Agricultural sector takes a hit Michelin’s Andre Bonnet outlines plans for SA market Apollo sells SA stake to Sumitomo Rubber Industries
Vol 19 • June 2013
Tyre Imports – Have the tables turned?
Focus on Tyre IMPorTs
New multi-terrain tyre from Cooper
a set of the new Michelin Primacy 3 tyres courtesy of Michelin SA!
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Introduction • 1
Contents
A
the
one-on-one with Andre Bonnet Michelin SA’s Managing Director ............................
3
Focus on Tyre Imports ..........................................................................................
9
Manufacturing New Cooper Multi-Terrain Tyre available in Southern Africa ................. Win a Set of Michelin Primacy 3 Tyres! ................................................. Dunlop Awarding a Jaguar Xf at Top Gear! ............................................. Goodyear Plant Achieves highest audited quality scores ever .............. Apollo Tyres and Sumitomo Rubber Industries strike deal in Africa ...... New Goodyear Call Centre Commits to 24/7 service ...........................
17 18 18 23 27 28
conti corner General Grabber MT conquers Africa! .................................................. Grabber MT launched at Rust de Winter ...............................................
24 25
Industry news Fast start for Tyrexpo Africa 2014 as exhibitors from all sectors sign up for Johannesburg show ............................................................. Tyrecor secures distribution rights to Mitas ...........................................
30 30
Brand Equity: Changing mindsets .........................................................
Staying with imports, we also bring you an exclusive interview with the man at the helm of Michelin Tyre Company SA, Andre Bonnet, who outlines their ambitious plans for the company and also talks about the release of some exciting new products in the domestic market, among them the Michelin
Triangle becoming global player ............................................................ Bridgestone wins patent rights lawsuit – In China ................................. New investors looking at buying stake in Pirelli holder ......................... Schaeffler ending Conti investment agreement .....................................
39 39 39 39
competition, subscription, Website ........................................
40
Front Cover: www.istockphoto.com editor
Liana Shaw
Technical consultant
Wray Shaw
reproduction
Diane van Noort
Printing
Tel: (011) 658 0011 T YPO (011) 658 0010 – Colour Printing Specialists Fax: Cell: 082 851 6777 Prestige Bulk Mailers E-mail: satreads@mweb.co.za Liana Shaw Website: www.satreads.co.za
Advertising
Are importers being subjected to unfair business practices? In this edition, we examine some of the pressing issues surrounding the importation of foreign brands into South Africa, particularly the recent scrapping of the rebate on herringbone tread tyres, which has sent the agricultural sector into a tailspin. Precisely what prompted this, or who, remains a subject of hot debate, as our story on page 9 will illustrate. Interestingly too and according to multiple import companies, in some cases, locally produced tyres are now cheaper than imported makes, thereby posing new challenges for the importers who have traditionally competed in this market on price.
36 36 37 37
World news
Publishers
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.
33
Goodyear news Goodyear Plant Investments Ensure Quality Products .......................... Goodyear Eagles give sporty new Ford its wings ................................... Goodyear Gears Up for 2013 Truck Racing Season .............................. Tyre of Choice for Rhino Protection ......................................................
editor
We could not substantiate this claim at this time, but a number of dealers we spoke with did confirm that some local makes and sizes were currently selling at more favourable prices than many imported makes, which is surprising, to say the least.
Talking Tyres
Distribution
note from
Sky Publications cc PO Box 702 Douglasdale, 2165
XWorks (complete with Accidental Damage Guarantee!) and the Michelin Primacy 3 for the passenger market. *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 Sumitomo Rubber Industries, a turn of events that has sent shock waves throughout the industry. Details of this transaction and its long-term effects to Apollo SA remain sketchy, but we will provide further information as and when it becomes available. Don’t forget to stay in touch via our International Tyre Portal – www. satreads.com – which features fresh stories relating to the local and international tyre sector daily! Stay warm….till we meet again in the Spring.
O n e - o n - O n e • 3
ANDRE BONNET
on Michelin’s
Big Plans for the
SA Market
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 costconscious market. An exclusive interview with the man at the helm recently revealed some key strategies that are heralding a fresh approach to Michelin’s South African operation. Andre Bonnet explains…..
4 • One-on-One
We believe that Michelin SA has adopted a fresh approach to the way it
What about availability? Can we deliver the required volumes to our
conducts business in this market. Would you care to elaborate on this?
customers at the required times?
In keeping with the Michelin Group’s global philosophy, Michelin SA is set
We have elevated our service offering from being the ‘worst supplier’
to adopt a South African approach to its domestic business via a growing
in the eyes of one of our important customers, to being their ‘best
number of home-grown personnel which have been identified and suitably
supplier’ in the space of two years, simply by paying attention to the
groomed to assume responsibility for key functions within the company.
basics and our willingness to operate in a transparent manner. We are not perfect, and we must be able to admit to our mistakes whilst
Simply put, Michelin Tyre Co SA wants to be viewed as a local company,
informing the customer as to how we plan on rectifying any legitimate
not a European one. Up until last year, senior positions were mostly
concerns they may have.
occupied by expatriates but this is rapidly changing with the appointment of carefully selected individuals from the local market that are actively
From our end, we have reinforced our supply chain team and initiated
being prepared to take up some of these key positions.
training programmes aimed at improving internal communication. Also in our favour, is that we now operate via a Head office that is much
Is this with the aim of them eventually taking over the reins of the
closer to us in Dubai.
company? In 2010 the customer in question was compelled to operate on That is correct. We realise that this is a long term process, but our
excessively high stock levels due to our inability to supply. Today, I am
aspiration is to nurture talented individuals to the level where they are
happy to report that he is working on a lower inventory. These are the
suitably equipped to run the company. Together with the Human Resources
kinds of partnerships we are looking to develop with our customers.
Department, these candidates are currently being developed to not only fill
Business has to be sustainable, for both parties concerned.
specific openings, but also with a view to sustainable career paths. Are you still actively promoting the BFGoodrich brand? A somewhat unique but refreshing strategy for a global tyre manufacturer to take?
Although the Michelin brand is our priority, BFGoodrich remains an integral brand for us and this will become ever clearer during the latter
Michelin Tyre Company has ambitious goals for the future – all of which
patter of 2013 when we introduce new initiatives aimed directly at our
are publicly known – and in order to achieve these objectives, we will
BFGoodrich customers in this market.
be focusing heavily on emerging markets such as South Africa. Michelin Tyres SA is here, not only to stay, but to grow.
Speaking of customers what is your view on the multi-alliance culture that exists in our market?
What would you estimate your current market share in SA to be? The culture you speak of is not in keeping with our philosophy. In my To be quite frank, it doesn’t interest me. Our focus is not on numbers
opinion, there is too much prostitution evident in our market! We are
but rather on preserving the quality of the product. For this reason, we
looking to trade with the type of customer who reflects the quality of
have appointed two senior field engineers whose primary function is to
our product and provides the service that runs alongside the Michelin
uphold and protect the Michelin name in the marketplace.
brand. In this sense, we expect our dealers to make a stand against the multi-alliance trend.
The popular Chinese saying ‘when a tiger dies, what is left behind is his skin, but when a man dies what is left is his name, so take care of your
To assist them in making the right choice we are busy with a number of
name’ instantly springs to mind. We want to take care of our name in
exciting initiatives this year, among them, the opening of our dedicated
the marketplace.
Michelin Truck Service Centres explicitly aimed at enhancing our offering to the commercial sector.
What other initiatives are in place to ensure that you achieve this? Tell us more about these service centres. How many will be launched We are constantly asking ourselves: can we deliver the required
this year?
levels of service around the quality of the product? If not, where can we improve? Are our deliveries and invoicing systems up to scratch?
There are four shops in the pipeline – with all sporting new signage and
6 • One-on-One
Michelin standard operating procedures which are set globally - with the
drivers will be sent to the location requested where one driver will drive
first one in Villiersdorp, scheduled to open on 14 June.
home the car of the BibAssist member.
Our value proposal for these selected dealers is to assist them in
And later this year we are launching the new 750R16 HD (heavy duty)
boosting profit margins via a strong emphasis on health and safety
tyre that again, has been expressly designed for our unique road
issues, a dedicated product range (Kormoran), plus a mobile service
conditions, to service the light truck and delivery van segment of the
vehicle flaunting the Michelin corporate identity.
market.
This exciting new development is a culmination of Michelin’s Commercial
Rumour has it that Michelin will also be moving premises this year?
Policy. Unlike the passenger market which depends on regular brand awareness, product warranties and the like, the commercial segment
That is correct. In December 2013, we will be moving to Clear Water
requires a great deal more effort and attention. And unlike the 7.4
Office Park, Atlas Road, in Boksburg. We have outgrown our present
million odd motorists who we are unlikely to ever meet, the commercial
premises and as our lease expires in February 2014, this will be the
market offers the opportunity for greater interaction with our end-users,
perfect time to engineer a move of this kind.
something we want to capitalise on. Added to this, our warehouse in Alrode is also becoming cramped and Dedicated Michelin service teams and vehicles to render assistance to
we are looking to expand on that level as well. If all goes well, we hope
A and B transport fleets have been established, their aim being to travel
to build our own warehouse premises designed according to Michelin
around the country, providing a weekend service when the majority of
global specifications.
vehicles are on site. How do you see Michelin SA fitting into the global picture for the Aside from providing maintenance and technical assistance, their role is
Michelin Group?
also to educate the customer on how to derive a favourable CPK out of our tyres, by following the Michelin principles that include maximising
Between the years 2010-2015, the Michelin Group has committed to
the life of the original tyre, regrooving and retreading with Recamic
a capital expenditure spend of 2billion Euros a year, monies that will
tread.
be used to increase capacity by way of a new passenger and light truck plant in Brazil, followed by the establishment of the biggest truck
That some fleets are achieving a mileage of one million kilometres is
plant Michelin has ever built in Chennai, India. Expansion is also being
testament that Michelin’s cradle-to-grave philosophy works, if followed
planned for the Lexington plant in the USA to boost earthmover tyre
correctly. That is our value proposition.
production. In total, by the year 2015, Michelin hopes to invest in the region of 1.8 and 2.2 billion Euros in capital expenditure.
Are you planning to launch any new products this year? Suffice it to say the Michelin Group, which includes the South African In January of this year we introduced the new XWorks tyre, designed specifically for tough road conditions such as construction sites. The new tyre, which has been developed expressly for emerging markets, comes with a six-month Accidental Damage Guarantee, such is our confidence in the XWorks. At the end of April we launched the Michelin Primacy 3 tyre, Safety to the Power of 3 which delivers excellence in wet and dry braking as well as excellence in cornering in the wet. The Michelin Primacy 3 comes with BibAssist which comprises Roadside Assistance, (assistance in the event of a flat tyre, mechanical breakdown etc.), Michelin Concierge Service (your very own personal assistant that can assist with finding any product or service at a location convenient to the member), and DriveMe, which is a personalised driver service for people wishing to go out and enjoy a few drinks and return home safely. A vehicle with two
facility, is financially strong and ready for the future.
Michelin Advertorial • 7
All-Terrain Michelin X Works now with Damage Guarantee Michelin’s X Works, the allterrain truck tyre that is robust on site and long lasting on road, now offers you an exclusive guarantee against accidental damage*. *For each Michelin X Works purchased from January 1 to December 31, 2013, Michelin is offering you an Accidental Damage Guarantee* covering the first six months’ use, from date of purchase
resistance to cuts and scrapes and superior load
Accidental Damage Guarantee
carrying capacity while at the same time being
When tyres are used both on and off road, the
cost-effective on the road. To meet the need
risk of accidental damage increases considerably.
for tyres that are safe and reliable, the Michelin
Tyres used on worksites and quarries, as well as on
X works range features a tread design that
roads, are subject to the most extreme conditions.
With the Accidental Damage Guarantee*,
reduces the risk of stones lodging in grooves
Michelin reimburses you with a new tyre if it
and ensures that water, and mud, is effectively
is accidentally damaged in the first six months
evacuated when driving on wet/muddy roads.
of use. So you can enjoy the durability and safety of your new Michelin X Works tyres with complete peace of mind.
will thus address an issue that is very important for customers.
provides enhanced resistance to cuts and
XZY for all positions and XDY for the drive axles,
for challenging conditions of use, while the
and come in sizes 315/80 R 22.5 and 12 R 22.5
sidewalls have extra protection to reduce the
(12R22.5 available in August 2013).
risk of lateral damage.
The Michelin X Works embodies the Michelin
The Michelin X Works is also designed to be long
Total Performance developed by the Michelin
lasting. Its optimised contact patch distributes wear
Group, which consists of simultaneously
more evenly, which means greater total mileage.
benefits fall into three categories: enhanced safety, greater cost-effectiveness and increased environmental protection.
Works and its accidental damage guarantee
Because of its robustness, the Michelin X Works scrapes. Its architecture has been optimised
of the type of tyre or range. For truck tyres, the
repercussions for customers. The Michelin X
More cost-effective
This new range of tyre is available in two patterns,
improving all areas of performance, regardless
Tyre incidents can have major economic
An Improved environmental Footprint Like all new Michelin truck tyres, the X Works can be retreaded. Improved durability means the rate of retreadability is greatly increased. The Michelin X Works casing is designed to be used more than
safer
once. Michelin recommends that when the tyre
Designed for use on roads as well as in and
has a remaining tread of +-3mm you send the
around worksites, the tyre delivers heightened
casing in to be retreaded with Recamic.
The new Michelin X Works truck tyre comes in two sizes and is available at all leading commercial tyre outlets throughout South Africa. To find out more, visit www.michelin-xworks.co.za. * terms and conditions of the Accidental Damage Guarantee at www.michelin-xworks.co.za
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Fo c u s o n Ty r e I m p o r t s • 9
IMPORTS – HAVE THE TABLES TURNED? 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
clamping down on questionable low cost products and the illicit practices 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) and ITAC (International Trade Administration Commission for South Africa). And according to the import segment of the market, their efforts have not
over the last few years. Price is the primary
been in vain. Local representatives of some of the world’s leading tyre
reason for the rise in import figures, with
role in securing a presence for foreign tyres in this market, this is no longer
low cost producers from emerging countries
makers are alleging that although price may have once played a significant case. They further suggest that the tables have turned with respect to the market dynamic, so much so, that imported tyres are now receiving the
continuing to target our market with products
‘short end of the stick’, so to speak.
that are often of questionable quality;
“I never thought I’d see the day when imported passenger tyres would sell
availability is another, especially as it is not
for more than some locally produced makes, but this is precisely what is taking place,” said Charl de Villiers, MD of Tyrecor. I continuously circulate
economically viable for local tyre plants to
amongst dealers comparing pricing from local and imported brands for the
comprehensively cater to the diverse needs of
being echoed by opposition companies such as Tubestone and CFP Tyres.
the market by way of application and tyre size.
“It is becoming increasingly more difficult for us to compete against the
various segments, and this new development is alarming.” His concerns are
local makes,” they confirmed. So, not all imports entering our market potentially pose a risk to the consumer. The local four manufacturers – Bridgestone, Goodyear, Apollo
But Julio Fava, Executive Manager Export, OE and Agri for Bridgestone SA
and Continental – are all compelled to import tyres on a frequent basis
disagreed: “Local products remain more expensive than imports, it’s only
to supplement their product range. Plus, SA’s status as a global player
the differential that has reduced.”
demands that the SA consumer has access to the world’s leading tyre brands from Europe, USA, and the Far East.
“We are extremely surprised to hear of these rumours,” echoed Riaz Haffejee, CEO, Apollo Tyres SA, “since this is contrary to our experience.”
With that said, the rise of ‘dubious’ operators who are dumping low cost tyres in the market, whilst also attempting to evade paying the required
The price issue aside, importers are faced with their own unique set of
import duties, is posing a significant threat to the local manufacturing
trading challenges. Currently in the spotlight is the sudden withdrawal of
industry as well as to the reputable importers, not to mention the end user.
the agricultural rebate applicable to tyres entering the country under the
For over a decade, local tyre companies have been campaigning for playing
Tariff Heading 4011.61 This rebate was apparently set in place some years
fields to be levelled, something which they claim can only be achieved by
ago to assist the agricultural sector that is compelled to import herringbone
10 • F o c u s o n Wa s t e Ty r e s
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F o c u s o n T y r e I m p o r t s • 11
tread tyres since many sizes in this category are not
Trade Administration Act, 2002, administered by
being locally produced, and the local companies
ITAC. Whilst SARS administers the goods imported
cannot effectively meet growing demand.
in terms of the Schedules to the Customs and Excise
As of May of this year, the rebate in question was
duties and any other conditions that may also apply
It is becoming
scrapped, allegedly with no warning, under instruction by SARS, the administrator. What pre-empted this
are determined by ITAC in terms of trade policy.
increasingly more
development has been the source of major contention
“The rebate item for herringbone tread tyres as well as
difficult for us to
the rebate item for racing car tyres required approval
compete against the
from NRCS, so by law, NRCS was the responsible
and finger-pointing with no one party seemingly willing to take responsibility.
Act, 1964, the levels of rebates or ordinary customs
❝
Our investigations into the matter first led us to NRCS,
local makes
the alleged instigator of the withdrawal process by way of a special application made to ITAC, which Dries
entity to approve the tyres imported under the respective rebate items.
❞
He added: “The deletion of rebate item
van Tonder, Subject Specialist for NRCS categorically
460.07/4011.61 for herringbone tread tyres and the
denied. He had this to say, by way of explanation:
amendment of rebate item 460.07/4011.10 for racing
“NRCS is merely the National Regulator, there to
car tyres were published in the Government Gazette
ensure that any passenger or commercial tyre entering our borders is of
of 15 March 2013 to give effect to the request by the Minister of Trade
an acceptable quality as laid out by the Standards in place. As herringbone
and Industry to implement the recommendations made by the International
tyres (traditionally used on tractors and other slow moving vehicles), do not
Trade Administration Commission in Report No. 423. ITAC also gave notice
pose a danger to the consumer, they are not bound by the homologation
of its intentions to review the said rebate items through Notice No. 570 of
process, and therefore do not require inspection.
2012, published in the Government Gazette of 20 July 2012.”
“Therefore, inspecting containers of herringbone tyres at port sites for
But despite the publishing of this Notice, it appears the import sector was
the purpose of financial rebates, was not only depleting our manpower
unaware of ITAC’s intention to cancel this agricultural rebate, claiming that
resources, it was creating such a backlog that we were unable to effectively
unlike the SATMC, which was approached for comment, they were not
meet our responsibility towards the passenger and commercial tyre sector.
afforded the same opportunity.
NRCS indicated that we do not wish to be involved with the inspection
Dr. Etienne Human of the SATMC confirmed that the SATMC had in fact
of herringbone and sporting tyres as well as the subsequent issuing of a
been approached for comment, but the controversy deepens further with
rebate certificate. Never did we indicate or question the reason for the
Bridgestone SA and Apollo Tyres apparently the only local manufacturers
rebate or the cancellation of the rebate.”
in the know. When approached for comment, Bridgestone admitted that
Upon instruction from SARS that the rebate had fallen away, we sent out the relevant correspondence, informing the industry that we would no longer be performing inspections for the sake of rebates.” The mystery deepens further with the subsequent unearthing of a document dated 30 January 2013 that was submitted to ITAC that clearly states that the review follows a notice by the NRCS that it would no longer issue certificates for the purpose of the relevant rebate provisions. * 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
12 • Fo c u s o n Ty r e I m p o r t s
they were part of the discussions as a member of the SATMC, and were therefore aware of the outcome of ITAC approving the application by NRCS, whereas Goodyear claimed they knew nothing about it. “We were neither consulted, informed nor pre-warned about the cancellation of the rebate on imported herringbone design agricultural tyres smaller than 36” rim diameter,” said Dustine Gascoyne, Goodyear Marketing Director. racing fraternity takes control Whilst the debate around who was or should have been consulted prior to this decision being taken rages on, the racing fraternity appears to have achieved the impossible, and is seemingly the only market segment to still enjoy rebates under this controversial Tarriff Heading. In an attempt to rescue the situation, they formed their own Inspection Committee to take over this function, and as a consequence, and with no assistance required by NRCS, the rebate on racing tyres imported into South Africa remains in place. Precisely how they were able to achieve this, and reasons as to why the agricultural sector was denied the same courtesy, is also open to debate. Robin Houghton, ATS, explained: “Bear in mind that the volumes of racing tyres imported into the country, along with the number of importers, are very small, and as such, administering these tyres is a relatively easy procedure. I believe this is why the racing sector has been granted leave to self-govern in this matter, that, plus the fact that the process is controlled by Motor Sport South Africa (MSA), which is an internationally recognised body responsible for controlling the sporting events in the country where tyres imported specifically for motorsport purposes would be used.” But once importers of agricultural tyres became aware of a potential problem around inspections and suggested establishing a similar selfregulated, self-funded Technical Committee for the same purpose, their suggestion was allegedly shot down. 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 the system.” Notwithstanding, industry players claim this is already the case. They allege that the numbers of imported racing tyres currently on record are so vast,
that dubious operators have obviously found a way to evade paying duties by classifying passenger tyres under racing tyres. Said Haffejee: “Under invoicing by unscrupulous importers at values well below raw material prices is the major hurdle in competing on a level playing field.” Added Kruger: “Dubious tyre importers will always be there and due to the import duties in place, they will continue seeking new ways and means to evade payment. I believe that if duties were to be abolished, this would automatically level the playing fields, and that these dubious operators would automatically disappear.” “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 cheap product at least once. The effect on our business is a diminishing market with great pressure on the production cost and the feasibility of local production. The current economic climate also contributes to the consumer looking for cheaper product and this product may not be the best value for money product, but simply cheap.” Are importers being unfairly targeted? So, what of this perception that tyre importers are being unfairly targeted? Said de Villiers: “As importers we are experiencing increasing pressure from government in the form of poorly executed campaigns to rid the industry of ‘dubious importers’ who under-declare values and use wrong tariff headings with rebates when importing tyres. In September last year SARS began stopping containers without giving us detailed reasons for the
O n e - o n - O n e • 1 3
14 • F o c u s o n Ty r e I m p o r t s
stops, incurring huge losses for us. We tried to engage
Where to from here?
with SARS on the matter but were unsuccessful.”
Amidst turbulent market conditions, the local tyre producers are struggling to compete in a
Added Alida Mouton of CFP Tyres: “We believe that pressure from the local manufacturers was the reason
price-conscious market. For them, the scrapping
❝
delayed arrival times but incurred additional costs
unacceptably long and
resulting in loss of sales and higher prices.” Pieter Kruger of Tubestone concurred: “The new tyre companies tried to slow down imports by presenting
of the agricultural rebate on sizes that are locally
Clearance times are
behind these stops by Customs which not only
produced will bring some relief, but like their import counterparts, they will be equally affected by their inability to claim for a rebate on sizes not
often exacerbated by
produced locally. At this point in time, only bias ply
labour unrest and poor
herringbone tyres up to a certain size are locally
SARS with a document stating that imported tyres
weather conditions
were being under-declared, but SARS never took into consideration aspects such as weight, compound,
made whilst Radial Tractor,Radial Row Crop, Radial Implement, Floatation (Bias as well as Radial),
❞
Forestry (Bias as well as Radial) are fully imported.
tread depth etc. We were hammered with storage and
For the import sector, the trading platform is
demurrage bills. The situation was totally ridiculous.”
particularly challenging they say, given the Rand/ Dollar exchange rate, and now the cessation of the
But local manufacturers argued that they too experience their fair share of
agricultural rebate on which so many had come to rely.
frustrations when it comes to importing tyres they require to supplement their range.
At least where the agricultural rebate is concerned and according to
Said Gascoyne: “Port efficiency with respect to container unloading is a
rebate will place the sector under immense pressure and will severely
Johan Pienaar of Agri SA, all is not lost. “Scrapping the agricultural problem, especially in the Port of Durban, which is very congested. We
hamper our ability to remain competitive, especially under the current
have also experienced similar problems with the Port of Port Elizabeth.”
pressures of wage negotiations. We are in negotiations with ITAC and
Apollo’s Haffejee, agreed: “Clearance times are unacceptably long and
should we be able to demonstrate the ability to regulate and police this
often exacerbated by labour unrest and poor weather conditions.”
matter ourselves.”
believe there is a chance for the agricultural rebate to be re-instated
And as for allegations that local producers could well be lowering their prices
“The farming community is dependent on all the assistance it can get,
in order to dispose of excess stock to augment poor export performance to
and costs related to the scrapping of the rebate are already being passed
Europe, this too, is pure speculation, according to the local four.
on to the end user on the part of the tyre importers with potentially dire consequences,” he said. The agricultural sector, along with reputable importers, who have been compelled to up their prices, remain hopeful that a long-term solution can and will be reached, failing which there appears to be little, if any, recourse for the import segment of the industry.
*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.
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M a n u f a c t u r i n g • 17
NEW COOPER MULTI TERRAIN TYRE AVAILABLE IN SOUTHERN AFRICA Cooper Tyres South Africa announces the introduction of a multi terrain
through their paces from sand, mud, gravel and tar and they are more
tyre for the Southern African market, suitable for fitment to SUV’s with
than adequate for this environment. They are, by far, the best tyres we
19” – the Cooper Zeon LTZ.
have had fitted to the Disco 4 to date.”
“We have had a large number of SUV and 4x4 vehicle owners requesting
The LTZ is a hybrid 4x4 / SUV tyre with a 50% on road and 50% off
a 19” all terrain tyre for SUV vehicles that is rugged enough to cope
road capability. It has a modern pattern design with a combination of
with the challenging Southern African conditions” says Jenny Soons,
lateral grooves and functionally patterned tread elements to provide
Marketing Director of Cooper Tyres South Africa. Jenny continued, “the
dependable multi terrain performance. The optimized pitch sequence
Cooper Zeon LTZ has been proven in both America and Australia, and
helps provide even tread wear and low tread related noise. The scalloped
we put the tyres to the test by fitting the 19” Zeon LTZ to Kingsley
shoulder lugs provide traction off road particularly in soft surfaces like
Holgate’s Landrover Discovery 4.”
mud and sand.
Kingsley Holgate renowned South African explorer, humanitarian and
Manufactured in America the Cooper LTZ follows the Cooper Tire
author fitted the 19” LTZ tyres to his Landrover Discovery 4 for the
Company’s aftermarket tyre building strategy of developing strong,
90 day, 3 country expedition to track, research and document the
high mileage 4x4 and SUV tyres. Cooper Tires is a world leader in the
Lubombo Mountain Range northern Kruger National Park to the Ghost
research and development of modern tyre technology. Today, Cooper
Mountain in Mkuze, Northern KwaZulu Natal. “The expedition is all
is the ninth largest tyre manufacturer in the world.
about rhino protection,” says Kingsley, “we have to stop the killing of our rhinos – we all have to do our bit.” Kingsley had this to say about the tyres, “We put the Cooper LTZ tyres
Cooper tyres are available at over 100 dealers in Southern Africa. For further information visit www.coopertyres.co.za or email info@coopertyres.co.za.
18 • M a n u f a c t u r i n g
WIn A seT oF MIchelIn PrIMAcy 3 Tyres! Innovation is the name of the game for iconic tyre maker Michelin,
shop for breakdowns, and
whose latest tyre promises motorists “Safety to the power of 3.” Michelin
other fantastic benefits like
Primacy 3 tyres are now available at Tiger Wheel & Tyre stores nationwide
one night’s accommodation
and when you buy two or more tyres you’ll get a 3 year membership
or a rental vehicle for a day,
to BibAssist free of charge, a programme as remarkable as the tyres
when you break down more than 100km from your destination.
themselves.
Drive Me gives members the option to drink and not drive. Call BibAssist
Based on independent tests, Michelin Primacy 3’s three key safety
at least one hour in advance and a vehicle with two drivers will be sent
characteristics are: excellence in dry braking; excellence in wet braking;
to meet and drive you and up to three passengers home, in your own
and excellence in cornering in the wet.
vehicle. The service allows for six free bookings per year and is available
within a 50km radius of city centres in Johannesburg, Pretoria, Cape
The tyre owes its superior braking and cornering performance to new
Town, Durban, East London, Port Elizabeth and George with new areas
auto-blocking sipes – the slits in the tread blocks – that keeps the tread-
being added everyday
surface in contact with the road and a special tread rubber compound
and tread pattern that optimise grip and reduce braking distance in all
Michelin Concierge Desk is like having a free personal assistant. Need a
conditions.
restaurant booking, concert tickets, accommodation, pool repairs, pet-
sitting or more? Call BibAssist, speak to a concierge and they’ll get back
These proven abilities are reason enough to make motorists head straight
to you promptly with the information and up to three quotes.
for their nearest Tiger Wheel & Tyre, but throw in a free, three-year membership to BibAssist and the desire to own Michelin Primacy 3 tyres
Best of all is the ease with which your membership to BibAssist is
is quite irresistible.
activated. Simply buy two or more Michelin Primacy 3 tyres from Tiger
Wheel & Tyre and the store will automatically register your membership.
BibAssist is the name for three exclusive, additional services that are
free to motorists who buy two or more Michelin Primacy 3 tyres from
For more information on the innovative new Michelin Primacy 3 tyres and
Tiger Wheel & Tyre. These include Roadside Assistance; Drive Me; and
complete details as well as the terms and conditions of BibAssist, visit
Michelin Concierge Desk.
your nearest Tiger Wheel & Tyre store or go to the website www.twt.to.
Roadside Assistance offers emergency roadside assistance for mechanical
Alternatively, turn to our Competition page (page 40), answer the easy
and electrical breakdowns; flat tyres; flat batteries; keys locked in the
question and enter online or via fax to stand a chance to win a set of
vehicle; 10 litres of fuel when you run out, twice a year; towing to a repair
Michelin Primacy 3 tyres!
DuNloP AWARDING A JAGuAR XF AT ToP GEAR! Dunlop will be awarding one lucky customer a luxury Jaguar XF at the
The Top Gear Festival will be held at the Moses Mabhida Stadium, Durban,
Top Gear Festival in Durban (15 – 16 June 2013) – South Africa’s most
following popular demand with an incredible line-up of cars and driving
explosive motoring festival.
talent.
Dunlop tyres are specified and fitted by Jaguar as Original Equipment on
The festival promises an action-packed show presented by Clarkson,
selected vehicle models. As a result of this long-standing professional
May and Hammond and featuring the iconic Stig as well as local
relationship, Dunlop and their Dunlop Zone partners collaborated with
personalities, international stunt drivers and a whole host of Top Gear’s
Jaguar to give customers the opportunity to win a spectacular prize.
trademark special effects. The Street Circuit will also be back - only
Customers purchasing Dunlop tyres through participating Dunlop Zone stores until the 28th of April 2013 will stand the chance of being selected as one of the five finalists who will enjoy an all-expenses-paid trip to the Top Gear Festival. One winner will be drawn, live, at the Dunlop stand during the
this time it’s bigger and better! Visitors will be able to see stunts, races, motoring challenges and some of the world’s greatest cars on the streets of Durban. In amongst the Top Gear festivities, Dunlop will be in the thick of it with
course of the festival and will get to drive off in their very own luxury Jaguar
giveaways and activities, not to mention the live draw for the Jaguar XF.
XF worth over R500 000!
www.dunlopzone.com
WHEN YOUR FLEET’S TRAVELLING THOUSANDS OF KM’S PER DAY, IT’S GOOD TO KNOW THAT THEIR TYRES ARE LOOKED AFTER THAT’S TOTAL TYRE MANAGEMENT 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.
Visit www.maxtsolutions.co.za for more info, or email info@maxtsolutions.com Call: 011 387 2000. 24-Hours: 086 162 9424
DWF COLLECTIVE MX516818
ur
Performance
for Profe
For more information visit www.ty
tyrecor (Pty) ltd, 771 Cincaut Crescent, Saxenburg Bus Blackheath, Cape Town Tel: 0861 TYRECOR Fax: 086 530 2118
e & reliability
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siness Park
22 • One-on-One
Manufacturing • 23
G o o Dy eA r P l A n T Ac h I e v e s
HIGHEST AUDITED QUALITY SCORES EVER A recent international Process and Product Quality (PPQ) audit at the Uitenhage
capacity, ensures that our products retain the quality that is epitomised by the
tyre manufacturing facility has earned the local company its best ever scores,
Goodyear brand.
thanks in part to Goodyear’s steady investments in its African operations. Dustine Gascoyne, Group Marketing Director, said Goodyear’s PPQ audits
“There is more demand for 4x4 tyres for SUVs, for example. We are aligning our quality and product performance with trends in the market and with
were conducted annually by five international auditors, each an expert in an
international competition. We’re also staying a step ahead of our customers to
aspect of tyre manufacture.
ensure we will always be able to deliver exactly what they need.
“The PPQ audit measures Product and Process Quality. Through a stringent
“Aside from the installation of two new tyre building machines and four
checklist of international criteria, these auditors evaluate the extent to which
new presses, final finish areas were also upgraded and the impact of these
our process control delivers consistent, repeatable quality. Clearly, the higher
investments were clearly reflected in best-ever, international standard PPQ
the score, the better our control over process and quality, which in turn means
audit scores.”
less bad product and fewer returns. Ultimately, our customers are assured of the consistent, excellent quality of Goodyear’s products.” Gascoyne said the long-term requirements of Goodyear’s market had been analysed and manufacturing facilities developed to align with customers’ everchanging needs.
Theo Bezuidenhout, Goodyear Technical Team Leader for Systems and Audits, explained that PPQ audits are usually planned but the latest had come out of the blue. “In 2012, we celebrated when the Uitenhage plant achieved its highest ever PPQ score. This year, PPQ auditors dropped in unannounced. Still, the audit
“Goodyear’s continued investment in its manufacturing facility in Uitenhage,
score managed to top the earlier high. Goodyear South Africa continues to go
and consequent further increase of its 4x4 and UHP (ultra high performance)
from strength to strength.”
, 2013 5 1 3 INA Nov. 1 I · CH GHA SHAN
Further information: Messe Essen GmbH · Phone: +49 201 72 44-727 · Fax: +49 201 72 44-435 E-Mail: reifen.china@messe-essen.de · www.reifen-china.com China United Rubber Corporation Phone: +86 10 5865 0277 · Fax: +86 10 5865 0288 E-Mail: reifen.china@chrubber.com · www.reifenchina.com
24 • Conti Corner
General Grabber MT conquers Africa!
‘‘L
ast 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.
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
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
One-on-One • 25
Grabber MT launched at Rust de Winter!
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 hardcore 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.”
T
he 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.
Manufacturing • 27
WHEEL SERVICE EQUIPMENT APollo Tyres AnD suMIToMo ruBBer InDusTrIes
STRIKE DEAL IN AFRICA Apollo 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 the Durban plant which manufactures Truck & Bus Radial (TBR) tyres and Off Highway tyres (OHT) used in the mining and construction industries. Speaking on this development, Onkar S Kanwar, Chairman, Apollo Tyres Ltd said, “This partnership with SRI is a win-win situation for
both organisations. SRI gets a manufacturing location on the continent and control over the Dunlop brand which they also use in many other
countries across the world. Apollo retains one plant in South Africa and has the ability to develop further the markets for its global brands – Apollo and Vredestein.�
  � � �
For a consideration of US$ 60 million, SRI will acquire ATSA, including the Ladysmith plant. All employees of the company, other than those in the Durban plant, will continue with ATSA. Apollo will retain the Durban plant and all employees attached to it. It may be noted that the two entities have made sure that there are no jobs lost in this entire process. Apollo Tyres will continue to sell the Apollo, Vredestein and Regal brand tyres in Africa while focusing on creating and strengthening its own sales and distribution network across the continent. Both companies will also
undertake contract manufacturing of their respective brands at each other’s facility to have locally manufactured products available for the market. Commenting further, Mr Kanwar said, “While we have 2 global brands – Apollo and Vredestein – which we 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 Vredestein branded tyres in Africa, which we have already been selling in South Africa for the past few years.� Apollo Tyres acquired Durban,
LEVEL
2
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www.johnbean.co.za
South Africa headquartered Dunlop Tyres International (later renamed Apollo Tyres South Africa Pty Ltd) in 2006.
28 • Manufacturing
NEW GOODYEAR CALL CENTRE COMMITS TO 24/7 SERVICE Come power failures, electric storms or strikes, there will always be a trained representative on hand at the Goodyear group’s new Customer Service Centre to help keep customers safely on the road. According to Goodyear Supply Chain Director Ettienne de Vries, that’s a “24/7/365 guarantee!” “Whether that customer is a truck driver, desperate for roadside assistance at midnight because he needs to make his dawn delivery deadline, or a tyre dealer in urgent need of specific products for his customer, our team’s mission is to be their helping hand at any time, day or night,” he explained. “It’s a mission in line with Goodyear’s policy of ‘Safety together’ and our global drive to be first with our customers. Our service is part of this partnership promise.” The new, integrated Goodyear Customer Service Centre took its first call on 7 January 2011. In essence, the service provides all customers – dealers, sales force, fleet controllers and end users –with a single communication point with the large organisation. Previously spread between separate centres in Gauteng and Uitenhage, the 21 call representatives are now based on site at Goodyear’s Uitenhage manufacturing plant. “By carefully consolidating and integrating the Goodyear, Trentyre Roadside Assistance and 4Fleet (account handling) customer call centres, the group now shares crucial support structures and technology to ensure the service is never interrupted and customers never inconvenienced,” said De Vries. “The move has synergised the best of people, technology and processes to offer all our customers an even higher level of service excellence.”
The centralised facility is engineered to handle: • Dealer support, including all aspects of sales such as ordering and product availability. • Sales force support, including price changes, bulk order placements and sales reports. • Trentyre’s non-stop Roadside Assistance, which facilitates the repair
The Customer Service Centre in operation – 24 hours a day, seven days a week, 365 days a year.
woman with vast experience, Savahl exudes an almost motherly air about her team and nurtures their wellbeing under the demanding shift schedule to ensure they stay motivated, dynamic and attentive for customers. “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, energised and, of course, customer focused. “Fleets, in particular, experience an element of risk on the road and there is big money at stake, so customers are understandably feeling the pressure. Our job provides the opportunity to turn a potentially negative experience around, actually build on brand loyalty for the Goodyear group and improve sales. “In fact, we like to believe we are an extension of the sales team. Our agents benefit from continuous training and development. They are well informed about products, business processes and systems. Every call is recorded and randomly checked by management to track response quality and end user customer experience. We also receive valuable feedback on a quarterly basis from an independent research company that surveys our customers so we can track their perceptions and continually improve on
or replacement of tyres through the national Trentyre dealer and
our service levels.”
affiliate footprint.
In addition to the Goodyear group centre, a dedicated Export Division call
• Trentyre account administration, to ensure effective inter-branch transfers, invoicing and general enquiries. • 4Fleet Account Administration, which supports fleets with invoicing and general enquiries. • Customer liaison, including a complaints support line for all warehouse and delivery related concerns.
centre assists the group’s African customers stretching from South African borders right up to the equator. “Theirs is predominantly a sales administration function, so these agents are knowledgeable about the systems within each country and are able to establish positive relationships with these customers.” In fact, the call centre covers such a wide area of the group’s service offering that it even provides a useful background for new employees, particularly those in sales. De Vries said, “all graduates-in-training spend four months in the call
Heading the call centre operation is Group Customer Service Manager, Ardiela
centre to help them get a grip on the vast range of products and processes of
Savahl, supported by Operations Manager Vaughn Herbert. A calm, direct
Goodyear.”
One-on-One • 29
30 • Industry News
FAST START FOR TYREXPO AFRICA 2014 AS EXHIBITORS FROM ALL SECTORS SIGN UP FOR JOHANNESBURG SHOW Next year’s Tyrexpo Africa 2014 exhibition has reported keen interest and brisk
These are teamed up with an impressive range of alloy and specialty wheels
business among exhibitors looking to take advantage of marketing opportunities
from suppliers such as Evolution, Ballistic, Menzarri and Panther.
at southern Africa’s only independent tyre and equipment industry show.
Returning to Tyrexpo Africa will be Richards Bay Tyres, the Kwa-Zulu Natal
The three-day event next March will once again provide a showcase for the
based tyre distributor and service provider, who will be attending the show in
full spectrum of replacement market tyres, retreading, technology, wheels and
partnership with Dutch wholesaler Bandenmarkt. Richards Bay is a Dunlop and
under-vehicle services.
Bandag distributor which provides a full range of tyre services for OTR, truck
“There has been an excellent response to next year’s show with plenty of
and passenger cars.
interest from African and international businesses,” confirms Paul Farrant,
Another returning Tyrexpo Africa regular is Leaderquip, one of the country’s
managing director of show organiser ECI International. “Over half of the
major suppliers of garage and workshop equipment. With operations in
exhibition space has already been sold, which is a great position to be in at
Gauteng, the Cape, Kwa-Zulu Natal and Bloemfontein, the company will be
this stage. We anticipate a full house and another superb show for the whole
exhibiting the latest wheel balancing, tyre changing and alignment technologies
industry to get involved in.”
from US equipment manufacturer Hunter and Italian brands Sice tyre changers
Among the many leading African based companies who have confirmed their involvement is Beltyre Africa, the local subsidiary of Belshina, the largest tyre manufacturer in Belarus. The company is well known for its ultra large OTR tyres for dump truck and earth mover equipment used in the mining industry, as well as standard OTR products for scrapers, graders, loaders and dozers in mining and large construction and civil engineering projects. The consumer end of the tyres and wheels market will be represented by Exotic Wheel & Tyre, the Johannesburg company who market a range of passenger car tyres including Silverstone HPT, Accelera, Kenda, Nankang and Event.
and Werther, the well-known lifts and jacks supplier. Tyrexpo Africa provides southern Africa’s only dedicated opportunity for the tyre, technology and service equipment industries to exhibit in a trade-only business environment. In addition to passenger car, truck, OTR, industrial and agricultural tyres, the show will also be an important showcase for the retreading, tyre repair and recycling sectors and for suppliers of workshop equipment, tools, accessories and consumables. Tyrexpo Africa 2014 takes place between 4-6 March at the Sandton Convention Centre, Johannesburg (SCC), South Africa. For more information go to www.eci-international.com
TYRECOR SECURES DISTRIBUTION RIGHTS TO MITAS Tyrecor has secured distribution rights to Mitas a.s, one of Europe’s leading
to launch the production of its radial tyres for tractors and MPT radial tyres
producers of agricultural tyres, for South Africa and the neighbouring states.
of the all-steel type.
Currently an OE supplier of tyres to leading world brands such as John Deere,
After acquiring the rights to use the trademarks Continental, Semperit and
New Holland, Case, Landini and McCormick, and JCB, to name but a few,
Euzkadi for agricultural tyres, the company has further strengthened its long-
Mitas manufactures and sells tyres under three brand names: the company’s
term strategy in which it is aiming at the development, manufacture and sale
own Mitas and Cultor, and Continental under licence, out of three production
of the off-road tyres, in particular, agricultural tyres.
plants in the Czech Republic, Serbia and the USA, the locations of which enables the company to operate a global sales and distribution network. First established in 1933 in Prague as a subsidiary of Michelin, Michelin held a 75% interest, while the rest was held by Czechoslovak banks. Over the years the company has been subject to a number of owners and shifts in focus, but despite this, has stood the test of time. A new joint-stock company, Barum Holding, was established in 1991 and several years later Continental acquired a majority interest in the company’s
“We are excited that we managed to secure distribution rights to one of the leading premier brands in the world for South Africa,” stated Charl de Villiers, MD Tyrecor. It was agreed that Tyrecor will be appointed as the sole distributor for the Cultor brand for South Africa and the neighbouring countries. “The Cultor brand was introduced at this year’s annual Nampo Agricultural show held in the Freestate, and was well received by the consumer,” he added.
Otrokovice tyre plant. An extensive restructuring programme has been under
According to de Villiers, Tyrecor is in the process of increasing its stock
way in Mitas for the fourth year now, courtesy of being awarded investment
levels to ensure the products will be available to the general network in the
incentives from the Czech government, funds which enabled the company
domestic market.
The One Stop Show for Tyres, Workshop Equipment & Accessories 4, 5, 6 March Sandton Convention Centre, Johannesburg South Africa
AN
INTERNATIONAL EVENT
ECI International Ltd., Speldhurst Business Park, Langton Road, Kent, TN3 0AQ, England T +44 (0)1892 863888 F +44 (0)1892 863828 sales@eci-international.com
www.eci-international.com
32 • Bandag News
on n the Move with Bandag’s Mobile billboard
Bandag has Bandag has taken its taken its latest latest advertising campaign campaign to to advertising the the roads roads of of SA… SA… It’s It’s not the the usual stuff you will find out there… no there… no images of shoes or tomatoes… nor a tyre for that matter… No, Bandag has gone louder and is displaying images of its rubber Shark! That’s right… Our hand-made shark using the best quality Bandag retreads! Now we think that makes a bolder statement with a visual display that will catch many a road user wanting to look a little closer… While the truck branding in itself is a marvel… The message it carries is much more important… Bandag’s emergency Tyre Assistance (eTA) won’t leave you dead in the water. For 24/7, hassle free, on the road national tyre assistance, you need only call 0800 30 40 50 and you will receive: • Super responsive tyre assistance • SMS notifications • Call recordings • Next day incident reports • Detailed monthly reports Now that’s what you call Emergency Tyre Assistance DoWn To An ArT… With Bandag, you don’t have to be a tyre expert. you just have to know one! For more information on how you can benefit contact Bandag today on +27 11 439 6000 or visit www.bandag.co.za.
With the reliability you get from Bandag, your fleet can take on anything. 8182 Bandag Strip Ad.indd 3
www.bandag.co.za 5/15/08 4:39:38 PM
Ta l k i n g Ty r e s • 3 3
BrAnD eQuITy
Changing mindsets… It’s the ultimate commodity for marketers around the world, and a defining aspect of purchasing decisions. But for consumers, is sticking endlessly to a single tried-andtrusted brand the best thing? By Colin Mileman Chief executives, managing directors, marketing gurus, advertising executives and public relations specialists the world over spend countless hours doing one crucial thing for their business: building the brand. 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 names on an exclusive line of calendars, splash their logos on a bunch of maps or fund a fleet of high-flying blimps? None of these efforts make one iota of direct, tangible difference to the fundamental quality or performance of the actual products the companies are attempting to sell. In motor racing you can certainly argue that it improves the breed, with lessons learned on the track ultimately filtering through, in some shape or form, to better products for archetypal Mr and Mrs Average and their sensible family sedan driving on normal roads, clocking up a predictable 20 000 km per year. These marketing initiatives set out to place the brand front-
3 4 • Ta l k i n g Ty r e s
of-mind amongst consumers for the qualities they represent, rather than necessarily the products themselves.
beast that vehemently protects their trusted brand mix. The most common argument is that they’ve used a particular tyre brand or specific product for years, and it has never failed them.
For the same reason some car companies sponsor golf days, polo tournaments and wildlife conservation projects, the brands aim to project a lifestyle, a level of
Accordingly, new challengers are viewed with disdain, and they’re rarely willing
aspiration or an association that buyers are drawn towards. The main objective,
to come out of their shell to even consider compelling alternatives that are
ultimately, is to create affinity with the brand and, naturally, boost sales and
newer, incorporate more advanced technology and may be even better suited
increase profits.
to their needs.
Keep in mind that the tyre manufacturers represented in South Africa are
It’s a situation that the owners of the relevant brand will relish. But when the
global entities with product portfolios that extend well beyond just churning
consumer becomes stubborn and habitually ingrained in their choices, they are
out rubber. Continental, for example, is a multi-faceted corporation that
in fact losing out in the long run.
produces not only tyres but also braking and vehicle stability control systems, powertrain and chassis components, instrumentation, as well
Even comparative tests staged by independent entities are often viewed with
as infotainment and networked vehicle communication systems – a lot
scepticism – and that applies as much to vehicles as it does to tyres. When
of under-the-skin stuff you won’t ever see, or normally associate with the
a new contender takes the laurels, the die-hards immediately throw up their
company.
arms, hurl abuse and cry foul.
Similarly, Bridgestone manufactures polyurethane foam for seats and interiors,
As with new car purchases, getting bums in seats is probably the best way to
as well as for bedding, furniture, appliances and buildings. It makes hoses,
open minds and build new allegiances – but it’s an exceptionally difficult thing
conveyor belts, components for solar cells and plasma displays and even
to do with tyres. Retailers don’t have a fleet of demo tyres to fit to all manner of
golfing and tennis equipment.
vehicles, and even if they did, a short test drive would reveal little, if anything.
Among its vast product portfolio, Goodyear, interestingly, churns out synthetic
More comprehensive customer days, driving courses and dedicated events are
rubber for medical applications, and for chewing gum!
probably the most effective solution, with first-hand experience rapidly swaying previously unflappable loyalties. But they are time-consuming, difficult to do on
There’s a lot more to these companies than meets the eye, although tyres are
a large scale and inherently very expensive.
the most obvious and identifiable front-line commodity. And they want Mr and Mrs A to know it, so that’s why they invest heavily well outside the sphere
However, such events are certainly capable of preaching to the unconverted,
of conventional product advertising and marketing, hoping to sway primarily
creating unofficial self-appointed brand ambassadors that become equally
brand-oriented buying decisions in their favour.
vociferous in their enthusiasm for the new product, and the brand in general.
Recent experience on various 4x4 events have proved just how tough this brand
We are driven by an information age, and although it’s often difficult to find
equity nut is to crack – especially when attempting to challenge ingrained brand
sense among all the clutter, consumers should be arming themselves with
loyalty. Just like the age-old Toyota versus Land Rover debate (now expanded
reputable sources of information and making clever choices rather than simply
and heightened to include the likes of the new Ford Ranger, VW Amarok and
sticking to same old, same old.
Isuzu KB), many people are deeply entrenched in a particular brand and view competitors with caution, and some even with contempt.
Brand equity is probably the most prized and hardest-fought commodity in business, but it’s a big, bright and extremely competitive world out there
While pricing is the overriding factor that dictates tyre choice for most
with an unprecedented range of options – and the ball is very much in the
consumers, the hard-core 4x4 enthusiast, in particular, is often a stubborn
consumer’s court.
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.
36 • Goodyear News
Goodyear Plant Investments ensure Quality Products one 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.
Dustine Gascoyne, Marketing Director, said
Bezuidenhout, Technical Team Leader for
delivers consistent, repeatable quality. Clearly,
the long-term requirements of Goodyear’s
Systems and Audits, explained that audits are
the higher the score, the better our control
market had been analysed and manufacturing
usually planned but the latest had come out of
over process and quality, which in turn means
facilities developed to align with customers’
the blue.
less bad product and fewer returns. Ultimately,
ever-changing needs.
“In September 2012, we celebrated when
our customers are assured of the consistent,
“There is more demand for 4x4 tyres for SUVs,
the Uitenhage plant achieved its highest ever
excellent quality of Goodyear’s products.
for example. We are aligning our quality and
PPQ score. Most recently, in February this
“Goodyear’s continued investments into plant
product performance with trends in the market
year, PPQ auditors dropped in unannounced.
and machinery definitely impact positively
and with international competition. We’re
Still, the audit score was very high. Goodyear
on our PPQ performance. However, these
also staying a step ahead of our customers to
South Africa continues to go from strength to
excellent scores can also only have been
ensure we will always be able to deliver exactly
strength.
achieved through a fantastic effort, especially
what they need.”
“The PPQ audit measures Product and Process
from a team that has experienced intense
Goodyear’s PPQ audits are conducted by
Quality. Through a stringent checklist of
pressures and challenges during the past year.
five international auditors, each an expert
international criteria, these auditors evaluate
They are all to be congratulated for working
in an aspect of tyre manufacture. Theo
the extent to which our process control
together toward this common goal.”
Goodyear eagles give sporty new Ford its wings Benchmark UHP (ultra high performance) tyre Goodyear Eagle F1 Asymmetric 2 has been selected as the only rubber fit enough for the Ford’s sporty new Focus ST. According to motoring journalist Colin Mileman, in a recent article for SA Treads magazine, the Focus ST is “a truly brilliant car that sets new benchmarks for seriously hot hatchback performance, fantastic driver involvement and sheer entertainment”. The only tyre approved for the ST is Goodyear’s latest generation Eagle F1 Asymmetric 2 235/40 R18 956 XL. According to Mileman, “the relationship between car and tyre is so closely aligned that you almost dare not deviate from the original equipment specification”.
Goodyear News • 37
Goodyear Gears up for 2013 Truck Racing Season Goodyear is gearing up for its 9th year supplying race tyres to the European Truck Racing Championship. The tenround championship started at Misano in Italy in May this year. Goodyear Racing tyres, which have been specifically designed and developed for the European Truck Racing Championship, are the only type approved by the sport’s governing body, the Federation Internationale de l’Automobile (FIA). They will be available to all entrants with supply and support at every race.
FAsT FAcTs l A race truck weighs at least 5 500 tonnes and travels at speeds of up to 160 km/h. l Tread plays a vital role in the performance of truck racing tyres, withstanding very high temperatures as the truck fights for optimum grip during a race. l All these tyres have RFID (Radio Frequency Identity), which gives each tyre a unique identity. RFID, also called ‘chip in tyre’ technology, involves the placement of a microchip in the tyre
during construction. This chip contains data relating to the tyre, which allows the FIA to monitor each tyre to ensure all racing teams keep to the regulations. Thanks to the success of field trials and truck racing, Goodyear has recently introduced this technology into regular truck tyres. l These tyres feature a specifically designed tread which provides excellent grip in both dry and wet track conditions, performing consistently in nine different countries.
Tyre of Choice for Rhino Protection South African hearts bleed every time one of our precious rhinos loses its horn to poaching. Goodyear supports this battle by sponsoring rugged, high performance 4x4 tyres to help give the anti-poaching teams an advantage when patrolling the country’s nature reserves. Goodyear Wranglers are the tyre of choice for rangers on the Forever Wild Rhino Protection Initiative team. The highly effective initiative was given a boost with the sponsorship of six Volkswagen Amarok bakkies from Volkswagen Commercial Vehicles in 2011, and the contract was renewed in 2012 and 2013, with Goodyear coming on board for a second year. The vehicles serve various reserves and anti-poaching units across the country, each managed by the Forever Wild head office team.
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.
“The rangers made a specific request to have Goodyear Wranglers fitted to the vehicles,” said Wilderness Foundation’s Conservation director,
Lize Hayward, Goodyear’s Group Brand Communications Manager,
Matthew Norval. “When the new Amaroks came in, they were fitted
said Goodyear is proud to be part of this sponsorship team. “We are
with other tyres. Our rangers asked if Goodyear could sponsor the
honoured that the Wranglers are indeed the rangers’ tyre of choice,
Wranglers again as the tyres offer better traction and are much more
and that we can contribute to their safety and comfort over challenging
robust than the other tyres they’ve tried.”
off-road terrain.”
OTR RADIALS es ll OTR Machin a r fo le b a it u lS 25” to 35” in e g n ra e iz s l Full e Radials ‘E’ and ‘L’ typ ial el Belted Rad te S t s u b o R l construction sistant tread l Abrasion re compound ed tread area rc fo in re lt e l Steelb ad patterns l Modern tre lity standard l Global qua rer Warranty l Manufactu Hour
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World News • 39
TRIANGLE BECOMING GLOBAL PLAYER
devoted to Triangle’s efforts to globalise its business as effectively as possible,
BRIDGESTONE WINS PATENT RIGHTS LAWSUIT – IN CHINA
this global event marked an important milestone in the company’s history in
Bridgestone Corp. has won a design
demonstrating its desire to enter a phase of decommoditisation with respect
patent infringement lawsuit against China’s
to its products. Marketing as a primary driver of this function, and a key part
Qingdao Genco Industrial Group Co.
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
of Triangle’s aim to become a ‘globalised tyre company’ was a recurring theme of the Summit.
Bridgestone alleged that the Qingdao, Shandong Province-based Qingdao Genco Industrial Group copied a patented groove design on some of its
CFP Tyres (Pty) Ltd was invited to attend the Triangle Group’s 2013 Global
medium truck tyres, which were found displayed in a catalogue.
Business Summit at the Pudong Shangri-La Hotel, Shanghai on 18 May 2013.
The suit was filed and won in Qingdao City Intermediate People’s Court.
Over 450 delegates, including Chinese Government dignitaries and Triangle
Qingdao Genco Industrial Group reportedly does not plan to appeal.
employees and customers from around the world, attended the Summit, and
“The Bridgestone Group will continue working to maintain and enhance
CFP was one of a selected few companies world-wide, to receive an exclusive
the value of its brands by taking the necessary actions to protect its trade
“Strategic Partnership Award” from the Triangle Group. An achievement CFP is
secrets and intellectual property,” the tyremaker said in a statement. “This
very proud of!
includes reporting patent infringements to the appropriate authorities and
CFP has been the sole distributor for Triangle Tyre in South Africa since 1999.
seeking proper redress through the court system.”
www.satreads.co.za
www.satreads.co.za
NEW INVESTORS LOOKING AT BUYING STAKE IN PIRELLI HOLDER Reuters reported on May 17 that unnamed outside “industrial and financial
second largest investor in GPI.
investors are in talks to buy a stake in Camfin,” which holds controlling interest
Tronchetti Provera and the Malacalzas have reportedly “been locked in a dispute
in Pirelli SpA.
over how best to repay” Camfin’s debt, which sat at 385 million euros at the close
Pirelli chairman and CEO Marco Tronchetti Provera controls Pirelli “through a
of March.
complex chain led by his MTP SpA holding vehicle and comprising two other
It was said that the new investors “would help Camfin repay debt and give the
companies, GPI and Milan-listed Camfin,” Reuters reported.
investor a foothold in Pirelli.” An MTP spokesman said “contacts and talks”
Camfin hold a 26% interest in Pirelli, and is itself 42.6% owned by
between the various parties were ingoing, but that “there were not, and are not at
Tronchetti Provera and 12% by the Malacalzas family, which is also the
present, any agreements, even preliminary, in this regard.” www.satreads.co.za
SCHAEFFLER ENDING CONTI INVESTMENT AGREEMENT Schaeffler Group yesterday gave notice that it is ending its mutual
statement. “We consider our investment in Continental a long-term strategic
investment agreement with Continental AG. unless there is a change of
investment aimed at sustainably increasing the value of Continental AG.”
heart, the agreement will terminate in May 2014.
Comments made by Continental CEO Elmar Degenhart had perhaps a
Settled in August 2008, the agreement governs the cooperative relationship
less enthusiastic ring to them. “Notice of termination of the investment
between the two companies with Schaeffler as the largest single Continental
agreement is understandable from the vantage point of Schaeffler, our anchor
shareholder. Schaeffler currently holds a 49.9% share of Continental AG.
shareholder,” he said. “We are confident that the two companies will continue
Schaeffler said the investment agreement “no longer has any practical
their very good and goal-oriented cooperation on into the future.”
relevance for either company” since “key provisions of the agreement expired
In 2008, Schaeffler Group paid 12.1 billion euros for Conti – five times its size
in August 2012.” Schaeffler added that it and Continental have “benefitted
in revenue – in a so-called ‘stealth takeover.’ Offering to buy up all outstanding
from their excellent and pragmatic cooperation for years” and will continue
Continental share, Schaeffler ended up holding a 90% stake in the tire and
this cooperation in the future.
auto component maker, despite setting an ownership limit of 49.99%.
“As Continental AG’s major shareholder, we are very pleased with Continental’s
As a result of being over-subscribed, Schaeffler had to borrow 16 billion euros
achievements over the past few years,” said Schaeffler Group owners and
to finance its Continental acquisition, and within half a year was struggling to
chief shareholders Maria-Elisabeth Schaeffler and Georg F.W. Schaeffler in a
finance the resulting high debt service payments.
www.satreads.com
40 • Competition / Subscription
Congratulations!
to our previous competition winner
Barbara Moore of PPC ltd, Sandton whose correct answer wins her a set of Discoverer A/T3 tyres to the value of up to R12 000 courtesy of Cooper Tires!
quarterly competition QuesTIon:
The new Michelin Primacy 3 tyre is aimed at which market segment? AnsWer: ____________________________________________________________________________________ Name: _________________________________________________________________________________________ Company: ____________________________________________________________________________________ Address: ______________________________________________________________________________________ ___________________________________________________________________________________________________ __________________________________________________
Code: _______________________________________
Telephone: __________________________________ Cellphone:_________________________________
click www.sa onto treads. to ente co.za r!
Win… a set of
Michelin Primacy 3 Tyres!
Please address your competition entries and subscriptions to: Sky Publications cc, PO Box 702, Douglasdale, 2165, or Fax entries to: (011) 658 0010 (only one per person please)
or enter online at www.satreads.co.za
subscription
I/we wish to subscribe to SA Treads for one year’s subscription (incl. VAT and postage) Local (SA) R 110.00 International R 275.00 (Please address cheques to Sky Publications)
Name: __________________________________________________________________________ Company: _________________________________________________________________________ Address: ________________________________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________
Code: ________________________________________________________________________________
Profession: ___________________________________________________________________ Telephone: ________________________________________________________________________
Get your entries in on: www.satreads.co.za
42 • One-on-One