2 Plucking The Goose

14 Unlocking the Power

24 happy Customer

43 The DI Phenomenon

62 Inglourious Basterds

68 Le Crossover

Official Mouthpiece of

Van der Walt himself relied on

previous sage observers of this

unpleasant but necessary activi-

ty. He harked back two cen-

turies and more, delving into Roman

philosopher and statesman Cicero’s letters

to his publisher Atticus, and his remark in

60 BC that “taxes are the sinews of state”,

which was an appropriate comment during

those robust imperial times. American

jurist Judge Oliver Wendell Holmes, in a

gentler era, proclaimed in 1904 that “taxes

are what we pay for civilised society”. Both

quotations can still be used accurately

today, but the best quotation on taxation

came some three and a half centuries ago

from Jean-Baptiste Colbert, the French

Minister of Finance from 1665 to 1683. In

his first year of office, he said that the art of

taxation “consists of so plucking the goose

as to obtain the largest amount of feathers

with the least possible amount of hissing”.

Monsieur Colbert must have done his

plucking very well, because he managed to

sustain the Ancien Régime for quite some

time, and many of his feathers built the

Chateau Versailles for Louis XIV, whilst

also financing many wars.

The point of this article is that the more

things change the more they stay the same.

We may not have the ego and spendthrift

ways of Louis XVI and his courtiers to

contend with today, but we do have Vader

Jakob and his ministers with a penchant for

R1,2 million cars. And it is instructive to

learn that women who attended the court

of King Louis XVI were known as courte-

sans. Instructive to a tee. To finance this

behaviour requires an artful plucking, and

Pravin Gordham follows a rich tradition

of imaginative ways of manipulating

the peasants in acquiescing to a hissless

divestment of down. And the latest budget

speech is no exception, with very little

hissing whilst Pravin has gone about this

feather harvesting.

From an automotive perspective, we’ve

been sandbagged with an emissions

tax, which whilst justified on the noble

altar of cleaner air, is in reality a

naked grab of our money. NAAMSA, the

National Association of Automobile

Manufacturers of South Africa, have had

no option but to accept the situation, and

have been left to plead for an integrated

approach to CO₂ emission reduction ini-

tiatives, and to “suggest” that government

should also legislate and incentivise the

introduction of Euro IV enabling fuel in

South Africa. “Green” fuel is how they

euphemistically call it in their media release

of the 17th February 2010, but they unfor-

tunately have very little leverage with the

fiscus. This emission tax is going to have an

effect on vehicle sales once it’s introduced

in September 2010, and poor old NAAM-

SA have had to bite the bullet, with very

little hissing. They are being led like sheep

to the shearing shed. As van der Walt so

succinctly put it, in the levying of taxes and

in the shearing of sheep it is as well to stop

when you get down to the skin. Thirty

years later, our Minister of Finance has got

down to the skin.

The automotive industry, tied inexorably

with the long suffering motorist to skin

therapy, is a tried and tested cash cow for

government, so it also came as no surprise

that Pravin targeted the fuel levy as an

additional source of plunder, pushing the

costs of motoring to ever increasing

heights. Not good news for the industry,

and from an aftermarket point of view,

damage will be done to the hoped

for growth in 2010. But the automotive

aftermarket consists of resilient people,

such as Control Instruments Automotive.

Our cover feature pays homage to this

resilience, and the yearning and striving to

reach for the sky. Read about how CI Auto

intends to unlock the power, and to

leverage their brands, on page 14. The rest

of our magazine is similarly upbeat, so take

a few minutes out of your busy schedules,

and take inspiration from your automotive

peers.

T h e P h o e n i x

M A R C H 2 0 1 02

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

Plucking the GooseFor this month’s editorial, I lean heavily on WJH van der Walt’s address to theAnnual MBA Dinner of the Graduate School of Business of the University of CapeTown on 22 September 1978. Yes, 1978! Van der Walt was the Secretary for InlandRevenue at the time, and his address titled “The Art of Taxation” remains, in my humble opinion, one of the all time masterpieces in explaining taxation.

Publishing EditorGraham Erasmus083 709 8184

Editors at LargeAlwyn ViljoenPaul Collings

Intelli-Driving EditorEugene Herbert

CorrespondentsBeeton, FrankBorlz, Baron ClaudeBurford, AdrianGamble, AustinHogg, Gilbert

Horn, GerhardKeeg, HowardMcCleery, RogerTwine, TonyWilde, Fingal

Published by:Trilogy Publishing

Advertising Sales:Stanton Porter MarketingTel: 012 654 2745e-mail: abr@stanport.co.za

Marlene Erasmus082 837 2668e-mail bigheart2@iafrica.com

Editorial Office:81 Alma Road, WendywoodTel 27 11 656 2198Fax 27 11 802 3979e-mail: bigheart@iafrica.comWebsite: www.abrbuzz.co.za

Subscriptions and DataManagement:Trilogy Trading & PromotionP O Box 69Wendywood 2144Tel 27 11 802 6020Fax 27 11 802 3979e-mail: bigheart2@iafrica.com

Design and Reproduction:j. Kraft Information Design ccTel: 012 997 6946 Fax: 012 997 6987e-mail: jackie@kraftinfo.co.za

Printing:Business Print Centre, Pretoria

C o n t e n t s

88

2222 7575

1414 6868

4

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

2 The Phoenix

6 What’s the Buzz

10 Commercial Vehicle news

12 Personal Profile

14 Cover Feature

18 Tony’s Take

20 Frankly Speaking

22 AAMA Alert

24 The Chery Story

26 Industry Update

28 Auto Topical

30 Weighty Issues

32 Consumer Protection Act

34 The 2010/2011 Budget

36 Intelli-Driving

40 Diamond Dialogues

42 Customer C.A.R.E

46 Tyre Talk

48 Tyre Safety

49 Show News

50 Launch Technologies

52 Capricorn Insights

56 Topclass Topics

58 Robert Bosch

60 e-CAR

62 Wilde Things

64 Burford on Brands

68 Vehicle Launch

69 AIDC Quiz

70 Vehicle Evaluation

72 A Word on Cars

74 Fast Wheels

75 Midas Sport

76 The Last Writes

Official Mouthpiece of

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W h a t ’ s t h e B u z z ?

M A R C H 2 0 1 06

KenKen 3 x 3How to Play:

Like Sudoku, even though difficulty may vary from puzzle to puzzle, the rules for

playing KenKen are fairly simple:

For a 3 x 3 puzzle, fill in with the numbers 1-3.

• Do not repeat a number in any row or column.

• The numbers in each heavily outlined set of squares, called cages, must combine (in any

order) to produce the target number in the top corner of the cage using the mathematical

operation indicated.

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

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

column. Answer on page 62

Toyota South Africa launches campaign to correctaccelerator mechanism

Toyota South Africa recently announced that it would call back 52 546 vehicles because of possibly faulty accelerator mechanisms. This step was takenonly as a precaution, since no faults have been reported in South Africa. In an entirely unrelated matter, Toyota have also decided to recall all previousgeneration Prius’ for a software update to the electronic braking device. This should cancel out the delayed braking feel that has been experienced incertain other countries. “We would like to apologise to all Toyota vehicle owners for the uncertainty and inconvenience that this process may havecaused. We value the trust and confidence that Toyota owners have put in our brand over the past five decades and we will do everything in our powerto honour that,” says Dr Johan van Zyl, President and CEO of TSAM. The vehicles affected by the call backs are:

Toyota Corolla (February 2007 to January 2010) – 45 040 vehiclesToyota Auris (June 2006 to January 2010) – 6 665 vehiclesToyota Verso (October 2008 to January 2010) – 841 vehicles

TENNECO ESTABLISHES GLOBAL GREENHOUSE GAS REDUCTION GOALThe Environmental Protection Agency in the United States recently announced that Tenneco would be reducing their global greenhouse emissions by20% between 2008 and 2014. This figure is taken as per the weight of manufactured goods and shipped parts. Tenneco is best known for the manu-facturing and distributing of Monroe and Rancho shock absorbers and Gillet emission control products in South Africa.

This announcement is the next milestone in Tenneco’s participation in the Climate Leaders program. This program helps Fortune 500 companies tocut their environmental footprint by developing comprehensive climate control strategies. "By committing to a global GHG reduction goal, Tennecois adding value to our non-environmental impact approach to manufacturing,” said Tim Gordon, executive director, Environmental, Health and Safety.

Renault launches television channelOn January 28, Renault became the first manufacturer to launch an international television channel. This has been done to improve their presencewith the general public and to be a showcase for the brand. The channel will broadcast news on the latest models as well as features meant to enter-tain the entire family. This concept originally started with the launch of www.renault.tv in March 2009. This website has been extremely successfulwith an average visiting time of 15 minutes. Renault also believes that their channel could reach a potential 30 million people and can be seen as a realopportunity to broaden their target market.

Atlas Copco’s new innovation allows you to reduce operating costs withoutcompromising on world class air quality. This new range consists of the ZR/ZT15-750 and ZR/ZT 37-900VSD air compressors.

These new units have a simple modular construction that makes for easy serv-ice and extended service intervals. This in turn decreases the chances of the unitmalfunctioning which should keep business operation at maximum efficiency.The ZT/ZR compressors are designed as fully integrated, compact packageswith drive motor, coolers, moisture drains and filtration along with a controllerfor optimum efficiency and reliable performance even in the toughest environ-ments in temperatures of up to 50 degrees C. The full feature versions includeintegration of a choice of drying technologies to ensure compliance with cus-tomers’ air quality requirements even in small operating areas.

Atlas Copco introduces oil freecompressor range

W h a t ’ s t h e B u z z ?

8

(quickpic)

M A R C H 2 0 1 0

Nissan wins energyconservation prizefor new systemNissan Motor company recently announced that itsrevolutionary eco-drive support systems, Eco-modefunction and Navigation linked speed-control, haswon the ANRE (Agency for Natural Resources andEnergy) Director-General’s award. This award waspart of the annual Energy Conservation Prize. Thisaward is open to the general public and covers a widerange of technologies that conserve energy. It awardsinnovations that can be put to use in commercialapplications to achieve above mentioned goal. Thesesystems help the driver to conserve fuel and havealready been adopted in the Tiida as well as the Cube(not available in the South African market).

Jaguar returns to Le Mans

The Jaguar brand turns an impressive 75 in 2010. To celebrate this momentous occasion, Jaguar has entered the famed Le Mans motorrace. They will be taking their place on the starting grid with a XKR GT2 run by the Jaguar RSR racing team. Paul Gentilozzi, princi-

pal partner of JaguarRSR, has been named the driver of the XKR. He commented on the situation, stating that “Spirits will be higharound Jaguar’s return to Le Mans but we must remember the incredibly high level of competition - a podium place will not fall into

our hands. That said, I can guarantee 100 per cent commitment from JaguarRSR and urge fans of Jaguar and Britain’s racing heritage tosupport the team whole heartedly.” C.J. O'Donnell, Global Marketing Director of Jaguar Cars said: “Motorsport has always been

important to the Jaguar brand. Our domination of Le Mans in the 1950s was a foundation on which the company was developed.

The Citroën C3 was unveiled in style at Movida in Rivonia on 18th February 2010.ABR was there to take in the action.

The Citroën C3 Experience

c o m m e r c i a l v e h i c l e n e w s

M A R C H 2 0 1 010

Nissan Diesel South Africa

recently announced that it

would henceforth be

known as UD Trucks

Southern Africa. This

change comes after an announcement from

Japan that the Nissan Diesel Motor

Company will now be called UD Trucks

Corporation. The new branding campaign

will start at the beginning of February and

will only reach its peak in the last quarter

of 2010. After this the dealership network

will be updated and completed within 8

months. The new group will retain its sta-

tus as the second biggest trucking manu-

facturer in the world. The shareholding of

the local subsidiary will remain at 80%

belonging to the UD Trucks Corporation

and 20% to the trading house Mitsui.

Johan Richards, chief executive of Nissan

Diesel South Africa believes that this evo-

lution from the previously named compa-

ny provides them with a clear vision and

dedicated path going into the future.

Nissan Diesel South Africa separated from

the Nissan South Africa passenger vehicles

in 2002 while still keeping the Nissan

name to associate with a leading brand.

This served them well and has led the way

to their strong holding on the local truck-

ing market. This final move away from the

Nissan brand allows them to “fully evolve”

as a leading trucking company.

This move comes at a critical moment in

the South African trucking industry. In

2009 the industry recorded a 45.5% drop

in sales. According to statistics released by

National Association of Automobile

Manufacturers of South Africa (Naamsa),

the local industry only managed to sell 18

934 units in 2009. This is shocking when

compared to the 2008 figure of 34 659

units. The outlook for 2010 seems to be

more positive. The local economy is slowly

recovering from the global recession and

experts believe that it may grow by 2.7%

with an even bigger growth in 2011. The

banks are also showing signs of being less

strict with applications for credit and com-

panies are adopting new strategies in fleet

management. This could have a positive

effect on the local trucking industry and

could very well see them recovering from a

disastrous 2009.

Looking at the market forecast for 2010,

Nissan Diesel believes that the slow, but

improving economy could attribute to a

16% market growth to a forecasted total of

22 000 units. "We also expect some last

minute buying leading up to the World

Cup Soccer in June, in order to fulfill all

the logistical requirements of the event,"

said Richards. "Although an event of such

magnitude might lead to a drop in produc-

tivity and a loss of trading days, we expect

substantial Government expenditure after-

wards, which could have another positive

effect on the truck industry."

In October 2009, Nissan Diesel South

Africa introduced a range of new engines

for its Heavy Commercial Vehicle range

that are in full compliance with Euro II

emission regulations. These standards were

set by the South African government and

came into full effect in January 2010.

UDSA will soon be launching a Euro ll

emission compliant Medium Commercial

Vehicle to our market and other markets in

the continental Africa.

As mentioned, UDSA is not limiting itself

only to the South African market and will

be increasing its footprint into Africa. The

manufacturer will be responsible for a total

of 20 countries in the Southern African

region and will be expanding on this num-

ber as time goes by. According to Richards,

they believe that there are numbers of

untapped opportunities that need their

quality products.

"We don't believe in merely dumping sub-

standard products and services in Africa.

We are in the process of establishing deal-

erships all across the region that all have to

adhere to the same stringent quality

requirements we have here in South Africa.

As a result, we are able to deliver the same

quality services and products to our cus-

tomers, no matter where they are."

by Gerhard Horn

NDSA announces newname and strategies

W h a t ’ s t h e B u z z ?

HUMMER ANNOUNCEMENTThe announcement by General Motors that it will wind-down the HUMMER brand will have no impact on operations in South Africa, accord-ing to General Motors South Africa. GMSA says that while they will no longer distribute and sell HUMMER vehicles in South Africa, they remainfully committed to looking after customers through their network of HUMMER approved dealers. HUMMER customers can be assured thatGMSA will continue to offer full after sales support and that they will honour all warranty agreements. In May 2009 GMSA halted HUMMERH3 production and commenced the process of consolidating manufacturing operations at their Struandale production facility. This is progress-ing well and is enabling GMSA to further improve efficiencies, and to put a product portfolio plan in place which will enable the achievement ofthe 50000 Automotive Production Development Programme volume requirement by 2012. This incorporates new product programmes for thereplacement Corsa Utility and the Isuzu KB as well as derivatives from these vehicles. To date GMSA have announced that they will be invest-ing R700 million in new tooling and facility upgrades to accommodate these new programmes.

MaxLift – simple but brilliantThe MaxLift saves you energy as well as saves your

fingertips! The newly-launched range of gas lifts

called Monroe MaxLift, is a gas spring especially

designed for a particular vehicle and now covers

many newer applications previously unavailable.

MaxLift is used to lift and secure: Bonnets, boots, rear

hatch and station wagon doors, canopy doors, tail-

gates, toolboxes, trailer lids and machinery.

Advantages of MaxLift:

• Price competitive

• High quality

• 12-Month warranty

• Custom applications also possible

• Pre-gassed to the correct pressure per vehicle

The combination of advanced technology and innovation has madeMonroe the suspension solution provider for the automotive aftermarket.

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

11

Tenneco South Africa – manufacturer of Monroe and Ranchoshock absorbers – has shown impressive market share growthin 2009, despite the adverse global economic conditions.Monroe is able to supply around 90% of the car parc in South Africa, particularly the newer, imported models. This,combined with the international technological expertise andquality control, is making the brand a firm favourite.

Monroe has a wide portfolio of suspension products and continuously offers new product lines, services and support to its customers, positioning Tenneco as a genuine ‘Solution Provider’. Monroe MountingKits, Protection Kits and MaxLift are part of this portfolio.

MONROE PROTECTION KITSThe compression bumper and the dirt shieldaround the piston rod are included in theMonroe Kit so always check these whenreplacing struts or spring seat units.

Why are Monroe Protection Kits important?The compression bumper: Improves thequality of suspension and allows optimumdistribution of the car’s weight on the foursuspension corners.

The dirt shield: Helps to increase the life ofthe shock absorber by allowing dirt andwater to drain away and protects the sur-face of the rod.

Important: Worn Mounting Kits or ProtectionKits can affect the vehicle’s handling and ifthey aren’t replaced with the shocks – theshock will lose its warranty. Monroe Mounting Kits and Protection Kitshave a TWO YEAR GUARANTEE

MONROE MOUNTING KITS Monroe has released the new MonroeMounting Kits – an integral part of its ‘Tech-nology Driven Safety’ philosophy. They aremade specifically for each vehicle applica-tion and are easy to fit.

Why are Monroe Mounting Kits important:- More durable and improve road holding - Improve ease of steering and handling

(and steering return)- Reduce noise and vibration - Increase the lifespan of the strut

Remember that the price is for a set of twoand unlike many others, includes bearings.

M A R C H 2 0 1 0

Contact : (011) 574 5600 • www.monroe.co.za

M A R C H 2 0 1 012

MALCOLM GAULD

YOU HAVE PICKED UP A COUPLE OFGREY HAIRS OVER THE LAST FEWYEARS.If I had any hair left ! It has been a tough eighteenmonths in the industry and the brutality of 2009was enough to stretch the limits for me personally,as well as many other people in my team and theindustry

WHERE DOES GENERAL MOTORS GOFROM HERE?The new GM has the makings of a real successstory, as globally business is beginning to look a lothealthier. After what has taken place, the personalhardship experienced by a lot of people and all theefforts of the GM family in operating in a new envi-ronment, in working to firmly established objec-tives, the resultant plans that are in place are prov-ing that GM is on the road to recovery. The cash sit-uation remains positive, with a $1.29bn loan fromthe US government already repaid in December2009, with the balance of the loan due for repay-ment this June 2010, which is way above schedule.

Through all this General Motors and its brandsremain in the forefront of all consumers minds,showing the brand strength, built up over nearly ahundred years and with over two million vehiclessold in 2009. New models being introduced intothe American market are receiving rave reviews andthey appear to be the right vehicles, as the cus-tomers are supporting the products with their hardearned resources – sales and share in North Americaare moving ahead very positively indeed.

AND IN SOUTH AFRICA?GMSA is looking great and is well geared toprogress well into the future. All the agonies ofrestructuring have been completed and our work-force is enthusiastic and more positive about thefuture. Our production facilities have been updatedto meet international standards and a new VehicleConversion and Distribution Centre is fully opera-tional with a brand new Parts Distribution Centrenearing completion at the end of the year. All thisinvestment points to GMSA being positive aboutthe future. Added to this positive progress, I ampleased to advise that during this time, we have notlost one of our distributors/dealers. This dealer net-work is widely recognised for their superb after salesback-up and renowned service in South Africa.

We have worked particularly well in this partner-ship with our distributors, particularly in keepingthem fully briefed about the company’s progressthroughout this process. We are also particularlyproud of the manner in which we have been able toengage with our customers, who have rallied behindour resurgence during this period. Great new prod-uct that we have brought to market – like the newChevrolet Cruze, has also assisted us in motivatinga positive feeling towards GMSA , its products andthe brands.

AND THE NEW PRODUCTS FOR THEFUTURE?We have some amazing new product on the way,commencing with a new look to the Corsa UtilityBakkie, which has led the way in sales in this seg-ment for the last 58 months. This will be followedby the next exciting Chevrolet Cruze addition: a 2.0litre diesel engine, joining our 2010 SA C.O.T.Y.and World C.O.T.Y finalist. This will be followedin the fourth quarter by an all new, very trendy, wellpriced Chevrolet Spark. Further to this, from 2011onwards, expect a deluge of great all new productfrom GMSA and especially the Chevrolet brand,where we have realised amazing market successsince re-introduction in late 2003.

OPEL?Corsa has been a great success story and now thatglobally GM has made the decision to retain Opel,we are looking at all avenues to ensure that we canmake the Opel brand into the force that it used tobe in SA. This is provided that we can bring theright vehicles, at the right price to market. Opel isand remains a key brand in our line up – we have aremarkable amount of loyal customers to this brandwho we continue to support with parts and serviceexcellence

SAAB?Now that GM has sold the SAAB brand, we willcontinue to work with the new owners towardscontinuing with the unique SAAB offering. Butfor sure, whatever happens, we do and will contin-ue to support our current SAAB owners with serv-ice and parts.

WHERE DID YOU GROW UP?Like many South Africans, I am a local motorindustry man from the Eastern Cape. I went toschool in PE and obtained a B.Comm from theUniversity of Port Elizabeth. After leaving school,my first choice was Mechanical Engineering, but Iwas talked into studying for a B. Comm Degree,which was a completely different field for me, butnow I am actually pleased at the outcome!

WHAT DID YOU WANT TO DO WHENYOU WERE AT SCHOOL?I have always been fond of cars and motorbikes, I always had an inkling to do something mecha-nical…

SPORT AT SCHOOL?Of course, enjoyed playing rugby and was doingpretty well and enjoying it until – being smallerthan some of the Eastern Cape farming stock - aninjury put paid to that.

YOUR FIRST JOB?Out of UPE, logically it had to be the motor indus-try. So I joined the Ford Motor Company. Afternine years working in Port Elizabeth, Ford relocat-ed to Pretoria and with this move, it turned me intoan ardent Blue Bulls supporter. I progressed well

and gained valuable experience moving into Salesand Marketing, followed by the Fleet SalesDepartment. This was all superb experience forwhat lay ahead.

THEN CAME A BIG STEP IN 1987?Delta Motor Corporation was formed out of GM,who were leaving the country, due to political pres-sure. It emerged as a great opportunity and I joineda new team with Willie van Wyk, initially asBusiness Project Manager and then moved onshortly thereafter to head up the Sales Operations

YOU WERE BIG IN AFTER-SALES ANDPARTS ?Moving from Sales Operations into After Sales wasvery different for me. I relished the challenge andled a great team in achieving world class PartsProcessing Systems and changing distribution mod-els, currently in use, into one of the leading andmost efficient in the motor industry in South Africatoday.

WHAT YEAR WERE YOU APPOINTED V-P SALES AND MARKETING?In 2003. This position has been one of the mostchallenging and satisfying jobs, working with agreat team, towards establishing a firm hold in themarket place.

WHO HAS MADE A BIG IMPRESSION ONYOUR LIFE?Three people – Peter Frost at Ford, who taught methat “Knowing your product is the start of all suc-cess” in the motor industry. Also the magnitude ofNelson Mandela for his immense contribution tocreating the “new South Africa” the “rainbownation” and also to FW de Klerk, who took person-al risks in his political career, towards changingSouth Africa, for all of us, forever.

MARRIED?Very happily for 32 years to Michele. We have twowonderful daughters. Jamie (23) who has followedher father’s footsteps with a B.Comm in Marketingand Kelsey, still finishing school, who would like tostudy either Medicine or Law.

WHAT ELSE DO YOU HOPE TOACHIEVE?There are still huge challenges’ remaining ahead ofme and with this comes huge opportunity to keepme very busy indeed ! Our family holiday home atKeurbooms is perfect for retirement, but remainsfirmly for limited vacations at this point in time, asretirement is a long way away, but when it doescome, my biggest hope is that I will be healthy.When this time arrives, I would love to get myhands dirty in a mechanical sense and achieve a per-sonal objective that has been on my mind for manyyears and that’s to build a Lotus 7 or a Cobra !

P e r s o n a l p r o f i l e by Roger McCleery

We are all aware that the motor industry underwent some huge changes and manufacturers had to makehuge sacrifices and structural changes to remain competitive during this time. Amongst this turmoil, manycasualties resulted both here and abroad. During this time, General Motors South Africa undertook manyinternal changes and despite this negative activity happening around them, managed to hold firm andfinished in a strong third position on the South African sales charts. One of the key people at GMSA whohelped manage and steer the ship through these extremely rough waters was one of South Africa’s mostexperienced motor men, Malcolm Gauld, who started in the industry at the bottom of the ladder and hasrisen to his current position as GMSA Vice-President : Sales and Marketing.

Q & A

14

Unlocking the

Power

Control instruments Automotive is a subsidiary of Control Instruments GroupLimited with one mission in mind. To be the leading supplier of premium automo-tive brands. This is an uncomplicated and easily understood mission, but whenanalysed this aim is both simple and complex. The simplicity is in the goals, thecomplexity in the execution.

2008 and 2009 were tough years, but Control Instruments Automotive is resilient

and has emerged from the storm in a strong position. We are clear about where we

want to be in the market, and we need to build on the strengths that are already

in place. We have identified what is required from a management point of view,

and our Exco Team is in place. We have been busy on a recruitment drive and have

already appointed the six executive committee members. We are gearing up for

growth, and our message to the market is ‘We’re Here, and we’re Going to Make

a Difference’. Resounding change is what we’re going for, and our first focus is

going to be on customer satisfaction. We are enthusiastically moving to proactive

mode with the entire trade, and we are putting in place the internal mechanisms

to enable us to build a platform to reinforce our incredibly strong brands, increase

customer loyalty, and most importantly, to deliver exceptional service.

”

“

Kevin Rogers – General Manager

The pivot for the activities in reaching these goals resides in marketing and sales. It requires a talented and dedi-

cated team, operating as one and focusing on a singular goal. Control Instruments has had a long and construc-

tive relationship with aerobatic teams, and this is a good analogy for what CI Auto is striving for. The success of

an aerobatic team relies a great deal on tried and tested aeroplanes (read tried and tested brands), meticulous plan-

ning and preparation (read budgets, forecasts, capex, action plans, and all those good things), a talented team total-

ly in sync with each other (read executive team), and a support structure that inspires confidence (read back office

support). This is what CI Auto has been, and still is, all about, despite the various obstacles to achieving its aims, not least being

the tough trading environment visited upon South Africa by the global financial crisis which erupted in late 2008. However, the

goals remain the same, and the strategies remain sound and remain in place. With South Africa having weathered the economic

storm, it is time for the goals to be realised, and CI Auto is up for it. ABR speaks to Kevin Rogers, General Manager, and Grant

Fraser, Marketing Executive, about CI Auto’s prospects for the coming year.

M A R C H 2 0 1 0

C o v e r F e a t u r e

Continuing on our strategy from last

year, aggressive marketing and strate-

gic product development are the keys

to success. The foundations for these

initiatives remain. CI Auto’s phenom-

enal stable of world class brands, in

particular Gabriel, Warn, VDO,

Echlin, Autocom, AutoExcel, and

other leading brands will take us to

the next level to access the impending

market growth. We will support these

brands with range expansion, cata-

loguing, technical assistance and after

sales support, so that our customers

can leverage off our efforts. And an

important ingredient will be passion

and commitment. To this end, we will

spend a lot of quality time this year

with our customers and suppliers,

whilst also investing heavily in systems, support and people. 2010 is going to be an

exciting year for us and the general automotive aftermarket. We intend to take full

advantage of the new business environment.

C o v e r F e a t u r e

15

Leveraging CI Auto’sSponsorship InitiativesCI Auto has a rich tradition ofsponsorship initiatives, anddoes not just rest on its lau-rels once the sponsorshipdeal has been signed andsealed. CI Auto gets activelyinvolved in the various events,and traditionally uses itsflagship brand Gabriel to rein-force this powerful brand inthe minds of the trade retailcustomers and the generalpublic. CI Auto looks forsponsorship opportunitiesthat fit the Gabriel mould andevents that can easily be asso-ciated with Gabriel’s durableand reliable image. CI Autoalso gets involved in publicservice projects, that fit withGabriel’s long associationwith road safety initiatives.

”

“

Gabriel used the opportunity during the Hansa Powerade Dusi CanoeMarathon to donate stationery to three schools in the Umgeni Valley

Grant Fraser – Marketing Executive

M A R C H 2 0 1 0

C o v e r F e a t u r e

M A R C H 2 0 1 016

The Gabriel Wings Aerobatic Team provides a great metaphor for the Gabriel product range of shocks, struts and car-

tridges. To attain the perfection of synchronised flight and to perform daring aerobatic feats requires tried and tested

planes, meticulous planning and preparation, and a talented team, all held together by a support structure that inspires

confidence. Similarly the Hansa Powerade Dusi Canoe Marathon is a wonderful tradition on the South African sport-

ing calendar. It has endured the test of time, it is tough, and it demands determination to complete the race. Aerobatics

and canoeing require dedication, spirit and an effective support team, and Gabriel also loves to do things differently and

to break the mould when it comes to branding conventions. Gabriel wants its brand to be associated with positive emotions, and to cre-

ate a subliminal pull with long term benefits. The Hansa Powerade Dusi Canoe Marathon held in January 2010 allowed for Gabriel to

play its high profile role with giveaways and friendly social interaction, whilst the Gabriel Wings team under the lead-

ership of Scully Levin was there to entertain the crowds with a wonderful display over the Inanda Dam

on day two of the race, as well as at the race finish in Durban North on day three. It’s all

about brand reinforcement to the public, and it strengthens brand aware-

ness and reminds them to ask for Gabriel the next time

they fit shocks.

C o v e r F e a t u r e

17

Gabriel has also been involved with the Arrive Alive campaign for many years, and for the past eight years ithas been in attendance at the Arrive Alive “Roadblock’ organised by Greyling Broers Toyota every December atthe R26 cross roads between Bethlehem, Frankfurt, Heilbron and Reitz. Whilst vehicle compliance, roadworthychecks, outstanding fines and content checks are carried out and enforced, the main purpose of this roadblock isto promote road safety and the message of ARRIVE ALIVE via regular stops and a relaxed approach to drivingduring the yearend holidays. Motorists are urged to stop and stretch their legs, and are given refreshments and

promotional give-aways to enhance the message.

M A R C H 2 0 1 0

A tradition at the Reitz ARRIVE ALIVE stop is theCeremony of Memory

T o n y ’ s t a k e

M A R C H 2 0 1 0

Without any prescience of

the NERSA decision, here

is a skeleton of major eco-

nomic points which sur-

round the decision on pricing vs other

forms of funding desireable levels of gener-

ation capacity expansion. Points are kept

as brief as possible:

• For the economy to grow its output,

the available generation capacity would

be inadequate to handle peak loads

within a year or two, and would strug-

gle with base loads very soon after that.

• Demand side management could put

off the evil day of zero buffer capacity,

but only for a limited period of time.

• Two large generating facilities will have

to be on stream by around 2014 or

2015.

• Given the fact that these units had to

be started a few years ago to meet dead-

lines, coal as the primary energy source

was an imperative, not an option.

• Renewable fuels rely on current tech-

nologies that are more costly to set up

than coal fired generators, even though

the renewable primary energy may be

cheaper in the long run.

• Eskom’s capital reserves are currently

minimal, hence their push to fund

investments out of short term cash-

flow.

• Electricity generation prices in SA are

currently low by world standards, even

after the 2009 price increase.

• The is no such thing as “the electricity

price” as different users pay different

unit prices, both here and elsewhere

around the world.

• Retail electricity in SA is actually rela-

tively expensive, because of mark-ups

by re-distributors (mainly local govern-

ments) which are large and are used to

cross-subsidise free usage, busses, refuse

removal and other services.

• Given the low levels of generation

prices, no substantial private sector

investment can be attracted that will

offer any attractive yields in reasonable

risk-reward assessments.

• Eskom therefore presents as the only

likely source of generation capacity

expansion.

• Eskom has a limited number of

options to fund such expansion, name-

ly price increases and/or debt financing

and/or issuing equity.

• The sole shareholder of Eskom is the

Department of Public Enterprises,

which so far has shown no inclination

to dilute its 100% equity holding in

the utility.

• Issuing equity outside of the DPE

would demand realistically attractive

earnings and dividend yields on hun-

dreds of billions of rands worth of new

equity, which would be diluted by the

existing DPE equity.

• Such earnings and dividend yields

could only come about if Eskom’s prof-

itability were to be improved, which

may be achievable to a limited extent

by more efficient management, but

would be more likely to be achieved by

means of higher generation prices.

• Similarly, if Eskom was to issue debt, it

would have to fund the cost of the debt

and ultimately redeem it, which

appears challenging at present electric-

ity generation prices.

• Thus, both debt financing and equity

financing of any expansion will require

higher electricity prices in the future,

but may obviate the need for sudden

huge price increases that may be

suggested in the scenario relying on

short term cash flows to finance the

expansion.

• Arguments presented to NERSA most-

ly seem to revolve around one or more

user groups trying to duck the ultimate

reality of users paying for generation

capacity expansion.

• No matter how the expansion is

funded, the extra capacity will have to

be paid for, and it is iniquitous to

expect non-users to fund users.

• The only way to save the domestic

economy from the shocks that would

rattle through it if very large price

increases were introduced to fund the

expansions out of current and future

cash flows alone, is to create a mix of

equity and debt financing that would

allow the very large short term price

hike threats to be flattened out over a

longer period of time.

Participants in the South African economy

have woken up to the fact that, while

electricity supply has not been a totally free

lunch over the past two decades, there is a

bill to pay for future meals provided by the

same facility. The common bar room game

of short arms and deep pockets has moved

to the boardroom and the domestic dining

room.

by Tony Twine

Synoptic Chart ofthe Electric Storm

Anybody is entitled to be bewildered by the storm that erupted in the South AfricanEconomy in the run-up to the NERSA assessment of Eskom’s price increase appli-cation, due to be announced between this edition of the magazine going to the printers and it appearing on your desk. Mental pictures of a price tsunami hittingindustries, commerce and consumers (nobody mentions government, probably becausethey are suspected of being largely responsible for the apparent economic impassesurrounding the supply of electricity) have been conjured up, against a backgroundof virtual certainty, that to do nothing now will simply render the power inter-ruptions of early 2008 a far more regular occurrence after 2010.

18

Leadership of the global motor industry is a subject that frequently comes up for discussion in this column. Regular readers will remember that, in 2008, Toyota MotorCorporation finally ended General Motors Corporation’s 77-year former period of worlddomination. Toyota had frequently protested that Number One in terms of sales volumeswas not its true goal, but these claims seemed a little hollow when contemplating the rate at which the Japanese manufacturer was building new plants, introducing newproducts, and striking new alliances, on a worldwide scale. Hardly had Toyota movedinto the prime position when new chairman Akio Toyoda, grandson of the company’sfounder, publicly admitted to an excessive degree of “stretch”, fuelled by an ambitionfor global leadership, and promised more corporate prudence going forward.

M A R C H 2 0 1 020

During 2009, it seemed that Toyota had chosen exact-

ly the wrong time to assume leadership of the global

market, being confronted by unprecedented financial

losses, and issues of excessive production capacity,

spread all around the world. Early in 2010, the twin ogres of safe-

ty-related product problems, and resulting recalls for correction,

reared their ugly heads. It has been estimated that recalls for accel-

erator and brake system modifications could affect more than 7,7

million vehicles, and Toyota is reportedly allowing for a $US 1,1

billion negative impact on its 2010 bottom line from the product

fixes, and 100 000 fewer unit sales.

While this has been going on, we have been hearing more about

Volkswagen’s openly discussed management plans to boost its

group sales by 60%, in order to “dethrone Toyota” by 2018. In the

last issue, we detailed the emerging partnership between

Volkswagen and Suzuki, and pondered on the outcomes this may

eventually produce. Toyota’s current misfortunes may even short-

en the timescale of conquest, considering the reported relative

2009 performance of these two global giants. Toyota sold 7,81

million units in that year, 13% down year-on-year, and well off its

2007 record of 9,37 million, while Volkswagen chimed in with

6,3 million units in 2009, which was an improvement of 1,1% on

its 2008 performance. Volkswagen’s plans also call for improved

profitability, with a targeted operating margin of “at least 5% in

its core automotive business” (this was reported to have been just

1,6% in the first three quarters of 2009).

Undoubtedly, the introduction of important new products like

the Amarok pickup, and building new North American plants

will benefit Volkswagen’s cause, but the question must be asked:

Does global leadership really mean anything in the marketplace,

or is it only a servant of boardroom testosterone? There can be no

question that the level of domination by the Ford Model T, which

made up more than 90% of the global vehicle population in the

early Nineteen-Twenties, was a license for old Henry to print

money, but GM’s recipe for ending this domination from 1931,

which was to bring together several distinct brands in a corporate

grouping, and offer the market a wide variety of products, served

to permanently break the mould of one stand-alone iconic

presence at the top of the market. Volkswagen is following the

mid-20th Century GM example by bringing together its own

“Auto Union” (there have been suggestions that it may even revive

that name). The imminent acquisition of sports car manufacturer

Porsche will add to a grouping which already includes Volkswagen

Commercials, Seat, Skoda, Audi, Lamborghini, Bentley, Bugatti,

Scania, MAN, NeoMAN, MAN Force Trucks and

MAN/Sinotruk, while the developing relationship with Suzuki

has the potential to add a further 2½ million annual units to the

corporate “pot”. The spectrum of specialised vehicle market

“niches” that are covered by this impressive collection of brands

contrasts strongly with Volkswagen’s early post-World War II

profile when it was very narrowly focussed on producing afford-

able “people’s cars”. It bears remembering that GM started to shed

brands and market positions long before it experienced the

cataclysmic decline to bankruptcy protection, and substantial

restructuring, in 2009.

The question remains: Why do motor manufacturers so assidu-

ously pursue global leadership, rather than just accepting the

route of longer-term natural, organic growth? Commenting on

the dynamics within these vast global empires is problematical

from a miniscule South African point of view, but that’s what I get

paid to do! Rationally, I would dare to suggest that some of the

risks of too-rapid growth include possible exposure to areas of

business not fully understood by the main board, and difficulties

with finding the right calibre of skilled people to fill an ever

increasing number of critical functions in an expanding organisa-

tion. Volkswagen’s recent engagement with the heavy truck

business, through MAN and Scania, has raised a few knowledge-

able industry eyebrows, while it is generally known that major

vehicle manufacturers have been pushing the technical and

financial responsibility for detailed component and assembly

development increasingly into the laps of their component suppli-

ers. Could it be that the present problems being experienced by

Toyota, and, to a lesser extent, by some of its competitors, are an

ominous indication that the whole system is starting to creak?

An Albatross Aroundthe Neck?

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

by Frank Beeton

M A R C H 2 0 1 022

Retail Behaviour andResponsibilityAAMA, the Automotive Aftermarket Manufacturers Association, has many objectives.Each and every one of these objectives are in the main of equal importance, but itcould be strongly argued that three specific objectives, listed as numbers (iv) to (vi)in the AAMA charter, together form the most vital element of AAMA’s activities, froma consumer’s perspective.

These objectives are:

(iv) promote employee training and train-

ing accreditation within the automo-

tive aftermarket and to facilitate the

establishment and administration of a

joint training facility in the automo-

tive aftermarket parts industry;

(v) promote and protect the interests of

members, customers and the public by

ensuring the proper standards of qual-

ity, service and ethical trading condi-

tions are maintained by its members

(vi) jointly promote members’ brands and

products in the Southern African

market by facilitating trade shows and

similar marketing activities

Jointly and severally, from a formal and a

less rigid definition of the term, these

objectives form the core of an overriding

higher goal – to strive for quality, service,

ethical trading and customer care, and to

support this with skills development and

training, because an under qualified work-

force cannot sustain these high principles.

The attitudes underpinning these philoso-

phies start at the top, and AAMA plays a

leadership role in the industry in inculcat-

ing this through the distribution chain,

from sourcing and manufacturing down

to retailing and fitment. To become an

AAMA member requires a strong adher-

ence to these principles, so any distributor

or wholesaler dealing with an AAMA

member has an inherent guarantee that

these rules will be adhered to.

The problem lies further down the chain,

where AAMA has a less formal influence

on the behaviour and responsibility of

retailers and workshops. This is the raison

d’être behind the Partinform format,

which is a series of road shows travelling

to all corners of Southern Africa, utilising

innovative ways and means to get a very

important message across to the trade, and

particularly to work shops, fitment cen-

ters, wholesales and retail outlets and their

employees in the rural and emerging areas.

The Partinform format allows for the

manufacturers to get face to face with this

important and influential element of the

automotive aftermarket, and to pass on

the vital message of quality and safety, the

rationale and essence behind the prefer-

ence of fitting premium brands, and the

dangers of selling or fitting inferior parts.

There has always been a moral imperative

and an ethical angle to this argument,

which does strike a chord with many

retailers and fitters, but unfortunately

there will always be an element in society

that will never play by the rules, either

through character faults, or in the vast

majority of cases, through a commercial

motive. Sadly, it is a truism that it is easi-

er to make a fast buck than an honest

buck. In the short term, that is. This is the

fight that Partinform takes on its crusades

across the country, and it is a fight that it

is slowly but surely winning. It is a battle

worth fighting. The good news is that a

very strong ally has joined the scrap, and

this ally comes in the form of the CPA

(Consumer Protection Act). This Act

comes into effect in October 2010, and

no longer shall it be caveat emptor (buyer

beware), more like cave canem (beware of

the dog), because this Act will have very

sharp teeth. And it is hoped that the pow-

ers that be will use these teeth. The CPA

gives consumers easy access to legal

recourse and is applicable to all transac-

tions, from buying to servicing, and the

point that needs to be noted is that the

retail motor industry sits squarely in the

sights of the Act. Good news for the good

guys, and bad news for the bad guys. And

it also needs to be noted that anyone

transgressing the Act will not be able to

run and hide behind the facade of not

knowing the consequences of selling rub-

bish. Jeff Osborne, CEO of the RMI

(Retail Motor Industry Organisation),

puts it succinctly, “We need to ensure that

the motor industry is fully up to speed

regarding the implications of the CPA,

ignorance will not be accepted as an

excuse for non-compliance with the new

laws.”

AAMA also leaves the last word to Jeff

Osborne, who is a fellow soldier in the

battle for the minds and souls of the parts

retailers and the workshop fraternity,

“The CPA is a key issue for the industry.

It is vital that its implications are fully

understood. The legislation is consumer-

friendly, making stringent demands on

service providers. South Africa’s customers

will be among the most protected in the

world and business will now have to work

smarter and better to ensure compliance

with the law.”

A L E R T

M A R C H 2 0 1 024

Happy Customer (She loves her Shrek)When it comes to happy customers few people can get close to SerenaSampson. She just loves her little orange Chery QQ even though itis obviously Shrek green. “It is just not ripe yet,” she quips.

Serena bought the car new in December 2008 and has had

nothing to complain about since then. Originally she only

wanted to buy a cheap second hand vehicle but immediate-

ly fell in love with the Chery when she saw a brochure at a deal-

ership in Port Shepstone. She had two conditions before she pur-

chased the car. It had to be Shrek Green and she needed to be

approved for finance. Chery South Africa hooked her up and she

has not looked back since.

Serena could almost write a book about all the things she loves on

the QQ. The colour, the nippiness, the spacious interior and of

course the rest of the standard features are the things she loves

most. “My baby came full house and that’s one decision I have

never regretted.”

This Chery was part of a big change in her life. On the 27th of

December, about three weeks after delivery, she packed all of her

worldly belongings into it and set off to start a new life in Cape

Town. Here she encountered three other Chery QQ’s and has a

story to tell about each one. “The first one I saw each morning as

I took my son to school. The friendly driver hooted and waved

like crazy every morning. In the afternoons I took a different

route and usually saw the second Chery - that driver also hooted

and flashed his lights every day. The third one would often be

parked next to mine when I returned to my car at the mall.”

Unfortunately she got no job offers in Cape Town and set off to

Johannesburg. Along the way she encountered many other QQ

owners that would hoot and wave to her. Finally 20 000km’s later

she settled in Margate. “In the 8 months of our travels I may not

have earned much, but my son and I had a ball exploring our

beautiful country and a lot of fun waving to QQ3 drivers.”

Serena loved her QQ3 so much that she even designed a calendar

with her vehicle as the main theme. Nobody bought the calendar

from her but she is hoping somebody might buy it for 2011. How

many people do you know who actually made a calendar about

their beloved car? This is definitely the kind of love that lasts a

lifetime. Serena mentions that she loves to show off her car as

much as possible. After picking her son up from school she

usually gives other kids lifts on the way back. Her son did not

always feel that comfortable with the car though.

“My son used to feel embarassed being seen in a 'girlie car', but

he seems to have come around - especially after I gave him his first

driving lesson in my Chery.”

A series of articles on the rise of the Chery automobile

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

M A R C H 2 0 1 0

26

Hyundai Goodwill Ball RoadshowHyundai South-Africa is a proud sponsor of the 2010 World Cup. They recently showedtheir devotion to this much anticipated event by taking part in a traditional celebrationof goodwill. 32 goodwill balls were made up to represent each and every country thatwill take part in the soccer World Cup. These balls were revealed at Hyundai Park (situated at Mushroom Farm Park) to a wide range of dignitaries, politicians and govern-ment officials. These people were the first to write messages of goodwill on these ballsbefore they will visit other countries participating in the World Cup.

The round-the-world trip will end at the beginning of May

and they will only be used again for a celebration directly

before the World Cup. After the opening ceremony they

will follow their respective teams and the goodwill messages will

be displayed at the various matches.

According to the CEO of Hyundai South Africa, Alan Ross, the

balls “have become a symbol of pride, hope, passion and the unit-

ing power of football the world over.” Hyundai has also commis-

sioned the popular band Watershed to write a song to accompany

the balls as they travel the world over. The song is called “United

by the World” and touches at the heartstrings of every South

African. The message is clear: unite behind our soccer team and

kick it till the sun goes down. Each and every South African sup-

porter will have his/her chance to write their own message of

goodwill on the ball. It will make its way across the country stop-

ping at all the major locations. Soccer fans will also stand the

chance to win many prizes at these signing events. Hyundai has

done much to ensure that the public gets as pumped as possible

before the kick-off in June. This is a once in a lifetime opportuni-

ty to relay a message of goodwill across the world. Imagine your

own message displayed to our South African team as they play

against some of the fiercest competition from across the globe, all

the while reading the messages that other hopeful fans have

written for their own national teams. It really does seem that for

once the world has united in one common cause. The love of soc-

cer and the love one has for his country.

We have to applaud Hyundai for being there to capture these

hopeful messages on something that can be preserved for genera-

tions to come. It seems that when it comes to soccer, Hyundai is

South Africa’s number one fan. They have sent a clear message

across the globe to prove this.

Manny Da Canha, CEO of Associated Motor Holdings and Chairmanof Hyundai South Africa, and Albrecht Gründel, Operations Directorof Hyundai South Africa, attended the event. ABR took the chance to

ask some questions. Da Canha predicts a strong new vehicle market inthe first six months of 2010, but expects the emissions tax to dampen

demand from September 2010. Gründel is proud of the role thatHyundai has played in rehabilitating Mushroom Park Farm, and he

wants this green initiative to be a lasting legacy.

Osman Arbee, Director of ImperialHoldings, has a wide and far reachingportfolio at Imperial, including after-

market functions. ABR will be talkingto him frequently in the future.

At the ball signing ceremony; Alan Ross, CEO of Hyundai SouthAfrica, Gert Oosthuizen, Deputy Minister of Sport and Recreation,

and Hansoo Kim, Ambassador of the Republic of Korea.

Soccer is not soccerwithout a vuvuzela.

The question of carbon dioxide emission taxation in South Africa was first raised beforethe February 2009 budget, but the Finance Minister Trevor Manuel quietly postponed anyannouncements until the February 2010 budget, no doubt in the interest of not increas-ing the tax burden as the economy sank to the lowest point of the recession during thefirst quarter of 2009. So we cannot claim the outline of the emissions tax to be a totalsurprise in the form that it took in the release of the budget on 17th February 2010.But a greater appetite for fiscal revenue may just have accelerated Treasury decisions,perhaps to the detriment of a truly equitable approach.

A u t o T o p i c a l

M A R C H 2 0 1 028

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

Motor vehicles are a gen-

uine fiscal cash cow for

both National and

Provincial treasuries. A

quick and dirty assess-

ment of the first 10 years of a budget end

passenger car indicates that a government

owns over 100% of its original purchase

price in terms of excise duties, fuel tax,

licensing fees and sales tax at the point of

its first and more subsequent sales, as well

as on replacement parts and service expen-

ditures, insurance, etc. The more up mar-

ket the car, the greater the proportion of its

purchase price that will be collected as tax.

The emissions tax of 2010 will add to the

slope of this vehicle life tax curve, as there

is likely to be an initial broadly positive

stepwise correlation between vehicle

prices, engine sizes and fuel consumption

rates. The biggest question about the

behavior of new vehicle buyers must lie in

the field of the price elasticity of their

demand for engines of a particular size,

fuel consumption rate and correlated car-

bon dioxide emission levels per distance

traveled.

A study undertaken six years ago by

Econometrix reflects a lack of vehicle fuel

consumption segmented price elasticity,

implying colossal duty impositions to make

small impressions on the way the public

chooses their vehicles in terms of their fuel

consumption.

But taxing new vehicles at the time of their

first sale is probably politically appealing to

a government wanting to retain populist

support at the ballot box. Less than 400

000 new vehicle sales a year implies a very

tiny threat to votes for a government with

an electoral majority running into many

millions ahead of its nearest rival – and

most of those millions do not buy new cars.

Despite the political astuteness of the car-

bon dioxide tax on new vehicles, the fair-

ness of the tax appears to be disturbed by

the fact that an incredible hulk of a vehicle

that slurps its way through 18 litres of fuel

per 100 kilometers may produce less car-

bon dioxide over any period of time, than

does a lighter fuel sipper that perhaps trav-

els four times the distance of the incredible

hulk, at, say, 6 litres per 100km.

The simple fact is that it is not the machine

that defines how much carbon dioxide is

emitted, but how much it is asked to work

at its given level of fuel efficiency. Of

course, that given level of fuel efficiency is

a distinctly moveable feast, or perhaps a

moveable famine. A car rated at, say,

8.5l/100km could consume 50% more

than that if driven hard in urban traffic

environments, or much less than the rating

level if handled gently on the open road.

Conversely, hybrids may sip fuel in stop-

start conditions because most of the accel-

eration is being powered by the batteries,

but be no more fuel effective than similar

sized vehicles in freeway or country road

conditions.

Taxing new vehicles at point of sale leaves

many of the gas guzzlers bought yesterday

and 20 years ago yesterday spewing ever

greater quantities of emissions the older

and more worn their engines get. This

year, South Africa will be extremely fortu-

nate to see 450 000 new vehicles sold into

a population numbering over 9 million

vehicles. Even if the tax is effective, it

would take 10 to 11 years to impact on the

youngest half of the countries vehicle fleet.

For the motor sector, this tax appears to be

most unfortunately timed to create an

impact (largely immeasurable) a decade

from now.

Emissions are related to the fuel efficiency

of a vehicle engine plus the way that it is

driven plus the extent to which it was used.

Taxing fuel would be a greater disincentive

to creating emission gasses than taxing

vehicles, but would impact on more voters

ahead of what is going to be a tricky local

authority election period in 2011 than the

handful of new vehicle buyers. The politi-

cal arithmetic is simple, but does not can-

cel the reality that it is the quantity and

quality of what you put into the front of

the tax cow that determines its emissions,

not the size of the cow.

PINNING THETAILPIPE ONTHE CASH COW

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

M A R C H 2 0 1 0

Quo Vadis the 2010Truck Market?

However, it soon

became clear, during

the early months of

the year, that the com-

bined impact of an

extremely stringent

local asset financing environment, the

global financial meltdown and South

Africa’s own domestic recession, was

driving the market down to monthly vol-

umes around half of the 2008 going rate.

As the year moved through its mid-point,

however, there were the first encouraging

signs that the financing environment had

started to ease, although at a very modest

level. This was brought about by both the

direct intervention of some vehicle manu-

facturers in the financing arena, and a

slightly more accommodating stance

by the financial sector towards vehicle

financing in general.

After the initial rapid decline, the market

thankfully soon found its bottom, with

surprisingly consistent monthly sales

returns in the period from March until

December averaging 1 536 units. Even the

month of December, with its reduced

number of working days and traditional

year-end shut-downs, produced an

uncharacteristically strong result to sustain

the average. Earlier, it had seemed that the

local business community had become

paralysed, and that decision makers were

sitting on their hands, waiting for concrete

signs of recovery before moving in any way

to rebuild inventories, or move forward

with developing their businesses. The con-

sistent March-December profile, however,

seemed to provide a platform for recovery,

and December’s performance inspired

confidence.

So, what about 2010? Even allowing for

these encouraging signs, the outlook for

total commercial vehicle sales over the

whole of calendar 2010 remains extremely

difficult to predict. Some level of market

growth is expected, but the pattern of sales

could be highly erratic, with the market

showing a measure of volatility over any

extended period. The most likely opportu-

nity for recovery will lie between February

and June, as preparations for Soccer World

Cup 2010, and its expected bounty of sev-

eral hundred thousand foreign visitors,

progress. This will be mainly concentrated

in the country’s consumer goods distribu-

tion and passenger transport infrastruc-

tures, and could result in short-term spikes

in the demand for medium and heavy

goods vehicles, and buses. There are also

expectations of a recovery in extra heavy

goods vehicle volumes, driven by the con-

tinued roll-out of national fixed invest-

ment projects up to, and beyond, SWC

2010, with early signs of this trend already

having been evident in January.

Substantial firm orders for buses and

coaches, already announced in the local

media, will also have a positive influence

on reported sales volumes as these units

leave local plants or arrive at ports of entry

during the first half of the year.

However, several recent events will act to

sustain some of the uncertainty prevailing

in 2009. Government utterances on pro-

posals to reduce truck axle mass limits, and

the lack of clarity surrounding the legal

road transport of high cube containers out

of South African ports, may discourage

local operators from investing in expensive

new equipment possibly threatened with

legislated obsolescence. The drastically

reduced sales volumes in 2009 will also

have dampened the risk appetite of truck

manufacturers, importers and dealers, and

intending buyers could find themselves

facing shortages of their most favoured

products, should they try to make last-

minute acquisitions during the first half of

this year.

There is little argument over the expecta-

tion of market growth in 2010, but a great

many different opinions over its magni-

tude. The most favoured range seems to be

between 10 and 20%, which would result

in total market sizes of 20 900 to 22 700

units, moving us slightly ahead of the

2004 experience. The danger is, however,

that most of this growth may be concen-

trated in the first half of the year, with a

sharp drop-off in demand as the last few

SWC 2010 visitors drift away in

July/August. There is also the danger of

idle fleets looking for alternative employ-

ment, and displacing new vehicle purchas-

es, as business levels return to normal. A

challenging time for forecasters, indeed!

by Frank Beeton

30

As the first working weeks of 2010 rolled out, the South African commercial vehicleindustry was left contemplating the final results of the 2009 market for trucks,vans and buses with Gross Vehicle Mass ratings of more than 3 500 kg. The markettotaled 18 934 units, which was 45.4 % lower than the equivalent 2008 result of34 659 units, and took us back to the sort of volumes last seen circa 2003/4. Theextent of the downturn was beyond the imagination of the supply industry, whoseleaders had produced a consensus forecast of slightly less than 28 500 units justprior to the end of 2008. At the time, it was seriously questioned why volumes shoulddeteriorate by some 18% from the previous year’s level, the second best ever. Thisview that was subsequently encouraged by former Finance Minister Trevor Manuel,who, in his February Budget Speech assured the continuing roll-out of the govern-ment’s R787 billion infrastructure development plan, including R50.9 billion ear-marked for specific transport-related expenditure.

C o n s u m e r P r o t e c t i o n A c t

M A R C H 2 0 1 032

Customers get moreMuscle with new Act

Just when you thought it was safe to step into the ring without your protective head-gear, government serves up a fresh set of legislation to help protect consumersagainst rogue business practices. Come October 2010 when the new ConsumerProtection Act comes into effect, any automotive business looking to make a fast buckoff naive consumers should think twice about it...Joe and Jane Public just got someserious backstop, writes Paul Collings.

The automotive industry will remember well the

scramble to comply with new labour legislation

that came into effect just over a decade ago. In

particular, the revised Labour Relations Act, the

Basic Conditions of Employment Act, the Skills

Development Act and the Employment Equity

all placed additional stress on human resources departments

around the country at a time when most were struggling to man-

age skills deficits borne largely out of the country’s Apartheid-era

education policies. As the millennium rolled in with South

African employees now protected by the world’s most ‘labour-

friendly’ legislation, enterprises of all sizes and descriptions soon

faced another obstacle in the National Credit Act of 2007,

designed to put the dampers on reckless lending by banks to indi-

viduals and businesses who in essence weren’t equipped to shoul-

der debt levels they once qualified for.

This clamp-down on ‘borrowed money’ hit the automotive sector

hard and as new and used car sales rapidly plummeted, many

dealers liquidated their operations. With consumers forced to

hang on to their old wheels, it was only the automotive aftermar-

ket which benefitted, thanks to an increase in auto-servicing and

spares-sales to keep motorists’ ‘late models’ on the road. And then,

six months later, came the global economic meltdown...

Long story short, it’s been a tough ten years for the automotive

industry but those players who have survived have done so

because they operate ‘by the book’, something that will stand

them in good stead when it comes to complying with the stipula-

tions of the new Consumer Protection Act (CPA).

Tasked by the Department of Trade and Industry (Dti) to formu-

late a set of regulations to govern the retail automotive sector with

respect to the CPA, the RMI (Retail Motor Industry) is currently

holding a nationwide symposium to spell out the requirements of

the CPA as they apply to automotive retail/aftermarket suppliers.

“We need to ensure that the motor industry is

fully up to speed regarding the implications of the

CPA,” says Jeff Osborne, CEO of the RMI.

“Ignorance will not be accepted as an excuse for

non-compliance with the new laws.”

Jeff Osborne contemplatesthe impact of the CPA on

RMI members

M A R C H 2 0 1 0

.......Consumer Protection Act

‘Helping ‘unpack’ the ‘nuts and bolts’ of the new Act at the work-

shops are specialist attorney Charlie Teuteberg-Kirk (of legal con-

sultancy, Robertson Teuteberg-Kirk) and Bonita Degenna of

Ayria (a consultancy integrating legal compliance within the auto-

motive industry). At the Gauteng workshop held on 11 February

at Gold Reef City and attended by hundreds of RMI members,

Teuteberg-Kirk stated that: “The proliferation of unfair business

practices (like pyramid schemes) has given rise to the new Act.

The CPA gives consumers easy access to legal recourse and is

applicable to all transactions, from buying to servicing.”

The point was stressed that the retail motor industry sits squarely

in the sights of the Act. As such, the workshops outline the aims

and objectives of the CPA as well as the demands the Act will

place on business and the many pitfalls to be avoided, says

Osborne. “Solutions designed to ensure compliance with the new

Act, as well as the elimination of risk, are also presented, while

guidance is given with regard to the adaptation of new business

practices. The aim is to ensure a smooth and healthy transition

in compliance with the new legislation.”

According to Teuteberg-Kirk, “the Act gives consumers the right

to cancel fixed-term contracts and prohibits unfair contract terms.

Enhanced levels of disclosure regarding prices, safety, guarantees

and warrantees must be presented to customers, who also now

have the right to demand quality products and service as well as

documentation that is written in ‘easy-speak’.” Interestingly, fran-

chisees now hold the rights of a ‘consumer’ as stipulated by the

Act. What’s more, “producers, distributors, retailers and suppliers

will be severally liable for damages resulting from the death, injury

or loss/damage to property as suffered by consumers or third-

party users of goods. The Act sets out administrative sanctions and

penalties for non-compliance. Businesses have been given a fixed

period of time to bring their procedures, processes, sales records,

documentation, warranties and agreements etc. Within the com-

pliance requirements of the Act, adds Teuteberg-Kirk.

Osborne concludes by saying: “The CPA is a key issue for the

industry. It is vital that its implications are fully understood. The

legislation is consumer-friendly, making stringent demands on

service providers. South Africa’s customers will be among the most

protected in the world and business will now have to work smarter

and better to ensure compliance with the law.”

Charlie Teuteberg-Kirk spells outthe dangers of non-compliance

Bonita Degenna advocatesmaking legal compliance part

of the workflow process

Dr. Azar Jammine,

Director and Chief

Economist at

Econometrix, set

the tone for the conference with

the comment that he was “very

encouraged” by the budget,

adding that the budget instils

confidence in the macro man-

agement of South Africa’s econ-

omy. Dr. Jammine also com-

mented that we could not

expect fireworks in the next few

years, because the world had

spent the bulk of the

“noughties” in digging itself

into a credit inspired grave, and that any recovery would have to

be carefully managed by the world’s central banks. Tony Twine,

Director and Chief Economist at Econometrix, looked at the

budget from an automotive perspective, and referring to the emis-

sion tax to be implemented in September 2010, he said that it was

“a fundamental waste of time to charge new car buyers R450 mil-

lion” because historically the fuel consumption of cars has been

singularly inelastic when it comes to purchasing decisions by the

kind of people who buy gas guzzlers, as they would hardly notice

an extra R20 000 odd. Thus, if the intention is to make South

Africans motorists more environmentally conscious, then it will

be a singular failure. However, Twine did put it all into perspec-

tive by noting that “political arithmetic is very straightforward”.

George Glynos, from Econometrix Treasury Management (Pty)

Ltd., looking forward, said that South Africa is not in a position

to manipulate the exchange rate, nor could it do much with mon-

etary policy tampering in influencing interest rates. He pointed

out that a growth environment needs stability in both currency

and interest rates. Peering into his crystal ball, Glynos sees the

possibility of 10 to 15% returns on equities, 7 to 12% returns on

bonds, and the Rand to remain strong, with the possibility of it

testing R7 to the Dollar in 2010.

Aubrey Matshiqi, Senior Research Associate at the Centre for

Policy Studies, then unleashed his web of political intrigue, which

made for entertaining listening. Referring to the iPap (Industrial

Policy Action Plan) unveiled on the same day by Rob Davies,

Minister of Trade and Industry, Matshiqi made the acerbic obser-

vation that epap meant a

flat wheel in the townships.

On a more serious note, his

observation that the politi-

cal coalition that removed

Thabo Mbeki was based on

political interests, as narrow

economic and business

ends were behind the drive

to capture the ANC, and by

default to capture the state,

was spot on. Thus those

with their hands on the

levers of power comprise

both leaders who are serious

about state craft and the

need to deliver on promises, and looters with the aim of enrich-

ing themselves. Another big problem is the erosion of Jacob

Zuma’s authority and standing, and the disturbing fact that the

ANC is “one apology away from a leadership crisis”, which could

happen long before the 2012 ANC conference, and could make

the months’ leading up to the 2007 conference look like a Sunday

School picnic. Matshiqi also commented that Jacob Zuma’s boast

that the ANC would stay in power until the second coming of

Christ gave him as a Christian wild hope for a spectacular return

much closer than we think.

Matshiqi also foresees policy predictability going forward, and

cannot see any shift to the left, precisely because the left has not

put forward an alternative to the recent economic crisis, which

effectively means that capitalism has saved itself. Despite this he

cannot see a Workers Party emerging, primarily because of their

obsession with the alliance and the harsh fact that they would not

do well at the polls. He does however warn us to beware of the

Black Swan. Referring to the budget speech, Matshiqi observes

that there is “a mismatch of the rhetorical dimensions of the

speech and policy substance”. He bemoaned the fact that the win-

dow of opportunity during the growth period does not extend to

the poor, and that if these windows are not used that we can

expect social and political instability. He ended off on a positive

note, using a vegetable analogy to say that we have just endured a

broccoli and cauliflower phase, and that he has no doubt that

pudding will follow. The only question is about the quality and

quantity of the pudding.

T h e 2 0 1 0 / 2 0 1 1 B u d g e t

M A R C H 2 0 1 034

Budget Blues – not aBlack and WhiteOutcome

At the Budget Conference held at the JSE Auditorium on Friday, 19th February 2010,and jointly sponsored by Business Report, Noah Consulting and Econometrix, somesound and interesting feedback was delivered to the invited and spellbound audience.Whilst Pravin Gorhan was given a general thumbs up for the 2010/2011 budget,there were some interesting titbits to be gleaned from the speakers, and anenthralling half an hour of political analysis by Aubrey Matshiqi.

Aubrey Matshiqi, Senior Research Associate at the Centre for Policy Studies

by Austin Gamble

Looking Back is Good – Part Two

M A R C H 2 0 1 036

Before and After BrakingBefore your foot goes to the brake pedal, your eyes should go to

the rear-view mirrors.

The earlier the mirrors are used, the sooner the condition behind

can be identified. This leads to more available options, which con-

tribute to better decision making and lower risk, it also gives time

for more effective communication with the following driver.

While you are in StoppedTraffic You, your passengers and other road users can become vulnerable,

not only from rear end collisions but also hijackers and smash and

grab thieves, when the car is stationary. As a high percentage of all

crashes are rear end collisions, when we are stopped in traffic our

risk potential could dramatically increase. The faster that the traf-

fic is moving the greater is the potential risk of serious injury if

and when your vehicle comes to a standstill. Continue to moni-

tor the rear view mirrors until at least a couple of vehicles have

stopped behind you. When at least two cars have stopped behind

you, they will act as barrier to absorb the force of impact should

an incident occur.

Before and After TurningRight or Left or makingLane ChangesThis helps to give an update of conditions behind immediately

before and after entering a new traffic pattern. Look for fast

approaching traffic.

Vehicles Closing FastWhen you see a vehicle behind you closing fast, consider using

your brake pedal to activate your brake lights to try to get the dri-

ver's attention. The sooner you see the closing vehicle, the more

time you will have to communicate, which is why you need to

check behind your vehicle often and as soon as you see a reason

to reduce your speed or change your road position.

If your foot needs the brakes or hands need to turn the wheel,

then your eyes need the rear view mirrors.

Using the Rear view Mirror Imagine that you are approaching a slow moving or stationary

traffic queue at road works on the motorway... When would you

like to know that there is a Truck or bus (maybe even a taxi) clos-

ing from behind? The earlier the mirrors are used the more time

and space you can give the driver of the vehicle to slow down.

REMEMBER: Before your foot goes to the

brake pedal, your eyes should go to the rear

view mirrors.

Till next time safe driving

by Eugene Herbert

I n t e l l i - D r i v i n g

This is a continuation of last month’s article in which we spoke abouteffective use of mirrors. In part two we extend this to see how bettercontrol of our rear zones will create greater stability and therefore asafer driving experience.

P r o d u c t N e w s

Part two to follow in ABR - May edition

Damage to Cylinder-head gasketsMLS cylinder-head gaskets manufac-tured by the Dana SealingProducts Group are subjected todemanding quality tests duringproduction. Leaks, damage ortotal failure of the sealing systemare mostly an indication ofcauses or defects in the engine/gasket system. Consequently,simply replacing the cylinder-headgasket will not automatically solvethe problem.

Typical leaks between cylinderhead, cylinder-head gasket, andengine block involve gas, oil, orcoolant leakages. These leakagesoccur between combustion chambers, into the coolant circuit,or to the environment. Gas leakscan result in fatal engine damagewithin a very short time – oil leakscan cause severe environmentalpollution.

Pressed-in dirt or foreign objectsas well as rough surfaces alsocause damage to cylinder-headgaskets. Component unevennesseslead to gas blowby betweenthe combustion chambers, andconsequently to gasket failure.

Causal InvestigationEngine overheating in combinationwith component distortion, orinadequate compression of thecylinder-head gasket are the mostfrequent reasons for leakage.

Thermal overloading occurs as aresult of defective componentsin the coolant circuit or incorrectmaintenance. Other causes areirregular combustion due to cokedeposits, and excessively highexhaust gas pressure after failureof the catalytic converter. Moreover,chemical additives in thecoolant and low-quality antifreezeagents can attack sealant coatings.

While reworking the surfaces ofcylinder head or engine block incase of component unevenness,distortion, waviness or scores andgrooves, dirt and foreign objectsaccumulate, which can result indamage to the cylinder-head gasket.Therefore, thorough cleaningof the sealing surfaces is essentialbefore installing the cylinder-headgasket.

Leaky, Damaged, Defective

Premature FailuresIn MLS CHG

Typical media leakages withMLS cylinder-head gaskets

37

Bridgestone warns on old tyresCEO of Bridgestone South Africa, Romano Daniels, recently warned the public against using ageing tyres on their vehicles. According toDaniels, the tyre undergoes chemical changes when the structure ages. This could cause the tyre to harden. This process could start as little asfour years from the manufacturing date of the tyre. At this point the tyre may start showing cracks on the sidewalls that could get worse as thetyre ages. As these tyres harden they may also lose their ability to perform in emergency situations. These types of tyres could fail instantaneous-ly without warning, which is all the more reason to replace them immediately. Daniels further stated that “the average lifespan of a tyre is fiveto seven years. After that, the tyre should be replaced regardless of its remaining tread.” It is almost impossible to prevent this ageing process.UV radiation in sunlight, ozone and oils all play a part in this problem. “However, keeping tyres correctly inflated ensures heat build-up is keptto a minimum while driving and this may slow down the ageing process,” he added.

W h a t ’ s t h e B u z z ?

M A R C H 2 0 1 0

The hot topic at the moment is the Consumer Protection Act, which comes into partialeffect on 28 April 2010. In the previous issue of ABR, we looked at various aspectsand issues relating to this important piece of legislation. We said then that this Act,together with the National Regulator for Compulsory Specification Act, is all goodand well, but that these Acts can only be truly effective if the means to the end areadhered to. These Acts require observance both in law and in spirit, and very importantly, the consumer also needs to accept his and her responsibilities.

To understand this respon-

sibility, and indeed

imperative, we wish to

graphically illustrate

where the industry is

going terribly wrong,

with a real life scenario. In late 2009,

Consumer A had the misfortune to suffer

engine failure in his relatively late model

German sedan. This vehicle, apart from its

prematurely expired engine, was in pristine

condition, and when the recalcitrant

power plant went to the big engine

resting room in the sky, the vehicle

was conservatively valued at

R130 000. Here comes the rub

– the repair bill came to R95

000, of which R88 000 was

for a partly new replacement

four cylinder engine (sub

assembly). Note the emphasis

on new. Based on this exorbitant

cost, the insurance company decided

to scrap the vehicle, despite its excellent

condition. A tremendous waste, but even

more scandalous was the fact that a per-

fectly acceptable remanufactured unit

(using the OEMs approved parts), and car-

rying the same warranty as a new engine,

was available at R31 000. We haven’t done

the exercise, but we guarantee the reader

that using equally acceptable alternative

parts to repair the engine, the repair bill

would have come in well under R30 000.

When questioned, the insurance company

said that they had no choice, as their poli-

cy was based on the overwhelming desire

of consumers, insisting on brand spanking

new replacement engines.

What can we deduce from this? Simply

put, it is the consumer, who by wanting

the cake and wanting to eat it, is playing

a major role in pushing up inflation,

increasing premiums, and affecting gener-

al affordability. By this behaviour the con-

sumer is his own enemy. By insisting on

original parts vs. quality replacement parts,

sometimes for older vehicles, the consumer

is doing nothing else but shooting himself

in an artificially valued foot. This scenario

is a classic case of the consumer needing to

be protected from himself. One of the

CPA’s drivers is the intention for the

industry to regulate itself, because the con-

sequences of misfeasance will force the

unscrupulous suppliers to think twice

before importing absolute rubbish. This

will hopefully, in the longer term, force

inferior quality parts out of the market.

But the situation at the other end of the

spectrum with the mollycoddled consumer

demanding “perfection” is ludicrous. The

majority of branded alternative parts avail-

able in this country not only comply

with OE specifications, but many

also carry the SABS mark.

Responsible companies such as

Grandmark International offer

high quality product at com-

petitive prices, and this fact

has to be accepted and

acknowledged by both the

consumer and the insurance

industry. To write off valuable

assets just because of a myopic

approach to quality and price, is forcing

the insurance companies to scrap perfectly

sound vehicles – vehicles that can be

repaired with parts at a fraction of the cost

of comparative OE approved parts. It is a

well known secret that compulsory specifi-

cations apply equally to OE approved

parts and the aftermarket alternatives.

If the truth be told, they are often identi-

cal, and many times come out of the same

factories.

This insanity must end.

Giel Steyn

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

EditorialPartnership

Consumer Protection– All Have Responsibilities

M A R C H 2 0 1 040

In this series of articles ABR discusses with Giel Steyn of Grandmark International the four significant factors that should be taken intoaccount when purchasing automotive parts - Technology, Quality, Safety and Value for Money. These four characteristics are inter-related, andeach 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 dis-tributor of automotive parts, is keenly aware of the need to source only the best in Technology, Quality, Safety and Value for Money, andtherefore it is appropriate that this series of articles is titled Diamond Dialogues.

His first point was that the Automakers should be tested to see to what extent their CRM

strategies are working or not. His second point was that the CRM practitioners from the

motor industry should meet from time to time in order to set standards, share ideas and sup-

port each other. I think both ideas are great since improving CRM in the motor industry

would invariably lead to a better experience by the customer as well as more sales.

We have brought these ideas to SA and we have done a survey by testing two aspects of CRM: requesting a

test drive and requesting a brochure. The results were quite shocking. Clearly the strategies of the OEM did

not work as well in practice as in theory. (See table).

We believe that regular measurements should be done

and published with names in order to encourage

improvement in the attention given to the customer

from the OEM. Companies that cannot even respond

to a request to provide a Brochure or test drive their

product surely should not complain if their sales are

not doing so well. With most automotive companies

and dealers currently reeling under the effects of the

recession, this is one area that needs as much attention

as possible, requiring the right systems and processes

as well as the very important aspect of excellent fulfil-

ment. We will discuss some great case studies in a

following article.

The second concept that we introduced was that of a

CRM Forum. A Power Lunch is offered from time to

the industry where guest speakers present information

and where networking opportunities exist. The next

event is going to be on the 29th of March where Brian

Mdluli from the DMA will present the details of the

new Consumer Protection Act (CPA).

The event will take place at a major OEM’sHead Offices. If anyone is interested pleasephone Gareth at 0861 876 876.

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 .

M A R C H 2 0 1 042

Automotive CRM – from an inter-national perspective to local activityI have been in the fortunate position to attend some inter-national Automotive CRM conferences. It’s fascinating tosee and hear what the car companies are doing in the differ-ent countries to develop and improve their relationship withtheir customers. During one particular conference held inAmsterdam a few years ago one of the presenters, RobMalyn of GM Europe, made some pertinent points.

Theo Calitz has beenworking in or involvedin the motor industryfor the last 16 years.

A MechanicalEngineer by

profession, he is pas-sionate about customercare and his company, T-R-M specialises inautomotive CRM forthe automotive indus-try and has been doing

it for nine years.

Brochure Request

NA = Not available

EB = Electronic brochure

DNA = Did not arrive

M A R C H 2 0 1 0 43

MODULE NINE - STEP # TWO:THE DI PHENOMENON

– sponsored by Federal-Mogul

What exactly is the DI PHENOMENON? I have called it such, because it describes exactly how a vast group of people can be conned into believing that a mere mortal, withmany faults, is really a saint, and whose mere touch can heal the sick. For the purposes of STEP # TWO, please read “employees” forthe group of people and “customer” for the mere mortal. This unbelievable, but true story, is that of Diana Spencer, the dysfunction-al teenager and the product of a broken home, and highly hormoned parents. This poor rich young girl, before she had come close tograsping the meaning of life, and before she had tasted the normality of balanced human relationships, was thrust into one of theworld’s most visible and scrutinised roles - the wife of the future King of England, and the mother to the future King of England. Andas it turned out, the Queen of Hearts. Her beauty and photogenic qualities added grist to the mills of the mainline press, magazinemoguls and tabloid tyrants, and the deification (or di-eification ) of Diana had begun.

What I am about to say will upset many of you, but it is the truth. And the fact that you are upset proves my theory that any situa-

tion can be manipulated, and with the correct brain-washing techniques, anyone can be built up into a demi-god. In a few chapters

back, I stated that for all you know, your customers in their private lives, could be bulimic, adulterous, vain, rebellious, spiteful,

Test Drive Request

NA = Not available • NR = No response

Customer C.A.R.E. Programme

A Day at the RacesKyalami was all abuzz on Saturday, 20th February2010. ABR was there.

What’s the Buzz?C u s t o m e r C . A . R . E .

Continued on p44

M A R C H 2 0 1 044

C u s t o m e r C . A . R . E . P r o g r a m m e– sponsored by Federal-Mogul

hurtful and shallow. I also mentioned that

they may even cheat on their golf handi-

cap. Yet, I said, even with all of these

faults, we MUST get our employees to be

fascinated with the customer. This is

exactly what happened with Diana. It was

quite clear to the dispassionate observer,

that she was bulimic, adulterous, vain,

rebellious, spiteful, hurtful and shallow.

And yet, with all of these faults, the

majority of people were totally fascinated

and besotted with her. I don’t think that

she ever cheated on her golf handicap, but

judging by the way her brother treated his

wife, it definitely is not genetically in the

realms of the impossible. Of course,

Diana had many redeeming features, of

which her love for the downtrodden was

the most worthy, but for the purposes of

explaining the phenomenon, I have to

concentrate on her less virtuous side.

How did she pull this off? Or more accu-

rately, how did the media pull it off? They

did it by relentlessly pushing an image of

her, day-in, day-out, month after month,

year after year. To assist them, they also

had the ideal foil in Prince Charles, who

managed to make a centipede look inade-

quate, the amount of times that he man-

aged to put his foot in it. This is also a

good analogy of how you must relentless-

ly push an image of your customer, with

the foil being examples of poor service in

your organisation. This we will discuss in

more detail in module ten.

* NOTE OF EXPLANATION

Before I go, I think it is important andwise to calm the nerves of all theDiphiliacs out there, who have gonethrough an incredible range of emotionswhilst reading this article. Please notethat this has not been an attack onPrincess Di per se, but that I had to useher as an example of how powerful themedia can be, and how information canbe manipulated and utilised, becausethis example is so true, and so accurate.It was tailor made to prove my theory.Princess Di, unfortunately in hindsight,led a tragic life, and it had to end tragi-cally, because of the relentless and inex-orable nature of the media spotlight. Shebecame the victim of her own populari-ty, and once she started to believe in herown invincibility, she became a prisonerof this shallow soap opera. An immaturegirl who had been thrust into a make-believe world, and who could not beexpected to handle the phenomenal mar-keting power that had been given to her,and I don’t think that there has ever beenany mortal on this earth who could notfail to manipulate the situation.

THE LESSON TOBE LEARNEDThe lesson for you is to create this extraor-

dinary image of the customer, but never to

allow it to become a distorted fairy tale,

and never to allow the customer to manip-

ulate the situation. We must make the

customer KING in both the employee’s

mind and the customer’s mind, but never

the DICTATOR. This is how a good

kingdom is run - the KING (the cus-

tomer) must be made comfortable, and

must walk down the red carpet, and must

be adored by the subjects (the employees),

but the power must be held by the elected

officials (the company). Think about it!

Think about South Africa today, and the

parallels.

DISCUSSIONPOINTS

1. What is the meaning of life?

2. Do you think it is important to know

the details of your customers’ private

lives?

3. Every day, hundreds of thousands of

people are quietly improving the lives

of others, without any fanfare. What

can we learn from this?

4. Customers have buying power, and can

use this power to great effect. However,

when dealing with customers, employ-

ees also have immense power. This can

be called the power of customer c.a.r.e.

Discuss.

W h a t ’ s t h e B u z z ?

The Volvo PV36, better known as the Carioca, celebrates its 75th birthday during 2010. It was originally intro-duced to the world in the spring of 1935. The PV36 was the brainchild of Ivan Ornberg who led the productionprocess from the very beginning. Unfortunately he died in 1936 shortly after the vehicle was launched. The PV36was best known for its revolutionary pressed steel body and the 3.67l, 6 cylinder engine that delivered 80 horse-power. These kinds of features came at a price though. This Volvo was one of the most expensive vehicles youcould buy during the 30’s.

Volvo PV36 celebrates its 75th anniversary

from p43

T y r e T a l k

M A R C H 2 0 1 046

South African tyre manufacturer Firestone hasannounced the launch of its new Multihawk tyre whichwill become its core General Use (GU) product for theforeseeable future. The Multihawk replaces the F900,which is being phased out in all sizes except the 12-inch‘trailer-size’ tyres. The Multihawk also supplants thevenerable S211, which hasbeen a South African tyreicon since 1981, and wasproduced as the S211T vari-ant from 1996.

“We believe the Multihawk will build on

both the S211’s iconic status and the

F900’s wide acceptance as a tyre for the

discerning motorist,” said Bridgestone

General Manager for Marketing, Romano

Daniels. “We are targeting buyers who

consciously seek reliability and value at a

reasonable price, meaning the Multihawk

will be available in a range of sizes typical-

ly used by B and C-Segment sedans and

hatches,” he added.

The Multihawk is a safety-focused tyre

and particular attention has been paid to

its wet-weather performance. Despite

this, the tyre compound is formulated to

perform well in dry weather without com-

promising on durability. Firestone says the

tyre gives above-average steering precision

and is more resistant than previous tyres

to abnormal wear patterns which can

result from wheel alignment or suspension

defects. Special attention has been paid to

the styling of the tyre to ensure it is an

attractive match for the wheels and body-

work of the modern vehicles to which it

will be fitted. It also has a noticeably dif-

ferent tread footprint to its predecessors,

with a bigger contact patch than an equiv-

alent-sized F900. This gives better dry

weather road holding and braking dis-

tances. Meanwhile, the void ratio (the

ratio of the tread gaps to the total foot-

print) increases to 26 percent versus the

24 percent of the F900. Apart from reduc-

ing tyre noise, this change improves water

dispersion on wet roads, giving greater

resistance to aquaplaning. The higher void

ratio partly accounts for the tyre’s

improved resistance to irregular wear.

Another factor in extending durability

and improving resistance to irregular wear

has been the elimination of the F900’s

twin-rib configuration in the centre of the

tread pattern in favour of lens-shaped

blocks. These also play a part in improv-

ing dry handling characteristics, while at

the same time contributing to the better

water dispersion performance. “The result

of these advances is an exceptionally well-

balanced tyre under all conditions,” said

Daniels. “The Multihawk has proven its

mettle in real-world testing, with sound

levels observed at just 68dBa versus the

current EU regulation limit of 74 dBa,” he

continued. “We are confident the

Multihawk will become the benchmark in

this tyre category,” Daniels commented.

“Motorists will enjoy the immediate

advantages, like better safety and lower

noise, while benefiting from greater dura-

bility in the long term,” he concluded.

Firestone UnveilsNew GeneralUse Multihawk

The media launch took place at the historic LanzerecEstate with the tyres been given a searching examination

over the Western Cape passes.

M A R C H 2 0 1 0

Ford Motor Company of Southern Africa (FMCSA) together

with SA Rugby is preparing to hit the road with world rugby’s

most sought-after silverware. The convoy will visit schools and

clubs across the country early in February to share the success of

South African rugby with all supporters. FMCSA has a long-stand-

ing relationship with SA Rugby, as the official vehicle sponsor of the

Springbok Rugby team, the South African A team, the South African

U-21 team and the South African Sevens team. The recently

launched Ford Everest is the perfect partner for the Champions Tour.

SA Rugby is constructing a purpose built trailer for the Tour,

complete with a fold-out stage and retractable roof. Two Ford

Everests will be used by support staff that will travel with the trophy

cabinet. The contingent will travel all across South Africa taking the

game to the people and showing them the trophies won by South

African teams in 2009. Among the display will be the Vodacom Tri-

Nations Trophy, the IRB Sevens World Series trophy, The British

& Irish Lions series trophy, the Vodacom Super 14 trophy, the

Freedom Cup and the Mandela Plate. The display will also include

the Rugby World Cup (won in 2007) and the icon of South African

rugby, the Absa Currie Cup. “South Africa enjoyed a formidable year

in 2009 and the Champions Tour provides South African rugby sup-

porters all across the country an excellent opportunity to share in

these successes,” says Ben Pillay, Ford Marketing Manager. “The

Ford Everest is perfectly suited to this application thanks to its go

any-where ability and aptitude for adventure.” The tour started in

Cape Town on Friday, February 5 and will snake its way through all

14 provinces, including rugby “outposts” such as Springbok,

Upington, Polokwane and Nelspruit before concluding in Durban

on Sunday, March 21.

Ford Everest hits theroad with SA Rugby’sChampion Tour

What ’s the Buzz?

www.bridgestone.co.za

48

This year we are going to change our approachslightly. We have previously discussed ways toimprove tyre expenses, and gone through thesafety aspects of tyres. We have explained which vehicles arehardest on tyres and why; even approached the subject ofimproving tyre life on such vehicles. We have touched on theresponsibility carried by fleet controllers and vehicle opera-tors. This year we will return to the tyre itself. What it is, whatit does and why it is so important from a road safety perspec-tive. Yes, there will be some parts that you will have readbefore, but as mentioned previously, education is repetitive.Remember too that we need to cater for new readers, peoplewho have just been introduced to fleet management and thosewho need reminding. So while we intend to keep things as inter-esting and varied as possible, bear with us on the bits you mayhave seen before.

By reintroducing the tyre to you, we hope

to remind you of what a special product a

tyre really is.

Defining a tyre usually comes as a surprise

to the uninitiated, and usually is too sim-

plistic. The reason for this is that a tyre is

so much more involved in it’s make-up

than is normally imagined. Here is a

description of a tyre: a tyre is made from

many components which comprise many

materials. These range from chemicals to

steel. All these components and materials

have to be put together in a way that they

stay together under all conditions. Some

of these materials are incompatible, and

ways are sought to make them compati-

ble. An example of this is that steel and

rubber don’t bond. In order to get them to

bond the steel has to be wrapped in cop-

per which facilitates the bond between the

rubber wrap which covers the steel belts.

Other components have to be able to per-

form multiple functions while being

joined to a component performing other

multiple functions. Then there are the

joining areas between all these compo-

nents known as transitional areas. In

many cases this would require rigid areas

to be able to meld with flex areas. The

melding has to be reliable under extreme

dynamic conditions. Tyres, the sum of all

these materials and components, need to

be able to retain air under pressure, while

supporting large loads, and accepting and

distributing various lateral and vertical

forces. That’s quite a lot for something

that is usually overlooked and ignored as

an unimportant product which is mostly

purchased under protest. Tyres are with-

out exception the most underrated and

misunderstood products on any vehicle.

And strangely, they are the primary safety

product on any vehicle. In current times,

people’s values are more questionable than

ever before. We see more and more fleet

operators changing to cheap imports with

no thought or research into the tyre’s his-

tory, quality or safety record. The empha-

sis is purely purchase price, not long term

returns. In many cases this is done at the

expense of safety considerations. Image

and looks come into play both in the fleet

and private sectors. Fancy rims with inap-

propriate tyres are also being fitted with

no thought to safety.

Making money is all important and while

this is simple business logic, it should still

be done professionally, ethically and with

the safety of the buyer in mind. Tyres are

safety critical items, we cannot emphasise

this enough. Yet we still come across buy-

ers and sellers who don’t give a damn.

The buyers can be ignorant to the dan-

gers, but the sellers cannot claim this as an

excuse, and if they are that ignorant, they

shouldn’t be selling tyres. While doing a

spot survey recently we came across a

beautiful looking Hummer fitted with 24”

chrome wheels and 45” profile tyres.

While this type of fitment is open to

much debate and ridicule by those in the

know, this particular set of tyres total load

index was exceeded by the vehicle’s weight

alone, never mind with the added burden

of passengers. So while we have been quite

blatant in pointing out the responsibilities

carried by the fleet controllers, we cannot

be sufficiently critical of the criminal neg-

ligence of dealers like this.

It does however, once again, confirm the

need for continuous education of users.

This is the only way they will be protect-

ed from those few unscrupulous non-car-

ing individuals in the industry. At

Bridgestone, this is a fight we willingly

accept. Think Safety, Think Tyre Safety.

Marcus Haw

and Their Contribution to Safety in Motoring Tyres

M A R C H 2 0 1 0

This year for the very first time WATS is hosting a number of,

mini seminars, each no longer than 60min covering technology

based topics such as:

• Generic Vehicle Diagnostics, Fuel Injection, GasAnalysis & Engine Management presented by ColinSapsford & Driko Henningse of Automotive DiagnosticSolutions.

• ATE Brake Systems by Norman Bull. Followed by Quality

Brake Kits by Quick Brake.

• Safeline Brake Systems by Chris Brand. Followed withQuality Brake Kits by Quick Brake.

• Getting the most out of your Electrolog. S.A’s only PC Based

Auto Electrical Catalogue presented by Kerrie Gregoriou of

Autocosmos.

• Moto Query – *The All New* RMI / Electrolog JV -internet based, Technical Forum presented by PaulBrits & Rob Mildenhall from RMI & Kerrie Gregoriouof Autocosmos.

• Correct Testing of New Generation Alternator Voltage

Regulators (2005 onwards) presented by Chris Scheepers &

Johann de Bruyne of CAELEX Auto Electrical Parts & Service.

And Launch Technologies will be launching the X431 Master

Diagnostic Tool as well as the Launch KWA-300 3D Wheel

Aligner, plus showcasing an off-vehicle truck balancer and heavy

duty truck tyre changer.

An added bonus for visitors this year will be the staging of the

first ever HEAVYWEIGHT Expo taking place in halls and open

areas surrounding WATS, featuring earthmoving equipment,

trucks, plant & machinery, farming implements & an assortment

of related yellow metal vehicles & tooling.

Success is all about networking! Make sure that you are in the

main stream by visiting WATS 2010.

FREE entrance for WATS Visitors. Secure Parking for WATS

visitors within the Show Grounds, when using the Church Street

entrances only.

Our next Groundbreaking WATS Expo will be in Bloemfontein

on 21st October 2010 from 16:00 to 22:00 at Ilanga Estate.

For further information visit www.wats.co.za where you canregister to exhibit, or visit, on-line, or contact Miranda on:082 9680 214 & admin@wats.co.za or Johann on: 082 5515061 & info@wats.co.za The WATS Expo’s are fully Endorsedby the RMI (Retail Motor Industry Organisation).

S h o w N e w s

Another exciting line up of exhibitors willbe displaying their products & services atWATS 2010 taking place at the TshwaneEvents Centre / Pretoria Show Grounds inHall “L”, 24-25th March 2010 from 10:00to 21:30 daily.

l a u n c h t e c n o l o g i e s

M A R C H 2 0 1 050

Launch Rewards Customerswith Loyalty RebateLaunch Technologies SA (Pty) Ltd has established itself as a major supplier of auto-motive aftermarket service equipment to the automotive and allied industries in south-ern Africa. One of the major reasons for this success is that the quality range ofLaunch equipment and products are fully backed up and serviced by in-house aftersales service teams, which has resulted in the impressive statistic that of the work-shops in South Africa using Launch equipment, 70% of their requirements are met byLaunch Technologies.

Ever since Launch unveiled its versatile X-431, its rep-

utation as a supplier of reliable and proven hardware

backed up by technologically advanced and innova-

tive software, has grown apace. The X-431 is now in

use in over 80 000 workshops worldwide, and its

open platform diagnosis represents the latest technology and the

future of vehicle diagnosis. The most powerful diagnostic scan

tool in the world has just got better, with the recent introduction

of the X-431 Master in China, and the impending roll-out world-

wide. South Africa is in the fortunate position to be one of the

first countries outside of China to get access to the X-431 Master,

and to encourage its customer base of over 1 000 X-431 users to

upgrade to the Master, Launch Technologies SA (Pty) Ltd is intro-

ducing an extremely attractive upgrade offer, which is also avail-

able to ADC2000 and Carlink owners. This offer gives Launch’s

valued customers the opportunity to upgrade their existing

Launch diagnostic machine at a cost saving of up to 60% on the

price of the X-431 Master, depending on the age and condition of

their existing equipment.

The Launch X-431 Master still uses the same proved, user friend-

ly operating procedure as its predecessor, but has a considerably

larger vehicle data base, and with its increased computing power

it communicates with vehicles much faster than the X-431 Super

Scanner. It also comes with a unique 16 pin connector which

incorporates the BMW 16, Can-Bus II, OBD II and Smart OBD

II plugs amongst many others.

To view the X-431 Master, plus many more Launch products, visit the Launch stand at the WATS show at the Tshwane Events Centre (Pretoria Showground) on 24 – 25 March 2010, open from 10h00 to 21h30 both days.

For further information, current users may contactLaunch Technologies SA (Pty) Ltd at one of the followingcontact no’s/addresses:

Phone no: 011 937 3072/3Fax no: 011 397 6489Hunter: 082 418 2257 / quiteaguy@163.comHans: 082 701 4203 / greglaunchsa@yahoo.com

Details required are:

Model, Serial number, company name, physicaladdress, contact person, contact no. and serviceagent.

In the next issue of ABR, we shall give furtherinformation on the X-431 Master.

M A R C H 2 0 1 052

I n s i g h t s

Mission AccomplishedCapricorn Society Limited was established in Western Australia in 1975, with the pur-pose of creating a vehicle to assist the independent workshops to survive and thrivein an increasingly competitive environment. Little did the founders know how bigCapricorn Society would get and how its relevance would increase exponentially overthe next 35 years. Nor did they envision that their good old fashioned co-operativeconcept would adapt to the times and to spread its wings to the shores of NewZealand in 1997, and later to South Africa in 2000.

With technology now

fundamental to the

success and even sur-

vival of the modern

workshop, and the

need for the workshop of the 21st century

to embrace technology in all its aspects, the

arrival of Capricorn Society in South Africa

at the beginning of the century was a bless-

ing to the automotive aftermarket. When

Rob Mildenhall was appointed as Business

Development Manager for Capricorn in

2001, his brief was to get the message

across to both potential members and

potential suppliers of the immense benefits

that Capricorn offers to both sides. He was

also tasked with growing the South African

leg of the Society, and to reach critical mass

and sustainability as soon as possible.

This Rob achieved in a very short space of

time, and today Capricorn is an integral

part of the South African automotive after-

market landscape, and its momentum in

the market has assumed impressive propor-

tions. To such an extent that the

Management of Capricorn have decided to

give Rob a new assignment on the east

coast of Australia, and placing on his broad

shoulders the responsibility for significant-

ly increasing Capricorn’s collision repair

footprint in that market. Collision repair is

the second largest automotive aftermarket

segment in Australia.

Rob’s appointment was announced during

a visit to South Africa in early February

2010 by Capricorn’s David Fraser, General

Manager Automotive, and Paul Kennedy,

General Manager People. David Fraser told

ABR that “It is truly an exciting time for

Capricorn. Rob’s new position will allow us

to have a greater focus and dedicated

resource in Australia to oversee the growth

of what is already Capricorn’s second

largest mix of business. Capricorn’s colli-

sion repair business is 17.5% of Capricorn’s

total sales mix in Australia and is worth

over R1.09-billion each year. Whilst

Andre’s appointment will allow Capricorn

to continue its development in South

Africa, and leading a team of five including

the Area Managers and Capricorn’s

Johannesburg based administration staff,

he will ensure our South African members

and suppliers receive prompt service and

attention at all times”.

left to right, Paul Kennedy, André Changuion, Rob Mildenhall and David Fraser

continued on p54

M A R C H 2 0 1 054

I n s i g h t s

In the February 2010 issue of ABR, Capricorn Insights looked at two of its shining lights in Cape Town; MaceGroup and Disa Auto Services. We inadvertently omitted a picture of the Mace Group, an omission which weare now happy to correct. A quick recap: Capricorn membership augments a highly skilled and specialist teamof technicians who service everything from passenger cars to light delivery petrol and diesel workhorses to racing cars. With all the latest diagnostic equipment and a speciality in turbo conversions, dyno tuning and thesupply of high-octane racing fuel, Mace Group is indeed a worthy Capricorn member.

The André to which David refers is André

Changuion, who has been promoted from

Capricorn Area Manager, Pretoria and

Northern Area, to Sales Manager for South

Africa. André will assume his duties in the

middle of March 2010, when Rob moves

across the Indian Ocean on his new and

very important mission. Rob will say

farewell to his South African customers

and friends at Capricorn’s Annual Dinner

and Trade Show in Johannesburg on 1st

May 2010.

Paul Kennedy added, “I was very pleased

to visit with the team in South Africa to

announce the promotion of André to the

Sales Manager role and the opportunity for

Rob to join the team in Australia. We have

tried hard to provide new and exciting

career challenges for our top talent within

the business and these are two fantastic

examples. I am confident through Andre’s

leadership the South African team will

continue to strive to make the lives of our

Members easier through their association

with Capricorn. Rob’s move to Australia is

our first inter-country transfer and his

extensive knowledge and expertise will be a

welcome addition to the business. We will

continue to invest in our people in South

Africa through suitable training opportu-

nities so our future talent pool is ready to

help drive the business forward”.

We leave the last words to the man of the

moment, Rob Mildenhall, “I am thrilled to

have this opportunity to further my career

in Australia! My new role provides me with

a significant challenge and an opportunity

to learn from my peers and industry lead-

ers in Australia. This said, I am extremely

thankful for the support I have received

from our local members and suppliers

while building Capricorn here in South

Africa. Capricorn’s model has broadened

my experience and knowledge of our

industry, while developing valuable rela-

tionships with our co-operative minded

business model. The relationships built

along the way, are made more significant

by those who shared the vision of what

Capricorn could mean to the local after-

market from the outset, and I am very

pleased that André and the local team have

a sound, co-operatively minded base on

which to build Capricorn into the future.”

In the April 2010 issue of ABR, we shall

give a profile of André Changuion, and we

shall also give a preview of the pending

Annual Dinner.

To join Capricorn Society Limited call Rob

Mildenhall on 083 654 2094 or e-mail him at

rob.mildenhall@capricorn.com.au or visit

their website on www.capricorn.com.au

Addendum:

from p52

T o p C l a s s T o p i c s

M A R C H 2 0 1 056

Saving on MotoringCosts – Across the Globe

2009 was Permatex’s 100th year in busi-

ness, and since its inception, Permatex has

been the preferred choice in chemical

tools for motorsports teams, professional

automotive technicians, performance

buffs, and general automotive do-it-your-

selfers. One of the main reasons for this

preference is the wide range of adhesives,

sealants, gasket makers, hand cleaners,

lubricants, appearance products, specialty

repair kits, and additives. From a global

perspective, Permatex now has over 350

products making over 1 000 SKUs, pro-

viding market-specific formulations and

application methods for a variety of

industries, including automotive, marine,

motorcycle, heavy duty, and off road. A

critical element of the success is that the

company is constantly working with

automakers, parts suppliers, service parts

groups, and other aftermarket companies

to develop the next generation of service

technology. In addition to product devel-

opment, Permatex is also focused on

developing even more effective support

programmes for its product lines and dis-

tribution partners with new packaging,

clinics and on-line training for profession-

al and student technicians, product demo

videos, category management, expanded

website activities and motorsport sponsor-

ships. General Manager Andy Robinson

noted at the 100 year mark, “At Permatex,

we continue to deliver products that make

caring for cars easier and repairs more reli-

able. From our performance proven

“chemical tools” and shop supplies that

simplify maintenance and repair to our

innovative appearance and additive prod-

ucts that work better and last longer,

Permatex delivers best-in-the-business

performance and value. As we get ready

for another century of quality and innova-

tion, we’d like to thank all of our cus-

tomers for making Permatex the brand

they trust to get the job done right”.

Andy Robinson was directing his com-

ments primarily to his US, Canada,

Mexico, and UK customers, but these

comments apply equally to anyone across

the globe who takes advantage of

Permatex’s superb mix of innovation, per-

formance and value. And South Africa is

uniquely placed to take advantage. We as

a nation are proud of our cars, and we

want to keep them in good condition.

We, like all other developing nations, also

face the same problem that even devel-

oped nations' face – the ever increasing

cost pressures that face the consumer.

Permatex products can significantly assist

in meeting both objectives – vehicle

maintenance and cost saving. This was

brought home to the editor of ABR, who

when visiting London in December 2009,

discovered that his son’s BMW had a radi-

ator leak, which required a topping up

every few days. Apart from the irritation

factor, this is not the ideal situation when

it comes to the efficient running of a car’s

cooling system, so he recommended to his

son that the sooner he solved the problem

the better. And the cost effective solution

was a Permatex Radiator Repair Kit. Two

months later, the good news is that the

repair was affected, and the leak has

stopped. More importantly, a more

expensive repair further down the line has

been headed off at the pass.

The aforementioned is just one example

of how Permatex can contribute to saving

on motoring costs, and over the next few

months we shall bring to our readers a

range of Permatex products that are ideal

for workshops across the spectrum and

D-I-Y enthusiasts.

TopClass MD, Richard Pinard

Permatex currently operates in the United States, Canada, Mexico,and the United Kingdom. It also exports products to more than 85countries around the world. One of those eighty odd countries isSouth Africa, which has larger implications than many realise, asPermatex products can play a significant role in saving on motor-ing costs for our cash strapped motorists. Last year Permatex cel-ebrated its 100th anniversary … thus commemorating a century ofquality and innovation.

Alain Erasmus of Tottenham, London, hada problem with a pesky radiator on his

2000 BMW 318sei. Problem solved witha Permatex Radiator Repair Kit.

.....Top Class Topics

57M A R C H 2 0 1 0

Permatex® Radiator Repair Kit

Complete kit contains everything required for making a professional-quality

permanent repair in just minutes. Includes easy-to-follow instructions with

photographs. Formulated to repair all plastic and metal radiator tanks. The repair

resin is designed to harden within eight to ten minutes and cures in 30 minutes.

Repairs can be made on cracks up to 10 centimetres long and holes up to nine

millimetres in diameter. Seals small holes and weak seams in fuel tanks without

welding or removal.

Suggested Applications: Plastic and metal radiator tanks in cars and light

commercial vehicles

Permatex® Wheel Restoration Kit

This effective kit restores damaged metal wheel surfaces to a “LIKE NEW” appear-

ance. This easy-to-use do-it-yourself kit makes permanent repairs to various unap-

pealing wheel damage including curbside rash, corrosion, rust, pitting, scuffs,

dents and scratches. Dupli-Color® high performance silver wheel paint included to

restore original silver metallic finish. Note: Not for use on plastic wheel covers or

structural wheel damage.

Suggested Applications: Metal wheels (aluminium, alloy, steel, mixed metals);

wheel damage including curbside rash, scuffs, corrosion, rust, pitting, dents,

grooves, and scratches.

Permatex®Windshield RepairKit

Make permanent airtight repairs

on most types of damaged lami-

nated windshield glass, includ-

ing bullseye’s and star damage

up to three centimetres. This

newly designed state-of-the-art

delivery system with advanced

spring-lock feature, allows you

to make professional quality

repairs with no mixing required

and it cures by natural daylight.

This complete kit provides

everything needed for the repair

including easy-to-follow

instructions with photographs.

Suggested Applications: Repairs

bullseye’s, star damage, and

chips up to three centimetres

long in laminated automotive

windshields.

A series of articles on the versatile FSA 720/740/754 series

R o b e r t B o s c h

M A R C H 2 0 1 058

The Golden Triangle – KTS, ESI[tronic], and FSA

In this issue, we continue to track the exploits of Carlo “Sherlock” du Plessis ofCencar, Centurion, as he tackles pesky vehicle problems, using the Bosch golden tri-angle of KTS Compact Control Unit Diagnostic Tester, the ESI[tronic] ServiceInformation System, and the FSA Engine Management System Analyser.

The last problem solved was a BMW 535i with

hard starting and lack of power. After utilising the

full might of the golden triangle, Carlo had

found the problem – a blocked catalytic convert-

er. Now Carlo has a new problem. A 2006 VW Jetta V 2,0i

litre that is going fine, but the owner has brought the car in

because he is concerned about the ABS/ESP light on the

console which is shining permanently. This is not an imme-

diate concern for normal braking, but it could become a

problem. If the ABS or traction control is not functioning,

there could be serious safety issues down the line. First port

of call for Carlo is the KTS, and a read out of the trouble

codes. Then Carlo clears the codes to see if anything comes

up again. Trouble code 011B does not budge, so Carlo

knows where to look. 011B identifies the error type as an

open circuit in wheel-speed sensor front left.

Before tackling this sensor, Carlo goes through his tried and

trusted routine of testing the battery and checking the fuses.

Carlo knows from experience that these two areas, if not test-

ed upfront, can cause wasted time and effort. It is only after

these hardy annuals have passed their simple examination,

that Carlo zeroes in on his next port of call, the ABS unit and

its ECU. Now it is time to examine the sensor. It is unplugged

and cleaned, and checked for physical damage. Then Carlo

has a good look at the pulsating ring. The pulsating ring could

be on the CV joint, it could be inside the wheel bearing, but

wherever it is, the pulsating ring must also be checked for

damage, and cleaned, as dirt, grime or mud are the enemies of

ABS and ESP systems, and can lead to incorrect signals being

sent back to the ABS’ ECU. Thus, Carlo strongly recom-

mends a thorough cleaning at every service, to reduce this pos-

sibility, and to ensure that the car is as safe as the manufactur-

er intended. The pulsating ring is a vital element of the sys-

tem, as it cuts into the magnetic field of the sensor, causing a

switching effect, with the fields changing the polarity and this

is what creates the signal for the ECU to read. Carlo also tests

the positive and negative supply, and furthermore he checks

the wiring. These are all necessary basics.

Once these procedures are over, it is time for the FSA back-

probe phase. The FSA is not absolutely essential to test for

wheel speeds, as sometimes the KTS has this function, but

Carlo likes to test the whole loop, which the FSA scope does.

More on this in the next issue of ABR.

The ESI[tronic] diagrams for the VW Jetta V 2.0i, indicating plugconnection and the diagnosis socket

The dirt that is attracted to the sensor’s magnetic field builds up over timeand could have a detrimental effect on the car’s braking and traction

performance. This must be cleaned up at every service.

Harry Ginsberg served his automotive technician apprenticeship at

Cargo Motors, the iconic Mercedes-Benz dealership, and by the

time he left to start his own business in 1983, Harry had progressed

to Workshop Foreman at Cargo, and knew Mercedes-Benz vehicles like the

back of his hand, and he was also no slouch on other vehicle brands. Harry

may have left Cargo Motors, but he took with him Mercedes-Benz training

and a commitment to perfection. This formative grounding has stood him

in good stead, and his reputation ensured that he soon built up a strong and

loyal clientele in his new venture. Assisted by his able wife Herkie and an

enthusiastic and dedicated team, Wilropark Motor Repair Centre is now a

thriving business, providing a valuable service to the community under the

e-CAR banner. Harry and Herkie became e-CAR members at the end of

2008, after an evaluation of the market and the realisation that whilst

Wilropark Motor Repair Centre was an established brand in Roodepoort,

there would be a need in the future to be identified with a national brand

such as e-CAR, as insurance against demographic changes. Additional long

term benefits are the guaranteed supply of premium branded parts at competitive prices from the Diesel-Electric organisation, togeth-

er with the latest technology updates and access to state of the art diagnostic equipment and technical training and support from the

world’s leading parts organisation, Robert Bosch. Harry and Herkie were also attracted to the networking opportunities associated with

belonging to a national organisation, and the high standards demanded, together with an affiliation with the AA and the RMI.

The West Rand has a shining star on the horizon, and whilst e-CAR is barely six years old and needs to play catch-up on century old

brands, Harry and Herkie look forward to the day that e-CAR is as ubiquitous as Coca-Cola.

M A R C H 2 0 1 060

Harry Ginsberg ensures that he has the diagnostic tools for any job

The Wilropark Motor Repair Centre team – ready and willing to keep Roodepoort on the road

A Shining Star on the HorizonFor anyone on the West Rand who is looking for specialist care for their motor vehi-cle, help is on the horizon. 11 Sonop Street, Horizon, Roodepoort, to be specific.Here you will find Wilropark Motor Repair Centre, the e-CAR outlet of choice west ofthe N1. Like most e-CAR outlets, this well established automotive workshop is run bya professional technician, with the support of an enthusiastic and dedicated team.

The power of knowledge eng ineer ing

61

SKF has unveiled the latest version of its DVD catalogue that

gives aftermarket customers easy access to vital information about

the company's expanded product offering for cars and commer-

cial vehicles. As an established OE supplier to all of the major

global car manufacturers, SKF's aftermarket product range covers

popular car and commercial vehicle applications that are required

in today's repair market. To illustrate this point, the SKF DVD

Catalogue October 2009 features 27,316 new vehicle links across

a range of products. This is broken down in to 11,586 new links

to car models and 15,730 for commercial vehicle models.

The SKF DVD Catalogue is based on the popular TecDoc format

to make searching for products easier and faster and product

groups featured in the DVD catalogue include wheel bearing kits,

timing belt kits, multi-V belt kits, auxiliary belts, crankshaft

dampers, water pump kits, CV joint kits, driveshaft kits, boot kits

and suspension kits. As an aftermarket 'one-stop supplier' that

believes vehicle technicians should carry out a complete repair at

the first time of asking, SKF has added 388 new kits to its latest

DVD catalogue - 43 of which are for commercial vehicles. Each

kit contains all of the necessary parts to guarantee a thorough and

safe repair first time. All of the information contained in the SKF

DVD Catalogue is accompanied by specific product pictures, dia-

grams and training videos that are an essential tool in today's busy

vehicle repair workshop.

SKF is committed to enhancing standards of technicalcompetence in the aftermarket.

M A R C H 2 0 1 0

SKF releases latest DVD Catalogue

Book your free updated SKF DVD catalogue from: vsmsales.za@skf.com

Latest aftermarket reference tool now featuring popular commercial vehicle information,

technical bulletins and downloadable catalogues!

It was the evening of Thursday, 18th

February 2010, when I hit a particu-

larly nasty brute at the corner of

Maxwell Drive and Witkoppen

Road, just across from the entrance to

Megawatt Park. The result was a punc-

tured (and destroyed) tyre and a damaged

rim. An expensive experience, as 17 inch

low profile high performance tyres do not

come cheap, and the repair of a rim runs

into the high hundreds. Expensive for me,

but also expensive for the country. There

must be literally thousands of motorists

every day experiencing this financial and

emotional trauma, as a result of incompe-

tent local authorities. And there is very lit-

tle we can do about it, because we have

descended into third world insanity. No

longer can Amos Masondo claim that

Johannesburg is a world class African city.

Oh no, we are an African class world city,

squire. Potholes, broken traffic lights,

unkempt verges, filthy rivers, polluted

lakes, the list is endless. We are being gov-

erned and our cities are being managed

(managed used very generously) by total

incompetents. Appointed not for ability,

but by political affiliation. It is a disgrace-

ful and unacceptable situation, but as long

as there is no political will, we are doomed

to live according to the whim of the

lowest common denominator.

The heavy rains have been blamed for the

potholes and the out of order robots. Nice

one, but I recently spent a couple of wet

and wintry weeks in London, and guess

what – not a pothole or broken robot in

sight. I searched assiduously, but could

not find any. Amazing, isn’t it? We must

have seriously acidic rain up on the

Highveld! No sir, it is not the rain. The

difference is that London is a world class

English city, run by first class people,

whilst Johannesburg is an African class

world city, run by third class buffoons.

The management responsible for this fias-

co should be fired forthwith, as they are

inglorious bastards. Replace them with

glorious progeny.

W i l d e T h i n g s

M A R C H 2 0 1 062

Inglourious BasterdsGP stands for Gauteng Province. It is also known as GangstersParadise. And most accurately, its new moniker is Giant Potholes. Allvery humorous, but not so funny when you are a victim of this provin-cial and municipal ineptitude. This came home to me recently when Iwas at the sharp end of such shoddy maintenance.

by Fingal Wilde

This was taken on the evening of 18thFebruary 2010.

Same pothole, taken on 24th February 2010(note – no rain from 18th to 24th

February). This pothole shall continue to be observed for action/inaction by the

inglourious basterds.

Amos is very unhappy – Durban has shown him up with the biggest pothole, and working robots!

Answer from page 6

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

M A R C H 2 0 1 064

From A to ZNissan’s Z car has had a patchy past, growing from a lean andfocused sports coupe to a bloated and overweight cruiser whicheventually morphed into a grand tourer.by Adrian Burford

It is safe to say that with the 350Z

they got their Mojo back and have

subsequently built on that with the

370Z. It isn’t often that cars become

smaller with successive generations but

that’s what happened with the 370 com-

pared to the 350: overall length dropped

by 60 mm and wheelbase by 100 mm. All

that grew was the engine capacity and with

the V6 now measures 3,7-litres and pro-

duces a useful – albeit slightly agricultural

– 245 kW and 363 Nm. Which is well over

double the power and almost twice as

much torque as the original 240Z made

from its 2,4 litre in-line six. At the time

though, the 240Z’s 200-odd Newtons and

112-odd kW was a real talking point, but

not as much as the styling, which while

generic in some ways (there was more than

a hint of Ferrari GTO, Jaguar E-type and

even Toyota’s stillborn GT2000 in the pro-

portions), was pretty much revolutionary

for a mass market Japanese car. As it turns

out, the links to the GT2000 were not

coincidental, as both were penned by the

same man: Albrecht Goertz. He had

already made a name for himself by design-

ing the BMW 507 and Datsun, under

Goertz’s guidance, had dabbled in small,

two-seater sports cars in the late 1950s and

early 1960s before he went to Toyota.

There he styled the acclaimed GT2000

which was powered by a high-revving

Yamaha-designed 2,0-litre engine. In what

is considered one of the great oversights in

automotive history, it never made it into

series production.Goertz was back at

Datsun by the end of 1967 and two years

later the 240Z was on sale in Japan (as the

Fairlady Z with a 2.0-litre six) and in early

1970 it reached North American show-

rooms badged as a 240Z and with a larger

engine. Not only did the car look right

with its long bonnet and short overhangs,

but it handled well too. Finally, the entire

drivetrain was tough and reliable and the

car very soon became highly sought-after.

For 1974 Datsun introduced a 260Z which

had roughly 30 kW more, the need to go

bigger on the engine prompted to some

degree by power-sapping emission control

hardware which was rapidly being intro-

duced in the world’s biggest car market. At

the same time, a 2+2 version was

announced, to be built on a wheelbase

which was 30 cm longer, but also adding

close on half a metre to the overall length.

In retrospect this is where the rot started

and the car was obviously heavier. By 1975

the Z needed a 2.8-litr powerplant to cope

with emission requirements, while crash

legislation required bigger and heavier

impact-resistant bumpers which spoiled

the looks and prevented an improvement

in the power to weight ratio, despite a shift

to fuel injection. The 280Z two-seater was

a remarkable 236 kilograms heavier than

the original 240Z! The American market

seemed to embrace it nonetheless, not too

concerned about ride and handling charac-

teristics which were now distinctly boule-

vard cruiser in nature…Things continued

in this vein into the early 1980s, with the

straight six engine eventually needing

forced induction. In 1983 the Z31 series

was introduced, now with a

3,0-litre V6, either normally aspirated or

turbocharged – in which guise it made the

best part of 160 kW. Pop-up headlights

(very ‘in’ back in the 1980s) were a feature

of the design, but the car wasn’t pretty,

thanks to the long overhangs and slabby

sheetmetal. Things looked better with the

introduction of the all-new Z-32 series, in

which car the VG30 engine reached a new

level of technological excellence. Four

cams, 24 valves and twin turbochargers

gave it 224 kW and overall the car show-

cased what Nissan’s engineers were capable

of. Fancy suspension with wider track

widths and a longer wheelbase enhanced

stability while it looked like a sports car

once again too, Nissan benchmarking it

against the likes of the Porsche 944 Turbo.

A couple of hundred of these cars came to

South Africa in the early 1990s, but more

than a decade was to pass before the arrival

of the 350Z. The keen sense of anticipation

which heralded that event confirmed how

well-entrenched the ‘Zee’ badge is in local

car culture, and it was good to see that

the newcomer paid homage to the

fundamental simplicity of the 240Z, rather

than the underpowered heavyweights of

the late 1980s.

Partinform Visits the Southern CapeThe Partinform Road Show has a busy and compressed schedule this year, having

to accommodate a secondary event which has elbowed its way onto the SouthAfrican calendar in June and July 2010. This secondary event involves teams fromsome 32 countries together with their vocal supporters, to find out which team can

get a round ball the most times into a well protected net, for which they get agolden chalice. ABR is not sure whether it can use the words soccer, football,

world cup or 2010, because it does not want to attract the ire and interest of theFIFA mafia and its cash hungry lawyers, so let us just call it the Tenth Year of the

Third Millennium Expensive Round Ball Rip Off.

M A R C H 2 0 1 066

P a r t i n f o r m

P a r t i n f o r m

67

This event, which has made travel and accommodation challenging for the mid winter months,

has meant that Partinform has had to be shoehorned into four events from February to May

2010, and another four events from August to November 2010. This makes for a winter of dis-

content, but we do get eight great events in our milder months. The schedule kicked off at the George Civic Centre on 11

February 2010, and the usual format of edutainment and knowledge transfer hit the proverbial button. George may be in the grip of a

pernicious drought and a worrying shortage of water, but there was no shortage of information, hands on understanding, one on one

interaction and important networking on the evening of the show, as 160 plus eager visitors from George, Knysna, Mossel Bay,

Oudtshoorn and even further descended on the Civic Centre to get their fill of parts perception and quality infusion. ABR was, as usual,

conspicuously present to record the proceedings, and we give our readers a pictorial overview of what is fast becoming the “not to be

missed” parts event on the southern African calendar.

M A R C H 2 0 1 0

The schedule for the balance of the year:Mthata - 9 March • Gaborone – 20 April • Witbank – 11 May • Newcastle – 17 August • Polokwane – 21 September

Rustenburg – 19 October • Soweto – 9 November

Two mobile messages – both positive, notnegative, some may say electrifying

... getting ready for the influx

The general feelingamongst the visitors was

that Partinform is ...

The winner of the Partinform Ferrari Experience to beheld at Zwartkops in November 2010 was Riaan van

Rensburg of Dolphin Motors, Oudtshoorn

Other winners received prizes

from Willard, Safeline and

Schaeffler

Our most senior politician wouldbe interested in this product

Time to take stock of what we’ve learnt

...some eye candy

Holts - the latest Partinform member

The 3008 is built on the same platform as the 308

hatchback. In terms of styling it is immediately recog-

nizable as a Peugeot but at the same time has its own

individual personality. It is a mixture of flowing lines

and robust design features that should cater to the tastes of every

person expecting different things from it.

The 3008 is 4365mm long and has a wheelbase of 2613mm. This

means that it will have more than enough space on the inside and

in the back to haul luggage. It also comes equipped with a

panoramic roof to further enhance the feeling of space on the

inside.

Fortunately space is not the only luxury in this vehicle. It has

comfortable leather seats that can be heated at the touch of a but-

ton. For the warmer days it has climate control air conditioning

with an air quality sensor to keep out any outside pollution. In

tune with the standards we have come to expect from this seg-

ment, it also has host of useful storage spaces around the cabin. It

is small but significant features like these that make up a big part

of the luxurious elements of a car.

The previously mentioned luggage space is easily accessed by a

tailgate that splits into two parts. As usual the seats can be folded

down so that the luggage area can be expanded to enormous pro-

portions.

The 3008 can be fitted with a choice of three engines. Each of

these has its own positive attributes, while all of them incorporate

the latest technology to keep fuel consumption and emissions as

low as possible.

The entry level is offered with a 1.6VTi petrol engine that devel-

ops 88kw and 160Nm of torque. Further up in the line is the 1.6l

engine that comes equipped with a high pressure turbo. This unit

is meant for more spirited driving since it delivers 115kw of

power and an impressive 240Nm. Peugeot has also chosen to

include a diesel in the launch line-up. The 2.0l HDi develops

110kw and a simply staggering 340Nm of torque. This perform-

ance potential and a claimed consumption of 5.6l/100km should

make this unit the default choice for prospective owners.

Both turbo models come standard with a six speed manual gear-

box and the naturally aspirated 1.6 is fitted with a five speed. To

further enrich the 3008, Peugeot has added an impressive amount

of safety features. Both turbo models come with a dynamic roll

control device to keep it on the road when you are cornering

hard. The premium models can also be specified with a grip con-

trol if you are intent on taking it off the beaten track.

This gives the driver the option of dialling in a specific road sur-

face so that the car can set itself up to best tackle whatever you

may be facing.

All the usual features you would expect of a car in this segment

are included as standard. It seems that Peugeot has launched a

strong contender to some of the more established players in the

market.

by Howard Keeg

V e h i c l e L a u n c h

M A R C H 2 0 1 068

Le CrossoverPeugeot has finally taken the plunge by introducing its 3008 into thelocal SUV market. According to Peugeot this vehicle is “fresh” and“versatile” and this allows it to compete over a wide range of segments.They are gunning for a share of the SUV as well as the MPV market.

Even the residents of the Kalahari were impressed

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

by Roger McCleery

Answers on page 74

1. What car company makes the SX4?

2. Where it is made?

3. Name the only woman driver to have won a Formula 1 race.

4. What nationality was she?

5. Name two Chinese cars that entered the 2010 Dakar rally and finished.

6. Who heads up “Burchmores" – the auctioneers?

7. In which country is the Suzuki Alto manufactured?

8. What car company has taken 20% of Suzuki?

9. What is the mascot on the bonnet of a Rolls Royce called?

10. Name the third French car manufacturer to set up an office in South Africa.

11. Who makes the 15-seater Inkunzi taxi?

12. Where does Andy Green, the fastest man on land in the world, want to break his land speed record in 2011 / 2012?

13. In 1904 an American motor man set up a new world land speed record. Who was he?

14. What is the maximum fine for drunk driving in SA?

15. What make of vehicle finished 1 - 2 - 3 in the Dakar Rally?

16. What do the letters ‘AC’ in AC Cobra stand for?

17. When did the Boeing 747 Jumbo make its first commercial flight?

18. What was the name of the cartoon character that could climb up walls and eventually was the name of a vehicle?

19. Who heads up the TV programme ‘Top Gear’?

20. Who designed the pre-World War II Auto Union V16 racing car?

69M A R C H 2 0 1 0

A I D C Q u i z

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

M A R C H 2 0 1 070

Revamped Suzuki SX4Suzuki Auto South Africa recently revamped and expanded their headlining SX4crossover range. The greatest improvement has been made to the engine and drivesystem. For the first time South African customers get the opportunity to buy a SX4with all wheel drive. This “intelligent” four wheel drive system allows drivers to switch between different driving modes with nothing more than the touch of abutton. The driver can use 2WD on normal roads to save on fuel costs and canthen switch to 4WD when the going gets a little tough.

Much improvement has also been made in the engine compartment. The 2.0l four cylinder engine has been revised to

develop 112Kw and 190Nm of torque. The engine has been fitted with variable valve timing and this in turn has

improved the fuel consumption by as much as 19.5% on certain models. This system optimises valve train operation

to give you loads of torque without having to stress the engine.

The manual model has a claimed fuel consumption of 7.3l/100km while the CVT only sips 7.6l/100km. Both models have claimed

emission figures that are 15 to 20% less than the previous equivalent model.

This impressive new engine can be mated to a six speed manual gearbox, or you can have it with a brand new CVT box that replaces

the previous four-speed automatic. Both these gearboxes are extremely smooth and work well with the revamped engine. The CVT

gearbox even allows you to change gears from paddles behind the steering wheel.

The touch-ups are not only limited to the engine bay. Some subtle changes

have been made to keep the SX4 looking as up to date as its competitors.

This includes a new mesh grill in the front that compliments a reworked

front bumper. The overall look has not changed much, but then it was not

a bad looking vehicle to begin with.

On the inside we find some changes to the comfort and refinement as well.

This includes new cladding for the seats as well as the addition of a comfort-

able arm rest for the front passengers. Keeping up with current trends,

Suzuki has added a digital read-out on the instrument cluster that is

extremely easy to read and understand. Couple this with a revamped centre

console and you have a winning recipe for interior comfort.

On a recent trip to China I visited both the Chery andFoton plants. I had heardabout large plants in China

but still expected to see third rate facilitiesproducing substandard vehicles. Was I infor a surprise! – these facilities were spot-less first world plants, set up with the latest equipment sourced from topGerman and Italian machine suppliers.Out of these plants come engines and carsof ever increasing quality. The speed inwhich the quality has improved is impres-sive. In the Chery plant I saw a few newmodels (not here yet) where finishes arenearly as good as what we see from today’sKorean cars, not yet up to European specbut getting there. A huge improvement.This brings me to the latest offering fromChina. It’s called the Florid and it’s madeby GWM. Who comes up with thesenames? Did they not think? Hang on a bit,sounds too close to HORRID. Well fortu-nately for GWM this little car is far fromhorrid. At last a decent looking car fromChina - from the front it’s a clone of theYaris and from the side you could confuseit with the Suzuki Swift. Blend all that andyou have the Florid. Quite frankly it’s atreat on the eyes, and honestly it is a goodlooking car. What I like about the Florid isthat it doesn`t look girly - ever seen a guyin a Twingo? Alto? Charade? Picanto? 107?No! Unless it’s his sister’s.

Up until now guys were stuck with CitiGolfs. To put it more pc, the Florid is notgender specific. Not only is the Floridgood looking it’s also spec’d to the hilt.Starting with dual front airbags and ABSbrakes- good for safety- comfort is sup-plied by a/c, power steering, electric win-dows all round, radio/cd/mp3 player, andcomfy seats, leather is a pay extra option,rear seats can be split and folded to packextra goodies in and security comes withcentral locking and alarm activated conve-niently via key remote. Inside is all plastic,but what do expect from this kind of car?It is an entry level car and all its competi-tors are also a bit plasticky. Instrumentsare housed in a central cluster and featurerev counter, fuel gauges and a speedo (notthe Ryk Neethling type). The whole inte-rior seems to be put together rather welland not once did I hear a rattle or squeak.Personally I don’t like the instruments fit-ted in the centre mainly because you haveto take your eyes off the road to see whatspeed you are doing, unlike “normal” carswhen you can just glance down at theinfo. One component that is missing andseems to be a common trend on new carsis the temp gauge - it has been replacedwith a blue and red temp signal, blue forwhen it’s cold and red for when you havecooked your engine and blown a head gas-ket!!! Note to car manufacturers: Put thetemp gauge back, we want to be able to

see if the car is running too hot or cold.All this sounds good but how does it go?Well, not bad. The Florid is fitted with a1500 VVT engine producing 77kw, notsome wheezy 1000cc engine like a lot ofits competition. The engine is not themost powerful unit around but it’s far bet-ter than any one litre engine. The Floridwill cruise all day long at highway speedsand more without any fuss, even at reefaltitudes. Gearbox is as to be expected afive speed manual, not as slick as a Toyotabut it works! Now that the Citi Golf hasbeen cancelled there aren’t too many carsto replace it when it comes to street credas most of the competition may be moremodern and have better safety credentialsbut are generally boring. The Florid fillsthat gap - not that it’s an exciting car butit just offers such great value with addedgood looks.

The best thing about the Florid is theprice @ R109 000. It’s a bargain andleaves you thinking that there must be acatch. At this price the Florid is hard tofault and deserves to be a big seller forGWM. If you’re in the market for thiskind of car you would be stupid not to gofor a test drive. As one Chinese manufac-turer once said, “We don't make cheapcars; we make cars more affordable”...Makes you think.

A W o r d o n C a r s

This Florid Ain’t That HorridAll Chinese vehicles are crap! I wouldn`t buy one - ever! Bet you'veheard that before. Well, don't jump to conclusions! Some are crap, butyou might well find that those vehicles aren’t around anymore, goodriddance and don't come back.by Adam Ford

Celebrity Mechanic

M A R C H 2 0 1 072

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

Horses forCoursesThe Prize Stallion andthe Workhorse

In the space of two weeks during February 2010, I had the opportunity to road test

two diametrically opposed Nissans. First up was the prize stallion, the Qashqai 2

litre petrol engine n-tec, a superb crossover leisure vehicle, and at the time of the

road test, to my mind definitely the pick of the bunch in the crossover segment. You sit

high, comfortable and relaxed in a spacious cabin, tackling the pernicious Gauteng pot-

holes with relative ease. Even when you have to take evasive action when a large hidden

pothole appears suddenly as you follow a delivery vehicle with a driver not particularly

fussed about tyre and rim damage, the Qashqai handles like a low slung saloon, as you

swerve safely in style. It is the perfect vehicle for both commuting and occasional off-

road excursions, and is highly recommended, and frugal to boot.

Next up was the workhorse, the successor to the iconic Nissan 1400 half-tonner, the

NP200 1,5 dCi. Far better appointed than its predecessor, this spirited young filly is not

a workhorse in the fille de joie sense, but it is reasonably pleasurable to drive as it goes

about its load carrying duties. Not having the wherewithal to really test its mettle, I can

only predict that it will stay the course for its designated role, and extremely cost effec-

tively. It may have its detractors (one wag said that the dCi is short for Dacia), but what

really impressed me is that when I handed the vehicle back, having done 260 km, the

fuel gauge had yet to move. Not very scientific, I agree, but to me a good enough sign

that this little filly goes easy on the oats.

by Howard Keeg

M A R C H 2 0 1 0

The Workhorse (quickpic)

The Prize Stallion (quickpic)

M A R C H 2 0 1 074

Formula 1 has a NewLook for 2010

New teams, new rules, newpoints scoring and new cars allpoint to another drama packed

season of World ChampionshipFormula 1 Racing. Maybe there won’t be much passing as noth-ing has changed to improve this, but certainly we will have actionon and off the circuits. Regardless of this, 19 Grands Prix willkeep us glued to the TV in 2010 as this is the longest season inhistory. It all gets under way in Bahrain on Sunday 14th Marchand stays out East until May, when it comes back to Europe andCatalunya. Canada is back on the calendar (they must have paidBernie). Korea is now holding their first Formula 1 race so theGovernment there must be helping with the funding, whichrumour has it has reached at least R500m for one GP. Great cir-cuits where drivers can pass and test their skills and bodies are stillfeatured, like Turkey, Silverstone, Belgium, Italy, Japan andBrazil. Street circuits are used like Melbourne, Monaco andCanada and that dreadful one in Valencia, which goes around theharbour. Equally boring is the single file circuit under lights inSingapore.

Fair are the GP circuits in Spain and Germany.

GP Circuits with great facilities and few passing opportunitiesdespite ultra wide roads are Bahrain, Malaysia, China, Hungaryand Abu Dhabi. An unknown entity is Korea. Hopefully it isnot another follow-my-leader, no-passing track where the driversthat qualify on the front row on Saturday generally finish upfront on the Sunday. The regular teams that should fill the toppoints scoring positions are Mercedes Benz (formerly Brawn),McLaren, Ferrari and Red Bull. Behind them come the second-stringers – Williams-Cosworth, Torro Rosso Ferrari, RenaultSauber (ex BMW with a Ferrari engine) and maybe Force IndiaMercedes Benz. These teams can cause a few surprises during theyear. New to the scene are Virgin Cosworth, Lotus Cosworth andCampos Meta Cosworth. Unlikely to field a team is theAmerican US F1 Cosworth set-up which rumour says has folded.Hoping to replace these Yanks is the Serbian Stephan Team, whoare running the 2009 Formula 1 Toyotas, I am told. Supposedlydeparted Toyota is going to support them with engine and bitsthrough the back door, straight from the plant. They hope to geta spot on the grid, although they are not registered so far. Theycan’t even get Bridgestone tyres for testing. Drivers for this teamcould be the French Canadian, Jules Villeneuve, who won theWorld Championship in 1997, and Japan’s ace, Kazuki

Nakajima. I am sure they will get a spot in the end. New driv-ers, all with experience of winning international or nationalchampionships are Bruno Senna (nephew of Ayrton), whocomes out with the Campos Meta line-up. He hasn’t got a part-ner yet, just three weeks before the start of the season’s opener.New also is the Russian, Vilaty Petrov, who signed with Renault.Pedro de la Rosa is back in GP racing with Sauber Ferrari afteryears being a tester for Ferrari. He is joined by Kamui Kobayashi,the Japanese express train. Williams once again brings in newdrivers to its team. Frank seems to do this every year. BesidesBarricello, there is Formula 2 star and A1GP Champion, NicoHulkenberg. Lucas di Grassi, the Formula 2 hotshot has joinedVirgin Active with the experienced Timo Glock as team-mate,determined to show that he has the talent to live with the best.

Things can still change before Bahrain on 12th March. In mybook there is going to be a war upfront, not only between teamsbut drivers versus drivers as well. Michael Schumacher, who Ihope will drill the lot of them, will be number 1 in MercedesBenz. He will need a few races to sort out the equipment. NicoRosberg will be his wing-man. Alonso will lead the way withFerrari with a determined and super-fit Massa showing that he isstill their boy, even though Michael Schumacher, his supporter,has departed. News is that Ferrari has issued a directive that onlyItalian will be spoken in the team now that Ross Brawn and RoryByrne have, or will be, departing the scene. Last month I saidFerrari would be political – it has started already. Button will dobattle with Lewis Hamilton, who has the McLaren team builtaround him. Both are World Champions and have MBE’s makesit even more difficult, although Button could have the edge witha heavy fuel load in the car at the start of any race. Vettel will getpreference over Webber, although Mark Webber won two GP’slast year. Early season testing which is essential for the teams dueto the limited practice, is really an exercise in PR, and also sort-ing out their new cars. Interesting will be the new refuellingrules, with cars carrying as much as 240 litres to start a race, andthere is no refuelling. To give you an idea what a handicap willbe, have you ever felt the weight of a 200 litre drum of fuel? Thatis heavy, and will definitely affect the cars in the first part of anyGP.

Hope of hopes is that we have another fairytale team coming intoGP racing, to do another Brawn GP. But I doubt it.

Enjoy the season.

F a s t W h e e l s

by Roger McCleery

1. Suzuki

2. Japan

3. Desiree Wilson

4. South Africa

5. Chery and GWM

6. Darryl Jacobsen

7. India

8. Volkswagen AG

9. Spirit of Ecstasy

10. Citroën

11. Foton

12. South Africa

13. Henry Ford

14. R120 000

15. VW

16. Auto Carrier

17. 1970

18. Jeep

19. Jeremy Clarkson

20. Ferdinand Porsche

Answers From page 69

M i d a s S p o r t

75

In the Driver’s Seat

Midas Franchise, Marketing and Commercial

Vehicle Director Stefan le Roux puts it suc-

cinctly, “Midas is the preferred distributor,

value-added provider and franchisor to the

automotive aftermarket in South Africa, so we

feel it is imperative that we put something back for our customers

and franchisees, and motorsport is a logical channel.” Midas are

not new to motorsport sponsorship, but having taken a sabbatical

over the past few years, and having put a tentative toe in the water

in 2009, Midas is now back with a bang, but it is not the big bang

approach that some would expect. High profile sponsorships may

satisfy the egos of the chosen few, but can result in unsatisfactory

returns on investment, and disillusionment in the long run.

Therefore the approach from Midas is to spread their largesse

across the total racing firmament, thus supporting as many

drivers and as many variations as possible. As Stefan explains, “the

Midas retail store is designed around the needs of any vehicle

owner focusing on various product ranges from parts and acces-

sories through to lifestyle equipment. There are over 265 fran-

chised outlets in southern Africa, and with the biggest franchise

footprint across the region, we need to ensure that our motorsport

sponsorship activities dovetails with this geographical reality.”

This philosophy means that Midas is going to be active in

Production Cars, the Protour, Formula Ford, the Clubman Series,

historicals, oval track, motocross, regional rallying, modified

saloons, and more. Even bass fishing has got the nod, as an

acknowledgement to the lifestyle element of Midas shops. Stefan

expands on this philosophy, “We need to recognise our leadership

role in the automotive aftermarket, and to show our face in

motorsport and related activities across the nation. This generic

approach fits our profile perfectly. We offer our customers the full

range of premium branded product together with value for

money brands such as Arrow and Motopart. This approach caters

for the full spectrum of customers – for those who are prepared to

pay more for their favourite brand, and for those who still want

quality product with birth certificates but are a little more cost

conscious. Our motorsport sponsorships are similarly structured.”

M A R C H 2 0 1 0

A series of articles on Midas motorsport initiatives in 2010

“There’s more to Midas ..” takes form in the motorsport arena in 2010, with a Midaspresence across the spectrum of the sport, in a calculated effort to support localmotorsport talent from Cape Town to the Limpopo Province, and beyond.

The Midas liveried Lotus Exige shall participate in the Bridgestone Production CarChampionship, with Richard Pinard at the wheel. This vehicle will be the smallest car inthe field, with the smallest engine. But don’t expect it to be bullied, as its weight distribu-

tion and 1 800 cc 16 valve Toyota engine fitted with a programmable ignition and enginemanagement system, could give the big boys some major headaches.

M A R C H 2 0 1 076

T h e L a s t W r i t e s by Baron Claude Borlz

“For our more mature readers .....”

Underwear CrisisAn Englishman's wife steps up to the first tee and, as she bends over to place her ball, a

gust of wind blows her skirt up and reveals her lack of underwear. "Good God, woman!

Why aren't you wearing any knickers?" her husband demanded. "Well, you don't give

me enough housekeeping money to afford any," she replied. The Englishman immedi-

ately reaches into his pocket and says, "For the sake of decency, here's 20. Go and buy

yourself some underwear." Next, the Irishman's wife bends over to set her ball on the tee.

Her skirt also blows up to show that she is wearing no undies. "Blessed Virgin Mary,

woman! You've no knickers. Why not?" She replies, "I can't afford any on the money you

give me." He reaches into his pocket and says, "For the sake of decency, here's 10. Go

and buy yourself some underwear!" Lastly, the Scotsman's wife bends over. The wind also

takes her skirt over her head to reveal that she, too, is naked under it. "Sweet Mudder,

Maggie! Where the fook are yer drawers?" She too explains, "You dinna give me enough

money ta be able ta affarrd any." The Scotsman reaches into his pocket and says "Well,

fer the sake of decency, here's a comb. Tidy yerself up a bit."

The other day I was in an empty

pub having a quiet beer by myself.

The door opened and in walked the most stun-

ning woman I've ever laid eyes on. 5'11'' tall,

stunning blue eyes, silky blonde hair, an hour-

glass figure barely covered by a tiny miniskirt

and a flimsy cotton top.. I could see she was not

wearing a bra and her incredibly firm breasts

were on show. After watching her walk in I

turned back to my beer. No sooner had I taken

a sip when I turned to see her pulling another

bar stool up close to me and sitting down. She

said 'Hi', and I said 'Hi' in return. She asked

how I was and took my hand and placed it on

her perfect inner thigh, rubbing it up and

down. 'So, does that make you feel good ?' she

asked. 'I'll bet you feel good,' she continued. 'In

fact, I'll bet you've never felt this good before.'

'Well, I have,' I corrected her. 'You see, when I

was 18, I was picked to play for the school 1st.

XV in the Public School Finals in front of a

crowd of about 3000 and I felt really good.' I

immediately felt a bit pathetic saying that and I

thought she would get up and go but she took

my hand off her thigh and put it up the front

of her top. Her protuberance pushed into my

palm as she massaged my hand into her pert,

perfect breast. 'How do you feel now,' she

purred. 'OK' I replied. Again, she said, 'I'll bet

you do. In fact, I'll bet you've never felt THIS

good before!' Unbelievably I heard myself say-

ing 'Well, actually I have. In that game, we were

down by six points with about 20 seconds left

in the match. The Opposition kicked the ball

deep into our half of the field, where I caught

it... I ran up field, side-stepping past the first

few defenders, handed off a couple of would-be

tacklers, burst through a few forwards, chipped

over their fullback, regathered and scored a try

right under the posts with about 2 or 3 seconds

'till full time. We were still behind by one

point, but I had a simple kick at goal with

which to win the match and........' "Ahhh...."

she growled between clenched teeth, more than

a bit miffed, pulled my hand from under her

top and thrust it down the front of her skirt.

My fingers immediately met what felt like a

wisp of soft moist cotton , and she whispered,

'Well tell me this, Mr. Rugby Man: Have you

ever felt such a perfect …” Before she could fin-

ish, I interjected 'I certainly have, I missed the

kick..'

CHEMISTRY STUDENT The following is an actual question given on University of Washington chemistry

midterm. The answer by one student was so 'profound' that the professor shared it

with colleagues, via the Internet, which is, of course, why we now have the pleasure

of enjoying it as well :

Bonus Question: Is Hell exothermic (gives off heat) or endothermic (absorbs heat)?

Most of the students wrote proofs of their beliefs using Boyle's Law (gas cools when

it expands and heats when it is compressed) or some variant. One student, however,

wrote the following: 'First, we need to know how the mass of Hell is changing in

time. So we need to know the rate at which souls are moving into Hell and the rate

at which they are leaving. I think that we can safely assume that once a soul gets to

Hell, it will not leave. Therefore, no souls are leaving. As for how many souls are

entering Hell, let's look at the different religions that exist in the world today. Most

of these religions state that if you are not a member of their religion, you will go to

Hell. Since there is more than one of these religions and since people do not belong

to more than one religion, we can project that all souls go to Hell. With birth and

death rates as they are, we can expect the number of souls in Hell to increase expo-

nentially. Now, we look at the rate of change of the volume in Hell because Boyle's

Law states that in order for the temperature and pressure in Hell to stay the same, the

volume of Hell has to expand proportionately as souls are added. This gives two pos-

sibilities:

1. If Hell is expanding at a slower rate than the rate at which souls enter Hell, then

the temperature and pressure in Hell will increase until all Hell breaks loose.

2. If Hell is expanding at a rate faster than the increase of souls in Hell, then the tem-

perature and pressure will drop until Hell freezes over.

So which is it? If we accept the postulate given to me by Teresa during my Freshman

year that, 'It will be a cold day in Hell before I sleep with you,' and take into account

the fact that I slept with her last night, then number two must be true, and thus I am

sure that Hell is exothermic and has already frozen over. The corollary of this theory

is that since Hell has frozen over, it follows that it is not accepting any more souls and

is therefore, Extinct....... leaving only Heaven, thereby proving the existence of a

divine being which explains why, last night, Teresa kept shouting 'Oh my God.' '

THIS STUDENT RECEIVED AN A+.

What a single spelling mistake can do on an SMS... Husband went to Pretoria. And sent smsto wife: "Having a wonderful time, wish you were HER ......!!

1