A deal of a lifetime on offer to prospective franchisees New MD for Continental Tyre SA Gambling with lives – recycled tyres
Vol 21 • September 2015
A massive growth drive for Tyres & More
Focus
on
SE RVICE LEVE LS
Call to Industry – Get closer to your customers!
a once-in-a-lifetime offer from Tyres & More valued at R50 000.00!
Sync - 10715 - Tread S.A
RECYCLING DOWN TO AN ART Bandag have been specialists in recycling since 1957. Bandag’s cold retreading process is not only reliable and economical, but also aids in keeping tyres out of landfills thereby protecting the planet. Combine this with Bandag’s ISO 14001 environmental accreditation, and it becomes clear why using Bandag gives fleets and the environment the advantage. That’s what we do. Tel: +27 11 439 6000, Fax: +27 86 682 7027, e-mail: info@bandag.co.za or visit www.bandag.co.za
Introduction • 1
Contents
A
the
One-On-One with Tyres & More, Turning Complaints into Compliments..................2
Focus on Service Levels – Call to Industry – Get closer to your customers!.......6
Industry News BOTO OTR brand finds favour with SA market.................................. 15 Gedore celebrates 50 year journey of success................................. 16 Tiger Wheel & Tyre speaks out in support of SATMC........................ 20
Talking Tyres Tyre Forum: Gambling with lives....................................................... 23
Distribution BestDrive Experience Embraced by ContiPartner Network Nationwide..................................................... 29
Goodyear News Hi-Q’s winning team is growing – become a part of it....................... 30 Hi-Q. Staying on top of things. Hi-Q, voted No.1 for 6 years running!.............................................. 31 Another first from South Africa’s No.1!............................................. 31
Manufacturing Continental Tyre South Africa (CTSA) appoints new Managing Director....................................................... 32
World News Apollo Tyres net profit increases 27% in Q1..................................... 34 ChemaChina’s acquisition of Pirelli finally complete!......................... 34 63 inch mining tyre from Belshina.................................................... 34 Michelin India’s awarded with ISO 9001 & ISO/TS 16949:2009 certificate..................................... 34 Michelin Tractor App now available!.................................................. 34 China objects to imposition of punitive duties on imports of tyres by US.................................................................. 35 New versatile retread from Goodyear............................................... 35
Competition, Subscription, Website .................................... 36
Editor
Liana Shaw
Technical Consultant
Wray Shaw
Reproduction
Diane van Noort
note from
Publishers
Tel: Printing TYPO – Colour Printing Specialists Fax: Cell: Distribution Prestige Bulk Mailers E-mail: Advertising Liana Shaw Website:
Sky Publications cc PO Box 702 Douglasdale, 2165 (011) 658 0011 (011) 658 0010 082 851 6777 satreads@mweb.co.za www.satreads.co.za
editor
With service levels once more in the spotlight, we asked some reputable commercial customers for their thoughts on what the tyre sector was doing right and what could be improved on. The feedback we received serves as the foundation for our lead story this quarter. It was encouraging to see that some of the historical problems, particularly those surrounding the servicing of breakdowns, appear to have been resolved. Notwithstanding, the respondents were equally vocal about areas which they believe require attention, all of which are highlighted on pages 6 to 12. Service is very much the buzzword in our One-on-One section as well which features the rapid growth curve being experienced by Tyres & More, something which this newest franchise largely attributes to their passion for providing unparalleled service. The franchise is growing in leaps and bounds, nationally. And they’re not done yet. The Group is continuing to pursue qualified, like-minded franchisees to join its burgeoning ranks and should such a candidate be identified and signed up via this article in SA TREADS, Tyres & More are making this prospective franchisee an offer of a lifetime – ‘Meet our requirements, become a franchisee, and we will waive the joining fee – a prize valued at well over R50 000.00!’ Interested parties are urged to contact Tyres & More (part of the TiAuto Group of companies) for more information on this incredible offer! And speaking of the TiAuto Group of companies, sister company to Tyres & More, Tiger Wheel & Tyre, has made public its support of the SATMC (South African Tyre Manufacturers Conference) which plans to take its complaint over cheap tyre imports to SA’s International Trade Commission. More on this story on page 30. And our resident tyre columnist, Colin Mileman, examines the perils associated with recycled used tyres pointing out that unscrupulous individuals will go to unimaginable lengths to con the unsuspecting motorist by selling him tyres that should be relegated to the scrap heap. For more on how to avoid becoming a victim, turn to page 21. Wishing you all a strong, productive fourth quarter!
2
•
One-on-One
THE ULTIMATE CONVERSION – Turning Complaints into Compliments
Fred Scheepers
Gary Ingle
TYRES & MORE
On Key to Success, Future Growth and Franchise Opportunities
One-on-One
So what is this budding franchise doing right to achieve such a swift growth curve?
•
3
❝ We are on the lookout for the ‘right’ people to join our ranks.
❞
At their Strijdom Park store, we pinned down
reference checks, followed by a stringent
managing executive Gary Ingle and Franchise
interview to assess whether the fit is right for
Executive Fred Scheepers together with a
both parties concerned.
franchisee regional manager Mike Gatton, to find out.
Are you fielding calls currently from members of rival groups?
We first met with you in the last quarter of
There is a huge level of interest owing to the
2013. At the time you had opened your first
support we offer, our reputation and our unique
store in Woodmead, Johannesburg, on 26
selling points such as our strong marketing and
August. What is the total number of Tyres &
advertising drive, our National Point of Sale
More stores today?
system and our store management business
We currently at 27 stores and are represented
model. We are the only franchise to offer
nationally with the exception of Limpopo
dedicated store development managers who
Province. We do have plans to begin operations
have all personally managed tyre fitment stores.
in this Province in the near future however, once we have identified possible candidates to
Interest in joining the ranks has further risen in
join our Group.
recent months due to a better understanding of the Tyres & More business model. The initial
New kid on the block Tyres & More first emerged in 2013 as a complementary brand to the highly successful Tiger Wheel & Tyre Group, which arguably, is recognised as a market leader in South Africa. As part of the TiAuto Investment Group of companies, this exciting new tyre and fitment brand, sporting a funky image coupled with a bright corporate identity that is hard to miss, is fast becoming a player to be reckoned with. And all this in the space of 24 months.
So are you actively seeking potential
perception that the franchise is too expensive is
franchisees at this point in time?
diminishing as word gets out that the franchise
Yes, we are constantly on the lookout for the
fees are linked to turnover and that the rebates
‘right’ people to join our ranks, although we
we enjoy from our national suppliers largely
do receive leads from our existing franchisees
offsets these fees.
as well. What is the feedback from your franchisees? Define the ‘right’ people.
Our franchisees are often our best recruiters
Franchisees must subscribe to our philosophy
as they spread the word in the marketplace
which encompasses important elements such
about the benefits that come from an
as a passion for customer service, adherence
association with us.
to corporate image and the ability to provide sound advice and fresh customer solutions to
In turn, we strive to maintain a collaborative
the motorist.
relationship with our franchisees, as opposed to a dictatorial stance, whilst simultaneously
How would interested parties go about
retaining controls and Group standards.
applying for a franchise? The first step is to submit an application
The growth of our franchises is pleasing to see.
which will be evaluated. Next, we will conduct
Take this store for example, which is now one
a financial diligence exercise coupled with
of four that is owned by a single franchisee and
4
•
One-on-One
overseen by Mike Gatton a franchisee regional
What are the set up costs for a Tyres & More
manager.
franchise?
❝ Successfully convert an existing
For a new store capital outlay is in the region
store to a Tyres & More franchise
When it comes to customer service, what do
of R2.5 million, typically 50% should be
you believe differentiates Tyres & More from
unencumbered cash and the balance can be
before December 2015 and
opposition brands?
financed via one of several financial institutions
Tyres & More will waive the
As you know Tyres & More is a sister company
to which we are affiliated. We also recommend
to the Tiger Wheel & Tyre Group of companies
R750 000 – R1 000 000 operating capital
joining fee! The offer is valued at
and we aspire to similar standards. Over the years we’ve identified that it’s usually the small
Are you a multi-brand outlet?
things that make the biggest impression. For
Yes and in the true sense of the word. We offer all
example: meeting the customer at their car,
the major replacement market brands as well as
driving their vehicle onto a ramp, explaining in
our own such as Yokohama, Hankook, GT Radial,
detail the work that needs to be carried out.
AtlasBX and Duracell automotive batteries.
R50 000.00 and only available to SA Treads readers!
❞
another interested party. Name the biggest challenges to your business. For the most part our challenges are similar
Added to this, the TiAuto Group takes great
One of our major strengths is our buying power
to those encountered by most businesses in
pride in the comfort and quality of its stores.
which allows us to secure the best possible deals
South Africa, irrespective of industry sector. A
Our waiting rooms are closed off from the
for the benefit of the TiAuto Investments Group
fluctuating exchange rate coupled with fluctuating
workshop to provide privacy and cushion
as a whole.
inflation, less disposable income, power shortages etc. are all areas of concern.
against noise, we provide coffee on tap and even offer fun activities for the children while
What is your view on market saturation?
they wait. We are constantly striving to improve
We believe that market saturation only poses a
More specifically in the case of Tyres & More,
the fitment experience, particularly for our
threat to businesses that remain stagnant in their
there is much work to be done with respect to
female clientele.
approach to business. The TiAuto Investments
branding. Comparatively, we are not as well
Group is intent on seizing market opportunities as
established as some franchises out there so it will
Strict adherence to standards is another crucial
they arise which means that we are constantly re-
take heavy investment by way of marketing and
element to our business as all it takes is one
inventing ourselves in a bid to remain competitive
advertising to establish a stronger presence in the
dissatisfied customer to tarnish our reputation.
in the market.
market, something we are well prepared for.
Our offering is unique and different.
Are you aiming for further market penetration?
Monitoring complaints, as well as compliments, and providing a suitable course of action that
We have not set a limit as to the number of stores
appeases the customer is key. Our CRM system sends a SMS to every customer providing them
That being said we all have a role to play especially
we hope to end up with. As the right locations,
with a fuss-free platform to engage with us
during an economic downturn when people
opportunities and individuals present themselves,
regarding their experience.
tend to hold on to their vehicles for longer. This
we will capitalise on them.
presents mammoth opportunities, especially for Training plays a huge role in our organisation as
fitment outfits that offer the entire spectrum of
In contrast, we are heavily focused on maintaining
a way of uplifting and maintaining standards.
underbody services, such as Tyres & More.
high standards and providing motorists with a
The consistency of our stores in terms of look
What about mixed alliances?
and image coupled with our ability to diversify
We do not subscribe to the concept of mixed
so as to provide the full spectrum of services –
alliances, believing that our businesses will
crucially important once a vehicle has outlived
succeed provided we all remain on the same
the opportunity of a lifetime!
its Motorplan – serves to differentiate us further.
team.
Successfully convert an existing store to a
We believe that economic growth lies with the
Furthermore we remain respectful of territories
2015 and Tyres & More will waive the joining
emerging middle class and as such, we are
in the quest to build sustainable businesses. And
fee! The offer is valued at R50 000.00 and
well poised to take advantage of this important
should an opportunity arise in a particular area we
only available to SA Treads readers!
market dynamic by offering true value.
would offer this to the nearest franchise ahead of
satisfactory experience. In a ‘market first’ Tyres & More is offering a potential franchisee
Tyres & More franchise before December
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6
•
Focus on Service Levels
CALL TO INDUSTRY
– Get
CLOSER to your
Customers The perceived need for industry to move closer to its customer base emerged as a key requirement during an analysis of the end user community last month. A number of fleet operators, carefully selected for comment due to their reputation in the market, believe that awareness on the part of the tyre industry of their customers’ needs, challenges and subsequent requirements is somewhat lacking. Facing their own set of challenges in a tough economic arena – from finding and securing the services of quality drivers, to combatting worsening road conditions and sourcing suitably trained staff to maintain their fleets, their pleas to the tyre sector to assist them in controlling and maintaining soaring tyre replacement costs was cited as a pressing issue by the respondents. “Although we are satisfied with the overall service offering, regular meetings and bi-weekly scrapping
Focus on Service Levels
•
9
ELITE LINE HAUL Vehicles: 428 (truck tractors/trailers) Rolling wheels: 3 800 Application: long haul
New tyre make: All brands, sourced via in-house purchasing centre. Premium brands only. Retreads: Bandag (70%), balance use various providers Service provider: No outside contractor – in-house
hindered the industry’s ability to provide a sleek and professional service to the transporter with much time currently being wasted on capturing information manually. “Embracing technology makes sense on every level,” he argued. “It is time-
sessions with our service provider help to build on the current
saving, accurate and thoroughly transparent.”
relationship, ensuring the continuance of high service levels to our operation,” said Andries Smith, Technical Executive, Imperial Cargo Group.
The safety of service personnel was also raised by Ward who suggested
“Notwithstanding, in general terms, the tyre industry could improve its
that they always be furnished with reflective clothing and that vehicles
service offering by becoming familiar with the challenges we face and by
be equipped with flashing strobe and LED lights when attending to a
constantly striving to provide us with creative cost-cutting solutions.”
breakdown in the dead of night.
Jacques van Tonder, Unifreight concurred: “I believe there is currently
Service providers are growing increasing weary of servicing trucks at night
too much of an emphasis on selling tyres to the end user, rather than
for security reasons and according to Ward, kitting them out with the
familiarising themselves with our unique challenges and providing the right
necessary tools for the job would go a long way towards alleviating their
solutions.”
fears, thereby ensuring a smoother service.
Added Jim Ward, General Manager Technical, Unitrans Supply Chain
“The tyre sector is entrusting their business to outside service providers in
Solutions: “We have a long standing relationship with our new tyre
many parts of the country but this does not mean that they do not have the
supplier and while regular dialogue and negotiation does serve to maintain
right to expect certain levels from these providers,” said Ward. “Equip them
acceptable service levels, their high staff turnover coupled with an apparent
with the right tools for the job and lay down required levels of service for
unwillingness to embrace technology and pay attention to the basics,
them to adhere to,” he offered.
does concern us to the level where we are unwilling to abdicate total responsibility for the running of our tyre fleet.”
Equally ill-advised according to Ward, is the tendency for service providers in the tyre sector to under-quote on a proposed contract. “Under-quoting
Ward expanded on this by saying that the tyre sector’s reluctance to
in order to secure the contract is not sustainable in the long term. We
make use of technology by way of electronic management tools possibly
would encourage them to present us with a true, sustainable cost estimate
Focus on Service Levels
•
11
for their services,” he urged. “Only then can we be assured that we are receiving the best possible service from them. “In short, limit the barriers to performance as much as possible,” he argued. Similar sentiments were echoed by Cobus Fourie, National Fleet Maintenance Manager, Elite Line Haul, who suggested that service providers may are prone to complacency and that they might need to work harder to earn his business. He said: “I’m not convinced that service providers necessarily have our interests at heart. After all, their core business revolves around the
UNIFREIGHT
sale of rubber which presents an obvious conflict of interests.
Vehicles: 110
“Service providers are often tied into alliances with new tyre companies as well, which finds them punting these products ahead of competitor brands, sometimes at the cost of the operator.” For this reason, Elite Line Haul has no formal long-term agreements in place with any service provider. Instead they utilise the services of a number of players in the market for both their new and retread tyre replacement needs.
Rolling wheels: 2860
Application: mostly long haul
New tyre make: 95% Goodyear with balance spent on testing various brands Retreads: Bandag (1st cap), Arctic (2nd), Max-T Solutions (3rd) Service provider: Trentyre
On road breakdowns are mostly being fielded via the Bandag Call Centre, and this, according to Fourie, is working well in terms of response time and national representation. In addition, the company runs a dedicated tyre purchasing division together with a sophisticated in-house management system that has allegedly earned international acclaim. “This, combined with the Profleet reporting system, helps us to keep a tight handle on our tyre fleet, making the owner-management route the most economical in the long run.”
UNITRANS: Vehicles: 3 000 (truck tractors) Rolling wheels: 43 230
Application: long and short haul New tyre make: Bridgestone
Retreads: Max-T Solutions, Bandag
Service provider: Max-T Solutions plus in-house crew
This trend of resuming ownership of their tyre fleets is further being adopted by Unifreight which chooses not to utilise outside contractors, preferring to handle the tyre maintenance alongside roadside breakdowns in-house. “Overall, we are happy with the service we receive from our service provider,” said Jacques, “but keeping a handle on our own tyre fleet allows
12
•
Focus on Service Levels
for leeway in terms of new tyre purchase, tyre testing and even price. “Besides, early detection of mechanical problems and driver awareness on tyre maintenance are key ingredients towards achieving a favourable cpk. And of course, the less the number of casings you lose along the way, the better!” Sentiments that were echoed by Ward who added: “The vast influx of cheap Chinese tyres into South Africa is having a major impact on stock retreads with the casing pool being drastically diluted. Our scrap heaps are growing so it’s imperative that tyres are closely monitored for casing fatigue and that we keep strict account of the quality casings within our fleets, something that is not always possible given the intervention of third parties en-route which is often necessary.” Tyre replacement often ranks the second highest expense after diesel for any transport operation, and as such, fleet owners are constantly looking for ways to reduce these running costs. “The transport sector is highly competitive,” said Fourie. “As a company, we have pledged to provide a 24hr service delivery to our customers which we are currently achieving by employing two drivers per route. It is
IMPERIAL CARGO GROUP: Vehicles: 843 (truck tractors/trailers) Rolling wheels: 7 966
Application: long and short haul
New tyre make: Goodyear/Sava Retreads: Arctic
Service provider: Trentyre
imperative that roadside breakdowns are kept to a bare minimum and that when they do occur, that they are serviced promptly and efficiently. Our
that for the most part, service providers have raised the bar. The servicing
service provider is a critical element in this which is why we are careful
of roadside breakdowns – historically the most contentious issue among
when securing the services of professionals in the field.”
the fleet owners – has improved in leaps and bounds apparently and turnaround time on retreads also appears to be satisfactory, while service
The message from these respondents that service levels could certainly
providers were further praised for their willingness to negotiate and hold
improve in the ways suggested was somewhat tempered by indications
open dialogue with their customers.
We’re right behind you wherever you are. 24 /7. TrenTyre is the largest commercial tyre fitment
network in the country. Our outlets stand ready and waiting to help. So you can take confidence in the fact that whenever you need us, wherever you are, we’re right behind you.
At your service
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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FOR ORDERS & INFORMATION Contact: Ken Martin or Marlin Pillay Tel: 031 764 6451 | Ken: 083 387 8403 | Marlin: 071 880 9247 | Fax: 086 558 8382 Email: ken@tafrica.net or marlin@tafrica.net OnLy AvAILABLE fROm
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Industry News
•
15
BOTO OTR brand finds favour with SA market
BOTO 26.5R25 GCA8 L5 radials fitted to loader at Safika Oosthuizen
ALS PLANT use 29.5R25 BOTO GCA1 E3 on 40t ADTs
Transafrica Tyre & Wheel, the sole and exclusive Distributor for BOTO brand OTR radials, has reported that BOTO branded radials are producing impressive tyre operating cost per hour (CPH) results at the end user wheel positions. Ken Martin, who heads up Transafrica BOTO, highlighted the opportunity for
Genet Mining - 2400R35 GCA9 E4 on TEREX machine
Mr Ian Diggeden, Group Tyre Manager, advised
❝ Our
records show that
this BOTO product achieves a low Cost Per Hour compared
that the initial BOTO radials were fitted in 2010, and since then the trouble free performance, and very low cost per hour, has resulted in Genet standardising on BOTO radials as their preferred brand. Mr Diggeden added that because of the
mining and construction operators to reduce tyre
with brands fitted as original
cost / performance relationship, the Cost Per
Cost per Hour, during this difficult economic period,
equipment to new machines
Hour performance of BOTO was significantly below
especially in the Mining industry. He stated : “Five years after the introduction of the BOTO OTR brand
entering their fleet
❞
into the South African market, BOTO has become a
famous brand radials which are fitted as original equipment on new machines. He also highlighted the professional service support from Transafrica
favoured and specified brand based on a very low Cost Per Hour, which has
BOTO, and recommended BOTO OTR radials to any end user serious
been proven by a range of leading and professional end user contractors.”
about reducing tyre operating cost.’
Mr Tertius Naude of Safika Oosthuizen, a leading transporter and plant
Another leading plant operator in the mining and construction industry
operator in Mpumalanga, has in fact confirmed that their large fleet of front
is ALS Plant Hire, who operate a large fleet of 40T ADT machines,
end loaders has been standardised on the BOTO 26.5R25 GCA8**L5 radial
adding: “ALS have standardised on the BOTO 29.5R25 E3**GCA1 on
product. Mr Naude first introduced this product for evaluation in 2010 and
our 40t ADT machines after testing and evaluating in recent years,” said
since then the BOTO L5 radial product has consistently achieved a very
Mr Hugo van Zyl. “Our records show that this BOTO product achieves
low cost per hour compared with competitor Cross Ply brands, as well as
a low Cost Per Hour compared with brands fitted as original equipment
famous brand radials. These loaders operate in demanding conditions, and
to new machines entering their fleet. ALS also made mention of the
the BOTO GCA8 L5 has provided substantial cost savings over the years, in
strong service support commitment from Transafrica BOTO, which was
terms of a very low operating Cost Per Hour. Mr Naude further stated that
important to the relationship.”
he would strongly recommend the BOTO product to any end user serious about reducing their tyre operating costs.
Martin concluded that the common message from these leading plant operators is that BOTO brand OTR radials is the way to go to substantially
Genet Mining operate a large fleet of machines in the mining industry,
reduce tyre operating costs, in these difficult and recessionary times.
involving coal, diamonds, steel and other minerals. The company’s diverse fleet includes front end loaders, 35t and 40t Articulated dump trucks, as
For more information contact Ken Martin on 0833878403
well as Terex Rigids on 2400R35 BOTO E4 radials.
or ken@tafrica.net.
16
•
Industry News
Gedore celebrates 50 year journey of success
Gedore SA is enjoying 50 successful years of trading in South Africa.
So if quality is a given, how has the brand evolved over the last 50
According to the company, the brand is genuinely revered and its unique
years and ensured that they remain relevant? Since their inception,
selling point is clearly understood by its market. They claim that the brand
According to Gedore SA, they have dedicated their time to maintaining
is so loyally supported that there are Gedore tool owners who actively
exceptional standards and innovation. This strategy, together with the
promote the brand through referrals on a daily basis - their Facebook page
quest for supplying superior product quality, has given the company a
is testimony to this. “Gedore SA attributes this achievement to simply never
sustainable competitive advantage which has allowed them to become
compromising the quality of their products. Quality is a given, we have always
South Africa’s leading supplier of quality tools. The association with
produced a high quality product, and will continue to do so. Quality is not
the holding company in Germany has also enabled Gedore SA to
negotiable at Gedore,” comments Marketing Manager, Bruce Hodgkinson
benchmark its quality, products and processes with international standards, making the name Gedore synonymous with superior quality,
The Gedore Group was founded in 1919 by three brothers who started the
innovation and technology.
manufacture of hand tools from their family home in Remscheid, Germany. From this small homestead the company has grown into a multinational
Allegedly, this relentless desire to strive for quality and innovation is
organisation. The South African brand began in the 1950’s when tools were
Gedore’s secret to success. Their considerable investment in machinery
imported to South Africa through a local agent. This later developed into the
such as forging hammers, grinding robots, a shifter manufacturing cell,
establishment of a factory in New Germany, Kwa-Zulu Natal in 1965 under
sheet metal plant, SANAS laboratory, ERP systems and warehousing
the name of Gedore Tools South Africa
solutions is a testament to their commitment to providing the customer with the best quality products.
50 years ago, the introduction of hot forged, German engineered hand tools into the South African market revolutionised the industry, from small
Today, Gedore SA manufacturers more than 1200 products and various
business practice to large enterprises. Since then Gedore SA has been hot
tool assortments which are compiled to suit their customer’s specific
forging and manufacturing quality hand tools which come with a lifetime
needs. In addition to their locally manufactured tools, Gedore South
guarantee. Gedore SA’s extensive range of products has become the tools
Africa has also expanded their product range of branded products from
of choice for professionals and tradesman due to their unrivalled quality
Gedore’s operations in Europe and Brazil to increase their offering of
and value for money.
lifelong quality tools to their South African customers.
Promotion
•
17
With Bandag, you don’t have to be a tyre expert. You just have to know one! Bandag specialises in the manufacture of retreads and best-in-class after sales service. That’s what we do! For more information please contact Bandag on 011 439 6000 or visit the website at 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
Reaching the zone Dare to explore new “Horizons� Quality beyond expectations
Treadzone offers tried and tested high quality products across all segments for the Southern African tyre market.
treadzone Tel: +27 (0) 21 905 1111 • Fax: 0866198018 • www.treadzone.co.za
20 • Industry News
WHEEL SERVICE EQUIPMENT
Tiger Wheel & Tyre speaks out in support of SATMC
Â? Â?
Tiger Wheel & Tyre is speaking out in support of the South African Tyre Manufacturers Conference (SATMC),
 �
which plans to take its complaint SA’s
International
Trade
Administration Commission.
  �  � € ‚ ƒ
is flooded with inferior-quality imports, nobody wins, not reputable
“When our market is flooded with inferior-quality imports, nobody wins,� said TiAuto Group
â?? When our market
over cheap tyre imports to
Marketing
tyre manufacturers, nor tyre retailers and most certainly not
Executive
the consumer
â?ž
Joe du Plooy. “Not reputable tyre manufacturers, nor tyre retailers and most certainly not the consumer, who stands to lose the most when poor quality tyres fail under normal operating conditions.� Among the concerns cited by SATMC is the fact that tyres sold by illegal importers are not suited to South Africa’s road and environmental conditions, which the organisation says has resulted in tyres exploding while vehicles were in motion.
   �
“Big-name tyre manufacturers invest heavily into research and development, which results in better engineered, longer-lasting, better
Â? Â? Â?
performing and safer tyres. I wouldn’t personally consider a tyre that isn’t backed up by extensive research and proven performance,� added du Plooy. It begs the question: When you have to replace your illegally imported tyres more frequently and sacrifice your safety to save a buck, are you really saving? Probably the best way to answer that question is to head to Tiger Wheel & Tyre and compare price and quality firsthand.
Â? Â?
Â
Â?
Tiger Wheel & Tyre offers a wide range of tyres, backed by the full weight
of their manufacturers’ warranties and reputations. Brands include; Continental; BF Goodrich; Goodyear; Michelin; Yokohama; Pirelli; Hankook and Velocity. There’s also the peace of mind that comes from
LEVEL
4
 �� ��  ��
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knowing that trained professionals have fitted your tyres, so there’s zero compromise on safety.
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Ta l k i n g Ty r e s
•
23
Gambling with lives
Just when the tyre industry thought it had seen it all, another new challenge crops up.
It’s astonishing, and scary, the lengths people will go to in order to make a quick buck. The ‘recycling’ of scrapped tyres is yet another plague the tyre industry faces, and one that needs to be stopped immediately in its tracks! By Colin Mileman
We know all too well what problems are created by the dumping of surplus tyres in Africa. Cost is king, even in South Africa, and people will choose the cheapest option even if they land up driving on no-name brand winter tyres that originated in some dark corner of the planet where ambient temperatures rarely exceed freezing point. And then they wonder why the tyres fail spectacularly (and tragically) when fitted to an overloaded taxi, bakkie or car travelling above safe speeds through the Karoo in searing 30 deg-plus heat. Everyone has seen the second-hand tyre sellers working out of shipping containers alongside the road, or even just a makeshift hut. They literally carve what to the uninformed ‘customer’ seems to be new life into rubber that has reached and exceeded its useable limits. And, in the process of regrooving the tyre, they severely compromise the inherent structure of the tyre, once again placing peoples’ lives at risk. The latest trend is even more worrying. In the process of manufacturing
24
•
Ta l k i n g Ty r e s
tyres, out-of-yield tyres are a natural by-product – but one that the industry tries to minimise in the interests
critical role that tyres play in driving safety.
❝
People – tyres are the most safety-critical aspect of
of profitability.
There’s a well-worn
These below-par tyres, as well as the various other
saying that if it’s too
in contact with the road, and are tasked with handling
forms of prototype, test and used tyres become part
good to be true, then it
all of the accelerating, braking and steering that the
of the ever-growing mass of rubber that has to be scrapped. In the ideal world, through the industry’s
probably is – but cash-
recycling initiatives, these get reworked into various
strapped buyers are lured
types of other materials including rubber crumble that
vehicle does, so start taking them seriously! One astonishing case that came to the fore recently was a highly-placed and well-educated executive who
by the huge savings
purchased ‘new’ tyres from a second-hand shop
compared to purchasing
car. Predictably, the moment the tyres were inflated
is used in everything from roads to shoes. However, somehow many of these tyres fall through
any vehicle! They’re the only things that keep the car
the cracks, whether it’s directly after leaving the
new tyres through
manufacturing plant or at the many points down the
official channels.
chain that leads to them landing up in the hands of devious ‘resellers’.
Tyre manufacturers have stringent policies for scrapping the tyres, and that involves destroying the tyre with an irreparable and hefty slice through the sidewall that renders them unusable. Or so they thought … You have to give people in Africa 10 out of 10 for ingenuity, and finding the most creative solutions for any perceived problem. If only that spirit could be guided towards more beneficial causes, rather than lining peoples’ pockets and placing lives at risk. A deliberate cut through a sidewall is deemed a minor issue by some, and it’s simply mind-boggling that people are taking these scrapped tyres, repairing the cut and selling them as new tyres at discount prices.
at a massively reduced price for his luxury German at the fitment store the sidewall repair failed with a spectacular explosion – to his utter dismay.
❞
Rather than lambasting himself for his dubious purchase, he laid a formal complaint with the tyre
manufacturer, insisting that it supplies him with new tyres due to these having failed. After close inspection the company’s manufacturing and quality representatives informed him that he had purchased scrapped tyres that had been illegally repaired. Yet he remained adamant that the tyre company was responsible, despite this tyre having left its chain of control and fallen into the hands of unscrupulous money-grabbers that snatched their loot the moment they were sold and did an immediate vanishing act without an ounce of conscience or accountability. They couldn’t care less if the tyre exploded the moment it was inflated, 10 km down the road from the fitment centre, or 1 000 km later (although
Indeed, they simply glue the cut closed and mask the repair so effectively
highly unlikely) while travelling at 120 km/h on a freeway with an entire
that only a trained professional would know that it’s there. Even tyre dealers
family on board.
are fooled – and it takes an exceptionally keen eye to spot the slightly shiny and molten look of the repaired area.
As a result, the tyre manufacturers have had to come up with more permanent solutions to scrap the tyres effectively, and spend a lot more
These tyres are then sold via roadside vendors, second-hand shops and
time and resources cutting through the bead and slicing out a chunk of the
online platforms – to unsuspecting motorists searching for a bargain.
sidewall of the many thousands of tyres they turf every year.
There’s a well-worn saying that if it’s too good to be true, then it probably
This should, you would think, solve this problem. But I fear it’s not the end
is – but cash-strapped buyers are lured by the huge savings compared to
of the story … as ingenious and resourceful individuals without a single
purchasing new tyres through official channels.
moral bone in their bodies will continue to effect temporary fixes and pass
The worrying part, though, is it’s not only the people that are struggling to
these tyres as the bargain of the century.
rub a few bucks together, but also well-heeled customers that also regard
The sad reality is that they are gambling with peoples’ lives – and that really
tyres as a grudge purchase, and have little or no understanding of the
should count for something!
Colin Mileman is a freelance motoring journalist, photographer and advanced driving specialist with over 17 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.
E N G I N E E R E D TO G O T H E D I S TA N C E Truck and Bus | Dump Trucks | Scrapers | Loaders | Compactors | Graders Official Distributors in South Africa:
YTS YTS TYRE SALES
Johannesburg tel: +27 11 974 7732 | email: yts.sales@telkomsa.net Cape Town tel: +27 82 337 8699 | email: aeolus.cape@netactive.co.za
26
•
One-on-One
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One-on-One
•
27
Distribution
•
29
BestDrive Experience Embraced by ContiPartner Network Nationwide pedigree with the franchise being able to tap into the broad dealer footprint. BestDrive which was first developed in Europe more than eight years ago today operates an extensive network of fitment centres around the globe, and the number is growing all the time. According to Slabbert, “The Tyre Fitment industry in South Africa consists of many well established retail brands and independent retailers who have worked hard to earn the loyalty of the South African customer. With the presence of four local tyre manufacturers and imports ever on the increase into South Africa, the market is well traded. This does not make it an easy industry for newcomers to enter.” Strategic partnerships are therefore highly beneficial. The BestDrive fitment centre network is by no means restricted to Continental tyre brands, and each fitment centre offers a wide range of tyre brands and automotive components from all leading manufacturers. With targeted expansion into new markets, ContiTrade Africa will steadily strengthen its distribution network throughout Africa in the years to come. The newly launched international retail tyre
expanded to 150 fitment centres nationally by
BestDrive tyre fitment centres’ service
brand BestDrive is set to expand its presence
end of next year.
offering is comprehensive and includes wheel
and superior fitment services across South
alignment, wheel balancing, fitment rotation,
Africa. Through the conversion of the established
“We are delighted, and excited by the uptake”,
and puncture repairs alongside commitment to
ContiPartner dealer network to BestDrive
said Kevin Slabbert, Head of Franchise at
providing quality products and services. These
franchise stores, the ContiTrade Africa retail
ContiTrade. “Through the changes we are
are nationally covered by manufacturers’
subsidiary of Continental Tyre is set to leapfrog in
making to enhance our fitment centres, we
warranties and include mag wheels, shocks,
size over the coming months.
are confident customers will like the new look
exhausts, batteries, disc- and brake-pads, as
and added product and service experience.
well as tow bars.
The conversion and franchising concept first
The upgrading of each fitment centre is by no
introduced to its partners in February of this
means complete and BestDrives will continue
Regardless of country or location, the objective
year has already garnered resounding support
to transform themselves in keeping with the
of each BestDrive centre is the same: to
with just fewer than 90% of the ContiPartner
BestDrive brand promise.”
become the world’s leading tyre service
dealerships having signed up to date, with
network through an unwavering commitment
more to follow. Once the conversions are
In a mutually beneficial relationship the
to the best service, the best quality, products
complete, the BestDrive network would have
ContiPartners will benefit from the BestDrive
and the best facilities.
30 • Goodyear News
Hi-Q’s winning team is growing – become a part of it. Unparalleled opportunities have opened up for prospective Hi-Q
Partnerships with multi-national premium manufacturers such as Goodyear,
franchisees in prime locations across South Africa. This is the chance for
world-class offerings, and being South Africa’s No.1 Tyre Retailer for
ambitious entrepreneurs to become part of a team that is at the forefront
6 years running, are but a few of what Hi-Q has to offer its Franchisees.
of the industry and the No.1 choice of South African consumers. To find out more and to learn how you can become a Hi-Q Franchisee, get Hi-Q is seeking to recruit individuals with business acumen,
in contact with Naomi Viljoen at the Hi-Q Head Office.
entrepreneurial skills and an innovative spirit, to head up new Hi-Q
Tel: (011) 394 3150 • Fax: (011) 394 3340
Franchises in South Africa.
Email: naomi_viljoen@hiqmail.co.za
Goodyear News • 31
Hi-Q. Staying on Top of Things. Hi-Q, voted No.1 for 6 years running! The ballots are in and once again South African consumers have voted Hi-Q as their No.1 Tyre Retailer in the 2015/16 TGI Ask Africa Icon Brands Survey. To receive pole position for 6 years running
keep offering them leading brands, winning
is a true reflection of the brands that are
in a survey of this magnitude is commendable
deals, quality products, expert advice and
most loved and used by South African
and an incredible achievement.
service they can trust,” says Hi-Q Director
consumers. Stretching across 19 sectors,
Sean Harrison.
165 brand categories and more than 8000
“We are extremely proud and also humbled
brands the survey makes use of state-of-
to receive No.1 status for the 6th year. We
This survey, which is respected and
the-art methodologies to deliver unbiased,
want our customers to know that we’ll always
recognised globally for its size and accuracy,
accurate results.
Another first from South Africa’s No.1! Hi-Q has introduced a new game-changing
Hi-Q TyreSurance was launched in August
offering – Hi-Q TyreSurance, now included
2015 after extensive dealer training during
with every passenger* tyre, irrespective of
June and July 2015.
the brand, bought from a Hi-Q TyreSurance TyreSurance
“Hi-Q TyreSurance is another way we’re
gives customers driving peace of mind
showing our customers that we think
with guaranteed credit towards replacing
out of the box and that they can trust us
damaged tyres. All they’ll need to do is
to always do things differently with their
register their purchased tyres via the Hi-Q
best interests at heart. TyreSurance offers
website
customers driving peace of mind – because
Approved
Dealer.
Hi-Q
(www.hiq.co.za.)
and
they’re
their tyres are covered,” says Hi-Q Director
covered.
Sean Harrison. Hi-Q partnered up with Geneva Risk *All passenger tyres including sedans, bakkies, taxis, SUV’s, 4x4’s and LDV’s.
Management Solutions (Pty) Ltd. and
“We are extremely excited about going
Innovation FSP (Pty) Ltd., authorised
on this great new venture with Hi-Q,” says
financial services providers, to develop this
Geneva Risk Management Solutions director,
Excludes all retread tyres, as well as tyres
innovative initiative.
James Perris.
designed for commercial use.
32 • Manuafacturing News
Continental Tyre South Africa (CTSA) appoints new Managing Director Continental Tyre South Africa has announced the selection of Shaun Uys (45) as its new Managing Director (MD). Currently head of Marketing & Sales Replacement Tyres South Africa and Sub Sahara, Uys will succeed Dieter Horni as MD effective August 1, 2015. After 6 years in South Africa, Horni will be returning to Hanover in Germany to head the Business Development portfolio for the Middle East and African region. “South Africa is a beautiful country, which has welcomed me and my family and I believe that this could be one of the wealthiest countries given the right political landscape,” advocates Horni. “To take the economy forward, business and government will have to find a way to coincide in this complex environment.” Always a strong contender for business in Nelson Mandela Bay and South Africa, Horni is optimistic about the future of CTSA and believes that Uys has what it takes to traverse this landscape and expand the company’s vision. While serving as Sales and Marketing Manager, Uys set into motion CTSA’s expansion into Sub Saharan Africa and Africa as part of the Continental Tyre’s long term growth strategy known as Vision 2025. “While our headquarters and manufacturing operations remain in South Africa, I believe that Africa holds enormous potential. To show our confidence and belief in this market, we have established a legal entity in Ghana and plan on establishing another in East Africa by 2020,” said Uys. With networks and partnerships in over 30 countries across Africa Uys is positive Continental can continue to expand its footprint in a range of African markets. “Continental is setting new benchmarks in the premium tyre segment, responding to tougher requirements and specifically targeting different areas of application with new passenger and commercial vehicle tyre families. Continental understands the needs of our customers and we have a product offering to meet those needs. I believe that this will be positively received as we branch out and expand further North,” states Uys.
Manuafacturing
•
33
❝ There’s a well-worn saying that if it’s too good to be true, then it probably is – but cash-strapped buyers are lured by the huge savings compared to purchasing new tyres through official channels.
❞
Shaun Uys, Managing Director, Continental Tyre South Africa
Uys, will be responsible for taking CTSA to the next level and he asserts
Uys joined Continental in 2000 as a Production Manager at the Port
that much of this would not have been possible without the solid
Elizabeth plant. He has held various positions within the organisation
foundation and momentum achieved under Dieter Horni’s leadership.
both locally and globally, including Head of pricing Truck Tyres,
“Dieter brought his vast experience to CTSA and has prepared the
Marketing and Sales in Hanover, Germany; and Sales Director NAFTA
organization for growth. Now as we embark on a new exciting chapter,
replacement Truck Tyre business, Marketing and Sales in Charlotte, USA.
I would like to thank Dieter for his significant contribution in setting the
On his return to South Africa, Uys was appointed as Project Manager to
right tone and energy for our future development as an organisation,”
implement a tyre retail organisation for the Conti Trade division before
concludes Uys.
taking up the role of General Manager, Sales and Marketing in 2012.
34
•
World News
Apollo Tyres net profit increases 27% in Q1 The Board of Directors of Apollo Tyres Ltd approved the company’s unaudited results for the 1st quarter of the financial year 2015-16. Earlier in the day, at the 42nd Annual General Meeting, shareholders approved the annual dividend payout of 200% per share (Rs 2.00 per equity share), for the year ended March 31, 2015. For the quarter ended June 30, 2015, Apollo Tyres Ltd, on a consolidated level, reported a profit of Rs 291 crores on the net sales of Rs 2832 crores. While the European Operations reported flat revenue growth in
63 inch mining tyre from Belshina Belarus based tyre manufacturer – Belshina JSC has reported that it is on target to introduce a unique ‘63 inch’ mining truck tyre by the end of 2016.
the quarter under consideration, the increasing imports of commercial
Belshina is currently undertaking a revamp of its milling facility at its
vehicle tyres, into the country, adversely impacted the Indian Operations’
Babruysk plant which should be completed by January next year. A
revenue. More than 30% of the demand for truck-bus radials from the
group of Belshina specialists will be presenting ‘tyre building training’ at
replacement market in India is being met by these imported tyres, which
a European location during the next few months in preparation for a 63
are mostly from China.
inch prototype tyre being produced.
Quarter 1 Consolidated Performance Highlights Q1 FY2015-16 (April - June) vs Q1 FY2014-15 · Net sales stood at Rs 28.32 billion (Rs 2832 crore) from Rs 32.23 billion (Rs 3223 crore) · Operating profit was at Rs 5.29 billion (Rs 529 crore) an increase of 15%,
www.satreads.com
Michelin India’s awarded with ISO 9001 & ISO/TS 16949:2009 certificate Michelin India’s Chennai-based manufacturing facility has been accredited with an ISO certification. The Technical Union for the Automobile, Motorcycle
from Rs 4.58 billion (Rs 458 crore) · Net profit grew 27% to Rs 2.91 billion (Rs 291 crore) from Rs 2.28 billion (Rs 228 crore)
and Cycle Industries (UTAC) has awarded the tyre maker the ISO 9001 and ISO/TS 16949:2009 certificate in view of the facility’s adherence to high
Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres
standards of Quality Management.
Ltd said, “In a slow-growth market across geographies, further marred by
UTAC is a certification organization that contributes to the development of
unregulated imports of tyres in India, we have planned and invested to
industrial standards (IEC, ISO) and has been designated as an Organisme
capitalise on the future opportunities. This strategic planning will reduce
Technique Central (OTC – Central Technical Body) by the French government
our dependence on a particular market for growth and help us expand
with responsibility for centralization and monitoring of inspections.
our global footprint.”
The ISO TS 16949:2009 certification has been awarded to Michelin India in respect to the tyre maker’s continued development of its quality management
Cross Currency Reference Chart for Key Financials: Q1 FY2015-16 Net Sales Operating Profit Net Profit
Rs Billion 28.32 5.29 2.91
system, with Michelin’s Chennai plant of Michelin India having demonstrated
US$ Million Euro Million 446.15 403.25 83.17 75.17 45.78 41.37 www.satreads.com
ChemaChina’s acquisition of Pirelli finally complete! It has been announced that all the necessary regulatory approvals for ChemChina’s purchase of a majority share-holding in Pirelli has been completed and the long awaited ‘transaction’ will finally be completed on 11th August 2015. This final agreement will trigger the mandatory tender offer for the remaining Pirelli shares (at Euros 15 each).
www.satreads.com
over time, its continual improvement by means of emphasizing prevention of manufacturing defects and by reducing variation and waste in its supply chain.
Michelin Tractor App now available! Michelin has announced that its free agricultural tyre pressure calculator App is now available for iOS devices therefore providing even more farmers and contractors access to instant professional tyre pressure advice. The App is compatible with iPhone, iPad and iPod Touch devices and works out the most appropriate tyre pressure settings for desired load and speed on any farm tractor.
www.satreads.com
World News
•
35
China objects to imposition of punitive duties on imports of tyres by US The United States will impose punitive duties on certain passenger vehicle and
companies competing with Chinese firms, experts said.
light truck tyres imported from China, a US trade authority ruled recently,
It has been estimated that total cost to American consumers from higher prices
despite China’s strong objections as per Xinhua.
resulting from safeguard tariffs on Chinese tyres was around $1.1 billion in 2011.
A US industry is “materially injured” by imports of these Chinese tyres that “the
The US invoked a China-specific safeguard to impose punitive duties on imports
US Department of Commerce has determined are subsidized and sold in the
of Chinese passenger and light truck tyres between 2009 and 2012.
United States at less than fair value,” the US International Trade Commission
The Chinese Ministry of Commerce has voiced strong opposition to Washington
(USITC) said in a final ruling.
for its unfair and discriminative methods used in the trade remedy investigation,
The Commerce Department announced earlier that it had determined that these
which it said breached the rules of the World Trade Organization (WTO) and US
Chinese tyres had been sold in the United States at dumping margins ranging
domestic laws.
www.satreads.com
from 14.35% to 87.99%. The department also said producers and exporters of these Chinese products received countervailable subsidies ranging from 20.73% to 100.77%. As a result of the USITC’s affirmative determinations, the Commerce Department
New versatile retread from Goodyear
will issue antidumping and countervailing duty orders on imports of these
Goodyear Europe has recently introduced a new UniCircle Retread
products from China, the trade panel said.
pattern – the G186 MSA (mixed service, all position).
In 2014, imports of passenger vehicle and light truck tyres from China were
The G186 MSA incorporates a number of features including UniCircle
worth about $2.3 billion, according to the Commerce Department. The department launched the anti-dumping and anti-subsidy investigation into Chinese tyres last July, at the request of United Steelworkers, a US labor union. It was quite unusual that this case was brought by US workers rather than the
technology plus three zig-zag circumferential grooves to give additional all-season traction and a long wearing compound for increased tread life.
2015 , 3 1 1 A Nov. 1 · CHIN GHAI SHAN
Further information: Messe Essen GmbH · Phone: +49 201 72 44-232 · 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
www.satreads.com
36 • Competition / Subscription
promotion
TYRES & MORE
Deal of a life time
Tyres & More is offering one potential franchisee the opportunity of a lifetime! Successfully convert an existing store to a Tyres & More franchise before December 2015 and Tyres & More will waive the joining fee!
The offer is valued at R50 000.00 and only available to SA Treads readers!
Name:_________________________________________________ Company:______________________________________________ Address:_______________________________________________ ____________________________Code:______________________ Telephone:____________________Cellphone:__________________ 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
Congratulations!
to our previous competition winner
A M Cawood of The Co-Op, Humansdorp whose correct answer wins him a set of GT Radial tyres to the value of R5 000.00.
subscription
I/we wish to subscribe to SA Treads for one year’s subscription (incl. VAT and postage) Local (SA) R 121.00 International R 302.00 (Please address cheques to Sky Publications)
Name:___________________________________________________________________________ Company: ������������������������������������������������������������������������ Address:________________________________________________________________________ ��������������������������������������������������������������������������������������� ____________________________________________________________________________________
Code: �������������������������������������������������������������������������������
Profession:____________________________________________________________________ Telephone: �����������������������������������������������������������������������
Get your entries in on: www.satreads.co.za
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