automotive business review - february 2009

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12 Pushing the Limits 20 Yank Tank 32 Alternative Fuels 46 Keeping Inflation at Bay 60 The Perfect Storm 68 Partinform Comes of Age

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

TRANSCRIPT

Page 1: Automotive Business Review - February 2009

12 Pushing the Limits

20 Yank Tank

32 Alternative Fuels

46 Keeping Inflation at Bay

60 The Perfect Storm

68 Partinform Comes of Age

Page 2: Automotive Business Review - February 2009
Page 3: Automotive Business Review - February 2009
Page 4: Automotive Business Review - February 2009

C o n t e n t s

4

66 1313 2323

Publishing Editor

Graham Erasmus

083 709 8184

Commercial Vehicle

Editor

Alwyn Viljoen

082 4589332

Intelli-Driving Editor

Eugene Herbert

082 941 3785

Correspondents

Beeton, Frank

Borlz, Baron Claude

Burford, Adrian

Ford, Adam

Haw, Marcus

Keeg, Howard

Malan. Daniel

Mather, Peter

McCleery, Roger

Twine, Tony

Wilde, Fingal

Published by:

Trilogy Publishing

Advertising Sales:

Johannesburg Office:

Marlene Erasmus

082 837 2668

Durban Office:

Peter Mather

082 456 8479

6 The Phoenix The Automotive Industry Roller Coaster8 What’s the Buzz

12 Cover Story Pushing the Limits18 Auto Topical The Best of Times ……19 Lux Lite Peter’s Soap Box20 Frankly Speaking Yank Tank21 AIDC Quiz Trivia Motoring Quiz22 Commercial Vehicle Comment Nissan Diesel Cautiously Optimistic23 Engine Remanufacturing A Double Bonus24 Bottom Line Basics Is There a Doctor in the House?26 Informed Comment From Private Jets to Hybrid Cars28 Tony’s Take Mickey Mouse Shows Less Interest30 Burford on Brands A Sporting Heart Still Beats32 The Tipping Point Alternative Fuels33 Vehicle Evaluation Grand Vitara 2,4 Manual34 Weighty Issues The National Department of Unresolved Problems35 AutoZone Update Getting a Grip on Tools36 Bike News Crème Buell38 Personal Profile Q & A with Henri Meistre42 Diamond Dialogues The Anti-Freeze Debate Hots Up44 Capricorn Insights The Purple Patch Continues

Page 5: Automotive Business Review - February 2009

C o n t e n t s

5

3333 5454 7878

46 Autoglass Clarification Keeping Inflation at Bay48 Current Affairs Know the Difference50 Tyre Safety Tyres Contribution to Safety in Motoring52 Top Class Topics The FTE Dictionary of Experts’ Tricks54 Environmentally Speaking Caring for the Environment74 Wilde Things A New Era for Africa?58 Filter Facts It’s Not the Aircon!60 Industry Comment The Perfect Storm62 Euroquip News Watch This Space64 Personal Profile Q & A with Manny de Canha66 Internet Strategies The Spider and the Fly68 Partinform Partinform Comes of Age

What’s in a Brand?Frequently Asked Questions

74 Corporate Conscience It’s More Than Just BusinessTreading a Conscientious Path

76 Fast Wheels Whither Formula 1?77 A Word on cars Mazda’s Best Kept Secret78 The Last Writes

Editorial Office:

81 Alma Road

Wendywood

Tel 27 11 656 2198

Fax 27 11 802 3979

e-mail: [email protected]

Website:

www.automotivebusinessreview.

co.za

Subscriptions and Data

Management:

Trilogy Trading & Promotion

P O Box 69

Wendywood, 2144

Tel 27 11 802 6020

Fax 27 11 802 3979

e-mail: [email protected]

Design and Reproduction:

j. Kraft Information Design cc

Tel: 012 997 6946

Fax: 012 997 6987

e-mail: [email protected]

Printing:

Business Print Centre, Pretoria

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.

Ian Flint, Protectall Tyre BandsNational Sales Manager

Winner of the December 2008F1 watch competition

Page 6: Automotive Business Review - February 2009

T h e P h o e n i x

F e b r u a r y 2 0 0 9

The AutomotiveIndustry RollerCoaster

Having been involved in the automotive aftermarket since 1975, may I have the pre-

sumption to reveal as I enter my 35th year of participation in and observation of the

ups and downs of this addictive industry, my belief that I am eminently qualified to

comment on the current economic scenario, and to impart some sage advice to those

who say that all is gloom and doom, and that we’re done for. There is light at the

end of the tunnel; all you need is a torch to see it from where you’re standing, and

if you do not have a bright enough torch, I can arrange for an Australian cricket

spectator to lend you a laser pointer.

ABR’s webpage – www.automotivebusinessreview.co.za

Granted, as we enter 2009, things are not good. Just

read Brand Pretorius’ prognosis on page 60 to under-

stand the depth of the problem and to understand

that from a new vehicle sales perspective we are in a

perfect storm. Despite this, even from his straightened position,

Brand sees us starting to come out of the gale force winds in six

to nine months, and he is even more upbeat, albeit nervously,

about 2010 and beyond. His observations are given credibility by

the simple fact that he has, like us weathered veterans, seen it all

before and has observed the cyclical swings of an exhilarating and

maddening industry that has had its fair share of highs and lows.

It is from this premise that I wish, as editor of South Africa’s most

prestigious and most influential aftermarket publication, to com-

ment on the automotive aftermarket specifically. Before I make

my stunning observations, a little history if I may. In 1976, I was

employed at the P&A Division of a leading original equipment

manufacturer, when new vehicle sales took a nosedive, primarily

as a result of the Soweto riots. Red ink and retrenchments were

the order of the day, but what I remember most vividly was that

the marines arrived in the form of parts and workshop sales that

kept the manufacturer and the bulk of the dealerships from see-

ing their nether regions without the aid of a mirror. Similarly, in

1985/86, it was the aftermarket that was the shock absorber

when new car sales took the hit after P.W. Botha’s Rubicon

speech, and the resultant interest rate hike into the stratosphere.

The scenario that I have just painted is the introduction to my

first point; that the automotive aftermarket may be less glam-

orous than its bigger brother, but it is the more stable sibling,

handling ups and downs far more phlegmatically. My second

point is that the aftermarket always tends to lag new car sales by

four to five years, which means that from an aftermarket perspec-

tive, the healthy new vehicle sales from 2004 to 2007 bodes well

for sales, and that we are just about to enter an upward phase in

2009, which should intensify and peak round about 2011 to

2012. Those who have not been around as long as us greybeards

may be sceptical, but I am prepared to put on the block my sub-

stantial neck, and other bits of my anatomy, unfortunately not so

substantial, that those in the aftermarket who do not prepare and

plan for this upswing, will be left behind. You can take poison on

this prediction. So get out there and start marketing aggressively.

Let’s discuss this again in 2012.

Shades ofShades of

Dorian GreyDorian GreyBeing a modest fellow, I am com-

ing under increasing pressure

from some of my more involved

readers to disclose what I look

like. They are not satisfied with

the phoenix representation, which

relates to the origins of the maga-

zine. Their intense desire is to see the

features of the pearls of wisdom spouter.

The problem, as I see it, is the narcissistic nature of the publish-

ing industry. Not just our little niche of automotive vanity is

affected, you merely have to peruse any publication, and the odds

are very short that your reading space will be taken over by a

touched-up mug shot of some aging prima donna. On this basis,

I have been tempted to ease my svelte figure into a flame retar-

dant racing suit, and to pose provocatively, draping my gorgeous

and glistening form across the testosterone inducing lines of the

latest throbbing V8 thunderbolt, sending our readers into

apoplexies of lust and ecstasy. Alas, medical advice is that I sim-

ply cannot take the risk of an avalanche of lawssuit resulting from

all the coronary episodes, so I have had to plump for (Freudian

slip?) a basic head and shoulders shot. Just this once, folks, I do

not want to spoil it for the others. And I have to defer to the seri-

ous nature of this magazine. Next month, we’ll revert to the

phoenix, and leave the primping and posing to the Brad Pitt and

Angelina Jolie lookalikes.

6

Page 7: Automotive Business Review - February 2009
Page 8: Automotive Business Review - February 2009

For more “what’s the buzz” stories, go towww.automotivebusinessreview.co.za

F e b r u a r y 2 0 0 98

GAUTRAINS ARE COMING HOMEThe first shipment of two completed rail cars arrived in Durban on 1December 2008, and they are going to keep on coming. Each rail carmeasures 21 metres in length and weighs 46 tonnes, and they will betransported as an abnormal load by road from Durban Harbour toGautrain’s train depot in Midrand. The Gautrain rail fleet will total 96Electrostar cars which will be operated as four-car train sets. Fifteen ofthe rail cars including all 10 airport rail cars are being manufactured andcompleted in Derby, England. In Midrand, each rail car will undergoextensive quality and safety testing, including 3 000km of test runningin the standard four-car train set configuration on the Gautrain testtrack. During December 2008, ABR was privileged to see the transporta-tion in action at van Reenen’s Pass.

Restored Manchester-Built Model A Ford ReflectsCompany HeritageLaunched in America during December 1927, on the back of one of thebiggest advertising campaigns the world had ever seen, the Ford Model

A was an outstanding auto-motive success, with morethan five million built bythe time productionceased. Even today, it isregarded as one of the mostpopular collector cars inthe world, some half a mil-lion thought to have beenrestored, customised andpreserved in the States,although comparativelyrare in the rest of theworld. The newly-restoredModel A owned by John

Falder, MD of Manchester England paint manufacturer HMG Paints,holds a special place in the history of the company and the city itself.Dating back to September 1930, it is amongst the last Model As to havebeen built at Ford’s Trafford Park, Manchester plant, before productionwas transferred to Dagenham, and it first took to the road during thevery same year that HMG was founded by Harold Marcel Guest andJohn’s grandfather, Herbert Falder. It also featured a unique contempo-rary ‘hatchback’ design, with a rear opening door to facilitate its use as a

commercial traveller’s car.

KPMG GLOBAL AUTO-MOTIVE SURVEY WILLBE A HIGHLIGHT ATAUTOMECHANIKA SATRADE FAIRThe presentation of KPMG’s 2009 globalsurvey of automotive executives will be oneof several important events that will takeplace during the staging of the first everAutomechanika South Africa aftermarkettrade fair at Expo Centre, Nasrec, on March

18-21 2009. The worldwide KPMG survey has been conducted annual-ly since 1999, with KPMG South Africa having arranged presentationslocally since 2002. The survey results will undoubtedly be the mostimportant to date as the world automotive industry faces the biggestchallenges to its survival in history. In fact, the current situation in theautomotive industry is so serious that the CEO of the Fiat Group,Sergio Marchionne, has gone so far as to say, in an article in AutomotiveNews, that it is possible there will be only six global volume manufactur-ers - those producing at least 5,5-million vehicles a year – withinthe next two years.

Metro Police gets up AA’s NoseThe AA has noted that the Johannesburg Metro Police is yet again sen-sationalising speeding offences on the M71 near Leeuwkop Prison inKyalami, a section of road whose speed limits are inexplicably low, thusmaking offenders out of drivers who may be proceeding in perfect safe-ty. The M71 has recently been re-constructed into a wide, two-lane road,with excellent visibility. The speed limit of 60 on this entire road is notcommensurate with the nature of the roadway. It also does not comparewith other, similar roadways which have higher speed limits, such as the80km/h William Nicol Drive going through Johannesburg’s NorthernSuburbs, in itself a far more congested and dangerous road than theM71. In particular, the adjacent R55, a mere two kilometres away, isposted as 80km/h despite being a considerably inferior road. The AA’sopinion is that the Metro’s selective enforcement of the M71’s speedlimit is cynical and serves little other purpose than to generate revenueand publicity for the department. The AA calls on the authorities todesist from the current inequitable speed trapping practices on the M71,and adjust the posted speed limits to reflect the nature of the road andthe status quo on other similar roads.

W h a t ’ s t h e B u z z ?

Gavin Maile of KPMG

Hyundai Genesis named 2009 NorthAmerican Car of the YearAfter months of expert test-drives, critical acclaim and independentawards, the Hyundai Genesis took top honours in the most exclusiveaward in North America when it was named 2009 North American Carof the Year. A jury of 50 independent automotive journalists evaluated allthe new cars introduced last year and chose the 2009 Hyundai Genesisas the best new model. The award was announced at a news conferenceat the 2009 North American International Auto Show in Detroit.

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Page 9: Automotive Business Review - February 2009
Page 10: Automotive Business Review - February 2009

W h a t ’ s t h e B u z z ?

F e b r u a r y 2 0 0 910

The Vodafone McLaren Mercedes Formula 1 team launched the car it willcampaign in the 2009 FIA Formula 1 World Championship on 16 January2009 at its headquarters in Woking, England. Unveiled by world championLewis Hamilton and his team-mate Heikki Kovalainen, the new MP4-24bears little resemblance to its world championship-winning predecessor due to

the introduction of a raft of new rules that have radically reshaped Formula 1 ahead of the2009 season. Now featuring heavily revised bodywork, re-sculpted front and rear wings,slick tyres and a kinetic energy recovery system (KERS), the MP4-24 has been in develop-ment since September 2007 in order to successfully accommodate the huge changes to thetechnical regulations.

Chrysler ENVI – Plugged into the WorldWith its rapidly growing portfolio of ENVI-powered electric vehicles,Chrysler LLC is inspiring a personal mobility revolution, creating a newgeneration of responsible, no-compromise Chrysler, Dodge and Jeep® vehi-cles for consumers who care about the planet’s future and want to take careof it. Chrysler recently introduced three advanced electric-vehicle proto-types, while expressing its intention to broaden its all-electric and Range-extended Electric Vehicle portfolio across its vehicle line-up. At the 2009North American International Auto Show in Detroit, the Companyunveiled updated versions of those vehicles – along with two new electricvehicles – reinforcing a commitment to developing and bringing to marketa broad array of advanced electric vehicles for their brands. Chrysler willproduce at least one of these vehicles for North American markets in 2010(and European markets after 2010); with at least three more models to fol-low by 2013. Between its ENVI electric-drive vehicles and GEM neighbour-hood electric vehicles, Chrysler expects to have 500 000 electric vehicles onthe road by 2013.

Seat Belt Insanity – Only four out of ten vehicle occupants wear their seatbelts, according to the AutomobileAssociation of South Africa and the Bridgestone-backed Committee for Active Road Safety (CARS). The two organisations have released new dataobtained from the AA’s quarterly seatbelt survey. The research, which was carried out early in December 2008, confirmed findings from the pre-vious survey and gathered new data. A total of 3831 vehicles, containing 6987 occupants in all seating positions, were surveyed at six locationsacross South Africa. “As with our previous survey in September 2008, the occupant most likely to wear a belt in South Africa is the driver,” saidAASA Head of Public Affairs, Rob Handfield – Jones. “The wearing rate for drivers has dropped from 64% to 56%. Rear occupant wearing ratesremain dire, with left and right rear occupants recording wearing rates of just 8% and 10% respectively.”

Toyota has displayed the Toyota FT-EV concept at the North AmericanInternational Auto Show, and has confirmed its plan to launch an urbancommuter battery-electric vehicle (BEV) by 2012. The FT-EV concept, aswell as the compressed natural gas powered Camry Hybrid concept displayat the 2008 Los Angeles Auto Show, signal Toyota’s intention to broadenthe scope of its advanced alternative-fuel vehicle development. The conceptshares its platform with the revolutionary-new iQ urban commutervehicle. Already a huge hit in Japan, the iQ is lightweight and seats fourpassengers in comfort and security, while delivering exceptional mileage,sporty performance, unique refinements and a fun, youthful image.

TOYOTA BROADENS SCOPE OFADVANCED ENVIRONMENTAL TECH-NOLOGIES WITH FT-EV CONCEPT ATTHE DETROIT AUTO SHOW

President Obama Christens New Car atJan. 20 Inaugural ParadeAs Americans celebrated the inauguration of a newpresident of the United States, another new Cadillacgraced Pennsylvania Avenue, leading the proceedings.President Barack Obama rode in an all-new CadillacPresidential Limousine, continuing a long tradition ofCadillac limousines that have served many U.S.presidents. “Cadillac is honoured to again provide anew Presidential Limousine,” said Mark McNabb,North America vice president, Cadillac/PremiumChannel. “This is a great American tradition that we’redelighted to renew with an all-new car featuring thebest of Cadillac’s dramatic design and technology.”

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Vodafone McLaren Mercedes MP4-24launched at McLaren Technology

Centre

Page 11: Automotive Business Review - February 2009

W h a t ’ s t h e B u z z ?

Pure excitement and drivingpleasureMercedes-Benz and McLaren are adding the crowning glory to the modelfamily of their highly successful SLR super sports car with a new, uncom-promisingly spectacular car. There is neither a roof nor a windscreen toseparate the driver and passenger from the outside world; they enjoy unadul-terated high-speed excitement with all the attributes of a speedster. The newSLR Stirling Moss is also characterised by the most sophisticated technolo-gy and a breathtaking design which reinterprets the SLR legend. With478 kW/650 hp the SLR Stirling Moss accelerates its V8 superchargedengine from standstill to 100 km/h in less than 3.5 seconds, and has a topspeed of 350 km/h – no other series-production car is at the same time soopen and so fast.

Franz Fehrenbach honoured byADAC as “Personality of the Year2009”The German Automobile Association (ADAC)has awarded Franz Fehrenbach, chairman ofthe Bosch board of management, its YellowAngel prize as “Personality of the Year 2009.”In doing so, the executive committee ofEurope’s largest automobile club honouredFehrenbach for “the global corporation’s eco-logically oriented innovative strength, for

which he has been responsible.” Fehrenbach had, they said, single-mindedlydriven Bosch’s transformation from automotive supplier to an environmen-tal technology corporation.

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solution onp27

For more “what’s the buzz” stories, go towww.automotivebusinessreview.co.za

Page 12: Automotive Business Review - February 2009

c o v e r s t o r y

F e b r u a r y 2 0 0 912

Pushing the LimitsControl Instruments Automotive, after a period of intense and frenetic

acquisition, followed by a well considered and controlled restructuring

and consolidation, is on a mission. From an outsider’s perspective, it may

have been difficult to separate the wheat from the chaff as CI Auto went about the busi-

ness of cementing the building blocks in place, which is a prerequisite for the next phase

of its expansion. These building blocks will enable CI Auto to go forward with confidence

and to put it in a position to gain leverage from its inherent strengths, to allow a

renewed, refreshed and dynamic management team to begin to push the limits.

ABR’s cover photograph says it all. Three Pitts Specials,

representing the Gabriel Wings Aerobatic Team, pro-

vide a great metaphor for where CI Auto finds itself. To

attain the perfection of synchronised flight, and to per-

form daring aerobatic feats, requires the right mix. Firstly, tried

and tested aeroplanes; secondly, meticulous planning and prepa-

ration; thirdly a talented team totally in sync with each other;

and finally a support structure that inspires total confidence. The

cherry on this cake is the marriage of skill, science and art, which

is an alchemic blend of knowing what needs to be done, with a

dash of gut feel and flair, making it all very exciting. The end

result is a choreographed masterpiece. Mimicking this set-up, CI

Auto has been preparing itself these past 18 months, to emulate

the Gabriel Wings Aerobatic Team, this time in a real life sce-

nario which is firmly rooted to the ground in reality. The consol-

idation of various manufacturing units, distribution hubs,

administrative and technical offices, and various other bits and

pieces into one centralised location and one cohesive whole in

City Deep, Johannesburg, has similarly required meticulous

planning and preparation, to establish a support structure that

inspires confidence, and to allow a talented team to feed off each

other as they begin to push the limits. The hiccups that CI Auto

customers experienced during this transitional phase was unfor-

tunately part of the process. Not that it was planned, but as

Robbie Burns was wont to say, “the best laid schemes of mice and

men gang aft agley”. One only needs to look at the opening of

Heathrow’s Terminal Five to fully appreciate this long revered

quotation and to comprehend the trials and tribulations that

goes into the selection and establishment of a talented team that

is going to take you to the stars.

The management team that has been tasked with taking CI Auto

to new heights comprises seven dedicated and motivated people.

Each one hand picked and each one fully aware of the responsi-

bility resting on their shoulders. The aim of becoming the lead-

ing supplier of premium branded product to the automotive

aftermarket and selected original equipment manufacturers on

the African continent is both simple and complex. The simplici-

ty is in the brief, the complexity in the execution. Either way,

these men and women are up to it. The fulcrum for all these

activities resides at marketing and sales levels.

Page 13: Automotive Business Review - February 2009

The Team

Grant Fraser – marketing director, CI Auto

The mantle of success or failure lies both heavily and

lightly on Grant Fraser’s shoulders. He is very con-

scious and very excited about where CI Auto current-

ly stands and the potential for growth that he envis-

ages for the next 18 to 24 months. He sees aggressive

marketing and smart product development as the keys to success.

The cornerstone brands that will underpin this envisaged growth

will be Gabriel, AutoExcel, Echlin, Autocom,Warn, VDO, Shurlok

and Touratech. Growing these brands to cater for the needs of the

latest car parc will be a priority, with the emphasis on range expan-

sion and the updating of catalogues to assist CI Auto’s customers to

stay abreast of market trends and needs. However, new brands and

new products will also be a priority and Grant shall for the rest of

2009 be travelling the globe looking for products that will enhance

the CI Auto stable and they will also need to be integral to the next

generation car parc. The current car parc of 8,1 million vehicles, of

which 5,2 million (64%) is passenger vehicles, is already a veritable

goldmine. Gauteng, the Western Cape and Kwazulu Natal are the

big three provinces, with 71% of the vehicles concentrated in these

areas. In addition, the continent of Africa has plenty to offer for a

company that is looking to maintain growth momentum. Grant

puts it succinctly, “Exports of automotive products from South

Africa have shown rapid growth over the past decade and it is impor-

tant to maintain the growth momentum.” The South African auto-

motive aftermarket is a wide and diverse group of product and serv-

ice providers (see box). Grant adds that “growth will increasingly be

measured in units, rather than turnover as end users switch to more

affordable products during tough economic times. The commercial

markets remain the strongest growing segment, and the primary

consideration in the current market is to access the impending mar-

ket growth, and ensuring that the operation and brands are posi-

tioned to capitalise on this is imperative.”

CI Auto estimates the market potential for its product portfolio

at R7,7 billion, of which R3,6 billion is in the lucrative aftermar-

ket channel (5-15 year age bracket). This aftermarket channel’s

strongest component areas are engine, electrical, service, drive

line, suspension & steering, body, wheel & brake and cooling.

CI Auto is well placed in most of these areas and is looking to fill

the gaps. It is Grant’s belief that the market will be receptive to CI

Auto’s laser like focus on customer service, and his parting shot is

a confident prognosis, “Overall, the mix is exciting. We live in an

age of growth, change, and business revolution. E-commerce

offers us opportunities, but our first priority is to rapidly grow

our basket of products to expand our potential customer base.”

c o v e r s t o r y

13F e b r u a r y 2 0 0 9

• 4400 garages and fuel stations (most with service

workshops)

• 1800 specialised repairers

• 1350 new car dealerships

• 1580 used vehicle outlets

• 300 component manufacturers

• 150 “other” manufacturers

• 1700 tyre specialists and retreaders

• 480 engine reconditioners

• 170 body builders

• 2770 parts dealers

• 180 farm vehicle and equipment suppliers

The Aftermarket

Page 14: Automotive Business Review - February 2009

F e b r u a r y 2 0 0 914

c o v e r s t o r y

Roy Hollins, the recently appointed sales director of CI Auto, has recognised

the need to “drill down” into the market. He understands that he shares the

custodian duties with marketing director Grant Fraser on some very

special brands. Top of the pops is CI Auto’s flagship brand, Gabriel, South

Africa’s leading aftermarket shock absorber. To acknowledge this fact, CI Auto has

created a Ride Control Business Unit, which looks after the technologically advanced

Gabriel product range, which is engineered for South African conditions. A signifi-

cant nod to the importance of this technological edge, has been the appointment of

Sean Staley, a qualified engineer, as Gabriel’s national sales manager. Supporting Sean

is a team of regional sales managers, nurturing and looking after the needs of five

warehouse distributors and with a radically new approach. The focus is to cover the

entire channel, drilling down to spares shops, independents, fitment centres, and

touching everyone who touches a Gabriel shock, from counter hand to fitter. This

personal contact and cognitive interaction ensures that no longer will a counter hand

say, “a shock is a shock is a shock”! This new approach requires a rejuvenated sales

team. This is being achieved via incentives, training and a motivational programme

dubbed the “Gabriel Sales Warrior” programme. Many benefits

are to accrue from this approach, not least being a promo-

tional frenzy at grass roots level, buttressed by market intel-

ligence, technical feedback, product ideas, and more. In

addition, a very important benefit will be a refreshingly

novel rapport between manufacturing and sales personnel.

Over and above the efforts behind the Gabriel brand, CI Auto’s other products are

also receiving attention. The silo approach is out, with the traditional business units

being replaced with relevant component groups, all looked after by dedicated and

reinvigorated product/sales teams, sharing product knowledge and sales passion

which translates into happier customers. These product groups comprise Ride

Control, Drive Train, Ancillaries, Instrumentation and Leisure. Interacting with all

these business units, a dedicated and all encompassing support team provides logisti-

cal and administrative support, taking away the day to day hassles from the front line

soldiers and easing the sales process.

Ci Auto has also initiated a new focus on exports into the African market, covering

the entire automotive channel for OEM, P&A through to the independent work-

shops with the entire basket of product from the CI Auto stable. The mantra for all

CI Auto sales personnel shall be customer service in all its forms – availability, sup-

port, assistance, with a razor sharp desire to help.

Roy Hollins– sales director,

CI Auto

Visitors to CI Auto’shead office in Johannesburgare left under no illusionas to what CI Auto sells

The Team

Page 15: Automotive Business Review - February 2009

c o v e r s t o r y

15F e b r u a r y 2 0 0 9

Gerhard de Clerk– financial director, CI Auto

Marcel Mbuyu

– operations

director, Gabriel

Martha

Koekemoer

– financial

executive, Gabriel

Anca Priscu

– new business

development

executive, GabrielRichard Machanickoperations director, CI Auto

“ The key focus is to become cost effective in the running ofthe business. A lean and mean organisation is one that cancope with new demands without impacting service. Otherimperatives are the protection of cash resources, embracingtechnology as a key driver, the development of staff, and acustomer orientation from everyone, from the sales force to

the back office.”

“The reorganisation of the factory and warehouse has been ahuge challenge, but also a richly rewarding experience.

Productivity and service levels are improving and we foreseefurther improvements in 2009. We have developed a strongsupply chain management team and in operations we haveredirected and energised the workforce, with productivity

and enthusiasm at levels one would have deemed impossiblesix months ago. Another enhancement has been the creationof a an “A” team that troubleshoots and resolves problems.We now have a multi-skilled, flexible and motivated work-force, created by a move from conservative to progressivemanagement. We recognise the need and obligation tosupport the marketing and sales divisions by continually

imroving our customer service levels.”

“New Business Development was

recently created by joining the commer-

cial and product engineering skills available in the Gabriel divi-

sion. The main objectives are to increase shock absorbers business

levels in all markets in which we operate by enriching our prod-

uct propositions and gaining new accounts, particularly outside

the South-African borders. Thorough vehicle sales analysis and

product research allow us to develop products that our customers

really need, in all automotive segments. For 2009 the focus

remains on uncompromising product quality and reduced time

to market lead-time, topped by customer care. Despite the world

wide turmoil in the automotive industry, Gabriel will play an

increasing role in the sub-Saharan replacement parts market.

We are confident that our ability to read trends and adapt fast to

different market conditions will bring positive results.”

“The Gabriel plant in Cape Town has

close to 50 years experience in manufac-

turing shockabsorbers for Southern

Africa, rest of Africa and exports to five

continents. The expertise gained over the years is enabling Gabriel

to cope very well with the huge proliferation of car models and

platforms through a rapid expansion of SKUs in the Gabriel cat-

alogue. The challenges of globalisation and cost pressures faced by

Gabriel have led the Gabriel operations team to accelerate the rate

of change required in production, the sourcing of quality compo-

nents from competitive sources around the world and the deploy-

ment of Lean Manufacturing Principles (fiercely eliminating

waste across the entire supply chain), an area in which Gabriel is

a leader in implementation since the early 90s. The Team is cen-

tered on Quality and Process Improvement, Manufacturing and

Supply Chain management. All senior managers have several

years of experience in manufacturing shockabsorbers.”

“The automotive industry is experienc-

ing a combination of pricing pressures

on two fronts. From the input side raw

material costs increased significantly during 2008, and from the

sales side consumers are becoming more price conscious. This

puts an onus on us to become very diligent in procurement prac-

tices and to be extremely efficient in production planning, as we

strive to satisfy these needs and wants.”

The Team

Page 16: Automotive Business Review - February 2009

c o v e r s t o r y

F e b r u a r y 2 0 0 916

In 1900, Claude Foster, apioneer in the automotiveparts industry, founded a com-pany in Cleveland, Ohio, that

was named after its first product, Gabriel horns for horse-driv-en carriages. Foster later developed the first shock absorbingdevice, the “Snubber,” for which he was granted the first U.S.patent for a direct acting shock absorber in 1907. The rest ishistory. Gabriel found its way to South Africa in 1935 and in2006 Gabriel SA was acquired by Control Instruments fromArvinMeritor, the USA parent. In the 1970’s and 1980’s theGabriel name became synonymous with technology-advancedproducts such as Hijackers and Striders. In 1978, Gabrielintroduced the first gas charged shock absorber developed andproduced in the U.S. Gabriel has consistently been in the fore-front of shock absorber innovation.

Founded in 1948 by Arthur

Warn, Warn Industries began

producing locking hubs for

surplus WorldWar II Jeeps, con-

verting thousands into

useful, on-road vehicles. Originally based in Seattle,

Washington,Warn Industries' innovation revolutionised the hub

industry. The WARN® winch, developed in 1959, was the first

recreational winch. With pioneering features such as a rugged

drive train, the WARN winch quickly became the leading brand

for off-road racers, avid four wheelers, weekend adventurers and

hard working ranchers. Continuing to diversify its product line

the company also added fender flares and off-road accessory

products. WARN introduced the industry's first ATV winch and

was issued a patent in 1988. WARN entered the South African

market in 1977.

Jack and Earl Echlin founded Echlin and

Echlin in San Francisco in 1924. They

made pistons, piston pins, and similar

parts at first but then turned to manufac-

turing replacement parts such as ignitor

gears and oil pump gears. Eventually,

they bought the ignition business of

another company and went on to become one of the leading

U.S. ignition manufacturers. Echlin entered the South African

market in 1952, and CI Auto acquired the rights to the name

when it purchased Dana South Africa, thus gaining a

highly prized brand, well known as “the professional’s choice.”

The Autocom Echlin brand

of original quality steering

and suspension components

has been assembled and part

manufactured since 1978 under technical agreement with major

OEM European, Japanese and American steering and suspen-

sion manufacturers. The components are made from the highest

quality material and are consistently machined to the originally

defined tolerances, making it one of the great suspension brands

in South Africa.

The AutoExcel range of auto

electrical components guaran-

tees consistent performance

and long life. Some of this

range is manufactured in-house while the rest is imported from

Europe, the Americas and the Far East. Over many years Acsa-

Mag had become a strong and well-known brand in the automo-

tive aftermarket. With the business growth in CI Automotive,

however, the need arose to rebrand Acsa-Mag products under a

new name: AutoExcel. The name was chosen to reflect the

industry which the brand serves, the quality customers have

come to expect, and the customer service for which it is

renowned.

VDO (Verenigte Deuta Ota) is

an iconic German instrumenta-

tion brand. VDO South Africa

was acquired by Control Instruments in 1987, a company which

has been supplying transport control systems to companies in

South Africa since 1948, including the world renowned Kienzle

Tachograph. CI Auto is now custodian of this prestigious brand.

Other significantCI Auto Brands

One of CI Auto’s big strengths is itsworld class brands

“CI Auto’s brands willbe our priority, in

range expansion andsuperb cataloguing”

“Customer service in thesupport of our brands will be

our mantra”

Page 17: Automotive Business Review - February 2009
Page 18: Automotive Business Review - February 2009

A u t o T o p i c a l

F e b r u a r y 2 0 0 918

2008 proved once again that the local motor industry, which is by no means unique in

global terms in this respect, is certainly no place for the faint hearted to try to earn a

living or build a career. It is probably also the most treacherous industry for anybody

who is trying to make predictions upon which to base business strategies – when you are

wrong you can be very, very wrong, and when you are right you are just plain lucky!!

These statements may be very visibly confirmed by

viewing the behavior of the curve running through

the accompanying graph, which traces the annual

rates of growth of reported NAAMSA passenger car

unit sales from one year to the next between 1961 and

2008. Harrowing as last year certainly was for participants in the

new vehicle markets, the decline in NAAMSA car unit sales of -

23.3% during the year turned out not to be the worst annual growth

rate experienced since the beginning of the 1960’s, which dubious

distinction belongs to 1985, which was equally unforgettable to

those who were around at the time and who have survived to witness

the close run race for the most negative growth performance during

2008. The small tables in the graphic spell out the five best growth

years and the five worst growth years for these car sales since 1961.

It is interesting to reflect on the drivers of the worst and best per-

formances respectively, because they certainly are diverse. The

wooden spoon champion growth for 1985 was driven by sharp

increases in interest rates after the 1983/4 mini-boom, the Rubicon

speech, and a dramatic collapse in the exchange rate of the Rand,

which saw car prices escalate by 23% on average during the year.

In worst-but-one spot, 2008 saw the continuation of a two-year

economic slow down in SA, rising interest rates and, eventually, the

worst economic crisis in world terms since the 1930’s.

Third worst spot was way back in the 1960’s with 1961 deliver-

ing -22.9% growth on the back of the repercussions of the

Sharpeville massacre and other township unrest during 1960, as

well as a dramatic slow-down in economic and fixed investment

spending growth upon the news that SA would become an inde-

pendent republic on the 31st of May 1961. Those concerns were

largely mirrored in 1976, with the June 16th Soweto uprising,

which spilled out over other urban Townships, but a sharp

collapse in the Gold price and a 90% devaluation of the

Rand/Dollar exchange rate during 1985 had surely set the scene

for a collapse of confidence in the economy.

The fifth worst growth rate, -15%, in 1998 was driven once again

by a sharply weakening Rand, and the prime overdraft rate from

18.25% on 10th June to 25.5% by 31st August that year, as the

Reserve Bank tried to slug it out with foreign currency traders,

ending up with the SARB accumulating a foreign debt of $25bn

in the space of a few months, the infamous “nett open forward

position”, which took until 2001 to pay back. Amongst the best

performing years, the highest growth rates occurred in contiguous

years after the scare of 1961 was over, but 1963’s 35.7% and

1964’s 30.2% must be viewed against the low volume base which

existed in the early 1960’s (1961 saw just over 75 000 new cars

sold). Those two high growth years were driven by the recovery

and confidence after the economy had survived “Republic-hood”,

in an ongoing GDP growth environment of close to 6%pa.

1980’s 29.9% growth was on the back of the gold price boom,

which saw the metal well on the way to an eventual turning point

at $850. 1973 was a curious year to deliver a high car sales

growth performance, but was also helped by the gold price which

rode upwards strongly on the back of inflation threats from an oil

price which moved from $2.50 to $8.50 in a matter of weeks dur-

ing the first OPEC-inspired oil crisis. The fifth best growth rate

of 25.5% during 2005 came on the back of falling interest rates,

rising consumer and business confidence levels, almost non-exis-

tent vehicle price inflation and economic growth at levels well

above the 5%pa mark – the proximity of 2005 to 2008 is a

healthy reminder of how the boom-bust scenarios for the local

motor industry evolved in rapid succession.

One point is more than worth making –

the preliminary NAAMSA sales figures

for 2008 reflect 294 989 passenger cars

sold, excluding the over 34 000 from

the AMH stable and a few more from

completely impenetrable importers.

Before 2005, this would have been the

best car sales year ever, with earlier

record years spaced as far apart as 1981

and 2004, with NAAMSA car sales of

301 000 units each. But nobody will

remember the car market of 2008 with

any fondness, which just goes to show

that Einstein was right – everything is

relative.

by Tony Twine

The best of times and theworst of times…

Page 19: Automotive Business Review - February 2009

PETER’S SOAP BOXby Peter Mather

Peter Mather has worked in the field of human capital development in the motor industry for the last twelve years and hasenjoyed great success in facilitating sales and leadership programmes within the industry.

L u x L i t e

Hi everyone, trust you had a greatbreak and feel refreshed andinvigorated, ready for the chal-lenges 2009 will bring us all.

After spending time at the end of 2008 chat-ting to people within the automotive industryI was reminded of one of Paul Meyers great-est quotes taken from one of his most success-ful programmes. Change Growth andProgress are the order of the day. In looking atthe beginning of a new year I couldn’t thinkof anything more apt to describe the way theindustry must go in 2009. However in orderfor an industry to move towards this it is vitalthat people in your organisation embrace thisthemselves in their own personal life. There isno doubt that to succeed in 2009 we need tounderstand what is required. Firstly if you areexperiencing poor results don’t keep on doingthe same thing this year. Change to have anylasting impression must come from within.Change yourself. Start by ridding yourself ofnegative perceptions and replace them withpositive affirmations for success. Then start to

dream a little. Ask yourself what do I want toachieve this year. Then build a workable planof action and share that with all your teammembers and above all exude confidence sothat they become inspired by your leadership.Having completed this step the next one is tobuild commitment from all your team mem-bers. This can sometimes be difficult and youare welcome to contact me for any advice Ican help you with. Once you have commit-ment you need to set up an effective visualmeasuring process of results within your busi-ness and have each team member measuretheir own performance versus your expecta-tions. By focusing on what can be done ratherthat what cant be done we steadily buildbelief and confidence within the business.Finally reward success through powerfulrecognition and only recognise achievementspositively, avoid negative recognition at alltimes. Through following these simple stepsyou are able to insulate yourself from all theoverall negative media hype going on aroundyou at present. Yes we are in challenging times

but let’s all take inspiration from the way ourcricket team played in Australia. The greaterthe challenge the greater the player and aboveall the greater the rewards at the end of theday. We can all recognise that incredible thingcalled human spirit. Unleash the potential ofthat collectively within your organisation andthe rest will follow. I look forward to interact-ing with all of you this year and welcome anye mails regarding your teams successes andplease if you are experiencing difficulties mailme, I maybe able to help. I have a full team ofassociates nationally and if you would likesomeone to visit you to discuss ways ofimproving any facet of your business pleasecontact me. Looking forward to a great yearand who knows meeting some of you face toface in 2009. Above all have fun and live yourlife to its fullest.

Visit www.s2p.co.za or contactpeter @s2p.co.za to register for mymonthly newsletters or telephone 082 4568479 for more details.

Page 20: Automotive Business Review - February 2009

Yank TankF r a n k l y S p e a k i n g

F e b r u a r y 2 0 0 920

Just before South Africa shut down for the annual year-end holidays, we

witnessed the amazing events unfolding around the severely troubled

American motor industry. The most amazing of these were the efforts being

made by General Motors and Chrysler to obtain emergency government

funding to rescue their corporate cash flows, before they were predicted to disap-

pear completely around year-end. It seems that the Ford Motor Company was in a

slightly more favourable position, viewing any forthcoming government hand-out as a

“nice to have”, rather than a life-or-death necessity.

Industry analysts and commentators were prolific in theirefforts to dig out the reasons why this iconic and long-estab-lished industry had got itself into such a potentially termi-nal mess. The usual theories about inappropriate products,

excessive brand proliferation, slow reaction times, ineffective andprofligate management, inflexible and overpaid labour, and pro-gressively more stringent legislative demands on emissions andfuel economy were advanced and dissected. The real villain was,of course, the financial and economic crises which hit America,and the rest of the world during 2008, dramatically shrinking themarket for new vehicles. The final volume of just more than 13million cars and trucks finally sold in the US during 2008 wasnearly three million down on the equivalent 2007 volume, andsubstantially less than the all-time record of 17,4 million units setin Year 2000. The one thing that an industry in transition doesnot need is to have its principal market unexpectedly evaporate.Even if some of the accusations leveled against the US industrywere accurate, vast businesses like the “Detroit Three” (recentlydemoted from “Big Three” by some American scribes) need timeto make profound adjustments. To be fair, all three of these man-ufacturers already had substantial return-to-profit strategies inplace long before the “Sub-Prime Mortgage Crisis” hit, and werebusy with detailed action plans. Whether these plans were appro-priate has now become largely an academic question, becausethey would have been made against the expectation of a “normal”market, and that, alas, no longer exists. Taking one step back-wards, it seems that the American motor industry’s major oppor-tunity is also its biggest problem. The US light vehicle market hasbeen historically the world’s largest, and, even in its emaciated2008 state, is likely to have retained that status over a rapidlyclosing second placed China. A market of that magnitude has thepotential to place enormous demands on its suppliers, becausethe rewards of success in the market are very considerable in vol-ume terms. This is the reason why foreign manufacturers such asToyota, Nissan, Daimler, BMW and Honda have established asubstantial North American manufacturing presence to furthertheir quests for increased business critical mass, and world mar-ket share. In order to do this, they have also created special mod-els to pander to the preferences of American buyers.Unfortunately, these special models present as a two-prongedthreat to the indigenous American “Detroit Three”. Firstly, theyhave eroded GM, Ford and Chrysler’s individual and collectiveshares of their domestic market (in 2008, this trio accounted forjust less than half of US light vehicle sales), and, secondly, theyhave reinforced the perception that North America needs “spe-cial” products, and cannot be satisfied with the models developedfor the rest of the world. In order to defend their positions, there-fore, the US manufacturers have spent more time and effortdeveloping specific models for their home market, most of whichhave negligible appeal beyond the shores of North America.While this strategy may work fine when the North Americanmarket is running, come the downturn and………..immediate

stock build-up! Excess inventory is, of course, the mortal enemyof positive cash flow. With the US market quite happy to go onbuying its unique domestic models, American manufacturers sawlittle need to internationalise their products, or to reorientatebuyers through aggressive marketing action. This is not to saythat there has been no interplay at all between US plants andtheir offshore subsidiaries, but most of what has transpired up tonow has been very distinctly “off the radar”, hidden in vehicleplatforms and components that are not seen by the average buyer.Even when foreign models are sold in the US, they are usuallyheavily “Americanised”, and emerge materially different to equiv-alents sold overseas.

The result of all this is that the American-owned industry hasbecome increasingly isolated, living or dying according to thewhims of its own domestic market. The other problems put for-ward by the analyst community, if accurate, just exacerbate theproblem. It is amazing to think that Henry Ford once supplied90% of all the motor vehicles on Planet Earth, while to-day vehi-cles of US origin are only bit players on four of the five conti-nents. This will surely change, however, if General Motors, Fordand Chrysler get the chance, and the market, to see their revivalstrategies through. GM and Ford have declared the intent to usefar more global product integration going forward, and Chrysleris actively pursuing offshore partnerships, with bothRenault/Nissan and Chinese manufacturers. The changes whichhave taken place in the US heavy truck building industry forman interesting backdrop to this discussion. Once totally unique,with numerous independent indigenous chassis manufacturersoffering a highly rationalised catalogue of Cummins, DetroitDiesel, Caterpillar, Allison, Fuller, Spicer, Rockwell, andHendrickson driveline components behind their individualnameplates, we now have Freightliner, Western Star, and Mackforeign-owned, and increasingly moving towards specificationprofiles made up of components supplied by their European par-ents, Daimler and Volvo. Even locally-owned PACCAR(Peterbilt/Freightliner) and Navistar International are increasing-ly favouring “in-house” engine options, sourced from affiliatedDAF and MAN respectively.

The success of GM’s, Ford’s and Chrysler’s turnaround plans willdepend heavily on what happens to the US economy, and, byinference, its automotive market. Optimists believe that somerecovery may be possible later in 2009, and that would be goodnews indeed for the beleaguered motor industry. In the mean-time, expensive steps to develop new products (including a waveof electric vehicles), close under-utilised plants, adjust manpow-er levels, cancel unpromising products and projects and stimulatesales, go on. Already the US government has provided the indus-try with loans of $US 25 billion for plant upgrades, and $US17,4 billion in emergency funding. If things don’t improve soon,they’ll be back for more!

by Frank Beeton

Page 21: Automotive Business Review - February 2009

T R I V I A M O T O R I N G

A I D C Q u i z

21F e b r u a r y 2 0 0 9

See how much you know about motoring.

QUESTIONS

1. What does the name of the former East German car, Trabant, mean?

2. What South African made sports car made its racing debut 50 years ago at Killarney, Cape Town?

3. Who invented the diesel engine?

4. Name two South Africans to have won their home Grands Prix.

5. In what towns or cities did they live?

6. What Italian tractor manufacturer started to manufacture cars in 1963?

7. In what year did Japanese luxury manufacturer Lexus first sell a car?

8. Name the bomber airfield used for the first Formula 1 Grand Prix of the modern era in 1950?

9. What make of scooter sold more than 60 million?

10. One of every 15 cars sold in the world today is a what?

11. The letters of the car ‘MG’ stand for?

12. The letters ‘AC’ in the name AC Spark Plug formerly owned by General Motors stand for what?

13. Name the American founder of Nascar Stock Car Racing series in the USA.

14. Name the driver to give Williams its first Formula 1 Grand Prix win.

15. Who invented vulcanised rubber for tyres?

16. Who designed and built the Cobra sports car?

17. How many times did a 40-inch high car win Le Mans?

18. Name the car.

19. Who wrote the book “Unsafe At Any Speed” which eventually made seat belts compulsory in the States?

20. What were the first names of the Studebaker brothers?

by Roger McCleery

Answers on p23

Page 22: Automotive Business Review - February 2009

Masato Takizawa, chiefexecutive of Nissan DieselSA: “UD stands forUltimate Dependability”

C o m m e r c i a l V e h i c l e C o m m e n t

F e b r u a r y 2 0 0 9

Nissan Diesel CautiouslyOptimistic about 2009Nissan Diesel South Africa’s press briefing on 20th June 2009 was a breath of

fresh air for a media contingent expecting the worst, with a reasonably upbeat

prognosis for the truck market in 2009, providing a welcome counterbalance to

all the doom and gloom going around the industry. Johan Richards, chief

operating officer, put it succinctly, “We refuse to be sucked into the maelstrom

of negative thoughts and negative opinions. This type of thought process eventu-

ally becomes a self fulfilling prophecy.”

Nissan Diesel South Africa (NDSA)

forecasts heavy duty sales of 30

000 units in 2009 – Medium

Commercial Vehicles 7 900,

Heavy Commercial Vehicles 6 350, Extra

Heavy Commercial Vehicles 13 940, and Buses

1 810; with NDSA’s share expected to be 4

053 units (13,5%). Whilst this prediction is

some 13,5% below 2008 sales, NDSA expects

the market to gain some traction during the

second half of 2009. This prognosis is based on

the expectation of interest rates coming down

to 12,5% during the course of the year, infla-

tion averaging out at 6,7% and an increase in

the business confidence index.

Despite a stressful fourth quarter affected par-

ticularly by price increases, a global financial

meltdown, a rapidly depreciating exchange rate

and a plummeting all share index, NDSA can

still look back at 2008 with some satisfaction.

From a profit perspective, 2008 was the best

year ever for NDSA, and in the process it man-

aged to maintain its third position in market

share rankings behind Mercedes-Benz and

Toyota by make. On the global front, NDSA

retained its number one position as Nissan

Diesel’s top market outside of Japan. “Nissan

Diesel South Africa remains a dedicated truck

company that aims to provide profitable trans-

port solutions to its customers”, said Masato

Takizawa, chief executive of Nissan Diesel SA.

Rory Schulz, general manager: corporate plan-

ning and marketing, concedes that a lot hinges

on how the exchange rate behaves in 2009,

“The strength of the yen is creating cost pres-

sures and our margins will continue to come

under pressure as long as this persists.”

Raymond Schulz, manager: marketing and

retail services, adds that price increases do not

necessarily translate into a huge burden for

transporters, “A 10% increase in the price of a

vehicle only translates into a 2,1% increase in

the lifetime operating costs of a vehicle”.

Johan Richards, chief

operating office,

“We’ve seen this movie

before – Nissan Diesel

remains very positive”

Raymond Schulz, manager:marketing and retail services,“A 10% increase in the priceof a vehicle only translates intoa 2,1% increase in the lifetimeoperating costs of a vehicle”.

Rory Schulz, generalmanager: corporateplanning and mar-keting, “Things willease up during thesecond half of 2009”

22

Page 23: Automotive Business Review - February 2009

E n g i n e R e m a n u f a c t u r i n g

23

A Double BonusIn these days of environmental awareness, recycling and remanufacturing are

two activities that get five stars from the Al Gore brigade. The automotive

industry, in particular, has taken a lot of flak recently about the role it

plays in carbon emissions and global warming. There are, however, some good

news stories. Remtec is one of these.

Remanufacturing of engines is

not new. In actual fact, in the

1970’s there were quite a few

remanufacturers focusing

purely on the remanufacture of VW

Beetle engines. The problem was, and

still is, remanufacturing is not easy, par-

ticularly if you want to do the job prop-

erly. Therefore, there are today less

remanufacturers than some three decades

ago. And, astonishingly, there is only one

OE engine remanufacturer in South

Africa, and that manufacturer is Remtec.

Before we go into this success story, let us

define what remanufacturing is. R. Lund,

an acknowledged guru, defines it as “…

an industrial process in which worn-out

products are restored to like-new condi-

tion. Through a series of industrial

processes in a factory environment, a dis-

carded product is completely disassem-

bled. Useable parts are cleaned, refur-

bished, and put into inventory. Then the

product is reassembled from the old parts

(and where necessary, new parts) to pro-

duce a unit fully equivalent and some-

times superior in performance and

expected lifetime to the original new

product.”

In the broader sense, remanufacturing

encompasses the three key components

in the modern waste management hierar-

chy; “reduce, reuse, recycle”. Essentially,

remanufacturing goes further than these

three imperatives, in that it is a complete

process, and when done properly, it

matches and even exceeds what cus-

tomers’ expect from a new product.

Remtec falls proudly into this category.

The only OE engine remanufacturer in

South Africa, with over 43 years experi-

ence in the industry, Remtec operates

from a 6 000 m² facility in Port

Elizabeth, employing over 80 people.

Remtec is an approved remanufacturer

for General Motors South Africa (Opel

and Isuzu); Volkswagen of South Africa;

Ford Motor Company of Southern

Africa (Ford and Mazda); Land Rover

South Africa and Nissan South Africa.

Remtec gives its customers peace of mind

with a well equipped workshop, an adher-

ence to the highest quality standards, a

dedicated team, good availability, com-

petitive pricing and a 12 month / 100

000 km warranty. Add to this full after

sales service and you get a pretty impres-

sive package. Remtec also does not let the

grass grow from under its feet when it

comes to delivery, striving to achieve

delivery of orders within 24 – 48 hours,

thus reducing downtime significantly.

There are other reconditioners that may

offer better prices, but this option does

not represent a cost effective long term

solution. Refurbished engines have only

been repaired and brought back to

running condition whereas Remtec

Remanufactured engines have been com-

pletely restored to OEM specifications,

with all the parts being sourced from

OEM approved suppliers. Peace of mind

comes from the fact that Remtec

Remanufactured engines have the equiv-

alent of a new product warranty, as

stringent standards have resulted in the

Remtec product being comparable to a

new product.

So there you have it. Remtec givesyou a double bonus – OEM qualityand environmentally acceptable!Visit www.remtec.co.za for moreinformation.

F e b r u a r y 2 0 0 9

1. Servant

2. Dart

3. Rudolph Diesel

4. Jody Scheckter and Buller Meyer

5. East London

6. Lamborghini

7. 1989

8. Silverstone

9. Honda Cub

10. Chevrolet

11. Morris Garages

12. Arthur Champion – maker of

Champion Spark Plugs

13. Bill France Snr.

14. Clay Ragazzoni

15. Charles Goodyear

16. Carroll Shelby

17. 4 Times

18. Ford GT40

19. Ralph Nader

20. Henry and Clement

ANSWERS ANSWERS

Page 24: Automotive Business Review - February 2009

B o t t o m l i n e b a s i c s

F e b r u a r y 2 0 0 924

Is There a Doctor in the House?

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 get going.

A critical element in this dynamic is the ability to keep costs down, and to ensure that operating costs are kept under tight

control. The first port of call in this endeavour is to protect against theft and misuse. ABR has commissioned Séan Jackson

of TRUCKTEK to give our readers a series of tips on Bottom Line Basics.

Séan Jackson does not mince his words. He describes the current situation in South

Africa as “an illness in the market”. He is referring to the large scale theft of fuel,

in various forms, from practically every fleet in the country. This theft is endemic,

and is impacting severely on the operating costs of fleets and is eroding profits to

a significant degree. It does not take a rocket scientist to realise the greater impact

on the economy as a whole.

Considering that up to 40% of

the operating costs of a fleet is

in the consumption of fuel,

and factoring in the conserva-

tive estimate that 30% of this fuel is being

lost to “fuel evaporation”, this translates

into over 10% of fleet operating costs

going up in smoke, or more accurately,

contributing to a burgeoning black mar-

ket in commodity trading. Any econo-

mist who cares to do the sums will come

to a staggeringly high figure, which means

that here is an area where action can and

must be taken. If not, crime does appear

to pay. The industry is fully aware of the

situation, tackling the scourge with vari-

ous measures of increasing sophistication.

Electronic fuel management systems have

been introduced, and monitoring tech-

niques have got so smart that many fleet

control centres can tell when a truck has

stopped, where it has stopped, and for

how long it has stopped. The guys in the

control centre can monitor the driver’s

efficiency, and even how much fuel is

being consumed at a given point in time.

Individual tyre pressures can even be

monitored and fed back to the driver! All

good and well, and all sound measures to

improve overall efficiency, but the brutal

fact is that fuel theft is being committed

on a large and consistent scale, and this is

being perpetrated by syndicates which

remove fuel regularly from many trucks,

and in quantities that may create some

head scratching at head office, but not so

much that alarm bells are sounded. It’s a

game of cat and mouse, and the mouse is

winning. Even when the odd alarm bell

does go off, it is usually after the fact, so

very little can be done, as how does one

apportion blame? It is extremely difficult

to gauge fuel losses, because of all the

variances – load, road conditions, driving

skills, vehicle condition, etc. The driver is

always the suspect, but how do you

know?

There are three realities in this the situa-

tion: Firstly, diesel has become a com-

modity, so there is no way you can stop

people trading in it. Secondly, the syndi-

cates that are removing diesel from tanks

and trucks throughout the country can-

not be tracked, as they are doing it consis-

tently, regularly, and over extended peri-

ods, at a place and time of their choice.

Thirdly; and this is the critical issue, and

the essence of the problem; this is not an

opportunistic crime. It is not the guy

punching holes in the tank, or removing

a drain plug or sender unit; it is a sophis-

ticated network of diesel “procurement

specialists”. The bottom line is that a fuel

tank has to be accessed physically to put

fuel in, and a fuel tank has to be accessed

physically to get the fuel out. Two plus

two equals four, i.e. the best preventative

measure is to prevent the physical removal

of fuel from the tank. How does one do

this? There are many contraptions on the

market, some effective and many less

effective, to address this. There are many

considerations when fitting such a device,

which shall be discussed in the next issue

of ABR, but the key consideration when

choosing a product is that it must not

only deter, it must also enhance, and do

the job properly.

Séan Jackson will be back withhis tough love next issue.

“Electronic fuel management

systems have been introduced,

and monitoring techniques

have got so smart that many

fleet control centres can tell

when a truck has stopped,

where it has stopped, and for

how long it has stopped.”

Page 25: Automotive Business Review - February 2009
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F e b r u a r y 2 0 0 926

High costs and weak sales are threatening the survival of the three major US automakers. General

Motors, Chrysler and Ford have made it clear that they cannot survive without assistance from

government. And with the recent $700 billion bailout of financial institutions it might seem like a

reasonable thing to do. The CEOs of the three corporations have asked Capitol Hill for billions of

dollars in loans to prevent them from filing for bankruptcy. But many voices of protest have gone

up, and The Economist has stated categorically that a bailout will be a mistake. After an initial

request for $25 billion, the US Congress sent all three corporations back to do some

homework, and revised plans were submitted on December 2nd.

There were many things to con-

sider with the development of

such new plans, not least of all

the need to get rid of the arro-

gance and big spender mentality that

probably contributed to the difficult posi-

tion these corporations are in at the

moment. A couple of months ago, all three

CEOs travelled to Washington in private

jets (estimated cost: $20 000 per round

trip per CEO) to request tax payers’ money

to bail them out. Next time round the

CEO’s of both Ford and General Motors

travelled to Washington in their respective

companies’ hybrid cars to submit their

revised plans. This is a far cry from Bob

Lutz, vice chairman of General Motors,

who shared a few pearls of wisdom with

journalists during a lunch earlier last year.

According to him, hybrid cars like those

manufactured by Toyota does not make

economic sense, global warming is a

“crock of s**t” and finally his view then

was that the best car dealers will thrive

even in a sluggish economy. “They’ve got

to isolate themselves from the economic

forecasts,” Lutz said, “and say, ‘I make my

own prosperity.’ ”The message that is

now coming from the big three corpora-

tions is that they need the bailout to help

them to innovate and thrive in future.

This has not convinced three times win-

ner of the prestigious Pulitzer Prize,

Thomas Friedman, who wrote in the

New York Times: “We have to subsidise

Detroit so that it will innovate? What

business were you people in other than

innovation? If we give you another $25

billion, will you also do accounting?”

What caused the problems in the indus-

try? Friedman blames an un-innovative

business culture, visionless management

and overly generous labour contracts. But

perhaps the real issue at stake here is the

unethical, greedy and unsustainable busi-

ness practices that still characterise large

parts of many multinational corpora-

tions. That rings a bell, doesn’t it? When

we think back to the collapse of Enron

and its aftermath we are reminded that

more regulation is not the solution.

Many people argue that the Sarbanes-

Oxley Act distracted companies from get-

ting back to basic, sound business prac-

tices in a post-Enron world.

This problem is demonstrated clearly by

the following “frequently asked question”

from the SEC web site: “An issuer is filing

a Form 10-K report after August 29,

2002, the date Rules 13a-14, 13a-15,

15d-14 and 15d-15 became effective, for

a period ending prior to the effective

date. Section V of Release No. 33-8124

provides that the certification required to

be included with the report need contain

only the statements set forth in para-

graphs (b)(1), (2) and (3) of Exchange

Act Rules 13a-14 and 15d-14. However,

the instructions to Forms 10-Q, 10-QSB,

10-K, 10-KSB, 20-F and 40-F indicate

that the required certification must be in

the exact form set forth in the report.

Must a certification filed during the tran-

sition period for a period ended before

August 29th include the statements set

forth in paragraphs (b)(4), (5) and (6) of

Rules 13a-14 and 15d-14?” So, if regula-

tion is not the solution, what about a

bailout? A bailout also cannot provide a

long term solution. In 1979 Chrysler was

given a $1.2 billion loan by the US

Congress when they were struggling to

survive in the midst of the oil crisis. The

fact that the company repaid these loans

and survived until today is used by some

to argue in favour of another bailout.

But others disagree – in an upcoming

book entitled “Bailout Nation”, Barry

Ritholtz, owner of a New York based

equity research firm argues that the

bailout actually helped cause the decline

of the auto industry. A refusal to bail out

Chrysler in the 1970’s would have caused

introspection at all the major automak-

ers, he argues, and helped them to focus

on smaller, fuel-efficient cars and manu-

facturing quality. Of course, the other

problem with a bailout strategy is not

unlike the problems associated with pay-

ing ransom (or paying bribes, for that

matter). If you assist the automakers

themselves, why not their first-tier sup-

pliers, who are most certainly also suffer-

ing at the moment. And what about the

retail industry that will have to survive

until consumers can afford to spend

again?

About the author: Daniel Malan is the KPMG Special Advisor on Ethics and Governance and Head

of the Unit for Corporate Governance in Africa at the University of Stellenbosch Business School. The

views and opinions of the author do not necessary reflect those of KPMG or the University of Stellenbosch

Business School. He can be contacted at [email protected]

KPMG is a global network of professional services firms providing Audit, Taxand Advisory services. There are over 123,000 professionals working in over140 countries worldwide.

I n f o r m e d C o m m e n t

From Private Jets to Hybrid Cars – is thisenough to secure a bailout for US automakers?

Page 27: Automotive Business Review - February 2009

A special case can still be made out for financial institutions,

because they are so integrated with the entire socio-econom-

ic system and the good institutions were just as threatened

as the bad ones when people started to lose faith in the sys-

tem. But if an automaker or a retailer fails as a business,

there will always be investors waiting in the wings who will

see an opportunity. The choice is not an easy one.

According to Prof. Ollie Williams, business ethics professor

at Notre Dame University, the ripple effect of the current

crisis on millions of Americans is something that the coun-

try cannot afford at the moment: “There is no question that

the industry itself has been poorly managed, and we can

expect major changes in management in the short term. In

many ways this is a “teachable moment”, a wake-up call for

US business. We must change our ways! But we must also

do the bail-out”.

Although the details of the revised plans are still a bit

sketchy and will only be debated in the US congress later

this week, the basic plans seem to be in order – the CEOs

have agreed to reduce their salaries to $1 a year, workers will

accept lower wages as well, there will be redundancies and

reductions in brands, and a very strong emphasis on inno-

vation and fuel efficiency. Nancy Pelosi, Speaker of the

United States House of Representatives, has made it clear

that bankruptcy is not an option because it will take too

long and everybody will be disadvantaged by such a process.

At a news conference on December 2nd, she indicated her

support for some form of a rescue package as long as the

emphasis is on long term viability of the industry, account-

ability to tax payers and innovation. From a South African

perspective, it is important to note that the local manufac-

turers of these three companies seem to be well managed

and profitable, and therefore not in need of a bailout. They

are therefore likely to continue even if their parent share-

holder should change in future. Sir Mark Moody-Stuart,

chairman of Anglo American recently suggested that mining

companies should use the global slowdown to pause and

plan carefully in order to be ready when the economy picks

up again. Perhaps automakers should do the same. And

whether it will be through bankruptcy or conditions

attached to a bailout, we are likely to see a few less gas

guzzlers on the road in future.

F e b r u a r y 2 0 0 9

puzzle on p11Solution

Page 28: Automotive Business Review - February 2009

T o n y ’ s t a k e

F e b r u a r y 2 0 0 928

Mickey Mouse shows less Interest

The one thing that does appear reasonably certain, is

that money market interest rates will be lower at the

end of 2009 than they were immediately before the

first cut in rates which came through in December

2008, ending a 30 month upswing in rates which began back in

June 2006. Where opinions begin to diverge amongst analysts

and economists is about how rapid the rate of decline might be

and what the lowest point for the year might be for key lending

rates, such as prime overdraft rate which drives a host of linked

lending rates. Having sniffed blood in the water at the time of the

December rate cut, there are many players in the credit market

who either believe, or at least want the rest of us to believe that

interest rates will tumble during the first half of 2009, alongside

rapidly retreating levels of consumer price index inflation.

Falling petrol prices, food price increases that are shedding

momentum, and the new weightings for the consumer price

index basket to be introduced in January 2009, all point to a sud-

den sharp decrease in the inflation rate, and add grist to the mill

of the inflation doves who are anticipating a steep tumble in rates

during the first half of the year.

A fall in the targeted inflation aggregate would certainly be a nec-

essary, but perhaps not a sufficient condition for a dramatic relax-

ation of monetary policy early in 2009. Another argument in

favour of a tumble in rates is that the performance of the real sec-

tor of the domestic economy is under severe downward pressure,

and could only be helped by lower lending rates.

While the latter argument is true, SARB Governors dating back

to Bob de Jongh in the 1970’s have been at pains to point out

that their mandates do not include any responsibility for the per-

formance of the real side of the economy, only price stability. It

must be remembered that interest rates are a rather blunt instru-

ment in the hands of monetary policy makers, rather than laser

sharp scalpels. Two decades of Mickey Mouse monetary policy

management from 1970 onwards, simply led to stop-start,

boom-bust 18 month from trough to peak cycles around a steadi-

ly declining real economic growth rate. The Mboweni gover-

nance team at the SARB has, so far, been at pains to avoid repeat-

ing this process and is unlikely to be spooked into rash action at

this particular stage.

Mickey Mouse monetary regulation policies helped get the devel-

oped economies of the world into the problems which now con-

front them, and that same rodent is now being asked to lead

those economies Pied-Piper-like out of the ruins of their respec-

tive financial sectors.

The alternative scenario is that interest rates could decline at a

slower pace during the course of 2009, driven by the necessity to

maintain the high yield status of the SA economy and to offset

the lack of willingness of foreigners to hold Rand-based assets in

International payments environment which was already parlous a

year ago and has only deteriorated. If foreign economies do not

buy our exports because of their own cyclical problems, we are

going to have to borrow from them to continue the imports nec-

essary for the politically desirable infrastructural investment

boom to which SA is already committed. Otherwise the

exchange rate of the Rand could take the full force of increasing

local demand and imports later in the year, combined with

diminishing international capital influence.

How the MPC of the SARB will weigh the oppor-

tunities and threats during the course of the year

remains to be seen. The quick cut scenario could

bring prime down to 12% by mid-year, and per-

haps as low as 10% by year-end. The moderate cut

scenario could reduce the level of improvement in

the price of credit to 13.5% by mid-2009, and

around 12% by year-end. But the quick-cut sce-

nario brings with it a heightened risk of rekindling

inflation because of higher exchange rate risks.

The most susceptible would be imported durable

goods like household white goods and motor vehi-

cles and the things that go into them like food and

fuel. The price of credit, the interest rate, may be

the beginning of the story, but it is certainly not

the end.

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

The South African Reserve Bank faces considerable challenges in steering the ship

of monetary policy through deeply troubled international financial waters, not to

mention a very noisy domestic surf line during 2009. The pressures pushing and

pulling the policy makers against any given policy scenario regarding interest rates

currently both look compelling and only time will tell how a host of corroborating

factors influencing the Monetary Policy Committee (MPC) decisions will stack up to

drive the scenario in one of two particular directions.

Page 29: Automotive Business Review - February 2009
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F e b r u a r y 2 0 0 930

A sporting heartstill beats

It’s hard to believe that once upon a time South Africa was Alfa Romeo’s biggest

market outside Italy, with their own plant, nearly 60 dealers, and a reputation for

being genuinely sporty with an expansive range that appealed to enthusiasts of all

ages across a reasonably broad income spectrum. In 1975, for example, they were

selling about 2 250 Alfasuds a year in SA and in 1982 they sold nearly 7 500

Giuliettas. In addition, they had the giant-killing six cylinder GTVs and the Alfa 6,

which was pitched right into BMW 5-series territory. Even by the end of 1984, with

the parent company in serious financial trouble and incorporation into Fiat looming

on the horizon, they had sold 2 344 Alfa 33s locally. Ironically, Alfa Romeo was

also manufacturing the Daihatsu Charade at their Brits plant, pumping nearly 4 500

into the market in both 1983 and 1984.

At the moment, they’re lucky to get into double figures

– which means the 20-odd dealers (according to their

website) can’t be happy. Ironically, an intro on the site

proclaims that Beauty is Not Enough and that is oh-so

true...the current Alfa Romeo line-up is arguably as eye-catching

as it is ever been; from the sleek 159 to the striking Brera and GT.

Even the 147, despite getting on more than a bit, is still easy on

the eye and not a bad drive. Yet they’re not selling.

They’re all overweight and overpriced but the main problem is

that the local market is tougher than ever and consumers have

got so much to choose from. Habits have also changed and it

is debatable whether the buyers of the 70s and the

early 80s – well-informed, enthusiasts who

were genuinely ‘into’ cars – still exist.

Now the flavours are Minis, Fiat 500s

and Beetles, and they’re not necessarily

being bought by people who care very

much about cars: they’re buying fash-

ion statements. And with Alfa having

disappeared from the price lists for

about a decade - 1985 until early 1996

(despite the efforts of a private importer

a couple of years prior) – there were a

number of missing links in the chain by the

time Alfa imports started again thanks to the

efforts of Nissan’s holding company, Automakers.

In the middle of 1998 Fiat Auto South Africa, into which Alfa

Romeo falls, was formed to handle importation and distribution

of the two brands as well as overseeing the manufacture of

various Fiat products at Nissan’s Rosslyn plant.

The birth of Alfa Romeo goes something like this: a group of

Italian investors and a Frenchman – Alexandre Darracq – set up

Societa Anonima Italiana Darracq (SAID) in 1906 but one of the

Italians – Ugo Stella – started Alfa (also an acronym) in 1909. By

1915 a Neapolitan businessman, Nicola Romeo, had taken over

the company and started making cars again in 1919, having

concentrated on military hardware previously. A year later the

company was renamed Alfa Romeo.

By 1931 the company was bankrupt and was rescued by the

Italian government, a change which saw increasingly lavish

machines being built. This all changed in the austere post-war

years, when the focus moved to more affordable cars. The first

two years of the Formula One world championship, 1950 and

1951, were won by Alfa Romeo Alfettas (Guiseppe Farina and

then Juan Manuel Fangio), but the brand has never won again.

In fact, the brand’s international motorsport successes more or

less ended more than half a century ago, yet Alfa Romeo

is still arguably the most overtly sporty mass market

brand in the world. Through the 50s with the

original Guiletta, the 60s with the Guilia

Sprint and the 70s with the GTVs (most

powered by the brand’s legendary twin cam

powerplant) they continued to make some

of the best-looking road cars, with the han-

dling characteristics and driver involve-

ment to match. And while pricing was

unashamedly premium, it was all deemed to

be worth it.

That’s what keen drivers are hoping they’ll find

in the MiTo, due for local introduction early this

year, probably somewhere near the R200 000 mark for

the entry model. Punted as “a distillate of pure Alfa Romeo

values”, this next small Alfa (at four metres from bumper to

bumper it represents something of a return to the classics of the

50s, 60s and early 70s) is “made up of sensual style, agility and

technical excellence – all with the ultimate goal of driving

satisfaction.”

Only time will tell if there’s truth behind the hype and whether

the MiTo is ultimately capable of rekindling South Africa’s love

affair with Alfa Romeo. To quote the company’s spin doctors

once again: “The MiTo is a form of baptism into the Alfa religion

for a new generation of Alfisti...”

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

by Adrian Burford

Page 31: Automotive Business Review - February 2009
Page 32: Automotive Business Review - February 2009

The cultural creatives’ voice is

increasingly being heard, and

it looks like once again it is

America’s turn to take the

lead. Eight years of conserva-

tive leadership, which re-

mained steadfastly behind the status quo, has

meant that America has been behind the eight

ball in the search for, and more importantly, the

implementation of alternative fuel technologies,

despite a crying need for this, and despite the

strenuous efforts of progressive state governors

such as Arnold Schwarzenegger of California.

However, with the election of Barack Obama to

the world’s most influential position, the play-

ing fields have not only been levelled, they have

been turned on their head! Suddenly, Al Gore is

back in vogue, and his global warming warnings

are being taken seriously by the guy at the top.

Early in December 2008, Al Gore in his capac-

ity as chairman of the WE Campaign, met with

President-elect Obama to talk about solving the

climate crisis, and the impact of the meeting

was evident in Obama’s remarks after the meet-

ing, “…we have the opportunity now to create

jobs all across this country, in all 50 states, to

repower America, to redesign how we use ener-

gy, to think about how we are increasing effi-

ciency, to make our economy stronger, make us

more safe, reduce our dependence on foreign oil,

and make us competitive for decades to come,

even as we’re saving the planet.”

As Cathy Zoi, CEO of RepowerAmerica.org

and an ardent supporter of the WE Campaign,

puts it in an e-mail to Klaus Langer, “This is

fantastic progress. Our agenda is front-of-mind

for the new leadership, but much remains to be

done. We know that the oil and coal industries

will invest a lot to protect the status quo.

They’ll lobby. They’ll advertise. They’ll scare-

monger. The RePower America vision for clean

energy, a prosperous economy, and a safe cli-

mate must be heard in Washington and across

the nation.” Hear, hear Cathy, but let us rather

make that “across the nation and across the

world”, for this is not just an American prob-

lem, it is everyone on this planet’s problem.

Okay, so we have identified the problem, and

the new President of the leading nation has

identified the problem. This is a good start, but

the challenge remains immense. A century of

easy and inexpensive access to fossil fuels, and a

century of infrastructural development and

support for the dispersal and use of this fossil

fuel, together with a century of wasteful and

thoughtless behaviour, has to reversed and

reconstituted. It is, as Klaus puts it, as if we

have to go ahead and fight a war on three

fronts. The first front is the mindset front.

Secondly, we have to tackle the enormous need

for electricity and power generation, which still

relies heavily on coal and diesel. We have to

move from the conventional to the unconven-

tional, focusing more on wind, solar, hydro,

tide, even on nuclear (electrical) power genera-

tion, and we need to store this energy in a new

generation of batteries. Thirdly, we need to

find alternatives to the internal combustion

engine, to allow for greater and cleaner

mobility for the consumers of the future.

We shall focus on this third front in the next

Tipping Point article.

T h e t i p p i n g p o i n t

The Tipping Point – a series of articles based on a paper presented

to the SA Auto Strategies Conference in August 2008, presented by

Klaus G. Langer of the Munich Advisory Group, and subsequent

interviews with Klaus, who can be defined as a “Cultural Creative”

In previous issues of ABR, Klaus Langer reflected on the automobile of

the future, and the dynamics around the mobility needs of the consumer

and its influence on design and development. In this issue, we ponder the

situation around alternative fuels and its impact on the tipping point,

which is being increasingly defined and driven by the “cultural creatives”.

These three gentlemen

will play a major role

in the next four years

in beginning to imple-

ment the desires of the

cultural creatives, and

in establishing the new

energy frontier

Klaus Langer,Partner at the

Munich AdvisorsGroup

A l t e r n a t i v e F u e l s

F e b r u a r y 2 0 0 932

Page 33: Automotive Business Review - February 2009

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

33

Grand Vitara 2.4 ManualGrand Vitara 2.4 Manual

In September 2008, I was privileged to attend the launch of Suzuki’s Grand Vitara

and Jimny vehicles (see ABR October 2008), and thus when I received Suzuki’s press

release early January 2009 celebrating their growing market share in 2008, I was

not surprised.

The Japanese small car specialist, which entered the

local market in June last year with a 20-strong dealer

network and a R140-million investment in infrastruc-

ture and parts supply, currently commands a two per-

cent share of the passenger car market, with just four model

ranges (the Swift B-segment hatchback, the SX4 C-segment

lifestyle hatchback, the Grand Vitara 4x4 SUV and the Jimny

compact 4x4). Not unexpectedly, the most popular models were

the Swift and the SX4, as these are mainly city vehicles, whereas

the Grand Vitara and Jimny are more niche products. Kazuyuki

Yamashita, managing director of Suzuki Auto SA, is appreciative

of the performance, “Despite the overwhelmingly negative vehi-

cle sales trend currently experienced in SA and globally, we are

gratified by the performance of our Suzuki models locally”. He

continues, “Suzuki is already well placed to take advantage of the

growing demand for smaller, more efficient and more affordable

vehicles. We will also be introducing the all-new Alto subcom-

pact, which will bring the Suzuki motoring experience to an even

wider audience.” Yamashita expects Suzuki’s growth to continue

during 2009, bolstered by an increasingly prevalent buying-down

trend, and the introduction of additional, exciting new Suzuki

models. Suzuki’s successful formula is its ability to build solid

vehicles with quality finishes at aggressive pricing. This was

apparent in the week that I evaluated the Grand Vitara 2.4

Manual. Based on its launch price of R269 900, this “thorough-

ly modern, highly competent and technically advanced all-ter-

rain” vehicle, with a 2,4 litre power plant utilising twin overhead

camshafts and VVT variable valve timing (122kW @ 6 000rpm;

225Nm @ 4 000rpm), is indeed very good value for money.

With me being the consummate city slicker, I did not have the

opportunity to put this willing steed through its 4x4 paces, but I

did not need to, as during the launch in September, we experi-

enced the Grand Vitara’s terrific off-road skills. With the car in

my hands for a week, I now had the time to leisurely savour its

urban and highway skills. It handled its urban duties with

aplomb, and with the condition of some of Gauteng’s roads, even

its off-road pedigree came into play during this assignment,

which it passed with flying colours. It is comfortable, roomy, easy

to drive, surprisingly manoeuvrable and reasonably speced, with

all the mod-cons one expects today. I did miss the cruise control

though, which is standard on its bigger 3,2 litre brother. And it

is definitely not thirsty. During a short run to Rustenburg, I

managed to achieve 8,1 litres per 100km in relatively light traffic

and at the legal speed limit, which for such a relatively heavy

vehicle, is good going indeed. I could go on and on, but for those

who want to know the finer details, this can be found at

www.suzukiauto.co.za

F e b r u a r y 2 0 0 9

by Howard Keeg

Page 34: Automotive Business Review - February 2009

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

F e b r u a r y 2 0 0 934

THE NATIONAL DEPARTMENT OF

UNRESOLVED PROBLEMSThe 2007/08 annual report of South Africa’s National Department of Transport is

an imposing document, made up of 219 pages. It contains more than its fair share

of typical political inexactitudes, but, lurking in the section titled “Strategic

Objectives” are a number of clauses which suggest that this is, indeed, the government depart-

ment that holds the ultimate responsibility for strategy and regulation relating to all forms

of transportation in South Africa. While it is obvious that much of the day-to-day management

of air, rail, maritime and road transport is executed by other structures, such as the

Provinces, Transnet and Local Authorities, it seems that the DoT has the mandate to ensure

that transportation in South Africa works to the benefit of the country and its citizens.

If this position is accepted, then Houston, we have some prob-lems. Looking at the situation from the perspective of the man-in-the-street, rather than the rarified air of lofty political ideal-ism, there are a number of key areas in which national trans-

portation policy is clearly not working, and demanding theDepartment’s serious attention. Consider these:

• More than ten years ago, amid much fanfare, this Departmentinitiated the Taxi Recapitalisation Programme. To-day, we stillhave daily evidence that significant elements of the taxi industryare out of control, and a danger to themselves, and the commu-nity they are supposed to serve. The handing out of vast sums of“recapitalization” funds has achieved little more than the appear-ance of some new taxis, many of which are Chinese, and not thetype of vehicle originally envisaged in the TRP at all. The reasonis simple: Too much emphasis has been placed on writing screedsof constantly changing vehicle specifications, many of whichwere rejected outright by the taxi community on justifiablegrounds of cost, while not enough effort was expended on get-ting taxi owners and drivers committed to a road-legal and safeservice. After years of “coaxing”, elements in the taxi communi-ty still regularly take on central and local government structures,and argue vehemently against the need for important publictransport initiatives such as Bus Rapid Transit systems. TheDepartment needs to sit down immediately with the Taxi indus-try leadership, and get their unconditional buy-in to legal oper-ation, and intermodal co-operation, so that they can provide areal service to the country.

• The reports, in December, 2008, that the Department ofTransport was reneging on its contractural obligation to pay busoperators the subsidies to which they were legally entitled,because of inadequate government funding, added yet anotheritem to the long list of obstacles with which have continuouslyconfronted this public transport mode since 1994. These includethe interminable to-and-fro negotiations delaying the finalimplementation of the “tender-for-routes” system, continuousdelays in providing operators with anything other than extreme-ly short-term authority to operate, and the systematic removal ofvital skills from the industry in the name of Black EconomicEmpowerment. The result has been an extremely difficult busi-ness environment in which operators could not adequately plantheir businesses, or justify financing fleet acquisitions. Of course,the taxi community was more than happy to fill any gaps left bydisadvantaged bus operators! The Department needs to recog-nize the important role that buses must play in the provision ofpublic transport, adopt a more positive attitude to bus operators,whatever their background, and ensure that the few skilled peo-ple still remaining in the industry stay put.

• Despite the regular publishing of strategic documents promisingthe imminent return of rail transport as a significant contributorto the national freight transport task, the reality is that more andmore of this burden has been taken on by private sector road car-riers. Transnet Freight Rail has experienced enough difficulty in

satisfying its clients on the single-purpose Richards Bay coalexport line, so the chances of it providing an efficient, reliableand cost-effective service on a highly diverse, and extremely busycorridor such as Durban-Johannesburg is open to question. Theresulting pressure has caused the national road infrastructure,once a source of pride to the country, to deteriorate at an alarm-ing rate. Fortunately, the most important trunk routes have beenprotected by privately-operated tollroad concessions, but thereare a number of important national arteries that have becomeextremely hazardous. This has been a contributory factor to anunacceptably high national incidence of serious and very expen-sive accidents involving heavy-duty goods and passenger vehi-cles, exacerbated by excessively long driving hours, sub-stance/alcohol abuse and rank bad driving. The Departmentneeds to urgently finalise long-overdue legislation limiting driv-ing hours, and ensure that enforcement cracks down on drivermalpractice, and discontinues the much-reported briberyoption. It must also promote public-private partnerships whichcan endow Transnet with the management skills necessary tobecome a real force in line-haul freight transportation. There willbe very little argument against multi-modalism from the privatesector if the policy brings concomitant benefits of cost-efficien-cy and reduced pressure on the national road network.

• We have heard much about the reduction in road accident fatal-ities recorded over the 2008 Festive Season. To its credit, theDepartment of Transport has resisted the temptation to celebratethe death of “only” 885 people too loudly, but to rather pointout that much still remains to be done. The problem is that thisyear-on-year reduction of 42% may have reflected reduced traf-fic levels, but was certainly achieved by increased enforcementand police intervention, and not by a long-term transformationof driver attitudes. SA motorists’ favourite game of “spot thecop” will therefore resume as soon as the men in uniform taketheir delayed vacations. The Department needs to develop acomprehensive programme of media-based information, withsupport from community icons, to encourage good driving prac-tice. This should avoid sensationalist “shock-horror” material,but rather educate through building the public’s understandingof speed, vehicle roadworthiness, seat belt usage, road signs, etc.They should also get the traffic police out from behind theirspeed traps and bushes, to interact positively and educationallywith the driving public.

The failure, on non-existence, of effective legislation to deal withthese, and other problems suggests that the Department of Transportmay be spending too much time walking the corridors of power, andnot enough out on the streets. Setting lofty-sounding strategic direc-tion is all very well, but it can take a very long time before this trans-lates into meaningful action, and it sometimes seems to just evapo-rate without trace. These problems are not new, but worsening daily,and demand some urgent and meaningful action from the currentminister, if he, too, is not to be relegated to the same historicscrapheap as a number of his ineffective predecessors.

by Frank Beeton

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35

Getting a Grip on ToolsStill wondering what to do with that silver fondue set you inherited from your

grandparents? And what about those flying ducks that your mother has promised

you? Don’t fret, just go with the flow, but make sure that you do not repeat these

heritable aberrations, and that your heirs inherit something of value, and that

they remember your wake with fond feelings. What better than a set of quality

hand tools with a lifetime warranty, which shall ensure that future generations

shall also benefit.

Aslam Mia wants you to tool up for a lifetime of usability – here hestands in front of a tool set developed specifically for the SA market

The AmPro stand at the AAPEX Show in Las Vegas in November2008, signifying AmPro’s global presence

The problem is that top of the range tools can

cost an arm and a leg, and to collect a full set

could require a second mortgage. Fortunately,

help is at hand, in the form of AmPro, a com-

prehensive range of value for money hand tools

for both the professional and D.I.Y. handyman.

Core categories include socket sets and accessories, spanners,

screwdrivers, pliers, pneumatic tools & specialty tools (e.g. coil

spring compressors, pry bars, compression testers, and much

more), as well as tool chests. This is a world class quality range of

tools, and the big plus is that it carries a lifetime warranty.

AutoZone is the South African distributor of AmPro, and

AutoZone’s extensive footprint in the country means that these

world class tools are readily available for the diverse spectrum of

tool users in South Africa. The secret behind Ampro’s success is

its dynamic founder, Scott Wang, who has his finger on the pulse

of global tool trends, and he is continually travelling, looking for

pockets of excellence and sourcing globally. The good news is

that even though his biggest market is America, he is not too big

to develop tool kits for the South African market; specified by

AutoZone, and made up specifically for the domestic market.

This ability to think globally, and act locally, has made AmPro a

highly respected brand and a world leader in tools, with a repu-

tation for a comprehensive range of innovative products. “This

product stands back for nothing and measures up to the top

international brands” says Aslam Mia, AutoZone’s National

Buyer of AmPro. Aslam explained to ABR that whilst AmPro has

been in the South African market for over ten years, “it took time

to gain traction, which was only gained in 2003 when AutoZone

decided to place a high priority on tool sets, and to expand the

range significantly.” These steps bore fruit, and AmPro now has

a strong market presence, offering value for money, quality, and

a lifetime guarantee on each individual part. This confidence in

the product, which is extremely rare in the industry, has really

put AmPro on the map.

With this momentum, market share is growing, and Aslam Mia

promises even bigger things in the future, driven by an ever

improving range, catering for the smallest tool to heavy duty

mining sets. If there is a demand, AutoZone will source the prod-

uct. Aslam confirms that specialty tools for specific models are

being developed. “Watch this space” is his watchword, when

referring to range improvements and special deals. Even though

the “killer deals” offered in AutoZone’s Christmas 2008 promo-

tion (e.g. 69 piece three tier cantilever tool kit for an insane

R1399.95) have expired, Aslam says that these types of deals will

always happen, via monthly and seasonal specials. Go to

www.autozone.co.za to sign up for promotion notification, or

watch out for the AutoZone leaflets in your local knock ‘n drop

newspapers.

F e b r u a r y 2 0 0 9

u p d a t e

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B i k e N e w s

F e b r u a r y 2 0 0 936

Are you a non-conformist?

Do you spend a lot of time

on the road? Do you under-

stand technology and appre-

ciate technological design?

Most importantly, do you

know who you are and have

absolutely nothing to

prove? If you answered yes

to these questions, then you

owe it to yourself to test

ride the crème de la crème

of sport motorcycles, the

Buell. Borrowing from

Buell’s marketing blurb,

their bikes look like nothing

ever built before, and feel

like nothing ever ridden

before, but you wouldn’t be

a true biker if you simply

took their word for it. They

say that you have to experi-

ence the difference for

yourself and to book a test

ride all you have to do is to

contact Peter Scott at

[email protected] or

082 829 5457, and he will

take care of the rest. If

you’re based in Gauteng, why

not pop in at Eagle Wind

Harley-Davidson at 167

Rivonia Road, Sandton, and

Peter will be delighted to

personally show you what

you’ve been missing.

Peter Scott is a motorcycle enthusiast who loves a riding, and he appreciates any-

thing on two wheels that gets his adrenaline flowing. Peter has been riding bikes

every day for as long as he can remember, but admits that for the past four to

five years it has normally been a Buell, simply because it is “as much fun as you

can have with your leathers on” and as they say at Buell’s headquarters in East Troy,

Wisconsin, “Once you’re into a Buell, you’ll never go back”. As Buell fans are usually

fanatics, don’t take their word for it. Find out for yourself, or ask Harley-Davidson. The

hogmaker also agrees, having bought 49% of the company in 1993, and going the full

hog ten years later and taking 100% of the shares in 2003. The rationale from Harley’s

point of view was to attract a younger demographic, as opposed to the Harley greybeards,

but there is more to it than that. Peter says that Erik Buell, the 58 year old founder and

chairman of Buell Motorcycles, is one of today’s foremost bike designers, if not the fore-

most designer. The reason is simple – Buell puts the rider first, and this is the focal point

in design; the bike must be fun to ride, and work functionally. Ask any Buell aficionado

and they will tell you that the secret is in the Trilogy of Technology:

1. Mass centralisation – the heavy

components are centralised in the core

of the bike, creating incredible stabili-

ty. Examples: the fuel is in the frame,

the exhaust is underneath the bike.

2. Low unsprung mass – the mantra

at Buell is to keep the weight down

and every gram counts. “I want every

part to do at least two jobs” says Erik

Buell. Innovations such as aluminium

pulleys and belt drive contribute to

this weight reduction, creating a bike

that can handle bumpy roads, which

makes it relatively unique in the high

performance genre.

3. Chassis rigidity – A uniplanar sys-

tem (rubber mounted system which

moves the engine in one plane) allows

for a rigid chassis and no flex in the

corners, leading to Buell’s proprietary

slogan, “Own the corners”.

Buell’s trilogy of technol-

ogy innovations are now

being copied by super

bike designers; the high-

est compliment it can

receive. More on Crème

Bûéll in future issues of

ABR.

Crème Bûéll

Peter Scott with the Buell XB12X Ulysses.

Page 37: Automotive Business Review - February 2009
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F e b r u a r y 2 0 0 938

1. What school did you go to?

Northcliff High School.

2. What sports did you play at school?

Swimming (his favourite), athletics and

rugby.

3. What did you want to do at school?

Be involved with cars and motoring.

4. What were your favourite cars at the

time?

The cars that were all the rage at the time,

thanks to group 1 motor racing at Kyalami

were: Alfa Romeo GT5 2.5 & 3.0 V6s and

Ford XR6

5. What did you do after school?

Studied for B.Com in Industrial

Psychology

6. After getting your degree?

Went overseas to a ski resort in Austria, as

resort manager and learned to talk

German.

7. Did you meet interesting people at the

ski resort?

Yes. Neville Nightingale, the MD of

Wesbank and his general manager at the

time, Ronnie Watson. We also spoke about

cars and financing of the same. Neville’s

wife had a personnel agency and she spoke

me into coming back to RSA to work for

Wesbank.

8. First real job?

Senior business development officer at

Wesbank city branch. Worked there for a

year and picked up lots of experience but

could see I wanted to work in the motor

industry itself.

9. ‘91 changed the direction of your life?

Yes. I was made an offer to start selling

used cars at Mercurius Motors in

Boksburg. The dealership was bought out

by Imperial Motors.

10. What did you do next?

I was approached by Billy Rautenbach

who brought Hyundai into South Africa.

This was one of the best times of my life.

Billy and Hyundai were on fire. We grew

the number of dealerships and sales and

even went national championship rallying

(one of Billy’s loves) and racing to give a

Korean Car, Hyundai, wins over Honda

who were unbeatable class winners at the

time. It was a 7 days a week job. We even

serviced customer cars on Saturday and

Sunday. I learned the wholesale and retail

motor industry from Rautenbach and

Hyundai. Also met Teresita van Gaalen,

who was doing the PR for Billy and saw

how to get lots of publicity.

11. What else did you do at Hyundai?

Went to Botswana and ran the retail oper-

ation there for 6 months.

12. When was your next move?

In 1994 I opened and ran the successful

Randburg branch of Hyundai (opposite

M-Net). We had 21 sales people. We used

to sell 200 cars on average per month and

averaged 185 p.m. for the year.

13. And then?

Was made the marketing manager for

Hyundai for South Africa and also ran the

motor sport. It was an exciting time.

14. Another change of employer?

Yes – I began my own retail company,

Auto Capital Investments, with franchises

locally represented by those two other

dyed-in-the-wool motor men, Manny da

Canha and Ray Levine, who were the main

movers. They specialised in retail motor

dealers. We had all the brands in the line-

up. Hyundai, Kia, Renault, Daihatsu,

Daewoo and Citroen.

15. Did you ever think of going overseas

It crossed my mind. I had an offer from a

motor group in Dubai with the Honda,

Volvo and Chrysler franchises. But South

Africa is where I want to stay.

16. 2005 – Change of life once again?

Tony Pinfold, chairman of GWM in

South Africa, approached me to get in on

the ground floor and assist him with his

new company as MD. As the biggest man-

ufacturer of Chinese tough one-tonners, it

looked the way to go, particularly as their

quality was good and they were making

big inroads into export markets around the

world. They have big plans and it all pres-

ents a great challenge.

17. Has it been successful?

Very. We are also feeling the effects of the

world depression on the auto industry, but

are well placed with our prices, improved

quality and increasing range that is soon to

include cars as well.

18. Married?

To Adele for 11 years. Have two sons –

Trent and Remy.

19. Do you have time to spend with

them?

Yes – we like to go off-roading on motor-

cycles. I have a Honda CRF 250 and the

boys each have a Honda 80.

20. Still want to achieve what?

To continue to get GWM expanding with

great customer service and even better

value for money.

21. You are still young but what would

you like to do when you retire?

I could never retire completely. I would

like to travel more. Adele is another one of

the Springbok shopping captains who likes

the south of Italy and France.

22. Greatest influence in your life?

My dad – the world’s greatest gentleman.

Billy Rautenbach was a visionary and big

thinker in the motor industry with lots of

energy. All recipes for success.

Q & A With Henri MeistreINTERVIEW WITH HENRI MEISTRE, MD OF GREAT WALLMOTORS IN SOUTH AFRICASouth Africa is full of good motor men and GWM (Great Wall Motors) could not have made a better choice than appointing the expe-

rienced all-rounder, Henri Meistre (43) as the MD of the company at a time when the Chinese Motor Manufacturers are starting to

get a foothold in South Africa, and in fact around the world. Roger McCleery spoke to the man in question, Henri Meistre.

by Roger McCleery

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

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

Editorial

Partnership

Giel Steyn

In this series of articles ABR discusses with Giel Steyn of Grandmark Internationalthe four significant factors that should be taken into account when purchasing auto-motive parts - Technology, Quality, Safety and Value for Money. These four character-istics are inter-related, and each cannot stand on their own, and together they becomea motorist's best friend. Similarly, diamonds are also judged on four characteristics, known as the“four c's” - carat, clarity, colour and cut; and of course, diamonds are a girl's best friend.Grandmark International, as a distributor of automotive parts, is keenly aware of the need tosource only the best in Technology, Quality, Safety and Value for Money, and therefore it is appro-priate that this series of articles is titled Diamond Dialogues.

The Anti-Freeze Debate Heats UpThe longstanding confusion around the use of anti-freeze in vehicles’ coolant systemsin South Africa continues to confound Giel Steyn. Despite extensive education cam-paigns from various sources, and an overwhelming body of knowledge available fromtraining institutions, the internet and other channels, the misconceptions around theproperties and uses of anti-freeze has Giel shaking his head, and if he was a moredemonstrative person, we would not be surprised to see his blood boiling.

F e b r u a r y 2 0 0 942

The genesis of Giel’s passion around thissubject hinges on the four dynamics ofthe diamond dialogues – technology,

quality, safety and value for money. Anti-freezeis a relatively inexpensive “commodity” whichcan be found on the front-of-store shelves of allautomotive parts retailers, and even on theshelves of general merchandise stores, and yet itplays an important and integral part in theprotection and good maintenance of a vehicle’scooling system, and taking this logic a littlefurther and taking the bigger picture intoaccount, its role expands to being a protectorof engine components. The implications of notusing this additive properly are huge, and Gielattributes the confusion around the propertiesand uses of this unheralded preservative to theuse of the word “anti-freeze”. The mere men-tion of the term anti-freeze evokes the wrongperception, as thoughts of Iceland and Alaskaimmediately come to mind, whereas anti-freeze is far more than a protection against thewater in your radiator freezing up. To be moresemantically correct, in hot and dry conditionssuch as South Africa, the term should rather be“anti-boil”, or the rather more descriptive, butoxymoronic at the same time, “anti-freeze andanti-boil”, because a good quality coolant hasboth anti-freeze and anti-boil properties.Taking this argument to its logical conclusion,Giel believes that a better all-encompassingterm would be “anti-seize” as in the long runthis additive both lubricates and prevents cor-rosion of cooling systems, and what is the pri-mary purpose of a cooling system other than toprevent the overheating of the engine and itscomponents? Neglect this function and youhave seizure of said engine! Whatever, we aresaddled with anti-freeze, which has stubbornlyresisted change, and we will have to live withthis terminology until hell freezes over. For thepurposes of this article, the best we can do is toreemphasise the all-round nature of the prod-

uct and its versatility when considering thefour elements of the diamond dialogues:

Technology

The modern internal combustion engine runsat far higher temperatures than its predeces-sors, with a variety of metals and materialsexposed to this intense heat. Iron, steel, alu-minium, brass, plastics, rubber, etc. are alsovulnerable to corrosion, so they need all thehelp they can get. Thus it is imperative thatthe vehicle’s cooling system not only plays acooling role, but also an anti-corrosion role,and this is where the anti-freeze additive ful-fils its important function. The vital elementin anti-freeze is mono-ethylene glycol, and agood coolant will always have at least a 30%glycol content, and not more than 50%. Thiscan be easily measured by a hydrometer,which any self-respecting workshop will havereadily available. Read more on this on manysites on the internet – just google it!

Quality

Confusion also abounds when trying to eval-uate the quality of anti-freeze. The colour ofanti-freeze is irrelevant, and yet many “pun-dits” will base their quality evaluation on thecolour. Colour does indicate certain proper-ties, such as the addition of fluorescentcolours to assist in leak detection, and redcould indicate the presence of phosphate,which may be helpful, as phosphates andmono-ethylene glycol are incompatible. Butthese are just maybes, and cannot be used as aquality gauge – leave the evaluation to thetried and tested hydrometer, or to the obviousguide of price. If the price is too good to betrue, then it is too good to be true anti-freeze.

Safety

It needs repeating. In crime ridden SouthAfrica, automotive safety is an all-encompass-

ing concept. It does not relate to just accidentprevention. It also relates significantly to thefact that when a car breaks down, the driverand passengers are in mortal danger of beingattacked by their fellow citizens. An unfortu-nate situation, but it cannot just be wishedaway. Therefore it is incumbent on the car’sowner to ensure that the car is fully roadwor-thy, and that the engine will not grind to ahalt on some lonely stretch of road simplybecause of the use of some cheap and nastyanti-freeze. Life is far more precious than asaving of a few Rands.

Value for Money

This brings us to the fourth element of thediamond dialogues – value for money. Valuecan only be appreciated when a product doesits job, and true value can only be appreciatedwhen a product truly does its job. This is astrue for anti-freeze as it is for brake pads as itis for radiators. This is a huge philosophicaland existential debate, and we simply do nothave the space to even touch base on the basicarguments, so we’ll leave it there, suffice torepeat “What is the value of your life, com-pared to the saving of a few Rands?”Goedkoop can turn out to be very duurkoop,just because you bought some coloured waterinstead of the genuine article. We end thisarticle with an acknowledgement toGrandmark International. They have goneout of their way to provide their customerswith technologically sound, quality productthat meets and exceeds the safety require-ments, whilst also providing genuine value formoney. Plexus radiators are a case in point. Ifyou fit Grandmark sourced Plexus radiators,don’t go and spoil the diamond dynamics bybuying below par anti-freeze. Take the troubleto procure the best, to go with the best.

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F e b r u a r y 2 0 0 944

Capricorn’s PurplePatch Continues

The Capricorn Society’s Annual Bash continues its unabated growth. The Durban bash

on 22nd November 2008 attracted 350 guests, and on 29th November 2008 the

Gauteng function moved from the upper halls at Emperors Palace and Convention

Centre, down to the more cavernous Centre Court, with over 560 guests partying the

night away after the customary annual update, which once again indicates that the

society continues its stellar growth, even in the challenging times that 2008 had

brought to the automotive industry. The way things are going; don’t be surprised that

in a few years time there will be an annual migration to a large resort such as Sun

City, to accommodate the vast numbers which are surely going to come.

The ancillary trade showattracted a lot of interest,with a diverse mix of

exhibitors. Federal-MogulAftermarket, as the keysponsor of the event, waswell represented in person-nel. By sponsoring the

wine, Midas ensured thatthe conversation flowed.

A purple fantasia at the tableshas become something of a

tradition. Capricorn once againdid not disappoint.

Eight suppliers joined the Million Rand Club: BASF Pretoria;Barloworld City Jhb; Gearmax; Hatfield Auto; Menlyn Auto; N1 4x4;

Shell SA; Unnic Auto Parts. Some of the winners are seen withCapricorn’s big hitters: David Fraser, Group Sales and MarketingManager; Trent Bartlett, CEO; Russell Green, Chairman; Rob

Mildenhall, Development Manager, RSA.

I n s i g h t s

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

ABR attended the Gauteng function, and judging by the eclec-

tic mix of stands at the conjoined trade show it is clear that

Capricorn has indeed found the right balance of co-operative

endeavours, with OEMs, franchise dealers, aftermarket man-

ufacturers and purveyors cheek by jowl and happily interacting with the

assembled throng. This indicates a new trend in South Africa and it is

clear that the Capricorn Society model truly embodies the co-operative

spirit. The success of this formula comes through in the figures, with

growth now the expected norm, and who would have thought back in

1974 when 12 wise men founded the organisation in Perth, Western

Australia, that in June 2008 the membership would have grown to 12

107 from Auckland to Cape Town. In 2008, laatlammetjie South Africa

predictably led the growth curve, with 25% growth in turnover, closely

followed by New Zealand with 22% growth, and Australia still manag-

ing 15% growth 34 years after the establishment of the society. South

Africa is reeling in its southern neighbours slowly but surely, but it still

has a long way to go before it can take the championship trophy. One

of the challenges facing South Africa is sustainability. In Trent Bartlett’s

keynote address, he alluded to the problem of fiscal discipline, particu-

larly with regard to the timeous payment of accounts. A sustainable

business model for a co-operative depends on at least 95% of the mem-

bers paying on time, and this is being achieved by both Australia and

New Zealand. Unfortunately, South Africa is not emulating its cricket-

ing heroes, and thus the Society has been forced to tighten up its crite-

ria for membership, a move that has been welcomed by the South

African founder members, who wish to see the errant members step up

to the plate in this regard.

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What can we, as consumers, learn

from these experiences? Firstly,

that excess breeds wastefulness,

and that what goes round

comes round. Secondly, that if we tighten our

belts during the bad times, then what is stop-

ping us continuing this good habit during the

good times. If we do this, then we won’t have

the big ups and downs that we have recently

experienced. Thirdly, if we keep looking for

value for money, it is good for the consumer

and good for the country in the long term,

since this will keep inflation at bay. Take

motoring costs, for example. One needs only to

look at the AA mileage rates to realise how

much it costs to keep a vehicle on the road, well

maintained and in roadworthy condition. It is

an extremely expensive exercise, so it makes

sense to always compare prices whenever you need a car part, to

ensure that you’re not being ripped off twice. The big dilemma,

of course, is always “Am I not being sold a pig in the poke?” when

confronted with a very good deal. The other problem is that

when comparing prices, one can never be sure from a product

perspective whether you’re comparing apples with apples. A good

rule of thumb is to always ensure that you’re buying a well known

brand that has been around for quite some time; then to compare

prices on equivalent brands makes it pretty safe.

The question is, does buying a low priced automotive part tame

inflation? Considering the aforesaid, highly unlikely. The recent

influx of cheap imported product has placed a stain on anything

coming in from the Far East, and in many cases this reputation

is well deserved, which is unfortunate, as you do get good quali-

ty product coming in from the East, and at good prices. The

secret is to know what is good and what is bad. With some prod-

uct, it is practically impossible for the consumer to know, as he

or she does not possess the equipment or knowledge to evaluate

the product. But there are products where you can feel very

secure in your purchase. Automotive glass is a very good exam-

ple. Being a safety critical item, and a highly visible product,

imported windscreens and side glass are subjected to intense

scrutiny by various bodies – the SABS, the NRCS, and insurance

companies, amongst others. ABR has done

some research on this, and unlike other safe-

ty critical items such as brake pads, it appears

that there is good control on windscreens and

that very little “bad” product is getting into

the country. Excuse the pun, but it does seem

that the industry is transparent and clear,

with no cracks or chips in its facade. Credit

for this must go to the regulatory authorities

and the industry itself.

A shining example of quality, conformity and

value for money is Commercial Auto Glass

(CAG), which opened the doors of its first

branch in Selby, Johannesburg in 1999, and

which has since expanded to a further 10

branches in southern Africa. CAG is now

recognised as a reliable and preferred supplier

of automotive glass to the transport industry, and it also provides

a service to the insurance market, which allows for versatility in

maintaining continuity within the glass industry, with the supply

of a specific range of products that meet with OEM standards

and criteria laid down by the Motor Manufacturers and

Insurance Committee. In addition, glass supplied by CAG meets

with the internationally recognised ISO9001, ISO9002,

ISO9003 and QSV9000 standards, and carry the “E” mark

(European Specification) and the “DOT” mark (American

Specification). Domestically, CAG has gone the extra mile, with

the assurance that all glass supplied is shatterproof, laminated,

and high resistant as certified by the SABS. In addition, CAG

also offers safe and secure SABS approved fitment centres with

comfortable waiting rooms for the customers’ convenience. As an

added bonus, if you are not in a position to visit these fitment

centres, CAG will come to you!

Now for the best part. CAG has extremely competitive prices,

which begs the question why locally sourced glass is so much

more expensive. This is a classic example of global trade been

very, very good. Who says that you can’t lick inflation? More

power to CAG’s elbow, and may we see many other examples of

high quality product at realistic prices in the future.

A u t o g l a s s C l a r i f i c a t i o n

Gilo da SilvaManaging Director, Commercial

Auto Glass

F e b r u a r y 2 0 0 946

Keeping Inflation at Bay2008 was a particularly tough year for South African consumers. Inflation touched

10%, the petrol price went over R13 a litre, food prices soared, credit was difficult

to get, and when you got it, the interest rate made you wish that you hadn’t got it.

Add to this the other frustrations; electricity supply was intermittent, water quality

scares abounded, political uncertainty kept the investors away, the list goes on and

on. The good news is that we survived, a little bit older and a little bit wiser, but we

survived. More good news is that we enter the new year with a petrol price that is

40% below its 2008 peak, and the expectation that food prices are going to come

down, and inflation, if not tamed, will come back to the targeted three to six percent

range by the end of 2009. The interest rate cycle has entered a downward phase, so

all in all, it’s looking far better than a mere three months ago, so let’s hold thumbs.

To avoid putting the mockers on all this, we won’t mention Eskom.

Page 47: Automotive Business Review - February 2009
Page 48: Automotive Business Review - February 2009

It would not be an overstatement to say that batteries power

the economy and ensure that the wheels of the nation keep

turning. From mining, to industrial, to transport, to any-

thing that moves or needs to be moved, batteries are inte-

gral to the process. The world goes about its business hard-

ly noticing these unsung workhorses, but when these bat-

teries fail, or underperform, great inconvenience and unnecessary

downtime costs are almost always experienced, as the consequences

of lack of or inadequate battery power can be quite serious. The qual-

ity of the battery is very important, but even more importantly; it is

the quality of recharging that everyone should keep in mind, to

ensure optimum performance of the battery and the associated elec-

trical system over the long term. Frank Rovelli senior says that the

charging process is the most important function to ensure maximum

life expectancy and optimum battery performance, and that this

should be the focus of everyone, from the manager to workshop per-

sonnel to the individual motorist. The charging process has evolved

over the years from simple D.C. generators to the modern advanced

alternator to stationary battery chargers, but the guiding principle

stays the same – a quality battery is only as good as the quality and

reliability of the charger, be it an alternator on a vehicle or a station-

ary unit in a workshop/garage or industrial/mining installation. This

essential technical requirement governs many things; the efficiency of

the battery, the life expectancy of the battery, the performance of the

battery itself and consequently that of whatever equipment the bat-

tery is powering is driving, and ultimately, it has a significant effect

across a wide spectrum of the economy, from the profitability aspect

of any business to unnecessary down time and inefficiency of operat-

ing equipment/vehicle to the inconvenience for and personal safety

of the lone motorist. It is from this perspective that Frank Rovelli

laments the fact that there are so many poor quality cheap chargers

available on the South African market, which are generally ineffec-

tive, inadequate for the purpose and not suitable for the effective

charging of modern high quality and high performance batteries.

In the current economic crisis, people and companies are under

financial pressure and they’re looking for cost savings in every nook

and cranny. Therefore it is no wonder that they are attracted to

advertisements offering battery chargers from R299. These ads

promise many undefined benefits and features, such as “light

weight” to “multi-function” and “micro processors”, and to the unin-

formed and uninitiated, this must sound like financial heaven. “How

can I go wrong?” or “What a

deal!!!”must be the thoughts going

though their minds, particularly

when they compare this price to

that many times higher for a top of

the range heavy duty equivalent,

which can last for many years

under continuous onerous opera-

tion. As Frank puts it, they can go

very, very wrong. Frank says that it

is difficult to explain to the gener-

al public in a short article the technicalities involved in battery charg-

ing, but for starters he will just ask you to ponder the difference

between a charger weighing half a kilogram and a charger weighing

50 kg, with a corresponding price variance. It is akin to comparing a

scooter with a Harley-Davidson! And forget about the weight com-

parison or the price comparison, what should really be exercising

your mind is the consequences to your business or to the efficient

performance of your vehicles and/or equipment. We shall explore

these aspects further in the follow up article of “Know the

Consequences”

C u r r e n t A f f a i r s

F e b r u a r y 2 0 0 948

A Perfectly Frank View

Article One: Battery Charging Equipment - Know the Consequences

Francesco (Frank) Rovelli senior has been involved with Delco-Remy in one way or anoth-er for 59 years, from Saudi Arabia to South Africa, and from the mining industry to theautomotive industry. His Delco-Remy roots has meant a close association with GeneralMotors, representing them in Delco-Remy product over these past six decades. Frank emi-grated to South Africa in 1956, and founded Probe Corporation SA in 1963. Probeopened its doors in 22 Jeppe Street, Johannesburg, handling GM’s electrical warrantyand technical back-up for Southern Africa, and now some 46 years later, it offers thecomplete power package from its corporate headquarters in Meadowdale, Germiston (goto www.probegroup.co.za for more information). Now executive Chairman of ProbeCorporation, Frank remains active in the business, but is spending more and more time inpassing on his vast practical knowledge of all things electrical. ABR is privileged to bepart of this imparting of knowledge, with a series of articles gleaned from interviews withFrank Rovelli, appropriately under the title “A Perfectly Frank View on Current Affairs”

Frank Rovelli, Chairman of Probe Corporation

This is what a real charger lookslike.

Page 49: Automotive Business Review - February 2009
Page 50: Automotive Business Review - February 2009

Tyres and TheirContribution to Safetyin Motoring

Road safety is an extremely important subject, to me, and to Bridgestone, who take it so

seriously they have tasked me to make people aware of the safety side of the tyres we

drive on. Unfortunately, road safety is not taken seriously by enough road users, or the

authorities. And tyre safety is apparently barely even considered by most people.

Company cars constitute a large percentage of the family vehicles on our roads over the

festive and other holiday seasons. Their drivers are part of the road users mentioned

above. While they must take responsibility for the vehicles they are entrusted with,

experience has shown that few ever do. Since these are company assets, it is often the

unfortunate lot of the fleet controller who has the fleet care within his/her portfolio,

to keep the drivers aware of their responsibilities.

So to keep our focus, we are going to explain what should be done with the tyres on your

fleet’s cars after long holiday trips, so you can keep your staff ‘tyre safety’ aware.

Let’s start by giving you an example of what happened to

me during the holiday period. Not liking crowds, we

had taken leave in November so stayed in Gauteng over

December and on the 16th, we decided to do a day

trip. Leaving early due to the distance, we encountered about

seven different weather patterns on the way. During one section,

there was heavy rain and with the wet roads, potholes became

indiscernible. Only travelling at about 70 km/h due to the poor

visibility, I hit a BIG pothole square on with my left front wheel.

At the following service station I stopped and checked the wheel

and tyre for damage. None was visible so we carried on staying

aware that damage may still have occurred, and could show up at

a later stage.

I have since taken the wheel off, stripped the tyre and checked it

inside and out. I found no damage, but I have moved the tyre

and rim to the left rear, and check it weekly. Why do this? And

how does hitting a pothole affect the safety of all of you out

there?

The point of the story is that ”stuff ” happens on the roads no

matter how careful one is. “Stuff” happens to tyres, and the

results don’t always show immediately. Company car drivers don’t

always report ‘stuff ’ immediately either. Especially, something as

‘trivial’ in their minds as hitting a pothole and thus they need to

be made aware of the potential consequences of such a “trivial

occurrence”.

What happens to them on the roads at best can lead to simple

roadside breakdowns and the accompanying irritation. But what

happens to them on the roads can also lead to serious damage,

resulting in later breakages and possible tragedy. It is highly

advisable for fleet controllers to set up procedures which their

vehicle drivers need to follow, and report on. Although proce-

dures can be ignored they do have two positive aspects: one being

they make drivers aware of factors not thought of before, and two

they cover the company for any eventualities. You can’t make the

horse drink, but one should take the responsibility of providing

the water. Drivers should be made aware of making notes of

possible damage, such as hitting potholes, and keep checking the

tyres for indications of damage and/or possible failure. If the

cause of their concern is severe, they should move the tyre

involved to a safer position. In my case, because I am familiar

with what indications to look for, and carried out the inspection

myself, I am content to keep the tyre in service (and it is a tough

Bridgestone D694….). If I was uncertain, it would be on my

spare by now although I will still keep an eye on it. And this is

what any driver of company cars, as well as private ones, should

do. Keep an eye on them. If unsure, they should consult profes-

sionals. But even then, they should watch them as damage can

manifest six months or more after being inflicted. On the very

odd occasion, the manifestation can come about as sudden

failure. So one’s biggest danger is complacency. Remember what

we have said before about tyres being multi-component products.

by Marcus Haw

F e b r u a r y 2 0 0 950

Page 51: Automotive Business Review - February 2009

51

After a road hazard, no matter how apparently trivial,

potentially fatal damage can take place between any of these

components, and these too can be terminally damaged. And,

as explained, this may only show up much later when least

expected. Tyre safety cannot be taken seriously enough, and long

holiday trips in company cars are most often the times when the

tyres are least thought of, and mistreated.

Safety should always be the number one aspect,

prioritised above all else. However, from a

fleet owner/manager’s perspective, there is

another extremely important factor to con-

sider; tyre costs. If 2008 taught us nothing

else, it certainly taught us that global

economies can hit bad roads and have their

own “blowouts”. While not wanting to sound

like one of the many “doomsday prophets”, a

positive attitude should be taken by ‘fighting back’, and

for fleet controller/manager/owner, tyres are one of the most

manageable ways of fighting back. Tyres constitute one of the

three highest costs in the running of a fleet. While they are far

from overpriced for the technology involved, and the service they

provide, they represent a significant annual outlay for any fleet.

This has in the past brought about the situation where company

buyers have resorted to buying cheap and unsuitable products,

effectively in some cases endangering staff, and certainly taking

an extremely short term view on cost saving.

It is possible to achieve huge savings in tyre costs purely by

educating the company drivers on tyre maintenance and care,

but in most cases, it is necessary to put procedures in

place which must include inspections and report

backs. This also assists in creating histories

about which tyres have worked well in the

fleet, and have been most cost efficient

on which vehicles. This is the first step to

being in control of a fleet’s tyres, and there-

fore also the tyre costs. And safety will be

significantly improved as well, again improving

overall cost as well.

In future issues, we will provide more cost cutting hints in fleet

tyre use. We look forward to talking to you in the next issue.

www.bridgestone.co.za

F e b r u a r y 2 0 0 9

Page 52: Automotive Business Review - February 2009

T o p c l a s s e d i t o r i a l

F e b r u a r y 2 0 0 952

Top Class Topics

THE FTE DICTIONARY OF EXPERTS’ TRICKS

Top Class Automotive, situat-

ed at 5 Skietlood Street, Isando

Ext.3, Kempton Park, is a

stone’s throw away from the

Rhodesfield train station, and

even closer to where the

Gautrain starts to wend its

final few hundred metres into

its docking position at OR

Tambo International Airport,

having completed its journey

from Sandton Station in well

under 20 minutes. The passen-

gers disembarking from the

Gautrain will be unaware of the vital role that bearings have

played in them getting so speedily and safely to the airport, but

Richard Pinard, the CEO of Top Class Automotive, known as

Mr. Bearing to the aficionados of the automotive aftermarket,

will be watching from his office, fully aware of the importance of

bearings, and happy in the knowledge that in all likelihood those

bearings have been supplied by him. The symbolism of being so

close to the Gautrain will not be lost on Richard, as he knows

that the world runs on bearings, and that a large proportion of

the vehicles on South Africa’s roads are running on bearings sup-

plied by Top Class Automotive, a leading supplier of top quality

automotive brands to the automotive aftermarket. Top Class

brands include Timken (automotive); NOS (nitrous oxide sys-

tems); SNR (automotive, industrial, aerospace bearings); FTE

(hydraulic brake and clutch systems, ABS solutions); Permatex

(adhesive and sealing solutions) and DieselGuard (diesel theft

protection). In this series of articles, Top Class Automotive gives

ABR readers advice and technical tips on the product that it

supplies to the industry. First up is the FTE Dictionary of

Experts’ Tricks:

What do you do when the seals have swollen?The Problem

The seals have swollen due to con-

tamination. The seal ring exceeds

the outer diameter of the piston

causing higher friction and pedal

effort. The functionality is

impaired and the fluid return valve

is not working properly.

Cause

Contamination of brake fluid

systems with mineral oil or other

mediums which cause rubber parts

to swell.

� The fluid filling container has

been cleaned using brake

caliper cleaner or petrol

� The fluid filling container hose

has been sprayed with oil or

lubricant

� The container used for air

bleeding was contaminated

with mineral oil

Solution

The clutch and brake system is

only allowed to be filled with

brake fluid that meets specs for

SAE-J1703 or DOT 3, DOT 4,

DOT 4LV or DOT 5.1.

Contaminated rubber, plastic parts

and hoses must be replaced.

Dentured alcohol must only be

used to clean the metal parts of the

system residue free. Never use

petrol or diesel. Concentric slave

cylinders, plastic cylinders and

master cylinders which cannot be

disassembled must be replaced

completely. If the clutch hydraulic

system is filled or supplied from

the same reservoir as the brake sys-

tem, which is common, then the

entire brake system has to be treat-

ed accordingly.

Page 53: Automotive Business Review - February 2009
Page 54: Automotive Business Review - February 2009

E n v i r o n m e n t a l l y S p e a k i n g

F e b r u a r y 2 0 0 954

Caring for theEnvironmentFirst National Battery’s sign off line is

“Through Caring We Lead”. An easily under-

standable motto, but for those with a fascina-

tion and passion for words, like ABR whose

slogan is “Words in Action”, “through caring

we lead” can take on a new dimension when

considering the environment. First National

Battery cares and FNB recycles lead – get it?

ABR salutes this commitment to the environ-

ment, and in this article we borrow from FNB’s

pamphlet on lead recycling.

Recycling has become an extremely important consider-

ation in modern business not only from the recovery

aspect of valuable materials but also from an ecological

and environmental protection aspect. Trends overseas

are moving towards motor companies developing recyclable

motor vehicles. In Michigan USA a laboratory known as the

Vehicle Recycling Development Centre aims to teach automotive

companies how to better design cars for easier dismantling by

allowing easier access to key parts for future removal. The new

trend is to “design for disassembly”. The goal is to close the pro-

duction loop to conceive, develop and build a product with a

long-term view of how its components can be refurbished and

reused or disposed of safely. This situation gives use to the need

and concept of recycling.

The local battery industry has understood this for many years,

and as such are environmentally responsible, ensuring that so-

called scrap batteries are recycled, and thus displaying a social

investment in the future of sound ecological management. The

procedure is for all scrap batteries to be retrieved on a one on one

basis at the point of sale, and for these scrap batteries to be

returned to First National Battery. The batteries are then recycled

at the First National Battery factory, in their advanced Smelter

Division, whereby the materials are recycled for use in the man-

ufacturing of new batteries. Scrap batteries are processed to the

point where the polypropylene components are returned for

cleaning, granulating and eventual reprocessing. The scrap lead

plates, terminals are stockpiled for refining. All electrolyte, which

by the time the battery is scrapped has a low relative density, is

collected and neutralised before being processed in First National

Battery’s effluent plant. The precipitate is disposed of into a

licensed municipal waste system.

FNB says that some of the major benefits of having their own

smelter include:

• Active contribution to positive ecological benefits

• More control over quality

• Continuity of supply

• Relatively high recovery rate of lead from scrap

• Able to reprocess dross and filtered materials

• Conservation of natural resources

All these factors are well and good but the lead industry more

than any other has been subject to adverse publicity regarding

environmental problems and legislative pressures to solve them.

Anti-pollution controls have been implemented sometimes at

very high cost. Several sets of legislation are in force including the

Atmospheric Pollution Prevention Act, the Occupational Safety

and Health Act and the Water Act. Further, as the manufacture

of batteries involves lead companies such as FNB are required to

be registered in terms of the manufacturing process and have to

hold all the necessary permits. First National Battery’s investment

in a smelter has therefore blended well with their commitment to

the recycling of batteries. This is only a part of their long-term

capital expansion programme which, to date, has seen an

improvement in production control product quality and

increased production capabilities. Further investments are

planned for the next few years which will enable FNB to position

itself to take advantage of the current downturn in the South

African economy.

So there you have it. When it comes to battery recycling, South

Africa takes a back seat to no one. A “pluimpie” to First National

Battery. Al Gore would be proud of you.

Page 55: Automotive Business Review - February 2009
Page 56: Automotive Business Review - February 2009

W i l d e T h i n g s

F e b r u a r y 2 0 0 956

A New Era for Africa?

What are the bigger implications? The world is

abuzz about this mixed race wunderkind, a most

unlikely revolutionary. A genetic coupling of

Africa and America, an environmental product of

Hawaii and Indonesia, a solitary son of a single mother and an

absentee father, nurtured by doting grandparents, has beaten the

odds, turning both nature and nurture on their respective heads.

Intriguing, fascinating, phenomenal are adjectives that do not do

justice to this phenomenon. A true audacity of hope. Many

books, articles, theses, keynote addresses, and much parlour talk

and water cooler banter are to be generated by this one man

band. I am also in the loop, but with a slight difference. My ques-

tion is, WATBI? The answer is mouth watering. From an

American perspective, the implications are enormous. A new era

has begun. Ideology and realpolitik are being swept under the

carpet and the potential is big for dramatic shifts and the parsing

of partisan politics. I do not intend to spend much time on this,

as many commentators are going to feast on this tantalising

morsel, ad nauseam. From a global perspective, the implications

are even bigger. They go from enormous to gezoodlich (I invent-

ed this word because there is nothing in the English language

that comes close to describing what could unfold in the next few

years). Think about it. East vs. West, cold war vs. hot war, devel-

oped world vs. developing world, first world vs. third world,

Middle East politics, the axis of evil, and “bad” states like Cuba,

Iran, China, Russia, North Korea will all be painted in a new

techno colour twilight zone Matisse canvas; not in a weird sense,

but rather in a dramatic shift sort of way. This will also suffice, as

if and when these new scenarios develop and blossom, a

gezoodlich number of commentators will feast on this carcass.

My focus, and what I would like to spend a little time on, is

WATBI for Africa? Suddenly, the big white bogeyman of the west

is half African. Finger pointing will no longer suffice. Uncle Tom

has moved from the outhouse to the White House. Suddenly, the

dictator, the one party man, the liberator, the election rigger, the

youth leader, the slogan spouting nonentity, the rabble rousing

womaniser, the 4x4 revolutionary of the people, will find that he

has feet of clay. This shallow excuse for a leader will have to look

into the mirror, and will see an accusatory reflection. Why can he

not behave like his brother? A brother who preaches true democ-

racy. A brother who preaches fiscal conservatism. A brother who

preaches a “pull yourself up by your bootstraps” and a “can do”

attitude. A brother who cares for his people. A brother who con-

demns pork barrel politics. A brother who eschews blue light cav-

alcades. A brother who is educated, erudite, hard working, the

very antithesis of the standard African leader. A brother who

would be appalled at the antics of the vast majority of African

leaders. Closer to home, I am delighting in the images of what

must be going through the mind of demagogues like Mugabe

and Zuma, as they observe someone who inspires rather than

incites, someone who is suave and elegant rather than unpolished

and crude , and who preaches hope rather than hate. What is this

man doing? How can we measure ourselves against someone who

does not have a whiff of corruption tainting his slender frame,

someone who preaches accountability, and someone who seems

to be quite happy in his monogamous life? What is this man

doing? Does he have no respect for the African culture? Does he

not have a Malaysian bank account? A man who oozes integrity,

humility, style and class. How un African can you get? Even

worse, a man who assembles a world class support team, a man

who picks people cut from a similar cloth, people who will get

things done, people who will not feather their own nests. Why

could he not just pick a few self serving sycophants like Matonga,

Malema, van Schalkwyk, Niehaus, Duarte, et al, who are happy

to ride our gravy stained coattails? Who pushed the shithouse

into the river? Oh why oh why can’t we get Bush back?

Now for my fervent wish. I do have a dream. Africa is ripe and

ready, and panting feverishly for change. My wish is for a new

generation of Obama like African leaders. Change that we can

believe in. We are entitled to have the audacity of hope. Yes, we

can. Yes, the African voter can do it; the African voter can bring

hope. Yes, the African voter can fulfil my dream. Yes, they can. In

the words of Eddie Grant, “Give us hope, Obama, and give us

coping mechanisms, Obama”

by Fingal Wilde

Here is an interesting titbit. My spell check on my steam driven personal comput-

er does not accept the word “Obama”. It suggests that I use “Osama”. Intriguing.

What does this mean? Before the conspiracy brigade gets up a full head of steam,

mimicking my pc, let me head them off at the pass with my take on this word

imbroglio. Firstly, it means that my software is rather dated. When the Microsoft

office suite (2003 version) was unleashed on its monopolistic created servants,

Barack Hussein Obama may have progressed from a twinkle in his father’s Kenyan

eye to something a little more substantial in Michigan, but from a world perspective he was definite-

ly not on anyone’s radar. In 2003, it was that bearded fellow with a fixation on tall buildings, hid-

ing in the hills of Afghanistan, who was dominating the American psyche, and so it was no surprise

that he had made it onto Mr. Gates’ binary inspired bounty. Secondly, and the irony is enormous; a

new man with an unknown but suggestive name has come out of nowhere, and is promising to revolu-

tionise America and the world. Those prescient guys from the Cape of Good Hope got it right in the

mid nineteenth century when they prophesised with great joy, “Daar Kom Die Ali Bama”.

Page 57: Automotive Business Review - February 2009
Page 58: Automotive Business Review - February 2009

F i l t e r f a c t s

F e b r u a r y 2 0 0 958

It’s Not the Aircon!I drive a 2006 sedan that is a very good car. I am extremely happy with

this vehicle, but there is one small matter that is actually a big matter,

and it is driving me crazy, and I have a fight with the dealership every

time I visit for a service. It is the poor performance of the air condition-

er. And yet, there is nothing wrong with the air conditioner! Huh, you

may ask?

The culprit for poor air conditionerperformance is in many cases a dirtyPollen Filter (Cabin Air). Now astandard fitment in most vehicles

above the R150 000 mark, the Pollen Filter isan integral part of the system that cools andcleans the interior of a car, and yet it gets scantattention when a car is serviced. Most vehiclemaintenance plans only allow for the PollenFilter to be replaced every 45 000km (and Idoubt whether even this is happening), where-as in South African conditions, even 15 000km

is too long a period, as the performance of the aircon starts dropping 10000 km after replacement. For the comfort and safety of the driver andpassengers, you should insist that the Pollen Filter is replaced at everyservice interval. I have filched the following piece from the technicalsection of G.U.D.’s webpage (www.gud.co.za), which clearly enunciatesthe reasons for Pollen Filters and the technical aspects:

“Increasing car populations and congested roads guarantee we spend

longer in our vehicles, in areas with high exhaust gas outputs.

Exhaust gases contain vast quantities of "soot" and other gases,

including some toxic nitrogen oxides, generally referred to as NOx.

Everyone is aware of the decreasing air quality brought about by

industrial pollution, pollen and much other atmospheric dust. All of

these are visibly noticeable and end up as a dirty layer on the exteri-

or of the vehicle. More importantly, it is also on the interior of the

vehicle, unless a Pollen Filter is fitted. Pollen Filters are becoming

ever more popular due to the above. They filter all incoming air and

the air being circulated by the air-conditioning system. Most of them

are oblong and look similar to a Pocket or Panel Air engine filter and

typically use pleated media for the extra surface area it gives.

The media is often white and is generally fully synthetic. There are

two main filter types. The one filters only particles such as pollen,

dust and soot; the other more costly option actually absorbs some of

the noxious gases and odours through the addition of an activated

carbon layer. The latter tends to be heavier and the black activated

carbon is visible. G.U.D. has a licence agreement with Filterwerk

Mann+Hummel of Germany, who are one of the largest filter com-

panies in the world. They are internationally recognised for their

quality and pioneering R&D work into new automotive filtration,

especially Cabin Air Filters. Good Pollen Filters start removing par-

ticles down to 0,1 micron and reach close to 100% efficiency as par-

ticles get to 3 micron and above in diameter. As can be seen from the

chart, an average human hair is 50 micron in diameter or seven times

larger than the absolute efficiency of most Pollen Filters. One draw-

back with these filters is associated with their relatively short life in

areas of high dust concentration. Engine air filters begin to restrict

airflow into an engine at about 500mm of water (50 mbar). The

poor power of the fans ventilating the interior of the vehicle means

that Pollen Filters begin to be restrictive at ± 40mm of water (4

mbar). Field tests suggest filters at that point have between 10 and

30 grams of contamination on them. Indications that the filter is

beginning to block is clearly evident by:-1. The air-conditioner appears to be becoming less effective.2. One requires a higher fan speed to feel air flow movement fromthe vents.3. The interior of the windows can "fog up" easier.4. Odour detection (if you have used an activated carbon filter). Thisis either due to no more life or a build-up of odour producing bac-teria on the filter. If any of the above happens, it means it is time tochange the Pollen Filter element and so retain the high air quality in

the vehicle. Should you choose a 'particle'filter only, or the more expensive one withthe added activated carbon layer? The lat-ter is definitely appropriate for dense traf-fic conditions and perhaps if your partneris a smoker and you are not! Fitment is notthat difficult once you have actually locat-ed the darn thing! Pollen Filters are veryoften "hidden" under the dashboard.Once you have been shown and have doneit once, it becomes fairly easy and tools areoften not required. All G.U.D. PollenFilters come with an insert detailing thelocation of the Pollen Filter in the differ-ent vehicle types. The G.U.D. cataloguecontains a growing range of Pollen Filtersunder the designation 'AC'.

To "Great Engine Protection" we can nowadd "Great People Protection"!”

Page 59: Automotive Business Review - February 2009
Page 60: Automotive Business Review - February 2009

I n d u s t r y C o m m e n t

F e b r u a r y 2 0 0 960

The Perfect StormThe Intercontinental Hotel at O.R. Tambo International Hotel was an appropriate venue

for Brand Pretorius’ annual State of the Nation address on 9th July 2009. Appropriate

in that the South African automotive industry’s fate is massively dependant on an inter-

national economic recovery, across all the continents. With American having a fit of

sneezing, the rest of the world is feeling the gusts, and the crux of the matter is that

the quicker America recovers, the quicker everyone else recovers. Hence, an appropriate

theme song for this presentation could be “Give Us Hope Obama”

Brand Pretorius, chairman of McCarthy Limited, whilst

relatively sombre in his assessment of the situation, is

actually on the positive side when predicting a new

vehicle market of 483 000 unit in 2009. To describe a

prediction of a 9,4% drop in sales against 2008, a calamitous year

by most yardsticks, as optimistic may be construed as hyperbol-

ic, but as Brand puts it, he is “almost a lone voice” in his fore-

casts, as the general consensus is more towards a decline of 15%

and more.

What has brought us to this pass? The villain of the peace is

2008, the last six months of which Brand Pretorius describes as

“the perfect storm, both worldwide and local, and as we enter

2009, we are still in the eye of this storm”. An economic and

financial crisis, similar in magnitude to 1929; a crude oil price

peaking at US$147 to the barrel; and unprecedented turmoil and

velocity characterises the international stage in 2008. The local

“lowlights” added to the gloom:

• Rolling electricity blackouts in early 2008

• Xenophobic attacks breaking out in May 2008

• Messy political environment

• Inflation peaking at 13,5%

• Prime lending rate at an eye watering 15%

• Rapid currency depreciation in the last quarter of 2008

• A 26% drop in the JSE All Share Index

• A precipitous drop in business and consumer confidence

• GDP growth at a virtual standstill in the second half of 2008

No wonder the propensity to buy cars has dropped through the

floor! Whilst 2008, in terms of unit sales is still significantly

above the unit sales at the beginning of this century, the problem

lies in the industry’s significant investment for the expected bull

run of sales, in fixed investment, training, etc. This is a big ship

that just cannot be turned around in a couple of months, so the

industry is living in the real world of reducing sales and reducing

margins, and having to urgently reassess their business models,

and taking some hard decisions, which unfortunately includes

retrenchments – just like the previous dips in 84/85 (a Rubicon

induced 24,0%), 75/76 (Soweto riots bringing down sales by

19,2%), and 60/61 (Sharpeville creating a sharp drop of 22,9%).

07/08’s 24,3% is a record decline, so the decisions are just a lit-

tle bit harder. As Brand puts it so evocatively, “Every day I have

to deal with the real world consequences, many tragic. McCarthy

is a family, and we strive to protect the livelihoods of our people,

so the decisions we take are not taken lightly, nor without deep

reflection and humility.”

These sombre moments were lightened somewhat by the positive

factors that Brand highlighted and which could pave the way for

a partial recovery during the second half of 2009, and even more

hopefully, for a more sustained recovery in 2010. These positive

factors include:

• The inflation and interest rate cycle has turned, with expec-

tations of 7% and 12,5% respectively by year end

• The reduction in the fuel price, which will boost disposable

income by anything from R3 billion to R4 billion per month

• Salary and wage increases in excess of inflation, specifically in

the public sector

• Significantly higher government expenditure on infrastruc-

tural projects

• Positive influences from the Confederation Cup and the

Lions Tour in 2009

• The World Cup in 2010

• Aggressive marketing by the OEMs

• The recovery of the used vehicle market

• An increase in car rental demand

Negatives still abound, but let us not dwell on these. Rather look

at the key challenges facing the local industry:

• Planning for an uncertain future

• Viability of the parent companies

• A changing regulatory environment

• Protecting export volumes

• New vehicle affordability

• Capacity utilisation

• Demanding labour unions

• Customer expectations

The consequences of these challenges is that the industry is now

in the most competitive environment ever, it faces viability pres-

sure and with business models now under intense scrutiny, con-

solidation and rationalisation cannot be far away.

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Watch This SpaceThe South African automotive aftermarket, despite many

reports to the contrary, is alive and well, and is being driv-

en by an increasing number of niche operators, specialising in

their areas of expertise, and playing an invaluable and inte-

gral part in a supply chain which plays an indispensable role

in South Africa’s economy. One of these forward looking

individuals is Prakash Bhagwan, director of Euroquip, whose

motto in business is “Watch This Space”

Prakash Bhagwan,

director of Euroquip

Euroquip currently specialises in Hella, Valeo and OCAPproduct, playing a significant importing, distributionand wholesaling role for the automotive aftermarket,and even supplying product and expertise to the mili-

tary, in the form of electronics, specialised lights and switches.Prakash is constantly looking for new products to add to his port-folio, and one of his recent successes has been the introduction ofautomotive cable, which is literally flying off his shelves. Situatedat 174 Panorama Road, Rooihuiskraal, Centurion, Euroquip ismaking its mark as a supplier of quality product and quality serv-ice. Sourcing globally, Euroquip guarantees its product quality,with a promise of right product, delivered to the right place, ontime and at the right price. As Prakash puts it, “it’s part ofEuroquip’s culture, nothing more, nothing less.” OCAP, a grow-ing company on the world stage, and Hella and Valeo, two glob-al giants who need no introduction, could not have chosen amore passionate partner, as Euroquip illuminates the SouthAfrican automotive scene with its commitment to its customers,and by default this enthusiasm translates into higher sales for themanufacturers.

An example of the innovative product sourced by Euroquip is therange of Valeo Silencio X·TRM Aftermarket wiper blades. Withflatblades the new standard at OE, Valeo have introduced a solu-tion for popular vehicles fitted with conventional wiper blades.Silencio X·TRM is a new generation of more efficient, highlyreliable wipers that offer unsurpassed aerodynamic and acousticproperties. The absence of a metal superstructure avoids freeze,reduces potential noise and vibrations, gliding over the wind-shield so as not to generate the turbulence found in standardwiper blades. In addition, the industrial technology used in themanufacture of Valeo’s Silencio X·TRM Flatblades recognisesenvironmental protection guidelines – the main materials in thewiper blades can be recycled: plastic, stainless steel and rubber;

and the Flatblades vertebrae are not painted and do not undergoany chemical surface treatment. Silencio X.TRM offers thefollowing technical features:

• High wipe quality through constant pressure along the blade.

• Anti-lift spoiler system integrated into the rubber profile.

• Innovative design style and differentiation in line withvehicle aesthetics.

• No metal super-structure.

• Reduced number of components: around 9 reusable compo-nents compared to 24 for a traditional wiper blade.

Silencio X.TRM offers the following benefits:• High speed performance >200 km/h.

• Reduced aerodynamic noise -3db compared to a standardblade (at 150 km/h).

• Weight reduction.

• Improved winter resistance.

• Minimal obstruction of the driver's field of vision.

• Simple and fast to change with a single lock/unlock click.

In addition, each Silencio X.TRM Aftermarket FlatBlade isequipped with a wear indicator allowing easy identification ofwhen the blade needs replacing. The Silencio X.TRMAftermarket range is available to upgrade conventional wiperblades on a number of popular vehicle applications including theFord Focus, Audi A4, Peugeot 307, Opel Astra Mk 4, VW GolfMk 3 & 4, and VW Polo Mk 4.

For more information on Euroquip, visit www.euroquip-sa.co.zaand stand a chance to win a Valeo Automatic Lighting system,valued at R1 000.00.

Loctite® and Porsche Motorsport: Winning together

As high-tech and innovative brands, both Loctite® and Porsche enjoy a fine reputation and are synonymous with reliabili-ty and high achievement. Together, they have set themselves the goal of expanding the application of cutting-edge technol-ogy in auto racing, developing innovative and sustainable solutions. The Loctite® brand will be present at each PorscheSupercup race as an Official Partner during the 2009 season, both in and out of the limelight. The Loctite® logo will be dis-played on all vehicles from the first race in Bahrain through to the closing race in Monza. Loctite® adhesive and sealantproducts and solutions are put to use in production and servicing in the run-up to the races and play an extremely impor-tant part. At the end of the day, success depends not only on driving skills and superlative teamwork, but also on technol-ogy. The Porsche Mobil 1 Supercup really puts drivers and vehicles through their paces. High-quality products fromLoctite® have to show they can deal with the toughest of challenges, e.g. Threadlockers, especially the new and upgradedanaerobic products Loctite® 278, Loctite® 243 and Loctite® 270. At the same time, the high-tech Loctite® Gasketing andSealing products with their excellent oil and temperature resistance also contribute to the performance of the Porsche 911GT3. With its 420 hp and a top speed of 310 km/h, this race car is a real power pack.

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Roger McCleery spoke to Mannyabout his successful career in themotor industry over the last36 years.BORN WHERE? Johannesburg

WENT TO SCHOOL? Sir JohnAdamson in the South

SPORTS AT SCHOOL? Rugby

WHAT SPORTS DO YOU FOLLOWTODAY?

Rugby and cricket

OTHER SPORTING ACTIVITIES? Like to walk a lot.

WHAT CAREER WERE YOU WANTING TO FOLLOW ATSCHOOL? Had no idea. With a strict Portuguese family upbring-ing, my parents wanted me to be a banker at the Bank of Lisbon ora priest.

WHAT CAREER DID YOU FOLLOW?

The motor industry - by total chance. After finishing my NationalService in 1972 I was at a loose end and I met somebody who said“If you are not doing anything, why don’t you come and sell cars forus at a dealer called Imperial in Rosettenville?” So I did.

WHAT WAS THE FIRST CAR YOU OWNED?

I never owned a car in my life, but have driven most of them.

WHAT CAR DO YOU DRIVE NOW? Daihatsu Materia andsometimes a Renault Val Satis.

WHAT CAR WOULD YOU LIKE TO OWN? I love them all.

AFTER ROSETTENVILLE - WHAT?

After six years, Wills Motors Toyota offered me a partnership in1978. Percy Abelkop (King Percy of Imperial) said “Stay where youare until I buy out Wills Motors.” Which he did and offered me a10% stake which I accepted

DID YOU EVER OPERATE OUTSIDE THE COUNTRY?

Just after helping to establish Imperial Car Rental in 1980 and beforeImperial listed in 1987 on the Johannesburg Stock Exchange, I wentto Australia and started working for Automotive Holdings in Perth asa Used Car Manager. Within a year I had bought 25% of the TotalAuto, which was a multi-franchise business with Daihatsu, Nissan,Subaru and used cars. Then in 1992 was offered a stake in theHolding Company which I accepted.

WHAT BROUGHT YOU BACK TO SOUTH AFRICA IN 1994?

My mentor and Chairman of Imperial, the late Bill Lynch, who wasone of the great go-ahead motor men in South African history,offered me an opportunity to come back to South Africa to handleNissan franchise’s in Johannesburg. Plus started Associated MotorHoldings to import vehicles into South African as I had experiencedthe Button Plan Rollout in Australia. At that time we had similar tar-iff barriers. With the advent of democracy imports took off becauseSouth Africa became part of the global economy with investmentsflowing back to South Africa and overseas manufacturers looking to

expand their market with the relaxation of import duties. Nissandidn’t work out under John Newbury, who had listed Nissan on theJohannesburg Stock Exchange.

WHAT CAR DID YOU IMPORT FIRST?

Renault, which we built up into a formidable dealer organisation thatjust kept growing.

THEN? Daihatsu – I have always liked Daihatsu. Kia – aligned withRay Levin Hyundai – bought them out when they were in deep trou-ble after Billy Rautenbach had departed. Now an established force inthe South African motor industry. Citroen – came next to fill a spe-cial niche in the market place. SsangYong – bailed them out whenthey hit a wall. Kawasaki Motor Cycles – needed a lifestyle productand one where people needed cheap easy-to-get-to-work transport oncongested roads. TATA – in 2004 formed a partnership with TATAand set up a dealer organisation which are doing well.

All these divisions are separate entities and have their own CEO’swho are accountable for the day to day operations and their success-es in all aspects. We at AMH provide the synergies and the capital.

IS THIS WHERE YOU STOP?

No – we started a finance services company and also set up 6 Forddealerships in Sydney. Plus looking at how to grow Financial ServicesDivision and assessing other opportunities which are motor related.

MARRIED?

Married his childhood sweetheart, Scharmain, and has two success-ful kids – a son and a daughter. (Scharmain says the moment shesaw Manny, that was the man for her – despite opposition from hisfamily.) Son, Nicholas, has followed his Dad into the motor industryand is learning the business after qualifying as a medical doctor andcompleting an MBA. Daughter, Daniella, is a successful attorney.

WHAT ELSE DO YOU WANT TO ACHIEVE IN LIFE?

Sell more and more cars and make people happy with their purchase.

ARE YOU THINKING OF RETIRING?

Not soon and still a long way from that.

IF YOU DID RETIRE, WHERE WOULD YOU SETTLE?

Madeira.

WHEN WILL THE DOWNTURN OR WORLD DEPRESSIONCHANGE FOR SOUTH AFRICA?

Earliest will be the middle of 2010. In the next 18 months we willgo through three stages. Banks getting their house in order andcollecting what they are owed. Then they will tighten-up on creditlending and become conservative and eventually they will start toloosen-up and accept more credit which is what we want.

Manny de Canha sits on the Board of Imperial MotorHoldings. He is the Chairman of Renault. He sits on anumber of Boards under the Imperial banner.

His PA, Robyn Gilpin, when asked what he was like to workfor said “He is one of the best bosses you could ever have.”

Q & A With Manny de CanhaINTERVIEW WITH MANNY DE CANHA,CEO OF ASSOCIATED MOTOR HOLDINGSIf you drive a fully imported car in this country that wasn’t brought in by a resident motor manufacturer, chances are that 58-year-old Manny de

Canha, CEO of Associated Motor Holdings, (part of the Imperial Group) and one of the most hands-on people in the South African motor industry,

had something to do with bringing it to you.

by Roger McCleery

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

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The Spider and the FlyAutomotive Business Review identified Webhouse Group as their preferred Internet

consultant, because the Online Solutions team are not just thinkers, but are most

importantly listeners and solution providers.

Being an Internet Development House, they assist

clients in developing, and subsequently managing their

Internet Strategies. These strategies encompass con-

sumer facing websites, Internet-based generic business

tools, and Internet-based bespoke business management systems.

The Webhouse Group Mission is to generate valuable business

returns from every client's website investment.

The Webhouse Group is passionate about websites and are con-

stantly looking for better ways to represent their clients on

the internet. Service is provided through an experienced & com-

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& e-commerce solutions.

The Webhouse Group Value offering is Passionate,Innovative, Online.

The Webhouse team makes it their priority to familiarise them-

selves with their clients, understanding their business needs and

where they can, help clients optimise their business processes and

productivity. Webhouse Group has developed numerous

Internet-based systems, including a world-leading Website

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Websites are a cost-effective way to reach potential clients and

can contribute to significant growth within a business. The

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ing clients with customised online marketing solutions – more

than basic websites

The Webhouse Group originated in Gateway, South Africa and

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One of the latest releases by the

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assist with marketing and

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er application will re-invent the online motor market.

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• Unique approach to supporting clients' Internet Strategies

• Our core objective is making your website work for you

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The Webhouse Group client portfolio includes, Retail Shops,

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The Mt Edgecombe County Club Estate 2, in Kwa Zulu Natal,

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This platform provides and manages their online visitor SMS

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Webhouse Sales, Development and Support teams work

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If you would like to be contacted by Webhouse, to provideyour Business with an Online or Marketing Solution, takeover an existing Solution or just for a chat, please callNeil Hartley on 082 829 8277, via reception on(+27) 31 580 23 00, simply send him an SMS directlyoff their website www.webhousegroup.com

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Partinform Comes of Age

A Square Peg in a Round Hole

Partinform came of age in November 2008 with the announcement of the formation of

the Automotive Aftermarket Manufacturers Association (AAMA). 23 years after the

Partinform Component Manufacturers Association was conceived in 1986, and in the

words of Paul Williams, who served as chairman of the association from 1994 to

1998, it “was a creation of good comradeship and the mutual sharing of costs for

trade evenings”, Partinform has evolved into something far more significant.

The inaugural AAMA Executive: Standing, left to right:Norman Bull and Murray Long

Sitting, front: Colin Murphy, Partinform chairman andMalcolm Perrie, chairman. AAMA held its first meeting on

21st January 2009.

Malcolm Perrie, the first chairman of AAMA, is a lit-

tle blunter. “We have formalised the old boys’ tea

club known as Partinform into a properly consti-

tuted and registered association to be known as

the Automotive Manufacturers Association or AAMA for short.”

ABR recognises this as a logical move, as this brings South

Africa’s automotive aftermarket industry into line with interna-

tional trends and practices. One just has to look at the AAIW

(Automotive Aftermarket Industry Week) which is held annual-

ly in Las Vegas, where three aftermarket bodies combine to put

on the world’s greatest automotive extravaganza. The AAIA

(Automotive Aftermarket Industry Association) and AASA

(Automotive Aftermarket Suppliers Association) join forces to

run the AAPEX show (Automotive Aftermarket Products Expo)

at the Sands Convention Centre, whilst down the road at the Las

Vegas Convention Centre, SEMA (Specialty Equipment

Manufacturers Association) unveils the stunning SEMA Show,

encompassing ten specialised councils. All under the banner of

the all encompassing term “aftermarket” which is both self

explanatory and enigmatic at the same time. Who knows, South

Africa may in the not too distant future emulate these shows,

now that Partinform has come of age?

In an exclusive interview with Malcolm Perrie, Managing

Director of Federal-Mogul Aftermarket, and the first chair-

man of AAMA, ABR delved a little deeper into the reasons

for the formalisation of Partinform into a far more power-

ful institution. Malcolm says that whilst all the founding mem-

bers of AAMA are also members of NAACAM or the RMI, or

both, in many cases it was a situation of being a square peg in a

round hole. “NAACAM is primarily an OEM focused body,

whereas the RMI is predominantly a retailed focused organisa-

tion. Both do a good job in their respective areas of expertise and

focus, but in many cases the specific interests of aftermarket

manufacturers are nor being catered for.” To this end, he adds,

the AAMA intends to complement the offerings of these bodies,

and to service the unique interests of the aftermarket manufac-

turers in four specific areas:

1. Strategic Input: A focus on government lobbying and the

presenting of a united front, for the good of the local after-

market industry, and for the good of the country.

2. Training Support: The establishment of a training academy

to serve the interests of the local aftermarket industry, spread-

ing the training net as wide as possible, whilst pooling

resources to create training teams that deliver cost effectively.

3. Partinform: The venerable Partinform format continues,

with a turbo boost (see following story), promoting premium

brands and passing on the vital message of quality and safety

to all corners of the country via the tried and tested mini-

trade show formula – getting face to face with the end users

and retail shop employees in the rural areas and emerging

markets.

4. Supply Chain Sustainability: An enormous opportunity

exists in the area of supply chain management and improve-

ment, via a combined approach to areas of common interest.

There is tremendous wastage in supply chain costs in many

areas: inward and outward logistics; customs management,

and the need to lobby strongly on commodity prices.

At this formative stage, AAMA consists of thirteen founding

members, all who have been accepted on their credentials as

being existing Partinform members. For future members, the

process shall be more structured, with an application form to be

completed by aspiring members. The entry requirements stipu-

late that members must be local manufacturers whose route to

market is through the traditional channels, and not via vertically

integrated distribution. Agents need not apply, as equity in the

brand will be a prerequisite.

Much, much more in future issues of ABR, the magazine that

was coincidentally also created in 2008 specifically for the auto-

motive aftermarket industry.

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P a r t i n f o r m

69

Partinform Gets a Turbo BoostWhat are the implications for Partinform now that AAMA has gone the formal route?

Very little, according to Colin Murphy, chairman of Partinform. If anything, the impli-

cations are positive. “Imported product can be found on every shelf of every parts

reseller in South Africa. This is neither good nor bad. What is bad is when this import-

ed product is of doubtful origin, and of doubtful quality. The job of Partinform has

been from day one to inform and educate the parts community about the professional

benefits of using branded parts that guarantee quality and safety, and local manufactur-

ers that provide the necessary technical support. All the aspects of vehicle roadworthi-

ness, vehicle longevity, road safety, and personal safety come into play, and informing

the resellers and fitters of these important facts remains the key focus of Partinform.

AAMA simply reinforces these aims, and hopefully will attract like minded manufactur-

ers to our travelling mini-shows, thus broadening our impact and of course, assisting

with the sharing of costs.” The new challenge, according to Colin, is to get this message

across to the rapidly growing emerging market. This requires taking the message to

remote and previously inaccessible locations. In 2008, Partinform visited Mdantsane

and Soweto, and both shows were extremely successful. More of the same in 2009 is

promised by Colin. The real challenge, in this modern age of entertainment at the push

of a button, is to get the parts community to attend Partinform. And Colin believes that

he has found the silver bullet. The silver bullet comes in Ferrari red and Ferrari yellow.

The established quiz show format will, apart from the generous prizes to be won by the

contestants, now come with a brilliant first prize of having the opportunity to drive a

Ferrari 360 Challenge Car, and the cherry on the top will be a balls to the wall “hot lap”

experience with an experienced racing driver (lunch will be served after this experience

to ensure the integrity of the interior of the Ferraris). This event is run by Forza racing,

and ABR will give further info during the course of the year.

Pretoria Thursday 26 Feb

Cape Twon Thursday 26 March

Springs/Brakpan Tuesday 12 May

Bloemfontein Wednesday 17 June

Durban Tuesday 21 July

Klerksdorp Tuesday 8 September

Port Elisabeth Tuesday 13 October

White River Tuesday 10 November

Partinformschedule 2009

F e b r u a r y 2 0 0 9

The Objectives of theAutomotive AftermarketManufacturers Ass are:

(i) promote, protect and encourage the

general and collective interests and

image of the members engaged main-

ly or substantially as brand owners in

the manufacturing sector supplying

the Automotive Aftermarket;

(ii) protect the brand value of members

operating within the South African

Automotive Industry aftermarket;

(iii) provide a forum for members to meet

with a view to promoting and protect-

ing the interests of the members of the

association;

(iv) promote employee training and train-

ing accreditation within the automo-

tive aftermarket and to facilitate the

establishment and administration of a

joint training facility in the automo-

bile aftermarket parts industry;

(v) promote and protect the interests of

members, customers and the public

by ensuring that proper standards of

quality, service and ethical trading

conditions are maintained by its

members;

(vi) jointly promote members’ brands and

products in the Southern African

market by facilitating trade shows and

similar marketing activities;

(vii) engage the relevant Industry Bodies in

trade, labour, legislative and other

matters affecting members and, as

desirable, to promote, support or

oppose any proposed legislative or

other measures affecting thee interests

of members collectively;

(viii) promote and disseminate to mem-

bers and the authorities any informa-

tion of value and use to them;

(xi) print, publish or advertise in any news

media, periodical, book or leaflet that

the Association may think desirable;

(xii) do all such other things as are inci-

dental or conducive to the attain-

ment of the objects above specified.

NB: keep this articlehandy. In the March2009 issue of ABR,in conjnction withPartinform, we shallbe launching an

exciting competitionwhereby four of ourreaders can win aride in the Ferarri360 Challenge car

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Frequently Asked Questions onMaking CEF Brake Hoses

In a nutshell – How does it work?You purchase a CEF Brake Hose crimper with an opening stock package. This allows

you to assemble brake hoses quickly and easily while your customer waits.

Who is this package aimed at?This assembly system is for trade customers owning: Spares outlets, Brake & Clutch specialist companies, larger workshops. You must

be able to sell 15 brake hoses per month.

Do I need experience in making brake hoses?You do not need to have made hoses in the past in order to learn how to use this assembly system. The CEF crimper package is very

user friendly and comes with a comprehensive training manual. Technical assistance is also available on the phone if you require and

representatives from BHCS cover most areas a number of times annually.

How do I know what to stock?We take the guess work out of the inventory. We supply you with an accurate opening stock package which will allow you to service

your customers with 90% of their requirements. Your stock also comes in storage boxes with part numbers so you don't have any

further hassle storing the end fittings.

How long does it take to assemble a CEF Brake Hose?Assembling the actual brake hose using the crimper takes 3 minutes. You need to identify the end fittings but this is easy with our bin

storage system. Total time is 5 to max 10 minutes.

Does the hose you manufacture conform to Safety Standards?Yes, the CEF Brake Hoses that you manufacture meet the SABS Specification SABS3996 which is based on the international

specification ISO3996. You will also conform to SAEJ1401.

Who supports the product in Southern Africa?The owners of Brake Hose & Component Supplies (Pty) Ltd - BHCS, have been supplying CEF Brake Hoses into the market for the

last 15 years. The company is focused on brake hoses and backs you up with a large stock holding from their warehouse. Technical and

sales support is vital and is high on the priority list.

Why should you assemblebrake hoses on site?• Increase your one stop shop reputation.

• Attract new customers (increasing sales

on other products).

• New income stream from your existing

customers.

• Gain a competitive advantage on local

competitors.

• Strengthen customer retention.

• Good return on investment.

• Sustainable repeat business.

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It’s More Than Just BusinessABR has twice in its short existence, in its corporate conscience section, reported on

Sparepro’s benevolent efforts and its philosophy of “We are here to serve”, applica-

ble to both its business activities and corporate social responsibilities. Intrigued,

ABR visited Sparepro once again in December 2008 to dig deeper into this refreshing

approach to doing business. We spoke to Patrick Latouche, General Manager.

Patrick was born in

Mauritius, but considers

himself South African,

having spent his formative

academic training in this

country, acquiring his

B.Comm at Wits University and his

MBA at Milpark Business School.

Patrick joined Sparepro some nine

months ago, at the behest of owner Price

Govender, who was looking for someone

to reinvent and reignite Sparepro, and to

give it a new start and to infuse it with

fresh blood. Sparepro had some six years

ago shaken the automotive parts market

to the core with some revolutionary con-

cepts, but had in many ways become a

victim of its own success, as its frenetic

beginnings had hidden fundamental

flaws and a few missteps. Price had

realised that it was time to take stock,

and to build on this successful but unfo-

cused start. Patrick was indeed the man

for the job, coming with tools and

accomplishments and the credibility

gained from stints in Australia and

France, where he successfully reposi-

tioned companies and improved their

performance, in both the mining and

automotive fields. Despite these achieve-

ments, Patrick remains a humble man,

with a life philosophy to “deliver on what

you commit to, and always to leave good

footprints”.

Whilst focusing on the management dis-

ciplines that are necessary in a business,

Patrick has also spent a lot of time put-

ting soul and spirit into the company.

This has in itself created a new energy

and a new focus, with Sparepro striving

to allow each and every employee to

become the best that they can be, and to

inculcate a “Spirit of Team”. Patrick

believes that this is the magical elixir that

sets great companies apart from merely

good companies – individual excellence

interwoven into teamwork. Get this

right, and everything magically falls into

place, with the customer being the

biggest beneficiary. This new wave think-

ing, combined with classical manage-

ment theory, is reaping benefits. No

longer are the sales team mere order tak-

ers. They have taken over their space, and

are proactively managing the sales

process, and taking the time to under-

stand each customer, and practicing rela-

tionship management. Similarly, the

logistics functions have been tightened

and streamlined, providing improved

safety and security levels, and together

with the outsourcing of inward transport

and outbound deliveries, this has trans-

lated into vastly improved service levels.

Administration, procurement, HR man-

agement, and all the other areas of busi-

ness have received management focus

and key area examination, and the trans-

formation is well under way. And Patrick

is no Pollyanna; everything is measured

and monitored. Targets are set, variances

are addressed, and group and individual

incentives based on performance, atti-

tude and attendance have created a clam-

ouring from newly motivated staff to be

“star of the month”, and an uplifting

spirit that has transformed the company.

Next month, ABR shall delve a little

deeper into this wonderful example of

management by motivation.

Patrick Latouche stands in

front of the newly minted

“Sparepro Warranty of

Excellence” commitment. He

subscribes to Motilal Nehru’s

credo – “There are two types of

people: those who work and

those who take the credit. Try

to be in the first group; there is

too much competition in the

second group”

[[

Vision and a warranty of excellence arethe cornerstones of Patrick’s businessphilosophies.

Page 75: Automotive Business Review - February 2009

What is behind this fervent and even evangelistic approach? The answer, according to

Romano, lies in the DNA of Bridgestone. This DNA was forged when Shojiro

Ishibashi, the founder of Bridgestone Corporation, as a young adult observed that

most of the injuries in the Japanese mining and agricultural industries were foot

injuries, specifically injuries to the soles of the feet. This led him to develop protective rubber shoes,

with the emphasis on the underside protection. This innovation significantly reduced foot injuries in

these industries, and this combined fascination with rubber and safety ultimately evolved into a con-

scientious path and a clear vision – to serve society by providing people with quality product. Shojiro

Ishibashi was ambitious enough to dream that his quality products would earn the satisfaction of cus-

tomers, but he never dreamed that his company would become the global enterprise it has. Literally

translated, Ishibashi means “stone bridge”, so Bridgestone was named after its founder. The rest, as

they say in the classics, is tyre history, with Bridgestone Corporation, from its humanitarian beginnings

in 1931, eventually purchasing the iconic Firestone Tire and Rubber Company in 1988, and the merg-

ing of the stones being merely coincidental, which is a pity, because it would have made a great story.

Bridgestone is currently rated first in the global tyre market, with Michelin second, Goodyear third

and Continental fourth. The Bridgestone Group now has 141 production facilities worldwide, spread

around 24 countries. Not bad for someone who cared for people’s feet! As a matter of interest, Shojiro

Ishibashi is so revered, that even though he is long deceased, the number one position at Bridgestone Corporation is reserved for him, as a

ceremonial reminder of the values that he preached, and as a reminder to his successors of the obligation to continue to tread his path and to

honour his philosophies. Not surprisingly, road safety and tyre safety receive enormous emphasis at Bridgestone, both globally and locally. The

highest quality implies the highest levels of safety and the highest levels of integrity, and this is what ABR shall look at in the next issue of

“Treading a Conscientious Path”.

75

Romano Daniels, Public Relations and Marketing General man-

ager of Bridgestone South Africa (Pty) Ltd, is a difficult man

to satisfy. Even though Bridgestone has been rated number one

in the industry in raising awareness about tyre safety by

Monitoring South Africa, he says that the job is still far from

done. Whilst humbled by the response to Bridgestone’s various

road safety initiatives, Romano has a “serious and genuine

belief that so much more has to be done”, and he commits him-

self and his company to going far further in these endeavours.

Our Mission: Serving society with superior qualityWe inherit the words and the spirit of our mission from our

founder. His emphasis on superior quality means striving for excel-

lence in technology, in products and service and in all our activities.

The quest for excellence is a quest for every individual at every

Bridgestone Company. So we encourage each other in the spirit of

mutual respect and help one another make the most of our potential.

Our commitment to quality is a worldwide commitment. We share

the values of the community, including the universal desire for a

sound environment and we work conscientiously to improve the

quality of life for people everywhere.

Our PledgeTo the community: Bring added benefit to the community

through support for cultural activities and other public interest

undertakings. Be proactive in working to protect and improve the

global environment.

To customers: Contribute to continuing advances in the funda-

mentals of safety and in other basic elements of the quality of life.

Convey our passion to customers through innovative and exciting

new kinds of value that capture the imagination.

To shareholders: Maximise shareholder value through continu-

ing growth in sales and earnings over the long term. Fulfil our

accountability to shareholders and distribute earnings to them

through reasonable and stable dividend payments.

To business partners: Concentrate on advancing mutual

interests through close communication in all dealings with

partners. Identify issues of common concern and work together on

improvements to resolve those issues.

To employees: Honour individuality and provide a safe and

stimulating workplace environment. Provide opportunities fairly to

all employees and evaluate their performance on the basis of effort,

as well as results.

F e b r u a r y 2 0 0 9

C o r p o r a t e C o n s c i e n c e

Treading a Conscientious Path

Bridgestone’s DNA

Bridgestone's Winning Spirit - Trust, Pride and Quality

Romano Daniels,

Public Relations and

Marketing General

Manager at Bridgestone

SA, flies the tyre safety

flag at Bridgestone

Page 76: Automotive Business Review - February 2009

f a s t W h e e l s

F e b r u a r y 2 0 0 976

Whither Formula 1?On the upside of Formula 1 Grand Prix Racing in

2008 was some extraordinary racing at high speed

and a finish to the season in Brazil that could not

have been scripted both for excitement or drama.

The best races of the year in my book are those that were run

in damp or wet conditions. Silverstone, Spa, Monza and

Brazil come tomind. Rain always neutralises, No 1 the per-

formance of the cars and No 2 the talents of the drivers,

some of whombelieve it or not love racing in the rain. It also

puts more emphasis than normal on the pit crews who can return the car to

the track in 6 seconds. It brings team strategists looking at weather forecasts

to decide on tyre choices – either full wets, intermediates or dry tyres and

wing settings.

What some people say about the best season Formula 1 racing has

had in its 58 year history is that Lewis Hamilton didn’t win for

McLaren, but Ferrari lost it for Massa thanks to an engine break-

down in Hungary when in the lead and the fuel hose problems the

team had in Singapore. Ferrari had a high-tech complicated light sys-

tem to tell the driver when to depart his pit stop instead of using the

time-honoured paddle system, which they went back to in the

Japanese Grand Prix that followed. People also forget that teams are

under tremendous pressure all year so can make mistakes which they

do. All this adds to the drama of the season. The season finished on

a high with Hamilton becoming World Champion by a solitary

point in the last 300m in the last race, with the Briton being hon-

oured in the Queens Honours List for his achievements.

All this excitement and big spending went on in a world that from

September was showing signs of crashing financially thanks to the

financial cowboys that look after the world’s monies. Even in

September, Max Moseley was warning teams to stop spending so

much and to make racing cheaper. This at a time when the FIA

President was fresh from a sex scandal, which is now forgotten

despite the hand on heart types condemning his conduct in a world

that really doesn’t give a toss about his private life.

They pooh-poohed proposals from Max and Bernie Ecclestone to go

over to one make of engine that had to last four races, Grand Prix

medals like the Olympics, gearboxes that were cheaper than the

$10m and less complicated and cheaper and had to last many more

races almost fell on deaf ears, until the downside of the year.

Honda pulled out of Grand Prix racing and put the team up for sale.

Wow! That left only 9 two-car teams to compete in 2009. A field

under 18 cars according to Formula 1 rules can’t be called a GP.

Quick confirmation was gathered from other teams like Toyota that

they were to continue racing despite the massive downturn in the

vehicle market. To make things worse for the Japanese, Suzuki and

Subaru also pulled out of world rallying. Suddenly there was a crisis.

Moseley’s vision made only a few months ago was right. Costs said

Max must come down from £200m per year to £32m for a GP team

if they want to survive and attract others to the sport.

A Mexican Billionaire was quoted (since denied) as interested in the

800-man staffed Honda team. Rumours also abounded that Dave

Richards, formerly boss of BAR Honda could take over as well. All

will be revealed before the start of the season in Australia, a country

thinking of bailing out of GP racing after 2010 if Bernie Ecclestone’s

demands continue. To add to the woes of GP racing teams are the

staging costs of a GP. This figure is thought to be R600m per race.

Going away from the traditional home of Grand Prix racing in

Europe, the Far East countries are starting to look like non-starters.

Fuji in Japan had lower attendances, as had Shanghai and Malaysia.

Singapore, had the honour of spending huge amounts of dough on

a novel night race, which was a pretty dull procession due to the

nature of the circuit. Even in Europe. France, which started Formula

1 racing more than a hundred years ago, said ‘No Thanks’.

Hockenheim in Germany lost a fortune, Silverstone who hosted the

first Formula 1 Grand Prix race post-war also packed in the crowds

to see Hamilton lost money. They will be dropped from the calendar

in favour of Donnington.

They say Turkey was paid for by Ecclestone. Canada with their full

house boosted by USA crowds has also departed the calendar for the

of non-payment of monies owing.

Now Formula 1 mad Spain with two Grands Prix thanks to the bril-

liance of Alonso, Italy, Belgium, Hungary, Portugal, Monaco and

Brazil seem happy to continue, or at least they haven’t said otherwise.

See what I mean about Europe being the traditional home of GP.

The oil rich Arab countries with a new circuit to open this year are

likely to have fairly empty stadiums due a lack of interest, but are also

happy to continue.

What has happened? Staging costs are high ands ticket prices of

necessity have gone through the roof and are ultra expensive. Also

racing pre-2008 was generally a procession.

Will Formula 1 Grand Prix racing continue? Of course it will.

Things will change. Costs will come down for everyone. Cars will be

more passing friendly although the new wings they have tried look

dreadful. Maybe the Formula 1 circuits will become more spectator

friendly like South African motor sport, dare I say it, which provides

greater competition and entertainment and is spectator-friendly. Try

Zwartkops in particular and you will see what I mean. Most impor-

tant. Notice to the powers-that-be who want Formula 1 racing in

South Africa. Leave it alone and let costs come down until South

African drivers to compete, which should also all happen in all forms

of international competition we have out here. It was like that in the

9-hour and previous Formula 1 races and is still like that at

Zwartkops.

Put your money into developing South African motor sport, which

has provided many world champions on tar and dirt, mostly with lit-

tle financial help from this country. Your returns on investment will

certainly be worthwhile and the country will be behind you.

by Roger McCleery

Page 77: Automotive Business Review - February 2009

A W o r d o n c a r s

77

Mazda’s best kept secretDon’t tell anyone but I’m about to let you

in on one of motorings best kept secrets.

The chances of buying a bad car today are quite remote,

drive any new car today and you will understand what

I mean. Modern technology and research from manu-

facturers makes it hard to get it wrong. Generally prob-

lems occur at dealer level through poor after sales service and shod-

dy repair work. When buying a new car a lot of ones decisions will

be down to how much hype a particular model has been given to

sway the buyer to that brands showroom. Then there are a few cars

that don’t have the hype behind them… and there are some gems

around.

One of those unknown gems is Mazda’s 6. Unless you are a Mazda

fan you may not even know it exists or you may be surprised to

know that they have released a new model range. Current owners

of the previous generation 6 will know this is a great family car, eas-

ily accommodates five and can suck up all their luggage in that cav-

ernous boot as well, they also know how fuel efficient and reliable

the car is. In the new model Mazda have made the 6 even more

spacious and also moved up the bar in quality. The previous model

was a bit Tupperware but now you can notice the improvement

with far better materials and superb fit and finish, and as one

would expect from an executive saloon you get all the mod cons,

quality Bose sound system with built in cd shuttle with aux con-

nection, speedo cruise, electric driver’s seat, on board trip comput-

er and the usual plethora of airbags, because my test model was the

range topping Individual it also came standard with keyless entry

and start stop button as well as a nice sunroof.

Power on the Individual 6 is courtesy of a 2.5 4cylinder 125kw

motor driven through a slick shifting 6 speed manual gearbox,

the engine that is smooth and quite poky delivers more than

enough power to satisfy the target market. For a treat we decid-

ed to take our kids for a day at the beach, so we loaded them with

all there stuff into the car and headed for Sun City, yep that’s my

closest beach. On a mix of both good and bad roads the 6 always

felt solid and secure and surprised me how at how accomplished

it performed the task, I had to remind myself that this was a

Mazda I was driving.

Nowadays with the cost of fuel the way it is, fuel consumption is

always a concern. The 10 days that I had the 6 the average fuel

consumption came out at a very credible 9lt/100 km’s, this is a

real world figure and about what most drivers will get, not those

unrealistic figures that get spewed at us from manufacturers.

That’s not bad for a fairly large 2.5lt sedan driven by someone

who generally drives with a lead foot.

So overall the new Mazda 6 does everything it’s expected to do,

and more. This is one of those “secret” cars that deserves more

recognition than it presently has, maybe its time for Mazda’s

advertising dept to get some “Zoom-Zoom” and let the buying

public know what a gem they have, before the buying public for-

gets it even exists.

F e b r u a r y 2 0 0 9

by Adam Ford

(quickpic)

Page 78: Automotive Business Review - February 2009

T h e L a s t W r i t e s

F e b r u a r y 2 0 0 978

A few more blonde jokesA blonde pushes her BMW into a gas station. She tells the mechanic it died. After

he works on it for a few minutes, it is idling smoothly. She says, 'What's the story?'

He replies, 'Just crap in the carburettor'. She asks, 'How often do I have to do that?'

A police officer stops a blonde for speeding and asks her very nicely if he could see her

licence. She replied in a huff, 'I wish you guys would get your act together. Just yesterday you take away

my license and then today you expect me to show it to you!'

A highway patrolman pulled alongside a speeding car on the freeway. Glancing at the car, he was

astounded to see that the blonde behind the wheel was knitting! Realising that she was oblivious to his

flashing lights and siren, the trooper cranked down his window, turned on his bullhorn and yelled,

'PULL OVER!' 'NO!' the blonde yelled back, 'IT'S A SCARF!'

This is not good for security. Any fraudster can get your ID and Photo anddo all sorts of things with it.To avoid this, you need to go to the website and delete yourpersonal details including your picture.The web to visit is actually on a US site.If you are interested, follow these four simple steps:(i) Go to http://www.license.shorturl.com(ii) Put in your name and surname;Ignore the state and city section -(iii) Press "search". Then, when it comes up,(iv) Press "delete" to remove it.Relieved you did it? Then help others to help themselves in the same way Ijust did to you!

URGENT ! Did you know that your drivers'licence is on the Internet for all to see?

A tribute to our boys who

beat the Aussies in their

own backyard

Come all ye fair young maidens and harken unto me, Never trust

a cricketer, whoever he may be. Randier than a sailor who's been

six months at sea, Never let a cricketer's hand an inch above your

knee. First let's take the paceman, pure speed from first to last!

My darlings do be careful; his balls are hard and fast. Then there's

the medium pacer, his balls swing either way; He's really most

persistent and can keep it up all day! And watch for the off-spin-

ner, girls, another awkward chap. If you leave him half an open-

ing, he will slip one through the gap! Then there's the wily 'slow',

pure cunning is his strength;

He'll tempt you, then he'll trap you with his very subtle length.

So ladies, do be careful, your mothers would agree. Never trust a

cricketer, whoever he may be. And what about the opening bat,

his struggles never cease! He has only one ambition, to spend all

day at the crease. The number three is a dasher, he seldom prods

and pokes. When he goes into action, he has a fine array of

strokes. And do beware the slogger, not content with one or two;

When he arrives at the crease then only six will do. Then there's

the real stonewaller, girls, he knows what he's about; And if you

let him settle in, it's hard to get him out! We come now to the

last man, I hope this will not shock, He doesn't mind if he's last

man in, as long as he gets a knock. So, darlings, do be careful,

and be well warned by me:

Never trust a cricketer, whoever he may be. And watch the wick-

etkeeper, girls, he's full of flair and dash; And if you raise your

heel, he'll whip them off in a flash. If you take the field with the

captain, you had better know the score; Or he'll have you in posi-

tions that you never knew before! The cricket commentator is a

nasty sort of bloke, He watches all the action and describes it

stroke by stroke. Even the kindly umpire, who looks friendly as a

pup; You'll quickly find you've had it, when he puts his finger up!

So, darlings, please remember and repeat it after me: NEVER

TRUST A CRICKETER, WHOEVER HE MAY BE!!!!!

by Baron Claude Borlz

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Page 80: Automotive Business Review - February 2009