The Phoenix

Good Riddance to 2009

2009 was a watershed year for countries, companies, institutions, politicians and
individuals, with practically no one exempted from its effects. The overwhelming
majority were impacted negatively, with the result being a general malaise and a lack-
lustre approach from all and sundry, which does not really reflect reality. But, as
the marketers will tell you, perception is fact, so the challenge is to go into 2010
with a new mood, and a new energy.

F
rom an automotive industry perspective, 2009 was effec-
tively a tale of two industries. For the new vehicle market,
with a dramatic three year cumulative drop in unit sales,
it was the worst of times, whereas for the automotive
aftermarket, judging from the avalanche of anecdotal evidence, it
was the best of times. The problem is that it is all anecdotal, as if
the companies riding on the crest of an ageing car parc do not
want to gloat or boast, preferring to look glum and nod in sympa-
thy with their tortured siblings. It is also a form of a security blan-
ket, which allows for decisions to be deferred and allowing time to
see if the situation will continue. The psyches have indeed been
deeply scarred by the misadventures of profligate brokers and
bankers. Three recent automotive aftermarket conferences con-
firmed this prognosis, with all the presentations confirming the
better than expected scenario, but no one shouting from the
rooftops. Gordon Odgers, CEO of Midas, put it into a nutshell at
the Midas Napa Convention 2009, when he said that “the really
good news is that in the automotive industry the aftermarket is the
best place to be, despite the challenges.”
This should be a call to arms for those sitting quietly on the side-
lines. All the economists are saying that we are entering the sweet
spot of the car parc; four to twelve year old cars are in the hands
of the motorists to an extent not seen before, and the industry
should not only be licking its lips in anticipation, it should be
aggressively pursuing this market, in many proactive ways; leverag-
ing working capital, advertising, marketing, sales promotions, and
all those good things. But all I see is hesitation and hand wringing,
the last refuge of insecure businessmen. Come on guys, get out of
your funk, and do something to make things happen. The world
is your oyster, and is there for the slurping. The automotive after-
market has never been for sissies, but for goodness sake, all I see is
handbags at twenty paces.

and Welcome to 2010….

A
BR’s message is to drop this attitude, and to say
sayonara to 2009, and to welcome 2010 in an
entrepreneurial embrace. As part of this exer-
cise, we have allocated a significant number of
pages of our December 2009/January 2010
issue to what we call our “Appreciation Section”.
Appreciation that we have seen 2009 through,
no matter how good or bad the year actually was. And apprecia-
tion that 2010 is going to be better, much better, for all, but with
the automotive aftermarket being “the best place to be”. The
response from the progressive and appreciative AAMA members
has been generally enthusiastic, and other similar minded compa-
nies have joined in the celebration. These will be the flag bearers of
the 2010 renaissance. To those still on the fence, get out those
whips and stirrups, put on your leathers, and ride the bronco with
verve and dash. The beast wants to be tamed, but does not appre-
ciate the limp wristed approach. Go get ‘em, cowboy!

ABR wishes its readers a restful and reflective year end. Use the time to
charge your batteries and to mend relations with your loved ones, and then
…. Come out Smoking.

w w w. a b r b u z z . c o . z a
2 December 2009 – January 2010
 Contents

20 84 87

2 The Phoenix Good Riddance to 2009

6 What’s the Buzz
12 e-CAR National e-CAR Indaba 2009
17 Show Time Tyre Expo 2010
18 The Chery Story The Toughest Test
20 Auto Topical The 2010 World Cusp
22 Frankly Speaking 2009 – A Watershed year
24 Intelli-Driving Safe Driving Tips
25 Appreciation Section # One
40 Tony’s Take King II est mort, vive King III
42 Weighty Issues The Hope Fades
44 Appreciation Section # Two
50 Top Class Topics Working Hands Aren’t Always at Work
52 Health Care An Update on Moto Health Care
58 Commercial Vehicle News Peugeot Introduces the Tepee
Peugeot Increases its Commercial Vehicle Footprint
62 Tyre Safety Tyres’ Contribution to Safety in Motoring
56 Personal Profile Q & A with Dave Powels
65 AIDC Quiz
66 Customer C.A.R.E. Customer Relationship Management
Trilogy Customer C.A.R.E. Programme

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loss or inconvenience sustained by any reader as a result of information or advice in Automotive Business Review. The information
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Commercial Vehicle Editor Correspondents Twine, Tony
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Burford, Adrian Published by: e-mail bigheart2@iafrica.com
Gamble, Austin Trilogy Publishing
4
 Contents

99 101 106

72 Diamond Dialogues Opening the Doors of Perception to Standards and Controls –

Part Two
74 AAMA Alert Currency Challenges
75 Partinform River Deep, Mountain High
80 Capricorn Insights A Helping Hand
82 Launch Technologies Launch’s Silver Bullet
84 Partinform What They Were All Waiting For!
86 Diesel-Electric Convention Robert Bosch Announce New Workshop Franchise
88 Industry Update The end of an era
89 Vehicle Evaluation The Z Car
90 Industry Update Passing the Baton
92 Life Goes On Restoring the Status Quo
A New Sunrise
96 Market Research Quality, Service, Satisfaction – the Manufacturers Respond
97 Burford on Brands A Reliable Citizen
98 Vehicle Evaluation A Capable Commuting Vehicle
Champ All You See
99 Two Wheels The Sting in the Tale
100 Hogg’s Wash Wolf Whistle
102 Corporate Conscience Putting Something Back
Fore a Good Cause
106 Fast Wheels Formula S
Scandal Ridden Formula One Season Closes
110 Wilde Things Get Thee to a Nunnery, Sir!
111 The Last Writes

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e-mail: bigheart2@iafrica.com
December 2009 – January 2010 5
5
 What’s the Buzz?
SUZUKI ALTO ACHIEVES 1.67 LITRES PER suzuki@suzuki-media
100KM IN CITY DRIVING
After a successful New Zealand North-South drive at an average of just
over 3.5 litres/100 km last month, the highly fuel efficient Suzuki Alto
has taken part in a further fuel efficiency marathon, this time down
through Australia, managing to complete the journey at an average con-
sumption of 3.2 litres per 100km overall, an 18.5 per cent improvement
over the official Australian combined figure (+13 per cent over European
figure) and a staggering 2.0 litres per 100km attained in City traffic – the
lowest recorded of any entered vehicle. The Global Green Challenge ran
North-South from Darwin to Adelaide and placed conventional and
alternative fuel cars against each other in a 3000km real world test. The
winner of the challenge was the vehicle judged to have recorded the
biggest improvement over its official fuel consumption figure. Alto won
the ‘Light’ and ‘Small’ car categories; ‘best urban cycle’ category and an
overall CO2 emission of 89.9g/km, using just 123 litres of fuel for the
seven day trip.

South Africans move toward

eco-friendly vehicles
CO2 emissions are becoming increasingly topi-
cal, as they are one of the contributors to global
warming. A total of 17 % of global CO2 emis-
sions generated by industrial and combustion
processes can be attributed to road transport, and
reducing such emissions is therefore one of our
most important goals. The key is to lower the
fuel consumption and to make our vehicles more
efficient and environmentally friendly in general.
“To this end Mercedes-Benz Cars is pleased to
report year-to-date sales of the C-Class C180
Kompressor BlueEFFICIENCY model of 3 481
units which amount to 33 % of the local C-Class
sales,” says Eckart Mayer, Divisional Manager at
Mercedes-Benz South Africa. Total sales for the
C-Class model range in October reached 1 010
units, representing a market share of around 43
% in the medium luxury segment. The newly
introduced E200 CGI BlueEFFICIENCY has
already made great inroads in the market. Total
E-Class sales amounted to 232 units, of which
69 were E200 CGI BlueEFFICIENCY models.
This equates to 30% of total E-Class sales. “We
are pleased to note that our customers are
becoming more and more eco-conscious, as can
be seen by the success of our BlueEFFICIENCY
models, launched this year,” concludes Mayer.
GM Board Decides to Retain Opel
Given an improving business environment for GM over the past few months, and the importance
of Opel//Vauxhall to GM’s global strategy, the GM Board of Directors has decided to retain Opel
and will initiate a restructuring of its European operations in earnest, it was announced early
November. “GM will soon present its restructuring plan to Germany and other governments and
hopes for its favorable consideration,” said Fritz Henderson, president and CEO. “We under-
stand the complexity and length of this issue has been draining for all involved. However, from
the outset, our goal has been to secure the best long term solution for our customers, employee,
suppliers and dealers, which is reflected in the decision reached today. This was deemed to be the
most stable and least costly approach for securing Opel/Vauxhall’s long-term future.”
Award for outstanding technology
The Schaeffler Group has added another series. A total of 123 technical innovations were
renowned award to its comprehensive collection presented to the 8,500 visitors during the three-
with the “Outstanding Technology 2009 day technical conference. 17 of these innova-
Award”. This important prize is awarded by the tions came from the Schaeffler Group. The
Society of Automotive Engineers (SAE) based decisive factors for the jury’s decision were the
in the USA. The award for “outstanding tech- product advantages of the fully-variable valve
nology” was presented during the SAE control system, i.e. the significant reduction of
Technology Congress held in São Paulo in fuel consumption and emissions while improv-
October. Among the milestones in innovation ing the performance of the engine, and the
presented in Brazil, such as the dry double technical implementation of the concept in the
clutch for direct-shift transmissions and the development of a volume produced product.
twin tandem ball bearing, the jury of experts “There is probably no better occasion for a
particularly honored the world’s first fully-vari- technology award than a renowned technology
able hydraulic valve control system UniAir. congress,” explained Sergio Pin, Vice President
UniAir has been in production since May 2009 Automotive Sales and Production Development
and is used by Fiat and Alfa Romeo in the of the Schaeffler brands INA and FAG in South
MultiAir models of the MiTo and Punto Evo America.

The Renault-Nissan Alliance, the CEA and the FSI sign intent to create a joint venture to develop and
manufacture batteries for electric vehicles in France
A letter of intent was signed on 5th November 2009
in Flins between the Renault-Nissan Alliance, the
French Atomic Energy Commission (CEA) and the
French Strategic Investment Fund (FSI) to set-up a
joint venture company that would develop and man-
ufacture batteries for electric vehicles, under the
patronage of Christian Estrosi, the French Minister
for Industry. Renault, Nissan and the CEA would
bring technical expertise and infrastructure support
in addition to an equity investment. Consistent with the contin-
uous support and proactive policies of the French government towards zero
emission mobility, FSI will join the project and contribute to 125 million Euros. In
order to complete the financing of the project, the European Investment Bank (EIB) is consider-
ing a loan of up to 50% of the 280 million Euro debt financing. The joint venture between Renault, Nissan,
CEA and FSI would focus on advanced research, manufacturing and the recycling of electric vehicle batteries. The joint venture
plans to produce batteries from mid 2012 at the Renault Flins plant, located 30km from Paris. Production capacity is targeted at
100,000 batteries a year. The investment value of the first phase of the project is estimated at 600 million Euros.

6 December 2009 – January 2010

 What’s the Buzz?

Exhilaration. Emotion. Evolution

What a great start. The first cars are barely off the production line and
already the first all-new Lotus in 15 years, the Evora, is winning awards.
Not just any awards either. How about CAR Magazine’s (UK) prestigious
2009 PCOTY Award. The starting field of 30 performance cars was divid-
ed into 5 groups with the Evora being lined up at Rockingham Race
Circuit against the Porsche Cayman S, Audi TT RS, Nissan 370Z, BMW
NEVER IN THE S.A. AUTOMOTIVE INDUSTRY
Z4 3.5, Infiniti G37 and Mazda MX5 in the sports cars category. With HISTORY HAS THERE BEEN A MORE CRUCIAL
less than a second separating the Porsche, Audi and Lotus, the lap times TIME FOR AN AFFORDABLE AUTOMOTIVE
were sizzling. The cars were assessed, pushed and scrutinized in detail. And
then there were five. The finalists in their respective classes were the COMPONENT AND TECHNOLOGY SHOW!
Lamborghini LP670-4SV, Mercedes-Benz E63 AMG, Renault Clio Cup
200, VW Golf GTi and the Evora. And the overall winner, the Lotus Sayings of old, such as: “When the going gets tough, the tough get going”
Evora. The Lotus Evora will arrive in South Africa in early 2010. It will and “Ask not what your country can do for you? But what YOU can do for
retail for R 899 000. your Country” - truly apply to the times we are going through at present. It
is a time for creativity and doing our bit to make a difference in our own
back yard. Our industry needs every ounce of positive stimulation that it
ACSA-MAG now also can get and the WATS Expo (Workshop Aftermarket & Technology Show)
had this in mind from as far back as 2005. WATS is perfectly aligned, will-
ing and able to do just that. Where else can exhibitors get a 3x3m Stand
distributing TERRIER! with a Basic Shell Scheme for a mere R 4,950.00 plus Vat? Only at WATS!
A Big Bang for your hard pressed Buck! Have you registered for your stand

A
s a distributor of automotive spares for over 25 years, ACSA- yet? 24-25th March 2010 @ The Pretoria Show Grounds. WATS for 2010
MAG has grown to become a leading distributor of auto-elec- will run for 2 days, in the same week as the Heavyweight Expo that also
trical spares throughout the KwaZulu-Natal region, offering a takes place at the Pretoria Show Grounds from 23-26th March 2010. Will
massive range of high-quality branded automotive aftermarket you play your part in stimulating our Industry in 2010? Or will your com-
products including ACSA-MAG, BRITAX, MAG BRAKES, TRUCK- pany be “Inconspicuous by its Absence” - a powerful quote from a pioneer
LITE, WARN, COME UP, UNIONTECH, TERRIER ! and ECH- of the original WATS planning Team. Activity breeds interest! Activity
LIN. The company was also appointed by Control Instruments makes things happen! Activity kills lethargy! Activity is Healthy! Period! A
Automotive as one of its distributor for KZN and has recently taken on second show is planned in September or October 2010 in Bloemfontein, for
the distribution throughout the province for HELLA automotive which HUGE interest has been shown, some stands already tentatively
wiring. The company also has a subsidiary business - FIXEM POWER reserved even before the Floor Plan has been formulated! The organisers will
STEERING & SUSPENSION SPECIALIST, which has three branch- finalise the Venue and Date for this show by the end of November 2009 and
es in the region offering repairs to power steering systems (racks and will make the details available on the WATS website during
pumps), conversions from manual to power steering and repairs to vehi- December/January and in their WATS January 2010 Press Releases. For fur-
cle suspension. ther information visit www.wats.co.za where you can also register on-line or
contact Miranda on: 082 9680 214 & admin@wats.co.za or Johann on: 082
Tel 031 312 1030, Fax 031 312 1070 5515 061 & info@wats.co.za. The WATS Expo’s are fully Endorsed by the
RMI (Retail Motor Industry Organisation of S.A.)
e-mail scottd@acsa-mag.co.za

FINALISTS ANNOUNCEMENT - 2010 SAGMJ / WESBANK CAR OF THE YEAR

A vote consisting of the full members and a jury made up of 30 selected
members of the SAGMJ have chosen the following eight finalists to par-
take in the 2010 SAGMJ / WesBank Car of the Year competition to com-
pete for honours in the country’s premier motoring event:
Alfa Romeo MiTo 1.4i Turbo Petrol
Audi Q5 2.0 T S tronic
Chevrolet Cruze 1.8 LS
Hyundai i20 1.6 GLS
Suzuki Alto 1.0 Litre GLS
Toyota Prius 1.8 ECVT Advanced
Volkswagen Golf VI 1.4 TSI 90 kW Comfortline
Volvo XC60 3.0T Geartronic
The next step in the process is to determine the winner from a two-day
test session to be held in February 2010 at the Gerotek test facility near
Pretoria, where the cars will be assessed independently by the jury mem-
bers. ABR shall do an analysis of the finalists in its February 2010 issue.

8 December 2009 – January 2010

 What’s the Buzz?
Bridgestone supports Cape Leopard Trust
Bridgestone South Africa has added the Cape Leopard Trust to
the organisations it is supporting under its corporate social
investment umbrella and Bridgestone’s global One Team, One
Planet initiative. The support is in the form of a set of new tyres,
including spares, for the Trust’s fleet of five 4x4 vehicles as well
as a substantial cash donation. The Cape Leopard Trust was
formed in 2004 to facilitate conservation of the Western Cape’s
predators through the combination of conservation strategies,
research projects and tourism initiatives. The Trust operates in
wilderness areas in the Cederberg, Swartberg/Gamka corridor
and Namaqualand areas. “We are delighted to associate ourselves
with the Cape Leopard Trust,” said Romano Daniels,
Bridgestone South Africa’s general manager of group marketing
and communications. “They are doing important conservation
work, while at the same time providing valuable learning oppor-
tunities, in particular to children, about the endangered Cape (from left) Bridgestone’s 4x4 specialist Johan Mostert, Bridgestone GM Western
mountain leopard. Our support is in line with our commitment Cape Errol Momsen, Cape Leopard Trust’s Elizabeth and Quinton Martins,
to conservation and the environment as embodied in our 4x4 and Mandy Lovell of Bridgestone Corporate Communications.
Fundi programme.”

TREAD CAREFULLY IN SUMMER RAINS Bridgestone South Africa wins Focus on

Correct tread depth is vital to ensure that your car is control-
Excellence best tyre award
lable on wet roads. This is according to Romano Daniels,
Bridgestone South Africa’s General Manager of Group For the third time in four years Bridgestone South Africa is a winner in the annual
Communications and Marketing. “Many people think that Focus on Excellence Awards, sponsored by WesBank and hosted by Focus on
the purpose of tread on tyres is to grip the road,” he said, “but Transport and Logistics magazine. The Focus on Excellence award for best tyre was
it’s actually to disperse water on wet roads. If your tyres are awarded to Bridgestone South Africa for its Bridgestone brand for the second year in
worn, they might not be able to clear away standing water fast succession. Bridgestone’s popular Firestone range won the inaugural award in 2006.
enough and the tyre will then begin to skim along the surface Bridgestone provides transport operators with a comprehensive range of commercial
of the water. This is called aquaplaning or hydroplaning,” vehicle tyres, ideally suited for a wide variety of applications. Julio Fava, general man-
he explained. He said that aquaplaning was very dangerous ager of producer sales at Bridgestone SA, accepted the award: “I’d like to thank each
because the tyre was no longer in contact with the road, mean- and every transport operator and manufacturer who bought even one Bridgestone
ing the vehicle could not be braked or steered. “Motorists in tyre in the past year. Without our customers we have no business, so thank you for
the summer rainfall areas of South Africa should pay careful the continued support.
attention to their tread depth to ensure proper traction in
the sudden downpours which are common at this time of Yujiro Kanahara
year,” he added. (centre), chairman
and CEO of
Bridgestone South
Africa, with Julio
Fava (right), general
manager producer
sales, and Romano
Daniels, general
manager group PR
and marketing.

KenKen 9 X 9
How to Play:
Like Sudoku, even though difficulty may vary from puzzle to puzzle,
the rules for
playing KenKen are fairly simple:
For a 9 x 9 puzzle, fill in with the numbers 1-9.
• Do not repeat a number in any row or column.
• The numbers in each heavily outlined set of squares, called cages,
must combine (in any order) to produce the target number in the
top corner of the cage using the mathe-
matical operation indicated.
• Cages with just one box should be filled in with the target number
in the top corner.
• A number can be repeated within a cage as long as it is not in the
same row or
column. Answer on page 107

Setting the record straight: The November 2009 Automotive Business Review, on page 87, had a heading titled: "Sabat hosts the 7th annu-
al power wheelchair race at Kyalami during the Vodacom Power Tour on the 17th October 2009." This was an error. The event at Kyalami
on 17 October was in fact the final round of the WesBank Super Series - a sponsorship WesBank took over from Vodacom some 3 years ago.
ABR regrets the error.

10 December 2009 – January 2010

 National e-CAR Indaba 2009
It all happened on Saturday, 7th November 2009, at Emperor’s Palace – “The Palace of
Dreams”. The National e-CAR Indaba 2009 comprised an exciting programme of updates,
announcements, business presentations, branding advice, economic overviews, motiva-
tional talks and much more. It all ended with a dinner and show at the fantastic Theatre
of Marcellus, with the guests treated to Richard Loring’s “Midnight Hour”, featuring
Clint and Co, taking the audience on a non-stop nostalgic musical experience.

T
he e-CAR nationwide chain of vehicle service centres Rolf Krull, MD of DESAMARK, out-
has taken South Africa by storm since its introduction lined the four success components of
in 2004, a mere five years ago, and now boasts a mem- e-CAR, and its value added package:
bership of 60 highly committed e-CAR outlets. e-CAR
• e-CAR (Pty) Ltd. – the brand custo-
outlets offer a wide variety of services to today’s discerning
dian and the network developer.
motorist, and thus it is no wonder that e-CAR is the fastest
• Preferred Suppliers – Ate, BOSCH,
growing workshop network in South Africa. The Indaba’s vibrant
Gabriel, GUD, Hella, Osram, Ram,
presentation and participation lived up to this reputation.
SACHS, Valvoline – quality prod-
ucts, sales support and training.
Wolfgang von Ey, Chairman of
• Diesel-Electrics – training, promotions, product info, sales
DESAMARK, opened the conference
support, competitive pricing & specials, efficient delivery
with a compliment to the e-CAR manage-
service, quality brands, financial support
ment team, and lauding the “unbelievable
• e-CAR Members – quality customer service, local advertis-
growth of e-CAR”. He also gave the sage
ing/promotions, national warranty, quality products,
advice that the e-CAR chain is only as
technical expertise, financial support
strong as its weakest link, and that unity is
strength.

Development Highlights:
21 new members appointed in 2009:
Alrode Hauser Barry Hauser
Benoni Gear Gary & Rika du Preez
Chatsworth Advanced Turbos Anthony Pillay
Durban Autospec Faried Adam
Durban Millers Sunil Soonalall
Edenvale DTC Tuning Mike & Shellene Marshall
Ermelo Car Doc Frank Thomas
Fourways Motormax Deon & Angela Cosky
Wilfried Isando M&M Petrol & Diesel Michael Botes
Langenbach – Isithebe Powertrans Shokes Naidoo
Manager e-CAR Klerksdorp Bonding Warren & Kevin Hengst
(Pty) Ltd. Kuruman GGMC Gert Roselt
Lichtenburg West End Auto Electrical Dick & Ilse du Randt
Marble Hall Marble Auto Electrical Marius Stassen
Meyerton Exhaust Tech Manie Prinsloo
Modderfontein Top Care Auto Clinic Craig & Glen Emmerich
Nelspruit Performance Auto Wayne & Stella Masher
Northam Northam Auto Clinic Mohammed Dudhia
Stanger Max Power Anil Dhaver
Thabazimbi Thaba Auto Electric Karel & Jacob Stassen
Welkom du Plessis and Claassen Ben du Plessis / Willem Claassen

12 December 2009 – January 2010

Highly successful regional meetings
e-CAR formed part of the award winning Diesel-Electric stand which achieved Gold Award status at Automechanika
South Africa in March 2009
Monthly Internal Newsletters
Quarterly Newsletters for Motorists
Outstanding Performers in 2009, giving extraordinary support to e-CAR:
Pinetown Chris Swale Motors Chris Swale
Cape Town Beemer Auto John Clay
Stellenbosch Tomson Motors Sean Thompson
Durban B&R Auto Babu Salik
Randburg Ferndale Auto Service Ike Eichweber
Woodmead Corporate Car Clinic Brent Curtis
Sasolburg Car & Truck Hamish Kiddle
Rustenburg Rustenburg Auto Joao Amorim
Phalaborwa Phalaborwa Auto Electrical Thys Taljaard

Future Activities
• Continue Building e-CAR Brand
• Speed up Network Development
• Encourage Members to Attend Training Courses
• To add weighting on training for “Workshop of the Year” Competition
• Further Emphasis on Technical Assistance
• Upgrading of Workshop Standards
The responsibility in raising standards rests at e-CAR head office, Diesel-Electrics, and e-CAR members

Awards
“Workshop
of the Year”
Winner
– Car & Truck:
Hamish Kiddle

“Best Results
Achieved in
Bosch Training”
went to Nick
Papamalis of Sparky
Auto Electrical,
Brakpan

“Workshop of the Year”

“Workshop of the Year” 2nd runner-up
1st runner-up – Corporate Car Clinic:
– Rustenburg Auto Electrical: Brent Curtis
Joao Amorim

December 2009 – January 2010 13

 Benefits and Responsibilities of e-CAR membership

“We Need to Belong”

Clients have been spoilt radically by OEM dealerships – treated with respect, high class reception areas.
Now once their car is five years old, they migrate to non-OEM workshops and expect similar treatment
First impressions are important:
- reception area
- corporate clothing
- spotless workshop
- handled professionally
- customer etiquette
Hamish Kiddle Only deal in top quality parts, train your staff, obtain the right equipment, spruce up your business, make
– Car & Truck use of technology to communicate with customers, make your customer want to come back

Andy Roth, Owner Diesel-Electric (Rand)

- “A little bit of this, a little bit of that”
Profit is not a dirty word
Bosch at the forefront of advances in vehicle safety

“Technology is endless – if you don’t train and keep up with

technology, you will be left behind”
Do’s and Don’ts
Do: Don’t:
Stick to OEM specs Fit parts supplied by the customer
Stick to top suppliers Make functional repairs
Treat the customer and his property with Modify vehicles
respect – better than your own car Fit inferior products because of price
Communicate with your customer Make your customer lose face
Be positive, reliable, punctual and honest Play around – ask for help
Run your workshop professionally

“We will not participate in the economic downturn”

arples
Gavin Sh
d i f f e r e n t, changea
Be
o u r a t t i t ude, taktehe
y e up to
risk, wauknities, be
opport tic, be honest,
authen t the balance
and ge on’t just think
right. D the box, DO
outside the box.
outside

14 December 2009 – January 2010

 Ewald Faulstich, Director Automotive Aftermarket Division, Robert
Bosch SA
– Strategic Importance of a Sustainable, Successful e-CAR Concept
“The battle is on for the hearts, minds and soul of the motorist”
The automotive aftermarket will benefit from the high car sales between 2004 and 2007, that are now out of
warranty and are looking for competent aftermarket workshops.

The biggest challenges for these workshops in a dramatically changing workshop market are to master complex and state of the art
vehicle technology and the fact, that the motorists have a vast choice between many workshops.

The biggest needs for workshops are to build strategic partnerships with winning wholesaler organisations, to join a leading
aftermarket workshop concept, to develop best in class technical competence for all their workshop mechanics and to develop the
absolute understanding for the need of best in class customer care and relationship management for all workshop staff members.

The “brand performance” of a workshop organisation is a result of an outstanding corporate design, highest possible corporate
competence (mainly technical competence) and highest possible corporate “behaviour” (mainly customer care management) at all
times by all members of this workshop concept.

r, Group
Tony Twine, Director Chris KoglleDirector,
Managinnd Sampson
– One
Econometrix Interbra
Man’s Poison ce of
The Importan

T
he world rode a wave of false prosperity for 20
years based on the rise of commodities, equities,
the e-CAR brand
and assets; and everyone felt amazingly rich as Upholding
the banks pumped more money into the system,
where your
and then someone dislodged a card in 2007. d as a fa m ily – this is
your bran
The banks stopped lending, and worst of all, the • Think of
identity sts.
re of choice for
banks stopped lending to each other. The collapse of Lehman
“th e w or ks hop network
ands fo r
Brothers in Sept 2008 brought everything to a head, and fixed • e-CAR st otorist”.
capital formation and sales of durable goods simply hit a brick the ou t of motor plan m
an a logo
wall. The drop in demand for commodities and the contraction much more th
• Brand is mise Kept
of all economic activity exposed the camouflaging of risk, and the ro m ise Made, a Pro ce
• A Brand
is a P ding experien
chickens came home to roost, leaving no one unaffected. at af fe ct the total bran
points th ployees,
The concomitant loss of confidence was exacerbated in the • So many n stit u en ts – investors, em
impacts all co
motor industry, which was also feeling the effects of a fundamen- • A Brand ,
consumers t, evaluation
tal shift vehicle production worldwide, and the move to more
– cr ea tion , managemen
has cycles
environmentally friendly vehicle technology. The result for the • A brand
automotive industry was the tsunami of the century. In South re-evaluation ake a choice
Africa, car sales hit a peak in Oct 2006, then dropped 10% in h elp s th e customer m depart-
• A bran d
t, n ot just a marketing
2007, 25% in 2008, and 25% in 2009. The loss of confidence as se
is a business
was amplified by nervous banks. Paradoxically, all this bad news • A brand
act, build,
is good news for the automotive aftermarket. The meat of the car ment
an d an exp erience – attr
e e-CAR br
parc will move into a lucrative band from 2009 to 2011, and this • Make th
is the opportunity to build customer retention for the slightly capture
romise
your brand p
leaner years from 2012 to 2014. Growth will stabilise in • Live up to
2014/2015, so those who prepare well will benefit from the bulge
and beyond.

December 2009 – January 2010 15

16 December 2009 – January 2010
 Show Time

Sir Tom Farmer joins speakers

at Tyrexpo Africa’10 tyre
industry conference
Sir Tom Farmer CVO CBE KCSG DL, the man credited with revolutionising tyre retail-
ing in the UK, will present a keynote speech at the TyrexpoAfrica industry conference
in Johannesburg next March. Sir Tom, founder and chief executive of the Kwik-Fit
retail empire, is one of the most recognisable names in the global tyre industry. He
founded Kwik-Fit in Scotland in 1971, developing it to become one of the world’s
largest automotive parts repair and replacement specialists, before selling the com-
pany to Ford in 1999.

A
mong many honours, Sir Tom
was awarded the CBE in 1990,
received a Knighthood in 1997
and in the same year was made
a KCSG (Knight Commander with Star
of the Order of St. Gregory the Great). In
2009 he was created a Commander of the
Victorian Order (CVO) in the Queen’s
New Year’s Honours. He now supports a
wide range of charitable and philanthrop-
ic causes while maintaining an interest in
the UK tyre business through his involve-
ment with the Farmer Autocare retail
group in his native Scotland. His presen-
tation to delegates will cover the Kwik-Fit
success story; the challenges facing today’s
tyre retailers and the ‘customer experi-
ence.’ He will also provide an expert
insight into key business areas such as
price discounting, staff motivation and
the added value factor. “Sir Tom Farmer is
universally known and admired for his
stellar achievements with Kwik-Fit so we
regard it as a real coup to have secured his
involvement in the TyrexpoAfrica confer-
ence,” says Rowena Suthers, sales director
with exhibition organiser ECI
International. Sir Tom will join an impres-
sive gathering of speakers
in Johannesburg that includes Georg
Schramm, head of marketing and sales
for Dunlop/Apollo, South Africa;
David Wilson from the UK Retread
Manufacturers Association and Dr
Etienne Human, lead consultant with
South Africa’s National Waste Tyre Project
and CEO SATRP Co.
Further speakers for the one-day confer-
ence on March 5 2010 will be announced
in the coming months. As the conference
continues to build, so does the number
and quality of exhibitors supporting the
event. Leading automotive equipment
manufacturer Robert Bosch & Beissbarth
SA and tyre repair specialist Chemvulc are
among the latest well-known suppliers to
confirm their involvement in the show.
More about TyrexpoAfrica 2010
Delegates can now use online pre-registra-
tion (www.eci-international.com) to guar-
antee fast and hassle-free entry. Exhibition
hours include late night opening on
Friday until 8.00pm, allowing conference
delegates and visitors to attend after busi-
ness hours. The last day of the exhibition
will be a Saturday, offering further incen-
tive for those unable to attend during the
working week.
TyrexpoAfrica 2010 will provide trade vis-
itors with direct access to tyre suppliers
including Stamford, Infinity, BKT,
Tandem, Techking, Tubestone and SA
Tyre Distributors (Federal & Hercules),
while those involved in retreading and
repair will be able to do business with the
likes of Chemvulc, Elgi Rubber Company
and Treadsdirect. Garage and workshop
equipment will be well represented by
suppliers such as Robert Bosch and
Beissbarth, Leaderquip, Hofmann
Megaplan, Rema Tip Top and Steinbichler
Optotechnik.
A full list of exhibitors can be found
on the ECI website at www.eci-inter-
national.com.
The third staging of Tyrexpo Africa
will take place at the Sandton
Convention Centre, Johannesburg
(SCC) on 4, 5 and 6 March 2010.

December 2009 – January 2010 17

 A series of articles on the rise of the Chery automobile

The Toughest Test

South Africa is not for sissies. We are of pioneering stock and we have tamed the land
and tamed the rivers with a fortitude that equals any other endeavour on our
planet. We are tough and expect the same toughness from our means of mobility. It
goes back to the 1800’s when we used oxen and horses to turn South Africa from
a barren hinterland into an agricultural giant, and now in the early part of the
twenty first century we continue the tradition with our mechanical steeds.

J
annie van der Walt is one of the people who uphold
this tradition. Jannie works for OVK (Oos Vrystaat
Kaap Operations Limited), a farming co-operative
that covers a vast track of land encompassing the
Eastern Free State, the Northern Cape and the
Eastern Cape. OVK is in the business of agronomy,
from maize, wheat, sunflowers, dry beans, asparagus,
cherries, fruit and vegetables, through to planted pas-
tures, natural grazing veld, wool/mutton, dairy/beef, horse breed-
ing and ostrich farming. Jannie is based at OVK’s offices in
Hopetown in the Northern Cape, and he lives in van der Kloof,
on the banks of the van der Kloof dam, the second largest dam in
South Africa and one of only two hydro power dams in South
Africa. The van der Kloof dam wall is 108m high, and when full
the dam stretches for over 100 km, holding some 3,2 billion cubic
meters of water. This gives one some perspective of the distances
Jannie has to travel when visiting his clients in the Northern
Cape, and thus he averages a good 5 000 km per month in carry-
ing out his duties as a wheat marketer. With the high price of
petrol, and the rough gravel roads he traverses on a daily basis,
Jannie needs a tough and fuel efficient vehicle. So when his 1400
bakkie gave up the ghost in August 2008, Jannie took a “chance”
on a Chery QQ 0,8 TE, with the knowledge that McCarthy stood
behind this vehicle with warranties and maintenance plans. South
Africa’s lowest priced car seemed to be a good bet for Jannie, so he
took the leap of faith.
The result? A very happy Jannie van der Walt told ABR in the last
week of November 2009 that he has now done 71 000 trouble
free kilometres, achieving a consumption of 23 to 24 km per litre
(4,25 l/100km), and the little warrior handles the gravel roads
with aplomb and exceptional comfort. It has passed the toughest
test with flying colours and he describes this purchase as “one of
the best buys I’ve ever made”. More power to your elbow, Jannie!

A very happy Jannie van der Walt with his Chery QQ 0,8 TE

18 December 2009 – January 2010

 Auto Topical

The 2010 World Cusp

Put together the Author of the Book of Revelation, Scrooge, Milton Friedman, an Astrologer
by Tony Twine and Tony Twine and check your forecasts for 2010
The last book of the Christian Bible, Revelations warns us that, as the end time draws
nigh, we will hear of wars and rumours of wars. In these, the last days of 2009 we are
hearing of economic recoveries and rumours of economic recoveries. Astrologers,
unlike their hopefully more scientific counterparts in economics and weather forecast-
ing, use the term “cusp” to describe a transition or boundary zone between two star
signs or era’s – perhaps it is safer to apply that term to short term economic forecasts
than to call a virile and vibrant recovery for the battered world economy in 2010.

G
lobal markets for equities,
commodities and currencies
outside of the US Dollar all
took heart in November when
the G7 leaders announced that they would
continue to support the fledgling turn-
around of the levels of activity in their
respective economies which had become
visible after the mid-point of 2009, by
continuing to pump cheap credit into
them. Readers of these columns over all
the months that ABR has existed will recall
that money illusion created by cheap cred-
it is held by many to be the cause of, rather
than the solution to the fall-out in finan-
cial markets, the credit squeeze and the
subsequent toppling of real economic
activity levels around the world after 2007.
In looking forward to the year 2010, the
level of confidence with which we enter
the year, must surely be better than it was
12 months earlier. Economists often avoid
talking about confidence within their sce-
nario building rationales, largely because it
is difficult to measure, highly individualis-
tic and difficult to aggregate, and even
more difficult to predict in terms of tip-
ping points or major changes of direction.
Forecasts inevitably assume a flat trajecto-
ry at point of departure levels for the mood
of both suppliers and consumers in a mul-
titude of markets, which is the main reason
that even the most sophisticated of statisti-
cally informed forecast scenarios hardly
ever turn upwards or downwards with the
venom that reality and the wisdom of
hindsight seem to dish up.
Putting this set of ideas together, it certain-
ly appears that global economic fortunes
are in the process of changing for the bet-
ter, but the reason for the change (contin-
uous pump priming of large economies by
easy credit creation), could be the hallmark
of the lack of sustainability of the next
upturn, just as it was the primary cause of
the rise and fall of the economic and busi-
ness cycles the last time around.
2010 is unlikely to be as bad on the mar-
gin as 2009 turned out to be, largely
because the sentiment that sat with us at
the Christmas Dinner table last year is
decidedly more cheerful than it has been
for 18 months or more. This is as true for
the large economies of the world as it is for
us back home in South Africa. This alone
should make both the consumer and busi-
ness sectors of most economies that much
more open to taking risks, even if they are
only relatively modest ones, which will
stimulate both the demand and supply
sides of the global real economy. But
Scrooge’s ghost of Christmas Future
lingers in the wings of this combined bib-
lical and astrological forecast scenario. Just
as Scrooge was promised a grey, nihilistic
future because of his then current behav-
ior, it is difficult to believe that the world
economy can revert to, and then sustain,
sturdy levels of real economic growth by
simply taking more of the same drugs
which got it into the trouble that it was in
between 2007 and 2009. The reliance on
force feeding economies with credit may
literally paper over the widening cracks for
a time, and that time could well extend
throughout and even beyond 2010. But
the forces of economic gravity will
inevitably return if the ever heavier façade
is not supported by a comparable strength-
ening of the steel and concrete structures
papered over by ever increasing amounts of
cheap credit.
Therefore, brethren, let us eat, drink and
be merry this Christmas, and carry our
new restored confidence into 2010, but be
mindful of the growing layers of wallpaper
on the world’s economic walls. If the dead
Presidents depicted on the various denom-
inations of US Dollar Bills are smiling, ask
yourself why they are crossing their fin-
gers? After all, Scrooge’s late partner, Jacob
Marley, is dead. Isn’t he?

20 December 2009 – January 2010

 2009
by Frank Beeton
Frankly

2
– A Watershed Year
Speaking

0
When, at some time in the future, we look back on 2009, it is quite likely that this
year will be recognised as a fairly substantial watershed in the history of the glob-
al motor industry. Although some very important issues, such as the sale of Volvo
Cars by Ford and Volkswagen’s takeover of Porsche, still have to be finalised,
enough has happened already for us to mark 2009 as a year when the
industry changed direction, and after which it was never going to be
the same again.
0 9

A
t the beginning of the year, there
was still no certainty that two of
the world’s largest vehicle manufac-
turers, General Motors and
Chrysler, would survive. It was
only after a great deal of financial
intervention by the US govern-
ment (estimated to be heading
towards the $US 100 billion mark)
that they were able to enter a peri-
od of bankruptcy protection, and re-emerge in considerably
scaled-down forms, to carry on with “business, but not as usual”.
In the process, GM probably gave up any hope of regaining the
position at the top of the global pecking order that it previously
occupied for 77 years, while Chrysler found itself effectively taken
over by Fiat, who had been absent from the US market for a quar-
ter of a century, and was looking for a way back in.
In this process, there were a considerable number of casualties.
These included the closure of more than 20 North American man-
ufacturing plants, the cancellation of more than 4 000 dealer out-
lets, and, in an industry that was already shedding jobs, more than
30 000 additional redundancies. The “Chapter 11” bankruptcy
protection process used by both GM and Chrysler made it legally
possible for them to make these cuts, in spite of previously bind-
ing contracts.
Somewhat perversely, the Ford Motor Company was busy polish-
ing its marble while its compatriots were going through the pain
and humiliation of bankruptcy. Ford had chosen to go it alone,
using “normal” commercial avenues to fund its business and turn-
around plan. It had also woken up to the fact that its overseas sub-
sidiaries were building some outstanding products, with North
American marketing potential. Ford’s avoidance of invoking state
aid was positively received by the very taxpayers who were being
asked to finance GM and Chrysler’s survival. The disposal of
Jaguar/Land Rover, plans to sell Volvo, and the scaling down of
Ford’s long-standing shareholding in Mazda, caused nary a ripple.
The year 2009 will, almost certainly, be the first in which the
United States no longer lays claim to the world’s largest domestic
vehicle market. Indications, at time of writing, are that China will
finish the year with more than 10 million unit sales, while the US
languishes at around the 9 million mark. The US market has now
fallen to just more than half of its all-time record level of 17½ mil-
lion units set in Year 2000, but most analysts believe that Chinese
production and sales volumes will rise to even higher levels during
the next decade.
While all this was going on, we were witnessing the apparent
power struggle between Volkswagen and Porsche. Early in the year,
we envisaged a “minnow-eats-whale” scenario where the relatively
miniscule sports car manufacturer (11 000 employees, 100 000
cars per year) was positioning to take control of the global giant
(300 000 employees, 6 million cars per year). However, after three
years of building up its VW shareholding, Porsche’s plans, togeth-
er with its cash flow, came undone, and by mid year, Volkswagen
was talking “merger”, and Porsche’s role was reduced to becoming
yet another brand in an expanding VW portfolio! The process is
still rolling out, but it now seems inevitable that the absorption of
Porsche will become just another stepping stone on VW’s intend-
ed path to World Number One.
To get there, of course, Volkswagen will need to unseat new
incumbent Toyota, who had, in turn, arrived in that position at
precisely the wrong time! Having assured a skeptical world that it
never intended to get there, the Japanese firm had to admit, among
falling volumes and rapidly disappearing profits, that it had been
executing a world leadership strategy (surprise, surprise) all along,
but would, in future, follow a more prudent course. Does that
mean waving Volkswagen serenely by into first place? Not likely,
Toyota is too proud for that, but methinks that they will both be
confronting threats from Hyundai-Kia, and the larger Chinese
groupings, before too long.
We haven’t even mentioned new technical directions, like plug-in
hybrids and all-electric cars, but the evidence presented above is
enough to support the “watershed 2009” theory. As we approach
2010, there is a general expectation of some improvement in glob-
al car markets, although most forecasts are still fairly conservative.
Vehicle manufacturers will be hoping for considerably less drama
than was the case in 2009, but 2010 could still turn out to be an
“interesting” year.

22 December 2009 – January 2010

 Intelli-Driving
Safe Driving Tips
In this competitive world where margins are being pressed it is important to see where
added value can be introduced, particularly when there is significant expenditure
involved. With that in mind it is important to see how encouraging safe driving prac-
tices makes good business sense. Here are two very good reasons for continuing with
activities that enhance both the qualities of people’s lives and reduce business costs
Helping Your Business
Business has never been more competitive. Margins are being
squeezed and the constant challenge is to drive for better efficien-
cy in all areas of your business. This drive for efficiency means
developing ‘best practices’ and ensuring that you have properly
trained people to implement your strategy. Recently, proper train-
ing of staff has become an increasingly important part of this suc-
cess - and rightly so. Thousands through to millions of Rands are
invested in equipment and processes which need to be protected
by the provision of adequate training. Nowhere is this truer than
in the use of company vehicles. A very significant amount of cap-
ital is invested in the company fleet – whether they are cars main-
ly used privately or commercial vehicles. Yet teaching people how
to drive is an often neglected part of the process. Why? Because it
is assumed that if someone has a licence that they “know how to
drive”. Unfortunately not everyone can drive well.
Road Safety for Your Staff
Here are a few reasons that you should have a planned driver
training program in place to protect your staff:
• Your staff should be provided with a safe workplace, this
includes their travel to and from work.
• A vehicle used for work purposes can be classed as a workplace
and should have the same level of safety and training provid-
ed as per an office, workshop or building site.
• Vehicles with corporate signage are a billboard of your brand.
It is important that driver behaviour is of an appropriate stan-
dard if driving a sign written vehicle or a driver’s action could
reflect poorly on your business.
• Staff who participate in a Drive to Survive defensive driving
course will learn life skills beyond that of their workplace,
helping them to keep their family and friends safe on the
roads also.
• Staff feel rewarded by employers who provide driver training
as it is more than the usual ‘training’ courses normally associ-
ated with a workplace (i.e., computer training, systems train-
ing, etc).
Navigate your way out of
trouble
We often take for granted the things we need to do which will
ensure our safety while on the road. With that in mind we
thought it prudent to share a tip which could prevent the driver
from becoming a road victim. Obviously, initially we would rec-
ommend that everyone driving a fleet vehicle is properly trained
so book them all onto our Drive to Survive defensive driving
24
by Eugene Herbert
course before handing over the keys but an issue for fleets that has
become more relevant nowadays is the use of satellite navigation
systems, usually suctioned onto the windscreen. Two problems
exist with these sat-nav systems; one is that the positioning of the
sat-nav on the windscreen is often detrimental to the view of the
road and surrounding area and the second issue is that thieves see
either the system still plugged to the windscreen or the suction
cup mark on the windscreen and will target the vehicle for a
smash and grab (they know that even when a sat-nav is not in its
cradle on the windscreen most people leave them ‘hidden’ in the
console). These problems can be avoided in one of two ways,
select sat-nav as a fitted option at time of vehicle purchase or have
your fleet drivers place the sat-nav in a position out of sight of
thieves which will also usually move the unit away from obscur-
ing vision out of the windscreen.
Teen Tips
As you may recall we recently launched a website dedicated to
teen driving -www.teendriving.co.za. It has been gratifying to see
that some parents have acted on our suggestions for a Teen/Parent
Contract. The wisdom of having some level of accountability is
highlighted in the following article from a US Blog. For those
who haven’t visited the website please do so as it is really practi-
cal and it contains some interesting features which will facilitate
learning some good driving disciplines. Amongst others there are:
• SAFED – an interactive program
• The anatomy of a Teen Car Crash &
• A reaction test for driving and texting
Remember our teens are our leaders of tomorrow – we don’t want
them disabled or worse still DEAD. A recent American survey
released has shown the role parents can play to ensure their
teenagers are safe when driving on the road. According to the sur-
vey done by the Children's Hospital of Philadelphia, 25% of teen
drivers who either own cars or have free use of one were involved
in crashes. Those who have to ask for permission to use a car have
far fewer accidents. Parents know when their children get behind
the wheel that is risk involved. "The moment they get into that
car and leave, I'm a nervous wreck because they're first time driv-
ers," said Charlene Anderson. Not surprisingly, teenagers have a
different view. "It gives a sense of freedom to teenagers and it
makes them feel older," said 16-year-old Marissa Dutra. "You feel
you don't have to rely on your parents to go anywhere you want."
Traffic crashes are the number one cause of death for U.S.
teenagers with about 5,000 a year. Other highlights of the survey:
Teenagers who have clear rules set by their parents had fewer acci-
dents and parents who are actively involved in setting those rules
cut the risk of drinking and driving by 70%.
December 2009 – January 2010
 Tony’s Take

King II est mort,

by Tony Twine,
Senior Economist,
Director –
vive King III!
In the grand tradition of Royal succession, the King Committee pub-
Econometrix (Pty)
Ltd lished its third report on Corporate Governance in South Africa on
1 September 2009. There is little doubt that its recommendations will
be pursued by companies throughout the South African Economy during 2010, if they
have not begun the process already. Better, more effective governance inevitably
places greater loads on executive and non-executive directors of enterprises. Here
follows an imagined set of notes from the laptop of an equally fictitious director of
a motor sector company, making the transition towards some of the provisions of King
III at a last imagined board meeting at the end of 2009.

Recent U-turns to be monitored: Motor Industry

• Education policy
• HIV Aids policy
• Arms procurement policy
• Principle of equal force when used by
police
• Free floating exchange rate
• Labour broking
• Deployment of inadequately skilled
comrades to key positions
• Helen Zille’s list of 700 laws / legisla-
tions hampering growth and employ-
ment
Government Relations
• Must contact Min. Gordhan before
Budget on 17th February 2010 to find
out the maximum number of cars that
can be bought with 70% of a cabinet
ministers annual salary
• Remember not to confuse Gill Marcus
at SARB with the other GM when
sending out correspondence
• UK Elections: post early sympathy
card to Gordon Brown, in case Royal
Mail is on strike!
• School holidays 2010 – to be made
continuous with SADTU strike days
and consolidated days absent by
Teachers – no school possible after
24th March.
• Ask Julius what the Venda word for
hetero co-stochasticity is. If there isn’t
one, we can stop worrying about it!
• See if we can get a James Bond Aston
Martin for Mo Shaik (Double-O-Mo,
or did M also stand for MO) as new
head of the Secret Service.
• Play down the heads up by Zapiro
regarding Presidential plumbing.
Energy
• Alternate fuel program – must get hold
of Renegade Oil Minister Ethel al
Kohol to discuss prospects
• Electricity supply – find out who’s the
boss!
• Spotlights for Soccer Field – why is
output measured in candle power?
Soccer World Cup
• SWC 2010 – how many Ivorian ele-
phants can we get into a Mini Cooper?
• Must fast-track plan to dispose of all
the rental vehicles after SWC tourna-
ments
• Zimbabwe political solution – see note
on rental cars above
• Check fixed armament on BRT vehi-
cles.
• APDP – set up committee to review
details next December, if there are any
• Buy rights from US Military to build
civilian version of Abrahams Battle
Tank
• Energy conservation – no more electric
seats, windows, windscreen wipers or
washers and reduce power of head-
lights, tail lights and break lights. Our
indicator lights have been optional for
years!
Sponsorships
• Sport Sponsorship – which is fastest:
Cheetah? Shark? Bull holding its
breath?
• Formula 1 sponsorship – are we still on
the Button?
Treasury matters
• Solution to cash-flow matter to end of
financial year: In February, all compa-
ny Visa credit card accounts for
January to be paid with company
Master Cards, in March all Master
Cards to be paid with Amex Cards,
and April it is the new financial year.
Useful topics for Dinner Table Chat:
• De-ja-moo, which is the feeling that
you have heard this bull before!
• Sick notes signed by Schabir Shaik’s
Doctor
• Judge Motata’s school of judicious
driving

40 December 2009 – January 2010

 weighty
by Frank Beeton
The Hope Fades...
Back in the August issue, you would have caught us singing the praises of South
Africa’s newly-appointed Transport Minister, Sibusiso Ndebele, and his Deputy,
Jeremy Cronin. The cause of our celebration was an apparent appetite to take on the
minibus taxi “industry”, and ensure that Bus Rapid Transit actually got off the
ground to provide a real public transport service to South Africa’s long-suffering
commuters ahead of next year’s Soccer World Cup. Subsequent events seem to have
confirmed this direction, and the relatively peaceful inauguration of Johannesburg’s
Rea Vaya system is a tribute to the steadfastness of the new management team at the
national Department of Transport.
H
owever, subsequent
events have caused
us to put our
celebrations on hold.
In October, the
Department of Trans-
port sent a letter to transport stakeholders
advising of a strategy proposal that will
reduce the maximum permitted axle mass-
load of trucks on secondary roads from 9
000 kg to 8 000 kg, and designate certain
commodities which, in future, would be
banned from road transport. It is necessary
to state, at the outset, that more detail
relating to the definition of a “secondary
road”, or identification of the commodities
that would, perforce, be moved to rail
transport, is unavailable, so the following
comments must be seen as a broad
response to a particularly vague proposal.
In fact, we had rather hoped that this kind
of vague reasoning had disappeared from
the Department of Transport, together
with the past incumbents of its Ministry.
Even the most cursory consideration of the
possible outcomes, however, would identi-
fy certain obstacles which the implementa-
tion of such a strategy would encounter.
Consider the following:
• How many truck journeys are solely
confined to “primary roads”? The exis-
tence of differentiated axle limits for
specific road classes will provide trans-
port operators, drivers, and, not least
of all, the law enforcement authorities
with a nightmare scenario. They are all
having enough trouble with the pres-
ent, unified, legislation, now we pro-
pose to make it more difficult for
them.
42
issues
• The rural road infrastructure that the infrastructure conservation. As in so many
DoT is aiming to protect is largely other cases, the government is, once again,
devoid of permanent weighbridges. exhibiting a propensity to change legisla-
How will the enforcement authorities tion, rather than effectively enforce what is
enforce axle load legislation on these perfectly adequate and already on the
roads without them? statute books. It hasn’t worked before, and
• Lower axle limits = less payload. Less it won’t work this time.
payload, if you want to deliver the
same tonnage of coal to the power sta- As far as Transnet Freight Rail is con-
tions = numerically more truck(load)s. cerned, it’s all about management. This
How does this help to reduce wear and parastatal must realise that it needs to be a
tear on the roads? provider of transport solutions, not just an
operator of trains. There is an excellent
• Transnet Freight Rail (think of it as the
national case for moving goods from road
successor to the good old SAR) has
to rail, but this must be achieved through
experienced considerable difficulty in
the provision of time/cost/security bene-
satisfying its customers on the dedicat-
fits. Once shippers become convinced that
ed one-product lines running into
rail is the most cost-effective solution to
Richards Bay and Saldanha (these are
their transport needs, it will not be neces-
really dream operating scenarios for
sary to bring about modal shift through
any rail operator). Transnet’s ability to
legislation. There is no evidence that the
provide satisfactory levels of
huge swing to long distance road trans-
time/cost/security efficient services on
port, since deregulation in the 1990’s, has
general freight haulage between ports
come about because people like trucks, in
and the interior has been in question
fact there is considerable public agitation
for some time. Any reduction in the
in favour of banning trucks from busy
level of service currently provided by
roads at peak traffic times. The simple fact
road haulage, if and when designated
is that road transport has helped the
goods are diverted through legislation
national economy to grow, whereas com-
on to rail, will, inevitably, result in
pulsory use of the eroding rail system
lower levels of National productivity.
would, surely, have applied the brakes.
No, Minister Ndebele, this is not the way
Much of the strategic thinking that has
to solve the problem. The real solution lies
emerged in DoT policy documents since
in regular, quality road maintenance, and
1994 is quaintly socio-political, and not
effective, consistent, and honest law
reflective of the realities of business in
enforcement. Yes, the rural roads have
modern South Africa. What South Africa
been abused, but reducing legal axle limits
needs now, more than ever, is pragmatic
will only increase the margin of abuse, not
policy making, to produce the most desir-
its frequency. Road transport legislation is
able outcomes for the country. Minister
already complex, and making it more so
Ndebele, please don’t spoil the party so
will not bring about a quantum leap in
early in your term of office!
December 2009 – January 2010
 Top Class Topics

Working Hands
Aren’t Always
at Work...
Waterless Hand Cleaners for Working Hands
Since 1909, quality Permatex® products have been used in workshops,
garages, and at racetracks around the world. Behind these products
is the understanding that the automotive technician’s needs is
Permatex’s primary concern. Innovation through research and
development is a Permatex hallmark, and hand cleaners, whilst
being considered a “soft” product, is one of the areas within which
Permatex excels.

P
ermatex’s fast selling Fast Orange® line features a broad selection of formulas and sizes
for removing the most difficult dirt, and they’ve been doing it for over 50 years, and
have become in America the hand cleaner of choice for the hard working technician.
Wherever hands are getting seriously dirty, there’s a place for Fast Orange, because the
hard working technician needs clean hands to do other daily chores, and he needs a
waterless hand cleaner that really cleans – without turning his hands into sandpaper.
He needs the strength to remove grease, grime, paint, adhesives and all other dirt his working
hands get into, plus conditioners to prevent cracking and drying out. In South Africa, Top Class
Automotive focuses on the Permatex Fast Orange Smooth Cream Hand Cleaner, available in a 14
oz. plastic tub, and a 4.5 lb. container (product codes 33013 and 33406); and the Permatex Fast
Orange Pumice Lotion Hand Cleaner, available in a 15 fl. oz. bottle, a 15 fl. oz Brush-Up® bot-
tle with nail brush, a half gallon bottle with pump bottle, and a one gallon bottle with pump
(refs. 25116, 25113, 25217 and 25218).
Note: one fluid ounce = 29,57 millilitres,
one gallon = 3,785 litres,
one oz. = 28,35 grams,
and one lb. = 0,454 kg.

TopClass MD,
Richard Pinnard

50 December 2009 – January 2010

 health care

An update on Moto Health Care

In last month’s edition I covered the amendments to the current
benefits that will be implemented in 2010 for the Optimum,
Classic, and Hospicare options. I also undertook to deal with
the Custom and Essential options in this edition. So here goes.

Custom. This option is targeted at income earners who are look-
ing for cost effective access to affordable private hospital cover as
well as comprehensive primary care benefits. A preferred provider
network basis for primary care has been used to maintain afford-
ability. The benefit adjustments for 2010 have been based on
feedback received from members during 2009 and include:
• A comprehensive HIV benefit
• The addition of a chronic medication benefit covering the
Chronic Disease List conditions through Chronicare as the
preferred DSP. This is a capitated benefit and it does not
include the treatment plans.
• An out of hospital specialist benefit of R2 500 per beneficiary
and R5 000 per family subject to pre-authorisation and use of
a DSP provider.
• A denture benefit per adult beneficiary.
• An emergency transport benefit.
Essential. The Essential option offers only primary care benefits
but at a comprehensive level through a preferred provider network
to maintain affordability. This option is targeted at those income
earners who are not able to afford a more comprehensive benefit
offering but without compromising on their emergency or pri-
mary healthcare needs. For 2010 it is proposed that new members
need to have an income of less than R3 500 in order to be eligi-
ble to join Essential. The other benefit improvements are:
• An emergency stabilisation benefit in private hospitals (this
benefit is restricted to events threatening loss of life or limb
only )
• A public hospital benefit limited to R50 000 per family per
annum .
MHC’s 2010 Budget. The financial projections for 2010 are as
follows:
The above financial performance
will sustain the fund’s solvency
ratio at 31, 6%, well above the
minimum ratio of 25% set by the
Council for Medical Schemes, and
satisfies the principle that a
breakeven financial result be target-
ed. However, please bear in mind
that in determining the projections
certain assumptions are made and
historical data is used, such as the
membership numbers at certain Barry Canning, Chairman
dates. Any material deviations Board of Trustees - MOTO
Health Care
from these could have a significant
impact on the projected results one way or the other.
In the November article I alluded to the road show that was being
planned to introduce the new benefits to stake holders. This has
since taken place and I am pleased to report that feedback indi-
cates that the new benefits for 2010 were well received, particular-
ly the Classic option’s savings plan. Here is further clarity on the
mechanics of the savings plan:
• 22% of the contribution will be allocated to the savings. This
is in line with the requirements of the Medical Schemes Act.
• A sum equal to a full year’s savings will be available for claim
payments in the first month, pro-rated if a member joins dur-
ing the fund year.
• Should a member terminate membership and a shortfall exists
between claims paid and the amount saved, the scheme
reserves the right to recover such shortfall from the member.
• Any savings accrued at the date of termination of membership
will be refunded within four months of termination date, but
the scheme may offset any debt owed to the fund against such
savings, e.g. outstanding contributions.

Gross contributions R983,333,000 • No interest will be paid or charged on the savings account.
Net risk contributions R856,037,000 Finally, a summary of benefits for 2010 and an option selection
form have been sent to all members. I urge all members to care-
Net relevant healthcare expenditure R767,215,000 fully consider their healthcare needs for next year and to select the
Gross healthcare result R 88,822,000 most appropriate option. Even if a member elects to remain on
the same option he/she is still required to complete the form to
Admin expenditure R 85,245,000
enable the administrator to verify and update each member’s
details on the data base. In the event some members missed the
Managed Care R 20,468,000 deadline of 30 November, 2009, for the submission of the option
Net healthcare result (R 16,891,000) selection form, I urge them not to leave it but still to submit it
Investment income R 23,743,000 without further delay.
Net surplus R 6,852,000

52 December 2009 – January 2010

 Commercial
Peugeot introduces the Tepee to
the South African Market
The 2010 World Cup is almost upon us, and the hospitality industry will soon be mak-
ing demands on vehicle manufacturers to deliver people movers with class and
panache. With this in mind, Peugeot Motors South Africa has introduced the Tepee, a
generously equipped eight-seater which also won’t go unnoticed by families who want
an enticing mix of space, comfort and safety.
P
eugeot Motors SA says in its press release that
life is too short to drink instant coffee; life is
too short to drink blended whisky, and not too
short for single malts. It adds that people are
meant to travel in style, even if they travel en
mass. That’s why they’ve introduced the Tepee
to the local market. The Tepee shares chassis
fundamentals with the acclaimed Expert van
range, making it eminently suited to an application where it may
be required to spend many hours on the road everyday, much of
that time with a substantial cargo of passengers and their luggage.
In essence, the Tepee represents a new way of travelling thanks to
its bold design, car-like dynamics, and an exceptionally spacious
and comfortable cabin which can quickly and easily be configured
to carry between two and eight occupants. And with Peugeot’s
leadership in the turbo diesel field with their HDi engine range,
the Tepee’s power plant is ideally suited for its function. Under the
stubby bonnet is a willing and able version of the company’s direct
injection, common-rail 2,0-litre HDi, rated at 88 kW at 4 000
rpm and 300 Nm at just 2 000 rpm – this high torque output at
a low speed makes it ideal for carrying heavy loads at low engine
speeds. When mated to the light-shifting ML6C six-speed box its
breadth of capability is enhanced further, giving it a combination
of lugging power and open road cruising ability which is hard to
match. The engine meets Euro 4 emission standards and emits
just 198 grams of CO2 per kilometre. This translates into fuel
consumption of just 7,5 litres per 100 km in the Combined cycle,
dropping down to 6,5 on the open road. With an 80 litre fuel
tank, operators will waste little time at the fuel pumps and
because it is so clean-burning, oil changes are required only
every 30 000 km.
58
Vehicle News
Speed-sensitive electro-hydraulic steering and the combination of
MacPherson struts with a coil-sprung torsion beam axle at the
rear ensures ride comfort for all three rows, and a cabin designed
by Pininfarina meets the driver’s needs in terms of comfort and
convenience, further attended to by a height-adjustable seat with
lumbar support and a steering column which adjusts in vertical
and horizontal planes. All doors lock automatically once under-
way and cruise control is just the press of a button away to reduce
the driver’s workload once on the freeway. The front passenger
also gets an individual seat, which like the driver’s, has a fold-
down armrest. Passengers are able to dictate their own heating and
cooling requirements thanks to separate air conditioning controls,
while there are sliding windows for those in the second row, and
hinged rear quarter lights for those even further back. All of this
results in an open and airy ambience, conducive to a pleasant
motoring experience. Access to the second and third rows is via a
sliding door on each side of the vehicle, with a tilt/fold mecha-
nism for the 60:40 split ensuring easy access to the third row from
either side.
The Tepee is a first-class people carrier and because people invari-
ably come with luggage, there’s plenty of space for that. There is
761 litres of storage space when loaded to window level and a
giant 1 195 litres up to the roof. And that’s before a single seat has
been removed. In addition to a high level of dynamic ability from
a chassis which behaves with decorum seldom associated with
people-carriers, the Tepee benefits from Peugeot’s deep-seated
belief in occupant safety as a core of vehicle design. The Tepee
model sold in South Africa also has driver and passenger airbags
and disc brakes all round enhanced by anti-lock and electronic
pressure distribution systems.
December 2009 – January 2010
 Commercial Vehicle News

Peugeot Increases its Commercial Vehicle

Expertise Footprint in South Africa
During the Peugeot Tepee Launch in Gauteng on 6th November 2009, it was revealed
that PSA (Peugeot and Citroen) is the leading commercial vehicle manufacturer in
Europe, and that PSA had a remarkable LCV market share of 22%. This is a startling
statistic, compared to the South African scenario. Granted, South Africa’s LCV
profile is dramatically different to Europe, but it was instructive to learn that in the
fussy and demanding European market, PSA rules the roost.

W
ith this in mind, and
in the knowledge that
Peugeot has what it
takes, Peugeot Motors
South Africa has dra-
matically increased the appeal of its light
commercial vehicle range, by equipping
and up-skilling four dealerships to cope
specifically with the needs of the business
user and fleet operators, and with the
intention for “the lions to take control of
the concrete jungle”. Dubbed Light
Commercial Vehicle Centres, these out-
lets, as well as continuing to sell passenger
vehicles, will direct additional focus
towards the Partner, Expert and Boxer
lines. This will give the market access to
one of the most modern and competitive-
ly-priced ranges of vans in the country,
with a size and load capacity to suit the
vast majority of users. Situated at key Anthony Olivier, General Manager - Sales, and Jean Francois Bacos, Peugeot Motors
points around the country (East London, South Africa’s Managing Director, are confident that they have the winning combination
of vans and people carriers
Tyger Valley, Pinetown, Woodmead and
Isando) these outlets will be staffed with
specially trained sales and service person-
nel and will be equipped with the neces- tures such as the low floor of a Peugeot tools to enable them to service and main-
sary infrastructure to maintain and sup- van ensures minimal dynamic penalty tain these models. Light Commercial
port this kind of vehicle. However, com- when laden. We have also accelerated Vehicle Centres will also have access to a
mercial vehicles, including the recently- technical training at these outlets and dedicated parts contact at Peugeot head
launched Expert Tepee eight-seater bus, showroom and workshop staff have been office in Johannesburg for speedy ordering
can be sold by any of the 26 Peugeot fran- given the necessary skills, with the key and delivery of parts. As well as keeping
chises across Southern Africa though not objective being to ensure minimal down- an inventory of fast-moving items (which
all as yet have the infrastructure and staff time for the end user in the event of the will be constantly monitored and meas-
to provide the tailored aftermarket sup- vehicle needing servicing or repairs. Each ured to see how these patterns change),
port. More dealers will qualify as LCV dealership is obliged to meet high stan- breakdown parts not on this fast-moving
outlets over time with the objective of dards in terms of training, and commer- list will be delivered overnight. “There is
making it possible to meet customer needs cial vehicle experts have worked with sales huge room for growth at this end of the
anywhere where there is a ‘Blue Box’. “A staff to ensure they understand the specif- market and as the end-user becomes more
van has become a far more practical and ic needs of the commercial vehicle buyer. mature, the advantages of a van-based
intelligent method of carrying a large load This includes gaining knowledge on solution to transportation needs is becom-
in a secure environment, protected from aspects such as the legislation pertaining ing more apparent,” says Bacos. “These
the elements and secured in a safe man- specifically to loading a vehicle, as well as outlets will enable us to better meet the
ner,” says Jean Francois Bacos, Peugeot the necessary technical knowledge to needs of existing Peugeot commercial
Motors South Africa’s Managing Director. enable them to make informed decisions vehicle owners and give prospective buyers
“Cargo is extremely valuable and an on aspects such as how gearing, torque, another compelling reason to buy
enclosed vehicle increases the chances of it load and road gradient affect a vehicle’s Europe’s leading LCV”.
getting to its destination safely. This also suitability for a specific task.” Each outlet
extends to the dynamic ability and fea- has also invested in equipment and special
December 2009 – January 2010 59
 Commercial Vehicle News
BOXER
The Boxer heralded the start of Peugeot’s assault on the local
van market and in 2002. A former European Van of the
Year, it remains the lynchpin of the brand’s commercial
vehicle line-up, with two wheelbase choices and high and
low roof heights for a total of five van derivatives, as well as
chassis/cab configurations with long and short wheelbases.
Two HDi turbo diesel engine capacities – 2,2 and 3,0-litre -
are available; the smaller rated at 88 kW/320 Nm while the
larger one has an impressive 116 kW and 400 Nm. All
Boxers have a height-adjustable steering column and a four-
way adjustable driver’s seat. The electronic instrument clus-
ter wouldn’t look out of place in a Peugeot passenger vehicle
and the large, clearly-marked gauges have plenty of class.
Every aspect of the cabin layout and design was shaped by
one consideration: minimising the driver’s load. Therefore
convenience features include a removable clipboard, an A4
storage compartment, mobile phone holder, ashtray with
cigarette lighter, and a 12 Volt power point. There is plenty
of additional oddment space in the doors too.

PARTNER
The Partner, released locally
just over a year ago, is already
making an impact in the way
it provides an affordable,
secure and practical solution
to mobility needs in a compact
package. Internationally, near-
ly 1,5-million Partners have
been sold since 1996 in a seg-
ment which continues to
grow. The Partner is available
with either a 1.6-litre HDI or
a 1.6-litre petrol power plant,
and is capable of carrying a 3.3
cubic metre volume and a pay-
load of 850 kilograms. EXPERT
Significantly, the width
Spending all day behind the wheel of a van loaded with a valuable cargo can be a tiring business,
between wheel arches is suffi-
which is why Peugeot chose Pininfarina to design the Expert’s cabin with minimal driver fatigue
cient to accommodate a stan-
as a prerequisite. Features include a height and reach adjustable steering column, a gearlever which
dard Euro pallet, which meas-
sprouts from the centre console (and is therefore just a hand-span from the rim of the steering
ures 1,2 by 0,8 metres. With a
wheel), and a massive windscreen with a glass area of 1,68 m 2 to provide a
wheelbase of 2 728 mm, the
commanding view of the road. The Expert is an excep-
Partner can comfortably swal-
tionally distinctive vehicle, but the styling
low two of these. Designed by
isn’t just about getting noticed. With its
professionals for professionals,
steeply-raked windscreen and tight-fitting
one of the new Partner’s key
curves it has a wind-cheating shape, and
features is the Multi-Flex
when coupled to an efficient 2,0-litre HDi
bench seat, which means it can
turbo diesel ensures low fuel consumption
legally carry three occupants.
and emissions. Expect fuel consumption in
Its modular design incorpo-
the region of 7.2 litres/100 km in the
rates a fold-flat outer seat
European Union combined cycle and just
enabling Partner’s interior to
194 grams of carbon dioxide emitted per kilo-
be quickly reconfigured to
metre from the 88 kW/300 Nm power unit. A
carry a load length of three
six-speed gearbox results in it being exception-
metres. In addition, the back-
ally frugal when cruising, as well as providing a
rest of the centre seat can be el
spread of ratios which enable it to cope easily in for, so trav
folded forward to act as a e also bee n catered
y ha v
stop-start conditions when fully laden. xi fraternit in style, folks!!!!
handy work surface. And the ta
60
 and Their

by Marcus Haw
Tyres Contribution to
Safety in Motoring
As we approach the festive season our nerves become overactive.
Especially on the roads! Our roads seem to have a large percentage
of bad drivers on them all year. But at this time of the year they seem
to double in numbers and the stress of the year; the increase in alco-
hol freely handed around at Christmas parties etc, doubles the
mayhem, not the numbers. What ever the reasons, it seems the road
user behavior gets worse.
This is tragic for the country, horrific for and safely. As road users alone we have their tyres from irresponsible traders? It is
the families involved and extremely costly the right, but we would be remiss if we scary. We have actually seen a guy with an
in all ways. didn’t connect the dots with our road ML350 parked at one of these traders
safety inter-ests. while they fitted tyres to his trailer.
For the fleet owner, the cost implications Believe it, people behave strangely. And
can be catastrophic, and as mentioned in The problem does not lie with fleet con- they still don’t see tyres as the safety criti-
the previous issue, planning for the fu- trollers alone. The problem lies with the cal items they are. So you see, while the
ture can reduce incidences of disaster to a culture we have all developed. A culture blame for all the idiocy, madness and
large extent. Very few if any fleet con- of a lack of care; a lack of consideration recklessness, we face on our roads does
trollers or private users take the season for others and a total lack of respect for not lie solely with the fleet owners/con-
seriously enough to bother. We can’t real- the law. And the worst is that it is a cul- trollers, we have to look at one fact very
ly expect it when the deaths on the roads ture that is growing. Witness how stop seriously. Around 60-70% of the cars on
each year affect the road users themselves street signs have all become yield signs. the road are fleet owned. Probably a sim-
so little that they don’t even try to change When last did you see someone take any ilar amount of the bakkies on the road are
their habits. notice of the or-ange light on a robot? fleet owned and the great majority of
They used to mean CAUTION, slow HCV vehicles are fleet owned. These are
So we have a situation where the very down a red light is about to come on. not verified figures but can’t be too far off,
people who own and control the highest Now they seem to mean “hit the loud and the fact we have to face is that there-
percentage of vehicles on the roads be- pedal” and get through the red light fore a very large percentage of responsibil-
come those who take no responsibility for before the other traffic starts moving. ity for the way they are used rests with the
any of the actions which add to the sce- fleet owners and controllers. And if they
narios which lead to the “Season of Witness too, while sitting in a traffic are not taking the necessary care of their
Death”. snarl-up on a highway, how many people tyres, you can put your years salary on the
fly past you in the emergency lane. What fact that they are not looking at other fac-
You want to read some interesting facts has happened to us? Eve-ryone we speak tors either. Road safety rests with each
about tyres, how to get better life out of to agrees that we should consider revok- and every one of us who use the roads. It’s
them and how to save money with them. ing licenses. not up to the ‘others’. It’s up to us.
You should have a responsibility, making
sure that the vehicles are used in the cor- The point is that road laws appear to be a Placing a “How am I Driving” sticker on
rect and respon-sible way. However, at thing of the past. And those who like to the rear of your vehicle doesn’t take care
this time of the year so many fleet owners blame others but themselves need to look of your corporate responsibility.
don’t see to any of these key aspects. again. The culture is growing! And while
we hear all the platitudes of how policing Your corporate responsibility should
We are also road users, and we have spent is going to be improved, the question has include the highest standards of vehicle
a lot of time and effort on trying to get to be asked; WHEN?? Our roads are a maintenance. It should include the high-
the road safety message across to you all. nightmare and tyres are a part of it all. est standard of driver training, and the
We do it through showing tyres as the Have you noticed the growth in roadside highest penalties for drivers transgressing
safety critical items they are, and by tyre dealers? Have you noticed that more road laws. It should include leading by
showing you how to use them correctly and more road users are actually buying example, and the top company people

62
should be the first to attend advanced
driving courses, proudly displaying their
certificates in the reception areas. Their
vehicles should be in immaculate condi-
tion at all times and be exceptionally
clean. And their tyres should be of the
finest quality, in the best condition.
The fleet vehicles should become industry
leaders in appearance and quality of
workmanship and maintenance. How
many of you are taking your responsibili-
ties seriously? How many of you care
enough to take the steps mentioned
above?
If the surveys we have recently been
involved with, all of which have been fleet
related, then none of you are.
The tyres which have been checked in
these surveys have been remarkable in
two main ways. One is that that the infla-
tion pressures were not as bad as we had
expected them to be. In fact we found a
bigger percentage of overinflated tyres
than under. Very unusual! The second
remarkable fact was the amount of tyres
with extremely low remaining tread
depths. It is most likely a sign of the eco-
nomic panic, but it is a very frightening
situation. If the tyres on fleet vehicles are
being allowed to run with dangerously
shallow tread, at the start of the rainy sea-
son and the start of the holiday period,
there is a serious lack of responsibility
One last thought. How many of you
within the minds of those in control of
have arranged transport for your staff
those fleets. Only six fleets were involved,
to get their inebriated souls safely
so no-one is suggesting that this is a coun-
home after the imminent parties?
try wide phenomenon but it remains a
Those that have, well done, but please
major worry.
check the tyres on those vehicles
How many fleet vehicles are in this con- before you load your staff in them.
dition? How many fleet controllers are
taking chances like this to get their budg-
ets looking better?
Tyres are a wonderful indicator of the
true overall condition of a fleet. If the
tyres are not being looked after, you can
lay big odds that the brakes are not being
looked at, service intervals have been Have a wonderful Christmas
lengthened and general maintenance has
become low priority.
and a safe and restful getaway.
Let’s all look forward to a year
The fleets we have recently checked were
not impressed with our reports, and any of recovery and prosperity.
future dealings with them are seriously in
doubt. Road safety is a serious matter, Think Safety and Drive Safe.
and anyone stupid enough to play with it
should be arrested for attempted murder.
This is not an exaggeration, because peo-
ple will die on our roads this festive sea-
son, and you as fleet people can increase
these deaths, or you can reduce them.
This is a fact. We are all responsible, but
you have more vehicles in your control, so
your responsibility is greater.
www.bridgestone.co.za
63
 Personal profile

Q&A INTERVIEW WITH

DAVE POWELS
by Roger McCleery
MD OF VWSA
South Africa has produced great motor men over the
years. Whether they be local or foreigners, they have
led some of the biggest motor companies in the world with
distinction. The two biggest motor companies in South
Africa are Toyota and VWSA both run by top young South
Africans. One of these is Dave Powels, the MD of
Volkswagen, who has been in the firing line in the motor
business for the last twenty years – here and overseas.

When did you join VWSA?
In 1989 when I was 27. I was appointed as
a Supervisor in the Tax Accounting
Department before moving into Purchasing
Logistics, which is the heart of any assembly
plant. In my third year I was given the job
of managing the Export Department at a
time when we were only exporting compo-
nents abroad but with bigger plans to export
complete cars in the future. In a competitive
market it was important to keep our cus-
tomers overseas happy with the correct parts
and proper packing.
When did you start exporting cars?
In the early 90’s we received big orders from
an emerging market in China for the A2
Jetta, which was a defining moment for us at
VWSA. From then it was travelling all over
the world looking for customers to supply
components and cars to. By then I was the
GM of Finance Controlling which is a vital
part of this business. I did this for three
years.
ter, Rebecca (8), born in Port El.izabeth,
speaks fluent Portuguese, as does Rachel (5),
who was born there and has a totally
Brazilian attitude to life.
Big things happened in Brazil during
the five years you were there?
I was Vice-President responsible for
Financial Services and Corporate Strategy as
VW in Brazil was big into car and compo-
nent exports and getting into trucks as well.
This was challenging in 2002. I timed it
right once again. Brazil was going through a
currency collapse.
Going into 2007?
I was sent back to South Africa as MD of
VWSA Group responsible for Volkswagen,
Audi and Commercials. Guess what? More
challenges in South Africa as the country
was going through a currency collapse as
well.
Policy of VW in South Africa in the
future?
Where did you grow up and go to
school?
I was born in P.E. and went to school at
Marist Brothers and then UPE. From my
school days I always wanted to be a
Chartered Accountant like my father. After
qualifying I went to Deloittes for a while
and then wanted to go into banking.
Before making up my mind on this, I decid-
ed on a more exciting future, something
which was more global.
Sports you like?
Number 1 is rugby. Coming from PE I have
done the lot. Swimming, wind-surfing,
water-skiing, athletics and cricket. I go to
gym three to four times week.

Did you stay in South Africa? Volkswagen has been in South Africa for 58 Mentors in your career?

No. I was called to Head Office in
Wolfsburg to work in the Finance
Department for a few years and then down
to Audi’s Head Office at Inglostadt where I
worked for the company’s Finance Director.
Do you speak German?
I learned German there as did my wife,
Kathi and my son, Christopher, now 13,
who was born in Germany.
After all that experience in Germany?
Then it was back to South Africa as
Financial Director at VWSA. This was at a
time when the country was starting to go
through an economic decline so the job was
just that bit more difficult. I did this until
I was offered another position abroad again.
Where did you move the family to this
time?
To Sao Paulo in Brazil, which is the heart of
the motor industry in South America.
What language did you speak?
Portuguese. So did the family. My daugh-
years. We are dominant in the passenger car
market and we mean to continue.
Commercials will be a big part of our strat-
egy. Now that the market is so open it brings
big pressures. Priorities are to be competi-
tive cost-wise and of course, quality, which is
a given and which is ongoing. Exports are an
essential part of any vehicle plant in South
Africa. We have exported cars and compo-
nents since 1991. First was the A2 Jetta,
followed by the Golf 4 and the Golf 5, the
Polo and the Jetta 5. More local content in
our product is a must otherwise why have a
car plant in South Africa. We have intro-
duced new models in 2009 and will contin-
ue to do so. A one-ton pick-up from
Argentina is high on our list which will help
us in our bid for new business. People play a
big part in our strategy. After all, we make
people’s cars. We must give our stake-hold-
ers and share-holders a good return on their
investment. We are fortunate that Germany
and particularly our Chairman, Dr. Jochem
Heizmann, who is a Volkswagen Board
Member, understands the BEE policy in the
country, our needs and other quirks.
Peter Searle, former MD of Volkswagen,
who way back had faith in me and took a
chance offering me a job that didn’t exist at
the time. The other one was Hans Christian
Maergner, who was the MD in Brazil, who
was also an MD of VWSA. I worked with
this impossibly demanding man for seven
years. He opened my eyes to the technical
side of the motor business and also how to
handle adversity with a never-say-die atti-
tude of guts and determination.
Did you have a love of cars when you
were growing up?
Always. When I was at UPE, I loved Alfa
Romeos and bought a GT Junior for R600.
I totally dismantled it and rebuilt it, and got
to know the workings in detail of a motor
car the hard way.
What will you do when you retire?
At 47 I am way off that but I would like to
help under privileged people, to give them
opportunities that I have got in my life from
VW. Also, I get restless and if I am healthy,
I would love to travel.

64 December 2009 – January 2010

 Q&A

by Roger McCleery

Roger McCleery asks the questions

See how many of these 20 Questions you can answer.
1. How many Citi Golfs (Golf 1’s) did Volkswagen South Africa manufacture (to the nearest 1000) in 31 years?

2. Who owns Zwartkops Racing Circuit?

3. Who is the new President of the FIA?

4. Name three teams who have withdrawn from Formula 1 in the last year.

5. What tyre company is withdrawing from Formula 1 at the end of 2010?

6. Knysna had a first ever motorsport event in 2009. What was it?

7. Who was the first winner of this Knysna Motorsport Event?

8. How many makes of motorcycles have won the 500c /MotoGP Championship since 1949?

9. Name them.

10. Where was the Trabant – the world’s worst car ever made – produced?

11. What company in the USA designed the first Jeep?

12. Stirling Moss was a World Motor Racing Champion. In what class?

13. In what year was the first Cape Grand Prix held at Killarney?

14. What was Elvis Presley’s favourite make of car?

15. What company patented the first plastic bodied car in the 40’s?

16. In what year was the last Volkswagen Beetle manufactured in Uitenhage?

17. The late Angela Heinz founded the annual “Angela’s Picnic” in Johannesburg. What car did she drive?

18. Two South Africans competed in the 1964 Monte Carlo Rally in a 1071 Mini Cooper Super S. Who were they?

19. How many different vehicle manufacturers compete in the South African Car Market?

20. Castor Bridge just outside White River in Mpumalanga is famous for what?

Answers on page 107

December 2009 – January 2010 65

 Customer C.A.R.E.
Customer Relationship Management
– doing a real live example
I am currently working on a proposal for one of the automotive compa-
nies in South Africa. Going through the details of the plan I realised
that this illustrates a typical CRM strategy very well and for those
readers that have not had a lot of exposure to CRM, this will give a nice
condensed look at what CRM is all about.
Theo Calitz has been
working in or involved
C
RM is normally part of the
in the motor industry
for the last 16 years. marketing department howev-
A Mechanical er some motor companies also
Engineer by have CRM personnel in their after sales
profession, he is pas- department. This area of specialisation
sionate about customer is different to other marketing activities
care and his company,
T-R-M specialises in in the sense that the strategies normal-
automotive CRM for ly spreads over a number of years and,
the automotive indus- very importantly, this area can normal-
try and has been doing ly measure its effectiveness in outcomes
it for nine years. like sales, unlike other marketing and
sales departments.
Let’s look at the elements of the CRM concept I am
working on:
Customer Database: This is the heart of any CRM programme.
In order to develop the relationship with the customer, you need
information about them. The better the data, the better the abili-
ty to meet the customer’s need even to the point where you can
‘wow’ them time after time. This is not easy though. The data
must be correct and up to date otherwise there is a real risk of
actually irritating or even upsetting the customer. It always feels to
me that my bank wants my information over and over again. If
they do not seem to be able to keep my data, why bother giving it
to them? I am always surprised at how few automotive companies
actually get this right. They have these streams of data coming via
the internet or campaigns, normally what we would call Leads or
Prospects. They also get information from dealers for warranty
purposes, etc. The dealers are notoriously bad though, they want
to hit their targets and providing the right and complete data is
not high up on their priority list. The more successful automotive
companies address this challenge by actually paying the dealers for
good data (!). Once a good quality database is established the next
challenge is to manage the data flows very well in order to prevent
corruption of data. Example of data flows: the customer phones
into the call centre and there is an opportunity to validate and
update information, a customer fill in a OTP (Offer to Purchase)
at a dealership or when a customer is phoned to establish their sat-
isfaction with the service received (CSI), etc. The important thing
is the database must not be spoiled in any way by overwriting
good data with bad data or creating duplications. For this reason
the best companies has a dedicated person in charge of their cus-
tomer database with the data going into it. This person’s job is to
achieve maximum data accuracy and they tend to use words like
cleaning, scrubbing and deduping!
Extracting and Profiling: As can be seen a lot of effort goes into
setting up a database but what happens now with this data? Well,
66
this is where the fun starts. Having the data means that you can
see who your customer actually is. You can do profiling. This indi-
cates the demographics of your customer like gender, age, where
do they stay, where do they work, etc. as well as psychographics
like what sport or hobbies do they enjoy, are they family orientat-
ed, adventure seekers or art freaks. What radio stations do they lis-
ten to and what magazines do they buy. Exciting stuff! All this
helps tremendously with the questions marketing people grapple
with; where should they advertise, what media should be used,
what exact magazine or newspaper? What type of marketing cam-
paign would be most effective to which group? With all the new
electronic media coming to the fore like MMS and Mobi sites,
Mixit and Facebook, there is a proliferation of possibilities.
Loyalty Programme: This is where the data really starts to work.
The idea is to encourage and recognise loyalty of customers. It
mostly starts in the form of a Contact Programme where regular
interaction with the customer is established. This can start with a
Welcome Pack and/or a welcome message (e-mail, SMS or letter
in the mail), followed by regular e-newsletters or magazines
(which is quite costly to produce but nevertheless quite popular
with customers if it is a high quality magazine). The next step is to
respond to important events like birthdays, birthdays of product
(e.g. the car) and other events like Valentine’s Day, Woman’s Day,
Father’s and Mother’s Day, etc. More sophisticated campaigns
attempts to identify important events in customer’s lives like a
baby being born, child matriculating, relocation or even separa-
tion. These events many times results in a change of sorts which
affects the mobility needs and a good time to be interacting with
the customer.
Invitations: It is always difficult to know who to invite to events
and launches of new products. Interacting with the customers
does help to identify the big fans and product ambassadors out
there. These people will always promote your product and it is
important to recognise this by involving them in these activities.
This is than also an objective of a CRM strategy.
In summary: As can be seen by this example; the idea of CRM is
very simple but the execution to a database of customers that can
be many thousands is a bit more involved. Please remember next
time you receive your personalised invite to your favourite brand’s
new model launch; a lot of work has gone into that invite!
www.t-r-m.co.za
T 0861 TRM TRM
F 086 686 8382
December 2009 – January 2010
 Customer C.A.R.E. Programme
– sponsored by Federal-Mogul

Module SEVEN - THE ROAD

TO DAMASCUS
Before you read module seven, please refresh your memory by reading
modules one to six. This is important, as you should regularly refresh
yourself with the philosophies expounded - this is necessary to fight the
bombardment of negative images of the customer that one is exposed to
continuously in the working environment. We have to fight fire with fire,
and the antidote to negative brainwashing is positive brainwashing.
Therefore, read and reflect, read and reflect, over and over again.
Remember, you are fighting years of indoctrination.

W
e ended off the
last module with
the chief execu-
tive looking like
an idiot, with the
laying of a wreath
at the tomb of the unknown customer.
And this same humiliation must also be
the fate of every single employee. Why do
I use words like idiot and humiliation? Is it
not better to use words like pride and cel-
ebration, or victory and enthusiasm? We
should soar with the eagles, not gobble
with the turkeys. Yes, we should, but these
superlatives will come later. For now, at the
beginning of the process, we are looking
for humility.
Humility is the cornerstone of customer
care. It is the foundation on which the
three Trilogy Truths have been conceptu-
alised, and is the bedrock on which a true
customer care culture is built. Customer
care comes from the realisation that one is
nothing without the customer. It is a feel-
ing similar to that of the philosopher who
looks upwards at the immense array of
stars, or of the mariner who looks over the
vast expanse of ocean, and they realise how
insignificant one really is. But it also gives
one a sense of awe, a feeling of peace, and
a surge of power, knowing that you are
part of this wonderful, inexplicable uni-
verse. This humility is the start of the cus-
tomer care journey, and the inexorable
path to the road to Damascus experience,
the blinding realisation that C.A.R.E. sim-
ply means CUSTOMERS ARE REALLY
EVERYTHING. As I’ve said many times
before, and I’ll say it thousands of times
again, once this is understood intellectual-
ly and emotionally, everything you do
from 8 to 5 will fall into place, and you
will have the right perspective. If the truth
be told, once this basic premise is in place,
no further training is necessary, as you will
automatically be a customer care profes-
sional. Unfortunately, even if you are one
of these very rare creatures (endangered or
extinct might be closer to the mark), it is
very likely that your staff do not agree with
you. As a word of warning, if you do not
prepare them properly for this earth shat-
tering realisation, and just announce it out
of the blue, they will most probably con-
sider you off your rocker. The secret is to
get them to come along for the ride. And
let us not fool ourselves; it will be a crazy
roller-coaster ride.
But we MUST have a go. The alternative
is ghastly enough to contemplate -- crush-
ing boredom, rutted day after rutted day,
surviving month to month, management
account after management account, annu-
al audit after annual audit, and not having
the faintest clue as to how we actually put
something on the bottom line, despite
ourselves. Therefore, take your staff on this
wonderful journey of adventure, to explore
exotic parts of your business that have
never been seen before, and where they
actually get fascinated by the customer.
WHAT - THE CUSTOMER?
Of course, we all know that customers are
smelly little creatures. They are manipula-
tive, scheming, always looking for a bar-
gain, taking credit where no credit is due,
wanting everything for nothing, en so
voorts, en so voorts. I could go on and on
and on ......For all we know, in their pri-
vate lives they could behave quite badly.
They could be bulimic, adulterous, vain,
rebellious (not necessarily a bad thing),
spiteful, hurtful and shallow. They may
even cheat on their golf handicap.
Yet, with all of these faults, we MUST get
our employees to be fascinated with the
customer. Not only fascinated, they must
be besotted with the customer, and very
importantly, they must LOVE the cus-
tomer. Whoa, hold it right there, I’m talk-
ing emotional love, not physical love.
continued on p70

68 December 2009 – January 2010

 Customer C.A.R.E. Programme
from p69 – sponsored by Federal-Mogul
CAN THIS BE DONE?
DISCUSSION POINTS
Do you believe that this can be done? Can
1. We are constantly being exposed to negative images of the
we take our staff ’s minds off next Saturday’s customer.
rugby game, or that drink at the club
tonight? Can we make our staff absolutely Give some examples.
fascinated and moonstruck over the cus-
tomer, even a customer with all the faults 2. If you start becoming fascinated by the customer, it will
mentioned above? YES, WE CAN ! And it allow you to explore exotic parts of your business that have
has been done before - there is a significant never been seen before.
precedent to prove that perceptions can be
amazingly manipulated. Reality can be so What am I talking about?
distorted that we can make “Alice in
Wonderland” look quite pedestrian. 3. People are always trying to get a bargain, and merely the
perception of getting something for nothing excites them.
In the next chapter, this incredible story
This is human nature. Are you different?
shall be unveiled. A true story, a story
Discuss.
which is stranger than fiction, which shall
serve as the driving force, and the confir- 4. Why do people look forward to the week-end?
mation of my belief, and our strategy, to
make the customer KING, for everyone. Discuss the good reasons and the bad reasons.

Mud and Guts

On the 17th of October 2009 the WCCC (Western
Cape Challenge Club) hosted the Monroe National
4x4 Extreme Challenge at Dirt & Dust, Durbanville.
This is the only National event in the Western Cape
for the year and competitors took up the challenge enthusiastically to
pit their skills against drivers and their vehicle. Participants arrived in a
smorgasbord of vehicles with varying levels of modification to tackle
the course with gusto. The vehicles had to negotiate obstacles that were
designed with a great deal of imagination and a desire to make it real-
ly, really difficult. However, despite the fact that the word Obstacle
means to: impede, stand in the way of, or hold up progress, the mud,
water, steep climbs and ditches – merely added to the determination of
the teams of driver and co-driver. The adrenalin pumped (in both the
spectators and participants) and there were some seriously anxious and
exciting moments. And large dollops of humour. Philip Lutz comment-
ed that "Monroe is once again very pleased to be able to sponsor this
important annual 4x4 event which we have been doing since 2006. We
have an extensive off-road range of shocks such as the price competitive
heavy duty Monroe Gas-Magnums, the high performance gas heavy
duty Monroe Adventures or the ultra heavy duty gas tri-tube 9-way
adjustable Ranchos’, an event such as this is a good fit with the compa- Anyone got mud vision? The driver didn’t let this little ‘challenge’ stop
ny’s products range and target market." him from driving out of the water hazard anyway

70 December 2009 – January 2010

 Diamond Dialogues

Editorial
Partnership
Giel Steyn

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

Opening the doors of perception to

Standards and Controls – Part Two
Last month, we discussed what the SABS (South African Bureau of Standards) does, and gave a
brief history of this valuable institution and the recent legislation enacted to create the NRSC
(National Regulator for Compulsory Standards) to bring effect to the separation of duties of the
SABS and the newly created NRCS. We now discuss the rationale behind the NRCS.

T
he National Regulator for Compulsory Specifications
Act (Act 5 of 2008) was promulgated in Government
Gazette 31216 on 4th July 2008 and took effect on 1st
September 2008. The Act transferred the Regulatory
Division of the SABS and all regulatory functions of the SABS to
a new statutory Department of Trade and Industry (DTI) institu-
tion - NCRS. The new Act also transferred all the employees in
the SABS Regulatory Division to the NRCS, together with rele-
vant regulation including compulsory specifications, agreements,
assets and obligations. The legislation was the culmination of a 10-
year process intended to align South Africa with world best regu-
latory practice and to meet the requirements of the World Trade
Organisation (WTO) agreement on TECHNICAL BARRIERS
TO TRADE (WTO TBT Agreement).

Thus the NRCS effectively replaced what used to be known as

SABS Regulatory, and the reason for this change was the realisa-
tion that, together with the problems around perception, that the
SABS as an entity, no matter how principled or pure its objectives,
could not be seen to be both judge and jury, and even prosecutor
and defence lawyer, for all the activities under its jurisdiction. A
clear delineation of duties was necessary. With the creation of the
NRCS the SABS was relieved of this odious burden and could
revert to the critical role of setter of standards, and the equally
important function of being a testing house, without the addition-
al encumbrance of being the body to enforce these standards. It
was simply unreasonable to expect the SABS and its employees,
who were working with various companies in different roles and
capacities, sometimes with emotional ties, to show no bias what-
soever. The SABS was in the invidious position of playing both
good cop and bad cop, and it was clear that another oversight
body was needed, to clear up the confusion, and perception, no
matter how right or wrong this was. The NRSC solved all that.
in the interest of Public Health; Safety; and Protecting the
Environment. From an automotive perspective, the products that
are covered are typically those that fall under the “life and limb”
category, such as hydraulic brake hose, glass, lamps, friction mate-
rial, seat belts, tyres, baby seats, side mirrors, motorcycle helmets,
and reflective tape for commercial vehicles, buses, and trailers, etc.
Giel Steyn does mention that it is surprising that there are no
compulsory standards for suspension parts, and comments that
this should be addressed urgently. The NRCS inspectors focus on
the specified products that fall under the compulsory specifica-
tions via inspection and they have the right to inspect anyone who
distributes this product. They also have the authority to impound
or quarantine this product at warehouses, outlets, ports, or wher-
ever this product is stored. If the necessary procedures are fol-
lowed, this product can even eventually be destroyed if it is
deemed to imperil public safety or health.

The preamble of the NRCS Act states that the right of the public
to health, safety and environmental protection is entrenched in
South Africa's Constitution, and it adds that the National
Regulator for Compulsory Specifications (NRCS) protects these
rights by administering and enforcing compulsory specifications
In the next issue of ABR, we shall look at what exactly is a com-
pulsory specification, and how responsible companies such as
Grandmark International go about in following the procedures as
laid down in the importation of product that meets and even
exceeds these standards and at reasonable prices.

72 December 2009 – January 2010

 Alert
In the November 2009 issue of ABR, we introduced AAMA Alert,
a monthly column to look at the issues that affect the automotive
aftermarket. In the first column, we brought to light the problems
associated with a volatile rand, and promised to look at this subject
in more depth in the next issue of ABR.

Currency Challenges
Challenge is a word that is frequently used and abused. To such an extent that some
commentators have even suggested that the word be banned from business discourse,
as “challenge” has become the flavour of the month, displacing “problem” as the
description of choice to describe a situation which requires action and foresight.
However, it would definitely not be hyperbolic to describe currency fluctuations as
extremely challenging for the South African businessman.

T
o get a handle on this, let’s look at a real life sce-
nario. Company A is a company that trades in auto-
motive product. It has a manufacturing base, but
also has access to manufacturing bases around the
world, as it is part of a multi-national. This multi-
national makes decisions the old fashioned way, i.e. it sets up
manufacturing bases where it is economically relevant. This rele-
vance is based on factors such as costs, location, viability, and very
importantly, long term sustainability. Company A, being a patri-
otic company, wants its parent company to set up a widget plant
in South Africa, and does its business study based on a
Rand/Dollar exchange rate of 10:1 (Don’t laugh, the Rand was
over ten to the Dollar a mere ten months ago!). This commodity
is available from the parent company’s other plants worldwide at
13 dollars, and Company A needs to meet this and wishes to
make a 30% gross margin. Thus a landed cost of 10 dollars is the
target, and all the sums are done, and the figures come out just
right – it can be done. Company A can make the widgets for R80,
and with judicious expense control and fast turn of inventories,
the targeted return on investment can be met. Hooray! Problem
solved, and a challenge met. The factory is built, with parent com-
pany investment, and the future looks rosy for all and sundry. The
parent company gets the product at the right price, Company A
achieves its financial targets, and the country earns much needed
foreign exchange. The contracts are signed and amongst much
fanfare a ceremony is held with the attendance of many digni-
74
taries, and the first sod is turned with a gold plated shovel. Let the
good times roll!
Unfortunately, before the factory has reached roof height, the
rand has strengthened to 7,5 to the dollar. Good news for infla-
tion, and good news for the petrol price, but not so good news for
the sleep patterns of the CEO for Company A, because his num-
ber crunchers have told him that the 10 dollar selling price for his
widgets now translates to R75, R5 below his cost price. Eish, a
great business plan in flames, and a CEO in the hot seat. Of
course, his local profits now look great when reported in dollars,
and his imported product racks up the margins, but what is the
mix, and how do you plan intelligently for the future? It makes a
night out on the tables at Monte Casino look like a well managed
portfolio.
Each business has its unique characteristics,
but whatever situation you are in, intelligent
planning is well nigh impossible. The automotive
aftermarket is crying out for a more stable
environment. This means a stable currency.
The question is, what interventions are needed
to achieve this? More on this debate in
the future.
December 2009 – January 2010
 Howard Keeg follows the action

River Deep,
On the e
Mountain High
scarpmen
River sit t of Mpu
s amongs malanga,
mountain t deep rive White
s, but on rs and h

T
10th Nov the evenin igh he final Partinform show of the year, held at the
ember 20 g of Tues Ingwenyama Conference & Sport Resort, was near-
and thre 09, the h day,
atened to eavens o ly engulfed by this extraordinary show of strength by
ly into a turn Whit pened
series of e River r Mother Nature, but she flattered to deceive, and
confirmin grade six apid-
g its wat rapids, a after half an hour of pyrotechnics that would have made
the thun e rway nam nd
der was a e. My oh Vincent van Gogh proud, and a deluge that would have quick-
klap, and s loud as my,
the light an Ike Tu ened Noah’s pulse, the gods rested and the show went on. But
as vivid a ning and rner
nd gliste downpou it was a close thing, and at 17h15, a mere 15 minutes before
ning as T r was
ina’s tor the guests were due to arrive, odds were being taken by some
so. sub continent bookies as to whether anyone would turn up at
all. The organisers’ ashen faces brightened at 18h00 as the
turnstiles started to click, and by 19h00 the festivities began,
with a solid turnout of over 135 guests, testament to the
pioneering spirit of the Lowveld folk. And their fortitude
was rewarded with a parts display, technical information,
one on one involvement with the manufacturers and rep-
resentatives of top class brands, networking with their
Lowveld colleagues, prizes galore and the opportunity
for one lucky guest to be part of the Forza Racing
Ferrari Track Experience on 19th November (see fol-
lowing story).

December 2009 – January 2010 75

 Before.......
The Indhlovu Hall at the Ingwenyama Conference & Sport Resort leaked like a sieve during the downpour.
M.C. Stander, Food & Beverage Manager at the Resort, said that it was the first time in his four years at
the resort that he had seen the hall leak, and he described the deluge as “the mother of all storms”

At 17h30, the stands were ready,

with nowhere to go. The Partinform
personnel were at their posts, but
with only one straggler to talk to.

76 December 2009 – January 2010

December 2009 – January 2010 77
 After.......
At 19h00 a relieved Alex
Christodoulou of Axis Event
Management and Master of
Ceremonies Duane Rockwell
could get the show on the road.
Duane had driven up from
Johannesburg, haven given
himself ample time to arrive by
17h00, but only arrived at
18h00, because of “the biggest
rainstorm I’ve ever driven
through, and a most frighten-
ing experience”. Duane said
that he was amazed at the
turnout, as if no one had
turned up, he would not have
been surprised.
Colin Murphy, Chairman of Partinform, wel-
comed the intrepid guests, and gave them an
update on the current trends in the automotive
aftermarket. He emphasised the need for the
industry to support the motorists who were
keeping their cars longer, and to assist them in
keeping their vehicles in tip top competition, by
the provision of quality branded parts, and after
sales service. He also warned of the dangers
inherent in the imminent Consumer Protection
Bill, as everyone involved in the supply chain
would be jointly and severally liable for inferior
product and consequential damage.

Three of the
guests who m
were Rusty ade it to the
and Marlene show
Bourne Mid B ourne of Ru
as, Cape Tow sty
Bourne of Low n, and Mar
veld Garage ise
Bournes have Equipment.
recently mov The
and the inten ed to White Riv
sity of the st er
prised Rusty, orm had even
not unused sur-
Storms. Desp to the Cape
ite having seen of
garden wash their newly la
ed away by id
wall of wat a one metre
er a few m high
Bournes show in utes before,
ed their spir the
off and arrivi it by shruggin
ng at the show g it
happened. as if nothing
had

78 December 2009 – January 2010

 An ecstatic Riaan Vosges of Horst Auto Workshop discovers that he is the winner of the
Forza Racing Ferrari Experience. Riaan took part in the Partinform Quiz after been drawn
out of the hat. He told ABR that he expected a “broekskeur moeilik” question, but could
easily answer in the affirmative as to whether Luk was a major supplier of clutches to the
South African automotive manufacturers.

Part of the Mpumalanga Manne that braved the elements to get to Partinform

December 2009 – January 2010 79

 Insights

A Helping Hand
2009 was a tough year for the automotive industry. Who would have thought at the Capricorn
Society’s annual bash events in Durban and Gauteng during November 2008 what was awaiting
us? Upon reflection, the members of Capricorn had very little to worry about, because the Society
was proactive and prescient from day one, and proved that it was a partner that offered realistic
assessments and genuine benefits, and the Capricorn ship and those who sailed on her navigated
the storm with relative ease, albeit with the sails trimmed to take into account the circumstances.

A
BR has observed from both a distance and close-up how
professionally and business like Capricorn Society, and
its members and suppliers, have confronted the issues,
and this behaviour has set them apart from the rest. To
appreciate the authenticity of these words, one just needs to peruse
the back copies of ABR from February 2009 to November 2009,
and to reread the series of articles under the banner of “Capricorn
Insights”:
February 2009: Capricorn Society signalled its intention to
tighten up its criteria for membership, a move welcomed by the
South African founder members.
March 2009: In reaction to the global financial crisis, Trent
Barlett, CEO of Capricorn Society, sent out an open letter to its
suppliers committing to prompt payment of its accounts and the
guarantee of no bad debt, proving that Capricorn was “an organi-
sation that you can trust and rely upon”.
April 2009: Capricorn Society staff were a prominent feature at
the Autodata stand at Automechanika South Africa in March
2009, to ensure that all members who visited the stand were aware
of the benefit of free technical vehicle data to Capricorn members.
May 2009: The first MIWA/RMI “Mystery Shopper Programme”
winner, Bruno Burri of Swedo Tech Services, attributes his mem-
bership of Capricorn Society as a key factor in his success.
June 2009: Rob Mildenhall, Capricorn’s South African Business
Development Manager, explained the rationale behind Capricorn’s
emphasis on debt collection, prompt supplier payment, and
integrity when doing business.
July 2009: Pieter Haak, General Manager After Sales, Barloworld
Motor Retail South Africa, explained to ABR about the philoso-
phy of “Fewer, Bigger, Better” and how Capricorn Society fitted
the Barloworld values, and how happy Barloworld was to be a
Capricorn supplier.
August 2009: The parade of happy suppliers continued, with
Louis Nel, Franchise Parts Manager, McCarthy Motors, expound-
ing the virtues of Capricorn Society, and how its service offerings
fitted Mercedes-Benz DNI (Distribution National Inventory) sys-
tem like a glove.
September 2009: ABR devoted an article to the International
Day of Cooperatives, a day set aside by the United Nations to hon-
our and recognise the effective role that cooperatives play in glob-
al business and development
October 2009: ABR interviewed four loyal Capricorn members
to confirm that the procedures put into place by the Society to
protect and enhance its values, had the full support of the mem-
bers.
November 2009: An interview with Malcolm Perrie and Chris
Hillier of Federal-Mogul Aftermarket put the cherry on the cake,
through the affirmation that Capricorn Society is an effective mar-
keting and sales tool in the automotive aftermarket supply and
service chain, with particular reference to the Capricorn Preferred
Supplier Loyalty Programme.
A litany of praise indeed, and ABR spoke to Rob Mildenhall about
this huge vote of confidence from suppliers and members alike.
Rob said that “Capricorn is a pragmatic organisation that is not
scared to take tough decisions for the good of the whole. An exam-
ple of this is our decision to postpone our year end function to
early in 2010, as we realise that 2009 has been a tough year, and
this has put pressure on our suppliers and partners. With this
approach, we have been an invaluable catalyst in the automotive
aftermarket. Our guarantee of payment, and the reduced exposure
to debt for the suppliers, has encouraged and grown business in
the industry, even in these depressed times. Our loyal members
believe in the cooperative concept and continue to build our coop-
eratively minded company. They are the heart of the company, and
2010 will see further growth, as all our combined hard work bears
fruit, and we look forward to expansion in the next year.”

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

80 December 2009 – January 2010

 A series of articles on Launch Technologies SA (Pty) Ltd

Launch’s Silver Bullet

Launch Technologies SA (Pty) Ltd has only been operational in South Africa since
2000, but in this short space of time Launch has established itself as a major sup-
plier of automotive aftermarket service equipment to the automotive and allied indus-
tries in Southern Africa. One of the major reasons for this success is that the qual-
ity range of Launch equipment and products are fully backed up and serviced by in-
house after sales service teams. Thus it comes as no surprise to learn that of the
workshops in South Africa using Launch equipment, that 70% of their requirements
are met by Launch Technologies.

A
ll good and well, and very necessary. But Launch’s sil-
ver bullet is its X-431 Super Scanner. The origins of
the X-431 began in 1994, when Launch Tech Co. in
China developed its first generation scanner named
the LE100. Over the years Launch improved on this
scanner significantly, and in 1998 they developed the
fourth generation of the 431ME and the enhanced 431ME 1 model.
Development continued apace, and in 2004 the X-431 was ranked
among the top 20 service tools of the year, and in September 2004 it
was rated number one in the kfz-Meister Service appraisal.
International acceptance continued with the granting of certification
by California’s BAR association in 2005, and the rating of Top
Product of the Year 2005 in February 2006 by the UK’s Professional
Motor Mechanic Magazine. Further awards have followed, and the
X-431 has become the trailblazer of Launch product, with worldwide
use in over 80 000 workshops. Its open platform diagnosis represents
the latest technology and the future of vehicle diagnosis. Just read
what Launch claims in the product brochure:

• The most powerful diagnostic scan tool in the world that

covers more vehicle makes and a wider range of systems
than any other, including all major North American,
European and Asian models
• Wide language choices, from English to Chinese
• Upgrades via www.x431.com up to 400 times every year
• Reliable hardware, proven platform, software and
technology
• Display data stream in waveform
• Equipped with international standard ports for the
connection with all vehicles
• Provision of a whole list of distinctive functions,
including handwriting input, P.D.A. facility and a
calculator amongst other features
• Offering 32-bit access due to the advanced hardware

82 December 2009 – January 2010

 Howard Keeg follows the action

What they were all

waiting for!

… and the reason why we get so many speeding tickets

Eight Partinforms under the belt, ten ABR’s read and entry forms completed, and ten
months of waiting was over. D Day had eventually arrived. On a cool cloudy day, with
rain threatening but thankfully holding off enough to allow for a Forza Racing
Track Experience, the twelve lucky winners gathered on Thursday 19th November at
Zwartkops Race Track to partake in an experience of a lifetime. For those who did not
make it for 2009,the Partinform roadshow shall be on the road again in 2010 and
twelve more racing experiences will be up for grabs once more – details to follow in
the February 2010 issue of ABR.

e last
Malcolm Perrie, Chairman of vered at th
AAMA, welcomed the guests It was discot Riaan Vosges of
a
and explained the rationale minute th Workshop did not
behind the establishment of Horst Auto ing licence, which
v
AAMA, and the important have a dri him from partici-
role that the Partinform shows disqualified the full schedule.
play in getting the message of pating in s made up for it
iser
quality branded product across The organ iaan two hot laps
y givin g R ps.
to the trade b d Zwartko
a rou n

84 December 2009 – January 2010

 from
which ta kes the car
60,
e Ferrari 3 ds
e business end of th 0 kph in four secon
Th 0 – 10

acing
rganisation of the R e scenes
o
s and the ation and behind th in
form show is ork
The Partin quires tons of organ the brunt of the w cknowl-
ie n ce re G ill bo re form , a
Exper yl rtin
tion - Ber man of Pa ay
administra lin Murphy, Chair in an appropriate w
, an d C o le in p u t
2009 invaluab
edged her

al use of
spo nsors made liber e added
The hav
hich must
stickers, w f milliseconds on to
a couple o lap times.
the

December 2009 – January 2010 85

 Diesel-Electric
Robert Bosch announce new
Workshop Franchise for South Africa
The Diesel-Electric Convention 2009, held on Friday 20th November 2009 at
Maropeng in the Cradle of Humankind, came electrifying alive just before after-
noon tea, when Ewald Faulstich, Director Automotive Aftermarket Division at
Robert Bosch (Pty) Ltd, made the announcement that Robert Bosch was soon to
launch a new workshop concept, AutoCrew, into South Africa, and by so doing,
following the lead of their parent company in Germany.
F
or anyone who has been following the global trends
in the automotive aftermarket, and reading between
the lines from previous presentations from Ewald
Faulstich and other commentators in the industry,
this announcement comes as no surprise. In actual
fact, this has been a long time coming, considering
that the “Bosch Dienst” workshop concept was launched in
Germany in 1921, and later expanded globally, and by the time
the first Bosch Service opened in South Africa in 1937, the need
for professional workshop support for the growing vehicle car
parc was moving from a good idea to an absolute imperative.
Robert Bosch was simply ahead of its time and with today’s tech-
nologically complex and advanced vehicles, the need for more
professionally run and well supported workshops is simply not
being met in South Africa. Based on this fact, and the realisation
that a vacuum was being created which will eventually be filled by
someone else with an eagle eye and deep pockets, the rationale
behind the move makes perfect sense. Many entities have made
the attempt the past few years, with limited success, but as Ewald
Faulstich put it, “someone will eventually find the right formula
and hit the jackpot”. The Diesel-Electric organisation saw the
trend over five years ago, and made the first move with the intro-
duction of the e-CAR workshop concept in this country in 2004,
which is today the fastest growing workshop network in South
Africa, and now boasts 60 members. However, Robert Bosch
apparently feels that the vacuum remains unfilled, and they evi-
dently want to head off potential interlopers at the pass, or at least
create barriers to entry which will discourage any aspiring new-
comers. And the figures that Ewald gave at the convention made
for a compelling case. 80% of workshops in Europe are IAM
Franchised, whereas this figure is roughly 20% in South Africa.
To put it into perspective, four out of five workshops in South
Africa are independently run, and whilst they may offer a high
level of personalised service, they will soon fall behind the
technological curve, and will need to join a bigger organisation to
remain relevant. This is the pond in which the Bosch Service,
the e-CAR, the AutoCrew, and other national franchises are going
to cast their nets.
We Keep Vehicles Moving
The keynote address at the Diesel-Electric Convention 2009 was
presented by Gürcan Karakaş, Senior Vice President, Automotive
Aftermarket, Sales Independent Aftermarket, Robert Bosch
GmbH, who emphasised that from day one the Robert Bosch
Group was built on research and development, and that its
86
Convention
globalisation was built on the genetic code of Bosch. Today, 74%
of Bosch sales revenues come from outside Germany, which is not
a recent trend, as even before WW1 80% came from outside
Germany. Gürcan Karakaş’ presentation was on “The
Independent Aftermarket in Challenging Times”, and his progno-
sis was that the battle for profit in the aftermarket is today focused
on the second tier of the trade, i.e. independent and franchised
workshops; national workshop chains; DIY/petrol stations; OES
owned workshop franchises; and IAM workshops owned by
OEMs. The emphasis is on more professional management, inter-
national workshop concepts, adaptation to legislation, and the
making use of intermediaries. In the mature markets, the trend is
for more and more workshop generalists, whilst on the distribu-
tion side the move has been to concentration and rationalisation.
South Africa needs to recognise these trends, and to identify the
business opportunities and threats therein. He concluded with the
following key messages to the delegates:
• Long term aftermarket growth potential exists but
competition will increase
• Positive and negative industry trends require different
strategic solutions
• Meeting workshop needs and binding workshops is key to
success
• Parts & Bytes strategy is a key pre-requisite for continued
success
• Together with its partners Bosch AA will increase market
share
• Continuous market changes require organisational
adjustments both at Bosch and its partners
Ewald Faulstich echoed these sentiments, and warned the
delegates not to underestimate the battlefield, and to this end
Bosch was to focus on four concepts/strategies: Parts, Diagnostic,
Workshop, and Communication. He said that the “middle age car
parc” was where the battle would be most intense, and that the
key to acquiring a large part of this business was to enlarge the
circle and to build walls around the circle. Central to this theme
was the incremental expansion of workshop franchises, through
additional e-CAR, AutoCrew, Bosch Diesel and Bosch Car
Service outlets. Enhancing this would be an emphasis on supply
chain management, and creating an image of “Best in Class”
brand performance and brand value. As both Ewald and Gürcan
said, “If we do not shape the market, the market will shape us”.
With this philosophy, we can be assured that Bosch does indeed
intend to keep vehicles moving!
December 2009 – January 2010
 Diesel-Electric Convention
Wolfgang von Ey (Snr) from
Vaal/OFS was presented with a
Most Valued Diesel Electric
Business Partner “Life Time”
Award after 25 years service,
and he regaled the delegates with
a history of the organisation

The two key presenters at the Diesel-Electric Convention were

Ewald Faulstich Director Automotive Aftermarket Division at
Robert Bosch (Pty) Ltd, and Gürcan Karakaş, Senior Vice
President, Automotive Aftermarket, Sales Independent
Aftermarket, Robert Bosch GmbH The convention allowed for some
intense networking

The coveted
Diesel Electric of
the Year trophies
went to Welkom
(Category B) and
Rustenburg
(Category A).

Lilian Hansen was the

sole female presenter, who
enlightened the delegates
on the initiatives around
brand management,
advertising, sales promo-
tions and e-commerce.
Lilian managed to let her
hair down at the Gala
Dinner.

After the convention ABR

managed to collar the
male side of the technical
presentation team, who
played a crucial role in
updating the delegates on
the Bosch Business
Concepts and Strategies,
and the detail therein.
The convention was held at Maropeng, in the heart of the cradle of humankind. An appropriate venue,
as the theme centred on the concept of “Adapt or Die”
87
 Industry Update

The end of an era

It all started in 1974 with the introduction of the Golf 1 in Europe. And it ends in
the first quarter of 2010, when the last Citi Golf leaves a VW showroom. 36 years
of an icon that even the most optimistic of planners could not have foreseen.

G
olf 1 became an immediate success when it was
launched in South Africa in 1978, four years after it
was launched in Germany, as it was the small car suc-
cessor to the even more iconic Beetle. But it was the
impending launch of the Golf 2 in 1984 that gave VWSA a
headache, as it was about to lose a popular entry level vehicle.
Thus was born the Citi Golf, after an initial look at an “Econo
Golf ”, and a young, vibrant team from VW’s advertising agency,
which included fashion designer, Jenni Button; copywriter, John
Cooke; art directors, Brian Plimsoll and Mel Miller; illustrator,
Three proud godfathers of the Citi Golf, at the announcement of
“Zippie” Zimmet, took this vehicle to unimaginable heights. the Citi Golf ’s demise on 2nd November 2009. l to r, Mike
Ironically, it was Brian Plimsoll who came up with the “freedom Glendinning, Director, Sales & Marketing Director; David
of the Citi” slogan, and 25 years later, the freedom will no longer Powels, Managing Director; Bill Stephens, Division Head,
be, as announced by David Powels, Managing Director of VWSA, Communications.
at a media conference in Midrand on 2nd November 2009. In
reality, the Citi’s freedom will roll on, because VWSA built 517 auctioned unit number 003 and the last Citi produced to be
384 units of the A1 derivative from May 1978 to August 2009, available to the public, the proceeds going to a community-based
and as Powels promised at the conference, VW will “continue to organisation, Ubuntu Education Fund in Port Elizabeth.
service and support the Citi Golf as long as it takes”. The good-
bye will be long and extended, as VW has built up stock of the
Interesting facts about Citi
Citi Golf, and is being coy about the Citi’s successor, which will • Over 120 employees currently working at VWSA production
only be revealed in the first quarter of next year. Volkswagen of plants in Uitenhage have only worked on the A1 line (Golf 1
South Africa is paying homage to the original Golf 1, with the and Citi) production. Collectively, they have 2700 years of
introduction of a final limited edition Citi, aptly branded, Citi experience on the Citi.
Mk1. Only 1000 of these collectors’ cars will find their way into • In 1984, only 300 Citi Golf units were sold per month.
the hands of motoring enthusiasts in South Africa and around the 25 years later, over 1600 units are sold in a single month.
world. Two of the last produced Citi Mk1 units will join other • In 2006, an average of 130 units were produced per day and
Volkswagen Classic cars that are on permanent display at the 28 550 units were sold.
Autostadt, the Volkswagen Group Museum and Brand Expo in • In 1984, the retail price of the Citi Golf started at R 7 630
Wolfsburg, Germany and at the Volkswagen AutoPavillion Brand and in 2009 the retail price starts at R84 700.
heritage centre in Uitenhage. In addition, during November 2009
VW embarked on a goodbye tour around the country, and also • Citi has outlasted five generations of the Golf range.

The last MK1 Golf comes off the

production line in Uitenhage on
21 August 2009

88
December 2009 – January 2010
 Vehicle Evaluation

The Z Car
by Howard Keeg

For one week, cour-

tesy of Nissan South
Africa, I was Zorro, the caped
crusader, patrolling the streets of Gauteng
in the classic Nissan 370Z Coupe, the ultimate Z car. A 7 speed automatic, with a natu-
rally aspirated fuel injected 3,7 litre V6 engine, pushing out 248kW @ 7000 rpm, and
366Nm @ 5200 rpm, and acceleration of 0 to 100kph in roughly 5,5 seconds, and a
claimed 0 to 200 kph in 20,8 seconds, this car is a meneer.

I
t may not be the fastest sports car on
This is a true Z car. Wherever you look, you see a Z.
the block, nor does it have the bells and
whistles that some of the over the top
fire belching bling vehicles have, but
this is a true blue sports car, with a nod to the
heritage of this genre. And at R516 200, it is
affordable and perfect for my age group.
Actually, it is perfect for any age group, but
from my perspective it is the car for me if I
was so inclined. It has all the power that one
needs, its dynamic weight balance gives a
feeling as if it runs on rails, and it has phe-
nomenal braking, thanks to 19” wheels and
14” front brake discs with four piston cal-
lipers. It is a thoroughly modern sports car,
but remembers its 240Z roots from 1970,
and a full redesign of the 2003 350Z. I did
not have the opportunity to really test this
baby, which requires some illegal driving, but
for the week that I had it, I managed to do
750 km on one tank in mostly city and free-
way driving, with an estimated 9,7l/km. I
did not nurse the car, so this is very accept-
able fuel consumption. What I really liked
was the long paddles if one moved to manu-
al mode, which was not really necessary as
the automatic box is great, and the whole
console moving with the steering wheel on The laws of attraction
adjustment, thus always giving full view of
the dials. One quibble, and that is the road With the Z car.
noise, but I did notice that the tyres on my
test car were scuffed, which could have con-
tributed – those motoring journalists, tut,
tut. And finally, this car does some amazing
things for my masculinity. With my normal
sedan, no one seems to notice me, but with
the 370Z, I was being escorted into parking
bays, and the opposite sex did not seem to
mind that I am hirsutely challenged. On sec-
ond thoughts, I am so inclined.
Without the Z ca
r. 89
December 2009 – January 2010
 Industry Update
Passing
theBaton
ABR ONE ON ONE WITH Warren Espinoza
Q: The phrase “commitment to stakeholders” is a much
bandied about term. What does this represent to you?
A: This is a broad question, but we take all our stakeholders seri-
ously. Shareholders, customers, franchisees, suppliers, staff, the
community in which we operate, they are all uppermost in our
minds. From the broader automotive aftermarket angle, of which
your magazine is particularly interested, we are acutely aware of the
responsibility we bear towards our suppliers in ensuring improved
market penetration, and the need to be the standard bearer for
quality product. Over achieving the expectation of our customer
base is paramount to growing their loyalty and support hence our
mantra of “Delivering the Promise”. Naturally, we also take the
responsibility of protecting our employees’ jobs extremely serious-
ly, and we will move heaven and earth to sustain this position.
I would also like to add that our commitment to social projects is
important to Midas. We are deeply committed to assisting under-
privileged communities and deserving cases, and are already assist-
ing three schools and various hospices. There are financial con-
straints, of course, so in addition to our company funding, we raise
money for these projects, and we proactively disburse these funds
as efficiently as possible, with the aim of inculcating a self sufficien-
cy ethos amongst the recipients. I recently attended a prize giving
at the Madibatlou Middle School in Olifantsfontein and it was
gratifying to see that our efforts are bearing fruit. We also intend
being more active in environmental projects in future, and all I can
say at this stage is watch this space.
Q: What are the big issues that are currently exercising your
minds?
A: Quality and cost issues are always in the debate, but the bigger
issue at the moment is the impending Consumer Protection Act.
This is going to have a material impact on the market. The exact
ramifications of the CPA are as yet not clear, however, we under-
stand that we will have to restructure our agreements with our sup-
pliers and franchisees to take this impact into account. We think
that overall the CPA will be good for the industry. Midas of course
will comply with the CPA, as it will favour those who deal in qual-
ity. It is a new factor that will affect business, to an extent still to
be assessed.
90
Q: And challenges for the future?
A: Pricing is a challenge, and the pressure on margins will
increase. The market is going to get more competitive, which is
good news for the consumer. Service, like quality a few years ago,
is becoming a given, and expectations continue to increase.
Supply chain efficiency will become a challenge, and the ability to
feed an increasingly insatiable market demand for a wider and
wider range of vehicle models whilst retaining acceptable working
capital levels will definitely be a challenge. Outlets carry less stock
and expect multiple deliveries a day. The challenge is to meet this
requirement whilst managing the increased cost that is associated
with a higher service offering.
Q: What will the market look like in five years time?
A: The market will be more competitive, but paradoxically it will
be less cluttered. The current recession is already taking casualties,
but the outlets that survive will be leaner and meaner, with the
trend moving even stronger to quality and service. Thus there will
be a strong bias towards franchised outlets as the consumer turns
to brands that can be trusted. Brand loyalty will strengthen
amongst consumers, and they will be looking for good deals on
KVI’s (Known Value Items). The consumer will be more educat-
ed and demanding, with the CPA accelerating this trend.
However, Midas is well positioned and confident that it will meet
the market needs over the medium term.
Q: Do you intend the steer the Midas ship for the next 12
years, like your predecessor?
A: When I was studying to be an Accountant I never even dreamt
I was going to end up in the automotive industry. I thought that
I was going to end up in some form of banking, as I did have a
stint at Lloyds in London. I really enjoy the industry and more
importantly the people I work with every day. I love the people,
and the culture of a strong team working together is great. This
philosophy stands us in good stead, and I really appreciate the
support that I get from this team, which is a solid combination of
experience and youth. I look forward to the future with relish.
December 2009 – January 2010
 Industry Update

In the November issue of ABR, we covered the 2009 Midas Napa

Convention, held at Emperors Palace, Gauteng on 23/24 October
2009. The event ended off emotionally with the “passing of the
baton” from Gordon Odgers, CEO, to Warren Espinoza, COO, in
respect of the day to day responsibilities of the Midas Group. ABR
waited for the hubbub to die down before interviewing both gentle-
men, with the view to finding out whether it was business as usual at
South Africa’s largest automotive aftermarket organisation, and
what was the anticipated effect of the acquisition of 56% of Midas
by Imperial Holdings.

ABR ONE ON ONE WITH GORDON ODGERS

Q: Corporate Governance has become the big buzzword of the market, as there is no space for dubious quality, and the
recently. From your perspective, what are the differences CPA will have a very big impact on those who dabble in white box
from 12 years ago and today? product. I believe that this will accelerate the consolidation that is
currently taking place, What I do find concerning is the recent
A: Twelve years ago we were a listed company, with our major
trend of OES/P&A operations crossing over into the independent
shareholders being Dorbyl and the McCarthy Group. I remember
aftermarket, who are using the benefit of low OEM pricing to
spending my life doing reports on corporate governance matters.
penetrate the market, to my mind unfairly.
Most of these reports had no positive impact on the business, but
the best practice characteristics around corporate governance were Q: From a personal point of view, what are the big issues
very useful, particularly the audit committee, the regular board confronting Midas at the moment?
meetings, the internal audits and the trading updates. When we
A: My total focus at the moment is the bedding down of the
delisted we retained the best practice features, whilst throwing out
acquisition by Imperial Holdings, who have taken a majority
the chaff. This allowed us to focus on trading issues, and to spend
stake in Midas. By the time your magazine hits your readers’
executive and management time on improving our competitive-
desks, the transaction should be in the final throes of execution. I
ness and growing market share. We also achieved huge cost sav-
am very excited about this deal, as this transaction should unlock
ings by not sweating the small stuff. With the Imperial deal, we
certain shareholder issues, and substantially improve the financial
remain unlisted but are now a subsidiary of Imperial Holdings.
situation of Midas, and providing intra-Imperial opportunities.
This will bring some additional corporate activity, but not to the
What Midas likes particularly about this deal is that Imperial has
extent of a listing. The additional corporate requirements burden
adopted a non-interference approach, and very importantly, they
does not constitute a big deal, as these past few years we have not
have respect for Midas management who will continue to run the
only kept in place the best practice aspects we brought forward
business, and have respect for the Midas business model. Another
from the Dorbyl days, but actually improved on them.
big issue is the strong Rand. This is putting pressure on the auto-
Q: The emphasis on trading issues is obviously dear to your motive aftermarket, and we are seeing that whilst we are growing
heart. Has this environment changed in the past 12 years? in terms of units, this is not reflected in the financial statements.
This is also having a detrimental effect on the local manufactur-
A: Legislation has started to impact the trading environment. The
ers, with a cost base in Rands, and the pressure to grow earnings.
NCA (National Credit Agreements Act) had an effect on the
industry, and the CPA (Consumer Protection Bill) will have a Q: What do you see as your role in the future?
profound impact on the industry. Not necessarily a bad thing, and
A: I will be CEO of Midas until the end of 2011, with total
in many ways a very positive effect should come through in the
responsibility for the Midas Group and reporting to the Board.
long term, after the short term disruptions. I think this is playing
After that, I will stay on in a non-executive role. But that is still
a role in the move from independent stores and workshops to
two years away, thus I cannot dwell too long on this, as in the
franchise operations. There is also a lot more emphasis on logis-
interim I will have my hands full in satisfying the shareholders,
tics and supply chain management, and the elimination of ineffi-
the customers, the franchisees, the suppliers, our employees, who
ciencies in these areas. The market has also been clearly delineat-
all have a stake in the future success of Midas. This is more than
ed between premium priced branded product and the more value
enough to exercise my mind, but I love the challenge, as opera-
orientated house brands. This market differentiation is not being
tional issues are what it is all about and the front line is where you
driven by us, but by the consumers, who want the choice between
will find me.
A and B. We find that as a vehicle gets older, the motorist is more
inclined to purchase the B product. There is even a C segment for
the really old cars, but Midas does not participate in this segment

December 2009 – January 2010 91

 LIFE GOES ON

Restoring the Status Quo

In May 2009, in the heart of the darkness, ABR decided to introduce its
Life Goes On series. This was in response to the general negativity and
pessimism that was seeping into the very fabric of the automotive indus-
try. The problem that ABR had picked up was that this negativity was no
by Austin Gamble
longer a superficial fear of the unknown, but rather that it had penetrat-
ed the psyche of practically everyone, from the chief executive through
to the tea lady. Life Goes On was a psychological call to arms, and ABR roped in Austin
Gamble to weave his words of magic. Serendepitiously, Austin was assisted in his endeav-
ours by two optimistic presentations from General Motors and Ford in the same month,
and this served as the base for a series of increasingly upbeat articles. Now, six months
later, whilst we have not gone full circle, we’ve taken the first careful steps to recov-
ery, and Austin can toast some of the “green shoots”. We’ve also asked Richard
Macaskill to look at this issue from an economic perspective, as outlined by Cees
Bruggermans in a recent address to the industry.

Steven Koch Hal Feder Nick Reilly Jean Francois Bacos

G
M is clawing its way back from the brink, and this was
outlined by Nick Reilly, International Operations
President and GM Vice President, during his light-
ning visit to SA in mid September. Nick pointed out
that GM is number one in China, the world’s biggest market, and
is aggressively pushing ahead with its alternative fuel vehicle pro-
gramme. GM has also not cut back on its R&D programme,
which consumes US$7,5 billion per annum, with the only differ-
ence that it is now getting more bang for this particular buck.
Reilly assured us that GM will be ready for the global upswing,
and at the same conference Steven Koch, then retiring GM
President of African Operations & GMSA Managing Director,
confirmed that GM is in South Africa for the long haul. He said
that GM’s regional strategy was to be “a coalition of one”, and that
come what may, “we’ll be the last OEM standing”. Brave words,
but said with conviction. This is what is required for the industry,
some backbone. A delightful little soufflé of optimism, but the
cherry on the cake came during Ford South Africa’s media break-
fast on the 3rd November, when Hal Feder announced Ford’s
global third quarter results. Hal commemorated the occasion by
wearing a green tie, to celebrate the swing from red figures to
green figures; green shoots indeed. Ford celebrated a pre-tax prof-
it of US$1,1 billion, and the really good news is that this profit
came from all the regions. North America was particularly gratify-
ing, with a US$357 million operating profit. This all translates
into improved cash flow and a pervading sense of optimism that
Alan Mulally’s “Turbo Machine’ is getting better, and moving for-
ward. The only dark spot was the Volvo results, but even these are
getting better. Ford may be talking to interested parties, but
maybe they should imitate GM, who on second thoughts have
decided to hold onto Opel. This Swedish marque has such a good
heritage, that it may be better for Ford, to paraphrase Volvo’s
singing Scandinavian cousins, to revaluate and to “take another
chance on Volvo”. As long as it’s not their Waterloo, but let’s not
get into that pernicious pessimistic mode.
On Friday, 6th November, it was Peugeot South Africa’s turn to
show confidence in the future. Displaying their range of commer-
cial vehicles to their media, and predicting better things to come,
it was good to hear MD Jean Francois Bacos say that Peugeot saw
South Africa as a growing market, and that apart from South
Africa being a good testing ground from a development point of
view, it was the niche markets that provided opportunities for
Peugeot in their commercial vehicle endeavours. At about the
same time as the Peugeot presentation, Chrysler Group LLC, par-
ent company to Chrysler South Africa (Pty) Ltd, importers of
Chrysler, Jeep and Dodge vehicles as well as MOPAR parts and
accessories, held a comprehensive press conference at their Auburn
Hills headquarters in Michigan. The Group divulged an unprece-
dented detailed future five-year plan including both business and
product aspects going forward to 2014. The good news for South
Africa is that changes are not anticipated in the current Chrysler,
Jeep and Dodge brand offerings, with the promise of a range
expansion. Chrysler’s local dealer network has expanded over the
last three years adding some seven new sales outlets to reach a total
of 35. This represents a clear commitment by the dealer body to
build and fund ongoing Chrysler Group expansion in the local
market. Life does indeed go on.

92 December 2009 – January 2010

 LIFE GOES ON

A New Sunrise
In the October issue you were left with a slight teaser in one of ABR ‘s
Buzz items – a brief article titled Down, But Not Out was concluded with
the phrase “Life Goes On.” Down, but not out explored a topic worthy of
much more space than it received, that of the economic recession – or, more
accurately, the economic recovery. That’s right, Cees Bruggermans, chief
by Richard Macaskill economist of First National Bank, spoke not about how bad things are, or
even about how bad they have been, but rather about what the path to eco-
nomic recovery is going to be like for South Africa. This fact makes it a very apt topic for
this month’s Life Goes On column because life does indeed go on, and whether it is rainy
or sunny outside, whether we are in an economic downswing or upswing, bad time or good,
we all need to keep moving forward in spite of it.
“I have titled my presentation Catching collapse, worse in many places, like
the next wave,” commenced Brugger- Germany, which experienced a 25%
mans, starting on a positive note immedi- industry collapse due to the fact that they
ately. One thing Bruggermans made clear are so highly specialised, and as
is that before we can see where we are Bruggermans put it, “The greatest reces-
going, we must first see where we have sion in 80 years was borne.”
come from, and to do that we need to
understand why we had an economic cri- We all know what happened during the
sis in the first place. “It was the failure of recession, and it is probably not some-
the collective imagination of some very thing worth musing upon. While it is vital
bright people,” he joked. He further that we learn from the hard times, it is not
emphasised two major mistakes that peo- vital that we linger on them. What is
ple tend to make, one of which is that important though, is how we drag our-
people sometimes think it is hard to break selves from the situation in which we cur-
a system when it is in fact very easy, and rently are.
the other is that sometimes people think it
is very easy to break a system when it is “What it really took was someone with
actually very difficult. The latter is the power,” noted Bruggermans, “to say that
important one, as this is the mistake peo- this will not stand.” This person was Ben
ple made in forming their attitudes Bernanke, chairman of the Federal
regarding the economic recession. “It is Reserve Bank. “I was not going to be the
actually very difficult to destroy the inter- world’s income. The sub-prime lending Federal Reserve Chairman who presided
national financial system,” stated crisis was, however, a major contributing over the second Great Depression,”
Bruggermans. As discussed last month, factor to the recession and the sheer Bernanke said. And with that statement,
people will always come up with new ways depths the economy was plunged into. the road to recovery had been embarked
of making money, but these will be the What people did, was panic, and as upon. Bernanke had the power to make a
first to fall away during times of recession. Bruggermans joked, “When we panic, we difference, and that is exactly what he did.
“The stress-tested, residual innovations do it in style.” This panic led to a debt spi- He started by guaranteeing the banks in
from the past thousand years are what we ral, which caused loss of trust and in turn order to restore trust, after which arranged
are left with,” noted Bruggermans. The loss of stability, loss of solvability and ulti- takeovers were put in place to restore solv-
sub-prime lending crisis was one of the mately the loss of credit flows. ability. New capital was injected to
newer methods of making money, and Bruggermans said that according to esti- improve solvability and interest rates were
this is why it fell away so dramatically. It is mates, wealth loss during the recession collapsed to kick start credit flows once
important to note that this was not in fact was somewhere in the region of $3 – 4 again. And that is exactly where we stand
the cause of the recession though. The trillion worldwide. This refers to paper, or today. It is important to remember that
world was already heading into a recession financial losses, and while the panic may the recovery is not a V-shaped curve
when this happened. The economy is a have been a human phenomenon, though. There is no sharp kick after which
cyclical thing and, as such, there will Bruggermans commented that “the dam- everything is great again; instead it is U-
always be upswings and downswings; it is age was very real.” 30% seemed to be the shaped, it is a gradual transition, a slow
the natural economic cycle of the world. magic number during the recession – this transition, but a transition to the positive
was approximately how much production nonetheless. We are not out of the woods
Pre-Lehman, as it was referred to on the was cut across the board, and this meant by any means, but it seems that at last, we
day, the economy was already weakening. that people became very defensive in the have found the map that will eventually
Oil had hit almost $150/bbl, and this way they handled their cash flow. There lead us out, and back into the sunshine.
took approximately $2 trillion out of the was almost immediately a 16% industry

94 December 2009 – January 2010

 Market Research

Quality, Service, Satisfaction

– the Manufacturers Respond

The Mercedes-Benz E Class had a phenomenally low 33 problems per 100 vehicles in the first few months of ownership by obviously
ecstatic customers, as indicated by the Synovate Quality Awards.

Two important market research survey results were announced early in November
2009, with both surveys indicating that companies are beginning to respond to the
needs of their customers. From an automotive perspective, the results indicated a
good match, with one notable exception.

Q
uality, service, satisfaction, and other relevant criteria
go hand in hand, and this has been validated time and
time again by market research and the various awards
that are dished out to acknowledge this are gratefully
accepted by those companies that strive to meet and even exceed
expectations. The predicament for these companies is that each
time a company ups its game, the expectations go higher and
higher, with the cycle becoming both virtuous and vicious.
Virtuous in that standards continue to improve, which is good for
the overall health and sustainability of the company; and vicious
in that it is a cycle that never ends, and a treadmill that just gets
faster and faster, with no letup. Such is the customer service
conundrum. There is no room to hide, because customer
C.A.R.E. means exactly that, Customers Are Really Everything.
To the awards. First to the plate was Ask Afrika on 3rd November
at the Venue, Melrose Arch, with the Orange Index 2009 awards.
The Orange Index rates service excellence across brands and
industries, which is instructive in itself and a candidate for a full
blown article all by itself. ABR was particularly interested in the
automotive category results, with Audi taking first spot, followed
by Toyota, Mercedes-Benz, BMW, Mini, Nissan and Volkswagen.
Some glaring exceptions (which ABR shall investigate further),
but on the whole the usual suspects are there, but Audi does sur-
prise because at the Synovate Quality Awards on 9th November
down the road at the Campus, Bryanston, Audi was practically a
no show, with only the Audi A4 getting 3rd spot in the medium
passenger vehicle segment, and the other models performing quite
badly. It is accepted that Ask Afrika is all about service excellence
whilst the Synovate survey is all about quality, but as per past
experience, the two should correlate. As previously mentioned,
ABR shall dig a little further into this with future articles.
Looking at the Synovate results, it is clear that automotive com-
panies have responded magnificently to their customers in terms
of quality. In 2001, the average number of problems per new car
was 182 per hundred vehicles (1,82 problems per vehicle). In the
2009 survey, this has dropped to 93 per 100, less than one prob-
lem per vehicle! And the majority of those problems are squeaks
and rattles, electrical hitches, brakes and handbrakes. Hardly a
serious mechanical problem in sight. The overall winner was the
Mercedes-Benz E class, followed by the Mercedes-Benz C class,
then the Mercedes-Benz A Class, which was closely followed by
the Mercedes-Benz A class, thus it was no surprise that Mercedes
took top spot for the best local plant manufacturing passenger
vehicles, and the top spot for best luxury passenger car brand
overall. Audi didn’t come close, which brings us back to the cor-
relation question. As a matter of interest, Toyota and BMW took
second and third in the local plant category, and Volvo and BMW
took second and third in the luxury brand category. When it came
to best volume passenger car brand overall, Mazda and Toyota tied
for first place, with Peugeot taking third spot, a significant
improvement on past performances. The two vehicles that took
the two bottom places were the Citi Golf and the Fiat Palio, both
whose days on the showroom floor are numbered. This confirms
what they told you in business economics; that quality comes
from two areas: design and manufacture. These are old designs
with tooling about to give up the ghost, so the odds were stacked
against them. In the seventies and eighties they would have been
vying for top spot, but now time and technology has caught up
with them. Old war horses that are now going to pasture, with
their heads held high.
Go to www.abrbuzz to get the detailed results.

96 December 2009 – January 2010

 Burford on Brands

A reliable
CITIzen
Normally this column discusses brands, as in Toyota, Porsche, Alfa,
and so on. This time we’re drilling down a bit and featuring Volksie’s
by Adrian Burford Citi, a car which has just been discontinued but certainly qualifies as a
brand in its own right.

I
grew up in the Citi Golf era. In fact, the Citi debuted in the
year (1984) I legally qualified to drive – not that
I wanted a front-wheel-drive shopping trolley
with bright ‘Mondrean’ colours: I had my eye on
a rotary-engined Mazda Capella with a very loud
exhaust and the ability to be driven very sideways. But
most of my school mates – at least the smart ones with
clear-headed parents who had never smelt hot oil while
drinking cold beer on the cheap seats at Kyalami – had
been given hand-me-down 323s, Corollas, Y-series
Datsuns and of course early Golfs. It was ideal student fare:
practical and economical, albeit rather dull. Volkswagen’s
marketing people saw the opportunity in this and because a
bigger and significantly more expensive Mk II Golf was on
the way, the stories goes that they hatched a plan to stay in
that student/first-time buyer market by relaunching a ‘new’,
stripped-out Mk I to be called the Econo Golf. way to one-piece side glass, tail lights grew larger as did the petrol
tank, and (from early 2009) you could even have a Citi with an
Then the advertising people were brought into the loop and they airbag. The brakes, traditionally one of the car’s weakest points,
said: ‘hmmm... kak idea: why not rather make it youthful and were improved though not by much!
funky and paint it in bright primary colours and fit it with white
bumpers and white wheels and make it a teeny bit more expensive There were myriad special edition models, including the Sport
and call it the CitiGolf? So they did, and no one looked back for (with a 1.8-litre engine) Rhythm, Storm, Blues, Deco, Sonic and
a quarter of a century. even a Bafana Bafana version. The hottest were the CTi (82 kW)
and the 90 kW Citi R. And let’s not forget the Shuttle and Chico,
It was a stroke of genius but even the gurus underestimated its hire company fodder and maybe not all that far from the Econo
longevity and relevance. The forecast in 1984 was that they would Golf concept...
sell about 300 per month and the lifespan would be five years at
most. In July this year 1 630 Citis were sold, just a month before The final 1000 have simply been called the Citi MkI and will sell
the last and 377 484th one came down the line. for R113 500 (a far cry from the R7 630 which the base model
cost in 1984) but they will benefit from a quarter-century of
There probably aren’t many South African families that haven’t development and will be generously-specced and individually
owned a Citi and it has become the de facto entry-level car in this numbered. Two of these will join other Volkswagen classics on
country. Simple, soundly engineered and cheap and easy to main- permanent display at the Autostadt, the Volkswagen Group
tain and repair, an entire industry has sprung up around it. Being Museum and Brand Expo in Wolfsburg, Germany and at the
popular with the youth, every second Citi boasts tinted windows, Volkswagen AutoPavillion brand heritage centre in Uitenhage.
lowered suspension, a rowdy exhaust and a set of mags. Being
light means the larger-engined versions are very rapid and there is Late in its life the Citi took some flak for being ‘unsafe’. Sure, it
no shortage of seriously fast ones around. It has also given dozens was seriously old but it was also fundamentally a sound design
of drivers an ‘in’ to motorsport. and even in the early 1970s Germans were well aware of crumple
zones and the like. It also handled in a predictable manner with
While it remained largely unchanged for much of its life, by the suspension which isn’t vastly different in concept from some cur-
late-1990s Volkswagen South Africa started a programme to rent-generation cars. While it doesn’t make the grade in terms of
address its shortcoming. Ventilation was improved, the dated passive safety and brakes when compared to 21st century offer-
ergonomics were helped dramatically by the Polo-esque interior ings, the fact remains that it put hundreds of thousands of South
and a repositioned gearlever, the old-school front quarterlights Africans on the road. If ever a car was right for the times, it was
(which made the exterior mirrors pretty useless) eventually gave the Citi.

December 2009 – January 2010 97

 Vehicle Evaluation

A Capable
by Howard Keeg
Commuting Vehicle
In August 2009, Suzuki introduced its fun and funky Alto subcompact vehicle
to the media at a launch in Bloemfontein. The initial impressions were good, but
I waited until I got the car for a week, before giving it a full evaluation. This
duly happened, and I am happy to report that this little car stayed true to its
promises during the week that I had it.

T
his truly impressive little car, with a rev counter that goes
to 8 000 rpm, but does not allow you to go beyond 6
500 revs, really delivers the goods as an easygoing com-
muter vehicle. It will not suit a family, nor a rep with a lot of lug-
gage to lug around, but to go from A to B as economically as
possible, and with low CO2 emissions, it sure is a winner. I
drove 550 km on its small petrol tank, all city driving, and still
had a quarter tank left when I reluctantly parted with a vehicle
that was growing on me. It was the realisation that with a small
sacrifice to the comforts and add-ons that a bigger car offers, one
could still get around nippily and easily, and at a significantly
reduced fuel bill, that got me thinking that maybe we as a species
have gone beyond the pale. I commute 90% of the time all
alone, and to drag an extra few hundreds of kilograms, and some
superfluous air in the cabin, will one day appear to be totally
ludicrous to a more evolved homo sapiens, who will look at the
denizens of planet earth in the early part of the 21st century as a
particularly stupid and selfish knuckle dragging species. The
future anthropologists/psychologists will also spend a lot of time
in analysing and pontificating on the incredibly low levels of self
esteem that caused such aberrant behaviour. Many PhD’s will be
earned on the back of our Neanderthal type conduct. And we
shall deserve the opprobrium. In the midst of a global warming
crisis, we have stuck to our profligate ways, and the debate in a
few decades time will focus on why we still had our heads in the
sand, with our backsides in the leather seats of mobile dinosaurs.
It is truly a cerebral paradox, an enigma wrapped in a riddle.
When will we reach the tipping point? Next year, or in five years
time, or even later? No one knows, but it is clear that we shall
not do it alone. It will require some disaster or government leg-
islation to change our Malthusian habits. As a modern day Marie
Antionette would be inclined to say, “Let them drive Altos”.

The interim solution to our commuting and

environmental crisis is under our noses.
Who will take the lead in changing our
nasty habits?

98 December 2009 – January 2010

 Two Wheels

The Sting in the Tale

Goedkoop is Duurkoop must be one of the most appropriate and accurate axioms ever
invented. It is a maxim that is confirmed over and over again, every minute of the day
somewhere in this world. This has been going on since time immemorial and yet, as I
write this, some idiot (used advisedly) is perpetrating this folly, either at a roadside
stall, or an antique shop, or an auction house, or a vegetable counter at Pick ‘n Pay,
or a motor spares shop, or a motorcycle dealer, or even through the purchase of a
pirate DVD at the robots. The pirate DVD is particularly instructive, because you are
running quite a few risks, of buying a dud, or a bad copy, or even been prosecuted
for buying counterfeit product. The list is endless.

Stress Free
City Driving

T
his thought crossed my mind as I listened to a presen-
tation at the Vespa dealership at the Design Quarter in
Fourways, Johannesburg. The premise of this presenta-
tion was to not just look at upfront costs, but to look
at the costs over the life of the product, and the lights kept on
going on in my head about my previous skirmishes with cus-
tomers over this obvious observation. In my past life I used to
market and sell clutches to the automotive trade, and it never
ceased to amaze me that many otherwise intelligent people were
happy to buy and fit a “white box” clutch kit which was doomed
to fail prematurely, in anything from one to ten thousand kilome-
tres (it was simply a case of pot luck), rather than procure a pre-
mium quality clutch that was designed to last for 150 000 km
upwards. The discounts on the white box clutches ranged from
30% to 70%, but even if the discount was 100%, it was still
absolute folly, because the labour involved in replacing a clutch
was anything from three to four hours, and in certain Italian psy-
chological experiments, up to eight hours! Labour rates are no
laughing matter, so any perceived saving at the counter was quick-
ly negated once the cheep, cheep clutch gave up the ghost, unless
you could find a fellow idiot (used advisedly) to fit the clutch for
free; and let’s not go into the ramifications about the quality of the
fitment from such a philanthropic fool! I could go further and fill
reams and reams about all the stats revolving around downtime,
loss of hair, induced diarrhoea, and general gemoedsbekakking*
when a vehicle breaks down between Pofadder and Hotazhel, or
on the road running past Diepsloot.
This story is about the Italian Wasp, the Vespa, so let’s get to it.
When the Italians were chewing over what they were to call the
world’s first scooter, they wanted to signify many things – agility,
brilliance, familiarity, forthrightness, attractiveness, reliability,
spontaneity and a certain amount of natural elegance without any
formalism. No, wasp does not do this, but Enrico Piaggio realised
that the shape of his first scooter, with a narrow waist and large
hindquarters, brought to mind the body of a wasp. “Vespa” means
Wasp in Italian, so no other name was considered. A good choice,
it turned out, as the modern interpretation of the association with
a wasp is that the Vespa scooter has a gentle buzz with a sting in
its tail. And for those who go for a cheaper scooter, the sting in
the tail comes in the lifetime costs of the scooter, and not the
upfront costs. Therein lies my article, which in the spirit of ABR’s
Words in Action, does have a sting in the tale.
*And for those wondering, gemoedsbekakking is a wonderfully
descriptive Afrikaans word for stress. Words in Action!

December 2009 – January 2010 99

 Hogg’s Wash
The thought first crossed my mind during the Currie Cup
Final between the Bulls and Cheetahs that today when
teams are equally matched, rugby games are no longer
won by an act of individual brilliance, or a superior fit-
ness regime, or the incisive minds of the coaching staff.
Unfortunately, today rugby games are more often won
through the pernicious mood or bias of the referee and
his assistants, who seem to favour the home team, egged
on by fans driven by adrenaline, nationalistic fervour and
by Gilbert Hogg
alcohol, in equal measure.

Wolf Whistle
T
his thought went from supposition to affirmation dur-
ing the Springboks/Leicester game, and the theory was
rock solid and more like fact by the time Wayne Barnes
blew his wolf whistle after 80 minutes of frustration in
Toulouse, an appropriate name for any visiting team to this decid-
edly one-eyed supporters den. Wolf whistle? I hear you ask.
Because these guys are wolves in sheep’s clothing, without any
threat of sanction as they decimate the hopes of teams, coaches,
and supporters alike. The sheep may represent purity, but I say
bah humbug, and bah, bah black sheep. Let’s first take a look at
the Bulls Cheetahs fixture at Loftus Versfeld. Good old’ Jonathan
Kaplan, he with the natural silver highlight in his hair, got this
game seriously wrong. Someone, who I assume is a Cheetahs sup-
porter, sent me an e-mail the other day with a detailed account
(and pictures which confirm the accusation conclusively) of all of
Kaplan’s errors. Damning indeed, but this e-mail did not even
mention the illegal scrumming method of Gurthro Steenkamp,
for which he got away scot free for the first half an hour of the
game, courtesy of an “experienced” referee and his insomniac
linesman. This had a profound influence on the outcome of the
game, let alone all the other errors. Put this all together, and there
definitely would not have been a celebratory bus ride through
Pretoria. Oh no, it would have been the City of Roses which
would have displayed the silverware.
Next, the grubby city of Leicester played host to a third rate
Springbok side (is Earl Rose Pieter de Villiers’s love child?). Once
again, Gurthro Steenkamp did his illegal boring in, which Stuart
Dickinson gratefully picked up. However, Dickinson, who man-
ages to make all other referees look competent, also picked up
many other things, which only a drug crazed zombie could fath-
om, and nine times out of ten, guess what? went in favour of the
home team. The result? A mediocre English league side beat a
demoralised South African Coloured Invitation XV, who by the
time the final whistle blew, were too scared to even pick up the
ball from a static ruck, so abysmal was the refereeing. But the
piece de resistance was the performance of Wayne Barnes. Apart
from only seeing the imperfections of the frustrated fellows in the
green and gold, he committed the cardinal sin of allowing a bla-
tant off-side French player to steal the ball from the up and under,
which resulted in a try. This was after the Springboks had
absorbed the initial onslaught and were leading 13 – 3 and gain-
ing the ascendancy, and must have been gut wrenching for the
Boks. Together with his penalties against the Bok scrum whether
they were going forward or going back, and every single 50/50
decision going for les bleus, this turned the game completely, and
a fired up French team eventually shut out the doomed
Springboks, who had been reduced to mere spectators by the
whistle of clown prince Barnes.
How do we solve this? There has to be a ruthless examination of
referees’ errors and bias by an impartial panel, and the appropri-
ate punishment. Suspensions, just like the players have to endure,
would rapidly change the behaviour of these home town
favourites. What’s good for the goose is good for the wolf in
sheep’s clothing!

Wayne “Clown Stuart DICKinson Quiet, I’m on the phone.... I got away with it!
Prince” Barnes

100 December 2009 – January 2010

 Vehicle Evaluation

Champ
by Howard Keeg
All You See
You’ve got to hand it to the French. They’ve got style, class, and joie d’vivre. And
they know it. You would also be a little arrogant if you had the Louvre, the Eiffel
Tower and the Château de Versailles. Oh, did I mention champagne and the can-can?
Southern Africa’s equivalents respectively are the loos in Diepsloot, the Hillbrow
Tower and the Zimbabwe Ruins. Oh yes, and sparkling wine and the toyi-toyi. France
also has the Peugeot 308cc, whilst we have the …… ummm.

T
his is what was racing through my mind when I took delivery of the stunning 308cc
from Peugeot’s head office in Linbro Park, and my immediate reaction was to lighten
the inferiority load by going into convertible mode, despite threatening dark skies.
After three hours of blood, sweat and tears, I had the top down (sorry, old joke). No,
a mere 20 seconds later, I was on my way, with air streaming aerodynamically past my bald pate,
and anxiously on the lookout for an Isadora Duncan wannabe so that I could complete the pic-
ture for the close to agog spectators. Someone from above has a sense
of humour, because in a matter of minutes the skies opened, and by
the time I had found a safe place to park, and the 20 seconds to get
the roof back up, I was doing a credible impersonation of a drowned
rat. 20 seconds is a short time, but still inadequate when someone is
pouring a bucket of water on your head. However, I accept that I was
tempting fate, and paid for it. Stupidity may be a more accurate
description.

After this inauspicious and drenched start, things got much brighter
and sunnier, and I had time to appreciate this French beauty in both
coupe and open air versions, and savouring freeway, town and rural
driving. It is simply sublime, and you soon forget that this rather large
car has only a 1600 engine. But not just any petrol engine, a powerful
(110kW) yet refined twin-scroll turbocharged 1.6 engine, with tech-
nology such as high pressure direct petrol injection, which gives plen-
ty of power and torque plus real fuel efficiency. And with a 60 litre
tank, you do not have to visit the petrol station very often, which
pleases forecourt phobes like me. This car has all the bells and whistles that you would expect from a R336 000 vehicle. Sounds a lot,
but in this time of madness when some small B segment cars are going for R200 000 plus, it’s actually a bargain. We do live in inter-
esting times, and in a better economic environment this car would sell well, because it deserves to. Now how do I solve my problem of
car claustrophobia that has befallen me ever since I gave this beauty back?

December 2009 – January 2010 101

 Corporate Conscience

Putting Something Back

Sparepro has been riding the wave of an ageing car parc, and 2009
has been a good year for them. Irrespective of how the year has been,
Sparepro has been building up a tradition, in both hard times and
good times, of giving something back to the community of South Hills,
with many social and charity initiatives put into place by the manage-
ment and staff of Sparepro. Patrick Latouche, General Manager of
Sparepro, says that Sparepro’s philosophy is one of “service”, in all
its facets and forms. Thus, on 28th November, 2009, Patrick and his
staff were hard at work in inculcating this philosophy and “walking
the talk”. A Christmas lunch, with all the trimmings, was served to the elderly folk
from the surrounding community at a municipal hall in Moffat View. ABR was there to
give a pictorial overview of a blessed event.

102
December 2009 – January 2010 103
 Corporate Conscience
Fore a Good Cause

Trysome Auto Electrical Parts

Distributors Held their Annual Golf Day
at the Benoni Lake Golf Course on the
10th November 2009, with all the
proceeds going to charity. ABR was
there to bring you the action.

104
 Fast Wheels

Formula S
No, it is not baby formula. Nor is it a cheap hotel. No, Formula S stands
for Formula Student, an international competition for students from
all over the world, founded in 1981, to encourage students to cut
their teeth, technologically speaking, via the development and manufac-
ture of a single seater racing car. The vehicle is then subjected to
rigorous testing on a racetrack, with the emphasis not just on speed,
by Howard Keeg but on an overall package based on the whole process of car develop-
ment, including design, performance, financial planning and marketing.

T
o replicate the real life experience, the students have to
assume that they have been engaged by a manufactur-
ing entity to produce a prototype car for evaluation as
a production team. The target market is the non-pro-
fessional weekend racer, which requires a low cost, easy to main-
tain, reliable car that has high performance in terms of accelera-
tion, braking, and handling dynamics. The car must also look
good, be easy to drive, and use common parts. With an estimat-
ed production run of 1 000 vehicles per annum, the challenge for
the students is to design and manufacture a prototype that best
meets these goals and parameters. Each year, this team of Rory
Byrne wannabes then competes with other teams to see which
team has the best overall car. In August 2010, the location of this
challenge will be in Germany at the famous Hockenheim race cir-
cuit, and the Nelson Mandela Metropolitan University (NMMU)
will be the first and only team from Africa to participate in this
international event, once again putting Port Elizabeth on the map The project leaders for NMMU Racing, Howard Theunissen
as the South African city with practically every first in sports and Trevor Stroud
events, following rugby, cricket, tennis, bowls, hockey, and many
The competition in Germany will not only evaluate the technical
more. We are sure that windsurfing must be in that group.
aspects of the completed car, but will also evaluate the different
NMMU intends to maintain its presence in international
marketing and sales plans of the competing teams. This requires a
Formula Student competitions, so it is the duty of the country to
multi-disciplinary approach, and NMMU has not taken any
get behind these pioneers in all aspects of support. Last year the
chances, with an all inclusive approach, involving the faculties of
competition was won by the University of Stuttgart, with the
arts; business and economics; education; engineering and infor-
University of Hertfordshire coming in second, and the University
mation technology; health sciences; law and science. Quite a
of Western Australia taking third spot. Since this is NMMU’s first
formidable force, but they can do with even more support, from
attempt it would be stretching it a bit to expect a win, but to fin-
the automotive industry. I am aware that NMMU is talking to
ish ahead of the skaapsteekers would be great (before I’m accused
AAMA, but let everyone get behind our boys and girls.
of being anti Aussie, I must
Anyone who wishes to assist, in any way possible, please contact
point out that some of my
either of the project leaders for NMMU Racing, Howard
best friends are snakes).
Theunissen or Trevor Stroud; howard.theunissen@nmmu.ac.za;
trevor.stroud@nmmu.ac.za or 082 775 8536, 083 419 3707.

106 December 2009 – January 2010

 Answers From page 65
1. 517 000 11. The American Bantam Car Company
2. Peter du Toit 12. F2 in a Cooper Borgward in 1959.
3. Jean Todt 13. 1960
4. BMW, Honda and Toyota 14. Cadillac
5. Bridgestone 15. Ford
6. A Hill Climb 16. 1978
7. Sarel van der Merwe 17. A pink Morgan
8. 8 18. Gene Bosman and Gus Menzies
9. AJS, Norton, Gilera, MV Agusta, 19. 52
Yamaha, Suzuki, Honda, Ducati 20. A car museum.
10. East Germany

What’s the Buzz?

Seen from the highway...

From the west, and from the east...

Is this spring cleaning or is something up! More on this in the
February 2010 issue of ABR.

Answer
from page 35

December 2009 – January 2010 107

 Fast Wheels
SCANDAL RIDDEN FOR-
MULA 1 SEASON CLOSES
Sport in this world suffers from scandals. Either the greed by Roger McCleery
of officials who profess to run things or drugs in the case
of non-mechanical sport, where a lot of heavily disguised
turbo-charging pills or injections help gets results. Motorsport is no
exception, although I must say so far Moto GP and World Superbike
Racing, two of our best sports as far as exciting entertainment for the
fans goes, is scandal free. So far. One thing scandal does with all its
pros and cons is draw attention to a sport.
C
ould we say that Formula 1 is no excep-
tion? Put the rich, influential beautiful
people and the self-interest of politicians
together with the colour, glamour and
exciting noise of factory grand prix cars
and add a few investigative journo’s look-
ing for stories and hey presto - you are in
the headlines. It has happened for years.
We had the President of the FIA, Max Mosley, involved in a sex
scandal that was supposed to rock the very roots of Grand Prix
racing. It didn’t. Given time it went away because nobody other
than his family really cared. So scandal sells books and promotes
ticket sales to events.
Flavio Briatore, the team boss of Renault, who has done great
things for that team and drivers, resigned from his position after
Nelson Piquet Jnr, spilt the beans about a deliberate crash in
Singapore in 2008. Felipe Massa was highly upset about this as this
incident basically lost him his world championship. McLaren with
their $100m fine for using Ferrari IT technology was another one
a few years ago, and so on.
Through all this, Formula 1 will survive and carry on. It will have
a new look but will continue whether BMW, Honda and Toyota
depart the scene or not. Renault is discussing its Formula 1 posi-
tion as we write but basically want out. These teams are all doing
it for themselves and certainly not necessarily for the sport.
Through all this, Formula 1 in the main provided the most unpre-
dictable season in history. Jensen Button winning the Formula 1
Championship in Brazil brought a new happy face to GP racing
along with his team-mates, Rubens Barricello, (sometimes)
Sebastian Vettel, (the next Formula 1 Champion?), Mark Webber,
Fisicella and Lewis Hamilton. Gone are the miseries that used to
occupy the Winners Podium, like Prost and Senna, plus of course
the Finns, who can be forgiven for this attitude, coming as they do
from a country with eight months of a bitterly cold winter and also
the language problem.
Have you seen the joy on the faces of the Moto GP, Superbikes and
the Americans in Nascar and Champ Car racing when they win?
That’s what we would like to see on a Sunday in Formula 1. The
Brawn GP Team under the genius, Ross Brawn, formed only three
weeks before the first Grand Prix in 2009 in Australia, without any
108
fuss or politics led the season from the start and were never head-
ed throughout the year both in the Drivers or Manufacturers
Championship. What a fairy tale story that makes. Mighty things
were expected from the McLaren and Ferrari teams who held sway
in 2008 and were all set to do it at the beginning 2009. But they
were made to look very average until they stopped talking and
started getting some results by adjusting their cars to suit the rules.
Mercedes Benz and Renault engines dominated the scene. Toyota
nearly had the performance but not the results. A messy power
struggle between the FIA and the Formula 1 Teams nearly result-
ed in splitting Formula 1 forever. Cool heads put things on the
back burner given a promise that Max Mosley was giving up his
FIA Presidency. Max has actually done great things for motor sport
and road safety in his 11 years at the top. Now the newly elected
President, Jean Todt, who competed himself at the top level in ral-
lying, has taken over the reigns and we should see Formula 1 tak-
ing on a new look. Todt of course steered Ferrari to its greatest suc-
cesses ever. He knows the goings-on of the sport first-hand.
So what can we expect in 2010? A few teams have departed, four
other teams have been accepted in the line-up with the new owner
of BMW hoping to get a spot. Some technical rules have changed
and refuelling has been discontinued. Nobody has really made the
effort to design cars that are passer-friendly, except on the tradi-
tional Grand Prix Circuits like Silverstone, the Nurburgring,
Monza, Belgium, Brazil, Japan and now Turkey.
The follow-my-leader circuits with brilliant facilities that in some
cases must have cost a fortune to build, remain. But they do take
this world sport to countries that were never thought of before and
have no motor sport history or indeed a motor industry.
To those of you who might have stopped watching Grand Prix rac-
ing or so you say, get to a GP somewhere, sometime in the future,
and you will be thrilled and amazed with the sheer speed, exciting
noise and cornering capabilities of F1 cars with the world’s best
driving talent at the wheel.
Roll on 2010.
December 2009 – January 2010
 Wilde Things

Get Thee to a
Fingal Wilde is back,
with a story he has
been threatening to
write for some time.
He’s back because of an

Nunnery, Sir!
avalanche of requests
from our readers. Both
of them threatened to
pull their subscriptions
if Fingal was not back,
so we have no option... South Africa is a unique country, in many aspects. One of its unique
aspects is the ability of anyone on wheels to buy a good portion of
one’s monthly requirements at the robots. A dangerous pastime in many
respects, and frustrating for those behind you while you process the
procurement requirements, covering such things as haggling, entreat-
ing, and in the case of pirate DVD’s, furtive exchange. Very strange
indeed, but what is even stranger is that the traffic authorities allow
this extremely dangerous pastime, whilst spending an inordinate amount
of time and effort in nailing the lunatics who dare to go 72kph in a 60
by Fingle Wilde kph limit in their modern marvels of safety. Diarrhoea inducing indeed.

B
ack to the subject of robot shopping. Of course, many of those hassling you at the robots are not trying to sell you something.
Some are begging, and some are just trying to offload pamphlets for which they are paid a pittance, considering the safety
hazards and the environmental dangers. My sympathies lie with the pamphlet purveyors, so I always endeavour to relieve them
of their burden, because I will read almost anything. I have even been known to read telephone directories in lonely hotel
rooms when nothing else is available. The flavour of the month in robot literature seems to be some outrageous promises made by a
motley crew of professors and doctors, relating to penis size, lovers, business success, bad spells, weight loss, and much much more. These
guys, who go under a variety of exotic names, are seriously impressive all-rounders. Monikers such as Prof. Sampoa, Dr. Mama Osman
& Dr. Ali, Prof. Wakho (very appropriate) and Dr. K.K. Victor abound. But one small pamphlet stands out (excuse the pun) from the
rest. The name is also different, resonating legal partnership or high flying consultants; Tony & Associates, and it addresses both men’s
and women’s needs. One solution proffered is the promise to solve virginal discharge. This got my mind racing in all directions, and my
first thought was that it must have been a very naughty nun! And it is amazing
how far the mind can wander when so severely provoked. For some reason I got
round to Hamlet and Ophelia, and the realisation that Shakespeare was one
prescient dude, and that he was doing his Nostradamus thing when he put
these words into Hamlet’s mouth; “Get thee to a nunnery, why woulds’t thou
be a breeder of sinners?” You see, ever since I saw the da Vinci Code, I can
unravel any puzzle. Shakespeare was actually talking about Julius Malema.
Ophelia is code for “Odious prick has everyone looking into Australia”.
And Shakespeare was warning us about this Peter Pan fellow. The nun-
nery reference could indicate where nun’s stay, but I prefer the theory
that nunnery was Elizabethan slang for brothel. And he was warning
us that Julius Malema is actually a closet hermaphrodite, who frequents
brothels but fortunately cannot pass on his seriously disturbed genes.
Yes, I know, there is no Pedi word for hermaphrodite, but that didn’t
deter Shakespeare, who is reputed to have had a vocabulary of some
30 000 words, which is about 29 900 more than Julius’ Pedi
vocabulary. Please be assured that this is not a Pedi bashing
exercise, some of my best friends are North Sotho.
In actual fact, according to the sometimes outra-
geously wrong Wikipedia (notice the pedi in
Wikipedia), the American spelling of paedia-
trician is pediatrician because it is a tribute to
the childlike nature of such Pedi luminaries as our
Julius. And pedicure originally denoted, before it was
bastardised to its present usage, that Julius was taking
his foot out of his mouth.

That’s all folks, I have to go. Those two hermaphrodite looking

nurses have arrived to put on my long sleeve jacket, and to take
me back to my nice room with the soft walls.

110 December 2009 – January 2010

 The Last Writes by Baron Claude Borlz

The greatest source of humour and Pathos in

South Africa is the ABR reader:

Some aphorisms to mull over: Suid Afrika se nuwe

1. The nicest thing about the future is
that it always starts tomorrow.
2. Money will buy a fine dog, but only
kindness will make him wag his tail.
3. If you don't have a sense of humour,
you probably don't have any sense at
all.
4. Seat belts are not as confining as
wheelchairs.
5. A good time to keep your mouth shut
is when you're in deep water.
6. How come it takes so little time for a
child who is afraid of the dark to
become a teenager who wants to stay
out all night?
7. Business conventions are important
because they demonstrate how many
people a company can operate with-
out.
8. Why is it that at class reunions you
feel younger than everyone else looks?
9. Scratch a cat and you will have a per-
manent job.
10. No one has more driving ambition
than the boy who wants to buy a car.
11. There are no new sins; the old ones
just get more publicity.
12. There are worse things than getting
popgroep sensasie
a call for the wrong number at 4 am
- it could be the right number.
13. No one ever says "It's only a game."
when their team is winning.
14. I've reached the age where the happy
hour is a nap.
15. Be careful reading the fine print.
There's no way you're going to like
it.
16. The trouble with bucket seats is that
not everybody has the same size
bucket.
17. Do you realise that in about 40 years, * Late Flash... Tiger Woods has applied to
we'll have thousands of old men and join the group
old ladies running around with tat-
toos? (And rap music will be the
Golden Oldies!) No! Say it isn't so!
18. Money can't buy happiness -- but
somehow it's more comfortable to
cry in a Porsche than in a
Yaris.
19. After 60, if you don't wake
up aching in every joint,
you are probably dead!

And new additions to

Murphy’s Law:
Law of Queues: If you change queues, the one you have moved from will start to progress much faster than the queue you have moved to.
Law of Telephones: When you dial a wrong number, you never get an engaged tone.
Law of Mechanical Repairs: After your hands become coated with grease, your nose will begin to itch.
Law of the Workshop: Any tool, when dropped, will roll to the least accessible order.
Law of the Alibi: If you tell your boss that you were late for work because you had a flat tyre, the next morning you will have a flat tyre.
Bath Theorem: When the body is immersed in water, the telephone rings.
Law of Encounters: The probability of meeting someone you know increases exponentially when you are with someone you don’t want to
be seen with.
Law of the Result: When you try to prove to someone that a machine doesn’t work, it will!
Corollary to the Law of Result: When you try to prove to the workshop that your car is playing up, it will perform faultlessly.
Law of Biomechanics: The severity of the itch is inversely proportional to the reach.
Law of Coffee: As soon as you sit down for a cup of hot coffee, your boss will ask you to do something which will last until the coffee is cold.

December 2009 – January 2010 111