business. And healthy souls
equal healthy business”. He adds that even if this does not exist in
a business, it can be cultivated, with the conclusion that “It is more
than just business!” if this does not convince you, then how about
the Prayer of St. Francis of Assisi, which is also the Little Eden
prayer:
Little Eden, situated on the cnr of Harris and Wagenaar Streets, Eden Glen, Edenvale, is registered as a non-profit organisation
(NPO 001-827), and may be contacted at P O Box 121, Edenvale 1610, or go to www.littleeden.org.za
Lord, make me an instrument of your peace.Where there is hatred, let me sow love.
Where there is injury, let me sow pardon.Where there is discord, let me sow harmony.
O Divine Master, grant that I may notso much seek to be consoled, as to console,
to be understood, as to understand, to be loved, as to love.
For it is in giving that we receive;it is in pardoning that we are pardoned;
and it is in dying that we are born to eternal life.
79
“We collected R 2140 from Staff/Sparepro and
also received a gift voucher from Pick N Pay for
R 150. We delivered the first hamper on
Saturday 11 July. Attached, you will find the
picture of some the team members who con-
tributed and who were there; picture taken at
Little Eden. The lady on Patrick’s left is Mary,
the daughter of Domitilla who founded Little
Eden. Mary took us for a tour and explained
the background and philosophy of the organisa-
tion. The guys were touched and this is con-
tributing to a stronger bond and better team
spirit at Sparepro. The guys are already talking
of repainting the swings for the children, of fix-
ing damaged equipment and of giving Little
Eden a Christmas party”.
A u g u s t 2 0 0 9
C o r p o r a t e C o n s c i e n c e
update.... and a
From
p 39
from Patrick Latouche
In the next issue of ABR, we reveal
H o g g ’ s W a s h - by Gilbert Hogg
A u g u s t 2 0 0 980
Bad Sportsmanship,with a large dollop ofHypocrisy
The recent Springboks and British & Irish Lions test series refers. An exhilaratingexhibition of rugby union at its best. Physical confrontation, slick backline moves,high drama in the scrums with ascendancy swinging one way to the other, brillianttries (wasn’t Jaques Fourie’s effort in the second test at Loftus a pearler!), and thetrue passion of rugby union test battles at its best. Great stuff, but you would notknow of this if you read the rubbish emanating from the poison pens of the Britishrugby scribes.
Here are some excerpts from
the guardian’s of British
rugby pride, Eddie Butler
and Richard Williams, after
the bitter disappointment of a series loss.
Butler dishes up, “The stance against dirty
play has not had the desired effect. With
no backswing required – of head for a
butt, or fist for a punch – eye gouging
continues to be the weapon of choice, it
appears. What’s more, according to sever-
al of the Lions on Saturday night, Burger
was far from being the lone hit man of
Loftus Versfeld”. Not to be outdone,
Tricky Dicky says “In the modern world
the odds are stacked so firmly against the
Lions that their opponents do not even
need bonuses such as the timidity of
Saturday’s referee, Christophe Berdos of
France”. Even our unwanted alien with a
South African passport, one-eyed John
Robbie had a go at Schalk Burger in his
column in the Saturday Star, suggesting
that he apologise for his grievous sins, and
not a word about the great rugby and the
thrilling encounters. Now let me say from
the outset that I believe Schalk Burger
should be taken aside by someone of
stature and read the riot act, not least
because he gives these idiots a chance to
whinge and to ignore the great rugby and
the Springbok victory. Not Pieter de
Villiers, I said someone of stature! Even
court jester de Villiers said some home
truths when he said that rugby is a physi-
cal game of contact and collision, and that
tutus should be left at home. But what
really gets my blood boiling is this holier
than thou attitude from guys who are def-
initely not angels. They frequently play
the man and not the ball, and to really get
some perspective, all that one needs is to
read the recently published Once Were
Lions by Jeff Connor and Martin
Hannan. Just listen to this, from three of
the 1974 squad who won a series convinc-
ingly. Andy Irvine: “The fact is that we
were dirtier than the Springboks or any of
the teams we played, and guys like Ian
McLauchlan and Bobby Windsor didn’t
muck about.” Roger Uttley: “When I
came back from the tour, in my first train-
ing game I flattened one of the props and
when the coach complained I told him
that it was just what I was doing on the
tour.” Sandy Carmichael completes the
picture by saying that his unwillingness to
take out an opponent without been direct-
ly provoked may have contributed to him
being left out of the test team. This was of
course the famous “99” call, and the
biggest boast about this was that of JPR
Williams running 50 metres to punch
anyone indiscriminately, and he still talks
proudly about it!
Now that we have some perspective, let us
look at some other issues. The suspension
of South Africa’s most influential tight five
player, Bakkies Botha, was disgraceful,
and it was most probably done in the heat
of the moment, and as a sop to the whing-
ing poms. To my mind, he executed a per-
fectly legal and classic clearing out
manoeuvre, and was punished for it. All I
can say is that both the citing official and
the judicial officer obviously did not take
the rules of rugby into account, and that
they should never be allowed to ever be
involved in officiating again. I say this
clearly, and if they believe that this is
defamation; I challenge them to take me
to court, so that they can explain why
numerous such incidents (at least five per
match) do not get the same sanction. Now
for my final point. It has been reported
that the British & Irish Lions refused to
congratulate the Springboks for their
series victory after the second test, and
that they said they would only congratu-
late them if Schalk Burger apologised for
the eye gouging incident. Don’t do it,
Schalk. You will have been bullied by not
very nice people. Rather insist that the
British apologise for the deaths of inno-
cent women and children in the concen-
tration camps in the Boer war, whether it
was done with tutus or not, or with a
“99”call. Then the Springboks can apolo-
gise for winning the series.
“Your country wantsyou to whinge”
Editor’s note: This article was written before the third test, when the Lions regained some pride by beating the Springbok second string.
F a s t W h e e l s
A u g u s t 2 0 0 982
WesBank bringsMotorsport to SowetoRoad closures can be irritating, but on Sunday, 19th July 2009, no one
minded when Chris Hani Road and Nicholas Street in Soweto, Gauteng,
were closed from 08h00 to 18h00, because the WesBank Street Race had
come to town!
Before the festivities began, ABR interviewed
George Nyabadza, General Manager Marketing
Wesbank, to get a first hand account of the ration-
ale behind this groundbreaking event. George put
it succinctly; “Wesbank is the leaders in asset
finance, so for us it was a logical step. Future
growth for us, as far as the eye can see, is the black market, and
whilst we acknowledge the existence of the so-called ‘black dia-
monds’, we are more interested in the ‘black coal’. Geologists will
tell you that diamonds come from coal, and WesBank is looking
long term, and encouraging this process, by digging deeper and
going to the source.” George adds that there is a misperception
that motoring is not a black sport, and points out that this has an
historical basis, not because of a lack of interest, but rather a lack
of opportunity. This is the primary raison d’etre for bringing
motorsport to Soweto. As George points out, “we could have
bussed spectators to Kyalami, but this would have defeated the
object, as the future of motorsport is here on the streets of Soweto.
Thus, in partnership with the City of Johannesburg and
Motorsport South Africa, we are providing the catalyst and the
impetus for bigger things.” How big, you may ask? George’s vision
is BIG, as he wants one day to see a Formula One street race in
Soweto!
F a s t W h e e l s
83A u g u s t 2 0 0 9
George Nyabadza, General ManagerMarketing WesBank, described the day as
“a memorable day for Soweto”
The WesBank V8
Supercars strut their stuff
The Sowetanswere out in force
on the day
The Fire Service guys were there todouse any fires
The local biking community supported
the event
There’s method in his madness. WesBank made sure that Sunday 19th
July was a community event, because George’s vision is all encompassing.
He wants an industry to develop around motorsport, and the townships
must be the nursery. He stresses that whilst racers like Tschops Sipuka
can be superb role models for aspiring township youth, it is the leverage
effect that truly excites him. He calculates that even a small racing team
has a ratio of four back-up personnel to one driver, and with the big
teams this ratio can go as high as forty to one, with mechanics, welders,
electricians, engineers, pr staff, advertisers, sponsors, etc. all playing sup-
porting roles to the higher profile drivers. For WesBank this initiative is
a win-win situation, as over and above the corporate social investment,
this event begins to empower people, and
inspires them to enter the exciting world of
motorsport, and who knows, one day the
F1 champion could be proudly Sowetan, who
got into the racing cockpit because of events
like the WesBank Street race.
The Metro Cops could have made a killingin speeding fines
F a s t W h e e l s
A u g u s t 2 0 0 984
As we go into the second half of the season, 2009 will go down in Formula One history as one of the most dramatic and turbulent on and off the track.
Out of the blue comes a determined team that only came into exis-
tence three weeks before the first Grand Prix. in Australia – and
won with a one-two finish. Honda had pulled the plug on Ross
Brawn and his men in December. It was then left to him after
doing great things for Ferrari and Michael Schumacher in the past
to believe in what he and the team had designed to keep his labour
force of technical people and his two drivers, Jenson Button con-
sidered a has-been up to then - and Rubens Barricello intact. Since
then it has been a fairytale of a season for them. Using Mercedes
power they have pulled in six wins in seven races. Only problem
now is that other teams are starting to catch up. And it’s not only
the diffuser that made the difference. It was a wake-up call for the
others to look closely at their cars. Whilst the mighty Ferrari test-
ed well in early season practice I am sure they had corporate inter-
ference from the Fiat empire, and became mid-field runners. It is
the Italian way. Their greatest opposition, McLaren (Mercedes)
who also had all sorts of interference, accusations and changes of
management, not only dropped off the podium but faded down
the pack. Into the picture comes the Red Bull cool-drink team
from Austria with V8 Renault power. Their record up to then had
been a win last year at Monza in the wet. They promptly came
onto the scene and posted three one-two finishes.
What gives?Well, Red Bull certainly believed in designer Adrian Newey and his
cars and their two brilliant drivers, the German Sebastian Vettel
and Australian Mark Webber, and they have delivered. We heard
the Australian and Austrian National anthems played together
after the Grand Prix at the Nurburgring for the first time in histo-
ry. The Formula 1 Grand Prix world has been turned on its head.
Renault but for the brilliance of two-times world champion,
Fernando Alonso, has also shown no pace. Under-funded Williams
are always there thanks to their vast Formula 1 experience. They
could be in for a lucky win with Rosberg. BMW are already
thinking of stopping any development on this year’s car and
concentrating on their racer for 2010. In 2008 they were leading
the Formula 1 Championship and thinking about world titles.
Toyota? The most unpredictable of the lot. One minute they grab
pole position and look like winners and the next finds them
foundering at the back of the field. And it’s not their drivers. That
could also be corporate decisions from Tokyo. Toro Rosso with
Ferrari power behind them hasn’t done anything memorable.
I think both their drivers will be looking for new jobs.
Force India with Mercedes V8’s is starting to show what they can
do and have even led a Grand Prix. There is nothing wrong with
the driving of Fisichella and Sutil either.
2009 as far as the racing goes is becoming very unpredictable. It
has been better than most years. It has been exciting, processional
at times and dramatic at the various Grands Prix. One of the com-
mon denominators in the scenario is the Bridgestone Tyres. On
cold roads the Brawn GP team just doesn’t get grip. I am sure the
tyres with different compounds that have to be used by all teams
during the race are the same for the entire field. But they don’t nec-
essarily suit all teams on hot and cold roads. It is all part of the
Formula 1 scenario. Rumour was rife at the German Grand Prix.
Kimi Raikkonen looks he is going to leave Ferrari and go rallying.
His place will be taken by the demanding Alonso to get Ferrari
back in front. Alonso did the five fastest laps in Germany in the
Renault.
Barricello is a bit miffed as he feels he has the potential to be a
world champion. After the German Grand Prix where he led in a
lighter Brawn with less fuel than most other teams, he wasn’t look-
ing too happy and felt that as he had been leading the team let him
down. His team boss was heard to say, “Rubens can’t expect to win.
He only did the 12th fastest lap in the German Grand Prix.”
Oops. Anthony Davidson is standing by to step in. So as we go
into the second part of the season Jenson Button leads with 68
points. Vettel has 47, Webber 45.5 and Rubens Barricello 44.
Brawn leads the Manufacturers Championship with 112 points to
Red Bull’s 92.5. The others it seems haven’t got a hope of catching
the leaders on their current form.
Now what about the goings-on off the track. FOTA (Formula One
Team Association) representing all the manufacturers in Grand
Prix Racing with the exception of Williams and Force India, say
they are to form a break-away series if Max Mosley doesn’t step
down. From experience, manufacturers running their own cham-
pionship definitely doesn’t work. Maybe for a year or two, but then
some of them will pull out, particularly the non-winning teams,
citing budgeting reasons. Then the others will all follow. It has
happened before and it will happen again. Break away and you are
in the wilderness.
Or are you?Rumour has it that Bernie Ecclestone has already registered the
name “GP1” and is behind the break-away. This despite the fact
that we all thought that he and Max were long time bosom bud-
dies. Between them they have made Formula 1 the leading world
sport that it is today.
Honda say they would never return to Grand Prix racing whilst the
situation remains as it is today. They have to see some major
changes. For me, putting on a better show for the sports millions
of GP fans all over the world has not been mentioned once.
Come on, gang. Get your act together. Prediction – there will be
Formula 1 GP Racing next year. Max Mosley will not be the
President of the FIA. Jenson Button will be the World Champion.
by Roger McCleery
THE ON/OFF FORMULAONE SEASON CONTINUES
85A u g u s t 2 0 0 9
What can one say about my readers?
T h e L a s t W r i t e s
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by Baron Claude Borlz
This one is almost too painful to read ………………A man, getting on in years, finds that he is unable to perform in the bedroom. He goes to his doctor who tries a few things,but nothing seems to work. Finally, as a last resort, the doctor refers him to an African medicine man. The medicine mansays, "I can cure this." With that said, he throws a white powder into a flame and there is a flash with billowing blue smoke.Then the African medicine man says "This is powerful healing but you can only use it ONCE a year. All you have to do is say '123'and it shall rise for as long as you wish!" The man then asks "What happens when it's over and I don't want to continue?" The medicine manreplies "When your partner cannot take no more and is completely exhausted, all she has to say is '1234' and it will then go down. But bewarned, it will not rise again for another whole year!" The old gent rushes home, anxious to try out his new powers. That night he showers,shaves and smothers himself in aftershave. He slides into bed, cuddles up to his wife and says "123" and he feels a sudden movement in histrouser department, just as the medicine man promised. His wife turns over and asks "What did you say '123' for?