|
CONTENTS
|
|

|
with
Frans Cloete
Senior
Vice President Operations,
Nissan Diesel South Africa. |
Question: Back in 1993, it was the industry's worst-kept secret that Nissan Diesel had tried, unsuccessfully, to lure you from your then management position at Toyota/Hino. What made the move more appropriate in 2002 and are you happy that you finally made the decision to move?
FC: An independent and dedicated truck company always appealed to me. Car companies are just not doing justice to trucks. Marketing capital goods requires a different business style and approach. I have certainly not regretted my decision as I found in Nissan Diesel all the elements of a great truck company - vast truck skills in all areas of the company, unequalled flexibility and Nissan Diesel Japan absolutely committed to their SA subsidiary. We have one global vision and we live it.
Question: Nissan Diesel is currently doing very well in the South African truck market. It has a healthy, growing market share and has penetrated some very impressive and highly visible conquest accounts. What, in your opinion, is driving this strong performance?
FC: Market share is not what we are after although we do believe we should be one of the Big 3. We have not only maintained this position but we have also grown our market share. I am also of the belief that you get the share you deserve. Customers must be satisfied with the package being offered; the product must be right for SA conditions (engineered, developed and tested for this country). But, it goes beyond that. 'Good people make good products, good products cannot make good people'. This is the key to it, people with the right attitude to the truck business and a company that is prepared to commit.
It is true that we have penetrated most of the prime operators with our UD 440 but the most heartening thing is that we have had repeat sales from all of them. We are equally proud to be of service to a vast number of small operators.
Question: When it was decided to go it alone as an independent truck specialist operation, did management face any uncertainty regarding the future outcome on the part of dealers and key customers, and, if so, how was this addressed?
FC:
The move was well accepted by all our customers and dealers. Our approach was that they are all investors in our company and as such, we had to convince them that they have made a sound investment. At the time it was difficult as Nissan Diesel had just gone through a tough time in the Japanese economy. We had a very clear vision for our business and embarked on a road show to "sell" it to our target audience. From that moment, the team started working as if it was our own business and started combining functions into a finely tuned machine.
Question: There still seems to be no common industry position on the local assembly of trucks. NDSA, on the other hand, seems firmly committed to continuing with its local assembly and product engineering activities. Why is this?
FC: Many years ago I had the opportunity to visit Australia and I decided then that one should always have some form of local assembly. The combination of assembly and local engineering enables us to not only develop for South Africa but also to have greater flexibility to customize for our conditions.
When launching a new product we not only negotiate the correct specification but also develop it fully and test it thoroughly for our conditions. The new UD400 which we are now launching has, for example, been in the country and tested in a fleet since the beginning of the year. All indications are that it will be as successful as the UD 440. Therefore what we have set out to achieve, it just makes sense for us to have local engineering and assembly.
Question: NDSA claims to have a strong customer focus and declares its vision to include the delivery of profitable transport, World Class service and lowest life cycle costs to its clients. Virtually every truck manufacturer has made similar claims at some time but NDSA's market performance seems to indicate that it doing these things better than most. What is the secret of NDSA's success in this area?
FC: While we would like to think that we have perfected each of these aspects of the business, the truth is we still have some distance to go. I am satisfied we are walking the talk but we all believe that we can still improve.
Question: NDSA has often stated that its dealers play a very important role in the delivery of quality support to its clients. Historically, Nissan Diesel has enjoyed the support of a strong dealer network as a result of its association with volume-selling light vehicles. New entrants to the market have struggled to obtain a foothold because all the quality dealers have been spoken for. How does NDSA, as an independent truck supplier, intend to secure its future relationship with the dealers it needs to maintain adequate market coverage?
FC: You are right, our dealers are our partners in the business and as such we place a high value on our relationship. All the large groups have invested in our franchise - Imperial, Super Group, McCarthy, Combined Motor Holdings, Barloworld, Unitrans. They are joined by longstanding dealers like BB Group, Kalil Nissan, AAD and many others that continue to be loyal because it is a good investment for them. We value development and it is a high priority for us to continue improving standards all the time. At Nissan Diesel, servicing vehicles will always remain a higher priority than selling them.
|