AR600-million joint venture (JV) plant between Italian bus and truck manu- facturer Iveco and South African public transport operator and bus-body builder the Larimar group should start assembly at the end of the 2013 or, more likely, the beginning of 2014, says Iveco South Africa (SA) MD Bob Lowden.

Companies within the Larimar group include Putco passenger bus operations.

Iveco owns 60% of the JV operation and Larimar 40%.

The Rosslyn plant, in Tshwane, will do completely knockdown assembly of Iveco trucks, coaches and buses, creating 1 000 new jobs, says Lowden.

Production volumes at the plant, in a refurbished facility, will number around 5 500 units a year and the facility will produce left-hand- and right-hand-drive vehicles for the Southern African market.

Lowden says Iveco SA wants to move to local assembly as it will save on the duties payable on imported trucks and buses. It will also provide the company with a black-empowered, made-in-South Africa advantage, which is becoming increasingly important as government demands more local content on buses – a policy move that is likely to spill over to the truck market.

Also, importantly, establishing a South African plant is an indication of Iveco SA’s long-term commitment to the local market, notes Lowden.

This is important, as, not long ago, there was a perception that Iveco was pulling out of South Africa. Most likely, this was the result of the Italian brand’s increasingly poor market presence in the region.

In 2011, Iveco SA sold 780 vehicles in the almost 20 right-hand-drive markets in Southern Africa it served, with trucks only around 40% of this business.

With 28 dealers in place, this is “clearly not sustainable”, says Lowden, who was sent to South Africa in February last year in an effort to arrest the decline.

In 2012, Iveco SA sold 1 217 units, and the target is to double this number in 2013, even if anything upwards of 50% growth will also be acceptable.

“We are making quite a lot of headway,” notes Lowden. “We have ambitious growth plans.”

By the end of 2016, Iveco SA wants to sell around 5 000 units a year in Southern Africa, he adds.

Driving the recent improvement in sales has been the appointment of an almost completely new management team, as well as the addition of a used-truck department, which allows Iveco SA to offer trade-ins and buybacks for customers seeking to buy new vehicles.

Iveco SA now also offers in-house financing, through an alliance with Standard Bank. There is also a renewed focus on fleet sales.

A network development programme is also under way, says Lowden, with Iveco seeking entrepreneurs to set up new dealerships.

New products are another vital ingredient to Iveco SA’s future success, he adds, as there are three or four sectors in which the company does not offer the Euro III right-hand-drive vehicles the market demands.

The first of “several new products” to make its way to South Africa this year is the new Daily 4 × 4 medium commercial vehicle.

The Daily 4 × 4 is available in a single-cab or double-cab derivative.

The vehicle competes in a niche market, namely that of a professional all-wheel-drive vehicle able to go anywhere, and is typically used as a forestry firefighter or field ambulance, for example.

However, says Iveco SA product manager Deon Wannenberg, it also makes for a pretty competent go-anywhere camper.

The approach angle of the vehicle is 51º, while it also has a ramp angle of up to 35º, a departure angle of up to 42º and water wading capability of 620 mm.

The vehicle makes use of a truck-derived chassis, made of high-strength steel beams, and is equipped with gas shock absorbers and superflexible parabolic springs.

The Daily 4 × 4 can be fitted with all types of load bed, body and equipment.

The single cab on a 3 400 mm wheelbase can carry a 1.5 t payload, while pulling a 3.5 t trailer.

The inside interior cab comforts are carried over from the Daily minibus and include a multi- function display unit with a trip computer.

The double cab provides seating for the driver and up to six passengers.

The vehicle makes use of a 350 Nm, 3 ℓ diesel engine. The engine is mapped to generate its power at low revolutions, with maximum torque generated between 1 400 rpm and 2 600 rpm.

Torque distribution is 32% to the front and 68% to the rear axle to give good grip on all types of terrain.

The Daily 4 × 4 offers permanent all-wheel-drive transmission with three available differential locks (front, rear and central), as well as 24 forward gear ratios and four reverse, with the possibility of selecting the first synchronised reduction (half-speed) with the vehicle in motion.

Pricing for the Daily 4 × 4 single cab is R556 450, excluding Vat, with the double cab priced at R577 450, also excluding Vat.