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JULY - SEPTEMBER 2005   |  
NEWS SNIPPETS

Addresses of convenience: Have you noticed how many "grey import" vehicles are driving around South Africa with Mozambique, Botswana, Namibia or Swaziland number plates? This phenomenon is particularly evident in Gauteng and is obviously the way the motor dealers in these countries are getting around the clampdown on grey imports into South Africa. They evidently register the car locally, using an "address of convenience"; fit a pair of appropriate number plates and off home goes the South African buyer.

Japan Motors Inc. continues to grow: Toyota Motor Corporation, which has resisted getting involved in buying shares in motor companies outside Japan, has bought 8,7 per cent of Fuji Heavy Industries, the manufacturer of Subaru motor vehicles. This will further consolidate the Japanese motor industry as Toyota already has controlling interests in Daihatsu and Hino as well as holding a five per cent share in technology partner Yamaha.

General Motors is selling the 20 per cent shares it holds in FHI, with 8,7 per cent going to Toyota and the balance of 11,4 per cent being sold on the open market. This will effectively dissolve the relationship between GM and FHI. It remains to be seen where this leaves GM's Swedish subsidiary, Saab, as GM was using Subaru vehicles as "donors" of components and platforms to cash-strapped Saab.

Toyota and FHI are going to explore synergies in terms of research and development and production. One of the benefits to Toyota is the fact that FHI has developed a very efficient battery pack that will be ideally suited for use in petrol-electric hybrid vehicles, where Toyota is the world leader.

The tie-up between Toyota and FHI has been hailed as a positive move by the top management of Subaru South Africa.

Grand Prix racing hots up: The news that Honda has purchased the remaining 55 per cent in British American Tobacco's BAR racing team means they are sure to up the ante in the fight against arch rivals Toyota on the Formula 1 circuit in 2006. Add in the fact that BMW will operate their own team, having bought out Sauber, and the scene is set for a battle of the giants as these three teams challenge current pace-setters McLaren-Mercedes and Renault.

Black buyers declare their status with new vehicles: Black buying power is seen by motor dealers as one of the major factors in the current surge in new vehicle buying in South Africa. There are estimates that emerging black middle class buyers account for between 25-30 per cent of new car sales. At some franchises it could be as high as 40 per cent. (The middle class in South Africa is broadly defined as households with earnings of between R30 000 and R144 000 a year).

A major finance house said that almost 20 per cent of the customers on its open book for new and used cars were black.

Fill up the tank with sugar, mielies or coconut oil, Sir The recent surge in the price of crude oil and resultant upward spiral of fuel prices has brought several alternative fuel blend sources to the fore. Among these are sugar and maize to make ethanol. Coconut oil is another fuel source being bandied around.

Sugar is the raw material of choice in Brazil, the world's largest producer of both sugar and ethanol. More than half of Brazil's sugar production may soon be diverted to fuel production. The United States favours maize, as do a group of South African farmers who are setting up an ethanol production plant in Bothaville. Years ago there were protagonists in South Africa for using sunflower seed oil and this was used experimentally in diesel tractors.

Nethercott joins MIO advisory: National Automobile Dealers' Association (Nada) chairman Ray Nethercott has been appointed as a member of the independent Motor Industry Ombudsman (MIO) of South Africa's advisory board.

Nethercott was a prominent speaker at last year's CAR Conference at Auto Africa and is also the CMH Group's franchise director for Ford, Mazda, Peugeot and BMW. Consumer journalist Isabel Jones, Moses Moeletsi of the SA Bureau of Standards and Naamsa executive director Nico Vermeulen also serve on the advisory board of the MIO, the organisation said.

MIO executive chairman Theo Swart said Nethercott's "experience and knowledge of the retail industry gained over the past 28 years would undoubtedly have a positive impact on the MIO and its objectives".

 
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