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Focus on the PASSENGER tyre market
Optimistic outlook for the passenger tyre market
Meet Hi-Q Honcho, Sean Harrison
Run-flat tyres – first-world rules for a third-world reality?
Behind the Focus on Excellence Awards
Goodyear in search of Highway Heros
Vol 15 • March 2009
A set of INFINITY performance tyres to the value of R3 500 courtesy of Tyrecor

Introduction • 1
Contents
One-on-One
With Hi-Q Honcho, Sean Harrison....................................................................................................... 3
Focus on
Optimistic outlook for passenger tyre replacement market................................... 11
Focus on Excellence
Behind the Focus on Excellence Awards...................................................................................... 23
Manufacturing
New MD for Goodyear SA............................................................................................................................ 26
Passmore’s career is shortlived................................................................................................................ 26
Dunlop flights striking new TV ad......................................................................................................... 28
Talking tyres
Run-flat tyres – First-world rules for third-world reality.............................................. 30
Dealer profile
Speedy does it!............................................................................................................................................................ 30
New initiative
Goodyear on the hunt for Highway Heros.................................................................................. 34
Company profile
Tyrecor extends product range and moves into own premises............................. 36
ProFleet
ProFleet promises tyre management excellence.................................................................... 38
Distribution
TrenTyre celebrates successful 2008 ............................................................................................. 40
Conti Corner
Tonway Tyres consolidates, following its best trading year yet.......................... 42
Ask the tyre experts..................................................................................................................................... 44
World news
Goodyear details actions to address market, economic challenges................ 46
Brembo, Marelli and Pirelli launch technology collaboration............................... 46
Michelin cuts back in light of economic environment.................................................. 46
No deal for Pirelli and Continental....................................................................................................... 46
Competition, Subscription, Website................................................................................... 48
Editor
Photography
Technical Consultant
Reproduction
Printing
Distribution
Advertising
Liana Shaw
Wray Shaw
Wray Shaw
Trend Dynamix
Trend Dynamix
Prestige Bulk Mailers
Liana Shaw
Publishers
Sky Publications cc
PO Box 702
Douglasdale, 2165
Tel: (011) 658 0011
Fax: (011) 658 0010
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E-mail:
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Website: www.satreads.co.za
A note from
the editor
The unprecedented global economic
crisis has thrown a real spanner in the
works. Worst of all, no-one can predict
its duration. Hardly surprising that the
motor industry was one of the first to
feel the ripple effects of this unusually
dire cycle, with motor manufacturers
around the world having to rely on
government hand-outs, laying off
staff, even temporarily shutting down
production plants.
Ultimately, this is bound to have an
effect on the tyre sector. Already, we’re hearing of global tyre manufacturing
giants cutting thousands of jobs, with more, sure to follow. The question for
us in South Africa, is how well placed are we to weather the ill-effects of the
economic downturn? This issue takes a dedicated look at the passenger tyre
sector, as we ask some major players for their impressions on the short-term
impact of this looming recession, in light of decreased consumer spending.
Sean Harrison, Managing Director of Hi-Q also lends his thoughts on the
economic crunch, while also outlining strategy for Hi-Q as it celebrates more
than a decade of successful trading in the marketplace.
If you’re wondering whether your set of run flat tyres fitted to your BMW
was a worthwhile invention, and more important, whether the South African
distribution network is adequately geared up to meet this latest demand, you
won’t want to miss the story written by our new columnist, Colin Mileman.
Also in this issue, we introduce you to the new kid on the block – South
African tyre distributor and importer, Tyrecor – who despite the credit crunch
and in contrast with the current trend that finds most companies downscaling,
is placing utmost confidence in the South African market via the relocation to
its very own premises in Cape Town and the expansion of its product range.
Tyrecor – sole distributor of the INFINITY range of performance tyres - is also
the sponsor of this quarter’s competition, so check out the story on page 36,
click onto the competition option on page 48, answer a simple question and
stand in line to win a set of performance tyres to the value of R3 500.00!
Good luck!
EDITOR

One-on-One • 3
One-on-One with
Hi-Q Honcho,
Sean Harrison
In keeping with the overall theme of this issue in
which we take a dedicated look at what’s in store
for the passenger tyre market, we decided it was
time to pay homage to the man currently at the
helm of Hi-Q – the successful retail franchise
that was benchmarked in a recent survey.
Sean Harrison is no stranger to the motor
industry. His passion for marketing and his
experience in the motor trade and in franchising,
spans 19 years, courtesy of a number of posts
within the motor sector, among them, a stint
as Marketing Director of PG Glass prior to
his current appointment. We asked him what
drew him to the tyre retail business and for his
thoughts on the current economic crisis.

4 • One-on-One
Sean, perhaps we should dive right in and ask what you believe the
industry should be doing to combat this economic crisis?
The economy is largely driven by three factors: Consumer spend,
government spend and direct foreign investment. When one considers that
consumer spend alone accounts for as much as 70%, coupled with the fact
that foreign investment is likely to dry up in the immediate term, chances
are we’re in for a torrid time.
However, my view is this: Why worry about things over which you have
no influence? Instead, concentrate on your immediate business interests
over which you have some control. Are we in for a rough period? Most
definitely. But let’s not forget that from a retail perspective we’ve just come
out of four years of unprecedented vehicle growth which means the car
park is already out there.
Even with consumers tightening the belt and reducing mileages, there’s no
reason why the long-term effects should be catastrophic. Solid operators
and networks will weather the storm.
As far as what we should be doing as an industry to
minimise casualties, I think the time has come for us to
abandon that ‘one-size-fits-all’ mentality in favour of a more
tailored approach, taking into account the varying needs of
retailers positioned in different parts of the country.
The other area of concern for me is the industry’s
seeming obsession with buying rather than selling! I find
it astonishing that the industry functions on its purchasing
capability rather than on its sell-out, which is where the
money is made! To effect change in this area however, will
require a collective mind shift – a retailer can’t do it alone.
As far as the manufacturing sector is concerned, I believe
there’s work to be done on their part with respect to
streamlining and aligning their product and service
offering.
You’ve been with Hi-Q for just over a year and have had time to get a feel
for the industry. What drew you to your current position?
I first became familiar with the Hi-Q group while I was still with PG Glass. For
one, we shared the same media house. For another, I had become familiar
with the brand and its history (having benchmarked against it in the past)
and could therefore identify with the brand’s positioning.
Hi-Q is an incredible success story, having speedily grown to a franchise
boasting well over 175 franchise outlets across the country, and for that, full
credit must go to my predecessors who engineered the company’s path to
success in only 10 years. As the foundation of the company had already
been laid, I felt excited at the prospect of channelling my motor trade and
franchise experience into taking the brand to the next level, ensuring that it
evolves alongside its customer base.
❝
Even with consumers
tightening the belt
and reducing mileage,
there’s no reason why
the long-term effects
should be catastrophic.
Solid operators and
networks will weather
the storm.
Hi-Q was benchmarked in a recent survey. What do you believe were the
key factors that contributed to this accomplishment?
As I’ve just mentioned, the founders of this franchise developed a sound,
trustworthy brand in a relatively short space of time, with limited resources,
but a brand cannot survive on image and perception alone – it has to
deliver!
This might sound clichéd but we truly believe we have the best network
in the country, one that is built on collaboration and close interaction. We
share books, make decisions collectively and consult rather than dictate, all
of which is not only refreshingly unique for me, but makes for an unbeatable
combination.
To go back to branding for a moment, external findings indicate the brand
is moving in the right direction. It is funky, well accepted by the consumer
and perhaps most important of all, is viewed as a mature product offering
by the network despite its chronological age.
Interestingly, external research further indicates that Hi-Q
❞
has a particularly high retention and referral rate, and for
that, we’re immensely proud.
How would you describe your role as franchisor?
We are a support centre for the network – nothing more.
Ours is a humble, non-intrusive role. Having elected
to become inwardly focused in my first year in office,
we’ve generated an important mind shift that included
restructuring the team, altering remuneration packages
and formalising quarterly national and regional councils
to which the network can address immediate concerns,
requests, suggestions and so on.
Regional and national chairmans – who give of their time
freely and for no personal gain – are elected by the group at large to
represent the network and address issues, concerns and problem areas.
The system has been in existence for some time, but a lot of dedicated
time was spent this year working out the mechanics and fine-tuning the
concept to everyone’s satisfaction. We’ve found the system works well and
is in keeping with the consultative approach of the business. Plus, it ably
demonstrates to the network that we take their suggestions and concerns
to heart.
Does this mean the network is not encouraged to come to you directly
in the event of a problem?
Not at all, my door is always open to address issues and concerns of
grave importance that cannot wait to be addressed at the next quarterly
meeting.

6 • One-on-One
What sort of assistance do you provide apart from the norm?
We have something we refer to as the ‘outlets in intensive care’ programme
which provides specific timely assistance to any franchise within the group
that might be experiencing a fundamental problem in their area. This is not to
be viewed as a negative. Quite the opposite in fact, as the system enables us
to identify a particular need, thereby allowing us to focus our full attention and
whatever resources may be required on the franchise in question (at no extra
cost) in order to help them out of their immediate situation.
A network is only as strong as its standards and I’d like to believe our
franchisees understand that. With everyone contributing to the collective
with respect to aligning perspectives, we can achieve our goals both at a
franchisee level and a franchisor level.
Whenever I get to visit one of our franchisees (not as often as I would like),
I constantly remind myself of my goal - to ascertain how I can add value to
him, rather than what I’m going to get out of this meeting?
What is your view on multiple brand-cum-franchise alliances?
I must confess this was new to me. I found it a real challenge when I first
began my career with Hi-Q as I had not previously been exposed to multibrand
or multi-franchise arrangements. Ideally, I would prefer it if our network
So where to from here?
The strategy is simple. Go back to basics, achieve growth through our
network rather than at its expense, and don’t attempt to grow the company
at the expense of existing dealers by opening shops nilly-willy.
was made up of single franchise alliances but I’ve come to
understand that this market and the business model of the
Can we take that to mean you’re not planning on opening
industry as a whole, doesn’t always allow that. ❝
new Hi-Q outlets in the immediate future?
On a positive note, multi-franchising can ease the load Go back to basics,
It’s not our primary focus, although we are looking to fill
for a sole franchisor, whilst also making us aware of rival
offerings that could be seen as adding more value to their achieve growth through
some gaps in what we term ‘open points’. That said we are
reaching the point of diminishing return. By and large, our
businesses.
the network rather than footprint is established which makes the decision to open
a new outlet all that more drawn-out.
at its expense, and don’t
Yes, but don’t you run the risk of a breach in confidentiality?
While there is always that risk, bear in mind, mature attempt to grow the
operators want to make money out of all their outlets
What is your stance on price discounting?
and as such, are highly unlikely to jeopardise one for the company at the expense If you’re not market-related on price you’re out
next. Our attitude is this: If you can’t control the situation,
of the game! However, surveys have shown that
of existing dealers.
the next best thing is to be in a position to influence it.
price only rates third in the list of requirements
You certainly can’t concern yourself with the notion that
❞ that drive consumer choice. At Hi‐Q, we live by the
important information of a confidential nature might leak to
your competitors. That is when you run the risk of becoming dictatorial.
Suffice it to say we make a point of aligning ourselves with responsible
operators and strive to keep in mind that competition is a good thing for
both industry and consumer, in that it helps you to raise your game.
simple principle of ASK (attitude, skills, knowledge),
recognising that if the network fully embraces this concept, other
more important elements such as brand and quality will automatically
take preference over price.
The important message we constantly communicate to the network is,
‘how hard did you work for this particular margin?’ In life, you get what
Are you a multi-brand operation?
Yes. Goodyear is our biggest sell-out brand by far, followed by Pirelli,
you deserve. The key in today’s market is to know who you are, position
yourself accordingly and upsell!
Michelin and Yokohama (accredited suppliers) and anything that is
produced locally (approved suppliers). We pride ourselves in giving the
customer what he wants but do not carry warranties for products that are
not on our approved list.
Are you enjoying your time in the tyre retail sector?
Yes, I am. In many ways it’s familiar territory, while in others it’s a complete
departure for me. As a corporate person, this has been a big learning curve
What happens should someone within the group breach franchise
as this is not a game whereby success is determined by the big leading the
protocol?
Our relationship with our network is very much like a marriage. If you keep
raising the issue of breaches, you stand the risk of alienating your franchises.
As mentioned previously, we prefer to adopt a consultative approach.
small, but rather by the fast leading the slow.
An Ivory Tower mentality won’t work here. Retailers need to come up with
innovative solutions to problems on a regular basis. More important, their

8 • One-on-One
response time to situations must stay true to their entrepreneurial instincts
by reacting faster than the next guy, if they are to succeed.
This requires empowering your management team as well as the network.
I always strive to keep in mind that we must respect the faith a franchisee
has placed in our brand. We owe it to him to support him! We cannot let
him down!
How would you sum up your vision for Hi-Q?
In a nutshell, to entrench Hi-Q as the market leader. In many respects
we’ve already achieved this, but have yet to come full circle. Our immediate
challenge is to ensure a multi-product offering throughout the group that
encompasses all under body components as well as tyres, so as to be able to
come to market as a complete entity. If we manage this, the return is large.
Do you have any thoughts on the industry at large?
Our biggest challenge is skills development. We need to begin to take
training a lot more seriously in this industry. That’s the only way to
accomplish our collective goals as an industry.
After completing a National Diploma in sales and marketing at NMMU
in Port Elizabeth in 1989, followed by an Advanced Management
Development Programme through Manchester Business School,
ironically, Sean Harrison’s paying job was with Algorax in Port Elizabeth,
so you could say, he’s come full circle.
Sean Harrison joined General Motors as a Graduate in Training in 1990
and spent time in their distribution division selling to the dealer network.
In 1994 he joined Shatterprufe (Pty) Ltd (a division of the PG Group),
and began a 14 year career with the company that encompassed: Export
Services Team Leader, Sales Manager Aftermarket Division, National
Sales and Marketing Manager. Later, he moved into the retail division
(PG Glass) as General Manager Sales, Marketing and Operations and was
finally promoted to Marketing Director of the retail division. A year and
two months ago, he joined Hi-Q.
Sean and his wife, Henriette, live in Port Elizabeth with the youngest
of their three children aged 8 (the two eldest reside in Johannesburg).
When he’s not solving the problems of the tyre retail sector, he can be
found harnessing his skills on the golf course, scuba diving or on his
off-road motorbike.

Focus on • 11
Optimistic outlook for passenger
tyre replacement market despite
economic downturn
With the global economic downturn uppermost on everyone’s mind, this year promises to be
particularly challenging, even for South Africa, which thanks to its prudent monetary policies and
more stringent credit lending practices, has not fallen victim to the credit control governance issues
plaguing the US, Europe and the East. That said, we are not an island and are bound to feel the knockon
effects of unstable markets, fluctuating currencies and global downsizing. The manufacturing and
retail sectors are already being affected, as are imports and exports. Worst hit perhaps, is the motor
industry, with vehicle sales slowing considerably as disposable income dwindles and consumer
confidence wanes. Which begs the question: How will the economic downturn impact passenger
tyre sales over the next 12 months?

The average age of the car park in SA is
12 years but newer vehicles are fitted with
low profile tyres which means the trade has
to suitably cater for a diverse market.
According to SATMC spokesman, Dr. Etienne Human, South Africa’s
total vehicle park is well over nine million vehicles, of which passenger
vehicles account for approximately 58%. If we add caravans, other light
load vehicles and unregistered vehicles, passenger tyres account for
about 66% (or six million vehicles) of total market share.
Says Human: “The average age of the car park for light passenger
vehicles carrying less than 12 people is estimated at over 12 years (CSIR
Transportek), the majority being older vehicles, which run on high profile
tyres.”
Newer vehicles are fitted with low profile tyres, thereby posing massive
headaches for tyre manufacturers and distributors alike, who now have to
suitably cater for both ends of the spectrum.
Catering for a diverse market
Says Dr. Luis Ceneviz, CEO of Dunlop Tyres: “We are focusing on
producing the most popular sizes where we have economy of scale and are
importing small volumes from Japan and Europe (origin of manufacture) in
order to fulfil our obligation across all market sectors. I think it’s a good
strategy since it wouldn’t be economically feasible to produce small runs
of all the tyre sizes required.”
Adds Derek de Villiers, Managing Director of Goodyear: “For a number
of years now, local manufacturers have balanced viable local production
with import of low volume sizes to be able to serve the market.”
Of course, getting the mix right is not unique to the manufacturing trade.
Carrying sufficient stock levels alongside running a lean operation remains
a constant challenge for the distribution trade as well.
Says Dave Davie, owner of 10 tyre shops in Kwazulu-Natal: “Diversity of
sizes is a huge challenge, particularly as we strive to introduce new line
items on a daily basis and pride ourselves in often carrying product the
manufacturers don’t have. Storage space at smaller branches is a major
issue, but we carry as much stock as space will allow.”
Concurs Jody Roby, of the well known Jody’s Tyres Group: “Optimising
stock levels is an ongoing challenge with the only positive being that
one can probably reach turnover objectives with less units sold, through
selling a bigger tyre.”
Adds Mike King, Managing Director of Trentyre: “Stock is always a challenge
but we carry out an in-depth analysis of size and type movement through
our locations as well as assess any lost sales to determine model stocks.”
As for Michelin, according to Chaumuzeau, the supply chain in South
Africa poses an even greater challenge. He says: “This year we started
working directly with our customers, dealers and retailers to define
what we call ‘personalised forecasts’ with regard to stock requirements,
price and commercial policy. Our main objective for the coming years
is to establish a real and strong partnership with our dealers in order
to help them secure their future. The next priority is securing a similar

Focus on • 13
partnership with our industrial end users to help them increase their own
competitiveness and remain strong in a difficult context.”
Impact to the bottom line
It is widely understood that a diverse product range carries with it cost
implications, not only in terms of logistics but also with respect to duties
to which imported tyres are subject.
Add to that fluctuating raw material and oil prices coupled with a weak
rand, and local tyre makers say they have little choice but to up tyre prices
in the first quarter of 2009.
Says Romano Daniels, General Manager Group Public Relations and General
Manager for Marketing, Bridgestone: “Tyre prices will be adjusted in the
first half of 2009 and on average, sell-in prices will go up by about 7%.”
Michelin Tyres confirmed they too would be upping their prices on 1
March by between 7-10% and further said prices could spiral yet again
during the course of the year if the rand remains weak.
When similarly questioned, Goodyear and Dunlop remained noncommittal,
claiming they were monitoring the situation and that a lot
would depend on currency movements and raw material costs.
Says Eddie Jordaan, General Manager: Sales and Marketing, Continental
Tyre: “Raw materials remain expensive. Of course the oil price and price
of natural rubber has reduced just as dramatically as it escalated in 2008,

Focus on • 15
but is now climbing again. However, the price of energy escalated
dramatically, as has the cost of labour, steel and specialised chemicals and
additives, not to mention the weak rand. Unfortunately all the manufacturers
purchase raw materials from similar sources and as we cannot control the
cost, it will inevitably have to be passed onto the consumer.”
Pirelli Tyres also made mention of the raw material purchasing price
and said they were hoping to keep these costs down through rigorous
renegotiation of raw material purchasing agreements as well as by taking
advantage of a phase of falling prices.
When asked how they planned to remain competitive in the face of
looming price increases and decreased consumer spending, improving
plant efficiencies topped the list with all four local tyre makers.
Says Daniels: “South Africa is moving from an exporter of raw materials to
an exporter of finished goods in the quest to become a truly competitive
participant in the global economy. To this end, plant efficiencies are part
and parcel of every manufacturing plant in South Africa if we are to remain
cost competitive.”
Echoes de Villiers: “Management of cost and production efficiencies
will always be the tools to remain efficient. Balancing supply and
demand from both the local and export markets is and will remain the
responsibility of management. This is part of an ongoing improvement
process, irrespective of the economic situation.”
Adds Ceneviz: “We have several plans in place to bring our plants’ output
and efficiency in line with market demands. As our major endeavour is to
maintain jobs, we are also exploring other options.”
Alessandro Marchi, Managing Director of Pirelli Tyres SA concurs:
“Globally, the Pirelli group has begun a profound restructuring plan
as a way of confronting the effects of the current economic climate,
the aim being, to guarantee conditions of maximum efficiency and
competitiveness. This will be achieved through rationalisation of
manufacturing structures, savings from lower energy costs and logistics
and growth of manufacturing capacity in emerging markets such Latin
America, Turkey and Romania.”
Cheap imports may not decline
Providing some likely respite for local manufacturers is the anticipated
decline in the sale of imports courtesy of a weaker rand, although some
suggest the current economic climate will have little or no effect on the
demand and supply for cheapies.
Explains Arthur Chaumuzeau, Marketing Manager for Michelin Tyres SA:
“The South African market is not as attractive as it used to be due to

16 • Focus on
the value of the rand versus the Euro and US dollar, thereby impacting
cheap imports from Asian countries which are subject to 30% duty and
currency movements such as the yen to the rand. This could actually
help local producers by narrowing the gap between cheap imports and
locally-made tyres.”
Agrees Ceneviz, but cautions: “I think cheap imports won’t grow and
might even decline since the rand devaluation has put pressure on
imports in general. That said, the excess of production capacity around
the world is another factor to be considered since manufacturers will be
happy to export products on a marginal cost basis to keep their factories
running to capacity.”
Concurs Jordaan: “Cheap imports will always present a great challenge
in that they occupy a high share of the growing market where consumer
need is for a cheap product and where brand or performance is not part
of the buying decision. I believe that cheap imports will find a way to keep
and even grow their market presence.”
OE versus replacement
A dramatic decrease in the number of new vehicles sold will undoubtedly
impact tyre sales to OE (original equipment) this year. According to
Continental - an important contributor to the OE sector – OE sales are
expected to drop by 20-30% this year, but they say the drop could be
even more dramatic.
Further suggests Marchi: “The global estimated effect will likely equate to
an overall decrease of between 15-18%. Pirelli’s goal is to create value by
confirming the selective partnership strategy in OE, focusing on quality
and profitability. In addition, we will continue reinforcing our leadership in
the high performance sector in the replacement market.”
Says de Villiers: “The demand for new vehicles in South Africa has
tapered down to the 2005 level of sales. There is clearly an impact as
OEM’s are adjusting structurally to ensure their business is sustainable
during the global economic tightening. In South Africa in particular, whilst
reportedly endorsed by the Minister of Finance in his budget speech, the
prospective buyer is subjected to the National Credit Act which has a
significant impact on the rate of financing by banks.”
Adds Jordaan: “On the positive side, the reduction in OE volume will
mean that more key sizes will be available to be sold into the replacement
market (there has been a shortage of key sizes especially in the high
performance market segments).”
Solid tyre retailers are likely
to weather the storm.
So while some of the shortfall could possibly be absorbed by the
replacement sector, the question is, will it be enough to negate the losses
incurred through poorer OE performance? Time alone will tell.

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18 • Focus on
Passenger tyre sales in the replacement
market are expected to grow by up to 5%
Dealers are optimistic
According to King, replacement market sales in 2009 will continue to be
under pressure, although less affected than OE.
Says King: “Cars sold two to three years ago when OEMs were selling
significant volumes, are now coming up for tyre replacement, which is
good for the replacement market. Notwithstanding, the next few months
or perhaps years will require innovative retailing and serious customer
service.”
Davie is similarly optimistic: “Year to date we’re having our best year yet, with
seven of our 10 branches recording their best month ever this last December!
I don’t expect any major effect to the replacement sector this year. The fuel
price is down so people will continue to use their cars. Granted, they do tend
to squeeze a few more kilometres out of their tyres when times are tight, but
as far as the current recession goes, I’m not all that sure precisely how it will
affect the industry. Frankly, I’ve decided not to take part. Instead, I intend
remaining 100% focused on my business. No serious retailer these days can
afford to take his eye of the ball for one second!
Roby agrees: “If anything, we’re expecting passenger sales in the
replacement market to grow steadily this year, by as much as 4-5%. For
our group of companies the current emphasis is on ensuring we live by
the ‘good, better & best’ concept with respect to brands, optimising gross
profit via services available, plus selling on a need satisfaction basis.”
Adds Davie: “I only wish law enforcement would come to the party. Have
you ever had your tyres checked by a traffic officer? I certainly haven’t –
not in 32 years!”
The last word
Just how long this gloomy economic picture is likely to last or what the
long-lasting effects to the industry will be are difficult to predict.
Tyre sales to the OE sector will certainly reduce this year – everyone
seems to be in agreement on that score. However, the recent boom
years which resulted in a significantly high number of vehicles being sold
should counter some of the ill-effects as many of these vehicles are now
due for tyre replacement.
Some dealers we spoke with are noticing a drop in demand for imported
premium brands, while others say there’s been no effect whatsoever.
Claims Davie: “We are not finding a drop in demand for imported top end
product, quite the opposite in fact, due to the increasing number of sizes
that aren’t being produced locally. Local manufacturers must be careful
not to out-price themselves on their imported products.”

20 • Focus on
Robey agrees: “You will always get the money shopper in the smaller
sizes, but we don’t believe the premium brands in the larger sizes such as
17, 18 and 19 inch are affected at this point in time.”
Whilst also acknowledging that car owners with motor/mobility plans
were sticking to the OE brands fitted, King said: “However, for vehicles
out of warranty, drivers are definitely buying down.”
Offers de Villiers: “Sales in the replacement market must be contextualised
since OE vehicle sales only realise replacement sales later – therefore the
impact is latent and the immediate impact is the character of the market,
as consumers become ever more vigilant in the manner in which they
apply their discretionary income.
In short, and to quote one of King’s earlier statements, for now, the
replacement market probably holds the key to survival and growth, but
success in this area will likely depend on each operator’s ability to think
out of the box, retail innovatively and provide unparalleled customer
service.

Focus on Excellence Awards • 23
Behind the Focus
on Excellence Awards
The story we ran on the Focus on Excellence Awards in December,
sparked mixed reaction from the trade. We asked Charleen Clarke, editor
or Focus Transport and Logistics magazine and awards administrator, to
address some of the concerns raised by our readers.
A late January 2009 weekend in the Western Cape witnessed the death
of 24 people – six of them children – with a further 35 injured due to
road accidents. Of the eight accidents reported, five were caused by
burst tyres.
According to the Department of Transport (DoT), 937 people died in 733
vehicle accidents between 1 December 2008 and 5 January 2009 across
the country. A Government website also reports that more than 15 000
people die in traffic accidents each year in South Africa at a cost of R46
billion to the economy.
With such overwhelming statistics, several NGOs have launched marketing
and education drives tackling the issue. The DoT too has taken proactive
steps in targeting this epidemic, this year declaring that it would give priority
attention to “road traffic law enforcement of public transport legislation;
improved co-ordination amongst role players for increased targeted road
traffic law enforcement; improved identification and management of
hazardous locations; implementation of special law enforcement initiatives
backed by effective advertising, education and communication campaigns”.
Of concern is that, in practice, this increased traffic law enforcement keenly
focus on monitoring the condition of vehicle tyres since, according to the CSIR,
tyre failure is responsible for almost 20% of minibus accidents. Also, a 2002
study by the DoT found that vehicle componentry factors were responsible for
10% of road accidents; 56% of these were due to tyre bursts.
Driving standards
It was in support of such life-saving initiatives that the FOCUS on Excellence
Awards was first conceptualised.
“Our thinking at the time,” explains Charleen Clarke, managing editor of
the awards administrator, FOCUS on Transport and Logistics magazine,
“was that the commercial vehicle industry had much to offer in raising its
own best practice standards, and in so doing improving South Africa’s road
safety record.”
The Excellence Awards is the only awards programme recognising the best
of the freight and public transport industries, both in terms of product
quality and service delivery.
“Fitting the correct tyre, for example, can ensure reduced fuel consumption,
and increased reliability, safety and cost efficiency,” Clarke continues.
To ensure that the finalists are scientifically and objectively elected and
evaluated, leading market research consultancy Scott Byers randomly
selects companies from its database of over 20 000 transport operators and
conducts a comprehensive telephonic survey. The company was chosen for
its established reputation as market researcher in the commercial vehicle
market. PricewaterhouseCoopers validates the final results.
For further information or comments on the awards programme, please
email Charleen Clarke at charleen@focusontransport.co.za

THE GOODYEAR
HIGHWAY HEROES ARE HERE!
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OVUV\Y[OVZLJVTTLYJPHSKYP]LYZ^OVZLZLSÅLZZHJ[ZVMOLYVPZTOH]LZH]LK[OLKH`TH`ILL]LUZH]LKSP]LZ
0[»ZJHSSLK;OL.VVK`LHY/PNO^H`/LYVLZHUK`V\HYLPU]P[LK[VNL[PU]VS]LK/H]L`V\^P[ULZZLKHJHZLVMSPMLZH]PUNIYH]LY`VUV\YYVHKZ&
+V`V\RUV^VMHKYP]LY^OVOHZWLYMVYTLKHUV\[Z[HUKPUNO\THUP[HYPHUHJ[&
Nominate them as your Highway Hero! Go to www.goodyear.co.za
;OL/LYVVM[OL`LHY^PSSILJYV^ULK^P[OMHTLHUKMVY[\ULUH[PVUHSTHNHaPULL_WVZ\YL9PUJHZOHUKH[YPW[V3\_LTIV\YN,\YVWL
;VNL[OLY.VVK`LHYZ[YP]LZ[VTHRL[OLYVHKZVM:V\[O(MYPJHZHMLYMVYHSS You can help – nominate your Hero!

15025

26 • Manufacturing
New MD for
Goodyear SA
Goodyear’s EEMEA (Eastern Europe, Middle East and Africa) President, Michel Rzonzef, has
announced the appointment of Jean-Jacques Wiroth as Managing Director for Goodyear Tyre and
Rubber Holdings. He replaces Derek de Villiers who is retiring after more than 34 years’ service
with the company. Wiroth, currently Managing Director for Dunlop in Germany, will be based in Port
Elizabeth and will report to Rzonzef. The appointment is effective 1 April.
Says Rzonzef: “Jean-Jacques is a very experienced professional, having held senior appointments in both
regional and country positions. I am very pleased that he will be leading our South African operation,
which has made a great deal of progress in the past few years under Derek’s leadership. In Germany
Jean-Jacques has done an excellent job, developing the Dunlop brand to the point that it is now the leading
brand in the marketplace.”
Wiroth joined Goodyear in Luxembourg in 1982 as a chemical engineer, working in the compounding
section. He held several assignments, mainly working in OE (Original Equipment) tread compounding,
before being appointed Product Manager Consumer Tyres Europe in 1994.
In 1997 he moved to the USA as Marketing Director for North American Tyre’s consumer tyres. In 2001
he moved to Brussels, Belgium, as Director OE Sales and Marketing and in 2005, transferred to Germany
as Managing Director for the Dunlop brand. Wiroth received his degree in chemistry from ETH University
in Switzerland. The 52-year old Wiroth, who is a citizen of Luxembourg, is married to Petra and they have a
daughter.
Paying tribute to de Villiers, Rzonzef says: “Derek has been a strong leader for many years, both in South Africa
and the Middle East. He is highly regarded by his peers both inside and outside the company. We thank him
for his considerable contributions.”
De Villiers was appointed Managing Director in South Africa in 2006, having previously been Managing Director
of Goodyear’s Middle East region since 2001. Prior to that, he was Managing Director of Tredcor (the holding
company for Mastertreads and Trentyre) in Cape Town. The company later became consolidated as Trentyre,
owned by Goodyear Tyre and Rubber Holdings.
Passmore’s SA career is shortlived
At the time the March issue of SA TREADS went to press we got word that our former interviewee, Mr Gareth
Passmore, had unexpectedly left Continental Tyre SA, so we asked Eddie Jordaan, General Manager: Sales &
Marketing for an official comment on the matter:
“Gareth Passmore left Continental by mutual agreement in order to pursue other opportunities outside of
Continental.”
The position is yet to be filled. We will report on a new replacement in due course.

28 • Manufacturing
Dunlop flights
striking new TV ad
Picture this – fast cars, amazing precision driving stunts and an impressive
finale – no – it’s not the newest James Bond release, it’s the new Dunlop
Tyres commercial that was recently created by Durban-based advertising
agency, O’Donoghue & Associates.
The commercial, which is currently being flighted on television channels
in South Africa, sees a host of yellow Dunlop Tyre clad cars converging on
the city of Cape Town to perform a series of impressive high-tech precision
driving stunts that ultimately enable the cars to form the word ‘Dunlop’.
The advertisement has met with positive feedback. Having recently rebranded
their identity, Dunlop Tyres approached O’Donoghue & Associates
to develop an advertising campaign that would be both memorable and
unique. They were looking for ‘the big idea’ that would cut through advertising
clutter and be unmistakably Dunlop; essentially separating them from other
tyre brands.

◆ O'DONOGHUE & ASSOCIATES 26654/E
Available from all reputable stockists
FOR MORE INFORMATION AND YOUR NEAREST DUNLOP DEALER CALL TOLLFREE 0800 335 722
OR VISIT www.dunloptyres.co.za

30 • Talking Tyres
by Colin Mileman Run-flat
Tyres
First-world rules for third-world reality
The concept of run-flat tyres is a brilliant one, with the main advantages
revolving around improved driving safety. But is it really suitable for South
African roads?
Despite being a first-world solution, on face value, run-flat tyres make fantastic
sense in South Africa.
No-one wants to become another devastating addition to the deplorable
crime statistics after being forced to stop on the side of the road to change a
tyre, or facing the dangers of doing so in traffic. Therefore the ability to drive
to a safe location, even at a snail’s pace, has real merit.
Also, the general calibre of driving talent in this country is less than
commendable, so the prospect of swapping a horrendous blow-out for
stable handling characteristics, backed up by a monitoring system’s subtle
electronic warning that a tyre is losing pressure has great appeal.
Car designers will also tell you that throwing the spare wheel and jack in
the bin frees up the creativity of their pen strokes, while engineers will point
to the complementary benefits of reduced vehicle weight and the resultant
improved fuel efficiency, as well as the increased boot space it achieves.
But this is where I stick my flag in the ground and say that currently in SA,
unless you habitually travel no more than 80 km from a mainstream metro
tyre dealer (which in a car-mad country devoid of public transport is highly
unlikely), run-flat tyres are totally unsuitable and irreconcilable with SA
motorists’ needs.
My main rationale revolves around the South African map. Examining a run-flat
tyre support network map provided by one tyre manufacturer, I was drawn to
the vast 1 200 km void that separates Bloemfontein and Cape Town on the N1.
Now I, for one, don’t want to be stranded with a flat, um… run-flat tyre in the
middle of a 45-degree Karoo summer, literally hundreds of kilometres away
from a suitably qualified and (expensively) equipped RFT centre where the 80
km range at 80 km/h just won’t cut it.
In Europe, 1 200 km will get you from Paris in France, through Germany to
Austria’s capital Vienna – and you’ll probably never be more than 50 km away
from a major city, or a first-world run-flat specialist. So there the concept
works. But in good ol’ SA, where vast open spaces abound (think Northern
Cape, where most tyre companies have just one run-flat centre for the largest
province in the country), that’s simply not the case.
And that’s assuming you’re able to drive the nominal ‘run-flat’ distance in the
first place. Considering the decrepit nature of many local roads, a complete
tyre-and-rim write-off due to a pot-hole or a strategically placed rock will
stop you dead in your tracks, and could leave you totally immobile for many
lonely and potentially dangerous hours, and hundreds of kilometres away
from help.
Without giving the customer any choice in the matter, and based on the
Eurocentric nature of the SA market, BMW insists on fitting run-flats to its
new-generation products including the popular 3-Series, along with the 1
and 5-Series, the MINI, the X5 and X6. Why run-flats are specified on a sport
utility vehicle (or whatever BMW chooses to call their X-models) is beyond
me, considering their supposedly multi-terrain nature.
BMW backs this up with the supposed reassurance of BMW On-Call
assistance in the event of a flat tyre. But if I’m stranded in Putsonderwater
where the one and only horse died long ago, I’ll face a similar fate before a
replacement tyre arrives.
This brings me to the issue of availability. On a recent media event, of all the
vehicles on the trip, a BMW X6’s 20-inch 35-profile tyre was the one and only

Talking Tyres • 31
casualty after encountering an errant rock on a gravel road. As no replacement
tyre (naturally, fitted to the appropriate and costly rim) was immediately
available, the 800-grand X6 had to endure the ignominy of travelling back to
Pretoria on a flat-bed. Imagine the fury if you were the owner …
And it’s not just the ultra-exclusive sizes that are problem. I contacted a
couple of tyre dealers around the country to determine the availability of
various sizes of run-flats. Several dealers indicated that they didn’t carry stock
of run-flats at all. Some had a few of the more ‘popular’ sizes, but would
have to call on regional or national distribution centres for the most part.
Therefore, expect a delay ranging from one hour, or even one to two days
to get your rubber – and that’s assuming there are any suitable tyres in the
country which, shockingly, isn’t always the case.
The main reasons the tyre dealers cited for the lack of run-flat stock were
the huge variety of sizes and tread patterns, the very low demand and the
massive cost. One multi-brand tyre dealer suggested an outlay of R100 000
would be required just to carry a single set of run-flat tyres for each brand
he represents.
That cost also relates to the consumer. Based on my brief survey, which
priced a total of 10 tyres from various brands and tyre dealers across the
country, run-flats are on average 35-percent more expensive than standard
replacement rubber – with a high of 65 % and an unusual low of 10 %.
Add in the additional expense of a mandatory tyre pressure monitoring
system (about R5 000) and that run-flat repairs are generally discouraged
(or very expensive to do, by specialists only), and the whole run-flat concept
becomes rather costly.
Run-flat repairs are
generally discouraged
which adds to the cost.
Fitment capability
and availability remain
a problem.
Factor in the huge complexity of the technology, with all the confusing jargon
and marketing-driven acronyms: full marks for Yokohama simply referring to
Run Flat, while Bridgestone uses RFT, Dunlop DSST, Goodyear EMT and ROF,
Michelin ZP and Continental SSR, while BMW has its very own RSC mark.
Plus there’s unresolved issues surrounding the additional unsprung mass of
the tyre necessitated by the extensive sidewall strengthening. Logically, this
makes it both less efficient due to increased rotational mass, and reduces the
pliancy and comfort of the tyre – although tyre and car manufacturers are
making ongoing progress in these areas.
All considered, if I lived in Europe, run-flats would be a no-brainer. But I don’t,
so they’re not.
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.

32 • Dealer profile
Speedy Witbank has achieved
growth in recent years despite
stiff competition.
Speedy does it!
Johan Grobler

Dealer profile • 33
On the face of harsh economic times, quite
surprisingly, one fitment centre in Mmpumalanga’s
fastest growing city – Witbank – is experiencing
unprecedented growth. Former farmer and
businessman, Johan Grobler, attributes this to his
long-standing track record in the community as
well as to his ability to read the marketplace and
react quickly to changing market conditions.
Service packages exclusive to the Speedy Group of companies (now
numbering 140 across the country), such as the ‘Miles More’ programme
which offers motorists free tyre puncture repair, tyre rotation and rebalancing
for the duration of the tyre’s life, have gone a long way towards
attracting customers to his doors. Add to this his decision last year to lower
his GPs in reaction to the economic crisis, and Johan says what he’s lost in
margin he’s made up for in volume.
More important, Johan is a sterling example of the adage that when it comes
to purchases of any kind, people buy people. His father was the Mayor
of Witbank, his wife is a respected member of the community courtesy
of her position of Science teacher at the local high school, while Johan is
well-known to the residents of this predominantly mining community for
his previous, 15-year involvement in two service stations which he owned
and managed. As a keen sportsman, Johan is also passionate about his golf,
and tennis (his team won the trophy four years in a row for the Waterberg
District), something which stands him in equally good stead with the city’s
residents.
Not taking anything for granted, Johan has also made a point of building up
a strong rapport with the motor dealerships in his area, whose support he
continues to enjoy, despite the presence of numerous rival shops on his
very own street.
Says Johan: “I’m lucky to have the loyal following of so many Witbank
residents. Notwithstanding, I fully recognise that we need to deliver on our
service offering if we are to retain our clientele.”
Retaining customers probably rates as his biggest challenge in the current
economic climate where a mere R5.00 can make all the difference between
gaining and losing a sale.
Unlike most Speedy outlets for which tyres make up a smaller portion of
the business, Johan’s operation boasts a 50/50 split between tyres and
underbody components such as exhausts, shocks, batteries, brake pads,
bull bars, tow bars and nitrogen in tyres.
Explains Johan: “Selling tyres is a lot easier in that it helps to draw customers
to your doors. It’s also the ideal time to pick up on secondary sales resulting
from worn shocks, brakes and the like.”
Interestingly too, contrary to what has become the norm due to market
trends, Johan’s exhaust fitment side to the business is buzzing with three
of his 12 fitment bays dedicated exclusively to the exhaust portion of the
business.
Says Johan: “There’s only one other company offering an exhaust service in
this city which probably accounts for our success in this area.”
To add to his product range, Johan is also considering introducing a
suspension service to further provide his loyal customers with yet another
important service at a reasonable price.
Adds Johan: “Consumers are being quoted outrageous prices on tyres,
towbars and suspension systems in particular, and perhaps our willingness
to accept their financial constraints owing to the economy, also accounts
for the fact that our shop is close on ¾ full at all times.
“Add to that the ongoing support from Bridgestone and Speedy’s head
office, and we’re luckily well placed to weather the current storm.”
The immediate focus is on providing customers with a good shopping
experience that keeps them coming back as well as preparing for the future
boom, which according to Johan, is inevitable given the proposed growth
of the region.
Claims Johan: “Eskom’s second power plant opens in Witbank next year
and this should draw thousands of new people to the region. And the
development of Ernie Els’ golf estate, as well as other similar projects,
should spur further growth in the not too distant future. The boom times
will return, and new tyre shops will open in response to this. We must do
everything in our power to ensure we’re ahead of the game as we prepare
to take on new competitors head on.”
Plans to expand his operation are on the cards with the prospect of
additional stores in and around Witbank, which should also serve to secure
current and future market share, particularly if Johan sticks with his current
formula which arguably, is reaping dividends.

34 • New Initiative
ON THE HUNT FOR HIGHWAY HEROES - Dustine Gascoyne
(Goodyear Marketing Director) heads up the new national
campaign aimed at recognising the valuable contributions
truck and bus drivers are making to road safety.
Goodyear on the hunt
for Highway Heroes
With traffic expected to mount over the Easter
holiday season and South Africa steels itself for
an increasing number of accidents on its roads,
Goodyear’s ongoing commitment to safety has
been boosted with the launch of its prestigious
new Highway Hero campaign, launched in
Johannesburg in December 2008.
The programme aims to scout out, recognise and reward some of our
country’s least acknowledged road warriors: the professional truck and
bus drivers who have performed barely noticed yet frequently life-saving
acts of heroism or humanitarian deeds while going about their daily work
on our busy highways.
The Goodyear Highway Hero is already recognised as one of the truck and
bus industry’s most respected award programmes in places like the United
States, Australia, Germany and Latin America.
Goodyear Marketing Director, Dustine Gascoyne said the programme was
founded in America in 1983, when long-hauler, Ronnie Stapleton, was
named Goodyear’s first Highway Hero. Ronnie used his bare hands to tear off
the back door of a burning car, then broke the vehicle’s back seat in two to
save the vehicle’s unconscious occupants.

New Initiative • 35
“Through innovation and technology
Goodyear has made great strides
in the field of safety. The launch of
the Highway Hero programme in
South Africa reflects this important
contribution and reinforces Goodyear’s
new brand positioning of ‘Safety
Together’,” Dustine explained.
glittering final award ceremony, to be held in January 2010, where South
Africa’s first Goodyear Highway Hero will be announced,” he added.
The rewards include not only a prestigious trophy but also R10 000 in cash, an
all-expenses paid trip to Goodyear’s exciting Technical Centre in Luxembourg,
Europe, for the winner as well as the same trip for one management
representative from his or her company and, of course, the well-deserved glory
of being recognised as the Goodyear Highway Hero 2009.
“Almost every day, truck and bus drivers
make valuable contributions to road
safety. We want to elevate their image
and create public awareness of those
responsible members of the industry
who go beyond the call of duty. ‘Hero’
is a special label, but there certainly are unsung heroes on our roads who
deserve to be rewarded for their selfless efforts.”
Highway Heroes in other parts of the Goodyear world have included those
who have pulled injured passengers from burning vehicles, one who rescued
an old woman from her sinking car after it veered off the road into a river,
another who displayed huge posters on his rig of missing children to raise
awareness as he drove and yet another who swerved his truck to avoid three
street-racing cars and veered off the highway to avoid colliding with oncoming
traffic. This last courageous and selfless driver died in the accident.
Goodyear’s nationwide search for its own South African Highway Hero will
run throughout 2009 and repeated annually thereafter. The programme
was launched to prominent players and the media in the truck and bus
sector on 10 December. The call for nominations from the general public,
the truck industry and law enforcement agencies will be supported by
various marketing initiatives via the media, industry associations and law
enforcement agencies. “We will also publicise the campaign on late-night
radio programmes – when many truckers are driving and tuned in – in
which people can call in and tell their stories of heroism. Toll gate flyers are
another innovative way in which we plan to spread the word and there will
also be information at Trentyre, Tirepoint and Hi-Q dealerships. Nomination
forms will also be available online through www.goodyear.co.za,” said Myles
Dent, Marketing and Communications Manager for Goodyear SA.
“Nominations will be tallied and judged every three months. The finalists
from each quarter will receive media recognition and will go forward to a
NATIONWIDE SEARCH FOR SA’s OWN HIGHWAY HERO - Sharmini Naidoo (Road Freight
Association CEO), Dustine Gascoyne (Goodyear Marketing Director) and Gary Ronald
(Automobil Association Public Affairs Manager) at the launch of the prestigious new
Highway Hero campaign. Various road safety and transport related associations such as
these are endorsing this campaign with enthusiasm.
SEARCHING FOR OUR COUNTRY’s LEAST ACKNOWLEDGED ROAD WORRIORS -
Sharmini Naidoo (Road Freight Association CEO), Derek de Villiers (Goodyear Managing
Director) and Jeff Osborne (Retail Motor Industry CEO) at the launch of the prestigious
new Highway Hero campaign. The programme aims to recognise and reward professional
truck and bus drivers who have performed barely noticed yet frequently life-saving acts of
heroism while going about their daily work on our busy roads.
DRIVEN BY INNOVATION
BECAUSE NOT ALL TYRES
ARE THE SAME _

36 • Company Profile
Tyrecor extends product range
and moves into own premises
In contrast to the current economic doom and gloom that surrounds
us, a local tyre tyre company specialising in quality imported products,
is defying the odds and is not only regularly extending its product
range to cater for a diverse market sector, but is further demonstrating
its commitment and confidence in the South African market via the
construction of its own regional warehouse in Cape Town. On 1 March
2009, Tyrecor will take occupancy of brand new facilities, as a bold
statement that says to the market, ‘we’re here to stay’.
Established in Johannesburg in March 2002, to primarily service the needs
of end users in a growing and specialised industrial tyre market, the Tyrecor
Group has since grown to include outlets in Durban and Cape Town, as a
way of providing a national service to its mushrooming client base.
Servicing the industrial and agricultural tyre industry in South Africa and
parts of Africa, along with providing them with tailor-made solutions to
their specific needs and challenges, remains the mainstay of the company’s
business, although recently, Tyrecor also concluded a joint venture with a
financial partner, the Al Dobowi Group.
Established in 1976 to address the needs of a growing tyre management
and service industry in the Middle East, Al Dobowi is now a leading global
player, having moved beyond tyre management into providing customers
with a complete solution when it comes to batteries for motive power,
lubricants, conveyor belt systems and technical rubber products.
The INFINITY brand
The partnership has been worthwhile for Tyrecor on another level too, as it
provided the South-African based importer with the advantage of acquiring
the INFINITY range of products, thereby paving the way for entry into all
sectors of the Southern African tyre market with a comprehensive range of
quality products.
Successfully launched in the last 24 months, the INFINITY range extends
from passenger tyres, up to and including OTR, mining and industrial

Company Profile • 37
Tyrecor’s new premises in Cape Town
will be home to the INFINITY and
Alliance tyre brands.
solid tyres. Manufactured under licence in China, in a facility with an
annual turnover exceeding 1.03 billion pounds, the brand has earned a
reputation for attention to detail, quality and customer satisfaction. It is also
manufactured to ISO14001:2004 standards, carries ECE certification and
has been homologated by NRCS.
Turn to our Competition section on page 48 for details on how you could
stand a chance to win a set of high performance INFINITY tyres to the
value of R3 500.00!
Taishan finds acceptance with agricultural sector
What is more, Tyrecor has secured distribution rights for the Taishan brand,
as a means of further enhancing its product range in the bias agricultural
tyre market, which to this day, remains an important component, both in
terms of quality and affordability. Again, Taishan is manufactured to strict
ISO9001 and ISO9002 quality management systems in China, which
probably accounts for its ability to secure global market share in no less
than 40 countries worldwide.
From a South African perspective, Taishan has adopted a ‘first class or scrap’
policy for all tyres manufactured which in turn, provides the assurances
required by Tyrecor to represent the brand locally.
Says Charl de Villiers of Tyrecor: “That the Taishan brand has already found
acceptance with agricultural buyers across Southern Africa (traditionally
known to only support products that deliver), is testament to the product’s
integrity.”
Tyrecor teams with Alliance Tire
As if this weren’t enough, Tyrecor has also teamed with Alliance Tire
(established in Israel in1950), a multinational company with a core team
of 50 engineers in R&D, with interests in the development, manufacture
and sale of tyres for agricultural, forestry, construction and earthmover
applications.
In July 2007, Alliance Tire was acquired by the Mahansaria family of India
together with Warburg Pincus LLC. Currently, a new plant, boasting a land
area of 460 000sqm is under construction in India and will be operational
in June 2009.
Alliance Tire has over 1 200 active and specialised items which are rapidly
being expanded and the Group is focused on providing a comprehensive
product range to cater to the off-the-highway tyre market, encompassing
both high-end technology and mass market product lines.
Tyrecor seizes window of opportunity
Trust a group of talented South African entrepreneurs to look for the
window of opportunity and seize it! That is precisely what Tyrecor has done,
and despite the current economic challenges, the company’s future looks
promising.
Says de Villiers: “As importers it has become essential to find a balance
between the correct stock holding and cash flow, due to the volatility of our
local currency. These challenges aside, as a group, we are determined and
committed to increase our product range and visibility in South Africa over
the next 12 to 18 months.”

38 • ProFleet
ProFleet promises tyre
management excellence
B550501 - AFROX
Graph Details
Remove 30 days
10
1
ON Vehicle Inventory Avg Qty
77 17
9 Qty New Tires 171 114 1 10
Description 9 1st Cap 68 4 23 38
2nd Cap 430 Other Totals Filters/Selections
Size: 12R22.5
With 67 well-managed fleets already
utilising the ProFleet software
in Africa, following its official
launch in South Africa in 2000,
this unique tyre management
tool from Bandag, appears to be
gaining swift acceptance with a
growing number of transport
fleets, among them, Parmalat,
Afrox, RTT, BP, Fast ‘n Fresh,
Algoa Bus Company and
Karan Beef.
Research and development
for this software system was first instituted in 1983, by
Budini Inc. Today, ProFleet is used in 33 countries in five continents and is
exclusively available to Bandag SA for sub-Saharan Africa.
With scrap tyre analysis data, breakdown information and fleet survey data
now all available in one system, ProFleet ensures complete cradle to grave
tyre management, assisting its users in identifying problems and taking
corrective action before tyre life is compromised.
Close examination of why tyres fail and are scrapped, can ensure
prevention of avoidable failures, while a complete breakdown history will
highlight specific trends that too could be avoided, resulting in an overall
cost reduction for the fleet.
Issued on 19/02/09 - 11:51
Tire Management System 5.x
[Graph type II - Integer Graph]
complete control of tyre stock and can further predict future tyre needs
(by using past trends and product performance history) – a widely popular
feature with many ProFleet users in that it assists with planning and in turn,
results in more accurate budgeting.
What is more, it comes with a set of hand-held tools to ensure fast and
precise data entry, ideal for both the user who, with the device in hand, can
download vehicle and tyre data to the device as well as fitters who can now
easily and accurately capture tread depth and air pressure readings, which
are then uploaded to ProFleet. Using the tools, tyre fitters and supervisors
can now also complete tyre movements and scrap analysis.
Benefits range from time saving, allowing on-site personnel to deal with
maintenance and preventative issues rather than spending time on data
capturing, to ensuring the correct readings are uploaded, giving you the
confidence that the data stored in and extracted from ProFleet is reliable.
The Fast ‘n Fresh depot in Centurion is a typical site of where the tools work
best. With more than 2 000 rolling wheels to manage, the Thomas Tyres
crew does a sterling job of ensuring the pressures are monitored and the
tread depth adheres to the fleet’s tyre policy.
For more information contact
Bandag on (011) 439-6000 or
visit www.bandag.co.za
The report filtering feature of the system allows for performance to be drilled
down to a specific wheel axle and by utilising the fleet’s own data, an analysis
can be drawn up to determine which new or retread make and design is best
suited to the fleet’s application, thereby further ensuring the best product is
consistently selected for best maximisation of the tyre budget.
And not only can ProFleet monitor tyre performance, it also ensures
With the reliability you get from Bandag, your fleet can take on anything.
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8182 Bandag Strip Ad.indd 3 5/15/08 4:39:38 PM

40 • Distribution
Trentyre
celebrates
successful
2008
Michel Rzonzef, President of Goodyear’s
Eastern Europe Middle East & Africa
Countries (EEMEA), and Mike King,
MD of Trentyre.
2008 was a pivotal year for Trentyre. The company exceeded expectations
and delivered positive results by successfully implementing its strategy.
With a strong focus on delivering quality service to customers, Trentyre
was an important role player in the Goodyear group strategy in South
Africa.
Michel Rzonzef, President of Goodyear’s Eastern Europe Middle East &
Africa Countries (EEMEA), spent a day with the Trentyre leadership team in
Johannesburg during his recent visit to the country.
“I am very proud that Trentyre has made the turnaround and delivered the
results,” said Michel. “They did what they said they would. I have seen a very
confident team who is happy to work together and who are very upbeat about
their business prospects.
Trentyre boasts strong leadership, people who are extremely business
minded, focused and close to their customers and the branch teams. They
listen to their own branches to really identify what can and should be done
differently to improve the operations.
Their clear strategy is continuously communicated to the team and draws a
high level of cohesion and alignment across the company. Customers are seen
as the cog of the Trentyre wheel with the branches revolving around them.”
Find Solutions
2008 taught the Trentyre team the value of commitment and was proof of the
resilience of its people.
“It is certainly not said lightly, but Trentyre and its people truly epitomise
a culture of not giving up and always finding a solution for the customer,”
says Mike King, Managing Director. “Each and every employee should feel
particularly proud of the organisation’s achievements. Everyone’s contribution
added to our results.
Although 2009 will be very different given fiscal circumstances, the leadership
team has carefully considered the direction they need for the company.
“We believe that we are well positioned to make significant progress this
year. The people’s resilience, spirit and commitment to the success of the
organisation, will lead us to even more success,” says Mike.
2009 can be a Record Year
Although the turmoil of the world economy is on everyone’s mind, the South
African economy will be less impacted than major global markets. It will be
more important than ever for Trentyre to work closely with its customers and
to support their business in these volatile times.
“I am convinced about the growth opportunity of the local market. The Trentyre
turnaround in 2008 has positioned the company to win in this environment.
I believe we will make the difference compared to our competitors and that
2009 will be a record year for Trentyre,” says Michel.
Trentyre is Goodyear’s main distribution channel of commercial tyres in
South Africa. The strong Goodyear brand, together with Trentyre as the
service provider, will outperform the competition. Through the Trentyre
branch and retread factory network, this partnership has a unique offering
in the market place.”
First with people
In December three Trentyre employees were presented with the “First
with People” awards. The purpose of the award is to provide recognition to
individuals in the various EEMEA countries where Goodyear operates and
was started by the EEMEA President in 2006. The proud South African
recipients are Joey Visser (Warehouse Manager in Spartan), Preggie Naidoo
(Business Manager in Port Shepstone) and André van Niekerk (Area Sales
Manager in the Western Cape).
“We do not give the awards by chance, but it is a recognition of the new
attitude of the people in Trentyre,” explains Michel. “All employees feel part
of the business, and work at identifying opportunities for profit as much as
driving cost out of the operations. The people are delivering results. I have no
doubt that it is a reflection of the new attitude in the whole organisation.”

42 • Conti Corner
Tonway Tyres consolidates,
following its best trading year yet
We first met Wayne Sauvage and Tony Kalis of Tonway Tyres a few years back when we
visited their highly successful retreading factory in Rosslyn, which to this day, continues to
enjoy a sizeable segment of the market in their respective area. On 2 March 2009, we paid
a visit to their second outlet in Silverton, Pretoria (a ContiPartner store), only to discover
that on that very morning, Wayne and Tony had concluded a deal with new owners, Tinus
Bester and Tobie Crause to relinquish total ownership of this, their second store, in a bid
to focus their full attention on their primary concern.
PROMOTION

Conti Corner • 43
Tobie Crause and Tinus Bester.
Says Wayne: “In these challenging economic times, we’ve chosen to
consolidate our operation by focusing exclusively on our primary shop
in Rosslyn.”
Following a boom year in 2008 which culminated in a record-breaking
turnover and good gross profit margins for Tonway, Wayne and Tony are
hoping to boost their performance further during the course of this year, in
spite of the gloomy economic forecasts.
They’ve chosen to do this by consolidating the operation, capitalising on
internal efficiencies, keeping overheads to a bare minimum and continuing
with their hands-on approach to the business.
Says Wayne: “I’m not just a business owner, I’m also a salesman. My
immediate and most important function (aside from running the business),
is to personally service my customers. That’s what I believe has been the
key to our success.
“Only operators who are lean in their infra-structure and who abide by strict
accounting practices are likely to survive the current economic crisis,” he
adds. “In this business, we see so many retail outlets running on bank
balances as opposed to accurate management accounts,” says Wayne,
something he personally insists on seeing by the 7th of each month.
Plus, the factory produces six days a week, 24 hours a day, while the store is
open Monday to Friday from 07h00-17h00 and Saturdays from 07h00-13h00.
By all indications, their discipline and diligence in this regard coupled with
their willingness to ‘get their hands dirty’, has reaped dividends for this
independent operation which continues to receive high praise from its
most formidable critic – the marketplace.
Adds Tinus Bester: “Tonway Tyres Services Silverton caters to a diversified
market sector. Here, we sell anything from passenger tyres to light
commercial, heavy commercial and OTR tyres.”
And despite the presence of no less than 13 opposition shops in the
immediate area, Tinus further claims that their close association with two
premium brands - Continental and Bandag - as well as their decision to
specialise on the commercial sector, has worked in their favour. Add to
that, their attention to detail and near-exclusive fixation with the smaller
commercial operator who is less likely to incur bad debt and it appears
Tonway Tyres Silverton is equally well poised to weather the storm.
Concludes Wayne: “Our suppliers have played a huge role in the success
of our business. Take Continental for example: Close on 80% of our new
tyre sales are made up of Continental. In fact, Tonway Tyres was built on the
Continental brand. To us, they’re not just our primary tyre suppliers – they
are our business partners.”
Strengthening existing relationships such as these, remaining ever vigilant
and focused on their immediate business and refusing to fall prey to
the current negative energy that is circulating courtesy of the looming
recession, are the all-important elements which Wayne and Tony believe
will carry them forward. We take our hats off to them! In their independent
capacity, they seem to have achieved what many others with considerable
resources cannot.

Have a
question?
Send it to satreads@mweb.co.za
Q
Do I need special tyre changing machines to service run-flat tyres?
A
While most extended mobility tyres appear to be the same as a regular
tyre, the sidewall areas are usually reinforced and much stiffer. Without
the proper equipment to depress the sidewall during the demount and mount
processes, the likelihood of torn beads and damaged rims increases. In order
to properly service most run-flat tyres, the machine must have the hydraulic
arms and/or rollers to keep the bead in the drop center.
Q
Is there still a global shortage of OTR tyres?
A
The only shortage that still remains to some degree is the large
earthmover tyres with 57- and 63-inch rim diameters. Small- and
medium-sized OTR tyres are in good supply, and with the global demand
for new earthmoving equipment continuing to shrink, we expect inventories
to remain at high levels for most OTR tyres.
44 • Ask the tyre experts
Ask the tyre experts
With Marvin Bozarth and Kevin Rohlwing, Tire Industry Association
Q
How many splices are acceptable on a
pre-cure retread?
A
Most retreaders will only allow one splice
per retread, but some companies will allow
two splices with shallow tread depth rubber where
the vehicles do not operate at highway speed or
are fully loaded.
Marvin Bozarth
Q
Can inflation gauges be calibrated?
A
Yes, truck tyre gauges have a small screw on
the bottom of the “stick” that pops out when
Kevin Rohlwing
the air pressure is checked. When the gauge is checked against a master
gauge or at a calibration station, the screw can be tightened or loosened to
read the exact pressure.
Q
How can I improve envelope life in my retread plant?
A
The most important thing you can do is check the sealing rings,
hooks and platforms for any sharp edges or burrs. A small nick or
burr can poke a hole in an envelope or start a small cut that eventually
works it way all the way through rubber. It’s also important to store the
envelopes flat but off the ground on a platform without sharp edges or
protruding nails, which is why we don’t recommend using a wooden pallet.
Another important thing is to let the envelopes cool evenly and make sure
that housekeeping in the plant minimizes the number of staples and other
objects on the floor that may puncture an envelope. Finally, choosing
the correct size and ensuring no foreign material is trapped between the
envelope and the tyre will improve envelope life.
Q
I read that tyres run cooler when inflated with nitrogen. Is that true?
A
None of the tyre manufacturers can produce any data showing that
nitrogen makes a tyre run cooler or last longer. The main factor that
contributes to heat inside a tyre – besides the proper inflation pressure for
the load – is moisture. Moist air retains more heat than dry air, so installing
water separators or air dryers will almost eliminate the moisture and allow
the tyre to run cooler. While nitrogen does bleed out at a slower rate than
regular air (which is already 80% nitrogen), regular inflation pressure
maintenance combined with dry air will yield the same benefits attributed
to nitrogen.
Q
What is the best bead lubricant for truck tyres?
A
We always look for vegetable- or animal-based products that contain
a rust inhibitor with no petrochemical products. Paste lubricants are
typically best for mounting tyres, because they don’t dry as quickly and
typically result in a tyre that is concentrically seated on the rims. One of the
biggest problems we see is technicians who lube the beads with a waterbased
lubricant on a bunch of tyres and then proceed to mount them all
at once. The first few still get the advantages of bead lube, but the last few
are basically dry. Paste lubes don’t evaporate as quickly and also create less
mess in the service area.
To submit a question to be answered in a future edition of Southern
Africa Treads, please send your questions to satreads@mweb.co.za.
Marvin Bozarth is the senior technical consultant for the Tire Industry
Association (TIA) and has more than 40 years of tire and retreading
experience. Kevin Rohlwing is the senior vice president of training for TIA
and has over 26 years of tire experience. TIA offers some of the most
comprehensive tyre service training programs for both commercial
and automotive tyre service professionals in the world. For more
information on these programs, or for more information on TIA, visit
www.tireindustry.org or email training@tireindustry.org.

46 • World news
details actions to
address market, economic challenges
According to Robert J. Keegan, chairman and chief executive officer, of
the Goodyear Tire & Rubber Company, given lower industry demand, the
company is taking aggressive action, reducing tyre production, cutting
costs and adjusting investments to better match market conditions.
Keegan announced actions in three key areas to address the economic
environment in 2009, namely: top line growth via an unprecedented
number of new product launches in 2009 and more than 50 new tyres
being introduced globally; cost reductions by approximately $700 million
which will include reducing personnel levels by nearly 5 000 in addition to
almost 4 000 reductions in the second half of 2008 and freezing salaries;
implementing a number of cash flow actions in 2009 including cutting
capital expenditures to between $700 million and $800 million, reducing
inventory levels by more than $500 million and pursuing the sale of noncore
assets.
“Collectively, these actions address the new economic realities,” says
Keegan. “We will remain flexible and are prepared to take additional actions
if market conditions warrant. Our goal is to ensure Goodyear is positioned
for success when tyre markets recover.”
(www.goodyear.com)
Brembo, Marelli and Pirelli launch
technology collaboration
cuts back in
light of economic environment
November 2008 saw a sharper month-on-month decline in demand
for tyres in all European, North American, Asian and South American
markets.
In response to this situation, Michelin has cut back significantly on
operations in most of its plant worldwide.
This decision, stemming from the current economic environment, will lead
to exceptional costs due to under-utilisation of capacity, which will amount
to nearly 150 million euros in the fourth-quarter accounts.
As such, Michelin is taking the necessary steps to effectively manage
inventories and maintain its flexibility moving into 2009.
(www.michelin.com)
No deal for Pirelli and Continental
In response to comments on possible Pirelli transactions on Continental,
the company declared that no transaction has been defined even along
general outlines.
The company also points out that consistent with the financial rigor
foreseen by the guidelines of the recent 2009-2011 industrial plan, any
possible future transaction of a strategic nature would not comport any
recourse to the market.
(www.pirelli.com)
Brembo, Magneti Marelli and Pirelli have announced the start of
cooperation in technology with the aim of developing leading edge
solutions for the Italian and international automotive industry.
The Cyber Tyre, the intelligent tyre developed by Pirelli, will be integrated
with Magneti Marelli electronic control systems and with Brembo’s evolved
braking systems in order to realise ad hoc technology solutions, at the
service of performance and safety requirements of all types of customers.
The internationally recognised skills and excellence of the three Italian
groups will allow for important synergies and for development of
applications, in particular, in the field of safety systems for automobiles and
reducing environmental impact in line with the evolution of international
regulations and new European Union CO2 emission limits that come into
effect in 2012.
(www.pirelli.com)

48 • Competition / Subscription
CONGRATULATIONS TO OUR PREVIOUS COMPETITION WINNER!
Charles Scharneck of Vector Logistics, East London
whose correct answer wins him a copy of the coveted 2009 Pirelli Calendar
Click onto
www.satreads.co.za
to enter!
quarterly competition
QUESTION: Who distributes the INFINITY
range of tyres in South Afirca?
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or enter online at www.satreads.co.za
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Calendar courtesy of
INFINITY
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performance tyres
to the value of
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With the reliability you get from Bandag, your fleet can take on anything.
For more information contact Bandag - Tel: +27 11 439 6000 Fax: +27 11 506 8717 www.bandag.co.za

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