A R600-million joint venture (JV) plant between Italian bus and truck manufacturer, 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, said Iveco South Africa (SA) MD Bob Lowden on Thursday.

Companies within the Larimar Group included Putco passenger bus operations.

Iveco owned 60% of the JV operation, and Larimar 40%.

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

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

Lowden told Engineering News Online that Iveco SA wanted to move to local assembly as it would save on the duties payable on imported trucks and buses. It would also provide the company with a black-empowered, made-in-South Africa advantage, which was growing increasingly important as government demanded more local content on buses – a policy move that was likely to spill over to the truck market.

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

This was important, as not long ago there existed 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 was “clearly not sustainable”, said Lowden, who had been sent to South Africa in February last year, in an effort to arrest the decline.

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

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

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

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

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

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

New product was another vital ingredient to Iveco SA’s future success, he added, as there were three or four sectors in which the company did not offer the Euro III right-hand-drive vehicles the market demanded.

The first of “several new products” to make its way to South Africa this year was the new Daily 4x4 medium commercial vehicle.

The Daily 4x4 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 fire-fighter 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 51°, while it also has a ramp angle of up to 35°, a departure angle of up to 42° and water wading capability of 620 mm.

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

The Daily 4x4 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.

Inside interior cab comforts are carried over from the Daily minibus, and include a multifunction display unit with 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 terrain.

The Daily 4x4 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 4x4 single cab is R556 450, excluding VAT, with the double cab priced at R577 450, also excluding VAT.