page i

Building on a century of achievement iii

A Remarkable Track Record / Salutations iv

Close Collaboration is the Key / Growing the Industry v

The Changing Motor Industry Landscape / “What Interesting Times These Were” vi

An Exclusive Club of Forward Thinkers vii

The Beginning x

The Need for the RMI xi

Who is the RMI? 1

The Dynamic RMI Executive Team 2

The RMI Associations 3

RMI Centenary Dinners 6

Robert Bosch - An Entrepreneur with a sense of responsibility 9

The Dealer Bank 19

There is More to Midas 24

Go Green ….. Go Willard 29

Nissan – a Global Player with true South African Roots 33

Giving Birth to Tonii 36

AutoZone - Creating Synergy 39

Barloworld - 50 years of Change 41

Bridgestone – nearly 75 years of service in the tyre industry 43

Supplying and Nurturing the South African Automotive Aftermarket 45

Federal-Mogul Aftermarket – Champions of the Industry 47

The Grandmasters in Quality Automotive Parts Supply 49

CONTENTS

page ii

Launch Tech Co Ltd 51

Lazarus Motor Company – The humble acorn grows into a mighty oak 53

Taking Care of our own 55

Striving for Excellence 57

“We Do Things Differently” 59

Toyota Continues to Lead the Way 61

Progress over half a century 63

Automotive Aftermarket Manufacturers Association 65

Promoting World Class Competencies 66

Achieving Maximum Productivity 67

Thermal Management Comes of Age 68

The Power of Three 69

Life Begins at 40 70

Tri-Nation Alliance 71

Castor Oil Started the Castrol Success Story 72

Clear Vision Ahead 73

From F Hoppert to Diesel-Electric 103 Years Service to South Africa 74

Leaders in Ignition Engineering 75

Formidable Combination of Drive, Innovation and Skills 76

Econometrix - Road Maps for Future Business 77

Equipment that keeps us Moving Forward 78

Ferobrake: More than a Century of Service 79

Getting Exided About Batteries 80

Focused on Commitment, Dedicated to Excellence 81

A Head Above the Rest 82

As Much a Part of SA Culture as Braaivleis and Sunny Skies 83

Support and Service for Durban’s Harley Owners 84

Henkel – a Brand like a Friend 85

The Royal Seal 86

To the World with Perfection 87

McCarthy – a Major Player with a Proud History 88

MISA : The Trade Union of Choice 89

Permatex – 100 Years of Innovation and Leadership in Chemical Tools 90

A History of Exceptional Service to the South African Auto Industry 91

The Prufe of the Pudding 92

Tenneco on Top of the World 93

Timken Celebrates 77 Years in South Africa 94

The Fusion of Passion and Excellence 95

Making Traxx 96

In Safe Hands 97

RAM Belts & Hoses - Standing the Test of Time 98

Z is for Zoom! 99

Index 100

RMI Code of Conduct and RMI Objectives 101

CONTENTS

page iii

MESSAGE FROM THE CEO

As I write this, I reflect on

how the industry has re-

cently gone through a

traumatic period, facing

economic challenges in ex-

tent not experienced before. The last year

has seen significant consolidation and ra-

tionalisation among dealerships and net-

works, as the industry has girded its loins

and looked for ways to weather the crisis,

with a commitment to come out of the

crisis stronger and in a better position to

weather future shocks. The good news is

that the economy is starting to recover,

and the RMI has played a role in ame-

liorating the situation by researching all

aspects pertaining to turbulent economic

and market conditions, and by providing

practical advice for workable solutions to

its members. We also realise that we as

an industry are not alone in these en-

deavours. And South Africa is also not

unique in having to face the vagaries of

economic cycles. The realities we face are

the realities the world faces, and these re-

alities are not only impacting on the au-

tomotive industry, but on every facet of

commerce and society, throughout the

globe. Our country has also recently

gone through a period of political insta-

bility, which added to the tangible hard-

ships impacting the economy, and this

combination of uncertainty and adver-

sity negatively affected general business

and consumer sentiment. This is not

unique, and it has happened many times

in the past, and we have always pulled

through. This knowledge sustains and re-

assures us. As I said in my executive ad-

dress last year, “as always, these things

shall pass. In these dark times, we need

to accept a universal truth, that of

change. We cannot stop it and we cannot

cling to old ways.” The only difference

to past challenging times is that the rate

of change we face is now at an unprece-

dented pace. Advances in technology

and its application are incalculable and

nigh impossible to predict. The RMI is

striving to up its game and to advance to

a level of proactive engagement where

solid research and effort leads to practical

solutions that create optimal solutions

for all its members. Our track record in

implementing solutions speaks for itself,

but we realise that we cannot afford to

drop our guard, or to take our eye off the

ball. It is imperative that we increase our

local skills base and that we retain quali-

fied technicians by making all the aspects

of our trade highly regarded and profes-

sionally relevant. We must recognise the

changing global dynamic and address the

emerging east as a priority consideration

in our business models. We also have a

responsibility to transform the industry

into a more representative demographic

without throwing the baby out with the

bath water. Let us roll up our sleeves and

prepare our industry for the next 101

years, side by side!

Jeff Osborne

CEO of the RMI

Building on a century ofachievementThe RMI has achieved much in its one hundred and one years’ existence. It is not easy to unify a diverseconglomeration of automotive industries and personalities, particularly in an industry that has had morethan its fair share of larger than life characters and a wide range of ambitions and egos. However, theRMI has managed to achieve the practically impossible with very little exception over its rich and storiedhistory, delivering on its vision of service, quality and professionalism. This is indeed an indication ofthe quality of its founders and the successive torch bearers. Our mission today and in the future is toextend and elevate these aspirations to the highest levels amongst our members, and to broaden this dynamic reach to all corners of South Africa and to all segments of our society, from the multinationalmanufacturers, importers, distributors and dealers, government and big business, right down to the customers and consumers who have sustained our industry for a century, and will continue to sustainthese valuable service providers for many years to come.

page iv

In 1908, Sir Albert Atkey formed theSouth African Society of MotorTraders, the first forerunner of the

RMI. There were 17 Johannesburgmotor traders who made up the mem-bership. Today, 101 years later, the RMIboasts a constituency of nearly 7800members across South Africa in 13 different constituent associations. As an organisation, we are of the sameera as many remarkable feats of history.At the beginning of the 20th Century,

Henry Ford was determined to build a simple, reliable and affordable car. On 1st October 1908, the first model T Ford rolledoff the production line in Detroit in the USA. The purchase pricewas $825, with 10 000 being sold in the first year. The second innovation at the same time was the assembly line, and while notconceiving the concept, Henry Ford perfected it. It is hard to imag-ine how this was achieved 100 years ago without the technologywe have at our disposal today. Many other interesting events happened at the beginning of the 20th century. The RMI was already 10 years old when Nelson Mandela was born.

Throughout the very rich history of the organisation, members’needs as well as the macro-environment have driven its strategicdirection. We have a remarkable track record, and we have notonly made significant progress in recent years, but have continuedto attain outstanding achievements in many facets of our business.The organisation has never been stronger or more stable. Assur-ance and commitment to the interests of the motoring public interms of a code of conduct honoured by all our members, is whatstrengthens the RMI’s brand and reputation. The motor industryhas always been a barometer for the growth or decline of the econ-omy. There are huge challenges currently facing our membershipin terms of the prevailing economic climate. The future requiresmore focused business efficiency, innovation and resilience, andthe same kind of endurance that has carried the RMI through for100 years. As President, I am immensely honoured to be associ-ated with the RMI at the time of its centenary. As a member, I ameven prouder to carry through its values and commitment to theconsumer.

Ferose Oaten (Mrs)

President of the RMI

PRESIDENTIAL REFLECTIONS

A Remarkable Track Record

There is no doubt that the

motor industry with all its

challenges, remains an excit-

ing industry to be involved in. It is

dynamic and multifaceted, with

many stakeholders. The role it plays

in both the economies of countries as

well as the lives of people, is signifi-

cant. No wonder then that it is such

a high profile industry, also here in

South Africa. The customer facing re-

tail sector in particular, tends to enjoy a lot of attention. It is

in this regard that the RMI, and its predecessor the MIF, have

played a valuable role over the past 101 years. I am proud of

the manner in which our organisation has consistently pro-

jected the image of our sector, and how they have represented

us on many national forums over the years. I salute the many

office bearers and volunteers who distinguished themselves in

the quality of their service to the RMI, for the benefit of all

its members. The ability of our sector to speak with one voice

has definitely stood us in good stead when it comes to matters

of common interest. So many examples can be given where

the RMI successfully negotiated changes to legislation, regu-

lations and policies. From my perspective I can state with con-

fidence that the RMI has succeeded in making our businesses

better. It is certainly deserving of our continued support.

I found my tenure as President of the RMI a very stimulating,

learning experience. At McCarthy’s we have always taken our

broader industry responsibilities seriously and I was therefore

privileged to have followed in the footsteps of legends like

Errol Richardson and Theo Swart. Our commercial director

Lazola Madikizela, who is serving on the RMI board at pres-

ent, is continuing this McCarthy tradition. It was also a spe-

cial privilege working with a most professional board that gave

me wise counsel, and a committed executive team under the

leadership of Jeff Osborne.

What about the future?

I am hopeful that we will see an improvement in trading con-

ditions, soon. The next phase of growth is likely to start early

next year. Due to the nature and complexity of our industry

we will continue to face many challenges in the future. For

this reason the need for an organisation like the RMI will only

increase. “Unity is strength” has never been more appropriate.

The RMI under the capable leadership of Ferose Oaten can

certainly count on my support as well as good wishes for the

next 101 years!

Brand Pretorius

Immediate Past President of the RMI

Salutations

page v

A NOD FROM NAAMSA

NAAMSA congratulates the Re-tail Motor Industry Organisa-tion (RMI) on its positive

contribution to the interests of con-sumers and the broader automotive in-dustry in over 100 years’ existence inSouth Africa. The specialist role and in-terface of the RMI between vehicle man-ufacturers, importers and distributors ofmotor vehicles and the industry’s con-sumers has added tremendous value overthe past century and remains critically

important for the future growth and development of the entireSouth African automotive industry. Close collaboration betweenall role-players in the domestic automotive industry is key to thefuture sustainability of the industry in South Africa. The SouthAfrican motor industry incorporates the manufacture, distribution,servicing and maintenance of motor vehicles and plays a vital rolein South Africa’s economy, contributing during 2008 about 7,3%of the country’s R2 283 billion Gross Domestic Product (2007: R1 995 billion). Since the implementation of the MIDP in Sep-tember 1995, the South African automotive sector has grown instature to become the leading manufacturing sector in the country’seconomy. A compounded annual growth rate of 27% in rand valueterms for completely built-up vehicles (CBUs) and automotivecomponents exports has been achieved from 1995 through 2008.Total automotive industry exports (CBUs and components) in randvalue terms increased more than twenty-two fold from the

R4,2 billion in 1995 to R94,2 billion in 2008. Close on 1,5 millionSouth African manufactured vehicles have been exported since1995 to date. The export growth has been accommodated by majorinvestments in best practice assets and state-of-the-art equipment,skills upgrading, productivity gains and upgrading of the wholeautomotive value chain. Currently first world economies are in themiddle of severe recession as a result of the global financial andeconomic crisis. This is having a negative knock on effect onemerging market economies, including South Africa. Going forward, the South African automotive industry will have to continue focusing on significant improvements in its internationalcompetitiveness in respect of production costs, without compro-mising high quality levels.

The future and fate of the South African automotive industry, itscontribution to the country’s economy as well as the country’s con-tribution to the continent will largely be determined by the effec-tiveness of responses to global pressures. The positive developmentsand achievements in the South African automotive industry, since1995, have been driven by a supportive automotive policy regime.The Automotive Production and Development Programme(APDP) to replace the MIDP from 2013 onwards should enablevehicle manufacturers and their suppliers to plan strategically forthe future and to finalise investment decisions with confidence andcertainty. It should also enable various manufacturers to tender forthe production of new models in South Africa.

David Powels

President, NAAMSA

Close Collaboration is the Key

The National Association of

Automobile Manufacturers of

South Africa (NAAMSA)

salutes the Retail Motor Industry

Organisation (RMI) on over 100 years

of outstanding service to the automo-

tive industry and its customers in the

areas of new and used vehicle sales as

well as vehicle servicing, maintenance

and repair. Over the past century, the

South African motor industry has

developed considerably evolving progressively from initially an

importing sector into an increasingly self-sufficient industry

comprising vehicle manufacture, distribution, servicing and

maintenance. As is the case globally, there is a large degree of

interdependence amongst all the role-players in the South

African automotive industry. In case of South Africa, however,

it is significant to emphasise the constructive way in which

industry, labour and government co-operate to maximize the

contribution of this key sector to the South African economy.

Both the RMI and NAAMSA are trade organisations commit-

ted to the principles of free enterprise and the promotion of the

interests of the broader South African motor industry. Both

organisations have built up a constructive working relationship

in matters of mutual interest and this in turn has provided a

strong platform to support the further growth of the industry

in future years.

NAAMSA looks forward to continuing to work with the RMI

to grow and develop the industry and to enhance the welfare

of our customers.

Nico Vermeulen

Executive Director, NAAMSA

Growing the Industry

page vi

NAACAM was established inPort Elizabeth in July1980 byrepresentatives of twenty

major automotive component manufac-turers who felt the necessity for a strongorganisation to represent their interestseffectively to Government, vehicle man-ufacturers and other authorities. Mostof these companies had been membersof the Motor Industries Federation, theRMI’s predecessor, but this divorce wasamicable, and happened with the MIF’s

understanding of the necessity. What interesting times these were.The car market was growing from strength to strength and aboutto reach a peak that would not be surpassed for 23 years! Manda-tory local content had just been extended to include light commer-cial vehicles in addition to cars, and there were talks of political sanctions against South Africa which would have requiredeven more local content. No wonder the component manufacturersdecided to flex their muscles! By 1985 there were over 100 membercompanies, mostly locally-owned, and the Association decided tomove to Gauteng, which had taken over from Port Elizabeth as themajor automotive producing region. To be honest, up until thattime the component manufacturers had it fairly easy, because since1960 there had been mandatory local content, and so a number of companies had virtual monopolies and ran their businesses

accordingly. The first dark clouds came in the mid-eighties withthe developing nations crisis which dramatically weakened theRand and pushed vehicle prices up. The resultant rethink of eco-nomic policy caused government in the late eighties to change thelocal content measurement from weight to value and allowed exports to count towards the targets, the so-called Phase VI of theLocal Content Programme. Suddenly, suppliers had to think aboutefficiency and costs a lot more seriously, as an element of compe-tition began to creep in! To make matters worse, the Phase VI period coincided with the toughest years in memory for the vehiclemarket, with sales back to levels last seen twenty years previously,and 38% below the 1981 peak. As a result of these factors, employment by component companies fell to their lowest recordedlevels – less than 50 000 compared to over 80 000 in the early ‘80s.Fortunately the replacement market remained strong, and the establishment of fitment centre franchises around the country gavea much-needed boost to the parts market and strengthened ties between NAACAM and the RMI. Since then the MIDP and theglobalisation of the South African industry have changed the faceof the market, and with both NAACAM and the RMI havinggrown and remaining strong, and working together to ensure futuregrowth for another 101 years!

Roger Pitot

Executive Director, NAACAM

NAACAM NOTES

‘What interesting times these were’

The RMI's start to the organisa-tion's second century has founditself in a very difficult economic

environment. Local production ofmotor vehicles in 2009 will in all prob-ability be less than 350 000 vehicles, afar cry from the heady heights of 700000 we have been experiencing in theimmediate past. The industry is goingthrough a severe correction, and unfor-tunately due to a lack of stimulus fromthe government we will just have to ride

out the cycle. This the industry will do, we have done it on a fewoccasions over the last 30 years, and I have no doubt we will do itagain, but it will bring about a changed motor industry landscape.In terms of the immediate future, component companies and RMImembers, will need an even closer relationship between NAACAMand the RMI. Component manufacturers need to supply the af-termarket more aggressively to offset the falling demand to OEMsand the challenge to component exports caused by the strong localcurrency. The good news is that the number of cars on our roadshas swelled significantly over the last five years to over eight millionvehicles, all these vehicles need to be serviced, and a very importantthrust for the component industry is to encourage South Africansto buy local components. The country urgently needs to supportour local industry, not only does it help to create and maintain em-ployment, the country’s primary need, but South African compo-

nents are a guarantee of quality and ensure safe motoring. Importedcomponents from some countries are a safety concern, with attimes the public and members of the auto service industry sacri-ficing quality for price and therefore putting lives at risk on theroads. It is vitally important during these tough times for the SouthAfrican industry, NAAMSA, NAACAM and the RMI to workeven closer together to ensure that our industry pulls through thismighty recession, and emerges strong and more unified. Thebrighter news is that spring always follows winter. We remain con-fident that our industry will emerge strongly from this economiccorrection. The important aspect is that we all ensure that our busi-nesses learn the lessons from the excesses we have enjoyed in the'boom times' and that most importantly we tackle the 'hard issues'.The new road infrastructure and the FIFA world cup next year,will I am sure provide the impetus to get our industry back ontrack. The most important strategy going forward is to ensure thatthe motor industry becomes more united, and that the three majorindustry organizations work even closer together and support eachother. The motor industry is the most energized sector in the SAeconomy, and we need to build on this strength to improve ourgreat industry which is the cornerstone on which our entire econ-omy rests. Congratulations to the RMI on going into your secondcentury, only truly great organisations can endure and thrive thatlong. NAACAM looks forward to working with you even moreclosely as we move into a new era in our industry.

Stewart Jennings

President, NAACAM

The changing motor industry landscape

page vii

The major obstacle in our endeavours was the question

of space. In today’s frenetic times, space in all its man-

ifestations is at a premium, and we recognised the fact

that we could not indulge ourselves in covering one hundred

and one years through the luxury of chapter and verse. We are,

after all, in the Twitter age, and attention spans are not what

they used to be. Thus, we initially decided to limit this glori-

ous commemoration and remembrance to 50 companies and

organisations, later revised ambitiously to 101 entities and

eventually revised to what we eventually ended up with, an

exclusive club of 54 forward looking establishments. And we

added the extra burden of brevity on our writers’ shoulders by

insisting on economy of words. We assembled a fabulous team

of motoring journalists to write this history, with a tight but

flexible brief: to distil the essence of each company’s contri-

bution to the South African automotive industry into a short

and vivid account of the past, the present and the future, and

to recognise the global influences, but to seek out the local

highlights and the nuggets of idealism which lie buried in each

and every story. Sounds quite tight, but we gave the writers

free rein to do this with their individual flair. And we trust

that you agree with us that they have delivered, in spades, in

bringing to you unique eureka moments.

In the early stages of this project, we realised that with South

Africa being a melting pot of cultures, class and heritage, and

with historical documents mainly in black and white, and in

various states of condition, that colour would impinge on the

classical nature of this book, so we settled for a sepia finish,

which we believe has added to the superb feel and finish, and

contributes to an inspiring manuscript and record to be treas-

ured forever. Our only concession to colour is the RMI logo

at the foot of each page, and our montage of the vibrant gala

dinners that the RMI held in 2008 to commemorate their cen-

tenary. These gala dinners were made possible through the

generous sponsorship of WesBank and Bosch. This publica-

tion is a remembrance of what we are, an acknowledgement

of where we’ve come from, and a pointer of where we are

going. Our endeavours to get an all encompassing participa-

tion came to nought, because many in the industry com-

mented that this was a difficult time to bring out this tome,

and therein lies the reason why we had to bring it out. Even

in the darkest times, there is a silver lining, and remembering

the good times helps us through the bad times, and allows for

us to seek the future.

We started to approach sponsors in May 2009, during the

midst of one of the deepest recessions since 1929, and whilst

the reception to RMI 101 was initially encouraging, by early

August 2009, as the recession deepened, we realised that the

appetite for celebration was not very high. So we adjusted our

sights, and decided to let market and emotional forces dictate

the size of the publication, based on a triad of marketing pil-

lars; we were to promote our venture through three specific

routes: e-mail communication, advertising, and personal ap-

peals. This would effectively be a distillation process that

would separate the wheat from the chaff, with the resulting

book, no matter how thin or how thick, representing the

An Exclusive Club of Forward ThinkersWhen Trilogy Publishing was commissioned at the end of March 2009 to produce a prestigious edition celebrating 101years of the Retail Motor Industry Organisation, it was with a sense of humility that we approached the project. Not onlydid we have to do justice to a century of achievement, we also had to include the history of the companies that contributedto the development of the South African automotive industry, in all its forms, over the past 101 years, and to provide arich tapestry of our pioneering past, and an acknowledgement of those who came before us, those who are today adding tothis history, and those who are still to add to the chronicles in the future. A daunting task, which we tackled with relish,as it is a fantastic sense of achievement just to participate in such a wonderful venture.

NOTE FROM THE PUBLISHER

With over 35 years in the automotive industry, in various management roles, from financial

to marketing to chief executive, Graham Erasmus is an industry all-rounder. Now in auto-

motive aftermarket publishing, Graham subscribes to Motilal Nehru’s maxim that there are

two types of people; those that get the work done, and those that take the credit for it, and

that it is better to be amongst the former as there is too much competition amongst the latter.

Also does not disagree with the adage that there are three types of individuals; those who

make things happen, those who watch things happen, and those who say “what the hell hap-

pened?” Loves all of humanity, but does struggle intensely and passionately in suffering fools

gladly. He has a B.Comm (Accountancy) from the University of Port Elizabeth. Professional

memberships include MTCCA, MIMM, AFEC, and the SAGMJ.

page viii

cream of the crop, the crème de la crème of the automotive

industry. In this publication, you will then find companies

with advanced perception, comprehensive understanding,

total vision, reverence for what they represent, and content-

ment and a feeling of fulfilment about who they are and what

they are about, all gelling into a celebration of their past, their

present, and their future. A real life demonstration of Maslow’s

Hierarchy of Needs; not from a personal perspective, but in

reality an organisation actually reaching self actualisation.

Thus, this compilation is a gem, a collector’s item, and a pub-

lication of historical import; something to be savoured, cher-

ished, and treasured as a historical milestone identifying and

honouring those who refuse to be bowed by historical circum-

stance, and those who realise that life goes on, and these are

the people, companies and institutions that one can rely on

to pull the cart through the drift, no matter how strong the

back pull. On this premise, you are holding in your hands

not a blockbuster in the conventional sense of the word, but

an exclusive collection of very special companies and very spe-

cial people, a physical manifestation of entities and personal-

ities that will be around for many years to come, and who will

definitely be in the RMI 150 and RMI 200 year editions.

A big thank you to the visionaries who made this project pos-

sible, a project that from the outset was never a money making

exercise, but an imperative based on the fact that the oppor-

tunity had been lost the previous year, and this was a creation

of a vehicle to correct this oversight. Many companies, partic-

ularly those who provide ancillary services to the automotive

industry in various forms, such as research, financial, auditing

and consulting services, and who basically feed off this won-

derful and giving industry, were approached but deemed it fit

not to participate, which is a great pity, but which serves as

an indication of the mindset that causes companies to fail in

the bad times; but a plea nevertheless to those missing from

the RMI 101 honours list to add a codicil to your wills, in-

structing your grandchildren and great grandchildren to def-

initely participate in the 150 and 200 year editions – if your

companies are still around, that is! Another notable omission

is a foreword from the Minister of Trade and Industries, not

for lack of trying on our part. The 50 year and 75 year RMI

editions did have forewords from the Ministers of Economic

Affairs in 1958 and 1973, but this was not possible for this

issue, as our publishing deadline could not be met by the pres-

ent incumbent. Maybe better luck next time.

Please treasure this book of celebration. It deserves greatcare, and so do you.

8th October 2009

NOTE FROM THE PUBLISHER

Howard Mellet – Managing Editor

Howard Mellet is a veteran of more than 25 years in the publishing industry in South Africa. He was instrumentalin launching SA LAN Times magazine in 1989. He has had associations, in consulting editor roles, with otherpublications, including the South African edition of Information Week. He has been published in Business Day,Millionaire Magazine, Finance Week, Anytime Magazine, Drive, TopBike, Automobil and others. He is a past projects editor of Truck & Bus magazine and editor of AutoInsight magazine. He is a member of the SA Guild ofMotoring Journalists (SAGMJ).

Jackie Kraft – Concept, Design and Development

Fifteen years in the graphic design and marketing field. After reading for a Bachelor in Visual Arts at the Universityof Pretoria, majoring in Information Design, she moved to a leading advertising agency in Johannesburg beforefounding J.Kraft Information Design (KID). KID specialises in the complete spectrum of visual communicationfrom print design to electronic media and marketing campaigns. For relaxation, Jackie can be found at her localgolf course, when not burning the midnight oil.

Adrian Burford - Adrian Burford has been writing about cars and motoring for 21 years, joiningthe now-defunct Drive magazine as a cadet reporter in 1988. A freelancer for the last decade, one of his mainclients is the AA Traveller magazine. As the motoring editor his prime objective is to look at motoring from theperspective of Joe and Jane Average, and prevent them from making poor decisions. A keen cyclist, his pet hatesare taxis, potholes and mindless SUV drivers, not necessarily in that order. When the test car well occasionallyruns dry, he is found behind the wheel of his classic BMW 2002, which, as he puts it, acts as a great reality check.

CONTRIBUTING EDITORS

page ix

Richard Macaskill - Richard Macaskill is one of the young bloods in the motoring industry. Ed-

ucated at Hilton College, Richard matriculated in 2003, after which he studied a Bachelor of Arts degree at the

University of Johannesburg with majors in Journalism, Communications and Economics. Richard also has an in-

troductory mechanics’ course to his name, completed in May 2008. An avid writer and passionate about motoring,

Richard wasted no time in getting into the industry and seized the opportunity when he was awarded the South

African Guild of Motoring Journalists’ Commercial Vehicle Bursary in mid 2008. The following year Richard was

offered the guild’s Car Bursary, which is the position he currently holds.

CONTRIBUTING EDITORS

Peter Burroughes - Peter Burroughes is a freelance motoring journalist and PR/marketing con-sultant who is in his fifth decade of observing, promoting and reporting motoring and motor sport. He has workedin both print and electronic media, in advertising and public relations and has travelled the world in the course ofhis assignments. He currently covers national championship circuit racing, off road racing and rallying for variousclients and is media consultant to Team South Africa competing in the A1GP World Cup of Motorsport and alsoto Gauteng Motorsport Company. He is a member and past chairman of the SA Guild of Motoring Journalists(SAGMJ) and a recipient of Motorsport South Africa’s Lifetime Achievement Award.

Paul Collings - Paul Collings is a freelance journalist and Special Report Correspondent for Fleet-

Watch Magazine. He has specialised in writing about and photographing commercial vehicles since 2004. He is

also a published author and winner of the 2003 Anglo Platinum Short Story Award. He lives in Johannesburg and

is father to a son, Alex.

Gavin Foster - Gavin Foster began his freelance career as a fulltime photojournalist in 1993. Able towrite on just about any topic, his work was in constant demand. He is a jury member for the SA Guild of MotoringJournalists (SAGMJ) Car of the Year competition. A keen motorcyclist, he won a Magazine Publishers Associationof South Africa (MPASA) PICA award for Profile Writer of the Year in 2008.

Teddy Knoetze - Teddy Knoetze began his career at Die Burger in Cape Town after graduating from

the University of Stellenbosch. In a career spanning more than 40 years he has worked for various newspapers, and

book and magazine publishers, both on a permanent and freelance basis. Together with his wife, Dina, he wrote a

series of language and science text books for use in schools. He started his own publishing company, Motorcomm,

in 1992, which concentrates mainly on publishing magazines and translations relating to the motor industry. He is

a member of the SA Guild of Motoring Journalists (SAGMJ).

Leo Kok - Leo Kok started his career in 2002 as a journalist at Sake-Beeld. He progressed to senior financial re-

porter where he covered trade and industry and automotive sectors. He subsequently moved to MotorBeeld as editor

until early 2009, when he pursued other interests in the corporate sector. Leo majored separately in languages, and in-

dustrial psychology and communication sciences at the University of Johannesburg (UJ). He also holds an honours de-

gree in Journalism from UJ and an MBA from the Gordon Institute of Business Science (GIBS). Leo has continued his

passion for writing as a part-time freelance writer and he is the current treasurer of the SA Guild of Motoring Journalists.

Alwyn Viljoen - Alwyn Viljoen sold his first essays while at school, (charging two sandwiches a page).

He has long since realised that hacking out facts puts more bread on the table than scribbling fiction. His media career

evolved from corporate writer to political reporter to humour columnist to magazine journalist and culminated as

publisher. After selling his shares in the publishing company, he took to the road as freelance transport and travel

writer. Along the way he picked up a motley but useful collection of qualifications, ranging from speed reading to

police science 101 to sheep management. He is a listed couch-surfer and closet librarian.

page x

The event was the un-

veiling of South

Africa’s first motor

car, or horseless car-

riage, and the first

public demonstration

of the Benz Velo, imported into the

country by Hess & Co. This event was

also in reality South Africa’s first motor

show, because the owner of the Velo, J

P Hess, charged a two shilling and six-

pence (25c) entrance fee. The demon-

stration took place at Berea Park,

Pretoria, and it was indeed a momen-

tous occasion, with the attendance of

President Paul Kruger (who declined to

take a ride) and Dr. W J Leyds, the State

Secretary, who became the first official

motor car passenger when he accepted

the offer to ride pillion in this revolu-

tionary contraption. The driver was A

E Reno, the owner of the Pretoria

News, so it can also be safely assumed

that Mr. Reno was the first South

African motoring journalist. Unfortu-

nately, there is no record of his assess-

ment of the vehicle, as no story appears

to have been filed, but we do have it on

good authority that he partook heartily

of the complimentary food and drink,

and thus he constructed another first,

and began the journalistic tradition of

freeloading. The Velo was undeniably a

trailblazer, as its short history also fore-

told of the love affair that South

Africans, who are not alone in this,

would have with the motor car. The

Velo was sold to a local coffee and tea

merchant A H Jacobs to be used in

promotions. Customers, according to

the size of their coffee and tea

purchases, could either have a look at

the vehicle, or even take a short drive.

Under supervision, of course. Unfortu-

nately, the Velo met a fiery death when

the business burnt down, but by this

time the South African public had

woken up and smelt the coffee, and

their love affair with motor cars had

begun in earnest. No longer did love

and marriage go together like a horse

and carriage. It was far more serious

than that, and man’s passionate embrace

of motor cars and internal combustion

engines provided great grist to Sigmund

Freud’s mill, and many other psycho an-

alysts after him. Today, cars are not sim-

ply means of transport; they are works

of art, they are objects of desire, they are

statements of manhood, they are phallic

symbols, and in their latest manifesta-

tion they are willing participants in the

emancipation of women.

The Beginning

“For six straight daysGod worked, and on the seventh day He tinkered

with His V8” - anonymous

It was on Monday, 4th June 1897, at 4pm, that the future of mobility in South Africachanged forever. Not that those present knew it at the time.

The man who started it all, John Percy Hess,leans on the rear fender of the Velo, with

Dr J P Leyds, the first passenger, sitting next toA E Reno, the first motoring journalist. Paul

Kruger is not in this picture, most probably be-cause he was making sure that he was well

away from this new fangled mechanism,which “could take fright if a dog barks”. Photo credits: SA Veteran and Vintage Association and UCDD

The early days of motoring in

South Africa were trying, to say

the least. The first cars had no

protection against the weather, and mo-

torists had to carry a considerable load of

spares (not in the modern sense): cans of

petrol, lubricating oil, water; and tools,

spare tyres and a spade for digging them-

selves out of trouble. No cars had spare

wheels so the many punctures required

tyre changes with the wheel still bolted

to the axle. Lubrication was rudimentary,

so mechanical breakdowns were the

norm rather than the exception. The

motorist had to do the servicing himself

because garages and mechanics were vir-

tually non-existent. Petrol stations were

also rare animals, so petrol had to be car-

ried on the vehicle for long trips. And

long trips were pioneering affairs. Frank

Connock and Robert Jefferson were the

first to do the Durban to Cape Town trip

(via Johannesburg) in May 1907, which

they achieved in the relatively short pe-

riod of 16 days. This was done on very

bed roads, and sometimes close to im-

passable rivers, forging some intrepid

crossings on railway bridges. These early

tribulations did not deter the motoring

pioneers, and as early as 1901 the need

for technical assistance was recognised,

with the establishment of the Rudge

Whitworth Company in Cape Town, the

first motor works in South Africa. That

same year, Malcolm Irving (later to be-

come the President of the MTA from

1923 to1924), at the request of the

Royal Automotive Club, established the

first workshop to exclusively undertake

the repair and servicing of motor vehi-

cles. The Anglo Boer War slowed things

up north, so it was a year later in 1902

that the first motor firm, the Johannes-

burg Motor Company Limited, set up in

the then Transvaal, to be followed in a

couple of months by the Continental

Garage. The other provinces played

catch up, and by 1908 there were well

over 50 motor dealers in South Africa

and a proportionate number of service

dealers. The car parc had reached 500

and was growing apace, and the need for

collective representation was sensed. Sir

Albert Atkey, who had taken over the

Johannesburg Motor Company and set

up the Johannesburg Motor Mart in

1903, was instrumental in the formation

of the South African Society of Motor

Traders, based on the British Motor

Trade Association. This was the birth

date of the MTA, later to become the

Motor Industries Federation (MIF) and

now the appropriately named and inclu-

sive Retail Motor Industries Organisa-

tion (RMI). The first President of the

Society was Arthur Gaydon, at that time

the Johannesburg manager of the

Dunlop Rubber Company Limited.

The RMI and its forerunners have

played a sterling role in the history of the

automotive industry in South Africa

since those groundbreaking days, and

there were many highlights and low

points in this history. The purpose of the

RMI 101 publication is to celebrate the

past 101 years of industry activism and

to acknowledge the role that the RMI

plays today, and to look forward to the

next 101 years, which are sure to bring a

surfeit of surprises and twists and turns

that the most prescient of us will not

even come close to predicting, but one

thing will remain constant, and that is

the need to look after the motorist of the

future, with professionalism, integrity

and enthusiasm, and a commitment to

staying abreast of whatever turns the in-

dustry takes and to react to government

initiatives and strictures.

The Need for the RMI“Some horsepower, some horsepower, my kingdom for some horsepower”

- With apologies to Shakespeare: Richard III

Malcolm Irving, President of the MTA(1923 – 1924) and the first man to

establish a workshop in South Africa, in 1901

page xi

Robert Jefferson and FrankConnock with their Roverwhich took them fromDurban to Cape Town in1907

Photo credit: LeylandSouth Africa

page 1

As the lead voice in the motor industry, the RMI

is a member-driven organisation that constantly

seeks solutions to concerns raised by members

in the day-to-day running of their businesses.

Members’ needs are serviced through six regional

offices, manned by 83 professional staff. In addition, the RMI

is the major employer representative of the Motor Industry Bar-

gaining Council, playing a significant role in labour negotiations

as well as the industry’s social benefit schemes, dispute resolu-

tion processes and exemption procedures.

Objectives of the RMI

• To promote, protect and encourage the interests of members

and the motoring public by setting and maintaining proper

standards of service and ethical trading conditions in the in-

dustry.

• Facilitates the settlement of disputes between members and

their employees, members and the motoring public by con-

ciliation/mediation/arbitration.

• Regulates relations between members and their employees

and/or trade unions and protects and furthers the interests

of members in that regard.

• Promotes, supports or opposes when necessary, any pro-

posal, legislative or other measures affecting the interests of

members.

• Affiliated with, and participates in the affairs of other bodies

sharing common interest with RMI members i.e.

NAAMSA, NAACAM, SABS, DoT, BUSA, Nedlac,

SAPIA, DTI, etc.

• To maintain high standards of business ethics and service

delivery to the motoring public by members of the RMI,

and where necessary provide upliftment programmes to im-

prove the knowledge and professionalism of members.

Services offered by the RMI

Business Focus

• Representation of member's interests with various govern-

ment and other industry bodies, i.e. AA, SABS, DTI, DoT,

NAAMSA, NAACAM, AIDC, MIDC, AMID, oil compa-

nies, motor manufacturers, various banking and insurance

institutions.

• Disseminates valuable industry information to members and

consumers.

• Encourages consumers to do business with members

through the accreditation and grading of member busi-

nesses.

• Access to other business partners in industry offering indus-

try specific products, ie Capricorn.

• Quality & Standards enforcement through the elimination

of counterfeit parts and illegal importation and notification

to members, thereby protecting both members and mo-

torists from the consequences of mechanical failure due to

the use of sub-standard components.

• The RMI is an endorsee of national motoring exhibitions

such as the Johannesburg International Motor Show, Auto-

mechanika South Africa, South African Automotive Week

and the Workshop and Technology Show.

• The RMI has vibrant national Consumer Affairs Depart-

ments dealing with matters raised by consumers and mem-

bers alike where the RMI acts as intermediary in resolving

disputes amicably.

• Brand awareness campaigns through media reports, radio

and television interviews, national radio advetising and gov-

ernment liaison to promote RMI members, with particular

focus on consumer awareness in doing business with RMI

members and promoting the Code of Conduct.

• Business Directors managing specific Associational needs

and activities.

• Regional and National Executive Committees representing

members and encouraging member interaction and partic-

ipation in the successful role of specific Associations.

Training Focus

• Sourcing of training interventions through the RMI Train-

ing Department.

• Seven qualified Skills Development Facilitators based at all

Who is The RMI?With a membership of 7 209, the RMI provides a very effective collective voice that givesmembers considerable clout in negotiating better trading conditions.

page 2

RMI regional offices assisting members to implement skills

development plans.

• Representation of members, and addressing their training

needs, by serving on various forums of the Merseta, ie Au-

thority-, Executive and Merseta Motor Chamber Commit-

tees, including bodies such as BUSA and DoL.

Labour Focus

• Highly qualified IR consultants nationally at six regional

offices;

• Negotiation at MIBCO level with unions on wage and

substantive issues;

• Free telephone assistance and advice on employment issues

within member establishments;

• Highly competitive low-priced on-site assistance by our

skilled IR staff;

• Representation at DRC, CCMA and Labour Court forums;

and

• Presentation of seminars on various labour related issues.

Social Benefits

• Healthcare - Moto-Health Fund available for members and

their employees offering very competitive contributions with

excellent benefits.

• Pension & Provident Funds - excellent funds available for

members and their employees.

The above are just some of the more tangible reasons for

belonging, but in time to come, the consumer will more

and more insist on exclusively doing business with RMI

members and remember, the greater our numbers, the

stronger our voice!

Jeff OsborneCEO

Gary McCrawOrganisational and

Board Secretary;NADA/MDA

Director

Jakkie OlivierExecutive Director

Paul BritzERA/MIWA/

SADFIA/ACRA Director

Claire PattersonCommunications

Director

Twala BocoMPEA/MIMA/Quality& Standards Director

Vishall PremlallTDAFA Director

THE DYNAMIC RMI EXECUTIVE TEAM

Aruna RanchodIR/HR Director

Aleeshen KistenSAMBRA Director

Moeketsi Wa MitaneNAAASP Director

page 3

Automotive Component Remanufacturers' AssociationThe Automotive Component Remanufacturer's Association (ACRA) represents component remanufacturersinvolved in both the remanufacture of safety critical components and radiators. ACRA's objectives includethe promotion and protection of the interests of the motoring public and members. The RMI/ACRA ac-creditation programme ensures that all members meet the standards and criteria set by ACRA and members

pledge to both the RMI Code of Conduct and ACRA's Code of Business Practice. The remanufacture of safety critical components is agrowing industry and ACRA has identified the need for the development of specialised training courses for technicians and operators in thecomponent remanufacturing industry. ACRA has a close working relationship with the South African Bureau of Standards dealing with allissues pertinent to members.

Engine Remanufacturers' AssociationERA represents the cream of the automotive engineering industry in South Africa. ERA members use stateof the art equipment and highly skilled staff to perform the full range of automotive engineering operationsrequired to repair and overhaul all components of the modern petrol and diesel engines on our roads. Sec-ond-hand engines are available in the market; however, it is recommended that such engines are only pur-chased from reputable bona-fide accredited ERA members, as engines purchased from other sources often

leads to premature engine failure. These engines may also not always be compatible to local conditions. ERA members supply only thefinest components and highest quality of workmanship. ERA members take pride in providing warranties against workmanship appropriateto the type of engineering work undertaken. ERA prides itself on being the "Hallmark of Precision Engineering".

Peter NokeSAPRA Director

Len WhiteleyTraining Manager

Sibongile MtapoaneGeneral Manager

Highveld

Angela CalogeroRegional ManagerNorthern Region

Louis van HuyssteenRegional Manager

Free State &Northern Cape Region

Annette StewartGeneral ManagerKwaZulu Natal

Joy Oldale Director SAVABA

& NVTA

Jan SchoemanGeneral Manager

Western Cape Region

Erwin StroebelRegional Manager

Eastern Cape

Nunben DixonFinancial Manager

THE RMI BUSINESS ASSOCIATIONS

page 4

Motorcycle Dealers' AssociationThe retail motor industry looks to the Motorcycle Dealers' Association as its mouthpiece to protect andfurther the interests of the motorcycle sales and service industry. The MDA has on a number of occasionssuccessfully negotiated with government on issues relating to import taxation and traffic legislation whichwas seen to be prejudicial to the interests of the industry and consumers. MDA also periodically liaises with

insurance companies and financial institutions with the view to negotiate better dispensations for its members. An additional importantfunction of the Association is to liaise extensively with the Association of Motorcycle Importers and Distributors, where MDA representsthe interests of dealers during discussions with South Africa`s major motorcycle importers. Accredited membership of MDA allows propri-etors to display the RMI Code of Conduct through which it is undertaken to provide products and services at a fair and reasonable price,and to honour both the letter and spirit of any guarantees accompanying the sale of those products and/or services. Close liaison also existswith the National Automobile Dealers' Association and various international organisations.

Motor Industry Workshop AssociationThe motoring public has become increasingly educated and discerning when it comes to servicing and repairingtheir vehicles. The demand for quality services and parts has become a prerequisite by the consumer at any ve-hicle repair establishment. MIWA represents workshops conducting general repairs, auto electricians, driveline

and transmission specialists and vehicle accessory centres. A major focus of MIWA is to further educate the motoring public on how best toprotect themselves against sub standard work. With more than 2200 members countrywide, we undertake to provide you the motoring consumerwith guaranteed service and nationwide support.

Motor Parts & Equipment AssociationThe Motor Parts & Equipment association represents wholesalers, retailers and independent parts tradersin the replacement motor parts industry.

"A Genuine Reason for Helping the Consumer"

Genuine or Branded parts are quality parts manufactured by reputable companies and in the majority of cases, are also supplied to origi-nal equipment (OE) manufacturers. These genuine replacement parts are available to the CONSUMER at accredited MPEA spares out-lets at affordable prices and are distributed throughout South Africa by reputable companies and backed by the manufacturers’ warranty.

National Automobile Dealers' AssociationThe National Automobile Dealers' Association is a professional body representing the interests of businessmenwho own/operate new vehicle franchise motor dealerships and qualifying used car only outlets in South Africa.It is dynamically committed toward the enhancement of the image of the retail motor business; facilitating theinterface between dealers and the motor manufacturers who supply them; building rewarding relationships be-tween dealers and their customers; and bringing relevant issues facing its members to the attention of governmentat all levels. In all forums, NADA is the fully representative and respected voice of the retail motor industry inSouth Africa.

National Vehicle Testing AssociationNational Vehicle Testing Association (NVTA). The NVTA represents vehicle testing stations involved inthe testing and issuing of roadworthy certificates in terms of the National Road Traffic Act and SABS 047.This is a legal entity. The RMI / NVTA accreditation programme ensures that all members meet the stan-dards and criteria set by NVTA in accordance with SABS 0216. NVTA members pledge to the RMI Codeof Conduct.

Motor Industry Manufacturers’ Association

MIMA is the association that oversees the interests of employers who manufacture motor vehicle parts,

components and accessories. MIMA currently operates under the auspices of the MPEA.

page 5

South African Motor & Body Repairers' AssociationSAMBRA, as a proud constituent association of the RMI, represents the interests of the Collision Repair Industry in South Africa. SAMBRA represents the vast majority of the repairer market in South Africa thatare able to achieve the standards of SAMBRA's grading system. The grading system is devised to allow alllevels of repairer to become a SAMBRA member; however restrictions are placed on our members in terms ofthe level of work they are permitted to carry out. All the activities of SAMBRA are aimed at developing asound sustainable Industry for all role players that interact with the Industry on various levels. SAMBRA ne-gotiates industry standard rates of labour and trading margins in order to secure financial viability for its mem-bers and fair trading conditions for its strategic business partners.

About SAPRAThe South African Petroleum Retailers Association (SAPRA) represents and promotes the interests of Petroleum Retailers in South Africa. SAPRA is a constituent association of the Retail Motor Industry Organisation (RMI) consisting of members actively involved in the Petroleum Retail Industry in terms ofthe Constitutions of the RMI and the Motor Industry Bargaining

South African Vehicle And Body Builders' AssociationSAVABA members are the professional vehicle body builders in South Africa who manufacture commercialvehicle body applications - tanker, coal-, refrigerated- trucks and trailers; Bus bodies -commuter and touristtype; Specialised vehicle body applications - ambulance, armoured vehicles, and off-road vehicles. All vehiclebodies are manufactured using the latest equipment and highly trained staff, to ensure strict compliancewith SABS.

Tyre Dealers' And Fitment Centre AssociationTDAFA represents the importers and distributors of major tyre brands both locally manufactured and im-ported, in compliance with SABS standards and motor manufacturer specifications. TDAFA also representsthe leading tyre retreaders in South Africa. Strict compliance with the TDAFA's accreditation criteria andapplicable legislation ensures the production of quality and safe retreaded tyres. TDAFA members in addi-tion to selling new and quality retreaded tyres, offer professional wheel alignment, balancing, puncture

repair and other tyre related services such as mag wheel sales, shock absorber- and tow-bar fitment. Your tyres are your vehicles only contactwith the road - don't risk it! You cannot afford to do anything else but settle for the best!

South African Diesel Fuel Injection AssociationSADFIA represents the highly specialised diesel fuel injection sector of the motor industry, more specificallythe repair and reconditioning of diesel fuel injection pumps for both passenger and commercial vehicles. Anumber of SADFIA members are also involved in the supply, installation and maintenance of turbo-chargers.

SADFIA members use high technology and expensive equipment coupled with highly skilled staff to attend to all your fuel injection needs.SADFIA members take pride in providing warranties against workmanship appropriate to the type of work undertaken. For peace of mindalways use an RMI/SADFIA accredited member! Approved SADFIA members will have displayed on their premises the RMI Code of Con-duct, RMI and SADFIA branding. Consumers are encouraged to only do business with Accredited SADFIA members.

National African Association for Automobile ServicesProviderNAAASP is the lead voice representing over 1400 informal / semi-formal; automotive traders from previouslydisadvantaged Communities (rural and township) nationally. The traders range from Panelbeaters (MBR’s),motor and mechanical workshops, auto electricians, fitment centres such as tyres, exhaust, audio serviceproviders to name but a few. NAAASP was founded in late 2004 in Gauteng to deal with the challenges

faced by these traders in the market place. It seeks to provide a platform to traders in dealing with the challenges on procurement relatedmatters. NAAASP was then adopted by the RMI in early 2006 as a development association. National African Association of AutomobileService Providers (NAAASP), the development arm of the RMI and the Training Department have merged as a single unit, creating an en-terprise development strategy. The strategy aims to create a mechanism to migrate informal traders to the formal economy. A dauntingtask if one looks at the current economic scenario of fuel hikes and interest rates. The process is a steady rebuilding of an existing informalbusiness into a high quality productive formal business, able to compete on its own in the formal economy.

page 6

RMI Centenary Dinners, held across the country

in 2008, were vibrant affairs, made possible by the

generous sponsorship of WesBank and Bosch

page 7

page 8

page 9

His sense of responsibility led him to provide

benefits for his associates. Bosch improved

working conditions by providing modern

workplaces, with good ventilation and light-

ing. He created an apprentice training

scheme that offered a solid professional education. He also

provided company pensions to care for retirees and their sur-

vivors. Independence, family values, and early preoccupation

with the pressing social issues of his time formed the roots of

the charitable activities of Robert Bosch – from continuing

education to international understanding. These activities cul-

minated in the opening of the Robert Bosch Hospital in

Stuttgart in 1940, two years before his death. He also made

sure that these activities continued. In accordance with his

will, Robert Bosch Foundation GmbH, was founded in 1964,

and is actively involved in the sciences, health, international

understanding, society and culture.

Bosch at a glance: Supplier of technology and serviceswith a strong global presence

The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology,

consumer goods, and building technology, some 280,000 associates generated sales of 45.1 billion euros in fiscal 2008. The

company originated as "Workshop for Precision Mechanics and Electrical Engineering" founded in 1886 by Robert Bosch

(1861-1942). Just a few years after the foundation of the company, the first sales offices were opened in London and Paris.

Today, the Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over

60 countries. Of its 291 manufacturing sites, 225 are located outside Germany. To preserve its technologically leading position,

Bosch spends considerable sums for research and development every year. In 2008, its research and development expenditure

came to 3.9 billion euros, or 8.6 percent of sales. Its most research-intensive business sector is Automotive Technology, whose

research and development expenditure comes to 3.2 billion euros, or roughly twelve percent of sales. Throughout the world,

more than 32 500 associates are involved in research and development for the Bosch Group, 18 300 of them in Germany. The

company's technological competence is also manifested in its large number of patents: with more than 3 850 inventions, Bosch

was the most prolific patent applicant in Germany in 2008. In the field of automotive technology patents, Bosch ranks first

in Germany, first in Europe, and third in the US. Worldwide, Bosch remains the global technology leader, taking first place

for patents granted at WIPO (World Intellectual Property Organisation).

Robert Bosch:an entrepreneurwith a sense ofresponsibilitySeptember 23 1861 – March 12 1942

Entrepreneurial responsibility and charitable involvement were cornerstones in the life of RobertBosch. He was convinced of their importance and their necessity, and passed this conviction onto his successors who totally honour his legacy by continuing and building on his work.

page 10

Since 1886, the Bosch Group has been successful with

pioneering and beneficial innovations that have led to

enormous growth. Today, the Bosch Group has a global

network of customers and suppliers, and the never-ending task

is to maintain and further expand this position. Franz Fehren-

bach, the current Chairman of the Board of Management of

Robert Bosch GmbH, describes the Bosch blueprint for suc-

cess; in the past, the present, and vitally, in the future;

“For our growth, we need a common vision, yet themore international we become, the less we can as-sume that associates will automatically live the val-ues and principles that have been handed down tous. Besides our commitment to other significantinitiatives, it is our distinct corporate culture, basedon common foundations, that is an especially im-portant precondition for business success and ourability to continue to evolve in the internationalmarket environment.”

Franz Fehrenbach explained what the distinct corporate cul-

ture is that has sustained the Bosch Group for over 120 years.

What Bosch stands for, what is Bosch’s common vision, what

guides their work, and how they deal with change, and what

are their values and core competencies:

“The Future Needs a Past”

Robert Bosch gave the company its name and created values

that still apply today. For him success did not just mean eco-

nomic growth; it also encompassed improvement in living

conditions. Today we incorporate this standard in our claim

“Invented for Life.” And the principles and guidelines formu-

lated by Robert Bosch still apply today, just as they will in the

future. The future needs a past. Our company stands for tra-

dition and modernity, and these two pillars are the source of

our strength for the coarse ahead. However, motivation and

sharing of common goals depend on an informed workforce

that is prepared to assume personal responsibility. To create a

shared view of what a strong and meaningful development of

the Bosch group means, we created a brochure, “House of Ori-

entation”, to help all our associates to understand and live our

corporate culture – a culture that offers orientation, reinforces

cohesiveness, and creates identification.

Understanding and Livingthe Corporate Culture

Our common goal must be to make the most of our great

performance potential across all business sectors and in every

region of the world, and in this way to vigorously promote the

long-term competitiveness of Bosch. The “House of Orienta-

tion” sets out how we see our future development, the princi-

ples of our approach, and the capabilities that we have and

want to exploit for our continued success in the future. It also

contains information on the standards and values that moti-

vate us in our daily striving for success and improvement.

But Robert Bosch knew that only a profitable company would

be able to realise his vision of corporate responsibility and

charitable activity. For that reason, he and his – to date – five

successors have invested all their experience and knowledge in

helping the company to grow robustly – through innovative

products, new business areas, modern manufacturing tech-

nologies, and an international focus. The personality of the

company founder, with his principles and guidelines, contin-

ues to be a defining influence for the corporate culture. His

legacy forms the basis for the special bond associates feel

worldwide: they are proud to be part of Bosch.

Chairmen of the Board of Management of Robert Bosch GmbH

Hans Walz 1953 – 1963

Hans L. Merkle1963 – 1984

Marcus Bierich1984 – 1993

Hermann Scholl1993 – 2003

Franz Fehrenbach2003 -

The Bosch Business System

page 11

Vision: Our vision is our shared image of the future. It states where we want

to go, and what drives our actions. It points the way forward for a strong and

meaningful development of the Bosch group.

Mission: BeQIK stands for greater speed in everything that we do, and it

stands for quality, innovation, and customer orientation. Our objective is to

continuously improve our internal processes.

Values: The Bosch values are the foundation upon which the successes of

the past were built, and upon which we will build our future. They guide our

actions and tell us what is important to us and what we are committed to.

Core Competencies: For well over a century our company has built upon

a unique mix of interrelated core competencies – a mix from which we derive

our competitive advantage, and which also forms the basis for the future de-

velopment of our company.

Bosch Business System (BBS): To be able to implement our Bosch Vision, we need to continuously develop and to

manage change. This requires a systematic methodology that shows us in concrete terms where we need to reinvent ourselves,

and how well we are mastering these shifts and structural changes in practice. With our BBS management system, symbolised

by the multi-coloured triangle, we have created just such a methodology.

Robert Bosch’s father was a well educated farmer who placed

special importance on a good education for his children,

and from 1869 to 1876, Robert Bosch attended the Realschule

in Ulm, before taking an apprenticeship as a precision mechanic.

After his apprenticeship, which ended in 1879, the young Bosch

then developed his taste for innovation and invention during

seven years of travel in Germany, the United States and the UK,

working for, among others, Siemens and Thomas Edison. It is

the Edison link that provides a tantalising clue as to where

Robert Bosch got his tinkering, inventive and pioneering talents,

but the most important traits that Robert Bosch had was his en-

trepreneurial and philanthropic flair. This was the driving force

behind him opening a Workshop for Precision Mechanics and

Electrical Engineering in Stuttgart, Germany on November 15

1886, an ambitious and daring leap for a 25 year old. The rest,

clichéd as it may sound, is history. And what a history! Today,

some 123 years later, Robert Bosch GmbH struts the global

stage as an industrial colossus, employing over 270 000 people,

and with revenues of in excess of 46 billion euros, and at the

cutting edge of automotive, automation, packaging, security,

consumer goods and power tools technologies. From day one,

the focus has been on research and development and the concern

for people’s welfare, which has translated into over a century of

innovation. Space precludes an exhaustive list of all the wonder-

ful innovations that the Bosch Group has gifted to the world,

so we note some historical and world changing milestones:

It all began on an early autumn’s day in Albeck, a village to the northeast of Ulm in southernGermany, when the Bosch family welcomed their eleventh child, Robert, a bouncy and in-quisitive boy, who went on to found what is today the world’s largest supplier of automotiveparts, among other things. This auspicious day was September 23 1861.

The Bosch Pedigree

Robert Bosch was born in1861 in the "Gasthaus zurKrone" - an inn in Albecknear Ulm. He was theyoungest son of theinnkeeper, farmer, andbrewer Servatius Boschand his wife, Maria Mar-gareta. He lived here foreight years until his familymoved to Ulm.

In 1936, on the occasion ofhis 75th birthday and the50th anniversary of his com-pany's establishment, RobertBosch fulfilled a long-timedream: he founded a hospi-tal. The facility with 360beds was officially opened inApril 1940. In 1973, it wasreplaced by a medical centrebuilt at another location.

Today, Robert Bosch GmbH stands on three sturdy legs

– Automotive Technology; Consumer Goods and

Building Technology; and Industrial Technology.

The Bosch brand is synonymous with power tools, home

appliances, telecoms, and other products, but it is in the

automotive field and among the fraternity of car lovers and

automotive cognoscenti that the Bosch brand really resonates.

It can also be said with little fear of contradiction that Bosch

will be the answer every time the question is asked as to which

company has had the biggest impact on innovation in the

development of safety, environmental protection and electron-

ics in the motor vehicle. The automotive division is the largest

sector within the Bosch organisation, contributing in excess

of 60% of its revenues, and the strength and growth in this

sector is reflected in the fact that Bosch has become the world’s

largest supplier to the automotive industry. The bulk of the

automotive revenues come from Bosch’s OEM activities,

which is logical when one considers the enormous research

and development effort, and the innovations that have flowed

from this effort. Robert Bosch also understood the importance

of after sales service, and this imperative compelled him to

launch the “Bosch Dienst” (Bosch Service) concept in

Germany in 1921. Bosch product innovation started in 1897

with the low-voltage magneto ignition for vehicles, and has

continued uninterrupted to this day, with Bosch applying for

more than 14 patents for developments each working day.

In 2008, Bosch filed patents for over 3 281 innovations, more

than any other company in Germany. Many of these patents

are esoteric but important in the development process, and

will not make the headlines. We look at the headline grabbing

automotive innovations since the birth of Bosch in 1886:

1897 – First successful application of Bosch low-voltage

magneto ignition in a motor vehicle

1900 – Robert Bosch recognises the importance of trademarks

and has his name registered, decorated with vignettes

1902 – Delivery of the first high-voltage magneto and the first

Bosch spark plug

1913 – First complete Bosch vehicle electrical system, consist-

ing of magneto ignition with spark plugs, starter,

generator, headlights and voltage regulator

1927 – Series production of diesel fuel injection pumps

begins

1936 – First Bosch diesel fuel injection in a production car,

the Mercedes-Benz 260D

1951 – Development of fuel injection for petrol engines

1962 – Production of distributor-type injection pumps for

diesel engines

page 12

1887 – First low-voltage magneto for

stationary engines

1902 – First commercially viable high-voltage spark plug

1906 – Introduction of the 8 hour work day

1928 – The Forfex hair trimmer – the first Bosch power tool

1929 – First TV set from Fernsch AG

Division

1932 – First power drill from Bosch

1932 – Acquisition of Junkers’ natural gas-fired appliances

business

1932 – First Blaupunkt car radio

1933 – The first Bosch refrigerator

1964 – The first Bosch dishwasher

1964 – Robert Bosch Foundation founded

1976 – Development of the world’s first swivel-arm indus-

trial robot starts

2004 – Bosch opens new Technology

centre in Abstatt

2005 – Night vision system for cars

2008 – Tata Nano, powered by Bosch-

designed engine, is unveiled

In 1897, Boschtested his mag-neto ignitiondevice for thefirst time in amotor vehicle.He replacedthe breakdown-prone buzz igni-tion in a de DionBouton three-wheeler with alow-voltage magneto ignitiondevice. After demonstrating thethree-wheeler to Messrs. Daimler and Maybach, a proud RobertBosch wrote to a customer: "Whether at 100 ignitions a minute or600 a minute, the ignition still works without skipping a beat”

The magneto ignition device had begun its triumphant progress acrossthe world. By 1906, the100,000th Type D6 magneto ignition devicehad been produced. Thegrowth of his businessprompted Robert Bosch to introduce the eight-hour workday for the company's 526 associates.

1967 – First volume production of electronically controlled

fuel injection (VW 1600 TL)

1976 – Production of Lambda oxygen sensors, a momentous

new emission control device

1978 – Bosch Anti-lock Braking System (ABS) introduced for

passenger cars

1979 – Production of Motronic digital electronic engine

management (integrated control of fuel injection and

ignition)

1986 – Production of electronic traction control (TCS) for

motor vehicles

1991 – Production of Litronic automotive headlight system,

with High Intensity Discharge (Xenon) lamps

1995 – Electronic Stability Programme (ESP®) for enhanced

vehicle stability

1997 – Common Rail Production of VP44 high-pressure

diesel injection pump and high-pressure fuel-injection

system Common Rail

2003 – 3rd generation of Common Rail, with Piezo-inline

injectors

2005 – Night vision system for cars

2008 – Tata Nano, the $2 500 People’s Car powered by a

Bosch-designed engine, is unveiled at Auto Expo in

New Delhi

page 13

The origins of Bosch as a supplier of automotive equip-

ment go back to 1887. This was a time when the 25-

year-old electrician and precision mechanic Robert

Bosch was not yet manufacturing any automotive technology.

The car itself was still very much in its infancy. But this was

the year in which Bosch, on behalf of a customer, built a prod-

uct that was later to play an important role in the automobile

– a magneto ignition device for a stationary engine. In 1897,

Bosch installed one of these devices in a three-wheeler. The aim

of this experiment was to find an ignition system for motor ve-

hicles that was suitable for everyday use. This unwieldy appa-

ratus was a key product of the company. It turned Bosch into

an automotive supplier and a multinational corporation. With

its magneto ignition systems for cars, Bosch helped to pave the

way for motorization in Europe. Then, from 1925, production

was gradually shifted to battery ignition systems, which the

market was demanding as an inexpensive alternative. Even

today, ignition is a Bosch core competence. Ignition systems

have been further developed, and are now a part of complex

engine management systems. But one thing has remained the

same: even today, an electric spark ignites the air-fuel mix and

keeps gasoline engines running.

Safe, clean, economicalA mission in just three words

It was in 1974, the year after the first oil crisis, that Bosch

introduced the “3S” programme (sicher, sauber, sparsam - safe,

clean, economical) to the public. This simple formula encap-

sulated the corporate philosophy pursued at Bosch for decades,

a philosophy which still applies today: to protect vehicle

passengers and other road users, to make vehicles economical,

and to lower exhaust emissions.

Safe“Safe” relates to active and passive safety in vehicles. Prime

examples of this are the ABS antilock braking system (1978)

and triggering units for airbags (1980). Bosch set new standards

in safety in 1995 with its electronic stability program ESP®.

Research results showing the significant drop in serious acci-

dents involving vehicles with ESP® have justified Bosch’s huge

research and development spend on safety systems. Systems

such as ABS or ESP® are now standard equipment in almost all

new cars in Europe or will be so before the current decade ends.

Bosch Products

The evolution of the Bosch brand and logos

1907 - 1914 1907 - 1914 1919

1931 1981 2001

2004

2008

page 14

The Road to Business Success

Robert Bosch understood the importance of after sales

service, and he launched the Bosch Service workshop

concept in Germany in 1921. This concept was later

expanded globally, and it eventually found its way to the

African continent, with the first Bosch Service opening in

South Africa in 1937. 88 years after “Bosch Dienst” first saw

the light of day, the Bosch Service network is recognised

worldwide as a brand that offers a bumper-to-bumper service

model, with 14 500 outlets across the globe, making it the

largest workshop organisation in

the world. Southern Africa is well

served, with over 160 quality-dri-

ven Bosch Service workshops serv-

ing the region.

Ewald Faulstich, Robert Bosch

South Africa Director Automotive

Aftermarket Division, says that

Bosch Service is the road to

business success.

Bosch Service

CleanThe “clean” part of the 3S programme relates to the company’s

commitment to reduce exhaust emissions. Here too, Bosch’s

efforts in this field go a long way back: as early as 1950, where

Bosch recommended the careful adjustment of injection

pumps. In 1967 the company’s commitment to a ‘clean’ car was

upgraded. This was the beginning of the successful application

of electronic management systems for diesel and gasoline en-

gines, which easily complied with all statutory regulations.

Above all, Bosch responded to the aim of lowering exhaust

emissions with the lambda sensor, which was produced from

1976 onwards. The lambda sensor made it possible to use a

three-way catalytic converter, which cuts emissions from a car

gasoline engine by up to 90 percent.

EconomicalThe third pillar of the 3S programme has been and continues

to be a reduction in fuel consumption. Even 20 years before

the programme was inaugurated, Bosch was setting standards

with gasoline injection systems in small cars that reduced con-

sumption by up to 20 percent. However, at that time the sys-

tems were still expensive and gasoline was cheap, making it

difficult to establish the systems in the market. Their main suc-

cess was in racing cars, due to the enhanced performance they

provided. From the 1960’s onwards, however, against the back-

drop of increasing oil prices and fuel consumption regulations,

the concepts developed by Bosch began to bear fruit. Bosch’s

success was primarily attributable to the exact dosage of fuel

provided by injection systems and to ignition systems that

functioned in a precise manner, and which have been working

even better since electronic management systems were intro-

duced in 1967.

Staff in front of the entrance of the first Bosch Service Centre inJohannesburg

the old... the new

page 15

He spells out the advantages clearly and unambiguously,

“Fewer industries are developing as rapidly as the Automotive

Aftermarket, creating substantial pressure for the independent

aftermarket workshops to keep up with technological devel-

opments. With the growing share of complex vehicle electron-

ics, vehicle systems and parts are becoming increasingly

sophisticated, where workshop employees have to consistently

keep their qualifications up to date and in line with the tech-

nological developments. For example, even the replacement

of parts increasingly requires the use of diagnostics test equip-

ment. Furthermore, today’s consumer places greater impor-

tance on customer service in addition to quality workmanship

and reasonable rates.

Facing these challenges calls for an effective and comprehen-sive support package. The Bosch Service concept is designedto drive the workshop business forward in facing the chal-lenges. As the world automotive industry’s leading supplier oforiginal equipment, Bosch has the definitive edge in know-how from research and development and especially in the ap-plication of new automotive technologies.

The Bosch and Bosch Service brands are powerful brands andare recognised for innovative automotive technology, and thesebrands are synonymous with efficiency and long service life. You and your customer can rely on this recognition. With the workshop concept, diagnostics, service, parts supply

and the powerful Bosch and Bosch Service brands, gives you the competitive edge that sets you far ahead of the competition.

Without effective marketing, a workshop concept cannot succeed, and marketing is a decisive element of our success.Our distinctive Bosch Service corporate design is the callingcard to the motorist. Capitalise on corporate design internallyand externally which radiates warmth and professionalism. At Bosch, we support our Bosch Service partners with parts,technology, know-how and a workshop concept; all the essen-tials under one roof. This is what distinguishes Bosch Servicefrom all other workshop concepts and gives the competitiveadvantage.”

Workshop ChallengesThe automotive workshop business today is experiencingsignificant changes

• Manufacturers extended service intervals

• Growing complexity of automotive systems and parts

• Replacement of parts often only possible by using diagnostic tools with corresponding software

• Higher qualification of workshop staff necessary

• Considerable investment in diagnostic tools and contin-uous technical training necessary

• High customer expectations and demands

• Increasing pressure to ensure that servicing quality standards are achieved

• Aggressive price competition and demands for full andeffective service

To cope with these considerable challenges, future-orien-tated workshops need the support of a strong partner.

Bosch Car Service Partner-ship for the futureBosch is the original partner in securing the future of yourworkshop, offering a complete system for the workshopbased on:

• Quality automotive parts at competitive prices

• Software and hardware for diagnostics and trouble-shooting

• Expertise and know-how based on technical support and training

• Technical information from the technical hotline

• Highly trained field support personnel

• Comprehensive warranty programme exclusive to theBosch Service Network

• Internationally recognised Bosch Service Brand

• Effective marketing and national advertising

• Customer orientation programmes and customer careline

• Dedicated website promoting the Bosch Service Network

• Secure dealer network online information platform

• Awards programme to reward to performing Bosch Service’s

• Strategic national deal partnership

• Bosch Service Marketing Forum

• Service Quality tests ensuring highest level of customerservice

page 16

Bosch Diagnostics: The Workshop’sFutureThe Diagnostic Concept

Leading edge vehicle technology continues to grow at a rapid pace. In

order to remain competitive, South African workshops are finding it

increasingly necessary to partner with Bosch Automotive, whose tech-

nological advantage gives it the capability of offering a full workshop

modular support package, known as the Diagnostic Concept, consist-

ing of Test Equipment, Technical Information, Technical Training and

a Technical Hotline.

Test Equipment

Bosch Automotive’s objective is to offer the best workshop diagnostic

concept to southern Africa’s automotive workshops. The company

offers an extensive range of diagnostic and test equipment products

enabling workshops to provide superior service for passenger, light and

heavy commercial vehicles, whether petrol or diesel. There is a vital

and close inter-relationship between the four elements of the Bosch

Diagnostics package offered to workshops. Ewald Faulstich, Director

Automotive Division at Robert Bosch (Pty) Ltd, describes it succinctly;

“It is absolutely essential that the operator

participates in all the elements. You can-

not have the test equipment in isolation

without the ESI[tronic] software mod-

ules. There is a certain amount of

choice and selection here and the

operator will ‘buy-in’ at the various

available levels A,B,C,D and so on.

Bosch Car Service: Code ofPractice Aim

We at Bosch appreciate that it is not always straight-

forward for a consumer to make an informed choice as

to the suitability of the services and standards being of-

fered by a workshop. Quite understandably, many cus-

tomers do not possess a thorough knowledge of how

their vehicle operates and equally, many workshops are

unable to completely secure the confidence of cus-

tomers when they carry out a service or repair. Also,

the workshop sector often receives criticism from con-

sumer organizations and the media.

The purpose of this Code is to provide consumers with

a clear guide as to the standards and practices that a

Bosch Car Service will adhere to and upon this basis,

we trust, make an informed and favourable decision to

use a Bosch Car Service. Bosch Car Services’ are re-

quired to comply with the provisions of this Code.

These provisions specify how a variety of customer han-

dling measures and trade practices are to be conducted

to the benefit of the customer. Furthermore, each

Bosch Car Service is required to fulfill all relevant statu-

tory and legal requirements, in particular those relating

to Trading Standards, Health and Safety, Environmen-

tal Protection and Employment. The procedures out-

lined in this Code are additional to the legal rights

assured to the consumer and the content of this Code

is not intended to detract from such laws and their

remedies.

Handling Customer Complaints

The Bosch Car Service and Bosch have a firm commit-

ment to customer satisfaction and therefore endeavor

to work with the customer to resolve any complaint

fairly and speedily. Should the complaint remain unre-

solved despite reasonable efforts to resolve it, the cus-

tomer has the option to have the matter conciliated by

an independent third party. This section of the Code

details the complaint handling procedure.

Customer Participation

Customers of the Bosch Car Service Network have a

real opportunity to help make the Bosch Car Service

Code of Practice work to best possible effect and help

Bosch monitor and improve the performance of indi-

vidual Bosch Car Services’. This section details how

customers may assist.

page 17

In 1906, Bosch had around 600 associates working in

Stuttgart, where the company originated. The

company had been expanding in Europe since 1898,

but now took its first step onto another continent,

opening its first sales office in South Africa; a move

that practically coincided with the opening of its first office

in the US Friedrich Hoppert & Co of Hamburg, which had

an office in Johannesburg, was contracted to sell products

from Stuttgart. It continued to work for Bosch for the next

40 years. The two world wars had a severe impact on business

in South Africa, with the Second World War proving particu-

larly damaging because of the destruction of the company‘s

production facilities in Germany. By 1950, Bosch sales and

the size of its workforce had exceeded pre-war levels, but

activities outside Germany accounted for just 10 % of total

sales. Bosch responded to this situation by re-establishing its

international activities. In South Africa, Technical Supplies

Company (Pty) Ltd in Johannesburg was granted exclusive

marketing rights in 1950.

Diesel-Electric and AutoElectrical Engineering

Another milestone was reached in 1951 with the foundation

of Diesel-Electric, a Cape Town-based subsidiary of the above-

mentioned Technical Supplies, which was given the job of mar-

keting Bosch diesel and electrical products. The year 1956 also

proved, with hindsight, to be an important year for Bosch in

South Africa, seeing the foundation of Auto Electrical and in

1971 became a Bosch subsidiary and production site in 1976.

Robert Bosch South Africa

On August 6, 1965, Bosch founded Robert Bosch South Africa

(Pty) Ltd in Johannesburg in order to take charge of sales and

to establish local production capacities. In 1973, Robert Bosch

GmbH acquired a 30% holding in Diesel-Electric Holdings

(Pty) Ltd (DEH), which was also based in Johannesburg and

had until then been selling Bosch diesel and electrical products.

In 1977, DEH was merged with sister company Robosa

Distributors (Pty) Ltd, which handled the marketing and

advertising of Bosch products, to form Diesel-Electric South

Africa (Pty.) Ltd. – “DESA” for short. In 1983, this company

became a wholly-owned Bosch subsidiary.

Takeover and reorganisation

The year 1985 also saw a great deal of reorganisation, this time

with the merger of Diesel-Electric South Africa and Auto

Electrical & Engineering Co (Pty) Ltd to form Robert Bosch

(South Africa) (Pty) Ltd, a wholly-owned subsidiary of Robert

Bosch GmbH. This company coordinated all activities from

production through to sales. In 1998, the new sales

centre was opened in Midrand, 70 kilometres from its

production facility in Brits, bringing sales into line with the

needs of the market in South Africa. Today, some 1 000

associates are employed here and at the Brits plant.

ESI[tronic] Software

ESI[tronic] software is designed with considerable flexibility in

that it can be used as “read-only” technical instructions on a

desktop PC, or combined with the Bosch KTS Diagnostic

Analysers, as the ECU Fault Detection and Erasing software.

Training

Then a key issue: if you have the test equipment and software,

but your technicians haven’t been trained properly, it becomes

a pointless exercise. Training on the equipment and the pro-

grammes is absolutely essential and will provide you with a par-

adigm shift of performance in your workshop as your

technicians and customers find you getting more and more out

of the systems.

Technical Hotline

Another key element is the back-up Hotline facility for our

trained customers using the Bosch equipment and software. If

at any stage they encounter problems or have queries about

what is on the screen, or an intricate diagnostic problem, they

merely pick up the phone and dial our hotline for instant sup-

port. Our experts will be able to talk them through from screen-

to-screen so to speak and our trouble shooting success rate runs

at almost 100%.”

South Africa leads the international charge for Bosch

100 Years of Automotive Service to South Africa

page 18

Current major accounts for the Automo-

tive Division include all vehicle manu-

facturers (OEMs) and P&As in South

Africa, Diesel-Electric, the Midas Group

and AutoZone. The division is respon-

sible for taking its own message to the market with re-

gard to new products or technological developments.

To enhance the brand, sales and marketing initiatives

are all adopted from centralised corporate guidelines

from Bosch’s parent company in Germany. The Bosch

brand is also visible at exhibitions and other public

events such as the Johannesburg International Motor

Show and Automechanika South Africa. A major high-

light was the centenary event in 2006, “100 Years of

Bosch in South Africa”, which underlined the success

of the company over the last century. The brand is

further enhanced via its e-commerce website, where

Bosch conducts business online for efficient and effec-

tive customer service. Bosch believes that innovation

today ensures business tomorrow. The Bosch values

steer all company actions, a continual guide to priorities

and commitments.

Ewald Faulstich, Director Automotive Aftermarket

Division at Robert Bosch (Pty) Ltd since 2000, says that

the South African operation is committed to upholding

the traditions of the organisation, and he is proud to

represent a company which is so all embracing. “Orig-

inal equipment supplier, replacement parts, workshop

equipment, diagnostics in all its facets, technical train-

ing, technical and warranty support, a customer

hotline, and the commitment that goes with these serv-

ices, I strongly believe that there is hardly any other

company within the automotive environment that fits

the “one for all” title better than Bosch. Consequently,

we from Bosch, as the world’s largest automotive sup-

plier, want to leverage our systems competence for the

benefit of the independent aftermarket. This is our

future; this is our destiny, for the next 101 years.”

From the automotive industry to the home DIY, Bosch is a brand that is trusted by South Africans.Bosch merchandising ensures that clients actually buy peace of mind and a product that is “in-vented for life”. Thus Bosch is positioned as the best in class provider of automotive products, powertools and security systems in South Africa. The company’s main aim is to improve quality and lifethrough leading technology and innovation advancements for all target groups. These groups aresupported by the respective divisions and their business concepts. The Automotive Division en-compasses automotive parts, diagnostics and workshop concepts.

page 19

The bank’s success is due in no

small part to the partnerships it

has established with dealerships.

Dealers are provided with

finance for showroom stock,

training in finance and insurance, as well as

optimal dealer operations. It is through these

partnerships that WesBank is able to integrate

the finance solution with the purchase,

providing customers with optimum conven-

ience and the quality customer services. The

partnership business model has served the

bank well – so well that 90% of business is

currently conducted through partnerships.

A Long History

WesBank’s origins can be traced back to the

late 1800s when Robinson South African

Banking Company was established in Lon-

don. By the early 1900s the company was

known as the Colonial Banking and Trust

Company Limited. In 1968 Colonial Bank

& Trust Company merged with Western

Credit Africa Limited, a company which

focused on finance for the motor dealer, and

seven years later the company was acquired

by Barclays Bank and became known as

WesBank, ‘The Wheels Bank’, thus estab-

lishing the brand that is known today.

WesBank - the Dealer BankThe WesBank brand has become almost iconic in South African society. Long known asthe ‘Wheels Bank’ it has grown to become the country’s foremost vehicle and asset financecompany. The organisation also provides fleet finance and fleet management services, finance for expensive capital equipment for business, import finance and a full range ofinsurance and value added products.

page 20

In 2001 WesBank underwent a

brand invigoration exercise.

The result was the birth of a

compelling brand personality

supported with a new communi-

cations campaign which reinforced

the bank’s strong service ethic. The campaign

utilised the payoff line, ‘Our customers thank

us for our great service in the strangest ways.

WesBank – Put us to the test.’ One of the

pillars of the brand offering has been the assur-

ance that the bank is able to deliver on its service

promise.

Based on its philosophy of service, WesBank has re-

ceived more than its fair share of awards: it was

awarded top brands status in both 2006 and 2007

by the Sunday Times and has been rated the number

one vehicle finance company for seven consecutive

years by PricewaterhouseCoopers. In 2007 and 2008

it was also rated the best large company to work for by

Deloittes.

In fact, since 2003 the brand has experienced significant

growth in its business-to-business division. This has been a

strategically fortunate move as the corporate market has

proven itself to be more resilient to the peaks and troughs ex-

perienced by the consumer market. It is anticipated that the

business-to-business division will overtake the bank’s motor

vehicle finance business in the next few years.

Service the KeyThe bank’s service orientation has been well entrenched since the first‘Wheels’ campaign was launched in 1979 and which promised financein 15 minutes, to the Leon Schuster ads of the mid-90s. To this dayservice excellence forms the cornerstone of the bank’s offeringwith the organisation’s chief executive insistingthat employees do not allowthe sun to set on acustomer complaint.

WesBank’s employees are not allowed to let

the sun set on a complaint – and this

stellar theme was carried through to

WesBank Christmas cards, and the

subliminal promise to take their

customers to the stars.

page 21

WesBank has achieved a number of firsts in

its long history: it was the first vehicle fi-

nance company to have a presence on

dealer floors and the first to write R100

million worth of new business as early as

1982. Its growth prospects have continued to exceed expecta-

tions with the result that today one in three cars is financed by

WesBank. The company has a strong presence in the corporate

asset market and dominates in the personal loans middle mar-

ket. Purchasing vehicle finance was typically a disjointed and

disconnected process until WesBank pioneered the concept of

bringing the product to consumers and acting as an agent for

both the bank and the dealer. WesBank was also the first com-

pany to provide customers in remote rural areas with the op-

portunity to interact via video with finance and insurance

specialists, the first to provide dealers with a business intelli-

gence portal, the first to market with an Islamic Shariah ap-

proved vehicle finance offering, the first to introduce a patented

digital pen which removes the need for paper and allows deals

to be captured directly to the bank’s scoring system thereby pro-

viding real-time loading of applications, and the first to intro-

duce partner marketing and job creation finance.

Soweto Street Race

Wesbank was the first company to bring the thrillsand spills of motorsport to a Township in July2009 with the Wesbank Street Race in Soweto.More than 20 000 Sowetans came to see whatmotor racing is all about.

A String of Firsts

page 22

The bank’s most recent television campaign was

launched in May 2008, the first fully fledged

brand repositioning to come from the organ-

isation in more than six years. Prior to the

launch of this campaign the bank was, to all

intents and purposes, ticking over from an ad-

vertising perspective as it turned its focus onto the aggressive

development of its partner based business model. WesBank has

long relied on its business model for differentiation from its

competitors. There is no doubt that this strategy served the or-

ganisation well as its revenue in the corporate and retail markets

grew substantially with the addition of value added services. In

addition to significant growth in the asset finance business, it

also grew its business in terms of financing aviation, yellow

metal and heavy machinery. However, the ‘Wheels Bank’

premise was no longer providing the brand with any advantage.

A comprehensive internal and external brand research process

ensued which resulted in the formulation of a new positioning

for the brand. No competitor is able to adopt this unique

positioning as WesBank is the only organisation to occupy the

specialist asset finance space at this stage. In formulating the

new campaign and commercial, the challenge was to identify

credible ways of demonstrating the bank’s expertise and know-

how and communicate this to the various target audiences.

The new campaign also needed to stretch WesBank’s stronghold

from only vehicle finance into the broader category of asset

finance while at the same time creating the same differentiation

on a brand level. In a significant break away from previous

advertising, the new television commercial sent a powerful mes-

sage about its people’s expertise and know-how in a sophisti-

cated and contemporary manner. The campaign builds on its

previous brand positioning as service champions, with an

enhanced promise of expertise and know-how. Based on a recent

international study which set out to discover where true talent

comes from, the new commercial is called ‘the source of talent’.

The study found that practice does ultimately make perfect,

supporting the view that WesBank’s 40 years of experience and

expertise stands it in excellent stead going forward. Based on

this finding, the commercial, developed by Johannesburg-based

advertising agency Ogilvy, depicts a montage of individuals

from different disciplines all set on perfecting their craft through

practice. The precision and perfection of the different art forms

portrayed in the commercial are intensified through ultra slow

motion filming. This was achieved by shooting the footage at

2 000 frames per second. Essentially the commercial commu-

nicates the fact that being an expert in your field does matter.

To support this view, the payoff line, ‘WesBank – We know

how’ was developed. This line is also used in internal commu-

nication although it is always contextualised. The campaign was

launched at the end of May 2008 with a fairly aggressive televi-

sion burst. The campaign was supported by a print campaign

which included functional messages depicting what the organ-

isation actually does, and the campaign continues in various

forms in 2009.

The bank has become even more conscious of each experience

the customer has with the brand as a result of the launch of this

campaign. To this end it has identified customer touch points

such as the dealer floor, contact centres and the Internet as

examples, where it measures the outcome of the customer ex-

perience. WesBank’s latest campaign signals the coming of age

of a highly successful brand with a long history behind it. It’s a

bold promise which the bank is not unaware of, but that it

believes it has the ability to meet and deliver. And the dream

and reality continue.

Turning decades of experience into expertise

page 23

page 24

It is true that a lot has changed in the forty plus years

since a couple of entrepreneurs started Midas in the

late sixties. Looking at the Midas storefront and the

company’s long established base in Meadowdale on Jo-

hannesburg’s East Rand, attached to a massive ware-

house and amongst part manufacturers, mechanics and vehicle

dealerships, shows that much has stayed the same. From this

goal came the internal motto that guides all Midas operations,

“Delivering the promise”. The Midas-motto has remained true

throughout the years, but the company grew and changed in

tune with the South African economy. From humble begin-

nings in the era where Ford and Chevrolet reigned supreme,

Midas now serve the local market via hundreds of stores selling

more than 600 tonnes of automotive related products and

equipment each month. Mirroring the changing demograph-

ics of the country that gave it life, Midas-stores are owned by

hundreds of entrepreneurs in their own right, from every race,

creed and background. These entrepreneur-driven stores now

serve drivers of over 50 brands of vehicles in a country where

less than 150 model choices in the swinging sixties blossomed

to a peak of more than 2 000 options by the time the country

celebrated 10 years of peaceful democracy.

The early years

Midas, in concept, first opened their doors to the South

African public in 1968. Even in these early years the company

saw a need for a trusted supplier of vehicle parts. The company

explains that the goal then, as it remains now, was to offer

value for money products that would save motorists money,

but to stay well clear of so-called white box parts that offer a

fire sale price but that burn your fingers in the end. Rolf

Gudegast, chairman of NAPA and a member of Midas since

1976, explains the Midas mindset and development: “A great

deal has been achieved in a relatively short history. The next

quantum leap in our business was achieved with the decision

to support primarily the local component manufacturing in-

dustry and its leading brands and the introduction of bulk

buying, together with the revolutionary dropshipment con-

cept. Those decisions added new dimensions and created the

foundation for the NAPA buying group and the Retail and

Workshop franchises”.

Time moved on and Midas found that their recipe for success,

being a mixture of the ingredients quality, range, availability,

There is More to MidasSitting in the traffic on the way to the Midas Group’s head office in the heart of industrial Johannesburg makes

one realise how pervasive this group is to the national motor industry. With the national vehicle park’s average

age estimated at a decade or older, few can claim not to know the Midas touch, whether it is for replacement

wiper blades at a Midas before a Highveld thunderstorm or to fix the trailer’s wiring at a Motolek-branch before

the trek to the Kruger National Park. Still others can speak off the work done by ADCO, CBS, and Auto Care

and Diagnostics, when the noise under the bonnet signalled more professional help.

page 25

price and advice, stood the test of time. The company entered

the era of neon clothing, of Billy Idol and of horrific car

colours, with a commanding market share and a now well

known presence throughout South Africa. It was in the boom-

ing Eighties that the Midas success story found its way across

the boardroom table of the Johannesburg Stock Exchange,

then still in the heart of downtown Johannesburg. After thor-

ough investigations and negotiations the management of

Midas rang the opening bell of the JSE in early May 1986, as

is the privilege of any newly listed company. Shares started

trading immediately and continued to do so for the next 16

years.

Building the business

Since listing Midas Ltd. found itself in the spotlight of in-

vestors as much as it has been in that of the motoring public.

With a sound business model and solid foothold in the coun-

try where a car was far more than a means of crossing South

Africa’s wide open spaces, Midas was able to gain access to in-

vestor funds to oil the wheels of its expansion plans. The

model was simple. As Midas has done for the aftermarket re-

placement parts market, so it could do with a myriad of similar

related sectors. The company expanded upstream to part

sourcing and supply and downstream to other sectors of the

automotive market. Midas became a corporate force to be

reckoned with and yet, as the structure of its businesses will

show, it never chose to flex its muscles and in the process lose

its character as a trusted source of automotive help. It was

perhaps this company motto that lead the Midas management

to a structured buy-out and de-listing of the company in early

2002. Business has grown, yes, and investors could find little

fault, but in the arena of public investing a drive for profit

often times pays little heed to long term goals for stable and

responsible growth.

Midas, the company, phased its move away from the bourse

in two steps. In 2002 it de-listed and started trading as the

private company it was before 1986 and soon afterwards, in

2003, it completed the process by welcoming a selected group

of partners into the business. Money talks, they say, so an

analysis of the shareholders’ structure after de-listing speaks a

lot of the true Midas nature. In forming the private company

Midas stayed in character and it invited its franchises and a

broad based black empowerment group under the leadership

of the well-known Jomo Sono to head into the future with

them. Shares between these groups and the Midas manage-

ment were divided almost equally and this gave the company

broad and balanced representation. Midas also proved, by pre-

empting any pressure from government and lobby groups, that

it was willing to transform the business and that including

partners from previously disadvantaged backgrounds was a

sound strategic business decision.

Further proof to Midas’ nature of being pro-active is clear in

the structure of its franchise operations. The company invited

franchisees from all corners of the country, and its immediate

neighbours, and from all walks of life to buy into the Midas

success. By doing this the company gained strong

demographic representation even before it became a political

prerequisite.

page 26

The franchising model is simple and mirrors the

shareholding approach. Midas invites existing automotive re-

tailers, service centres, clutch and brake specialists or auto-

electricians to join its network, if their store and their level of

service comply with the strict Midas requirements. Once you

get accepted, however, your title changes to “Associate” and

you become a true partner.

Midas today

Midas-franchises may be immediately recognisable by its or-

ange and black colour scheme, but the size of the Midas

Group may surprise most. With 430 franchises and 9 major

distribution hubs, Midas is by no means a small player. The

company remains adamant that it relies on the success of its

franchises for its own success. That is why the company

aligned its corporate division to serve franchises, notably

through marketing and advertising, bulk buying, aligning

logistics and distribution services and offering in-house sup-

port, such as through its free marketing and advertising sup-

port division. Out of the hundreds of franchises, Midas itself

owns only 14, which it uses as a direct line of communication

from shop front to managing director and as a marketing sur-

veying tool to help gauge its product and service offerings. The

company further supports more than 7 000 independent

stores and service centres through its purchasing and supply

co-operations.

The big boys

Napa, PIA and Autocycle Centre might not ring a bell to some-

one looking for a quality replacement clutch kit at a Midas store

in Bloemfontein, but to Midas franchises and the thousands of

other dealers, service centres and even suppliers these names

means better prices through combined purchasing clout.

The National Automobile Parts Association (Napa) was one of

the first divisions to spawn from the original Midas. Formed in

1973, Napa set its aim on serving the retail sector and its mem-

bers through co-operating on marketing and buying operations.

The network now reaches from Namibia to Botswana and

everything in between and it has become a de facto market for

many products in this sector. The slogan “Delivering the prom-

ise” does of course take a whole new meaning, with Napa serv-

ing its members and not the general public. Parts Incorporated

Africa (PIA) shares many of the goals of Napa and has as its core

focus the vehicle parc between 4 and 12 years old. The company

offers products to its thousands of retail members through a

modern trading platform that allows retailers and franchisees to

make informed purchasing decisions based on market trends

and the flow of order data. The system relies on a state of the

art software system that allows for trading between members

and PIA itself and it is powerful enough to transact thousands

of invoices per day, with the current count measuring more than

11 000 every day. Midas’ third business to business division is

its Autocycle Centres. This division serves the somewhat smaller

motorcycle and quad market with products and services that

are similar in approach to that of PIA, but far more focussed on

anything that requires a helmet to ride. Here the company

serves a multitude of small and large aftermarket service and

repair shops and its range of products extend to virtually any

part of the motorcycle community, including niches such as

Moto-X with dedicated brands such as AMA and Izumi.

Defining Midas – the franchise network

The Midas franchise shares more than just a name with its

mother company and it is clearly the company’s proudest

achievement. Through its network of 265 Midas stores in

South Africa and all of its neighbours Midas (the group) has

page 27

a way of delivering the promise directly to vehicle owners in

southern Africa. It is indeed this direct line to Joe Public be-

hind the wheel of his trusty old bakkie allows Midas to align

its products and pricing to serve the customer and in doing

so offer far more than other wholesale-only operations. To

prove this point Midas points to the fact that there are stores

in virtually any part of the country, including four stores in

Soweto, a fast growing market for its products.

The Midas team has much to say about the Midas-franchise

benefits. Products and services are all guaranteed for 12

months, nationally, and Midas counts more than 1 000 qual-

ified sales and service advisors amongst the team that supports

the Midas franchise network. The Midas franchise has also in-

creased its range of self-branded value products, which offer

high quality, but at a lower cost. Starting with basic necessities

such as Midas-branded motor oil, the range now reaches prod-

ucts such as professional tools with a lifetime guarantee and

Moto Part quality guaranteed vehicle replacement parts.

Motolek is the second largest franchise in the Midas group’s

network. Having been incorporated into Midas early in its ex-

istence and boasting more than 25 years in operation, Motolek

seeks to serve the “Do It For Me” (DIFM) market with auto-

electrical services that range from wiring, fault finding and

general engine diagnostics to alarm systems, tracking devices

and even cellphone hands-free car preparation. The Motolek

concept has also expanded to include Battery Hub operations,

which offers a range of well known and self-branded vehicle

batteries and all services associated with it, including battery

testing and advice. Midas has grown this division to 60 stores

nationwide, with more than 40 stores offering Battery Hub

services. As with the Midas franchise, each product and service

carries a national guarantee, even though each Motolek store

is still the proud operation of an entrepreneur.

ADCO joined the Midas fray in preparation for, and

ultimately as an answer to, the growing sales of modern diesel

vehicles. Using the same model of approving and in pre-exist-

ing specialist stores under the ADCO-brand and Midas

promise, this division quickly grew to more than 40 stores.

ADCO, as Motolek and other divisions such as CBS, offers

the added benefit that it is qualified to service vehicles from

your trusty old farm tractor to the major interlink heavy duty

trucks that serve the nation. It also has, through Midas’ whole-

sale divisions, access to the best and most modern equipment

and parts from heavyweights such as Denso, Delphi, Stana-

dyne, Hartridge, IHI and Yanmar which the Midas Group ex-

clusively supply. Bosch and Zexel are also among the leading

brands supplied by Midas Group. All these brands are well

known amongst original equipment manufacturers, which

chose these parts when designing their vehicles. The ADCO

network also offers a nationwide guarantee on parts and serv-

ice on everything it does, from repairs or replacement of high-

pressure diesel injectors to turbochargers and diesel pumps.

OK, so replacement parts, auto-electrical concerns and diesel-

related problems and service is covered. What remains? A lot,

page 28

says Midas, who also boasts a network of clutch and brake spe-

cialists through the CBS franchise network. CBS applies the

same success recipe to this market by stocking well known and

respected products from names such as LUK and Fras-Le, of-

fering qualified service and assistance on everything from

brake cylinders and shoes to clutches and pressure plates, back-

ing the service through a national guarantee and again spread-

ing its service from passenger to commercial vehicles. The

younger CBS network has already grown to more than 18

stores.

Auto Care and Diagnostics (ACD), the vehicle service and

maintenance specialists, is the newest kid on the Midas-block

and it is proof of Midas’ ability to gauge the market and pro-

actively reacting to modern trends. In this brave new world

where a computer chip controls everything from your window

mechanism to your fuel injection mixture, Midas recognised

the need for assistance to owners of these vehicles. ACD is

being developed with modern vehicles in mind, recognising

that the world is changing, but that vehicle owners will always

look for a helping hand and will no doubt turn to the name

they have trusted since the sixties.

Work/Life balance

Need further evidence that Midas has its ears to the ground

of the South African motorist? Here is your proof. Through

years of studying the market, Midas recognised that it could

apply its promise to some, seemingly unrelated market seg-

ments. Given this feedback from its franchises and markets,

Midas quickly moved to incorporate lifestyle products into its

philosophy and its product strategy. This has lead to Midas

now importing and supporting products ranging from Patriot

cycles to fishing gear from big names such as Okuma, Loomis

and Franklin, Bandit and SureCatch and even outdoor gear

from names such as CampGear.

The future

Looking at Midas, it is clear that much has changed since the

early days of ’68. It is also very clear that Midas, under the di-

rection of managing director Gordon Odgers and his team,

has stayed true to the goals it set when it first opened its doors.

This approach has given Midas the self confidence to tackle a

brave new world where money is tighter than ever, but where

the Midas offering of value and advice has become even more

attractive.

But the world is changing and Midas is listening attentively.

Vehicles are becoming more and more complex and many peo-

ple are turning to Midas not only for assistance in doing it

themselves, but also for help in getting it done. In this world

Midas is already well positioned with franchises such as Mo-

tolek, CBS, ACD and ADCO, but more is to come. Through

this, Midas concedes, it is heeding the call from the growing

population of female vehicle buyers and the growing black

middle class, but even more it is staying true to its internal

motto and to the motto that everyone knows it by, “There is

more to Midas”.

page 29

Of course, massive distribution and nation-

wide availability of the brand, has resulted in

many thousands of Willard Batteries signs

acting as a regular subconscious reminder

and endorsement of the market leader.

Batteries are somewhat different to most other automotive and

industrial products in that they are perishable. This has pro-

vided the opportunity of building strong relationships in the

trade through regular contact. To service the variety of user

markets properly and efficiently, a formidable supply chain

structure has been put in place, giving a massive range of cus-

tomers exactly what they need when they need it.

As a trusted power solution provider, Willard Batteries is able

to address the needs of a vast array of challenges, industrial

and automotive. In fact, together with a network of overseas

affiliates, there is no application that cannot be met, from

Auxiliary power and Battery Bays to Utilities and Wireless

Network backup and everything in between.

Willard Batteries has also built a reputation as a good and con-

cerned corporate citizen. Working closely with many cus-

tomers, there has been a commitment to focus on the positive

aspects of the battery and stored energy industry, to give some-

thing back and play a role in nation building.

With environmental issues having emerged at the forefront of

the global political agenda in recent years, it is appropriate to

recount one of the most exceptional environmental success

stories associated with the South African automotive sector;

the recycling of lead-acid batteries.

For some time Willard Batteries has been making a significant

contribution to the ‘greening’ of South Africa. Its ‘Go Green,

Go Willard’ campaign, in which motorists are encouraged to

bring old batteries to Willard outlets for recycling, has been a

resounding success and has helped to make our country

cleaner and its citizens healthier.

A portion of the proceeds of the recycling operation is donated

to Food & Trees for Africa, a local award winning non-profit

organisation tasked with the planting of trees in areas that

need them most. This commitment is indicative of the posi-

tioning of the Willard Batteries brand, targeting the more tra-

ditional and conservative automotive and industrial consumer

and encouraging a partnership responsibility for the environ-

ment.

Willard Batteries started trading in 1954, under licence to the

American company ESB. It focused initially on the manufac-

ture of automotive batteries, but introduced industrial batter-

ies in 1966, followed by the manufacture of motive power and

stationary batteries in 1967.

Willard Batteries was acquired by Powertech in 1981, becom-

ing a 100% South African-owned company in the process.

Go Green…..Go WillardWillard Batteries is a brand namethat has become woven into the fab-ric of South African life. This is theresult of long ongoing relationshipswith people in a variety of sectorsand in many walks of life and notjust motorists. From the informaltownships in which electricitywasn’t always available - to peoplein their professional capacity - liketelecommunications, mining, farm-ing or warehousing.

page 30

It also attained a unique position in the domestic battery man-

ufacturing arena by becoming the first South African manufac-

turer to be awarded the Quality Management System 0157 Part

II listing for its automotive production facility. It was later

awarded the same listing for its industrial operation.

In June 1988 this was changed to the SABS ISO 9002 quality

accreditation, to be followed by all the important quality ratings

- including the ISO 14001 and OHSAS 18001 approvals, the

Ford Q101 rating, the VDA6 rating, and the ISO/TS 16949:001

rating.

One of the most significant of the standards is the ISO

14001:1966. This is an international voluntary environmental

management standard aimed at minimising the harmful effects

on the environment caused by an organisation’s processes and

activities.

Importantly, it provides a framework of control for an Environ-

mental Management System against which a third party can cer-

tify an organisation.

This standard is applicable to any organisation that wishes to:

• implement, maintain and improve an environmental man-

agement system

• assure itself of its conformance with its own stated environ-

mental policy

• demonstrate conformance

• ensure compliance with environmental laws and regulations

A portion of the proceeds of Willard Batteries’ recycling operation isdonated to Food & Trees for Africa, a local non-profit organisation

tasked with the planting of trees in areas that need them most.

page 31

With increasing environmental consciousness have come

increasing demands of businesses, as well as their customers

and suppliers, to demonstrate higher levels of commitment to

the preservation of the environment and the conservation of

natural resources.

Willard Batteries’ PE site embarked on the road to certification

on the ISO 14001:1996 Standard in 2001. Initially, the proj-

ect seemed insurmountable as the number of environmental

hazards present at the site at the time meant that certification

would be a challenging exercise. Nevertheless, Willard Batter-

ies was committed to the achievement of the ISO 14001 cer-

tification. A generic environmental management system was

sourced and adapted to battery manufacturing processes and

activities.

ISO 14001:1966 certification was finally achieved in June

2004 and Willard Batteries became the first lead acid battery

company in South Africa to achieve this certification. As a

member of the Powertech Group, the Port Elizabeth company

became the first in the group to achieve this status.

Subsequent surveillance audits maintained the certification.

The Standard had, meantime, been upgraded from the 1996

version to the 2004 version.

The company achieved certification on the new Standard in

June 2007 and has since been successful in a subsequent sur-

veillance audit in June 2008. A second audit was conducted

in December 2008. This audit, too, was successful.

Passing another milestone, Willard Batteries also achieved

OHSAS 18001 certification at it PE site. OHSAS 18001 is

a certification specification for Occupational Health and

Safety Management Systems. OHSAS 18001 is an audit/

certification specification, not a legislative requirement.

Organisations registered to OHSAS 18001 can be more

confident about meeting the requirements of OHS legislation

and creating a workplace that is safe and without risk to the

health of its employees.

The road to certification for Willard Batteries on this

Management System was less challenging than its ISO 14001

certification, with fewer hurdles to overcome. The manage-

ment of Willard Batteries’ PE site committed to achieve

OHSAS in 2007. Implementation of the System took almost

exactly a year. The certification audit was conducted in early

December 2008 at the end of which Willard Batteries PE site

was recommended for certification on OHSAS 18001:2007.

The recommendation was accepted by the certification body

in Germany. The Port Elizabeth lead acid battery manufac-

turer is, once again, the first lead acid battery manufacturing

company in South Africa to achieve this accreditation.

Willard Batteries considers its employees its most valuable

assets and undertakes to safeguard them, as far as reasonably

practicable, from injury or damage to health arising from any

of the operations or activities associated with its business.

OHSAS 18001:2007 regulates this commitment and

the certification will bind the organisation to this

commitment.

Willard Batteries remains committed to the preservation of the environment and the conservation ofnatural resources.

page 32

Behind the Recycling Process

The recycling of lead-acid batteries is a multi part process. Ini-

tially the battery is broken apart in a hammer mill. The broken

pieces go into a vat or flotation pond where the lead and heavy

materials sink to the bottom while the plastic remains afloat.

At this stage of the process the polypropylene pieces are scooped away and

the liquids are drawn off leaving the lead and heavy metals behind.

The polypropylene, or plastic pieces are washed, air dried and then

melted together into an almost liquid state. The molten plastic is then

put through an extruder that produces small uniform plastic pellets.

These pellets are then used to manufacture new battery cases.

The lead grids, lead oxide and other lead parts are cleaned and melted

together in a smelting furnace along with additives used to help in the

removal of impurities. The molten lead is poured into ingot moulds.

After a couple of minutes, the impurities, or dross, float to the top of

the still molten lead in the moulds and is scraped away. The ingots are

then left to cool. Once they have cooled they are removed and are then

ready to be re-smelted to produce new lead plates and other parts for

new batteries.

An additional aspect of Willard Batteries’ commitment to the environ-

ment is its association with Arbor Week. This has involved the planting

of trees at selected schools around the country. For Arbor Month 2009,

the focus shifted to organic food gardening at schools.

A number of schools were selected according a set of criteria and were

given a Permaculture Starter Pack that fitted their specific needs.

Permaculture is much more than organic food gardening. It is a response

to the environmental crisis we face on our planet and is about designing

a system to provide food harvested from plants that are integrated into

the local ecology. Thus humans become ‘part of ’ rather than ‘separate

from’ nature, natural systems and cycles.

Willard Batteries’ support of these projects – which had a competition

element linked to them so that scholars were more easily motivated to

participate – is expected to aid the development of communities by en-

hancing diet and nutrition, and expanding their members knowledge

and skills base.

To attain good health and nutritional status, people need sufficient

knowledge and skills to grow their own fruit and vegetables.

Linking nutritional education through Permaculture at school level

breeds good practices at household and community levels. Sustainable

food gardening in a school setting will inevitably influence home gar-

dening and in other areas, communal gardening, which are important

in improving food security – and the health of all South Africans.

New Technology in the Latest Gen-eration Batteries

Previously, the aftermarket batteries manufactured

at Powertech Batteries’ Port Elizabeth plant were

defined as hybrid batteries – consisting of one plate

calcium coated and the other plate coated with the

previous generation antimony based alloy. The lat-

est generation calcium-calcium silver plus batteries

have both plates coated with calcium, which

equates to a high performance battery with a

higher charging rate. These batteries require very

little maintenance and under normal conditions

will never need topping up with water. With the

electrodes now being manufactured in a continu-

ous process, to much closer tolerances – together

with tamper free caps – modern Willard Batteries

have the benefit of not requiring maintenance by

the motorist.

Other Willard Battery features include:

• Expanded metal technology plates on both pos-

itive and negative electrodes

• The new patented positive calcium-silver grid

alloy results in improved corrosion resistance

• Improved technology and equipment for cur-

ing provides much stronger electrodes

• Products are assembled on new automated as-

sembly lines for improved consistency and

product quality

• Water consumption is reduced even further

with the use of calcium alloys

• Improved self discharge characteristics. The use

of calcium alloys allows for a longer shelf life

compared to hybrid batteries

• A high performance battery putting out high

Cold Cranking Amps

• Low self-discharge provided there is no electri-

cal drain on the battery

Powertech Batteries continues to develop its man-

ufacturing activities in its plant in Neave Town-

ship, Port Elizabeth. Production takes place at the

same location where it all started for Willard in

1954. The production line has been constantly up-

graded and today has a capacity of around two mil-

lion batteries per annum. It is a cutting-edge, high

technology manufacturing facility that will not be

out of place in any country of the world.

page 33

The importation and local assembly operation

was followed by the establishment of manufac-

turing facilities at Rosslyn, near Pretoria, and

Nissan and its forerunner Datsun have provided

transport solutions for South Africans ever

since, while making a significant contribution to the develop-

ment of the local motor industry. Today, with the transforma-

tion of the country and along with it the unrestricted, and

highly competitive, motor vehicle market, Nissan is well

placed to continue its role in the South African automotive

market. Nissan currently enjoys around 10% of the total

South African vehicle market with a comprehensive range of

passenger cars and light, medium and heavy commercial ve-

hicles as well as recreational and specialised vehicles. To meet

its objective of significantly growing its market share, Nissan

South Africa is currently engaged in a dynamic programme of

new model introductions. A total of over 2 500 people are em-

ployed by Nissan in South Africa and, as part of its social re-

sponsibility efforts, the company is committed to training,

educating and advancing its workforce to the maximum po-

tential of each individual. Other elements of Nissan’s invest-

ment in upgrading the social fabric of society focus on adult

and child education, child welfare and job creation. Nissan

can trace its roots back to 1911 when the Kwaishinsha Auto-

motive Company was formed to produce the first Datsun cars

in Japan. This company was taken over in the early 1930s and

the Nissan Motor Company was first registered.

As Nissan became more and more established as a global motor

manufacturer, US production facilities commenced in 1980 and

the UK plant opened in 1984. By the 1990s, Nissan was ac-

knowledged as a world leader in technology with many of its

international manufacturing facilities being the envy of its com-

petitors. Motor industry expansion continued and it became

obvious that global production overcapacity was becoming a re-

ality and motor companies began to suffer, including Nissan.

To ensure their survival into the new millennium many motor

companies - including some old established names - were taken

over and others formed international alliances.

In 1999, Nissan Motor Company formed a strategic alliance

with France’s Renault group. The alliance between Nissan and

Renault was a natural fit as the two companies were of similar

size, the products fitted extremely well and their respective

strengths were generally in different markets. The alliance cre-

ated the fourth largest automobile company in the world.

Nissan – a Global Player with trueSouth African Roots

Nissan South Africa can trace its beginnings back half a century, to 1959, when the company called Datsun MotorVehicle Distributors was formed. The first vehicles imported from Japan were 38 one-ton pickups, which arrivedin 1960, and local manufacture, from completely knocked down units, started in Durban in 1961 with thelaunch of the Bluebird passenger car.

page 34

In 2000, Nissan Motor Company Limited increased its invest-

ment in South Africa by purchasing the 37% stake which the

Sanlam Group held in Automakers. The investment gave Nis-

san Motor Company control, which was subsequently in-

creased to 98,7%. In 2001 the South African company’s name

changed from Automakers to Nissan South Africa. Nissan

South Africa’s vehicle assembly and manufacturing operation

in Rosslyn is a leader in South Africa with regards to sound en-

vironmental practice in its manufacturing process and has won

numerous awards and recognition both locally and internation-

ally for its environmental efforts. These include the exclusion

of chlorofluorocarbons and other harmful chemicals from all

phases of its manufacture, chemical and other waste manage-

ment; water and power savings efforts; a man made wetland

which is a catchment area for storm water; recycling; and work-

ing closely with its numerous suppliers and dealers to ensure

sound environmental practice. All Nissan vehicles benefit from

Nissan’s international lifecycle approach of environmentally

sound vehicle design, use and recycling.

Essential to the ongoing success and growth of Nissan Manu-

facturing is access to Nissan’s worldwide technology, research

and development input has already been incorporated into Nis-

san vehicles in other parts of the world where similar climate

and road conditions to South Africa are found. The investment

by Nissan Motor Company of Japan into Nissan SA further fa-

cilitated this close technological cooperation.

Among the company’sachievements are:• The first South African motor company to achieve the

internationally recognised ISO 9001 and subsequent 14001

quality certification from the SABS in all its plants.

• An autospray facility to give Nissan vehicles a quality paint

finish in line with the best in the world.

• All production lines are highly automated to ensure consis-

tent quality.

• All Nissan vehicles undergo the company’s unique e-coat

anti-corrosion process prior to painting and consequently

have a three-year rust and corrosion warranty.

• All phases of the assembly process make extensive use of

computerisation for tracking, quality standards and vehicle

testing.

• Awarded the highest safety rating, Noscar, by the National

Occupational Safety Association for 20 consecutive years.

Nissan is currently the only South African motor manufac-

turer to hold this award.

• Two National Productivity gold awards for productivity

advancement.

Racing improves the breed

Nissan and motor sport are synonymous in South

Africa. The Rosslyn-based company, which has its

own state-of-the-art motor sport department in

Midrand, where it designs and builds off-road racing Navara

pickups for both domestic and international competition, has

long recognised the benefits of motor sport as a valuable mar-

keting tool and brand image builder. Success over the years in

all forms of motor sport, from circuit racing to rallying and

off-road racing, has built a reputation for performance, relia-

bility and durability as well as a large, vociferous and knowl-

edgeable fan base throughout the country and in neighbouring

states. It was soon after the first Datsun passenger car arrived

in Durban in knocked down form in 1961 that the reigning

South African champion rally driver, Ewold van Bergen,

bought a 1200 cc Datsun 310. A mechanical engineer, he can

justly be regarded as the father of Nissan’s motor sport career

in South Africa. He developed the little Datsun into a potent

rally machine and attracted the attention of Datsun in Japan.

He became a technical adviser and thus began a successful col-

laboration that was to last for some 15 years, while he estab-

lished himself as one of the all-time greats of South African

rallying, winning a further three drivers’ championships and

assisting Datsun to win the manufacturers’ title five times.

page 35

Old-timers will fondly remember the Datsun SSS, which made

its first appearance in rallies in 1969. Van Bergen, who joined

Datsun full-time in 1966 as a development engineer, was inti-

mately involved in the development of the SSS, both as a desir-

able road car which set new standards of driving pleasure and

as an all-conquering rally car. This was the car that a young Sarel

van der Merwe started his rally career in, finishing a remarkable

fourth overall in a standard 1600 SSS in his first Total Interna-

tional Rally in 1973. Another all-time rally great, Jan Hettema,

drove for the official Datsun works team in 1978, a notable year

for the company as it was the number one selling brand in

South Africa. In 1980 Hannes Grobler began a career as a Nis-

san works driver that was to last right up to 2009 and result in

10 national rally and off road championships. In 1986 he won

both the national off road and rally championships – the only

driver to achieve this feat in the same year.

Datsun was also a name to be reckoned with on the motor rac-

ing circuits in the 1970s, with drivers like Sarel van der Merwe,

Jan Hettema, Hennie van der Linde and George Santana. Dat-

sun changed its name to Datsun-Nissan and then Nissan in the

early 1980s, but the success rate of the Japanese cars in motor

sport remained unchanged. Van der Linde enjoyed a remark-

able string of saloon car championship successes in the 1980s,

winning the title in 1984, 1985 and 1986 in Nissan Skylines.

Under the leadership of current motor sport manager Glyn

Hall, Nissan Sentra touring car drivers like Grobler, Nic de

Waal, Duncan Vos and Giniel de Villiers helped develop the

basis for the Nissan Primera that won four successive touring

car championships from 1997 to 2000 with De Villiers at the

wheel. With the demise of the formula at the end of 2000, Hall

and his team quickly transferred their skills and enthusiasm to

the national off-road racing championship. Nissan Motorsport

won the production vehicle championship at its first attempt

in 2001 in stiff competition with Toyota, Ford and Mitsubishi

and has gone on to remain unbeaten for nine consecutive years,

first with the Hardbody and then the Navara. Nissan’s success

in the domestic off-road championship with the Hardbody de-

veloped by Glyn Hall and his team saw them being commis-

sioned to build two pickups for French Nissan dealer team

Dessoude to enter in the 2002 Dakar Rally. Five stage wins un-

derlined the competitiveness of the South-African built Hard-

body and resulted in Nissan Japan entering the 2003 event with

three pickups for former Dakar winners, Kenjiro Shinozuka of

Japan and Finland’s Ari Vatanen, plus De Villiers.The Proudly

South African Hardbody pickups proved their mettle with De

Villiers finishing fifth and Vatanen seventh. Hall and his team

were then entrusted with the development of an evolution truck

for the 2004 Dakar. Four were built in Midrand and lined up

at the start in the hands of Vatanen, De Villiers, Frenchman

Yves Loubet and Colin McRae of Scotland.It was a much

tougher Dakar than 2003. Loubet and Vatanen retired, McRae

finished 20th and De Villiers was again the top Nissan finisher

in seventh place.

Nissan enjoyed its greatest Dakar success as a factory team in

2005, when De ViIliers finished fourth in the Proudly South

African Hardbody. There was no works involvement in 2006

or 2007 and the event was cancelled in 2008 because of security

concerns in some African countries. In 2009 the Dakar moved

to South America and four privately entered South African-built

Nissan Navaras took part. Norwegian Ivar Tollefsen and Briton

Quin Evans performed a memorable giant-killing act of finish-

ing a remarkable fourth overall, one place ahead of Pole

Krzysztof Holowczyc and Belgian Jean-Marc Fortin.

Nissan Motorsport returned to circuit racing in 2005 with a

Nissan 350Z. Leeroy Poulter won the championship in 2006,

finished third in 2007 and was a close runner-up in 2008 in

what was to be Nissan’s last year in circuit racing.

Sparepro is better known as Tonii, a broad range

of aftermarket automotive parts which has carved

for itself an impressive position in the market-

place thanks to a combination of price and quality

which the end user is equating with solid value.

Not only are they growing their market share but

in February the company hit a record turnover and seems to

be bucking the general economic downturn. Not only is

turnover growing nicely, cash flow is positive (debtors and stock

being well managed) while net profit is strong thanks to careful

cost control. The end result is that the shareholders are getting

an impressive return on their investment.

The man behind Sparepro (and behind the Tonii name, but

more of that later) is Price Govender, who in the mid-1990s

spotted an opportunity to import car parts from the Far East.

He travelled widely and found that the doors were starting to

open: there were many manufacturers willing and able to work

with foreigners. A number of relationships were formed –

often with tiny entities – but since then these associations have

flourished and the businesses in question have grown together.

Price’s understanding of the needs of local spares retailers and

the ability for his suppliers to react quickly gave him an edge

in the marketplace and soon Sparepro was distributing parts

nationwide.

Giving birth to ToniiIt is eight o’clock on a Friday morning and the Sparepro staff members are standing in a circle in the warehouse,

holding hands, and praying. They’re praying for the ongoing health of the company, their families, their fellow

workers, and also for mentally-handicapped children at Little Eden in Edenvale, to which they made a financial

donation recently. This is not a one-off event, and every Friday morning is marked by prayer. The practise of

assistance to the needy (handicapped children, underprivileged women and destitute elderly people) by staff

members and the company; is ongoing, as is moral, emotional and financial support of employees who find

themselves struggling to cope.

Management team (left toright): Price Govender,

Ahmed Kolabhai, Vani Chetty and

Patrick Latouche are the quartet which have steered Sparepro into a

powerful position in the carparts market

page 36

While his wife Vani handled the marketing aspects and a third

partner Ahmed managed the financial/general management

side of the business, Price handled all interaction with suppliers

and also vetted the quality and suitability of a growing list of

components. As the business grew, the management team

realised the need for a more professional footing to secure its

position in a highly-competitive market by adding solid back-

end functionality to the ability to continue to put sound

products into the marketplace at highly-competitive prices.

Part of that process was the introduction of the Tonii brand

name. The brand name comes from the name “Tony” which

was given to Price Govender by his suppliers in order to avoid

the element of confusion between his

first name and the word ‘price’ which is

invariably an important part of any pricing negotiation

anyway! The name “Tony” evolved to “Tonii”, a new brand

name was born... and the rest is history!

Today, virtually everything in the Sparepro arsenal is branded

Tonii, and the company sells about 6 000 fast moving different

products in nine broad categories. The name Tonii first

appeared on parts boxes in 2005, following a spectacular

launch of the brand and since then it has become a household

name. That looks set to continue but by the end of 2009 the

plan is for the branding to evolve somewhat to reflect different

coloured packaging dependent on what sort of product is

actually in the box.

The other significant development was the appointment of

Patrick Latouche as CEO in March 2008. This livewire

Mauritian with a project management/processes background

did not have motoring or spares industry experience, but he

knew how to extract value from a company, and how to fine-

tune systems (human and otherwise) for high efficiency.

“When I joined the company there were over 100 employees

but they needed direction and a clearer sense of purpose,” says

Latouche. “I set about creating mechanisms to measure and

assess performance so that targets could be set and incentives

put in place for achieving those targets.”

Doing this rapidly helped to improve internal efficiency and

reduce shrinkage – almost inevitable with this kind of opera-

tion. Relationships with the customers have been improved

and the sales team has been revitalised, each salesperson being

given a clearer idea of who he or she is looking after.

Latouche is a great believer in employees being part of the

organisation and he believes in a simple principal: people must

do the work, not the hours.

“People are a major part of the puzzle and about 70% of the

workforce is in the warehouse and they move thousands of in-

dividual items each day,” he says. “We conducted time and

motion studies when I started and the result is a more

efficient way of doing things.”

One of the other issues surrounding aftermarket parts remains

the Q-word: Quality.

“I think it is fair to say that quality is no longer an issue with

imported parts,” says Latouche. Ten years ago it probably was

but much has changed in the last decade and especially in the

last five years. We warranty most of our parts for between one

month and 3 years from the time of sale to the end user.

Through our returns policy we can see very quickly whether

there is a real issue.

Warehouse managers: Dean Gounden (left) and Charles Simmadari keep things running smoothly in the warehouse, which after all, is the heart of the operation

Low overheads and careful control of stock levels has contributed to Sparepro’s strong profitability recently. 40 percent of the products

account for 80% of sales

page 37

Sparepro sells about 6 000 different parts, most of which are

sourced from China. “Quality is no longer an issue,”

says CEO Patrick Latouche

“Our total claims ratio is less than 0,1% of parts sold –

and only a portion of those can be traced to genuine product

failure anyway,” says Latouche.

“It has become a key part of the operation to control the

warranty and return policy efficiently and it isn’t unheard of

to get parts ‘returned’ which aren’t even ours. So we need to

be very alert but when there is a valid claim we investigate

thoroughly to ensure that it is sorted out promptly.”

This is backed up by a technical department which is con-

stantly analysing what is going on in the marketplace. Feed-

back from a sales department of 14 individuals who regularly

interact with their clients, helps to provide market intelligence

– both in terms of products which are popular/unpopular and

also in terms of any reliability problems – and keeps a finger

firmly on the pulse.

It’s all about popular cars and popular parts, and Tonii is in

the agreeable position where approximately 40% of products

represent 80% of sales. But the plan is to improve on those

ratios still further, so fewer rather than more product lines will

pave the road ahead. Sparepro is very clearly in the volume

market and dead wood is ruthlessly trimmed out of the inven-

tory. Currently, the only area where the company is not

represented is in body parts.

Market analysis and the age and type of the vehicle population

is also clearly critical: for example, as soon as a vehicle

nameplate reaches the end of its normal warranty period,

Sparepro will be ready to offer the aftermarket alternatives.

And today it can take as little as six months from Sparepro

identifying a need to a supplier meeting it: that includes

sourcing a product, to actually getting it into a Tonii box and

onto the shelf of the customers.

Latouche believes they have reached an ideal quality/value

ratio but concedes that the exchange rate has been kind to

them in recent months. Nevertheless, he is fanatical about

containing costs. Sparepro distributes to the whole of South

Africa as well as to Botswana, Swaziland, Namibia and

Lesotho, and to a smaller extent, to Zambia, Malawi, Mozam-

bique and Zimbabwe where the mix of price and performance

is raising eyebrows. An alliance with a dynamic, up-and-

coming logistics service provider (Brago Logistics) is saving

the best part of R200 000 per month. Brago deliver both in

Gauteng and the Greater Durban area and, for example,

if a retailer places an order by 3.30 in the afternoon, they’ll

have the parts some time the following day in normal business

conditions.

All in all, the future looks pretty bright for Sparepro, driven

in part by the current economic climate where there’s a

growing need to keep cars alive for longer, though, as Latouche

is quick to point out, they didn’t wait for a recession to hand

them a business opportunity. And he adds that there is no

reason why they should not look at introducing new products

in the near future, which are unrelated to the automotive

industry. Through the network of contacts which has been

established, they could source virtually anything provided it

makes business sense. At the end of the day, as Latouche

concludes, “It is a combination of focused energy, serving the

customer as a business philosophy and making the Sparepro

culture become more than just business. Success has to be

measured through results and so far, we are on the right track.”

page 38

page 39

Today, AutoZone is the automotive parts business

that distributes a wide range of automotive parts

throughout South Africa and even across our

borders into Namibia, Botswana and Swaziland.

AutoZone has grown over the years, and now

consists of over 160 stores, of which over 70 are member

(voluntary trading) stores, and AutoZone is still growing. In

2005, a new and improved store concept was introduced in

order to make the customer’s shopping experience more

personal. The new shopping environment included a Front of

Store section which allows customers better access to the

merchandise. Customers can now see, touch and feel the

products they are buying. Products stocked by AutoZone are

broken into two sections. These are the "Front of Store" section

and the "Back of Store" section. The "Front of Store" section

where customers can select the items themselves includes many

ranges such as additives, adhesives, batteries, car care accessories,

custom items, garage equipment, oils and chemicals, wiper

blades and much more.

Product categories that fall into the "Back of Store" section are

usually products that require more technical knowledge and ad-

vice, and include brake pads, engine parts, spark plugs, filters

and hard parts. The AutoZone experience is continuously im-

proving in order to further enhance our world-class shopping

environment. Customers are always guaranteed great service and

the best value. AutoZone has also continued to expand its foot-

print across southern Africa with the introduction of the Auto-

Zone Hyper formats. These stores are designed to offer the best

wholesale and retail experience available, while still catering to

your every need. AutoZone as a brand offers so much more than

just the run-of-the-mill automotive parts. We also feature a

24 hour call centre, a Technical Team, specialist categories, a

VIP Cash Card, fantastic house brands and much more.

The newly launched 24 hour call centre ensures that your

queries are answered at any time of day or night by a team of

trained professionals. Closely linked to this is our Technical

Team, also known as the Pit Crew. This team of dedicated ex-

perts are available to you to answer any technical questions re-

lating to your vehicle. The best part is that they are available 7

days a week, from 7am to 7pm on 0800 200 993. The Pit Crew

even have their own series of DIY leaflets giving you Hints and

Tips for almost any routine vehicle work. This range of 22

leaflets will give you guidelines on how to do various auto-re-

lated tasks, ranging from changing a fan belt to replacing gas-

kets. Our specialist categories include the new Turbocharger

range. AutoZone is proud to announce that we now stock a

comprehensive range of Turbochargers. We are the preferred

stockist and distributor for the Garrett® and Holset brands. Au-

toZone also offers you amazing after-sales support and thus the

AutoZone Advantage means that you get:

• World Class Technical Expertise

• Pre- and Post Sales Support

• Failure Prevention Solutions

• Failure Analysis and Reporting

• Personalised Consulting

• A 12 Month Hassle Free Warranty

AutoZone believes in looking after all of their customers, not

only the trade or account customers. To cater to the cash cus-

tomers in the market, AutoZone offers even more value for

money! If you are a cash customer at any AutoZone store, then

you are eligible for the AutoZone VIP Card. This card gives cash

customers the ability to earn points and redeem them for excit-

ing products. The best part is that this card is absolutely free of

charge!

Despite the fact that AutoZone has over 100 000 product lines

available, we still strive to ensure that you get the part you are

looking for. To guarantee this, we have carefully developed a

range of house brands. These brands enhance the AutoZone of-

fering by giving you access to a wide range of top-quality prod-

ucts, at an affordable price. These brands are constantly being

widened, and are fully supported by the AutoZone Technical

Team. The five AutoZone Exclusive Brands are:

Creating SynergyAutoZone is a well known market leader in the automotive aftermarket parts industry which grew from the syn-ergy of many. When Super Group purchased the Elpar, Femo, Spares Link and AutoZone brands, they decidedthat one united brand would work better than many smaller brands. Thus, in 1996, AutoZone was born.

page 40

AmPro tools are a comprehensive

range of top quality tools, designed

to last a lifetime. In fact, we have so

much faith in AmPro Tools, that we

back them with a Lifetime Warranty! This incredible range of

tools is individually selected to ensure that AutoZone has every

tool required for both the professional and the D.I.Y handy-

man. The core categories for this range of tools includes socket

sets and accessories, wrenches, screwdrivers, electric screw-

drivers, pliers, specialty tools, and tool chests. Why don’t you

visit your AutoZone store today and stock up on this top class

range of tools?

The Ecotech range from AutoZone

covers all automotive electrical

products, and caters for all types of

vehicles from passenger vehicles to light and heavy duty com-

mercial vehicles. This range of exclusive products is the largest

and fastest growing range of top quality electrical products

available. The Ecotech range includes products such as starters,

alternators with their respective components, trailer plugs and

sockets, electrical terminals, and on/off road lighting.

AutoZone ensures that all Ecotech products are quality tested

and vetted, ensuring that you get the most up to date technol-

ogy, without paying inflated prices. AutoZone backs this

up with their 12 month “hassle-free” warranty, offering you

peace of mind.

AutoZone has developed an exclusive

range of accessories, all under the

AutoKraft range. These range from

core categories such as camping and

outdoor equipment, to workshop equipment. This world-class

range even includes custom car accessories such as car seat

covers and wheel covers, all backed by our Hassle-Free returns

policy.

Femo is a top quality range of inter-

nal and external engine components,

designed for a wide range of vehicle

makes and models. This broad range

includes piston rings, valves, bearings, sleeves, water pumps,

fuel pumps and much more. The entire Femo range is also

covered by AutoZone’s 12 month No-Hassle Returns Policy.

Spirex is AutoZone’s range of top

quality automotive hard parts and

chemicals. This range of reliable, top

quality products is affordable, and

includes a wide range of products from brake pads, brake

drums, pistons, batteries, C.V. Joints, to oils and other

chemical additives.

Looking towards the future, AutoZone is committed to growing

our footprint across Southern Africa. This will be done through

a dedicated strategy of opening stores in every urban centre in

South Africa, as well as through a forward-thinking buying strat-

egy aimed at expanding our product range to ensure that when

you visit an AutoZone store, you are guaranteed to find the part

you are looking for. AutoZone is also focusing on improving its

offering to their customers, both trade and cash customers. The

first step in achieving this goal was to implement the 24 Hour

Call Centre, which is now up and running. We will also be fo-

cussing on improving general customer service to ensure that

you feel like part of the AutoZone Family each time you shop

at an AutoZone Store. We will continue to strive to deliver “The

Right Part, at the Right Price, Everytime!”

For queries or comments, please feel welcome to contactus on 0860 11 22 111, or go to www.autozone.co.za.

page 41

50 Years of changeBARLOWORLD AUTOMOTIVE

Within a company that has been a Caterpillar dealer for 80 years and gone on to become aleader in the field of earthmoving equipment, is a leading automotive company that has a50 year association with the South African motor industry.

Founded in 1902, and with operations in 42 coun-

tries around the world, Barloworld is a distributor

of leading international brands providing rental,

fleet management, product support and logistics so-

lutions. The core divisions of the group comprise

Equipment (earthmoving and power systems), Automotive (car

rental, fleet services and motor retailing), Handling (materials

handling and agriculture), and Logistics (logistics management

and supply chain optimisation). The history of Barloworld’s as-

sociation with motor vehicles starts with a Natal agency for

Cleveland and Chandler in 1907 and the establishment of the

Barlow Motor Company in 1919 with agencies for Thornycroft

trucks, Humber cars, TJ tractors and Pratt & Whitney engines.

In 1936 these were sold off so that the company could concen-

trate on the Caterpillar franchise.

Motor Retail

In 1959 Barlows acquired Nagington Motors, Ford dealers on

the East Rand. These were the company’s first motor vehicle

dealerships. Thus began an acquisition trail over several decades

that included well known businesses such as Armstrong Motors,

Auto Atlantic, Barons, Club Motors, Currie Motors, Eriksen

Ford Group, Garden City Motors, John Williams Motors, Natal

Motor Industries (NMI), Roderick Nissan, Stuart Bromfield

BMW, Supra Toyota and several others. In addition to the above

retail investments Barloworld invested in the Subaru distribu-

torship and still holds a 50% interest, after selling shares to Toy-

ota Tsusho Corporation in 2008.

A significant and ground breaking transaction took place in

2003 with the Akoob family and their Durban South Motors

Mercedes-Benz dealership. Following the decision by Daimler-

Benz to change their dealer distribution model, Barloworld

merged their Daimler businesses in KwaZulu-Natal with the

Akoob family business. Today, the business encompasses a net-

work of dealerships in Durban, Pinetown and Pietermaritzburg,

with a flagship dealership at the Gateway development in Umh-

langa Rocks.

International Growth

In 1997 Barloworld acquired an Australian paint company with

Mercedes-Benz and Mitsubishi dealerships. It was decided to

expand the automotive business. Two Holden dealerships were

added, followed by two Volkswagen dealerships in Sydney and

another in Melbourne. The Australian business has grown into

a successful operation, with eight dealerships in Sydney and Mel-

bourne representing Mercedes-Benz, Holden, Volkswagen and

Suzuki.

page 42

Avis joinsthe group

Avis in South Africa

started out as Zeda Car

Rental and Tours,

founded in 1967 by

Noel de Villiers and

Glen van Heerden of

Lambons Ford in Bloem-

fontein. Starting with

two Anglias and a Prefect, the company soon expanded to Jo-

hannesburg. “We were just two young guys at Lambons Ford,”

recalls Glen van Heerden. “We were always lending cars to Ford

customers from around the country when they visited Bloem-

fontein. We realised there was a market for car rental and so

Zeda was born. Soon we expanded to Johannesburg and then,

in 1969, Avis Inc of America approached us and, together with

our shareholders at the time, Federale Volksbeleggings, we en-

tered into a 50/50 joint venture and changed the name of the

company to Avis. At the time we had about 50 cars in Bloem-

fontein and Johannesburg.”

The company, with a strong focus on customers, quickly grew

operations to cover Cape Town and Durban to meet the growing

demand for rental vehicles. This strong customer focus required

innovation. In the interest of safety, Avis was the first car rental

company to have wing mirrors fitted to all its cars, introduce ra-

dial ply tyres and seatbelts as standard on the fleet, and offer cus-

tomers automatic transmission and air conditioning. All of this

was done in the interests of the customers who included both

domestic and international inbound travellers. Later on, loca-

tions at airports were added to meet travellers’ on-airport needs;

this too represented a first for the company. The success of short-

term rentals led to the establishment of the first full maintenance

leasing business in the country. Avis Fleet Services, established

in the late seventies met the growing demand for longer term

rentals.

A focus on the quality and training of its people has been inte-

gral to the success of Avis in southern Africa, and today it is the

leader in its field. Avis has won the Sunday Times Top Brands

Survey in the business to business car rental category for the past

six years. The business continues to live by its famous brand

promise, “We try harder”.

Barloworld Automotive

Recognising that the future of traditional motor retailing would

change, Barloworld took an initial stake in Avis Southern Africa

in 2000, and acquired the remaining shares in March 2004. In

addition to this, a conscious decision was taken to realign the

dealership network focusing on “Fewer, Bigger, Better” dealer-

ships, representing the top automotive brands in major metro-

politan areas.

The group’s focus changed to providing customers with a range

of integrated motor vehicle usage solutions to fulfil their specific

requirements. This has been achieved through a well balanced

portfolio of complementary businesses that cater for customers’

varying needs. These solutions include the products and services

of the individual business units, namely car rental, fleet services

and motor retail as well as the unique combination of these

products and services for customers for who require aspects from

the various business units, in a seamless combination, effectively

and efficiently provided by a single supplier.

page 43

“When we began making tyres in Port Elizabeth during Sep-

tember 1936, the country was in the throes of a major depres-

sion, the economy was in a poor condition and future prospects

looked very bleak,” wrote then executive vice-chairman and

managing director of Firestone SA (Pty) Limited, Peter

Morum, in a 50th anniversary commemorative booklet entitled

“The Firestone Story 1936-1986”.

“In retrospect, the courage of the management of the Firestone

Tire and Rubber Company in America and their confidence

in the future has been more than justified,” he continued.

“Today, Firestone in South Africa is synonymous with quality,

the product has excellent acceptance and the company has be-

come a household name.”

Twenty three years on, Firestone South Africa has become

Bridgestone South Africa and the company’s growth has re-

flected the growth of the country. “Our continued success has

been made possible by the wholehearted support of dedicated

employees and a countrywide dealer network committed to

total customer service and satisfaction,” said Chairman and

CEO, Yujiro Kanahara.

“It is our aim to continue to grow andimprove the quality of our productsand our service to our customers.”

Bridgestone South Africa is a subsidiary of Bridgestone Cor-

poration, headquartered in Tokyo and the world’s largest man-

ufacturer of tyres and other rubber products. Tyres account

for 80% of Bridgestone Group sales worldwide. The company

also manufactures industrial rubber and chemical products,

sporting goods and other diversified products. It sells its tyres

in more than 150 nations. The history of Firestone and Bridge-

stone in South Africa is marked with many notable milestones,

from the day in 1935 when Harvey Firestone Jnr purchased

the first 7,06 morgen site on the corner of Kempston and Har-

rower Roads on the outskirts of Port Elizabeth in 1935 (for

£750!). The original production capacity in 1936 was 350

tyres a day with 150 people involved in production.

Today, Bridgestone South Africa’s PE plant has a total of

43 000 square metres of factory space and a capacity of more

than 5 500 tyres per day. The company employs over 800 peo-

ple and produces tyres from the small steel belted passenger ve-

hicle range, weighing 6.8 kg, up to the small earthmover range

weighing over 490 kg. To date the PE plant has produced over

42 million tyres for the domestic and international markets.

In 1971 the first tyre was produced at the Firestone Brits plant.

It was a tyre made by South Africans, using local materials and

the most modern equipment available at the time. Thirteen

years later, in 1984, with Firestone’s total commitment to

South Africa, vast extensions were completed at a cost of

R37,5 million, making it the most modern tyre manufacturing

plant in the southern hemisphere.

Nearly 75 years of service in the tyre industry On September 14, 1936 the first Firestone tyre to be built in South Africa rolled off the assembly line in the

company’s new factory in Port Elizabeth in the Eastern Cape. Today, 73 years after Harvey Firestone Jnr, together

with first managing director John Cohill, officially opened the PE factory, the company has grown into a major

supplier of passenger and commercial vehicle tyres to the South African motor, mining and agricultural industries

with factories in PE in the Eastern Cape and Brits in North West Province.

BRIDGESTONE SOUTH AFRICA

Lifelong friends Henry Ford, Thomas Edison and Harvey S Firestone.

Harvey S Firestone Jr – chairman of the Firestone Tire and Rubber Company.

John W Thomas joined Firestone in 1908 as the company’s first research chemist. Here he

watches a synthetic rubber experiment.

page 44

This was a massive investment in the future of

steel passenger and truck tyres in this country.

Today, the Brits plant is producing steel belt ra-

dials that meet the quality, design and perform-

ance standards equal to those achieved anywhere

else in the world. It is one of only a few Bridge-

stone plants outside of Japan with the state of the

art technology gearing to manufacture Bridge-

stone RFT (Run Flat Tyre), a technology that

Bridgestone Corporation pioneered. Since the

first tyre left its mould, the Brits plant has pro-

duced some 29 million tyres. In today’s highly

competitive market, Firestone and Bridgestone

steel belt passenger and steel cord truck tyres have

proved their efficiency and productivity over and

over again with their outstanding performance,

fuel economy, durability and reliability. At both

the PE and Brits plants constant testing and research is con-

ducted to ensure the quality of the tyres produced. Each plant

has its own fleet of test vehicles to evaluate the tyres produced,

as well as tyre uniformity grading machines (TUG) and tyre

test rooms with machines capable of testing tyres in excess of

280 km/h under controlled conditions. Bridgestone Corpora-

tion of Japan took over control of Firestone South Africa in

1997 in the biggest investment by a Japanese company in

South Africa and the company’s name changed to Bridgestone

Firestone South Africa. In August 2004 a R700 million invest-

ment was announced in the upgrading and expanding of the

Brits plant and building the state of the art RFT production

line, bringing the total investment by Bridgestone Japan in

South Africa to R1.5 billion. The name of the company be-

came Bridgestone South Africa. Bridgestone and Firestone are

names indelibly etched in the history of motor sport around

the world. In August 2009 Bridgestone, the sole tyre supplier

to the Formula One World Drivers Championship, celebrated

150 grand prix wins on Bridgestone tyres when Brazilian

Ruben’s Barrichello won the European Grand

Prix in Valencia, Spain, the venue last year of

Bridgestone’s 200th Formula One Grand Prix.

In South Africa, Firestone and Bridgestone’s in-

volvement and support dates back many years

and has contributed significantly to the growth

of the sport. Bridgestone supports karting, the

nursery of motor sport, and the development of

young drivers and is also the sponsor of the

Bridgestone Production Car Championship.

Bridgestone South Africa is a company with a

strong sense of corporate social responsibility

and subscribes to best employment practice.

“Through the involvement and generosity of

our employees, we are engaged in a wide variety

of community initiatives designed to raise living

and health standards in our communities,” says

Romano Daniels, general manager of Group Marketing and

Communications. “An example is the vegetable-growing hy-

droponics project in the disadvantaged PE community of Bloe-

mendal, which falls under the banner of the global One Team,

One Plant programme.” The company is fully committed to

other global Bridgestone Corporation initiatives like the road

safety-based Think Before You Drive and the Make Cars Green

programmes.

“We pride ourselves in our commitment to raising safety stan-

dards in both the production of tyres and on South Africa’s

roads, with such campaigns as our national initiative to encour-

age motorists to regularly check the condition and pressure of

their tyres. We are also the sponsors of the Guild of Motoring

Journalists’ road safety initiative, the Committee for Active

Road Safety (CARS).”

Bridgestone South Africa is a member of the South African

Tyre Manufacturers Conference and the South African Tyre

Recycling Process Company.

The Japanese traditional Kagami Wari ceremony,performed as a celebration – this time on the oc-casion of the launch of Bridgestone’s Run FlatTyre in 2008. On the extreme right is Bridge-stone South Africa’s current chairman and CEO,Yujiro Kanahara.

Early Firestone advertise-ment – dating back to 1919– realised the vast possibili-ties of truck transport im-

mediately post WWI

page 45

Founded in 1948, Control Instruments Automotive, a

subsidiary of Control Instruments Group Limited,

manufactures and distributes an extensive range of

quality, branded automotive components, including

instrumentation and off-road products to OEMs and

the automotive aftermarket throughout sub-Saharan Africa. The

company owns a number of brands, each of which holds a unique

position in the aftermarket. Well-known manufactured brands in-

clude Gabriel, Echlin, AutoExcel, MAG-Brakes, Autosave and Au-

tocom. The company is also the exclusive African distributor of a

number of internationally distinguished brands, including Warn,

VDO, Britax, GE, Shurlock, Ring, Eurocable and Unipoint.

Based in City Deep in Johannesburg, the company employs over

200 people who are dedicated to its marketing, warehousing and

distribution operations, as well as a further 250 people at the com-

pany’s manufacturing facilities in Johannesburg and Cape Town.

CI Auto constantly invests in its employees. According to Grant

Fraser, Director Market & Product Development, “Training is cer-

tainly a priority in our business. The company runs a number of

internal training programmes to benefit its employees”. To meet

the demands of the growing export market serviced from South

Africa, CI Auto recently set up an export division for the African

market. “In the last decade or so, exports and automotive products

Supplying and Nurturing the SouthAfrican Automotive AftermarketA supplier to the South African automotive aftermarket, Control Instruments Automotive (CI Auto) is

buoyant about the market’s potential, and is looking forward to playing an increasingly important role

in keeping the South African motorist in control and on the road. After a period of intense and frenetic

acquisition, followed by a well considered and controlled restructuring and consolidation, CI Auto is on

a mission, both simple and complex. The simplicity is in the goals, the complexity in the execution.

The fulcrum for all these activities resides at the marketing and sales levels.

Grant Fraser, Director Market & Product Development.

page 46

in South Africa showed strong growth, so it is important that

we provide the right portfolio of products,” says Fraser. The

company also has a team of product managers based in Johan-

nesburg who work directly under the marketing team, whose

responsibility it is to source new products for the emerging mar-

kets and to release these products into the new channel. “With

changing demands in the market, it is imperative that we are

able to meet the demands of our customers. We have to be able

to deliver a quality product, particularly in the aftermarket,

which also meets global emission standards,” says Fraser.

Customer relationships are one of the keys to CI Auto’s

success. “The relationships we have with our customers are

vital,” explains Fraser. “Wherever possible, we pass on any

benefits from our manufacturing processes to our major dis-

tributors, and we are working hard to supply the network.”

Adaptability is not the only thing that has made CI Auto a

leading player in the sub-Saharan automotive aftermarket.

Fraser elucidates, “There are a number of things that create

success. First of all, our people; we have our own IP (Intellectual

Property) and a lot of the technology that we have is continually

being developed by our own team. Secondly, from a distribu-

tion point of view, we carry premium brands which ensure qual-

ity and availability of product. Most importantly, we offer

customer-focused service. We work closely with our clients to

make sure we know what their goals are, where they are finan-

cially and where they want to be in the future. The service we

provide is personal, tailored to fit each customer. Our marketing

initiatives are based on the requirements of our customers, and

we drive various national campaigns to support the growth in

sales.” Despite the recent economic downturn, Fraser is positive

for the years ahead, “The local market shall continue to be

buoyant, due to a combination of larger and younger vehicle

populations. The aftermarket is worth about R3,6 billion an-

nually, based on the products that we supply. The primary con-

sideration is to access the impending market growth, ensuring

that the operation and brands are positioned to capitalise on

this. There is a lot of potential in this market.”

A stunning addition to the Gabriel Wings team

Photo on previous page: Three Pitts Specials, representing the Gabriel Wings Aerobatic Team, provide a great metaphor

for what CI Auto stands for. To attain the perfection of synchronised flight, and to perform daring aerobatic feats,

requires the right mix. Firstly, tried and tested aeroplanes; secondly, meticulous planning and preparation; thirdly a

talented team totally in sync with each other; and finally a support structure that inspires total confidence. It is a mar-

riage of skill, science and art, which is an alchemic blend of knowing what needs to be done, with a dash of gut feel

and flair, making it all very exciting. The end result is a choreographed masterpiece. Mimicking this set-up is CI Auto,

emulating the Gabriel Wings Aerobatic Team in a real life scenario which is firmly rooted to the ground in reality.

The consolidation of various manufacturing units, distribution hubs, administrative and technical offices, and various

other bits and pieces into one centralised location and one cohesive whole in City Deep, Johannesburg, has

similarly required meticulous planning and preparation, to establish a support structure that inspires confidence, and

to allow a talented team to feed off each other as they begin to push the limits.

page 47

From a modest beginning in rural Michigan as a mill

and engineers’ supply business (originally called the

Muzzy-Lyon Company after founders J Howard

Muzzy and Edward F Lyon) to the emerging North

American automotive industry in Detroit in 1899, Federal-

Mogul’s growth into a market leading supplier of quality prod-

ucts, trusted brands and creative solutions to the global

automotive industry has paralleled the rise of the importance

of the automobile in our society and has made, and continues

to make its own important contribution. The company’s lead-

ing technologies have helped to drive the development and

growth of the global automotive industry and it has diversified

and adapted to meet the challenges the industry has faced over

the last century and more.

The acquisition in recent years of the British T & N (Turner

& Newall) and American Cooper Industries companies con-

solidated a unique basket of premium branded products and

market-leading technologies and resulted in the creation of

Federal-Mogul Aftermarket Southern Africa in 1998.

The history of the Southern African company, headquartered

in Johannesburg, is interesting. It can trace its roots back to

the early 1950s and the founding of the Associated Engineer-

ing Company (Asseng), later to become AE, the amalgamation

of T & N and Ferodo in the early 1960s, of T & N and Asseng

in 1988 and of Trichamp (Trico and Champion) with Cooper

Industries to form Cooper Automotive.

As John Koen, the retired logistics director of Federal-Mogul

Aftermarket Southern Africa recalls, “The big challenge was

to harness the technologies and systems of leading brands AE

(engine parts), Champion (spark plugs and windscreen wipers)

Ferodo (brake pads) and Payen (gaskets) and meld them into

one effective aftermarket company. Frik Nel, managing

director of Cooper Automotive, was the first chief executive

of the new company and it is great credit to him that he and

the team he put together did such an effective job of utilising

the best of the four companies and creating a single cohesive

business.”

Nel moved to the United States in 2004, handing over to mar-

ket research expert Malcolm Perrie who had worked with AE

for many years as a marketing consultant though his company

The Marketing Shop.

Koen played no small part himself in the company’s success,

having started with Associated Engineering as an 18-year-old

in the 1960s and rising to CEO of AE engine parts at the time

of the Federal-Mogul takeover in 1998.

Federal-Mogul Aftermarket -Champions of the IndustryFederal-Mogul is an innovative and diversified $7 billion global supplier of quality products, trusted premium

brands and creative solutions to the world’s automotive industry. It employs some 40 000 people in 36 countries

and regions including southern Africa.

page 48

Federal-Mogul are manufacturers of AE, Nural, Glyco and

Goetze engine products (including pistons, liners, bearings,

valves, valve guides, valve inserts and ring sets), Ferodo disc

brake pads and linings, Champion spark plugs and ignition

leads, wiper blades and assemblies, National automotive lamps

and Wagner sealed beams, and Payen and Goetze automotive

gaskets and oil seals.

There are manufacturing plants in KwaZulu Natal (bearings

and valves in Pinetown; brake pads in Durban), in Gauteng

(spark plugs and windscreen wipers in Isando) and in the East-

ern Cape (gaskets in Port Elizabeth).

Today each brand has its own unique history and important

place in the southern African market. Ferodo was founded in

England in 1887 and led the development of friction materials

in their modern form. Today, Ferodo products are designed to

meet or exceed motor manufacturer original equipment spec-

ifications and provide creative automotive aftermarket solu-

tions. Ferodo is also a leader in providing superior brake

products to motor racing - in rallying, off-road racing and cir-

cuit racing.

Ferodo has been in the forefront of motor sport for more than

80 years. In 1998, Federal-Mogul established a special team

at the Federal-Mogul Friction facility in Mondovi, Italy, ded-

icated solely to the development, sales and marketing of new

racing and other high-performance car, kart and motorcycle

brake pads. Specialists in racing formulation, working in a

prototype plant, they develop new materials. Production takes

place within the plant in a specialised racing cell. All of this

allows Ferodo to remain at the forefront of innovation and ex-

pertise in motor racing.

Champion has been a world leader in the manufacture of

spark plugs for every kind of combustion engine and has a

motor racing heritage that spans most of its 100 years. It con-

tinues today with some of the most successful teams in North

America’s NASCAR and NHRA and in the Formula One

World Championship (an association that goes back to the

very early years of the F1 world championship in the 1950s),

as well as in national championships around the world.

Champion spark plugs have been used by four of the last five

NASCAR Cup champions, the last six NHRA Top Fuel cham-

pions and by cars that won nearly 400 F1 races – more than

all other spark plug manufacturers combined.

Champion, working with vehicle and system manufacturers,

produced a revolutionary micro-sized spark plug that is now

used by more than half of the F1 teams. Champion’s involve-

ment in F1 has always been, and continues to be, about pull-

through from track to road. The technology learnt in F1 and

other forms of racing finds its way into standard production

Champion spark plugs.

Champion and Ferodo involvement in South African motor

sport goes back many years and current involvement includes

sponsorship of the Champion Young Drivers programme, a

global initiative that helps up-and-coming youngsters to de-

velop in the sport. “This has been a very successful pro-

gramme,” says Ronnie Erasmus, motor sport manager of

Federal-Mogul Aftermarket Southern Africa.

“Both our current young drivers, who are still in their teens,

are past ‘rookie of the year’ winners in the one-make Volkswa-

gen Cup national championship and are both race winners

and contenders for this year’s title.”

Devin Robertson (17) and Gennaro Bonafede (18) are joint-

second on the points log with two rounds of the championship

remaining. They compete in identical Champion spark plugs-

sponsored VW Polos. The series is restricted to drivers below

the age of 28 and is an important stepping stone to the more

senior circuit racing categories.

Started in 1994 in Pretoria, Grandmark first began its path

to success with the wholesaling of automotive body parts

to the aftermarket industry. Since then, Grandmark has

slowly expanded its product offering in order to meet the mar-

ket needs for high quality/high value products. Grandmark

now boasts an extensive parts range that covers six major auto-

motive categories – automotive body, glass, cooling products,

steering and suspension parts, engine and mechanical parts, and

automotive lamps. Due to this success, they now stock over

20 000 different part items. While, in the beginning, Grand-

mark’s primary import focus was in Asia, they realised the need

to expand their geographic sourcing presence to ensure they

were getting the best products globally. Consequently, Grand-

mark now sources from Asia, America, Europe and South

America.

Furthermore, the company opened up international purchasing

offices to ensure close cooperation with these overseas manu-

facturers. From five continents and over a hundred suppliers,

Grandmark International brings the best the world has to offer.

The Grandmasters in Quality Auto-motive Parts SupplyIn a marketplace of more and more part brands, one thing will always remain constant in the mind of the consumer - quality automotive parts at the best possible value. This customer need is exactly what Grandmark Internationalfocused on 15 years ago when they opened their doors. And because of that focus on value for customers, Grandmark International is now one of the leading distributors of replacement automotive parts and glassproducts in southern Africa.

page 49

GRANDMARK INTERNATIONAL

Body Glass Steering & Engine Lamps Cooling Suspension & Mechanical

Bonnets Windscreens Control Arms Wheel Bearings Head Lamps Radiators

Bumpers Door Glass Ball Joints Gaskets Corner Lamps Condensors-(Aircon)

Cradles Vent Glass Tie Rod Ends CV Joints Fog Lamps Radiator Fans

Grills Rear Windscreens Rack Ends Tensioners Tail Lamps Water Pumps

Fenders Quarter Glass And more… And more… And more… And more…

Mirrors And more…

And more…

page 50

Branch Network Growth

With Grandmark’s early success, their branch network also

expanded. Early on, to move closer to the majority of their

customers, Grandmark moved its headquarters from Pretoria

to Johannesburg. Then, to properly service those early Preto-

ria customers, Grandmark expanded the wholesaling opera-

tion back to Pretoria and then a few years later they expanded

further to Cape Town. The reason? To provide customers

with better service and closer personal contact.

The Quality Choice

Early in its existence, Grandmark saw an opportunity in the

marketplace - many importers focused on generic parts at

the lowest cost possible. However, this often tainted the

replacement parts industry as having low quality standards.

Grandmark wanted to change this perception (hence the com-

pany name “Grand Mark”) by bringing in high quality prod-

ucts from the most advanced factories around the world –

many of which supply original equipment manufacturers

(OEMs) in their respective regions.

To ensure customer satisfaction with all Grandmark products,

all products come with a 12-month warranty against fault in

workmanship or defect in material. Furthermore, all of

Grandmark’s suppliers are not only visited by the Purchasing

Department but, personally by the Directors as well. Last,

Grandmark takes pride in offering products that have

obtained globally recognised certifications and qualifications.

Culture is the foundation

In a world where products, services and management tech-

niques can easily be copied, Grandmark’s advantage rests in

its unique company culture. It’s a culture that emphasises

teamwork over the individual, fun in the workplace, respect,

trustworthiness, motivation and innovation.

The culture stems from its early entrepreneurial days where

everyone pitched in, had fun and worked as a team – they had

to in order to survive. Since then, however, Grandmark has

not lost focus on the importance of that early culture but in-

stead has worked to magnify it. In everything they do, they

seek to always do more for its employees, its suppliers and its

customers. It’s what they call the “Grandmark Spirit”.

Grandmark’s formula for success?

Only and always quality. This ethic

cements the Grandmark value system

and applies to its products, services

and company ethos.

Many of Grandmark’s products and manufacturers have the above certifications/qualifications.

page 51

Launch Tech Co Ltd was founded in the same year

and has since grown into the leading Chinese

company in automotive diagnostics and a global

supplier to the automotive aftermarket, repre-

sented by 15 companies supporting more than

400 distributors in 60 countries. Launch also looked to the

future and foresaw the enormous potential of the Chinese au-

tomotive industry, and began its annual auto electronic and

diagnostic colloquium in Shenzhen, inviting the Chinese

OEM industry to discuss the future of engine management

systems and diagnostic support, and to look at ways of com-

bining talent and technology to develop improved systems.

This vision has paid off, with Launch now being the specified

diagnostic equipment for over 90% of Chinese OEMs.

Launch also began to look outside China in 1997, as it realised

that for it to be an international player it had to support all

the OEM brands in both China and overseas. Thus the Car-

link 5000 was introduced to the world in 1997, to be followed

by the ADC 2000 in 1999, which was both a code reader and

oscilloscope. With the strong international acceptance of both

the Carlink 5000 and the ADC 2000, it was realised that for

further growth the company would have to become a public

company, and so in 2002 Launch Tech Co Ltd was listed on

the Hong Kong Stock Exchange, and its future was secured,

and further development was accelerated by the establishment

of an industrial park in Shenzhen and an R&D facility in Bei-

jing, to concentrate on vehicle management systems.

Launch was also diversifying, and adding workshop equip-

ment and tools to its product portfolio, as it strove to become

a one stop shop for automotive workshops, offering a com-

prehensive range of quality aftermarket service equipment to

the automotive and allied industries. These products include

scan tools, Creaders, wheel balancers, lifts, engine analysers,

wheel aligners, tyre changers, injection cleaners, a/c service

stations, ATF chargers, test lines, inflators, sensor

simulators/testers, paint dryers, spray booths, collision repair

systems, hand tools, and more, the bulk of which are manu-

factured at a production facility in Shanghai.

Launch Tech Co LtdShenzhen in Guangdong Province, China, is the fastest growing city in the world, and it was here in 1987 thata small company named Launch began manufacturing personal computers, developing both the hardware andsoftware for these electronic devices, which in those days were still in its infancy, and thus Launch had to innovate and invent most of the applications. Five years later, in 1992, with the Chinese automotive industrystarting to stir, Launch relied on their pioneering skills and electronic innovation to become the first Chinesecompany to get involved in electronic engine management engineering and automotive diagnostics.

Launch Tech Co Ltd employs over 300 qualified research and development engineers at its Headquarters in Shenzhen, in an industrialpark consisting of seven identical nine floor buildings, with a total floor area of 189 000 m². Depicted here is one of these seven buildings.

page 52

Launch Technologies is committed to keeping its customers for life, and this philosophy

extends to offering trade-ins and upgrades at very good discounts, software upgrades,

and hands-on training that focuses on how to use the equipment. Launch also recog-

nises the need to take this training one step further, and one of the many projects it has in the pipeline is the establishment of fran-

chised quick repair shops, to facilitate further training on how to take diagnosis and trouble-shooting further, on actual repair

techniques. Launch is acutely aware of the need for workshops to have access to finance and credit for both capital requirements

and operational costs and working capital, so it is a preferred supplier to Capricorn Society Limited, a forward looking cooperative

that offers a range of innovative business assistance packages. Launch Technologies SA is also in the relatively unique position from

a global perspective in that Jackie Li, the CEO, has direct contact, and is in daily contact with Launch

Tech Co Ltd’s head office in Shenzhen. Jackie Li spends a lot of time at Launch’s head office,

and has his own office at headquarters, and his close relationship with the President allows

him to stay abreast of all the latest developments and projects, and gives him favoured

status as an international ambassador for Launch. In actual fact, he is merely a phone

call away from the President, and this special relationship translates into extra special

service for Launch’s South African customers. Therefore it is no wonder that of the

workshops in South Africa using Launch equipment, that 70% of their

requirements are met by Launch Technologies.

Launch Technologies SA (Pty) LtdLaunch Technologies SA (Pty) Ltd. was registered in South Africa in 2000. Launch’s

head office is in Jet Park, Johannesburg, Gauteng, and it has a branch in Durban,

KwaZulu Natal, and distributors in Cape Town, Western Cape, and Port Elizabeth,

Eastern Cape. These distributors, together with a network of sales agents throughout

South Africa, has allowed Launch to become a major supplier of automotive after-

market service equipment to the automotive and allied industries in southern Africa.

The quality range of Launch equipment and products are fully backed-up and serviced

by in-house after-sales service teams.

page 53

This philosophy has stood Colin Lazarus in good

stead in the 29 years since he took over his

father Gerry’s company, R Lazarus & Son in

1980. The principles on which he has built the

business started by his grandfather in 1957 has

seen the founder’s grandson emerge as one of South Africa’s

top private motor vehicle retailers. The Lazarus Motor Com-

pany’s imposing modern headquarters overlooks the N1 in

Centurion. It is a far cry from the original Lazarus dealership

in Bronkhorstspruit, where Colin was born and raised and

where you could buy a Mercedes-Benz or a DKW.

Today’s operation is one of the biggest privately owned

dealerships in the country and, at 30 000 sq m under a single

roof, it is one of the biggest in the world.

Country born and bred and educated at an Afrikaans school,

Lazarus is a no-nonsense kind of guy and is direct and some-

times uncomfortably honest. But above all he is a good ‘people

person’. “It’s not about me, though. Our success has been built

with our most important asset, the right people. I am fortu-

nate to have the ability to surround myself with good people.

Most of my 255 staff have been hand-picked by me, right

down to the drivers. They make me look good,” he asserts.

Before officially joining the business after completing his ed-

ucation, his father sent him to work at Ford Motor Company

in Port Elizabeth early in 1980, “to learn the business”. “This

was part of a two and a half-year plan to prepare myself for

joining the family business, but just as I was about to go to

the United States to work within the Ford dealer network

there, my father died suddenly and I had to return to

Bronkhorstspruit and take over the company. I was 22 years

old and found myself in the deep end.

“I learnt a lot in those early days. Every Wednesday I would

put on my overalls and spend a day in the workshop. We sold

mostly tractors in those days and also cars.”

Over the years Lazarus acquired a Ford dealership in Verwo-

erdburg (later to be renamed Centurion) in 1991 and then a

year later the company was awarded the Mazda franchise in

Centurion as a result of its good performance with Ford. By

1996 the company had built a fine reputation for customer

service with its Ford and Mazda owners and was awarded the

prestigious Jaguar franchise, opening in the Pretoria suburb of

Hatfield.

In 1999 Lazarus identified a piece of ground in Centurion

next to the N1 and gathered the entire multi-franchise oper-

ation under one roof. At the same time, he was astute enough

to realise that in order to succeed long term in the changing

socio-economic and political environment he needed a black

empowerment partner. He found just the man, successful

businessman Peter Malungani, and they have been partners

for the past 10 years. Malungani bought shares in the com-

pany, which was renamed Lazarus Motor Company. “We are

a great fit and I have learnt so much having a black partner,”

says Lazarus.

LAZARUS MOTOR COMPANY

The humble acorn grows into a mighty oak“True success isn’t measured in currency, but in the trust of families and customers. It’s built on a solid foun-

dation of ethical standards and an unwavering commitment to service. It’s being the best we can be. It’s keeping

our word so that people can trust what we say and have confidence in our honesty and integrity. It’s serving

our customers in the best way possible because we sincerely care about their safety and their complete satisfaction

with their Lazarus experience.” - Colin Lazarus, managing director, Lazarus Motor Company.

page 54

Today, Lazarus Motor Company represents six well-respected

international brands: Ford, Mazda, Jaguar, Land Rover, Volvo

and, the most recent, Kia. Success did not come overnight,

but the continued achievements are built on the principles

that have guided Lazarus throughout his career.

These achievements include being honoured as Centurion

Businessman of the Year in 2007, where he surprised the

audience with an acceptance speech in Afrikaans. He is

immensely proud of the fact that Lazarus Motor Company

has won the Ford and Mazda dealership of the year accolade

for the past five years (from 2004 to 2008).

“We were the first big volume dealer to achieve this distinc-

tion, which is the result of the sustained excellent perform-

ances of all of my key people and the staff who work with

them.”

Lazarus is a great believer in well conceived marketing and ad-

vertising promotions and enters into these with enthusiastic

involvement, from his office right through the organisation.

He has a successful association with circuit motor racing and

has been a long time supporter of the annual national Total

Economy Run, where, invariably, his is the biggest entry.

In 2009 he supplied almost half of the field of 28.

A long association and close friendship with multiple power-

boating and motor racing champion Peter Lindenberg has led

to a number of motor racing initiatives that have brought

success and valuable exposure for Lazarus Motor Company.

“We like to sponsor winners and Peter has won more than his

fair share of championships, in water skiing as well as power-

boating and motor racing. We also like to support the sporting

teams in our province and have a great relationship with the

Blue Bulls, the Titans and SuperSport United. All three are

champions. Our involvement with rugby, cricket and soccer

is also motivated by a desire to help with the development of

these sports. We provide motor cars which are used by the

teams’ talent scouts and trainers.”

No visit to the imposing Centurion headquarters of Lazarus

Motor Company is complete without seeing the company’s

own motor museum. It currently boasts among its exhibits the

only Ford GT in South Africa (one of only 2 000 built to mark

the company’s centenary), a pristine 1969 Ford Mustang and

the Formula Atlantic Chevron in which Ian Scheckter won

one of his six SA drivers’ championships in the 1970s.

“It’s all about promoting the brand and also our dealershipand we have had more than our share of success in this regard. We find that the fuel efficiency achievements of the cars we enter in the economy run are of interest to our customers and we advertise the results.”

page 55

That might be taking things to an unlikely

extreme but like it or not, most people protect

themselves against the risk of the un-

known...whether it be a fire, theft, a car accident

or the vagaries of nature. We also insure our

health: it’s called medical aid and who

can afford to be without it? Health-

care in the automotive industry is

important and – certainly in the

blue-collar area – there’s a fair

amount of danger present, so

you don’t want to leave yourself

exposed.

One of the big names in med-

ical cover is Moto Health Care, an

organisation which runs closed

schemes in the motor industry

and currently has in excess

of 43 000 princi-

pal members.

Restricted to the motor industry and born out of the conver-

gence of the Automed and Mimed schemes at the very

beginning of 2007, it can offer a compelling portfolio

of healthcare products to those working in all strata of the

industry – from manufacturing to retail.

At the helm of Moto Health Care since its inception is Fund

Manager Murida Khan, a savvy industry veteran who has

spent pretty much her entire working life in medical aids,

rising through the ranks after starting as a script assessor at

Affiliated Medical Aid in the early 1980s. It would be easy to

grow hardened to some of the pain and suffering that often

goes with this business but Murida seems to have tremendous

empathy for her members.

“Fully half of our membership comes from low income groups

– petrol pump attendants, cleaning staff at dealerships,

apprentice mechanics – and they rely on us to provide them

with healthcare which is both affordable and effective,”

explains Khan from her modest Randburg office. “Just because

they’re from the low income bracket doesn’t mean we should

underestimate their wants and needs...their money is precious

and they don’t want cheap!”

About a quarter of Moto Health Care’s members are on the

entry-level Essential package, with a total contribution of just

R185 per month. It is structured so that even individuals with

a low level of literacy are able to understand exactly what is

and isn’t covered. Another 25% of members use the

Custom scheme, which is a rung up the ladder. These packages

are exempt from providing the Prescribed Minimum Benefits

as laid out by the Medical Schemes Act.

The company has been able to put together these and other

high-value offering by using the membership’s collective

bargaining power, dealing directly rather than using brokers,

and also linking up with Carecross Health as a network

provider: they negotiate directly with doctors and other service

providers, thereby ensuring the best possible rates.

Taking Care of our ownIn the Goon Show, a radio comedy series aired in the United Kingdom in the 1950s andkey to the later fame of Spike Milligan and Peter Sellers, a pair of villains convinces theever-gullible Neddie Seagoon to insure the English Channel – against fire.

At the helm of Moto Health Care since its inception is Fund Manager Murida Khan

page 56

This approach has also helped to reduce wastage and dishon-

est practices and because of the tight controls that are in place,

there is nothing in the market which offers what Essential does

for such a modest sum, says Khan. Members are guaranteed

of continued healthcare cover unlike many members out there,

who by the middle of the year are no longer able to

access benefits.

At the other end of the spectrum is a product called

Optimum, which is able to offer real-world benefits that are

comparable with some of the more glamorous brand-name

medical aids. Because of its diverse packages Moto Health

Care works well across all levels of an organisation, and

dealerships within the big retail holdings such as McCarthy,

Imperial and Barloworld are customers. In the past, Moto

Health Care has steered clear of some of the popular “added-

value” benefits which have become popular over the years

(gym memberships, cinema discounts and the like) but from

this year has implemented an optional Multiple Lifestyle

Programme that offers a number of potential savings in these

areas.

But this is a traditional medical aid and remains focused on

providing real value and packages that are easy to understand:

there aren’t any thresholds or self-pay gaps – once the benefits

are exhausted, that’s it, and the member will know when the

funds are about to run out.

While Moto Health Care has seen its membership base

targeted by the large, unrestricted schemes (when the company

rose from Automed and Mimed nearly three years ago it had

56 000 members – though that number has also been eroded

somewhat by retrenchments) it believes it is able to offer the

industry a better deal on all levels. It also has tremendous

bargaining power and places those who work in the automo-

tive field first: Moto Health Care’s board of trustees includes

representatives from organisations such as the Retail Motor

Industry, Fuel Retailers Association and NUMSA – the

National Union of Metalworkers of South Africa.

The administrator of the medical aid is handled by Momentum

Medical Scheme Administrators and there are eight walk-in

centres around the country where members can seek assistance

and advice. In addition, Moto Health Care has 20 service

consultants out in the field on any given day, talking to people

in their own language at their place of work. One of their prime

objectives is to get young people to appreciate the community-

based aspect of healthcare and get them to understand that by

contributing now – even when they seem to be in perfectly

good health – their needs will be guaranteed later in life when

they do get sick.

“There is a great deal of empathy from the board and because

they’re close to our members they know what people are going

through in the current climate,” explains Khan. “The trustees

include employers and we look at individual cases on a regular

basis and in many instances provide care over and beyond

what we are obliged to give. It is one of our objectives to be

as humane as possible and dialogue with our members is an

essential part of achieving that.

“There is still scope within this industry for healthcare to be

made more cost-effective and one way of achieving this is

to maximise our collective strength. There are still many

motoring entities operating in isolation with their own

medical aids , but if we all operate under one umbrella it

increases the bargaining power, and will benefit all in the

motor industry,” says Khan.

The motto of Moto Health Care is ‘Taking

Care of Our Own’ and they look well-placed

to live up to that promise.

page 57

Today, with Gayle at the helm in the role of

managing director and Rick in charge of the

day-to-day smooth running of the business, as

operations director, this goal has been achieved

by this hard-working, ambitious, husband-and-

wife team. From humble beginnings – working out of a small

residential garage – the two-person business expanded to the

point where, 17 years later, it employs more than 120 highly

trained staff members. RDG’s linear growth is attributed to

the high levels of service it regularly provides its customers,

says Dennis McLachlan, responsible for ArvinMeritor and

RDG’s Consumer affairs.

“RDG employs skilled technicians and staff who are knowledgeable and experienced, with in-depth expertise that adds value to the organi-sation,” he says. “We pride ourselves on offeringservices performed by seasoned professionals andhighly trained technicians.

“Customer care is of utmost importance and RDG is fully

committed to the concept. It has been the platform from

which our success has been orchestrated.” The emphasis on

service is underlined by Gayle Rex. "We place our customers

on pedestals and strive for excellence in whatever we do",

she says.

Range of services

RDG offers a towing, a 24/7 emergency breakdown and other

services, as well as collections and deliveries anywhere in the

country. The company also guarantees all parts and workman-

ship and offers 30-day account facilities.

One of the secrets of the RDG service is a reduction in costs

to customers by having the ability to replace individual parts

instead of an entire gearbox or differential unit. If necessary,

some parts are imported to ensure the highest quality stan-

dards are maintained. RDG's workshop is equipped with latest

tools and machinery that boasts cutting-edge technology.

RDG recently built a state-of-the-art, controlled environment,

automatic transmission repair bay and purchased a new Sun

diagnostic scanner which is compatible with all vehicles on

the road – even those sourced from other countries.

The company also sets the standard for a working

environment that is beneficial to staff, customers,

vehicles and equipment.

Striving for ExcellenceWith a mission to set new standards for service and customer care, Rex Diff and Gearbox (RDG)

was established in 1992. It was the brainchild of Gayle and Rick Rex who had decided to pool their

technical and managerial skills and enter the unknown waters that represented the specialist gearbox

and differential repair segment of the auto industry.

REX DIFF AND GEARBOX

page 58

The emphasis is on cleanliness and order. RDG is an approved

service provider for a number of leading motor vehicle man-

ufacturers, including Isuzu, DAF, Hyundai and

Iveco Trucks. The company is also a member of the Retail

Motor Industry (RMI) Organisation and has been appointed

as an Approved Specialist Repairer by the Automobile Associ-

ation of South Africa. Being a member of the RMI ensures

that any work performed in the RDG workshop adheres to

the RMl's strict quality standards.

Quality not quantity

McLachlan says RDG's philosophy is based upon quality, not

quantity. “We strive to provide an excellent product, at the

same time maintaining a high standard of service and

customer care. We work together as a team of specialists and

experts, taking pride in our workmanship and working within

world class facilities.”RDG recently took occupation of a mod-

ern facility in Jet Park which houses its dedicated commercial

vehicle operation. This complements the long-standing Boks-

burg facility which has been given over in its entirety to the

passenger vehicle division. “We completely outgrew our Boks-

burg premises,” says McLachlan. “There simply wasn’t enough

space to service both passenger and commercial

vehicles, so we decided on the move which established yet

another milestone in the history of RDG.”

In 2007, RDG was appointed an authorised agent for Arvin-

Meritor Australia, one of the largest suppliers of automotive

parts in the world with 150 facilities in 27 countries. The part-

nership has resulted in RDG being able to offer a broad range

of integrated systems, modules and components for the light

vehicle, commercial truck and trailer and speciality OEMs and

related after markets. Other highlights in its history include

the opening of operations in Port Elizabeth and Durban in

2007. Looking to the future, McLachlan sees training as one

of the most important challenges facing the auto industry.

With this in mind, RDG has opened the doors to its new

training facility adjacent to its Jet Park Truck Division de-

signed to broaden the scope of the training it offers.

“While it is important to run an organised and well-equipped

workshop, a high-tech facility such as ours is useless unless it

is staffed with appropriately trained specialists.

Training is an important focus for RDG and as such we are

continuously up-skilling our workers to meet the requirements

of the new generation of vehicles on the roads,” he says.

“Modern vehicles - including commercial vehicles – are more

complex than their predecessors. The computer technology

incorporated in today’s vehicles means they are very different

from those that were in use 10 or 20 years ago.

“Of course these improvements can be seen from two perspec-

tives. Yes, they have resulted in more powerful and reliable

vehicles than those of previous generations, but their complex-

ity means they are significantly more difficult to repair should

problems arise. “For example, it is no longer possible for a

technician with basic skills to address most mechanical prob-

lems on a vehicle. The complexity of systems has forced them

to specialise in specific aspects of a vehicle's operation and un-

derstand the role of diagnostic equipment,” adds McLachlan.

“Gearboxes and differentials are no different to engines from

this standpoint. Their systems have become increasingly

intricate and can no longer be serviced or repaired with a few

basic tools and a rudimentary knowledge of their operation.”

Hand in hand with an increasing emphasis on modern

technology, RDG has not forgotten what has brought it

success in the first place.

“Keeping customers satisfied remains the company's chief

priority as we head towards our eighteenth anniversary,”

stresses Gayle Rex. "We continue to take pride in what we do

and will always go out of our way to satisfy our customers.”

Boksburg: 011 823 4393 • Durban: 031 569 6869

Port Elizabeth: 041 586 3613 • Jet Park: 011 826 2722

www.rdg.co.za

page 59

As a financial services provider, SA Warranties

conforms to the provisions of the Financial Ad-

visory and Intermediary Services Act of 2002.

All mechanical breakdown insurance warranties

comply with all statutory requirements in terms

of the appropriate legislation of the Republic of South Africa.

Although SA Warranties was founded only 7 years ago,

(in 2002) the roots of SA Warranties go back to 1978, when

Mechanical Breakdown Insurance (MBI) was founded. MBI

became the first South African company to offer an insurance-

based warranty, underwritten by SA Eagle. Today SA

Warranties is underwritten by Regent Insurance Company.

Prior to this all mechanical breakdown warranties were based

on STP, Molyslip and Wynn’s additives, which provided a

measure of mechanical protection.

After negotiations with the late Bill Lynch, past CEO of Im-

perial Holdings, SA Warranties commenced administration of

the Imperial Group’s used car warranty programme, including

various independent vehicle dealers across the country, many

of whom moved from MBI to the new company. SA War-

ranties’ client base and product offering was aggressively

expanded, and today has an impressive list of clients including

leading financial institutions, motor dealer groups and vehicle

manufacturers. Amongst SA Warranties client base are: Absa,

MFC, WesBank, IEMAS, Combined Motor Holdings, Super-

group, Imperial Holdings, Associated Motor Holdings, East-

vaal Motors, Nissan SA, Volkswagen SA, Kawasaki SA.

Whith demand for its services was increasing by leaps and

bounds, additional space was needed. In October 2005 SA

Warranties moved offices to its present location in Bruma,

Johannesburg. A state of the art call centre was also estab-

lished, with all calls handled by qualified technicians. Satellite

branches were established in Cape Town, Port Elizabeth, Dur-

ban and Bloemfontein, thus ensuring national representation.

The management team at SA Warranties realised at a very early

stage that a key ingredient in today’s service industry is the

ability to offer consistent and professional service to every

caller, from individual policy holders through to motor repair-

ing and selling dealers, as well as group enquiries. With a team

of highly motivated, well qualified and trained agents, SA

Warranties are able to offer world class service via its Call Cen-

tre (Call: 0860WARRANTY).

Besides consistently achieving its objective in terms of service

delivery, the company has an ongoing training and mentoring

programme across all its divisions.

Since entering the market with used vehicle warranty pro-

grammes, SA Warranties expanded its extensive product range

to include “customised” New and Used vehicle Warranties,

and Full Maintenance and Service plans (SA DrivePlan Main-

tenance Plan and SA DrivePlan Service Plan) for the industry

and private clients. Warranty cover is also available for the

leisure industry (quads, boats and caravans) and the commer-

cial vehicle industry (trucks and yellow goods).

Full maintenance and service plans are handled by SA Vehicle

Maintenance, a subsidiary of SA Warranties, specialising in

the development and administration of automotive service and

maintenance plans for vehicle manufacturers, financial insti-

tutions, insurance brokers, independent dealerships and large

‘We Do Things Differently’SA Warranties are specialists in the development and administration of MechanicalBreakdown Insurance and Service and Maintenance products for the South Africanmotor industry.

page 60

dealer groups. SA Vehicle Maintenance, covers a wide range

of vehicles and offers customised products to suit the needs of

the motorist. The company’s leading range of service and

maintenance products are designed to give the customer com-

plete peace of mind and the best protection available.

Another popular product is the SA Warranties Drive Care

Roadside Assistance membership plan, which ensures that

motorists are not stranded in the event of a breakdown or

accident. Members’ vehicles are towed to the closest repairing

dealer should the vehicle break down or if they are involved

in an accident. This programme offers many benefits

including, the supply of fuel if a member is left stranded.

The SA Warranties team has been responsible for an

impressive list of “firsts” in the warranty industry. These

include the first: -

• Insurance-based warranty in the country

• Warranty with parts and labour cover from day one

• Warranty to cover parts not running in oil, e.g. brakes and

electrical components

• Drive train warranty

SA Warranties also offer unlimited cover on new vehicles, an

“upgrade” option on a warranty, day-one cover, and a three-

year/100 000km warranty on pre-owned vehicles.

One of the most successful innovations was launched in

September 2006 when SA Warranties’ announced its “Bumper

to Bumper cover” warranty, which offers 100% cover on wear

and tear items. This innovation not only changed the face of

the warranty industry in South Africa, but has since become

the most popular and sought-after warranty in the country.

The founders of SA Warranties’ founders, Bender Davis and

Miron Milner, grew the company from as small base in 2002

to one of the leading suppliers of warranties in South Africa

today. John Tager, the new Managing Director took over this

proud heritage from the founding members early in 2009.

Andries Labuschagne, General Manager of Marketing and

Product Development at SA Warranties, says, “Our products

have been specially developed and offer our clients reliable

support and peace of mind. Our industry-leading experience,

solid track record, state-of-the-art systems and use of technol-

ogy, has allowed us to offer our clients the very best Mechan-

ical Breakdown Insurance, including Service and Maintenance

plans for their assets.”

page 61

There are three words that underline Toyota’s success

in South Africa for more than 40 years: quality,

durability and reliability. Maintaining leadership in

a market as volatile as that of selling motor vehicles

is a major challenge for any company as sales success tends to

be cyclical. It is therefore unusual for one company to maintain

a leadership position for a period as long as 29 years, which Toy-

ota South Africa has achieved to date. Japanese manufactured

automotive products were not always perceived as vehicles of

choice, but this gradually changed when the great post-war

Japanese turnaround started. In the late 1950s, Toyota began

adopting new sales methods. In the spirit of innovation, Japan's

Toyota Motor Sales Company began to emphasise "scientific

marketing" over older methods, and set up a research office in

1956, shifting focus to demand-forecasting techniques and

preparing marketing plans accordingly. In South Africa, tradi-

tional lines of supply were restricted in the 1950s and early

1960s as Europe and the US recovered from the devastation of

World War II. In 1960 Toyota Motor Corporation was still a

modest undertaking with a total production of 200 000 vehi-

cles; whilst General Motors was making 3.5-million units a year.

It was at this point that Dr Albert Wessels looked towards the

East as a possible source of more affordable vehicles for the local

market.

The attributes of quality, reliability and durability (QDR) were

mostly restricted to more luxurious and expensive cars and did

not apply to affordable marques. The slogan, ‘Everything Keeps

Going Right, Toyota’ which was introduced by Toyota South

Africa in 1973, together with its distinctive jingle became an

institution in South Africa. When people think of Toyota prod-

ucts, they usually think of a product that lasts forever. That is

exactly what Toyota set out to do. Toyota’s reputation and quest

for continuous improvement in everything they , so accurately

encapsulated in ‘Everything Keeps Going Right’, changed all

the perceptions and built customer trust and loyalty. It focused

the company’s employees and dealers, it guided the company’s

decisions and actions, and was an important ‘driver’ in taking

Toyota South Africa to market leadership in 1980 – a position

it continues to hold to this day. It was the perfect slogan for the

company, and for the time. However, new innovation, added

excitement, superior technological advancement and a reputa-

tion for good corporate citizenship called for change.

With it’s bold attention grabbing presence at one of the South-

ern Hemisphere’s premier automotive shows, Auto Africa 2004,

Toyota asserted its leadership position unequivocally – and

drove the point home with the unveiling of the new slogan,

‘Lead the Way’. It also unveiled new hybrid technology with the

Toyota Prius at the time of launching the new slogan.

Manufacturing

Toyota manufacturing operations in South Africa date back to

1966 when the first Corona sedan rolled off the assembly line

in a shared facility based in Natal. Manufacturing operations

moved to the current location in Prospecton in 1972 with the

establishment of the Motor Assemblies production facility. In

1979, Toyota SA became the sole owner of Motor Assemblies.

Toyota SA has been the subject of a multi-billion rand invest-

ment programme over the past five years. The first phase of the

investment programme was gearing up to produce the Hilux as

the first true high volume export model for Toyota South Africa.

This phase saw R2,4-billion invested in new facilities. The in-

troduction of the new Corolla required that the Prospecton fa-

cility be expanded to enable a volume capacity of 220 000 units

per annum working on a two shift basis.

Toyota continues to lead the wayToyota South Africa is as much about contributing to the world we

live in as it is about making and selling cars.

Dr Johan van Zyl: CEO and President of Toyota South Africa

page 62

Looking ahead

With 29 years of consecutive market leadership, Toyota SA’s fu-

ture plans hold exciting developments and growth within the

realms of vehicle production and sales on both the domestic and

export markets. When Toyota Motor Corporation doubled

ownership in Toyota SA in 2002, a multi-billion rand invest-

ment programme started. The motivation behind this large scale

investment has been the transformation of Toyota SA into a

fully fledged regional production base that is fully assimilated

into the Toyota Motor Corporation global supply network and

equipped to produce vehicles to the highest global quality stan-

dards. Toyota SA proudly ranks among the top ten international

distributors.

Today Toyota SA’s focus is on developing a company that is

globally competitive on all fronts, through a vision based on

three pillars. These pillars include continued domestic market

leadership; being a reliable supplier of quality products to the

Toyota global supply network; and being a profitable operation

that is able to fund future growth.

Toyota continuously seeks out ways to improve systems and

state-of-the-art technology to deliver the highest possible level

of quality vehicles to their customers. But, perhaps even more

importantly, vehicles that are built and designed to have an

emotional connection and a long-term relationship with their

customers, and vehicles that continue to deliver on the promise

of quality.

Toyota’s Guiding Principles• Honour the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good

corporate citizen of the world.

• Respect the culture and customs of every nation and contribute to economic and social development through corporate

activities in the communities.

• Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our

activities.

• Create and develop advanced technologies and provide outstanding products and services that fulfil the needs of customers

worldwide.

• Foster a corporate culture that enhances individual creativity and teamwork value, while honouring mutual trust and respect

between labour and management.

• Pursue growth in harmony with the global community through innovative management.

Toyota SA has been the subject of a multi-billion rand investment programme over the past five years

Toyota’s new Hilux, the top sellingvehicle in SA in 2008, was firstintroduced in October 1969,making it 40 years 'young' this year.

page 63

Progress over half a century

Overview of Volkswagen ofSouth Africa

Production of Volkswagens in South Africa began in 1951 when

the first Beetle rolled off the assembly line in Uitenhage. In

1956, the Volkswagen Group bought a controlling interest in

the South African company, making it part of its global supply

network. Volkswagen of South Africa has come a long way since

that first Beetle saw the light of day on August 31, 1951. Flexing

its not inconsiderable capacity and manufacturing skills, it is

one of the biggest exporters of vehicles from the African conti-

nent. Allied to this is the fact that it was also the top selling car

manufacturer in South Africa for much of the 1990s and into

the new millennium – evidence that Volkswagen of South Africa

has grasped the challenges of the global marketplace. This has

been achieved through an aggressive and focused drive to ensure

integration into the international Volkswagen Group supply

network and an uncompromising approach to quality.

The highly sophisticated vehicles assembled in Uitenhage

contain components sourced from around the world, but in-

creasingly, from local suppliers. Volkswagen of South Africa has

a commitment to developing the South African component

manufacturing industry and is actively helping local suppliers

develop relationships with its German counterparts and others

worldwide - thus ensuring necessary skills and technical

transfers. Volkswagen of South Africa’s dealer network has put

its weight behind the Company by continually investing

millions of rands in upgrades to showrooms, service workshop

technology and the development of people skills. In return, the

Company continues to provide them with comprehensive

passenger and commercial vehicle ranges to meet the mobility

needs of South African consumers.

The Company’s commitment to the self-development of its em-

ployees has also earned it several awards, among them the in-

ternational standard, Investors in People.

1958 – South African Motor Assemblers and Distributors Limited (Assemblers of Studebaker and Volkswagen)

Volkswagen of South Africa has grown from strength to strength since establishing its roots in the industrial town

of Uitenhage, just outside Port Elizabeth, in 1951. The Company remains a key player in the motor industry

not only in the region, but the rest of South Africa and even worldwide. Since its inception, Volkswagen of South

Africa has amassed several accolades locally and internationally, thus ensuring its business confidence in the town

of Uitenhage and the Eastern Cape region. This commitment is exemplified by continued investment in its

operations by the VW Group - to the benefit of communities living in Uitenhage and surrounding areas.

Then....

page 64

Volkswagen of South Africatoday

Volkswagen of South Africa is investing over R3-billion in new

plant, new technologies, new products, and the training and de-

velopment of its people. The investment is expected to further

increase Volkswagen of South Africa’s competitiveness in the do-

mestic and global manufacturing arena, enabling the Company

to capture more growth opportunities on both fronts.

The most significant change which has taken place is the re-

vamping of the Company’s Uitenhage based manufacturing

plant, in preparation for the introduction of future models. This

revamp includes the introduction of new production technology

in the body shop and vehicle assembly operations, as well as a

new engine manufacturing line to supply both domestic and

export markets.

New power and air supplies are other significant improvements,

as is a new automated wheel assembly facility which allows for

wheels to be fitted every 17 seconds. Volkswagen of South Africa

is also in the process of refurbishing its engine plant to a world-

class standard. With an investment value of R500-million, the

equipment is comparable to any installation of its kind in

Europe and within the Volkswagen Group.

The training and development of its people is also key to the

Company. Three new Training Academies strategically located

within or near production have dedicated training teams

providing knowledge and skills to its employees across four key

areas: theoretical classroom based training, standardised

work/line simulation, e-learning modules and practical on the

job training.

Volkswagen of South Africa’s investment into new plant, new

technology, new products and the training and development

of its people is reaping rewards. It has ensured the Company’s

competitiveness in both the domestic and global manufacturing

fields, enabling it to capture more growth opportunities in both

markets and thereby securing the future of Volkswagen of South

Africa, its Dealer Network, Suppliers and all employees involved

in this vast manufacturing and marketing chain.

2008 – VWSA today. Who knows how this picture will have changed another 50 years down the line?

and Now

Automotive Aftermarket Manufacturers AssociationAAMA can be traced back to 1986, when the Partinform Component Manufacturers Association was conceived,and in the words of Paul Williams, who served as Chairman from 1994 to 1998, it “was a creation of goodcomradeship and the mutual sharing of costs for trade evenings”. Malcolm Perrie, the first Chairman of AAMA,was more forthright when he announced the formation of AAMA in November 2008, stating that they had “formalised the old boy’s tea club known as Partinform into a properly constituted and registered association.”

AAMA came about because the specific needs of the au-

tomotive aftermarket were not been met by bodies such

as NAACAM and the RMI, and the Partinform plat-

form was there to be built upon, and AAMA brought South

Africa more into line with international trends and practices.

Malcolm Perrie, Managing Director of Federal-Mogul After-

market, the first Chairman of AAMA, said after the formation

of AAMA in November 2008 that the formalisation of Partin-

form into a far more powerful institution was a necessity,

“NAACAM is primarily an OEM focused body, whereas the

RMI is a retailed focused organisation. Both do a good job in

their respective areas of expertise and focus, and the AAMA

members intend to continue to leverage off the strengths of

these important bodies, but in many cases the specific interests

of aftermarket manufacturers are not being catered for.” To this

end, he added, AAMA did not intend to duplicate what NAA-

CAM and the RMI do, but rather to focus on what they do

not do, or do not do well. Thus AAMA intended to comple-

ment the offerings of these bodies, and to service the unique

interests of the aftermarket manufacturers in four specific areas:

1. Strategic Input: A focus on government lobbying and the

presenting of a united front, for the good of the local after-

market industry.

2. Training Support: The establishment of a training academy

to serve the interests of the local aftermarket industry,

spreading the training net as wide as possible, whilst pooling

resources to create training teams that deliver cost effec-

tively.

3. Partinform: The venerable Partinform format continues,

promoting local brands and passing on the vital message of

quality and safety to all corners of the country via the tried

and tested mini-trade show formula – getting face to face

with the end users and retail shop employees in the rural

areas and emerging markets. A focus on educating the in-

dustry on the different quality levels of life and limb parts,

and the how, why and what behind parts availability and

technical support, will play an increasingly important part

of Partinform.

4. Supply Chain Sustainability: A huge opportunity exists in

the area of supply chain management and improvement, via

a combined approach to areas of common interest. There

is tremendous wastage in supply chain costs in many areas:

inward and outward logistics; customs management, and

the need to lobby strongly on commodity prices.

At its formative stage, AAMA consisted of thirteen founding

members, all who had been accepted on their credentials as

being existing Partinform members. For future members, the

process is more structured, with an application form to be com-

pleted by aspiring members. The entry requirements stipulate

that members must be local manufacturers whose route to mar-

ket is through the traditional channels, and not via vertically

integrated distribution. AAMA now stands at sixteen members,

with three new members having joined early in 2009.

page 65

The inaugural AAMA Executive: Malcolm Perrie, chairman;Murray Long; Norman Bull; Colin Murphy, Partinform chair-

man. AAMA held its first meeting on 21st January 2009.

The Partinform format is a mixture of glitz, glamour, info-tainment, one on one interaction and networking. A formulathat works well. In 2009 Partinform introduced the chance towin a Forza Racing Ferrari Track Experience, and this created

a new dynamic for the attendees.

The AIDC works in partnership

with business, government, and

other involved organisations to

invigorate competitiveness improve-

ment within the automotive industry,

and its services include supplier devel-

opment, logistical services, design, en-

gineering, testing services, human

resource development, and government

support programmes. The founding

shareholders were the CSIR and Blue

IQ Investment Holdings. Barlow Mani-

lal, managing director of the AIDC

since 2008, says that the initiatives im-

plemented by the AIDC over the past

nine years have borne fruit in many

ways, but the biggest achievement is

mostly unseen and difficult to quantify,

but without a doubt the AIDC has al-

lowed the South African automotive in-

dustry to weather the very difficult

times over the 2008/2009 period, and

to soften the blow.

While no new assembly plants have

been set up in the last ten years, the

growing and sustained interest from a

number of foreign vehicle assemblers

interested in setting up new operations

in South Africa continues. Confidence

in South Africa has also received a

major boost with the relatively recent

announcements of export programmes.

The introduction of new brands, pre-

dominantly from India and China, has

had South African consumers benefit-

ing from a model spread of over 1 000

derivatives. South Africa has also estab-

lished itself as a centre of growth in

Africa and is on target to become an in-

creasingly important part of the global

automotive industry. South Africa’s track

record as a manufacturer and supplier of

vehicles and automotive components has

been firmly established over recent years.

The economic crisis will ease in 2010

and improve beyond that, and when

normal business resumes, importance of

synergy and collaboration will be more

important than ever.”

Strategic Focusof the AIDC

Since a strategic review in 2004 the

AIDC has focused its activities on

three key areas, namely Supply Chain

Development, Supplier Development

and Skills Development and Training.

The AIDC’s strategic focus has been

aligned on those issues most critically

affecting the competitiveness of the

local automotive industry. The AIDC’s

role as an industry support centre has

progressed well over the past nine years

with the brand realising greater market

awareness and positive sentiment,

despite operating from a relatively well

established profile. Thus, future activi-

ties fall within the following key areas:

• Supply Chain Development - Moving

the INDUSTRY towards global com-

petitiveness

• Supplier Development - Moving the

ENTERPRISE towards global com-

petitiveness

• Skills Development and Training -

Moving PEOPLE towards global

competitiveness.

Promoting World Class CompetenciesDuring September 1997 key stakeholders in the South African automotive industry got together to map out the future.

With the impending demise of the Motor Industry Development Programme (MIDP) in 2002 (subsequently revisited,

revised and extended to 2012, and reincarnated as the Automotive Production and Development Programme (APDP) in

2008), it was decided that South Africa should enter into the big league of automotive exports, which would require fun-

damental changes in manufacturing methodologies and mindsets. A detailed study by the CSIR and the Fraunhofer Society

in Germany pointed to the requirement of an Engineering Centre of Excellence. Industry, labour and government concurred,

and this led to the establishment of the Automotive Industry Development Centre (AIDC) in October 2000, with the

vision “to contribute to the establishment of a viable South Africa automotive industry that is competitive both domestically

and globally, and which is capable of achieving continuous growth and sustainable job creation.”

page 66

According to Philip Herselman, Business

Manager of the Industrial Air Division of

Atlas Copco, the company’s products and

services are designed to assist its customers to

achieve maximum productivity. “This has

been an Atlas Copco philosophy since its

establishment,” he says, explaining that the company has its

roots in the 1947 association between Delfos Limited and

Atlas Diesel which evolved into Delfos & Atlas Copco (Pty)

Ltd in 1956. The name 'Copco' is derived from Compagnie

Pneumatique Commerciale, being the name of a Belgian sub-

sidiary. When Atlas Copco purchased the remaining shares in

Delfos, the company's name changed to Atlas Copco SA.

Today Atlas Copco enjoys international recognition as a mar-

ket leader and specialist in the design, manufacture and supply

of clean, tailor-made compressed air systems for various ap-

plications. “Our objective is remain ‘first in mind – first in

choice’ with all our customers and we believe that our combi-

nation of product excellence and dedicated staff assist us in

achieving this goal,” says Herselman. The company’s relation-

ship with Porsche Centre South Africa clearly illustrates the

success of its philosophy. Atlas Copco was selected as the sole

supplier of 100% clean, compressed air and nitrogen equip-

ment at Porsche Centre’s new home which incorporates sales,

service, body repairs, rebuilds and PD under one roof. It also

boasts 40 service bays, two wheel fitment bays, two spray

booths, a PDI centre as well as a training centre. The new

Porsche premises is one of only a few facilities utilising 100%

oil-free compressed air technology, unlike the body repair in-

dustry in South Africa which operates predominantly with

‘technical’ oil-free compressed air in which filters are used to

remove oil in the air lines originating from oil injected screw

compressors. Once the differences between these standard ISO

8573-1 Class 1 filters and Atlas Copco’s Class Zero technology

were explained, it was an easy decision for Porsche Centre

South Africa to install the system - especially when taking into

account the risk of oil contamination, particularly in the del-

icate spray paint processes.

At Porsche Centre an Atlas Copco ZT 50 ID VSD Oil Free

compressor with a piping ring main consisting of Atlas

Copco's AirNet throughout supplies oil-free compressed air

to the entire facility. An Atlas Copco GN 7.2 dual output

nitrogen compressor supplies nitrogen for tyre installation in

the wheel fitment bay. This is the first local AirNet piping in-

stallation and a breakthrough for Atlas Copco South Africa.

Being appointed sole supplier of clean compressed air for this

prestigious project once again affirms Atlas Copco's values of

interaction with customers, product innovation and commit-

ment to service excellence which the company has adhered to

over the years.

“In meeting all our customer's requirements, we supplied a

unique, tailor-made solution to realise the high expectations

and standards demanded by Porsche in Germany. We’ve also

given Porsche Centre South Africa a firm undertaking to

maintain and develop this partnership by meeting and even

exceeding every expectation for after-sales and service

support,” adds Herselman.

Achieving Maximum ProductivitySwedish multinational, Atlas Copco, has a long history in the southern African region and is today a leading

player in numerous industries, including the automotive aftermarket.

page 67

page 68

Through the decades

Both Behr and Hella are world-renowned companies and both

have over 100 years of experience as system partners of the in-

ternational automotive industry. Providing a wide range of

thermal management systems, air conditioning components

and electronic products for many of the major vehicle manu-

facturers and the automotive aftermarket, both companies

have been key players in the South African automotive indus-

try for several decades. Silverton Radiators shares much in com-

mon with its German partners and although it is now a

franchise consisting of 124 automotive cooling system specialist

repair and supply outlets throughout Southern Africa, the

company originated as the aftermarket division of Silverton

Engineering, a manufacturer of copper / brass radiators,

established in 1949 in Silverton, Pretoria. During the mid

1960’s the Company opened a number of radiator workshops

to service the repair trade. These grew to 46 branches coun-

trywide. By 1970 the aftermarket operation had grown into a

substantial business and a separate company with its own

management was established under the name Silverton

Services. In 1980 the company commenced converting its

branches into individually owned franchises under the

Silverton Radiator banner.

Across the millennia

In 1999 BEHR GmbH (Stuttgart, Germany) bought Silverton

Engineering and Silverton Services along with two other

companies (formerly FHE Technologies & Connoisseur Air

Conditioning), changing all of these into Behr facilities as part

of their worldwide network. These respectively produce

copper and aluminium radiators, air conditioning components

and exhaust gas reticulators (EGR) primarily for the Original

Equipment and Export markets. Behr Service South Africa

was established to service the independent aftermarket and act

as franchisor to the franchised network of Silverton Radiators.

As part of a world-wide joint venture with HELLA KGaA

Hueck & Co. (Lippstad, Germany), the company became

Behr Hella Service South Africa in 2007. Behr Engine Cool-

ing’s Pretoria factory includes a special aftermarket facility,

set up to produce short-run, non-current products on a rapid

response basis to meet the aftermarket need for nation-wide

replacement parts. Distribution takes place through 6 ware-

houses located in the major centres which service a network

of 124 Silverton Radiators franchised repair shops throughout

South Africa and its neighbours.

Into the future

Behr Hella Service now also has 41 service partners and

distributes a range of aftermarket automotive air conditioning

components including refrigerants and lubricants. The com-

bination of home-grown engineering talent and German

technological innovation puts Behr Hella Services and Silver-

ton Radiators in a unique position to service the local

aftermarket with the widest range of radiators, cores,

condensers and air conditioning components which fully

comply with international Original Equipment standards set

by vehicle manufacturers. Consumers can now travel with

confidence knowing they have the world’s best automotive

cooling system specialists just around the corner.

Thermal Management Comes of AgeIf a modern internal combustion engine has one arch-enemy, it is heat and in a country as hot and dusty as ours,

thermal management systems have not only ‘kept the wheels rolling’ but have become a standard fitment to new

vehicles. South Africa has a proud history of thermal management system development stretching back over six

decades, a legacy that has given birth to a truly exceptional partnership between local radiator specialists, Silverton

Radiators, and the global leaders in automotive climate control, Behr Hella.

The Company started from humble beginnings in 1990 with the purchase of a smallcompany assembling brake hoses for the automotive aftermarket in Pretoria.

In 1992 CEF in Italy granted the company sole distribution rights for its products in southernAfrica. The development of a unique crimping system conforming to international standards

and the appointment of small, specialised and well trained distributors throughout SA led to anenormous growth for the company. Having developed a focus on niche brake products QuickBrake in Denmark was approached in 1994 to appoint the company as it’s distributor for spe-cialised small brake products including brake springs, fitment kits, bleed screws, copper nickelbrake tube and brake wear sensors. In order to better understand the market it operated in and

ensure that it complied with local legislation BHCS joined the RMI in the mid 1990’s and has been an active member ever since,making full use of the benefits this organisation has on offer.The company now has over 420 stockists throughout southern Africa,supplying Automotive aftermarket retail and wholesale outlets, brake repair centres and original equipment manufacturers.

The origins of the company date back to the early years of the post world war II period, whenrubber moulded parts and rubber hoses were produced in a tiny factory in Milan. In 1955,hose production focused on brake hoses and grease hoses sold in bulk form to hose assemblers.In 1964 the company moved into production of complete brake hose assemblies and now pro-duces flexible hydraulic hoses in reinforced rubber and PTFE Stainless Steel, suitable for brakes,clutches and gear boxes. From the 80s onward the company has maintained a steady growthpace through some important achievements, supplying products to countries around the globe,in 1987 it landed its first OEM contract. MGF now entertains long lasting business relation-ships with vehicle manufacturers and system/module suppliers such as Ford, Iveco, Yamaha,Piaggio, Valeo, Bosch, TI Automotive, Brembo, LUK and Magneti Marelli. The company hasprojecting capabilities, an R&D Team, internal laboratories, is TUV and AMECA accreditedand is ISO 16949 certified. MGF is reorganising its entire organisational structure with theaim to go global and will be opening operations in a number of countries in the near future.

Having a background in trading with semi-finished products in steel and non-ferrous metals, Mr Otto Johs Detlefs (OJD)founded the company OJD Trading on the 30th October 1971. The idea was to become a sub-supplier to the Danish

industry of semi-manufactured products (part components in steel and non-ferrous metals ready for assembly). Parallel withbuilding the company as a sub-supplier to the industry, brake and clutch companies in Denmark were approached with theintent of selling copper tubes in boxes. This is why the brand name is Quick. These were coiled in the cellar of his parents, Curtand Minna Detlefs house near Copenhagen. This was the beginning of the Quick Brake Department. Through out the yearsOJD Quick Brake became a leading supplier to the global automotive braking aftermarket and OES with brake parts for passengercars and light commercial vehicles and trades with niche brake component products for the automotive aftermarket. OJD QuickBrake has a complete range of automotive brake parts and accessory kits, brake tubes and brake pad wear sensors.

page 69

The Power of ThreeBRAKE HOSE & COMPONENT SUPPLIES

MANIFATTURA GOMMA FINNORD SPA MANUFACTURER OF CEF BRAKE HOSES

OJD QUICK BRAKE APS

page 70

In the same year that Neil Armstrong planted a USA

flag on the moon, Chris & Susan Gregoriou estab-

lished Chris Auto Electrical with only 100 Rhodesian

Pounds. In 1972 Johann de Bruyne joined Chris Auto

Electrical as an apprentice. In 1976 the Gregorious

established Chris Auto Electrical in Pretoria, South Africa, and

in 1984 Johann moved to Pretoria as Partner and Managing

Director. 1985 saw Chris Auto Electrical become the first

company in South Africa to recondition starter motor bendix

drives. The company grew apace and in 1991 Chris Auto

moved to its present location in which is housed; a Starter/

Alternator rebuild workshop, Bendix rebuilding section, a

large rewind department which encompasses machine and

welding sections, Diagnostic Workshops, a comprehensively

stocked Auto Electrical Store, Counter Sales Area and Work-

shop Reception. In 1993 Chris Auto Electrical was rated as

the largest Auto Electrical Company in South Africa and the

only Auto Electrical Company to do all aspects of Auto

Electrical related work under one roof.

1995 saw further growth, with the establishment of a branch

in Witbank, and the relocation of the Marjon Rewind factory

from Bronkhorstspruit to Pretoria West. 1995 also saw the

renaming of Chris Auto Electrical to CAELEX. The company

continued to apply the highest standards and to implement

stringent Quality Controls and to initiate improvements, such

as adopting the Electrolog numbering system to simplify

communication between sellers and buyers of CAELEX Auto

Electrical products. Innovations continued apace, such as the

release in 2005 of the ground breaking RT5551 new genera-

tion Voltage Regulator tester, the PSSD2005 Pole Shoe Screw-

driver Kits, the PCM / computer friendly litebuddy circuit

tester. Caelex was continually looking for ways to improve

customer relations and at the end of 2005 they became a

Capricorn Preferred Supplier. In 2006, CAELEX hosted the

very first Auto Electrical Technology evening, which has

grown to become the WATS Show that is hosted in two major

centres of South Africa every year. CAELEX established the

Kigima Auto Electrical Training Centre in 2007 and in 2008

started carrying out Pre-Trade & Advanced Auto Electrical

Courses that includes Diagnostic Scanning & Gas Analysis.

To celebrate forty years of quality products and committed

service to the auto electrical industry in southern Africa,

Caelex released in 2009 the very first comprehensive online

Auto Electrical Catalogue & Quotation and Ordering System.

Life Begins at 40From humble beginnings originating in Rhodesia in 1969, Caelex turned 40 years

young in 2009, and what a journey it’s been!

The 12 000 member businesses, estimated to

employ over 38 000 people, serviced and

repaired over 14 million vehicles using almost

R6 billion of products from around 1 300 top

name suppliers. Capricorn has a Board of

Directors comprising of six member elected member Directors

from six different geographic zones and two non-member

directors. In 2006 Capricorn converted from a co-operative

business under various legislation, to an Australian corpora-

tion to allow it to expand its products and services to include

some which would not have been possible under the previous

structure. Although it changed its corporate structure the new

Constitution has enshrined the seven principles of cooperation

as per the ICA (International Co-operatives Alliance) within

the statutes of the corporation that is now Capricorn Society

Limited. In 2003 Capricorn established Capricorn Mutual

Limited to provide its members with protection for their busi-

ness assets (the Mutual provides protection as an alternative

to traditional insurance products).

For the first five years the management of this business was

undertaken by a third party specialist provider. In May 2008

Capricorn brought the management of Capricorn Mutual in

house with the establishment of a new entity called Capricorn

Mutual Management Pty Ltd. At the same time it also estab-

lished Capricorn Society Financial Services Pty Ltd which has

a joint-venture with UK based Regis Mutual Management

Ltd. This joint venture entity, Regis & Partners Pty Ltd, was

developed to manage Mutual entities on behalf of other

industry groups. Capricorn Society Financial Services Pty Ltd,

which is expected to grow substantially over the coming years,

provides members access to finance products and is a licensed

finance broker in its own right.

The ‘member helping member’ concept of all co-operatives

has meant that the Capricorn model has had to face some

tough times over the years, as it counts on its members paying

their bills on time. Members who fall behind on payments

drains the reserves and burden the members doing the right

thing, so all member accounts are closely monitored. Capri-

corn has built up a strong balance sheet with cash, property

and share portfolio assets now over AU$130 million (R900

million) to secure its future. It has 140 staff in three countries

with 35% of those in the field, meeting members and suppli-

ers daily to ensure best practice and personal service.

The preferred suppliers list to Capricorn reads like a ‘who’s

who’ of the automotive parts industry as leading companies

recognise the value of being able to underpin their business

with a large cross-section of their accounts with a guaranteed

payment direct to their bank account from Capricorn. Names

like Valvoline, AutoZone, Castrol, First National Battery, and

Trentyre plus the local dealerships for all new vehicle fran-

chises and hundreds of smaller specialist suppliers make up an

enthusiastic group of parts suppliers who work with Capricorn

to offers its members great value and great service . . . the key

reason Capricorn overall sales numbers have continued to

grow at 10%+ every year for the past number of years.

Member purchases in 2008-2009 were AU$851.5M

(R5,961M) and it distributed AU$11.1M (R78M) of profits

to members through either reward points or a dividend.

Tri-NationAlliance

Capricorn Society Limited is one of thelargest automotive buying groups in theSouthern Hemisphere, established as aco-operative in Australia in 1975 by 12 service station proprietors. The com-pany has now grown to over 12 000member businesses in three countries:Australia, New Zealand and since 2000the Republic of South Africa.

page 71

Charles Wakefield, the

founder of Castrol, laun-

ched the company from

three small rooms on the

third floor of 27 Cannon Street, in the

heart of London and it was there, on

Thursday, March 9, 1899 that the firm

of CC Wakefield & Co opened its

doors. The Castrol product name was

introduced in 1909, together with the

distinctive red, green and white colour

scheme that continues to this day.

Charles Wakefield worked with pioneer-

ing motorists and aviators in his bid to

produce the world’s highest quality lu-

bricating oils – and then to improve

them. It was natural that Castrol was the

oil of choice for breaking world speed

and endurance records. The Land Speed

Record alone has been broken an amaz-

ing 21 times by cars using Castrol lubri-

cants. Wakefield was a pioneer in

marketing and his strategy of advertising

his products’ record-breaking and race-

winning feats put the Castrol name on

the map around the world.

The company continues to use motor

sport and record-breaking to promote

the Castrol brand. Many lubricants

started out as special developments for

motor sport before being made available

to everyday motorists. The most famous

of these products is GTX, although the

unique smell of castor oil based Castrol

“R” was synonymous with motor racing

for many years and is still made in small

quantities for enthusiasts.

Castrol was established in South Africa

in June 1929 and has now served the

local automotive and industrial markets

for 80 years. Originally known as the

Wakefield Company, the South African

operation opened with branches in

Johannesburg, Durban and Cape Town

and spread to Rhodesia (now Zim-

babwe) in 1939.

During the period of the Second World

War, from 1939 to 1945, the first local

blending plant was established. In 1945

a branch was opened in Port Elizabeth.

In 1951 Wakefield Deusol engine oils

for diesel engines were introduced in

South Africa. A new blending plant was

established at Island View Works in

Durban in 1958. Castrol products are

still blended in Durban, but it is now

carried out by a service provider,

Blendcor.

In 1960 the company changed its name

to Castrol South Africa. Castrol was ac-

quired by the British petroleum com-

pany, Burmah in 1966 and the company

was renamed Burmah-Castrol.

1972 also saw the first running of the

Castrol Rally, destined to become the

most famous rally in South Africa. In

1974 the company’s head office moved

from Isando to Parktown in Johannes-

burg. That same year Castrol acquired

Durol Oil, a used oil refining company.

This company was taken over by BP

Amoco (now renamed BP) in 2000 and

Castrol branded lubricants continue to

be sold around the world and in many

countries it is the market leader. The

business is concentrated on automotive

lubricants, particularly in the consumer

sector, but there is also a strong presence

in business markets such as commercial

vehicle fleets, marine, aviation and

specialised industrial segments.

Castor Oil Started the CastrolSuccess StoryThe Castrol name is derived from its original base component – castor oil – with production

of this new lubricant having started in 1909.

1917

1929

1948 1958

1968 1992

page 72

For example, in the case of an accident involving a

roll-over or a frontal impact collision, the wind-

screen represents the first line of defence. An in-

correct installation, or repair – with subsequent

failure - could result in injury or death.

“This is why our emphasis is on expert workmanship by fac-

tory trained technicians and the fitment of quality replace-

ment glass meeting SABS standards,” says Gilo Da Silva,

managing director of Commercial Auto Glass, a member of

the Commercial Group of companies.

“If a vehicle should roll, the windscreen is a major structural

component designed to reinforce the vehicle’s roof and prevent

it from collapsing on the driver and passengers. The wind-

screen also acts as a platform to support the airbags. If the

windscreen is not installed correctly, the airbag deployment

could force it off the vehicle,” he explains.

With branches throughout the country, Commercial Auto

Glass outlets are the only SABS approved windscreen fitment

centres in South Africa. All glass supplied is shatter-proof, lam-

inated and highly penetration resistant, as specified by the

SABS. The glass also meets the highest international standards

including ISO 9001, ISO 9002, ISO 9003 and QSV9000,

carrying the ‘E’ or ‘DOT’ marks specified by European and

American standards authorities.

The company has offered a hassle-free solution for trucks, cars,

minibus taxis and light delivery vehicles since Commercial

Auto Glass opened its doors in 1999. From a single outlet, the

company has subsequently added a further 10 branches na-

tionwide. Over the past decade the company has grown to be-

come recognised as a preferred supplier of auto glass to the

transport industry, supplying solutions to meet the require-

ments of company fleet managers for tight turn-around times

and demanding contractual requirements.

Commercial Auto Glass also provides a service to the insur-

ance market which allows for versatility in maintaining conti-

nuity within the glass industry. The product range includes

glass designed to meet strict OEM standards and other criteria

determined by the motor manufacturers in consultation with

the insurance companies.

Commercial Auto Glass supplies glass – including door and

vent glass as well as rear windscreens, together with rubber

seals and mouldings - for most local vehicles and many im-

ported models. Its fitment centres are safe and secure, with

comfortable waiting rooms for the convenience of owners and

drivers. The company also provides a mobile repair service.

“All our fitments carry a warranty and customers are provided

with a ‘fitment care’ brochure once the requested work has

been completed and the installation has been inspected and

tested. Using the brochure, which outlines our ‘safety first’

policy, Commercial Auto Glass staff will discuss the need for

an appropriate curing time for the windscreen adhesive with

the vehicle’s driver or owner,” adds Da Silva.

Clear vision aheadWindscreens are crucial safety elements in modern vehicles and auto glass installation, replacement and repair

are all critical to the maintenance of acceptable driver and passenger protection standards.

page 73

However, this is only half the story, because the roots

of Diesel-Electric can be traced back to 1906, when

Friedrich Hoppert & Co was contracted to sell Bosch

products from Stuttgart, and its branch in Johannesburg sold

the first Bosch products in South Africa. Otto Nagel and a Mr

HC Boes, who had ties to both Friedrich Hoppert & Co and

Robert Bosch Germany, started Technical Supplies in 1946 with

a Mr W Weinrich, and they were granted exclusive marketing

rights for Bosch products in 1950, thus completing the circle.

In 1977, Diesel-Electric Holdings (Pty) Ltd, (DEH) was

merged with sister company Robosa Distributors (Pty) Ltd to

form Diesel-Electric South Africa (Pty) Ltd (DESA), and in

1983 this company became a wholly owned Bosch subsidiary.

Today, this network of independently-owned, Bosch contract

partners and franchise holders supplies the needs of Bosch Serv-

ice Dealers, fleet operators, workshops, Independent Specialist

Repairers, garages, franchise dealers, parts shops and chain stores

in the southern African market. Diesel-Electric specialises in the

automotive fields of electrical, gasoline and diesel fuel injection

and general safety and service lines. To this end Diesel-Electric

supports, distributes and represents not only Bosch Automotive

Products but also a wide range of prestige automotive compo-

nent brands such as ATE, Beru, Ferodo, Gabriel, GUD, Hella,

NGK, Osram, Ram, Sachs, Valvoline, VDO, Zexel and others.

The Diesel-Electrics are also involved in Workshop Equipment,

representing not only the complete range of Bosch test equip-

ment, but also other brand leaders in the field such as Gedore,

Hawkins, Wera, and many others. Bosch regional distribution

centres in South Africa order their Bosch requirements directly

from the Bosch worldwide distribution headquarters at Karl-

sruhe in Germany, or in the case of locally manufactured

products via the Bosch factory in Brits.

In 2004, in response to the ever growing car parc and the ever

growing need to service cars out of motor plan, Diesel-Electric

created e-CAR, throwing a lifeline to independent workshops

which had the entrepreneurial spirit, but not the where-

withal to provide 21st century service to the modern

motorist. The e-CAR concept was based on a well

established European model, and thus the im-

plementation in South Africa was seam-

less, and today e-CAR is the fastest

growing workshop network in

South Africa, with 60 mem-

bers and counting, each

with a technical hot-

line to Bosch.

From F Hoppert to Diesel-Electric,103 years of service to South AfricaThe official birthday of Diesel-Electric South Africa is 1951, when Otto Nagel, then in charge of Technical Sup-plies Company (Pty) Ltd., invited a Mr. L. Schwabe to form the first Diesel-Electric in Cape Town, the namechosen because it typified its product range and activities. Growth into the other provinces and neighbouringterritories soon followed, and in 1957 the company achieved a national footprint when Diesel-Electric (Transvaal)(Pty) Ltd took over the distribution and service functions from Technical Supplies in the then Transvaal area.

page 74

Otto Nagel, who is credited as being the founder of

Diesel-Electric

This establishment can withjustification be defined as thefirst Diesel-Electric outlet in

South Africa

Chris Swale Motors in Pinetown, Kwazulu Natal, was the first e-CAR workshop in South Africa, putting up the first e-CAR

sign in May 2004

Leaders in Ignition EngineeringWith an extensive history in motorsport, including a national Formula Vee championship to his credit, together

with a mechanical engineering degree, Stan Levin was ideally placed to establish himself in the motor industry.

DISTRIBUTOR REMANUFACTURERS SA – AUTO ECU

After a stint at Nissan he realised that an in-depth

understanding of auto ignition systems – partic-

ularly high performance systems finding their way

onto racing cars of the mid-1970s - was lacking.

“Of course, the ignition systems of those days

weren’t the computerised systems of today,” says Levin. “They

relied on points and condensers, but I built technically

advanced systems that produced more horsepower, which was

confirmed on the dynamometer.”

Success on the race track prompted Levin to turn what was ba-

sically a hobby into a full-time profession and so Distributor

Remanufacturers SA was born. In the late ‘70s the Chrysler

Valiant came out with the first electronic ignition system,

dubbed SureFire. Levin realised that this represented the future

– although many industry watchers of the time said it was a

‘passing phase’. He immediately refocused on the technology

and his company’s leadership in ‘ignition engineering’ was es-

tablished. Today the company is the largest importer of ignition

system components in SA. It also manufacturers many compo-

nents using modern computer numerical controlled (CNC) ma-

chines. Expertise in electronic ignition systems led Levin into

the world of computerised ignition systems and, using his en-

gineering skills, he began experimenting with engine mapping

and related technologies. He built test machinery and estab-

lished a subsidiary – Auto ECU – specialising in the service

exchange of electronic control units for most vehicles.

Ten years ago son Steven joined the business, followed by other

son Simon on completion of his university studies. With their

input, the two businesses have grown significantly over time.

So much so that the Levins began looking for a new challenge.

They formed a new company – Auto Diagnostics – which is

able to diagnose electronic faults on most cars in the South

African car parc. It also does a significant amount of program-

ming of computer boxes mainly for the auto industry. Among

his many contributions to the SA motor industry, Levin lists

the inventions of a ‘module tester’ designed to test ignition

modules and an ‘ECU tester’ – both patented. “I also hold the

patent for a device called ‘Block Mark’ which is able to mark an

engine block with an indelible, completely permanent number.

Market surveys among companies concerned with stolen vehicle

recovery were incredibly positive, but my efforts to sell the con-

cept to the motor industry failed because of its reliance on the

replacement of stolen cars to boost sales figures.”

Looking to the future, Levin says the emphasis on computer

systems in new motor vehicles will increase. “Therefore we con-

tinue to build our expertise in this area, because we realise the

hybrid cars, electric cars and even hydrogen cars of tomorrow

will be heavily reliant on computer technology.”

Notwithstanding these developments, more than 50% of the

company’s turnover is centred on distributor repairs and replace-

ment. “It’s a clear indication of the aging of the local car parq

and the fact that cash-strapped owners are still relying on older-

generation cars to keep mobile,” he adds.

page 75

Dynamax Auto Compo-

nents, with its premises in

Spartan, Kempton Park on

the East Rand, is owned by

two enterprising entrepreneurs, Antonio

Sanchez and Joy Jenkins. Its roots go

back to 1964, when Antonio’s grandfa-

ther, John Lefkaros, established an auto

electrical business under the name of

Dynamax Auto Electrical. Antonio and

Joy met 15 years ago. At the time, Anto-

nio was learning the auto electrical trade

under the tutelage of his grandfather,

while Joy was instrumental in supplying

products to South African armaments

giant Denel through her company, Au-

tomatic Repetition. The two subse-

quently bought out Dynamax Auto

Electrical from Antonio’s grandfather

and initially rented the premises for their

business from him. The right combina-

tion of drive, innovation and entrepre-

neurial skills allowed the partners to

investigate the gaps in the auto electrical

market and come up with solutions and

products to assist their customers. At the

time, the copper contacts in Toyota’s Hi-

Ace minibus taxis and panel vans were

imported, and this gave the fledgling

company the opportunity of manufac-

turing these locally. The partners ap-

proached a reputable engineering firm to

fabricate the tooling required to press the

contacts, and they sold these to well-

known auto electrical distributor Ger-

miston Car Electric/ELPAR.This was

their first product. In the first year, they

supplied more than 5 000 units to

GCE/ELPAR. Since then, Dynamax

Auto Components has produced more

than one million units. The manufactur-

ing side of the business was expanded

and along with field coils for starter mo-

tors, new products related to starter mo-

tors were introduced, covering most

electrical systems sold in South Africa. At

the same time, the company’s client base

of reputable auto electrical distributors

was expanded on a sole basis, a principle

to which they have adhered to this day.

By 1998 Dynamax Auto Components

was supplying Prestolite Electric (previ-

ously Lucas) locally and overseas with

field coils and starter repair kits. De-

mand continued to increase, which ne-

cessitated extra space, and in April 2001

Dynamax moved to their present, bigger

premises on the East Rand. Through

continued investment in the manufac-

ture of their products, the company ex-

panded into armatures, solenoids and

Bendix drives. In 2003 the Local Presto-

lite Elecric operation closed down and

the partners saw the opportunity of mov-

ing into alternators, having bought out

the regulator and rectifier plant from

Pretolite and investing substantially in

the tooling required. They branched into

the supply of the AS123 rectifier and reg-

ulator, maintaining the stringent quality

and supply chain as used by the OE

manufacturer. At the same time the

manufacture of the complete range of

Prestolite units for both starter motors

and alternators for passenger and heavy

commercial vehicles, including tractors,

commenced.

Today Dynamax Auto Components

manufactures complete aftermarket

starter motors and alternators (Lucas sys-

tem), while expanding their range of

products to include other electrical sys-

tems, such as Bosch, Delco and Japanese

brands. Dynamax Auto Components

does not supply their products directly

to the public, but to the major distribu-

tors of auto electric products in South

Africa, while they also export to Europe

and the USA. Dynamax Auto Compo-

nents celebrated their 15th anniversary

in 2009.

“The company is ready to meet the chal-

lenges of the future and we are ready to

respond to our customers’ needs,” says

Antonio Sanchez.

“We are a proudly South Africancompany and are proud of thequality of our products. The suc-cess of Dynamax Auto Compo-nents is built not only on theloyalty of our customers but, im-portantly, also on the loyalty,skill and dedication of our em-ployees, many of whom havebeen with us since the start.”

Formidable Combination of Drive,Innovation and Skills

DYNAMAX AUTO COMPONENTS

From humble beginnings 15 years ago, Dynamax Auto Components has blossomed into a flourishing business whose auto electricalproducts are today used in hundreds of thousands of passenger and commercial vehicles across the country and overseas.

page 76

This immediately added a

strong set of automotive

sector orientated skills to

the macro economic

forecasting reputation of

Econometrix, which was rapidly gain-

ing attention on the back of

exchange rate forecasts that foresaw the

decimation of the external value of the

Rand well before it happened in the

middle years of the 1980s. Twine’s no-

toriety rose just before the January 1985

one-off 54% rise in the petrol price

which few had believed could happen,

right up to the moment the axe blade

fell. At that stage, the Econometrix

team was joined by another ex-Nissan

man, Ron Dowse, who added both sales

skills and consulting inputs before later

moving on to become a dealer principal

in the retail motor trade.

A major breakthrough in product devel-

opment terms occurred in 1989, when

WesBank worked with the Econometrix

team to build a residual value risk

management system, with Econometrix

providing the statistical modeling and

software environment skills, Mead and

McGrouther the data to calculate used

vehicle dealer margins, and WesBank

providing the financed price data for

used cars and distributing the output of

the system to its dealmakers on the

dealership floors.

By 1986, Dr Azar Jammine had taken

over the Chief Economists position,

which he occupies to this day. He and

Tony Twine have for a quarter of a

century become familiar figures in the

manufacturing, vehicle assembly and

retail arms of the sector, presenting their

views of the economic environment in

which the sector is, and will find itself

operating in the future. For some years,

Lourens Erasmus, who was previously a

planner at Spoornet, acted as an

Account Executive and transport con-

sultant within Econometrix. Soon after

Lourens moved on to join the planning

team at Mercedes Benz, Frank Beeton,

who had become a consultant after

10 years at Nissan Diesel SA and

another earlier decade at General Mo-

tors joined forces with the automotive

team at Econometrix. His encyclopedic

knowledge of the local and global auto-

motive supply industry is a valuable

asset for both the team and its clients.

Since the inception, Econometrix has

provided a periscope for the industry to

scan at the ocean of information within

which it is. Raw material, component

and vehicle suppliers, retail dealer net-

works, finance houses and insurers have

all used the unit’s briefing publications,

presentation skills and one-on-one con-

sultation services.

Twine and Beeton are sought-after edi-

torial contributors to both industry and

general economic publications. They

clearly have petrol and diesel in their

veins.

Times of sharply weakening economic growth rates following record levels of new vehicle sales after thegold boom of 1980/81 blew itself out, hardly seemed auspicious for launching an economic consultancy.September 1982 saw the establishment of Econometrix Pty Ltd, under the free thinking leadership of itsfounding Chief Economist, Dr Frank Shostak. The Consulting and support team quickly began to grow,and a year after start-up was joined by one of the company’s earliest industrial clients, Tony Twine whohad previously been the Market Research Manager at Datsun/Nissan SA.

page 77

Econometrix – road maps forfuture business

Tony Twine

Frank Beeton

“The recession actually helped us to a certain extent, notesPrakash Bhagwan, director of Euroquip. This is due to the factthat, rather than replacing their motor vehicles during the financial storm, many people chose to weather it and kept theircurrent vehicles for a longer period of time, and instead placedmore emphasis on taking care of their car’s parts. “They turnedto us for quality products, so we actually grew during the recession,” adds Bhagwan.

This is truly a testament to Euroquip’s strength as a company,

particularly as a new one. It is not often that when a multitude

of businesses are closing down, one that has been open for less

than five years actually grows. “Our dedication to high quality

products has led to our success,” notes the director. High qual-

ity products indeed, as Euroquip only distributes parts

renowned for their superiority in the motoring industry.

Brands in the company’s stable at present include Valeo, Hella,

Ocap and Philips. There will always be challenges with a new

business though, but in dealing with these, Euroquip has ex-

perienced a number of successes as well. “We have definitely

gotten where we want to be in the past four years,” Bhagwan

states. “We are a very quality conscious company, and further-

more, we wish to expand in the short and medium-term fu-

ture.” In fact, over the next five years, Bhagwan says that

Euroquip is aiming to become a national organisation with

countrywide distribution and coverage. “We really want to go

national. Expansion involves a lot of things, and we want to

expand our database, we want to develop our client base and

we really want to grow our product range in the coming years.

“We provide a personal service, the kind of service people don’t

get anymore,” Bhagwan comments. The philosophy of Euro-

quip, one of great service and unrivalled quality, means that

problems are few and far between, and as such the company

has managed to grow despite tough times, and will undoubt-

edly continue to do so.

Thanks to Euroquip’s relatively fresh success, it has become

clear that the company has a rich future ahead of itself, and

one that will help maintain the mobility that South Africa and

South Africans rely on so very much. Now that the economy

is slowly but surely recovering, Euroquip is destined for great

things, and with the right people at the helm, the company’s

superlative quality, service and growth will keep South African

motorists happy for many more years to come.

Equipment that keeps (us) moving forward

Euroquip is one of the relatively new companies on the automotive block. The company distributes high-quality

parts to the motoring industry, one of the hardest hit industries in recent times. However, its strength has been

highlighted by the fact that despite the closing of a number of established companies during the economic recession,

Euroquip is still around, even though the company only opened its doors in 2005.

page 78

Experiments in the use of asbestos began in the first

decade of the twentieth century and by the outbreak

of war in 1914 production of clutch linings and stair

treads had started. The use of asbestos in Ferodo Ltd

(as the Herbert Frood Company became in 1920) friction

products led to the company joining the Turner and Newall

Organisation in 1926. Some 41 years later, in 1965 Ferodo

South Africa established the brake bonding business known

as Ferobrake. In those days it wasn’t limited to the Auto-

motive Industry; in fact a large part of the business was via

ships chandlers, providing braking material in the form of

Ferodo Woven material to the Marine Industry. Ferobrake

also provided services to the Aircraft industry, supplying

many of the Ferodo products illustrated in the attached

war time advertisement.

Ferobrake spread its roots from the shores of Natal

(today KwaZulu-Natal), strategically positioned near

the Ferodo factory, which was initially in Jacobs and

then later Prospecton. During the next 20 years

Ferobrake was owned and sold by Turner and Newall no

less than twice, and finally, in the mid-eighties was

entrusted to an independent group of businessman, many of

whom had been running the businesses for many years. Ferobrake

was then purchased by another large automotive group, and after a series

of acquisitions was renamed CBS, previously a sister company also marketing

the Ferodo brand. This latest acquisition, however, took them out of the fold of Fer-

odo and reluctantly they marketed competitor products. This changed in 1999 when once

again the individual branches were sold off, many electing to rename their businesses Ferobrake.

Today there are 43 Ferobrake outlets across the length and breadth of South Africa, providing a national

footprint unequalled by any competitors. Ferobrake again proudly markets Ferodo Automotive products, and

concentrates on providing specialised brake, clutch and prop-shaft services to the heavy duty industry.

Ferobrake can be contacted on www.ferobrake.co.za.

In 1897 Herbert Frood began his experiments into braking

materials in a hut in the garden of his house in Coombs near

Chapel-en-le-Frith, England, UK. His patent for the im-

provement of brake blocks was filed in October 1900 and

production began at Green Street, Gorton the following

year. An increase in trade, largely resulting from a change

in sales tactics - approaching the consumer rather than

the manufacturer - led to Frood renting Sovereign and

Howden Mills in Chapel-en-le-Frith in 1902.

Ferobrake: More than a Century of Service

page 79

In 1748, Benjamin Franklin first coined the term “bat-

tery” when describing an array of charged glass plates.

Luigi Galvani demonstrated the electrical basis of nerve

impulses in the 1780s, and this led to Alessandro Volta

inventing the first “wet cell battery” in 1800. Whilst

this produced a reliable, steady current, it was John F Daniel

that improved on its safety with the Daniel cell in 1836. Gustav

Plate is credited with the development of the first practical stor-

age lead-acid battery in 1859, but what is really astounding is

that 20 years before that, in 1839, William Robert Grove

developed the first fuel cell, producing electricity by combining

hydrogen and oxygen. 170 years later, our scientists are now

frantically attempting to make the fuel cell commercially viable!

We could go on and on, but for the purpose of this story and

which has huge significance, just one more fact, and that is the

establishment of the Electric Storage Battery Co in 1888.

In South Africa, our fledgling automotive industry relied

mainly on imports of automotive parts for the first 30 years of

the twentieth century, but in 1931 a Mr J F Jackson founded

The First National Battery Company in East London, South

Africa’s first battery manufacturer, and delivered its first ship-

ment of a dozen batteries to motor traders in East London,

Stutterheim and King William’s Town. From these humble be-

ginnings, First National Battery (FNB) has grown to become

the leading manufacturer and distributor of lead acid batteries

for use in automotive and industrial applications in South

Africa. A significant percentage of all the new motor

vehicles sold in this country are fitted with batteries manufac-

tured by FNB and the company is an original equipment

supplier to Mercedes-Benz, BMW, Toyota, Nissan, Mitsubishi,

Volkswagen and MAN. Another interesting fact is that the

majority of locally assembled vehicles exported from South

Africa are provided with batteries made by FNB, while the

company’s brands also dominate the replacement automotive

battery market. In the replacement market, FNB markets its

batteries under various brand names, whilst also providing bat-

teries for a variety of distributors’ house brands, with annual

production of some 2,2 million units.

The Exide brand, which has played a significant role in the

history of FNB, has a huge heritage, having been created by

the aforementioned Electric Storage Battery Co in 1900, and

finding its way to South Africa, eventually under the custodi-

anship of FNB, who inherited the brand with the merger of

Federale Volksbeleggings, Johannesburg Consolidated Invest-

ments, Wesco (the investment holding company of the Wessels

family) and the Nestadt family from Benoni. Interwoven in all

this was Raylite, Chloride, Oldham & Son Africa and Beacon

Batteries, which would require a Warren Buffet to fully under-

stand, but suffice to say the Exide brand has had many a day

in the sun in the past, and it is about to do a reprise, with FNB

restoring this iconic brand to its rightful place in this country.

Getting Exided AboutBatteriesFor history buffs, the electric battery provides a rich source of interest, and grist

to the mill of intrigue, false starts, contrasting claims and, naturally, amazing

technical progress, bringing hope that one day vehicles that are propelled electri-

cally will be as ubiquitous as those powered by the internal combustion engine.

The Internet is a rich source of fact and confusion around this subject.

The original premises of First National Battery at 6 Buxton Street,East London, in 1931. It survives today as a parts retailer.

Oldham & Son Africa had been producing batteries since 1949 in

a factory in Benoni. This is now the current premises of First Na-

tional Battery. The sign on the factory has been carefully preserved.

page 80

In February 2000 an announcement was made to the

effect that Ford Motor Company would be increasing

its investment in South Africa by taking a majority

shareholding in Samcor and by increasing its share-

holding in Ford Credit South Africa to 50%. Today

the Ford Motor Company, which is a now a 100% owner of

FMCSA, can look back on a long and exciting history of the

Ford brand in SA. It began in 1904 with the arrival of the first

Ford imported to SA. This was followed by the opening of the

first Ford agent, Arkell & Douglass, in Port Elizabeth a year

later as interest in the revolutionary ‘horseless’ carriage grew.

The port city was the site chosen for Ford’s first local factory

which was built at a cost of over one million rand in 1930. A

second was added in 1948 – the Neave plant – opened by

General Jan Smuts. A number of iconic cars have carried the

‘Ford oval’ branding over the years including the Ford Anglia

105E, launched in 1960 – and the Cortina which arrived two

years later. The popularity of the Cortina, spurred by its many

competition successes around the globe and in SA, persuaded

Ford to open a R9 million plant for the production of this

model in 1973. Production ceased only 10 years later after

more than 300 000 Cortinas were sold in SA. In 1964 Henry

Ford II opened the Struandale Engine Plant in South Africa

and four years later local production of the Ford Escort began,

taking full advantage of the new engine plant – as did the

Capri which landed in dealers’ showrooms in ‘69.

Since the turn of the century, FMCSA has launched

a number of models with particular relevance to SA, including

the new Ford Bantam, a South African designed half-ton

pickup and the Ford Focus – both built in South Africa.

Ford recently invested more than R 1.5 billion to expand op-

erations for the production of its next-generation compact

pickup truck and the Puma diesel engine in South Africa.

Ford’s commitment to the local market is underlined by its

focus on the upliftment and development of its workforce

through education and training activities. Also in place is an

Employee Assistance Programme and an HIV/AIDS Volun-

tary Counselling and Testing programme for all employees.

Today this programme is being used as a benchmark in other

countries. In January 2002, Ford was awarded the United

States Secretary of State’s Award for Corporate Excellence in

the multinational category. This award was established to

recognise the important role US businesses play abroad to ad-

vance ethical practices and democratic values and by display-

ing exemplary conduct in overseas operations. The company

also provides financial and physical support to a number of

worthy organisations which are involved in supporting hand-

icapped people, orphaned children, school feeding schemes

and people affected by HIV/AIDS. It continues to promote

active participation by all its employees in corporate citizen-

ship projects by providing 16 hours paid leave annually per

employee for this purpose.

One of FMCSA’s proudest achievements is win-

ning the top award for the best business so-

cial investment programme in the

American Chamber of Commerce's

Stars of Africa Awards pro-

gramme. This was for the

Mazda Wildlife Fund

which the company

established.

Focused on commitment.Dedicated to excellenceThe Ford Motor Company of Southern Africa (FMCSA) has been an active participantin the South African economy since 1923. It reinvested in SA in November 1994 afterdisinvesting in 1986 due to it's stance against apartheid. At this point it acquired 45%equity in Samcor from Anglo American Corporation and the employees trust.

Ford Motor Company

page 81

This was in 1927, and

BMW has been on the up

locally ever since. 1929

saw the first BMW mo-

torcycle come to South

Africa, and in 1975 BMW South Africa

was established after the full acquisition

of Praetor Motors in Rosslyn. The South

African plant was the first BMW assem-

bly plant to be established outside of

Germany. The Forsdicks dealer network,

established by John Forsdick, immedi-

ately recognised the potential for BMW’s

success in South Africa and became in-

volved in the brand. The McCarthy

Group, one of the oldest and most

renowned names in South African mo-

toring, were already 100% shareholders

in the Forsdicks name at this point, and

had been ever since the full acquisition

in 1957. Today, BMW Forsdicks has a

successful dealer network made up of

three branches, namely Sandton, Pine-

town and Tygervalley, some of the most

highly-rated dealerships in the BMW

South Africa stable. In the motoring in-

dustry, size does count, and according to

Neil Turner, dealer principal of BMW

Forsdicks Sandton, “The Pinetown deal-

ership covers an area of 4 000sq metres

under roof. Furthermore, the dealership

in Tygervalley was the first BMW deal-

ership in South Africa to complete the

Quality Management Programme.” The

Quality Management Programme, or

QMA, is a BMW initiative in which a

dealership is audited to ensure that it

matches up to ISO 14001 levels, thereby

ensuring that the dealership’s efficiency,

facilities and customer service is of the

highest standard. “It is an analysis of the

dealership’s processes to make the busi-

ness more customer friendly,” notes

Turner. All three dealerships are state-of-

the-art, fully equipped ones that cover

new and used sales and service under one

roof. The Sandton and Tygervalley deal-

erships even have off-site BMW panel

shops. Neil Turner says, “These are un-

like non dealer-owned BMW-approved

panel beaters in that our ones are specif-

ically for BMW customers, under the

control and management of the BMW

dealerships. We want to make our dealers

‘one-stop shops’ and give customers

peace of mind.” He adds that the Pine-

town dealership is close to getting its

own panel shop too, so that all three

dealers will be self-contained units for

BMW customers. “The Sandton dealer-

ship is coming close to moving to new,

bigger premises as well,” Turner adds. It

is clear that despite the brands success,

BMW Forsdicks is not content with rest-

ing on its laurels and wishes to not only

maintain its outstanding service and fa-

cilities, but to further improve them. “In

the coming years, BMW has two main

goals,” says Turner. “We want to enhance

the customer’s peace of mind through

these ‘one-stop BMW shops’ and we

want to focus on employment equity.”

Employment equity is a massively im-

portant area of South African business,

and it is encouraging to see a company

the likes of BMW Forsdicks placing a lot

of emphasis on it. In conclusion, Turner

closes with a quote from the father of the

high-volume motoring industry, and one

that sums up the essence of Forsdicks’

business philosophy:

“Nobody can make you serve cus-

tomers well – that’s because great

service is a choice.” - Henry Ford

A head above the rest

BMW is a brand that can be likened to a staple food in the South African automotive industry. The brand is aninstitution the world over, and South Africa is no different. Incidentally though, BMW’s car history in SouthAfrica does not run as deep as some of the German marque’s other local achievements. Given the high-soaringlevel of the brand’s appeal though, it is appropriate that the first BMW in South Africa (or more accurately,BMW-powered means of transport), was in fact an aeroplane.

page 82

Trevor Turner

Neil Turner

The act was strange indeed. No one before this day

knew what was happening behind the boarded-

up windows of the old warehouse, yet within

days of registering the General Motors Corpora-

tion boasted with a 300 strong workforce, previ-

ously unknown automation equipment and the capacity for

45 brand new cars daily. And this was only the start. GM’s

introduction to South Africa was unique, because when the GM

pioneer Nathaniel Tuxbury set foot on local soil the “streets” of

Port Elizabeth, Cape Town and even Transvaal was crawling

with Buick, Cadillac, Oldsmobile and Chevrolet models. Even

bigwigs such as General Jan Smuts could be seen behind the

wheel of his favoured Cadillac, the vehicle of choice for heads

of state. The reason? GM’s reputation preceded it to such an ex-

tent that independent dealers from up north to far south started

importing and trading in “cars and trucks from the United

States that never say die”.

The reputation led to a growing market and by the time

Tuxbury and his team set up an official channel for GM vehi-

cles, dealers was already very vocal in their complaints. With

Chevrolet leading the charge, dealers were complaining that

their stock levels could not keep up with sales demand and that

GM would not be able to satisfy their hunger with a mere 45

cars per day. The deep pool of demand for GM-products re-

mained for much of the next five decades, mirroring the situa-

tion at home for GM, then already the world’s largest and most

influential vehicle manufacturer. In this era, and up until GM

decided to leave the country in the height of apartheid in the

eighties, GM and its dealers commanded more than a third of

the local market. General Motor’s absence in the decade to the

new democracy did little to dampen the taste for its cars, which

at this stage was as much a part of South African culture as

braaivleis and sunny skies. Dealers grouped under the newly

formed Delta Motor Corporation and GM products such as

Opel and Isuzu continued to form the basis for the company’s

ever expanding dealer footprint. In 1997, soon after the dawn

of a new democracy, GM returned with a 49% stake to find, in

much the same way as Tuxbury did in the twenties, that GM

products was alive and well in South Africa. In this year, the

company’s dealers celebrated by announcing that the Isuzu KB-

range is the biggest selling bakkie in the country and by the next

year, with the introduction of the Opel Corsa Utility, GM also

dominated the half-ton segment in the bakkie-loving SA. Busi-

ness was booming and in 2003 GM completed a transaction

that gave it full ownership of the local operations. To mark the

occasion Chevrolet, one of the biggest automotive brands in the

world and one of the most well known brands in South Africa,

made its return. Soon afterwards, in tune with the new look

dealer-network and growing demand for the full offering of

GM-products, the company announced South Africa would

become the manufacturing base for the imposing Hummer H3,

which it would build on the same ground as it started in the

twenties, yet this time it would be exported across the world.

Cadillac soon followed suit and within a decade of returning,

dealers were able to offer, as they did even prior to GM’s official

presence in 1926, a full range of GM worldwide products.

A lot has changed since the days when GM converted a wool

warehouse to satisfy local demand, but, now that The General

is again one of the biggest vehicle suppliers in South Africa,

much have thankfully remained the same.

As much a part of SA culture asBraaivleis and Sunny SkiesSomewhere in the dusty annals of the South African government lies a strange but colourful inscription. In 1926 someoneregistered an automotive company in an abandoned wool and hide warehouse in downtown Port Elizabeth, very close tothe present day site.

General Motors’ classic of yesteryear. The V16-engined CadillacSports Phaeton from the 1930s.

The Cruze is the first of a new family of Chevrolet ‘global’ cars. It was launched in South Africa in 2009.

page 83

page 84

Harley-Davidson head office is very particular

about who sells their brand, and dictates exactly

how the dealerships should be configured, what

shopfitting is required, and what products will be

sold. “Everything’s been approved already and we’re now a fully-

fledged Harley-Davidson and Buell dealership and service cen-

tre, known as Harley-Davidson Durban.” Durban is home to

the oldest Harley club in the country – the Harley-Davidson

Club of South Africa was founded in 1967 and is still going

strong. For most of the club’s 42-year history, however, there

was no official dealer in the province. A num-

ber of people imported the motorcycles un-

officially, but it was only in the mid 1990s

that the American manufacturer took

proper control of the marketing and sale of

their products here. Despite this, the

iconic American motorcycles have always

been extremely popular in KwaZulu-Natal,

and Rob estimates that there are around

2000 modern Harleys in and around

Durban and Pietermaritzburg, with

numerous vintage machines adding

to the total. Harley-Davidson sells

lifestyles as well as motorcycles, and

Rob is working at merging the two

local Harley Owners Group

(HOG) chapters for Gateway and

1000 Hills into one, known as

HOG Durban Chapter. He’s al-

ready taken steps to attract cus-

tomers to his revitalised outlet by

expanding his premises to include

a pre-owned Harley section – there

were previously no trade-ins

accepted or second-hand bikes sold. “We’ve also opened a tyre

fitment centre and I now have a technician at work on Saturdays

to help the guys with minor maintenance issues – check nuts

and bolts, tighten loose mirrors and so on. It’s a free service to

the customer so it costs us money, but it’s a benefit that’s exclu-

sive to Harley riders.” Rob says that one thing he hasn’t done

is subscribe to the economic recession. “That’s a no-go, and

we’re doing well, with sales picking up every month.”

One of the shrewdest steps taken by the Harley-Davidson fac-

tory over the last few years was to make accessibility to their

products much more affordable. “There’s a good spread of

prices,” says Rob, “and the entry level machines are a lot more

attainable than they were. For somebody looking for a 900cc

machine we can supply a Sportster 883 brand new for around

R85 000, which is very competitive. Our top-end products go

beyond the opposition though, with a top-of-the-range 1800cc

machine coming in at R449 000.”

So what does the

future hold for

Harley-Davidson

Durban? ”Well, we

employ 14 people

already, but plan to

increase this in the

near future. We’re

also looking at mov-

ing down Fields Hill

to be more central.”

Ann Saunders and ahappy customer

Support and Service forDurban’s Harley Owners

HARLEY-DAVIDSON DURBAN

Rob Saunders has spent almost half of his 30-year motorcycling career on

Harley-Davidson machinery, so it made sense for the Durban businessman to take

over the local dealership when given the opportunity to do so earlier this year.

“This shop, then called Harley-Davidson 1000 Hills, opened as a sister outlet to Brian Wegerle’s Harley showroom at

Gateway about three and a half years ago, and I was involved as a minority shareholder. When Brian died in ‘07

I left the business – I wanted to buy his share but it wasn’t for sale at the time. Then, earlier this year, I spoke to Harley’s

representatives again. They offered me an exclusive dealership opportunity in KwaZulu-Natal – the

Gateway shop had closed down – and we ended up buying this shop outright.”

Rob Saunders and staff

Founded by Fritz Henkel in Germany in 1867,

Henkel, with headquarters in Dusseldorf, prides it-

self on products that make people’s lives easier, bet-

ter and more beautiful. The company’s advertising

slogan is “A brand like a friend” and when you con-

sider the diversity of brands, this message rings true. From po-

tato crisp packaging to aerospace technology, its wide variety of

adhesive solutions for both consumers and industry – with

which the brand is most commonly associated in South Africa

– makes Henkel as ubiquitous as the hadeda or the minibus

taxi. Henkel’s products, with famous brand names like Loctite,

Teroson, Pritt, Persil, Dial and Schwarzkopf, are part of the

company’s three operating business divisions: laundry and home

care, cosmetics and toiletries, and adhesive technologies.

The company’s success started with a universal detergent in the

laundry and home care business sector. Today, the organisation

remains under the control of the Henkel family and continues

to introduce innovative new products and solutions. One of

these, Teroson, already well-established in Europe, will be in-

troduced in South Africa in 2010. Teroson is an internationally

recognised specialist in bonding, sealing and corrosion protec-

tion of metals and other materials, particularly in the automo-

tive industry. A large part of the company’s business in South

Africa is in the automotive sector, where the biggest adhesives

business in the world offers a variety of sealing solutions to both

the original equipment manufacturers and the aftermarket. The

product range includes Loctite, a leading specialist in engineer-

ing adhesives worldwide and internationally successful with DIY

adhesives, superglues, epoxy adhesives and automotive products.

Henkel is a preferred partner to all the major OEMs in the

South African automotive sector, both in the manufacturing of

vehicles (eg seam sealing, panel bonding, glass fitment, sound

deadening and noise reduction, underbody sealing, phosphating

and e-coating) and in the aftermarket. The company’s current

focus is on the aftermarket business and the body repair and

panelbeating sector. Vehicle owners are becoming increasingly

aware of the benefits of using the same technologies in the repair

of their vehicles that went into their original production by the

manufacturer. A manufacturing plant in Alberton in Gauteng

supplies OEM customers and a there are plans to bring in a new

product range manufactured in Heidelberg in Germany in con-

sumable-pack sizes (as opposed to bulk for OEMs).

Henkel is a former technical partner of the world champi-

onship-winning McLaren Formula One team and currently en-

joys a technical partnership with Porsche. Loctite and Teroson

technologies are used in the production of Porsche cars. These

products are used in both the body and mechanical areas and

replace traditional methods of, for example, gasketing and

thread lockers. A technical partnership also exists with the or-

ganisers of the Dakar Rally and the company is the official sup-

plier of Loctite and Pattex branded products.

Henkel South Africa has a strong social investment programme

and involves itself in the well-being and upliftment of

the community in which it operates. The com-

pany has built and funds a home for AIDS

orphans, called Tamaho, in the Natal-

spruit/ Khatlehong area.

Henkel – a Brand like a FriendHenkel is a trusted name around the world. The company produces a variety of products that generations of consumers have come to rely on. Every day millions of customers in 125 countriesplace their trust in Henkel brands and solutions. There are innovative products for home care,DIY enthusiasts and craftsmen, body care and cosmetics and superior technologies for industriessuch as transportation, electronics, packaging, durable and consumer goods.

page 85

page 86

What is today known as Imperial Holdings, a mono-

lithic, multinational organisation, was born of

humble beginnings. The company’s doors opened

for business in 1946 under the banner of Barney’s Super Service

station, a partnership between Percy Abelkop and Barney Lurie.

In 1951 Abelkop bought Lurie’s shares, and four years later the

company was offered sub dealerships to sell Pontiac and

Vauxhall vehicles, followed by Chrysler in 1962. The Imperial

name was adopted in 1964, and March 1971 saw Abelkop hire

Bill Lynch, Imperial’s future CEO. May of the same year was

when Imperial made the switch from Chrysler to Toyota, after

which the company really started to take off. In 1975 Imperial

Truck Hire was added to the group’s portfolio, joined four years

later by Imperial Car Rental, which is today one of the leading

car rental enterprises in the country and operates under the

Europcar name. Following this rich history, today Imperial

Holdings is a brand so recognised that surveys have indicated

such confidence in the name that it is no longer viewed as a

brand, but as a seal of quality. Testament to this is the massive

rebranding exercise Imperial has launched, one in which the

new Imperial brand truly will act as a seal of quality. Imperial

has always been a company with an entrepreneurial flair, and

its initial forays into car dealerships were so successful that the

business now spans numerous industries, from tourism to

logistics, car rental to financial services, and auto retail and

distribution to dealerships.

With this growth, and numerous acquisitions, came the chal-

lenges of multiple, fragmented and diverse brands and busi-

nesses, compounded with a large staff complement that didn’t

fully comprehend the scope of products and services offered by

the group. Imperial is the sum of many businesses, and a

binding brand was needed to unite the group with one focused

objective – building one brand. “The brand had grown to a

great extent,” notes Philip Michaux, CEO of Imperial Holding’s

Motor Division. “In total we have close to three hundred

dealerships worldwide.” The Imperial name has always stood

for quality, so rallying around one brand name offered oppor-

tunities to unite businesses and create linkages to build on the

positive associations of the Imperial brand. “We definitely view

it as a seal of quality,” states Clive Masinga, Executive: Imperial

Holdings. The new brand mark took eight months to create, a

process that involved intensive research, brand strategy

positioning, brand architecture and design. “It’s not an

overnight exercise,” comments Masinga. The new mark, called

the Imperial Flair, represents Imperial’s entrepreneurial

dynamism. The symbol is seen to be in constant motion,

symbolising the bridging of Imperial’s past with its future.

“It’s a sign of confidence,” adds Michaux. “You’ve got to have

confidence in what you offer your customers.” Fast moving,

forward thinking; that is Imperial Holding’s slogan, and one

that is appropriate to a company that prides itself on its entre-

preneurial spirit. “We’re not weighed down by too much

bureaucracy,” Michaux says. Imperial is able to deal with the

fluidity so characteristic of business today, and it is encouraging

that a company with as rich a history as Imperial Holdings is

embracing the future and continuing to move with the times.

“It’s important,” concludes Michaux, “we’re a long term-player

in the motoring industry, and we’re here for the long haul.”

The Royal SealImperial – majestic, grand, royal; all synonymous with each other, and also the name behind the biggest motor

dealership network in South Africa.

Kapci was established in

1985 as a private com-

pany devoted to the pro-

duction of car refinishes.

In 1999 the company ex-

panded its horizons and began produc-

ing other paint products for parallel

markets. Initially, Kapci’s focus was on

the production of Nitrocellulose car re-

finishing products. However, in 1996 it

introduced the extremely successful two-

component Acrylic Polyurethane colour

mixing system for this application.

Today Kapci produces a wide range of

Acrylics, basecoats, clear coats, harden-

ers, fillers, thinners, putties and primers

to suit all spraying conditions. In addi-

tion to the unique Kapci Car Refinish

system, Kapci also produces a large range

of decorative paints and wood finishes.

Kapci Coatings operates a paint produc-

tion plant in Port Said. Its main opera-

tion is blending and mixing of raw

materials into several types of paints,

coatings and wood finish products. The

main raw materials are solvents (butyl ac-

etate, ethyl acetate, toluene), pigments,

binders and additives. Quality control is

an essential and very important function

and at the Kapci plant it is performed for

every batch in production, and strict

specifications are met at each and every

stage of the process. The recent award of

the international ISO9001 and

ISO14001 certification is a testament to

the high standards set by the Kapci pro-

duction facilities. In addition, Kapci

Coatings in Egypt have been accredited

by TUV to carry out testing to

ISO17025 standards.

A considerable portion of Kapci’s pro-

duction is exported to South Africa and

its local joint venture partner, Kapci

Coatings South Africa. This company

operates as the sole distributor for Kapci

refinish products in the southern African

region and has branches in Gauteng, the

Cape and KwaZulu-Natal. It has also es-

tablished a network of 96 sub-distribu-

tors covering the southern African region

including Malawi, Namibia, Botswana,

Mozambique, Zimbabwe, Zambia and

Swaziland. Since its establishment here

in 2003, significant interest has been

shown in the brand for the following rea-

sons:

• The extremely high quality of the

product in terms of coverage and

finish

• The very competitive pricing struc-

ture for a product of this quality

• The diversity of refinish products

available within the range, to suit

every requirement in this market.

Local body shops already converted to

the Kapci brand report that not only has

their paint bill been considerably re-

duced, but the excellent coverage and

drying of the paint has speeded up the

daily throughput in their workshops - a

key benefit in itself. Added to this, the

excellent colour support software and

marketing aids produced by Kapci have

minimised colour searches and helped

eliminate colour problems.

The company places a significant em-

phasis on training and is in the process

of commissioning a fully-fledged train-

ing centre. Here the Kapci team of tech-

nical consultants will continue to ensure

that not only are the distributor staff

competent in terms of the application

processes and properties of the paint, but

that this knowledge is passed on to body

shop personnel, ensuring that the prod-

uct lives up to it’s potential.

Backing its claims, Kapci offers car own-

ers a lifetime warranty on a repair carried

out with its products. The warranty gives

the assurance that the paint repair will

not crack, peel, fade or otherwise degen-

erate - important considerations when

one considers the high cost of motor ve-

hicles today.

To the World with Perfection Egyptian-based Kapci Coatings is the largest company producing automotive refinishing products in the Middle

East. Currently employing around 1350 people and generating revenues of more than $100 million, Kapci boasts

a market that includes Europe, South America, Asia and Africa.

Nizam Ally, Chairman of the board of Kapci Coatings,

page 87

page 88

Early DaysThe roots date back to two small businesses – the Coventry and

Birmingham Motor and Cycle Company in Durban and Atkin-

son’s Motor Garage in Bloemfontein. Both were established in

1910 and entered the burgeoning motor car industry during

the Great War. But it was Justin McCarthy who joined the

Coventry and Birmingham Motor and Cycle Company as a

young accounts clerk that saw the company seal franchises and

list on the London and Johannesburg Stock Exchanges in 1936.

Changing Times

South Africa revelled in an economic upswing after WWII and,

anticipating the changing motor scene, Justin McCarthy

approached Atkinson-Oates in Bloemfontein and his Durban

rival, Forsdicks, to launch Motor Assemblies, which started

assembling Chrysler vehicles in 1948.

A New EraJustin retired in 1957, remaining as chairman, while his younger

brother Pat assumed responsibilities as CEO. Justin’s son, Brian,

entered the business after completing his studies in the US and

in 1963, when Pat retired, the 39-year-old Brian was appointed

to the top position. By this time Toyota South Africa was the

largest single customer for Motor Assemblies, and in 1964 Brian

sold this entity to Dr Albert Wessels, cementing the relationship

between McCarthy and Toyota that still prevails today.

Unprecedented GrowthThe company – now called McCarthy Group Limited – began

a journey of unprecedented growth in 1975. Sales soared from

R44-m in 1972 to R661-m a decade later, with total assets of

R30-m and a staff complement of 5 800. During the 1980s and

early 90s, McCarthy diversified and concluded a merger with

Prefcor Holdings Limited in 1992 to form McCarthy Retail

Limited. This entity became a major player in the mass market,

while McCarthy’s motor division, representing all the major

marques, continued to deliver sterling results. During 2000 and

2001, under the capable leadership of CEO Brand Pretorius,

McCarthy underwent extensive capital restructuring, disposing

of its non-motor interests and returning to a single-minded

focus on the core motor and allied financial services business.

Under Pretorius’s initiative, McCarthy became a wholly-owned

subsidiary of the Bidvest Group in 2004. Record trading

figures, sterling financial results, and rapid growth followed.

Today and TomorrowToday McCarthy has a dealer network of 120 outlets, represents

close on 40 different passenger car, commercial vehicle and

heavy equipment marques, and sold 75 115 units in the most

recent fiscal, despite extremely tough trading conditions. As

McCarthy approaches its centenary year in 2010, its history is

a reflection of the dedication and commitment of men and

women whose efforts have created a legend in the South African

motor industry.

“None of these achievements would have been possiblewithout the support of our valued customers, our principals whose brands we represent, and the efficient,driven and principled McCarthy team members, who continue to embody the McCarthy value system ofhonesty, integrity, ethical behaviour, and total dedication to customer service,” says Pretorius.

McCarthy – a major player witha proud historyMcCarthy Limited has grown over ten decades to become one of the leading motor retail organisations

in South Africa. Its journey passes through two World Wars and several economic highs and lows.

Four of the close to forty marques represented by McCarthy

By 1942, some of MIEU’s greatest achievements

were three weeks annual leave for its members,

together with tool and overall allowances and a

mortality scheme which provided for a £50 grant

to the next of kin (later raised to £250).

MIEU also assisted with the formation of the Motor Industry

Staff Association (MISA) in 1948 in Bloemfontein. In 2003

the two trade unions merged to strengthen their bargaining

power and to ensure better service, benefits, wages and

working conditions for all staff.

Today MISA represents 29 000 members and plays a vital role

in the Bargaining Council structure not only on behalf of its

own members but also on behalf of non-union employees.

Its members include qualified artisans, learners/apprentices,

sales and administrative staff, and range from dealer principals

to junior clerks.

For Dana De Villiers, CEO of MISA, the focus - in terms of

benefits and service delivery - is always on the members.

He says: “The MISA Benefit Fund and Funeral Fund is a

benefit that automatically covers all members, with the im-

portant difference that payments are made directly to the next

of kin upon the death of a member. The MISA benefits do

not become assets in the deceased person's estate and thus go

a long way to help families when they need it most. More than

R60 million has been paid to members and /or dependants

since 1985.

“We also have labour law practitioners who provide free legal

advice and, if necessary, legal defence. We have an enviable

success rate, thanks to MISA’s approach that contributes to

speedy resolution of disputes.”

However, De Villiers warns that many of the benefits that have

been negotiated since 1929 could be lost unless the motor re-

tail sector addresses the issues that threaten the survival of

motor retailers. “There is a big gap between the brand-build-

ing expectations of manufacturers and the realities of selling

and servicing new and old vehicles in South Africa,” he

stresses. “Based on a-million-car-a-year predictions, the dealers

have been lumbered with Taj Mahal-type dealerships that are

not financially viable, our franchised service centres are priced

and geared to fix new cars despite the fact that most cars on

our roads are five years or older, we lose many customers to

DIY-repairs and 'informal repair centres' because it is becom-

ing too expensive for the man-in-the-street to service vehicles

at dealerships.

"The decision-makers in the industry must remember it is nei-

ther the building nor the logo outside that sells and services

the vehicles, keeps customer satisfaction at an acceptable level

and builds loyalty. It is the MISA members and other employ-

ees who create the relationships with the customers and con-

tribute to the generation of economic value."

De Villiers says the 2009 recession caught the motoring retail

industry at its most fragmented. “Unless we unite behind

pragmatic standards in terms of branding, training and serv-

icing, the industry stands to lose most of the benefits we

fought for since 1929.

“If we do not address these issues, the next decade could very

well see a local motoring retail industry selling and servicing

fewer cars, better public transport in the cities and a stronger

than ever used-car market,” predicts De Villiers.

He adds; “MISA has a proud track record of protecting and

advancing the interest of our mem-

bers, service of the highest order and

benefits offering value for money.

We will continue to pool the talent

and skills in our association to ensure

that MISA remains the trade union

of choice for all employees and their

employers."

MISA: The Trade Unionof Choice In 1929 the Witwatersrand and Pretoria Motor Industry Employees’

Union was started by a group of employees from humble beginnings.

Soon, trade unions in other regions were formed and in 1940 they amal-

gamated into the Motor Industry Employees' Union (MIEU) of SA.

Dana De Villiers,CEO of MISA,

page 89

Permatex offers a wide range of adhesives, sealants,

gasket makers, hand cleaners, lubricants, appear-

ance products, specialty repair kits, and additives,

with now over 350 products making over 1 000

SKUs, providing market-specific formulations and

application methods for a variety of industries, including au-

tomotive, marine, motorcycle, heavy duty, and off highway.

The company is constantly working with automakers, parts

suppliers, service parts groups, and other aftermarket compa-

nies to develop the next generation of service technology. With

a pedigree like this, it would not be an overstatement to call

Permatex the “Rolls-Royce” of car care products.

It all began in 1909 when Constant A Benoit Sr, the founder

of the company, designed a shellac to bond bicycle tyres to

their rims. In 1915, fate provided an impetus to growth when

Mr Benoit attended a 24 hour endurance race at the

Sheepshead Bay track near his Brooklyn, New York laboratory.

Being of a scientific bent, he observed that many of the cars

were forced to make frequent pit stops to replace blown cylin-

der head gaskets. The mechanic for Ralph DePalma’s car was

at his wits end when the car blew its head gasket for the fourth

time, and Mr Benoit applied some of his experimental gasket

cement and the DePalma car drove the rest of the race without

any further gasket problems. On that day, Permatex entered

the automotive maintenance chemicals business, and the rest

is history. From its Hartford headquarters, Permatex directs a

growing global automotive aftermarket enterprise serving

North America, the Pacific Rim, South America, Europe, and

Africa. Permatex manufacturing plants, distribution centres

and offices are strategically located to achieve growth goals and

effectively service customers. TopClass Automotive is part of

this global effort and is looking forward to putting Permatex

in its rightful place on the South African automotive land-

scape. If you are a professional automotive technician, or part

of a motorsport team, a performance buff, or simply a do-it-

yourself fanatic, contact TopClass Automotive for more infor-

mation on the comprehensive range of superb Permatex

products. You won’t be sorry.

TOPCLASS TOPICS

Permatex - 100 Years of Innovation andLeadership in Chemical Tools

2009 marks Permatex’s 100th year in business. Since 1909, Permatex has been the preferred choice in the USA for chemicaltools for motorsports teams, professional automotive technicians,performance buffs, and general automotive do-it-yourselfers. The world is also catching on to the wonderful world of Perma-tex, and the company now operates in the United States,Canada, Mexico, the UK, and exports products to more than 85countries around the world. South Africa is one of those fortunate 85 countries, with Permatex products being marketedby Timken SA and distributed by TopClass Automotive.

page 90

Richard Pinnard - Mr. P - we kid you not is the official mas-cot for Permatex product. Here he is seen at the Auto-

mechanika South Africa show held in March 2009, flankedby admiring Timken ladies.

TopClass MD, Richard Pinnard

Schaeffler Group Automotive supplies its components

to almost every vehicle manufacturer across the

world. The company makes significant investments

in research and development to address future chal-

lenges. The group-wide advanced quality manage-

ment system ensures that the highest quality standards are met.

The South African company produces and distributes passenger

car clutches to international standards from its modern facilities

in Port Elizabeth for both local and foreign motor car manu-

facturers. As an OE supplier, Schaeffler South Africa is also a

major player in the supply of product to the Automotive After-

market through an approved distribution network. In addition,

the local operation assembles FAG wheel bearing kits and pro-

vides LuK commercial vehicle clutches. The local range is sup-

plemented by product imported from numerous Schaeffler

plants worldwide and includes single bearings for automotive

applications and LuK tractor clutches. The marketing of pas-

senger car, commercial vehicle and tractor products across the

LuK, INA and FAG brands is handled by the Automotive

Aftermarket Head Office in Johannesburg, with customer serv-

ice being supported by Area Managers in Natal, the Free State,

Gauteng, and the Western Cape. In addition, a toll-free hotline

(0800 412 106) is maintained during office hours, where any

technical issues can be quickly resolved by highly-qualified staff.

The history of Schaeffler South Africa goes back to 1963,

when a clutch manufacturing company

was founded in which Repco

of Australia and the In-

dustrial Development

Corporation each had

an interest of 50%.

In 1987 LuK of Ger-

many purchased a

51% interest in the

South African com-

pany, with the IDC

retaining 49% of the

shares. Five years

later, in 1992, LuK

bought out the IDC

interest and in that

same year the heavy-

duty clutch plant in Wadeville was acquired. Now LuK South

Africa, the company started manufacturing clutch facings in

1998, and it also acquired it first OE export contract – clutch

facings for the German car manufacturer Audi. The ever-in-

creasing demand for LuK South Africa’s products necessitated

expansion and as a result an 8 000 square metre building was

purchased in Port Elizabeth in 2000. Diaphragm manufacture

started in 2004. In 2007 the INA/FAG warehouse was also

moved to the LuK site in Port Elizabeth. Following the integra-

tion of most of the worldwide operations of the Schaeffler

Group into one legal unit per country in 2007, LuK South

Africa became Schaeffler South Africa (Pty) Limited in 2008.

The LuK warehouse in Edenvale, Gauteng, was sold and the

Automotive Aftermarket Division was relocated to its present

premises in End Street in Johannesburg. The automotive after-

market requires a constantly evolving product range due to the

ever increasing number of models in the South African market.

In addition the increasing complexity of modern vehicles re-

quires ongoing revision of how customers, from approved dis-

tributors through to the end user are adequately serviced.

The Automotive Aftermarket Division of Schaeffler South

Africa has increased its capacity in terms of providing technical,

product management and administrative assistance to cater for

the growing demand for better information, access to a broader

range of products and faster turnaround time.

A history of exceptional service to the South African auto industry

Schaeffler South Africa is the local operation of the giant Schaeffler Group of Germany, which has a world-wide rep-

resentation in the automotive, industrial and aerospace sectors with its three strong brands, LuK, INA and FAG.

The Schaeffler Group produces products as diverse as CVT (continuously variable transmissions), DSG gearboxes,

bearings for jet engines and even minute bearings for dentists’ drills.

Schaeffler Group

page 91

Shatterprufe is part of the PG Group, South Africa’s

leading integrated glass business. Shatterprufe was

established in Port Elizabeth in 1935 to supply the

motor trade and in the same year Pilkington

launched Armourplate Glass, also in Port Elizabeth,

and these two iconic companies eventually found their way into

the PG fold. The PG Group divisions consist of: PFG – Man-

ufacturer of float and patterned glass; Shatterprufe – Manufac-

turer of automotive glass; Glass South Africa – Distribution of

building and automotive glass; PG Glass – retailer of building

and automotive glass with a network of installers; Primador –

Door and window manufacturer; Llumar – laminate film dis-

tributor. Shatterprufe acquired Widney, a manufacturer of slid-

ing windows for vehicles in 1996. Shatterprufe has facilities in

Garankuwa, Neave Township (Port Elizabeth), Struandale (Port

Elizabeth), and a Durban Assembly Facility. In addition, the

Widney facility focuses on transport products for bus and rail,

as well as supplying “slider” products for OEM vehicles. Shat-

terprufe manufactures Laminated and Tempered Automotive

glass for passenger vehicles, light, medium and heavy commer-

cials as well as buses and trains, relying on an advanced logistics

and distribution network that carries out shipments of in excess

of 12000pcs of glass per day - globally. Shatterprufe supplies all

seven South African OEMs (BMW, Ford, GM, Mercedes, Nis-

san/Renault, Toyota & VW) as well as all the local bus manu-

facturers including MAN and Marcopolo, and exports bus

products to companies in the United Kingdom and supplies ve-

hicle glass repair and replacement companies in Europe. Shat-

terprufe also exports to the USA, South America, the Far East,

Australia, rest of Africa and the Middle East. As a supplier to

OEMs, Shatterprufe is required to either have a global footprint

or a significant technical partnership with a global player. Shat-

terprufe currently has global technical agreements in place,

which will be further enhanced in the years to come. Shatter-

prufe has an exceptional track record in the automotive indus-

try, being one of a few companies that have supplied OEMs

from inception in South Africa. Shatterprufe’s strengths include

the ability to produce low volume niche products, a large range

of auto glass, quality standards equal to the best in the world,

and self-reliance on glass supply.

The Prufe of the PuddingWhat makes a great company? Taking this a little further, what makes a great product? These questions have been

asked many times, and there are many answers, some truer than others. What is unquestionable is that time and

history play major roles, and what is even more unquestionable is that achievement above the norm defines a com-

pany and its products. Ronnie and Bertie Lubner, in their foreword to the PG Group’s coffee table edition titled

“PGSI 1897 to 1997 – One Hundred Years”, celebrating a centenary of endeavour; refer to the history of PG as

“100 years of entrepreneurial spirit, fortitude and resolve”. The proof of the pudding is in this fabled history and

together with the PG Group’s accomplishments from 1897 to 2009 they provide a glimpse of this greatness.

page 92

Shatterprufe maintains the highest global automotive quality standards through a unique combination of automation and

personal attention

Global Profile

Tenneco is one of the world’s largest designers, manufacturers and distributorsof automotive ride control and emissioncontrol products for vehicle manufactur-ers and the aftermarket under its Monroe®, Walker®, Gillet® and Clevite®Elastomer brand names. The companysupplies the passenger car, commercialvehicle and industrial vehicle marketsand is also active in the two-wheeler market. Tenneco's top ten customers include GM, Ford, VW, Daimler-Chrysler, PSA Peugeot Citroen, ToyotaMotor Company, Nissan Motor Com-pany and BMW. The company benefitsfrom a balanced customer portfolio anda diverse geographical footprint that enables it to provide its customers withconsistent quality, design, engineering,program management, manufacturingand assembly services wherever they arein the world.

Emission control products include complete exhaust systems, fabricatedmanifolds, manifold-converter modules,catalytic converters, mufflers and resonators, diesel particulate filter systems, NOx abatement systems, exhaust heat exchangers, exhaust isolatorsand hanging systems.

Ride control and Elastomer products include shocks and struts, computerisedelectronic suspension, anti-roll systems,suspension modules, suspension bush-ings, coil, air and leaf springs, torquerods, engine and body mounts, arms/bars/links, cabin dampers and seat

dampers. Tenneco provides coverage of the majority of its emission and ridecontrol products for aftermarket appli-cations.

South AfricanProfile

South Africa was introduced to the worldof Tenneco when they acquired GilletExhausts in 1994, and a controlling in-

terest in Armstrong Hydraulics in 1997creating a marriage between the world'sand SA's leading manufacturers of rideand emission control products. Gillet Exhausts South Africa are mainly exportdriven. Domestically Tenneco deals withall of the major motor manufacturers andsupplies shock absorbers for the majorityof the vehicles that are manufactured locally, due in no small measure to Tenneco’s advanced technology designsand wide acceptance, together with ex-tensive quality accreditations. The Ten-neco Emission Control facility provides

catalitic converters , diesel particulate fil-ters (DPF) for the major OEMs outsideSouth Africa.

Tenneco has leveraged off its OEM baseand international sourcing capabilities byproffering the most extensive and widestrange available in South Africa, and offering an extensive three year unlimitedmileage warranty for most Monroeranges and an exclusive five year or 100000 km warranty on its Reflex range.With Monroe being the world leader inride control technology and the biggestselling brand worldwide, Monroe RSAhas seen huge market share growth during the recent difficult economic period, on the back of high qualityshocks which boast the lowest return ratein South Africa.

The future is bright for Tenneco South Africa, as with the benefit ofISO/TS16949:2002, ISO 14001:2004,OHSAS18001:2007, and Ford Q1 accreditations received from highly acclaimed international institutions, andthe move from the MIDP and APDPemphasising value added, Tenneco is wellplaced to take advantage of the new dynamics in automotive component supply.

page 93

Tenneco on Top of the World

page 94

The story of The Timken Company started in 1898 when

Henry Timken, a 19th century innovator in carriage

manufacturing, patented the tapered roller bearing. The

following year, he formed a company to produce his innovation.

His sons, HH Timken and WR Timken, moved the company

to Canton in Ohio in 1901, where it remains today. In 1932,

Michael Bruce Urquhart Dewar, the then managing director of

the British Timken company pushed the business into South

Africa with the creation of British Timken SA in Johannesburg.

The company was successful in developing a market, especially

for railroad bearings. South African Railways specified Timken

bearings when it made a large order for new locomotives and

passenger cars. To help fulfil such orders, British Timken estab-

lished a plant in Benoni in 1951. In 1958 British Timken hired

Kendall Brooke, a young South African engineer who graduated

to MD and under his guidance the local facility was renamed

Timken South Africa (Pty) Ltd following the consolidation of

British Timken and The Timken Company in the US. In 1968

the company committed to building a new factory in Benoni to

produce AP Bearings and in the 1970s, with the new plant on

line, Brooke succeeded in extending his into Zimbabwe, Zambia

and Mozambique. Timken’s application engineers began work-

ing closely with the designers at Sigma Motor Corporation, and

in 1981, Timken bearings were specified for the new Mazda

323s. In 1982, Timken South Africa celebrated the manufacture

of its 500 000th AP bearing. 1986 saw the start of a successful

partnership between Timken South Africa and the South African

Motor Corporation (SAMCOR) with the introduction of the

Ford Laser for which Timken bearings were specified. Although

local manufacture of automotive sized bearings ceased in 1998

the Benoni site continued to play an important role with the

opening of a Railroad Bearing Remanufacturing facility. In the

wake of Danie Coetser’s appointment as MD of Timken SA in

2001 came an innovation by the local management team that

resulted in small mobile remanufacturing factories being devel-

oped. The rail operation in southern Africa was revolutionised

with the ability to repair bearings on the customer’s doorstep.

In 2005, Timken South Africa announced its groundbreaking

Black Economic Empowerment deal - the first of its kind in the

industry. Timken Bearing Services South Africa (Pty) Ltd was

formed as a subsidiary of Timken South Africa. TBSSA incor-

porates the Southern African rail division of Timken South

Africa. Bokomoso Investments led by Zandile Jakavula, owns a

26% stake in the company.

This year marked the 77th anniversary of Timken in South

Africa. This great achievement can be attributed to the joint

efforts of the great visionaries that have led the company and

the employees that live this vision daily. The company has wit-

nessed many changes in the socio-political environment of

South Africa and has worked through the challenging eco-

nomic environment. This has resulted in very specific focus.

Although the economic environment might not improve for

another year or so – Timken is in a strong position to take part

in any economic improvement.

One thing that hasn’t changed however is that Timken has and

will continue to manufacture and supply bearings of the high-

est quality to both the local and export markets and provide

outstanding customer service and technical support.

Timken Celebrates 77 Years in South AfricaFrom its humble beginnings in 1932, Timken South Africa has grown and changed along with both South Africa andwith The Timken Company. The result is a business culture based on a shared sense of purpose built around pride ofproduct, led today by Chairman Tim Timken and President and CEO Jim Griffith. There is an identity embodied in theTimken name that has stood firm for more than 100 years and which has come to stand for many worthy things: ethicalbusiness practices, quality products, innovation and independence of thought.

Celebrating Timken’s seventy fifth anniversary in South Africaare: Mr MW Happach, Mr WT Timken and Mr S D Coetser.

The company, led by

founder and managing

director Richard Pinard,

is now a force to be reck-

oned with, distributing

bearings and other related products to

South Africa’s growing corps of work-

shops, service centres and parts outlets.

Pinard put his 17 years of service with

multinational bearing manufacturer SKF

to good use, having gained an in-depth

knowledge of the market before leaving

to start his own business. “After only

eight months since we opened our

doors TopClass was appointed by the

FAG bearing company to assemble and

distribute its wheel bearing kits in

South Africa,” says Pinard. “Soon after

that FAG invited us to join its franchise

system, which, at the time, presented an

excellent opportunity for TopClass to

be relived of the burden of stock hold-

ings and cash flow concerns.” The move

opened up new outlets, including the

growing Midas organisation as well as

AutoParts and AutoZone. “We intro-

duced the brand to Daimler Chrysler,

Ford, BMW and other OESs and estab-

lished excellent relationships which en-

dure to this day,” he says. In 2002 FAG

was the subject of a corporate takeover

and in its wake Pinard decided to steer

TopClass towards independence rather

than be shackled to any one supplier.

Nevertheless TopClass was soon ap-

proached by the BearingMan company

and because of the Japanese emphasis in

its product portfolio – an attraction for

Pinard - a distribution deal was struck.

Once again, however, Pinard sacrificed

closer ties, in the form of a partial own-

ership deal crafted by BearingMan, for

his hard-won and much-valued inde-

pendence and in 2007 the organisations

parted company.

“Today the majority of the bearings we

distribute are from Timken, a reputable

American company. We enjoy an excel-

lent relationship – extending to the race

tracks and sponsorship of a racing team

for which I drive. I am very fortunate

to be involved in a business which gives

me the opportunity to indulge my pas-

sion. Motorsport is an integral part of

my life and I believe my enthusiasm for

it filters through into my business world

which benefits too.” Further broadening

its range, TopClass has taken on the dis-

tribution of the Permatex brand which

has given the company a push into the

retail sector. Permatex – also US–based

- celebrated its centenary in 2009.

“Bearings are often seen as a ‘grudge

purchase’ but Permatex consumables –

cleaners, thread lockers, silicone sealants

and the like – are perceived differently

and we will enjoy the challenge of ad-

dressing a new market.” Looking to the

future, Pinard says TopClass will build

on its strong base and he looks forward

to 2010 when he predicts a surge in the

aftermarket as many of the new vehicles

bought in the boom years of 2005/6

will come out of warranty/ motorplan

and find their way into the independent

workshops for servicing. On the bearing

front there has been a slew of new de-

velopments, and the introduction of

new technologies. “Our emphasis will

be to grow the aftermarket and enhance

our profile further. We believe con-

sumers are becoming more discerning

in terms of the parts fitted to their ve-

hicles and we’re confident that our qual-

ity brands will outperform ‘whitebox’

and other less-than-optimal solutions.”

Pinard says TopClass can be expected to

expand its product range to address

parts associated with disk brakes and

suspensions. “There are also opportuni-

ties in differential and gearbox repairs

and refurbishment - which is another

avenue worth exploring,” he adds.

The Fusion of Passion and Excellence

TOPCLASS AUTOMOTIVE BEARING SYSTEMS

page 95

TopClass founder and MD Richard Pinard

Motor racing is an integral part of Richard Pinard’s life. He is pictured (left) withTimken team mates Bryan Morgan and Hennie Groenewald.

From early beginnings in unpretentious basement accommodation in Edenvale, east of Johannesburg, TopClass Automotive

Bearing Systems has elevated itself to five-star status in the automotive aftermarket arena in the short space of 12 years.

page 96

The brake pads and brake linings

are sourced from a state-of-the-

art production facility just out-

side of Cairo in Egypt. “The EMAK

technical team are rated amongst the

world’s best, ensuring that our formula-

tions and products are amongst the most

advanced in the global market,” states

Paul van Rooyen, managing director of

Traxx SA. All products supplied by Traxx

SA comply with all environmental stan-

dards set for the industry.

“Traxx SA Friction Products is commit-

ted to providing its customers with prod-

ucts and service that will exceed their

expectations and requirements in order

to achieve a mutually beneficial partner-

ship. This will be accomplished by fol-

lowing our stringent quality objectives as

a company culture based on Total Qual-

ity Management.” notes Van Rooyen.

When competing with some much older,

more established and therefore more

recognised brands, there are bound to be

tough times for relatively new companies.

“The recent economic environment has

been a test for us,” Van Rooyen says. “It’s

always a challenge, but our mission is to

be the number one supplier of friction

products to the South African market.”

Despite this though, Traxx SA has still

managed to cause some major coups in

the industry in recent years. “We have

obtained the business of three of the

country’s leading OEMs for light duty

brake pads in the past five years, and we

are currently in talks with one more,” Van

Rooyen reveals. “Our current customer

base also includes two of the major

OEM’s in the heavy duty sector as well as

several major transport companies.”

Traxx SA has goals to expand further in

the coming years and it is in the process

of expanding in both its business seg-

ments. Regarding both segments, Van

Rooyen remarks, “We’ve been expanding

at a phenomenal rate.” Without revealing

too much, Van Rooyen adds that new

product introductions are key to Traxx’

business. He concludes that “In terms of

expansion, we definitely have plans in

place.” So as the RMI celebrates its 101st

year, Traxx SA SA celebrates its very own

milestone, that of its ten year anniversary;

an appropriate congruence that high-

lights the success of the motoring indus-

try in South Africa as well as the success

of Traxx SA’s effective business philoso-

phy. “We have exceeded the goals we have

set ourselves to achieve” states Van

Rooyen.

However, he knows that there is always

more to be done in the auto industry, and

concludes with what could be the com-

pany’s mantra: “Product and service qual-

ity is of the utmost importance to us. We

aim to provide the right product, at the

right quality and cost, in the right place,

at the right time.”

Making TraxxTraxx South Africa Friction Products was established in 1999,and has grown into one of the leading suppliers of brake frictionmaterial to the South African automotive market, as well asthat of neighbouring countries. Traxx SA is the sole importerand distributor of EMAK brake friction products in SouthAfrica. Traxx’ EMAK range is comprised of brake pads, brakelinings and roll linings for both the light and heavy duty sectorsof the automotive industry. Traxx SA also supplies brake drums,brake discs and clutches for both sectors of the industry.

Paul van Rooyen - MD

In Safe HandsForced to relocate from Johannesburg because of the restrictions placed on Indian traders,Abdullah Vally started a small retail spares shop in Fountain Lane, Durban in 1968. Theshop was strictly retail at first and the product range was small. As most of its customerswere taxi owners, spare parts for the fastest selling products were ball joints and tie rod ends.

VALLY’S AUTO WHOLESALERS

page 97

“Our main customers todayare retail spares and acces-

sories outlets and otherwholesalers, fleet owners and

many workshops,” says Ficky. “The Company

has a staff complement of 30and carries an enormous

range of products, though Idon’t think you would find a

’69 Valiant suspension re-build kit registered on thestate-of-the-art computer

stock control system.”

Abdullah Vally

Brothers Yousuf and Rafik ’Ficky’ joined the business

in 1970. The business relocated to bigger premises

in Beatrice Street later that same year. Renting

premises meant the company was at the mercy of

landlords. To this end, a property in Lorne Street was

purchased and the cottage standing on the property was

demolished and a most modern 12-storey building was

erected. Vally’s Auto Wholesalers occupied the first three floors

until 2005 when the business moved to the present bigger

premises on the corner of Lorne and Albert Streets. “Starting

up a business for a South African Indian was difficult 40 years

ago, more especially in the motor spares trade. We were not

allowed to join the Motor Industries Federation - now the

RMI,” recalls Ficky.

“We had no way of controlling standards, and all Indian

traders were lumped together in the minds of the suppliers

and the public. We could neither buy directly from factories

nor would the wholesalers grant us credit. The fact that we

had relocated from Johannesburg meant that we had no

track record or family history in Durban which

didn’t help much either.”

Vally’s Auto Wholesalers’ reputation as a trustworthy dealer

grew along with their business and the company is today an

enormously respected player in the automotive spares industry

in KwaZulu-Natal. Ironically, Ficky was elected chairman of

the MIF/RMI in the late ‘80s and held the position for almost

a decade. Apart from spares and accessories, the Vally family

has branched out in another direction.

“We now manufacture lubricants as well,” he says.

“We have a plant that processes base oil that we buy

from the refinery. We do the blending, mixing and

packaging in-house and all our Viking lubricants

conform to SABS specifications.”

Nearly half a century after it started in a tiny shop in Durban’s

Grey Street area, Vally’s Auto Wholesalers is in the safe hands

of the next generation of the family.

page 98

It wasn’t long after the formation of RAM in 1981 that

the company was appointed the sole distributor for

Goodyear-branded products in South Africa. As such,

RAM was ideally placed to bring to market Goodyear’s

Fan & Poly-V Belts, Automotive Timing Belts, Rubber

Coolant Hose, Rubber Fuel Line Hose, Heater Hose, Air

Brake Hose, Air Conditioning Hose, Air & Multi-purpose

Hose, as well as Hose Clamps, Heavy Duty Belts and Air

Springs. So successful was RAM that Goodyear decided to

purchase the company outright in 1991 and the bold red and

black ‘RAM’ logo became synonymous with Goodyear’s wide

range of quality offerings. On 1 August 2007, Global private

equity firm, The Carlyle Group, closed its purchase of the

Engineered Products Division of The Goodyear Tyre &

Rubber Company. The transaction was valued at US$1.475

billion. Through a long-term license agreement, Goodyear

Engineered Products have continued to carry the Goodyear

brand, while the legal name of the company changed to

Veyance Technologies, Inc.

Colin Preddy, General Manager for RAM (now under the

umbrella of Veyance Technologies Africa), says the company’s

conduit to the market is - and always has been - primarily

through the major national automotive spares outlets and the

larger independent spares outlets. RAM also supplies product

to export houses for shipment to other parts of the globe.

RAM is a major supplier to the local automotive original

equipment market (OEM) and many of its products are found

on locally manufactured or imported vehicles which form part

of manufacturers’ local model line-ups. “As the Automotive

Division of Veyance Technologies Africa, RAM understands

how important it is for vehicles destined for the South African

market to be fitted with dependable, quality Goodyear-

branded parts that have been tried and tested under harsh

conditions,” he says. “To this end the RAM team remains

committed to providing the levels of quality and service that

have always set us apart from our competitors. We believe it

is our duty to provide a solution rather than simply to supply

a product.”

Preddy highlights the amount of research and testing under-

taken at Veyance Technologies and says the efforts by highly

trained and experienced staff are directly linked to the reasons

why Goodyear-branded automotive replacement products

deliver the ultimate in performance and value. “The brand

offers peace of mind for both the supplier or fitment centre

and the motorist and so it’s well worth taking a look at the

Goodyear catalogue before making a purchasing decision.

“For example, you'll often find the belt or hose you need in

our extensive automotive and light truck product line-up,

including Gatorback Poly-V belts which have been proven in

the tough environment of V8 Supercar racing both here in

South Africa and the US.”

Preddy adds that RAM’s Timing Belts as well as certain of its

Poly-V Belts are sourced from Goodyear Engineered Products

plants worldwide. All Fan Belts plus the majority of Poly-V

belts are manufactured locally at Goodyear’s factory in Uiten-

hage - making the company the only local manufacturer of

Fan and Poly-V belts.

“These belts, which pass the toughest of tests on the race

tracks every weekend, are ideally suited to everyday use on the

road. This proven, ‘track-to- street technology’ is just one more

way we provide products that help our reseller partners to

boost their businesses.”

Tel: +27 011 248 9443

Fax: +27 086 636 8163

Web: www.goodyearep.co.za

RAM Belts & Hoses - Standing theTest of Time

Rubber & Associated Manufacturers (RAM)

is the automotive division of Veyance Technologies

Africa, a specialist company that manufactures

and sources quality Goodyear

Engineered Products.

An engine running Goodyear RAM quality timing belts fanbelts and power transmission belts

As technology progressed, so did race cars, and thus

acceleration, top speed, traction and downforce

all improved too. This meant that tracks had to

become more technical, which led to many tracks

being redesigned. For the sake of modern racing

as well as safety requirements, some tracks were slightly altered

while some were dramatically revamped, but racetracks of the

modern era necessitate more corners, more overtaking oppor-

tunities and a more technical approach to racing. All of these

changes led to close and exciting races, something Zwartkops

Raceway is known for. The old Zwartkops track, two km in

length with only three braking points, had to give way in 2001

to the current 2.4 km track that has five braking points and, in

the modern day, racing at Zwartkops is better for it.

The Big Z is home to a great number of automotive events,

whether it be racing series, advanced driving courses or motor-

cycle events. One of the many feathers in Zwartkops’ cap is the

fact that it hosts International Sports Prototypes (ISP) races.

These ISP races include a vast range vehicles from the glory days

of race cars, including Porsche 911s, 917s, Lola T70s, Chevrons,

Ford GT40s and yet more American V8 muscle in the form of

Mustangs, Camaros and Chevrolet Can-Ams. Zwartkops also

plays host to some more modern racing series such as Thunder-

bikes, SuperHatch and SilverCup. Aside from racing series, The

Big Z houses the BMW Motorrad Rider Academy, Mercedes-

Benz Dynamic Driving, Sasol Advanced Driver Programme,

Zwartkops Driving Academy Centre and Zwartkops Off-Road

Academy. Not a bad resume by any means...

It is clear that Zwartkops Raceway places a lot of emphasis on

advancing the driving talent in South Africa, and this goal is ac-

tually stated in the track’s charter. “Zwartkops is for the devel-

opment of domestic talent,” the charter states, “and to help put

South Africa at the forefront of automotive technology.”

Not only is Zwartkops forward thinking in terms of developing

talent in South Africa, but in a business sense too. 25% of

Zwartkops is owned by a trust for empowerment initiative,

while the remainder is owned in part by the Zwartkops Owners

Club and private investors.

Those at the helm of the track’s management assert some no-

table achievements, some of which are key in terms of the track’s

charter. One of these is saying that Zwartkops is “One of the

most advanced and biggest driver training and education centres

in Africa.” And all of this lies just off the R55 in Pretoria, at

Zwartkops International World of Motoring; The Big Z.

Z is for Zoom!Zwartkops Raceway, or ‘The Big Z’ as it is colloquially known, is an historic racetrack situated in Pretoria,Gauteng. Zwartkops held its inaugural race on 18 November 1961, and the track has been a landmark eversince. That is not to say there have not been changes though; there have. The days of high-speed, minimal-cornering and somewhat simplistic racing are over, and racetracks have had to move with the times.

page 99

page 100

AAMA 65

AIDC 66

Atlas-Copco 67

AutoZone 39

Barloworld 41

Behr-Hella 68

Brake Hose & Component Supplies 69

Bridgestone 43

Caelex 70

Capricorn Society 71

Castrol 72

CI Auto 45

Commercial Auto Glass 73

Diesel-Electric 74

Distributor Remanufacturers 75

Dynamax Auto Components 76

Econometrix 77

Euroquip 78

Federal-Mogul Aftermarket 47

Ferobrake 79

First National Battery 80

Ford Motor Company 81

Forsdicks BMW 82

General Motors 83

Grandmark International 49

Harley-Davidson Durban 84

Henkel 85

Imperial 86

KAPCI Coatings 87

Launch Tech Co 51

Lazarus Motor Company 53

McCarthy 88

Midas 24

MISA 89

Moto Health Care 55

Nissan 33

Permatex 90

RAM 98

Rex Diff and Gearbox 57

RMI 1

RMI Code of Conduct 101

Robert Bosch 9

SA Warranties 59

Schaeffler Group 91

Shatterprufe 92

Tenneco 93

Timken 94

Tonii 36

TopClass Automotive 95

Toyota 61

Traxx 96

Vally's Auto 97

Volkwagen SA 63

WesBank 19

Willard 29

Zwartkops Raceway 99

Copyright 2009 • Trilogy Publishing • P O Box 102 Wendywood 2144 Republic of South Africa

All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means, including information storage andretrieval systems, without permission in writing from the publisher, except by a reviewer who may quote brief passages in review. Trilogy and the

RMI 101 design are protected by common law in South Africa and in the countries in which they are distributed.

Printed in the Republic of South Africa by CTP Book Printers.

INDEX

page 101

Accredited members are party to the RMI Consumer Code of Conduct in terms of which the consumer is assured that

an accredited member undertakes to:

• Sell his/her quality products and services at a fair and reasonable price;

• Honour both in letter and in spirit any guarantees applicable to products and services sold by them;

• Acknowledges that, should there be a dispute between a consumer/customer and our member which could not be

amicably settled at Management level, the consumer/customer has the right to refer such dispute to the RMI for

investigation;

• RMI's Consumer Services divisions are deployed countrywide;

• Professional intervention ensures a proud record of high success rate in dispute resolution.

Should you be a registered RMI member but not have your Code of Conduct, please contact Killy Scott 011 886 6300 or

Killy.Scott@rmi.org.za

• To promote, protect and encourage the interests of members and the motoring public by setting and maintaining

proper standards of service and ethical trading conditions in the industry;

• Facilitates the settlement of disputes between members and their employees, members and the motoring public by

conciliation/mediation/arbitration;

• Regulates relations between members and their employees and/or trade unions and protects and furthers the interests

of members in that regard;

• Promotes, supports or opposes when necessary, any proposal, legislative or other measures affecting the interests of

members;

• Affiliated with and participates in the affairs of other bodies sharing common interest with RMI members (i.e.

NAAMSA, NAACAM, SABS, DTI, etc.);

• To maintain high standards of business ethics and service delivery to the motoring public by members of the RMI,

and where necessary provide upliftment programmes to improve the knowledge and professionalism of members.

RMI Code of Conduct

RMI Objectives