automotive business review july 2009

14 From Little Acorns22 On Your Bike, Otto50 Eco-Friendly Vehicles58 Fewer, Bigger, Better65 Logan’s Run72 Cadillac Man

T h e P h o e n i x

J u l y 2 0 0 94

Take any situation at any point in history and take everything at face value, or look at it inblack and white, and the whole thing looks cut and dried. But look at the underlyingstrengths and weaknesses, which cannot be readily seen, apply some shades of grey, and thesituation changes dramatically. History is full of these anomalies, not least the recent IraqiWar. This situation also applies when looking at the future potential of individuals, institu-tions, companies or mergers and acquisitions. If the imponderables are taken into account, thelong term consequences of such decisions could radically alter these decisions. The bestdecision maker is hindsight, which unfortunately comes after the event.

Size, or relative size, tends to skew the analy-sis. For example, if an alien power arrived inour solar system and took a rudimentarylook at our planet, using size as the yardstick,they would quickly come to the conclusionthat the sperm whale is the dominant specieson earth. A more detailed analysis wouldquickly uncover the fact that they are beingharpooned out of existence, or at least theyare always under this existential threat. Acloser look would rapidly reveal that thegroot meneer on the third rock from the sun,by a country mile, is homo sapiens. Evencloser analysis would show that this strangespecies seems hell bent on wiping itself out,by varying depths of hedonism, materialismand selfish behaviour. Apart from this selfdestructive behaviour, what really terrifiesthe human race does relate to size, but notthe big whales, rather the small bugs. And itgoes back a very long time. The history ofmankind has shown decimations on a largescale, and the usual culprits cannot be seen,be it smallpox, bubonic plague, Aids,Spanish Flu, and lately Swine Flu could bethe next pandemic– this is what terrifies us.Yet, from a foreign policy viewpoint or cor-porate policy sense, we seem to have a blindspot, and size does seem to impress us and todull our senses. Who would have predictedin the halcyon post war decades that behe-moths such as General Motors and Chrysler

would declare bankruptcy in the first decadeof the new century, primarily because of theirbloated corporate structures and gung hodeals with the unions? Similarly, H.G. Wellsrelied on our fear of things big and powerfulto scare the bajeezus out of us with his “Warof the Worlds”, only to bring us and theMartians down to earth via the interventionof a small and unknown enemy. And, if thetruth be told, it was not the big muskets thatbrought the New World to its knees, it wasfirewater and smallpox. This has been a longand convoluted introduction to get to thepoint of our cover illustration – David vs.Goliath, and the suggestion that everythingis not always as it seems. Size is relative, andgrowth comes from small beginnings and bigdecisions, and sometimes from unexpectedquarters, this is the message of our cover, andof our cover story. Go to page 14, and makeyour own conclusions and hypotheses, bothin the macro and micro sense. This disserta-tion on size is also relevant to my secondpoint, which is that size or longevity can alsolead to complacency or even a touch of arro-gance. Large or well established companiesshould celebrate their roots, and honourtheir founders. This acknowledgement ofhumble beginnings, and remembrance ofwhat made a company great, is an integralpart of the continued success, or even exis-tence of that company. I make particular

reference to the Boardroom Edition of RMI101 (see details under this editorial), and thereaction to this memorable memento. Theresponse to this endeavour has on the wholebeen enthusiastic, with the majority of thoseapproached realising the significance of theproject, but there are a few companies,thankfully in the minority, with rich andhonourable pedigrees that have decided notto participate, mainly because of the currenteconomic circumstances. This is most unfor-tunate, as their absence would not onlydiminish this publication, it will be a snub tothe founders of the organisation and a disre-gard of the pioneers in forging its growth. Italso reveals a dangerous mindset. Dangerousin that it is a form of self fulfilling prophecy.I appeal to the current custodians of theseorganisations, “don’t laager yourself intooblivion”. Honour your founders, honouryour pioneers, honour their ideals, and hon-our your histories, and look forward to thenext 101 years. Don’t come to regret a shortsighted and short tem decision.

And finally, take a look at the heading forthis editorial – this is indeed WORDS INACTION, saying many things, whilst lettingthe reader see more than one message. This isone of ABR’s ideals, and hopefully some-thing to celebrate in the future.

Trilogy Publishing has been com-missioned by the RMI to producea prestigious edition of the historyof the RMI, and a history of the

companies that contributed to the develop-ment of the South African automotiveindustry, in all its forms, over the past 101years. Scheduled for publication inNovember 2009, the RMI 101 serves theprimary purpose of celebrating the cente-nary of the Retail Motor IndustryOrganisation, whilst also informing theautomotive community of the role theorganisation plays today. The RMI 101issue has another exciting purpose – to pro-vide a forum for the who’s who of the auto-

motive industry to tell their stories, and tocontribute to this rich tapestry of our pio-neering history. The editorial copy shall bewritten by highly qualified and esteemedjournalists assigned the task by TrilogyPublishing, with the welcome participationof the companies involved. The compilationof RMI 101 shall commence in August2009, and is scheduled for completion inOctober 2009, and distribution is plannedfor November 2009, as it will serve as awonderful year end gift. We shall only beallowing 101 companies, basically firstcome first served, so we recommend thatyou indicate as soon as possible whether youwish to be involved in this venture. Trilogy

Publishing and the RMI will truly appreci-ate an enthusiastic response from the indus-try in compiling an accurate and magnifi-cent acknowledgement of the pioneers ofthe automotive industry in our country andsomething worthwhile to serve as a memo-rable memento of our wonderful history.

Please contact Stanton Porter Marketingat 012 654 2745; or Graham Erasmus at083 709 8184 or [email protected] more details on how you can partici-pate at incredibly low rates. Don’t delay;this opportunity only comes once every101 years!

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

Boardroom Edition of RMI 101

C o n t e n t s

88 1010 1212

4 The Phoenix Goliath vs David

8 What’s the Buzz

12 Focus on Forsdicks Forsdicks Approved Repair Centre

14 Cover Story From Little Acorns …..

18 Frankly Speaking Painting Your Wagoner into a Corner

20 MISA Minutes

16 Auto Topical On your Bike, Otto!

24 The Chery Story Keeping the Cost of Motoring Down

26 Health Care Managing Your Health

28 Customer C.A.R.E. Customer Relationship ManagementTrilogy Customer C.A.R.E. Programme

34 Managing the Risks Under Pressure

36 Weighty Issues The Rapidly Disappearing Truck Market

38 Tony’s Take Economic Recovery or Alphabet Soup?

42 AutoZone Update A Comprehensive Service Offering

43 AIDC Automotive Industry Conference 2009

44 Personal profile Q & A with Stanley Anderson

46 Tyre Safety Tyres’ Contribution to Safety in Motoring

6

Publishing Editor

Graham Erasmus

083 709 8184

Commercial Vehicle Editor

Alwyn Viljoen

082 458 9332

Intelli-Driving Editor

Eugene Herbert

082 941 3785

Correspondents

Beeton, Frank

Borlz, Baron Claude

Burford, Adrian

Gamble, Austin

Keeg, Howard

McCleery, Roger

Twine, Tony

Wilde, Fingal

Published by:

Trilogy Publishing

Advertising Sales:

Stanton Porter Marketing

Werner Kolver

Tel: 012 654 2745

Cell: 082 577 8411

e-mail: [email protected]

C o n t e n t s

7

1414 5656 7272

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.

Editorial Office:

81 Alma Road

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Tel 27 11 656 2198

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Website: www.abrbuzz.co.za

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Printing:

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48 Diamond Dialogues The Importance of the Automotive Aftermarket

50 The Tipping Point Eco-Friendly Vehicles

52 Industry Update Life Goes On

54 From the Cockpit Groenewald Shows his Class

56 Innovation See What You Mean

58 Capricorn Insights Fewer, Bigger, Better

60 AIDC Quiz 20 Questions

61 Wilde Things A Call to Alms

62 Robert Bosch 30 years of safe braking with Bosch

64 e-CAR The Deep Roots of the Goldfields

65 Burford on Brands Logan’s Run

66 Partinform Partinform Blooms in Bloemfontein

72 Vehicle Evaluation Cadillac Man

74 Corporate Conscience It’s More than just Business #2

75 Road Safety DWD as bad as DUI

76 Fast Wheels The Brawn Formula One Team Rolls On

77 The Last Writes

W h a t ’ s t h e B u z z ?

J u l y 2 0 0 98

Hyundai and Kia Score at FIFAConfederations Cup 2009On 5 June 2009, Hyundai Motor Company and Kia Motors

Corporation, official Automotive Partners of the FIFA Confederations

Cup 2009™, performed the Official Vehicle Hand Over Ceremony to

FIFA and the 2010 FIFA World Cup Organising Committee South

Africa at the MTN Expo Arena and Conference Centre at Nasrec,

Johannesburg. The Confederations Cup serves as a dress rehearsal for

the 2010 FIFA World Cup South Africa™, and as the official

Automotive Partners Hyundai and Kia are supplying transportation

for the players, officials and VIPs for both events. The handover also

marked the launch of the right hand drive version of the Hyundai

Universe luxury coach in the South African market. Both Hyundai

and Kia see Africa as an important market, and they also see football

as a core element of their marketing strategies and as an efficient way

of communicating with customers by sharing their passion for football

and connecting emotionally with them.

The Subaru Impreza WRX sedan is back

Subaru Southern Africa is going back to its roots, introducing a Subaru Impreza WRX in four-

door guise. The change to a four-door version of the WRX also signals a realignment of the

Impreza range, now rationalised to comprise a 2.0R sedan, WRX sedan and STI hatchback. The

updated Impreza range now comprises the 2.0R sedan 5-speed manual, which is expected to be

launched from R249 000, 2.0R 4-speed automatic from R259 000, the WRX sedan from R349

000 and the STI at R545 000. Pricing includes a three-year, 63 000 km full maintenance plan.

The 2.0R models continue largely unchanged apart from detail exterior changes, and ergonom-

ic improvements to the interior which further enhance its functional and user-friendly nature.

Under the bonnet is the free-revving 110 kW/196 Nm 1 994 cc DOHC Boxer engine, which

uses just 8.9 litres/100 km in mixed driving. The 2009 WRX gets a significantly more power-

ful 2.5-litre DOHC Boxer engine: the kW rating climbs from 169 to 195, while torque increas-

es by 23 Nm. Automotive Business Review will review these vehicles in more detail in next

month’s issue.

Bentley South Africaand Deccan ChargersVIP Cocktail Evening

The IPL Cricket Tournament may be over, but the

buzz continues. The Deccan Chargers IPL Cricket

Team, winners of the tournament, marked the

Bentley South Africa VIP Cocktail Evening hosted

at Bentley Motor’s Johannesburg Flagship, Pearl

Automotive, as thé function of the year. Fittingly,

the Chargers (whose franchise fees cost a whop-

ping US$ 107 Million!!), were guests of honour.

Herschelle Gibbs and Chaminda Vaas werethe night’s Bentley Boys

Made in ThailandExhibition

18 – 20 June 2009

The Made in Thailand Exhibition was

held at the Sandton Convention Centre

from 18 to 20 June 2009, the ninth con-

secutive year that this convention has been

held. A little known fact is that Thailand is

an automotive assembly hub for south

eastern Asia, with assembly plants varying

from BMW to various Chinese manufac-

turers. Of interest to the South African

motorist, is that the Mitsubishi Triton and

the Mazda BT-50 are assembled in

Thailand. Thailand has a distinctive repu-

tation as a quality service provider at com-

petitive prices.

The Bryanston Club has many private meeting rooms – The Phoenix Room was

of particular significance to ABR

TDAFA Awardsrecognises tyre

industry excellence

The Tyre Dealer and Fitment Association,a constituent association of the RetailMotor Industry organisation, held itsInaugural 2009 Industry Awards functionat the Bryanston Country Club recently.This follow up event of the initial conceptlaunch in May 2008 has in 12 monthsgained substantial momentum, with anexcess of 200 guests including VIP’s ofIndustry and Associated Businesses,Government Officials, MEDIA, and vari-ous other Dignitaries. The TDAFA is fastestablishing itself as the relevant bodywith regards to tyre and related issuesdirectly representing some 600 dealersand indirectly a further 1000 dealers. Theprocess administered in arriving at thefinal winners included an IndependentSurvey Company individually phoning allTDAFA members for nominations in thevarious categories. “Our members are theend users and distributors of the productrange, there are no better judges thanthem!” said Vishal Premlall DirectorTDAFA, and Consumer Affairs Managerof the RMI. He went on to say that the2010 Awards Ceremony will include twomore categories i.e. Industry Person of theYear and Tyre Importer of the Year.Premlall said that he was confident theawards would encourage the tyre industryto continuously “elevate standards fromthe top down” thereby adding value toconsumers. “TDAFA’s awards evening isfast becoming the most prestigious eventon the tyre industry’s calendar.” For moreinformation on the TDAFA please con-tact Vishal Premlall at Tel 011 886 6300;e-mail [email protected]; webwww.tdafa.co.za

Acclaimed local comic Dr. RiaadMoosa provided light-hearted punctu-ation to the proceedings, acting asimpromptu Master of Ceremoniesand introducing each of the evening’sspeakers by inducing applause fromthe assembled guests.

Luminaries of

note attended

the function


J u l y 2 0 0 910

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

Forsdicks is a member of theMcCarthy Group, SouthAfrica’s leading motor retailer,and in the words of BrandPretorius, CEO of McCarthy

Limited, “is a valuable member of thegroup, and our BMW approved collisionrepair shops represent a particular centre ofexcellence because of their single mindedfocus on quality, service and customer sat-isfaction”. Forsdicks Approved RepairCentre in Linbro Park, Johannesburg is astate of the art facility, designed afterextensive research and planning, andimplementing some of the best practicesavailable at the time. From the offices tothe workshop, the design and equipmentlayout was done to ensure the most effi-cient output and workflow to the benefitof the customer. Therefore, it is not sur-prising that this facility is approved by allmajor insurance groups and receives muchof its business from referrals from BMWdealers and fleet owners. It is also not sur-prising that for many years ForsdicksApproved Repair Centre has consistentlyscored above 95% in the South AfricanMotor Body Repairs Association (SAM-BRA) assessment.

Advanced painttechnologyBMW is committed to using environmen-tally friendly, technologically advancedprocesses to enhance the quality of paint-work, both in terms of appearance andfunctionality. While traditionally environ-mentally unfriendly organic solvents havebeen the number one ingredient in con-ventional paint recipes, the paint used atForsdicks Approved Centre are water-based which means that four-fifths of thesolvent is replaced with water. This meansthat when the paint dries, the water thatgoes back into the atmosphere contains aminimum amount of solvent emissions.Using the water-based paint provides justthe right conditions for applying the two-component clear paint just before the car ispolished. The clear paint not only resultsin better gloss and brilliance, but because it

causes greater surface hardness, it alsoenhances the car’s resistance to environ-mental factors such as acid rain or birddroppings.

Wide range ofservicesForsdicks Approved Repair Centre notonly offers body and paint repairs, butwork such as wheel alignment, airconrepairs, and windscreen fitting is also donein-house. All equipment conforms toBMW's stringent panel shop requirementsand even the emissions are controlledwithin BMW’s strict specifications toensure a cleaner and healthier environ-ment.

A series of articles onForsdicks Sandton

12

The Naja Electronic Body MeasurementMachine utilises main reference points to

check that the chassis is straight

The BMW DIS Machine reprogrammes the engine management system

Wheel alignment

J u l y 2 0 0 9

Forsdicks ApprovedRepair CentreBrand Pretorius, CEO

of McCarthy Limited

Foc us on Fo rsd i c k s

C o v e r S t o r y

J u l y 2 0 0 914

Percy Abelkop opened his service station after returning

from the North African and Italian campaigns in

World War II. He graduated to selling used cars, and

in 1959 he opened a Pontiac dealership, and in 1963

serendipity played a role when he acquired a Chrysler

dealership, trading at the time as “Barney’s Super Service Station”.

Even though Percy Abelkop could not have envisaged the current

Imperial Group in his wildest dreams, he was prescient enough to

realise that whilst Barney’s would make a great name for a circus,

it would not exactly bring a horde of prospective Chrysler owners

beating a path to his door. The new name he chose for this deal-

ership was Imperial, which was the flagship vehicle of the Chrysler

range. This, from a historical perspective, can be safely taken as

the birth year of Imperial Holdings. Things did not go as smooth-

ly as Percy would have liked, with the nascent company having to

navigate some stormy seas in the late sixties and early seventies,

and he and his recently appointed Group Administrative

Controller, an Irish émigré named Bill Lynch, took the brave deci-

sion to take on the then unfashionable franchise for Toyota vehi-

cles. A long and arduous path followed, as the seventies presented

many challenges, not least being the 1973 oil crisis, the 1976

Soweto riots, and a wildly fluctuating interest rate cycle. Who says

history does not repeat itself?

The rest, as they say in the classics, is history. The Imperial team

started to diversify, with forays into truck hire, leasing, and trans-

port, which was an early indication of what was to come. In 1987

Imperial listed on the Johannesburg Stock Exchange, and a trans-

port giant was born.

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

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

C o v e r S t o r y

J u l y 2 0 0 9

Expansion into financial services in the late 80’s, international

acquisitions in the late 90’s, and the leveraging of mobility expert-

ise into aviation and tourism in the early part of this decade, fol-

lowed. Today, despite a global economic crisis not seen since 1929,

the Imperial Group, through a restructuring and consolidation

process in 2008, is in a sound position to renew its sterling growth

record when the good times return in the not too distant future.

This quote, taken from Imperial’s Annual report 2008, puts it in a

nutshell, “When examining Imperial today, one finds a diversified

industrial services group with three clearly defined clusters –

Logistics; Car Rental and Tourism; and Vehicle Retailing. These

are the areas of Imperial’s focus. However, we should not be meas-

ured only in terms of what we are today, because we are creating

new centres of growth for tomorrow. In keeping with Imperial’s

history of broadening its horizons into new fields of business, we

will continue to pursue opportunities that can be aligned to, and

improve our existing operations. Therefore, we believe our future

holds more value than our present.” Taking a look at Imperial’s

track record, these are not idle words. Consider that in 1987

Imperial’s revenues were R159 million with a pre-tax profit of R8

million, and its market capitalisation was R35 million. In its 2008

Annual Report, Imperial reported revenues of R56 billion and pre-

tax profits of R2,1 billion, and a market capitalisation of R11,2 bil-

lion. This, however, does not tell the full story. To get a better idea

of Imperial’s record and potential, one needs to look at what

Imperial was achieving before its unbundling of its Leasing and

Capital Equipment division, and the closure and sale of other busi-

nesses. In 2007, Imperial’s market capitalisation was R29,7 billion,

its pre-tax profit was R3,6 billion, and when its share price touched

record levels, someone who had invested R6 750 in 1987, could

have sold their shares for R1,75 million. That same amount, if

invested in a fixed deposit at 10% p.a., would have been worth

R45 000. Even Warren Buffet would celebrate with a few cherry

Cokes!

The Imperial Genes are a Good

Fit for Imperial Auto Parts

Imperial Auto Parts (IAP)

has all the hallmarks of an

Imperial operation. Con-

ceived in 2004 and opera-

tional since March 2005,

IAP falls under the Imperial Group’s Vehicle Retailing cluster,

and it as yet hardly rates a mention in the 2008 Annual Results.

The reason for this is that it is defined as “still being in the devel-

opmental phase”, which suits the management team to a tee,

who consider themselves as being in a David versus Goliath sit-

uation; IAP being David, and the broader automotive parts dis-

tribution market in all its manifestations, being Goliath. But

IAP does have the might of the Imperial Group behind them,

and thus they do not even need to unleash their sling. Their

mere presence is enough to make the automotive market sit up

and take notice.

IAP is following the Imperial template to the letter, the essence

of which is encapsulated in six powerful and successful philoso-

phies, honed and perfected over the decades since Imperial’s

inception:

• Grass Roots Initiatives – without exception (but for

Aviation), Imperial’s vast empire has been built up from

ground level. All the divisions have grown from small start-

ups. Logistics, Leasing and Fleet Management (since hived

off ), Car Rental and Tourism, Distributorships, Motor

Dealerships, Insurance and Banking, all did the acorn to oak

replication.

• Prove a Theme – Imperial first “proves a theme”. Once

proved, it pours resources and energy into its growth and

development. The motivation is that growth comes from

innovation and finding a better mousetrap, and doing

things differently, and well. Taking this further, if you can

do it well in one location, you can do it well in other loca-

tions, and from this you get geographical growth. Apply this

in equal measure to existing businesses and acquisitions, and

from these small bases, you get significant organic growth.

• Decentralisation and Empowerment of Executives –

Imperial operates on an intoxicating mix of entrepreneurial

flair, conservative financial constraints, strong marketing

and solid operational structures. This is defined as a

push/pull scenario which creates dynamic harmony, which

when implemented with the correct nuances, results in the

best wisdom prevailing.

• Business Building – Imperial is in the business of building

businesses. This requires time and patience, and needs a

foundation on which the business can expand and prosper.

Appropriate support and the correct disciplines are the

nutrients that sustain these businesses.

• Capital is a Valuable Resource – Imperial’s impressive

pedigree is in no small measure attributable to the belief that

capital is a valuable resource. This universal truth, which is

often neglected and even spurned by new age entrepreneurs,

is the rock upon which this mighty oak is built. Corollaries

that flow from this wisdom are the appropriate return on

capital and the dictums that profits shall be re-invested and

that any venture must become self sustaining in a required

period of time.

• Mobility – Imperial sticks to the knitting! And the knitting

is “mobility”. Despite the recent restructuring, Imperial

remains, quoting Hubert Brody, Chief Executive Officer, “a

group with substantial scale in long-term, sustainable sectors

of the South African economy, weighted towards the trans-

port needs of individuals and businesses”. In other words, if

it moves and makes sense, Imperial will get involved.

15

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

C o v e r S t o r y

J u l y 2 0 0 916

The fulcrum for Imperial’s foray into parts distribution was

MIKAR, founded in 1999 by a group of eight enterpris-

ing and prominent spares outlets based in Pretoria,

Kempton Park and Johannesburg, who had banded together to

form a members co-operative focusing on respected brand names

and guaranteed local and imported product, and the identifica-

tion of four essential elements of success:

• Customer Support

• Unity of Members

• Support of Suppliers

• Effective Marketing

These elements would bring the benefits of collective buying

power, a recognisable enhanced image, access to quality branded

product, combined advertising and promotional input, and mem-

bers’ participation in decisions. MIKAR was a product of the

times, and when Chairman Fred Nasser, who together with Derek

Blanchard was the driving force behind this creative adventure,

was approached by Imperial Auto Parts in 2004, he recognised the

synergies, and a handshake of enormous import took place at the

offices of IAP in Bedfordview on the 28th October 2004. Less

than five years later, MIKAR plays an important role in the strate-

gies of IAP, which itself has gone through a learning curve, and is

now positioned to make a significant impact in the South African

Automotive Aftermarket.

In recognition of the pioneering partnership between Imperial AutoParts and MIKAR, Fred Nasser received the Chairman’s Award atthe 2009 Mikar Conference on 18th March 2009, a fitting tribute

as it was Fred who instigated this award some ten years ago.

Part of the evolution of Imperial Auto Parts, was the eventual coa-

lescing of a strong management team to take IAP forward. This

management team comprises chief executive officer, Deon Botha;

sales and marketing executive Pieter van Deventer; financial exec-

utive Janson Ponting; and procurement executive Terry Brand.

This team has been commissioned by the Imperial Group to carry

Bill Lynch’s original mandate forward; i.e. to leverage off the

strong entrepreneurial spirit that is evident in South Africans of all

stripes, and to give these entrepreneurs the chance to go for it,

with no pre-conditions, all premised on the Imperial entrepreneur

business model. IAP’s message to the market is a mixed bag of rec-

titude, passion, vision and commitment:

• IAP will conduct itself professionally and ethically

• IAP shall provide the market with quality products at

affordable prices

• IAP is dedicated to the independent entrepreneur

• IAP is here to stay for the long haul

• IAP is committed to bringing Imperial’s vision to fruition

The Genesis and Growth of Imperial’sAutomotive Aftermarket Initiatives

C o v e r S t o r y

17J u l y 2 0 0 9

The recent proliferation of vehicle brands and models in South Africa has meant that local component manufacturers have been unable

to keep up with demand, and the resultant gaps in product ranges has meant that parts distributors have had to look for alternative

sources to satisfy the market. This is a situation not of their own making, but to satisfy the needs of the burgeoning car parc, the dis-

tributors have no option but to look outside the country. Imperial Auto Parts has met this challenge with the introduction of an exclu-

sive brand, named RAPS (Reliable Automotive Parts Supplies). After an extensive and prolonged product development process, IAP is

now in a position to offer its customers a sound brand that has the necessary back up of a reputable organisation. The focus has been

on product where there is no local manufacturer, or to import to cover the gaps created by such a diverse car parc. Deon Botha, chief

executive officer of IAP, says that with this package, “we can provide our traditional and emerging customers not only with the well

known and well loved proprietary brands, which by default give the customers peace of mind, we can now give the broader motoring

community a house brand with acceptable quality, affordable prices, and that very important ingredient of assurance that their vehicle

can be maintained and kept roadworthy at reasonable prices.”

Deon Botha, chief executiveofficer, IAP

“Imperial Auto Parts is now in a position

to offer its customers quality products,

world class service and a professional

and ethical commitment backed up by a

reputable organisation. We shall do this

with humility and enthusiasm, for the

mutual benefit of our organisation and our customers. We shall

quietly do our thing, and we shall never forget our mandate. My

message to the staff of IAP and our customers is that arrogance

shall be avoided like the plague.”

Pieter van Deventer, sales andmarketing executive, IAP

“The culture of Imperial Auto Parts is

one of an entrepreneurial hands-on team

that partners with like minded business

partners, be it customers, suppliers, who-

ever; in fact all stakeholders. Our focus is

on nurturing close relationships to create

a “unique” strength that bonds for the future, and puts us in a

position to aggressively widen and deepen our footprint in south-

ern Africa. To this end, we are relocating and expanding our oper-

ations in Cape Town, Durban and Nelspruit”

Janson Ponting, financial executive, IAP

“We recognise that our strategic advan-

tage is world class information systems

and cash management. We have recently

implemented a state of the art ERP

(Enterprise Resource Planning) system,

which is a fully integrated system that

covers the A to Z of best practices. This is a multi-million Rand

investment that enhances our business both upstream and down-

stream, and we shall continue to invest in processes that will give

us the competitive edge in distribution.”

Terry Brand, procurement executive, IAP

“We source locally and globally to give

effect to our promise of quality products

and competitive prices. Whilst we offer

the world’s leading automotive brands,

we also scour the world extensively to

seek out the best possible suppliers for

our RAPS in-house brand, providing a comprehensive range of

quality tested and keenly priced alternative product for the cash

strapped motorist. Continuity of supply is our promise, so the

supply chain becomes a key element of our strategy.”

Product Philosophy

F r a n k l y S p e a k i n g

Before proceeding any further, it would be just as well

to record some explanation of “Chapter 11

Bankruptcy Protection”, as this provision seems

destined to play an important role in the restructur-

ing of a number of substantial American businesses.

In very simplified terms, it is a component of the US bankruptcy

Code allowing for the financial reorganization of companies while

they follow debt repayment plans, which does not require the liq-

uidation of the business. During this process, the debtor compa-

ny remains in control of the operation, as the “debtor in posses-

sion”, subject to the oversight and jurisdiction of the federal bank-

ruptcy court. Two of the most important provisions of this process

are the automatic stay, which requires all creditors to cease their

collection attempts, and the ability of the protected company to

reject executory contracts, typically with labour unions, dealers,

vendors and customers, in which each party has residual

contractural obligations.

Although it is expected that GM will emerge, albeit in some fair-

ly radically altered form, after the Chapter 11 period, there can be

no doubt that these recent events have shaken the very founda-

tions of the formerly world-dominant American motor industry.

Only last September, GM celebrated its Centenary, and we were

reminded of its early history, starting on September 16th, 1908

when high school dropout William C (Billy) Durant incorporated

the company, which, at that time, only listed the Buick and

Oldsmobile brands among its assets. Durant’s perception, unpop-

ular among most of his contemporaries, was that a grouping of

several carmakers under one corporate umbrella would have better

prospects for growth than a stand-alone entity. Durant’s vision

proved to be prescient, and, by 1916, Cadillac, Chevrolet,

Oakland and GMC had joined the GM “family” that was to

emerge as the only serious rival to the then industry-dominant

Ford Motor Company. By 1926, GM, under the leadership of the

legendary Alfred P. Sloan, Jr., had eclipsed Ford’s dominance.

One important aspect of GM’s history was its willingness to invest

abroad. Between the World Wars, it acquired Vauxhall in the

United Kingdom, Adam Opel in Germany, and Holden in

Australia. In addition to the continuation of these individual

brands under the GM umbrella, other manufacturing and assem-

bly plants were established in many other countries, including

South Africa. An important consequence of this policy was that

the “mainstream” US products, which had previously been export-

ed all over the world, became progressively isolated from overseas

markets, and were used almost exclusively to service the huge

North American demand for vehicles, which peaked at 17 million

units in Year 2000. This process began to reverse once foreign cars,

particularly those of Japanese origin, began to make their mark on

the US market from the nineteen-seventies onwards. One of the

best examples of international product co-operation was GM’s J-

Car series medium sedan platform of the nineteen-eighties, which

was built in the US, Germany, Australia and Japan, and sold

simultaneously as the Opel Ascona, Vauxhall Cavalier, Holden

Camira, Chevrolet Monza, Cadillac Cimmarron, Pontiac J2000,

Oldsmobile Firenza, and Isuzu Aska. However the American mod-

els were, predictably, a little more soft and showy than those built

and sold overseas. More recently, the purchase of bankrupt

Daewoo’s light vehicle assets in South Korea has established a new

value vehicle sourcing string which has benefited GM’s marketing

efforts across the globe.

Making some rational comment on GM’s current problems from

a South African perspective is a challenging exercise, and it would

be impossible to cover all the manifold aspects in an article of this

length. The real issues that have pulled GM down include a pro-

gressively declining North American market share in the face of

foreign competition, uncompetitive production cost structures

with a highly organised and expensive labour force, negligible

export potential for US-built products, and ever-tightening

domestic fuel consumption and emission legislation. It also

became heavily dependant on larger cars and truck-based SUV

products for its profits, while smaller, more fuel-efficient vehicles

were demanded by the market. In a situation of falling sales

volumes, this developed, with frightening rapidity, into an unten-

able situation.

by Frank Beeton

Painting Your Wagonerinto a Corner

As these words are written, it has just been announced that General MotorsCorporation, which was, at one time, the world’s biggest business, and, until recent-ly, its largest vehicle manufacturer, has entered a judicial process known as Chapter11 Bankruptcy Protection. Given the unfolding of global events since the emergenceof the so-called “subprime mortgage crisis” in the United States of America during2007, including the subsequent cataclysmic imploding of new vehicle markets, andseveral huge US government interventions to keep GM and cross-town rival ChryslerLLC cash-liquid, this event was not entirely unexpected. It has, however, added to thelist of embarrassments recently suffered by vehicle manufacturers, includingChrysler’s subsequent bankruptcy protection leading to a proposed merger with Fiat,and debt restructuring measures which have become necessary at companies as geo-graphically and culturally diverse as Porsche in Germany, and Tata in India.

J u l y 2 0 0 918

M i s a M i n u t e s

J u l y 2 0 0 920

MISA Benefit and Funeral Fund

- By Dana de Villiers

MISA legal representation

This is an important part of the benefits which we provide to the MISA members. Thebenefit is funded from the normal MISA membership subscriptions and no additionalcontributions are required. A certain portion of the membership subscriptions is allo-cated towards this fund to finance the benefits.

This fund is subject to annual audits by a professional audit-

ing firm, tabled at the annual general meetings of the

members in the various Regions for consideration and

approval and then submitted to the Registrar of Labour Relations.

These are all requirements which need to be complied with in

terms of the Labour Relations Act. Many employees in the retail

motor sector think that they do not require a benefit like this as

they are too young to think about that or they might be too young

to die, they have enough provision for funeral cover in the unlike-

ly event of the member or dependants passing away and some are

just not giving it a second thought.

Firstly, none of us are too young to die and it is therefore never

too early to start thinking of this type of cover!

Secondly, the question they need to answer is whether the provi-

sion they made ensures that the money is readily available to pay

for the funeral when required or would the dependants have to

look to family and/or friends or even their employer to provide

payment, until such time that the estate is wound up and the pay-

ments and refunds can be made.

Whenever a family member passes away it causes grief and enor-

mous levels of anxiety and it certainly is no time then for the

dependants to concern themselves with where and how they are

going to access funds to cover the funeral costs.

The MISA benefit is payable as soon as all the necessary and

required documentation is supplied by the claimant. The benefit

does not form part of the estate of the deceased and is paid direct-

ly to the undertaker, if the funeral is arranged by AVBOB, and the

balance to the nominated beneficiary. If the family make use of

another undertaker the benefit is paid to the beneficiary who then

has to settle the account.

I want to share some statistics about this fund that have not been

shared previously and are not well known.

Since 1985 the benefits paid in respect of claims in total

amounts to R 58 864 167! (Yes R58 million).

The breakdown of the abovementioned amount in respect of the

benefit categories is as follows:

Principal members: 3786

Spouses: 1545

Children above the age of 14: 202

Children below the age of 14: 109

What are the benefits ofthis fund?• Membership is automatic so members don’t have to concern

themselves with obtaining funeral cover

• No additional contributions are required to fund the benefit

• Cover as from receipt of one weeks’ contributions

• The benefit does not form part of the deceased members

estate and is paid directly to the beneficiary

• Make use of AVBOB as the undertaker and MISA guarantees

payment of the funeral to the undertaker up to a maximum of

R6000-00

• No commission is paid to brokers and the fund is adminis-

tered as part of the union administration reducing costs sub-

stantially

One of the most important reasons for joining a trade

union is to ensure that as a member you have access to

professional legal advice and support where and when

appropriate.

In the overall picture not a lot of the MISA members are involved

in any form of disciplinary hearings or unfair labour practices.

However, the insurance is required similar to motor vehicle insur-

ance. You might not need to claim for twenty years and then out

of the blue you are involved in an accident, and not necessarily of

your making!

With the current state of the retail motor sector it is inevitable

that employers are looking at ways of reducing overheads. One of

the overheads which are the seen to be the easiest to manage,

although it may be very costly if done unfairly or for no real

reason, is the employment costs.

Commission structures are continuously amended, pressure is put

on employees to ensure more unit sales, obtaining more new cus-

tomers, and customer satisfaction is the new flavour of the decade.

Keep the customers happy! General Motors are even implying in

their television ads on their “Red Tag Event” that it is required

and acceptable to neglect your family, no matter the

consequences, just to sell more motor vehicles.

There is nothing wrong with managing these issues as an employ-

er. The problems are generated by how these issues are managed.

M i s a M i n u t e s

21J u l y 2 0 0 9

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

Third row: J Blignaut, M de Sousa, J Nortjie, C Beyers

The retail motor sector has always had problems at middle to sen-

ior management level as not a lot of focus is placed on developing

people management and communication skills. The lack of these

skills is normally what causes the problems in the workplace lead-

ing to disputes.

The MISA members have access to a number of qualified and

dedicated people who focus on labour relations in the retail motor

sector. There are so many consultants and lawyers and even other

trade unions selling their services to employees who have no idea

of the content of the collective agreements or even the dispute res-

olution process in our sector.

The MISA representatives have a very professional approach to

addressing the labour relations problems on behalf of members.

There are very specific principles which MISA adheres to which

sets us apart from other trade unions. What don’t we do?

• MISA does NOT create problems between members and their

employers

• MISA does NOT create unrealistic expectations with our

members

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

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

case

• MISA does NOT charge members additional costs for legal

representation at whatever level

• MISA does NOT retain any money from settlements reached

or awards obtained on behalf of members to offset legal

expenses

I would like to use the case against Madikor Drie (Pty) Ld as an

example. In 2002 Henred Freuhauf (Pty) Ltd sold a portion of its

business to Madikor as a going concern. There was a Manpower

Reduction Policy in place as part of the employee’s letters of

employment. When Madicor initiated retrenchments they did

not want to pay the retrenchment packages in terms of the

Manpower Reduction Policy. They thought that a mere consulta-

tion in this regard and unilateral implementation would suffice.

MISA represented our members and warned the employer to

adhere to the MISA members’ conditions of employment. The

employer ignored the MISA argument and paid reduced retrench-

ment packages. MISA duly declared a dispute on behalf of the

members and the legal process started.

At all the legal forums where the case was heard MISA obtained

the award in our favour and every time the employer would take

the next step in the process.

Eventually a full bench of the Labour Appeal Court ruled in

favour of MISA and our members. The employer had to pay a

capital amount of R 2 668 855 and interest of R 766 241 (a total

of R 3 435 127) over and above the retrenchment packages paid

at the outset on behalf of the 12 members.

The added benefit to the MISA members is that they did not have

to pay a single cent towards the legal expenses and none of the

money is retained by MISA to offset any legal expenditure. Had

MISA lost the case the same would have applied in terms of the

legal costs.

Not bad for a “small, useless, irritating, of no real consequence

trade union” for which the employer and its legal representative

were not scared of!

I don’t want employers to be scared of MISA. I don’t expect

employers to like MISA. I do know that they will respect MISA,

the principles we subscribe to and the way we protect the interest

of our members. Even though some of them will not admit to it!

Four major technology groups seem set to vie for the attentionof motor vehicle producers and their customers, in the not toodistant future. Broadly speaking, they are the charge-and-go

electric battery platform, the charge-as-you-go hybrid platform, the hydrogen poweredfuel cell platform and the mighty mouse micro engine which uses conventional petrole-um based fuels in tiny engines with exponentially improved power and torque deliverycharacteristics. Vehicle technology available by 2015 or 2050 may be difficult to imag-ine right now, but it seems highly likely that one of these four technical design plat-forms will develop at the expense of the other three, probably within the next decade.

A u t o T o p i c a l

J u l y 2 0 0 922

Some of the possible technologygroups overlap with the others.For instance, battery powered,hybrid and fuel cell cars wouldall rely on electric motors.Hybrid and mighty micro

engine vehicles would both burn petrole-um fuels, and so on. Hybrid vehicles,which use small conventional internal com-bustion engines to provide power andcharge batteries, are already well establishedthrough the availability of two generationsof Toyota Prius SUV’s. Various producersare currently falling over themselves tobring battery powered electric vehicles tothe roads. Fuel cell powered vehicles, wherehydrogen gas passes across a platinum grid,leaving electrons behind to be used tocharge batteries and power motors, arealready available, but have several hurdlesto go before becoming truly practical.Mighty micro engines, which are small dis-placement turbo boosted petrol and dieselunits, are nothing more than direct descen-dants of engines that have been aroundsince the term Otto-Cycle was born.

A number of global developments mayappear to be aligning themselves to acceler-ate the take-up of new technologies in theautomotive market place. Not the least ofthese must be the scare that the vehicleusers, manufacturers and politicians alikewere given during 2007 and 2008 by theseemingly unbridled rise in the price of oil.While that particular pressure point maywell have been created by financial sectoroperators, who have largely but by nomeans completely slunk off to hide in theruins of their formerly mighty institutions,it certainly acted as either a premature ortimely warning of an event which is sure tocome back more permanently at some timein the future.

Apart from global oil supply and demandconsiderations, there are mounting con-cerns regarding the polluted health of theplanet. Green is the attitude of choiceacross almost all political parties, from themightiest at the helm of the USA, to the

ANC alliance back home in South Africa.None of the four major technology groupssketched above features renewable energy,not even the hydrogen fuel of the fuel celloption, although it possibly comes the clos-est. While the world is full of hydrogen,most of it is attached very firmly to otherelements, and will require energy to per-suade it to part company from whatever ithappens to be bonded to. Energy equalspollution, at least until the practical harnessing of renewable resources, or the solving of nuclear waste disposal puzzles.

For some years, hybrid vehicles appeared tobe on the front foot as the next automotivetechnology phase, but the oil price shock of2008 heightened the level of criticism ofeven these gas-sippers, with the realisationthat outside of heavy urban traffic condi-tions, they used nearly as much petrol as areasonably economical conventional vehicle would on the open road. Enterthen the mighty micro engine vehiclewhich is no scientific breakthrough, butsimply a way of doing more with less,which was for years pure anathema to theworlds largest automotive market, that ofthe USA.

But the current favoured son of theInternal Combustion Engine appears to bewhat had become a prodigal son when thefirst hybrids made their appearance, name-ly the rechargeable electric car. There areseveral that had either been (slightly prema-turely) shown at the international motorshows of the past 12 months, with somebreakthroughs in battery technology, for along time a stumbling block of the vehicles,having clearly been achieved. Too badabout the pollution aspect, though, as oneinevitably has to burn coal or oil in anuclear shy electricity generating environ-ment, to charge the beasts.

But the technologists can invent their wayto obscurity, whistling anthems of changethrough their exhaust manifolds, if con-sumers do not want to change their tastes.

Consumer tastes react to the strangest stim-uli, defying both logic and prediction.Who could possibly have foreseen that an80% increase in the petrol price betweenJanuary and June 1970 would initiate the hatchback revolution in the SouthAfrican car market? Combined, the Golf 1and Mazda 323 of the time had struggledto collectively achieve 4% market share. Bythe first half of 1980, they were regularlyachieving 42% between them. Why?Ostentatious consumption in an inverteddimension, and who says that it cannot happen again?

On your bike, Otto!by Tony Twine,Senior Economist,Director –Econometrix (Pty)Ltd

Ken Ken 8 x 8How to Play:

Like Sudoku, even though difficulty may vary

from puzzle to puzzle, the rules for

playing KenKen are fairly simple:

For a 8x8 puzzle, fill in with the numbers 1-8.

• Do not repeat a number in any rowor column.

• The numbers in each heavily outlined set ofsquares, called cages, must combine (in anyorder) to produce the target number in the

top corner of the cage using the mathe-matical operation indicated.

• Cages with just one box should be filled inwith the target number in the top corner.

• A number can be repeated within a cage aslong as it is not in the same row or

column. Answer on page 76

It is these factors that exercise the minds of

McCarthy Vehicle Imports executives when they

consider the introduction of a new model, and they

urge the consumer to do exactly as they do when

looking for a car – do the homework! Mike

Dawson, After Sales Director of McCarthy Vehicle

Imports, says that the homework they do before introduc-

ing a car is a comprehensive market study on the cost com-

parison of the Chery vehicle to a similar vehicle in the mar-

ket, involving a parts basket of at least 200 parts, compris-

ing a mix of service and crash parts, and other replacement

parts, and to sharpen the pencil to ensure that the Chery

replacement prices are typically 30% or more below the

competitive brands. Assistance from Chery in China, in

the form of lower FOB prices, is sometime solicited to

ensure that this promise is kept. The upshot of all this is

that anyone buying a Chery vehicle not only gets a very

reasonably priced vehicle, but they also get very good parts

prices, comparatively assessed, and McCarthy Vehicle

Imports goes even further by ensuring that the Chery serv-

ice centres also charge industry beating labour rates, pro-

viding the Chery vehicle owner with an extremely compet-

itive and attractive motoring cost package. The proof of the

pudding is the latest Kinsey Report, which rates the Chery

QQ3 0.8 as the cheapest vehicle to maintain in the Entry

Level Category, when it comes to the basic service parts,

comprising air filter, oil filter, fuel filter, spark plugs, wiper

blades, front brake pads, and rear brake pads/shoes. The

Chery QQ3 0.8 also comes out tops on the “major” serv-

ice package, comprising front and rear shocks, fan belt,

front brake disc, cam belt/timing chain, clutch kit, water

pump, radiator, radiator cap, and thermostat. The Chery

QQ# 0.8 also holds its own in the crash parts segment. The

aforesaid confirms the promise made by McCarthy Vehicle

Imports, that they will offer a comprehensive and afford-

able package to the cash stressed motorist.

J u l y 2 0 0 924

A series of articles on the rise of the Chery automobile

Times are tough for the motorist, and to add to thisburden the cost of new vehicles has been going uprelentlessly this past year. And motorists in the marketfor a new vehicle need to do their sums in more waysthan one, because it is not just the initial purchaseprice that has to be taken into account when purchasinga new vehicle. It is the service costs and the price ofcrash parts that also need to be closely scrutinised,and availability of these parts will also become a majorfactor if your car is off the road and in need of repair.

Keeping the Cost ofMotoring Down – the Chery Way

Mike Dawson, After Sales Director of McCarthy Vehicle Imports

This sign is prominently displayed at all Chery service outlets, specifying exactlywhat you will be charged for the respective services – which confirms the trans-parency of the process

h e a l t h c a r e

MOTO Health Care

J u l y 2 0 0 926

The Board of Moto Health-

Care has the task of deter-

mining the benefits and con-

tributions for the benefit

options in 2010. This is a

complex and difficult process as it requires

the Board to balance offering a compre-

hensive level of benefits while also ensur-

ing the contributions remain affordable.

The Board has already embarked upon the

process of benefit review. This involves

analysing the current utilisation levels and

investigating any trends and variations

from what was expected when the budget

was prepared last year. The Board consid-

ers whether categories of benefits should

be enhanced or reduced and even whether

new benefit options should be introduced.

During this process the Board relies on

actuarial analysis of claims data as well as

feedback received from members and the

Scheme’s staff and the administrators who

are regularly interacting with members.

One of the particular challenges is address-

ing new medical technology. New tech-

nology can mean, for example, that surgi-

cal procedures can be performed quicker

or that medication has fewer side effects.

But these medical advances are usually

associated with higher costs and the Board

has to consider carefully whether the addi-

tional cost is justified. This is very impor-

tant since ultimately all the costs covered

by the Scheme are funded from the mem-

bers’ contributions and so additional costs

for new technology may lead to contribu-

tion increases.

Once the Board has drafted a set of bene-

fits for 2010, a budget for the costs needs

to be calculated. This is done with the

assistance of the actuarial consultants to

the Scheme. They will estimate the utilisa-

tion levels per benefit category and benefit

option in 2010. They will also estimate the

likely increase in the cost of medical serv-

ices for next year. This can be quite a

tricky process in the current economic

conditions. They will also need to consid-

er whether any benefit changes are likely to

cause members to change benefit options.

All members will have the opportunity to

select their benefit option at the beginning

of 2010.

There are also administrative costs for the

Scheme that need to be included in the

budget.

Combining all of these factors, the actuar-

ies will recommend a budget for costs to

the Board. The Board will then need to

consider how to fund these costs. They

need to determine a contribution level that

is affordable for members but they also

need to ensure that the Fund is responsibly

managed and that it will remain solvent in

the long-term. If the Board feels that the

levels of required contribution increases

are too high, they will revisit the proposed

benefit levels and even consider restructur-

ing some of the benefits.

Once the budget and contribution rates

have been determined they need to be sub-

mitted to the Registrar of Medical

Schemes for approval. The deadline for

this submission is the end of September.

The staff at the Registrar’s office will scru-

tinize the assumptions made in drawing up

the budget. They also focus on the impact

of contribution increases on members and

they will often request further information

from the Board to justify their decisions.

Once the Registrar of Medical Schemes is

satisfied that the contribution increases are

reasonable, the Scheme may embark on

communicating the benefits and contribu-

tions for 2010 to the members. This

process is expected to start in November

and members will be given the opportuni-

ty to select their benefit option for 2010.

Since not all members will respond to

communications sent out by the Board,

the Board will also determine a default

basis for members who do not indicate

their benefit option choice. This usually

means that they remain on the same

option as they were on in 2009. Even if

you are going to stay in the same option it

is important to let the Scheme know that

this is what you want to do.

The budget process is particularly chal-

lenging for the Board as it involves balanc-

ing a large number of factors to ensure that

the interests of all the members are taken

into account so that Moto Healthcare can

continue to offer an affordable and com-

prehensive range of benefit options in a

financially sound manner.”

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

Barry Canning, Chairman Board ofTrustees - MOTO Health Care

www.t-r-m.co.za

T 0861 TRM TRM

F 086 686 8382

C u s t o m e r C . A . R . E

J u l y 2 0 0 928

Customer Relationship Management

– it’s all science reallyAn important aspect of CRM is that you make an effort to interactwith your existing customers. Why? Simply, because of our nature, weare unwilling to change. We tend to stick to what we know ratherthan try the unknown. You do get the exceptions of course, the pio-neering spirits among us, the people that just love trying somethingnew every now and then. But these people are rare. We find that thisbehavior of “sticking to what I know” for items and services of alllevels to be far more common. We are ceatures of habit after all.There is a law in science that describes this behaviour very well; itis called Newton’s First Law of Motion. What is says is the follow-ing: “Every object persists in its state of rest or uniform motion ina straight line unless it is compelled to change that state by forcesimpressed on it.”

Theo Calitz has beenworking in or involved inthe motor industry for thelast 16 years. A mechani-cal Engineer by profession,

he is passionate about customer care and his

company, T-R-M specialises in automotiveCRM for the automotive

industry and has beendoing it for 9 years.

Although this might sound terribly scientific it makes my

point very well. There are some interesting things that we

can derive from this; firstly, things tend to stay as they are,

unless an external force acts upon them. A force in CRM speak

could be a bad customer experience, a complaint that is not prop-

erly addressed or a friend that is really happy about a product or

experience and keeps on talking about it. All this can be seen as

forces that can mobilise consumers to try that something else.

Conversely, if a consumer likes using a product, it is possible that

you can get them to try new products from the same brand, like

Nivea, which started with products for women exclusively but are

now also promoting products for men. If women were happy to

use these products for themselves, it becomes quite easy to con-

vince them to buy it for the men in their lives.

Two things to be learned from this:

1. If your customer complains, pay attention. Fix what’s wrong

– you do not want to disturb the equilibrium! The last thing

you want is to create a ‘force’ that could upset the comfort-

able relationship the customer has with you. Mechanisms

that can be applied are the following:

a. Excellent customer care processes. This may include the use of a

Call Centre (one that works as intended!).

b. Quality control of your product or service to prevent bad prod-

ucts reaching your customer.

c. CSI or customer satisfaction measurement to find out what your

customer thinks of your product or service. Remember, it is all

about their experience, not if you are right or wrong.

d. Excellent recovery strategies. When you discover that something

went wrong, make an effort to win back the heart of your cus-

tomer. It is worth it!

2. If you are losing market share, you are doing a lousy job.

Think about it: your customer already uses your product

which means:

a. They already know your product. You do not have to educate

them and you do not have to convince them - at most you have

to re-assure them.

b. They already use your product – i.e. – they already know the

benefits and they are comfortable with the brand.

c. They already accept the price as they are buying it currently.

d. They might already tell their friends about it and therefore

promoting your product for free!

The best example can think of in terms of this principle is my wife.

She has a MINI Cooper S and she simply loves her car and pro-

motes it at every opportunity that presents itself. It is now three

years down the line and I think it is time for something else.

Despite my best efforts, she is only interested in either keeping the

MINI (yes, the Motorplan has been extended already) or a get new

MINI. My efforts to get her to try other brands are met with sub-

stantial resistance – Newton’s First Law of Motion in action again!


J u l y 2 0 0 930

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

continued on p32

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

In Module One we discussed the

problem of poor customer service in

South Africa. In particular, the

surly, slow, uncooperative and

unproductive staff behind the coun-

ters, telephones, etc. We also looked at the

basic essence of CUSTOMER C.A.R.E.,

which is the emotional and intellectual

understanding that C.A.R.E. means CUS-

TOMERS ARE REALLY EVERY-

THING.We now need to look at the root

cause of bad customer service - manage-

ment! Management always claims that the

poor customer service their company deliv-

ers is because of the poor quality of staff

with whom they are forced to contend, and

the reasons they put forward for this situa-

tion are varied, but the main culprits, the

hardy annuals that always crop up, are the

culture thing, or the education standards,

or the poor socio-economic environment.

Yes, these are problems, but I still contend

that the root cause of poor customer

service is management. To verify this

statement, just look at history, which in

hindsight is an uncannily accurate meas-

urement. In one word, we are talking

LEADERSHIP.

Management should not only manage, but

they should also lead. This applies to any

situation where there are leaders, and

where there are followers. As surely as night

follows day, followers tend to follow the

lead of their leaders. Take nations, as a clear

example. The history of nations is littered

with either good or bad results, depending

on the behaviour of their leaders; and the

followers behaved accordingly, by watching

what their leaders did, or watching what

their leaders did not do. Nazi Germany is a

perfect example of how the followers, who

were an educated and cultured people,

were led into insanity by a small clique of

immoral and decadent thugs.

The old South Africa became a blind and

bizarre society through the acts of commis-

sion by its leaders, and the new South

Africa has become a corrupt and criminal

society through the acts of omission by its

leaders. This happens because the mass of

followers, lemming like, watch how their

leaders behave, and follow suit.

Individualism, unfortunately, is still a rare

trait amongst the animal kingdom, over

which the human race has divine domain,

but still manages to mimic in comic

proportions.

This applies to all human endeavours, be it

sport, religion, business, or the PTA of

your local school. All the nations of the

world, all the religions of the world, all the

sport teams in the world, all the businesses

of the world, have peaks and troughs,

depending on the behaviour of their

leaders. Customer c.a.r.e. is exactly the

same. The customer service levels of your

company are in direct proportion to the

sincerity of management when it imple-

ments customer care strategies.

SPECIFICSNow that we have got the philosophical

discourse out of the way, let us start look-

ing at specifics. To do this, we need to

understand the SECOND TRILOGY

TRUTH ( the first Trilogy Truth is rather

esoteric, and therefore will be discussed at

a later stage, when you are a little more

steeped in the lore of customer c.a.r.e. ).

The SECOND TRILOGY TRUTH states

that there are three very important steps to

achieving superb CUSTOMER C.A.R.E.,

and that these three steps are indispensable.

The first step is a commitment to yourself,

the second step is a commitment to your

company, and the third step is a commit-

ment to your customer - in that order.

There are no short cuts in this process -

you cannot be committed to your

customer if you are not committed to your

company, and you cannot be committed to

your company if you are not committed to

yourself.

1. COMMITMENT TO YOURSELF

2. COMMITMENT TO YOUR COMPANY

3. COMMITMENT TO YOUR CUSTOMER

YES NO


J u l y 2 0 0 932

DISCUSSION POINTS

1. What is the essential difference

between MANAGEMENT and

LEADERSHIP?

2. Give an example of an act of

commission.

3. Give an example of an act of

omission.

4. Discuss the advantages and disad-

vantages of individualism.

5. Can you fake sincerity?

6. How do you measure sincerity?

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

We shall analyse your answers in the nextmodule.

The three simple questions, ARE YOU COMMITTED?

18 Months Warranty

m a n a g i n g t h e R i s k s

34

Séan Jackson is a music buff, so it was not difficult for him to pick some music for the

article this month on tyre monitoring systems. “Under Pressure” was his immediate

response when asked the question, and whether you are a David Bowie fan or a Queen

fan, you’ll agree that Séan’s choice is most appropriate , because if you are running a

fleet of vehicles, you will understand the importance of the tyres being under pres-

sure, and if this vital aspect of fleet management is not given the management it

deserves, then the fleet manager and the bottom line soon come under pressure.

by Séan Jackson

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

In this article Séan Jackson returns to

his favourite theme when discussing

the management of risks – it all

starts with the driver! Look after the

driver, and your costs will come

down; it is as simple as that. This applies to

every single risk issue which we have dis-

cussed; fuel losses, material losses, the role

shock absorbers play in extending the value

on your fleet, and safety, of course.

We have a few more aspects to discuss, but

in this month’s issue it is the turn of tyres,

and the need to look after them bearing in

mind the job they do, the big loads that

are being carried, and the paramount

importance of optimum tyre pressures.

Séan does not want to labour the point,

but he is emphatic that fleet managers need

to understand the risks inherent in the

event of a tyre bursting, and of the signifi-

cant effect on balance when a truck

loses a wheel – something a

fatigued driver may not notice.

This is why a tyre monitoring

system is so important, and

why it is compulsory in

America, and that legisla-

tion is being promulgated

in Europe, and naturally,

and hopefully, this will

soon follow in South

Africa. Safety is a big issue

here, particularly for buses,

and the many lives at stake at

one time. And you need to give

the driver the necessary tools for

early detection of tyre problems.

ACTSENSOR IT!• Advanced Tyre Pressure Monitoring

• Prevents Accidents

• Unique Key

• Easy to Install

• Totally Wireless

• Alarm Response

• Suitable for Cars, Trucks and Buses

TRUCKTEK has chosen Actsensor-It!, an

advanced tyre pressure monitoring system,

known worldwide as TPMS, that supplies

constant information to the driver of any

vehicle on all the operating tyres, whether

four or thirty two. This is a global system

with South African adaptations, and which

is perfectly suitable for our unique condi-

tions. The beauty of this system is that it

recognises that the driver is the first line of

defence, but it can also be linked into a

control centre, and can be incorporated

into any fleet management system. The

driver is kept aware of all the tyre pressures

of the vehicle via a dash mounted monitor,

or a rear view mirror clip on version, and is

warned visually and aurally when a tyre

pressure variance of 15% is detected.

Next month, Séan shall discuss this subject

in more detail, focusing on the dynamics

around tyre monitoring.

Under Pressure

J u l y 2 0 0 9

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

J u l y 2 0 0 9

The Rapidly DisappearingTruck Market

How wrong we were! To be

fair, it took some time for

market analysts and fore-

casters to fully appreciate

just how difficult the

financing environment for commercial

vehicle sales had become. We assumed that

the National Credit Act had settled down,

and that the prospect of steadily falling

interest rates would create a positive arena

for the financing of vehicle purchases. It

was only when MAN CEO Thomas

Hemmerich went public with his frustra-

tion that we finally caught on, and the sup-

porting anecdotal evidence then started to

pile up. As it turned out, the market results

for the first quarter were considerably

worse than anticipated by the captains of

industry, and, five months into the year we

find the market no less than 47,3% off the

volume reported for the equivalent five-

month period in 2008. Unless things

improve radically, and fairly soon, reaching

a final market total for the year of only 20

000 units could become a major challenge.

It is difficult to believe that the current

market reflects the true level of demand for

new vehicles coming from the local trans-

port industry, and frequent tales of a less

than 20% success rate with applications for

credit by transport operators tend to bear

this out. We must also assume that the local

supply industry would have initially pro-

cured inventory at a level to support its

own 28 500 unit forecast, so product avail-

ability, at least in the first quarter of the

year, should not have been a seriously lim-

iting factor. The fact that a very large num-

ber of new trucks, buses and vans had

entered the South African vehicle parc dur-

ing the boom market years from 2006 to

2008 has given operators the option of

extending the lives of their existing vehicles

under the currently very difficult financing

scenario. There is also the possibility that

some operators have chosen to defer their

fleet replacement and expansion plans until

the global and local economic environ-

ments improve, but the magnitude of the

downturn in the market has become

extremely difficult to rationalise.

One of the few potential bright spots in the

market has also recently been dealt a severe

blow. Several metropolitan Bus Rapid

Transit projects were starting to take shape

early in the year, with Johannesburg plac-

ing orders on Scania for 143 BRT units,

while the Department of Transport book-

ing spaces for 570 buses and coaches on the

Mercedes-Benz and MAN production

lines. However, the presumably well-inten-

tioned efforts of President Jacob Zuma to

defuse potential taxi protest action threat-

ening the General Election by effectively

putting BRT implementation “on hold”,

has thrown a mantle of doubt over the

entire process. Meanwhile, back in the

marketplace, some new factors have recent-

ly emerged. Evidence of sales incentivisa-

tion in truck advertising, has reinforced the

view that stock availability is not a major

limiting factor. More importantly, certain

vehicle suppliers have begun aggressively

promoting the availability of in-house cred-

it facilities, in a clear response to the diffi-

cult financing environment. It is highly

unlikely that this initiative would have

been unilaterally underwritten by the local

banking fraternity, given their current lack

of risk appetite, so it presumably involves

some element of risk acceptance by the

vehicle suppliers. In May, the market pro-

file showed a swing back in favour of the

premium XHCV segment, following the

bloodbath in this category earlier in the

year, and this suggests that these alternative

credit arrangements are having an effect.

It is interesting to reflect on the fact that

several vehicle suppliers have long-running

joint ventures with local banks to provide

financing facilities at sales outlets.

However, it now appears that, once the

going got tough, these JV’s virtually

removed themselves from contention.

While acknowledging that there are risks in

extending credit to some truck operators,

the finance companies, presumably, have

been in the business long enough now to

recognise a well-managed and viable opera-

tion when they see one. It is difficult to

believe that 80% of South African opera-

tors have suddenly become unacceptable

risks! However, the unavoidable conse-

quences of an extended period of depressed

vehicle sales will include the degradation of

operator efficiency, and consequent viabili-

ty, and the exertion of considerable pressure

on truck manufacturers, importers, dealers

and suppliers. When these players

inevitably reduce their level of exposure to

the downturn, the supporting infrastruc-

ture that has been painstakingly built up

over the recent period of market strength,

will start to break down.

by Frank Beeton

36

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

J u l y 2 0 0 9

Hennie Noortman from

Mikar Hursthill handing

over the keys to Martin

Another happy Mikar customer

Imperial Auto Parts & Mikar would like to congratulate Martin Grobler

on winning a Honda ATV, sponsored by GUD Filters. Martin entered the

competition at Mikar Hursthill in Johannesburg.

37

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

T o n y ’ s t a k e

J u l y 2 0 0 938

In new vehicle show rooms, May evi-dently started off far more brisklythan other recent early monthlyperiods but momentum fizzled outaround mid-month and struggled

upwards to its month end rate with somedifficulty. In the end, NAAMSA passengercar sales were up a relatively small 9.5%over the woeful levels of April, whichmeant that a substantial number of saleswhich may have been expected simplyfailed to occur. Released early in June, theNAAMSA vehicle sales data for May wasaccompanied by two equally up to date sta-tistics for that month in the form of theKagiso-BER purchasing managers index(PMI) and the First National Bank HousePrice Index. The PMI almost completelymirroring the level of car sales in themonth had ticked up from a level ofaround 36 basis points to 37 basis points,which was scarcely a startling improve-ment. The FNB house price index showedan annual nominal (unadjusted for infla-tion) decrease of 11% for May. This wasslightly down on Aprils result.

These two indicators, alongside the vehiclesales results from NAAMSA, provide someperspective regarding both business andconsumer confidence. The PMI, whicheffectively moved sideways, probablyreflects the inertia in business confidence,despite the additional 100 basis point cutin interest rates during the month of May,bringing about a total so far of 450 basispoints since December, and restoring theprime overdraft rate to a level only 50 basispoints higher than it was at the low pointof the previous interest rate downturn(10.5% at the beginning of June 2006).Impacting on business confidence is prob-ably the knowledge that the rest of theworld is in even deeper trouble than theSouth African Economy is, meaning thatexporters, and in turn, the people who selldomestically to South African Exporters,continue to face unenviable sales prospects.With over 25% of South Africa’s GDPexposed to exports, the cascade effect oftroublesome foreign sales environmentsquickly spreads through the rest of thebusiness sector. Households continue to be

confronted by the historically high levels ofdebt, and debt to disposable income ratiosthat were accumulated during the 2003 –2006 boom, and which remain far frombeing paid off. As the chart shows, debt todisposable income ratios are currently stillalmost half as high again as they were at thebeginning of the last upturn in 2003. Ifthat is the average for the household sector,and with lots of households unable to bor-row from banks at all, it is easy to imaginewhat kind of ratio levels the more adven-turous borrowers of the past five years (yea,verily, those who buy motorcars included)may be confronting. It could take monthsor years for the more tattered householdbalance sheets to be restored to the level ofrespectability that lubricates the wheels ofbank loans. This is even more true in anunusual environment in which asset prices,especially house prices, have fallen contin-uously for more than a year. Which iscause, and which is effect?

Like those who relied on the oracle ofDelphi, we could tip out the box of scrab-ble tiles in the hope of gaining insight intothe economic recovery. May tends to indi-cate that a V-shaped recovery is not goingto happen. There might have been a recentrelatively sharp recovery in items like com-modity and equity prices, and the foreignexchange value of the Rand, but interna-tional market watchers are warning of apossible W-shaped phenomenon, with therecent up-tick in these prices forming theupward sloping middle part of the dia-gram. This writer suspects that we are cur-rently at the beginning of the flat portionof a U-shaped recovery pattern, and thatwe could drag along the bottom for mostof the rest of 2009. If you prefer a greenergardening metaphor, we might see somegreen shoots as early as the third quarter of2009, but be careful how you set yourlawnmower!

by Tony Twine

Economic recoveryor Alphabet Soup?

U p d a t e

J u l y 2 0 0 942

Spirex – A Comprehensive Service OfferingHundreds of years ago, mobility was a privilege, rather than a right. You either used ahorse, or used your own legs to get from A to B, unless you were press ganged into thearmy or navy, and then you did get around, but at quite a high risk, and you did notchoose where you were going. This limited your options, and it was only the wealthy orthe fit who managed to see the world beyond their limited confines. The steam engine andthe railways improved things somewhat, but it was only after Henry Ford brought person-al mobility to the masses some one hundred years ago, that mobility took off, and then itwas still only really limited to the gainfully employed and the adventurous.

It was World War II that provided

the impetus to personal mobility,

and it became a God given right,

and owning a motor car was no

longer a sign of wealth, as it

became easily accessible to the common

man. Even then, many motorists had to

service their own vehicles, because proper

maintenance was often out of the reach of

the cash strapped motorist. Since the sev-

enties, DIY has declined, due to a more

well heeled population, and the propensi-

ty of the modern generation to eschew the

manual labour associated with vehicle

maintenance, and the proliferation of

workshops and mobile mechanics offering

good and reasonably priced service.

However, with the recent global down-

turn, and the pressing need to look after

cash flows, the DIY market is reviving,

and the younger generation is finding that

maintaining your own vehicle is not so

infra dig. The problem herein lies in locat-

ing the correct parts at good prices, and

the need for a helping hand in “how to”

when replacing, installing or simply main-

taining your car. This is where AutoZone

has stepped up to the plate, and their serv-

ice offering around their in-house Spirex

range of maintenance parts. The Spirex

range offers quality parts for the cost con-

scious DIY and workshop customer,

allowing for the service and maintenance

of vehicles at discounted prices, whilst still

fulfilling the primary need for peace of

mind.

The Spirex range, consisting mainly of

chemicals, lubricants and service parts, is

backed up by the other in-house brands,

like AutoKraft, AmPro, EcoTech and

Femo, to give the cost conscious customer

everything they need to keep their car well

maintained and roadworthy, without

breaking the bank. These parts are avail-

able from the 170 AutoZone stores locat-

ed right round South Africa, and available

at these stores are 22 DIY leaflets, offering

hints and tips on the following:

• Vehicle Maintenance Guide

• Maintaining the Cooling System

• Maintaining the Wiper Blades

• Installing the Spark Plugs

• Replacing Ball Joints and

Tie Rod Ends

• Replacing the Battery

• Replacing the Disc Brakes

• Replacing the Brake Drums

• Replacing the Brake Pads

• Replacing the Brake Shoes

• Replacing the Clutch Kit

• Replacing the CV Joints

• Replacing the Fan Belt

• Replacing the Filters

• Replacing the Fuel Pump

• Replacing the Gaskets

• Replacing the Globes

• Replacing the Oil

• Replacing the Thermostat

• Replacing the Wheel Bearings

• Replacing Universal Joints

• Replacing Worn Shocks

A further safety net is the 7 day a

week, 7am to 7pm technical hot

line at 0800 200 993 whereby any-

one with a problem can get free

expert fitment advice from the

AutoZone pit crew. And for those

with access to the web, the DIY books,

store locators, weekly specials, and much

more is available at www.autozone.co.za

The first panel discussion will be in the form of a

high level debate about Vision 2020 – is it a fan-

tasy or reality? Panel members include key figures

in the automotive industry, Dave Powels

(NAAMSA President and VWSA MD), Brand

Pretorius (McCarthy Holdings CEO), Steve

Koch (GMSA President & CE) and Charlie Eggerding (VP, QAD

Software). The panel discussion will be followed by a session

where delegates can address

questions to the panel.

A second panel discussion will

ask the provocative question:

Does the SA automotive

industry deserve a bailout?

Dr Matthews Phosa, ANC

Treasurer, Trade and Industry

Minister Maria Ntuli, Coega

Development Corporation

CEO Pepi Silinga and

NUMSA National Secretary

Irvin Jim have been invited to

participate in this discussion.

This panel discussion will be

also be followed by an interac-

tive Q&A session. The

keynote address will be deliv-

ered by Dave Powels and dele-

gates will also be hearing

about a rescue plan for the

automotive sector from Kevin

O’Marah, Chief Strategy

Officer from AMR Research,

USA. Dr Neal Bruton,

Response Group Trendline’s CEO, will discuss the status of eco-

nomic drivers for new passenger cars. Barlow Manilal, CEO of

the AIDC, says that the theme of the conference is "NAVIGAT-

ING THE STORM: A ROADMAP TO VISION 2020." The

first day of the conference takes the form of a plenary session with

plenty of opportunity for discussion and debate. The second day

sees delegates focus on specific areas of interest: Supply Chain

Development, Supplier Development and Skills Development

& Training.

Minister of Education, Dr Blade Mzimande, has been invited to

address delegates on the second day before they split into the

focus areas. Topics range from practical guides to managing sup-

ply chains for South Africa, to cost saving case studies, innovation

and the impact of attracting investment to the SA automotive

industry on the skills crisis.

Barlow Manilal, Managing Director of the AIDC, told ABR that

additional value is on offer to delegates at the Automotive

Industry Conference 2009 as part of South African Automotive

Week, which includes the only NAACAM endorsed International

Trade Show in South Africa. The Trade Show is focused on

Component Manufacturing, is for trade only and attracts buyers

and suppliers from throughout South Africa and around the

globe. Site tours to the Coega IDZ, an OEM and Fifa 2010

Soccer World Cup Stadium

are among key networking

opportunities, which also

include golf and the famous

Gala Networking Dinner on

Port Elizabeth's blue flag

beach attended by the who's

who of the automotive sector.

Barlow says, “The global

financial crisis is exactly that:

global. It means that the South

Africa economy is feeling the

pinch and the automotive

industry is equally affected by

the global downturn. It is

hurting both domestic sales

and our export efforts. But,

instead of sliding into a state

of depression over the nega-

tives influences now is the

time to work at improving

the fundamentals that will

ensure a sustainable automo-

tive industry in South Africa

in the long-term”.

"The AIDC Automotive Industry Conference will address an

industry in crisis. Industry role-players are seeing this as a plat-

form to ensure that the industry is equipped with the credible

information, resources, direction and sentiment that will allow

automotive businesses to make the right strategic decisions for

their businesses," says Lance Schultz, Project Manager at the

AIDC. Diarise the dates now! Conference fees for the two day

conference are R4,069 excluding VAT per delegate. The early bird

conference fee presents a saving of over 15% if registration is com-

pleted by 31 July 2009. Early bird fees are R3,176.00 excluding

VAT. To register, visit the

For more information about opportunities at

SA Automotive Week please contact Alastair Stead at

[email protected] call him on 041 363 0310 or visit

www.saaw.co.za.

AIDC Automotive Industry Conference 2009

43

High-level panel to debatecritical industry survival issueseTV News anchor Jeremy Maggs will facilitate a panel discussion on the first day ofthe AIDC's Automotive Industry Conference 2009, which will be hosted at the SAAutomotive Week in Port Elizabeth on 7-8 October 2009.

J u l y 2 0 0 9

Attendees will be able to rub shoulders with leading lights across thespectrum, among them, clockwise from top right: Dr Matthews Phosa,ANC Treasurer; Steve Koch, GMSA President & CE; Brand Pretorius,McCarthy Holdings CEO; Barlow Manilal, Managing Director of the

AIDC; Dave Powels, NAAMSA President and VWSA MD

J u l y 2 0 0 944

You have seen the corporate and product

TV ads for Hyundai produced with a cer-

tain amount of humour and passion for the

brand. Stanley Anderson has been the man

behind these. With the retail adverts show-

ing their range and prices, plus the list of

dealers, this also did the trick for them over

the years. Even today in these tough times

for the motor industry in South Africa,

Hyundai advertising stands out.

Q: What got you into Hyundai?

A: I was head-hunted by Hyundai ten

years ago when Alan Ross took over as the

new MD.

Q: What turned Hyundai around for

you guys?

A: We adopted Hyundai’s quality way of

doing everything. Quality products, which

Hyundai has proved over the years and a

quality way to look after customers with

service. Training and parts supply became

a big part of our business.

Q: Range of vehicles?

A The range has got better and better.

Cars and our commercials were just right

for the times at the right prices. Now we

even have 39 seat luxury coaches thanks to

our involvement in the World Cup, where

Hyundai is a main sponsor.

Q: How are you going in today’s

depressed motor market?

A: Although unit sales are down, we have

been able to gain market share, which is

one of the best ways to measure success.

Q: Has Hyundai Motor Company

in Korea acknowledged your

successes?

A: Besides Hyundai expecting them, we

have been awarded many distributor

awards over the years. The highlight was

being awarded “Global Distributor of the

year” in 2005.

Q: What experience did you have before

you joined Hyundai?

A: I was working at Mercedes Benz in

Pretoria with that other great South

African motor man, Christof Kopke, who

was the MD. I had been there for 14 years

and was pretty settled as a Product

Manager.

Q: Before that?

A: I was working for WesBank Corporate

in Pretoria after getting my B.Com.

Business Economics Degree at Tukkies.

Q: Where did you grow up?

A: In the North West Province starting in

Groot Marico, for the first 7 years: we then

moved to Richards Bay and at the age of

14 we moved to Rustenburg where

I matriculated.

Q: Schooling?

A: I went to Bergsig Hoërskool in

Rustenburg.

Q: What did you want to be at school?

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

personality and then made the decision to

go into Marketing.

Q: Sport?

A: I played rugby at school and also got

my Provincial Colours for cricket and

swimming. These days I still play hockey

for Tukkies in a Sunday league to keep fit.

Q: Who made an impression in your

life?

A: I had a solid upbringing with my fam-

ily. My coach at school, Bokkie Blignaut,

instilled in me the importance of team

work, discipline and an ability to “vasbyt’.

This has stood me in good stead in busi-

ness as well, particularly today.

Q: When you retire?

A: I would like to lecture to Marketing

students at UNISA.

Q: Would you like to work overseas if

asked?

A: No – I would like to work here in

South Africa.

Q: Married?

A: To Anthea. I also have three children.

Keegan wants to be an Architect, Zanco

wants to design computer games and our

youngest, Shannon, wants to get into

Marketing.

Q: Your ambition?

A: Hopefully to run Hyundai one day.

Q & AINTERVIEW WITH STANLEY ANDERSONSouth Africa has produced a host of top motor men who have takentheir companies from way down the list to become leaders in theindustry. Here is another such man. Stanley Anderson, the 44 yearold Marketing Director of Hyundai in South Africa. He has been theMarketing Manager and then Director of the Company sinceAssociated Motor Holdings Group and their newly appointed MD,Alan Ross, took over Hyundai. That was after Billy Rautenbachdeparted the scene leaving quite a few problems that had to besolved quickly for the sake of the brand and its many customers.

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

by Roger McCleery

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

by Marcus Haw

J u l y 2 0 0 946

Tyresand TheirContribution to Safety in Motoring

Furniture hauliersThere are two main categories here; domestic and office furniturecarriers. The similarities in the two businesses are that they aremainly volume carriers, not heavy loads. Their main routes aremostly inter city and include a lot of stop start driving, with high-way sections of under seventy kilometres.

Most common operational problem: Loads are either one way fulland empty return, or a constantly diminishing load also withempty returns.

Most common results of operational problems on tyres:Susceptibility to impact damage and irregular wear. This is due tothe tyres building heat during the loaded part of the trip whichincreases the inflation pressures. They then run in an OVER inflat-ed condition on the empty return trip.

Remedy: Run the tyres at the lowest practical pressure and reducespeeds while loaded. The SABS 1550 Standards directory willassist in using the correct pressures.

Long distance parcel serviceTrucks in this category are used in 24 hr long distance express par-cel type work. This includes constant high speed driving shortstops and heavy loads.

Most common operational problem: Non stop driving, highspeeds and heavy loads.

Most common results of operational problems on tyres: Generalhigh wear rate, often irregular wear and usually early tyre failure.This is due to the fact that these vehicles seldom get checked, espe-cially the tyres and very often the wheel alignment and suspensioncomponents as well. On top of this these vehicles are driven veryhard due to delivery time constraints. They are possibly the mostconscientiously abused vehicles in the transport industry.

Remedy: Remedying these concerns is simply to maintain thevehicle more regularly, and slow the drivers down. This is some-times difficult as these companies make their money by getting thegoods from one door to another in the shortest possible time andit seems that delivery service is more important in this industrythan tyre costs.

Supermarket type deliveriesIncluded in this category is all food, refrigerated, pharmaceuticalproducts, meat, milk etc. These operations are very similar, anddeliver in the same areas. Loads are pretty close in weight too.

Most common operational problem: Similar to the furniture guysthe main problem is a constantly diminishing load, and/or one

47J u l y 2 0 0 9

www.bridgestone.co.za

way full and the return trip empty. However these loads are heav-ier, often over the trucks weight limit. Also a lot of stop start driv-ing, and the biggest problem is the fact that they have to get intoall kinds of tight spaces to off-load.

Most common results of operational problems on tyres: Highwear rate, irregular wear and sidewall damage.

Remedy: The wear rate is hard to correct and is a direct result ofthe stop start driving. Driver training and bonuses for good tyrelife have proved effective though. The irregular wear is due to theempty one way trip and the answer is to reduce tyre pressures to aslow as one safely can. Refer again to the SABS 1550. The damageto the sidewalls is the hardest to counter, since unless you can con-vince the shopping centre architects to improve the delivery areastyres will get damaged. Driver training does produce results, but inall fairness there are some areas which the finest driver in the worldcould not get into without any damage. It is this kind of challengewhich the alert fleet controller can use to show the bosses what he’smade of. This is where the choice of tyre can save a fortune. Youcan’t stop the damage, but you can save money by buying cheap.The trips are short, the speeds are low, so buy cheap and retread.

Construction vehicles

In the construction industry, the trucks in the sizes we are dis-cussing are used in many varied configurations. They are used tocarry materials and light equipment in a dropside configuration.Water tanks are fitted and used to spread water to keep dust downand to carry water from site to site, as well as sorting fires out.Where necessary they carry explosives, tools, people, spares, rubbleand aggregate. Because of their many uses, their tyre problems arealso varied, but there are common factors for all vehicles at the site.

Most common operational problems: Extremely harsh underfootconditions; no roads, rocks, sand, mud, whatever is hidden in themud etc. Loads are usa everything and tyre valves are prone to leak-ing from dirt ingress.

Most common results of operational problems on tyres: Generalall round damage to tread and sidewalls. Low tread life, compro-mised casing life and premature failure.

Remedy: Number one is to make sure the valves have steel valve-caps fitted at all times. We have seen a cost saving of 7% in the tyrebudget of a construction company just by the conscientious use ofsteel valve caps. Secondly the correct inflation pressure will go along way to making the tyres more resilient, and resistant to dam-age. At construction sites there is usually a workshop set up but it

is pretty minimal in equipment. It is essential that the compressoris capable of inflating all the tyre types in use and that the tyres areregularly checked and corrected. It is also wise to get expert opin-ion on the pressures to use. In many off-road situations slightlyreduced pressures can be advantageous since the tyres are able toabsorb the bumps, rocks and ruts better. However, these vehiclesare usually very heavily loaded so it is necessary to be exact with thepressures.

Apart from all the above, the construction industry is another onewhere buying cheap and retreading own casings is the way to go.We must emphasise here that when we say buy “cheap” we don’tmean buy rubbish. You still need to have a good strong productand you need backup on that product. What we mean is buy thebest you can at the lowest price you can.

Local tyres have a wide price range and to put premium tyres intohigh damage operations will give no advantage. Buying cheap andnasty, unknown imports though, could work out even moreexpensive, so buy with thought. In some of these situations cross-ply tyres offer a sound alternative.

So consider your operation type and ensure your tyres and vehiclesare in a safe condition at all times.

As a point of departure, Giel Steynrecommends that we go to thesource to find out from thehorse’s mouth how the OEM’sdefine these terms. Norman

Lambrecht from NAAMSA (NationalAssociation of Automotive Manufacturers ofSouth Africa) was kind enough to providethe following definitions:

• Original equipment manufacturers(OEMs), comprising passenger car, com-mercial vehicle and bus manufacturing, aswell as sales, primarily throughdealerships.*

• Original equipment suppliers (OESs),who manufacture and supply automotiveparts and accessories directly to the OEMsfor their service networks. In this way theparts receive the reliability associated withthe brand of the vehicle, which is servicedfor nine to ten years after production of thevehicle (CBI, 2004b:10). OESs requireglobal coverage and need to provide “blackbox” solutions (solutions created by suppli-ers using their own technology to meet theperformance and interface requirements setby the OEMs).

• The independent aftermarket, which isresponsible for the manufacture and sale ofautomotive replacement parts and acces-sories. The sales take place through inde-pendent retailers and repair shops directlyto the consumer. The aftermarket also re-manufactures, distributes, retails and installsmotor vehicle parts and products, otherthan the original parts and accessories.

• First, second and third tier componentmanufacturers who supply manufacturedparts and accessories to OEMs, OESs andthe independent aftermarket. The distinc-tion between the different tiers of compo-nent suppliers is indicative of the compo-nent manufacturer’s role in the value chain.First tier suppliers (also known as sub-assemblers) are responsible for manufactur-

ing components that are supplied to theOEMs and the aftermarket. In someinstances they design certain assemblies andassemble modules, such as entire dash-boards from different components, and arethen referred to as tier 0.5 suppliers. Theyrequire design and innovation capabilities,but compared with the OESs their globalreach may be limited. Second and third tiersuppliers provide parts for first tier suppliersand also OEMs, depending on the product.The third tier suppliers supply mostly basicproducts and generally only rudimentaryengineering skills are required.

Now that we have the official viewpoint, letus take a look at what Giel Steyn sees as thebig mama; the Automotive Aftermarket. Gielviews this aftermarket as having a huge influ-ence on the industry, and mostly in anextremely positive light. He also segments thismarket into two distinct components:Aftermarket # One is the part of the aftermar-ket that is under the direct and indirect con-trol of the OEMs. This is primarily the fran-chise dealerships, who sell vehicles, both newand used, fit specialised equipment to thesevehicles under the auspices of the OEMs tomaintain warranties, provide after sales serv-ice through their workshops and parts divi-sions, and the various financial, insurance andother add ons that are also sold to the cus-tomer. All of these activities contribute signif-icantly to keeping the general populationmobile, and ensuring that this mobility is assafe as possible.

What really gets Giel’s juices flowing is whathe defines as Aftermarket # Two. This is themassive component of the automotive after-market that is under the control of the inde-pendent operators, and the significance oftheir role in mobility and safety is accordingto Giel vastly underestimated and grosslyunderappreciated. To truly appreciate this we have to analyse the South African car parc,by age:

1 – 3 years 22%

4 – 7 years 22%

8 – 12 years 21%

13 – 20 years 28%

> 21 years 7%

Traditionally the first three years of a car’s lifefalls under the wing of the franchised dealers,either through warranty or service agree-ments, and new car customers also tend tohave a stronger feeling of confidence andpeace of mind by going back to where theybought the vehicle. From four years of ageand beyond, the independent aftermarkettends to take over the maintenance responsi-bilities, although with the latest trend ofmanufacturers offering service plans to fiveyears and beyond, this has moved the curvesomewhat. Even taking this into account,one can see that at least 60% of the car parcis being looked after by the independents.And this is where the four significant factorsof Technology, Quality, Safety and Value forMoney begin to play a HUGE role! TheDiamond Dialogues now take on a newmeaning, and players in this aftermarket seg-ment need to be scrutinised for their contri-bution to these four aspects. GrandmarkInternational is one of these players, supply-ing quality product at reasonable prices, andensuring that those with older cars continueto have the benefits of technology and safety,and further giving esteem to the industry.

Giel Steyn

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

EditorialPartnership

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

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

related, and each cannot stand on their own, and together they become a motorist's best friend. Similarly, diamonds are also judged on

four characteristics, known as the “four c's” - carat, clarity, colour and cut; and of course, diamonds are a girl's best friend. Grandmark

International, as a distributor of automotive parts, is keenly aware of the need to source only the best in Technology, Quality, Safety

and Value for Money, and therefore it is appropriate that this series of articles is titled Diamond Dialogues.

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

J u l y 2 0 0 948

* The debate starts here. Dealerships

are one of the grey areas. They are con-

trolled through franchise agreements

by the OEMs, but legally they fall

under the terms and conditions of the

Bargaining Council legislation. More

on this in the next issue of ABR

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

Eco-Friendly VehiclesKlaus Langer

The race is on for more environmentally friendlymotor cars, driven by the need to arrest and reverseglobal warming, dwindling fuel resources, and therealisation by humanity that we simply cannot con-tinue our wasteful ways. Klaus Langer predicts the

end of the internal combustion engine within 15 years, and heanticipates completely new engines emerging in the next three tofive years. The original equipment manufacturers are nowengaged in a battle for survival, and in a very short space of timewe are going to see whole new cars, designed from scratch, utilis-ing significantly different power trains, and lightweight materials.Klaus sees this as an exciting era, with the industry respondingproactively and positively to the challenges. The initial signs arepromising, with examples of innovation already on the showroomfloor, and electrifying (excuse the pun) developments around con-cept cars. The consumers are still behind the eight ball, but theywill be forced to go with the flow, as small and eco-friendly vehi-cles become a statement of responsibility and maturity. All thiswill happen, sooner rather than later, because humanity hasreached a tipping point, and whereas this point requires a totalchange of mindset, its time has truly arrived.

Meeting the Needs of theConsumerMobility has become a right rather than a privilege, and thedemand for greater mobility will continue. The automotiveindustry has for over a century provided this mobility, and willcontinue to meet this demand for another century and beyond.The big difference is that the industry’s love affair with big, pow-erful, fuel guzzling internal combustion engines is coming to anend, and the future is hybrids, electric cars, and ultimately fuelcell technology will become the Holy Grail. The good news is thatthese technologies will translate into economic growth, as the newgeneration of vehicles replace the current car parc. Currently,there are some 580 million not so eco-friendly vehicles movingpeople around the planet, and the estimate is that this will growto around 1,3 billion vehicles by 2030 and an astonishing 2 bil-lion vehicles by 2050. From an environmental point of view, thesewill be eco-friendly vehicles, and from an economic point of view

the future looks bright, as the industry responds to this enormousdemand from the consumers. The replacement cycle has alreadybegun, albeit very small at the moment, with Toyota leading theway with over a million Prius’ being sold to date. The Prius hasbecome the Hoover of its age, and Toyota has upped the ante witha plug-in version to be introduced in 2010. The rest of the indus-try is playing catch-up, with all the manufacturers, from GeneralMotors in America (in a new lean, mean post Chapter 11 guise)introducing the much hyped Volt, through to the rapidly expand-ing Chinese automotive industry making serious moves withChery Automobile and BYD leading the way. BYD is a particu-larly fascinating company. Founded in 1995 by Wang Chuan-Fu,who is described by Berkshire Hathaway’s Charlie Munger as “acombination of Thomas Edison and Jack Welch”, BYD is theworld’s largest manufacturer of cell phone batteries and is alreadyselling a plug-in electric car (F3DM) with a backup petrol engine,which puts it ahead of Toyota and the rest. So much for catch-up.This has impressed Warren Buffet of Berkshire Hathaway to theextent that he has purchased 10% of this company, and wouldbuy more if allowed to.

More on this and much more in future Tipping Point articles.

A series of articles based on interviews with Klaus G. Langer, an inde-pendent supply chain consultant and self confessed environmentalistwho proudly sees himself as a “Cultural Creative”, which is an influen-tial group of new progressives who are disenchanted with materialismand hedonism, and who are at the forefront of prodding mankind to movefrom conventional to rational and responsible thinking, and to encour-age participation in an ethical expansion, focusing on “balanced ratherthan negative reciprocity”

The BYD F3DM at the recent Shanghai Motor Show

J u l y 2 0 0 952

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

It was the briefing on 8th June 2009

by the recently appointed CEO of

Mahindra South Africa, Ashok

Thakur, that had me clearing my

throat, and whilst I may have a

weight problem, as far as the demise of the

motor industry is concerned, the fat man

is not about to sing. When we do sing, it

will be about the resurgence of the auto-

motive industry both globally and locally

in the not too distant future. Mahindra

definitely believes this, and they have

promised an announcement within three

months about the details of local assembly

of the Mahindra, in both left hand and

right hand versions, to service southern,

western and central Africa, and who

knows, even the American market if their

AGOA calculations prove promising. Yes,

Mahindra is planning to invade America

at the end of 2009, as they feel the down-

turn in the States is an opportunity, with

buying habits changing to more afford-

able, thrifty, rugged vehicles, and an alter-

native for which the American motorist is

now receptive. Ashok Thakur disclosed

that 300 dealerships will be established for

the launch, and that significant volumes

are expected. General Custer would be at

his wits end!

To back up these projections, Mahindra is

investing over US$1 billion in a green

field facility in Chakan, India, whilst also

looking at local assembly where possible

to take manufacturing to important mar-

kets, as there is over capacity worldwide,

and the possibility of joint ventures that

would previously be undreamed of is now

on the cards. For example, Mahindra

builds the Logan in India, and it utilises

the facilities of Bavaria Auto

Manufacturing Co. in Egypt to assemble

the Scorpio, side by side with the BMWs

assembled in the self same factory, on the

self same lines. Could we soon be driving

Scorpios assembled in Rosslyn, with the

expatriate workers being exhorted to

“Build Mahindras, Wolfgang!”? It is all a

manifestation of the globalisation of the

automotive industry and the blurring of

competitive lines, as the industry struggles

to cope with the new realities. Mahindra is

obviously taking advantage of these reali-

ties, as it increases its global footprint in

off-road vehicles, trucks, tractors and two

wheelers. Mahindra is also eschewing the

new age technologies, by sticking to the

tried and tested when it comes to environ-

mental initiatives. Ashok revealed that

Mahindra has no immediate plans to

develop hybrid and electrical vehicles,

rather focusing on the bio fuel, CNG and

stop-start expertise it has, and to meet

emission standards with a current genera-

tion of engines that meet Euro V require-

ments. A pragmatic approach, which is

the hallmark of Mahindra & Mahindra

worldwide, and with a track record of

note, Mahindra seems to succeed in what-

ever they do. Take tractors, for example.

Mahindra has over 40% market share in

India with their tractors, which are ideal

for the smaller farmer. They are now look-

ing for growth in South Africa, with four

models soon to be homologated, and they

displayed at the recent NAMPO show in

Bothaville, and reported keen interest,

particularly from the emerging farmers.

In conclusion, it is clear from recent

media functions that the attitude of the

motor manufacturers is one of “Life Goes

On”, and if the banks could now start to

play ball from a financing point of view,

we could expect a modest upswing sooner

rather than later. It is time to put our trou-

bles behind us, and to not allow the bear-

ers of bad tidings to fulfil their prophecies.

We must wrest the future away from these

harbingers of doom, and to ride confi-

dently into the night. Our gambit is one

of confidence, and the game of chess does

not allow the Knight to take the Queen

without a fight.

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

Life Goes On

By Austin Gamble

The recently appointed CEO of Mahindra

South Africa, Ashok Thakur, is optimistic

about the future

J u l y 2 0 0 954

With Timken suffering a poor start to the 2009 sea-son, it was a case of do or die for the team at EastLondon, particularly for Hennie Groenewald, whoif he was to have a decent chance of defending his

championship title for a record 4th time in a row, would need topull out all the stops. With the Timken duo languishing in 8thand 9th position after rounds five and six, something had to give,and the Timken Team was going to ensure that it was not them,with fastidious preparation at Zwartkops the week before, andbringing the Holden Commodore out of mothballs as back-up forthe East London meet. This proved to be a wise move, with oneof the Jags breaking a crankshaft during Friday’s practice.

During practice, the Timken top guns were blisteringly fast, withboth the Jags and the Holden proving to be very quick, andHennie recording the fastest lap time, and Richard close behindwith the 3rd fastest lap. Unfortunately, Richard came a cropper atPotter’s Pass during practice, going off at 262 km/ph (telemetrytells the tale!), and this spin took a psychological toll. As Richardsays, “When you hit the grass at this speed, and you lose all con-trol of the vehicle, you are at the mercy of a car with a mind of itsown. No matter what miracles you can achieve on the skid pan,and all the theories about under steer and over steer, at a time likethis, with the weight of the car and the very high speed, you sim-ply go into survival mode, and pray that you don’t hit anythingsolid. Funnily, the major concern that goes though your mind isnot your physical danger, but the cost implications if the car isseriously damaged.” And the chances of damaging a car at SouthAfrica’s fastest race circuit are high, with the V8’s hitting speeds ofup to 290 km/ph at Rifle, and then braking down to 70 km/phfor the turn. This makes the East London track a great drive, butit does demand high concentration levels. Coming back to thepsychological toll, Fridays’ spin did affect Richard, as he was a lit-tle too circumspect in qualifying, taking at least a second off hispace, and ending up at 8th on the grid. But the psychologicalaspect worked in Hennie Groenewald’s favour, as even though

there was practically nothing to choose between the Jags and theHolden when it came to lap times during practice, the differentfeel of the Holden gave Hennie an extra boost of confidence – inthe racing game, they call it a “mind thing”. Thus Hennie tookpole position, and the die was cast for his great fight back, andwins in both heats. Hennie led from start to finish in the first race,with the other racers made to look very ordinary as they followedin his wake, with Richard struggling with a car that kept jumpingout of first gear, which meant a radical revision of his driving stylefor eight laps, something he likens to riding rodeo – the only dif-ference is that in this rodeo he had 600 horses to contend with!But it was the second heat that proved the class of Hennie.Starting at the back of the grid (the inversion rule giving ClareVale another gender bending pole position), Hennie worked hisway past 12 drivers to take the chequered flag, but not before agreat dice with 17 year old Brandon Auby on the penultimate lap.A case of experience and skill trumping youth and enthusiasm.Unfortunately, Richard Pinard’s woes continued. After moving upand toughening it out at 2nd position, he was bumped atCocabana Corner, which caused wheel alignment problems, andthen in the final lap he has another “coming together” beforebeing T-boned at the self same corner, which meant a long walkback to the pits.

Two final points. Richard Pinard pointed out that the EastLondon circuit is under threat from developers who want to turnthe track into a housing estate. He has appealed to the racing fraternity to stand up and be counted, and to ensure that this his-torical track does not go the way of so many other iconic venues.It should be remembered that the very first South African GrandPrix was held here in 1936, and Richard says he sees it as a privi-lege to race on this track. A privilege that is worth fighting for.Secondly, Richard also wishes to thank Timken for their support,and expresses his gratitude to the companies that provide thesponsorship to keep such a wonderful sport alive and vibrant.

F r o m t h e C o c k p i t

Groenewald Shows his ClassThe Wesbank V8 Championship is South Africa’s premier motorsportformula, and Automotive Business Review brings you the action fromthe heart of the battle. Richard Pinard, part of the dynamic Timkenduo, gives a track review from the cockpit of his 450kW V8 Jaguar.In this issue, we get a glimpse of the guts and glory in Rounds sevenand eight at the high speed East London Grand Prix Circuit onSaturday, 6th June 2009.

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

(keino@quickpic)

I n n o v a t i o n

56

The Automotive Supplier Park in Rosslyn, north west of Pretoria, hasbeen the venue for many interesting and cutting edge seminars andforums, and on the 4th June 2009 it was no exception when DassaultSystémes, in partnership with CDC, presented the CATIA PLM Forum2009, to experience, learn, and collaborate around the latest updates

on Dassault Systémes products and solutions, on their various platforms, includingCATIA, DELMIA, ENOVIA, SIMULIA and 3DVIA.

For the uninitiated, PLM stands

for Product Lifecycle

Management, and the purpose of

the forum was to reemphasise

how PLM can rapidly help com-

panies save costs throughout product devel-

opment and manufacturing processes. It

enhances product innovation and style dif-

ferentiation, reduces time to market, pro-

motes eco-design and in these stressed eco-

nomic times, it has the added benefit of sav-

ing money, from requirements management

to product optimisation through simulation

and supplier sourcing management, as well

as the optimisation of multi-site collabora-

tion for product and process definition and

reduction of manufacturing downtime.

Laurent Couillard, Vice President Value

Selling Europe for Dassault Systémes, gave

the keynote presentation “PLM for

Innovation and Growth”, emphasising the

fact that in the current economic climate,

companies must radically change the way

they conduct business and how they interact

with customers to achieve a competitive

advantage. This to a large degree depends on

companies’ flexibility and ability to adapt

themselves to the new economic environ-

ment and their ability to reinvent the future

through innovative thinking and behaviour.

PLM is a vital cog in this process, as it allows

you, as Laurent puts it so succinctly, “to see

what you mean”. In other words, PLM is the

conjunction of the real world with the virtu-

al world. Recent examples of the effective

use of PLM is the “Bird’s Nest” Stadium

designed and constructed in record time for

the 2008 Beijing Olympics, and this engi-

neering feat shall be repeated with an east

European flavour with the design and con-

struction of the main stadium to be used in

the Euro Cup in Poland in 2012.

Dassault Systémes is the world leader in

PLM solutions, mainly because of their

devotion to research and development (43%

of their 7 800 employees are dedicated to

R&D!) and the strong commitment of the

shareholders and management, which allows

the company to deliver unique 3D solutions

for most industries and consumers, includ-

ing aerospace, automotive, shipping, indus-

trial equipment, high tech, construction,

consumer goods, packaged goods, life sci-

ences, energy and business services. The

automotive industry utilises Dassault

Systémes extensively, with iconic brands

such as Bosch, Ford, Toyota, Daimler,

Nissan, Michelin, BMW, Honda, Volvo and

Peugeot/Citroen utilising PLM technology.

PLM is extremely versatile, from virtual

shopping experiences through to molecular

modelling, medical/pharmaceutical training,

fabric simulation to assessing environmental

impact, which Laurent describes as “3D for

all”. It is all based on the reality that to work

quicker and smarter, we need:

• A virtual universe – to understand

• Communities – to talk to each other via

social networks

• Sustainable supply chains – the capacity to

get to these communities in a sustainable

way

• Knowledge trading – the utilisation of

knowledge and the trading therein

• People and environment friendly focus –

this is the be all and end all

Thus the move from PLM V5 to PLM V6,

to get it right digitally before implementa-

tion in the real world, which dramatically

shortens engineering change. Innovation is

basically the sum of experience, conceptual-

isation and technology, and PLM tools

allows one to capture this experience, imag-

ine a concept and to develop the technology,

all in rapid order. This leads to the increase

of a company’s asset value, the escalation of

a company’s image and the strengthening of

a company’s competitiveness. An excellent

example of this in action is TATA. In a very

short space of time, which in years can be

counted on one hand, TATA’s international

image has rocketed from nowhere to a spot

in the top 15, and this can be largely

ascribed to the NANO – a stroke of genius

which could only come from experience,

conceptualisation and technology being

wrapped into warp time, greatly assisted by

PLM techniques.

See What You Mean

The TATA Nano – PLM in action

Laurent Couillard, Vice President Value Selling Europe for Dassault Systémes

J u l y 2 0 0 9

By Austin Gamble


57

The 16th World Congress and Exhibition on Intelligent

Transport Systems and Services (ITS) will take place at

Stockholm International Fairs (Stockholmsmässan) from 21 –

25 September 2009. The theme of the event is ‘ITS in Daily

Life’, exploring how ITS can improve everyday mobility with

strong emphasis on co-modality and ITS solutions for all trans-

port modes. It will offer visitors the opportunity to experience

an array of Technical Visits and showcases as well as featuring a

demonstration theatre within the exhibition hall. The Technical

Visits can be attended by any participant for a modest fee of 25

euro. Transportation to the Technical Visits will be conducted

in hybrid ethanol buses which are fitted with the latest ITS sys-

tems on the market. The Demonstration Theatre in the exhibi-

tion hall will offer visitors an opportunity to experience five dif-

ferent scenarios per day demonstrating how ITS in daily life

ensures a more efficient, safe and secure future using green solu-

tions. The 30 minute demonstrations are free to attend and

cover the following areas: Secure transports; Cooperative sys-

tems; Safe and sustainable transport solutions; Extended e-

transactions – the base for ITS deployment; Daily commuter.

In addition to the Demonstration Theatre, other free-of-charge

demonstrations will take place alongside the Congress and

Exhibition. Highlights include the outdoor Experience Park,

where visitors will have the opportunity to try out the latest

state-of-the-art ITS applications and technologies of the future

on a small-scale model roadway and a joint demonstration site

from four Swedish transportation authorities, giving live

demonstrations of Traffic Control Centres for railway, aviation,

maritime and road will show a number of different weather sce-

narios, traffic disturbances and crises. The Exhibition will offer

a unique opportunity to visit over 170 exhibitors and meet key

buyers from around the world, with particular emphasis on traf-

fic safety, mobility for vulnerable users, implementation of well-

coordinated ITS projects and services and multimodality/co-

modality leading to cleaner climate. In addition, other ITS-

related topics will also be exhibited. The Congress will run

alongside the exhibition and include 245 sessions relating to all

modes of transport (road, rail, aviation and maritime). There

will be many opportunities to take part in the ITS World

Congress and Exhibition as a delegate, speaker, exhibitor and

visitor. To register your interest or find further information,

please visit www.itsworldcongress.com.

SKF South Africa is sponsoring the winning Auby Boyz Race

Team in the V8 Super Cars in 2009. The Swedish multi-nation-

al, SKF, has been actively involved in motor sport sponsorship for

a number of years. “SKF has enjoyed one of the longest technical

partnerships in the history of motor racing with Scuderia Ferrari

in Formula 1 and, amongst others, also sponsor NASCAR in the

USA”, says SKF Automotive manager, Marchant Taylor, and

adds that local sponsorships have been equally successful.

“Motor sport sponsorships are particularly rewarding. Motorcar

racing is such a powerful, thrilling and very demanding environ-

ment and, as a knowledge engineering company, we combine

technical know-how with product superiority to offer automotive

rotating equipment solutions and play an active supporting role

in motor sport”. The formidable Auby Boyz Race Team currently

competes in the Wesbank V8s, with two Jaguars driven by Marc

and Brandon and Deon driving a Chevrolet.

SKF SOUTH AFRICA ON THE V8 FAST TRACK WITH THE AUBY BOYZ RACE TEAM

Experience the latest ITS technologies at the 16th World Congress

and Exhibition on Intelligent Transport Systems and Services

J u l y 2 0 0 9

J u l y 2 0 0 958

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

Powerful and inspiring words, which would encourage anystakeholder, be it current or potential. Let us look atBarloworld’s Vision, which is “to be a recognised globalmarket leader in the provision of integrated solutions in

distribution, rental, fleet management, product support and logis-tics to customers in our chosen business segments”. Now for thecompany overview as gleaned from Barloworld’s website;“Barloworld is driven by the maxim of creating sustainable valuefor all its shareholders. The group offers its global customer baseintegrated business solutions backed by leading internationalbrands.” This is all distilled into the most powerful statement ofall; “What sets us apart is our ability to develop and maintainmutually beneficial long-term business relationships. We like tocall it the Barloworld Way”.

The reason for this introduction is toexplain the ethos behind BarloworldMotor Retail’s decision to become aCapricorn Society supplier. BarloworldMotor Retail is one of the chosen businesssegments as described above, sharing cen-tre stage with the equipment division, carrental operations, fleet services, and thehandling and logistics divisions. It wouldtake reams of paper to do justice to allthese operations, suffice to say that they allfollow the words of Clive Thompson andfit nicely into Barloworld’s Vision. This isthe message ABR took on board when itinterviewed Pieter Haak, General ManagerAfter Sales of Barloworld Motor RetailSouth Africa. Pieter Haak describes thesephilosophies as “Fewer, Bigger, Better”,underpinned by a conservative and ethicalapproach. Thus, when he was approachedby Rob Mildenhall, Capricorn SocietyLimited Business Development Managerfor South Africa, he did not immediatelyjoin as a supplier, even though he and Robhad served together on numerous industrybodies, and he knew the qualities of theindividual. He needed to be 100% sure ofthe viability and sustainability of the organ-isation, and he also needed make sure thatthe ethics of the Society fitted the

Barloworld values. Early on in hisresearch, his mind was soon put to rest.Capricorn Society Limited was formedin 1975 in Western Australia and sinceits inception it has had an impeccablereputation for integrity and it has nevercompromised on its strict eligibility cri-teria for workshops and suppliers.These values were carried through tothe other Australian states, then NewZealand and South Africa as theSociety expanded, and now theCapricorn Society can rightfullyappropriate and share Barloworld’sclaim of “developing and maintainingmutually beneficial long-term busi-ness relationships”.

Barloworld Motor Retail became a Capricorn supplier some fouryears ago, and the wisdom of Pieter Haak’s decision is validated bythe fact that the Society in now one of the top ten accounts for thedivision. Capricorn members can now leverage off Barloworld’sstrength in motor retail, which includes Volkswagen/Audi;Mercedes-Benz; Chrysler; Ford/Mazda; General Motors; BMW;Toyota and Subaru dealerships, sourcing their parts from hub andspoke operations in Gauteng, Mpumalanga, Western Cape andKwaZulu Natal. The benefits for Barloworld Motor Retail arenumerous, including improved turnover, the prompt and guaran-teed payment of one account covering many small workshops,increased exposure, and the knowledge that their extended car parcis being maintained by genuine parts whenever a Capricorn mem-ber gets involved. Likewise, the Capricorn members get the bene-fits of price, availability, rebates and less administration. A finalword from Pieter Haak – “My relationship with Rob Mildenhalldoes help, but to be totally honest, his persistence in promotingthe benefits of Capricorn, both for members and suppliers, andthe assistance and help that he and his staff provide, makes it apleasure for the suppliers. He will move heaven and earth to assistand help, and this makes the difference.”

I n s i g h t s

To join Capricorn Society Limited call Rob Mildenhall on083 654 2094 or e-mail him at

[email protected] or visit their website onwww.capricorn.com.au

Pieter Haak, GeneralManager After Sales,

Barloworld Motor RetailSouth Africa

Q & A

J u l y 2 0 0 960

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

by Roger McCleery

Answers on page 65

1. What company has signed an alliance with Chrysler in the United States?

2. What company has taken over Hummer?

3. Where is Hummer going to be made?

4, What company sold the most passenger cars in May?

5. What is the top selling LCV (Bakkie) in South Africa?

6. How many people have walked on the moon?

7. When refuelling a Grand Prix car, how many litres of fuel does the car receive per second?

8. What company sponsors a GT Challenge racing series for mainly Porsches and Ferraris racing in South Africa?

9. Who is the current President of the FIA?

10. Name two international motor races run at Kyalami this year.

11. Name South Africa’s only Formula 1 World Champion.

12. What city does he come from?

13. Name three Jewish South African drivers who have competed in Formula 1 Grand Prix Racing.

14. Name the current three-times South African WesBank V8 driving champion.

15. What company sponsors the racing V8 driven by Hennie Groenewald?

16. Who holds the South African Land Speed Record?

17. At what speed?

18. What is the maximum length and time of a Formula 1 Grand Prix?

19. Who is the SAGMJ’s Journalist of the Year?

20. What makes of car leads the World Rally Championship after seven rounds?

W i l d e T h i n g s

61

A Call to AlmsMy column in the June 2009 issue of ABR caused quite a stir. In one fell swoop I managed to piss off a third of South Africa’selectorate and the entire soccer world, all aflame about my com-ments on the quality of their grey matter. At last, confirmationand affirmation that I must be doing something right! Now, to balance the scales, I am about to have a go at that citadel of

masculinity and testosterone, a mere stone’s throw away from the Union Buildings,where strange creatures, with horns on their heads, rings through their noses, andtheir bodies daubed in blue, pay homage to grown men indulging in steamy physicalcontact, popularly known as rucking (too close for comfort to the term rutting), andwith an unhealthy obsession in getting hold of an oval ball. This temple of worshipis known as Loftus Versfeld, or for the true aficionados, just Loftus. The gay pastime that is played here is widely referred to as rugby.

Before I go on any further, I need to

come out of the closet. I do watch

this spectacular display of creatine

and iron pumping inspired combat. I

actually enjoy it, as I believe that rugby

union, when played properly, is the best

sport on the planet. And the spectators at

a rugby match are generally far better

behaved than the soccer louts, inside and

outside the stadium. Someone once said

that soccer is a game designed for gentle-

men, played by hooligans, and that rugby

is a game designed for hooligans, played

by gentlemen. I’m not going to argue with

this, but what about the spectators. The

less said about the soccer yobs the better,

but recently the rugby spectators appear to

be going the same route. And it is at

Loftus, where the blood runs blue, that

this malady is manifesting itself in the

form of boorish and unwelcoming behav-

iour. I have long lamented the insufferable

behaviour of spectators booing the visiting

side, the referee and that particularly

unsporting bit of booing and jeering when

the opposing side takes a kick at the posts.

This is bad enough and must stop. But

recently, when Luke Watson visited

Loftus, he was subjected to an incessant

barrage of booing and worse by a distinct-

ly unfriendly crowd, simply because of

some comments that he had made. Yes,

Luke Watson is his own worst enemy, but

that does not give anyone the right to

behave so badly towards a visiting team.

What has happened to the simple concept

of courtesy? Once again, at the semi-final

and the final of the Super 14, the

Crusaders and the Chiefs were met by a

cacophony of hoots and howls, and I was

truly dismayed. It is time that the officials

and the rugby players do something about

this. Not just

at Loftus, but at

every rugby ground

in South Africa.

Manners must

come back to this

wonderful game.

How do we do this?

We do this through

the players, who

surely the fans will

listen to. I’ve

noticed that most of

South Africa’s rugby players (and a good

portion of the New Zealand lot as well)

make the sign of the cross after scoring,

and cast their eyes to some higher power

above and even make some pointed ges-

ture to this deity above. A few seasons ago,

Jaco van der Westhuyzen took this wear-

ing of your feelings on your sleeve to even

greater heights by wearing this on his

chest. It has also become de rigueur for the

captains and the man of the match to

thank God (usually referred to as the

Skepper) for having given them such

amazing talent, so I can safely assume that

rugby players in the main appear to be

committed Christians. Thus my appeal

goes to these bearers of the faith to apply

their fervour to converting the poorly

behaved fans on the bleachers. I definitely

am not a theologian, but I’m going to use

some scripture to get my message across.

Firstly, I quote from 1 Peter chapter 2,

verses 15 and 16; “For it is God’s will that

by doing good you should silence the

ignorant talk of foolish men. Live as free

men, but do not use your freedom as a

cover-up for evil; live as servants of God”.

I am sure that you guys will agree that

booing visiting players is the equivalent of

the ignorant talk of foolish men, and that

by staying quiet about this unacceptable

abuse you are abusing your freedom, and

that as servants of God you should be

scolding the fans for their behaviour.

Need more? How about the second and

fourth commandments? You shall love

your neighbour as yourself definitely does

not gel with how your fans are treating the

visiting neighbours. And you are definite-

ly not honouring your father and mother

if you allow this sort of abuse in your

name or your team’s name. Need more?

What about Christian charity, and giving

alms to the poor. Alms is not just about

giving money, it is about intercessory

prayer and acts of mercy. Believe me,

getting the fans to keep quiet while you

are delivering a rugby lesson is indeed an

act of mercy, and by interceding you are

doing God’s work. I could go on and on

with messages from the Bible.

Thus ends this lesson. In future, I expect

to hear a pin drop when a kick is taken at

Loftus, no matter who is taking the kick.

Anyone for side bets on this happening?

J u l y 2 0 0 9

by Fingal Wilde

On the left is the cranium of a well behaved rugby spectator, and on the right the cranium of a yob.

R o b e r t B o s c h

J u l y 2 0 0 962

From Innovation to Standard Equipment – 30 years of safe braking with Bosch ABS

Better and safer braking started to exercise the minds of

automotive engineers in the early part of the twentieth

century, when it was realised that the locking of the

wheels was the chief culprit in accidents, not only in cars,

but also in railway vehicles and even in airplanes, and as

early as 1936 Bosch was already at the forefront of this

thinking when it was granted a patent for “a mechanism to prevent lock-

ing of the wheels of a motor vehicle”. The development of anti-locking

systems was a slow and tortuous process, with the early designs too com-

plicated and therefore prone to failure. The breakthrough came in 1964,

when Teldix began development work on the first fully electronically

controlled system. The basic structure of this design, known as ABS1,

can still be found today in nearly every ABS. The problem in the early

development was that the roughly 1000 analogue components and safe-

ty switches meant that the reliability and durability of the electronic con-

trol units were not yet good enough for volume production. The next

breakthrough came in 1975 when Bosch acquired ABS development

form Teldix, and the know-how of the Bosch engineers combined with

the increasing possibilities of digital technology, including integrated

circuits, meant that the number of electronic components could be

reduced to 140. After 14 years of intense development, everything final-

ly came into place in 1978: the first system, known as ABS2, went into

series production at Bosch, first been fitted as optional on Mercedes-

Benz S-Class vehicles, and shortly afterwards in BMW 7 series cars.

The ABS system was further enhanced in 1986 by the TCS traction

control system and in 1995 by the ESP® electronic stability programme

– and once again, these systems were Bosch innovations. In 2007, more

than three quarters of all new vehicles worldwide were equipped with

ABS. At world market leader Bosch alone, some 21 million braking

control systems rolled off the production lines in 2008. Now, it is as if

ABS has been with us a long time, and in Europe, the U.S., and Japan,

ABS is now standard equipment on all vehicles, and the ESP® electronic

stability programme is increasingly replacing ABS as a standard feature,

and this trend is accelerating, encouraged by the regulation in the U.S.

mandating the gradual introduction of ESP® in all light vehicles up to

4.5 tonnes gross weight by model year 2012. Europe has passed similar

legislation, and in emerging markets ABS is also becoming the norm,

with Brazil taking it to heart, and already in China two out of every three

passenger cars features ABS.

More on ABS in the next issue of ABR.

30 years of Bosch ABS –development milestones

1936 Bosch is granted a patent for “a mechanism to

prevent locking of the wheels of a motor vehicle”

1970 ABS 1 prototypes perform all the required func-

tions, with functional safety limitations

1978 Series production of the first antilock braking

system

1985 Bosch ABS installed in US vehicles for the first

time

1987 TCS (traction control system) goes into series

production

1989 ABS 2E is the first to feature a control unit

mounted directly on the hydraulic modulator

1993 Series production of the Bosch ABS 5.0

1995 Introduction of ESP® electronic stability

programme

1998 Bosch starts production of ABS 5.7

2001 Series production of Bosch ABS 8

2003 100 million ABS systems

2004 ABS becomes standard equipment in all 15 EU

member states

2008 30th anniversary of series production of ABS

Bringing a car to a safe stop was not upper-most in the minds of the early automotivepioneers, who had bigger fish to fry inengine development, suspension improve-ments and drive line technologies. Brakingwas then seen as a necessary inconvenience.

J u l y 2 0 0 964

The Deep Roots of the GoldfieldsThe mines are deep in the goldfields of the north western Free State. So are the rootsof many who live in the Welkom, Virginia, Odendaalsrus triangle. It is these roots thatsustain this close knit community and it’s these roots that gave Ben du Plessis and WillieClaassen the strength to start up du Plessis and Claassen Service Centre, situated at216 Jan Hofmeyr Street, Welkom, in the heart of the motor trade in this mining town.

The sun is rising on Willie Claassen and Ben du Plessis, with amodern workshop staffed by highly qualified technicians, offering60 years of Mercedes-Benz technical experience and know-how,

backed up by the e-CAR concept

It takes courage and drive to start your own business in the prime

of your life, and to leave the cosseted confines of the corporate life.

It takes even more courage to start from scratch, but this is exact-

ly what Ben du Plessis and Willie Claassen did, sinking their life

savings into a business venture during the height of a global economic

crisis. Courage comes from crisis, but this was not a spur of the

moment decision. Having worked together for 20 years at the local

Mercedes-Benz dealership, and being close friends during this time,

Ben and Willie had for many years discussed this possibility during

their frequent hunting trips to the Waterberg. It may have been a

sub-conscious imperative, but they were simply waiting for the right

opportunity, as they did not just want to, in the words of Ben, open a

workshop “onder ‘n boom”. The catalyst came in the form of the

Johannesburg Motor Show in October/November 2008, when Ben was

perusing the show catalogue and came upon the e-CAR concept. After

contacting e-CAR and after two insightful briefings, Ben and Willie

knew that they had found a home, and the time had arrived for this

dynamic duo to divest themselves of their “corporate comfort zone”,

and to tackle a new and exciting challenge. The wheels were put into

motion, and on the 8th May 2009, du Plessis and Claassen Service

Centre was officially opened.

The business became an instant success, and with barely two months

under their belts, Ben and Willie can already declare with absolute

certainty that they have made the right decision. They ascribe their

Welkom roots as having played a central role to their success, as their

clientele comes from the local folk and the surrounding farming

community, the ties to which Willie and Ben have built up over many

years, and this local knowledge and inside track made the venture that

much easier. The e-CAR name and its links to the Bosch standards

relating to equipment and training also played a major role in the seam-

less transition from a corporate culture to a more family orientated

culture. Whilst e-CAR has its rules and guidelines, Ben and Willie love

the more informal attitude and the independence granted to them by

an organisation focused on excellence with a personal touch. This

support covers the whole gamut from technical, parts, training, market-

ing, all key to the success of a modern workshop, but what Ben and

Willie truly appreciate is the ethical and moral support which e-CAR

lends to them, aspects that are sometimes undervalued in the hurly

burly of the business world.

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

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

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

65

Logan’s RunRenault was the first French brand to return to South Africa inthe 1990s, in a deal with Imperial which saw them launch theLaguna into a market hungry for variety. It heralded the end of a

10 year hiatus, Renault finally giving up on South Africa and its divisive politicsin 1985, closing shop in the wake of PW Botha’s infamous Rubicon speech onAugust 15 that year.

It also brought the curtain down just as it was going up: in

1984 the Renault 5 (despite being near the end of its life-

cycle) and newer 9 were both selling strongly, keeping a

well-developed dealer network busy. In 1981 about 7 500

R5s were sold, and in 1984 some 10 000 R9s found

homes, numbers which made Renault a mainstream player, if not

quite in the same league as Ford and Toyota. Renault South Africa

existed as an entity in its own right to handle sales and marketing

while the cars were being assembled in Durban by Toyota’s Motor

Assemblies operation – as the 5 had been since the mid-70s. The

brand had a solid reputation for economy combined with the ride

comfort of more expensive cars. Prior to Toyota’s involvement (the

brand also marketed the 5 in the earlier years) Renaults had been

assembled in East London, with the rear-engined R8 and the

slightly larger R10 flying the brand’s flag from the middle 1960s

to the early 1970s. For those after spacious hatchbacks there was

the evergreen R16, which had a 10 year lifespan. Meanwhile, the

imported - and pricey - R8 Gordini and locally-developed - but

much more affordable - R10 Alconi were doing wonders for the

brand’s reputation on racetracks. A young man called Jody

Scheckter cut his teeth in the former.

While there weren’t any new Renaults available from end-1985

until mid-1996, the brand was kept alive by enthusiasts, aided by

France’s pragmatic approach to at least supplying parts. To this

day, the 5 and 9 remain a surprisingly common sight on our

roads. Imperial’s decision to start importing and distributing the

quintessentially French brand put them at the forefront of our

industry’s rapid regrowth in terms of new badges in the post-

apartheid era. By the end of the century Renault was doing nice-

ly with a range of Meganes and Lagunas on offer. There was also

a luxurious saloon called a Safrane but the less said about it the

better. After the Great War Renault had a reputation for building

impressive large cars, including some with a giant 3.7 metre

wheelbase. The company’s inability to build large cars latterly

(think the outlandish Vel Satis and interesting but flawed

Avantime) has only been matched by its French cousins Peugeot

and Citroen, who should also learn to stick to their knitting.

And that has largely been the case since World War II, and it was

post-conflict that Renault was nationalised, company founder

Louis Renault dying in prison while waiting to be tried for

allegedly collaborating with the Germans. Small cars like the

4CV and Dauphine becoming the company’s stock in trade,

Renault then doing a design about face at the beginning of the

1960s when they changed to the front-engined, front-drive R4.

The 4 CV was imported to SA from 1953 by Curries Motors and

Renault Africa was formed in 1958. Renault lost huge amounts of

money in the early 1980s, causing a major shake-up in which they

sold many key assets and retrenched thousands of workers, a deci-

sion which was said to be the justification for the assassination of

MD Georges Besse at the end of 1986. His policies stemmed the

tide of red ink though and the company’s ability to compete inter-

nationally was further aided by privatisation at the end of the 80s.

The company has recently celebrated 10 years of the Renault-

Nissan alliance, an arrangement whereby Renault owns 44.4

percent of Nissan which in turn owns 15 percent of Renault. By

the early 2 000s Renault was the darling of the local media: the

Clio 1.4RT was chosen as the Wesbank Car of the Year and in

2004 the bustle-backed Megane II also took the crown. Sales grew

rapidly from about 10 000 units in 2000 to 18 625 just five years

later, market share peaking at a shade under five percent. Renault

South Africa (formed in 2002) seemed capable of doing no

wrong. But since then things have gone pear-shaped and

the brand has fallen out of favour: sales dropped in ‘06 and

plummeted in ’07 and while they’re not the only ones to suffer in

that regard, share was down to 1.38 percent last year.

However, the company seems to be on the comeback trail in

South Africa and not only is there a rush of new product (not least

of all the affordable Logan and Sandero twins) but the brand is

adamant that their issues with indifferent dealers and poor parts

availability and pricing have been addressed. So far this year

(January to May) they’ve sold 1 304 units with share starting to

climb too. Much of it is on the back of their ‘cheapies’ and

Logan/Sandero seems to be the right product at the right

time...and not a moment too soon either.

J u l y 2 0 0 9

by Adrian Burford

1. Fiat

2. Tengzhong – China

3. Shreveport USA

4. VW

5. Toyota Hi-Lux

6. 12

7. 12

8. Altech

9. Max Moseley

10. A1GP, World Super Bikes

11. Jody Scheckter

12. East London

13. Jody Scheckter, Ian Scheckter

and Eddie Kaizan

14. Hennie Groenewald

15. Timken

16. Johan Jacobs in a Jet Car

17. 504,554 km/h

18. 305 kms or two hours

19. Egmont Sippel

20. Citroën

Answers From page 60

J u l y 2 0 0 966

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

Bloemfontein is known as the City of Roses, and things

were indeed blooming at the City Hall, where the

Partinform Automotive Trade Show was held on

Wednesday night, 17th June 2009. 260 attendees were

on hand to participate in the action, and by the end of the night,

every one of them left with a better understanding of the impor-

tance of selling or fitting well known brands, with local support and

back-up. It was while observing the goings on during the show that

I wondered what Johan Nicolaas Brits would have made of all the

fuss, and his take on the amazing advances in the means of mobil-

ity, and the emphasis on quality, roadworthiness and safety, and the

commitment of the purveyors of the components that make all

these good things happen. Farmer Brits was the fellow who owned

the farm that became a British outpost in 1846, and where the city

of Bloemfontein was established by the trekboers. Bloemfontein is

famous for its roses, but even more famous for its Cheetahs rugby

side, named co-incidentally or purposely after Manguang, the

Sotho name for the city; and meaning “the place of cheetahs”. This

was also the birthplace of such luminaries as J.R.R. Tolkien, Zola

Budd, Allan Donald, Leon Schuster, Hansie Cronje and many

more, and if a conurbation is the sum of its parts, these celebrities

hold the key to understanding that Bloemfontein is a fusion of cul-

ture, side splitting humour, sport, and an area which gives any other

city a run for its money. There is also apparently no truth in the

rumour that Tolkien found his inspiration for Gollum in

Bloemfontein, but who knows what affected him in his formative

infant years. Enough of the twisted travelogue, and let us take a

look at the action on the night of 17th June:

Howard Keeg follows the action

People + products= Knowledge and Information

J u l y 2 0 0 9 67

J u l y 2 0 0 968

1. When was Partinform conceived?

2. Bloemfontein is known as the city of what?

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

Name and Surname: __________________________________________________________________________________

Company: ___________________________________________________________________________________________

Position: ____________________________________________________________________________________________

Postal Address:_______________________________________________________________________________________

Contact Tel. no’s:_____________________________________________________________________________________

e-mail address:________________________________________________________________________________________

69

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

The Winners

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

Other great prizes were up for grabs.

Gerhard from the Volksie Shopwalked away with a prize

from FRAM

Send your answers to fax 086 6579 289 or e-mail [email protected] with the following details:

Competition Corner

Danie du Toit got some goodiesfrom Bosch

Samantha Botes from Ficksburg Midaspicked up a prize from Goodyear RAM

Johan Marx and Danie duToit were the lucky draw

winners of the i-POD andTom-Tom GPS, courtesy ofWillard and Sabat Batteries

Kallie Malan from Lindsay Saker drew the short straw when it came to thequestions. When asked the difference between a FRAM filter and a cheapimport, his answer that it was of a better quality and had better filtrationproperties, did not get the nod from the strict judges. What they were lookingfor is that a FRAM filter has a better contamination holding capacity. Forthose who will be attending the next shows, be warned – make sure that youdo your homework at the stands. You could get a tough question!

Juan Annandale of BNS Workshop, Bloemfontein, was the big winner of the night. He

knew that when disconnecting a battery, the negative battery terminal must be the first

terminal to be disconnected, and this knowledge meant that he will be attending the

Forza Racing Ferrari Track Experience on Friday 19th November 2009 at the

Zwartkops Racing Track, together with the other winners from the other shows. Four

more racing experiences are still to be allocated, at the forthcoming shows:

• Durban Tuesday 21st July 2009

• Klerksdorp Tuesday 8th September 2009

• Port Elizabeth Tuesday 13th October 2009

• White River Tuesday 10th November 2009

J u l y 2 0 0 9

P a r t i n f o r m

J u l y 2 0 0 970

The CEF Brake Hose youmake up on site for yourcustomer, is the sameQuality that we supply tothe “OE Manufacturers”

1. Fittings Production 2. Fitting bending Production

3. Inspection 4. Assembly

5. test Assembly 6. Completed Brake Hose

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

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

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

Imagine my emotions when, for one

week at the beginning of June, I

had the opportunity to experience a

Cadillac, courtesy of those nice

guys at General Motors. And not

just a Cadillac, but a 2009 Cadillac CTS.

As I slid behind the wheel of a Cadillac for

the first time in my life, those childhood

dreams came rushing back with a

vengeance. The CTS is a 3,6 litre V6 pow-

ered brute, but in one package you have

the beauty and the beast, that can only be

appreciated by a certain type of motorist,

or more accurately, motoring journalist.

This species is rare on the ground in both

Europe and South Africa, so it is no sur-

prise that the accolades have come from

more appreciative climes, with the CTS

reaping awards such as the 2008 Saudi

Auto Car of the Year, the 2008 Motor

Trend Car of the Year – North America,

and the engine making it onto Ward’s

Autoworld magazine’s “Ten Best Engines”.

229kW of power and 374 Nm of torque

makes for effortless driving, enhanced by

the 6 speed hydra-matic automatic trans-

mission, which allows for full automatic

mode or clutchless manual gear changing

via the gear stick or paddles on the steering

wheel. Developed on Germany’s famed

Nürburgring test track, this Cadillac is a

brilliant throwback to the past, being big-

ger than its rivals in the luxury sports

sedan class, and all the bells and whistles

befitting a car of its status. I could go on

and on about the multi-colour pop-up

screen which controls the radio, TV, CD,

DVD player, MP3, GPS (when installed),

the 40Gb hard drive for storing everything

including the kitchen sink, the voice acti-

vated channel changing, the on board

information available, the seat warming,

the stored driver settings, the leather, wood

and aluminium finishes, and other features

which even Paris Hilton would die for, the

superb build quality, the breathtaking han-

dling thanks to a wide track rear wheel

drive arrangement on 18” tyres, all for an

incredibly good starting price at R425 000

(for the well heeled), but what I really need

to say is “Go and experience it for your-

self ”. And now I’m a Cadillac Man for life,

even if it’s in words rather than deed.

by Howard Keeg

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

J u l y 2 0 0 972

Little Eden Founder Domitilla Rota Hyams with Shaun. Shaun looks like anormal little boy, but he suffers from all of the affects of foetal alcohol syn-drome – small for his age, physically and mentally disabled, a hauntingly sadand empty gaze. But he was also a beautiful baby who screamed non-stop fordays after he arrived at Little Eden, suffering acute withdrawal symptoms afterbeing born to a mother who drank alcohol and took drugs during her preg-nancy, but today he smiles and responds to people and can point to his noseand mouth when asked. Shawn will never be normal, nor will he contributeto society in the conventional way, but he has reached a stage where he cantouch the hearts of everyone who meets him; a milestone that simply would nothave been possible without the dedicated care, encouragement and love ofLittle Eden’s wonderful therapists and nursing staff.

C o r p o r a t e C o n s c i e n c e

J u l y 2 0 0 974

It’s More Than JustBusiness #2In February 2009, Automotive Business Review began a series of articlesunder its Corporate Conscience/Industry Update banners, describing theHerculean efforts of Patrick Latouche, General Manager of Sparepro, to re-invent and re-ignite the company with a blend of management disciplines andnew wave thinking, putting soul and spirit into the staff, and striving toallow each and every employee to become the best that they can be, andinculcating a “Spirit of Team”. These articles were titled “It’s More Than JustBusiness”; “Management by Measurement”; “Feeling the Pulse”; “Feeling thePulse – with Passion and Precision”; and “An Idea Becoming a Reality”, where-

by we delved into Patrick’s various management by motivation techniques, and the incrediblesuccess that he has achieved so far. For the next two articles, we have gone full circle, aswe look again at “It’s More Than Just Business” with a more enlightened eye.

We visited Sparepro on Friday 5th June at 07h10, some

20 minutes early, and found Patrick already ensconced

behind his desk, analysing the previous day’s sales

performance in preparation for his daily pep talk to the sales team.

This confirmed that behind all his modern philosophies and

concentration on the “softer” issues, Patrick knows that the foun-

dation is built on sound business principles and good old fash-

ioned hard work. It was thus only when this daily operational task

had been put to bed that Patrick turned his attention to our

07h30 appointment, and he got round to one of his intense pas-

sions, and a recurring theme in his approach to business. This

recurring theme is that business is like a human being, because it

represents the collective souls of the people in the business, and

that healthy souls equal healthy business. Even if this does not

exist, it can be cultivated, because as Patrick says with an evangel-

ical gleam in his eye. “It is more than just business”. An example

of this is the initiative that Patrick has started in assisting Little

Eden, a registered non-profit organisation that cares primarily for

children affected by Down Syndrome, cerebral palsy, autism,

epilepsy, Dandy Walker syndrome, foetal alcohol syndrome or

mental trauma as a result of birth complications or physical abuse.

Other patients suffer from behavioural problems or mental ill-

nesses such as schizophrenia, thus unable to function in normal

society and who have to rely on their carers for help with eating,

bathing, dressing and other daily activities. Nevertheless, each one

is an individual with something to contribute and very often

something to teach us, like patience, joy in small achievements,

trust and love. As Domitilla Rota Hyams, the Founder of Little

Eden, says “There is one thing I know: that people with intellec-

tual disability have great value and that God gave them to touch

our hearts and make us better people. From the very beginning,

Little Eden has been a place where each individual is not only

cared for physically, but also emotionally and spiritually.”

It is clear that his visit to Little Eden has affected Patrick emotion-

ally. He says “By visiting Little Eden you realise that life is a gift.

We tend to take so much for granted, but we should stop to think

and to realise how lucky we are to be functional. The kids at Little

Eden feel the cold, get hungry, get happy, and get angry, just as we

do. The only difference is that they got the short end of the stick

when they were born, which they did not ask for. We should

realise that but for the grace of God, that could be us, and how

would we feel if we were abandoned. We must accept that we are

here for a short journey, and we must realise that whatever we do

to earn our daily living, we are more than just a business. It is not

just balance sheets, income statements, returns on investment. We

cannot just measure wealth in monetary terms, wealth is nothing

without a social conscience, and people and business have to get

involved in worthy causes to redress the balance of life.” Patrick

bemoans the attitude of some people who say that if there are no

returns, that they will not contribute and just wash their hands.

“Children with no future may not give returns in the convention-

al measurements, but they can give returns in other ways”, he says.

More on this in the August 2009 issue of ABR.

R o a d S a f e t y

75

DWD as bad as DUIThe Bridgestone Committee for Active Road Safety (CARS), a subsidiary ofthe South African Guild of Motor Journalists, conducted an interestingpilot study at the Wanderers Club, Illovo, Johannesburg, on 28 May2009. The purpose of the study was to determine the effect of operatinga cell phone in either talk or text mode while driving. The results wererather predictable, as previous research has given us the clue.

J u l y 2 0 0 9

Eugene Herbert of Skidpan Advanced Driver Training conducted the study

In actual fact, I do not need research to prove what is going

on under my very own eyes every day of my life. Whenever

I observe slow or erratic driving during the day, my immedi-

ate assumption is that the idiot is on a cell phone, and nine

times out of ten I am correct. The exceptions are newly minted

drivers who obviously did not get their driver’s licences legally, or

who simply do not have a driver’s licence. At around midnight, one

is confronted with a totally different scenario, with high speed, low

speed, erratic driving, and other hair raising antics thrown into the

mix, all fuelled by alcohol. Coming back to the study, the results

confirmed that DWD (distracted while driving) is as bad as DUI

(driving under the influence), which, as I said before, is as simple

as ABC (a bloody certainty). Research data from various other

studies make for compelling reading:

• Distraction from cell phone use while driving (handheld or

hands free) extends a driver’s reaction as much as having a blood

alcohol concentration at the legal limit of .08%

• The number one source of driver inattention is the use of a wire-

less device

• Driving while using a cell phone reduces the amount of brain

activity associated with driving by 37%

• Motorists on the blood-alcohol edge drive better than sober

drivers using cell phones

• Phones ringing startle people, and most people feel compelled

to answer them regardless of the traffic situation they are in.

There are many more such statistics, suffice to say that the logical

conclusion is that anyone who uses a cell phone while driving

should be incarcerated in a cell for a salutary period. To get full

details of the study conducted on the 28th May, you may contact

Dr. Lawrence Barit at [email protected]

by Howard Keeg

F a s t W h e e l s

J u l y 2 0 0 976

THE BRAWN FORMULAONE GP TEAM ROLLS ONThe fairytale entry and successes of the Brawn GP Team in Formula 1 WorldChampionship Racing continues. Jensen Button at the end of the Turkish Grand Prix out-side Istanbul at the beginning of June had chalked up 6 wins from 7 starts. Only JimClark (Lotus) and Michael Schumacher (Ferrari) had ever achieved that sort of record.

If Schumacher had won 6 out of 7 GPs to start the season the

British Motoring Press would have been shouting that he and

Ferrari are ruining GP racing and he is arrogant into the bargain

(which he is not). Button doing it is OK, and I must admit it is

fantastic to see a new team and their star English driver, who lis-

tens to Brawn, bringing a happy smiling face to the racing.

Button takes all in his stride. You can see that the Brawn team is a

happy crowd compared to some of the others. With success behind

them like this already why wouldn’t they be?

After Brawn had a one/two finish in Australia people like Renault’s

Briattore cried “Foul” and that they had broken the rules.

Everybody said it was the diffuser under the car. Then the “Lie-

gate” saga unfolded in Malaysia with Button having another win

and only gaining half points when the race was abandoned early

due to a huge storm and fading light.

The Chinese Grand Prix, also run in heavy rain saw a Red Bull vic-

tory with Sebastian Vettel and Mark Weber leading home Button

in 3rd.

Bahrain in April saw other teams sprouting diffusers under their

cars. It didn’t matter as Button took his third win with Vettel 2nd

in the Adrian Newey-designed car. Good to see Toyota in 3rd with

Lewis Hamilton 4th and Barricello 5th. Raikkonen picked up his

first points for the year for himself and for Ferrari. He finished 6th.

Things looked like they were getting closer at last.

You reckon? The “Bearded Duo” of Jensen Button and Ross

Brawn, the brains behind Schumacher’s success, engineered anoth-

er one/two for the Brawn GP Team in Barcelona. Button 1st ,

Rubens Barricello 2nd.

Monaco, said the experts, and for that matter, all the other teams,

would even the playing fields. A good qualifying would make all

the difference as there is almost no passing on the narrow streets of

this Principality. The jewel in the GP crown provided a glamorous

afternoon looking at the rich and famous, sunbathing on their top

toys floating in the harbour. Result? Another one/two finish for the

Brawn GP team. Win number five out of six Grands Prix held so

far, with Button seven seconds in front of Barricello. Ferrari got

onto the leader board with Kimi 3rd and Massa 4th.

This Monaco Grand Prix will always be remembered for another

bit of motor sport folk lore. After his win Jensen Button parked

his car in the pits instead of in front of the Prince at the podium.

Nothing daunted, he set off on foot and sprinted at least a kilome-

tre in full racing gear to get his trophy, to the cheers of the crowd.

Then the Formula 1 circus went across the Bosphorus to the Asian

side of Turkey for Round 7 of the season. Ferrari had won the last

four races here and with all sorts of aerodynamic devices now fit-

ted were getting closer. Vettel got pole in practice but it was Button

who passed him around the circuit on Lap 1 when Vettel went off

on a fast corner and that was that. Vettel was quick and had anoth-

er go at Button but his choice of tyres failed him and he came

home in 3rd spot. Button 1st, Rubens out with gearbox problems.

Weber’s 2nd spot was seven seconds behind Button and his best

finish ever in a Grand Prix. Toyota and Toyota-engined cars recov-

ered from previous problems with Trulli 4th and Nico Rosberg in

his Williams 5th. First Ferrari was Massa in 6th.

Lewis Hamilton with the fastest car was 13th. He almost seems to

have given up this year or altogether after his “Lie-gate’ scandal

seems to have got rid of some of McLaren‘s key people.

While all the racing has been taking place, Max Moseley, Bernie

Ecclestone and the Formula 1 team is at war, in public. Like the

formula 1 technical rules which never aim to make for close rac-

ing, the FIA never seems to fail by doing things that none of the

public or the teams wanted in the first place. Max wants more

teams on the grid spending a lot less money so he has put a cap on

it. He has given as much testing and development as they would

like. The manufacturers’ teams don’t want the “cheapies” to down-

grade the sport. Ferrari, BMW, Renault, Toyota and some of the

others say they could depart the sport. It could be the end of the

worldwide exposure they get on a Sunday. They are now thinking

about suing the teams.

An alternate series could be found.. This is the A1 Grand Prix

Championship which uses Ferrari power already. It has a good for-

mat and lots of passing. One way or another let’s hope they sort it

all out for the best.

by Roger McCleery

From

p 22

77J u l y 2 0 0 9

My dead readers are brilliant. Read on ………….

T h e L a s t W r i t e s by Baron Claude Borlz

Priceless Observations:

Sometimes, when I look at my children,

I say to myself, “Lillian, you should have

remained a virgin.” – Lillian Carter,

mother of Jimmy Carter

I had a rose named after me and I was very

flattered, until I read the description in the

catalogue: “No good in a bed, but fine

against a wall.” – Eleanor Roosevelt

Lat week, I stated that this woman is the

ugliest woman I have ever seen. I have since

been visited by her sister, and now I wish to

withdraw that statement. – Mark Twain

The secret of a good sermon is to have a

good beginning and a good ending; and to

have the two as close together as possible.

– George Burns

Santa Claus has the right idea. Visit people

only once a year. – Victor Borge

Be careful about reading health books. You

may die of a misprint. – Mark Twain

By all means, marry. If you get a good wife,

you’ll become happy; if you get a bad one,

you’ll become a philosopher. – Socrates

I was married by a judge. I should have

asked for a jury. – Groucho Marx

My wife has a slight impediment in her

speech. Every now and then she stops to

breathe. – Jimmy Durante

I have never hated a man enough to give

his diamonds back. – Zsa Zsa Gabor

Only Irish coffee provides in a single glass

all the four essential food groups: alcohol,

caffeine, sugar and fat. – Alex Levine

My luck is so bad that if I bought a ceme-

tery, people would stop dying.

– Rodney Dangerfield

Money can’t buy you happiness, but it does

bring you a more pleasant form of misery.

– Spike Milligan

Until I was thir-

teen, I thought my

name was Shut Up.

– Joe Namath

I don’t feel old. I don’t feel anything until

noon. Then it’s time for my nap. – Bob

Hope

I never drink water because of the disgust-

ing things fish do in it. – W.C. Fields

We could certainly slow the aging process

down if it had to work its way through

Congress. – Will Rogers

Don’t worry about avoiding temptation.

As you get older, it will avoid you.

– Winston Churchill

Maybe it’s true that life begins at fifty, but

everything else starts to wear out, fall out,

or spread out. – Phyllis Diller

By the time a man is wise enough to watch

his step, he’s too old to go anywhere.

– Billy Crystal

Of course, Rodney Dangerfield is famous for his closeto the bone one liners, like these which can be printed

after censoring, and only for those with a sense ofhumour. There are many others that simply can’t be

cleaned up:

I was walking in a cemetery this morn-

ing and saw a bloke hiding behind a

gravestone.

I said, "Morning." He replied, "No,

just having a s#!t."

Went to my first Iraqi birthdayparty last week. The musical chairs

was a bit slow, but $%#@ me,pass the parcel was quick!!!

A man walks into a petrol station and says, "Can I

please have a KitKat Chunky?"

The lady behind the till gets him a KitKat Chunky

and brings it back to him. "No," says the man,

"I wanted a normal KitKat, you fat %$#@!"

automotive business review july 2009

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