sa treads june 2011
DESCRIPTION
Leading Tyre Industry MagazineTRANSCRIPT
Vol 1
7 •
June
201
1
A set of Scorpion Verde tyres courtesy of Pirelli
Foc
us
on
Tyr
e c
osT
s
Rubber prices hit tyre makers hard
Dandelions – the new rubber source?
One-on-One with Supa Quick’s Ramano Daniels
New eco-friendly products from Continental and Pirelli
Apollo’s Glittering Awards Gala
10027 Bandag AS SA Treads.indd 1 10/7/10 12:25:26 PM
editor LianaShaw
Technical consultant WrayShaw
reproduction DianevanNoort
Printing TYPO
–ColourPrintingSpecialists
Distribution PrestigeBulkMailers
Advertising LianaShaw
Contentsone-on-oneNewlegacywithSupaQuickLeader,RomanoDaniels.......................... 2
Focus onSyntheticrubbercostssettoriseasnaturalrubberpricessoar........... 9RabbitFeedaSourceofRubber?DandelionsHoldtheKey!..................................................................... 17
new Products ContinentalTreadsNewGround–EntertheContiEcoContact5andContiSportContact5..................... 19EntertheScorpionVerdePirelli’sfirstecotyreforSUVs...................... 23
Industry newsTubestonecelebrates10yearsofsuccessfultrading........................... 24Anighttoremember!ApolloAwardseveningrecognisesDealersingrandstyle............................................................................ 29
conti cornerContinental’sshareofcommercialsegmentsettoescalate................. 32
Talking TyresTYRESinmotorsport–WinonSunday,sellonMonday..................... 37
Goodyear newsGoodyear’sastonishingneweaglehaslanded...................................... 40
Dealer Profile RetailkingsenterTyreTrade!................................................................. 43
World newsRubberplantationacquisitionsapossibilityforApollo.......................... 47Trucktyreofthefuture?Michelinrevealsfivetonnetrailertyre............ 47World’spriciesttyres–setofBugattiVeyronrubbercosts23500pounds! 47Pirelli’snewhardtyretomakeitsdebutinSpain.................................. 47SumitomorubberconsideringBrazil,Indiatyrefactories..................... 47
competition, subscription, Website ........................................ 48
A note from
the editorSpeculation that the tyre sector could
well be hit by another tyre price
hike in the latter part of 2011, is not
without foundation, it would seem.
Primarily dictating these spiralling
costs are raw material increases, in
particular, natural rubber which is
becoming a scarce commodity as a
result of natural disasters disrupting
production and growing demand
from developing nations. Tyre makers
across the world are feeling the pinch
and our local four are no exception. In this issue we take a closer look at
the influencing factors responsible for this state of affairs and examine the
long-term implications for the consumer.
Weaskthelocalproducerstooffertheirviewsonthematteraswellasoffer
possible long-term solutions to the crisis. What, if anything, can be done
tocushiontheblowandwhatmeasuresarebeingput inplacetoensurea
sustainableway forward?All this andmuchmorewillbeaddressed inour
feature story. Astoundingly and according to latest scientific research, the
humbledandelioncouldpossiblyofferastellarsolutiontothisproblem,as
itspropertiesmimicthosefoundinnaturalrubber.Incredible?Wethoughtso
too,butourstoryonpage17confirmsthistobethecase.
Also in this issue, we feature two exciting new offerings from Continental
for thepassengermarketaswellas thenewScorpionVerde–Pirelli’sfirst
eco-friendly tyre for the SUV and Crossover markets. After all, according
toPirelli, itmakessense to target thevehicleswith theheaviest impacton
ourenvironment!Oneluckyreaderstandsthechancetowinasetofthese
magnificentnewtyressodon’tforgettoenterourquarterlycompetition.
OtherstoriesincludetherecentApolloAwardsevening–agrandaffairand
onethatpaidtributetothetopperformingDunlopZonestoresinthecountry.
Attendedbytheindustry’selite,itwillgodownasanighttoremember.Oh…
andspeakingofaccolades,Tubestonealsohastocausetocelebratehaving
reachedanimportantmilestone–10yearsofsuccessfuloftrading.Turnto
page24forthisstory.
Lastbutbynomeansleastwecomefacetofacewiththenewmanatthehelmof
thehighlysuccessfulSupaQuickfranchise.RomanoDanielsassumedtherole
ofmanagingdirectorinthewakeofGavinKockott’sdeparture14monthsago.
Inacandidinterviewhespellsoutthechallengesandaspirationsofhisnewrole
andoutlineshowheplanstotakethefranchisegrouptothenextlevel.
So,sitbackandenjoyourwinteredition.
I n t r o d u c t i o n • 1
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A new legacy One-on-OnewithSupa Quick Leader,
Romano Daniels
Tofurthercompoundthesituation,Gavin’sdeparture
elicited a wave of shock and incredulous
disbelief within the industry. Change was
suddenly inevitableand the franchiseeswere
understandably concerned as to how this
monumental development was going to
affectthemandtheirbusinesses.
It was under this delicate set of
circumstances that Romano Daniels
accepted the challenge of steering
theship intowhat, for themajorityof
franchisees,wasanuncertainfuture.
ThelegendthatisGavinKockott,tookafinalbowas
founderandMDofthesupremelysuccessfulSupa
Quick franchiseof retail stores, inFebruary2010.
Gavin had not only been instrumental in establishing
a company that has since grown into the largest retail
distributioncompanyinSA,butthefranchisemodelthatheand
hismanagementteamemployed,setanewbenchmarkin
the local tyre business…… formidable shoes to
fillforanysuccessor.
2 • O n e - o n - O n e
n TEL: (011) 334-1680 n FAX: (011) 334-1694n [email protected] n TOLL FREE: 086 000 2010
NATIONWIDE GARAGE EQUIPMENT SALES & SERVICESAuthorised Distributor of HUNTER ENGINEERING COMPANY (U.S.A.) in Sub-Saharan Africa and the Indian Ocean Islands
www.leaderquip.co.za
were not altogether supportive of my new role was made abundantly
clear to me during the first National Council meeting, where I was
toldthattheyviewedmeasnothingmorethanBridgestone’s‘puppet’
andthat theydidn’tbelievethat Iwouldbeabletomakeanyvaluable
contributiontothefranchiseasawholeortotheirbusinesses.
That could not have been easy to hear. How did you react?
Itwas important that I remainedcalm. I knew thatmy responsewould
determinethenewdirectionofthecompany,soIthankedthemandsaid
nowthatIknewwhatIwasdealingwith,Iwasbetterpreparedinorderto
overcomethoseperceptions.Fromtheoutset,therewasnohoneymoon
period–theonlythinglefttodowashittheground,running.
I am remindedof theold adage that today’sproblems
are not necessarily solved with yesterday’s thinking.
Inshort, Iemphasisedtheneedtocreateanewspace
inwhichweneed tooperate. All I asked forwas that
theydidn’tjudgemeonmypredecessororevenonmy
past….butpurelyonmyunderstandingofthebusiness
andhowwearegoingtomoveitforward.
How did you go about gaining an understanding of
the business?
The first order of the day was to begin understanding
the imperatives of retail. I gave myself 100 days - a
benchmarkusedbynewPresidents to theiroffice - to
grasp the concept, a time that was used purely to learn, understand
andcometotermswiththeissuesathand.Thebetterpartof2010was
spent visiting at least half of the 256 outlets across the country (the
remainderwillbeaddressedduringthecourseof2011)acommitment
which I believed to be critical to the process. Thankfully I have a
supportive wife, as you can imagine the extent of travelling and time
awayfromhomesuchanundertakingrequires.
Unlike a company-owned concern, franchisees grapple with unique
issues by virtue of their size, market segmentation and geographical
location.Theyalso functionverydifferently, sogetting toknow them
andtheirindividualissuesandconcerns,requiredalotoflisteningon
mypart.Andlisten, Idid. ItwasimportanttoarriveatapointwhereI
wasequippedtoasktheproperfranchise-relatedquestionsinorderto
beconsideredassuitablyqualifiedtoprovidevaluetotheirbusinesses.
The next 100 days were spent defining my role within the Franchise
Operation.Idismissedtheobviousconnotationsofmytitle–thisroledoes
not demand a gung-ho approach but rather one of measurability – and
strovetoimpressandcreateacultureof‘let’sservewithaviewtoreaching
ourobjectives.’
His extensive career with Firestone and later Bridgestone in a Sales,
Training, Human Resources/industrial labour capacity, followed by
several years in Public Relations and Marketing rendered him an
excellentcandidateforthejob,butSupaQuick’sfranchiseeswerenot
altogetherconvinced.Romanolackedhardcoreretailexperience.And
he was further regarded as the ‘Big Brother’ of Bridgestone. Clearly,
Romanohadhisworkcutout forhim ifhewasgoing toprove tohis
worthandabilitytocontributepositivelytotheGroup.
14monthssincehewasappointedMDofBridgestoneRetail,wecatch
upwithRomanoforacandid interviewwherehebringsusuptodate
onwhathereferstoasthebiggestchallengeofhisprofessionalcareer.
Romano, thank you for making the time to meet with
us. Some would say that only an extremely brave man
would accept the challenge of walking in the shoes of
a man such as Gavin Kockott. How would you respond
to this?
IwouldsaythatIdon’tplanonwalkinginGavin’sshoes.
NoonewilleverdenyGavin’sachievementsincreating
andbuildingabrandofsuchpowerandexcellence.14
months following his departure, Supa Quick is not in
disarray and that’s largely due to the strength of the
brand.
That being said, I don’t believe in the notion of filling
someoneelse’sboots,which iswhy Ihavetakenthedecisiontowalk
my own path and create my own legacy, together with the team I’m
currentlydeveloping.
The latest challenge for the Supa Quick brand, as I see it, is for it to
evolve to the next level. Achieving this will empower the business to
dealwiththeever-changingdemandsofthemarket, therebyensuring
itssustainabilityandlongevity.ThisiswhereIwillbefocusingmyefforts
andattention,evenif itrequiresre-inventingthewheel inaccordance
withmyskills,strengthsandvision.Thankfully,Ifindsolaceinthefact
that despite whatever’s been thrown at me in the past, I’ve managed
to rise above the inevitable. I have been blessed with resilience
and resourcefulness so I will not be intimidated by a seemingly
insurmountablechallenge.I’mhopingthatmyresourcefulness–which
largelyhingesonmymanagementstyle,peopleskills,leadershipskills,
ability to manage stakeholders and the eight years of experience I’ve
amassedindealingwiththeunions-willholdmeingoodstead.
What has been the most difficult obstacle and/or perception you’ve
had to overcome thus far in your new position?
Undoubtedly,gainingtherespectandtrustofthefranchisees.Thatthey
O n e - o n - O n e • 5
❝
This role does not
demand a gung-ho
approach but one of
measurability
❞
My former role within Bridgestone – although viewed with suspicion
by many – also turned out to be a huge benefit in that I was able
startconnecting thedotsbetweenthe twoparties inorder toachieve
pressingchangeswithinthefranchiseoperation–Ibelieve,withafair
amountofsatisfactionfromthefranchisees.
What came next?
The next 100 days, having defined my role and identified market
imperatives, were dedicated to formulating a direction for the Supa
Quickbrand.
What do you mean by market imperatives?
We are operating in a new economy in terms of the consumer, one
that now centres around providing the customer with
thebestpossibleexperiencein-store.Thefishnolonger
swims toyou…youhave togooutand fish.Andeven
the fishing spots have changed – one now needs GP
coordinates,technologyandtheuseofthecorrecttools
tolocateandhookthem.Clearly,weneedtofindnew
solutionsgoingforwardifwearetocompeteeffectively
intothefuture.
We have defined three areas (I’m not able to disclose
toomuchinformationinthisregard)thatwebelievewill
propelusintothefutureandwillenableustotakethis
brandtothenextleveltherebymakingitstronger.
What has been the response from the franchisees?
Nowthatwe’veopenedthedoortheyappeartobemorereceptivetothe
notionthatthebrandcouldwellbeinneedofadegreeofre-invention.
Thankfully,timeisagreatleveller.They’remorepositivetotheprocess
and appear to be willing to give me a chance to prove myself. Once
uponatimeSupaQuickwasaheadofthecurvebutsomewherealong
theline,wewereknockedoff.OuroppositiontodayfollowedtheSupa
Quickmodelwithkeen interestandwhen I lookaround Iseeabitof
SupaQuickineachofthem.Thefranchisehasbeenstrugglingforthe
last10yearstoregainthatcovetedspotandthisisourchallenge,going
forward.
Thatbeingsaid,Ibelievethatwe’reinagoodspacetoachieveournewly
implementedgoals.Thenewcorporate IDhashelpeda lotandwe’re
leveragingitinthebestwaypossible.Moreimportant,fewcompetitors
can rival us in terms of product, alliances, geographic footprint and
brandstrength.
What other challenges exist within the franchise?
One of our biggest challenges was to enforce within the group that
their peers were fellow-franchisees rather than dealers and for them
tobeginreferringtothemassuch.Weneedtounderstandthat there
isadifferencebetweenafranchiseeandadealer–thisunderstanding
provides better discourse in the manner in which we tackle our
challenges. And of course, the age-old issue of competitiveness in
themarketalsoreared itshead,almost immediately.Theconsumer is
still beholden to 78% of its discretionary income to household debt.
EveryonefeltthatthefranchisefeewastoohighandI’mhappytosay
thatthishasbeenadjustedinthefairestwaypossible.
In this time we’ve also paved the way for a legitimate agreement to
bedrawnup thatstipulates that irrespectiveof itsowner,SupaQuick
franchiseeswillhavefirstownershiprightstothebrand.Thisisamajor
achievement since it has been on the table for some
timenow.
In short and to reiterate, we’ve been able to achieve
morein12monthsthanhadbeenachievedinthelast
five years, and I’m happy to say that the entire team
played a significant role as a catalyst in initiating this
change.
What about GPs? Do you believe they could be
improved on?
When it comes to GPs we take an unorthodox view
in that we don’t believe in one brush for all market
segments.Forus it’saboutabidingbyapricingmodel
thatprovidestherightexperienceandallowsthecustomertofeelsafe
aboutspendingtheirmoney.
Iamoftenremindedofthestoryofthelawnmoweronsale–greatprice
butdoIneeditnow?This isthekeyquestion.Therefore,grossprofit
andormarginsarederivedmostly,fromtyresandasaresultweneedto
besmartingainingahighershareofthecustomer’swallet.Sotheshort
answeris,yes,withoutadoubt.
Tyres are a grudge purchase so we need to appreciate that in order
for us to be profitable, we must come to realise that we are selling
andsatisfyinganeed(ratherthanjustsellingtyres).Thechallengefor
us, is to provide for a structured pricing model that does not spiral
towardserodingmarginsbutprovidesvaluetothecustomer,whilstalso
negatingtheanxietyinpartingwiththecustomer’sdisposableincome.
Weneedtoberesponsivetomarketdynamicsandforthisreason,we
believeinprovidingavarietyofofferingsalongseveraltiersbuiltaround
thetyreproduct.
6 • O n e - o n - O n e
❝
The fish no longer swims
to you….you have to go
out and fish. And even
the fishing spots have
changed.
❞
How important is it to maintain discipline within the Group?
Disciplinewithinagroupsuchasthismustexistparticularlyinsituations
where individual actions could adversely affect the other franchisees,
nottomentionthebrand.Shouldindividualactivitiesthreatenthebrand
in anywaywewill havenoalternativebut to address thematterwith
the respective franchisee. Of course, our intention is not to dampen
their flair and enthusiasm for their business, but rather to provide a
frameworkunderwhichtheirentrepreneurialflaircanshine.Whenwe
ponderthequestionwhybelongtoafranchisemodelthentheanswer
concerningdisciplinebecomesclearer.
Is there much training taking place?
Training isamajor focus,notonlywithrespect toproductknowledge
but more importantly perhaps, with respect to the
brand and franchising in general. We’ve changed all
our training material, starting with the value code and
furtherintroducedtrainingatbranchmanagementlevel.
Thisisallpartofadrivetoincreaseefficiencyinevery
area,fromthewayweopenandrunnewstorestothe
ergonomic principles of these outlets. It’s no longer
enough for the franchise to ‘tick over’. We need to
evolveinthenext10yearstoengineermovementand
tocreateanewbenchmarkwhichour franchiseescan
aspireto.
Oneofthewayswehopetodothisisbyre-introducing
incentivessuchas ‘Storeof theYear’,an initiative that
willnotonlyacknowledgefranchiseesfortheircreativity
andingenuitybutalsoprovideaplatformforthemtobe
recognisedamongtheirpeers.
What about those at the coalface such as the counter
staff for example? Will they be undergoing any
training?
The counter staff is critical to the success of any retail business.
Unfortunately, it would appear that in this industry, we’ve become
ourownworst enemy. Itwould seem thatwe, ascounter staff,have
forgotten how to sell. We need to be shocked into a new operating
environment, one that encourages the concepts of knowledge and
passion to preside over price. Investing in enhancing the skills and
knowledgeofcounterstaffissadlyneglectedinthisindustryoftendue
to budgetary cuts and the high staff turnover that has characterised
theindustry.Franchiseesareoftenreluctanttoinvestintrainingatthis
levelbecauseoftheimportanceofhavingsalespersonsattheirstores,
or alternatively, at the prospect of losing good salespersons to the
opposition.However, inorderforustochangethewaywedothings,
wehavetosacrificeasmallpriceforasignificantbenefitinthelongrun.
Clearly, it takes a collective force to bring about a new order of
understandingbutIdobelieveit’spossibleandhopeI’llbearoundto
seeitmaterialiseoneday.
It appears you’ve come a long way since your appointment in March
2010,particularlygivenmanyof thenegativeperceptionsyou’vehad
toovercome.
Sometimesnegativeperceptionscanbeanadvantageinthatnotmuch
is expected of you. This way there is only way…and that is up! My
approachistolookatproblemswhilealsoseekingtheopportunity.There
isasinglelessonI’velearntinmybusinesstravelswithBridgestone:a
problemclearlyunderstood, isaproblem50%solved.Therefore, the
solutionmustbearoundthecorner!
What are your thoughts, 14 months on?
Much work has gone into stabilising this channel and
inspiringconfidenceintherealitythatthebrandhasalot
oflegsstill.Equally,wehadtoconvincethefranchisees
oftherightdirectiongoingforwardaswellastocreate
a balance between the supplier/owner relationship,
whereby Bridgestone South Africa and Bridgestone
Retailactivelybegintounderstandtheirrespectiveroles
withinonegroup.Thisisaveryimportantprocess.
Asforthefranchisenetwork,Ican’tpleasethemall,but
in themain, and if you speak to a few at random, I’m
confident they will admit to feeling more positive and
thattheyareconfidentthatthebrandisingoodhands
-hopefully(smiles).
I’ve also learnt not to take franchisees’ frustrations
personally.Iunderstandtheirconcernsandrealisethat
theycomefromaplacethatspellsthemessage,‘I’mconcernedabout
mybusiness’,nothingmore.
Thus far it’s been a tough and
arduous journey but the
rewards of elevating the Supa
Quick brand to a market
leaderwillbewellworthitin
thelongrun.
O n e - o n - O n e • 7
❝
‘Store of the Year’, is
an initiative that will
acknowledge franchisees
for their creativity and
ingenuity and also provide
a platform for them to
be recognised among
their peers.
❞
Nov. 22-24, 2011
SHANGHAI · CHINA
Messe Essen GmbH · Phone: +49 201 72 44-727/-645 · Fax: +49 201 72 44-435E-Mail: [email protected] · www.reifen-china.com
The trade fair
in China for tires and
repair shop specialists
2091AnzCina210x280.indd 1 20.04.11 12:49
2011couldwellturnouttobethemostchallengingyearyet,atleastwherethe
tyrebusiness is concerned.Amid rumoursofoneorpossibly even twomore
newtyrepricehikesbeforetheyearisthrough,consumersjustlyhavecausefor
concern.Largelydrivingthistrendareescalatingrawmaterialcosts,analarming
trendwhichshowsnosignsofabating.
synTHeTIc ruBBer cosTs seT To rIse as natural rubberprices soar
F o c u s o n T y r e C o s t s • 9
©iStockphoto.com/SanderKamp
Accordingtosenioreconomist,JomJacobattheAssociationofNatural
Rubber Producing Countries, natural rubber surged to a record high
ofmore than$3.50/kg recently,due to tight supply asproduction in
Thailand – the world’s largest producer of the material – was being
curtailed by extreme dry weather. He states that the price surge of
natural rubber cameon thebackof a prolongeddrought innorthern
ThailandduetotheprevailingElNinophenomenoninpartsofAsia.
ViceChairmanofColomboRubberTraders’Association (CRTA)andMD
ofKegallePlantationsPLC,SunilPoholiyaddewas further reported inSri
Lanka’s Daily Mirror as saying that commodity prices as a whole have
comedowndue tounfavourableweatherconditions
inthecountryandthatthesenaturaldisastersarealso
affectingmainbuyer,Japan.“Weareheadingtoward
thesouth-westernmonsoon,wheretappingwillend.
However,wedon’tseeadrasticdrop inprices,”he
saidbeforereinforcingthatthepresentsupplycannot
meet both local and international market demands,
duetolowproductioncapacitiesinThailand.
Tomakemattersworse,theriseinnaturalrubberprices
was adding pressure to the tight synthetic rubber
market,whichwasbesetbyspikesincostoffeedstock
butadiene(BD),industrysourcessay.Apparently,BD
prices have climbed by more than $200/tonne over
the last few months to around $2 000/2 050/tonne
CFR (cost and freight) according to global chemical
marketintelligenceservice,ICISpricing.
The price increase is likely to lift costs for manufacturers that are
heavilydependentonthecommodity,particularlytyremakers,industry
sourcespredict,andtheuseofsyntheticrubbersasanalternativemay
notoffermuchcomfortsincepriceshavealsostartedtorunup.Major
syntheticrubbermakersaroundtheworldremainconvincedthatglobal
synthetic rubber prices may surge on likely strong orders from tyre-
makerslookingforacheaperalternativerawmaterialtonaturalrubber.
But,accordingtoA.F.S.Budiman,Secretary-GeneraloftheInternational
Rubber Study Group, with demand for elastomers, both for synthetic
rubber as well as natural rubber, continuously increasing at a rate of
3-4%peryear,substitutingwithsyntheticrubbermaynotoffermuch
respite,particularlyasSBRisapetroleumderivedproduct.
“Natural rubber prices are going up so sharply that synthetic rubber
makers have no choice but to raise their prices further,” claims a
ChineseSBRmaker,“especiallythatnaturalrubberandsyntheticrubber
prices usually move in tandem. They are traditionally interdependent
substitutes.”
Closer to home, the new tyre makers offer
their interpretation of the situation: “With the
positive development of car and truck production
worldwide in the last 15 months the demand for
tyres also increased; this has led to a massive
increaseddemand fornatural rubber.At thesame
timethesupplyofrubberisreducingduetonatural
disasters in the main producing countries and
political unrest in other countries such as Liberia.
Sodemandgrowswhilesupplyreduces,”suggests
Dieter Horni, MD of Continental Tyre SA. “Added
tothat,naturalrubberhasbecomesomewhatofa
commodity that’s good for speculation, especially
inAsia.
“As for SBR, again it’s a question of supply and demand. During the
recession,carmanufacturersreducedtheirinventoriesandthedemand
for new vehicles reduced. Now that the economy is showing signs
of recovery and the need to protect cash flow is less strong, we are
beginningtoseeanincreaseintheirinventoriesonceagain.
“And then there’s the issueof fixedpricing.TheChinesegovernment
hasfixedthepricefornaturalrubberataminimumof$4/kgfromthe
$2.5/kgmarkwhereitoriginallystood,againduetohighdemand.”
Georg Schramm, Head of Sales & Channel Development along with
Gareth Passmore, Head of Marketing for Apollo Tyres South Africa
add: “OE fitment was up by 8 percent globally in 2010 and is still
growing this year despite the impact of Japan’s tsunami disaster on
manufacturerssuchasToyota.Demandfor tyresused inreplacement
fitment isgrowing too. Inshort, theglobal tyremarketgrewbyabout
9%in2010andweexpecttoseesimilargrowththisyear.Atthesame
time, drought and heavy rains in most rubber plantation areas has
reducedoutputsignificantly(Thailand’srubberproductionin2010was
offbyasmuchas5%.Rubberproductionisexpectedtolagforabout
❝
Natural rubber prices
are going up so sharply
that synthetic rubber
makers have no choice
but to raise their prices
as well
❞
1 0 • F o c u s o n T y r e C o s t s
©iStockphoto.com/luoman
The rise in natural rubber prices is adding pressure to the tight synthetic rubber market.
1 2 • F o c u s o n T y r e C o s t s
twoyearssothecombinationofincreaseddemandandreducedoutput
isproducingrecordpricesfornaturalrubberwhichobviouslywillhave
aneffectonthepriceoffinishedgoods.Andofcourseasapetroleum
product, Styrene Butadiene Rubber is obviously also affected by the
currentsurgeinoilprices,soyes,untilthingssettledowninthecrude
markets,wecanexpectelevatedsyntheticrubberpricestoo.”
LizeHayward,GroupPublicRelationsManagerforGoodyearSAadds:
“Usageisincreasinggloballyaseconomiesrecoverfromtherecession
and emerging markets continue their growth. “ Luckily, however and
despite the perception that supplies will tighten, Goodyear continues
to enjoy an ample supply to support its business
needs.”
That said, Goodyear is in agreement that general
inflation and the impact of higher oil prices are
impacting natural as well as synthetic rubber but
alsostressthatproductsacrosstheboardarebeing
affected,notonlytyres.
Tocompoundthesituation,escalatingrawmaterial
prices are not the only things impacting on tyre
prices,accordingtoSchrammandPassmore.They
claim that margins for the SA tyre manufacturers
and indeed for theglobal tyremarket as awhole,
remainunderpressuredueto thecontinued influxofcheap imported
product.
Says Schramm: “The USA has introduced a 35% tariff on imported
products to provide their manufacturers with some protection but
the SA market remains largely unregulated, which means this margin
pressureislikelytocontinuefortheforeseeablefuture.
“Therisingcostofsteelusedinsteelbeltradialtyresisanothermajor
factorandthisdespiteincreasedcrudesteeloutputworldwide.Thecost
ofsteelproductionhasriseninternationallyandthisisobviouslybeing
passedontousasrefinedsteelconsumers.”
Manufacturers take action
To cushion some of the blow, the four local tyre
makers are constantly looking at ways to alleviate
someofthefinancialpressureontheconsumer.
“Tyre markets worldwide are very price sensitive
which means that as a manufacturer, you are
constantly compelled to take measures against
increasingcostsofproduction,distributionandthe
like.Thisisoverandabovetheissueofrawmaterial
prices,”saysHorni.
So why not plant more rubber trees one might
well ask? “Access to one’s private caoutchouc
(natural rubber) tree will not solve the problem,”
claimsHorni. “It takesup to sevenyears to reach
yourfirstharvestandeventhenyouarerelianton
climatic conditions which could wreak havoc with
yourplant.Asforotherrawmaterials,theytooare
subject to demand from other industries, thereby
pushingupthecostofmining.
“Thebigchallengeforusinthefuturewillbetofind
alternatives for certain compounds which are environmentally friendly,
sustainable and offer regrowth where possible whilst also delivering the
samequalityorbetter,atacheaperproductionprice.”
AlternativerawmaterialsareverymuchthefocuswithGoodyearaswell,
withHaywardclaiming that thecompany isactivelypursuingdifferent
optionssuchasBiolsopreneasasubstitutetoSBR.
Apollo agrees. “Ongoing Research and Development is absolutely
critical. Manufacturers need to experiment with new compounds and
newtechnologiesthatutiliselessexpensiverawmaterialsorprolongthe
lifeofthetyre.Onlythen,cantheyensureconsumersgetthebestreturn
❝
The USA has
introduced a 35% tariff
on imported products
to provide their
manufacturers with
some protection but the
SA market remains
largely unregulated,
which means this
margin pressure is likely
to continue for the
foreseeable future.
❞
©iS
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Recent floods in the rubber producing countries wreak havoc with supply.
1 2 • F o c u s o n T y r e C o s t s
OTR RADIALS
FOR ORDERS & INFORMATIONContact: Ken Martin or Marlin Pillay
Tel: 031 764 5058 | Ken: 083 387 8403 | Marlin: 071 880 9247 | Fax: 086 558 8382 Email: [email protected] or [email protected]
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OnLy AvAILABLE fROm
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TESTED & PROVEN
1 4 • F o c u s o n T y r e C o s t s
on the price they are paying for an increasingly
expensive product. It’s a major focus area for the
Apollo Tyres development teams both locally and
internationally,”saySchrammandPassmore.
Protecting the consumer
According to Continental, the likelihood of a
further price hike later in the third quarter is a
strongpossibility.“Wehavealready increasedour
prices twice this year (January and May) and it’s
possiblewemayhave toreact inasimilar fashion
lateronthisyear,”saysHorni.“Itdependsonthe
development of the different raw materials such
asnaturalrubber,crudeoil,steel,carbonblackto
namebutafew,aswellasonthepricedevelopment
for electricity, steam fuel and transportation. And
let’s not forget the development of wages and
salarieswhichtraditionally,arethemaindriversof
pricehikes.
Also likelyto impact,hefurthermaintains,arepolitical issuessuchas
the latestLibyancrisis.Asoneof themainsuppliersofoil toEurope,
Libya’sinabilitytodelivercouldhaveanequallymassiveimpactonraw
materialprices.
“Obviously some of these costs will have to be passed onto the
consumer,” states Apollo’s Passmore, “but the
key here is to ensure that fair price increases –
in line with rising raw material and labour costs
– are passed down the chain, from us as the
manufacturer, to our dealers and in turn, to the
end user. Our policy of incremental increases in
linewithfluctuatingproductioncostscanalsohelp
cushion theconsumer fromtheshockof the ‘one
bigincrease.”
As for Goodyear, their focus remains on seeking
to offset higher raw material costs with price and
mix,ratherthanjustprice.“Wearealsoworkingto
reducecoststhroughoutourorganisationasmuch
aswecan,”addsHayward.
“The one positive thing to bear in mind is that
without passing down costs to the end users,
tyre manufacturers are unable to invest in new
technologies,”claimsPassmore,“technologieswhichintheend,stand
tonotonlyextend the lifeof the tyre,butmore importantlyperhaps,
boostthesafetyfeaturesofoneofyourvehicle’smostvitalcomponents
–yourtyres,whichineffectserveasyouronlycontactwiththeroad.”
*Bridgestone SA was approached for comment but declined the
invitation.
❝
the key here is
to ensure that fair
price increases – in
line with rising raw
material and labour
costs – are passed
down the chain,
from us as the
manufacturer, to our
dealers and in turn, to
the end user
❞
Will the end user benefit
from the fair price
increases?
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C M Y CM MY CY CMY K
O n e - o n - O n e • 1 7
O n e - o n - O n e • 1 7
Childrenlovetoblowtheirseedsintothewindandrabbitsthinkthey
areagourmetdelight.Nowdandelionshavearoused the interest
of the rubber industryaswell.A research teamat theUniversity
ofMünsterhasstudiedthelatexinthemandcometoanamazing
discovery.Dandelionsproducegumelastic–equal inquality to
rubbertreelatex.Thiscouldmakethewildherbamajorsource
of rubber in the future. Auto parts supplier Continental AG in
Germany has latched onto these lab results. The firm is now
hardatworkbringingthis ideaforward. It isamemberinthe
consortium of research institutes and industry partners that
intendtotransformtheideaintomarketproducts.
Thetyreindustryviewsthelatexindandelionsassomething
they can use in place of rubber tree latex. This would
solve a major global problem. Nowadays natural rubber
comesfromthelatexoftherubbertree.Grownmainlyin
SoutheastAsia, thistreeharborsanumberofproblems.
Worldwidedemandexceedsthesupply.What’smore,a
fungalinfectionthreatenstherubbertree.
There are also supply issues with synthetic rubber in
that petroleum supplies have an impact on synthetic
rubber.Worldmarketpricesforthisrawmaterialalso
varygreatlyovertime.
Dr. Dirk Prüfer, professor at the Institute of Plant
Biology and Biotechnology at the University of
Münster in Germany, confirms the quality of
dandelions.
rabbit Feed a source of rubber?
DandelionsHoldtheKey!
“ThefirstresearchresultsclearlyshowRussiandandelionstoproducea
high-qualitynaturalrubber.Itsphysicalandchemicalpropertiesmatch
upwellwiththoseoftheBrazilianrubbertree.
“Growerswouldhavetoplantdandelionsonalargescaleifindustryis
tobeabletousethemtoproducenaturalrubber.Ihopethatdandelions
willsoonnumberamongGermany’scropplants.Itistheirdue.”
Biochemistshavefoundtheenzymethatgovernspolymerizationofthe
plant’slatex.Theyhavemanagedto“switchoff”thisenzymesothatthe
latexcannowflowfreelyandbesiphonedofftheplant.Thatisamajor
stepforward.
“Rubber makes up much of tyre. Forty one per cent of the
ContiPremiumContact 2 passenger tyre, for instance, is rubber,”
confirms Rene Olivier, spokesperson for Continental Tyre in South
Africa.
Researchersfeel thatdandelionscouldsomedaysupplyatenthofthe
Germanrubberdemand.
“This project is of great interest to material development,” adds Dr.
Boris Mergell, head of Tire Material and Process Development &
IndustrializationatContinentalAG.
“Successinmakingdandelionsasourceofnaturalrubberwouldenable
ustorespondatrathershortnoticetosupplyshifts.Afterall,theplant
needsonlyoneyear fromseeding toharvest.Fromthecuttingof the
firstsodtotheharvestingofthelatex,settinguparun-of-the-millrubber
plantationrequiresroughlyfivetosevenyears,”headds.
Researchprojectideacitedforitsfuturepotential
I n d u s t r y N e w s • 1 7
©iStockphoto.com/iSci
While you enjoy the wide open road...
www.continental.co.za
Because the way to travel is without the excess baggage of worry, especially where your tyres are concerned.
Travel light with ContiPremiumContact™ 2 tyres.
We’ll be preparing for the next stop.
E+I
154
37
N e w P r o d u c t • 1 9
conTInenTAL Treads new Ground– enter the contiecocontact 5 AnD contisportcontact 5
Thepicturesquecoastlineof theAlgarve
inPortugal,wasthemagnificentbackdrop
forthelaunchoftwoimpressiveproducts
forthepassengertyresegmentthisyear,
courtesy of Continental Tyre. The tyre
makerassuresremarkableimprovements
in rolling resistance and wet and dry
braking performance courtesy of a new
casing, compound, tyre contour and
treadpatterndesign,elementsthatreflect
considerableprogressonthepartof the
company’styreengineers.
The first of the two products,the new ContiSportContact 5, (both
products are fully patented) is suited to sporty cars and SUVs with
sporty driving characteristics, and is the culmination of extensive
researchandamultiplicityoftestsduringthedevelopmentstage,allof
whichtranslateintoamarkedreductioninbrakingdistanceonbothwet
anddryroads.Inaddition,rollingresistanceiscutbyover10%while
mileage performance is enhanced by 13%. These improvements are
due inparticulartothetyre’s innovativecompoundwhich isdesigned
to achieve maximum transmission of forces when braking and low
rollingresistanceduringnormaldriving.Todothis,therubberformula,
referredtoasBlackChilliCompound,utilisesthedifferentvibrationsof
the tyre. Black Chilli Technology is a specially developed compound
technology involvingan innovative typeof racinggradecarbonblack,
which ensures a speedy warm-up process and greater stability. The
polymers inthecompoundarereinforcedwithnanoparticles,making
themextremelysupple.Thustheyprovidemorecontactpointswiththe
road,sogripissubstantiallyenhancedandthetyrefarmorestable.In
addition,specialgripresinsprovideoptimuminterlockingwithbothwet
anddryroads,thusachievingshorterbrakingdistances.
2 0 • N e w P r o d u c t
intermsofallthetyreelementsinvolvedinordertoachievethehighlevel
ofprogressattainedwhencomparedwiththetyre’spredecessor,butthe
resultsspeakforthemselves.Theymanagedtoreducerollingresistanceby
20%increasedmileageperformanceby12%,whilststillmanagingshort
brakingdistancesonwetroads.Andaccordingtothem,acarfittedwith
the new ContiEcoContact 5 will use around 3% less fuel than the same
vehicleequippedwithstandardtyres–anunbelievablesavingbyanyone’s
standards!
Modular Zone Technologies
OnewayinwhichContinentalhasgoneaboutachievingtheseremarkable
improvements is via the use of Modular Zone Technologies whereby
engineers concentrate on developing each different zone – rigid zone
(bead), flexing zone (sidewall), load zone (tread pattern) – separately,
based on their respective functions and demands. This appears to be a
revolutionaryapproachtotyredevelopmentandoneuniquetoContinental
Tyreatthispointintime.
Added to this, the latest simulation technologiesarenowplayabigger
rolethaneverbeforesoastoensurethatallthevariousfunctionsinteract
witheachothersuccessfully,anapproachwhichissaidtoacceleratethe
developmentprocess.
Putting it to the test
In an effort to prove these newfound claims surrounding their new
Themanufacturerfurtherclaimsimprovementsintyrehandling,whichthey
saycannowdeliveranevensportierperformancethanitspredecessor.
Thesecondproduct, theContiEcoContact5 iseco-friendlyandalsohas
enhanced safety at the core of its development. Historically, combining
shortbrakingdistancesonwetanddryroadswithlowrollingresistancehas
beenconsideredadevelopmentalchallengefortyrecompanies.However,
this latest offering fromContinental resolves thisproblemwith apparent
ease.Granted,thecompany’styreengineersdidhavetotreadnewground
Continental is claiming a marked reduction in braking distance on both wet and dry roads.
N e w P r o d u c t • 2 12 0 • N e w P r o d u c t
products,Continentalinvitedmotoringjournalistsfromacrosstheglobe
to Europe, to attend the unveiling of the new ContiEcoContact 5 and
ContiSportContact5inearlyApril.
Membersofthepressflewinfromallfourcornersoftheworld,including
SouthAfrica.NoexpensewassparedonthepartofContinentalinputting
togetheraneventthatvisiblydemonstratedtheremarkablepropertiesof
thecompany’slatesttwoadditionstoitspassengertyrestable.
Usingsomeofthelatestelectronictechnologyandequipmentavailable,
theContinentalmanagementteamsetouttocreateaseriesofdifferent
drivingscenariosfortheguests,exercisesthatprovidedconcreteproof
that the claims being made had substance. We were put through our
pacesvia theuseof special technology that is able tomeasuredriving
style and performance as well as fuel economy. Individual driving data
wastransmittedandsavedontoaspecialmicro-chipthatwasequipped
to connect to the vehicle during the course of some of the exercises,
particularly those that measured wet braking and fuel economy.
Moreover, the large fleet of vehicles secured for the day, was shod
with the new products as well as their predecessors, with the guests
encouragedtodrivebothintheinterestsofattaininganaccuratepicture
ofthecapabilitiesofthenewtyres.
Sufficeittosay,onecouldn’thelpbutbeimpressed.Hereisacompany
thatispreparedtogotosurprisinglengthstoproveitsclaims,andprove
themitdid-therewasnodenyingtheimprovementsofthenewofferings
versus theirpredecessors.Wecouldseeand feel thedifference.More
important, thedatachipwithwhichwewereeachfurnishedandwhich
stored this telling information was testament to the tyres’ remarkable
features.
Clearly,ContinentalTyrehasmadehugeinroadsindevelopingtyresthat
cater not only for the motoring enthusiast, but for the cost-conscious
consumeraswell.
LookoutforthenewContiEcoContact5andContiSportContact5which
is expected to reach South Africa in the last quarter of 2011 and will
beavailableinselectedsizes(ContiSportContact–205/50R17,215/45
R17,245/35R18.
The international press put the new tyres to the test.
POWER IS NOTHING WITHOUT CONTROL
F1 teams made a choice.
pirelli. oFFicial tyre supplier F1.
pirelli.co.za
Pirell2011F1_210x280.indd 1 2011/03/04 12:23 PM
N e w P r o d u c t • 2 3
19Maywasanexcitingdayon thecalendar forPirelli
SouthAfrica.AtNixon(CradleofHumankind),theItalian-
based tyremaker introduced itsfirsthigh-performance
eco tyre for the SUV market. Aimed specifically for
vehicleswiththehighestenvironmentalimpact,thenew
ScorpionVerdehasbeencreatedtakingfulladvantageof
allofPirelli’slatestresearchaswellasadesignsystemthat
integratesnewmaterials,structuresandtreadpatterns,in
ordertoguaranteesavings,respectfortheenvironment,
comfort, and safety on all road surfaces. The new
Scorpion Verde complete’s Pirelli’s range of Scorpion
tyreswhichalready includes theATR for4x4sand the
Scorpion Zero, developed for more high performing
SUVs. Specifically created for the latest generation in
SUVsandCrossovers,suchastheVolkswagenTouareg,
whichhasalreadychosenitasitsoriginalequipment,the
ScorpionVerdemarries technologywithecologysoas
toachieveitstwo-foldobjective:tocontributetostability
whilst consumption among all categories of SUVs and
Crossovers;toensuresafetyandcomfortforthedrivers
of such vehicles, since they have demonstrated the
greatestpropensityforecologyamongmotorists.
Boasting new materials as well as a new structure that guarantees steady
performance throughout the tyre’s useful life in terms of diminishing
noxious emissions, noise reduction, running economy, shorter braking
distances and comfort, the Scorpion Verde allegedly promises a host of
benefits,amongthem,savingsanddurability.All itsecologicalfeaturesare
apparentlyguaranteedbyacombinationoffactors:thedevelopmentofan
optimised profile; the use of cutting-edge materials, an optimised design
processandreducingenergydissipation.Thesefeaturesaresaidtoprovide
adrop in rolling resistanceequal to20% in total,allowing forcutbacks in
bothconsumptionandnoxiousemissions.And the tyre is lighterandhas
beendesignedtouse10%fewerrawmaterials,thereby
decreasingitsenvironmentalimpactperunitproduced
bythesameamount.
Inshort,theScorpionVerdeconsolidatesPirelli’sGreen
enTer THe scorPIon VerDePIRELLI’SFIRSTECOTYREFORSUVs
Performance, the technology developed by Pirelli tyre
laboratoriesthatfocusesonecologyandroadsafety,or
–inotherwords–sustainablemobility.
That being said, the tyre maker claims that having an
ecologicalheartdoesnotmeansacrificingperformance,
particularly in terms of safety and comfort. As such,
Scorpion Verde allegedly combines ecological features
withimprovedbraking,greatertractiononwetsurfaces
andbetterhandling.Anumberoffactorshavecontributed
totheseresults,suchasthenewmaterialsitusesinits
compounds, which integrate the latest technologies;
nano compounds, that is, cutting-edge polymers that
adapt to various road conditions; and hybrid fibres,
which combine different materials to achieve diverse
performance.
outlasting the competition
IntruePirellifashion,PirelliSAchosetointroducetheir
latestofferingtomembersoftheSouthAfricanpressin
afun,albeitunorthodoxmanner.Afterbeingwelcomed
by Pirelli SA MD, Gianluca Renato who explained the
rationalebehindthedevelopmentoftheScorpionVerde,
andhighlightingthetyre’sfeatures,themediawassplitintoteamsoffourand
putthroughavarietyof‘Survivor’challengestocoincidewiththethemeofthe
launch–TheScorpion’sTale.
Theteamswererequiredtoundergoaseriesofchallengesforwhichpoints
were awarded. Challenges included: igniting a fire using rubber sticks; an
archery challenge; and negotiating an obstacle course while blindfolded.
Each teamwasprovidedwithavehicle (shodwith thenewScorpionVerde
of course!), a map and a series of clues. Using these they had to drive to
designatedlocationscollectingvarioustoolstheyneededtochangeatyreat
theirfinalchallenge– thePitStopChallenge.Theywere timeandawarded
pointsbasedonhowfasttheycouldchangeatyre.
Eachmemberofthewinningteamreceivedatrophyas
wellasavouchertoselecttheirchoiceoffootwearfrom
thePirellipZeroFashionCollection.
COMPETITIONTurntoPage48fordetailsonhowto
winasetofScorpionVerdetyres.
Moreover, the Tubestone ship is steered by a group of brilliant men.
NavigatingtheteamresponsibleforthesuccessthatisTubestone(Pty)
LtdarePieterKruger,MD,andDirectorsAlexFriedman, JeffWessels,
PaulHowardanduntilthreeyearsago,thelateMichaelLusman.
And then there’s their exciting product
range. Presently, Tubestone is associated
withtwoworld-classtyrebrands–BKTand
Nankang.
BKT is one of the world’s leading
manufacturers of ‘Off Highway Tyres’
andboasts thewidest product range with
more than 1 900 stock keeping units.
This Indian-based manufacturer takes
greatprideinbeinga‘OneStopShop’for
all off-highway tyre
solutions, with more
than 90% of total
tyre production being
exportedtomorethan
120 countries across
allfivecontinents.
Equally, Taiwan-based
Nankang Rubber
Tire is supplying
Tubestone with its
passenger tyre range boasts
a long history as industry
leader in quality, reputation,
research and development
and production capabilities,
a reputation that has earned
it commendation by clients
and industrial players alike, on
homesoilandabroad.
SaysPieterKruger:“It iswithgreatpride thatwecelebratedour10th
Year Anniversary in April. Tubestone has achieved the impossible.
Withhardwork,determination,aloyalcustomerbase,andexceptional
management and employees, we’ve grown and developed into a
companytobereckonedwith.
“It’sveryexcitingtoenvisionwhatTubestonewillbeabletoachievein
anothertenyears!”
Aprilofthisyearmarkedanimportantmilestoneforadistributioncompany
that has its roots in humble beginnings. Tubestone is the brainchild of
founder and present MD, Pieter Kruger, who saw an the opportunity to
establishadistributioncompanythatwouldbecomeknownforrepresenting
someofthebesttyresandtyrerelatedproductstheworldhastooffer.
Thedoorsopened for tradingonApril2,2001with the
companyimportingtubesandflaps.Beforelongtherange
was extended to include OTR, Industrial, Agricultural,
Implement,TruckandPassengertyres.
OnlyfivemonthsafterthefirstoutletopenedinCapeTown,
another followed in Johannesburg. The Durban branch
openedin2002,withBloemfonteinfollowing inOctober
2004. Three years
later, in 2007, Port
Elizabethwasaddedto
themix,withWindhoek
and Harare following
closely behind. Very
soon, Tubestone will
also open a branch
in Botswana, thereby
providing a complete
service offering to
South Africa’s most important
neighbouringcountries.
According to the staff, a unique
characteristic that defines
Tubestone is the ‘Family’ feeling
which Pieter has endeavoured to
create within the company. Every
staffmemberisdeemedimportant
andisproudtobeassociatedwith
thecompany.
“Thismanifestsinallinteractionsandcommunicationwithinthecompany
and its loyal customers,” claims Yolandi Donaldson, Marketing Manager.
“Ourcustomersaretreatedlikerespectedfriendsandtheycanbecertain
thatwewillalwaysgotheextramileforthem.”
Allegedly,Pieterpainstakinglyselectedhisteamonebyone,asawayof
ensuring that thecompany is runby thebestpossiblegroupofpeople,
individualswhoarenotonlyeducatedintheirrespectivefields,butarealso
loyal,dedicatedandgoodhearted.
TUBESTONECELEBRATES10YEARSOFSUCCESSFULTRADING
2 4 • I n d u s t r y N e w s
Nampo Show – Susan and Elize.
Mr Pieter Kruger and Mr Alex Friedman.
Some of the ladies from the Cape Town Branch Team.Julie, Wendy, Marizanne, Reinette and Elize.
Windhoek Branch Team.Karin, Philemon, Francois, Lukas and Annemarie.
Electra Mining Show.
Africa'12 210x280 Ad:Layout 1 8/3/11 21:59 Page 1
Infinity tyres. Bred to be better.There are tyres. Then there are Infinity tyres. Designed specificallyto meet the demands of your customers’ lives, their unfailingsafety, dependability and performance mean they’re the naturalchoice for every motoring situation.
Not all tyres are created equal.
Infinity tyres. Bred to be better.There are tyres. Then there are Infinity tyres. Designed specificallyto meet the demands of your customers’ lives, their unfailingsafety, dependability and performance mean they’re the naturalchoice for every motoring situation.
Not all tyres are created equal.
2 8 • M a n u f a c t u r i n g
35969 Gala Congrats Ad_DSK.fh11 26/5/11 09:27 Page 1
Composite
C M Y CM MY CY CMY K
I n d u s t r y N e w s • 2 92 8 • M a n u f a c t u r i n g
Close on 600 esteemed guests attended a glittering banquet at
thePalaceof theLostCity inMarch tocelebrate thesuccessof
the dynamic Dunlop Zone precision fitment concepts. Global
manufacturing giant Apollo Tyres (owner-manufacturers of the
Dunlop tyre brand in South Africa) and local subsidiary Apollo
TyresSouthAfricabroughttogetherover200DunlopZonedealers
fromSouthAfricaandneighbouringcountriestoattendahigh-key
eventthatrecognisedtheachievementsofindividualdealerships.
A NIGHT TO REMEMBER!APOLLOAWARDSEVENING
CELEBRATESDEALERSINGRANDSTYLE
(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International), Graham Lessing (Fit-Rite Mthatha), Quentin Lessing (Fit-Rite Mthatha) winners of the inaugural Apollo Tyres Chairman’s Award, Neeraj Kanwar (Managing Director Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).
(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Kleintjie Jooste (Malamulele Tyre & Exhaust) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).
(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Cloete Mdlokovana (Mdlokovana Motor Spares &Tyres) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).
A delighted Quentin Lessing celebrates winning the overall Apollo Tyres Chairman’s Award, the first time this prestigious trophy has been awarded.
Cloete Mdlokovana of Mdlokovana Motor Spares & Tyres, Mafeteng, Lesotho receives his regional Chairman’s Award from Onkar S Kanwar (Chairman Apollo Tyres International) while Dr Luis Ceneviz (CEO Apollo Tyres South Africa) and Neeraj Kanwar (Vice Chairman Apollo Tyres International) look on.
(From left) Dr Luis Cenéviz (CEO Apollo Tyres South Africa), Mr. Onkar S Kanwar (Chairman Apollo Tyres International, Andre Roux (Auto Tyre & Exhaust) winner of the regional Apollo Tyres Chairman’s Award, Neeraj Kanwar (Vice Chairman Apollo Tyres International) and Georg Schramm (Head of Sales and Channel Development of Apollo Tyres South Africa).
O n e - o n - O n e • 3 13 0 • I n d u s t r y N e w s
Dubbed‘ANighttoRemember’,theeventwas
attended by senior executives from Apollo
Tyres Limited and invited dealer principals
fromover15countriesinLatinAmericaand
Africa.Thehighlightoftheeveningwasthe
presentationoftheinauguralApolloTyres
Chairman’sAwardstothetopperforming
Dunlop Zone dealership in each region
byApolloChairmanMr.OnkarS.Kanwar,
withthewinnerreceivingtheprestigious
Chairman’s Award Trophy and a 5-star,
allexpensespaidtriptoIndia.
The recipient of this highest honour
was Fit-rite, Mthatha.
Commenting on their achievement,
OnkarS.Kanwarsaid:“Webelievethatour
dealers are the backbone of our business.
It is their strength, loyalty and commitment
to excellence that has driven our business
success. The efforts of people like Quentin
Lessing and his team have helped us grow
froma$500millioncompanywhenweentered
South Africa five years ago, to the $2 billion
companyweare today.Fit-Ritehasexceeded
the most stringent criteria to be the richly
deservedwinnersofourinauguralChairman’s
Award. Congratulations to Quentin, his staff
andtheirloyalcustomers.”
The award for top Gauteng tyre dealer went
to Auto Tyre & Exhaust of Menlyn Pretoria,
followed by an award for top Mpumalanga
tyre dealer, which went to Malamulele Tyre
& Exhaust in Malamulele. The neighbouring
countriesalsofeaturedwithMdlokovanaMotor
Spares&TyresofMafetengbeingawardedtop
Lesothotyredealer.
After the formalities, the award winners,
dignitaries and guests partied the night away
tothesoundsoftheJonnyCooperOrchestra,
oneoftheworld’sleadingbigbandswhowere
joinedonstagebyguestartist,IdolsfinalistLize
HeermantocreatetheGlennMillerSoundand
bringwhatwascertainlyANighttoRemember
toaclose.
JUDGING CRITERIA:TheDunlopZonestoreswerejudgedontwoprimaryareas:
Business GrowthNetturnovergrowthGrossprofitgrowthAdherencetoterms
Branding standard requirementsMysterycallersGhostphoningZonestorestandards
The M.C for the evening was radio personality and sports announcer Sureshnie Rider
Apollo Tyres International Chairman Onkar S Kanwar welcomes guests
Georg Schramm, Head of Sales and Channel Development for Apollo Tyres South Africa announces the regional Chairman’s Award.
The Jonny Cooper Orchestra in full swing with special guest and Idols finalist, Lizé Heerman
Idols finalist Lizé Heerman belts out the big band classics with the Jonny Cooper Orchestra at the inaugural Apollo Tyres Chairman’s Awards
O n e - o n - O n e • 3 1I n d u s t r y N e w s • 3 1
Corne & Frik Smith; Jorien & Johan Jacobs and Martin & Marthea Smith all of Northgate Tyres
Mahomed Moola – Khans Tyres; Ebrahim & Khatija Mohamed – Marlboro Tyres; Faried & Fatima Khan and Khalid & Nurisha Khan and Aziz Parker – Tyreman
Paula & Greg Robertson and Dusty & Neil Robertson – Wheel & Steel
Debbie Martin – Apollo Tyres and Stoffel & Renee Olivier – Tyre Sure
December & Nellie Mlambo – Zibandlela Tyres
Bennie Xu, Cloete & Nosanete Mdlokovana (Mdlokovana Motor Spares & Tyres)
Anita McCallaghan & Herman Hugo (Apollo Tyres)
Jannie Serfontein – Apollo Tyres; Mohammed Makda – Apollo Tyres and Michael van der Merwe – Apollo Tyres
Hisham Layahi, Tsiti Mombeshora and Gary Treherne – Apollo Tyres
3 2 • C o n t i C o r n e r
ContinentalTyreSAlauncheditshighlyanticipatednewgenerationtruck
tyrestothemarketinthefirstquarterof2011.Accordingtothecompany,
thenewproductrangefeaturessomeofthelatestinnovativetechnology,
alongside theadvantagesof theirnewly-patented ‘Airkeep’ technology
whichpromisestoreducetheincidenceofon-roadbreakdowns.Four
monthshavepassedsincethenewcommercialrangewasunveiledto
thepress,distributionnetworkandendusertrade.Wecaughtupwith
BrianClarke,GMCommercialVehicleTyresforContinental,tocheckon
theprogressofthenewtyresandgainsomeinsightintoContinental’s
aimsandambitionswherethecommercialmarketsectorisconcerned.
continental’s share of commercial segment set to escalate
C o n t i C o r n e r • 3 3
Brian, thank you for meeting with us. Your presentation to the market
a few months back ably demonstrated your complete confidence in the
new product range. Will the full product line be manufactured locally,
and if so, is the range already in circulation?
Itisourstrategytohaveasmanyproductsaspossiblelocallymanufactured
andyes, I’mpleasedtoreportthatmostofthenewgenerationproducts
areavailablealready.
We believe the initial testing process is well underway. What kind
of feedback are you getting or is it too early for you to obtain any
meaningful results?
TyretestinghasbeeninprogresssinceJanuary2010andagain,I’mpleased
tosaythattheresultssofarareimpressive,bothwithrespecttomileage
andfueleconomy.
How do you intend achieving market penetration for this new product
range?
Acombinationofbothaboveandbelow the lineadvertisinghasalready
commencedaspartofourstrategytoimproveourvisibilitytotheenduser.
Overandabovethis,inrecentmonths,wehaveimprovedourOEpresence
significantlyandarealsoplanningtoboostsalesinthereplacementsector
viaourloyaldealerchannel.
The ContiPartner programme traditionally concentrates on the passenger
tyre segment. How do you intend bridging the gap?
ContiParter is primarily a passenger tyre channel but there are many
ContiPartneroutletsthatonlyspecialiseintruck….TonwayTyresinRosslyn
isbutoneexample.WherenoContiPartneroutletsexist,wehaveseveral
KwikfitandindependenttyredealerssuchasthelikesofTyres2000,Auto
&TruckorTyrecorptofallbackon.Theyarewellequippedtosupportusin
thecommercialtyresector.
What about after-sales service, such as on-site tyre maintenance. Do you
currently offer this service and if so, through whom?
Continentalhasalwaysprovidedafter-salesservicethroughaspecialised
sales forceandcustomerservicedepartmentdirect to theenduserand
dealerchannel.Asforanon-siteservice,at thispointwepreferto leave
theservicing to theexperts.Our job is toprovidea topqualitynewtyre
throughthem.
Thatbeingsaid,itispossiblethatinthefuture,ContinentalSAwillbeina
positiontosecurecontractsonbehalfofitssaleschannels.
How would you go about encouraging a greater number of ContiPartner
stores to become more involved in the commercial market?
Oneoftheprimaryreasonswhymanytyredealersarereluctanttoenter
the truck tyre market is the risk. Bad debt is a problem in most B2B
industriesandtyresarenoexception.However,fordealerswithgoodrisk
management systems in place, the rewards are well worth it. Effectively
servicing andmeeting theneedsof endusers in the commercial sector
canmakeforprofitablebusinesses.Continentalsupportsmanyofthese
successful truck tyre businesses and we are confident that our new
generationtyreswillbenefittheirbusinessesevenfurther.
The market has changed with the commercial sector expecting an
entire sales package, one that encompasses new tyres, retreads, on-
site maintenance, on-road servicing and the like. Do you believe that
Continental, through its preferred dealer network, is equipped for this
task, and if not, what must be done in order to achieve this?
The market is far from homogeneous. Some transporters we speak to
require only the cheapest tyre possible, while others take a more long-
termapproachto theirfleets.The ‘cheap tyre’market isnotourmarket.
Similarly, the dealer network differs in its ability to supply the various
servicesrequired.Continentaldoesnotofferaretreadsolutionasyet,but
weareintheprocessoffinalisingacradle-to-gravepackage.Thefirststep
was to improve the coreproduct.Now that this hasbeen done, further
developmentsinthisregardwillsoonbeannounced.
What are your immediate areas of focus not that the product has been
officially released?
Ourimmediatefocusistoensurethatthequalityoftheproductisthesame
astheEuropeanequivalent.Thenextfocusareaistoreleasethebalance
of product that has yet to be introduced to the market. And of course,
simultaneously,weareconcentratingonmakingthemarketawareofthe
featuresandbenefitsofournewrange.
What do you believe is the biggest challenge facing Continental Tyre SA
in its quest to strengthen its position in the SA commercial tyre market?
Continental does not have unique challenges. I believe that all tyre
companiesinSAfacethechallengeofrapidlyincreasingrawmaterialand
inputcosts.Addedtothat,theinfluxoflowpricedimportedtyrescontinues
to threaten local manufacturer market share and employment, not to
mentiontheissueofavailabilityofhumanresources–thishasbecomea
seriousareaofconcerninrecentyears.
Overall,Ibelievethattimelyinvestmentinanewtruckrangehaspositioned
Continentalwelltostrengthenourposition,whichdoesnotimplythatwe
cannowrestonourlaurels.Continuousdevelopmentwillberequiredto
maintainandgrowmarketshare.
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B a n d a g N e w s • 3 5
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T a l k i n g T y r e s • 3 7
Is the age-old motorsport adage of win on sunday, sell on Monday still relevant?
If so, why aren’t tyre manufacturers exploiting the racing spirit?By colin Mileman
WinonSunday,sellonMonday
TYRES in motorsport
In the good old days of motorsport, it was a fairly straight-forward
formula: win races on Sunday (or Saturday for that matter), and it
translatedintogenuinesaleswhenthedoorsopenedonMonday.
Afterall,that’swhyanyvehiclemanufacturerorsponsorgotintothe
sport. Itwasn’t simply for the loveof racing (although thatplayeda
crucial role), but was used as a high-profile, high-paced marketing
exercise.
Andifyourbrandtookthechequeredflagontheday,theideaisthat
itwouldbeseentobethebest,thusgeneratingshowroomtrafficand,
ultimately,increasedsales.
Asfarasmodernmotorsportisconcerned,it’scertainlynotisclear-cut
asthatanymore.Thetechnologyrevolutionhasensuredthatthere’s
a veritable plethora of racing action across all corners of the globe
availableatourfingertips–whetherit’sonsatelliteTVortheInternet.
Theenthusiaststhatwouldbeinterestedintheaction-packedracing
areusuallywellinformedonthelatestandgreatestfromthemotoring
world, and what wins races, where and when, from the high-flying
worldofFormulaOnetothelocalProductionCarchampionship.
Certainly then, they’re not going to be that easily bamboozled into
chargingfortheclosestdealershipshouldaparticularbrandtakethe
silverware for theday.Furthermore,motorsport (especially the local
variety) has to compete with so much other sporting action every
weekend,andno longerdraws the largecrowds itused to– takea
lookbackat the imagesofKyalami10,20,30yearsago,andyou’ll
seewhatImean.
Yet motorsport still seems to be a major drawcard for vehicle
manufacturersandsponsorsalike.Why,then,don’tweseethespirit
of motorsport filtering through in terms of off-track marketing and
advertising?
On the tyre front, Pirelli is the sole supplier to Formula One,
BridgestonesuppliestheSAProductionCars,Continentalisinvolved
intheVWPoloCupandGoodyearprovidestherubberforthemighty
WesBankV8s.
Didyouactuallyknowthat?Andwhenlastdidaracingadvertisement
O n e - o n - O n e • 3 94 8 • G o o d y e a r N e w s
catchyoureyeonthe‘box,orinamagazine?Itrarelyhappensthesedays.
IcanfondlyremembertheFirestonemotorsportadvertsfromtheNineties,
whichcapturedthespiritandenthusiasmofthe‘bratpack’GroupNyears.
OrtheGoodyearadsclaimingitsrecord-breakingrunofF1victories.We
needtorekindlesomeofthatpassionandexcitement.
Yet it’s incredibly hard to do when competition
has effectively been ruled out of the game, due
totheadoptionofsoletyresuppliersfordifferent
categoriesof the sport. It’s veryhard, and rather
irrational, tobrag aboutwinningwhenyou’re the
onlycompanycompeting.
I can understand the logic of using a single
tyre supplier, as it levels the playing ground –
particularly for a one-make racing series. Also,
howmanyF1battleshavegonedowntothewire
withtheacknowledgementthatitcouldhavebeen
different if the losing teamhadbeenondifferent
rubber?
However,youcouldthenarguethatallthedrivers
shouldbeinthesamecarsusingidenticalengines,
gearboxes, suspension and matching tyres. But
then there would be no reason for the various
manufacturerstoputtheirbadgesonthebonnet,
ordigdeepintotheirbudgetstodoso.Itwouldbe
likethelarge-scaleequivalentofaScalextrictrack,
andwouldall comedown to thepersonwith the
thumbcontrol,i.e.thedriver.
Isaybringthecompetitivespiritbackandallowthe
tyrecompanies to thrash itout.Give thewinners
theopportunityandplatformtoboastaboutit.Competitionisagoodthing,
asitdoesadvancethegame,bothforthesportandtheresultantroadtyre
technology.Afterall,there’snothinglikecompetitiontodrivedevelopment.
For example, Chevrolet recently introduced new Michelin Pilot Sport
CupZeroPressure(ZP)tyresasoptionalequipmentonthenew377kW
ChevroletCorvetteZ06andthe476kWsuperchargedZR1.Accordingto
3 8 • 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.
Michelin, these are essentially competition-oriented tyres optimised for
corneringgripandprecisionhandling.
Interestingly,theyweredevelopedbythecompany’sengineersresponsible
forthetyresusedbytheCorvetteracingteamcompetingintheAmerican
Le Mans Series. The marketing material indicates that these street-legal
versions of the race tyres are capable of improving lateral acceleration
by up to eight percent to around 1.1 G, while
also significantly shortening brake distances. An
independenttestatthe5,26kmVirginiacircuitin
theUSindicatedanimprovementof3secperlap
overthestandardtyre–whichisimpressive.
Specialisedsemi-slickrubbercanalsobefoundon
thelikesoftheBMWM3GTS,Porsche’sGT3and
GT2RS,varioustrack-orientedLotusmodels…and
manymore.Whilehardlysuitableforunpredictable
everydayuse,thesetyresaretangibleproofofthe
directtransferofracetechnologytotheroad.
So theevidence is there– tyrecompaniesaren’t
investing huge amounts of money just for the
goodwillandprosperityofmotorracing.Thereare
genuinebenefits in termsof the lessons learned,
and the technology transfer that results, filtering
rightdowntoentry-leveltyres.
Certainly, the brands that do participate in
motorsporthaveabolder,moreobviouspresence
tothehard-coreracingenthusiast.
I justbelievemoreshouldbedonewithit–bring
backtheexcitement,theglamour,thepassionand
theintriguingcharactersthatmademotorracingso
popularinyearsgoneby.
Thetyrecompaniesdon’tnecessarilyhavetogiveuptheirexclusivestatus
(althoughIthinkitcouldbeagoodthingiftheydid),buttheyshouldmake
betteruseofmotorracingasthehigh-adrenaline,action-packedmarketing
platform that it is. Make it more widely appealing, and motorsport will
benefittoo.
❝
On the tyre front, Pirelli is
the sole supplier to Formula
One, Bridgestone supplies
the SA Production Cars,
Continental is involved in the
VW Polo Cup and Goodyear
provides the rubber for the
mighty WesBank V8s.
Did you actually know that?
And when last did a racing
advertisement catch your
eye on the ‘box, or in a
magazine? It rarely happens
these days.
❞
O n e - o n - O n e • 3 9
Blacktech X 12/6/10 3:00 PM Page 1
Composite
C M Y CM MY CY CMY K
4 0 • G o o d y e a r N e w s
GooDyeAr’s AsTonIsHInG neW eAGLe HAs LAnDeDWhen driving, it pays to be prepared for the unexpected. You’ll be thankful for a lifetime.Goodyear’sbrandnew,remarkablyinnovativeEAGLEF1ASYMMETRIC2tyre–with
pioneeringActiveBrakingtechnologythatdeliversupto3metresshorterstopping
distance–hasjustbeenlaunchedinEuropetointernationalapplause.Andithasjust
landedonSouthAfricansoiltoo.
When it comes to road safety, split seconds can make all the difference.
That’s why Goodyear is proud to introduce new Eagle F1 Asymmetric 2
with revolutionary ActiveBraking Technology, an exceptional Ultra High
Performance(UHP) tyre thatdeliversseriously improved,shorterstopping
whenyouneeditmost.Designedtosurpasseventheindependentlytested
achievementsofitslegendarypredecessor,GoodyearEagleF1Asymmetric,
thisnewEagleisaprimeexampleofhowinnovationandaquesttocontinually
improveautomotivesafetyhasalwaysdrivenGoodyearfurther.
enGIneereD For sAFeTy
EagleF1Asymmetric2hassetnewstandardsindryandwetperformance,
handlingandbrakingintheUHPtyresegment.
New Goodyear Eagle F1 Asymmetric 2 incorporates tyre technology designed to save lives, with an impressively shorter stopping distance in wet and dry surface conditions.
The Eagle F1 Asymmetric 2 was launched at an international Goodyear brand event in Seville, Spain. Dubbed ‘The Ultimate Goodyear Experience’, it showcased Goodyear’s spirit of innovation and guests enjoyed maximum driving time on the new tyre, both on road and on the nearby Monteblanco racetrack.
G o o d y e a r N e w s • 4 1
The engineering, briefly, of ActiveBraking Technology is such that it
increases the road contact patch of the tyre during braking. While
conventional tyreblocksshow littleorno transformationduringbraking,
the blocks in the Eagle F1 Asymmetric 2 are designed to develop more
surface under braking load and therefore increase the tyre-to-surface
contactarea.Thelargercontactpatchoffersincreasedgrip,whichinturn
leadstoshorterstoppingdistances.
TÜV TesTeD
TheEagleF1Asymmetric2wasextensivelytestedbytestingorganisation
TÜVSÜDAutomotiveat tracks inFranceandGermany.TÜV isa leading
independent partner to the automotive industry, providing consulting,
testing and certification services in the field of innovative product and
processimprovements.
The new tyre performed exceptionally well during testing, delivering a
life-saving three-metre shorter braking distance on wet roads compared
totheaverageperformanceofthreeleadingcompetitors.WhentheEagle
F1Asymmetric2hadcometoafullstop,thecompetitorstestedwerestill
travellingatanaveragespeedof24kilometresperhour!
Thetyrealsoperformedwellindrybrakingandhandlingtests,stoppingtwo
metresshorter than thecompetitors.Plus, theTÜVSÜDtestsconfirmed
that theEagleF1Asymmetric2delivers top-classrollingresistance in its
category,7%betterthanaverage.
HAnDLInG PrecIsIon
The Eagle F1 Asymmetric
2 features a crossed plies
carcassstructureandanewtreadcompoundusingauniqueblendof
polymers,ahigh levelofsilicaandracetractionresin–bothofwhich
contributetoexcellenthandling,steeringandbrakingperformances,aswell
asincreasedlevelsofadhesiontoroadsurfaces.
The tyre’s lighter weight also contributes to better dry handling, as the
vehicle’s consequently reduced mass enables the tyre to follow surface
contoursmoreclosely.
“Itisimpossibletobepreparedforeveryeventualityontheroad,butwith
thenewEagleF1Asymmetric2,whenitcomestobraking–whereevena
splitsecondandafewcentimeterscanmakeallthedifference–consumers
canfeelbetterpreparedfortheunexpected,”saidRobertHarris,Goodyear
South Africa Product Manager: Consumer and Commercial Tyres, who
attendedthetyre’sinternationallaunchinSpainrecently.
BLAcK eAGLe Is Green
ReducedfuelconsumptionandCO2emissionsareanaddedbonusinEagle
F1Asymmetric2,thankstoGoodyear’srenownedFuelSavingTechnology.
The tyre also offers a smooth, quiet ride with lower noise emission levels
becauseofitscleverlyoptimisedblockdesign,andbettermileagebecauseits
cavityshapeandtreadstiffnessresultinuniformpressureacrossthefootprint.
LocAL AVAILABILITy
The Eagle F1 Asymmetric 2 is being manufactured in several German
Goodyear plants, in a versatile 29 sizes. From 2012, an additional 21
optionswillbeaddedtothesizeline-up.Shipmentsofmostpopularsizes
fromEuropetoSouthAfricahavealreadycommencedandstartedarriving
towardstheendofApril.
IMMeDIATe APPLAuse For neW eAGLe
Just one week after the launch of the Eagle F1 Asymmetric 2 in Spain,
Goodyear celebrated its first major success: a rave review in a major
magazinetest.
The well-respected German magazine,
Auto Zeitung, tested a range of ultra-high
performance tyres and declared the latest
Goodyear as ‘Very Recommendable’. The
impressive tyre showed the benefits of
its unique, revolutionary ActiveBraking
Technology,withfirstplaceinAutoZeitung’s
stoppingdistancetest–comingtoahalt3.5
metres before the worst of the competitor
tyrestested.
In independent testing by internationally renowned quality consultants TÜV SÜD Automotive, the Goodyear Eagle F1 Asymmetric 2 delivered exceptional results of up to three-metres shorter braking distance on wet roads compared to most competitors’ tyres.
Safety considerations aside, reduced fuel consumption and CO2 emissions are an added bonus in Eagle F1 Asymmetric 2, thanks to Goodyear’s renowned FuelSaving Technology. The tyre also offers a smooth, quiet ride with lower noise emission levels.
D e a l e r P r o f i l e • 4 3
Whatever would induce a successful, award-
winning entrepreneur to deviate from his
established business interests within unrelated
market sectors and open a tyre franchise?
Opportunityandchallenge–atleastthosewere
theprimarymotivatorsthatledtoNirenHarduth
joiningtheSupaQuickrankssome18months
ago.
reTAIL KInGs enter
Tyre Trade!TheHarduth/Hargovanfamily–comprisingmatriarch,PamHargovanand
hersons– isbetterknown for itsmanyaccomplishments in theservice
stationandfastfoodsectors,businessinterestswhichtookroot13years
ago with the opening of their first service station outlet in Bedfordview
Morefollowedandeventually,theyexpandedintotheConvenienceStore
andFastFoodmarketsaswell.
Along with several retail accolades amassed over the years, in July 2001,
Niren,theyoungestson,wasalsorecognisedasthewinneroftheBusiness
Partners Sanlam Award, an award that pays tribute to entrepreneurship.
Clearly, the Family already possessed the makings of successful business
moguls.Allthatremainedwasforthemtocometogripswithabrandnew
industry,togetherwithallofitsuniquechallenges,politicsandidiosyncrasies.
Facing the challenges – Niren, Pam and Wayne of Supa Quick, Glen Shopping Centre.
4 4 • D e a l e r P r o f i l e
But Niren vowed that the challenges associated with an industry he
knewnothingaboutwouldnotdeterhim.Onthecontrary,hebelieved
that his knowledge andexperienceof retailwould standhim in good
stead inhisnewenterprise,providedthatheembraced itwithsimilar
zealandpassion.
“I grew up in this part of the world,” explains Niren, “and I frequently
remembermyfamilycommentingontheabsenceofatyrefitmentcentre
toservicethesouthernsuburbsofJohannesburg.Thedevelopmentofthe
GlenShoppingCentresignalledaneweraforthesouth,uponwhichwe
werequicktoseizeontheopportunitiesitprovided.Havinglongidentified
the need for a tyre store and not just any store, but a top of the line
superstore,wewereoneofthefirstprospectivetenantstoapproachthe
developerforapotentialsitefiveyearsago.Threeyearslater,inNovember
2009 tobeexact,devoidofsignage (thiscame threemonths later),our
doorsopenedfortrading.
“Businesswasslowatfirst,butaggressivemarketingonourpart,coupled
withaskilledstaffforcesourcedfromwithintheindustry,seemedtodothe
trick.“Wemayhavelackedindustryexperiencebutourstaffcertainlydid
not,particularlyWayneWasserfall,ourstoremanagerwhocomestouswith
morethan20yearsofexperienceinthetyreretailgame.”
TheFamilyalsoinvestedheavilybywayofadvertisinginthelocalpapers,
pamphletdropsandafive-metrebillboardpositionedatanearbyschool.
Plus they secured advertising space on the street poles bordering their
oppositionstores,astrategicmovethatappearstohavepaidoff.
Says Niren: “Since we don’t enjoy prime visibility, we need to utilise
everythingatourdisposaltoalertthepublictoourexistence,evenifthis
means piggy-backing onto our rivals’ media campaigns. At least people
arenowaware thatdedicated tyrefitmentoutletsexist in thispreviously
neglectedpartofthecity’ssurrounds.”
Ofcourse,itdoesn’tendthere.Providingthatultimatein-storeexperience
remainsparamount ifNirenandhis teamare towinover the localsand
securerepeatbusiness.
“Ourchallengeisnotonlytoattractagrowingnumberofcustomerstoour
doors,but toalsoensure that theyare treatedwith fairness, friendliness
andrespect,”saysNiren.
“We rely heavily on our frontline to provide an impeccable service,”
commentsPam,“somethingwhichtheyareregularlybeingtrainedfor.In
addition,weprideourselvesinprovidinganupmarketshopimagetogether
withapristineenvironment.Housekeepingisveryimportantasshoppers
no longer want to be subjected to the greasy, back-yard operations of
yester-year.”
The frontline is expected to provide a premium service.
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As forwhy theychose topartnerwithSupaQuick, theyclaim that they
chosetocapitaliseonthereputationofthebrand.Andasnovicestothe
tyresector,itwasalsoimportantthattheyteamupwithagroupofexperts
whowouldbewellqualifiedtoshowthemtheropes.
Finally, the tide seems to be turning, with the franchise growing month
onmonth,break-evenpointisnearing,anachievementtheyareproudof.
“Wegaveourselves18months inwhich tobreak-evenandwe’rea little
short of that only because the investment in the business has been
intensive,”claimsNiren,“andnotonlywithrespect tomarketingbutalso
withourinventory.Thispartofthecityisdiverseinitsproductrequirement,
andwehavetocateracrosstheboard,fromentry-levelvehiclesrightup
to those in themillionpluscategory.Stockshortagesof theappropriate
sizeormakeoftyrecouldwellendupsendingthecustomertooneofour
oppositionstores,soweneedtobewellprepared.”
Innosmallpart thanks to theprofessionalismandenthusiasmofNiren,
Pamandthemanagementteam,thegrowingnumberofmotordealerships
inthearea,andtheabilityofthebusinesstoprovideacompleteunderbody
service,SupaQuick’slatestadditiontoits250-strongfold,lookswellplaced
tomakeitsmarkinthisfast-developingareawhichisdestinedtobecome
thenexthubofthesouth.
A large warehouse on the premises ensures stock availability.
Housekeeping is of the highest standard.
Tandem Tyres Pty Ltd,
the proud owners of the HILO® trademark in South Africa
Specialising in tyres for:
Articulated Dump
Trucks
Trucks
High speed mobile
Cranes
Industrial
Rigid dump trucks
Loader/Dozer
For the best quality, service and attention contact us:
Tel: 031 765 2650 Fax: 031 765 2695
Website: www.tandemtyres.co.za
W o r l d N e w s • 4 7
PIRELLI’SNEWHARDTYRETOMAKEITSDEBUTINSPAINPirelli’snewestracingtyrefortheF1circuitwillmakeitsdebutinSpain.Both
PirelliandtheteamshaveaccumulatedquitealotofdataaboutBarcelona,
which is typically chosen for testing as it contains a challengingmixof
cornersandspeeds–highlightingeveryaspectofacar’sperformance–
andgenerallygoodweatherconditionsallyearround.
Thenewtyreissaidtoofferalittlemoredurabilityoveraracedistance
andprovidesawidergapbetweenthesoftandthehardcompound,which
gives the teams an opportunity to run more aggressive strategies. The
PZeroYellow(soft)tyre,whichhasbeenusedateveryracesofarthisyear
alongsidethePZeroSilver(hard)tyre,willalsobeprovidedtotheteamsin
Barcelona. (quickpic.co.za)
RUBBERPLANTATIONACQUISITIONSAPOSSIBILITYFORAPOLLO
Management at Apollo Tyres are considering the purchase of rubber
plantations as a potential means of countering ever increasing rubber
prices. On May 27, the tyre maker’s vice-chairman and managing
director Neeraj Kanwar told Indian publication The Economic Times
that ‘as far as buying rubber plantations, or for that matter any kind of
backward integration, is concerned, we are always open to possibilities
depending upon the need of the hour’.
Kanwar added that Apollo is also reviewing contracts with suppliers to
‘correct’ rubber prices and is working to offset high rubber prices by
maintainingaleanerandmoreefficientinventoryandgreaterproduction
efficiency. (www.tyrepress.com)
TRUCKTYREOFTHEFUTURE?MICHELINREVEALSFIVETONNETRAILERTYRE
We’ve heard of the super-single category of truck tyres that are designed to
reduce rolling resistance and increase fuel economy by replacing twin tyre
fitments with a single, wider tyre. But what about a truck tyre that can carry
so much more load than standard products that a trailer fitted with these can
cancel out the need for an entire axle? Alongside the numerous passenger
car tyre developments, Michelin also unveiled what we might tentatively call
a five tonne truck tyre – a product that has the potential to be revolutionary
in the truck market.
DevelopedincollaborationwithMANandKrone(owingtotheneedtotest
anddevelopthesetyresonspeciallyadaptedtwo-axletrailers),thenewfitment
reportedly offers hauliers an impressive 900 kilograms more load and a
potential14percentfuelsaving.Accordingtothecompanythefuelsavingand
loadenhancementaregeneratedbytheremovalofunnecessarytyres,wheels
andofcourse,anaxle.Thisisachievedbytheinclusionof‘ultra-strength’steel
tyre cord in the constructionof thenew tyre,which although itmakes the
casingalotstrongeralsohastheadvantageofmakingitonlyslightlyheavier.As
aresultthenetgaintothehaulierisverysignificant.Andasyouwouldexpect
–likeallMichelintrucktyres,thelatestofferingissaidtobefullyretreadable,
meaningitislikelytoofferhighwhole-lifemileagesaswell.
(www.tyrepress.com)
SUMITOMORUBBERCONSIDERINGBRAZIL,INDIATYREFACTORIESSumitomo Rubber Industries Ltd is reportedly considering building tyre
factoriesintheemergingBRICmarketsofBrazilandIndia.
ReportingonabusinessstrategymeetingheldinTokyoon28April,online
newsourceswrotethatSumitomo’spresidentIkujiIkedasaiddemandfor
WORLD’SPRICIESTTYRES–SETOFBUGATTIVEYRONRUBBERCOSTS23500POUNDS!
Ever wondered what the most expensive passenger car tyres in the world
are? According to a report published on the Autocar website on 14 January,
Bugatti Veyron rubber must be a prime contender with a set of four new
tyres costing 23 500 pounds to replace! And if you were wondering
which tyre manufacturer won the OE contract to supply these products,
a quick look reveals that
the 406km/h car, which
is capable of 0-300 km/h
in under 14 seconds fits
Michelin Pilot Sport Pax
System 245-690 R520A
(front) and 365-710R540A
(rear) tyres.
Themainreasonforthegreat
expense,Autocarexplains,is
the fact that theyhave tobecapableof253mph ‘over100mphfaster than
Corcode’slandingspeed’.Howeveraccordingtothereport,what’sworseisthat
everyfourthtyrechange(assumingyoucanaffordtorunthecarthatlong)the
Veyron’swheelshavetobestresstestedforcracks.Thereplacementcostfor
these20-inchforgedrimsissaidtobeanother7050pounds.
tyresisgrowingrapidlyinbothcountries,soexpansionintothesemarkets
hasbecometopicofdiscussionatSumitomoRubber.Varioussourceshave
reported that Ikedasaid thecompany intends toestablish itsownplants
there,but‘mayconsider’formingjointventureswithlocalfirms.
(www.tyrepress.com)
iStockphoto®,©morepixels,BugattiVeyrononRodeoDrive
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QuesTIon: on which suV is the new Pirelli scorpion Verde fitted as original equipment?
AnsWer: ____________________________________________________________________________________
Name:_________________________________________________________________________________________
Company:____________________________________________________________________________________
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___________________________________________________________________________________________________
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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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Congratulations!to our previous competition winner
Mr Charles Brown of Karan Beef, Johannesburg whosecorrectanswerwinshimasetoflocallyproducedGoodyearbrandedtyrestothevalueofR5000.00
Win…… a set of
Scorpion Verde tyres courtesy of
PirelliPrizebasedoncurrentstockandsizeavailability.
Prizemaynotbetransferredorexchangedforcash.
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