THE DEFINITIVE TRUCKING SITE

August 2008

International trucks are a familiar sight in South Africa and a well accepted marque in the road transport arena so it is not surprising that the parent company, Navistar International Corporation, decided to underline its presence here through the establishment a fully-fledged subsidiary  to service the southern African market.

The sounds of African drums permeate across the Apex industrial site in Benoni on the East Rand as cries of “Viva, Viva,” reverberate through the crisp winter air. It is not a riot; it is not a strike; it is nothing negative - quite the opposite in fact. This is industrial action of the positive kind and the drums and cheers are sounds of happiness as workers and staff celebrate the official opening of Navistar International Trucks of Southern Africa (Nitsa). 

The ceremony takes place at the company’s headquarters and assembly plant where Bernardo Valenzuela, vice president global operations, pronounces the company “open for business.” 

As was previously reported in FleetWatch, Nitsa is responsible for importing and assembling International branded trucks in South Africa and will also provide after sales technical, service and parts support for the International brand. 
 

Right now, Nitsa assembles the International 7600 and 9800 models but there plans to significantly broaden the range. This will see smaller duty trucks as well as passenger buses being brought into the region. 

The new plant has the capacity to produce up to 350 vehicles a month although initial production is expected to be around 14 or 15 units. 

Stepping up to the podium, vice president for Navistar International in South Africa, Tim Quinlan says: “This is an emotional day for me. I must tell you, witnessing the first truck to roll off the assembly line today gave me goose bumps.” 

It is also a big day for Navistar. With an initial investment of $40-million in the new facilities, inventory and working capital, the company certainly means business. 

Further investment in a new training centre, a number of independent fully-fledged dealerships and up to 23 parts and service agents will be rolled out in due course. 

Valenzuela says an announcement on further investments can be expected within weeks. Imperial Commercials, the former distributor, will remain an important part of Nitsa’s distribution network with fully-fledged dealerships based in Wadeville, Polokwane, Middelburg and Bloemfontein as well as parts and service dealerships in Cape Town, Durban, Port Elizabeth and Harrissmith. 

Nitsa has also named six additional independent dealerships in South Africa as well as one in Namibia. 

“Our vehicles have a strong acceptance in South Africa and we intend to grow our position in this market by expanding our service and support capabilities,” Quinlan says. 

He adds that the establishment of Navistar in southern Africa is a further step in the company’s strategy for global growth. “As Navistar continues to grow its business to reach new markets for selling trucks, engines, parts and service, our increased presence in South Africa will continue to play a critical role in our global strategy. 

In his opening address to the assembled guests comprising dealers, selected customers, company management and shop floor employees, Valenzuela reiterates that Navistar are not there just to manufacture and distribute trucks but to also provide the highest level of customer support in the business. 

“All Nitsa dealers in southern Africa are expected to comply with the company’s International Diamonds Standards Program ensuring the very best after sales service and support for customers. This program will be subject to in depth third party analysis on an ongoing basis.” 

Adding to this, Quinlan says a major goal is to form long-lasting partnerships with all International customers and in so doing grow its share of the commercial truck market in the region. With his marketing cap pulled firmly down, Quinlan says: “Our philosophy going forward will be to build excellent relationships with our customers and provide an unparalleled level of service and support that consistently exceeds expectations.” 

A key part of Nitsa’s future plans is a desire to grow beyond South Africa. In addition to the new dealership in Namibia, Bob Jones, Nitsa’s chief commercial officer says: “There are markets outside of South Africa that we should be active in, among others, we are looking at opportunities in Angola and Mozambique.”
 

Planning for future growth. The local and international Navistar management team at the opening of the new truck assembly plant in Benoni.
“Trade is our best tool,” says guest of honour, Raymond Brown, United States deputy ambassador (right). He’s right on the button. According to Brown trade from AGOA states (African Growth and Opportunities Act) reached $51-billion in 2007. Of this, 19% or $585-million came from the export of automotive components to the US from AGOA states. Seen here with him is Tim Quinlan (left front).