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CONSTRUCTION
CAPITAL EQUIPMENT NEWS
DECEMBER 2015
12
KOMATSU AND RENTWORKS
launch KomRent for financing solutions
TRUCK SALES
track tough economic climate in South Africa
K
omatsu South Africa and leading as-
set rental specialist RentWorks have
forged a strategic alliance set to
significantly benefit customers in the local
capital equipment market.
Known as KomRent, the newly formed di-
vision provides a suite of dynamic funding
solutions that give customers access to
state-of-the art Komatsu equipment without
adversely affecting their cash reserves.
“KomRent represents our response to
tough market conditions and a shift in the
purchasing strategies of customers in the
mining and construction industries. Today’s
customers need more flexible funding op-
tions and we believe that this new partner-
ship offers them the intelligent and cost-ef-
fective solutions they need,” says Komatsu
General Manager, Sales and Marketing,
Mike Helm.
RentWorks, a FirstRand Group Company,
finances more than R3 billion in assets
for more than 400 organisations, across a
range of industries and asset types.
KomRent is a residual-based rental provider
that enables businesses to acquire equip-
ment for an optimum period at the most
cost-effective rate. Komatsu buyers will now
be able to procure their Komatsu equipment
without having to outlay huge amounts of
cash up front. The KomRent solution affords
client’s the ability to spread payments over
the useful life of the asset. This enhances
cash flow; and the client still maintains con-
trol with flexible end of term options.
“We are delighted to enter into this alliance
and believe that with our unique financial
expertise and Komatsu’s experience in de-
livering high quality capital equipment, we
are set for a formidable partnership that
will yield substantial benefits for clients
across the mining and construction indus-
tries,” says RentWorks Group Sales Direc-
tor Kuben Rayan.
T
he local truck industry has recorded
its ninth consecutive month of decline
during October, despite the market
showing some signs of recovery over re-
cent weeks.
According to the latest combined results
released by the National Association of
Automobile Manufacturers of South Afri-
ca (Naamsa), Associated Motor Holdings
(AMH) and Amalgamated Automobile Dis-
tributors (AAD), year-to-date sales have
declined by 4.3% and the end of October
to reach 25 133 units.
“The decline was recorded across the ma-
jority of segments, with Heavy Commercial
Vehicles being the only exception with
1.2% year-on-year growth,” said Torbjörn
Christensson, President of Volvo Group
Southern Africa. “Most of the segments
have narrowed their losses, which is a bit
of positive news for the industry.”
Sales in the Medium Commercial Vehicle
(MCV) segment declined by 5.1% when
compared to 2014’s year-to-date perfor-
mance, to log 8 507 sales. Extra Heavy
Commercial Vehicles (EHCV) recorded a
5.2% loss in sales to conclude October on
11 216 units sold so far this year. The Bus
segment is taking the biggest hit, with a
10.1% decline in sales and only 908 sales
recorded by the end of October.
“We are in for some challenging times
ahead, with a range of macroeconomic
factors, as well as decade-low business
confidence levels, having a negative impact
on the South African truck market,” said
Christensson.
“In these tough market conditions, it is
those truck manufacturers who excel at af-
termarket support and quality service who
retain customers and ultimately win new
business. Literally every sale and every
service counts in this extremely competi-
tive environment.”
Michael Bolland, CFO Komatsu SA, Trevor Cronje, CEO Rentworks,
Deon van Wyk, GM Sales,Wesbank.
Torbjörn Christensson