SA Treads June 2011

Page 1

Dandelions – the new rubber source? One-on-One with Supa Quick’s Ramano Daniels New eco-friendly products from Continental and Pirelli

Vol 17 • June 2011

Rubber prices hit tyre makers hard

Focus on Tyre COSTS

Apollo’s Glittering Awards Gala

A set of Scorpion Verde tyres courtesy of Pirelli



I n t r o d u c t i o n • 1

Contents

A

the

One-on-One New legacy with Supa Quick Leader, Romano Daniels...........................

2

Focus on Synthetic rubber costs set to rise as natural rubber prices soar ........... Rabbit Feed a Source of Rubber? Dandelions Hold the Key! . ....................................................................

9 17

New Products Continental Treads New Ground – Enter the ContiEcoContact 5 and ContiSportContact 5...................... Enter the Scorpion Verde Pirelli’s first eco tyre for SUVs . .....................

19 23

Industry News Tubestone celebrates 10 years of successful trading ............................ A night to remember! Apollo Awards evening recognises Dealers in grand style.............................................................................

24 29

Conti Corner Continental’s share of commercial segment set to escalate ..................

32

Talking Tyres TYRES in motorsport – Win on Sunday, sell on Monday ......................

37

Goodyear News Goodyear’s astonishing new eagle has landed.......................................

40

Dealer Profile Retail kings enter Tyre Trade!..................................................................

43

World News Rubber plantation acquisitions a possibility for Apollo........................... Truck tyre of the future? Michelin reveals five tonne trailer tyre............. World’s priciest tyres – set of Bugatti Veyron rubber costs 23 500 pounds! Pirelli’s new hard tyre to make its debut in Spain................................... Sumitomo rubber considering Brazil, India tyre factories . ....................

47 47 47 47 47

Competition, Subscription, Website . .......................................

48

Front Cover: ©iStockphoto.com/Vasiliy Koval Editor

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Speculation that the tyre sector could well be hit by another tyre price hike in the latter part of 2011, is not without foundation, it would seem. Primarily dictating these spiralling costs are raw material increases, in particular, natural rubber which is becoming a scarce commodity as a result of natural disasters disrupting production and growing demand from developing nations. Tyre makers across the world are feeling the pinch and our local four are no exception. In this issue we take a closer look at the influencing factors responsible for this state of affairs and examine the long-term implications for the consumer. We ask the local producers to offer their views on the matter as well as offer possible long-term solutions to the crisis. What, if anything, can be done to cushion the blow and what measures are being put in place to ensure a sustainable way forward? All this and much more will be addressed in our feature story. Astoundingly and according to latest scientific research, the humble dandelion could possibly offer a stellar solution to this problem, as its properties mimic those found in natural rubber. Incredible? We thought so too, but our story on page 17 confirms this to be the case. Also in this issue, we feature two exciting new offerings from Continental for the passenger market as well as the new Scorpion Verde – Pirelli’s first eco-friendly tyre for the SUV and Crossover markets. After all, according to Pirelli, it makes sense to target the vehicles with the heaviest impact on our environment! One lucky reader stands the chance to win a set of these magnificent new tyres so don’t forget to enter our quarterly competition. Other stories include the recent Apollo Awards evening – a grand affair and one that paid tribute to the top performing Dunlop Zone stores in the country. Attended by the industry’s elite, it will go down as a night to remember. Oh… and speaking of accolades, Tubestone also has to cause to celebrate having reached an important milestone – 10 years of successful of trading. Turn to page 24 for this story. Last but by no means least we come face to face with the new man at the helm of the highly successful Supa Quick franchise. Romano Daniels assumed the role of managing director in the wake of Gavin Kockott’s departure 14 months ago. In a candid interview he spells out the challenges and aspirations of his new role and outlines how he plans to take the franchise group to the next level. So, sit back and enjoy our winter edition.


2 • O n e - o n - O n e

A new legacy One-on-One with Supa Quick Leader,

Romano Daniels

The legend that is Gavin Kockott, took a final bow as founder and MD of the supremely successful Supa Quick franchise of retail stores, in February 2010. Gavin had not only been instrumental in establishing a company that has since grown into the largest retail distribution company in SA, but the franchise model that he and his management team employed, set a new benchmark in the local tyre business…… formidable shoes to fill for any successor. To further compound the situation, Gavin’s departure elicited a wave of shock and incredulous disbelief within the industry. Change was suddenly inevitable and the franchisees were understandably concerned as to how this monumental development was going to affect them and their businesses. It was under this delicate set of circumstances that Romano Daniels accepted the challenge of steering the ship into what, for the majority of franchisees, was an uncertain future.


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O n e - o n - O n e • 5

His extensive career with Firestone and later Bridgestone in a Sales,

were not altogether supportive of my new role was made abundantly

Training, Human Resources/industrial labour capacity, followed by

clear to me during the first National Council meeting, where I was

several years in Public Relations and Marketing rendered him an

told that they viewed me as nothing more than Bridgestone’s ‘puppet’

excellent candidate for the job, but Supa Quick’s franchisees were not

and that they didn’t believe that I would be able to make any valuable

altogether convinced. Romano lacked hard core retail experience. And

contribution to the franchise as a whole or to their businesses.

he was further regarded as the ‘Big Brother’ of Bridgestone. Clearly, Romano had his work cut out for him if he was going to prove to his

That could not have been easy to hear. How did you react?

worth and ability to contribute positively to the Group.

It was important that I remained calm. I knew that my response would determine the new direction of the company, so I thanked them and said

14 months since he was appointed MD of Bridgestone Retail, we catch

now that I knew what I was dealing with, I was better prepared in order to

up with Romano for a candid interview where he brings us up to date

overcome those perceptions. From the outset, there was no honeymoon

on what he refers to as the biggest challenge of his professional career.

period – the only thing left to do was hit the ground, running.

Romano, thank you for making the time to meet with

I am reminded of the old adage that today’s problems

us. Some would say that only an extremely brave man

are not necessarily solved with yesterday’s thinking.

would accept the challenge of walking in the shoes of a man such as Gavin Kockott. How would you respond

In short, I emphasised the need to create a new space

in which we need to operate. All I asked for was that

to this? I would say that I don’t plan on walking in Gavin’s shoes. No one will ever deny Gavin’s achievements in creating

This role does not

they didn’t judge me on my predecessor or even on my

demand a gung-ho

past….but purely on my understanding of the business

and building a brand of such power and excellence. 14

approach but one of

months following his departure, Supa Quick is not in

measurability

disarray and that’s largely due to the strength of the brand.

and how we are going to move it forward. How did you go about gaining an understanding of

the business? The first order of the day was to begin understanding the imperatives of retail. I gave myself 100 days - a benchmark used by new Presidents to their office - to

That being said, I don’t believe in the notion of filling someone else’s boots, which is why I have taken the decision to walk

grasp the concept, a time that was used purely to learn, understand

my own path and create my own legacy, together with the team I’m

and come to terms with the issues at hand. The better part of 2010 was

currently developing.

spent visiting at least half of the 256 outlets across the country (the remainder will be addressed during the course of 2011) a commitment

The latest challenge for the Supa Quick brand, as I see it, is for it to

which I believed to be critical to the process. Thankfully I have a

evolve to the next level. Achieving this will empower the business to

supportive wife, as you can imagine the extent of travelling and time

deal with the ever-changing demands of the market, thereby ensuring

away from home such an undertaking requires.

its sustainability and longevity. This is where I will be focusing my efforts and attention, even if it requires re-inventing the wheel in accordance

Unlike a company-owned concern, franchisees grapple with unique

with my skills, strengths and vision. Thankfully, I find solace in the fact

issues by virtue of their size, market segmentation and geographical

that despite whatever’s been thrown at me in the past, I’ve managed

location. They also function very differently, so getting to know them

to rise above the inevitable. I have been blessed with resilience

and their individual issues and concerns, required a lot of listening on

and resourcefulness so I will not be intimidated by a seemingly

my part. And listen, I did. It was important to arrive at a point where I

insurmountable challenge. I’m hoping that my resourcefulness – which

was equipped to ask the proper franchise-related questions in order to

largely hinges on my management style, people skills, leadership skills,

be considered as suitably qualified to provide value to their businesses.

ability to manage stakeholders and the eight years of experience I’ve amassed in dealing with the unions - will hold me in good stead.

The next 100 days were spent defining my role within the Franchise

What has been the most difficult obstacle and/or perception you’ve

not demand a gung-ho approach but rather one of measurability – and

had to overcome thus far in your new position?

strove to impress and create a culture of ‘let’s serve with a view to reaching

Undoubtedly, gaining the respect and trust of the franchisees. That they

our objectives.’

Operation. I dismissed the obvious connotations of my title – this role does


6 • O n e - o n - O n e

My former role within Bridgestone – although viewed with suspicion

their peers were fellow-franchisees rather than dealers and for them

by many – also turned out to be a huge benefit in that I was able

to begin referring to them as such. We need to understand that there

start connecting the dots between the two parties in order to achieve

is a difference between a franchisee and a dealer – this understanding

pressing changes within the franchise operation – I believe, with a fair

provides better discourse in the manner in which we tackle our

amount of satisfaction from the franchisees.

challenges. And of course, the age-old issue of competitiveness in

What came next?

still beholden to 78% of its discretionary income to household debt.

The next 100 days, having defined my role and identified market

Everyone felt that the franchise fee was too high and I’m happy to say

imperatives, were dedicated to formulating a direction for the Supa

that this has been adjusted in the fairest way possible.

the market also reared its head, almost immediately. The consumer is

Quick brand. In this time we’ve also paved the way for a legitimate agreement to What do you mean by market imperatives?

be drawn up that stipulates that irrespective of its owner, Supa Quick

We are operating in a new economy in terms of the consumer, one

franchisees will have first ownership rights to the brand. This is a major

that now centres around providing the customer with

achievement since it has been on the table for some

the best possible experience in-store. The fish no longer

time now.

swims to you…you have to go out and fish. And even the fishing spots have changed – one now needs GP

❝ In short and to reiterate, we’ve been able to achieve

coordinates, technology and the use of the correct tools

The fish no longer swims

more in 12 months than had been achieved in the last

to locate and hook them. Clearly, we need to find new

to you….you have to go

five years, and I’m happy to say that the entire team

solutions going forward if we are to compete effectively into the future.

out and fish. And even

played a significant role as a catalyst in initiating this change.

the fishing spots have We have defined three areas (I’m not able to disclose too much information in this regard) that we believe will

What about GPs? Do you believe they could be

changed.

propel us into the future and will enable us to take this brand to the next level thereby making it stronger.

improved on? When it comes to GPs we take an unorthodox view in that we don’t believe in one brush for all market segments. For us it’s about abiding by a pricing model

What has been the response from the franchisees?

that provides the right experience and allows the customer to feel safe

Now that we’ve opened the door they appear to be more receptive to the

about spending their money.

notion that the brand could well be in need of a degree of re-invention. Thankfully, time is a great leveller. They’re more positive to the process

I am often reminded of the story of the lawnmower on sale – great price

and appear to be willing to give me a chance to prove myself. Once

but do I need it now? This is the key question. Therefore, gross profit

upon a time Supa Quick was ahead of the curve but somewhere along

and or margins are derived mostly, from tyres and as a result we need to

the line, we were knocked off. Our opposition today followed the Supa

be smart in gaining a higher share of the customer’s wallet. So the short

Quick model with keen interest and when I look around I see a bit of

answer is, yes, without a doubt.

Supa Quick in each of them. The franchise has been struggling for the last 10 years to regain that coveted spot and this is our challenge, going

Tyres are a grudge purchase so we need to appreciate that in order

forward.

for us to be profitable, we must come to realise that we are selling and satisfying a need (rather than just selling tyres). The challenge for

That being said, I believe that we’re in a good space to achieve our newly

us, is to provide for a structured pricing model that does not spiral

implemented goals. The new corporate ID has helped a lot and we’re

towards eroding margins but provides value to the customer, whilst also

leveraging it in the best way possible. More important, few competitors

negating the anxiety in parting with the customer’s disposable income.

can rival us in terms of product, alliances, geographic footprint and brand strength.

We need to be responsive to market dynamics and for this reason, we believe in providing a variety of offerings along several tiers built around

What other challenges exist within the franchise? One of our biggest challenges was to enforce within the group that

the tyre product.


O n e - o n - O n e • 7

How important is it to maintain discipline within the Group?

Clearly, it takes a collective force to bring about a new order of

Discipline within a group such as this must exist particularly in situations

understanding but I do believe it’s possible and hope I’ll be around to

where individual actions could adversely affect the other franchisees,

see it materialise one day.

not to mention the brand. Should individual activities threaten the brand in any way we will have no alternative but to address the matter with

It appears you’ve come a long way since your appointment in March

the respective franchisee. Of course, our intention is not to dampen

2010, particularly given many of the negative perceptions you’ve had

their flair and enthusiasm for their business, but rather to provide a

to overcome.

framework under which their entrepreneurial flair can shine. When we ponder the question why belong to a franchise model then the answer

Sometimes negative perceptions can be an advantage in that not much

concerning discipline becomes clearer.

is expected of you. This way there is only way…and that is up! My approach is to look at problems while also seeking the opportunity. There

Is there much training taking place?

is a single lesson I’ve learnt in my business travels with Bridgestone: a

Training is a major focus, not only with respect to product knowledge

problem clearly understood, is a problem 50% solved. Therefore, the

but more importantly perhaps, with respect to the

solution must be around the corner!

brand and franchising in general. We’ve changed all our training material, starting with the value code and further introduced training at branch management level. This is all part of a drive to increase efficiency in every

What are your thoughts, 14 months on?

Much work has gone into stabilising this channel and

‘Store of the Year’, is

inspiring confidence in the reality that the brand has a lot

ergonomic principles of these outlets. It’s no longer

an initiative that will

of the right direction going forward as well as to create

enough for the franchise to ‘tick over’. We need to

acknowledge franchisees

area, from the way we open and run new stores to the

evolve in the next 10 years to engineer movement and to create a new benchmark which our franchisees can aspire to. One of the ways we hope to do this is by re-introducing

of legs still. Equally, we had to convince the franchisees a balance between the supplier/owner relationship, whereby Bridgestone South Africa and Bridgestone

for their creativity and

Retail actively begin to understand their respective roles

ingenuity and also provide

within one group. This is a very important process.

a platform for them to

As for the franchise network, I can’t please them all, but

incentives such as ‘Store of the Year’, an initiative that

be recognised among

in the main, and if you speak to a few at random, I’m

will not only acknowledge franchisees for their creativity

their peers.

confident they will admit to feeling more positive and

and ingenuity but also provide a platform for them to be recognised among their peers.

that they are confident that the brand is in good hands

- hopefully (smiles).

What about those at the coalface such as the counter

I’ve also learnt not to take franchisees’ frustrations

staff for example? Will they be undergoing any

personally. I understand their concerns and realise that

training?

they come from a place that spells the message, ‘I’m concerned about

The counter staff is critical to the success of any retail business.

my business’, nothing more.

Unfortunately, it would appear that in this industry, we’ve become our own worst enemy. It would seem that we, as counter staff, have

Thus far it’s been a tough and

forgotten how to sell. We need to be shocked into a new operating

arduous

journey

but

the

environment, one that encourages the concepts of knowledge and

rewards of elevating the Supa

passion to preside over price. Investing in enhancing the skills and

Quick brand to a market

knowledge of counter staff is sadly neglected in this industry often due

leader will be well worth it in

to budgetary cuts and the high staff turnover that has characterised

the long run.

the industry. Franchisees are often reluctant to invest in training at this level because of the importance of having sales persons at their stores, or alternatively, at the prospect of losing good salespersons to the opposition. However, in order for us to change the way we do things, we have to sacrifice a small price for a significant benefit in the long run.


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F o c u s o n T y r e C o s t s • 9

SYNTHETIC RUBBER

COSTS SET TO RISE

as natural rubber

prices soar

2011 could well turn out to be the most challenging year yet, at least where the tyre business is concerned. Amid rumours of one or possibly even two more new tyre price hikes before the year is through, consumers justly have cause for concern. Largely driving this trend are escalating raw material costs, an alarming trend which shows no signs of abating.

ŠiStockphoto.com/Sander Kamp


1 0 • F o c u s o n T y r e C o s t s

According to senior economist, Jom Jacob at the Association of Natural Rubber Producing Countries, natural rubber surged to a record high of more than $3.50/kg recently, due to tight supply as production in Thailand – the world’s largest producer of the material – was being curtailed by extreme dry weather. He states that the price surge of natural rubber came on the back of a prolonged drought in northern Thailand due to the prevailing El Nino phenomenon in parts of Asia. Vice Chairman of Colombo Rubber Traders’ Association (CRTA) and MD of Kegalle Plantations PLC, Sunil Poholiyadde was further reported in Sri ©iStockphoto.com/luoman

Lanka’s Daily Mirror as saying that commodity prices as a whole have

The rise in natural rubber prices is adding pressure to the tight synthetic rubber market.

come down due to unfavourable weather conditions in the country and that these natural disasters are also

Closer to home, the new tyre makers offer

affecting main buyer, Japan. “We are heading toward the south-western monsoon, where tapping will end. However, we don’t see a drastic drop in prices,” he

their interpretation of the situation: “With the

said before reinforcing that the present supply cannot

Natural rubber prices

meet both local and international market demands,

are going up so sharply

due to low production capacities in Thailand.

that synthetic rubber

positive development of car and truck production worldwide in the last 15 months the demand for tyres also increased; this has led to a massive increased demand for natural rubber. At the same time the supply of rubber is reducing due to natural

To make matters worse, the rise in natural rubber prices

makers have no choice

disasters in the main producing countries and

was adding pressure to the tight synthetic rubber

but to raise their prices

political unrest in other countries such as Liberia.

market, which was beset by spikes in cost of feedstock butadiene (BD), industry sources say. Apparently, BD prices have climbed by more than $200/tonne over the last few months to around $2 000/2 050/tonne CFR (cost and freight) according to global chemical

as well

So demand grows while supply reduces,” suggests Dieter Horni, MD of Continental Tyre SA. “Added

to that, natural rubber has become somewhat of a commodity that’s good for speculation, especially in Asia.

market intelligence service, ICIS pricing. “As for SBR, again it’s a question of supply and demand. During the The price increase is likely to lift costs for manufacturers that are

recession, car manufacturers reduced their inventories and the demand

heavily dependent on the commodity, particularly tyre makers, industry

for new vehicles reduced. Now that the economy is showing signs

sources predict, and the use of synthetic rubbers as an alternative may

of recovery and the need to protect cash flow is less strong, we are

not offer much comfort since prices have also started to run up. Major

beginning to see an increase in their inventories once again.

synthetic rubber makers around the world remain convinced that global synthetic rubber prices may surge on likely strong orders from tyremakers looking for a cheaper alternative raw material to natural rubber.

“And then there’s the issue of fixed pricing. The Chinese government has fixed the price for natural rubber at a minimum of $4/kg from the $2.5/kg mark where it originally stood, again due to high demand.”

But, according to A.F.S. Budiman, Secretary-General of the International Rubber Study Group, with demand for elastomers, both for synthetic

Georg Schramm, Head of Sales & Channel Development along with

rubber as well as natural rubber, continuously increasing at a rate of

Gareth Passmore, Head of Marketing for Apollo Tyres South Africa

3-4% per year, substituting with synthetic rubber may not offer much

add: “OE fitment was up by 8 percent globally in 2010 and is still

respite, particularly as SBR is a petroleum derived product.

growing this year despite the impact of Japan’s tsunami disaster on manufacturers such as Toyota. Demand for tyres used in replacement

“Natural rubber prices are going up so sharply that synthetic rubber

fitment is growing too. In short, the global tyre market grew by about

makers have no choice but to raise their prices further,” claims a

9% in 2010 and we expect to see similar growth this year. At the same

Chinese SBR maker, “especially that natural rubber and synthetic rubber

time, drought and heavy rains in most rubber plantation areas has

prices usually move in tandem. They are traditionally interdependent

reduced output significantly (Thailand’s rubber production in 2010 was

substitutes.”

off by as much as 5%. Rubber production is expected to lag for about



1 2 • F o c u s o n T y r e C o s t s

two years so the combination of increased demand and reduced output

remain under pressure due to the continued influx of cheap imported

is producing record prices for natural rubber which obviously will have

product.

an effect on the price of finished goods. And of course as a petroleum product, Styrene Butadiene Rubber is obviously also affected by the

Says Schramm: “The USA has introduced a 35% tariff on imported

current surge in oil prices, so yes, until things settle down in the crude

products to provide their manufacturers with some protection but

markets, we can expect elevated synthetic rubber prices too.”

the SA market remains largely unregulated, which means this margin pressure is likely to continue for the foreseeable future.

Lize Hayward, Group Public Relations Manager for Goodyear SA adds: “Usage is increasing globally as economies recover from the recession

“The rising cost of steel used in steel belt radial tyres is another major

and emerging markets continue their growth. “ Luckily, however and

factor and this despite increased crude steel output worldwide. The cost

despite the perception that supplies will tighten, Goodyear continues

of steel production has risen internationally and this is obviously being

to enjoy an ample supply to support its business

passed on to us as refined steel consumers.”

needs.” That said, Goodyear is in agreement that general inflation and the impact of higher oil prices are

Manufacturers take action

To cushion some of the blow, the four local tyre makers are constantly looking at ways to alleviate

impacting natural as well as synthetic rubber but

The USA has

also stress that products across the board are being

introduced a 35% tariff

affected, not only tyres.

some of the financial pressure on the consumer.

on imported products

“Tyre markets worldwide are very price sensitive which means that as a manufacturer, you are

To compound the situation, escalating raw material

to provide their

constantly compelled to take measures against

prices are not the only things impacting on tyre

manufacturers with

increasing costs of production, distribution and the

prices, according to Schramm and Passmore. They claim that margins for the SA tyre manufacturers

some protection but the

and indeed for the global tyre market as a whole,

SA market remains

which means this margin pressure is likely

So why not plant more rubber trees one might well ask? “Access to one’s private caoutchouc (natural rubber) tree will not solve the problem,” claims Horni. “It takes up to seven years to reach your first harvest and even then you are reliant on

to continue for the

climatic conditions which could wreak havoc with

foreseeable future.

your plant. As for other raw materials, they too are

subject to demand from other industries, thereby pushing up the cost of mining. “The big challenge for us in the future will be to find

alternatives for certain compounds which are environmentally friendly, sustainable and offer regrowth where possible whilst also delivering the same quality or better, at a cheaper production price.” Alternative raw materials are very much the focus with Goodyear as well, with Hayward claiming that the company is actively pursuing different options such as Biolsoprene as a substitute to SBR. Apollo agrees. “Ongoing Research and Development is absolutely ©iStockphoto.com/Bartosz Hadyniak

Recent floods in the rubber producing countries wreak havoc with supply.

largely unregulated,

like. This is over and above the issue of raw material prices,” says Horni.

critical. Manufacturers need to experiment with new compounds and new technologies that utilise less expensive raw materials or prolong the life of the tyre. Only then, can they ensure consumers get the best return


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1 4 • F o c u s o n T y r e C o s t s

Will the end user benefit from the fair price

©iStockphoto.com/Warren Goldswain

increases?

❝ on the price they are paying for an increasingly

the key here is

expensive product. It’s a major focus area for the

to ensure that fair

Apollo Tyres development teams both locally and internationally,” say Schramm and Passmore. Protecting the consumer According to Continental, the likelihood of a

consumer,” states Apollo’s Passmore, “but the

price increases – in

– are passed down the chain, from us as the

line with rising raw

manufacturer, to our dealers and in turn, to the

material and labour

further price hike later in the third quarter is a

costs – are passed

strong possibility. “We have already increased our

down the chain,

prices twice this year (January and May) and it’s

from us as the

later on this year,” says Horni. “It depends on the

manufacturer, to our dealers and in turn, to

name but a few, as well as on the price development

the end user

for electricity, steam fuel and transportation. And

line with fluctuating production costs can also help cushion the consumer from the shock of the ‘one

As for Goodyear, their focus remains on seeking

as natural rubber, crude oil, steel, carbon black to

let’s not forget the development of wages and

end user. Our policy of incremental increases in

big increase.”

possible we may have to react in a similar fashion development of the different raw materials such

key here is to ensure that fair price increases – in line with rising raw material and labour costs

to offset higher raw material costs with price and mix, rather than just price. “We are also working to reduce costs throughout our organisation as much as we can,” adds Hayward.

“The one positive thing to bear in mind is that

salaries which traditionally, are the main drivers of

without passing down costs to the end users,

price hikes.

tyre manufacturers are unable to invest in new technologies,” claims Passmore, “technologies which in the end, stand

Also likely to impact, he further maintains, are political issues such as

to not only extend the life of the tyre, but more importantly perhaps,

the latest Libyan crisis. As one of the main suppliers of oil to Europe,

boost the safety features of one of your vehicle’s most vital components

Libya’s inability to deliver could have an equally massive impact on raw

– your tyres, which in effect serve as your only contact with the road.”

material prices.

*Bridgestone SA was approached for comment but declined the “Obviously some of these costs will have to be passed onto the

invitation.




I n dOunset -r oy n N- Oe wn es • 1 7

Rabbit Feed a

Source of Rubber?

Dandelions Hold the Key! Research project idea cited for its future potential

Children love to blow their seeds into the wind and rabbits think they

“The first research results clearly show Russian dandelions to produce a

are a gourmet delight. Now dandelions have aroused the interest

high-quality natural rubber. Its physical and chemical properties match

of the rubber industry as well. A research team at the University

up well with those of the Brazilian rubber tree.

of Münster has studied the latex in them and come to an amazing discovery. Dandelions produce gum elastic – equal in quality to rubber tree latex. This could make the wild herb a major source of rubber in the future. Auto parts supplier Continental AG in

to be able to use them to produce natural rubber. I hope that dandelions will soon number among Germany’s crop plants. It is their due.”

Germany has latched onto these lab results. The firm is now

Biochemists have found the enzyme that governs polymerization of the

hard at work bringing this idea forward. It is a member in the

plant’s latex. They have managed to “switch off” this enzyme so that the

consortium of research institutes and industry partners that

latex can now flow freely and be siphoned off the plant. That is a major

intend to transform the idea into market products.

step forward.

The tyre industry views the latex in dandelions as something

“Rubber makes up much of tyre. Forty one per cent of the

they can use in place of rubber tree latex. This would

ContiPremiumContact 2 passenger tyre, for instance, is rubber,”

solve a major global problem. Nowadays natural rubber comes from the latex of the rubber tree. Grown mainly in Southeast Asia, this tree harbors a number of problems. Worldwide demand exceeds the supply. What’s more, a fungal infection threatens the rubber tree.

confirms Rene Olivier, spokesperson for Continental Tyre in South Africa. Researchers feel that dandelions could someday supply a tenth of the German rubber demand.

There are also supply issues with synthetic rubber in

“This project is of great interest to material development,” adds Dr.

that petroleum supplies have an impact on synthetic

Boris Mergell, head of Tire Material and Process Development &

rubber. World market prices for this raw material also

Industrialization at Continental AG.

vary greatly over time.

©iStockphoto.com/iSci

“Growers would have to plant dandelions on a large scale if industry is

“Success in making dandelions a source of natural rubber would enable

Dr. Dirk Prüfer, professor at the Institute of Plant

us to respond at rather short notice to supply shifts. After all, the plant

Biology and Biotechnology at the University of

needs only one year from seeding to harvest. From the cutting of the

Münster in Germany, confirms the quality of

first sod to the harvesting of the latex, setting up a run-of-the-mill rubber

dandelions.

plantation requires roughly five to seven years,” he adds.


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www.continental.co.za


N e w P r o d u c t • 1 9

CONTINENTAL Treads New Ground

– Enter the ContiEcoContact 5 AND ContiSportContact 5 The picturesque coastline of the Algarve in Portugal, was the magnificent backdrop

The first of the two products,the new ContiSportContact 5, (both products are fully patented) is suited to sporty cars and SUVs with

for the launch of two impressive products

sporty driving characteristics, and is the culmination of extensive

for the passenger tyre segment this year,

which translate into a marked reduction in braking distance on both wet

courtesy of Continental Tyre. The tyre maker assures remarkable improvements

research and a multiplicity of tests during the development stage, all of and dry roads. In addition, rolling resistance is cut by over 10% while mileage performance is enhanced by 13%. These improvements are due in particular to the tyre’s innovative compound which is designed to achieve maximum transmission of forces when braking and low

in rolling resistance and wet and dry

rolling resistance during normal driving. To do this, the rubber formula,

braking performance courtesy of a new

the tyre. Black Chilli Technology is a specially developed compound

casing, compound, tyre contour and

referred to as Black Chilli Compound, utilises the different vibrations of technology involving an innovative type of racing grade carbon black, which ensures a speedy warm-up process and greater stability. The

tread pattern design, elements that reflect

polymers in the compound are reinforced with nano particles, making

considerable progress on the part of the

road, so grip is substantially enhanced and the tyre far more stable. In

company’s tyre engineers.

them extremely supple. Thus they provide more contact points with the addition, special grip resins provide optimum interlocking with both wet and dry roads, thus achieving shorter braking distances.


2 0 • N e w P r o d u c t

Continental is claiming a marked reduction in braking distance on both wet and dry roads.

The manufacturer further claims improvements in tyre handling, which they

in terms of all the tyre elements involved in order to achieve the high level

say can now deliver an even sportier performance than its predecessor.

of progress attained when compared with the tyre’s predecessor, but the

The second product, the ContiEcoContact 5 is eco-friendly and also has enhanced safety at the core of its development. Historically, combining short braking distances on wet and dry roads with low rolling resistance has been considered a developmental challenge for tyre companies. However, this latest offering from Continental resolves this problem with apparent ease. Granted, the company’s tyre engineers did have to tread new ground

results speak for themselves. They managed to reduce rolling resistance by 20% increased mileage performance by 12%, whilst still managing short braking distances on wet roads. And according to them, a car fitted with the new ContiEcoContact 5 will use around 3% less fuel than the same vehicle equipped with standard tyres – an unbelievable saving by anyone’s standards! Modular Zone Technologies One way in which Continental has gone about achieving these remarkable improvements is via the use of Modular Zone Technologies whereby engineers concentrate on developing each different zone – rigid zone (bead), flexing zone (sidewall), load zone (tread pattern) – separately, based on their respective functions and demands. This appears to be a revolutionary approach to tyre development and one unique to Continental Tyre at this point in time. Added to this, the latest simulation technologies are now play a bigger role than ever before so as to ensure that all the various functions interact with each other successfully, an approach which is said to accelerate the development process. Putting it to the test In an effort to prove these newfound claims surrounding their new


N e w P r o d u c t • 2 1

The international press put the new tyres to the test.

products, Continental invited motoring journalists from across the globe

them it did - there was no denying the improvements of the new offerings

to Europe, to attend the unveiling of the new ContiEcoContact 5 and

versus their predecessors. We could see and feel the difference. More

ContiSportContact 5 in early April. Members of the press flew in from all four corners of the world, including South Africa. No expense was spared on the part of Continental in putting

important, the data chip with which we were each furnished and which stored this telling information was testament to the tyres’ remarkable features.

together an event that visibly demonstrated the remarkable properties of

Clearly, Continental Tyre has made huge inroads in developing tyres that

the company’s latest two additions to its passenger tyre stable.

cater not only for the motoring enthusiast, but for the cost-conscious

Using some of the latest electronic technology and equipment available,

consumer as well.

the Continental management team set out to create a series of different

Look out for the new ContiEcoContact 5 and ContiSportContact 5 which

driving scenarios for the guests, exercises that provided concrete proof

is expected to reach South Africa in the last quarter of 2011 and will

that the claims being made had substance. We were put through our

be available in selected sizes (ContiSportContact – 205/50 R17, 215/45

paces via the use of special technology that is able to measure driving

R17, 245/35 R18.

style and performance as well as fuel economy. Individual driving data was transmitted and saved onto a special micro-chip that was equipped to connect to the vehicle during the course of some of the exercises, particularly those that measured wet braking and fuel economy. Moreover, the large fleet of vehicles secured for the day, was shod with the new products as well as their predecessors, with the guests encouraged to drive both in the interests of attaining an accurate picture of the capabilities of the new tyres. Suffice it to say, one couldn’t help but be impressed. Here is a company that is prepared to go to surprising lengths to prove its claims, and prove


pirelli.co.za

F1 teams made a choice.

pirelli. oFFicial tyre supplier F1.

POWER IS NOTHING WITHOUT CONTROL


N e w P r o d u c t • 2 3

ENTER THE SCORPION VERDE PIRELLI’S FIRST ECO TYRE FOR SUVs 19 May was an exciting day on the calendar for Pirelli

Performance, the technology developed by Pirelli tyre

South Africa. At Nixon (Cradle of Humankind), the Italian-

laboratories that focuses on ecology and road safety, or

based tyre maker introduced its first high-performance

– in other words – sustainable mobility.

eco tyre for the SUV market. Aimed specifically for

That being said, the tyre maker claims that having an

vehicles with the highest environmental impact, the new

ecological heart does not mean sacrificing performance,

Scorpion Verde has been created taking full advantage of

particularly in terms of safety and comfort. As such,

all of Pirelli’s latest research as well as a design system that

Scorpion Verde allegedly combines ecological features

integrates new materials, structures and tread patterns, in

with improved braking, greater traction on wet surfaces

order to guarantee savings, respect for the environment,

and better handling. A number of factors have contributed

comfort, and safety on all road surfaces. The new

to these results, such as the new materials it uses in its

Scorpion Verde complete’s Pirelli’s range of Scorpion

compounds, which integrate the latest technologies;

tyres which already includes the ATR for 4x4s and the

nano compounds, that is, cutting-edge polymers that

Scorpion Zero, developed for more high performing

adapt to various road conditions; and hybrid fibres,

SUVs. Specifically created for the latest generation in

which combine different materials to achieve diverse

SUVs and Crossovers, such as the Volkswagen Touareg,

performance.

which has already chosen it as its original equipment, the Outlasting the competition

Scorpion Verde marries technology with ecology so as to achieve its two-fold objective: to contribute to stability

In true Pirelli fashion, Pirelli SA chose to introduce their

whilst consumption among all categories of SUVs and

latest offering to members of the South African press in

Crossovers; to ensure safety and comfort for the drivers

a fun, albeit unorthodox manner. After being welcomed

of such vehicles, since they have demonstrated the

by Pirelli SA MD, Gianluca Renato who explained the rationale behind the development of the Scorpion Verde,

greatest propensity for ecology among motorists. Boasting new materials as well as a new structure that guarantees steady

and highlighting the tyre’s features, the media was split into teams of four and

performance throughout the tyre’s useful life in terms of diminishing

put through a variety of ‘Survivor’ challenges to coincide with the theme of the

noxious emissions, noise reduction, running economy, shorter braking

launch – The Scorpion’s Tale.

distances and comfort, the Scorpion Verde allegedly promises a host of

The teams were required to undergo a series of challenges for which points

benefits, among them, savings and durability. All its ecological features are

were awarded. Challenges included: igniting a fire using rubber sticks; an

apparently guaranteed by a combination of factors: the development of an

archery challenge; and negotiating an obstacle course while blindfolded.

optimised profile; the use of cutting-edge materials, an optimised design

Each team was provided with a vehicle (shod with the new Scorpion Verde

process and reducing energy dissipation. These features are said to provide

of course!), a map and a series of clues. Using these they had to drive to

a drop in rolling resistance equal to 20% in total, allowing for cutbacks in

designated locations collecting various tools they needed to change a tyre at

both consumption and noxious emissions. And the tyre is lighter and has

their final challenge – the Pit Stop Challenge. They were time and awarded

been designed to use 10% fewer raw materials, thereby decreasing its environmental impact per unit produced by the same amount. In short, the Scorpion Verde consolidates Pirelli’s Green

COM PETITION

points based on how fast they could change a tyre. Each member of the winning team received a trophy as

Turn to Page 48 for details on how to win a set of Scorpion Verde tyres. the Pirelli pZero Fashion Collection.

well as a voucher to select their choice of footwear from


2 4 • I n d u s t r y N e w s

TUBESTONE CELEBRATES 10 YEARS OF SUCCESSFUL TRADING April of this year marked an important milestone for a distribution company

Moreover, the Tubestone ship is steered by a group of brilliant men.

that has its roots in humble beginnings. Tubestone is the brainchild of

Navigating the team responsible for the success that is Tubestone (Pty)

founder and present MD, Pieter Kruger, who saw an the opportunity to

Ltd are Pieter Kruger, MD, and Directors Alex Friedman, Jeff Wessels,

establish a distribution company that would become known for representing

Paul Howard and until three years ago, the late Michael Lusman.

some of the best tyres and tyre related products the world has to offer. And then there’s their exciting product range. Presently, Tubestone is associated

The doors opened for trading on April 2, 2001 with the company importing tubes and flaps. Before long the range

with two world-class tyre brands – BKT and

was extended to include OTR, Industrial, Agricultural,

Nankang.

Implement, Truck and Passenger tyres. BKT is one of the world’s leading Only five months after the first outlet opened in Cape Town,

manufacturers of ‘Off Highway Tyres’

another followed in Johannesburg. The Durban branch

and boasts the widest product range with

opened in 2002, with Bloemfontein following in October

more than 1 900 stock keeping units.

2004.

years

This Indian-based manufacturer takes

later, in 2007, Port

great pride in being a ‘One Stop Shop’ for

Three

Elizabeth was added to

all off-highway tyre

Electra Mining Show.

the mix, with Windhoek

solutions, with more than 90% of total

and Harare following closely behind. Very

tyre production being

soon, Tubestone will

exported to more than

also open a branch

120 countries across all five continents.

in Botswana, thereby Nampo Show – Susan and Elize.

providing a complete service

offering

Equally, Taiwan-based

to

South Africa’s most important

Nankang

neighbouring countries.

Tire Windhoek Branch Team. Karin, Philemon, Francois, Lukas and Annemarie.

According to the staff, a unique

Rubber

is

supplying

Tubestone

with

its

passenger tyre range boasts

defines

a long history as industry

Tubestone is the ‘Family’ feeling

leader in quality, reputation,

which Pieter has endeavoured to

research

create within the company. Every

and production capabilities,

characteristic

that

staff member is deemed important and is proud to be associated with

and

development

a reputation that has earned

Some of the ladies from the Cape Town Branch Team. Julie, Wendy, Marizanne, Reinette and Elize.

it commendation by clients and industrial players alike, on

the company.

home soil and abroad. “This manifests in all interactions and communication within the company and its loyal customers,” claims Yolandi Donaldson, Marketing Manager.

Mr Pieter Kruger and Mr Alex Friedman.

Says Pieter Kruger: “It is with great pride that we celebrated our 10th

“Our customers are treated like respected friends and they can be certain

Year Anniversary in April. Tubestone has achieved the impossible.

that we will always go the extra mile for them.”

With hard work, determination, a loyal customer base, and exceptional

Allegedly, Pieter painstakingly selected his team one by one, as a way of

company to be reckoned with.

management and employees, we’ve grown and developed into a ensuring that the company is run by the best possible group of people, individuals who are not only educated in their respective fields, but are also

“It’s very exciting to envision what Tubestone will be able to achieve in

loyal, dedicated and good hearted.

another ten years!”



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2 8 • M a n u f a c t u r i n g


I n d u s t r y N e w s • 2 9

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International), Graham Lessing (FitRite Mthatha), Quentin Lessing (Fit-Rite Mthatha) winners of the inaugural Apollo Tyres Chairman’s Award, Neeraj Kanwar (Managing Director Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Kleintjie Jooste (Malamulele Tyre & Exhaust) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Cloete Mdlokovana (Mdlokovana Motor Spares &Tyres) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).

A NIGHT TO REMEMBER!

APOLLO AWARDS EVENING CELEBRATES DEALERS IN GRAND STYLE Close on 600 esteemed guests attended a glittering banquet at the Palace of the Lost City in March to celebrate the success of the dynamic Dunlop Zone precision fitment concepts. Global manufacturing giant Apollo Tyres (owner-manufacturers of the Dunlop tyre brand in South Africa) and local subsidiary Apollo Tyres South Africa brought together over 200 Dunlop Zone dealers from South Africa and neighbouring countries to attend a high-key event that recognised the achievements of individual dealerships.

A delighted Quentin Lessing celebrates winning the overall Apollo Tyres Chairman’s Award, the first time this prestigious trophy has been awarded.

Cloete Mdlokovana of Mdlokovana Motor Spares & Tyres, Mafeteng, Lesotho receives his regional Chairman’s Award from Onkar S Kanwar (Chairman Apollo Tyres International) while Dr Luis Ceneviz (CEO Apollo Tyres South Africa) and Neeraj Kanwar (Vice Chairman Apollo Tyres International) look on.

(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Andre Roux (Auto Tyre & Exhaust) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).


3 0 • I n d u s t r y N e w s

The M.C for the evening was radio personality and sports announcer Sureshnie Rider

JUDGING CRITERIA: The Dunlop Zone stores were judged on two primary areas:

Apollo Tyres International Chairman Onkar S Kanwar welcomes guests

Georg Schramm, Head of Sales and Channel Development for Apollo Tyres South Africa announces the regional Chairman’s Award.

Dubbed ‘A Night to Remember’, the event was

South Africa five years ago, to the $2 billion

attended by senior executives from Apollo

company we are today. Fit-Rite has exceeded

Tyres Limited and invited dealer principals

the most stringent criteria to be the richly

from over 15 countries in Latin America and

deserved winners of our inaugural Chairman’s

Africa. The highlight of the evening was the

Award. Congratulations to Quentin, his staff

presentation of the inaugural Apollo Tyres

and their loyal customers.”

Chairman’s Awards to the top performing

Business Growth Net turnover growth Gross profit growth Adherence to terms Branding Standard Requirements Mystery callers Ghost phoning Zone store standards

Dunlop Zone dealership in each region

The award for top Gauteng tyre dealer went

by Apollo Chairman Mr. Onkar S. Kanwar,

to Auto Tyre & Exhaust of Menlyn Pretoria,

with the winner receiving the prestigious

followed by an award for top Mpumalanga

Chairman’s Award Trophy and a 5-star,

tyre dealer, which went to Malamulele Tyre

all expenses paid trip to India.

& Exhaust in Malamulele. The neighbouring countries also featured with Mdlokovana Motor

The recipient of this highest honour

Spares & Tyres of Mafeteng being awarded top

was Fit-Rite, Mthatha.

Lesotho tyre dealer.

Commenting

on

their

achievement,

After the formalities, the award winners,

Onkar S. Kanwar said: “We believe that our

dignitaries and guests partied the night away

dealers are the backbone of our business.

to the sounds of the Jonny Cooper Orchestra,

It is their strength, loyalty and commitment

one of the world’s leading big bands who were

to excellence that has driven our business

joined on stage by guest artist, Idols finalist Lize

success. The efforts of people like Quentin

Heerman to create the Glenn Miller Sound and

Lessing and his team have helped us grow

bring what was certainly A Night to Remember

from a $500 million company when we entered

to a close.

The Jonny Cooper Orchestra in full swing with special guest and Idols finalist, Lizé Heerman

Idols finalist Lizé Heerman belts out the big band classics with the Jonny Cooper Orchestra at the inaugural Apollo Tyres Chairman’s Awards


I n dOunset -r oy n N- Oe wn es • 3 1

Paula & Greg Robertson and Dusty & Neil Robertson – Wheel & Steel

December & Nellie Mlambo – Zibandlela Tyres

Debbie Martin – Apollo Tyres and Stoffel & Renee Olivier – Tyre Sure

Mahomed Moola – Khans Tyres; Ebrahim & Khatija Mohamed – Marlboro Tyres; Faried & Fatima Khan and Khalid & Nurisha Khan and Aziz Parker – Tyreman

Bennie Xu, Cloete & Nosanete Mdlokovana (Mdlokovana Motor Spares & Tyres)

Anita McCallaghan & Herman Hugo (Apollo Tyres)

Corne & Frik Smith; Jorien & Johan Jacobs and Martin & Marthea Smith all of Northgate Tyres

Jannie Serfontein – Apollo Tyres; Mohammed Makda – Apollo Tyres and Michael van der Merwe – Apollo Tyres

Hisham Layahi, Tsiti Mombeshora and Gary Treherne – Apollo Tyres


3 2 • C o n t i C o r n e r

Continental’s share of commercial segment set to escalate Continental Tyre SA launched its highly anticipated new generation truck tyres to the market in the first quarter of 2011. According to the company, the new product range features some of the latest innovative technology, alongside the advantages of their newly-patented ‘Airkeep’ technology which promises to reduce the incidence of on-road breakdowns. Four months have passed since the new commercial range was unveiled to the press, distribution network and end user trade. We caught up with Brian Clarke, GM Commercial Vehicle Tyres for Continental, to check on the progress of the new tyres and gain some insight into Continental’s aims and ambitions where the commercial market sector is concerned.


C o n t i C o r n e r • 3 3

Brian, thank you for meeting with us. Your presentation to the market

servicing and meeting the needs of end users in the commercial sector

a few months back ably demonstrated your complete confidence in the

can make for profitable businesses. Continental supports many of these

new product range. Will the full product line be manufactured locally,

successful truck tyre businesses and we are confident that our new

and if so, is the range already in circulation?

generation tyres will benefit their businesses even further.

It is our strategy to have as many products as possible locally manufactured and yes, I’m pleased to report that most of the new generation products

The market has changed with the commercial sector expecting an

are available already.

entire sales package, one that encompasses new tyres, retreads, onsite maintenance, on-road servicing and the like. Do you believe that

We believe the initial testing process is well underway. What kind

Continental, through its preferred dealer network, is equipped for this

of feedback are you getting or is it too early for you to obtain any

task, and if not, what must be done in order to achieve this?

meaningful results?

The market is far from homogeneous. Some transporters we speak to

Tyre testing has been in progress since January 2010 and again, I’m pleased

require only the cheapest tyre possible, while others take a more long-

to say that the results so far are impressive, both with respect to mileage

term approach to their fleets. The ‘cheap tyre’ market is not our market.

and fuel economy.

Similarly, the dealer network differs in its ability to supply the various services required. Continental does not offer a retread solution as yet, but

How do you intend achieving market penetration for this new product

we are in the process of finalising a cradle-to-grave package. The first step

range?

was to improve the core product. Now that this has been done, further

A combination of both above and below the line advertising has already

developments in this regard will soon be announced.

commenced as part of our strategy to improve our visibility to the end user. Over and above this, in recent months, we have improved our OE presence

What are your immediate areas of focus not that the product has been

significantly and are also planning to boost sales in the replacement sector

officially released?

via our loyal dealer channel.

Our immediate focus is to ensure that the quality of the product is the same as the European equivalent. The next focus area is to release the balance

The ContiPartner programme traditionally concentrates on the passenger

of product that has yet to be introduced to the market. And of course,

tyre segment. How do you intend bridging the gap?

simultaneously, we are concentrating on making the market aware of the

ContiParter is primarily a passenger tyre channel but there are many

features and benefits of our new range.

ContiPartner outlets that only specialise in truck….Tonway Tyres in Rosslyn is but one example. Where no ContiPartner outlets exist, we have several

What do you believe is the biggest challenge facing Continental Tyre SA

Kwikfit and independent tyre dealers such as the likes of Tyres 2000, Auto

in its quest to strengthen its position in the SA commercial tyre market?

& Truck or Tyrecorp to fall back on. They are well equipped to support us in

Continental does not have unique challenges. I believe that all tyre

the commercial tyre sector.

companies in SA face the challenge of rapidly increasing raw material and input costs. Added to that, the influx of low priced imported tyres continues

What about after-sales service, such as on-site tyre maintenance. Do you

to threaten local manufacturer market share and employment, not to

currently offer this service and if so, through whom?

mention the issue of availability of human resources – this has become a

Continental has always provided after-sales service through a specialised

serious area of concern in recent years.

sales force and customer service department direct to the end user and

Overall, I believe that timely investment in a new truck range has positioned

dealer channel. As for an on-site service, at this point we prefer to leave

Continental well to strengthen our position, which does not imply that we

the servicing to the experts. Our job is to provide a top quality new tyre

can now rest on our laurels. Continuous development will be required to

through them.

maintain and grow market share.

That being said, it is possible that in the future, Continental SA will be in a position to secure contracts on behalf of its sales channels. How would you go about encouraging a greater number of ContiPartner ©iStockphoto.com/Michael Knudsen

stores to become more involved in the commercial market? One of the primary reasons why many tyre dealers are reluctant to enter the truck tyre market is the risk. Bad debt is a problem in most B2B industries and tyres are no exception. However, for dealers with good risk management systems in place, the rewards are well worth it. Effectively


E+I 15440


B a n d a g N e w s • 3 5

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costs related to emergency service? Are you making changes in driver

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T a l k i n g T y r e s • 3 7

TYRES in motorsport

Winon Sunday, sell on Monday Is the age-old motorsport adage of win on Sunday, sell on Monday still relevant? If so, why aren’t tyre manufacturers exploiting the racing spirit? By Colin Mileman In the good old days of motorsport, it was a fairly straight-forward

world of Formula One to the local Production Car championship.

formula: win races on Sunday (or Saturday for that matter), and it translated into genuine sales when the doors opened on Monday.

Certainly then, they’re not going to be that easily bamboozled into charging for the closest dealership should a particular brand take the

After all, that’s why any vehicle manufacturer or sponsor got into the

silverware for the day. Furthermore, motorsport (especially the local

sport. It wasn’t simply for the love of racing (although that played a

variety) has to compete with so much other sporting action every

crucial role), but was used as a high-profile, high-paced marketing

weekend, and no longer draws the large crowds it used to – take a

exercise.

look back at the images of Kyalami 10, 20, 30 years ago, and you’ll see what I mean.

And if your brand took the chequered flag on the day, the idea is that it would be seen to be the best, thus generating showroom traffic and,

Yet motorsport still seems to be a major drawcard for vehicle

ultimately, increased sales.

manufacturers and sponsors alike. Why, then, don’t we see the spirit of motorsport filtering through in terms of off-track marketing and

As far as modern motorsport is concerned, it’s certainly not is clear-cut

advertising?

as that any more. The technology revolution has ensured that there’s a veritable plethora of racing action across all corners of the globe available at our fingertips – whether it’s on satellite TV or the Internet.

On the tyre front, Pirelli is the sole supplier to Formula One, Bridgestone supplies the SA Production Cars, Continental is involved in the VW Polo Cup and Goodyear provides the rubber for the mighty

The enthusiasts that would be interested in the action-packed racing

WesBank V8s.

are usually well informed on the latest and greatest from the motoring world, and what wins races, where and when, from the high-flying

Did you actually know that? And when last did a racing advertisement


34 8 • TGaol ok di ny ge aTr y rNeesw s

catch your eye on the ‘box, or in a magazine? It rarely happens these days.

Michelin, these are essentially competition-oriented tyres optimised for cornering grip and precision handling.

I can fondly remember the Firestone motorsport adverts from the Nineties, which captured the spirit and enthusiasm of the ‘brat pack’ Group N years.

Interestingly, they were developed by the company’s engineers responsible

Or the Goodyear ads claiming its record-breaking run of F1 victories. We

for the tyres used by the Corvette racing team competing in the American

need to rekindle some of that passion and excitement.

Le Mans Series. The marketing material indicates that these street-legal versions of the race tyres are capable of improving lateral acceleration

Yet it’s incredibly hard to do when competition has effectively been ruled out of the game, due to the adoption of sole tyre suppliers for different categories of the sport. It’s very hard, and rather irrational, to brag about winning when you’re the only company competing.

by up to eight percent to around 1.1 G, while

also significantly shortening brake distances. An

On the tyre front, Pirelli is the sole supplier to Formula One, Bridgestone supplies

independent test at the 5,26 km Virginia circuit in the US indicated an improvement of 3 sec per lap over the standard tyre – which is impressive. Specialised semi-slick rubber can also be found on

I can understand the logic of using a single

the SA Production Cars,

the likes of the BMW M3 GTS, Porsche’s GT3 and

tyre supplier, as it levels the playing ground –

Continental is involved in the

GT2 RS, various track-oriented Lotus models … and

particularly for a one-make racing series. Also, how many F1 battles have gone down to the wire

VW Polo Cup and Goodyear

with the acknowledgement that it could have been

provides the rubber for the

different if the losing team had been on different rubber?

mighty WesBank V8s.

many more. While hardly suitable for unpredictable everyday use, these tyres are tangible proof of the direct transfer of race technology to the road. So the evidence is there – tyre companies aren’t investing huge amounts of money just for the

However, you could then argue that all the drivers should be in the same cars using identical engines, gearboxes, suspension and matching tyres. But then there would be no reason for the various

genuine benefits in terms of the lessons learned,

And when last did a racing

and the technology transfer that results, filtering

manufacturers to put their badges on the bonnet,

advertisement catch your

or dig deep into their budgets to do so. It would be

eye on the ‘box, or in a

like the large-scale equivalent of a Scalextric track, and would all come down to the person with the thumb control, i.e. the driver.

goodwill and prosperity of motor racing. There are

Did you actually know that?

right down to entry-level tyres. Certainly, the brands that do participate in

magazine? It rarely happens

motorsport have a bolder, more obvious presence to the hard-core racing enthusiast.

these days.

I say bring the competitive spirit back and allow the

tyre companies to thrash it out. Give the winners the opportunity and platform to boast about it. Competition is a good thing,

I just believe more should be done with it – bring back the excitement, the glamour, the passion and the intriguing characters that made motor racing so

popular in years gone by.

as it does advance the game, both for the sport and the resultant road tyre technology. After all, there’s nothing like competition to drive development.

The tyre companies don’t necessarily have to give up their exclusive status

For example, Chevrolet recently introduced new Michelin Pilot Sport

better use of motor racing as the high-adrenaline, action-packed marketing

(although I think it could be a good thing if they did), but they should make Cup Zero Pressure (ZP) tyres as optional equipment on the new 377 kW

platform that it is. Make it more widely appealing, and motorsport will

Chevrolet Corvette Z06 and the 476 kW supercharged ZR1. According to

benefit too.

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.


O n e - o n - O n e • 3 9


4 0 • G o o d y e a r N e w s

GOODYEAR’S ASTONISHING NEW EAGLE HAS LANDED When driving, it pays to be prepared for the unexpected. You’ll be thankful for a lifetime. Goodyear’s brand new, remarkably innovative EAGLE F1 ASYMMETRIC 2 tyre – with pioneering ActiveBraking technology that delivers up to 3 metres shorter stopping distance – has just been launched in Europe to international applause. And it has just landed on South African soil too.

New Goodyear Eagle F1 Asymmetric 2 incorporates tyre technology designed to save lives, with an impressively shorter stopping distance in wet and dry surface conditions.

When it comes to road safety, split seconds can make all the difference.

this new Eagle is a prime example of how innovation and a quest to continually

That’s why Goodyear is proud to introduce new Eagle F1 Asymmetric 2

improve automotive safety has always driven Goodyear further.

with revolutionary ActiveBraking Technology, an exceptional Ultra High Performance (UHP) tyre that delivers seriously improved, shorter stopping

ENGINEERED FOR SAFETY

when you need it most. Designed to surpass even the independently tested

Eagle F1 Asymmetric 2 has set new standards in dry and wet performance,

achievements of its legendary predecessor, Goodyear Eagle F1 Asymmetric,

handling and braking in the UHP tyre segment.

The Eagle F1 Asymmetric 2 was launched at an international Goodyear brand event in Seville, Spain. Dubbed ‘The Ultimate Goodyear Experience’, it showcased Goodyear’s spirit of innovation and guests enjoyed maximum driving time on the new tyre, both on road and on the nearby Monteblanco racetrack.


G o o d y e a r N e w s • 4 1

In independent testing by internationally renowned quality consultants TÜV SÜD Automotive, the Goodyear Eagle F1 Asymmetric 2 delivered exceptional results of up to three-metres shorter braking distance on wet roads compared to most competitors’ tyres.

The engineering, briefly, of ActiveBraking Technology is such that it

can feel better prepared for the unexpected,” said Robert Harris, Goodyear

increases the road contact patch of the tyre during braking. While

South Africa Product Manager: Consumer and Commercial Tyres, who

conventional tyre blocks show little or no transformation during braking,

attended the tyre’s international launch in Spain recently.

the blocks in the Eagle F1 Asymmetric 2 are designed to develop more surface under braking load and therefore increase the tyre-to-surface

BLACK EAGLE IS GREEN

contact area. The larger contact patch offers increased grip, which in turn

Reduced fuel consumption and CO2 emissions are an added bonus in Eagle

leads to shorter stopping distances.

F1 Asymmetric 2, thanks to Goodyear’s renowned FuelSaving Technology. The tyre also offers a smooth, quiet ride with lower noise emission levels

TÜV TESTED

because of its cleverly optimised block design, and better mileage because its

The Eagle F1 Asymmetric 2 was extensively tested by testing organisation

cavity shape and tread stiffness result in uniform pressure across the footprint.

TÜV SÜD Automotive at tracks in France and Germany. TÜV is a leading independent partner to the automotive industry, providing consulting,

LOCAL AVAILABILITY

testing and certification services in the field of innovative product and

The Eagle F1 Asymmetric 2 is being manufactured in several German

process improvements.

Goodyear plants, in a versatile 29 sizes. From 2012, an additional 21

The new tyre performed exceptionally well during testing, delivering a

options will be added to the size line-up. Shipments of most popular sizes

life-saving three-metre shorter braking distance on wet roads compared

from Europe to South Africa have already commenced and started arriving

to the average performance of three leading competitors. When the Eagle

towards the end of April.

F1 Asymmetric 2 had come to a full stop, the competitors tested were still travelling at an average speed of 24 kilometres per hour!

IMMEDIATE APPLAUSE FOR NEW EAGLE

The tyre also performed well in dry braking and handling tests, stopping two

Just one week after the launch of the Eagle F1 Asymmetric 2 in Spain,

metres shorter than the competitors. Plus, the TÜV SÜD tests confirmed

Goodyear celebrated its first major success: a rave review in a major

that the Eagle F1 Asymmetric 2 delivers top-class rolling resistance in its

magazine test.

category, 7% better than average.

The well-respected German magazine, Auto Zeitung, tested a range of ultra-high

HANDLING PRECISION

performance tyres and declared the latest

The Eagle F1 Asymmetric

Goodyear as ‘Very Recommendable’. The

2 features a crossed plies

impressive tyre showed the benefits of

carcass structure and a new tread compound using a unique blend of

its unique, revolutionary ActiveBraking

polymers, a high level of silica and race traction resin – both of which

Technology, with first place in Auto Zeitung’s

contribute to excellent handling, steering and braking performances, as well

stopping distance test – coming to a halt 3.5

as increased levels of adhesion to road surfaces.

metres before the worst of the competitor

The tyre’s lighter weight also contributes to better dry handling, as the

tyres tested.

vehicle’s consequently reduced mass enables the tyre to follow surface contours more closely. “It is impossible to be prepared for every eventuality on the road, but with the new Eagle F1 Asymmetric 2, when it comes to braking – where even a split second and a few centimeters can make all the difference – consumers

Safety considerations aside, reduced fuel consumption and CO2 emissions are an added bonus in Eagle F1 Asymmetric 2, thanks to Goodyear’s renowned FuelSaving Technology. The tyre also offers a smooth, quiet ride with lower noise emission levels.



D e a l e r P r o f i l e • 4 3

RETAIL KINGS

enter

Facing the challenges – Niren, Pam and Wayne of Supa Quick, Glen Shopping Centre.

Tyre Trade! Whatever would induce a successful, award-

The Harduth/Hargovan family– comprising matriarch, Pam Hargovan and

winning entrepreneur to deviate from his

station and fast food sectors, business interests which took root 13 years

established business interests within unrelated

her sons – is better known for its many accomplishments in the service ago with the opening of their first service station outlet in Bedfordview More followed and eventually, they expanded into the Convenience Store

market sectors and open a tyre franchise?

and Fast Food markets as well.

Opportunity and challenge – at least those were

Along with several retail accolades amassed over the years, in July 2001,

the primary motivators that led to Niren Harduth joining the Supa Quick ranks some 18 months ago.

Niren, the youngest son, was also recognised as the winner of the Business Partners Sanlam Award, an award that pays tribute to entrepreneurship. Clearly, the Family already possessed the makings of successful business moguls. All that remained was for them to come to grips with a brand new industry, together with all of its unique challenges, politics and idiosyncrasies.


4 4 • D e a l e r P r o f i l e

The frontline is expected to provide a premium service.

But Niren vowed that the challenges associated with an industry he

pamphlet drops and a five-metre billboard positioned at a nearby school.

knew nothing about would not deter him. On the contrary, he believed

Plus they secured advertising space on the street poles bordering their

that his knowledge and experience of retail would stand him in good

opposition stores, a strategic move that appears to have paid off.

stead in his new enterprise, provided that he embraced it with similar zeal and passion.

Says Niren: “Since we don’t enjoy prime visibility, we need to utilise

“I grew up in this part of the world,” explains Niren, “and I frequently

means piggy-backing onto our rivals’ media campaigns. At least people

remember my family commenting on the absence of a tyre fitment centre

are now aware that dedicated tyre fitment outlets exist in this previously

to service the southern suburbs of Johannesburg. The development of the

neglected part of the city’s surrounds.”

everything at our disposal to alert the public to our existence, even if this

Glen Shopping Centre signalled a new era for the south, upon which we were quick to seize on the opportunities it provided. Having long identified

Of course, it doesn’t end there. Providing that ultimate in-store experience

the need for a tyre store and not just any store, but a top of the line

remains paramount if Niren and his team are to win over the locals and

superstore, we were one of the first prospective tenants to approach the

secure repeat business.

developer for a potential site five years ago. Three years later, in November 2009 to be exact, devoid of signage (this came three months later), our doors opened for trading.

“Our challenge is not only to attract a growing number of customers to our doors, but to also ensure that they are treated with fairness, friendliness and respect,” says Niren.

“Business was slow at first, but aggressive marketing on our part, coupled with a skilled staff force sourced from within the industry, seemed to do the

“We rely heavily on our frontline to provide an impeccable service,”

trick. “We may have lacked industry experience but our staff certainly did

comments Pam, “something which they are regularly being trained for. In

not, particularly Wayne Wasserfall, our store manager who comes to us with

addition, we pride ourselves in providing an upmarket shop image together

more than 20 years of experience in the tyre retail game.”

with a pristine environment. Housekeeping is very important as shoppers no longer want to be subjected to the greasy, back-yard operations of

The Family also invested heavily by way of advertising in the local papers,

yester-year.”


“ Š

A large warehouse on the premises ensures stock availability.

As for why they chose to partner with Supa Quick, they claim that they chose to capitalise on the reputation of the brand. And as novices to the tyre sector, it was also important that they team up with a group of experts who would be well qualified to show them the ropes.

„ … � � • „

„ Â’ ­ ”

Finally, the tide seems to be turning, with the franchise growing month

on month, break-even point is nearing, an achievement they are proud of.

Lazer Measurement System

“We gave ourselves 18 months in which to break-even and we’re a little

for Trucks & Cars

short of that only because the investment in the business has been intensive,� claims Niren,“and not only with respect to marketing but also with our inventory. This part of the city is diverse in its product requirement,

ƒ Â

Â? Â Â Â? Â?

‹ Â’ ” ­

and we have to cater across the board, from entry-level vehicles right up to those in the million plus category. Stock shortages of the appropriate

„ Â’ ­ ”

size or make of tyre could well end up sending the customer to one of our opposition stores, so we need to be well prepared.�

for Trucks & Cars

In no small part thanks to the professionalism and enthusiasm of Niren,

& Hand Expanders

Pam and the management team, the growing number of motor dealerships in the area, and the ability of the business to provide a complete underbody service,Supa Quick’s latest addition to its 250-strong fold, looks well placed to make its mark in this fast-developing area which is destined to become

Â

the next hub of the south.

SolusPro Â? TM

 �

Ž‰‚  Â‚ ‘‚‰ Â’ Â?Š “‚Â? ˆ­ÂŠ ŠˆÂ?

Housekeeping is of the highest standard.

­ÂˆÂ? ‰Š‹Œ ˆ‰

 Â? Â? Â? Â?  Â? Â? Â? Â?  ­  Â€Â€ €   Â‚ƒ„ Â… „ † ‡

 Â? Â? Â? Â? Â?  Â? ­­Â€ ‚ ­Âƒ­


Tandem Tyres Pty Ltd, 速 the proud owners of the HILO trademark in South Africa

Specialising in tyres for:

Articulated Dump Trucks

Trucks

High speed mobile Cranes

Industrial

Rigid dump trucks

Loader/Dozer

For the best quality, service and attention contact us: Tel: 031 765 2650 Fax: 031 765 2695 Website: www.tandemtyres.co.za


W o r l d N e w s • 4 7

RUBBER PLANTATION ACQUISITIONS A POSSIBILITY FOR APOLLO

WORLD’S PRICIEST TYRES – SET OF BUGATTI VEYRON RUBBER COSTS 23 500 POUNDS! Ever wondered what the most expensive passenger car tyres in the world

Management at Apollo Tyres are considering the purchase of rubber

are? According to a report published on the Autocar website on 14 January,

plantations as a potential means of countering ever increasing rubber

Bugatti Veyron rubber must be a prime contender with a set of four new

prices. On May 27, the tyre maker’s vice-chairman and managing

tyres costing 23 500 pounds to replace! And if you were wondering

director Neeraj Kanwar told Indian publication The Economic Times

which tyre manufacturer won the OE contract to supply these products,

that ‘as far as buying rubber plantations, or for that matter any kind of

a quick look reveals that

backward integration, is concerned, we are always open to possibilities

the 406km/h car, which

depending upon the need of the hour’.

is capable of 0-300 km/h

Kanwar added that Apollo is also reviewing contracts with suppliers to

in under 14 seconds fits

‘correct’ rubber prices and is working to offset high rubber prices by

Michelin Pilot Sport Pax

maintaining a leaner and more efficient inventory and greater production

System 245-690 R520A

(www.tyrepress.com)

(front) and 365-710R540A

efficiency.

TRUCK TYRE OF THE FUTURE? MICHELIN REVEALS FIVE TONNE TRAILER TYRE We’ve heard of the super-single category of truck tyres that are designed to reduce rolling resistance and increase fuel economy by replacing twin tyre fitments with a single, wider tyre. But what about a truck tyre that can carry so much more load than standard products that a trailer fitted with these can

(rear) tyres. The main reason for the great expense, Autocar explains, is

iStockphoto®, ©morepixels, Bugatti Veyron on Rodeo Drive

the fact that they have to be capable of 253mph ‘over 100mph faster than Corcode’s landing speed’. However according to the report, what’s worse is that every fourth tyre change (assuming you can afford to run the car that long) the Veyron’s wheels have to be stress tested for cracks. The replacement cost for these 20-inch forged rims is said to be another 7 050 pounds.

cancel out the need for an entire axle? Alongside the numerous passenger car tyre developments, Michelin also unveiled what we might tentatively call a five tonne truck tyre – a product that has the potential to be revolutionary in the truck market. Developed in collaboration with MAN and Krone (owing to the need to test and develop these tyres on specially adapted two-axle trailers), the new fitment reportedly offers hauliers an impressive 900 kilograms more load and a potential 14 percent fuel saving. According to the company the fuel saving and load enhancement are generated by the removal of unnecessary tyres, wheels and of course, an axle. This is achieved by the inclusion of ‘ultra-strength’ steel tyre cord in the construction of the new tyre, which although it makes the casing a lot stronger also has the advantage of making it only slightly heavier. As a result the net gain to the haulier is very significant. And as you would expect

PIRELLI’S NEW HARD TYRE TO MAKE ITS DEBUT IN SPAIN Pirelli’s newest racing tyre for the F1 circuit will make its debut in Spain. Both Pirelli and the teams have accumulated quite a lot of data about Barcelona, which is typically chosen for testing as it contains a challenging mix of corners and speeds – highlighting every aspect of a car’s performance – and generally good weather conditions all year round. The new tyre is said to offer a little more durability over a race distance and provides a wider gap between the soft and the hard compound, which gives the teams an opportunity to run more aggressive strategies. The PZero Yellow (soft) tyre, which has been used at every race so far this year

– like all Michelin truck tyres, the latest offering is said to be fully retreadable,

alongside the PZero Silver (hard) tyre, will also be provided to the teams in

meaning it is likely to offer high whole-life mileages as well.

Barcelona.

(quickpic.co.za)

(www.tyrepress.com)

SUMITOMO RUBBER CONSIDERING BRAZIL, INDIA TYRE FACTORIES Sumitomo Rubber Industries Ltd is reportedly considering building tyre

tyres is growing rapidly in both countries, so expansion into these markets

factories in the emerging BRIC markets of Brazil and India.

has become topic of discussion at Sumitomo Rubber. Various sources have

Reporting on a business strategy meeting held in Tokyo on 28 April, online

reported that Ikeda said the company intends to establish its own plants

new sources wrote that Sumitomo’s president Ikuji Ikeda said demand for

there, but ‘may consider’ forming joint ventures with local firms.

(www.tyrepress.com)


4 8 • C o m p e t i t i o n / S u b s c r i p t i o n

Congratulations!

to our previous competition winner

Mr Charles Brown of Karan Beef, Johannesburg whose correct answer wins him a set of locally produced Goodyear branded tyres to the value of R5000.00

quarterly competition QUESTION: On which SUV is the new Pirelli Scorpion Verde fitted as Original Equipment? ANSWER: ������������������������������������������������������������������������������������ Name: ����������������������������������������������������������������������������������������� Company: ������������������������������������������������������������������������������������

Click www.sa onto treads. to ente co.za r!

Win… … a set of Scorpion Verde tyres courtesy of

Address: �������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������

__________________________________________________

Code: ���������������������������������������

Telephone:___________________________________ Cellphone: ��������������������������������

Pirelli

Prize based on current stock and size availability. Prize may not be transferred or exchanged for cash.

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

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