Vol 1

7 •

June

201

1

A set of Scorpion Verde tyres courtesy of Pirelli

Foc

us

on

Tyr

e c

osT

s

Rubber prices hit tyre makers hard

Dandelions – the new rubber source?

One-on-One with Supa Quick’s Ramano Daniels

New eco-friendly products from Continental and Pirelli

Apollo’s Glittering Awards Gala

10027 Bandag AS SA Treads.indd 1 10/7/10 12:25:26 PM

editor LianaShaw

Technical consultant WrayShaw

reproduction DianevanNoort

Printing TYPO

–ColourPrintingSpecialists

Distribution PrestigeBulkMailers

Advertising LianaShaw

Contentsone-on-oneNewlegacywithSupaQuickLeader,RomanoDaniels.......................... 2

Focus onSyntheticrubbercostssettoriseasnaturalrubberpricessoar........... 9RabbitFeedaSourceofRubber?DandelionsHoldtheKey!..................................................................... 17

new Products ContinentalTreadsNewGround–EntertheContiEcoContact5andContiSportContact5..................... 19EntertheScorpionVerdePirelli’sfirstecotyreforSUVs...................... 23

Industry newsTubestonecelebrates10yearsofsuccessfultrading........................... 24Anighttoremember!ApolloAwardseveningrecognisesDealersingrandstyle............................................................................ 29

conti cornerContinental’sshareofcommercialsegmentsettoescalate................. 32

Talking TyresTYRESinmotorsport–WinonSunday,sellonMonday..................... 37

Goodyear newsGoodyear’sastonishingneweaglehaslanded...................................... 40

Dealer Profile RetailkingsenterTyreTrade!................................................................. 43

World newsRubberplantationacquisitionsapossibilityforApollo.......................... 47Trucktyreofthefuture?Michelinrevealsfivetonnetrailertyre............ 47World’spriciesttyres–setofBugattiVeyronrubbercosts23500pounds! 47Pirelli’snewhardtyretomakeitsdebutinSpain.................................. 47SumitomorubberconsideringBrazil,Indiatyrefactories..................... 47

competition, subscription, Website ........................................ 48

A note from

the editorSpeculation that the tyre sector could

well be hit by another tyre price

hike in the latter part of 2011, is not

without foundation, it would seem.

Primarily dictating these spiralling

costs are raw material increases, in

particular, natural rubber which is

becoming a scarce commodity as a

result of natural disasters disrupting

production and growing demand

from developing nations. Tyre makers

across the world are feeling the pinch

and our local four are no exception. In this issue we take a closer look at

the influencing factors responsible for this state of affairs and examine the

long-term implications for the consumer.

Weaskthelocalproducerstooffertheirviewsonthematteraswellasoffer

possible long-term solutions to the crisis. What, if anything, can be done

tocushiontheblowandwhatmeasuresarebeingput inplacetoensurea

sustainableway forward?All this andmuchmorewillbeaddressed inour

feature story. Astoundingly and according to latest scientific research, the

humbledandelioncouldpossiblyofferastellarsolutiontothisproblem,as

itspropertiesmimicthosefoundinnaturalrubber.Incredible?Wethoughtso

too,butourstoryonpage17confirmsthistobethecase.

Also in this issue, we feature two exciting new offerings from Continental

for thepassengermarketaswellas thenewScorpionVerde–Pirelli’sfirst

eco-friendly tyre for the SUV and Crossover markets. After all, according

toPirelli, itmakessense to target thevehicleswith theheaviest impacton

ourenvironment!Oneluckyreaderstandsthechancetowinasetofthese

magnificentnewtyressodon’tforgettoenterourquarterlycompetition.

OtherstoriesincludetherecentApolloAwardsevening–agrandaffairand

onethatpaidtributetothetopperformingDunlopZonestoresinthecountry.

Attendedbytheindustry’selite,itwillgodownasanighttoremember.Oh…

andspeakingofaccolades,Tubestonealsohastocausetocelebratehaving

reachedanimportantmilestone–10yearsofsuccessfuloftrading.Turnto

page24forthisstory.

Lastbutbynomeansleastwecomefacetofacewiththenewmanatthehelmof

thehighlysuccessfulSupaQuickfranchise.RomanoDanielsassumedtherole

ofmanagingdirectorinthewakeofGavinKockott’sdeparture14monthsago.

Inacandidinterviewhespellsoutthechallengesandaspirationsofhisnewrole

andoutlineshowheplanstotakethefranchisegrouptothenextlevel.

So,sitbackandenjoyourwinteredition.

I n t r o d u c t i o n • 1

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A new legacy One-on-OnewithSupa Quick Leader,

Romano Daniels

Tofurthercompoundthesituation,Gavin’sdeparture

elicited a wave of shock and incredulous

disbelief within the industry. Change was

suddenly inevitableand the franchiseeswere

understandably concerned as to how this

monumental development was going to

affectthemandtheirbusinesses.

It was under this delicate set of

circumstances that Romano Daniels

accepted the challenge of steering

theship intowhat, for themajorityof

franchisees,wasanuncertainfuture.

ThelegendthatisGavinKockott,tookafinalbowas

founderandMDofthesupremelysuccessfulSupa

Quick franchiseof retail stores, inFebruary2010.

Gavin had not only been instrumental in establishing

a company that has since grown into the largest retail

distributioncompanyinSA,butthefranchisemodelthatheand

hismanagementteamemployed,setanewbenchmarkin

the local tyre business…… formidable shoes to

fillforanysuccessor.

2 • O n e - o n - O n e

n TEL: (011) 334-1680 n FAX: (011) 334-1694n Info@leaderquip.co.za n TOLL FREE: 086 000 2010

NATIONWIDE GARAGE EQUIPMENT SALES & SERVICESAuthorised Distributor of HUNTER ENGINEERING COMPANY (U.S.A.) in Sub-Saharan Africa and the Indian Ocean Islands

www.leaderquip.co.za

were not altogether supportive of my new role was made abundantly

clear to me during the first National Council meeting, where I was

toldthattheyviewedmeasnothingmorethanBridgestone’s‘puppet’

andthat theydidn’tbelievethat Iwouldbeabletomakeanyvaluable

contributiontothefranchiseasawholeortotheirbusinesses.

That could not have been easy to hear. How did you react?

Itwas important that I remainedcalm. I knew thatmy responsewould

determinethenewdirectionofthecompany,soIthankedthemandsaid

nowthatIknewwhatIwasdealingwith,Iwasbetterpreparedinorderto

overcomethoseperceptions.Fromtheoutset,therewasnohoneymoon

period–theonlythinglefttodowashittheground,running.

I am remindedof theold adage that today’sproblems

are not necessarily solved with yesterday’s thinking.

Inshort, Iemphasisedtheneedtocreateanewspace

inwhichweneed tooperate. All I asked forwas that

theydidn’tjudgemeonmypredecessororevenonmy

past….butpurelyonmyunderstandingofthebusiness

andhowwearegoingtomoveitforward.

How did you go about gaining an understanding of

the business?

The first order of the day was to begin understanding

the imperatives of retail. I gave myself 100 days - a

benchmarkusedbynewPresidents to theiroffice - to

grasp the concept, a time that was used purely to learn, understand

andcometotermswiththeissuesathand.Thebetterpartof2010was

spent visiting at least half of the 256 outlets across the country (the

remainderwillbeaddressedduringthecourseof2011)acommitment

which I believed to be critical to the process. Thankfully I have a

supportive wife, as you can imagine the extent of travelling and time

awayfromhomesuchanundertakingrequires.

Unlike a company-owned concern, franchisees grapple with unique

issues by virtue of their size, market segmentation and geographical

location.Theyalso functionverydifferently, sogetting toknow them

andtheirindividualissuesandconcerns,requiredalotoflisteningon

mypart.Andlisten, Idid. ItwasimportanttoarriveatapointwhereI

wasequippedtoasktheproperfranchise-relatedquestionsinorderto

beconsideredassuitablyqualifiedtoprovidevaluetotheirbusinesses.

The next 100 days were spent defining my role within the Franchise

Operation.Idismissedtheobviousconnotationsofmytitle–thisroledoes

not demand a gung-ho approach but rather one of measurability – and

strovetoimpressandcreateacultureof‘let’sservewithaviewtoreaching

ourobjectives.’

His extensive career with Firestone and later Bridgestone in a Sales,

Training, Human Resources/industrial labour capacity, followed by

several years in Public Relations and Marketing rendered him an

excellentcandidateforthejob,butSupaQuick’sfranchiseeswerenot

altogetherconvinced.Romanolackedhardcoreretailexperience.And

he was further regarded as the ‘Big Brother’ of Bridgestone. Clearly,

Romanohadhisworkcutout forhim ifhewasgoing toprove tohis

worthandabilitytocontributepositivelytotheGroup.

14monthssincehewasappointedMDofBridgestoneRetail,wecatch

upwithRomanoforacandid interviewwherehebringsusuptodate

onwhathereferstoasthebiggestchallengeofhisprofessionalcareer.

Romano, thank you for making the time to meet with

us. Some would say that only an extremely brave man

would accept the challenge of walking in the shoes of

a man such as Gavin Kockott. How would you respond

to this?

IwouldsaythatIdon’tplanonwalkinginGavin’sshoes.

NoonewilleverdenyGavin’sachievementsincreating

andbuildingabrandofsuchpowerandexcellence.14

months following his departure, Supa Quick is not in

disarray and that’s largely due to the strength of the

brand.

That being said, I don’t believe in the notion of filling

someoneelse’sboots,which iswhy Ihavetakenthedecisiontowalk

my own path and create my own legacy, together with the team I’m

currentlydeveloping.

The latest challenge for the Supa Quick brand, as I see it, is for it to

evolve to the next level. Achieving this will empower the business to

dealwiththeever-changingdemandsofthemarket, therebyensuring

itssustainabilityandlongevity.ThisiswhereIwillbefocusingmyefforts

andattention,evenif itrequiresre-inventingthewheel inaccordance

withmyskills,strengthsandvision.Thankfully,Ifindsolaceinthefact

that despite whatever’s been thrown at me in the past, I’ve managed

to rise above the inevitable. I have been blessed with resilience

and resourcefulness so I will not be intimidated by a seemingly

insurmountablechallenge.I’mhopingthatmyresourcefulness–which

largelyhingesonmymanagementstyle,peopleskills,leadershipskills,

ability to manage stakeholders and the eight years of experience I’ve

amassedindealingwiththeunions-willholdmeingoodstead.

What has been the most difficult obstacle and/or perception you’ve

had to overcome thus far in your new position?

Undoubtedly,gainingtherespectandtrustofthefranchisees.Thatthey

O n e - o n - O n e • 5

❝

This role does not

demand a gung-ho

approach but one of

measurability

❞

My former role within Bridgestone – although viewed with suspicion

by many – also turned out to be a huge benefit in that I was able

startconnecting thedotsbetweenthe twoparties inorder toachieve

pressingchangeswithinthefranchiseoperation–Ibelieve,withafair

amountofsatisfactionfromthefranchisees.

What came next?

The next 100 days, having defined my role and identified market

imperatives, were dedicated to formulating a direction for the Supa

Quickbrand.

What do you mean by market imperatives?

We are operating in a new economy in terms of the consumer, one

that now centres around providing the customer with

thebestpossibleexperiencein-store.Thefishnolonger

swims toyou…youhave togooutand fish.Andeven

the fishing spots have changed – one now needs GP

coordinates,technologyandtheuseofthecorrecttools

tolocateandhookthem.Clearly,weneedtofindnew

solutionsgoingforwardifwearetocompeteeffectively

intothefuture.

We have defined three areas (I’m not able to disclose

toomuchinformationinthisregard)thatwebelievewill

propelusintothefutureandwillenableustotakethis

brandtothenextleveltherebymakingitstronger.

What has been the response from the franchisees?

Nowthatwe’veopenedthedoortheyappeartobemorereceptivetothe

notionthatthebrandcouldwellbeinneedofadegreeofre-invention.

Thankfully,timeisagreatleveller.They’remorepositivetotheprocess

and appear to be willing to give me a chance to prove myself. Once

uponatimeSupaQuickwasaheadofthecurvebutsomewherealong

theline,wewereknockedoff.OuroppositiontodayfollowedtheSupa

Quickmodelwithkeen interestandwhen I lookaround Iseeabitof

SupaQuickineachofthem.Thefranchisehasbeenstrugglingforthe

last10yearstoregainthatcovetedspotandthisisourchallenge,going

forward.

Thatbeingsaid,Ibelievethatwe’reinagoodspacetoachieveournewly

implementedgoals.Thenewcorporate IDhashelpeda lotandwe’re

leveragingitinthebestwaypossible.Moreimportant,fewcompetitors

can rival us in terms of product, alliances, geographic footprint and

brandstrength.

What other challenges exist within the franchise?

One of our biggest challenges was to enforce within the group that

their peers were fellow-franchisees rather than dealers and for them

tobeginreferringtothemassuch.Weneedtounderstandthat there

isadifferencebetweenafranchiseeandadealer–thisunderstanding

provides better discourse in the manner in which we tackle our

challenges. And of course, the age-old issue of competitiveness in

themarketalsoreared itshead,almost immediately.Theconsumer is

still beholden to 78% of its discretionary income to household debt.

EveryonefeltthatthefranchisefeewastoohighandI’mhappytosay

thatthishasbeenadjustedinthefairestwaypossible.

In this time we’ve also paved the way for a legitimate agreement to

bedrawnup thatstipulates that irrespectiveof itsowner,SupaQuick

franchiseeswillhavefirstownershiprightstothebrand.Thisisamajor

achievement since it has been on the table for some

timenow.

In short and to reiterate, we’ve been able to achieve

morein12monthsthanhadbeenachievedinthelast

five years, and I’m happy to say that the entire team

played a significant role as a catalyst in initiating this

change.

What about GPs? Do you believe they could be

improved on?

When it comes to GPs we take an unorthodox view

in that we don’t believe in one brush for all market

segments.Forus it’saboutabidingbyapricingmodel

thatprovidestherightexperienceandallowsthecustomertofeelsafe

aboutspendingtheirmoney.

Iamoftenremindedofthestoryofthelawnmoweronsale–greatprice

butdoIneeditnow?This isthekeyquestion.Therefore,grossprofit

andormarginsarederivedmostly,fromtyresandasaresultweneedto

besmartingainingahighershareofthecustomer’swallet.Sotheshort

answeris,yes,withoutadoubt.

Tyres are a grudge purchase so we need to appreciate that in order

for us to be profitable, we must come to realise that we are selling

andsatisfyinganeed(ratherthanjustsellingtyres).Thechallengefor

us, is to provide for a structured pricing model that does not spiral

towardserodingmarginsbutprovidesvaluetothecustomer,whilstalso

negatingtheanxietyinpartingwiththecustomer’sdisposableincome.

Weneedtoberesponsivetomarketdynamicsandforthisreason,we

believeinprovidingavarietyofofferingsalongseveraltiersbuiltaround

thetyreproduct.

6 • O n e - o n - O n e

❝

The fish no longer swims

to you….you have to go

out and fish. And even

the fishing spots have

changed.

❞

How important is it to maintain discipline within the Group?

Disciplinewithinagroupsuchasthismustexistparticularlyinsituations

where individual actions could adversely affect the other franchisees,

nottomentionthebrand.Shouldindividualactivitiesthreatenthebrand

in anywaywewill havenoalternativebut to address thematterwith

the respective franchisee. Of course, our intention is not to dampen

their flair and enthusiasm for their business, but rather to provide a

frameworkunderwhichtheirentrepreneurialflaircanshine.Whenwe

ponderthequestionwhybelongtoafranchisemodelthentheanswer

concerningdisciplinebecomesclearer.

Is there much training taking place?

Training isamajor focus,notonlywithrespect toproductknowledge

but more importantly perhaps, with respect to the

brand and franchising in general. We’ve changed all

our training material, starting with the value code and

furtherintroducedtrainingatbranchmanagementlevel.

Thisisallpartofadrivetoincreaseefficiencyinevery

area,fromthewayweopenandrunnewstorestothe

ergonomic principles of these outlets. It’s no longer

enough for the franchise to ‘tick over’. We need to

evolveinthenext10yearstoengineermovementand

tocreateanewbenchmarkwhichour franchiseescan

aspireto.

Oneofthewayswehopetodothisisbyre-introducing

incentivessuchas ‘Storeof theYear’,an initiative that

willnotonlyacknowledgefranchiseesfortheircreativity

andingenuitybutalsoprovideaplatformforthemtobe

recognisedamongtheirpeers.

What about those at the coalface such as the counter

staff for example? Will they be undergoing any

training?

The counter staff is critical to the success of any retail business.

Unfortunately, it would appear that in this industry, we’ve become

ourownworst enemy. Itwould seem thatwe, ascounter staff,have

forgotten how to sell. We need to be shocked into a new operating

environment, one that encourages the concepts of knowledge and

passion to preside over price. Investing in enhancing the skills and

knowledgeofcounterstaffissadlyneglectedinthisindustryoftendue

to budgetary cuts and the high staff turnover that has characterised

theindustry.Franchiseesareoftenreluctanttoinvestintrainingatthis

levelbecauseoftheimportanceofhavingsalespersonsattheirstores,

or alternatively, at the prospect of losing good salespersons to the

opposition.However, inorderforustochangethewaywedothings,

wehavetosacrificeasmallpriceforasignificantbenefitinthelongrun.

Clearly, it takes a collective force to bring about a new order of

understandingbutIdobelieveit’spossibleandhopeI’llbearoundto

seeitmaterialiseoneday.

It appears you’ve come a long way since your appointment in March

2010,particularlygivenmanyof thenegativeperceptionsyou’vehad

toovercome.

Sometimesnegativeperceptionscanbeanadvantageinthatnotmuch

is expected of you. This way there is only way…and that is up! My

approachistolookatproblemswhilealsoseekingtheopportunity.There

isasinglelessonI’velearntinmybusinesstravelswithBridgestone:a

problemclearlyunderstood, isaproblem50%solved.Therefore, the

solutionmustbearoundthecorner!

What are your thoughts, 14 months on?

Much work has gone into stabilising this channel and

inspiringconfidenceintherealitythatthebrandhasalot

oflegsstill.Equally,wehadtoconvincethefranchisees

oftherightdirectiongoingforwardaswellastocreate

a balance between the supplier/owner relationship,

whereby Bridgestone South Africa and Bridgestone

Retailactivelybegintounderstandtheirrespectiveroles

withinonegroup.Thisisaveryimportantprocess.

Asforthefranchisenetwork,Ican’tpleasethemall,but

in themain, and if you speak to a few at random, I’m

confident they will admit to feeling more positive and

thattheyareconfidentthatthebrandisingoodhands

-hopefully(smiles).

I’ve also learnt not to take franchisees’ frustrations

personally.Iunderstandtheirconcernsandrealisethat

theycomefromaplacethatspellsthemessage,‘I’mconcernedabout

mybusiness’,nothingmore.

Thus far it’s been a tough and

arduous journey but the

rewards of elevating the Supa

Quick brand to a market

leaderwillbewellworthitin

thelongrun.

O n e - o n - O n e • 7

❝

‘Store of the Year’, is

an initiative that will

acknowledge franchisees

for their creativity and

ingenuity and also provide

a platform for them to

be recognised among

their peers.

❞

Nov. 22-24, 2011

SHANGHAI · CHINA

Messe Essen GmbH · Phone: +49 201 72 44-727/-645 · Fax: +49 201 72 44-435E-Mail: reifen.china@messe-essen.de · www.reifen-china.com

The trade fair

in China for tires and

repair shop specialists

2091AnzCina210x280.indd 1 20.04.11 12:49

2011couldwellturnouttobethemostchallengingyearyet,atleastwherethe

tyrebusiness is concerned.Amid rumoursofoneorpossibly even twomore

newtyrepricehikesbeforetheyearisthrough,consumersjustlyhavecausefor

concern.Largelydrivingthistrendareescalatingrawmaterialcosts,analarming

trendwhichshowsnosignsofabating.

synTHeTIc ruBBer cosTs seT To rIse as natural rubberprices soar

F o c u s o n T y r e C o s t s • 9

©iStockphoto.com/SanderKamp

Accordingtosenioreconomist,JomJacobattheAssociationofNatural

Rubber Producing Countries, natural rubber surged to a record high

ofmore than$3.50/kg recently,due to tight supply asproduction in

Thailand – the world’s largest producer of the material – was being

curtailed by extreme dry weather. He states that the price surge of

natural rubber cameon thebackof a prolongeddrought innorthern

ThailandduetotheprevailingElNinophenomenoninpartsofAsia.

ViceChairmanofColomboRubberTraders’Association (CRTA)andMD

ofKegallePlantationsPLC,SunilPoholiyaddewas further reported inSri

Lanka’s Daily Mirror as saying that commodity prices as a whole have

comedowndue tounfavourableweatherconditions

inthecountryandthatthesenaturaldisastersarealso

affectingmainbuyer,Japan.“Weareheadingtoward

thesouth-westernmonsoon,wheretappingwillend.

However,wedon’tseeadrasticdrop inprices,”he

saidbeforereinforcingthatthepresentsupplycannot

meet both local and international market demands,

duetolowproductioncapacitiesinThailand.

Tomakemattersworse,theriseinnaturalrubberprices

was adding pressure to the tight synthetic rubber

market,whichwasbesetbyspikesincostoffeedstock

butadiene(BD),industrysourcessay.Apparently,BD

prices have climbed by more than $200/tonne over

the last few months to around $2 000/2 050/tonne

CFR (cost and freight) according to global chemical

marketintelligenceservice,ICISpricing.

The price increase is likely to lift costs for manufacturers that are

heavilydependentonthecommodity,particularlytyremakers,industry

sourcespredict,andtheuseofsyntheticrubbersasanalternativemay

notoffermuchcomfortsincepriceshavealsostartedtorunup.Major

syntheticrubbermakersaroundtheworldremainconvincedthatglobal

synthetic rubber prices may surge on likely strong orders from tyre-

makerslookingforacheaperalternativerawmaterialtonaturalrubber.

But,accordingtoA.F.S.Budiman,Secretary-GeneraloftheInternational

Rubber Study Group, with demand for elastomers, both for synthetic

rubber as well as natural rubber, continuously increasing at a rate of

3-4%peryear,substitutingwithsyntheticrubbermaynotoffermuch

respite,particularlyasSBRisapetroleumderivedproduct.

“Natural rubber prices are going up so sharply that synthetic rubber

makers have no choice but to raise their prices further,” claims a

ChineseSBRmaker,“especiallythatnaturalrubberandsyntheticrubber

prices usually move in tandem. They are traditionally interdependent

substitutes.”

Closer to home, the new tyre makers offer

their interpretation of the situation: “With the

positive development of car and truck production

worldwide in the last 15 months the demand for

tyres also increased; this has led to a massive

increaseddemand fornatural rubber.At thesame

timethesupplyofrubberisreducingduetonatural

disasters in the main producing countries and

political unrest in other countries such as Liberia.

Sodemandgrowswhilesupplyreduces,”suggests

Dieter Horni, MD of Continental Tyre SA. “Added

tothat,naturalrubberhasbecomesomewhatofa

commodity that’s good for speculation, especially

inAsia.

“As for SBR, again it’s a question of supply and demand. During the

recession,carmanufacturersreducedtheirinventoriesandthedemand

for new vehicles reduced. Now that the economy is showing signs

of recovery and the need to protect cash flow is less strong, we are

beginningtoseeanincreaseintheirinventoriesonceagain.

“And then there’s the issueof fixedpricing.TheChinesegovernment

hasfixedthepricefornaturalrubberataminimumof$4/kgfromthe

$2.5/kgmarkwhereitoriginallystood,againduetohighdemand.”

Georg Schramm, Head of Sales & Channel Development along with

Gareth Passmore, Head of Marketing for Apollo Tyres South Africa

add: “OE fitment was up by 8 percent globally in 2010 and is still

growing this year despite the impact of Japan’s tsunami disaster on

manufacturerssuchasToyota.Demandfor tyresused inreplacement

fitment isgrowing too. Inshort, theglobal tyremarketgrewbyabout

9%in2010andweexpecttoseesimilargrowththisyear.Atthesame

time, drought and heavy rains in most rubber plantation areas has

reducedoutputsignificantly(Thailand’srubberproductionin2010was

offbyasmuchas5%.Rubberproductionisexpectedtolagforabout

❝

Natural rubber prices

are going up so sharply

that synthetic rubber

makers have no choice

but to raise their prices

as well

❞

1 0 • F o c u s o n T y r e C o s t s

©iStockphoto.com/luoman

The rise in natural rubber prices is adding pressure to the tight synthetic rubber market.

1 2 • F o c u s o n T y r e C o s t s

twoyearssothecombinationofincreaseddemandandreducedoutput

isproducingrecordpricesfornaturalrubberwhichobviouslywillhave

aneffectonthepriceoffinishedgoods.Andofcourseasapetroleum

product, Styrene Butadiene Rubber is obviously also affected by the

currentsurgeinoilprices,soyes,untilthingssettledowninthecrude

markets,wecanexpectelevatedsyntheticrubberpricestoo.”

LizeHayward,GroupPublicRelationsManagerforGoodyearSAadds:

“Usageisincreasinggloballyaseconomiesrecoverfromtherecession

and emerging markets continue their growth. “ Luckily, however and

despite the perception that supplies will tighten, Goodyear continues

to enjoy an ample supply to support its business

needs.”

That said, Goodyear is in agreement that general

inflation and the impact of higher oil prices are

impacting natural as well as synthetic rubber but

alsostressthatproductsacrosstheboardarebeing

affected,notonlytyres.

Tocompoundthesituation,escalatingrawmaterial

prices are not the only things impacting on tyre

prices,accordingtoSchrammandPassmore.They

claim that margins for the SA tyre manufacturers

and indeed for theglobal tyremarket as awhole,

remainunderpressuredueto thecontinued influxofcheap imported

product.

Says Schramm: “The USA has introduced a 35% tariff on imported

products to provide their manufacturers with some protection but

the SA market remains largely unregulated, which means this margin

pressureislikelytocontinuefortheforeseeablefuture.

“Therisingcostofsteelusedinsteelbeltradialtyresisanothermajor

factorandthisdespiteincreasedcrudesteeloutputworldwide.Thecost

ofsteelproductionhasriseninternationallyandthisisobviouslybeing

passedontousasrefinedsteelconsumers.”

Manufacturers take action

To cushion some of the blow, the four local tyre

makers are constantly looking at ways to alleviate

someofthefinancialpressureontheconsumer.

“Tyre markets worldwide are very price sensitive

which means that as a manufacturer, you are

constantly compelled to take measures against

increasingcostsofproduction,distributionandthe

like.Thisisoverandabovetheissueofrawmaterial

prices,”saysHorni.

So why not plant more rubber trees one might

well ask? “Access to one’s private caoutchouc

(natural rubber) tree will not solve the problem,”

claimsHorni. “It takesup to sevenyears to reach

yourfirstharvestandeventhenyouarerelianton

climatic conditions which could wreak havoc with

yourplant.Asforotherrawmaterials,theytooare

subject to demand from other industries, thereby

pushingupthecostofmining.

“Thebigchallengeforusinthefuturewillbetofind

alternatives for certain compounds which are environmentally friendly,

sustainable and offer regrowth where possible whilst also delivering the

samequalityorbetter,atacheaperproductionprice.”

AlternativerawmaterialsareverymuchthefocuswithGoodyearaswell,

withHaywardclaiming that thecompany isactivelypursuingdifferent

optionssuchasBiolsopreneasasubstitutetoSBR.

Apollo agrees. “Ongoing Research and Development is absolutely

critical. Manufacturers need to experiment with new compounds and

newtechnologiesthatutiliselessexpensiverawmaterialsorprolongthe

lifeofthetyre.Onlythen,cantheyensureconsumersgetthebestreturn

❝

The USA has

introduced a 35% tariff

on imported products

to provide their

manufacturers with

some protection but the

SA market remains

largely unregulated,

which means this

margin pressure is likely

to continue for the

foreseeable future.

❞

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Recent floods in the rubber producing countries wreak havoc with supply.

1 2 • F o c u s o n T y r e C o s t s

OTR RADIALS

FOR ORDERS & INFORMATIONContact: Ken Martin or Marlin Pillay

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1 4 • F o c u s o n T y r e C o s t s

on the price they are paying for an increasingly

expensive product. It’s a major focus area for the

Apollo Tyres development teams both locally and

internationally,”saySchrammandPassmore.

Protecting the consumer

According to Continental, the likelihood of a

further price hike later in the third quarter is a

strongpossibility.“Wehavealready increasedour

prices twice this year (January and May) and it’s

possiblewemayhave toreact inasimilar fashion

lateronthisyear,”saysHorni.“Itdependsonthe

development of the different raw materials such

asnaturalrubber,crudeoil,steel,carbonblackto

namebutafew,aswellasonthepricedevelopment

for electricity, steam fuel and transportation. And

let’s not forget the development of wages and

salarieswhichtraditionally,arethemaindriversof

pricehikes.

Also likelyto impact,hefurthermaintains,arepolitical issuessuchas

the latestLibyancrisis.Asoneof themainsuppliersofoil toEurope,

Libya’sinabilitytodelivercouldhaveanequallymassiveimpactonraw

materialprices.

“Obviously some of these costs will have to be passed onto the

consumer,” states Apollo’s Passmore, “but the

key here is to ensure that fair price increases –

in line with rising raw material and labour costs

– are passed down the chain, from us as the

manufacturer, to our dealers and in turn, to the

end user. Our policy of incremental increases in

linewithfluctuatingproductioncostscanalsohelp

cushion theconsumer fromtheshockof the ‘one

bigincrease.”

As for Goodyear, their focus remains on seeking

to offset higher raw material costs with price and

mix,ratherthanjustprice.“Wearealsoworkingto

reducecoststhroughoutourorganisationasmuch

aswecan,”addsHayward.

“The one positive thing to bear in mind is that

without passing down costs to the end users,

tyre manufacturers are unable to invest in new

technologies,”claimsPassmore,“technologieswhichintheend,stand

tonotonlyextend the lifeof the tyre,butmore importantlyperhaps,

boostthesafetyfeaturesofoneofyourvehicle’smostvitalcomponents

–yourtyres,whichineffectserveasyouronlycontactwiththeroad.”

*Bridgestone SA was approached for comment but declined the

invitation.

❝

the key here is

to ensure that fair

price increases – in

line with rising raw

material and labour

costs – are passed

down the chain,

from us as the

manufacturer, to our

dealers and in turn, to

the end user

❞

Will the end user benefit

from the fair price

increases?

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O n e - o n - O n e • 1 7

O n e - o n - O n e • 1 7

Childrenlovetoblowtheirseedsintothewindandrabbitsthinkthey

areagourmetdelight.Nowdandelionshavearoused the interest

of the rubber industryaswell.A research teamat theUniversity

ofMünsterhasstudiedthelatexinthemandcometoanamazing

discovery.Dandelionsproducegumelastic–equal inquality to

rubbertreelatex.Thiscouldmakethewildherbamajorsource

of rubber in the future. Auto parts supplier Continental AG in

Germany has latched onto these lab results. The firm is now

hardatworkbringingthis ideaforward. It isamemberinthe

consortium of research institutes and industry partners that

intendtotransformtheideaintomarketproducts.

Thetyreindustryviewsthelatexindandelionsassomething

they can use in place of rubber tree latex. This would

solve a major global problem. Nowadays natural rubber

comesfromthelatexoftherubbertree.Grownmainlyin

SoutheastAsia, thistreeharborsanumberofproblems.

Worldwidedemandexceedsthesupply.What’smore,a

fungalinfectionthreatenstherubbertree.

There are also supply issues with synthetic rubber in

that petroleum supplies have an impact on synthetic

rubber.Worldmarketpricesforthisrawmaterialalso

varygreatlyovertime.

Dr. Dirk Prüfer, professor at the Institute of Plant

Biology and Biotechnology at the University of

Münster in Germany, confirms the quality of

dandelions.

rabbit Feed a source of rubber?

DandelionsHoldtheKey!

“ThefirstresearchresultsclearlyshowRussiandandelionstoproducea

high-qualitynaturalrubber.Itsphysicalandchemicalpropertiesmatch

upwellwiththoseoftheBrazilianrubbertree.

“Growerswouldhavetoplantdandelionsonalargescaleifindustryis

tobeabletousethemtoproducenaturalrubber.Ihopethatdandelions

willsoonnumberamongGermany’scropplants.Itistheirdue.”

Biochemistshavefoundtheenzymethatgovernspolymerizationofthe

plant’slatex.Theyhavemanagedto“switchoff”thisenzymesothatthe

latexcannowflowfreelyandbesiphonedofftheplant.Thatisamajor

stepforward.

“Rubber makes up much of tyre. Forty one per cent of the

ContiPremiumContact 2 passenger tyre, for instance, is rubber,”

confirms Rene Olivier, spokesperson for Continental Tyre in South

Africa.

Researchersfeel thatdandelionscouldsomedaysupplyatenthofthe

Germanrubberdemand.

“This project is of great interest to material development,” adds Dr.

Boris Mergell, head of Tire Material and Process Development &

IndustrializationatContinentalAG.

“Successinmakingdandelionsasourceofnaturalrubberwouldenable

ustorespondatrathershortnoticetosupplyshifts.Afterall,theplant

needsonlyoneyear fromseeding toharvest.Fromthecuttingof the

firstsodtotheharvestingofthelatex,settinguparun-of-the-millrubber

plantationrequiresroughlyfivetosevenyears,”headds.

Researchprojectideacitedforitsfuturepotential

I n d u s t r y N e w s • 1 7

©iStockphoto.com/iSci

While you enjoy the wide open road...

www.continental.co.za

Because the way to travel is without the excess baggage of worry, especially where your tyres are concerned.

Travel light with ContiPremiumContact™ 2 tyres.

We’ll be preparing for the next stop.

E+I

154

37

N e w P r o d u c t • 1 9

conTInenTAL Treads new Ground– enter the contiecocontact 5 AnD contisportcontact 5

Thepicturesquecoastlineof theAlgarve

inPortugal,wasthemagnificentbackdrop

forthelaunchoftwoimpressiveproducts

forthepassengertyresegmentthisyear,

courtesy of Continental Tyre. The tyre

makerassuresremarkableimprovements

in rolling resistance and wet and dry

braking performance courtesy of a new

casing, compound, tyre contour and

treadpatterndesign,elementsthatreflect

considerableprogressonthepartof the

company’styreengineers.

The first of the two products,the new ContiSportContact 5, (both

products are fully patented) is suited to sporty cars and SUVs with

sporty driving characteristics, and is the culmination of extensive

researchandamultiplicityoftestsduringthedevelopmentstage,allof

whichtranslateintoamarkedreductioninbrakingdistanceonbothwet

anddryroads.Inaddition,rollingresistanceiscutbyover10%while

mileage performance is enhanced by 13%. These improvements are

due inparticulartothetyre’s innovativecompoundwhich isdesigned

to achieve maximum transmission of forces when braking and low

rollingresistanceduringnormaldriving.Todothis,therubberformula,

referredtoasBlackChilliCompound,utilisesthedifferentvibrationsof

the tyre. Black Chilli Technology is a specially developed compound

technology involvingan innovative typeof racinggradecarbonblack,

which ensures a speedy warm-up process and greater stability. The

polymers inthecompoundarereinforcedwithnanoparticles,making

themextremelysupple.Thustheyprovidemorecontactpointswiththe

road,sogripissubstantiallyenhancedandthetyrefarmorestable.In

addition,specialgripresinsprovideoptimuminterlockingwithbothwet

anddryroads,thusachievingshorterbrakingdistances.

2 0 • N e w P r o d u c t

intermsofallthetyreelementsinvolvedinordertoachievethehighlevel

ofprogressattainedwhencomparedwiththetyre’spredecessor,butthe

resultsspeakforthemselves.Theymanagedtoreducerollingresistanceby

20%increasedmileageperformanceby12%,whilststillmanagingshort

brakingdistancesonwetroads.Andaccordingtothem,acarfittedwith

the new ContiEcoContact 5 will use around 3% less fuel than the same

vehicleequippedwithstandardtyres–anunbelievablesavingbyanyone’s

standards!

Modular Zone Technologies

OnewayinwhichContinentalhasgoneaboutachievingtheseremarkable

improvements is via the use of Modular Zone Technologies whereby

engineers concentrate on developing each different zone – rigid zone

(bead), flexing zone (sidewall), load zone (tread pattern) – separately,

based on their respective functions and demands. This appears to be a

revolutionaryapproachtotyredevelopmentandoneuniquetoContinental

Tyreatthispointintime.

Added to this, the latest simulation technologiesarenowplayabigger

rolethaneverbeforesoastoensurethatallthevariousfunctionsinteract

witheachothersuccessfully,anapproachwhichissaidtoacceleratethe

developmentprocess.

Putting it to the test

In an effort to prove these newfound claims surrounding their new

Themanufacturerfurtherclaimsimprovementsintyrehandling,whichthey

saycannowdeliveranevensportierperformancethanitspredecessor.

Thesecondproduct, theContiEcoContact5 iseco-friendlyandalsohas

enhanced safety at the core of its development. Historically, combining

shortbrakingdistancesonwetanddryroadswithlowrollingresistancehas

beenconsideredadevelopmentalchallengefortyrecompanies.However,

this latest offering fromContinental resolves thisproblemwith apparent

ease.Granted,thecompany’styreengineersdidhavetotreadnewground

Continental is claiming a marked reduction in braking distance on both wet and dry roads.

N e w P r o d u c t • 2 12 0 • N e w P r o d u c t

products,Continentalinvitedmotoringjournalistsfromacrosstheglobe

to Europe, to attend the unveiling of the new ContiEcoContact 5 and

ContiSportContact5inearlyApril.

Membersofthepressflewinfromallfourcornersoftheworld,including

SouthAfrica.NoexpensewassparedonthepartofContinentalinputting

togetheraneventthatvisiblydemonstratedtheremarkablepropertiesof

thecompany’slatesttwoadditionstoitspassengertyrestable.

Usingsomeofthelatestelectronictechnologyandequipmentavailable,

theContinentalmanagementteamsetouttocreateaseriesofdifferent

drivingscenariosfortheguests,exercisesthatprovidedconcreteproof

that the claims being made had substance. We were put through our

pacesvia theuseof special technology that is able tomeasuredriving

style and performance as well as fuel economy. Individual driving data

wastransmittedandsavedontoaspecialmicro-chipthatwasequipped

to connect to the vehicle during the course of some of the exercises,

particularly those that measured wet braking and fuel economy.

Moreover, the large fleet of vehicles secured for the day, was shod

with the new products as well as their predecessors, with the guests

encouragedtodrivebothintheinterestsofattaininganaccuratepicture

ofthecapabilitiesofthenewtyres.

Sufficeittosay,onecouldn’thelpbutbeimpressed.Hereisacompany

thatispreparedtogotosurprisinglengthstoproveitsclaims,andprove

themitdid-therewasnodenyingtheimprovementsofthenewofferings

versus theirpredecessors.Wecouldseeand feel thedifference.More

important, thedatachipwithwhichwewereeachfurnishedandwhich

stored this telling information was testament to the tyres’ remarkable

features.

Clearly,ContinentalTyrehasmadehugeinroadsindevelopingtyresthat

cater not only for the motoring enthusiast, but for the cost-conscious

consumeraswell.

LookoutforthenewContiEcoContact5andContiSportContact5which

is expected to reach South Africa in the last quarter of 2011 and will

beavailableinselectedsizes(ContiSportContact–205/50R17,215/45

R17,245/35R18.

The international press put the new tyres to the test.

POWER IS NOTHING WITHOUT CONTROL

F1 teams made a choice.

pirelli. oFFicial tyre supplier F1.

pirelli.co.za

Pirell2011F1_210x280.indd 1 2011/03/04 12:23 PM

N e w P r o d u c t • 2 3

19Maywasanexcitingdayon thecalendar forPirelli

SouthAfrica.AtNixon(CradleofHumankind),theItalian-

based tyremaker introduced itsfirsthigh-performance

eco tyre for the SUV market. Aimed specifically for

vehicleswiththehighestenvironmentalimpact,thenew

ScorpionVerdehasbeencreatedtakingfulladvantageof

allofPirelli’slatestresearchaswellasadesignsystemthat

integratesnewmaterials,structuresandtreadpatterns,in

ordertoguaranteesavings,respectfortheenvironment,

comfort, and safety on all road surfaces. The new

Scorpion Verde complete’s Pirelli’s range of Scorpion

tyreswhichalready includes theATR for4x4sand the

Scorpion Zero, developed for more high performing

SUVs. Specifically created for the latest generation in

SUVsandCrossovers,suchastheVolkswagenTouareg,

whichhasalreadychosenitasitsoriginalequipment,the

ScorpionVerdemarries technologywithecologysoas

toachieveitstwo-foldobjective:tocontributetostability

whilst consumption among all categories of SUVs and

Crossovers;toensuresafetyandcomfortforthedrivers

of such vehicles, since they have demonstrated the

greatestpropensityforecologyamongmotorists.

Boasting new materials as well as a new structure that guarantees steady

performance throughout the tyre’s useful life in terms of diminishing

noxious emissions, noise reduction, running economy, shorter braking

distances and comfort, the Scorpion Verde allegedly promises a host of

benefits,amongthem,savingsanddurability.All itsecologicalfeaturesare

apparentlyguaranteedbyacombinationoffactors:thedevelopmentofan

optimised profile; the use of cutting-edge materials, an optimised design

processandreducingenergydissipation.Thesefeaturesaresaidtoprovide

adrop in rolling resistanceequal to20% in total,allowing forcutbacks in

bothconsumptionandnoxiousemissions.And the tyre is lighterandhas

beendesignedtouse10%fewerrawmaterials,thereby

decreasingitsenvironmentalimpactperunitproduced

bythesameamount.

Inshort,theScorpionVerdeconsolidatesPirelli’sGreen

enTer THe scorPIon VerDePIRELLI’SFIRSTECOTYREFORSUVs

Performance, the technology developed by Pirelli tyre

laboratoriesthatfocusesonecologyandroadsafety,or

–inotherwords–sustainablemobility.

That being said, the tyre maker claims that having an

ecologicalheartdoesnotmeansacrificingperformance,

particularly in terms of safety and comfort. As such,

Scorpion Verde allegedly combines ecological features

withimprovedbraking,greatertractiononwetsurfaces

andbetterhandling.Anumberoffactorshavecontributed

totheseresults,suchasthenewmaterialsitusesinits

compounds, which integrate the latest technologies;

nano compounds, that is, cutting-edge polymers that

adapt to various road conditions; and hybrid fibres,

which combine different materials to achieve diverse

performance.

outlasting the competition

IntruePirellifashion,PirelliSAchosetointroducetheir

latestofferingtomembersoftheSouthAfricanpressin

afun,albeitunorthodoxmanner.Afterbeingwelcomed

by Pirelli SA MD, Gianluca Renato who explained the

rationalebehindthedevelopmentoftheScorpionVerde,

andhighlightingthetyre’sfeatures,themediawassplitintoteamsoffourand

putthroughavarietyof‘Survivor’challengestocoincidewiththethemeofthe

launch–TheScorpion’sTale.

Theteamswererequiredtoundergoaseriesofchallengesforwhichpoints

were awarded. Challenges included: igniting a fire using rubber sticks; an

archery challenge; and negotiating an obstacle course while blindfolded.

Each teamwasprovidedwithavehicle (shodwith thenewScorpionVerde

of course!), a map and a series of clues. Using these they had to drive to

designatedlocationscollectingvarioustoolstheyneededtochangeatyreat

theirfinalchallenge– thePitStopChallenge.Theywere timeandawarded

pointsbasedonhowfasttheycouldchangeatyre.

Eachmemberofthewinningteamreceivedatrophyas

wellasavouchertoselecttheirchoiceoffootwearfrom

thePirellipZeroFashionCollection.

COMPETITIONTurntoPage48fordetailsonhowto

winasetofScorpionVerdetyres.

Moreover, the Tubestone ship is steered by a group of brilliant men.

NavigatingtheteamresponsibleforthesuccessthatisTubestone(Pty)

LtdarePieterKruger,MD,andDirectorsAlexFriedman, JeffWessels,

PaulHowardanduntilthreeyearsago,thelateMichaelLusman.

And then there’s their exciting product

range. Presently, Tubestone is associated

withtwoworld-classtyrebrands–BKTand

Nankang.

BKT is one of the world’s leading

manufacturers of ‘Off Highway Tyres’

andboasts thewidest product range with

more than 1 900 stock keeping units.

This Indian-based manufacturer takes

greatprideinbeinga‘OneStopShop’for

all off-highway tyre

solutions, with more

than 90% of total

tyre production being

exportedtomorethan

120 countries across

allfivecontinents.

Equally, Taiwan-based

Nankang Rubber

Tire is supplying

Tubestone with its

passenger tyre range boasts

a long history as industry

leader in quality, reputation,

research and development

and production capabilities,

a reputation that has earned

it commendation by clients

and industrial players alike, on

homesoilandabroad.

SaysPieterKruger:“It iswithgreatpride thatwecelebratedour10th

Year Anniversary in April. Tubestone has achieved the impossible.

Withhardwork,determination,aloyalcustomerbase,andexceptional

management and employees, we’ve grown and developed into a

companytobereckonedwith.

“It’sveryexcitingtoenvisionwhatTubestonewillbeabletoachievein

anothertenyears!”

Aprilofthisyearmarkedanimportantmilestoneforadistributioncompany

that has its roots in humble beginnings. Tubestone is the brainchild of

founder and present MD, Pieter Kruger, who saw an the opportunity to

establishadistributioncompanythatwouldbecomeknownforrepresenting

someofthebesttyresandtyrerelatedproductstheworldhastooffer.

Thedoorsopened for tradingonApril2,2001with the

companyimportingtubesandflaps.Beforelongtherange

was extended to include OTR, Industrial, Agricultural,

Implement,TruckandPassengertyres.

OnlyfivemonthsafterthefirstoutletopenedinCapeTown,

another followed in Johannesburg. The Durban branch

openedin2002,withBloemfonteinfollowing inOctober

2004. Three years

later, in 2007, Port

Elizabethwasaddedto

themix,withWindhoek

and Harare following

closely behind. Very

soon, Tubestone will

also open a branch

in Botswana, thereby

providing a complete

service offering to

South Africa’s most important

neighbouringcountries.

According to the staff, a unique

characteristic that defines

Tubestone is the ‘Family’ feeling

which Pieter has endeavoured to

create within the company. Every

staffmemberisdeemedimportant

andisproudtobeassociatedwith

thecompany.

“Thismanifestsinallinteractionsandcommunicationwithinthecompany

and its loyal customers,” claims Yolandi Donaldson, Marketing Manager.

“Ourcustomersaretreatedlikerespectedfriendsandtheycanbecertain

thatwewillalwaysgotheextramileforthem.”

Allegedly,Pieterpainstakinglyselectedhisteamonebyone,asawayof

ensuring that thecompany is runby thebestpossiblegroupofpeople,

individualswhoarenotonlyeducatedintheirrespectivefields,butarealso

loyal,dedicatedandgoodhearted.

TUBESTONECELEBRATES10YEARSOFSUCCESSFULTRADING

2 4 • I n d u s t r y N e w s

Nampo Show – Susan and Elize.

Mr Pieter Kruger and Mr Alex Friedman.

Some of the ladies from the Cape Town Branch Team.Julie, Wendy, Marizanne, Reinette and Elize.

Windhoek Branch Team.Karin, Philemon, Francois, Lukas and Annemarie.

Electra Mining Show.

Africa'12 210x280 Ad:Layout 1 8/3/11 21:59 Page 1

Infinity tyres. Bred to be better.There are tyres. Then there are Infinity tyres. Designed specificallyto meet the demands of your customers’ lives, their unfailingsafety, dependability and performance mean they’re the naturalchoice for every motoring situation.

Not all tyres are created equal.

Infinity tyres. Bred to be better.There are tyres. Then there are Infinity tyres. Designed specificallyto meet the demands of your customers’ lives, their unfailingsafety, dependability and performance mean they’re the naturalchoice for every motoring situation.

Not all tyres are created equal.

2 8 • M a n u f a c t u r i n g

35969 Gala Congrats Ad_DSK.fh11 26/5/11 09:27 Page 1

Composite

C M Y CM MY CY CMY K

I n d u s t r y N e w s • 2 92 8 • M a n u f a c t u r i n g

Close on 600 esteemed guests attended a glittering banquet at

thePalaceof theLostCity inMarch tocelebrate thesuccessof

the dynamic Dunlop Zone precision fitment concepts. Global

manufacturing giant Apollo Tyres (owner-manufacturers of the

Dunlop tyre brand in South Africa) and local subsidiary Apollo

TyresSouthAfricabroughttogetherover200DunlopZonedealers

fromSouthAfricaandneighbouringcountriestoattendahigh-key

eventthatrecognisedtheachievementsofindividualdealerships.

A NIGHT TO REMEMBER!APOLLOAWARDSEVENING

CELEBRATESDEALERSINGRANDSTYLE

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International), Graham Lessing (Fit-Rite Mthatha), Quentin Lessing (Fit-Rite Mthatha) winners of the inaugural Apollo Tyres Chairman’s Award, Neeraj Kanwar (Managing Director Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Kleintjie Jooste (Malamulele Tyre & Exhaust) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Cloete Mdlokovana (Mdlokovana Motor Spares &Tyres) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).

A delighted Quentin Lessing celebrates winning the overall Apollo Tyres Chairman’s Award, the first time this prestigious trophy has been awarded.

Cloete Mdlokovana of Mdlokovana Motor Spares & Tyres, Mafeteng, Lesotho receives his regional Chairman’s Award from Onkar S Kanwar (Chairman Apollo Tyres International) while Dr Luis Ceneviz (CEO Apollo Tyres South Africa) and Neeraj Kanwar (Vice Chairman Apollo Tyres International) look on.

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Andre Roux (Auto Tyre & Exhaust) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).

O n e - o n - O n e • 3 13 0 • I n d u s t r y N e w s

Dubbed‘ANighttoRemember’,theeventwas

attended by senior executives from Apollo

Tyres Limited and invited dealer principals

fromover15countriesinLatinAmericaand

Africa.Thehighlightoftheeveningwasthe

presentationoftheinauguralApolloTyres

Chairman’sAwardstothetopperforming

Dunlop Zone dealership in each region

byApolloChairmanMr.OnkarS.Kanwar,

withthewinnerreceivingtheprestigious

Chairman’s Award Trophy and a 5-star,

allexpensespaidtriptoIndia.

The recipient of this highest honour

was Fit-rite, Mthatha.

Commenting on their achievement,

OnkarS.Kanwarsaid:“Webelievethatour

dealers are the backbone of our business.

It is their strength, loyalty and commitment

to excellence that has driven our business

success. The efforts of people like Quentin

Lessing and his team have helped us grow

froma$500millioncompanywhenweentered

South Africa five years ago, to the $2 billion

companyweare today.Fit-Ritehasexceeded

the most stringent criteria to be the richly

deservedwinnersofourinauguralChairman’s

Award. Congratulations to Quentin, his staff

andtheirloyalcustomers.”

The award for top Gauteng tyre dealer went

to Auto Tyre & Exhaust of Menlyn Pretoria,

followed by an award for top Mpumalanga

tyre dealer, which went to Malamulele Tyre

& Exhaust in Malamulele. The neighbouring

countriesalsofeaturedwithMdlokovanaMotor

Spares&TyresofMafetengbeingawardedtop

Lesothotyredealer.

After the formalities, the award winners,

dignitaries and guests partied the night away

tothesoundsoftheJonnyCooperOrchestra,

oneoftheworld’sleadingbigbandswhowere

joinedonstagebyguestartist,IdolsfinalistLize

HeermantocreatetheGlennMillerSoundand

bringwhatwascertainlyANighttoRemember

toaclose.

JUDGING CRITERIA:TheDunlopZonestoreswerejudgedontwoprimaryareas:

Business GrowthNetturnovergrowthGrossprofitgrowthAdherencetoterms

Branding standard requirementsMysterycallersGhostphoningZonestorestandards

The M.C for the evening was radio personality and sports announcer Sureshnie Rider

Apollo Tyres International Chairman Onkar S Kanwar welcomes guests

Georg Schramm, Head of Sales and Channel Development for Apollo Tyres South Africa announces the regional Chairman’s Award.

The Jonny Cooper Orchestra in full swing with special guest and Idols finalist, Lizé Heerman

Idols finalist Lizé Heerman belts out the big band classics with the Jonny Cooper Orchestra at the inaugural Apollo Tyres Chairman’s Awards

O n e - o n - O n e • 3 1I n d u s t r y N e w s • 3 1

Corne & Frik Smith; Jorien & Johan Jacobs and Martin & Marthea Smith all of Northgate Tyres

Mahomed Moola – Khans Tyres; Ebrahim & Khatija Mohamed – Marlboro Tyres; Faried & Fatima Khan and Khalid & Nurisha Khan and Aziz Parker – Tyreman

Paula & Greg Robertson and Dusty & Neil Robertson – Wheel & Steel

Debbie Martin – Apollo Tyres and Stoffel & Renee Olivier – Tyre Sure

December & Nellie Mlambo – Zibandlela Tyres

Bennie Xu, Cloete & Nosanete Mdlokovana (Mdlokovana Motor Spares & Tyres)

Anita McCallaghan & Herman Hugo (Apollo Tyres)

Jannie Serfontein – Apollo Tyres; Mohammed Makda – Apollo Tyres and Michael van der Merwe – Apollo Tyres

Hisham Layahi, Tsiti Mombeshora and Gary Treherne – Apollo Tyres

3 2 • C o n t i C o r n e r

ContinentalTyreSAlauncheditshighlyanticipatednewgenerationtruck

tyrestothemarketinthefirstquarterof2011.Accordingtothecompany,

thenewproductrangefeaturessomeofthelatestinnovativetechnology,

alongside theadvantagesof theirnewly-patented ‘Airkeep’ technology

whichpromisestoreducetheincidenceofon-roadbreakdowns.Four

monthshavepassedsincethenewcommercialrangewasunveiledto

thepress,distributionnetworkandendusertrade.Wecaughtupwith

BrianClarke,GMCommercialVehicleTyresforContinental,tocheckon

theprogressofthenewtyresandgainsomeinsightintoContinental’s

aimsandambitionswherethecommercialmarketsectorisconcerned.

continental’s share of commercial segment set to escalate

C o n t i C o r n e r • 3 3

Brian, thank you for meeting with us. Your presentation to the market

a few months back ably demonstrated your complete confidence in the

new product range. Will the full product line be manufactured locally,

and if so, is the range already in circulation?

Itisourstrategytohaveasmanyproductsaspossiblelocallymanufactured

andyes, I’mpleasedtoreportthatmostofthenewgenerationproducts

areavailablealready.

We believe the initial testing process is well underway. What kind

of feedback are you getting or is it too early for you to obtain any

meaningful results?

TyretestinghasbeeninprogresssinceJanuary2010andagain,I’mpleased

tosaythattheresultssofarareimpressive,bothwithrespecttomileage

andfueleconomy.

How do you intend achieving market penetration for this new product

range?

Acombinationofbothaboveandbelow the lineadvertisinghasalready

commencedaspartofourstrategytoimproveourvisibilitytotheenduser.

Overandabovethis,inrecentmonths,wehaveimprovedourOEpresence

significantlyandarealsoplanningtoboostsalesinthereplacementsector

viaourloyaldealerchannel.

The ContiPartner programme traditionally concentrates on the passenger

tyre segment. How do you intend bridging the gap?

ContiParter is primarily a passenger tyre channel but there are many

ContiPartneroutletsthatonlyspecialiseintruck….TonwayTyresinRosslyn

isbutoneexample.WherenoContiPartneroutletsexist,wehaveseveral

KwikfitandindependenttyredealerssuchasthelikesofTyres2000,Auto

&TruckorTyrecorptofallbackon.Theyarewellequippedtosupportusin

thecommercialtyresector.

What about after-sales service, such as on-site tyre maintenance. Do you

currently offer this service and if so, through whom?

Continentalhasalwaysprovidedafter-salesservicethroughaspecialised

sales forceandcustomerservicedepartmentdirect to theenduserand

dealerchannel.Asforanon-siteservice,at thispointwepreferto leave

theservicing to theexperts.Our job is toprovidea topqualitynewtyre

throughthem.

Thatbeingsaid,itispossiblethatinthefuture,ContinentalSAwillbeina

positiontosecurecontractsonbehalfofitssaleschannels.

How would you go about encouraging a greater number of ContiPartner

stores to become more involved in the commercial market?

Oneoftheprimaryreasonswhymanytyredealersarereluctanttoenter

the truck tyre market is the risk. Bad debt is a problem in most B2B

industriesandtyresarenoexception.However,fordealerswithgoodrisk

management systems in place, the rewards are well worth it. Effectively

servicing andmeeting theneedsof endusers in the commercial sector

canmakeforprofitablebusinesses.Continentalsupportsmanyofthese

successful truck tyre businesses and we are confident that our new

generationtyreswillbenefittheirbusinessesevenfurther.

The market has changed with the commercial sector expecting an

entire sales package, one that encompasses new tyres, retreads, on-

site maintenance, on-road servicing and the like. Do you believe that

Continental, through its preferred dealer network, is equipped for this

task, and if not, what must be done in order to achieve this?

The market is far from homogeneous. Some transporters we speak to

require only the cheapest tyre possible, while others take a more long-

termapproachto theirfleets.The ‘cheap tyre’market isnotourmarket.

Similarly, the dealer network differs in its ability to supply the various

servicesrequired.Continentaldoesnotofferaretreadsolutionasyet,but

weareintheprocessoffinalisingacradle-to-gravepackage.Thefirststep

was to improve the coreproduct.Now that this hasbeen done, further

developmentsinthisregardwillsoonbeannounced.

What are your immediate areas of focus not that the product has been

officially released?

Ourimmediatefocusistoensurethatthequalityoftheproductisthesame

astheEuropeanequivalent.Thenextfocusareaistoreleasethebalance

of product that has yet to be introduced to the market. And of course,

simultaneously,weareconcentratingonmakingthemarketawareofthe

featuresandbenefitsofournewrange.

What do you believe is the biggest challenge facing Continental Tyre SA

in its quest to strengthen its position in the SA commercial tyre market?

Continental does not have unique challenges. I believe that all tyre

companiesinSAfacethechallengeofrapidlyincreasingrawmaterialand

inputcosts.Addedtothat,theinfluxoflowpricedimportedtyrescontinues

to threaten local manufacturer market share and employment, not to

mentiontheissueofavailabilityofhumanresources–thishasbecomea

seriousareaofconcerninrecentyears.

Overall,Ibelievethattimelyinvestmentinanewtruckrangehaspositioned

Continentalwelltostrengthenourposition,whichdoesnotimplythatwe

cannowrestonourlaurels.Continuousdevelopmentwillberequiredto

maintainandgrowmarketshare.

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B a n d a g N e w s • 3 5

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T a l k i n g T y r e s • 3 7

Is the age-old motorsport adage of win on sunday, sell on Monday still relevant?

If so, why aren’t tyre manufacturers exploiting the racing spirit?By colin Mileman

WinonSunday,sellonMonday

TYRES in motorsport

In the good old days of motorsport, it was a fairly straight-forward

formula: win races on Sunday (or Saturday for that matter), and it

translatedintogenuinesaleswhenthedoorsopenedonMonday.

Afterall,that’swhyanyvehiclemanufacturerorsponsorgotintothe

sport. Itwasn’t simply for the loveof racing (although thatplayeda

crucial role), but was used as a high-profile, high-paced marketing

exercise.

Andifyourbrandtookthechequeredflagontheday,theideaisthat

itwouldbeseentobethebest,thusgeneratingshowroomtrafficand,

ultimately,increasedsales.

Asfarasmodernmotorsportisconcerned,it’scertainlynotisclear-cut

asthatanymore.Thetechnologyrevolutionhasensuredthatthere’s

a veritable plethora of racing action across all corners of the globe

availableatourfingertips–whetherit’sonsatelliteTVortheInternet.

Theenthusiaststhatwouldbeinterestedintheaction-packedracing

areusuallywellinformedonthelatestandgreatestfromthemotoring

world, and what wins races, where and when, from the high-flying

worldofFormulaOnetothelocalProductionCarchampionship.

Certainly then, they’re not going to be that easily bamboozled into

chargingfortheclosestdealershipshouldaparticularbrandtakethe

silverware for theday.Furthermore,motorsport (especially the local

variety) has to compete with so much other sporting action every

weekend,andno longerdraws the largecrowds itused to– takea

lookbackat the imagesofKyalami10,20,30yearsago,andyou’ll

seewhatImean.

Yet motorsport still seems to be a major drawcard for vehicle

manufacturersandsponsorsalike.Why,then,don’tweseethespirit

of motorsport filtering through in terms of off-track marketing and

advertising?

On the tyre front, Pirelli is the sole supplier to Formula One,

BridgestonesuppliestheSAProductionCars,Continentalisinvolved

intheVWPoloCupandGoodyearprovidestherubberforthemighty

WesBankV8s.

Didyouactuallyknowthat?Andwhenlastdidaracingadvertisement

O n e - o n - O n e • 3 94 8 • G o o d y e a r N e w s

catchyoureyeonthe‘box,orinamagazine?Itrarelyhappensthesedays.

IcanfondlyremembertheFirestonemotorsportadvertsfromtheNineties,

whichcapturedthespiritandenthusiasmofthe‘bratpack’GroupNyears.

OrtheGoodyearadsclaimingitsrecord-breakingrunofF1victories.We

needtorekindlesomeofthatpassionandexcitement.

Yet it’s incredibly hard to do when competition

has effectively been ruled out of the game, due

totheadoptionofsoletyresuppliersfordifferent

categoriesof the sport. It’s veryhard, and rather

irrational, tobrag aboutwinningwhenyou’re the

onlycompanycompeting.

I can understand the logic of using a single

tyre supplier, as it levels the playing ground –

particularly for a one-make racing series. Also,

howmanyF1battleshavegonedowntothewire

withtheacknowledgementthatitcouldhavebeen

different if the losing teamhadbeenondifferent

rubber?

However,youcouldthenarguethatallthedrivers

shouldbeinthesamecarsusingidenticalengines,

gearboxes, suspension and matching tyres. But

then there would be no reason for the various

manufacturerstoputtheirbadgesonthebonnet,

ordigdeepintotheirbudgetstodoso.Itwouldbe

likethelarge-scaleequivalentofaScalextrictrack,

andwouldall comedown to thepersonwith the

thumbcontrol,i.e.thedriver.

Isaybringthecompetitivespiritbackandallowthe

tyrecompanies to thrash itout.Give thewinners

theopportunityandplatformtoboastaboutit.Competitionisagoodthing,

asitdoesadvancethegame,bothforthesportandtheresultantroadtyre

technology.Afterall,there’snothinglikecompetitiontodrivedevelopment.

For example, Chevrolet recently introduced new Michelin Pilot Sport

CupZeroPressure(ZP)tyresasoptionalequipmentonthenew377kW

ChevroletCorvetteZ06andthe476kWsuperchargedZR1.Accordingto

3 8 • T a l k i n g T y r e s

Colin Mileman is a freelance motoring journalist, photographer and advanced driving specialist with over 13 years of experience in this

field. As a former editor of Topcar and Topbike magazines, he’s as enthusiastic about cars and bikes as they come, and has extensive

knowledge of all motoring-related matters, including the topic of tyres, having run the annual and highly regarded Topcar tyre tests for

several years.

Michelin, these are essentially competition-oriented tyres optimised for

corneringgripandprecisionhandling.

Interestingly,theyweredevelopedbythecompany’sengineersresponsible

forthetyresusedbytheCorvetteracingteamcompetingintheAmerican

Le Mans Series. The marketing material indicates that these street-legal

versions of the race tyres are capable of improving lateral acceleration

by up to eight percent to around 1.1 G, while

also significantly shortening brake distances. An

independenttestatthe5,26kmVirginiacircuitin

theUSindicatedanimprovementof3secperlap

overthestandardtyre–whichisimpressive.

Specialisedsemi-slickrubbercanalsobefoundon

thelikesoftheBMWM3GTS,Porsche’sGT3and

GT2RS,varioustrack-orientedLotusmodels…and

manymore.Whilehardlysuitableforunpredictable

everydayuse,thesetyresaretangibleproofofthe

directtransferofracetechnologytotheroad.

So theevidence is there– tyrecompaniesaren’t

investing huge amounts of money just for the

goodwillandprosperityofmotorracing.Thereare

genuinebenefits in termsof the lessons learned,

and the technology transfer that results, filtering

rightdowntoentry-leveltyres.

Certainly, the brands that do participate in

motorsporthaveabolder,moreobviouspresence

tothehard-coreracingenthusiast.

I justbelievemoreshouldbedonewithit–bring

backtheexcitement,theglamour,thepassionand

theintriguingcharactersthatmademotorracingso

popularinyearsgoneby.

Thetyrecompaniesdon’tnecessarilyhavetogiveuptheirexclusivestatus

(althoughIthinkitcouldbeagoodthingiftheydid),buttheyshouldmake

betteruseofmotorracingasthehigh-adrenaline,action-packedmarketing

platform that it is. Make it more widely appealing, and motorsport will

benefittoo.

❝

On the tyre front, Pirelli is

the sole supplier to Formula

One, Bridgestone supplies

the SA Production Cars,

Continental is involved in the

VW Polo Cup and Goodyear

provides the rubber for the

mighty WesBank V8s.

Did you actually know that?

And when last did a racing

advertisement catch your

eye on the ‘box, or in a

magazine? It rarely happens

these days.

❞

O n e - o n - O n e • 3 9

Blacktech X 12/6/10 3:00 PM Page 1

Composite

C M Y CM MY CY CMY K

4 0 • G o o d y e a r N e w s

GooDyeAr’s AsTonIsHInG neW eAGLe HAs LAnDeDWhen driving, it pays to be prepared for the unexpected. You’ll be thankful for a lifetime.Goodyear’sbrandnew,remarkablyinnovativeEAGLEF1ASYMMETRIC2tyre–with

pioneeringActiveBrakingtechnologythatdeliversupto3metresshorterstopping

distance–hasjustbeenlaunchedinEuropetointernationalapplause.Andithasjust

landedonSouthAfricansoiltoo.

When it comes to road safety, split seconds can make all the difference.

That’s why Goodyear is proud to introduce new Eagle F1 Asymmetric 2

with revolutionary ActiveBraking Technology, an exceptional Ultra High

Performance(UHP) tyre thatdeliversseriously improved,shorterstopping

whenyouneeditmost.Designedtosurpasseventheindependentlytested

achievementsofitslegendarypredecessor,GoodyearEagleF1Asymmetric,

thisnewEagleisaprimeexampleofhowinnovationandaquesttocontinually

improveautomotivesafetyhasalwaysdrivenGoodyearfurther.

enGIneereD For sAFeTy

EagleF1Asymmetric2hassetnewstandardsindryandwetperformance,

handlingandbrakingintheUHPtyresegment.

New Goodyear Eagle F1 Asymmetric 2 incorporates tyre technology designed to save lives, with an impressively shorter stopping distance in wet and dry surface conditions.

The Eagle F1 Asymmetric 2 was launched at an international Goodyear brand event in Seville, Spain. Dubbed ‘The Ultimate Goodyear Experience’, it showcased Goodyear’s spirit of innovation and guests enjoyed maximum driving time on the new tyre, both on road and on the nearby Monteblanco racetrack.

G o o d y e a r N e w s • 4 1

The engineering, briefly, of ActiveBraking Technology is such that it

increases the road contact patch of the tyre during braking. While

conventional tyreblocksshow littleorno transformationduringbraking,

the blocks in the Eagle F1 Asymmetric 2 are designed to develop more

surface under braking load and therefore increase the tyre-to-surface

contactarea.Thelargercontactpatchoffersincreasedgrip,whichinturn

leadstoshorterstoppingdistances.

TÜV TesTeD

TheEagleF1Asymmetric2wasextensivelytestedbytestingorganisation

TÜVSÜDAutomotiveat tracks inFranceandGermany.TÜV isa leading

independent partner to the automotive industry, providing consulting,

testing and certification services in the field of innovative product and

processimprovements.

The new tyre performed exceptionally well during testing, delivering a

life-saving three-metre shorter braking distance on wet roads compared

totheaverageperformanceofthreeleadingcompetitors.WhentheEagle

F1Asymmetric2hadcometoafullstop,thecompetitorstestedwerestill

travellingatanaveragespeedof24kilometresperhour!

Thetyrealsoperformedwellindrybrakingandhandlingtests,stoppingtwo

metresshorter than thecompetitors.Plus, theTÜVSÜDtestsconfirmed

that theEagleF1Asymmetric2delivers top-classrollingresistance in its

category,7%betterthanaverage.

HAnDLInG PrecIsIon

The Eagle F1 Asymmetric

2 features a crossed plies

carcassstructureandanewtreadcompoundusingauniqueblendof

polymers,ahigh levelofsilicaandracetractionresin–bothofwhich

contributetoexcellenthandling,steeringandbrakingperformances,aswell

asincreasedlevelsofadhesiontoroadsurfaces.

The tyre’s lighter weight also contributes to better dry handling, as the

vehicle’s consequently reduced mass enables the tyre to follow surface

contoursmoreclosely.

“Itisimpossibletobepreparedforeveryeventualityontheroad,butwith

thenewEagleF1Asymmetric2,whenitcomestobraking–whereevena

splitsecondandafewcentimeterscanmakeallthedifference–consumers

canfeelbetterpreparedfortheunexpected,”saidRobertHarris,Goodyear

South Africa Product Manager: Consumer and Commercial Tyres, who

attendedthetyre’sinternationallaunchinSpainrecently.

BLAcK eAGLe Is Green

ReducedfuelconsumptionandCO2emissionsareanaddedbonusinEagle

F1Asymmetric2,thankstoGoodyear’srenownedFuelSavingTechnology.

The tyre also offers a smooth, quiet ride with lower noise emission levels

becauseofitscleverlyoptimisedblockdesign,andbettermileagebecauseits

cavityshapeandtreadstiffnessresultinuniformpressureacrossthefootprint.

LocAL AVAILABILITy

The Eagle F1 Asymmetric 2 is being manufactured in several German

Goodyear plants, in a versatile 29 sizes. From 2012, an additional 21

optionswillbeaddedtothesizeline-up.Shipmentsofmostpopularsizes

fromEuropetoSouthAfricahavealreadycommencedandstartedarriving

towardstheendofApril.

IMMeDIATe APPLAuse For neW eAGLe

Just one week after the launch of the Eagle F1 Asymmetric 2 in Spain,

Goodyear celebrated its first major success: a rave review in a major

magazinetest.

The well-respected German magazine,

Auto Zeitung, tested a range of ultra-high

performance tyres and declared the latest

Goodyear as ‘Very Recommendable’. The

impressive tyre showed the benefits of

its unique, revolutionary ActiveBraking

Technology,withfirstplaceinAutoZeitung’s

stoppingdistancetest–comingtoahalt3.5

metres before the worst of the competitor

tyrestested.

In independent testing by internationally renowned quality consultants TÜV SÜD Automotive, the Goodyear Eagle F1 Asymmetric 2 delivered exceptional results of up to three-metres shorter braking distance on wet roads compared to most competitors’ tyres.

Safety considerations aside, reduced fuel consumption and CO2 emissions are an added bonus in Eagle F1 Asymmetric 2, thanks to Goodyear’s renowned FuelSaving Technology. The tyre also offers a smooth, quiet ride with lower noise emission levels.

D e a l e r P r o f i l e • 4 3

Whatever would induce a successful, award-

winning entrepreneur to deviate from his

established business interests within unrelated

market sectors and open a tyre franchise?

Opportunityandchallenge–atleastthosewere

theprimarymotivatorsthatledtoNirenHarduth

joiningtheSupaQuickrankssome18months

ago.

reTAIL KInGs enter

Tyre Trade!TheHarduth/Hargovanfamily–comprisingmatriarch,PamHargovanand

hersons– isbetterknown for itsmanyaccomplishments in theservice

stationandfastfoodsectors,businessinterestswhichtookroot13years

ago with the opening of their first service station outlet in Bedfordview

Morefollowedandeventually,theyexpandedintotheConvenienceStore

andFastFoodmarketsaswell.

Along with several retail accolades amassed over the years, in July 2001,

Niren,theyoungestson,wasalsorecognisedasthewinneroftheBusiness

Partners Sanlam Award, an award that pays tribute to entrepreneurship.

Clearly, the Family already possessed the makings of successful business

moguls.Allthatremainedwasforthemtocometogripswithabrandnew

industry,togetherwithallofitsuniquechallenges,politicsandidiosyncrasies.

Facing the challenges – Niren, Pam and Wayne of Supa Quick, Glen Shopping Centre.

4 4 • D e a l e r P r o f i l e

But Niren vowed that the challenges associated with an industry he

knewnothingaboutwouldnotdeterhim.Onthecontrary,hebelieved

that his knowledge andexperienceof retailwould standhim in good

stead inhisnewenterprise,providedthatheembraced itwithsimilar

zealandpassion.

“I grew up in this part of the world,” explains Niren, “and I frequently

remembermyfamilycommentingontheabsenceofatyrefitmentcentre

toservicethesouthernsuburbsofJohannesburg.Thedevelopmentofthe

GlenShoppingCentresignalledaneweraforthesouth,uponwhichwe

werequicktoseizeontheopportunitiesitprovided.Havinglongidentified

the need for a tyre store and not just any store, but a top of the line

superstore,wewereoneofthefirstprospectivetenantstoapproachthe

developerforapotentialsitefiveyearsago.Threeyearslater,inNovember

2009 tobeexact,devoidofsignage (thiscame threemonths later),our

doorsopenedfortrading.

“Businesswasslowatfirst,butaggressivemarketingonourpart,coupled

withaskilledstaffforcesourcedfromwithintheindustry,seemedtodothe

trick.“Wemayhavelackedindustryexperiencebutourstaffcertainlydid

not,particularlyWayneWasserfall,ourstoremanagerwhocomestouswith

morethan20yearsofexperienceinthetyreretailgame.”

TheFamilyalsoinvestedheavilybywayofadvertisinginthelocalpapers,

pamphletdropsandafive-metrebillboardpositionedatanearbyschool.

Plus they secured advertising space on the street poles bordering their

oppositionstores,astrategicmovethatappearstohavepaidoff.

Says Niren: “Since we don’t enjoy prime visibility, we need to utilise

everythingatourdisposaltoalertthepublictoourexistence,evenifthis

means piggy-backing onto our rivals’ media campaigns. At least people

arenowaware thatdedicated tyrefitmentoutletsexist in thispreviously

neglectedpartofthecity’ssurrounds.”

Ofcourse,itdoesn’tendthere.Providingthatultimatein-storeexperience

remainsparamount ifNirenandhis teamare towinover the localsand

securerepeatbusiness.

“Ourchallengeisnotonlytoattractagrowingnumberofcustomerstoour

doors,but toalsoensure that theyare treatedwith fairness, friendliness

andrespect,”saysNiren.

“We rely heavily on our frontline to provide an impeccable service,”

commentsPam,“somethingwhichtheyareregularlybeingtrainedfor.In

addition,weprideourselvesinprovidinganupmarketshopimagetogether

withapristineenvironment.Housekeepingisveryimportantasshoppers

no longer want to be subjected to the greasy, back-yard operations of

yester-year.”

The frontline is expected to provide a premium service.

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As forwhy theychose topartnerwithSupaQuick, theyclaim that they

chosetocapitaliseonthereputationofthebrand.Andasnovicestothe

tyresector,itwasalsoimportantthattheyteamupwithagroupofexperts

whowouldbewellqualifiedtoshowthemtheropes.

Finally, the tide seems to be turning, with the franchise growing month

onmonth,break-evenpointisnearing,anachievementtheyareproudof.

“Wegaveourselves18months inwhich tobreak-evenandwe’rea little

short of that only because the investment in the business has been

intensive,”claimsNiren,“andnotonlywithrespect tomarketingbutalso

withourinventory.Thispartofthecityisdiverseinitsproductrequirement,

andwehavetocateracrosstheboard,fromentry-levelvehiclesrightup

to those in themillionpluscategory.Stockshortagesof theappropriate

sizeormakeoftyrecouldwellendupsendingthecustomertooneofour

oppositionstores,soweneedtobewellprepared.”

Innosmallpart thanks to theprofessionalismandenthusiasmofNiren,

Pamandthemanagementteam,thegrowingnumberofmotordealerships

inthearea,andtheabilityofthebusinesstoprovideacompleteunderbody

service,SupaQuick’slatestadditiontoits250-strongfold,lookswellplaced

tomakeitsmarkinthisfast-developingareawhichisdestinedtobecome

thenexthubofthesouth.

A large warehouse on the premises ensures stock availability.

Housekeeping is of the highest standard.

Tandem Tyres Pty Ltd,

the proud owners of the HILO® trademark in South Africa

Specialising in tyres for:

Articulated Dump

Trucks

Trucks

High speed mobile

Cranes

Industrial

Rigid dump trucks

Loader/Dozer

For the best quality, service and attention contact us:

Tel: 031 765 2650 Fax: 031 765 2695

Website: www.tandemtyres.co.za

W o r l d N e w s • 4 7

PIRELLI’SNEWHARDTYRETOMAKEITSDEBUTINSPAINPirelli’snewestracingtyrefortheF1circuitwillmakeitsdebutinSpain.Both

PirelliandtheteamshaveaccumulatedquitealotofdataaboutBarcelona,

which is typically chosen for testing as it contains a challengingmixof

cornersandspeeds–highlightingeveryaspectofacar’sperformance–

andgenerallygoodweatherconditionsallyearround.

Thenewtyreissaidtoofferalittlemoredurabilityoveraracedistance

andprovidesawidergapbetweenthesoftandthehardcompound,which

gives the teams an opportunity to run more aggressive strategies. The

PZeroYellow(soft)tyre,whichhasbeenusedateveryracesofarthisyear

alongsidethePZeroSilver(hard)tyre,willalsobeprovidedtotheteamsin

Barcelona. (quickpic.co.za)

RUBBERPLANTATIONACQUISITIONSAPOSSIBILITYFORAPOLLO

Management at Apollo Tyres are considering the purchase of rubber

plantations as a potential means of countering ever increasing rubber

prices. On May 27, the tyre maker’s vice-chairman and managing

director Neeraj Kanwar told Indian publication The Economic Times

that ‘as far as buying rubber plantations, or for that matter any kind of

backward integration, is concerned, we are always open to possibilities

depending upon the need of the hour’.

Kanwar added that Apollo is also reviewing contracts with suppliers to

‘correct’ rubber prices and is working to offset high rubber prices by

maintainingaleanerandmoreefficientinventoryandgreaterproduction

efficiency. (www.tyrepress.com)

TRUCKTYREOFTHEFUTURE?MICHELINREVEALSFIVETONNETRAILERTYRE

We’ve heard of the super-single category of truck tyres that are designed to

reduce rolling resistance and increase fuel economy by replacing twin tyre

fitments with a single, wider tyre. But what about a truck tyre that can carry

so much more load than standard products that a trailer fitted with these can

cancel out the need for an entire axle? Alongside the numerous passenger

car tyre developments, Michelin also unveiled what we might tentatively call

a five tonne truck tyre – a product that has the potential to be revolutionary

in the truck market.

DevelopedincollaborationwithMANandKrone(owingtotheneedtotest

anddevelopthesetyresonspeciallyadaptedtwo-axletrailers),thenewfitment

reportedly offers hauliers an impressive 900 kilograms more load and a

potential14percentfuelsaving.Accordingtothecompanythefuelsavingand

loadenhancementaregeneratedbytheremovalofunnecessarytyres,wheels

andofcourse,anaxle.Thisisachievedbytheinclusionof‘ultra-strength’steel

tyre cord in the constructionof thenew tyre,which although itmakes the

casingalotstrongeralsohastheadvantageofmakingitonlyslightlyheavier.As

aresultthenetgaintothehaulierisverysignificant.Andasyouwouldexpect

–likeallMichelintrucktyres,thelatestofferingissaidtobefullyretreadable,

meaningitislikelytoofferhighwhole-lifemileagesaswell.

(www.tyrepress.com)

SUMITOMORUBBERCONSIDERINGBRAZIL,INDIATYREFACTORIESSumitomo Rubber Industries Ltd is reportedly considering building tyre

factoriesintheemergingBRICmarketsofBrazilandIndia.

ReportingonabusinessstrategymeetingheldinTokyoon28April,online

newsourceswrotethatSumitomo’spresidentIkujiIkedasaiddemandfor

WORLD’SPRICIESTTYRES–SETOFBUGATTIVEYRONRUBBERCOSTS23500POUNDS!

Ever wondered what the most expensive passenger car tyres in the world

are? According to a report published on the Autocar website on 14 January,

Bugatti Veyron rubber must be a prime contender with a set of four new

tyres costing 23 500 pounds to replace! And if you were wondering

which tyre manufacturer won the OE contract to supply these products,

a quick look reveals that

the 406km/h car, which

is capable of 0-300 km/h

in under 14 seconds fits

Michelin Pilot Sport Pax

System 245-690 R520A

(front) and 365-710R540A

(rear) tyres.

Themainreasonforthegreat

expense,Autocarexplains,is

the fact that theyhave tobecapableof253mph ‘over100mphfaster than

Corcode’slandingspeed’.Howeveraccordingtothereport,what’sworseisthat

everyfourthtyrechange(assumingyoucanaffordtorunthecarthatlong)the

Veyron’swheelshavetobestresstestedforcracks.Thereplacementcostfor

these20-inchforgedrimsissaidtobeanother7050pounds.

tyresisgrowingrapidlyinbothcountries,soexpansionintothesemarkets

hasbecometopicofdiscussionatSumitomoRubber.Varioussourceshave

reported that Ikedasaid thecompany intends toestablish itsownplants

there,but‘mayconsider’formingjointventureswithlocalfirms.

(www.tyrepress.com)

iStockphoto®,©morepixels,BugattiVeyrononRodeoDrive

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QuesTIon: on which suV is the new Pirelli scorpion Verde fitted as original equipment?

AnsWer: ____________________________________________________________________________________

Name:_________________________________________________________________________________________

Company:____________________________________________________________________________________

Address:______________________________________________________________________________________

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Telephone:__________________________________ Cellphone:_________________________________

4 8 • C o m p e t i t i o n / S u b s c r i p t i o n

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Congratulations!to our previous competition winner

Mr Charles Brown of Karan Beef, Johannesburg whosecorrectanswerwinshimasetoflocallyproducedGoodyearbrandedtyrestothevalueofR5000.00

Win…… a set of

Scorpion Verde tyres courtesy of

PirelliPrizebasedoncurrentstockandsizeavailability.

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