Capital Equipment News February 2016

TRANSPORT

Craig Uren, chief operating officer

the acquisition endorsed the economic val- ue of the move which enabled the company to meet and exceed its targets for the year. The production at Kanu/Act is not totally de- voted to Isuzu Truck and also supplies the general market where necessary. “Kanu/ACT is doing well and so far is filled to capacity. This acquisition has enabled us to get the solution to the market in the most effective manner possible. As we grow in volume, Kanu/ACT grows with us. This has meant great savings for the dealer who re- ceives a complete vehicle from the factory and eliminates the need to move the vehicle around for the fitting of the various acces- sories thereby eliminating unnecessary ex- penses and shortening the turnaround time once the sale has been concluded. As far as the specialized market is concerned, Isuzu Truck continues to maintain a high level of activity in the tipper and dominate in com- pactor business as well”, explained Uren. “For Isuzu, Africa is a huge market oppor- tunity. Around the world Isuzu does well but Africa needs a lot more work to entrench the product. We have established a good customer base in Zimbabwe and in 2015 we exported more vehicles there than we had done in the last five years. Generally Isuzu Trucks footprint in Africa is expanding especially now that at the assembly facili- ties in Egypt, Kenya and South Africa. Isuzu

Motors Japan shipped more than 20 000 vehicles into Africa last year and it is antic- ipated that this number will grow consider- ably in the next five years”, said Uren. The increase in market share and the ex- pansion of the variants in the Isuzu Truck range have brought a new dimension to the support structure for the product. The parts and service backup has been sim- plified with the introduction of common components that fit the range of vehicles. There are only four engine derivatives and four transmission models used in the en- tire range. Also common components have been incorporated in the cab design, simpli- fying the replacement of body parts. “Looking ahead we have not changed the game plan but require mastering the plan to build on the base that has been set to support the client, from body building, parts and ser- vice and warranties. Our results are there but we require extending the journey further. Ex- tending the journey for our customers means also extending the economic life of their ve- hicles. For this purpose we have a compo- nent replacement exchange programme in place called “ISUZU DRIVETRAIN” for dealers to utilise. The product range will not undergo any major changes except for some minor cosmetic adjustments so the emphasis will be on extending the value of the brand ‘For the Long Run’, said Craig Uren.

In 2015 Isuzu Trucks achieved another milestone in the next phase of their South- ern Africa strategy when they moved from a commercial OEM to an entrepreneurial-type business entity on acquiring a 100% stake in two Port Elizabeth-based entities, Kanu Commercial Body Construction (Pty) Ltd and Automotive Chassis Technologies (ACT). These acquisitions will enable ITSA to initiate and build products according to client specification, enabling them to have a more integrated relationship with current and future customers in the life cycle of their trucks. “The acquisition completes our growth strategy as we believe that Kanu and ACT will definitely enhance our business struc- ture. The move to acquire these entities will centralise the process of buying our trucks, where everything will be processed from one central point of contact,” said Craig Uren. “The next few years will be even better for us as the platform we have created with the new strategies in the pipeline, which is one of the consolidation and enhancement. We can now focus on people skills development and concentrate on attaining leadership in aftermarket support factors for Southern Africa. Isuzu Trucks will also expand its footprint in the Sub-Saharan African mar- ket,” concluded Uren. ❂

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CAPITAL EQUIPMENT NEWS FEBRUARY 2016