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Vol 1
9 •
June
201
3
a set of the new Michelin Primacy 3 tyres courtesy of Michelin SA!Focu
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n Ty
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PorT
s
Tyre Imports – Have the tables turned?
Agricultural sector takes a hit
Michelin’s Andre Bonnet outlines plans for SA market
Apollo sells SA stake to Sumitomo Rubber Industries
New multi-terrain tyre from Cooper
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Syn
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S.A
FLEET MANAGEMENT DOWN TO AN ART
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Page 3
editor LianaShaw
Technical consultant WrayShaw
reproduction DianevanNoort
Printing TYPO
–ColourPrintingSpecialists
Distribution PrestigeBulkMailers
Advertising LianaShaw
Contentsone-on-onewithAndreBonnetMichelinSA’sManagingDirector............................ 3
Focus onTyreImports.......................................................................................... 9
ManufacturingNewCooperMulti-TerrainTyreavailableinSouthernAfrica................. 17WinaSetofMichelinPrimacy3Tyres!................................................. 18DunlopAwardingaJaguarXfatTopGear!............................................. 18GoodyearPlantAchieveshighestauditedqualityscoresever.............. 23ApolloTyresandSumitomoRubberIndustriesstrikedealinAfrica...... 27NewGoodyearCallCentreCommitsto24/7service........................... 28
conti cornerGeneralGrabberMTconquersAfrica!.................................................. 24GrabberMTlaunchedatRustdeWinter............................................... 25
Industry newsFaststartforTyrexpoAfrica2014asexhibitorsfromallsectorssignupforJohannesburgshow............................................................. 30TyrecorsecuresdistributionrightstoMitas........................................... 30
Talking TyresBrandEquity:Changingmindsets......................................................... 33
Goodyear newsGoodyearPlantInvestmentsEnsureQualityProducts.......................... 36GoodyearEaglesgivesportynewForditswings................................... 36GoodyearGearsUpfor2013TruckRacingSeason.............................. 37TyreofChoiceforRhinoProtection...................................................... 37
World newsTrianglebecomingglobalplayer............................................................ 39Bridgestonewinspatentrightslawsuit–InChina................................. 39NewinvestorslookingatbuyingstakeinPirelliholder......................... 39SchaefflerendingContiinvestmentagreement..................................... 39
competition, subscription, Website ........................................ 40
A note fromthe editor
Amidst prolonged concerns on the part
of the local industry over the rising influx
of imports and their long-term effects to
their business, importers of reputable
tyre brands are equally concerned over
what they describe as regular onslaughts
to their businesses on the part of
government and local industry.
Are importers being subjected to unfair
businesspractices?Inthisedition,weexaminesomeofthepressingissues
surroundingtheimportationofforeignbrandsintoSouthAfrica,particularly
the recent scrapping of the rebate on herringbone tread tyres, which
has sent the agricultural sector into a tailspin. Precisely what prompted
this,orwho,remainsasubjectofhotdebate,asourstoryonpage9will
illustrate.Interestinglytooandaccordingtomultipleimportcompanies,in
somecases,locallyproducedtyresarenowcheaperthanimportedmakes,
thereby posing new challenges for the importers who have traditionally
competedinthismarketonprice.
Wecouldnotsubstantiatethisclaimatthistime,butanumberofdealers
wespokewithdidconfirmthatsomelocalmakesandsizeswerecurrently
selling at more favourable prices than many imported makes, which is
surprising,tosaytheleast.
Stayingwithimports,wealsobringyouanexclusiveinterviewwiththeman
atthehelmofMichelinTyreCompanySA,AndreBonnet,whooutlinestheir
ambitiousplansforthecompanyandalsotalksaboutthereleaseofsome
excitingnewproducts in thedomesticmarket, among them theMichelin
XWorks (completewithAccidentalDamageGuarantee!) and theMichelin
Primacy3forthepassengermarket.*To stand a chance to win a set of the new Michelin Primacy 3 tyres, turn to our competition page (page 40).
Also in this issue, we announce the sale of Apollo’s Ladysmith plant to
SumitomoRubber Industries, a turnofevents thathas sent shockwaves
throughouttheindustry.Detailsofthistransactionanditslong-termeffects
toApolloSAremainsketchy,butwewillprovidefurtherinformationasand
whenitbecomesavailable.
Don’t forget to stay in touch via our International Tyre Portal – www.
satreads.com – which features fresh stories relating to the local and
internationaltyresectordaily!
Staywarm….tillwemeetagainintheSpring.
I n t r o d u c t i o n • 1
Publishers SkyPublicationscc
POBox702
Douglasdale,2165
Tel: (011)6580011
Fax: (011)6580010
Cell: 0828516777
E-mail: [email protected]
Website: www.satreads.co.za
FrontCover:www.istockphoto.com
Page 5
O n e - o n - O n e • 3
Dutch-born and raised Andre Bonnet, assumed
responsibility for Michelin Tyre Company South Africa in
2010 in his capacity as Managing Director. In that time,
the Michelin brand has continued to secure a growing
presence in the domestic market, and this despite the
premium nature of the company’s products in a cost-
consciousmarket.Anexclusive interviewwiththemanat
the helm recently revealed some key strategies that are
heralding a fresh approach to Michelin’s South African
operation.AndreBonnetexplains…..
AnDre BonneT
onMichelin’sBig Plans
fortheSAMarket
Page 6
4 • O n e - o n - O n e
We believe that Michelin SA has adopted a fresh approach to the way it
conducts business in this market. Would you care to elaborate on this?
InkeepingwiththeMichelinGroup’sglobalphilosophy,MichelinSAisset
toadoptaSouthAfricanapproachtoitsdomesticbusinessviaagrowing
numberofhome-grownpersonnelwhichhavebeenidentifiedandsuitably
groomedtoassumeresponsibilityforkeyfunctionswithinthecompany.
Simplyput,MichelinTyreCoSAwantstobeviewedasalocalcompany,
not a European one. Up until last year, senior positions were mostly
occupiedbyexpatriatesbutthisisrapidlychangingwiththeappointment
ofcarefullyselectedindividualsfromthelocalmarketthatareactively
beingpreparedtotakeupsomeofthesekeypositions.
Is this with the aim of them eventually taking over the reins of the
company?
That is correct. We realise that this is a long term process, but our
aspiration is to nurture talented individuals to the level where they are
suitablyequippedtorunthecompany.TogetherwiththeHumanResources
Department,thesecandidatesarecurrentlybeingdevelopedtonotonlyfill
specificopenings,butalsowithaviewtosustainablecareerpaths.
A somewhat unique but refreshing strategy for a global tyre
manufacturer to take?
MichelinTyreCompanyhasambitiousgoalsforthefuture–allofwhich
arepubliclyknown–andinordertoachievetheseobjectives,wewill
befocusingheavilyonemergingmarketssuchasSouthAfrica.Michelin
TyresSAishere,notonlytostay,buttogrow.
What would you estimate your current market share in SA to be?
Tobequitefrank,itdoesn’tinterestme.Ourfocusisnotonnumbers
butratheronpreservingthequalityoftheproduct.Forthisreason,we
haveappointedtwoseniorfieldengineerswhoseprimaryfunctionisto
upholdandprotecttheMichelinnameinthemarketplace.
ThepopularChinesesaying‘whenatigerdies,whatisleftbehindishis
skin,butwhenamandieswhatisleftishisname,sotakecareofyour
name’ instantlyspringstomind.Wewanttotakecareofournamein
themarketplace.
What other initiatives are in place to ensure that you achieve this?
We are constantly asking ourselves: can we deliver the required
levelsof service around thequalityof theproduct? Ifnot,wherecan
we improve? Are our deliveries and invoicing systems up to scratch?
What about availability? Can we deliver the required volumes to our
customersattherequiredtimes?
Wehaveelevatedourserviceoffering frombeing the ‘worstsupplier’
in the eyes of one of our important customers, to being their ‘best
supplier’ in the spaceof twoyears, simplybypayingattention to the
basics and our willingness to operate in a transparent manner. We
arenotperfect, andwemustbe able to admit toourmistakeswhilst
informingthecustomerastohowweplanonrectifyinganylegitimate
concernstheymayhave.
Fromourend,wehavereinforcedoursupplychainteamandinitiated
trainingprogrammesaimedatimprovinginternalcommunication.Also
in our favour, is that we now operate via a Head office that is much
closertousinDubai.
In 2010 the customer in question was compelled to operate on
excessivelyhighstocklevelsduetoourinabilitytosupply.Today,Iam
happytoreportthatheisworkingonalowerinventory.Thesearethe
kinds of partnerships we are looking to develop with our customers.
Businesshastobesustainable,forbothpartiesconcerned.
Are you still actively promoting the BFGoodrich brand?
Although the Michelin brand is our priority, BFGoodrich remains an
integralbrandforusandthiswillbecomeeverclearerduringthelatter
patterof2013whenweintroducenewinitiativesaimeddirectlyatour
BFGoodrichcustomersinthismarket.
Speaking of customers what is your view on the multi-alliance culture
that exists in our market?
Thecultureyouspeakof isnot inkeepingwithourphilosophy. Inmy
opinion, there is toomuchprostitutionevident inourmarket!Weare
looking to tradewith the typeofcustomerwho reflects thequalityof
ourproductandprovidestheservicethatrunsalongsidetheMichelin
brand.Inthissense,weexpectourdealerstomakeastandagainstthe
multi-alliancetrend.
Toassisttheminmakingtherightchoicewearebusywithanumberof
excitinginitiativesthisyear,amongthem,theopeningofourdedicated
Michelin Truck Service Centres explicitly aimed at enhancing our
offeringtothecommercialsector.
Tell us more about these service centres. How many will be launched
this year?
Therearefourshopsinthepipeline–withallsportingnewsignageand
Page 8
6 • O n e - o n - O n e
Michelinstandardoperatingprocedureswhicharesetglobally-withthe
firstoneinVilliersdorp,scheduledtoopenon14June.
Our value proposal for these selected dealers is to assist them in
boosting profit margins via a strong emphasis on health and safety
issues, a dedicated product range (Kormoran), plus a mobile service
vehicleflauntingtheMichelincorporateidentity.
ThisexcitingnewdevelopmentisaculminationofMichelin’sCommercial
Policy. Unlike the passenger market which depends on regular brand
awareness, product warranties and the like, the commercial segment
requires a great deal more effort and attention. And unlike the 7.4
millionoddmotoristswhoweareunlikelytoevermeet,thecommercial
marketofferstheopportunityforgreaterinteractionwithourend-users,
somethingwewanttocapitaliseon.
DedicatedMichelinserviceteamsandvehiclestorenderassistanceto
AandBtransportfleetshavebeenestablished,theiraimbeingtotravel
aroundthecountry,providingaweekendservicewhenthemajorityof
vehiclesareonsite.
Asidefromprovidingmaintenanceandtechnicalassistance,theirroleis
alsotoeducatethecustomeronhowtoderiveafavourableCPKoutof
ourtyres,byfollowingtheMichelinprinciplesthatincludemaximising
the life of the original tyre, regrooving and retreading with Recamic
tread.
That some fleets are achieving a mileage of one million kilometres is
testamentthatMichelin’scradle-to-gravephilosophyworks,iffollowed
correctly.Thatisourvalueproposition.
Are you planning to launch any new products this year?
In Januaryof this yearwe introduced thenewXWorks tyre,designed
specifically for tough road conditions such as construction sites. The
newtyre,whichhasbeendevelopedexpressly foremergingmarkets,
comes with a six-month Accidental Damage Guarantee, such is our
confidenceintheXWorks.
AttheendofAprilwelaunchedtheMichelinPrimacy3tyre,Safetyto
thePowerof3whichdeliversexcellenceinwetanddrybrakingaswell
asexcellence incornering in thewet.TheMichelinPrimacy3comes
withBibAssistwhichcomprisesRoadsideAssistance,(assistanceinthe
event of a flat tyre, mechanical breakdown etc.), Michelin Concierge
Service (your veryownpersonal assistant that can assistwith finding
any product or service at a location convenient to the member), and
DriveMe,whichisapersonaliseddriverserviceforpeoplewishingtogo
outandenjoyafewdrinksandreturnhomesafely.Avehiclewithtwo
driverswillbesenttothelocationrequestedwhereonedriverwilldrive
homethecaroftheBibAssistmember.
Andlaterthisyearwearelaunchingthenew750R16HD(heavyduty)
tyre that again, has been expressly designed for our unique road
conditions, toservice the light truckanddeliveryvansegmentof the
market.
Rumour has it that Michelin will also be moving premises this year?
That iscorrect. InDecember2013,wewillbemoving toClearWater
Office Park, Atlas Road, in Boksburg. We have outgrown our present
premises and as our lease expires in February 2014, this will be the
perfecttimetoengineeramoveofthiskind.
Addedtothis,ourwarehouseinAlrodeisalsobecomingcrampedand
wearelookingtoexpandonthatlevelaswell.Ifallgoeswell,wehope
tobuildourownwarehousepremisesdesignedaccordingtoMichelin
globalspecifications.
How do you see Michelin SA fitting into the global picture for the
Michelin Group?
Between theyears2010-2015, theMichelinGrouphascommitted to
a capital expenditure spend of 2billion Euros a year, monies that will
be used to increase capacity by way of a new passenger and light
truckplantinBrazil,followedbytheestablishmentofthebiggesttruck
plantMichelinhaseverbuiltinChennai,India.Expansionisalsobeing
planned for the Lexington plant in the USA to boost earthmover tyre
production.Intotal,bytheyear2015,Michelinhopestoinvestinthe
regionof1.8and2.2billionEurosincapitalexpenditure.
Sufficeit tosaytheMichelinGroup,whichincludestheSouthAfrican
facility,isfinanciallystrongandreadyforthefuture.
Page 9
M i c h e l i n A d v e r t o r i a l • 7
Michelin’s X Works, the all-
terrain truck tyre that is
robustonsiteandlonglasting
on road, now offers you an
exclusive guarantee against
accidentaldamage*.
*For each Michelin X Works purchased from
January1toDecember31,2013,Michelin is
offeringyouanAccidentalDamageGuarantee*
covering the first six months’ use, from date
ofpurchase
With the Accidental Damage Guarantee*,
Michelin reimburses you with a new tyre if it
isaccidentallydamaged in thefirstsixmonths
of use. So you can enjoy the durability and
safetyofyournewMichelinXWorkstyreswith
completepeaceofmind.
Thisnewrangeoftyreisavailableintwopatterns,
XZYforallpositionsandXDYforthedriveaxles,
andcomeinsizes315/80R22.5and12R22.5
(12R22.5availableinAugust2013).
The Michelin X Works embodies the Michelin
Total Performance developed by the Michelin
Group, which consists of simultaneously
improvingallareasofperformance, regardless
ofthetypeoftyreorrange.Fortrucktyres,the
benefits fall into three categories: enhanced
safety,greatercost-effectivenessandincreased
environmentalprotection.
safer
Designed for use on roads as well as in and
aroundworksites, the tyredeliversheightened
All-Terrain Michelin X Works nowwithDamageGuarantee
resistancetocutsandscrapesandsuperiorload
carryingcapacitywhileat thesametimebeing
cost-effective on the road. To meet the need
fortyresthataresafeandreliable,theMichelin
X works range features a tread design that
reduces the risk of stones lodging in grooves
andensuresthatwater,andmud,iseffectively
evacuatedwhendrivingonwet/muddyroads.
More cost-effective
Becauseofitsrobustness,theMichelinXWorks
provides enhanced resistance to cuts and
scrapes. Its architecture has been optimised
for challenging conditions of use, while the
sidewalls have extra protection to reduce the
riskoflateraldamage.
TheMichelinXWorksisalsodesignedtobelong
lasting.Itsoptimisedcontactpatchdistributeswear
moreevenly,whichmeansgreatertotalmileage.
An Improved environmental Footprint
LikeallnewMichelintrucktyres,theXWorkscan
beretreaded.Improveddurabilitymeanstherate
ofretreadabilityisgreatlyincreased.TheMichelin
XWorkscasingisdesignedtobeusedmorethan
once. Michelin recommends that when the tyre
has a remaining tread of +-3mm you send the
casingintoberetreadedwithRecamic.
Accidental Damage Guarantee
When tyres are used both on and off road, the
riskofaccidentaldamageincreasesconsiderably.
Tyresusedonworksitesandquarries,aswellason
roads,aresubjecttothemostextremeconditions.
Tyre incidents can have major economic
repercussions forcustomers.TheMichelinX
Works and its accidental damage guarantee
will thus address an issue that is very
importantforcustomers.
ThenewMichelinXWorkstrucktyrecomesintwo
sizesandisavailableatallleadingcommercialtyre
outletsthroughoutSouthAfrica.Tofindoutmore,
visitwww.michelin-xworks.co.za.
*termsandconditionsoftheAccidentalDamage
Guaranteeatwww.michelin-xworks.co.za
Page 10
Excellent mileage and retreadability•Delivers competitive cpk•Tread design for your application•DOT and E-Mark approved•Approved by DTI SA• Official SA Distributor of Hanksugi Tires
www.tirepoint.co.zaHead Office: 011 975 9525 | [email protected]
Tirepoint A4 Ad - SA Treads.indd 1 2013/02/26 21:38:21
Page 11
F o c u s o n T y r e I m p o r t s • 9
So, not all imports entering our market potentially pose a risk to the
consumer.Thelocalfourmanufacturers–Bridgestone,Goodyear,Apollo
and Continental – are all compelled to import tyres on a frequent basis
to supplement their product range. Plus, SA’s status as a global player
demands that the SA consumer has access to the world’s leading tyre
brandsfromEurope,USA,andtheFarEast.
Withthatsaid,theriseof ‘dubious’operatorswhoaredumpinglowcost
tyres in the market, whilst also attempting to evade paying the required
import duties, is posing a significant threat to the local manufacturing
industryaswellastothereputableimporters,nottomentiontheenduser.
Foroveradecade,localtyrecompanieshavebeencampaigningforplaying
fieldstobelevelled,somethingwhichtheyclaimcanonlybeachievedby
clampingdownonquestionablelowcostproductsandtheillicitpractices
that accompany them. This they have done by eliciting assistance from
relevant government bodies such as the DTI (Department of Trade and
Industry), the NRCS (National Regulator for Compulsory Specifications)
andITAC(InternationalTradeAdministrationCommissionforSouthAfrica).
Andaccordingtotheimportsegmentofthemarket,theireffortshavenot
been in vain. Local representatives of some of the world’s leading tyre
makersareallegingthatalthoughpricemayhaveonceplayedasignificant
roleinsecuringapresenceforforeigntyresinthismarket,thisisnolonger
case.Theyfurthersuggestthatthetableshaveturnedwithrespecttothe
marketdynamic, somuchso, that imported tyresarenow receiving the
‘shortendofthestick’,sotospeak.
“IneverthoughtI’dseethedaywhenimportedpassengertyreswouldsell
formorethansomelocallyproducedmakes,butthisispreciselywhatis
takingplace,”saidCharldeVilliers,MDofTyrecor.Icontinuouslycirculate
amongstdealerscomparingpricingfromlocalandimportedbrandsforthe
varioussegments,andthisnewdevelopmentisalarming.”Hisconcernsare
beingechoedbyoppositioncompaniessuchasTubestoneandCFPTyres.
“It isbecoming increasinglymoredifficult forus tocompeteagainst the
localmakes,”theyconfirmed.
ButJulioFava,ExecutiveManagerExport,OEandAgriforBridgestoneSA
disagreed:“Localproductsremainmoreexpensivethanimports,it’sonly
thedifferentialthathasreduced.”
“We are extremely surprised to hear of these rumours,” echoed Riaz
Haffejee,CEO,ApolloTyresSA,“sincethisiscontrarytoourexperience.”
The price issue aside, importers are faced with their own unique set of
tradingchallenges.Currently in thespotlight is thesuddenwithdrawalof
theagricultural rebateapplicable to tyresentering thecountryunder the
TariffHeading4011.61Thisrebatewasapparentlysetinplacesomeyears
agotoassisttheagriculturalsectorthatiscompelledtoimportherringbone
IMPORTS–HAVETHETABLESTURNED?Close on 50% of the current tyre consumption
in South Africa is made up of imported makes,
a staggering statistic that is deeply indicative
of the rising popularity of foreign made tyres
over the last few years. Price is the primary
reason for the rise in import figures, with
low cost producers from emerging countries
continuing to target our market with products
that are often of questionable quality;
availability is another, especially as it is not
economically viable for local tyre plants to
comprehensively cater to the diverse needs of
the market by way of application and tyre size.
Page 12
1 0 • F o c u s o n W a s t e T y r e s
YTS
Johannesburgtel: +27 11 974 7732 | email: [email protected]
Cape Towntel: +27 82 337 8699 | email: [email protected]
Official Distributors in South Africa:
YTS TYRE SALES
E N G I N E E R E D T O G O T H E D I S T A N C ETruck and Bus | Dump Trucks | Scrapers | Loaders | Compactors | Graders
Page 13
F o c u s o n T y r e I m p o r t s • 1 1
treadtyressincemanysizesinthiscategoryarenot
being locally produced, and the local companies
cannoteffectivelymeetgrowingdemand.
As of May of this year, the rebate in question was
scrapped,allegedlywithnowarning,underinstruction
by SARS, the administrator. What pre-empted this
developmenthasbeenthesourceofmajorcontention
and finger-pointing with no one party seemingly
willingtotakeresponsibility.
OurinvestigationsintothematterfirstledustoNRCS,
the alleged instigator of the withdrawal process by
wayofaspecialapplicationmadetoITAC,whichDries
vanTonder,SubjectSpecialistforNRCScategorically
denied. He had this to say, by way of explanation:
“NRCS is merely the National Regulator, there to
ensurethatanypassengerorcommercial tyreenteringourborders isof
anacceptablequalityaslaidoutbytheStandardsinplace.Asherringbone
tyres(traditionallyusedontractorsandotherslowmovingvehicles),donot
poseadangertotheconsumer,theyarenotboundbythehomologation
process,andthereforedonotrequireinspection.
“Therefore, inspecting containers of herringbone tyres at port sites for
the purpose of financial rebates, was not only depleting our manpower
resources,itwascreatingsuchabacklogthatwewereunabletoeffectively
meetourresponsibilitytowardsthepassengerandcommercialtyresector.
NRCS indicated thatwedonotwish tobe involvedwith the inspection
ofherringboneandsportingtyresaswellas thesubsequent issuingofa
rebate certificate. Never did we indicate or question the reason for the
rebateorthecancellationoftherebate.”
UponinstructionfromSARSthattherebatehadfallenaway,wesentoutthe
relevantcorrespondence,informingtheindustrythatwewouldnolonger
beperforminginspectionsforthesakeofrebates.”
The mystery deepens further with the subsequent unearthing of a
documentdated30January2013thatwassubmittedtoITACthatclearly
statesthatthereviewfollowsanoticebytheNRCSthatitwouldnolonger
issuecertificatesforthepurposeoftherelevantrebateprovisions.*
As for NRCS’s reference to SARS, Adrian Lackay, Media spokesperson
for SARS had this to say: “Rebates and ordinary customs duties are
governed by trade policy that falls within the ambit of the International
Trade Administration Act, 2002, administered by
ITAC. Whilst SARS administers the goods imported
intermsoftheSchedulestotheCustomsandExcise
Act,1964,thelevelsofrebatesorordinarycustoms
dutiesandanyotherconditions thatmayalsoapply
aredeterminedbyITACintermsoftradepolicy.
“Therebateitemforherringbonetreadtyresaswellas
therebateitemforracingcartyresrequiredapproval
from NRCS, so by law, NRCS was the responsible
entity to approve the tyres imported under the
respectiverebateitems.
He added: “The deletion of rebate item
460.07/4011.61forherringbonetreadtyresandthe
amendmentofrebateitem460.07/4011.10forracing
cartyreswerepublishedintheGovernmentGazette
of15March2013togiveeffect to therequestby theMinisterofTrade
andIndustrytoimplementtherecommendationsmadebytheInternational
TradeAdministrationCommissioninReportNo.423.ITACalsogavenotice
ofitsintentionstoreviewthesaidrebateitemsthroughNoticeNo.570of
2012,publishedintheGovernmentGazetteof20July2012.”
ButdespitethepublishingofthisNotice,itappearstheimportsectorwas
unawareofITAC’sintentiontocancelthisagriculturalrebate,claimingthat
unlike the SATMC, which was approached for comment, they were not
affordedthesameopportunity.
Dr.EtienneHumanof theSATMCconfirmedthat theSATMChad in fact
beenapproachedforcomment,butthecontroversydeepensfurtherwith
BridgestoneSAandApolloTyresapparentlytheonlylocalmanufacturers
in theknow.Whenapproached forcomment,Bridgestoneadmitted that
❝
It is becoming
increasingly more
difficult for us to
compete against the
local makes
❞
Page 14
O n e - o n - O n e • 1 31 2 • F o c u s o n T y r e I m p o r t s
theywerepartof thediscussionsasamemberof theSATMC,andwere
thereforeawareoftheoutcomeofITACapprovingtheapplicationbyNRCS,
whereasGoodyearclaimedtheyknewnothingaboutit.
“We were neither consulted, informed nor pre-warned about the
cancellation of the rebate on imported herringbone design agricultural
tyres smaller than36” rimdiameter,” saidDustineGascoyne,Goodyear
MarketingDirector.
racing fraternity takes control
Whilst the debate around who was or should have been consulted prior
tothisdecisionbeingtakenrageson,theracingfraternityappearstohave
achievedtheimpossible,andisseeminglytheonlymarketsegmenttostill
enjoyrebatesunderthiscontroversialTarriffHeading.
In an attempt to rescue the situation, they formed their own Inspection
Committeetotakeoverthisfunction,andasaconsequence,andwithno
assistance required by NRCS, the rebate on racing tyres imported into
SouthAfricaremainsinplace.
Preciselyhowtheywereable toachievethis,andreasonsas towhythe
agriculturalsectorwasdeniedthesamecourtesy,isalsoopentodebate.
RobinHoughton,ATS,explained:“Bearinmindthatthevolumesofracing
tyres imported into the country, along with the number of importers,
areverysmall,andassuch,administeringthesetyres isarelativelyeasy
procedure.Ibelievethisiswhytheracingsectorhasbeengrantedleaveto
self-governinthismatter,that,plusthefactthattheprocessiscontrolled
byMotorSportSouthAfrica(MSA),whichisaninternationallyrecognised
bodyresponsibleforcontrollingthesportingeventsinthecountrywhere
tyresimportedspecificallyformotorsportpurposeswouldbeused.”
But once importers of agricultural tyres became aware of a potential
problem around inspections and suggested establishing a similar self-
regulated, self-funded Technical Committee for the same purpose, their
suggestionwasallegedlyshotdown.
Said de Villiers: “We offered to contribute towards the cost of future
inspections so that manpower resources can be increased, but our
suggestion was shot down for fear that it would lead to traders abusing
thesystem.”
Notwithstanding,industryplayersclaimthisisalreadythecase.Theyallege
thatthenumbersofimportedracingtyrescurrentlyonrecordaresovast,
thatdubiousoperatorshaveobviouslyfoundawaytoevadepayingduties
byclassifyingpassengertyresunderracingtyres.
SaidHaffejee:“Under invoicingbyunscrupulous importersatvalueswell
below raw material prices is the major hurdle in competing on a level
playingfield.”
Added Kruger: “Dubious tyre importers will always be there and due to
theimportdutiesinplace,theywillcontinueseekingnewwaysandmeans
toevadepayment.Ibelievethatifdutiesweretobeabolished,thiswould
automatically level the playing fields, and that these dubious operators
wouldautomaticallydisappear.”
“The availability of ‘unknown’ brands is increasing and this is driven by
two factors,” suggested Bridgestone’s Fava, “one being the pricing of
these products and secondly, the willingness of the consumer to buy a
cheapproductat leastonce.Theeffectonourbusiness isadiminishing
market with great pressure on the production cost and the feasibility of
local production. The current economic climate also contributes to the
consumer looking forcheaperproductand thisproductmaynotbe the
bestvalueformoneyproduct,butsimplycheap.”
Are importers being unfairly targeted?
So,whatofthisperceptionthattyreimportersarebeingunfairlytargeted?
Said de Villiers: “As importers we are experiencing increasing pressure
from government in the form of poorly executed campaigns to rid the
industryof ‘dubiousimporters’whounder-declarevaluesandusewrong
tariffheadingswithrebateswhenimportingtyres. InSeptemberlastyear
SARSbeganstoppingcontainerswithoutgivingusdetailedreasonsforthe
Page 15
O n e - o n - O n e • 1 3
Page 16
stops,incurringhugelossesforus.Wetriedtoengage
withSARSonthematterbutwereunsuccessful.”
AddedAlidaMoutonofCFPTyres:“Webelieve that
pressurefromthelocalmanufacturerswasthereason
behind these stops by Customs which not only
delayed arrival times but incurred additional costs
resultinginlossofsalesandhigherprices.”
PieterKrugerofTubestoneconcurred:“Thenewtyre
companiestriedtoslowdownimportsbypresenting
SARS with a document stating that imported tyres
werebeingunder-declared,butSARSnevertookinto
consideration aspects such as weight, compound,
treaddepthetc.Wewerehammeredwithstorageand
demurragebills.Thesituationwastotallyridiculous.”
Butlocalmanufacturersarguedthattheytooexperiencetheirfairshareof
frustrationswhenitcomestoimportingtyrestheyrequiretosupplement
theirrange.
SaidGascoyne: “Port efficiencywith respect to container unloading is a
problem, especially in thePort ofDurban,which is very congested.We
havealsoexperiencedsimilarproblemswiththePortofPortElizabeth.”
Apollo’s Haffejee, agreed: “Clearance times are unacceptably long and
oftenexacerbatedbylabourunrestandpoorweatherconditions.”
Andasforallegationsthatlocalproducerscouldwellbeloweringtheirprices
inordertodisposeofexcessstocktoaugmentpoorexportperformanceto
Europe,thistoo,ispurespeculation,accordingtothelocalfour.
Where to from here?
Amidst turbulent market conditions, the local
tyre producers are struggling to compete in a
price-conscious market. For them, the scrapping
of the agricultural rebate on sizes that are locally
produced will bring some relief, but like their
import counterparts, they will be equally affected
bytheir inability toclaimforarebateonsizesnot
producedlocally.Atthispointintime,onlybiasply
herringbone tyres up to a certain size are locally
madewhilstRadialTractor,RadialRowCrop,Radial
Implement, Floatation (Bias as well as Radial),
Forestry(BiasaswellasRadial)arefullyimported.
For the import sector, the trading platform is
particularly challenging they say, given the Rand/
Dollarexchangerate,andnowthecessationofthe
agriculturalrebateonwhichsomanyhadcometorely.
At least where the agricultural rebate is concerned and according to
Johan Pienaar of Agri SA, all is not lost. “Scrapping the agricultural
rebatewillplacethesectorunder immensepressureandwillseverely
hamperourabilitytoremaincompetitive,especiallyunderthecurrent
pressuresofwagenegotiations.Weare innegotiationswith ITACand
believe there is a chance for the agricultural rebate to be re-instated
shouldwebeabletodemonstratetheabilitytoregulateandpolicethis
matterourselves.”
“Thefarmingcommunityisdependentonalltheassistanceitcanget,
andcostsrelatedtothescrappingoftherebatearealreadybeingpassed
ontotheenduseronthepartofthetyreimporterswithpotentiallydire
consequences,”hesaid.
Theagriculturalsector,alongwithreputableimporters,whohavebeen
compelledtouptheirprices,remainhopefulthatalong-termsolution
canandwillbereached,failingwhichthereappearstobelittle,ifany,
recoursefortheimportsegmentoftheindustry.
*Despite multiple attempts to elicit comment from ITAC, we were
unsuccessful.
Disclaimer:The views and opinions expressed in this article are not necessarily those of the Publisher, Editor or any staff member of SA TREADS magazine. Sky Publications can accept no responsibility for the veracity of claims made by contributors or participants to this story.
1 4 • F o c u s o n T y r e I m p o r t s
❝
Clearance times are
unacceptably long and
often exacerbated by
labour unrest and poor
weather conditions
❞
Page 17
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Page 18
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Page 19
M a n u f a c t u r i n g • 1 7
CooperTyresSouthAfricaannouncestheintroductionofamultiterrain
tyrefortheSouthernAfricanmarket,suitableforfitmenttoSUV’swith
19”–theCooperZeonLTZ.
“WehavehadalargenumberofSUVand4x4vehicleownersrequesting
a 19” all terrain tyre for SUV vehicles that is rugged enough to cope
with the challenging Southern African conditions” says Jenny Soons,
MarketingDirectorofCooperTyresSouthAfrica.Jennycontinued,“the
CooperZeonLTZhasbeenproveninbothAmericaandAustralia,and
we put the tyres to the test by fitting the 19” Zeon LTZ to Kingsley
Holgate’sLandroverDiscovery4.”
Kingsley Holgate renowned South African explorer, humanitarian and
author fitted the 19” LTZ tyres to his Landrover Discovery 4 for the
90 day, 3 country expedition to track, research and document the
LubomboMountainRangenorthernKrugerNationalParktotheGhost
Mountain in Mkuze, Northern KwaZulu Natal. “The expedition is all
aboutrhinoprotection,”saysKingsley,“wehave tostop thekillingof
ourrhinos–weallhavetodoourbit.”
Kingsleyhadthistosayaboutthetyres,“WeputtheCooperLTZtyres
throughtheirpacesfromsand,mud,gravelandtarandtheyaremore
thanadequateforthisenvironment.Theyare,byfar,thebesttyreswe
havehadfittedtotheDisco4todate.”
TheLTZ is ahybrid4x4/SUV tyrewith a50%on roadand50%off
roadcapability. Ithasamodernpatterndesignwithacombinationof
lateral grooves and functionally patterned tread elements to provide
dependable multi terrain performance. The optimized pitch sequence
helpsprovideeventreadwearandlowtreadrelatednoise.Thescalloped
shoulderlugsprovidetractionoffroadparticularlyinsoftsurfaceslike
mudandsand.
Manufactured in America the Cooper LTZ follows the Cooper Tire
Company’s aftermarket tyre building strategy of developing strong,
highmileage4x4andSUVtyres.CooperTiresisaworldleaderinthe
researchanddevelopmentofmoderntyretechnology.Today,Cooper
istheninthlargesttyremanufacturerintheworld.
Cooper tyres are available at over 100 dealers in Southern Africa.
For further information visit www.coopertyres.co.za or email
[email protected] .
NEWCOOPERMULTITERRAINTYREAVAILABLEINSOUTHERNAFRICA
Page 20
1 8 • M a n u f a c t u r i n g
Innovation is the name of the game for iconic tyre maker Michelin,
whoselatesttyrepromisesmotorists“Safetytothepowerof3.”Michelin
Primacy3tyresarenowavailableatTigerWheel&Tyrestoresnationwide
and when you buy two or more tyres you’ll get a 3 year membership
to BibAssist free of charge, a programme as remarkable as the tyres
themselves.
Based on independent tests, Michelin Primacy 3’s three key safety
characteristicsare:excellenceindrybraking;excellenceinwetbraking;
andexcellenceincorneringinthewet.
The tyre owes its superior braking and cornering performance to new
auto-blockingsipes–theslitsinthetreadblocks–thatkeepsthetread-
surface in contactwith the roadanda special tread rubber compound
and tread pattern that optimise grip and reduce braking distance in all
conditions.
Theseprovenabilitiesarereasonenoughtomakemotoristsheadstraight
for their nearest Tiger Wheel & Tyre, but throw in a free, three-year
membershiptoBibAssistandthedesiretoownMichelinPrimacy3tyres
isquiteirresistible.
BibAssist is the name for three exclusive, additional services that are
free tomotoristswhobuy twoormoreMichelinPrimacy3 tyres from
TigerWheel&Tyre.These includeRoadsideAssistance;DriveMe;and
MichelinConciergeDesk.
RoadsideAssistanceoffersemergencyroadsideassistanceformechanical
and electrical breakdowns; flat tyres; flat batteries; keys locked in the
vehicle;10litresoffuelwhenyourunout,twiceayear;towingtoarepair
shop for breakdowns, and
otherfantasticbenefitslike
onenight’saccommodation
orarentalvehicleforaday,
whenyoubreakdownmorethan100kmfromyourdestination.
DriveMegivesmemberstheoptiontodrinkandnotdrive.CallBibAssist
at leastonehour inadvanceandavehiclewithtwodriverswillbesent
tomeet anddriveyouandup to threepassengershome, inyourown
vehicle.Theserviceallowsforsixfreebookingsperyearandisavailable
within a 50km radius of city centres in Johannesburg, Pretoria, Cape
Town,Durban,EastLondon,PortElizabethandGeorgewithnewareas
beingaddedeveryday
MichelinConciergeDeskislikehavingafreepersonalassistant.Needa
restaurant booking, concert tickets, accommodation, pool repairs, pet-
sittingormore?CallBibAssist,speaktoaconciergeandthey’llgetback
toyoupromptlywiththeinformationanduptothreequotes.
Best of all is the ease with which your membership to BibAssist is
activated.Simplybuy twoormoreMichelinPrimacy3 tyres fromTiger
Wheel&Tyreandthestorewillautomaticallyregisteryourmembership.
FormoreinformationontheinnovativenewMichelinPrimacy3tyresand
completedetails aswell as the terms andconditionsofBibAssist, visit
yournearestTigerWheel&Tyrestoreorgotothewebsitewww.twt.to.
Alternatively,turntoourCompetitionpage(page40),answertheeasy
question and enter online or via fax to stand a chance to win a set of
MichelinPrimacy3tyres!
WIn A seT oF MIchelIn PrIMAcy 3 Tyres!
Dunlop will be awarding one lucky customer a luxury Jaguar XF at the
TopGearFestival inDurban (15–16 June2013)–SouthAfrica’smost
explosivemotoringfestival.
DunloptyresarespecifiedandfittedbyJaguarasOriginalEquipmenton
selectedvehiclemodels.Asaresultofthis long-standingprofessional
relationship,DunlopandtheirDunlopZonepartnerscollaboratedwith
Jaguartogivecustomerstheopportunitytowinaspectacularprize.
Customers purchasing Dunlop tyres through participating Dunlop Zone
storesuntilthe28thofApril2013willstandthechanceofbeingselected
asoneofthefivefinalistswhowillenjoyanall-expenses-paidtriptotheTop
GearFestival.Onewinnerwillbedrawn,live,attheDunlopstandduringthe
courseofthefestivalandwillgettodriveoffintheirveryownluxuryJaguar
XFworthoverR500000!
TheTopGearFestivalwillbeheldattheMosesMabhidaStadium,Durban,
following popular demand with an incredible line-up of cars and driving
talent.
The festival promises an action-packed show presented by Clarkson,
May and Hammond and featuring the iconic Stig as well as local
personalities,internationalstuntdriversandawholehostofTopGear’s
trademark special effects. The Street Circuit will also be back - only
thistimeit’sbiggerandbetter!Visitorswillbeabletoseestunts,races,
motoring challenges and some of the world’s greatest cars on the
streetsofDurban.
Inamongst theTopGear festivities,Dunlopwillbe in the thickof itwith
giveawaysandactivities,nottomentionthelivedrawfortheJaguarXF.
www.dunlopzone.com
DuNloP AWARDING A JAGuAR XF AT ToP GEAR!
Page 21
Total Tyre Management is the new system designed to make your
fleet operate at peak efficiency at all times. From calculating cost per
kilometre to alerting you when a vehicle’s tyres need a re-cap or
a re-fit. With a host of other features including financial options for
the leasing of your fleet’s tyre requirements, and 24-hour roadside
assistance. Total Tyre Management, exclusively from Max T Solutions.
THAT’S TOTAL TYRE MANAGEMENT
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Page 22
Performance & reliabilityfor ProfessionalsFor more information visit www.tyrecor.co.za tyrecor (Pty) ltd, 771 Cincaut Crescent, Saxenburg Business Park Blackheath, Cape TownTel: 0861 TYRECOR Fax: 086 530 2118
Page 23
Performance & reliabilityfor ProfessionalsFor more information visit www.tyrecor.co.za tyrecor (Pty) ltd, 771 Cincaut Crescent, Saxenburg Business Park Blackheath, Cape TownTel: 0861 TYRECOR Fax: 086 530 2118
Page 24
2 2 • O n e - o n - O n e2 2 • O n e - o n - O n e
Page 25
2 2 • O n e - o n - O n e M a n u f a c t u r i n g • 2 3
ArecentinternationalProcessandProductQuality(PPQ)auditattheUitenhage
tyremanufacturingfacilityhasearnedthelocalcompanyitsbesteverscores,
thanksinparttoGoodyear’ssteadyinvestmentsinitsAfricanoperations.
Dustine Gascoyne, Group Marketing Director, said Goodyear’s PPQ audits
wereconductedannuallybyfiveinternationalauditors,eachanexpert inan
aspectoftyremanufacture.
“ThePPQauditmeasuresProductandProcessQuality.Throughastringent
checklistof internationalcriteria, theseauditorsevaluatetheextenttowhich
ourprocesscontroldeliversconsistent,repeatablequality.Clearly,thehigher
thescore,thebetterourcontroloverprocessandquality,whichinturnmeans
lessbadproductandfewerreturns.Ultimately,ourcustomersareassuredof
theconsistent,excellentqualityofGoodyear’sproducts.”
Gascoynesaid the long-term requirementsofGoodyear’smarkethadbeen
analysedandmanufacturingfacilitiesdevelopedtoalignwithcustomers’ever-
changingneeds.
“Goodyear’scontinued investment in itsmanufacturing facility inUitenhage,
andconsequentfurtherincreaseofits4x4andUHP(ultrahighperformance)
capacity,ensuresthatourproductsretainthequalitythatisepitomisedbythe
Goodyearbrand.
“Thereismoredemandfor4x4tyresforSUVs,forexample.Wearealigning
our quality and product performance with trends in the market and with
internationalcompetition.We’realsostayingastepaheadofourcustomersto
ensurewewillalwaysbeabletodeliverexactlywhattheyneed.
“Aside from the installation of two new tyre building machines and four
newpresses,finalfinishareaswerealsoupgradedand the impactof these
investments were clearly reflected in best-ever, international standard PPQ
auditscores.”
TheoBezuidenhout,GoodyearTechnicalTeamLeaderforSystemsandAudits,
explainedthatPPQauditsareusuallyplannedbutthelatesthadcomeoutof
theblue.
“In2012,wecelebratedwhentheUitenhageplantachieveditshighestever
PPQscore.Thisyear,PPQauditorsdroppedinunannounced.Still,theaudit
scoremanagedtotoptheearlierhigh.GoodyearSouthAfricacontinuestogo
fromstrengthtostrength.”
GooDyeAr PlAnT Ach I eves HIGHESTAUDITEDQUALITYSCORESEVER
Further information:Messe Essen GmbH · Phone: +49 201 72 44-727 · Fax: +49 201 72 44-435
E-Mail: [email protected] · www.reifen-china.com
China United Rubber Corporation Phone: +86 10 5865 0277 · Fax: +86 10 5865 0288
E-Mail: [email protected] · www.reifenchina.com
Nov.13-15, 2013
SHANGHAI · CHINA
3493AnzSATreads210x140.indd 1 16.04.13 15:10
Page 26
O n e - o n - O n e • 2 5
C o n t i C o r n e r • P BP B • C o n t i C o r n e r
Last year’s General Tyre 4x4 African Adventure with the Grabber AT was a great
success, and we decided to step it up this year with an even more challenging route to prove the performance of the all-new Grabber MT,” explains Gishma Johnson, Corporate Communications manager for Continental Tyre South Africa.
Four vehicles were fitted with the new Grabber MT and the remaining six used the Grabber AT. Both tyres excelled, covering a cumulative distance of over 71 000 km without a single puncture, any damage and very little wear.
The 2013 General Tyre 4x4 African Adventure, which was put together by Continental Tyre South Africa and Adventure Junkies Eastern Cape, set off from the Continental plant in Port Elizabeth and entered Botswana through the Grobler’s Bridge border post. The first off-road foray was the route north along the cut line that forms the border between Botswana and Zimbabwe, and featured both soft sand and sticky mud.
General Grabber MT conquers Africa!
The convoy crossed the mighty Zambezi River by pontoon at the Kazangula Border Post into Zambia then visited the spectacular Victoria Falls in Livingstone, before departing on and exclusive and rocky 4x4 route through the Maamba Coal Mine.
It also signalled the arrival at the 2013 African Adventure’s main community project – a small rural school within the Maamba mine area that caters for over 215 children. The school received a large donation from General Tyre, comprising desperately needed stationery, Stop Hunger Now food parcels, shirts, caps and soccer balls.
The following two days were spent soaking
up the beauty of Lake Kariba, after which the group returned to its community project from last year at the Malambu Middle School near Monze, which continues to be supported by General Tyre. It was encouraging to see the funds donated had been used to build a brand-new classroom block that will include a computer centre, a science laboratory and a library.
After another challenging 4x4 mountain route, the group crossed over into Malawi via the Mwami border post and two fabulous days were spent at Senga Bay on Lake Malawi.
Then it was on to Cape Maclear, the trip’s southern-most stop on Lake Malawi, before heading to the town of Zomba with its breathtaking views of the Zomba Plateau.
On day 15 the convoy crossed into Mozambique at the Mwanza border. Zambia’s less-than-perfect roads and Malawi’s endless stream of bicycle taxis and commuters were nothing in comparison to Mozambique’s treacherous potholes.
Next up was Zimbabwe, which sadly proved rather tourist unfriendly, so the convoy pushed through the night and
18 days, six countries, 7 300 km and 10 vehicles – the 2013 General Tyre 4x4 African Adventure launched the new Grabber MT in some of Southern Africa’s most spectacular and challenging conditions
‘‘
C o n t i C o r n e r • P BP B • C o n t i C o r n e r
The General Grabber MT was officially launched to the public at the 2013 Toyota Rust
de Winter 4x4 Jamboree in Limpopo. It certainly proved the class of the field on a very challenging 4x4 mountain trail and technical obstacle course.
The 34th annual Rust de Winter Jamboree was once again organised and hosted by the 4x4 ATV Club. Continental has been a proud associate sponsor for 16 years.
“The Toyota Rust de Winter 4x4 Jamboree is the premier event on the off-road calendar, with a proud legacy and great support from the off-road fraternity,” says Gishma Johnson.
It was the perfect setting to officially launch the new General Grabber MT, which sets new benchmarks for performance and durability in the heavy-duty mud-terrain tyre sector.
In conjunction with Adventure Junkies, Continental entered four Grabber MT-
equipped vehicles in the competition, comprising two standard Toyota Hiluxes, as well as two modified V8 bakkies.
The competition comprised an arduous six-hour, 55 km mountain route dominated by treacherous rocky ascents and descents, along with a full complement of 10 tough driving tests in the gymkhana section.
“Although our sponsored vehicles didn’t compete for points, they certainly grabbed the attention of the enthusiast off-roaders and spectators as the Grabber MTs clawed their way through the trail and the obstacles with ease,” Johnson says.
“We certainly raised a lot of eyebrows when all of the General Tyre vehicles made it out of the treacherous mud pit first-time round.”
It was a very successful event, and a superb way of showcasing the remarkable performance of the all-new Grabber MT to the hard-core and enthusiast 4x4 market.
managed to cross over the Beit Bridge border post early the next morning.
The General Tyre 4x4 African finally arrived back at Continental Tyre SA in Port Elizabeth 18 days after departing on this epic adventure, having covered a total of 7 314 km.
The new Grabber MT proved that, despite its heavily biased off-road design, it is equally adept at everyday use, without the drawbacks typically associated with hard-core mud-terrain tyres.
“After more than 7 000 km of Africa’s best and worst driving conditions, we have proven that the MT is a truly brilliant tyre,” Johnson says. “Besides its exceptional performance off-road, what really sets it apart from its competitors is the superb road holding in the dry and wet, its remarkable braking performance, and the fact that it’s very quiet and comfortable at high speed.”
Grabber MT launched at Rust de Winter!
2 4 • C o n t i C o r n e r
Page 27
O n e - o n - O n e • 2 5
C o n t i C o r n e r • P BP B • C o n t i C o r n e r
The General Grabber MT was officially launched to the public at the 2013 Toyota Rust
de Winter 4x4 Jamboree in Limpopo. It certainly proved the class of the field on a very challenging 4x4 mountain trail and technical obstacle course.
The 34th annual Rust de Winter Jamboree was once again organised and hosted by the 4x4 ATV Club. Continental has been a proud associate sponsor for 16 years.
“The Toyota Rust de Winter 4x4 Jamboree is the premier event on the off-road calendar, with a proud legacy and great support from the off-road fraternity,” says Gishma Johnson.
It was the perfect setting to officially launch the new General Grabber MT, which sets new benchmarks for performance and durability in the heavy-duty mud-terrain tyre sector.
In conjunction with Adventure Junkies, Continental entered four Grabber MT-
equipped vehicles in the competition, comprising two standard Toyota Hiluxes, as well as two modified V8 bakkies.
The competition comprised an arduous six-hour, 55 km mountain route dominated by treacherous rocky ascents and descents, along with a full complement of 10 tough driving tests in the gymkhana section.
“Although our sponsored vehicles didn’t compete for points, they certainly grabbed the attention of the enthusiast off-roaders and spectators as the Grabber MTs clawed their way through the trail and the obstacles with ease,” Johnson says.
“We certainly raised a lot of eyebrows when all of the General Tyre vehicles made it out of the treacherous mud pit first-time round.”
It was a very successful event, and a superb way of showcasing the remarkable performance of the all-new Grabber MT to the hard-core and enthusiast 4x4 market.
managed to cross over the Beit Bridge border post early the next morning.
The General Tyre 4x4 African finally arrived back at Continental Tyre SA in Port Elizabeth 18 days after departing on this epic adventure, having covered a total of 7 314 km.
The new Grabber MT proved that, despite its heavily biased off-road design, it is equally adept at everyday use, without the drawbacks typically associated with hard-core mud-terrain tyres.
“After more than 7 000 km of Africa’s best and worst driving conditions, we have proven that the MT is a truly brilliant tyre,” Johnson says. “Besides its exceptional performance off-road, what really sets it apart from its competitors is the superb road holding in the dry and wet, its remarkable braking performance, and the fact that it’s very quiet and comfortable at high speed.”
Grabber MT launched at Rust de Winter!
Page 29
M a n u f a c t u r i n g • 2 7
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APollo Tyres AnD suMIToMo ruBBer InDusTrIes
STRIKEDEALINAFRICAApollo Tyres has announced a transaction with Sumitomo Rubber
Industries (SRI), by which SRI takes over Apollo Tyres South Africa
(ATSA) including the Ladysmith passenger car tyre plant. Apollo will
retain theDurbanplantwhichmanufacturesTruck&BusRadial (TBR)
tyresandOffHighwaytyres(OHT)usedintheminingandconstruction
industries.
Speaking on this development, Onkar S Kanwar, Chairman, Apollo
Tyres Ltd said, “This partnership with SRI is a win-win situation for
bothorganisations.SRIgetsamanufacturinglocationonthecontinent
andcontrolovertheDunlopbrandwhichtheyalsouseinmanyother
countriesacrosstheworld.ApolloretainsoneplantinSouthAfricaand
has the ability to develop further the markets for its global brands –
ApolloandVredestein.”
ForaconsiderationofUS$60million,SRIwillacquireATSA,including
theLadysmithplant.Allemployeesofthecompany,otherthanthosein
theDurbanplant,willcontinuewithATSA.ApollowillretaintheDurban
plant and all employees attached to it. It may be noted that the two
entitieshavemadesurethattherearenojobslostinthisentireprocess.
ApolloTyreswillcontinuetoselltheApollo,VredesteinandRegalbrand
tyresinAfricawhilefocusingoncreatingandstrengtheningitsownsales
anddistributionnetworkacrossthecontinent.Bothcompanieswillalso
undertake contract manufacturing of their respective brands at each
other’s facility tohave locallymanufacturedproducts available for the
market.
Commentingfurther,MrKanwarsaid,“Whilewehave2globalbrands
–Apollo andVredestein–whichwe are looking at expanding across
the world, we had the brand rights for selling Dunlop brand only in
32 countries of Africa. We have retained the manufacturing facility
in Durban, as we would like to increase the presence of Apollo and
VredesteinbrandedtyresinAfrica,whichwehavealreadybeenselling
inSouthAfricaforthepastfewyears.”ApolloTyresacquiredDurban,
SouthAfricaheadquarteredDunlopTyres International (later renamed
ApolloTyresSouthAfricaPtyLtd)in2006.
Page 30
O n e - o n - O n e • 2 92 8 • M a n u f a c t u r i n g
woman with vast experience, Savahl exudes an almost motherly air about
herteamandnurturestheirwellbeingunderthedemandingshiftscheduleto
ensuretheystaymotivated,dynamicandattentiveforcustomers.
“The excellent team spirit here encourages a high level of support and
accountability amongst the agents. Our top achiever, Roxanne Bosman,
handles around 2000 calls per month. This job requires a special sort of
person:tenacious,energisedand,ofcourse,customerfocused.
“Fleets,inparticular,experienceanelementofriskontheroadandthereisbig
moneyatstake,socustomersareunderstandablyfeelingthepressure.Our
jobprovidestheopportunitytoturnapotentiallynegativeexperiencearound,
actuallybuildonbrandloyaltyfortheGoodyeargroupandimprovesales.
“In fact, we like to believe we are an extension of the sales team. Our
agentsbenefit fromcontinuous training anddevelopment.Theyarewell
informedaboutproducts, businessprocesses and systems. Every call is
recordedandrandomlycheckedbymanagementtotrackresponsequality
andendusercustomerexperience.Wealsoreceivevaluablefeedbackon
aquarterlybasisfromanindependentresearchcompanythatsurveysour
customerssowecantracktheirperceptionsandcontinually improveon
ourservicelevels.”
In addition to the Goodyear group centre, a dedicated Export Division call
centre assists the group’s African customers stretching from South African
bordersrightuptotheequator.
“Theirsispredominantlyasalesadministrationfunction,sotheseagentsare
knowledgeableaboutthesystemswithineachcountryandareabletoestablish
positiverelationshipswiththesecustomers.”
Infact,thecallcentrecoverssuchawideareaofthegroup’sserviceoffering
thatitevenprovidesausefulbackgroundfornewemployees,particularlythose
insales.DeVriessaid,“allgraduates-in-trainingspendfourmonthsinthecall
centretohelpthemgetagriponthevastrangeofproductsandprocessesof
Goodyear.”
NEWGOODYEARCALLCENTRECOMMITSTO24/7SERVICEComepowerfailures,electricstormsorstrikes,therewillalwaysbeatrained
representativeonhandattheGoodyeargroup’snewCustomerServiceCentre
tohelpkeepcustomerssafelyontheroad.AccordingtoGoodyearSupply
ChainDirectorEttiennedeVries,that’sa“24/7/365guarantee!”
“Whetherthatcustomerisatruckdriver,desperateforroadsideassistanceat
midnightbecauseheneedstomakehisdawndeliverydeadline,oratyredealer
inurgentneedofspecificproductsforhiscustomer,ourteam’smissionistobe
theirhelpinghandatanytime,dayornight,”heexplained.“It’samissioninline
withGoodyear’spolicyof‘Safetytogether’andourglobaldrivetobefirstwith
ourcustomers.Ourserviceispartofthispartnershippromise.”
Thenew,integratedGoodyearCustomerServiceCentretookitsfirstcallon7
January2011.Inessence,theserviceprovidesallcustomers–dealers,sales
force,fleetcontrollersandendusers–withasinglecommunicationpointwith
thelargeorganisation.PreviouslyspreadbetweenseparatecentresinGauteng
andUitenhage,the21callrepresentativesarenowbasedonsiteatGoodyear’s
Uitenhagemanufacturingplant.
“Bycarefullyconsolidatingand integrating theGoodyear,TrentyreRoadside
Assistanceand4Fleet(accounthandling)customercallcentres,thegroupnow
sharescrucialsupportstructuresandtechnologytoensuretheserviceisnever
interruptedandcustomersneverinconvenienced,”saidDeVries.
“Themovehassynergisedthebestofpeople,technologyandprocessesto
offerallourcustomersanevenhigherlevelofserviceexcellence.”
The centralised facility is engineered to handle:
•Dealersupport,includingallaspectsofsalessuchasorderingand
productavailability.
•Salesforcesupport,includingpricechanges,bulkorderplacements
andsalesreports.
•Trentyre’snon-stopRoadsideAssistance,whichfacilitatestherepair
or replacementof tyres through thenationalTrentyredealerand
affiliatefootprint.
•Trentyre account administration, to ensure effective inter-branch
transfers,invoicingandgeneralenquiries.
•4FleetAccountAdministration,whichsupportsfleetswithinvoicing
andgeneralenquiries.
•Customer liaison, including a complaints support line for all
warehouseanddeliveryrelatedconcerns.
HeadingthecallcentreoperationisGroupCustomerServiceManager,Ardiela
Savahl, supported by Operations Manager Vaughn Herbert. A calm, direct
The Customer Service Centre in operation – 24 hours a day, seven days a week, 365 days a year.
Page 31
O n e - o n - O n e • 2 9
16142 Trentyre SA Treads P.fh11 9/2/09 2:14 PM Page 1
Page 32
Nextyear’sTyrexpoAfrica2014exhibitionhasreportedkeeninterestandbrisk
businessamongexhibitorslookingtotakeadvantageofmarketingopportunities
atsouthernAfrica’sonlyindependenttyreandequipmentindustryshow.
Thethree-dayeventnextMarchwillonceagainprovideashowcasefor the
fullspectrumofreplacementmarkettyres,retreading,technology,wheelsand
under-vehicleservices.
“There has been an excellent response to next year’s show with plenty of
interest from African and international businesses,” confirms Paul Farrant,
managing director of show organiser ECI International. “Over half of the
exhibitionspacehasalreadybeensold,which isagreatpositiontobe inat
thisstage.Weanticipateafullhouseandanothersuperbshowforthewhole
industrytogetinvolvedin.”
AmongthemanyleadingAfricanbasedcompanieswhohaveconfirmedtheir
involvementisBeltyreAfrica,thelocalsubsidiaryofBelshina,thelargesttyre
manufacturerinBelarus.
ThecompanyiswellknownforitsultralargeOTRtyresfordumptruckand
earth mover equipment used in the mining industry, as well as standard
OTRproductsforscrapers,graders, loadersanddozers inminingandlarge
constructionandcivilengineeringprojects.
TheconsumerendofthetyresandwheelsmarketwillberepresentedbyExotic
Wheel&Tyre,theJohannesburgcompanywhomarketarangeofpassenger
car tyres including Silverstone HPT, Accelera, Kenda, Nankang and Event.
Theseareteamedupwithanimpressiverangeofalloyandspecialtywheels
fromsupplierssuchasEvolution,Ballistic,MenzarriandPanther.
Returning to Tyrexpo Africa will be Richards Bay Tyres, the Kwa-Zulu Natal
basedtyredistributorandserviceprovider,whowillbeattendingtheshowin
partnershipwithDutchwholesalerBandenmarkt.RichardsBayisaDunlopand
BandagdistributorwhichprovidesafullrangeoftyreservicesforOTR,truck
andpassengercars.
AnotherreturningTyrexpoAfricaregularisLeaderquip,oneofthecountry’s
major suppliers of garage and workshop equipment. With operations in
Gauteng, theCape,Kwa-ZuluNatal andBloemfontein, thecompanywill be
exhibitingthelatestwheelbalancing,tyrechangingandalignmenttechnologies
fromUSequipmentmanufacturerHunterandItalianbrandsSicetyrechangers
andWerther,thewell-knownliftsandjackssupplier.
TyrexpoAfricaprovidessouthernAfrica’sonlydedicatedopportunityforthe
tyre, technologyandserviceequipment industries toexhibit ina trade-only
business environment. In addition to passenger car, truck, OTR, industrial
and agricultural tyres, the showwill alsobe an important showcase for the
retreading, tyre repair and recycling sectors and for suppliers of workshop
equipment,tools,accessoriesandconsumables.
TyrexpoAfrica2014takesplacebetween4-6MarchattheSandtonConvention
Centre,Johannesburg(SCC),SouthAfrica.
Formoreinformationgotowww.eci-international.com
FASTSTARTFORTYREXPOAFRICA2014ASEXHIBITORSFROMALLSECTORSSIGNUPFORJOHANNESBURGSHOW
3 0 • I n d u s t r y N e w s
TyrecorhassecureddistributionrightstoMitasa.s,oneofEurope’sleading
producersofagriculturaltyres,forSouthAfricaandtheneighbouringstates.
CurrentlyanOEsupplieroftyrestoleadingworldbrandssuchasJohnDeere,
NewHolland,Case,LandiniandMcCormick,and JCB, tonamebuta few,
Mitasmanufacturesandsellstyresunderthreebrandnames:thecompany’s
ownMitasandCultor,andContinentalunderlicence,outofthreeproduction
plants in the Czech Republic, Serbia and the USA, the locations of which
enablesthecompanytooperateaglobalsalesanddistributionnetwork.
Firstestablishedin1933inPragueasasubsidiaryofMichelin,Michelinheld
a75% interest,while the restwasheldbyCzechoslovakbanks.Over the
years thecompanyhasbeensubject toanumberofownersandshifts in
focus,butdespitethis,hasstoodthetestoftime.
Anew joint-stockcompany,BarumHolding,wasestablished in1991and
severalyearslaterContinentalacquiredamajorityinterestinthecompany’s
Otrokovicetyreplant.Anextensiverestructuringprogrammehasbeenunder
wayinMitasforthefourthyearnow,courtesyofbeingawardedinvestment
incentivesfromtheCzechgovernment,fundswhichenabledthecompany
TYRECORSECURESDISTRIBUTIONRIGHTSTOMITAStolaunchtheproductionofitsradialtyresfortractorsandMPTradialtyres
oftheall-steeltype.
AfteracquiringtherightstousethetrademarksContinental,Semperitand
Euzkadiforagriculturaltyres,thecompanyhasfurtherstrengtheneditslong-
termstrategyinwhichitisaimingatthedevelopment,manufactureandsale
oftheoff-roadtyres,inparticular,agriculturaltyres.
“Weareexcitedthatwemanagedtosecuredistributionrightstooneofthe
leadingpremierbrandsintheworldforSouthAfrica,”statedCharldeVilliers,
MDTyrecor.ItwasagreedthatTyrecorwillbeappointedasthesoledistributor
fortheCultorbrandforSouthAfricaandtheneighbouringcountries.
“TheCultorbrandwasintroducedatthisyear’sannualNampoAgricultural
show held in the Freestate, and was well received by the consumer,” he
added.
According to de Villiers, Tyrecor is in the process of increasing its stock
levelstoensuretheproductswillbeavailabletothegeneralnetworkinthe
domesticmarket.
Page 33
4, 5, 6 MarchSandton Convention Centre, JohannesburgSouth Africa
ECI International Ltd., Speldhurst Business Park,Langton Road, Kent, TN3 0AQ, England
T +44 (0)1892 863888 F +44 (0)1892 [email protected]
www.eci-international.com
AN INTERNATIONAL EVENT
The One Stop Show forTyres, Workshop Equipment & Accessories
tyrexpo_africa_2014.pdf 1 08/05/2012 12:51
Page 34
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3 2 • B a n d a g N e w s
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3 2 • B a n d a g N e w s
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Page 35
T a l k i n g T y r e s • 3 3
BrAnD eQuITy
Changingmindsets…
It’stheultimatecommodityformarketers
aroundtheworld,andadefiningaspectof
purchasingdecisions.Butforconsumers,
isstickingendlesslytoasingletried-and-
trustedbrandthebestthing?
ByColinMileman
Chief executives, managing directors, marketing gurus,
advertising executives and public relations specialists the
worldoverspendcountlesshoursdoingonecrucialthingfor
theirbusiness:buildingthebrand.
More than the core qualities of individual products, it’s the
image and perception of the brand as a whole that is most
important to them. After all, why else would tyre companies
flirt with multi-million dollar soccer sponsorships, put their
namesonanexclusivelineofcalendars,splashtheirlogoson
abunchofmapsorfundafleetofhigh-flyingblimps?
None of these efforts make one iota of direct, tangible
difference to the fundamental quality or performance of the
actualproductsthecompaniesareattemptingtosell.Inmotor
racingyoucancertainlyarguethatitimprovesthebreed,with
lessons learned on the track ultimately filtering through, in
someshapeorform,tobetterproductsforarchetypalMrand
MrsAverageandtheirsensiblefamilysedandrivingonnormal
roads,clockingupapredictable20000kmperyear.
These marketing initiatives set out to place the brand front-
Page 36
of-mind amongst consumers for the qualities they represent, rather than
necessarilytheproductsthemselves.
Forthesamereasonsomecarcompaniessponsorgolfdays,polotournaments
andwildlifeconservationprojects,thebrandsaimtoprojectalifestyle,alevelof
aspirationoranassociationthatbuyersaredrawntowards.Themainobjective,
ultimately, is tocreateaffinitywith thebrandand,naturally,boostsalesand
increaseprofits.
KeepinmindthatthetyremanufacturersrepresentedinSouthAfricaare
globalentitieswithproductportfoliosthatextendwellbeyondjustchurning
out rubber. Continental, for example, is a multi-faceted corporation that
produces not only tyres but also braking and vehicle stability control
systems, powertrain and chassis components, instrumentation, as well
as infotainment and networked vehicle communication systems – a lot
ofunder-the-skinstuffyouwon’teversee,ornormallyassociatewiththe
company.
Similarly,Bridgestonemanufacturespolyurethanefoamforseatsandinteriors,
as well as for bedding, furniture, appliances and buildings. It makes hoses,
conveyor belts, components for solar cells and plasma displays and even
golfingandtennisequipment.
Amongitsvastproductportfolio,Goodyear,interestingly,churnsoutsynthetic
rubberformedicalapplications,andforchewinggum!
There’salotmoretothesecompaniesthanmeetstheeye,althoughtyresare
themostobviousandidentifiablefront-linecommodity.AndtheywantMrand
MrsA toknow it, so that’swhy they investheavilywelloutside thesphere
ofconventionalproductadvertisingandmarketing,hopingtoswayprimarily
brand-orientedbuyingdecisionsintheirfavour.
Recentexperienceonvarious4x4eventshaveprovedjusthowtoughthisbrand
equitynutistocrack–especiallywhenattemptingtochallengeingrainedbrand
loyalty.Justliketheage-oldToyotaversusLandRoverdebate(nowexpanded
andheightenedtoincludethelikesofthenewFordRanger,VWAmarokand
IsuzuKB),manypeoplearedeeplyentrenchedinaparticularbrandandview
competitorswithcaution,andsomeevenwithcontempt.
While pricing is the overriding factor that dictates tyre choice for most
consumers, the hard-core 4x4 enthusiast, in particular, is often a stubborn
3 4 • T a l k i n g T y r e s
Colin Mileman is a freelance motoring journalist, photographer and advanced driving specialist with over 13 years of experience in this
field. As a former editor of Topcar and Topbike magazines, he’s as enthusiastic about cars and bikes as they come, and has extensive
knowledge of all motoring-related matters, including the topic of tyres, having run the annual and highly regarded Topcar tyre tests for
several years.
beast that vehementlyprotects their trustedbrandmix. Themost common
argument is that they’veusedaparticulartyrebrandorspecificproductfor
years,andithasneverfailedthem.
Accordingly,newchallengersareviewedwithdisdain,andthey’rerarelywilling
tocomeoutof their shell toevenconsidercompellingalternatives that are
newer,incorporatemoreadvancedtechnologyandmaybeevenbettersuited
totheirneeds.
It’sasituationthattheownersoftherelevantbrandwillrelish.Butwhenthe
consumerbecomesstubbornandhabituallyingrainedintheirchoices,theyare
infactlosingoutinthelongrun.
Evencomparativetestsstagedbyindependententitiesareoftenviewedwith
scepticism–andthatappliesasmuchtovehiclesasitdoestotyres.When
anewcontendertakesthelaurels,thedie-hardsimmediatelythrowuptheir
arms,hurlabuseandcryfoul.
Aswithnewcarpurchases,gettingbumsinseatsisprobablythebestwayto
openmindsandbuildnewallegiances–butit’sanexceptionallydifficultthing
todowithtyres.Retailersdon’thaveafleetofdemotyrestofittoallmannerof
vehicles,andeveniftheydid,ashorttestdrivewouldreveallittle,ifanything.
Morecomprehensivecustomerdays,drivingcoursesanddedicatedeventsare
probablythemosteffectivesolution,withfirst-handexperiencerapidlyswaying
previouslyunflappableloyalties.Buttheyaretime-consuming,difficulttodoon
alargescaleandinherentlyveryexpensive.
However,sucheventsarecertainlycapableofpreachingtotheunconverted,
creating unofficial self-appointed brand ambassadors that become equally
vociferousintheirenthusiasmforthenewproduct,andthebrandingeneral.
Wearedrivenbyan informationage,andalthoughit’softendifficult tofind
sense among all the clutter, consumers should be arming themselves with
reputablesourcesofinformationandmakingcleverchoicesratherthansimply
stickingtosameold,sameold.
Brandequity isprobably themostprizedandhardest-foughtcommodity
inbusiness,butit’sabig,brightandextremelycompetitiveworldoutthere
withanunprecedentedrangeofoptions–andtheballisverymuchinthe
consumer’scourt.
Page 38
3 6 • G o o d y e a r N e w s
Goodyear eagles give sporty new Ford its wings
BenchmarkUHP(ultrahighperformance)tyreGoodyearEagleF1Asymmetric2hasbeen
selectedastheonlyrubberfitenoughfortheFord’ssportynewFocusST.
AccordingtomotoringjournalistColinMileman,inarecentarticleforSATreadsmagazine,
theFocusSTis“atrulybrilliantcarthatsetsnewbenchmarksforseriouslyhothatchback
performance,fantasticdriverinvolvementandsheerentertainment”.
TheonlytyreapprovedfortheSTisGoodyear’slatestgenerationEagleF1Asymmetric2
235/40R18956XL.AccordingtoMileman,“therelationshipbetweencarandtyreisso
closelyalignedthatyoualmostdarenotdeviatefromtheoriginalequipmentspecification”.
Dustine Gascoyne, Marketing Director, said
the long-term requirements of Goodyear’s
markethadbeenanalysedandmanufacturing
facilities developed to align with customers’
ever-changingneeds.
“Thereismoredemandfor4x4tyresforSUVs,
for example. We are aligning our quality and
productperformancewithtrendsinthemarket
and with international competition. We’re
alsostayingastepaheadofourcustomersto
ensurewewillalwaysbeabletodeliverexactly
whattheyneed.”
Goodyear’s PPQ audits are conducted by
five international auditors, each an expert
in an aspect of tyre manufacture. Theo
Bezuidenhout, Technical Team Leader for
SystemsandAudits,explained thatauditsare
usuallyplannedbutthelatesthadcomeoutof
theblue.
“In September 2012, we celebrated when
the Uitenhage plant achieved its highest ever
PPQ score. Most recently, in February this
year,PPQauditorsdropped inunannounced.
Still, theauditscorewasveryhigh.Goodyear
SouthAfricacontinuestogofromstrengthto
strength.
“ThePPQauditmeasuresProductandProcess
Quality. Through a stringent checklist of
international criteria, these auditors evaluate
the extent to which our process control
Goodyear Plant Investments ensure Quality Productsone of Goodyear’s recent highlights was the continued investment
in its manufacturing facility in uitenhage, and consequent further
increase of its 4x4 and uHP (ultra high performance) capacity. Aside
from the installation of two new tyre building machines and four new
presses, final finish areas were also upgraded and the impact of these
investments were clearly reflected in best-ever, international standard
Process and Product Quality (PPQ) audit scores.
deliversconsistent,repeatablequality.Clearly,
the higher the score, the better our control
overprocessandquality,whichinturnmeans
lessbadproductandfewerreturns.Ultimately,
our customers are assured of the consistent,
excellentqualityofGoodyear’sproducts.
“Goodyear’scontinuedinvestmentsintoplant
and machinery definitely impact positively
on our PPQ performance. However, these
excellent scores can also only have been
achieved througha fantasticeffort, especially
from a team that has experienced intense
pressuresandchallengesduringthepastyear.
They are all to be congratulated for working
togethertowardthiscommongoal.”
Page 39
G o o d y e a r N e w s • 3 7
Tyre of Choice for Rhino Protection
SouthAfricanheartsbleedeverytimeoneofourpreciousrhinosloses
its horn to poaching. Goodyear supports this battle by sponsoring
rugged, high performance 4x4 tyres to help give the anti-poaching
teamsanadvantagewhenpatrollingthecountry’snaturereserves.
GoodyearWranglersarethetyreofchoiceforrangersontheForever
WildRhinoProtectionInitiativeteam.Thehighlyeffectiveinitiativewas
givenaboostwiththesponsorshipofsixVolkswagenAmarokbakkies
fromVolkswagenCommercialVehicles in2011, and the contractwas
renewed in 2012 and 2013, with Goodyear coming on board for a
second year. The vehicles serve various reserves and anti-poaching
unitsacrossthecountry,eachmanagedbytheForeverWildheadoffice
team.
“TherangersmadeaspecificrequesttohaveGoodyearWranglersfitted
to the vehicles,” said Wilderness Foundation’s Conservation director,
Matthew Norval. “When the new Amaroks came in, they were fitted
with other tyres. Our rangers asked if Goodyear could sponsor the
Wranglers againas the tyresofferbetter tractionandaremuchmore
robustthantheothertyresthey’vetried.”
Goodyear Gears up for 2013 Truck Racing Season
Goodyearisgearingupforits9thyear
supplying race tyres to the European
TruckRacingChampionship. The ten-
roundchampionshipstartedatMisano
inItalyinMaythisyear.
Goodyear Racing tyres, which have
been specifically designed and
developed for the European Truck
Racing Championship, are the only
typeapprovedbythesport’sgoverning
body, the Federation Internationale
de l’Automobile (FIA). They will be
availabletoallentrantswithsupplyand
supportateveryrace.
Lize Hayward, Goodyear’s Group Brand Communications Manager,
saidGoodyear isproudtobepartof thissponsorshipteam. “Weare
honoured that the Wranglers are indeed the rangers’ tyre of choice,
andthatwecancontributetotheirsafetyandcomfortoverchallenging
off-roadterrain.”
Go GET ‘EM! – lize Hayward (Goodyear Group Brand Communications Manager) and Rodney Visser (Security Manager – Shamwari Group) with one of the anti-poaching vehicles newly shod with Goodyear Wranglers.
lAracetruckweighsatleast5500tonnesandtravelsatspeedsofupto160km/h.
lTreadplaysavitalroleintheperformanceoftruckracingtyres,withstanding very high temperatures as the truck fights foroptimumgripduringarace.
lAll these tyres have RFID (Radio Frequency Identity), whichgiveseachtyreauniqueidentity.RFID,alsocalled‘chipintyre’technology,involvestheplacementofamicrochipinthetyre
duringconstruction.Thischipcontainsdatarelatingtothetyre,whichallowstheFIAtomonitoreachtyretoensureallracingteamskeeptotheregulations.Thankstothesuccessoffieldtrialsandtruckracing,Goodyearhasrecently introducedthistechnologyintoregulartrucktyres.
lThesetyresfeatureaspecificallydesignedtreadwhichprovidesexcellentgripinbothdryandwettrackconditions,performingconsistentlyinninedifferentcountries.
FAsT FAcTs
Page 40
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Page 41
TRIANGLEBECOMINGGLOBALPLAYER
In a bid to cement and strengthen its presence as a global tyre player, Chinese
company, Triangle Tyres recently held a Summit in Shanghai, China. Exclusively
devoted to Triangle’s efforts to globalise its business as effectively as possible,
this global event marked an important milestone in the company’s history in
demonstrating its desire to enter a phase of decommoditisation with respect
to its products. Marketing as a primary driver of this function, and a key part
of Triangle’s aim to become a ‘globalised tyre company’ was a recurring theme
of the Summit.
CFP Tyres (Pty) Ltd was invited to attend the Triangle Group’s 2013 Global
BusinessSummitat thePudongShangri-LaHotel,Shanghaion18May2013.
Over 450 delegates, including Chinese Government dignitaries and Triangle
employees and customers from around the world, attended the Summit, and
CFPwasoneofaselectedfewcompaniesworld-wide,toreceiveanexclusive
“StrategicPartnershipAward”fromtheTriangleGroup.AnachievementCFPis
veryproudof!
CFPhasbeenthesoledistributorforTriangleTyreinSouthAfricasince1999.
www.satreads.co.za
Reuters reported on May 17 that unnamed outside “industrial and financial
investors are in talks to buy a stake in Camfin,” which holds controlling interest
in Pirelli SpA.
Pirelli chairman andCEOMarcoTronchetti Provera controlsPirelli “through a
complexchain ledbyhisMTPSpAholdingvehicleandcomprising twoother
companies,GPIandMilan-listedCamfin,”Reutersreported.
Camfin hold a 26% interest in Pirelli, and is itself 42.6% owned by
Tronchetti Provera and12%by theMalacalzas family,which is also the
secondlargestinvestorinGPI.
TronchettiProveraandtheMalacalzashavereportedly“beenlockedinadispute
overhowbesttorepay”Camfin’sdebt,whichsatat385millioneurosattheclose
ofMarch.
Itwassaidthatthenewinvestors“wouldhelpCamfinrepaydebtandgivethe
investor a foothold in Pirelli.” An MTP spokesman said “contacts and talks”
betweenthevariouspartieswereingoing,butthat“therewerenot,andarenotat
present,anyagreements,evenpreliminary,inthisregard.” www.satreads.co.za
NEWINVESTORSLOOKINGATBUYINGSTAKEINPIRELLIHOLDER
Schaeffler Group yesterday gave notice that it is ending its mutual
investment agreement with Continental AG. unless there is a change of
heart, the agreement will terminate in May 2014.
SettledinAugust2008,theagreementgovernsthecooperativerelationship
betweenthetwocompanieswithSchaefflerasthelargestsingleContinental
shareholder.Schaefflercurrentlyholdsa49.9%shareofContinentalAG.
Schaeffler said the investment agreement “no longer has any practical
relevanceforeithercompany”since“keyprovisionsoftheagreementexpired
inAugust2012.”Schaeffler added that it andContinentalhave “benefitted
fromtheirexcellentandpragmaticcooperationforyears”andwillcontinue
thiscooperationinthefuture.
“AsContinentalAG’smajorshareholder,weareverypleasedwithContinental’s
achievementsover thepast fewyears,” saidSchaefflerGroupowners and
chiefshareholdersMaria-ElisabethSchaefflerandGeorgF.W.Schaefflerina
statement.“WeconsiderourinvestmentinContinentalalong-termstrategic
investmentaimedatsustainablyincreasingthevalueofContinentalAG.”
Comments made by Continental CEO Elmar Degenhart had perhaps a
less enthusiastic ring to them. “Notice of termination of the investment
agreementisunderstandablefromthevantagepointofSchaeffler,ouranchor
shareholder,”hesaid.“Weareconfidentthatthetwocompanieswillcontinue
theirverygoodandgoal-orientedcooperationonintothefuture.”
In2008,SchaefflerGrouppaid12.1billioneurosforConti–fivetimesitssize
inrevenue–inaso-called‘stealthtakeover.’Offeringtobuyupalloutstanding
Continentalshare,Schaefflerendedupholdinga90%stakeinthetireand
autocomponentmaker,despitesettinganownershiplimitof49.99%.
Asaresultofbeingover-subscribed,Schaefflerhadtoborrow16billioneuros
tofinanceitsContinentalacquisition,andwithinhalfayearwasstrugglingto
financetheresultinghighdebtservicepayments. www.satreads.com
SCHAEFFLERENDINGCONTIINVESTMENTAGREEMENT
W o r l d N e w s • 3 9
BRIDGESTONEWINSPATENTRIGHTSLAWSUIT–INCHINA
Bridgestone Corp. has won a design
patent infringement lawsuit against China’s
Qingdao Genco Industrial Group Co.
BridgestoneallegedthattheQingdao,ShandongProvince-basedQingdao
Genco IndustrialGroupcopiedapatentedgroovedesignonsomeof its
mediumtrucktyres,whichwerefounddisplayedinacatalogue.
Thesuitwasfiledandwon inQingdaoCity IntermediatePeople’sCourt.
QingdaoGencoIndustrialGroupreportedlydoesnotplantoappeal.
“The Bridgestone Group will continue working to maintain and enhance
thevalueofitsbrandsbytakingthenecessaryactionstoprotectitstrade
secretsandintellectualproperty,”thetyremakersaidinastatement.“This
includesreportingpatentinfringementstotheappropriateauthoritiesand
seekingproperredressthroughthecourtsystem.” www.satreads.co.za
Page 42
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