sa treads june 2013

Vol 1

9 •

June

201

3

a set of the new Michelin Primacy 3 tyres courtesy of Michelin SA!Focu

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Tyre Imports – Have the tables turned?

Agricultural sector takes a hit

Michelin’s Andre Bonnet outlines plans for SA market

Apollo sells SA stake to Sumitomo Rubber Industries

New multi-terrain tyre from Cooper

Syn

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5 -

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715

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read

S.A

FLEET MANAGEMENT DOWN TO AN ART

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With its large size, cohesive social dynamic and strategy of charging in formation, the Buffalo is feared by predators. Bandag’s National Fleet Programme provides Fleet Customers with a platform to act as a strategic herd in fending off bottom line predators, like the five mileage thieves. With its tailor-made fleet management solutions, national franchise network and superior retread products, Bandag’s National Fleet Programme increases vehicle uptime while reducing CPK. That’s what we do.

10715 - Pro-fleet ad - Tread S.A.indd 1 2011/11/08 1:52 PM

editor LianaShaw

Technical consultant WrayShaw

reproduction DianevanNoort

Printing TYPO

–ColourPrintingSpecialists

Distribution PrestigeBulkMailers

Advertising LianaShaw

Contentsone-on-onewithAndreBonnetMichelinSA’sManagingDirector............................ 3

Focus onTyreImports.......................................................................................... 9

ManufacturingNewCooperMulti-TerrainTyreavailableinSouthernAfrica................. 17WinaSetofMichelinPrimacy3Tyres!................................................. 18DunlopAwardingaJaguarXfatTopGear!............................................. 18GoodyearPlantAchieveshighestauditedqualityscoresever.............. 23ApolloTyresandSumitomoRubberIndustriesstrikedealinAfrica...... 27NewGoodyearCallCentreCommitsto24/7service........................... 28

conti cornerGeneralGrabberMTconquersAfrica!.................................................. 24GrabberMTlaunchedatRustdeWinter............................................... 25

Industry newsFaststartforTyrexpoAfrica2014asexhibitorsfromallsectorssignupforJohannesburgshow............................................................. 30TyrecorsecuresdistributionrightstoMitas........................................... 30

Talking TyresBrandEquity:Changingmindsets......................................................... 33

Goodyear newsGoodyearPlantInvestmentsEnsureQualityProducts.......................... 36GoodyearEaglesgivesportynewForditswings................................... 36GoodyearGearsUpfor2013TruckRacingSeason.............................. 37TyreofChoiceforRhinoProtection...................................................... 37

World newsTrianglebecomingglobalplayer............................................................ 39Bridgestonewinspatentrightslawsuit–InChina................................. 39NewinvestorslookingatbuyingstakeinPirelliholder......................... 39SchaefflerendingContiinvestmentagreement..................................... 39

competition, subscription, Website ........................................ 40

A note fromthe editor

Amidst prolonged concerns on the part

of the local industry over the rising influx

of imports and their long-term effects to

their business, importers of reputable

tyre brands are equally concerned over

what they describe as regular onslaughts

to their businesses on the part of

government and local industry.

Are importers being subjected to unfair

businesspractices?Inthisedition,weexaminesomeofthepressingissues

surroundingtheimportationofforeignbrandsintoSouthAfrica,particularly

the recent scrapping of the rebate on herringbone tread tyres, which

has sent the agricultural sector into a tailspin. Precisely what prompted

this,orwho,remainsasubjectofhotdebate,asourstoryonpage9will

illustrate.Interestinglytooandaccordingtomultipleimportcompanies,in

somecases,locallyproducedtyresarenowcheaperthanimportedmakes,

thereby posing new challenges for the importers who have traditionally

competedinthismarketonprice.

Wecouldnotsubstantiatethisclaimatthistime,butanumberofdealers

wespokewithdidconfirmthatsomelocalmakesandsizeswerecurrently

selling at more favourable prices than many imported makes, which is

surprising,tosaytheleast.

Stayingwithimports,wealsobringyouanexclusiveinterviewwiththeman

atthehelmofMichelinTyreCompanySA,AndreBonnet,whooutlinestheir

ambitiousplansforthecompanyandalsotalksaboutthereleaseofsome

excitingnewproducts in thedomesticmarket, among them theMichelin

XWorks (completewithAccidentalDamageGuarantee!) and theMichelin

Primacy3forthepassengermarket.*To stand a chance to win a set of the new Michelin Primacy 3 tyres, turn to our competition page (page 40).

Also in this issue, we announce the sale of Apollo’s Ladysmith plant to

SumitomoRubber Industries, a turnofevents thathas sent shockwaves

throughouttheindustry.Detailsofthistransactionanditslong-termeffects

toApolloSAremainsketchy,butwewillprovidefurtherinformationasand

whenitbecomesavailable.

Don’t forget to stay in touch via our International Tyre Portal – www.

satreads.com – which features fresh stories relating to the local and

internationaltyresectordaily!

Staywarm….tillwemeetagainintheSpring.

I n t r o d u c t i o n • 1

Publishers SkyPublicationscc

POBox702

Douglasdale,2165

Tel: (011)6580011

Fax: (011)6580010

Cell: 0828516777

E-mail: [email protected]

Website: www.satreads.co.za

FrontCover:www.istockphoto.com

O n e - o n - O n e • 3

Dutch-born and raised Andre Bonnet, assumed

responsibility for Michelin Tyre Company South Africa in

2010 in his capacity as Managing Director. In that time,

the Michelin brand has continued to secure a growing

presence in the domestic market, and this despite the

premium nature of the company’s products in a cost-

consciousmarket.Anexclusive interviewwiththemanat

the helm recently revealed some key strategies that are

heralding a fresh approach to Michelin’s South African

operation.AndreBonnetexplains…..

AnDre BonneT

onMichelin’sBig Plans

fortheSAMarket

4 • O n e - o n - O n e

We believe that Michelin SA has adopted a fresh approach to the way it

conducts business in this market. Would you care to elaborate on this?

InkeepingwiththeMichelinGroup’sglobalphilosophy,MichelinSAisset

toadoptaSouthAfricanapproachtoitsdomesticbusinessviaagrowing

numberofhome-grownpersonnelwhichhavebeenidentifiedandsuitably

groomedtoassumeresponsibilityforkeyfunctionswithinthecompany.

Simplyput,MichelinTyreCoSAwantstobeviewedasalocalcompany,

not a European one. Up until last year, senior positions were mostly

occupiedbyexpatriatesbutthisisrapidlychangingwiththeappointment

ofcarefullyselectedindividualsfromthelocalmarketthatareactively

beingpreparedtotakeupsomeofthesekeypositions.

Is this with the aim of them eventually taking over the reins of the

company?

That is correct. We realise that this is a long term process, but our

aspiration is to nurture talented individuals to the level where they are

suitablyequippedtorunthecompany.TogetherwiththeHumanResources

Department,thesecandidatesarecurrentlybeingdevelopedtonotonlyfill

specificopenings,butalsowithaviewtosustainablecareerpaths.

A somewhat unique but refreshing strategy for a global tyre

manufacturer to take?

MichelinTyreCompanyhasambitiousgoalsforthefuture–allofwhich

arepubliclyknown–andinordertoachievetheseobjectives,wewill

befocusingheavilyonemergingmarketssuchasSouthAfrica.Michelin

TyresSAishere,notonlytostay,buttogrow.

What would you estimate your current market share in SA to be?

Tobequitefrank,itdoesn’tinterestme.Ourfocusisnotonnumbers

butratheronpreservingthequalityoftheproduct.Forthisreason,we

haveappointedtwoseniorfieldengineerswhoseprimaryfunctionisto

upholdandprotecttheMichelinnameinthemarketplace.

ThepopularChinesesaying‘whenatigerdies,whatisleftbehindishis

skin,butwhenamandieswhatisleftishisname,sotakecareofyour

name’ instantlyspringstomind.Wewanttotakecareofournamein

themarketplace.

What other initiatives are in place to ensure that you achieve this?

We are constantly asking ourselves: can we deliver the required

levelsof service around thequalityof theproduct? Ifnot,wherecan

we improve? Are our deliveries and invoicing systems up to scratch?

What about availability? Can we deliver the required volumes to our

customersattherequiredtimes?

Wehaveelevatedourserviceoffering frombeing the ‘worstsupplier’

in the eyes of one of our important customers, to being their ‘best

supplier’ in the spaceof twoyears, simplybypayingattention to the

basics and our willingness to operate in a transparent manner. We

arenotperfect, andwemustbe able to admit toourmistakeswhilst

informingthecustomerastohowweplanonrectifyinganylegitimate

concernstheymayhave.

Fromourend,wehavereinforcedoursupplychainteamandinitiated

trainingprogrammesaimedatimprovinginternalcommunication.Also

in our favour, is that we now operate via a Head office that is much

closertousinDubai.

In 2010 the customer in question was compelled to operate on

excessivelyhighstocklevelsduetoourinabilitytosupply.Today,Iam

happytoreportthatheisworkingonalowerinventory.Thesearethe

kinds of partnerships we are looking to develop with our customers.

Businesshastobesustainable,forbothpartiesconcerned.

Are you still actively promoting the BFGoodrich brand?

Although the Michelin brand is our priority, BFGoodrich remains an

integralbrandforusandthiswillbecomeeverclearerduringthelatter

patterof2013whenweintroducenewinitiativesaimeddirectlyatour

BFGoodrichcustomersinthismarket.

Speaking of customers what is your view on the multi-alliance culture

that exists in our market?

Thecultureyouspeakof isnot inkeepingwithourphilosophy. Inmy

opinion, there is toomuchprostitutionevident inourmarket!Weare

looking to tradewith the typeofcustomerwho reflects thequalityof

ourproductandprovidestheservicethatrunsalongsidetheMichelin

brand.Inthissense,weexpectourdealerstomakeastandagainstthe

multi-alliancetrend.

Toassisttheminmakingtherightchoicewearebusywithanumberof

excitinginitiativesthisyear,amongthem,theopeningofourdedicated

Michelin Truck Service Centres explicitly aimed at enhancing our

offeringtothecommercialsector.

Tell us more about these service centres. How many will be launched

this year?

Therearefourshopsinthepipeline–withallsportingnewsignageand

6 • O n e - o n - O n e

Michelinstandardoperatingprocedureswhicharesetglobally-withthe

firstoneinVilliersdorp,scheduledtoopenon14June.

Our value proposal for these selected dealers is to assist them in

boosting profit margins via a strong emphasis on health and safety

issues, a dedicated product range (Kormoran), plus a mobile service

vehicleflauntingtheMichelincorporateidentity.

ThisexcitingnewdevelopmentisaculminationofMichelin’sCommercial

Policy. Unlike the passenger market which depends on regular brand

awareness, product warranties and the like, the commercial segment

requires a great deal more effort and attention. And unlike the 7.4

millionoddmotoristswhoweareunlikelytoevermeet,thecommercial

marketofferstheopportunityforgreaterinteractionwithourend-users,

somethingwewanttocapitaliseon.

DedicatedMichelinserviceteamsandvehiclestorenderassistanceto

AandBtransportfleetshavebeenestablished,theiraimbeingtotravel

aroundthecountry,providingaweekendservicewhenthemajorityof

vehiclesareonsite.

Asidefromprovidingmaintenanceandtechnicalassistance,theirroleis

alsotoeducatethecustomeronhowtoderiveafavourableCPKoutof

ourtyres,byfollowingtheMichelinprinciplesthatincludemaximising

the life of the original tyre, regrooving and retreading with Recamic

tread.

That some fleets are achieving a mileage of one million kilometres is

testamentthatMichelin’scradle-to-gravephilosophyworks,iffollowed

correctly.Thatisourvalueproposition.

Are you planning to launch any new products this year?

In Januaryof this yearwe introduced thenewXWorks tyre,designed

specifically for tough road conditions such as construction sites. The

newtyre,whichhasbeendevelopedexpressly foremergingmarkets,

comes with a six-month Accidental Damage Guarantee, such is our

confidenceintheXWorks.

AttheendofAprilwelaunchedtheMichelinPrimacy3tyre,Safetyto

thePowerof3whichdeliversexcellenceinwetanddrybrakingaswell

asexcellence incornering in thewet.TheMichelinPrimacy3comes

withBibAssistwhichcomprisesRoadsideAssistance,(assistanceinthe

event of a flat tyre, mechanical breakdown etc.), Michelin Concierge

Service (your veryownpersonal assistant that can assistwith finding

any product or service at a location convenient to the member), and

DriveMe,whichisapersonaliseddriverserviceforpeoplewishingtogo

outandenjoyafewdrinksandreturnhomesafely.Avehiclewithtwo

driverswillbesenttothelocationrequestedwhereonedriverwilldrive

homethecaroftheBibAssistmember.

Andlaterthisyearwearelaunchingthenew750R16HD(heavyduty)

tyre that again, has been expressly designed for our unique road

conditions, toservice the light truckanddeliveryvansegmentof the

market.

Rumour has it that Michelin will also be moving premises this year?

That iscorrect. InDecember2013,wewillbemoving toClearWater

Office Park, Atlas Road, in Boksburg. We have outgrown our present

premises and as our lease expires in February 2014, this will be the

perfecttimetoengineeramoveofthiskind.

Addedtothis,ourwarehouseinAlrodeisalsobecomingcrampedand

wearelookingtoexpandonthatlevelaswell.Ifallgoeswell,wehope

tobuildourownwarehousepremisesdesignedaccordingtoMichelin

globalspecifications.

How do you see Michelin SA fitting into the global picture for the

Michelin Group?

Between theyears2010-2015, theMichelinGrouphascommitted to

a capital expenditure spend of 2billion Euros a year, monies that will

be used to increase capacity by way of a new passenger and light

truckplantinBrazil,followedbytheestablishmentofthebiggesttruck

plantMichelinhaseverbuiltinChennai,India.Expansionisalsobeing

planned for the Lexington plant in the USA to boost earthmover tyre

production.Intotal,bytheyear2015,Michelinhopestoinvestinthe

regionof1.8and2.2billionEurosincapitalexpenditure.

Sufficeit tosaytheMichelinGroup,whichincludestheSouthAfrican

facility,isfinanciallystrongandreadyforthefuture.

M i c h e l i n A d v e r t o r i a l • 7

Michelin’s X Works, the all-

terrain truck tyre that is

robustonsiteandlonglasting

on road, now offers you an

exclusive guarantee against

accidentaldamage*.

*For each Michelin X Works purchased from

January1toDecember31,2013,Michelin is

offeringyouanAccidentalDamageGuarantee*

covering the first six months’ use, from date

ofpurchase

With the Accidental Damage Guarantee*,

Michelin reimburses you with a new tyre if it

isaccidentallydamaged in thefirstsixmonths

of use. So you can enjoy the durability and

safetyofyournewMichelinXWorkstyreswith

completepeaceofmind.

Thisnewrangeoftyreisavailableintwopatterns,

XZYforallpositionsandXDYforthedriveaxles,

andcomeinsizes315/80R22.5and12R22.5

(12R22.5availableinAugust2013).

The Michelin X Works embodies the Michelin

Total Performance developed by the Michelin

Group, which consists of simultaneously

improvingallareasofperformance, regardless

ofthetypeoftyreorrange.Fortrucktyres,the

benefits fall into three categories: enhanced

safety,greatercost-effectivenessandincreased

environmentalprotection.

safer

Designed for use on roads as well as in and

aroundworksites, the tyredeliversheightened

All-Terrain Michelin X Works nowwithDamageGuarantee

resistancetocutsandscrapesandsuperiorload

carryingcapacitywhileat thesametimebeing

cost-effective on the road. To meet the need

fortyresthataresafeandreliable,theMichelin

X works range features a tread design that

reduces the risk of stones lodging in grooves

andensuresthatwater,andmud,iseffectively

evacuatedwhendrivingonwet/muddyroads.

More cost-effective

Becauseofitsrobustness,theMichelinXWorks

provides enhanced resistance to cuts and

scrapes. Its architecture has been optimised

for challenging conditions of use, while the

sidewalls have extra protection to reduce the

riskoflateraldamage.

TheMichelinXWorksisalsodesignedtobelong

lasting.Itsoptimisedcontactpatchdistributeswear

moreevenly,whichmeansgreatertotalmileage.

An Improved environmental Footprint

LikeallnewMichelintrucktyres,theXWorkscan

beretreaded.Improveddurabilitymeanstherate

ofretreadabilityisgreatlyincreased.TheMichelin

XWorkscasingisdesignedtobeusedmorethan

once. Michelin recommends that when the tyre

has a remaining tread of +-3mm you send the

casingintoberetreadedwithRecamic.

Accidental Damage Guarantee

When tyres are used both on and off road, the

riskofaccidentaldamageincreasesconsiderably.

Tyresusedonworksitesandquarries,aswellason

roads,aresubjecttothemostextremeconditions.

Tyre incidents can have major economic

repercussions forcustomers.TheMichelinX

Works and its accidental damage guarantee

will thus address an issue that is very

importantforcustomers.

ThenewMichelinXWorkstrucktyrecomesintwo

sizesandisavailableatallleadingcommercialtyre

outletsthroughoutSouthAfrica.Tofindoutmore,

visitwww.michelin-xworks.co.za.

*termsandconditionsoftheAccidentalDamage

Guaranteeatwww.michelin-xworks.co.za

Excellent mileage and retreadability•Delivers competitive cpk•Tread design for your application•DOT and E-Mark approved•Approved by DTI SA• Official SA Distributor of Hanksugi Tires

www.tirepoint.co.zaHead Office: 011 975 9525 | [email protected]

Tirepoint A4 Ad - SA Treads.indd 1 2013/02/26 21:38:21

F o c u s o n T y r e I m p o r t s • 9

So, not all imports entering our market potentially pose a risk to the

consumer.Thelocalfourmanufacturers–Bridgestone,Goodyear,Apollo

and Continental – are all compelled to import tyres on a frequent basis

to supplement their product range. Plus, SA’s status as a global player

demands that the SA consumer has access to the world’s leading tyre

brandsfromEurope,USA,andtheFarEast.

Withthatsaid,theriseof ‘dubious’operatorswhoaredumpinglowcost

tyres in the market, whilst also attempting to evade paying the required

import duties, is posing a significant threat to the local manufacturing

industryaswellastothereputableimporters,nottomentiontheenduser.

Foroveradecade,localtyrecompanieshavebeencampaigningforplaying

fieldstobelevelled,somethingwhichtheyclaimcanonlybeachievedby

clampingdownonquestionablelowcostproductsandtheillicitpractices

that accompany them. This they have done by eliciting assistance from

relevant government bodies such as the DTI (Department of Trade and

Industry), the NRCS (National Regulator for Compulsory Specifications)

andITAC(InternationalTradeAdministrationCommissionforSouthAfrica).

Andaccordingtotheimportsegmentofthemarket,theireffortshavenot

been in vain. Local representatives of some of the world’s leading tyre

makersareallegingthatalthoughpricemayhaveonceplayedasignificant

roleinsecuringapresenceforforeigntyresinthismarket,thisisnolonger

case.Theyfurthersuggestthatthetableshaveturnedwithrespecttothe

marketdynamic, somuchso, that imported tyresarenow receiving the

‘shortendofthestick’,sotospeak.

“IneverthoughtI’dseethedaywhenimportedpassengertyreswouldsell

formorethansomelocallyproducedmakes,butthisispreciselywhatis

takingplace,”saidCharldeVilliers,MDofTyrecor.Icontinuouslycirculate

amongstdealerscomparingpricingfromlocalandimportedbrandsforthe

varioussegments,andthisnewdevelopmentisalarming.”Hisconcernsare

beingechoedbyoppositioncompaniessuchasTubestoneandCFPTyres.

“It isbecoming increasinglymoredifficult forus tocompeteagainst the

localmakes,”theyconfirmed.

ButJulioFava,ExecutiveManagerExport,OEandAgriforBridgestoneSA

disagreed:“Localproductsremainmoreexpensivethanimports,it’sonly

thedifferentialthathasreduced.”

“We are extremely surprised to hear of these rumours,” echoed Riaz

Haffejee,CEO,ApolloTyresSA,“sincethisiscontrarytoourexperience.”

The price issue aside, importers are faced with their own unique set of

tradingchallenges.Currently in thespotlight is thesuddenwithdrawalof

theagricultural rebateapplicable to tyresentering thecountryunder the

TariffHeading4011.61Thisrebatewasapparentlysetinplacesomeyears

agotoassisttheagriculturalsectorthatiscompelledtoimportherringbone

IMPORTS–HAVETHETABLESTURNED?Close on 50% of the current tyre consumption

in South Africa is made up of imported makes,

a staggering statistic that is deeply indicative

of the rising popularity of foreign made tyres

over the last few years. Price is the primary

reason for the rise in import figures, with

low cost producers from emerging countries

continuing to target our market with products

that are often of questionable quality;

availability is another, especially as it is not

economically viable for local tyre plants to

comprehensively cater to the diverse needs of

the market by way of application and tyre size.

F o c u s o n T y r e I m p o r t s • 1 1

treadtyressincemanysizesinthiscategoryarenot

being locally produced, and the local companies

cannoteffectivelymeetgrowingdemand.

As of May of this year, the rebate in question was

scrapped,allegedlywithnowarning,underinstruction

by SARS, the administrator. What pre-empted this

developmenthasbeenthesourceofmajorcontention

and finger-pointing with no one party seemingly

willingtotakeresponsibility.

OurinvestigationsintothematterfirstledustoNRCS,

the alleged instigator of the withdrawal process by

wayofaspecialapplicationmadetoITAC,whichDries

vanTonder,SubjectSpecialistforNRCScategorically

denied. He had this to say, by way of explanation:

“NRCS is merely the National Regulator, there to

ensurethatanypassengerorcommercial tyreenteringourborders isof

anacceptablequalityaslaidoutbytheStandardsinplace.Asherringbone

tyres(traditionallyusedontractorsandotherslowmovingvehicles),donot

poseadangertotheconsumer,theyarenotboundbythehomologation

process,andthereforedonotrequireinspection.

“Therefore, inspecting containers of herringbone tyres at port sites for

the purpose of financial rebates, was not only depleting our manpower

resources,itwascreatingsuchabacklogthatwewereunabletoeffectively

meetourresponsibilitytowardsthepassengerandcommercialtyresector.

NRCS indicated thatwedonotwish tobe involvedwith the inspection

ofherringboneandsportingtyresaswellas thesubsequent issuingofa

rebate certificate. Never did we indicate or question the reason for the

rebateorthecancellationoftherebate.”

UponinstructionfromSARSthattherebatehadfallenaway,wesentoutthe

relevantcorrespondence,informingtheindustrythatwewouldnolonger

beperforminginspectionsforthesakeofrebates.”

The mystery deepens further with the subsequent unearthing of a

documentdated30January2013thatwassubmittedtoITACthatclearly

statesthatthereviewfollowsanoticebytheNRCSthatitwouldnolonger

issuecertificatesforthepurposeoftherelevantrebateprovisions.*

As for NRCS’s reference to SARS, Adrian Lackay, Media spokesperson

for SARS had this to say: “Rebates and ordinary customs duties are

governed by trade policy that falls within the ambit of the International

Trade Administration Act, 2002, administered by

ITAC. Whilst SARS administers the goods imported

intermsoftheSchedulestotheCustomsandExcise

Act,1964,thelevelsofrebatesorordinarycustoms

dutiesandanyotherconditions thatmayalsoapply

aredeterminedbyITACintermsoftradepolicy.

“Therebateitemforherringbonetreadtyresaswellas

therebateitemforracingcartyresrequiredapproval

from NRCS, so by law, NRCS was the responsible

entity to approve the tyres imported under the

respectiverebateitems.

He added: “The deletion of rebate item

460.07/4011.61forherringbonetreadtyresandthe

amendmentofrebateitem460.07/4011.10forracing

cartyreswerepublishedintheGovernmentGazette

of15March2013togiveeffect to therequestby theMinisterofTrade

andIndustrytoimplementtherecommendationsmadebytheInternational

TradeAdministrationCommissioninReportNo.423.ITACalsogavenotice

ofitsintentionstoreviewthesaidrebateitemsthroughNoticeNo.570of

2012,publishedintheGovernmentGazetteof20July2012.”

ButdespitethepublishingofthisNotice,itappearstheimportsectorwas

unawareofITAC’sintentiontocancelthisagriculturalrebate,claimingthat

unlike the SATMC, which was approached for comment, they were not

affordedthesameopportunity.

Dr.EtienneHumanof theSATMCconfirmedthat theSATMChad in fact

beenapproachedforcomment,butthecontroversydeepensfurtherwith

BridgestoneSAandApolloTyresapparentlytheonlylocalmanufacturers

in theknow.Whenapproached forcomment,Bridgestoneadmitted that

❝

It is becoming

increasingly more

difficult for us to

compete against the

local makes

❞

O n e - o n - O n e • 1 31 2 • F o c u s o n T y r e I m p o r t s

theywerepartof thediscussionsasamemberof theSATMC,andwere

thereforeawareoftheoutcomeofITACapprovingtheapplicationbyNRCS,

whereasGoodyearclaimedtheyknewnothingaboutit.

“We were neither consulted, informed nor pre-warned about the

cancellation of the rebate on imported herringbone design agricultural

tyres smaller than36” rimdiameter,” saidDustineGascoyne,Goodyear

MarketingDirector.

racing fraternity takes control

Whilst the debate around who was or should have been consulted prior

tothisdecisionbeingtakenrageson,theracingfraternityappearstohave

achievedtheimpossible,andisseeminglytheonlymarketsegmenttostill

enjoyrebatesunderthiscontroversialTarriffHeading.

In an attempt to rescue the situation, they formed their own Inspection

Committeetotakeoverthisfunction,andasaconsequence,andwithno

assistance required by NRCS, the rebate on racing tyres imported into

SouthAfricaremainsinplace.

Preciselyhowtheywereable toachievethis,andreasonsas towhythe

agriculturalsectorwasdeniedthesamecourtesy,isalsoopentodebate.

RobinHoughton,ATS,explained:“Bearinmindthatthevolumesofracing

tyres imported into the country, along with the number of importers,

areverysmall,andassuch,administeringthesetyres isarelativelyeasy

procedure.Ibelievethisiswhytheracingsectorhasbeengrantedleaveto

self-governinthismatter,that,plusthefactthattheprocessiscontrolled

byMotorSportSouthAfrica(MSA),whichisaninternationallyrecognised

bodyresponsibleforcontrollingthesportingeventsinthecountrywhere

tyresimportedspecificallyformotorsportpurposeswouldbeused.”

But once importers of agricultural tyres became aware of a potential

problem around inspections and suggested establishing a similar self-

regulated, self-funded Technical Committee for the same purpose, their

suggestionwasallegedlyshotdown.

Said de Villiers: “We offered to contribute towards the cost of future

inspections so that manpower resources can be increased, but our

suggestion was shot down for fear that it would lead to traders abusing

thesystem.”

Notwithstanding,industryplayersclaimthisisalreadythecase.Theyallege

thatthenumbersofimportedracingtyrescurrentlyonrecordaresovast,

thatdubiousoperatorshaveobviouslyfoundawaytoevadepayingduties

byclassifyingpassengertyresunderracingtyres.

SaidHaffejee:“Under invoicingbyunscrupulous importersatvalueswell

below raw material prices is the major hurdle in competing on a level

playingfield.”

Added Kruger: “Dubious tyre importers will always be there and due to

theimportdutiesinplace,theywillcontinueseekingnewwaysandmeans

toevadepayment.Ibelievethatifdutiesweretobeabolished,thiswould

automatically level the playing fields, and that these dubious operators

wouldautomaticallydisappear.”

“The availability of ‘unknown’ brands is increasing and this is driven by

two factors,” suggested Bridgestone’s Fava, “one being the pricing of

these products and secondly, the willingness of the consumer to buy a

cheapproductat leastonce.Theeffectonourbusiness isadiminishing

market with great pressure on the production cost and the feasibility of

local production. The current economic climate also contributes to the

consumer looking forcheaperproductand thisproductmaynotbe the

bestvalueformoneyproduct,butsimplycheap.”

Are importers being unfairly targeted?

So,whatofthisperceptionthattyreimportersarebeingunfairlytargeted?

Said de Villiers: “As importers we are experiencing increasing pressure

from government in the form of poorly executed campaigns to rid the

industryof ‘dubiousimporters’whounder-declarevaluesandusewrong

tariffheadingswithrebateswhenimportingtyres. InSeptemberlastyear

SARSbeganstoppingcontainerswithoutgivingusdetailedreasonsforthe

O n e - o n - O n e • 1 3

stops,incurringhugelossesforus.Wetriedtoengage

withSARSonthematterbutwereunsuccessful.”

AddedAlidaMoutonofCFPTyres:“Webelieve that

pressurefromthelocalmanufacturerswasthereason

behind these stops by Customs which not only

delayed arrival times but incurred additional costs

resultinginlossofsalesandhigherprices.”

PieterKrugerofTubestoneconcurred:“Thenewtyre

companiestriedtoslowdownimportsbypresenting

SARS with a document stating that imported tyres

werebeingunder-declared,butSARSnevertookinto

consideration aspects such as weight, compound,

treaddepthetc.Wewerehammeredwithstorageand

demurragebills.Thesituationwastotallyridiculous.”

Butlocalmanufacturersarguedthattheytooexperiencetheirfairshareof

frustrationswhenitcomestoimportingtyrestheyrequiretosupplement

theirrange.

SaidGascoyne: “Port efficiencywith respect to container unloading is a

problem, especially in thePort ofDurban,which is very congested.We

havealsoexperiencedsimilarproblemswiththePortofPortElizabeth.”

Apollo’s Haffejee, agreed: “Clearance times are unacceptably long and

oftenexacerbatedbylabourunrestandpoorweatherconditions.”

Andasforallegationsthatlocalproducerscouldwellbeloweringtheirprices

inordertodisposeofexcessstocktoaugmentpoorexportperformanceto

Europe,thistoo,ispurespeculation,accordingtothelocalfour.

Where to from here?

Amidst turbulent market conditions, the local

tyre producers are struggling to compete in a

price-conscious market. For them, the scrapping

of the agricultural rebate on sizes that are locally

produced will bring some relief, but like their

import counterparts, they will be equally affected

bytheir inability toclaimforarebateonsizesnot

producedlocally.Atthispointintime,onlybiasply

herringbone tyres up to a certain size are locally

madewhilstRadialTractor,RadialRowCrop,Radial

Implement, Floatation (Bias as well as Radial),

Forestry(BiasaswellasRadial)arefullyimported.

For the import sector, the trading platform is

particularly challenging they say, given the Rand/

Dollarexchangerate,andnowthecessationofthe

agriculturalrebateonwhichsomanyhadcometorely.

At least where the agricultural rebate is concerned and according to

Johan Pienaar of Agri SA, all is not lost. “Scrapping the agricultural

rebatewillplacethesectorunder immensepressureandwillseverely

hamperourabilitytoremaincompetitive,especiallyunderthecurrent

pressuresofwagenegotiations.Weare innegotiationswith ITACand

believe there is a chance for the agricultural rebate to be re-instated

shouldwebeabletodemonstratetheabilitytoregulateandpolicethis

matterourselves.”

“Thefarmingcommunityisdependentonalltheassistanceitcanget,

andcostsrelatedtothescrappingoftherebatearealreadybeingpassed

ontotheenduseronthepartofthetyreimporterswithpotentiallydire

consequences,”hesaid.

Theagriculturalsector,alongwithreputableimporters,whohavebeen

compelledtouptheirprices,remainhopefulthatalong-termsolution

canandwillbereached,failingwhichthereappearstobelittle,ifany,

recoursefortheimportsegmentoftheindustry.

*Despite multiple attempts to elicit comment from ITAC, we were

unsuccessful.

Disclaimer:The views and opinions expressed in this article are not necessarily those of the Publisher, Editor or any staff member of SA TREADS magazine. Sky Publications can accept no responsibility for the veracity of claims made by contributors or participants to this story.

1 4 • F o c u s o n T y r e I m p o r t s

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often exacerbated by

labour unrest and poor

weather conditions

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M a n u f a c t u r i n g • 1 7

CooperTyresSouthAfricaannouncestheintroductionofamultiterrain

tyrefortheSouthernAfricanmarket,suitableforfitmenttoSUV’swith

19”–theCooperZeonLTZ.

“WehavehadalargenumberofSUVand4x4vehicleownersrequesting

a 19” all terrain tyre for SUV vehicles that is rugged enough to cope

with the challenging Southern African conditions” says Jenny Soons,

MarketingDirectorofCooperTyresSouthAfrica.Jennycontinued,“the

CooperZeonLTZhasbeenproveninbothAmericaandAustralia,and

we put the tyres to the test by fitting the 19” Zeon LTZ to Kingsley

Holgate’sLandroverDiscovery4.”

Kingsley Holgate renowned South African explorer, humanitarian and

author fitted the 19” LTZ tyres to his Landrover Discovery 4 for the

90 day, 3 country expedition to track, research and document the

LubomboMountainRangenorthernKrugerNationalParktotheGhost

Mountain in Mkuze, Northern KwaZulu Natal. “The expedition is all

aboutrhinoprotection,”saysKingsley,“wehave tostop thekillingof

ourrhinos–weallhavetodoourbit.”

Kingsleyhadthistosayaboutthetyres,“WeputtheCooperLTZtyres

throughtheirpacesfromsand,mud,gravelandtarandtheyaremore

thanadequateforthisenvironment.Theyare,byfar,thebesttyreswe

havehadfittedtotheDisco4todate.”

TheLTZ is ahybrid4x4/SUV tyrewith a50%on roadand50%off

roadcapability. Ithasamodernpatterndesignwithacombinationof

lateral grooves and functionally patterned tread elements to provide

dependable multi terrain performance. The optimized pitch sequence

helpsprovideeventreadwearandlowtreadrelatednoise.Thescalloped

shoulderlugsprovidetractionoffroadparticularlyinsoftsurfaceslike

mudandsand.

Manufactured in America the Cooper LTZ follows the Cooper Tire

Company’s aftermarket tyre building strategy of developing strong,

highmileage4x4andSUVtyres.CooperTiresisaworldleaderinthe

researchanddevelopmentofmoderntyretechnology.Today,Cooper

istheninthlargesttyremanufacturerintheworld.

Cooper tyres are available at over 100 dealers in Southern Africa.

For further information visit www.coopertyres.co.za or email

[email protected].

NEWCOOPERMULTITERRAINTYREAVAILABLEINSOUTHERNAFRICA

1 8 • M a n u f a c t u r i n g

Innovation is the name of the game for iconic tyre maker Michelin,

whoselatesttyrepromisesmotorists“Safetytothepowerof3.”Michelin

Primacy3tyresarenowavailableatTigerWheel&Tyrestoresnationwide

and when you buy two or more tyres you’ll get a 3 year membership

to BibAssist free of charge, a programme as remarkable as the tyres

themselves.

Based on independent tests, Michelin Primacy 3’s three key safety

characteristicsare:excellenceindrybraking;excellenceinwetbraking;

andexcellenceincorneringinthewet.

The tyre owes its superior braking and cornering performance to new

auto-blockingsipes–theslitsinthetreadblocks–thatkeepsthetread-

surface in contactwith the roadanda special tread rubber compound

and tread pattern that optimise grip and reduce braking distance in all

conditions.

Theseprovenabilitiesarereasonenoughtomakemotoristsheadstraight

for their nearest Tiger Wheel & Tyre, but throw in a free, three-year

membershiptoBibAssistandthedesiretoownMichelinPrimacy3tyres

isquiteirresistible.

BibAssist is the name for three exclusive, additional services that are

free tomotoristswhobuy twoormoreMichelinPrimacy3 tyres from

TigerWheel&Tyre.These includeRoadsideAssistance;DriveMe;and

MichelinConciergeDesk.

RoadsideAssistanceoffersemergencyroadsideassistanceformechanical

and electrical breakdowns; flat tyres; flat batteries; keys locked in the

vehicle;10litresoffuelwhenyourunout,twiceayear;towingtoarepair

shop for breakdowns, and

otherfantasticbenefitslike

onenight’saccommodation

orarentalvehicleforaday,

whenyoubreakdownmorethan100kmfromyourdestination.

DriveMegivesmemberstheoptiontodrinkandnotdrive.CallBibAssist

at leastonehour inadvanceandavehiclewithtwodriverswillbesent

tomeet anddriveyouandup to threepassengershome, inyourown

vehicle.Theserviceallowsforsixfreebookingsperyearandisavailable

within a 50km radius of city centres in Johannesburg, Pretoria, Cape

Town,Durban,EastLondon,PortElizabethandGeorgewithnewareas

beingaddedeveryday

MichelinConciergeDeskislikehavingafreepersonalassistant.Needa

restaurant booking, concert tickets, accommodation, pool repairs, pet-

sittingormore?CallBibAssist,speaktoaconciergeandthey’llgetback

toyoupromptlywiththeinformationanduptothreequotes.

Best of all is the ease with which your membership to BibAssist is

activated.Simplybuy twoormoreMichelinPrimacy3 tyres fromTiger

Wheel&Tyreandthestorewillautomaticallyregisteryourmembership.

FormoreinformationontheinnovativenewMichelinPrimacy3tyresand

completedetails aswell as the terms andconditionsofBibAssist, visit

yournearestTigerWheel&Tyrestoreorgotothewebsitewww.twt.to.

Alternatively,turntoourCompetitionpage(page40),answertheeasy

question and enter online or via fax to stand a chance to win a set of

MichelinPrimacy3tyres!

WIn A seT oF MIchelIn PrIMAcy 3 Tyres!

Dunlop will be awarding one lucky customer a luxury Jaguar XF at the

TopGearFestival inDurban (15–16 June2013)–SouthAfrica’smost

explosivemotoringfestival.

DunloptyresarespecifiedandfittedbyJaguarasOriginalEquipmenton

selectedvehiclemodels.Asaresultofthis long-standingprofessional

relationship,DunlopandtheirDunlopZonepartnerscollaboratedwith

Jaguartogivecustomerstheopportunitytowinaspectacularprize.

Customers purchasing Dunlop tyres through participating Dunlop Zone

storesuntilthe28thofApril2013willstandthechanceofbeingselected

asoneofthefivefinalistswhowillenjoyanall-expenses-paidtriptotheTop

GearFestival.Onewinnerwillbedrawn,live,attheDunlopstandduringthe

courseofthefestivalandwillgettodriveoffintheirveryownluxuryJaguar

XFworthoverR500000!

TheTopGearFestivalwillbeheldattheMosesMabhidaStadium,Durban,

following popular demand with an incredible line-up of cars and driving

talent.

The festival promises an action-packed show presented by Clarkson,

May and Hammond and featuring the iconic Stig as well as local

personalities,internationalstuntdriversandawholehostofTopGear’s

trademark special effects. The Street Circuit will also be back - only

thistimeit’sbiggerandbetter!Visitorswillbeabletoseestunts,races,

motoring challenges and some of the world’s greatest cars on the

streetsofDurban.

Inamongst theTopGear festivities,Dunlopwillbe in the thickof itwith

giveawaysandactivities,nottomentionthelivedrawfortheJaguarXF.

www.dunlopzone.com

DuNloP AWARDING A JAGuAR XF AT ToP GEAR!

Total Tyre Management is the new system designed to make your

fleet operate at peak efficiency at all times. From calculating cost per

kilometre to alerting you when a vehicle’s tyres need a re-cap or

a re-fit. With a host of other features including financial options for

the leasing of your fleet’s tyre requirements, and 24-hour roadside

assistance. Total Tyre Management, exclusively from Max T Solutions.

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2 2 • O n e - o n - O n e2 2 • O n e - o n - O n e

2 2 • O n e - o n - O n e M a n u f a c t u r i n g • 2 3

ArecentinternationalProcessandProductQuality(PPQ)auditattheUitenhage

tyremanufacturingfacilityhasearnedthelocalcompanyitsbesteverscores,

thanksinparttoGoodyear’ssteadyinvestmentsinitsAfricanoperations.

Dustine Gascoyne, Group Marketing Director, said Goodyear’s PPQ audits

wereconductedannuallybyfiveinternationalauditors,eachanexpert inan

aspectoftyremanufacture.

“ThePPQauditmeasuresProductandProcessQuality.Throughastringent

checklistof internationalcriteria, theseauditorsevaluatetheextenttowhich

ourprocesscontroldeliversconsistent,repeatablequality.Clearly,thehigher

thescore,thebetterourcontroloverprocessandquality,whichinturnmeans

lessbadproductandfewerreturns.Ultimately,ourcustomersareassuredof

theconsistent,excellentqualityofGoodyear’sproducts.”

Gascoynesaid the long-term requirementsofGoodyear’smarkethadbeen

analysedandmanufacturingfacilitiesdevelopedtoalignwithcustomers’ever-

changingneeds.

“Goodyear’scontinued investment in itsmanufacturing facility inUitenhage,

andconsequentfurtherincreaseofits4x4andUHP(ultrahighperformance)

capacity,ensuresthatourproductsretainthequalitythatisepitomisedbythe

Goodyearbrand.

“Thereismoredemandfor4x4tyresforSUVs,forexample.Wearealigning

our quality and product performance with trends in the market and with

internationalcompetition.We’realsostayingastepaheadofourcustomersto

ensurewewillalwaysbeabletodeliverexactlywhattheyneed.

“Aside from the installation of two new tyre building machines and four

newpresses,finalfinishareaswerealsoupgradedand the impactof these

investments were clearly reflected in best-ever, international standard PPQ

auditscores.”

TheoBezuidenhout,GoodyearTechnicalTeamLeaderforSystemsandAudits,

explainedthatPPQauditsareusuallyplannedbutthelatesthadcomeoutof

theblue.

“In2012,wecelebratedwhentheUitenhageplantachieveditshighestever

PPQscore.Thisyear,PPQauditorsdroppedinunannounced.Still,theaudit

scoremanagedtotoptheearlierhigh.GoodyearSouthAfricacontinuestogo

fromstrengthtostrength.”

GooDyeAr PlAnT Ach I eves HIGHESTAUDITEDQUALITYSCORESEVER

Further information:Messe Essen GmbH · Phone: +49 201 72 44-727 · Fax: +49 201 72 44-435

E-Mail: [email protected] · www.reifen-china.com

China United Rubber Corporation Phone: +86 10 5865 0277 · Fax: +86 10 5865 0288

E-Mail: [email protected] · www.reifenchina.com

Nov.13-15, 2013

SHANGHAI · CHINA

3493AnzSATreads210x140.indd 1 16.04.13 15:10

O n e - o n - O n e • 2 5

C o n t i C o r n e r • P BP B • C o n t i C o r n e r

Last year’s General Tyre 4x4 African Adventure with the Grabber AT was a great

success, and we decided to step it up this year with an even more challenging route to prove the performance of the all-new Grabber MT,” explains Gishma Johnson, Corporate Communications manager for Continental Tyre South Africa.

Four vehicles were fitted with the new Grabber MT and the remaining six used the Grabber AT. Both tyres excelled, covering a cumulative distance of over 71 000 km without a single puncture, any damage and very little wear.

The 2013 General Tyre 4x4 African Adventure, which was put together by Continental Tyre South Africa and Adventure Junkies Eastern Cape, set off from the Continental plant in Port Elizabeth and entered Botswana through the Grobler’s Bridge border post. The first off-road foray was the route north along the cut line that forms the border between Botswana and Zimbabwe, and featured both soft sand and sticky mud.

General Grabber MT conquers Africa!

The convoy crossed the mighty Zambezi River by pontoon at the Kazangula Border Post into Zambia then visited the spectacular Victoria Falls in Livingstone, before departing on and exclusive and rocky 4x4 route through the Maamba Coal Mine.

It also signalled the arrival at the 2013 African Adventure’s main community project – a small rural school within the Maamba mine area that caters for over 215 children. The school received a large donation from General Tyre, comprising desperately needed stationery, Stop Hunger Now food parcels, shirts, caps and soccer balls.

The following two days were spent soaking

up the beauty of Lake Kariba, after which the group returned to its community project from last year at the Malambu Middle School near Monze, which continues to be supported by General Tyre. It was encouraging to see the funds donated had been used to build a brand-new classroom block that will include a computer centre, a science laboratory and a library.

After another challenging 4x4 mountain route, the group crossed over into Malawi via the Mwami border post and two fabulous days were spent at Senga Bay on Lake Malawi.

Then it was on to Cape Maclear, the trip’s southern-most stop on Lake Malawi, before heading to the town of Zomba with its breathtaking views of the Zomba Plateau.

On day 15 the convoy crossed into Mozambique at the Mwanza border. Zambia’s less-than-perfect roads and Malawi’s endless stream of bicycle taxis and commuters were nothing in comparison to Mozambique’s treacherous potholes.

Next up was Zimbabwe, which sadly proved rather tourist unfriendly, so the convoy pushed through the night and

18 days, six countries, 7 300 km and 10 vehicles – the 2013 General Tyre 4x4 African Adventure launched the new Grabber MT in some of Southern Africa’s most spectacular and challenging conditions

‘‘


The General Grabber MT was officially launched to the public at the 2013 Toyota Rust

de Winter 4x4 Jamboree in Limpopo. It certainly proved the class of the field on a very challenging 4x4 mountain trail and technical obstacle course.

The 34th annual Rust de Winter Jamboree was once again organised and hosted by the 4x4 ATV Club. Continental has been a proud associate sponsor for 16 years.

“The Toyota Rust de Winter 4x4 Jamboree is the premier event on the off-road calendar, with a proud legacy and great support from the off-road fraternity,” says Gishma Johnson.

It was the perfect setting to officially launch the new General Grabber MT, which sets new benchmarks for performance and durability in the heavy-duty mud-terrain tyre sector.

In conjunction with Adventure Junkies, Continental entered four Grabber MT-

equipped vehicles in the competition, comprising two standard Toyota Hiluxes, as well as two modified V8 bakkies.

The competition comprised an arduous six-hour, 55 km mountain route dominated by treacherous rocky ascents and descents, along with a full complement of 10 tough driving tests in the gymkhana section.

“Although our sponsored vehicles didn’t compete for points, they certainly grabbed the attention of the enthusiast off-roaders and spectators as the Grabber MTs clawed their way through the trail and the obstacles with ease,” Johnson says.

“We certainly raised a lot of eyebrows when all of the General Tyre vehicles made it out of the treacherous mud pit first-time round.”

It was a very successful event, and a superb way of showcasing the remarkable performance of the all-new Grabber MT to the hard-core and enthusiast 4x4 market.

managed to cross over the Beit Bridge border post early the next morning.

The General Tyre 4x4 African finally arrived back at Continental Tyre SA in Port Elizabeth 18 days after departing on this epic adventure, having covered a total of 7 314 km.

The new Grabber MT proved that, despite its heavily biased off-road design, it is equally adept at everyday use, without the drawbacks typically associated with hard-core mud-terrain tyres.

“After more than 7 000 km of Africa’s best and worst driving conditions, we have proven that the MT is a truly brilliant tyre,” Johnson says. “Besides its exceptional performance off-road, what really sets it apart from its competitors is the superb road holding in the dry and wet, its remarkable braking performance, and the fact that it’s very quiet and comfortable at high speed.”

Grabber MT launched at Rust de Winter!

2 4 • C o n t i C o r n e r

O n e - o n - O n e • 2 5


The General Grabber MT was officially launched to the public at the 2013 Toyota Rust

de Winter 4x4 Jamboree in Limpopo. It certainly proved the class of the field on a very challenging 4x4 mountain trail and technical obstacle course.

The 34th annual Rust de Winter Jamboree was once again organised and hosted by the 4x4 ATV Club. Continental has been a proud associate sponsor for 16 years.

“The Toyota Rust de Winter 4x4 Jamboree is the premier event on the off-road calendar, with a proud legacy and great support from the off-road fraternity,” says Gishma Johnson.

It was the perfect setting to officially launch the new General Grabber MT, which sets new benchmarks for performance and durability in the heavy-duty mud-terrain tyre sector.

In conjunction with Adventure Junkies, Continental entered four Grabber MT-

equipped vehicles in the competition, comprising two standard Toyota Hiluxes, as well as two modified V8 bakkies.

The competition comprised an arduous six-hour, 55 km mountain route dominated by treacherous rocky ascents and descents, along with a full complement of 10 tough driving tests in the gymkhana section.

“Although our sponsored vehicles didn’t compete for points, they certainly grabbed the attention of the enthusiast off-roaders and spectators as the Grabber MTs clawed their way through the trail and the obstacles with ease,” Johnson says.

“We certainly raised a lot of eyebrows when all of the General Tyre vehicles made it out of the treacherous mud pit first-time round.”

It was a very successful event, and a superb way of showcasing the remarkable performance of the all-new Grabber MT to the hard-core and enthusiast 4x4 market.

managed to cross over the Beit Bridge border post early the next morning.

The General Tyre 4x4 African finally arrived back at Continental Tyre SA in Port Elizabeth 18 days after departing on this epic adventure, having covered a total of 7 314 km.

The new Grabber MT proved that, despite its heavily biased off-road design, it is equally adept at everyday use, without the drawbacks typically associated with hard-core mud-terrain tyres.

“After more than 7 000 km of Africa’s best and worst driving conditions, we have proven that the MT is a truly brilliant tyre,” Johnson says. “Besides its exceptional performance off-road, what really sets it apart from its competitors is the superb road holding in the dry and wet, its remarkable braking performance, and the fact that it’s very quiet and comfortable at high speed.”

Grabber MT launched at Rust de Winter!

M a n u f a c t u r i n g • 2 7

SATreads201306HalfPageVert.FH11 Thu May 16 15:03:23 2013 Page 1 C M Y CM MY CY CMY K

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APollo Tyres AnD suMIToMo ruBBer InDusTrIes

STRIKEDEALINAFRICAApollo Tyres has announced a transaction with Sumitomo Rubber

Industries (SRI), by which SRI takes over Apollo Tyres South Africa

(ATSA) including the Ladysmith passenger car tyre plant. Apollo will

retain theDurbanplantwhichmanufacturesTruck&BusRadial (TBR)

tyresandOffHighwaytyres(OHT)usedintheminingandconstruction

industries.

Speaking on this development, Onkar S Kanwar, Chairman, Apollo

Tyres Ltd said, “This partnership with SRI is a win-win situation for

bothorganisations.SRIgetsamanufacturinglocationonthecontinent

andcontrolovertheDunlopbrandwhichtheyalsouseinmanyother

countriesacrosstheworld.ApolloretainsoneplantinSouthAfricaand

has the ability to develop further the markets for its global brands –

ApolloandVredestein.”

ForaconsiderationofUS$60million,SRIwillacquireATSA,including

theLadysmithplant.Allemployeesofthecompany,otherthanthosein

theDurbanplant,willcontinuewithATSA.ApollowillretaintheDurban

plant and all employees attached to it. It may be noted that the two

entitieshavemadesurethattherearenojobslostinthisentireprocess.

ApolloTyreswillcontinuetoselltheApollo,VredesteinandRegalbrand

tyresinAfricawhilefocusingoncreatingandstrengtheningitsownsales

anddistributionnetworkacrossthecontinent.Bothcompanieswillalso

undertake contract manufacturing of their respective brands at each

other’s facility tohave locallymanufacturedproducts available for the

market.

Commentingfurther,MrKanwarsaid,“Whilewehave2globalbrands

–Apollo andVredestein–whichwe are looking at expanding across

the world, we had the brand rights for selling Dunlop brand only in

32 countries of Africa. We have retained the manufacturing facility

in Durban, as we would like to increase the presence of Apollo and

VredesteinbrandedtyresinAfrica,whichwehavealreadybeenselling

inSouthAfricaforthepastfewyears.”ApolloTyresacquiredDurban,

SouthAfricaheadquarteredDunlopTyres International (later renamed

ApolloTyresSouthAfricaPtyLtd)in2006.

O n e - o n - O n e • 2 92 8 • M a n u f a c t u r i n g

woman with vast experience, Savahl exudes an almost motherly air about

herteamandnurturestheirwellbeingunderthedemandingshiftscheduleto

ensuretheystaymotivated,dynamicandattentiveforcustomers.

“The excellent team spirit here encourages a high level of support and

accountability amongst the agents. Our top achiever, Roxanne Bosman,

handles around 2000 calls per month. This job requires a special sort of

person:tenacious,energisedand,ofcourse,customerfocused.

“Fleets,inparticular,experienceanelementofriskontheroadandthereisbig

moneyatstake,socustomersareunderstandablyfeelingthepressure.Our

jobprovidestheopportunitytoturnapotentiallynegativeexperiencearound,

actuallybuildonbrandloyaltyfortheGoodyeargroupandimprovesales.

“In fact, we like to believe we are an extension of the sales team. Our

agentsbenefit fromcontinuous training anddevelopment.Theyarewell

informedaboutproducts, businessprocesses and systems. Every call is

recordedandrandomlycheckedbymanagementtotrackresponsequality

andendusercustomerexperience.Wealsoreceivevaluablefeedbackon

aquarterlybasisfromanindependentresearchcompanythatsurveysour

customerssowecantracktheirperceptionsandcontinually improveon

ourservicelevels.”

In addition to the Goodyear group centre, a dedicated Export Division call

centre assists the group’s African customers stretching from South African

bordersrightuptotheequator.

“Theirsispredominantlyasalesadministrationfunction,sotheseagentsare

knowledgeableaboutthesystemswithineachcountryandareabletoestablish

positiverelationshipswiththesecustomers.”

Infact,thecallcentrecoverssuchawideareaofthegroup’sserviceoffering

thatitevenprovidesausefulbackgroundfornewemployees,particularlythose

insales.DeVriessaid,“allgraduates-in-trainingspendfourmonthsinthecall

centretohelpthemgetagriponthevastrangeofproductsandprocessesof

Goodyear.”

NEWGOODYEARCALLCENTRECOMMITSTO24/7SERVICEComepowerfailures,electricstormsorstrikes,therewillalwaysbeatrained

representativeonhandattheGoodyeargroup’snewCustomerServiceCentre

tohelpkeepcustomerssafelyontheroad.AccordingtoGoodyearSupply

ChainDirectorEttiennedeVries,that’sa“24/7/365guarantee!”

“Whetherthatcustomerisatruckdriver,desperateforroadsideassistanceat

midnightbecauseheneedstomakehisdawndeliverydeadline,oratyredealer

inurgentneedofspecificproductsforhiscustomer,ourteam’smissionistobe

theirhelpinghandatanytime,dayornight,”heexplained.“It’samissioninline

withGoodyear’spolicyof‘Safetytogether’andourglobaldrivetobefirstwith

ourcustomers.Ourserviceispartofthispartnershippromise.”

Thenew,integratedGoodyearCustomerServiceCentretookitsfirstcallon7

January2011.Inessence,theserviceprovidesallcustomers–dealers,sales

force,fleetcontrollersandendusers–withasinglecommunicationpointwith

thelargeorganisation.PreviouslyspreadbetweenseparatecentresinGauteng

andUitenhage,the21callrepresentativesarenowbasedonsiteatGoodyear’s

Uitenhagemanufacturingplant.

“Bycarefullyconsolidatingand integrating theGoodyear,TrentyreRoadside

Assistanceand4Fleet(accounthandling)customercallcentres,thegroupnow

sharescrucialsupportstructuresandtechnologytoensuretheserviceisnever

interruptedandcustomersneverinconvenienced,”saidDeVries.

“Themovehassynergisedthebestofpeople,technologyandprocessesto

offerallourcustomersanevenhigherlevelofserviceexcellence.”

The centralised facility is engineered to handle:

•Dealersupport,includingallaspectsofsalessuchasorderingand

productavailability.

•Salesforcesupport,includingpricechanges,bulkorderplacements

andsalesreports.

•Trentyre’snon-stopRoadsideAssistance,whichfacilitatestherepair

or replacementof tyres through thenationalTrentyredealerand

affiliatefootprint.

•Trentyre account administration, to ensure effective inter-branch

transfers,invoicingandgeneralenquiries.

•4FleetAccountAdministration,whichsupportsfleetswithinvoicing

andgeneralenquiries.

•Customer liaison, including a complaints support line for all

warehouseanddeliveryrelatedconcerns.

HeadingthecallcentreoperationisGroupCustomerServiceManager,Ardiela

Savahl, supported by Operations Manager Vaughn Herbert. A calm, direct

The Customer Service Centre in operation – 24 hours a day, seven days a week, 365 days a year.

O n e - o n - O n e • 2 9

16142 Trentyre SA Treads P.fh11 9/2/09 2:14 PM Page 1

Nextyear’sTyrexpoAfrica2014exhibitionhasreportedkeeninterestandbrisk

businessamongexhibitorslookingtotakeadvantageofmarketingopportunities

atsouthernAfrica’sonlyindependenttyreandequipmentindustryshow.

Thethree-dayeventnextMarchwillonceagainprovideashowcasefor the

fullspectrumofreplacementmarkettyres,retreading,technology,wheelsand

under-vehicleservices.

“There has been an excellent response to next year’s show with plenty of

interest from African and international businesses,” confirms Paul Farrant,

managing director of show organiser ECI International. “Over half of the

exhibitionspacehasalreadybeensold,which isagreatpositiontobe inat

thisstage.Weanticipateafullhouseandanothersuperbshowforthewhole

industrytogetinvolvedin.”

AmongthemanyleadingAfricanbasedcompanieswhohaveconfirmedtheir

involvementisBeltyreAfrica,thelocalsubsidiaryofBelshina,thelargesttyre

manufacturerinBelarus.

ThecompanyiswellknownforitsultralargeOTRtyresfordumptruckand

earth mover equipment used in the mining industry, as well as standard

OTRproductsforscrapers,graders, loadersanddozers inminingandlarge

constructionandcivilengineeringprojects.

TheconsumerendofthetyresandwheelsmarketwillberepresentedbyExotic

Wheel&Tyre,theJohannesburgcompanywhomarketarangeofpassenger

car tyres including Silverstone HPT, Accelera, Kenda, Nankang and Event.

Theseareteamedupwithanimpressiverangeofalloyandspecialtywheels

fromsupplierssuchasEvolution,Ballistic,MenzarriandPanther.

Returning to Tyrexpo Africa will be Richards Bay Tyres, the Kwa-Zulu Natal

basedtyredistributorandserviceprovider,whowillbeattendingtheshowin

partnershipwithDutchwholesalerBandenmarkt.RichardsBayisaDunlopand

BandagdistributorwhichprovidesafullrangeoftyreservicesforOTR,truck

andpassengercars.

AnotherreturningTyrexpoAfricaregularisLeaderquip,oneofthecountry’s

major suppliers of garage and workshop equipment. With operations in

Gauteng, theCape,Kwa-ZuluNatal andBloemfontein, thecompanywill be

exhibitingthelatestwheelbalancing,tyrechangingandalignmenttechnologies

fromUSequipmentmanufacturerHunterandItalianbrandsSicetyrechangers

andWerther,thewell-knownliftsandjackssupplier.

TyrexpoAfricaprovidessouthernAfrica’sonlydedicatedopportunityforthe

tyre, technologyandserviceequipment industries toexhibit ina trade-only

business environment. In addition to passenger car, truck, OTR, industrial

and agricultural tyres, the showwill alsobe an important showcase for the

retreading, tyre repair and recycling sectors and for suppliers of workshop

equipment,tools,accessoriesandconsumables.

TyrexpoAfrica2014takesplacebetween4-6MarchattheSandtonConvention

Centre,Johannesburg(SCC),SouthAfrica.

Formoreinformationgotowww.eci-international.com

FASTSTARTFORTYREXPOAFRICA2014ASEXHIBITORSFROMALLSECTORSSIGNUPFORJOHANNESBURGSHOW

3 0 • I n d u s t r y N e w s

TyrecorhassecureddistributionrightstoMitasa.s,oneofEurope’sleading

producersofagriculturaltyres,forSouthAfricaandtheneighbouringstates.

CurrentlyanOEsupplieroftyrestoleadingworldbrandssuchasJohnDeere,

NewHolland,Case,LandiniandMcCormick,and JCB, tonamebuta few,

Mitasmanufacturesandsellstyresunderthreebrandnames:thecompany’s

ownMitasandCultor,andContinentalunderlicence,outofthreeproduction

plants in the Czech Republic, Serbia and the USA, the locations of which

enablesthecompanytooperateaglobalsalesanddistributionnetwork.

Firstestablishedin1933inPragueasasubsidiaryofMichelin,Michelinheld

a75% interest,while the restwasheldbyCzechoslovakbanks.Over the

years thecompanyhasbeensubject toanumberofownersandshifts in

focus,butdespitethis,hasstoodthetestoftime.

Anew joint-stockcompany,BarumHolding,wasestablished in1991and

severalyearslaterContinentalacquiredamajorityinterestinthecompany’s

Otrokovicetyreplant.Anextensiverestructuringprogrammehasbeenunder

wayinMitasforthefourthyearnow,courtesyofbeingawardedinvestment

incentivesfromtheCzechgovernment,fundswhichenabledthecompany

TYRECORSECURESDISTRIBUTIONRIGHTSTOMITAStolaunchtheproductionofitsradialtyresfortractorsandMPTradialtyres

oftheall-steeltype.

AfteracquiringtherightstousethetrademarksContinental,Semperitand

Euzkadiforagriculturaltyres,thecompanyhasfurtherstrengtheneditslong-

termstrategyinwhichitisaimingatthedevelopment,manufactureandsale

oftheoff-roadtyres,inparticular,agriculturaltyres.

“Weareexcitedthatwemanagedtosecuredistributionrightstooneofthe

leadingpremierbrandsintheworldforSouthAfrica,”statedCharldeVilliers,

MDTyrecor.ItwasagreedthatTyrecorwillbeappointedasthesoledistributor

fortheCultorbrandforSouthAfricaandtheneighbouringcountries.

“TheCultorbrandwasintroducedatthisyear’sannualNampoAgricultural

show held in the Freestate, and was well received by the consumer,” he

added.

According to de Villiers, Tyrecor is in the process of increasing its stock

levelstoensuretheproductswillbeavailabletothegeneralnetworkinthe

domesticmarket.

4, 5, 6 MarchSandton Convention Centre, JohannesburgSouth Africa

ECI International Ltd., Speldhurst Business Park,Langton Road, Kent, TN3 0AQ, England

T +44 (0)1892 863888 F +44 (0)1892 [email protected]

www.eci-international.com

AN INTERNATIONAL EVENT

The One Stop Show forTyres, Workshop Equipment & Accessories

tyrexpo_africa_2014.pdf 1 08/05/2012 12:51

With the reliability you get from Bandag, your fleet can take on anything. www.bandag.co.za

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3 2 • B a n d a g N e w s

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3 2 • B a n d a g N e w s

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T a l k i n g T y r e s • 3 3

BrAnD eQuITy

Changingmindsets…

It’stheultimatecommodityformarketers

aroundtheworld,andadefiningaspectof

purchasingdecisions.Butforconsumers,

isstickingendlesslytoasingletried-and-

trustedbrandthebestthing?

ByColinMileman

Chief executives, managing directors, marketing gurus,

advertising executives and public relations specialists the

worldoverspendcountlesshoursdoingonecrucialthingfor

theirbusiness:buildingthebrand.

More than the core qualities of individual products, it’s the

image and perception of the brand as a whole that is most

important to them. After all, why else would tyre companies

flirt with multi-million dollar soccer sponsorships, put their

namesonanexclusivelineofcalendars,splashtheirlogoson

abunchofmapsorfundafleetofhigh-flyingblimps?

None of these efforts make one iota of direct, tangible

difference to the fundamental quality or performance of the

actualproductsthecompaniesareattemptingtosell.Inmotor

racingyoucancertainlyarguethatitimprovesthebreed,with

lessons learned on the track ultimately filtering through, in

someshapeorform,tobetterproductsforarchetypalMrand

MrsAverageandtheirsensiblefamilysedandrivingonnormal

roads,clockingupapredictable20000kmperyear.

These marketing initiatives set out to place the brand front-

of-mind amongst consumers for the qualities they represent, rather than

necessarilytheproductsthemselves.

Forthesamereasonsomecarcompaniessponsorgolfdays,polotournaments

andwildlifeconservationprojects,thebrandsaimtoprojectalifestyle,alevelof

aspirationoranassociationthatbuyersaredrawntowards.Themainobjective,

ultimately, is tocreateaffinitywith thebrandand,naturally,boostsalesand

increaseprofits.

KeepinmindthatthetyremanufacturersrepresentedinSouthAfricaare

globalentitieswithproductportfoliosthatextendwellbeyondjustchurning

out rubber. Continental, for example, is a multi-faceted corporation that

produces not only tyres but also braking and vehicle stability control

systems, powertrain and chassis components, instrumentation, as well

as infotainment and networked vehicle communication systems – a lot

ofunder-the-skinstuffyouwon’teversee,ornormallyassociatewiththe

company.

Similarly,Bridgestonemanufacturespolyurethanefoamforseatsandinteriors,

as well as for bedding, furniture, appliances and buildings. It makes hoses,

conveyor belts, components for solar cells and plasma displays and even

golfingandtennisequipment.

Amongitsvastproductportfolio,Goodyear,interestingly,churnsoutsynthetic

rubberformedicalapplications,andforchewinggum!

There’salotmoretothesecompaniesthanmeetstheeye,althoughtyresare

themostobviousandidentifiablefront-linecommodity.AndtheywantMrand

MrsA toknow it, so that’swhy they investheavilywelloutside thesphere

ofconventionalproductadvertisingandmarketing,hopingtoswayprimarily

brand-orientedbuyingdecisionsintheirfavour.

Recentexperienceonvarious4x4eventshaveprovedjusthowtoughthisbrand

equitynutistocrack–especiallywhenattemptingtochallengeingrainedbrand

loyalty.Justliketheage-oldToyotaversusLandRoverdebate(nowexpanded

andheightenedtoincludethelikesofthenewFordRanger,VWAmarokand

IsuzuKB),manypeoplearedeeplyentrenchedinaparticularbrandandview

competitorswithcaution,andsomeevenwithcontempt.

While pricing is the overriding factor that dictates tyre choice for most

consumers, the hard-core 4x4 enthusiast, in particular, is often a stubborn

3 4 • T a l k i n g T y r e s

Colin Mileman is a freelance motoring journalist, photographer and advanced driving specialist with over 13 years of experience in this

field. As a former editor of Topcar and Topbike magazines, he’s as enthusiastic about cars and bikes as they come, and has extensive

knowledge of all motoring-related matters, including the topic of tyres, having run the annual and highly regarded Topcar tyre tests for

several years.

beast that vehementlyprotects their trustedbrandmix. Themost common

argument is that they’veusedaparticulartyrebrandorspecificproductfor

years,andithasneverfailedthem.

Accordingly,newchallengersareviewedwithdisdain,andthey’rerarelywilling

tocomeoutof their shell toevenconsidercompellingalternatives that are

newer,incorporatemoreadvancedtechnologyandmaybeevenbettersuited

totheirneeds.

It’sasituationthattheownersoftherelevantbrandwillrelish.Butwhenthe

consumerbecomesstubbornandhabituallyingrainedintheirchoices,theyare

infactlosingoutinthelongrun.

Evencomparativetestsstagedbyindependententitiesareoftenviewedwith

scepticism–andthatappliesasmuchtovehiclesasitdoestotyres.When

anewcontendertakesthelaurels,thedie-hardsimmediatelythrowuptheir

arms,hurlabuseandcryfoul.

Aswithnewcarpurchases,gettingbumsinseatsisprobablythebestwayto

openmindsandbuildnewallegiances–butit’sanexceptionallydifficultthing

todowithtyres.Retailersdon’thaveafleetofdemotyrestofittoallmannerof

vehicles,andeveniftheydid,ashorttestdrivewouldreveallittle,ifanything.

Morecomprehensivecustomerdays,drivingcoursesanddedicatedeventsare

probablythemosteffectivesolution,withfirst-handexperiencerapidlyswaying

previouslyunflappableloyalties.Buttheyaretime-consuming,difficulttodoon

alargescaleandinherentlyveryexpensive.

However,sucheventsarecertainlycapableofpreachingtotheunconverted,

creating unofficial self-appointed brand ambassadors that become equally

vociferousintheirenthusiasmforthenewproduct,andthebrandingeneral.

Wearedrivenbyan informationage,andalthoughit’softendifficult tofind

sense among all the clutter, consumers should be arming themselves with

reputablesourcesofinformationandmakingcleverchoicesratherthansimply

stickingtosameold,sameold.

Brandequity isprobably themostprizedandhardest-foughtcommodity

inbusiness,butit’sabig,brightandextremelycompetitiveworldoutthere

withanunprecedentedrangeofoptions–andtheballisverymuchinthe

consumer’scourt.

3 6 • G o o d y e a r N e w s

Goodyear eagles give sporty new Ford its wings

BenchmarkUHP(ultrahighperformance)tyreGoodyearEagleF1Asymmetric2hasbeen

selectedastheonlyrubberfitenoughfortheFord’ssportynewFocusST.

AccordingtomotoringjournalistColinMileman,inarecentarticleforSATreadsmagazine,

theFocusSTis“atrulybrilliantcarthatsetsnewbenchmarksforseriouslyhothatchback

performance,fantasticdriverinvolvementandsheerentertainment”.

TheonlytyreapprovedfortheSTisGoodyear’slatestgenerationEagleF1Asymmetric2

235/40R18956XL.AccordingtoMileman,“therelationshipbetweencarandtyreisso

closelyalignedthatyoualmostdarenotdeviatefromtheoriginalequipmentspecification”.

Dustine Gascoyne, Marketing Director, said

the long-term requirements of Goodyear’s

markethadbeenanalysedandmanufacturing

facilities developed to align with customers’

ever-changingneeds.

“Thereismoredemandfor4x4tyresforSUVs,

for example. We are aligning our quality and

productperformancewithtrendsinthemarket

and with international competition. We’re

alsostayingastepaheadofourcustomersto

ensurewewillalwaysbeabletodeliverexactly

whattheyneed.”

Goodyear’s PPQ audits are conducted by

five international auditors, each an expert

in an aspect of tyre manufacture. Theo

Bezuidenhout, Technical Team Leader for

SystemsandAudits,explained thatauditsare

usuallyplannedbutthelatesthadcomeoutof

theblue.

“In September 2012, we celebrated when

the Uitenhage plant achieved its highest ever

PPQ score. Most recently, in February this

year,PPQauditorsdropped inunannounced.

Still, theauditscorewasveryhigh.Goodyear

SouthAfricacontinuestogofromstrengthto

strength.

“ThePPQauditmeasuresProductandProcess

Quality. Through a stringent checklist of

international criteria, these auditors evaluate

the extent to which our process control

Goodyear Plant Investments ensure Quality Productsone of Goodyear’s recent highlights was the continued investment

in its manufacturing facility in uitenhage, and consequent further

increase of its 4x4 and uHP (ultra high performance) capacity. Aside

from the installation of two new tyre building machines and four new

presses, final finish areas were also upgraded and the impact of these

investments were clearly reflected in best-ever, international standard

Process and Product Quality (PPQ) audit scores.

deliversconsistent,repeatablequality.Clearly,

the higher the score, the better our control

overprocessandquality,whichinturnmeans

lessbadproductandfewerreturns.Ultimately,

our customers are assured of the consistent,

excellentqualityofGoodyear’sproducts.

“Goodyear’scontinuedinvestmentsintoplant

and machinery definitely impact positively

on our PPQ performance. However, these

excellent scores can also only have been

achieved througha fantasticeffort, especially

from a team that has experienced intense

pressuresandchallengesduringthepastyear.

They are all to be congratulated for working

togethertowardthiscommongoal.”

G o o d y e a r N e w s • 3 7

Tyre of Choice for Rhino Protection

SouthAfricanheartsbleedeverytimeoneofourpreciousrhinosloses

its horn to poaching. Goodyear supports this battle by sponsoring

rugged, high performance 4x4 tyres to help give the anti-poaching

teamsanadvantagewhenpatrollingthecountry’snaturereserves.

GoodyearWranglersarethetyreofchoiceforrangersontheForever

WildRhinoProtectionInitiativeteam.Thehighlyeffectiveinitiativewas

givenaboostwiththesponsorshipofsixVolkswagenAmarokbakkies

fromVolkswagenCommercialVehicles in2011, and the contractwas

renewed in 2012 and 2013, with Goodyear coming on board for a

second year. The vehicles serve various reserves and anti-poaching

unitsacrossthecountry,eachmanagedbytheForeverWildheadoffice

team.

“TherangersmadeaspecificrequesttohaveGoodyearWranglersfitted

to the vehicles,” said Wilderness Foundation’s Conservation director,

Matthew Norval. “When the new Amaroks came in, they were fitted

with other tyres. Our rangers asked if Goodyear could sponsor the

Wranglers againas the tyresofferbetter tractionandaremuchmore

robustthantheothertyresthey’vetried.”

Goodyear Gears up for 2013 Truck Racing Season

Goodyearisgearingupforits9thyear

supplying race tyres to the European

TruckRacingChampionship. The ten-

roundchampionshipstartedatMisano

inItalyinMaythisyear.

Goodyear Racing tyres, which have

been specifically designed and

developed for the European Truck

Racing Championship, are the only

typeapprovedbythesport’sgoverning

body, the Federation Internationale

de l’Automobile (FIA). They will be

availabletoallentrantswithsupplyand

supportateveryrace.

Lize Hayward, Goodyear’s Group Brand Communications Manager,

saidGoodyear isproudtobepartof thissponsorshipteam. “Weare

honoured that the Wranglers are indeed the rangers’ tyre of choice,

andthatwecancontributetotheirsafetyandcomfortoverchallenging

off-roadterrain.”

Go GET ‘EM! – lize Hayward (Goodyear Group Brand Communications Manager) and Rodney Visser (Security Manager – Shamwari Group) with one of the anti-poaching vehicles newly shod with Goodyear Wranglers.

lAracetruckweighsatleast5500tonnesandtravelsatspeedsofupto160km/h.

lTreadplaysavitalroleintheperformanceoftruckracingtyres,withstanding very high temperatures as the truck fights foroptimumgripduringarace.

lAll these tyres have RFID (Radio Frequency Identity), whichgiveseachtyreauniqueidentity.RFID,alsocalled‘chipintyre’technology,involvestheplacementofamicrochipinthetyre

duringconstruction.Thischipcontainsdatarelatingtothetyre,whichallowstheFIAtomonitoreachtyretoensureallracingteamskeeptotheregulations.Thankstothesuccessoffieldtrialsandtruckracing,Goodyearhasrecently introducedthistechnologyintoregulartrucktyres.

lThesetyresfeatureaspecificallydesignedtreadwhichprovidesexcellentgripinbothdryandwettrackconditions,performingconsistentlyinninedifferentcountries.

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TRIANGLEBECOMINGGLOBALPLAYER

In a bid to cement and strengthen its presence as a global tyre player, Chinese

company, Triangle Tyres recently held a Summit in Shanghai, China. Exclusively

devoted to Triangle’s efforts to globalise its business as effectively as possible,

this global event marked an important milestone in the company’s history in

demonstrating its desire to enter a phase of decommoditisation with respect

to its products. Marketing as a primary driver of this function, and a key part

of Triangle’s aim to become a ‘globalised tyre company’ was a recurring theme

of the Summit.

CFP Tyres (Pty) Ltd was invited to attend the Triangle Group’s 2013 Global

BusinessSummitat thePudongShangri-LaHotel,Shanghaion18May2013.

Over 450 delegates, including Chinese Government dignitaries and Triangle

employees and customers from around the world, attended the Summit, and

CFPwasoneofaselectedfewcompaniesworld-wide,toreceiveanexclusive

“StrategicPartnershipAward”fromtheTriangleGroup.AnachievementCFPis

veryproudof!

CFPhasbeenthesoledistributorforTriangleTyreinSouthAfricasince1999.

www.satreads.co.za

Reuters reported on May 17 that unnamed outside “industrial and financial

investors are in talks to buy a stake in Camfin,” which holds controlling interest

in Pirelli SpA.

Pirelli chairman andCEOMarcoTronchetti Provera controlsPirelli “through a

complexchain ledbyhisMTPSpAholdingvehicleandcomprising twoother

companies,GPIandMilan-listedCamfin,”Reutersreported.

Camfin hold a 26% interest in Pirelli, and is itself 42.6% owned by

Tronchetti Provera and12%by theMalacalzas family,which is also the

secondlargestinvestorinGPI.

TronchettiProveraandtheMalacalzashavereportedly“beenlockedinadispute

overhowbesttorepay”Camfin’sdebt,whichsatat385millioneurosattheclose

ofMarch.

Itwassaidthatthenewinvestors“wouldhelpCamfinrepaydebtandgivethe

investor a foothold in Pirelli.” An MTP spokesman said “contacts and talks”

betweenthevariouspartieswereingoing,butthat“therewerenot,andarenotat

present,anyagreements,evenpreliminary,inthisregard.” www.satreads.co.za

NEWINVESTORSLOOKINGATBUYINGSTAKEINPIRELLIHOLDER

Schaeffler Group yesterday gave notice that it is ending its mutual

investment agreement with Continental AG. unless there is a change of

heart, the agreement will terminate in May 2014.

SettledinAugust2008,theagreementgovernsthecooperativerelationship

betweenthetwocompanieswithSchaefflerasthelargestsingleContinental

shareholder.Schaefflercurrentlyholdsa49.9%shareofContinentalAG.

Schaeffler said the investment agreement “no longer has any practical

relevanceforeithercompany”since“keyprovisionsoftheagreementexpired

inAugust2012.”Schaeffler added that it andContinentalhave “benefitted

fromtheirexcellentandpragmaticcooperationforyears”andwillcontinue

thiscooperationinthefuture.

“AsContinentalAG’smajorshareholder,weareverypleasedwithContinental’s

achievementsover thepast fewyears,” saidSchaefflerGroupowners and

chiefshareholdersMaria-ElisabethSchaefflerandGeorgF.W.Schaefflerina

statement.“WeconsiderourinvestmentinContinentalalong-termstrategic

investmentaimedatsustainablyincreasingthevalueofContinentalAG.”

Comments made by Continental CEO Elmar Degenhart had perhaps a

less enthusiastic ring to them. “Notice of termination of the investment

agreementisunderstandablefromthevantagepointofSchaeffler,ouranchor

shareholder,”hesaid.“Weareconfidentthatthetwocompanieswillcontinue

theirverygoodandgoal-orientedcooperationonintothefuture.”

In2008,SchaefflerGrouppaid12.1billioneurosforConti–fivetimesitssize

inrevenue–inaso-called‘stealthtakeover.’Offeringtobuyupalloutstanding

Continentalshare,Schaefflerendedupholdinga90%stakeinthetireand

autocomponentmaker,despitesettinganownershiplimitof49.99%.

Asaresultofbeingover-subscribed,Schaefflerhadtoborrow16billioneuros

tofinanceitsContinentalacquisition,andwithinhalfayearwasstrugglingto

financetheresultinghighdebtservicepayments. www.satreads.com

SCHAEFFLERENDINGCONTIINVESTMENTAGREEMENT

W o r l d N e w s • 3 9

BRIDGESTONEWINSPATENTRIGHTSLAWSUIT–INCHINA

Bridgestone Corp. has won a design

patent infringement lawsuit against China’s

Qingdao Genco Industrial Group Co.

BridgestoneallegedthattheQingdao,ShandongProvince-basedQingdao

Genco IndustrialGroupcopiedapatentedgroovedesignonsomeof its

mediumtrucktyres,whichwerefounddisplayedinacatalogue.

Thesuitwasfiledandwon inQingdaoCity IntermediatePeople’sCourt.

QingdaoGencoIndustrialGroupreportedlydoesnotplantoappeal.

“The Bridgestone Group will continue working to maintain and enhance

thevalueofitsbrandsbytakingthenecessaryactionstoprotectitstrade

secretsandintellectualproperty,”thetyremakersaidinastatement.“This

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4 2 • O n e - o n - O n e

sa treads june 2013

Documents

fleet customers

profleet ad tread s

sa marketapollo

sa stake

tyres courtesy of michelin

national franchise network

afleet management

local industry