http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.10Change: -0.11
R/$ = 10.74Change: -0.08
Au 1265.83 $/ozChange: -21.35
Pt 1409.50 $/ozChange: -14.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 24, 2007

Record growth for truck, bus company

Back
Engineering|Africa|CoAL|Components|Diesel|DIESEL ENGINES|Education|Engines|Gearboxes|MAN Automotive|MAN Truck & Bus|Projects|System|Systems|Africa|Angola|Austria|Germany|Kenya|South Africa|Zambia|Automotive|Bus Solution|Equipment|Logistics|Manufacturing|Product|Products|Retail Areas|Systems|Transport|Transport Equipment|Dave Van Graan|Infrastructure|Power|Rail|Trucknology|Diesel
Engineering|Africa|CoAL|Components|Diesel|DIESEL ENGINES|Education|Engines|Gearboxes|Projects|System|Systems|Africa|Angola|Kenya|Zambia|Automotive|Equipment|Logistics|Products|Systems|Transport||Infrastructure|Power|Rail||
engineering|africa-company|coal|components|diesel-company|diesel-engines|education-company|engines|gearboxes|man-automotive|man-truck-bus|projects|system|systems-company|africa|angola|austria|germany|kenya|south-africa|zambia|automotive|bus-solution|equipment|logistics|manufacturing|product|products|retail-areas|systems|transport-industry-term|transport-equipment|dave-van-graan|infrastructure|power|rail|trucknology|diesel
© Reuse this



Original transport equipment manufacturing company MAN Truck & Bus is currently experiencing an unprecedented growth rate, locally and in an international context.

MAN management board member for marketing Dave van Graan says that the company is operating in an industry which is currently going through its fifth year of growth, where the growth rate is exceeding 20% on a year-on-year basis.

MAN attributes this growth to five factors. Firstly, the government’s macroeconomic policy is seen as really trying to drive general economic growth, and this means economic growth for most industry sectors. Secondly, transport is a derived market need, meaning that as consumer demand grows, goods need to be delivered to the retail areas and trucks are needed for that purpose. Thirdly, because of the infrastrucure boom, building material and other infrastructural material need to be transported to building sites.

Van Graan says that the com-modities markets also play a big role. Export commodities need to be delivered to the harbours and local commodities, such as coal, need to be transported from the mines to the power stations. To a lesser extent, transport and logistics companies have become more professional, meaning that their replacement policies have improved.

“This means that transportation fleets get replaced every three to six years, as opposed to the previous replacement plan of every five to ten years,” he explains.

MAN currently owns a 35% to 50% share of the local bus market. Van Graan says that this is due to the one-stop bus solution offered by the company. He explains that the company is the only original-equipment manu-factuer in South Africa to wholly manufacture the chassis, and coachwork (body) components of a complete bus.

“There is a definite advantage to supplying the body and the chassis from one company, and having your own factories to assemble the parts means that the company can customise its products to meet varying customer demand,” he says.

The company is constantly develop- ing its Trucknology product range. Van Graan says that the Trucknology product means that MAN trucks have the latest common-rail diesel engines, automated-shift gearboxes, ABS braking systems and electronically controlled suspensions, making them safer, reliable and more durable. Consequently, this translates into better economy. The technology was sourced from MAN’s plants in Germany and Austria.

Ninety per cent of MAN’s bus chassis are imported from Germany, meaning that 10% of the chassis com- ponents are sourced locally, but are also 100% refined and adapted in South Africa to adhere to local speci- fications and operating conditions. Van Graan says that the company is currently enjoying the benefits of a buoyant bus and truck industry.

“With the huge growth in the volumes of vehicle sales, MAN has to develop a strategy where it will have not only the infrastructure, but also the necessary people to cope with the demand. “Capacity expansion is a big issue, because MAN has to make sure that it has sufficient capacity in its factories, which assemble the base vehicles, and also in its dealer network, which supports the vehicles through parts and service supply,” he points out.

Van Graan says that to deliver on its customer promises, MAN needs to constantly develop its IT-systems and strive to apply ‘best practice’ business processes.

The company is positive about current local economic conditions and has expanded into the north-eastern and north-western areas of the African continent. Van Graan says that countries such as Angola, Zambia and Kenya are exciting prospective markets, and that MAN has established a dealership footprint in those countries to ensure that after-sales support is in place prior to selling vehicles into those territories. He says investments and strategies are currently under way to further expand this support base in the 15 Southern African countries looked after by the South African office.

“Locally, government policy is very encouraging. For MAN, as a manufacturer, it is encouraging that government is looking at a sustainable public transport system, with strategic thinking going into various intermodal transport models. “As the company moves to provide better public transport, it is also an opportunity to supply trucks for the infrastructure development required to support such a system. “As it is, MAN sees this growth continuing until 2014, even through at a slightly slower rate than we have experienced in the last five years” Van Graan comments.

He says that one of MAN’s most successful projects was the launch of the company’s Trucknology range of products, which include the TG FOC, TGA, TGM and TGL models.

“At first, there was a question whether the vehicles were not too sophisticated for local conditions, but after the vehicles had been developed overseas, they were tested in South Africa for an intensive three-year period, prior to the local launch. “Small adjustments were made to the systems to adapt to local conditions, giving the customer the benefit of 100% Trucknology. “The customer gets a real optimisation of reliability when electronic control is coupled with the mechanics of the vehicles,” Van Graan comments.

MAN plans to sell about 2 600 Truck-nology products to the local market this year. Van Graan says that the vehicles are better equipped to deal with local conditions and keep operating costs lower, because they are more fuel efficient.

MAN Automotive is a holding company in South Africa and contains two divisions, namely MAN Truck & Bus and MAN Bus & Coach. The two divisions employ about 1 000 people. Two manufacturing plants assemble the truck and bus components for MAN in South Africa. The Pinetown plant assembles the vehicle chassis, while the bodies are manufactured at the Olifantsfontein plant. The company also owns eight dealerships, with 35 dealerships belonging to independent shareholders. MAN Automotive had a turnover of R2,6-billion in 2006 and produced and sold about 2 500 trucks and buses.

MAN is also involved in social responsibility projects throughout South Africa. The company embarked on a programme in which it will invest €1-million over the next three years into the Southern African industry in support of its corporate social investment strategy. Projects supported will include education programmes to train technical, engineering and supporting staff, education support of street children and a variety of driver training programmes aimed at enhancing skills of professional drivers.

The company has also embarked on a programme to provide shelter and education for street childern.

Edited by: Laura Tyrer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Commercial Vehicles News
Statistics released by the Department of Trade and Industry on Monday, showed that August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37...
The M4 SUV
Great Wall Motors South Africa (GWM SA) has dropped the price on many of its vehicles by between R5 000 and R30 000. COO Warren Olson says this move is not linked to declining sales at the Chinese importer, but rather Super Group taking a controlling interest in the...
Toyota South Africa Motors (TSAM) will see its exports into Africa drop by around 20% this year over last year, owing largely to policy changes in Algeria and Nigeria. TSAM president and CEO Dr Johan van Zyl says the Algerian government has shifted its support for...
More
 
 
Latest News
Updated 4 hours ago Despite various challenges related to the extraction of shale oil and gas, as countries grow accustomed to the idea, the use of shale as a form of energy will be more widely pursued, international oil and gas market analyst Michael Lynch said on Tuesday. Speaking at...
Updated 4 hours ago A consortium led by two Kenyan firms won a government tender to build a 1 000-MW, coal-fired power plant, company officials said on Tuesday, part of moves to satisfy rising demand for energy in East Africa's biggest economy. Kenya suffers from regular blackouts due...
TNPA CEO Tau Morwe
Updated 4 hours ago The announcement of the successful bidder for the construction of Durban’s long-awaited passenger cruise terminal was imminent, Transnet National Ports Authority (TNPA) CEO Tau Morwe told delegates at the African Ports Evolution Conference in Durban on Tuesday. ...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks