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Copyright
© 2001 FleetWatch magazine and FleetWatch On-Line.
No
part of this publication may be reproduced without the prior written
permission from the publishers. Views published are not necessarily
those of the publishers.
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SHAKING
off the
AMC dust |

No Link!
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Wayne Lodder - determined to gain full respectability for the name AfintaPart. The logos of the manufacturers will have to disappear from the new sign and one which will give him absolute pleasure in scratching out is AMC.
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Being linked by name to a company like Anglo American is no doubt a good move. However, being linked by name to Afinta Motor Corporation is a bad one - as Wayne Lodder and David Robertson, co-owners of AfintaPart, found out through bitter experience. Given the absolute debacle of the AMC saga, the company deserves a fair hearing and in this article, Patrick O'Leary talks to Lodder on the company's attempts to shake off its link to the widely despised AMC name.
It seemed a fantastic opportunity at the time. In fact, it was the breakthrough Wayne Lodder was waiting for having started his business by borrowing R1 000 and building it from there. The business was called Roblod Agencies cc and was doing just fine as a supplier of spare parts into the truck aftermarket.
Then along came a company called Afinta Motor Corporation (AMC) to whom Roblod started supplying spare parts. So fine a job did Roblod do that it wasn't long before Lodder and Robertson found themselves sitting in AMC's boardroom considering an offer made to them by AMC directors to run the parts side of AMC as a separate, outsourced operation but linked by the name Afinta.
At that time, AMC was the new kid on the block and although it was considered by many to be a maverick, it was selling trucks and had in place a business concept which embraced the new government's vision of empowering members of the former disadvantaged communities. The future looked good and it was thus that AfintaPart was born.
As is well known, AMC seemed for some time to be making significant waves in the market but it all fell apart earlier this year when the SABS found that homologation rules had not been followed. It was a long and sordid saga which we do not intend recalling here but ultimately resulted in the demise of AMC and in a whole lot of operators holding vehicles which became valueless overnight.
Bad smell
There was a bad smell - and still is - around the name Afinta Motor Corporation and this smell wafted across to AfintaPart - and it stuck. It is this smell that Lodder is now trying to get rid of. So let's give him the podium.
"We have suffered because of the perceived association with AMC through our name Afinta. However, from the start the arrangement was one whereby we would act as the parts supplier for AMC but under an arms length agreement. Not one director of AMC ever served on our board or vica versa. AfintaPart has always been co-owned by myself and David Robertson," says Lodder.
Wanting proof of this, FleetWatch was given the original founding statement of AfintaPart cc, formerly called Roblod Agencies cc. Dated December 3, 1996, the two members are Wayne Lodder and David Neil Robertson. That's it. So there's the truth - no link with any of the former directors of AMC.
When the agreement came into being, Lodder and Robertson were not limited to supplying only AMC and thus broadened their client base to the wider market. "When we investigated the market, it soon became obvious that there was a need for cheaper but high quality parts and by sourcing overseas, we were able to cater to this need," says Lodder.
So they got into the 'pirate parts' business? "No," Lodder insists. "We call it replacement parts and there is a big difference. The world opened to South Africa after 1994 and although during the sanctions years parts could only be sourced from the local manufacturers as OE, we opened up supply sources that allowed us to offer quality parts at much lower prices than original parts. And we offer the same warranty as is offered on the genuine parts."
As a matter of interest, the price differentiation on a basket of parts is estimated by Lodder to be 40% cheaper on replacement against genuine parts.
"The manufacturers have never liked this and they obviously consider us their opposition. However, everyone is complaining about the high cost of parts and we are able to help our clients on a price basis without compromising on quality."
Link bounced back
Using this modus operandi, business was going just fine until the AMC debacle hit in full force and that's when the link by association bounced back on AfintaPart. Given the shoddy offerings and service by AMC, many operators didn't want anything more to do with the name Afinta - and understandably so given that many were burnt big time by AMC.
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National sales manager Dave Rishworth (left) and Wayne Lodder in front of the display of the accident repair panels for Scania, Volvo and Mercedes-Benz Actros, the latest range to be added to AfintaPart's stock list.
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It's business as usual behind the sales desks of AfintaPart branches as the company moves forward to shake off the dust left from the link to AMC.
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In its search for credibility and respectability, AfintaPart applied for and was granted membership of the RMI - a giant step in the right direction. |
FleetWatch knows of one operator on the South Coast who is sitting with three AMC trucks that are absolutely valueless. No dealer will take them as trade-ins and he can't sell them on the private market for love nor money. No-one wants them.
That's the legacy left by AMC and that's the cesspit from which AfintaPart has to try climb. So why not just change the name?
"We thought of that but we have an existing client base which has been dealing with us for some time and they don't have a problem with it. Our drive is to expand that client base and become a respected name on the market. We run a good business, do all the right things, abide by all the laws and provide an excellent service to our clients. And we've been doing that under our current name so I feel if we can get through the perception that exists that we were linked to AMC, we will be in the clear," says Lodder.
That the company is an established one there is no doubt with Lodder estimating some 400 clients on the books being served out of branches in Johannesburg, Cape Town, East London and, as from September 1st, a new branch in Windhoek, Namibia. And plans are afoot to build a new R1,5-million head-office premises in Jet Park. Stock holding is currently valued at R4,3-million and staff compliment totals around 47 people.
RMI membership
In the search for respectability and credibility, AfintaPart this year applied for membership of the Retail Motor Industry Organisation (RMI) and on September 5th, was notified of being accredited by the Motor Parts and Equipment Association (MPEA) and therefore accepted as an RMI member.
The RMI serves to protect both its members and the public from shoddy and dubious business practices and important here is that accredited members of the RMI are party to the RMI Code of Conduct. This code is an assurance to the consumer that the member company meets the requirement of the RMI accreditation standards and has the necessary equipment and trained staff to deliver a high standard of quality products and services.
This is a step in the right direction for if the RMI has endorsed AfintaPart's business practices, this gives its customers recourse - via the RMI Consumer Service Division - should any dispute arise.
In terms of sticking to the rules, AfintaPart declares every imported part and pays all applicable duties and other fees. "We've had our containers searched but because we stick to the rules, the authorities have found nothing illegal. In fact, we welcome the clampdown on the importation of illegal parts. After all, we are sticking to the rules whereas some of our opposition are not so it serves to keep the playing fields level for us who are trying to do it right."
In terms of the word inferior being linked to replacement parts, Lodder's hackles rise. "When I go to bed at night, I sleep well as know I have not compromised the safety of any of our clients. We look for ISO9002 listed parts and in fact, import many parts that are supplied to companies like Nissan, Toyota and Isuzu in Japan."
On this point, the company also has distribution rights for some well known names such as Daiken clutches, which are supplied OE to Hino, Isuzu and Nissan worldwide. It is also an authorised agent for reputable names like Sachs, Bosal and GUD.
No compromise
Lodder insists they are also ethical and up-front with all clients regarding the danger of compromising the OE manufacturer's warranty by fitting non OE parts during the period of the vehicle's warranty.
"If I know a vehicle is under warranty and the customer is looking for a replacement part that may adversely affect his warranty, we will not supply him the part," he says. "Our role comes into play after the warranty period. That's when we can kick in with quality parts at much reduced prices which carry the same warranty as the genuine item."
AfintaPart's' latest offering is a range of body repair parts for Volvo, Scania, Mercedes-Benz Actros and Atego models. "We recently got the franchise for these parts and are excited about the potential.," says Lodder.
Although the company is keeping its name, one thing that will have to change soon is the signboard outside the Jet Park head-office. The new sign will retain the names of the manufacturers such as Nissan, Hino, Isuzu, Toyota, Volvo, Scania, Mercedes-Benz and others, but the logos of these companies will disappear.
Lodder is not bitter about this and accepts it in the spirit of competition. "We are competitors to the manufacturers in the parts aftermarket arena and I therefore understand their sentiments. However, I want then and the entire market to know that we operate to ethical standards and practices and are therefore not a maverick company but a viable competitor that is serious about our role in the market."
Based on the above, it seems there is no 'dirty tricks' department in AfintaPart. What you have are two men who - perhaps through inexperience and naiveity - were caught out big time by AMC and have suffered the consequences. Do they deserve a chance? Well, that's up to you! After all, the market is always the final arbitrator.
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Afinta's latest offering is body
repair parts for Volvo, Scania and Mercedes-Benz
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