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Globalisation is a two-headed beast. You get the good head, which brings top-notch products, technological innovation, investment and poverty alleviation to developing nations, and you get the bad head which leans towards monopolistic domination of world markets, wealth hoarding and heartless corporate maneuvers that often result in disinvestment, massive job losses and mountains of redundant capital equipment. South Africa is no stranger to the comings and goings of foreign business. The Apartheid years saw scores of large multinationals pulling out of the country during the sanctions era only to return after 1994 when the political climate in SA had corrected itself. The transport industry felt the punishing blows of sanctions as much as any other industry but took the snubbing by several offshore OEMs 'on the chin' and adopted a DIY attitude, most notably, producing the Atlantis Diesel Engine (ADE). Ironically, democracy killed the ADE, inadvertently of course. Post '94 saw several foreign truck manufacturers opening shop locally, bringing with them new technologies, which made the ADE look positively prehistoric. Also, the SA government began to get in step with international environmental standards, forcing transport operators to buy 'greener' vehicles. 

One of these new truck suppliers is DAF Trucks, a Dutch company with a proud history of automotive innovation stretching back to the early 20th Century. A relative newcomer to the local truck market, DAF Trucks launched in SA in November 2002 with a strong but convoluted corporate infrastructure supporting it. While being a market-leader in the Netherlands, Belgium and the UK with clearly identifiable support channels, DAF in South Africa has a number of 'big-names' behind it, which could be confusing to truck buyers. 

Locally, DAF SA forms part of Commercial Vehicle Holdings, which in turn is owned by Imperial Holdings. And that's just in SA. Globally, DAF is owned by PACCAR, which thankfully, owns itself. For truck buyers, a personal relationships with their OE suppliers is important and they want the security of knowing the products they've bought will be supported in the future. DAF trucks have only been in SA for 3 years and may be relative strangers to local transporters but the company has a solid history...
 

Back in time - a family business
The brothers, Hub and Wim van Doorne, of Eindhoven, Netherlands, started DAF N.V. (van Doorne Aanhangwagen Fabriek N V) in 1928. They began initially as a trailer manufacturing concern but commenced building trucks in 1949. Their first workshop adjoined a brewery, the owner of which, Mr Huenges, financed them to the tune of 10 000 Guilders, enabling them to become the leading truck OEM in the Netherlands. 
In less than a year after opening, DAF employed 32 people and in 1933, built a groundbreaking featherweight semi-trailer which attracted the attention of everyone in the trade. The brothers then introduced another first, the DAF demount trailer, developed for the loading and unloading of railway containers for intermodal rail/road transport. These containers were about 3 metres long and their laden weight was approximately 3.5 tons. The demount trailer made loading and unloading of containers easier and quicker. By 1935, DAF employed just over 100 people and would triple this number over the next five years. 
During the Second World War, DAF began work on three truck prototypes, which prepared them for the massive demand for commercial vehicles during the post-war reconstruction period. A new factory was built and in September 1949, the production of commercial vehicles began with a range of three models: the three-ton A30, the five-ton A50 and the six-ton A60, powered by Hercules petrol and Perkins diesel engines. Chassis, brake components and wheel hubs were manufactured in-house. In 1950, the one-ton A10 van made its debut at the RAI European Road Transport Show with a one-ton pick-up truck, the A107 being built for export. DAF expanded its range rapidly with models for tipper, refuse and military applications.

Building from scratch
In 1951 DAF began making its own cabs. On 3 May 1955 the 10 000th DAF chassis came off the line and the company received an order for 3600 vehicles from the Dutch army. The order enabled DAF to expand the factory and begin building diesel engines in 1957, initially under licence to Leyland but then under its own name, producing one of the world's first turbocharged diesel truck engines.

That same year, the first heavy DAF, the 2000, was launched. A new factory in Oevel, near Westerlo in Belgium was opened to commence axle production. In 1962 DAF launched the Eurotrailer, a semi-trailer with integral aluminium body, as well as the DAF 2600, featuring a compact design for optimum load length and a sleeper cab option. The 2600 acquired the nickname, 'mother of international road transport' and was deemed the market leader in driver comfort for many years.
The 70s and 80s saw DAF introducing a number of model ranges that expressed the company's innovative design approach. New tilt cabs were introduced to make engine maintenance easier and quicker. These cabs were fitted with twin bunks and were more spacious than competitor models. DAF was the first truck manufacturer to use an 'intercooler' in conjunction with a turbocharger, bringing new levels of power and torque to the market as well as improved fuel consumption.
 

Partnering for growth
Technology partnerships between OEMs are not new and DAF had been working closely with Leyland for many years before it bought the British company in 1987 and introduced the DAF 95 with its 'SpaceCab'. The truck won 'International Truck of the Year' in 1988. 

The early 1990s saw the commercial vehicle market in Europe take a sharp downturn, especially in the UK, a major market for DAF. As a result, in 1996, DAF had to sell to US giant, PACCAR, the makers of Kenworth, Peterbilt and Foden trucks. Despite the sellout to PACCAR and the introduction of a new set of corporate dynamics, the flagship DAF 95 XF won 'International Truck of the Year' in 1998 and proved that sticking to company tradition and proven success formulas is crucial in times of adversity and change. By May 1999, DAF had produced over 500 000 trucks.

DAF in the 21st century 
The strength of PACCAR as a holding company is central to DAF's success not only in Europe, but also in SA and other regions. PACCAR celebrates its 100th anniversary this year and impressively, has turned a profit every single year since 1905. For the third quarter of 2005, PACCAR's net profit surged 24 percent to a record $304.8 million. This solid financial backing should bring peace of mind to all DAF owners and the fact that PACCAR is a global trucking concern also offering vehicle financing and parts supply services, should also give confidence to potential DAF buyers. 

Harrie P. van Doorne is the last of the van Doorne family still working at DAF and has been through the lean years as well as the fat. He now holds the position of Managing Director, Sales Division. "Twelve years ago, DAF employed 16 000 people and produced 10 000 trucks per year. Today, the staff numbers are down to 6000 but we produce 55 000 trucks a year." These are remarkable figures and speak loudly of DAF's ability to move with the times. "DAF has moved from number 7 to number 3 in Western Europe because of constant re-engineering and streamlining of the manufacturing process, and a sharp focus on after sales service and support," he adds.

Truck tailors
The introduction of robotics on the production line and Six Sigma methodologies has improved efficiencies to such an extent that no two DAF trucks are alike. "Every DAF is a 'custom-built' vehicle," says van Doorne. "When a customer walks into a DAF dealership, an individualised truck blueprint is generated using a software program called TOPEC, which processes information on how and where the vehicle will be used and then generates specifications that match the needs of the customer's transport application." 

Touring the two DAF production facilities (the cab and axle factory in Westerlo, Belgium, and the engine/assembly plant in Eindhoven) gives a clear insight into how modern truck builders work. Well-lit, open plan shop floors are abuzz with the sounds of robotised spot welders and piped rock 'n roll. The technicians in the various assembly bays are part of a process that goes beyond the mere piecing together of components; they represent a Dutch transport icon, and it shows; cool and calm and confident in their DAF T-shirts, every one a specialist in a particular aspect of truck building. 

Service driven
The current DAF line-up includes the LF, CF and XF models, covering the 6 to +15 ton markets. "DAF's service and support strategy is called 'Total Care'," explains van Doorne. "It helps the transporter achieve optimum operating results by removing any unforeseen costs on repairs and maintenance. DAF MultiSupport is a range of repair and maintenance contracts with a fixed rate per kilometre. This approach to vehicle maintenance is proving very successful because it takes the guess work out of the equation and enables truck owners to focus on their core business; transport." 

Another DAF service is the International Truck Service (ITS), a call centre for truck drivers (DAF and other makes) in need of roadside/breakdown assistance across Europe. The hi-tech ITS hub is based in Eindhoven and employs 18 staff members who each speak four or more languages. When a truck breaks down, the driver calls the emergency number and ITS determines which dealer is nearest to the truck, what the nature of the breakdown is and contacts the dealer who then moves in to assist the trucker (on both truck and trailer problems). ITS looks after the payment to the dealer, billing the truck owner later, once his vehicle is rolling again.
 

A De Rooy racing team technician works of the DAF CF racing truck. It pushes out around 850 horses and has shocks that could be useful in local conditions.

	The Team De Rooy support vehicles.
A DE ROOY Transport makes its own trailers, giving it the ability to load more cars than the competition.

Top customer
It could be that patriotism accounts for DAF's market leadership in the Netherlands but more likely, it is because DAF makes excellent vehicles with a strong focus on driver comfort and peace of mind. To get a first-hand testimony from a DAF customer, the touring party was invited to the offices and workshops of De Rooy Transport, a leading Dutch transport operation running close to 1 000 trucks. Jan de Rooy, founder and managing director says, "We have 550 DAF trucks in our fleet as well as Volvo, MAN, Merc and Iveco models. We prefer DAF because of the big cabs and the overall driver comfort."

De Rooy Transport is famous as a car/truck/farming vehicle carrier (it also does volume transport) and its enigmatic owner keeps his success secrets close to his chest. He has a 'secret recipe' when it comes to designing trailers to carry cars, tractors and trucks across Europe. His in-house technicians modify truck tractors and build innovative trailers to get as much payload as possible.

"We are successful because we can carry 11 cars while our competitors carry 9. We can move 5 tractors at a time, one more than our competitors." Not allowing copycats to get hold of his designs is an ongoing pleasure for de Rooy. "When people ask to buy one of my trailers or trucks I just say no," he says with a wry smile. 

De Rooy is competitive by nature and has won the Paris-Dakar Rally in a DAF. He and his son, Geraard, will compete in the next 'Dakar' in a pair of custom-built DAF racing trucks which he prepares on his premises, employing a full-time team of technicians. Good luck manne.

New Flagship
The highlight of the tour was the European Road Transport Show 2005 at the RAI in Amsterdam and the unveiling of DAF's new flagship, the XF105, and the new PACCAR MX and PR engines. Aad Goudriaan, President, DAF Trucks N.V. says, "trend-setting durability and reliability, the lowest possible operational costs and maximum transport performance and efficiency, combined with Euro 4 and Euro 5 emission values, were the most important criteria behind the development of the DAF XF105, together with superior comfort and a perfect working environment for the driver."

DAF Trucks N.V. Sales and Marketing Director, Kerry Mc Donagh says, "The XF105 is powered by the 12.9 litre PACCAR MX engine with SCR exhaust gas after treatment for Euro4 and 5 emission standards. While delivering exceptional output levels, the new engine will improve fuel efficiency by 4%, lower repair and maintenance costs by 10%, improve resale value by 15% and extend service intervals to 150 000km."

These are attractive 'business drivers' and coupled with the space, comfort and ergonomics of the new 'SuperSpaceCab', South African truckers have something to look forward to when the XF105 reaches our shores sometime in 2007.
 

NEW RANGE  The 2006 DAF range includes the LF, CF and XF models offering customised solutions for any transport application. The medium CF derivatives are selling well in South Africa as 6x4 tippers and mixers. The new ultra-spacious XF 105 will reach our shores in 2007 and should strike a comfortable chord with long-haul truckers.

Commitment to SA
DAF Trucks SA has made great strides in the medium to heavy sector over the last three years, selling some 1300 trucks and establishing 14 branches around the country. Says de Wet, "We are actually ahead of plan as far as volumes go. We have been selective in who we sell to and have focused our attention on the big fleets and this has helped us grow steadily." 

Currently in SA, DAF offers a range of vehicles to cover light, medium and heavy transport operations (the LF, CF and XF models) as well as support services based on proven operations now well established in Europe. "We haven't tried to re-invent the wheel. DAF in Europe has led the way and DAF Trucks SA is simply going the tried and tested route," says de Wet.

The business models used in Europe are emulated locally with the same 'everything-under-one-roof' approach, including the pre-sales services, financing options, maintenance contracts and a call centre for roadside assistance. Apart from the sales and support of its trucks here, DAF is also using South Africa as a testing ground for its MX engines.

According to de Wet, DAF engineers were looking for extreme operating conditions and initially pegged New Zealand as the toughest environment to test engines in but changed their minds when they had to deal with a few troublesome DAF engines in South Africa. Suffice to say, the problems have been sorted out and there's a team of Dutch/Canadian DAF/PACCAR engineers now based here for two years.

DAF in the Benelux

Big kahunas - from left, Phil de Wet, Aad Goudriaan and Ron Smith, PACCAR's Southern African sales director.
	DAF dudes - [front from left] Geraard de Rooy, Harrie van Doorne, Jan de Rooy and Phil de Wet take a walk with the media around DE Rooy Transport.
AT THE RAI show - the new PACCAR MX engine made a great impression on visitors.

Into the future
The impact of DAF Trucks SA on the local market has obviously pleased both PACCAR and DAF Trucks N.V. "The commitment and dedication shown by DAF Trucks SA to the DAF brand has been impressive and will certainly help us to continue to grow the business in SA. You have got our full support," concludes Goudriaan.

That being said, one can't help feeling confidant that the comprehensive 'slickness' of DAF Trucks N.V. throughout the value chain, PACCAR's financial muscle and the steady growth of both DAF Trucks SA and the local trucking market in general are a sure-fire recipe for long-term success.