Industry to take a stand on Chinese imports One-on-One with Pirelli’s Gianluca Renato Enter the new Firestone Multihawk
Vol 16 • March 2010
New Pirelli space is a world-first
Focus on Chinese imports
New model Supa Quick store opens in Fourways
two sets of tickets to the 2010 FIFA World Cup courtesy of SA TREADS magazine and Continental Tyre South Africa
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I n t r o d u c t i o n • 1
Contents
A
the
Competition
Win two sets of tickets to the 2010 FIFA World Cup courtesy of Continental Tyre.................................................................. with Pirelli MD, Gianluca Renato.............................................................
4
Focus on Chinese Imports
Local industry prepares to defend position on Chinese imports............ Firestone launches new Multihawk . ...................................................... Goodyear SA welcomes new GM Recycling drive results in massive water savings at Goodyear...............
People
Romano Daniels appointed managing director of Bridgestone Retail..... Goodyear appoints new Head of Consolidated Africa/South Africa distribution operations............................................................................
Distribution News
Two transport services giants join forces – MAX T Solutions is born.....
Industry News
Pirelli space opens at 44 Stanley Ave, Milpark....................................... CFP Tyres is going places in 2010.......................................................... Consumer Protection Act about to be enforced.....................................
Conti Corner
Continental voted‚ ‘Best Brand’ by readers of Auto Zeitung..................
Talking tyres
Off-road tyres Proven, then punished....................................................
Dealer profile
New model Supa Quick store opens in Fourways..................................
Trentyre news
Retreading – making Rands and sense...................................................
World news
9 15 17 18 19 21 26 28 30 32 35 39 42
China’s tyre-makers facing tougher competition from majors................ Michelin interested in showing eco-characteristics in F1....................... Dunlop acquires aircraft tyre business................................................... Michelin and Volvo sign innovation partnership..................................... Tyre industry needs 4% price to offset natural rubber costs.................. Continental extends football sponsorship with World Cup 2014 deal...
45 45 45 45 46 46
Competition, Subscription, Website . .......................................
48
Front Cover: Courtesy Pirelli Tyres SA Editor
Liana Shaw
Technical Consultant
Wray Shaw
Reproduction
Diane van Noort
Printing
Tel: (011) 658 0011 T YPO (011) 658 0010 – Colour Printing Specialists Fax: Cell: 082 851 6777 Prestige Bulk Mailers E-mail: satreads@mweb.co.za Liana Shaw Website: www.satreads.co.za
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3
One-on-One
Manufacturing
note from
Sky Publications cc PO Box 702 Douglasdale, 2165
If the first couple of months of 2010 are anything to go by, the South African tyre sector looks set for a very exciting year ahead. Bridgestone started the ball rolling in mid-February by way of new product releases, with the unveiling of its new Multihawk GU (General Use) tyre that is destined to bridge the gap between durability, affordability and driving comfort (read all about it on page 15), with more product launches expected from the new tyre companies during the course of the year. So, watch this space. We’ll bring you the low-down on these as and when they take place. New key appointments also take centre stage with new faces at the helm of the likes of Supa Quick and TrenTyre in the distribution segment as well as a new leader for Pirelli Tyres SA. Gianluca Renato has his own unique vision for the South-African subsidiary, having already created a stir with the conception and establishment of a world-first Pirelli space in Milpark, Johannesburg. Unrivalled in look and purpose, the new Pirelli space is a place where Pirelli Tyres SA can interact with customers, industry and press alike in an environment that tastefully showcases Pirelli’s iconic status worldwide by way of arts, culture, sports and clothing (read all about it on page 26) On a more serious note, following the rejection of the industry’s anti-dumping application to government, we explore this contentious issue in some length as we pose the question: Where to from here? Will the local industry accept defeat in the ongoing fight to level the playing fields and protect itself from the deluge of cheap, foreign products from China, or does it have a few more tricks up its sleeve? Local and international experts on the subject shed some light on the current situation as our feature story on page 9 will reveal. Last and by no means least, SA TREADS, in conjunction with Continental Tyre SA, brings you a-once-in-a-lifetime opportunity to win two sets of complimentary tickets to this year’s FIFA World Cup games. This magnificent prize which will find two lucky readers enjoying the experience from Continental’s Soccer City Hospitality Suite is valued at a whopping R17 000! (see page 3 for details) Entries close on April 30th so don’t delay! Visit www.satreads.co.za and click onto the Competition function or fax your entries to (011) 658-0010!
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C o m p e t i t i o n • 3
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two sets of tickets to the 2010 FIFA World Cup courtesy of Continental Tyre
Your once-in-a-lifetime opportunity to win two sets of tickets to the 2010 FIFA World Cup courtesy of SA TREADS magazine and Continental Tyre South Africa – valued at R17 000!
Now you too can say:
“I was there”
The prize includes:
To stand a chance to win:
Entries close on April 30, 2010 so don’t
• A set of tickets for Match 29 on 20/6/2010
Visit www.satreads.co.za, answer this
delay!
simple question and submit your entry, or you
• Only one competition entry per person.
can fax us on (011) 658-0010.
• Tickets not refundable and cannot be
(1st round game) Brazil vs Cote D’Ivoire • A set of tickets for Match 39 on 23/6/2010 (1st round game) Germany vs Ghana • You will watch the match from the comfort of Continental’s Soccer City Hospitality Suite.
exchanged for cash. • Prize excludes flights/accommodation. • Regret no children will be accommodated.
• Refreshments and drinks provided. • Transport to and from venue. • Prize per game is valued at R17 000!!
Q: Where will Match 29 and Match 39 be held?
4 • O n e - o n - O n e
One-on-One with new Pirelli MD, Gianluca Renato,
Meet Pirelli’s innovator
We meet in a coffee shop for the interview to which he arrives armed with laptop, memory stick and scores of ideas for his new-found role as Managing Director of Pirelli Tyres SA. He declines the offer of an espresso and settles for fresh juice instead, a somewhat unorthodox choice for a pucker Italian, but then again, nothing about Gianluca Renato is conventional. Watch this space… he’s about to embrace his South African assignment within the Pirelli Group with the same innovation, passion and enthusiasm he exhibits in most areas of his life, in the hopes of making a real difference.
O n e - o n - O n e • 5
The interior of the new Pirelli space is stylish, chic and inviting.
6 • O n e - o n - O n e
An official welcome to you Gianluca. You first arrived in South Africa six
What impression have you formed of the SA tyre market thus far?
months ago. Was an overseas assignment such as this, expected?
I am impressed and encouraged by the level of confidence and professionalism
In a sense, yes. Pirelli’s policy has always been to expose members of its
in the local retail trade. The stores sport a clean, upmarket image which I must
management team to all aspects of the business and this often includes
admit, came as a bit of a surprise at first. There is also lots of enthusiasm and
expatriate assignments. Where I was concerned, my superiors had begun
passion on the part of our customers when it comes to product training, so
discussing a potential career juncture eight months before the opportunity
again, I’m greatly encouraged and energised by their attitude.
arose – the only question at the time being, where and when? Does your SA assignment come with a timeframe? When did you first join Pirelli and how did you come to be associated with the tyre manufacturer to begin with? As a mechanical engineer with a special interest in
I couldn’t say. A lot will depend on what happens over the course of this year, once I’ve come to understand the workings of the company
❝
and the market a lot better. In this type of situation, you
processes, I held down a number of jobs and consultancy
I would like for Pirelli
are typically looking at six months in which to gain a broad
projects in Europe as well as in New York before joining
Tyres SA to become a
understanding, six months to apply new strategy and another
Pirelli in 2000. Economics and finance have always held my interest and so I studied lots of business models
carbon copy of Pirelli
around project management and project financing and so
Europe by way of
on which ultimately led me to New York for a year where I worked as a financial analyst. Next, as consultant to an
promoting the brand
Italian engineering company, I accepted a job in Belgium
across all its business
before returning to Rome (my birth city) for a two-year stint with Siemens.
activities.
It was around this time that Pirelli began looking for five
❞
year for the company to run under new leadership. The third year is for consolidating. In short, the length of my stay in SA is based on my performance, how well I fit into the company and my own personal circumstances. Would you say the expatriate lifestyle suits you? It does, in fact, it energises me. I love being exposed to different markets and cultures, particularly countries with a greater level
skilled ex-consultants to join the Holdings Group to run a big e-Pirelli project
of complexity. I find these destinations far more exciting to operate in than
which would involve reshaping processes and activities via the internet. The
consolidated markets. Europe is extremely regulated with little forthcoming out
next two years proved tremendously exciting and valuable in that I was
of this region in terms of innovation.
exposed to all the various processes and business units of the company. But whether I will continue with this lifestyle or not is not cast in stone – anything Following this, I moved to the Tyre Division as part of the Business Unit Moto
could change at any given time – but personally, as the youngest MD of the
management team where I became more involved with technologies and
Pirelli management team (38), I see myself embracing the expatriate lifestyle for
products. Next, I was promoted to Trade Marketing Manager for Europe,
the next 10 years at least.
followed by Sales Area Manager for Eastern and Northern Europe and finally Export Director for Europe, Africa, Middle East, and Asia Pacific.
Rumour has it that during the course of your tenure you intend expanding the range of Pirelli products currently being imported into South Africa?
All in all, my former years with Pirelli were a good training platform for me.
That is the intention yes, but further studies into the truck and OTR segments,
I was eventually responsible for 35 world markets and an international staff
as well as other industrial products which Pirelli produces are required in order
force of 15 people.
to assess the viability of supplementing our current passenger tyre offering with products for other market segments. With respect to the motorcycle sector,
Was your responsibility for sales not a departure for you?
we began importing product at the end of last year, maintaining our previous
Not when you consider that successful selling requires a technical background
distributors locally, but also looking to up our service levels. This initiative also
together with a deeper understanding of financial issues. One needs the
called for a direct investment in marketing.
knowledge and capacity to explain the merits of a particular product to the customer and how it can ultimately impact on the bottom line.
What of talk that Pirelli is looking to sell the truck division of its business? I’m not aware of any such plans. All I can say in response is that the trucking
My involvement took place at top level negotiations and required a broad
sector has been worse affected by the global recession than the consumer
knowledge of aspects such as stock management, marketing, delivery and
business, but this is a universal problem that impacts on our competitors as well.
the like, in addition to a deep understanding of a technologically complex product.
As much as 70 percent of Pirelli’s total business is the consumer market, with
O n e - o n - O n e • 7 pirelli.co.za
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8 • O n e - o n - O n e
O n e - o n - O n e • 9
only 30 percent reserved for commercial and industrial applications, but in
would also like for Pirelli Tyres SA to become a carbon copy of Pirelli Europe by
other developing countries where we run properly-managed truck projects, the
way of promoting the brand across all its business activities.
concept is working well. What challenges do you face with regard to achieving these goals? As far as South Africa is concerned, I need to study the market more, explore
Although the standard of retail is high, I’m not convinced of the networks’
local opportunities and come to grips with the market dynamic before activating
capacity to accurately forecast their stock requirements. I accept that there
the development of a dedicated truck tyre business unit.
is always room for improvement in this area, but becoming more disciplined in this respect will certainly boost their margins and go a long way towards
The same applies to the OTR segment of the business which we could possibly
improving their relationships with the tyre producers.
be looking to penetrate, but again, realistically, this would only be actioned in 2011.
Added to that, achieving an integrated, fully-functional supply chain from factory
What are some of Pirelli’s other extenuating business interests?
but work towards that end we must. The power of the end-user is growing due
Aside from tyres for the passenger, truck, OTR and motorcycle sectors, we are
to the internet which allows consumers to do their homework in terms of price,
also involved in eco-technologies, specifically, filters that reduce of 95% of the
size and make. The end user is driving the business as well as the price!
to end user remains a challenge with these entities being completely separate,
emissions of fine particles for all Diesel engines, as well as broadband solutions and equipments.
Speaking of price, do you think the local market as highly competitive?
As such, my objective is to promote all aspects of the business and the Pirelli
driven by the consumer. As a result, the value chain is narrowing with everyone
name, even in areas where we’re not currently represented in South Africa.
along the line being squeezed for more favourable prices. My wish is to see
A competitive arena is creating a ‘price-centred’ market that is largely being
the tyre dealers becoming more consistent rather than caving in to the perils Was this what led to the creation of your new, stylish Pirelli store in 44
of bargaining.
Stanley Avenue, Milpark? In part, yes. The new space is based on a pop-up concept store which Pirelli
How does Pirelli Tyre SA hope to compete in the local market?
set up in Milan on a trial basis some years ago. The store ran for just under a
We understand the B2B (business to business) concept, so we are not looking
month and created much hype by virtue of its ability to provide a tyre fitment
to deal directly with the consumer. It’s equally important to us that the dealers
service by day combined with an events-cum-communication-cum arts venue
are able to maintain their profitability, so we are currently playing with costs
by afternoon and early evening. The store met with great favour from the locals
and alternative supply routes (such as Brazil and China), in order to support
as a new social venue while for us, it gave us the opportunity to interact with
the business.
the end user, not only about the Pirelli product but also about how the brand is perceived.
Pirelli has production facilities in Egypt, China and Brazil. Their proximity to South Africa provides a viable option for us which needs to be explored.
Why did you choose this particular Milpark address? The secret location of this new store is part of its overall fascination. Most
What about the stigma associated with inferior imports, particularly some of
people are unaware that a space like 44 Stanley Avenue – refurbished industrial
those coming in from China?
warehouses complete with coffee shops, eateries, décor stores to name but a
Pirelli invested in the Chinese market five years ago. If concerns of this nature
few – even exists and are completely blown away the first time they visit the
did exist in the beginning, they’re certainly a thing of the past now. Pirelli has
new Pirelli store.
not elected to outsource its Chinese production – to the contrary. We continue to invest a considerable sum of money towards R&D and continue to control
I know I was! What sorts of events will this new space be used for?
production and quality coming out of this factory. In summary, while we are
In line with European trends which favour limiting business functions to smaller
leveraging on the merits of low-cost production, all important functions within
groups, we plan to target the media and to invite partners such as Ferrari and
the operation are still led by Europe.
Ducati for example, to join us in this magnificent new space on an exclusive basis so that we can get to know them personally. It’s all part of promoting Pirelli’s
This Italian maverick clearly has a nimble mind, thinks out-of-the-box and has
business interests locally in a structured fashion.
set some ambitious goals for himself and Pirelli Tyre SA. He also likes to play. Out of the office, he loves to cook, socialise and exercise his passion for motor
How would you sum up your vision for Pirelli Tyre SA?
cycling, sailing, volley-ball and windsurfing … and … let’s face it … there’s no
My vision is to attain a meaningful market share with profitable growth. In time, I
better place in the world to do that than in sunny South Africa.
1 0 • F o c u s o n C h i n e s e I m p o r t s
Local industry prepares to defend position on Chinese imports The industry’s bid to implement tougher antidumping duties against Chinese tyre plants was rejected in 2007 by local government. No basis for this decision was offered, nor did the rejection have any legal basis. Not surprisingly, this controversial outcome has local industry in a flummox, unable to understand government’s reluctance to level the playing fields that would, in the process, assist the local economy and secure jobs. Which begs the question:
Where to from here?
N I E MAD A
N I H C
In contrast, in September 2009, in one of his first major decisions on trade policy, President Barack Obama opted to impose a tariff on tyres from China in a move that fulfils his campaign promise to ‘crack down’ on imports that unfairly undermine American workers. The decision is intended to bolster the ailing US tyre industry, in which more than 5 000 jobs have been lost over the past five years as the volume of Chinese tyres in the market has tripled.
F o c u s o n C h i n e s e I m p o r t s • 1 1
The tyre tariff imposed will amount to 35 percent the first year, 30 percent the second and 25 percent the third in the aim to slow China’s rapid export growth and protect American jobs in the tyre sector. China’s exports have surged since joining the Geneva-based commerce referee in 2001, rankling manufacturers in the United States, Europe and elsewhere. The US imported about 46 million tyres from China in 2008, three times as many as in 2004, with China’s share of the US market shooting from less than five percent to almost 17 percent. In South Africa the highway-type tyres imported from China increased to 900 000 tyres during 2008 which is two and a half times the number of imports during 2004. Mining and agricultural imports also increased dramatically, although, in all fairness, they compensated for the global shortages on some off-road tyres. Where the United States is concerned, China has expressed anger over
Chinese exports have surged since 2003.
the decision by US President Obama’s administration to slap steep tariffs on imported Chinese tyres calling the move protectionist. But however
at least 10 investigations during this period,” adds Brink.
unpopular his decision within certain sectors may be, Obama appears to be sticking to his guns.
Scrutiny of ITAC’s reports show that in several instances, especially those involving China, ITAC failed to find any dumping despite very
Says Dr Gustav Brink, Legal Expert for the Trade Enhancement Project,
significant margins indicated in the industry’s application and despite
currently operating out of Damascus, Syria: “From an international
other jurisdictions finding dumping and imposing duties against the same
perspective there are currently 153 members of the World Trade
Chinese exporters exporting the same products. More alarming still, in
Organisation (WTO). Of these, 43 members, counting the European
several instances where ITAC actually found dumping, it often crafted a
communities as one, have initiated 3 427 anti-dumping investigations
way of finding that factors other than dumping was causing the industry’s
under the WTO Anti-Dumping Agreement up to the end of 2008 (a
material injury, refusing to recommend the imposition of anti-dumping
total of 39 countries imposed 2 190 anti-dumping measures during this
duties.
period). South Africa, with 206 initiations during this period, ranks as the fifth highest user of the instrument, while the 124 anti-dumping measures
Three such examples include cheese from Ireland, toughened glass
it imposed during this period also ranks at fifth in the world, after India,
from China and automotive tyres from China, resulting in considerable
the US, the European Union and Argentina.
distrust by the industry in ITAC to the extent that few industries still submit applications. Instead, many industries have decided that it is easier to
“Interestingly, SA anti-dumping legislation dates back to 1914 when the
simply close their production units and start importing themselves, using
first anti-dumping duty was imposed on wheat imported from Australia in
the distribution network they had developed over the years. This follows
1921. In 2003 the International Trade Administration Commission (ITAC)
despite government’s guarantee that unfair trade would be properly
was established to replace the old Board on Tariffs and Trade and since
addressed.
then SA has initiated only 46 investigations resulting in the imposition of a mere 16 anti-dumping duties. In the period 1995 to 2002, a full
In the recent automotive tyres investigation, for instance, ITAC found that
108 of 160 investigations in South Africa resulted in anti-dumping duties
all cooperating Chinese exporters were selling in the ordinary course of
(67.5%) while only 34.8% of cases initiated since the establishment of
trade despite several of these companies having significant government
ITAC in 2003 met with the same result. This of course raises serious
ownership and control. From ITAC’s final report 210 it is also clear that
questions as regards the efficacy of investigations undertaken by ITAC
ITAC made several adjustments to its calculations that resulted in a finding
and shows the lowest ‘success’ rate of any authority that has conducted
that none of the cooperating exporters was dumping, despite the specific
IN MADE A
CHIN
1 2 • F o c u s o n C h i n e s e I m p o r t s
adjustments never having been made in previous investigations or in
succeed with its Review Application to the High Court, that according
subsequent investigations.
to Human, it is wagering substantial legal costs to obtain the necessary result.
What is more, in a clear contravention of the International Trade Administration Act, ITAC published the industry’s confidential information
States Yujiro Kanahara, CEO for Bridgestone South Africa: “Firstly, we
in its report. When confronted, it refused to take disciplinary action
believe in fair competition. After all, every company should be able to
against its staff, despite the Act criminalising the unauthorised release of
compete in the South African market on the basis of a good quality
confidential information and despite a specific request from the industry
product, good customer service and strong brand affinity. In so doing,
in this regard. Next, ITAC printed additional confidential information in
every tyre sold in South Africa should conform to minimum quality
its final report, thereby demonstrating its complete disdain for both the
standards to promote the safety of the South African tyre user.
industry and the laws governing it. “Whilst all local manufacturers must comply with minimum standards Also noteworthy is that despite the significant decrease in the number of
through various ISO standard audit processes, we accept that all imported
investigations, there has been a significant increase in the number of anti-
tyres comply with the minimum standards for South African operating
dumping court cases against ITAC. Of all the challenges since ITAC was
conditions,” he says.
established, ITAC has only managed to win one single case, losing at least four others. The High Court has gone as far as finding ITAC’s procedure illogical (in the Algorax matter) and unconstitutional and unfair (Degussa matter) but despite the rulings against it, ITAC never implemented these court decisions. Claims Brink: “ITAC is currently involved in its biggest ever challenge on anti-dumping, involving the import of millions of rands worth of tyres from China. All indications are that ITAC pre-determined the outcome of
❝
But this doesn’t appear to necessarily be the case,
Every tyre sold in
according to Human who says: “The existence of
South Africa should
compulsory SANS standards for passenger and commercial tyres (bakkie, truck and bus) sold in SA make
conform to minimum
it a requirement for all imported tyres of these categories
quality standards to
from any country into SA to comply with the homologation process. Every brand and tyre size for passenger and
promote the safety of
commercial vehicles requires homologation and the
the South African tyre
same applies to all locally manufactured tyres. The
user
world which might be making the same brand and size
the investigation, i.e. not to impose anti-dumping duties at any cost. This follows from the facts that not one single argument raised by Trade Remedies Unlimited, acting on behalf of the industry, was taken into consideration in its deliberations.
❞
homologation also applies to a factory anywhere in the but might have different quality standards. Import permits for these types of tyres will not be issued by government
unless homologation through the standards authorities has been proved.”
It appears as though ITAC was not only biased against the domestic industry, but that it was also afraid of any potential political fall-out if it
Human says the difficulty for the National Regulator of Compulsory
were to take anti-dumping action against China on a product that has
Specifications (NRCS) is to ensure that all tyres entering the country are
been and is subject to anti-dumping investigations and duties in several
indeed on the homologation list. This is because inspections at the ports
countries.”
of entry and the land borders especially, are a challenge. A further issue is the illegal entry of used tyres into SA that are being fitted to vehicles but
Serious allegations indeed that are about to be challenged as the industry
do not comply with SA standards.
takes the next step towards unravelling this complicated debacle. According to Human, in general, the use of cross-border fraud to evade Says Dr. Etienne Human, CEO of the SATMC: “The next step for this or
duties and quality requirements is happening on an ever-growing scale.
any industry for that matter, would be to take whatever legal action is
He says: “As in any industry, most importers comply with the laws of the
deemed necessary to ensure that its rights and business interests are
country while a handful, do not.”
protected at all cost.” Caution to the consumer And such is the confidence on the part of the local industry that it will
IN MADE A
CHIN
So what does all this mean for the consumer? With well over 40 different
IN MADE A
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F o c u s o n C h i n e s e I m p o r t s • 1 3
The influx of Chinese imports has reached unprecedented volumes in recent years.
brands coming in from China alone, not to mention other parts of the world, how does the man on the street differentiate between a quality tyre and a questionable one, bearing in mind that it would hardly be fair to paint all imported tyres with the same brush?
stock only reliable tyre brands backed by manufacturers’ guarantees and warrantees. • Check that the tyres carry the relevant quality marks, i.e. E-mark (European quality mark) of approval. • Speak to present users of specific tyre brands (as one would do when
Chinese tyre production especially has come a long way in recent years, with several plants making world-class products that can compete equally with their western counterparts.
buying a new car) and share their experiences. • Keep in mind that in the end, it is the cost per km (cpk) that counts, together with good performance which is essential at all times but particularly in wet weather.
What the consumer needs to bear in mind is that ‘budget tyres,’ which traditionally cost the least, cannot be guaranteed to provide the best
As a long-standing member of the SA tyre industry, it never ceases to
possible service levels in terms performance and longevity. Owing to
amaze me how motorists are willing to spend close to a million rands on a
the stiff competition in the tyre market, the cost of a tyre can only be
vehicle but then expect the tyres to last forever. Much like most things in
reduced by making the compounds cheaper or using less of a specific
life, remember ‘goedkoop koop is duurkoop!’
component per tyre. Consumers often complain that the cheap tyre they bought didn’t last long or developed problems and that is usually when
Insofar as the current absence of anti-dumping regulations are concerned
suppliers grapple with making good on their ‘promises’. The best way to
Bridgestone’s Kanahara adds: “Local manufacturers provide a significant
protect against an inferior tyre is by following these simple guidelines:
contribution to gainful employment and a market structure that
• Understand the three types of new tyres available, i.e. budget tyres,
undermines this key point, can only lead to unfortunate consequences
quality tyres and high performance tyres which provide all the
for the social integrity of many communities where manufacturing plants
requirements for powerful vehicles.
operate. It is in everyone’s interest to promote a market structure that
• Buy only through reputable tyre dealers with a good reputation who
promotes socio-economic stability and fair competition.”
IN MADE A
CHIN
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M a n u f a c t u r i n g • 1 5
Firestone launches new Multihawk – A GENERAL PURPOSE TYRE WITH A DIFFERENCE! On February 15, members of the motoring press were transported to
Special attention has also been paid to the styling of the tyre to ensure
Cape Town for the launch of the new Firestone Multihawk tyre which will
it is an attractive match for the wheels and bodywork of the modern
become the company’s core General Use (GU) product for the foreseeable
vehicles to which it will be fitted. It also has a noticeably different
future. As a replacement to the F900, which is being phased out in all sizes
tread footprint to its predecessors, with a bigger contact patch than an
except for the 12-inch ‘trailer-size’ tyres, the Multihawk also supplants the
equivalent-sized F900. This gives better dry weather road-holding and
venerable S211, which has been a South African tyre icon since 1981, and
braking distances.
was produced for the S211T variant from 1996. Meanwhile, the void ratio (the ratio of the tread gaps to the total According to Romano Daniels, Bridgestone General Manager for Marketing,
footprint) increases to 26 percent versus the 24 percent of the F900.
the Multihawk was built on both the S211’s iconic status and the F900’s wide
Apart from reducing tyre noise, (this was a key feature in my experience
acceptance as a tyre for the discerning motorist. Through this new general
- the Multihawk has proven its mettle in real-world testing, with sound
purpose tyre, they hope to target buyers who consciously seek reliability and
levels observed at just 68dBa versus the current EU regulation limit of
value at a reasonable price, meaning the Multihawk will be available in a range
74 dBa,) the change improves water dispersion on wet roads, giving
of sizes typically used by B and C-Segment sedans and hatches.
greater resistance to aquaplaning, while the higher void ratio partly accounts for the tyre’s improved resistance to irregular wear.
On the day of the launch, Bridgestone SA arranged for a fleet of Multihawkkitted 1.3 T3 Yaris hatchbacks to be made available to the press who
But perhaps most important of all, the tyre is said to give above-average
congregated at the historic Lanzerac Hotel and Wine Estate in Stellenbosch
steering precision (something I can personally attest to) and is more
early in the morning for the start of a memorable drive through some of the
resistant than previous tyres to abnormal wear patterns which can result
Cape’s most beautiful scenery. The idea was to enjoy a scenic drive, over
from wheel alignment or suspension defects.
some breathtaking mountain passes, so as to experience the feel of the Multihawk for the purpose for which it was intended.
So, Bridgestone appears to have gone the extra mile in developing a well-balanced tyre with notable advantages like better safety and lower
With safety as its key focus, particular attention has been paid to its wet-
noise together with greater durability in the long term.
weather performance but we didn’t get to experience this on the day as the sun beamed down on us from start to finish. Not that it mattered. The tyre
Says Daniels: “We are confident the Multihawk will become the
compound is formulated to perform equally well in dry weather without
benchmark in this tyre category…. yet another likely successful product
compromising on durability.
for Firestone – South Africa’s well-loved tyre brand.
16837
THE GOODYEAR HIGHWAY HEROES ARE HERE! There are hundreds of heroes on the roads of South Africa. Goodyear wants to know ^OV [OL` HYL >L OH]L SH\UJOLK H WYVNYHTTL [V ÄUK HUK OVUV\Y [OVZL JVTTLYJPHS KYP]LYZ ^OVZL ZLSÅLZZ HJ[Z VM OLYVPZT OH]L ZH]LK [OL KH` TH`IL L]LU ZH]LK SP]LZ 0[»Z JHSSLK .VVK`LHY /PNO^H` /LYV HUK `V\ HYL PU]P[LK [V NL[ PU]VS]LK /H]L `V\ ^P[ULZZLK H JHZL VM SPMLZH]PUN IYH]LY` VU V\Y YVHKZ& +V `V\ RUV^ VM H KYP]LY ^OV OHZ WLYMVYTLK HU V\[Z[HUKPUN O\THUP[HYPHU HJ[& Nominate them as your Highway Hero! Go to www.goodyear.co.za ;OL /LYV VM [OL `LHY ^PSS IL JYV^ULK ^P[O MHTL HUK MVY[\UL ¶ UH[PVUHS THNHaPUL L_WVZ\YL 9 PU JHZO HUK H [YPW [V 3\_LTIV\YN ,\YVWL ;VNL[OLY .VVK`LHY Z[YP]LZ [V THRL [OL YVHKZ VM :V\[O (MYPJH ZHMLY for all. You can help – nominate your Hero!
M a n u f a c t u r i n g • 1 7
GOODYEAR SA WELCOMES NEW GM Goodyear South Africa’s new General Manager, Leszek Szafran – former Goodyear Poland Sales Director and Member of The Management Board TC Debica SA, the tyre giant’s largest European plant – is determined to boost Goodyear’s position as market leader in the SA tyre industry. The 40-year old Pole fills a newly-created post and comes with a wealth of experience, having spent 15 years in the Polish tyre market and at least three as Sales Director at the massive TC Debica plant. During this time he was instrumental in driving up profitability by significantly increasing Goodyear Poland’s share of the market. He says that in South Africa, the key challenges ‘are to not only meet but also exceed the growing needs of consumers in a way that is most profitable for all stakeholders.’ In particular, the focus will be on product development and brand enhancement, operational excellence and credibility in lasting relationships with customers. He adds they have exciting plans in place for 2010 and beyond and a great team on board to make it happen. He also claims that Goodyear SA will maintain its focus on its two most important assets – customers and staff – while at the same time pursuing a ‘creative production approach.
RECYCLING DRIVE RESULTS IN MASSIVE WATER SAVINGS AT GY In just two months, Goodyear SA has managed to save 5.6million litres of water through an intensive, ongoing recycling initiative which couldn’t have come at a better time given the Eastern Cape’s critical water shortage. Utilities Manager Douglas North says the Uitenhage plant has adopted a three-fold approach to water saving via recycled water from its boiler house (this requires the biggest water usage), by collecting and re-using water run-off and ensuring steam condensation from various production processes does not go to waste. The recovered water is either redirected through a newly-installed, separate plumbing system to the plants’ toilets or used as makeup water for cooling machinery. It has also installed numerous water meters to monitor water usage – and further reduce where it can. In addition to its water-saving initiatives, the South African plant was recently recognised for its eco-friendly management – resulting in an 85% reduction of non-recyclable waste – with its on-site waste management supplier achieving ISO 14001 certification, one of the highest global standards for environmental management systems.
1 8 • P e o p l e
Romano Daniels appointed managing director of Bridgestone Retail
Romano Daniels has been appointed Managing Director of Bridgestone Retail with effect from March 1. He takes over from Gavin Kockott, who has been Chief Executive Officer of Bridgestone South Africa Retail and its owner-based franchise system of Supa Quick, Speedy’s and Autoquip since its inception. Mr Kockott was instrumental in establishing the Supa Quick brand of valueadded aftermarket fitment centres in 1986, when Supa Quick was the first official tyre retail franchise in South Africa. Today it has grown into a 250-strong chain of stores spread around the country and is one of the most respected and trustworthy brands. Bridgestone Retail is part of the Bridgestone South Africa Group, wholly owned by Bridgestone Japan, which also includes Bridgestone Maxiprest in which Bridgestone has a 75% share holding. Mr Daniels, born and educated in Port Elizabeth, joined Firestone in 1989 as Salesman until 1996 when he was appointed as Factory Training Manager at the Brits Manufacturing Plant. After Bridgestone acquired Firestone in 1997, he was later appointed as General Manager, Group Training and Development in 2002, GM of Human Resources in 2003, GM of Group Public Relations in 2006 and added the concurrent portfolio of GM Marketing in 2008. Bridgestone South Africa is a subsidiary of Bridgestone Corporation, headquartered in Tokyo and the world’s largest manufacturer of tyres and other rubber products. Bridgestone South Africa is an active participant in the global FIA/Bridgestone ‘Think Before You Drive’ and ‘Make Cars Green’ campaigns.
P e o p l e • 1 9
Goodyear appoints new Head of Consolidated Africa/ South Africa distribution operations John Sims – former General Manager of Magister Africa, Goodyear South
terms of its stability and creating a sound business platform.
Africa’s distribution business in Africa – has been appointed General Manager of Trentyre.
“The key issue now is to maximise the consolidated business for growth.”
In his new role, Sims, 58, will oversee Goodyear’s distribution activities
Sims, a qualified Chartered Accountant, has spent the past 30 years working
throughout South Africa and Africa – where it currently trades in 13 territories.
for either Goodyear or Trentyre.
“Historically, Goodyear ran two separate distribution operations – Magister
“In the late 1970s, I was an external auditor for Trentyre, Cape Town, which
Africa, for distribution in Africa and Trentyre, for distribution in South Africa.
at that stage was a subsidiary of Trencor Ltd. From there, I joined Trentyre as
There has been a move to consolidate the two.”
Financial Manager.” When Trentyre and MasterTreads merged in the 1980s, he moved from Cape Town to Johannesburg to look after the financial affairs
Sims is determined to build on the success of both business units. “Each has
of the consolidated business in what was then the Transvaal (now divided into
been successful in its own way – Magister Africa, in terms of its growth and
various provinces).
development in Africa over the past few years and Trentyre South Africa, in He soon moved into a general management position, overseeing operations in the northern and eastern Transvaal (now Limpopo and Mpumulanga), before being made General Manager of the Pretoria-Witwatersrand-Vereeniging (PWV) area (now Gauteng), a position he held until 1994 – the advent of democracy in this country. “Political change in 1994 opened up opportunities to move into Africa. For a while, while still involved in the PWV area, I was looking after our first steps into Africa.” In 1996, following the identification of significant distribution opportunities in Africa, Magister Africa was established as a separate entity to run Goodyear’s expansion into the continent, with Sims at the helm. “From 1996 until now, our focus has been on growing our African business.” Sims said business in Africa had changed dramatically in the 13 years Goodyear had been involved. “At the start, many countries were just coming out of war and were poor and under-developed. The situation was fairly volatile. Today, the economic situation in many of these – like Angola, Zambia and Mozambique – has improved drastically.” Raised in Cape Town, Sims spent two years at the then Cape Technikon completing CIS and various other business diplomas before joining Coopers and Lybrand (now PricewaterhouseCoopers) as an audit clerk and completing his Chartered Accountant (CA) qualifications through the University of South Africa (Unisa). From there, he joined Trentyre. Sims is married to Cheryl, a teacher, and has two children Katherine, who works in Human Resources and Christopher, a recently-qualified Chartered Accountant.
D i s t r i b u t i o n N e w s • 2 1
Two transport services giants join forces – MAX T SOLUTIONS IS BORN Bridgestone Maxiprest (Pty) Ltd have announced the merger of their two tyre divisions, Maxiprest Tyres the powerhouse in the world of heavy truck and bus tyres, and Quality Tyres, leader in tyres for mining, earth moving and other off-the-road tyre applications, in the joint creation of “Max T Solutions” ‘We have long had a co-operative agreement,’ says Mr. Kenji Shoda, C.E.O. Bridgestone Maxiprest (Pty) Ltd. ‘Even though the registered company name will remain unchanged it makes perfect sense to formalise that arrangement by merging them to create a new trade name’ ‘We can now truly claim to be South Africa’s total tyre management solutions company.’ According to Shoda, Maxiprest has been a leader in its sector for more than 20 years, offering Bridgestone, Firestone tyres. The
Other services included 24/7 breakdown assistance, mobile
company is equally well known for its unique compressed re-tread
wheel-alignment and tyre surveys.
system and recaps more than a quarter million truck, bus and OTR tyres annually.
As for Quality Tyres, this division has a sterling reputation for its expertise in the supply of mining, earthmoving and other off-
Firestone FD 606
the-road sectors, with its software programme and off-the-road technical expertise going a long way in assisting the containment of tyre costs. Now, the new entity Max T Solutions offers all this expertise, skills and services that made Maxiprest and Quality Tyres so successful, thereby making it a true tyre-management solutions company. Max T Solutions has committed to a new business mantra, promising to ‘deliver the efficiency you deserve’.
A highly successful service of Maxiprests’ was it’s Tyre Maximizer programme, an advanced software system that monitors every conceivable aspect of tyre utilisation enabling you to obtain a customised, realtime picture of your entire fleet’s tyre situation. Covering every possible variable, a suite of a 108 reports can be instantly generated providing vital information that helps you to make effective management decisions. Coming soon will be the new and improved Maximizer 2 programme.
BTS Balfour Tel: 016 349 6927
2 2 • B a n d a g
BTS Cape Town Tel: 021 981 2883 BTS Centurion Tel: 012 653 8779 BTS Durban Tel: 031 464 2109 BTS East London Tel: 083 454 6691 BTS Edenvale Tel: 011 609 2202 BTS George Tel: 044 878 0222 BTS Harrismith Tel: 036 631 0058
Service second to none… now where you need it most!
BTS Johannesburg North Tel: 011 708 6660
Fact: Uptime is crucial in the transport
BTS Kimberley Tel: 053 861 9400
industry. The wheels must keep rolling,
BTS Ladysmith Tel: 036 631 0058 BTS Lichtenburg Tel: 018 632 6777 BTS Middelburg Tel: 013 282 8368 BTS Midlands Tel: 036 631 0058 BTS Mokopane Tel: 015 491 4535 BTS Nelspruit Tel: 013 752 8015 BTS Newcastle Tel: 036 631 0058 BTS Parow Tel: 021 931 7356 BTS Port Elizabeth Tel: 041 487 3411 BTS Pretoria Tel: 012 377 0150 BTS Rustenburg Tel: 084 509 4813
with time delays kept to a minimum, particularly when the consequences of a breakdown can mean the loss of a load or a vital contract in a sector where competition is already fierce. With this in mind, the Bandag Truck Service (BTS) outlets and service units pride themselves on being ONE-STOP truck specialists, offering truck and tyre related services in a quick and professional manner. And because fast and reliable service must be on hand when you
a host of invaluable management information and unparalleled
need it most, these professional units are conveniently located
services to complement their premium Bandag retreads. This
close to main truck routes, forming part of the extensive Bandag
extended service offering is all part of Bandag’s philosophy to
service provider network. BTS was first introduced to the South African transport industry in 2001. The concept has evolved into a unique solution for
go the extra mile for its fleet customers, so that they in turn can achieve a favourably competitive position within their respective industries.
BTS Thabazimbi Tel: 014 777 2254
commercial transporters and is at the stage where it makes
BTS franchisee’s live by the motto, ‘Be Truck Smart’, thereby
measurable differences to the bottom line of fleets that it services.
clearly demonstrating that while tyres are the main focus, their
BTS Umtata Tel: 047 531 5125
The evolution can clearly be seen in the introduction of the BTS
BTS Vryheid Tel: 034 981 5303 BTS Windhoek Tel: 00264 612 67800 BTS Witbank Tel: 013 691 1328
Express concept - a fully-equipped service trailer that now allows BTS franchisees to take service delivery to the next level; where fleets need it most…. on the road! With 26 BTS franchisees strategically located around South
operations are vehicle-centric, providing a holistic product/ service package for total peace of mind. Service, Service, and more Service, comes naturally to a BTS! So, the next time you need maintenance on your tyres, call your nearest BTS franchisee for a service experience second to none…
Africa, this now well-established concept has become yet another
For more information please contact Bandag on 011 439 6000 or
benchmark in this business with BTS franchisees also offering
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
2 6 • O I nndeu- sotnr -yO Nn e w s
Pirelli space opens
AT 44 STANLEY AVE, MILPARK
Worldwide Pirelli is recognised for iconic communication campaigns, not
this reason we decided to launch a Pirelli Space as a cross-disciplinary project
least of which is the annual Pirelli Calendar which now has a cult following.
with strong roots in the field of industrial design. 44 Stanley is the perfect
The new Pirelli space at 44 Stanley Avenue, Milpark, Johannesburg, is a new
solution to showcase the diversity of Pirelli because it is upmarket and unique.”
unique opportunity for Pirelli to showcase this culture as well as continue to communicate through unique mediums.
Through this investment, which combines events, art, design, fashion and collaborations in industrial design projects in a continuous exchange between
44 Stanley was once a series of industrial buildings but is now a relaxed
history and the present day, Pirelli testifies to its focus, now as in the past,
meander through 25 speciality boutiques, restaurants and design studios. It
on the most up-to-date forms of linguistic research and communication: this
is a synergy of creative souls, aloes, 1930s architecture and deliciously unique
attitude is fundamental to its remaining an industrial trend-setter that knows
products and now also home to Pirelli’s latest initiative which ranks as a world-
how to marry innovation, research, creativity and quality, not just in Italy but
first.
worldwide.
The move was in response to market research that was carried out which
Adds Renato: “This month we are showcasing the iconic Pirelli Calendar
demonstrated the Pirelli brand as glamorous, sexy and fashionable.
allowing people to come and see the legend that is ‘The Cal’. Each month the
Says Pirelli MD, Gianluca Renato: “We were looking for a way to leverage on
theme will change to bring to light a new dimension but the main message
our brand positioning as well as to communicate our passion and values and for
remains the same – Pirelli is innovative, creative and forward thinking.”
I n d u s t r y N e w s • 2 7
Bridgestone goes green Bridgestone
has
demonstrated
its
commitment
“About three-quarters of the ‘Challenge’ trainees have
to reducing carbon emissions via its international
reduced their fuel consumption and several have managed
sponsorship of the FIA’s Make Cars Green environmental
to save more than 20 percent over their April to June
motoring campaign.
averages,” Daniels says. “This has directly saved Bridgestone over R20 000 in fuel costs for the Challenge group, and
Romano Daniels, Bridgestone SA General Manager
we expect to recover the cost of training in around eight
of Group Communications and Marketing, claims the
months through fuel savings alone.” He added that only
local tyre maker has experienced large reductions in
route changes necessitated by roadworks and additional
fuel costs and CO2 emissions after training 121 sales
client visits in the run-up to Christmas had prevented even
and managerial staff countrywide in defensive and
greater savings.
economical driving skills as part of its commitment to Make Cars Green. Without the estimated 19 400kg reduction in CO2, emissions to date for Says Daniels: “Our staff attended a three-part training programme, presented
the entire trainee group, Bridgestone would have had to plant 566 trees to
by driving skills company, driving.co.za, which started at the beginning of
absorb these emissions. “By next June, the reduction in CO2 emissions will be
July. The progress of 40 trainees who are participating in our ‘Eco-Drive
equivalent of planting over 2 400 trees since the start of training,” says Daniels.
Challenge’ is being closely monitored via our fleet management system.” Driving.co.za MD, Rob Handfield-Jones claims that the savings in fuel Average fuel consumption from April to June 2009 was 8.71l/100km but
consumption and CO2 emissions were part of a broader picture. “Trainees are
then dropped to an average of 8.36l/100km from July to October. Average
already reporting increases in brake pad and tyre life,” he says. “The production
CO emissions, which were calculated at 224.8g/km from April to June
of these items has an environmental impact, so making them last longer means
2009, dropped to 215.7g/km from July to October.
fewer emissions per kilometre.”
2
2 8 • I n d u s t r y N e w s
CFP Tyres is going places in 2010
Triangle’s new ‘green’ manufacturing plant under construction
What with a rapidly growing product range, much of which will be going green this year, local distributor of high quality Chinese brands, CFP Tyres, looks set for a bumper year ahead. In January 2010, CFP launched its first privatebranded tyre – the CFP2000 195R14C WSW, the first of several planned CFP-branded product launches for 2010, an accomplishment made possible via its long-term association with Triangle Tyre Co and other superior quality brands. Tewus Wessels (CFP Branch Manager - Centurion), Nico Snyman (CFP Branch Manager - Kimberley), Alida Mouton (Import Director) and Pieter Pitout (Sales Director) accept the Golden Partnership Award from the Triangle Tyre Group on behalf of CFP Tyres.
I n d u s t r y N e w s • 2 9
An Artists impression of Triangle’s new ‘green’ manufacturing plant
CFP Tyres’ relationship with Triangle Tyres
manufacturing in China. The project will
Water saving will be maximised by recycling
spans a decade, a milestone that saw CFP
revolve around the following features:
all water used in production to realise ‘zero
being honoured by the Chinese manufacturer at
the
recent
‘Low-carbon
economy/
Green manufacturing Business Summit for Sustainable Growth’ conference, held in Weihai, China, with a Golden Partnership Award for excellent sales performance. In addition, CFP Tyres proudly announced its affiliation with Xuzhou Xugong Tyre Co. Ltd, by way of the sole distribution of the Armour brand of tyres for Southern Africa. Armour tyres is no stranger to the local industry having enjoyed a long history in the South African market courtesy of a product that’s achieved
Clean and green new energy utilisation making
discharge’ in an effort to avoid wastage.
full use of the solar space to produce reproducible
The latest technology will be adopted to
and pollution-free energy for factory lighting
recycle surplus heat and gas in order to
and daily life use so as to promote low-carbon
eradicate the discharge energy and emissions.
production and set up a new life mode. Energy-saving technology,
and
high-efficiency
adopting
first-phase
New information technology in the form mixing
of digital and visual control systems to
low-
all processes of tyre production will be
temperature mixing technology with its own
applied as well as an automated flow
intellectual property rights. This is expected
management system to promote modernised
to translate into an energy saving of 10%, with
management.
efficiency improved by 20% which will effectively improve radial tyre quality.
In short, Triangle Tyres looks set to raise the bar in the fight to combat global warming,
a strong following in the Mining, Construction
In line with environment protection guidelines,
with its many distributors around the world –
and Agricultural sectors.
a new spray system will be employed to purify
CFP Tyres being one - equally poised to reap
emissions and resolve the gas odour associated
the results of such a bold and commendable
with tyre production.
initiative.
Triangle is going GREEN ‘Low carbon, going green, high efficiency and kind-to-the-environment’ is the driving force behind the Triangle Group’s effort in building a green tyre manufacturing plant. The new factory – covering more than 1 600 000m2 of land – will have the capacity to produce more than 5.6 million pieces of high performance truck and bus radial tyres annually. Coupled to that, Triangle will focus on green and clean energy utilisation, greenhouse gas emission reduction, water recourses circular utilisation, fume purification, cure surplus heat recycling, as well as information-based and automation-based production control, which will represent a new direction of tyre
Deon Mouton (Financial Director), Charles Pitout (Chairman) & Harry Verhoog (General Manager) with CFP’s first private branded tyre – the CFP2000.
3 0 • I n d u s t r y N e w s
CONSUMER PROTECTION ACT
About to be enforced The Consumer Protection Act, No 68 of 2008, (“CPA”), is about to put
• You may not use misleading trade descriptions, marketing or adverts
power in hands of consumers.
• You must clearly disclose the fact that goods are reconditioned goods • You must disclose that goods are “grey market goods” (for example -
The CPA will become effective in October 2010, making you accountable
imported without the manufacturer’s guarantee )
for what you sell and for the services you provide. The CPA creates fundamental consumer rights”. In broad terms these Unless you and your employees understand this Act, prepare for its
rights are described in the CPA as follows:
implications and comply with its requirements – you may be facing stiff
• The right to equal access to the consumer market
penalties and claims made against you by consumers.
• The rights to confidentiality and privacy • The right to choose
From October 2010 you will have to ensure that:
• The right to disclosure of information
• Your marketing practices are fair and responsible and comply with the
• The right to fair and responsible marketing and promotion
provisions of the CPA
• The right to honest dealing and fair agreements
• You properly disclose prices and information related to goods for sale
• The right to fair value, good quality and safety
• Your terms and conditions of sale and service are reasonable and comply
• The suppliers’ accountability to consumers.
with the provisions of the CPA
This all means that you will be liable for any shoddy service and inferior
• You draw the consumers’ attention in a conscious manner to certain
products and consumers will have easier access to redress against you.
conditions or warnings or risks relating to a product before the person
The CPA applies to almost every commercial relationship or transaction that
buys the product or enters into an agreement with you.
occurs in South Africa on a day-to-day basis.
DID YOU KNOW THAT? …
If you do not take cognisance of and comply
suffers: he can just directly sue you as the
with the provisions of the CPA, and train
seller of the product!
your staff accordingly - your transactions may be legally unenforceable!
If in supplying a service, you also use or apply or install any goods (as part of the
If you are a producer, importer, distributor,
supply of your services), then you are now
retailer, installer or provider of access in
also regarded as being the supplier of those
respect of any goods: you can be held liable
goods and will therefore also be liable for
for any harm, including death, illness or
defects or damage caused by those goods!
injury to any natural person; loss or physical damage to any property; and certain economic loss, caused by any unsafe goods, product failure or defect, or even
That if your staff are not correctly trained about the provisions of the CPA – your will also be held liable
from inadequate instructions or warnings on
The burden of proof now falls on your
packaging, even if you did not manufacture
shoulders and you now have limited
the product!
defences to any claims made by a consumer
If a consumer wants to sue you - he
That penalties and fines for non-compliance
no longer has to establish a causal link
with the CPA can run up to 10% of your
between a defective product (sold by you)
annual turnover or R1 million (whichever is
, its negligent manufacture and the harm he
the lesser).
3 2 • C o n t i C o r n e r
PROMOTION
CDo ins tt ir i Cb ou rt ni oe nr • 3 3
• Continental takes first place for the third consecutive time • 20,000 readers of ‘Auto Zeitung’ participate in vote • Continental tyres gain top places in tests carried out by ‘Auto Zeitung’
For the third year running Continental has been voted ‘Best Brand’ in the category ‘Tyres’ by over 20,000 readers of the magazine ‘Auto Zeitung’. The vote was held last autumn, with the results being published in the latest issue of ‘Auto Zeitung’ (4/2010). The readers’ positive evaluation of the premium tyre brand is also reflected in the very good test ratings awarded to Continental tyres by the experts from ‘Auto Zeitung’ in their regular tests of summer and winter tyres for cars. Last year, for example, in the winter tyre test, ‘Auto Zeitung’ gave the car tyres manufactured by the Hanover-based European market leader Continental the top rating ‘highly recommended’. In the 2009 test, Continental summer tyres for cars also took first place. In the vote to determine the ‘Best Brand’ in the category ‘Tyres’, Continental was competing alongside brands from European, American and Asian manufacturers. The readers of ‘Auto Zeitung’ also voted for the best brands in ten other categories.
Continental voted‚ ‘Best Brand’ by readers of Auto Zeitung PROMOTION
3 2 • D i s t r i b u t i o n
MAXXIS TYRES S.A. (011)314-2428
T a l k i n g T y r e s • 3 5
OFF-ROAD TYRES
Proven, then punished Designing and developing an
Of all the staggering technological developments that have taken place in the automotive sphere over the last decade, tyre technology arguably stands head and shoulders above the rest. Manufacturers are constantly being challenged to produce tyres that are more capable across a broader, and increasingly divergent, spectrum. From a high-performance car running on pseudo racing rubber to an average family sedan that’s now capable of easily surpassing 200 km/h – the rigours the poor old tyre faces are more complex than ever. But as far as capability is concerned, the off-road or 4x4 tyre probably
off-road tyre has to be one of
faces the most punishing criteria. Across this increasingly diverse
the most complex tasks a tyre
conquering the streets of the urban jungle to bundu bashing their way
manufacturers faces, with the
category, modern 4x4s are expected to do just about everything – from well off the beaten track.
need to offer decent grip in
It’s simply remarkable to think that the tyres on a vehicle such as the
virtually all driving conditions.
375 kW of power and 625 Nm of torque generated by the top-spec
plus girth.
By Colin Mileman
peerless Range Rover, for example, have to transfer the full might of Supercharged V8 to the road, while containing its substantial two-ton-
3 6 • T a l k i n g T y r e s
And although few owners will spend well over a million rand on a 4x4 and
thick, sticky mud, treacherous rocks, deep river sand, slippery grass and
then bash, scrape and drag it through the bush, straight off the dealer
unforgiving tracks ready to catch out the unwary.
floor it’s designed to do just that. Add in the five-hour stint on highways and rural roads to get there (and Therefore to a lesser or greater degree, the tyres are expected to be
back) in the first place along rapidly deteriorating country roads, and it’s
capable of hustling along the highways and byways at speeds approaching
simply incredible that it was all conquered with relative ease. And as far as
double the national limit, and then be just as happy to tackle sand, rocks
I’m aware, there wasn’t a single puncture either …
and mud in their stride. But what surprised me most was the bog-standard General Grabbers fitted Obviously anyone planning to do serious off-roading is likely to fit
to our two press/medical Defenders.
dedicated 4x4 rubber that is biased towards the hard-core stuff – but even then the most focussed off-road tyres still have to get you to and
While all of the vehicles used by the competitors and organisers were kitted
from your 4x4 playground, typically for long stints at 120 km/h, and with
out with serious 4x4 rubber, dominated by the likes of the much-vaunted
the additional burden of all your hefty camping and adventure gear piled
BF Goodrich Mud-Terrain and All-Terrain T/As, as well as the Cooper
on board.
Discoverer S/T and STTs, our factory-spec general-purpose Grabber TRs appeared to be at a major disadvantage.
The genuinely astonishing all-terrain abilities of the tyres in this segment became abundantly clear for me on the recent Defender Trophy, an
Seeing the competitors stretching their tyres to the limits in terms of lateral
annual 4x4 competition hosted by Land Rover Centurion, and staged this
strength, outright grip and simple durability on some of the tasks proved
year in Swaziland during February.
that you need the right tyres for the job.
Bearing obvious synergies with the legendary Camel Trophy of yore, 18
And it was only made more treacherous as the rain began to fall,
teams lined up at the start in their prodigiously equipped Defenders. Over
transforming already difficult tracks into nail-biting ascents and descents
the four days, they endured a wide range of driving tasks that encompassed
that would surely even have tested the abilities of a nimble mountain goat.
T a l k i n g T y r e s • 3 7
There were several instances when the lack of widely spaced tread blocks and self-cleaning ability resulted in our multi-purpose tyres becoming mudcaked slicks. But this is where the collaboration and synergy between vehicle and tyre technology makes the difference between forward progress and faltering, as the lack of focussed performance of the tyre in these gruelling conditions was made up for by Land Rover’s superbly competent traction control. Combining this technology with the appropriate tyre pressures and a wellmeasured driving approach allowed for constant and reassuringly surefooted progress, even at the most difficult points on the route. The lack of hard-core off-road ability was not a poor indictment of the tyre’s ability, but rather a reminder that absolutely no tyre can be all things to all men. And as much as manufacturers work tirelessly to develop new products that excel in every role under the sun, tyre design is, and always will be, a compromise. You can have a rugged 4x4 tyre that will carve its way through the Amazon with ease, but hit the highway with vengeance and it will be rapidly ripped to shreds. At the opposite end of the scale, tyres developed for the increasingly pervasive high-performance sports utility vehicle segment have to cope with ridiculous acceleration and top speeds, but will be left floundering at the sight of a muddy track – sometimes even with an armada of electronic traction gadgets on board. Ultimately one tyre cannot be all things to all men, and the gap between the opposite ends of the spectrum grows daily. Thus it’s more important than ever to match the tyres to the vehicle and its intended application – and the role of the tyre industry as a consumer educator in this regard cannot be understated. But when you get the combination right, especially in the hard-core 4x4 sense (allied to an appreciable level of environmental responsibility), the off-road world (think Swaziland, Lesotho and our very own Wild Coast) becomes your oyster.
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.
D e a l e r p r o f i l e • 3 9
NEW MODEL
SUPA QUICK STORE OPENS IN FOURWAYS Luis Baptista
The new Supa Quick store in the Fourways Crossing
shopping
complex
opened
in
September of last year. One of the first stores in the country to flaunt the new corporate image, this particular outlet sets the bar in other respects as well, not least of all, cleanliness, accessibility and transparency. Situated next to Dial-a-Bed across the way from Fruit & Veg City, this pristine retail centre which features ample parking and easy access in and out of the store, is a welcome addition to the Fourways landscape which is fast becoming the next important business and residential centre in Johannesburg’s northern suburbs. The man at the helm is Luis Baptista, a newcomer to the tyre trade but no stranger to retail having successfully owned and managed a succession of upmarket supermarket stores during his lifetime. But why such a radical departure from an industry that had shaped the The dedicated wi-fi area
better part of his working career, we ask? Relating some of the perils associated with his previous line of work, Luis says: “Whilst I loved the
4 0 • D e a l e r p r o f i l e
The Fourways store sets a new benchmark in terms of aesthetics, cleanliness and transparency.
❝ I’m proud and excited to be game, my family and I were the victims of 21 armed robberies over the course of 27 years. Thankfully, we escaped serious injury or harm, but
one of the very first ‘new
“That’s the reason I chose not to include exhaust
model’ shops in the group
fitment into my range of services,” says Luis, whose
these events, coupled with the realisation that we
❞
were ultimately sacrificing quality of life, led me to
outfit sells batteries, brakes and shocks, as well as tyres. We are a retail operation, not a workshop,” he insists.
rethink my entire way of life. The tyre trade had always appealed to me for a number of reasons: it was still retail and retail was what I knew and the
A dedicated advertising campaign in the local press and motoring section of
trading hours (8am-5pm) are a lot more conducive to a family life. I now
The Star, has gone a long way towards getting the word to prospective new
have Sundays off – a sheer luxury for me who was previously compelled to
customers, but Luis claims that word-of-mouth has also played a major part,
work seven days a week.”
resulting in successful trading since it’s inception been felt across all market sectors, and the tyre trade is no exception adds Luis, with greater numbers
Luis claims he chose to align with the Supa Quick brand, after thorough
of people down-scaling on their brand purchases. He says: “I cannot wait for
research into the tyre market which findings clearly showed Supa Quick to
the economy to pick up. This store is well positioned and perfectly poised
be a leading brand with a strong affiliation to world-class products such as
for future growth.”
the Bridgestone and Firestone tyre brands. Next on the horizon for Luis in his quest to grow the family business, is He explains: “I’m proud and excited to be one of the very first ‘new model’
the opening of a second store, perhaps even two more, in an undisclosed
shops in the group. What with the recent revamp and the brand strength, I
location. “In today’s market, location is everything. You need to be able to
believe Supa Quick is perfectly poised to lead this industry.’’
offer the customer a way to entertain themselves while you’re working on the vehicle, and being close to a shopping mall/coffee shop allows you to do
The ‘new model’ to which all Supa Quick outlets around the country will
that.” Part of his current service offering involves transporting and collecting
eventually subscribe, involves greater emphasis on the back-end of the
his customers to and from the nearest shopping centre in the interests of
business, with elements such as a pristine working environment (complete
making their tyre replacement experience a painless, pleasurable and a
with dedicated wi-fi area), shop cleanliness, upmarket toilet facilities and
memorable one.
greater transparency between the reception area and fitment area (these elements are now divided by clear glass) taking priority.
Welcome to the industry Luis…we wish you every success!
4 2 • T r e n t y r e n e w s
Retreading – making Rands and sense The prevailing economic climate is forcing businesses across the board to work within ever-tightening budget constraints. And for the commercial sector in particular, increasing fleet operating costs have to be balanced against static or narrowing income. Hence tyre retreading is now a more prudent choice than ever.
Financial turmoil, global recession, credit crunch, economic instability – this
De Maudave points out that retreads offer numerous budget-friendly
is the uncertain climate in which all sectors of business, from manufacturers
benefits, the most pertinent being that they are more than 50 percent
to service providers, face exceptionally tough trading conditions.
cheaper than new tyres, while offering similar mileage. Depending on condition, the casing can also be retreaded up to three or four times,
Budgets are being put under pressure, operating costs are rising and every
making the most out of each tyre.
rand spent has to be carefully assessed and justified. “The cost-per-kilometre ratio becomes very attractive when you consider Yet the wheels of the economy need to continue turning and, as the prime
the total service life of the tyre, and currently at least 90 percent of the big
mover in this field carrying around 95 percent of the country’s goods, the
commercial fleets in South Africa use retreads as it makes great financial
commercial truck sector has to find new, innovative ways of reassessing
sense.”
operating costs and efficiency. There’s an important environmental angle too, as reusing the casings results Whether running large fleets of 26-wheelers, or a smaller business with
in significantly fewer tyres being scrapped. Due to this fact, significantly
medium duty trucks, tyres remain one of the most expensive items on any
less oil is required to produce a retread compared to a new tyre.
company’s balance sheet – and although retreading has offered a costeffective alternative to new tyres for decades, it has gained even greater
Goodyear also has a global environmental drive, called ‘Zero waste to
relevance in the current economic context.
landfill’, in which its division, Trentyre, plays a vital role by productively using waste material in other products in their manufacturing cycles.
“Cost-per-kilometre is the main driver of the commercial industry,” explains Sylvain de Maudave, Trentyre’s Technical Director. “It all boils
Myths and misconceptions
down to how much the tyres cost the end user,
Although retreading is common practice in the
from cradle to grave and the kilometres generated through the life of the tyre”. “Even when we design a new tread, our customers simply want to know what the mileage improvement is compared to the current version, so cost is king.”
TRUCK TYRE TIPS
minimum r retreading with • Remove tyres fo depth overall 5 mm tread re su s regularly • Check tyre pres diameter d, size and outside • Match tyre bran on axles hicle al fitness of the ve • Ensure mechanic t en ve tyre managem • Employ an effecti system
commercial industry the world over, and has been around virtually as long as the tyre itself, some still regard it with a level of scepticism. The main misconception surrounds the view that retreaded tyres are less safe than new tyres, and have a higher failure rate.
T r e n t y r e n e w s • 4 3
However, statistics compiled by the US
While this is an extreme case, overloading
Department of Transport show that under-
is common in South Africa, and this places
inflation or excessively worn tyres are the
excessive pressure on the tyres, leading to
primary causes of tyre-related accidents, and
overheating and premature failure. Running
not whether it’s new or retreaded.
below the ideal pressure also increases the
Although many people associate tyre debris
fuel consumption.
rolling resistance of the tyre, leading to higher (commonly referred to as doughnuts) found on our roads with retreads, De Maudave states that
To combat these common problems Trentyre has
this is generally not the case.
created a service package that includes its 24/7 Call Centre, round-the-clock breakdown service,
“A recent local survey revealed that 80 percent of the doughnuts picked
on-site operations and retail outlets, its innovative Tyre Management
up on the freeways were from new tyres. When a retread fails just a
System (TMS) is one of the company’s core strengths in the commercial
piece of the tread comes off, but when the casing fails the entire belt
sector, and is recognised as an important tool in optimising productivity
pack separates from the tyre.
and reducing operating costs.
“The retread failure rate for Trentyre is less than 1 % of our monthly
The pioneering TMS is a complete, computerised wheel monitoring
production which, considering our huge volumes, is negligible. We
system that measures and manages every aspect of the tyre throughout
guarantee all our work.”
its life. It allows fleet managers to actively track everything from tyre history to running costs, tyre pressures and inflation accuracy,
There’s also a perception that retreads wear more rapidly, don’t
repairs, wear rate, remaining tread depth, individual tyre type or brand
offer comparable performance characteristics and have a higher
performance relative to application and positioning on vehicle – and
rolling resistance. But he dismisses this, highlighting the fact that the
so much more.
technology employed on the precure treads used for commercial tyres is directly derived from Goodyear’s new truck tyre development, and
Additionally, the TMS Early Warning System identifies problem areas
the quality and performance are of the same high standard.
on a vehicle causing increased wear, or factors leading to excessive operating costs. And the use of unique
Tyre management is crucial
date and operator tags for each tyre
It’s clear that tyre failure is most
makes it possible to identify and rectify
commonly a direct result of poor
potential shortcomings during the tyre’s
tyre maintenance and management.
entire life cycle.
“When times get tough, people start overloading their trucks and
Going Oriental
start pushing the boundaries of
The influx of cheap imported Chinese
performance
to
tyres is becoming increasingly common,
save costs,” De Maudave says,
although there’s a mix of good and bad.
and
endurance
referring specifically to an incident where a truck carrying steel from
However there are also good quality
Johannesburg and Durban was found
imports, and Trentyre does sell some
to be overloaded by 35 tons, which
of the proven Chinese brands, which
is more than double its regulated
are ideal candidates for cost-effective
capacity.
retreading.
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W o r l d n e w s • 4 5
CHINA’S TYRE-MAKERS FACING TOUGHER COMPETITION FROM MAJORS China’s tyre-makers are facing tougher and growing competition from major industry names, says Tire Review, as companies like Groupe Michelin, Bridgestone Corp and others are boosting their investment in China. According to the People’s Daily, ‘Booming domestic market made foreign companies more confident in their expansion in China, unnamed Chinese tyre-maker located in Shandong province. Michelin recently announced a $1 billion investment to build a tyre plant in Shenyang in southeast China; that facility is slated to open in 2012. Continental AG started construction of a new plant in China last September with investment of 600 million euros and annual capacity of 18 million tyres, including a new research and development facility in
©iStockphoto.com/Johnny Powell
and will lead to more fierce competition,’ said a manager from an
DUNLOP ACQUIRES AIRCRAFT TYRE BUSINESS
Shanghai. Bridgestone is expanding its factories in China and Yokohama
Testing and manufacturing equipment made available following
Rubber Corp said it was expanding its Hangzhou factory to achieve
Yokohama Rubber’s decision to withdraw from the aircraft tyre
annual output of 5 million tyres. Toyo Tire & Rubber co. is investing
business has been acquired by Dunlop Aircraft Tyres.
$9.8 million in Jiangsu to build a plant.
The Birmingham-based manufacturer has signed an agreement to purchase several pieces of radial and crossply tyre manufacturing
MICHELIN INTERESTED IN SHOWING ECO-CHARACTERISTICS IN F1
equipment including an additional dynamometer. These products
Reports suggest that Michelin is seeking ways to re-enter
radial main tyres for the Boeing 777.
should enable Dunlop Aircraft Tyres to expand manufacturing capacity and enable the company to offer new products, such as
Formula One on the condition that the tyres’ ability to affect fuel consumption positively. Jean-Dominique Senard, a Michelin discussions’ with the FIA, saying that the company’s ability to
MICHELIN AND VOLVO SIGN INNOVATION PARTNERSHIP
supply the sport’s tyres would hinge upon new rules to show
Michelin and the Volvo Group have signed a contract extending
the ecological benefits tyre technology can achieve – one of the
the agreement that has made Michelin the Swedish automotive
mainstays of Michelin’s corporate message.
manufacturer’s main tyre supplier since 2003. The two companies will
The French giant supplied tyres to F1 until 2006, saying that the
now work together on innovation projects. Under the contract signed on
company did not want to be a part of the sport if there was no
25 January 2010, Michelin will supply truck tyres as original equipment
competition between tyre-makers. However it seems now that
for vehicles assembled by Volvo in North America, South America,
Michelin has modified its agenda, since Senard made it clear to
Europe, and, for the first time, Turkey, and marketed under the Volvo
Bloomberg that its participation was no longer dependent on the
Trucks, Volvo Buses, Renault Trucks and Mack Trucks trade names.
managing partner, said that the company was in ‘formal
competitive element. Instead, tyre technology and what ‘they can bring to the automotive industry’ would be the vital aspect of a Michelin-supplied championship, whether involving other brands or not. Bridgestone, the current F1 supplier is to withdraw its Potenza tyres at the end of the 2010 season.
With the signing of this new contract, the two companies also decided to pursue and step up their cooperation in the area of research and development. The goal is to bring market innovations to equip future generations of Volvo to view leveraging the benefits of Michelin’s low fuel consumption tyres.
4 6 • W o r l d n e w s
CONTINENTAL EXTENDS FOOTBALL SPONSORSHIP WITH WORLD CUP 2014 DEAL
TYRE INDUSTRY NEEDS 4% PRICE TO OFFSET NATURAL RUBBER COSTS Assuming
foreign
exchange
rates remain stable, the skyrocketing natural rubber price means the tyre industry will have to increase selling price by 3-4% to offset this raw material.
Continental has extended its sponsorship of international football events with a deal to become the Exclusive Tyre Partner and Official Sponsor of 2014 FIFA World Cup in Brazil. ‘With preparation for activation of our sponsoring of the 2010 FIFA World Cup in South Africa going ahead at full steam, we have already laid the ground for worldwide marketing communication in the next few years by
That’s the view of Deutsche Bank
renewing the FIFA partnership through 2014,’ explained Nikolai
analysts who report in a recent
Setzer, Continental Executive Board member for Passenger and Light
investors note that the natural rubber price has doubled over
Truck Tyres.
the last 12 months from US$1.5/
“As a central communications platform, pro soccer has been shown
kg to US$3.0/kg.
to be extremely useful in enhancing brand awareness in our core markets and in contributing to a steady strengthening of our premium Continental brand’s market position. Being the effervescent soccer nation that it is and the host of the next FIFA World Cup, Brazil already, at this time, promises a uniquely enthusiastic and impassioned festival – attributes that likewise excellently fit our products,” Setzer continued.
SA_Treads_210-138.pdf
2009-10-20
16:03:28
(*all excerpts courtesy of tyrepress.com)
China (Guangrao) International Rubber Tire & Auto Accessory Exhibition
9, 10 & 11 May 2010
Guangrao International Expo Center, Shandong, China Organizer: China Council for the Promotion of Int’l Trade People's Government of Shandong Province Exhibition Organizing Committee Tel: +86(0)546-7799000, 7799222 Fax: +86(0)546-7799111, 7799333 Email: chinagrtyre@chinagr.gov.cn; chinagrtyre@163.com
Website: www.chinagr.gov.cn
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
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